GREEN SEAS Container Terminal

1. PROJECT CHARTER

1.1 PROJECT PURPOSE

The aim of the project is to design and construct a new container terminal with the overall

surface area of 80 ha, in the southern area of the Constanta Port. The project seeks to enable

large container carriers (12.000 TEU or more) to enter the Port of Constanta, and therefore to

distribute these containers to neighboring countries by feeders. The port`s geographic location

proved that it is a reliable transshipment hub for the Black Sea region. Another purpose of the

project is to increase the annual throughput capacity of the port by 1.400.000 TEU, as a result to

the growing demand of containerized cargo in the past years. The operation of a new container

terminal will also lead to the enhancement of the socio-economic potential of the hinterland.

1.2 PROJECT OBJECTIVES

1. Terminal design

It will include:

-Feasibility studies (Biophysical environment, air quality and noise pollution, geology,

geomorphology, pedology, sediments, coastal erosion, hydrography, biodiversity and fauna),

-Obtaining permits and approvals,

-Design and engineering of the terminal

2. Terminal construction

Consists of:

-Building and consolidating a quay of 1400 m in length,

-Building a main berth of 1000 m in length,

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-Building a feeder berth of 400 m in length,

-Dragging, in order to obtain a depth of the harbor basin of 23-25 m,

-Building the land area for storing containers (Container Yard),

-Construction of the administrative building, Container Freight Station, Repair shop

-Extending the Southern Breakwater by 1 km

3. Equipment

Includes:

-5 Gantry cranes (Quay cranes) for operating large ships

-18 RTG, 5 RMG, 10 Empty Handlers, 6 Reach Stackers, 20 Fork lift trucks – which will enable

the transport and stowage of the containers in the Container Yard

4. Ancillary activities

Imply the construction of:

-Rail and road connections to the present port infrastructure:

 3 rail lines, each 700 m long (capable of handling 3 trains at the same time)

 5 km of 2 lane highway which will connect the terminal with the port`s main road

 3 km of road within the terminal`s area

-Network for supplying water and water drainage system

-High voltage electricity network;

5. Workplaces

-the entire project is expected to create approximately 500 new workplaces

-the construction of the terminal will enhance the socio-economic potential of the hinterland (for

example, in the following fields: transport, logistics, commerce)

1.3 STAKEHOLDER LIST

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-The Government - will sponsor the loan

-Port Authorities, Romanian Naval Authority, Ministry of Transport

-Project Manager, Project Team

-Naval and maritime industry

-Companies/Partners involved in the project: Contractors for outsource activities

-Clients/Customers: Liner shipping companies, charterers

-Suppliers

-NGO`s and environmental activists might disagree with the project since it will represent an on-

going source of pollution for the city (noise, dust, smoke)

2. PROJECT MANAGEMENT PLAN

2.1. REQUIREMENTS DOCUMENTATION

The project is expected to lead to a steady economic growth in the region for the next 15 years

after completion. Once the terminal will be in operation, the capacity and the efficiency of the

port (in what concerns containerships) is expected to increase. In comparison with the present

container terminals, Green Seas will be able to accommodate an increased volume of cargo and

will also provide an improved performance in logistics.

The overall capacity of the terminal will be no less than 1.400.000 TEU. It will provide facilities

for stripping/stuffing and storing dry containers (20‟ and 40‟), high cube dry containers, open top

containers, flat rack containers, platform containers and reefers. It will also offer a full range of

terminal services such as: refrigerated container power and monitoring, EDI messaging and on-

site office facilities. Green Seas will also offer a 5000sqm covered storage and inspection facility

for Customs, Government Authorities, Customs brokers and forwarders. The Container Freight

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Station facility will offer an unprecedented capacity of warehousing of 3.000sqm, able to provide

warehousing services for palletized/unified cargo.

Local authorities and NGO`s demand responsible behavior and commitment for environmental

issues. Once the project starts, quarterly reports will be made public, in order to present the

impact of the project on the environment. It is essential for the public to know that, despite the

magnitude of the project, it will pose little to no threat to the health of the inhabitants of

Constanta. Moreover, the biodiversity of the coastal areas will not be affected neither by the

pollution resulting from the ships, nor by the pollution resulted from the terminal`s operation.

Once the projects finishes, quarterly tests will be conducted for pre-treated water discharged into

the drains and rain water discharged in the sea. The terminal itself will be as „environmentally

friendly‟ as possible; the commitment for “green port operations” will be proved in the next

years. Environment analyzes are expected to be within normal parameters, even during the „peak

activities‟. By using state of the art, ecologic equipment inside the warehousing area (eco fork

lift trucks), the terminal not only that will reduce the green house gases emissions, but will also

decrease the energy consumption (in comparison with conventional equipment available in port).

Therefore, the most important issue to be addressed along this project is obtaining excellent

services and facilities, while reducing the ecological footprint as much as possible.

2.2. PROJECT SCOPE STATEMENT

-Product scope description

The new Green Seas Terminal will offer deeper water; therefore, larger, more economical

vessels will be accommodated (12.000 TEU or more). The terminal`s location has been

attentively selected in order to optimize access to land and navigable waters, for commercial

demand, and for shelter from wind and waves.

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-Product acceptance criteria

The terminal will not be considered operational until the extension of the Southern Breakwater

has been entirely finished. Under no circumstances will ships be allowed to operate if the

Southern Breakwater doesn`t provide proper protection to both ships and quay cranes.

-Project deliverables

A fully equipped and operational container terminal, having the following characteristics:

-Overall surface area of 80 ha, situated in the southern area of the Constanta Port

-Length of the quay 1400 m (1000 m long main berth and 400 m long feeder berth)

-Depth of the sea basin approximately 23-25 m

-Full Container Yard with a capacity of 35000 TEU, Empty Container Yard with a capacity of

12000TEU

-Four-storey administrative building with basement garage, 5000sqm covered storage area and

500sqm repair shop

-Rail and road connections as described above

Project exclusions

Green Seas Container Terminal WILL NOT accommodate containers with hazardous cargo.

Moreover, it WILL NOT provide maintenance and repair services for reefers and WILL NOT

provide any washing/cleaning service.

Project constraints:

TIME PERFORMANCE COST

CONSTRAIN

ENHANCE

ACCEPT

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Under no circumstances the initial performance specifications are to be compromised. Even

though the terminal might imply a larger amount of money or longer time for completion, the

quality of the services/materials/equipment/workforce involved will not be affected. However,

going over the budget is not desirable. If possible, the Project Team will seek every opportunity

to reduce the completion time of the project. Although there is no time pressure, the faster the

first vessel is operated in the terminal, the better.

Project assumptions

The start date of the project is 01.01.2016 and it is expected to last until 02.09.2019 (956 days).

There are six major stages in the development of the project, as follows:

1. Drafting the feasibility study

2. Technical design

3. Infrastructure

4. Equipment

5. Operational flow

6. Test and evaluation

The cost of the project is expected to rise to 245 million Euros, although the amount of money may vary

due to unforeseen difficulties. The Government will be the sponsor of the project, and therefore, the only

owner. The installment plan implies that at the beginning of the project the Government should provide

40% of the amount. The rest will be paid into equal annual installments no later than March 2017, March

2018 and May 2019.

After completion, through a concession contract, the Government will transfer the operating costs to a

private enterprise. The concession agreement will have a duration of 15 years.

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2.3 WBS

Figure 2.3.1 WBS

Milestones:

1. Approval of the project documentation

2. Construction of administrative building

3. Extending the Southern Breakwater

4. Road connections

5. Delivering the terminal to the operator

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2.4 PROJECT SCHEDULE

Figure 2.4.1 Gantt Wizard

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Figure 2.4.2 Free slack – total slack

Figure 2.4.3 Network diagram

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2.5 PROJECT BUDGET

Figure 2.5.1 Human resources

Figure 2.5.2 Costs

2.6 RISK MANAGEMENT PLAN

Project risks and Risk response plan

One of the major risks associated with the completion of Green Seas Container Terminal is the

loss of the funding. Due to fortuitous events that may take place in the near future (instable

economy, financial crisis), at a certain point in the development of the project, the Government

might not be able to pay the rest of the amount. Since there are large amounts of money involved

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in a project of such magnitude, one risk response plan would be resorting to private investors

for money. Another choice would be applying for a bank credit. While the former might be

difficult to achieve (there would not be many investors willing to pay for an uncertain project),

the latter might last for a very long period of time (until all the foregoing procedures would be

accomplished). However, losing the funding from the Government is a worst case scenario; the

project might be delayed for years in a row.

In the present unstable geopolitics context, there is the threat of international conflicts. A

flourishing seaborne trade in the Black Sea basin is one early assumption for the construction of

this new container terminal. The country might face the prevalence of military purposes in the

Black Sea basin, instead of commercial purposes, in the next years. As a consequence, the cargo

flow would diminish and the entire project would become redundant.

The present project is exposed to risks associated with not obtaining the necessary permits and

approvals for construction (technical feasibility, environmental feasibility). Lack of permits and

approvals might delay or, worse, cancel the entire project.

The implementation of the project would be affected if the staff does not work cooperatively

across functional boundaries. Moreover, other problems might occur if people are not well

trained or experienced. Staffing problems can be avoided by carefully recruiting the employees

and maintaining a pleasant work environment all along the project. The Project Team has all the

necessary means to build a healthy organizational culture.

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