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Liverpool2

Issue 3 2015

Welcome to Peel Ports Liverpool2 News. The purpose of this newsletter is to keep you updated on the exciting development of Liverpool2, the UK’s new deep water container terminal. We will regularly share with you the construction progress, key milestones, business activity and other news.

INTRODUCTIONLiverpool2 is Peel Ports’ new deep water container terminal. When it opens for business in late 2015, Liverpool2 will be the UK’s most centrally located deep water container terminal. It will offer shipping lines a unique opportunity to bring larger vessels closer to the UK’s industrial, manufacturing and consumer heartland than any other UK port.

Capable of handling the largest container vessels afloat today, with a berth length of more than 850m and a berth pocket of 16.5m, Liverpool2 creates the capacity to handle the next generation of container ships and empowers the Port of Liverpool to be the UK’s national gateway and transhipment hub for Ireland. The development will reaffirm Liverpool as the UK’s leading transatlantic port, whilst enabling direct market connections to the Americas, India, Far East, Caribbean, Mediterranean and the Baltics.

LIVERPOOL2

SECRETARY OF STATE FOR TRANSPORT Peel Ports recently welcomed the Rt. Hon. Patrick McLoughlin MP, Secretary of State for Transport to view progress on the Port’s £300 million expansion project.

Mark Whitworth CEO Peel Ports: “We welcome the Government’s financial commitment to upgrading the road network in and around Liverpool. This will further improve access between the port and the motorway network.

Having a more integrated transport infrastructure in place to be able to carry freight inland across the UK’s heartland will enable faster, more efficient and more environmentally advantageous delivery. The investment will drive jobs and deliver international trade to the very centre of the UK – that represents a huge opportunity to develop the concept of a northern powerhouse and help to rebalance the UK economy.”

“Our record investment in Liverpool’s transport network is a huge boost to its economic growth, driven by the city’s maritime and business ambitions. Improved port, road and rail connections will link people with thousands of new jobs in the region and encourage businesses to grow. This government continues to build the infrastructure across the country that will deliver our long-term economic plan.”

Patrick McLoughlin Secretary of State for Transport

Image: Mark Whitworth, Patrick McLoughlin, Gary Hodgson and Warren Marshall

LIVERPOOL2 POWERS ON WITH

A 200+ strong team from Peel Ports and SP Energy Networks (Scottish Power) have been working together for the last three years to create a new power network to support Liverpool2. The project is one of the largest private electricity connections that SP Energy Networks have delivered in over 20 years.

The work has more than doubled the power capacity of the port from 20MVA (megavolt amperes to) to 50 MVA. This additional energy capacity would be enough to power over 20,000 homes or 4.5 million energy efficient domestic light bulbs.

The work included:

• Creating an 8km 132,000 volt grid connection at Aintree

• Directional drilling (also known as micro-tunnelling) 700 metres at 27 metre depth under the Switch Island traffic junction to avoid disruption from construction activity

• Installing a new substation at Litherland, close to the Port of Liverpool

• Installation of a new substation at the Port of Liverpool, plus a 33,000 volt ring main and fibre optic cabling that both circle the whole site.

“This investment underlines the scale of our commitment to providing reliable and modern services for our current and future customers. The new energy network will supply the new container terminal as well as giving greater resilience to our whole operation at the Port of Liverpool. It’s a huge milestone for us as we continue work to create a new gateway facility that will help global shippers trade with the UK by reducing costs, carbon emissions and congestion in the supply chain.”

Doug ColemanL2 Programme Director

“Connections such as this are very significant events in the UK’s energy infrastructure and it’s certainly one of the biggest projects of its kind. So we’re delighted that all the hard work and planning has successfully delivered the new supply to the port and credit must go to the whole team of engineers and technical staff in both organisations who have achieved this.”

Stephen StewartSP Energy Network’s Director South

Image: Charles Easton (FES), Mike Walsh (ACTS Partnership), Mark Barry (Scottish Power), Stephen Stewart (Scottish Power), Doug Coleman (Peel Ports Group)

CONSTRUCTION UPDATE

CONSTRUCTION UPDATE

1. How is construction for Liverpool2 progressing?

We are progressing well and we are on target for the terminal to be operational at the end of Q4 2015.

We have now completed 60% of the piling with all quay wall

furniture and concrete capping beams and fender blocks on site. We have completed the dredging of 12 hectares of reclaimed intertidal land behind the quay wall and we have so far removed 5.5 million cubic metres of sand and silt from the estuary.

2. Has the infilling work started yet?Yes the infilling began at the end of February, following the completion of supporting infrastructure works such as laying pipelines, pontoons and pumps at the start of 2015.

Our dredger arrived from Rotterdam and picked up 10,000 tonnes on her way into the Mersey estuary which was immediately deposited into the Liverpool2 site when she arrived.

The infilling work is now relentless and over 815,000 tonnes have been delivered so far, with the dredger discharging an impressive 21,000 tonnes per hour. The beach is now beginning to form.

The start of the infilling was captured on film:www.peelports.com/infilling-work-commences-at-liverpool2

3. How are the supporting infrastructure projects progressing?

a) Widening of Seaforth Passage

Work is well underway with the recent installation of the utility services U-Tube now complete. The project is on target for the first ACL G4 vessel arriving in September.

Work completed so far:

• Construction of a new piled wall 18m behind the existing wall

• Demolition of the existing face

• Relocation of a 3m diameter sewer siphon

• Installation of a utility services U-Tube beneath the passage

The installation of the U-Tube was a significant engineering challenge which was captured on film by Farrans Construction. The time lapse footage shows the three day operation of getting the 100tonne tube in place:www.peelports.com/installation-of-100-tonne-u-tube-at-port-of-liverpool

b) Extension of Rimrose Brook sewer

To support the newly widened Seaforth passage the existing Rimrose Brook sewer will also been extended by some 225m with a 2.5m diameter HDPE pipe.

The HDPE pipe is shrouded with concrete collars and will be connected to the existing outfall at the east end and a new discharge will be constructed in the new quay wall at the west end of the pipe.

The pipe was bought from Pipelife Norge AS in Stathelle in Norway and was towed by an ocean going tug from Norway across the north of Scotland and down to Liverpool.

The pipe trench has now been dredged in the L2 triangle to receive the new sewer pipe and backfilled with 27,000tonnes of rock.

4. What are the key milestones for the next few months?

Activity both in the river and on land really ramps up over the next few months with piling, infilling and dredging all underway. It is a very exciting and challenging time for the project.

AN UPDATE FROM DOUG COLEMAN

ENGINEERING UPDATEAll Ship-to-Shore and CRMG cranes are now fully constructed and commissioning work has just commenced with customer function and compliance testing being carried out at ZPMC sites in China.

James Atherton and Stephen Curtis, Liverpool2 Automation Engineers recall their first visit to ZPMC in China to oversee the commissioning of the CRMG cranes.

This was our first trip to ZPMC, China. We found the trip to be very informative and extremely rewarding. Our trip consisted of the review and sign off of the electrical design for both crane types.

We also discussed in detail the commissioning and testing schedules, information gathering (to support a detailed Amtech Pro-Design analysis of the cranes).

Also during the 10 days at ZPMC, we were able to visit both the crane manufacturing facilities, at which we were introduce to Bureau Veritas who have been Peel Ports independent inspection agency throughout the complete project. Whilst at Nantong where the construction of the CRMG cranes have been, ZPMC were proud to give Peel Ports a private tour of their state of the art gearbox manufacturing facility, which houses many of the world’s leading edge German fully automated machine centres used for machining all their own gearboxes.

With the high level of technology and clean room type of environment, the manufacture of the gearboxes and components, ZPMC clearly demonstrate the high quality assurance they embed into all their designs.

We were very impressed with the build quality of all of our cranes and in the professional manner ZPMC have taken about this project. During the review and working closely together with ZPMC, we set out the direction and aspiration on how the cranes will interact within Liverpool2 Terminal and all the surrounding supporting systems that will bring the Liverpool2 project to fruition.

Our relationships with ZPMC and ABB on this project have grown from strength to strength in the past months and will prove to be a massive success to the automatic functioning of Liverpool2.

We look forward to our next trip, when all equipment will have begun commissioning and testing. At this point activity will really ramp up.

ENGINEERING UPDATE

JAMES & STEPHEN

SPREADING THE LIVERPOOL2 MESSAGE

Peel Ports continues to travel the globe to attend trade shows, conferences, events, exhibitions and customer meetings to present the benefits of Liverpool2 to UK shipping and logistics.

RETURN TO INDIAPeel Ports Chief Operating Officer Gary Hodgson has just returned from his second delegation to India, having been to support and present at the Amtoi (Association of Multimodal Transport Operators of India) event in Mumbai.

Supported by our India Shipping Director Ravindra Gandhi, Gary had a busy week of Port tours (Kattupali, JMPT), direct and indirect customer meetings and media interviews.

Images: Above - Peter Faker, Gary Hodgson & Ravindra GandhiBelow - Ravindra Gandhi interview in Project Vendor

INDIAN BUSINESS LEADER HAILS

LIVERPOOL PORT DEVELOPMENTThe President of one of India’s most influential business organisations has endorsed Liverpool2 for its potential to help improve bilateral trade relations.

During a two-day visit to Liverpool, Mr Ram Bhogale, representing the Maharashtra Chamber of Commerce, received a tour of the site and saw at first-hand the technological innovations taking shape at the £300m development.

Mr Bhogale is also Chairman of leading manufacturer AITG, a group of companies with an annual turnover of around INR4,000,000,000 which manufactures a range of products including motorbike components, consumer durables and hospital equipment.

“You need a visionary to change traditional thinking and there is a need to shift paradigms if you are to create new business models. The Peel Group exhibits that visionary thinking with a passion to shift paradigms.

In the Indian manufacturing industry we always say that breakthrough innovation will increase the competitiveness of industry. The logic behind the deep sea container port, Liverpool2 is not only an example of breakthrough innovation but could qualify as disruptive innovation.

There is an opportunity for India to deliver goods into densely populated areas of the UK at a reduced distribution cost which in turn opens up new opportunities. We are looking forward to Liverpool2 being operational so that we can tap into these opportunities.”

Ram BhogaleMaharashtra Chamber of Commerce

Image: Gary Hodgson, Ravindra Gandhi, Ram Bhogale, Mark Whitworth

Images: Above - Peel Ports Stand Below - Gary Parkinson

FRUIT LOGISTICA

For the first time Peel Ports exhibited at Fruit Logistica, Berlin one of the largest fruit and fresh produce exhibitions in the world, attracting 65,000 delegates each year.

Peel Ports stand was located in Hall 23 and Gary Parkinson, Peel Ports Group Asset and Supply Chain Director presented his views on ‘Optimising the Chilled Supply Chain’ at the Wednesday seminar session.

“The trends that we’re seeing may mean exporters having to examine and redesign their supply chain in ways that they haven’t previously. This is especially true when looking at inland distribution, which should also have a major influence on the point of entry to a country. Unless companies understand what’s happening to their goods once they leave the quayside, there is a chance they will be caught out by the changes that are taking place now.”

The traditional model of entry via south-east UK ports and multiple handling before reaching regional distribution centres, is set to be replaced by a more direct route to market that sees imports going straight from the port to the processor.

This switch to more direct routing will be enabled – in part – with the opening of Liverpool2, will enable fresh produce to be imported directly into the North of England from Southern hemisphere origins for the first time in over a generation as its hinterland includes the greatest density of employees in food and drink processing in the UK as well as a large density of supermarket distribution centres.

Gary ParkinsonGroup Asset and Supply Chain Director

www.peelports.com/liverpool2 If you want to find out more about Liverpool2 contact us on:

Telephone 0151 949 6327Email l2sales@peelports.com Web www.peelports.com/liverpool2

Peter FakerSales Director - Containers

Terry BunchRegional Director North America

terry.bunch@peelports.com

Ruth HodgsonGroup Marketing Manager

marketing@peelports.com

David HuckPort Director

Patrick WaltersGroup Commercial Director

Mark WhitworthChief Executive Officer

Julia BradleyGroup Marketing Director

marketing@peelports.com

Andreas MeyerRegional DirectorCentral & South America

andreas.meyer@peelports.com

Gary HodgsonChief OperatingOfficer

Ross ThompsonGroup Sales Director

sales@peelports.com

Jeremy MastersRegional Director Asia Pacific

jeremy.masters@peelports.com

GLOBAL

Ravindra GandhiRegional Director India Subcontinent

ravindra.gandhi@peelports.com