Legal structure of the Port of BarcelonaThe Spanish port system

• The Spanish port system is Governed by law: Law 27/92, reformed 62/1997; Law 48/2003 and Law 33/2010

* “autonomic” ports (basically fishing and leisure ports) that are under autonomic ports (basically fishing and leisure ports) that are under the control of regional governments

* “general interest” ports: ports under the central government control (Ministry of Public works). There are 44 ports of general interest and 28 port authorities (some of them manage several ports).

• Landlord management model: The Port Authority provides the infrastructure and land and regulates the use of this public land, while the services are provided by private operators benefiting from concessions and rentsprovided by private operators benefiting from concessions and rents

• Other characteristics of the Spanish Port system: Self financing and inter ports• Other characteristics of the Spanish Port system: Self financing and inter-ports solidarity

Economic regime of the port Financial Self-sufficiency

Port charges and fees must cover the ordinary expenses of the Port Authority and ensure sufficient profitability to finance future investments and debt repaymentinvestments and debt repayment.

The investments of Port Authorities are financed using their own financial resources and bank loans.

There are no State subsidiesThere are no State subsidies.

The Port of Barcelona: a singular port Economic relevance of the Port

The Port’s contribution to GDP is 2.291 M €

32.000 jobs* , 0,85% employment of Catalonia

Catalonia1,4% GDP

71% Foreign maritime trade**

* Direct + induced

Spain0,3% GDP

21% Foreign maritime trade**

• Every 100€ of income produced in the Port generates 58€ of additional income

Direct + induced** In value terms

in the rest of the economy

• Every 2 port jobs generate 3 additional jobs in other economic sectors.

ITU: Intermodal Transport Unit

After the Port expansion, the Port will be able to generate 5% GDP of Catalonia

Barcelona: a diversified port

Traffic 2010

A highly specialised portContainer traffic (Tm &M TEU) 1999-2009

Traffic 2010Total traffic 45.00 M tm

Container 2 M TEU

Vehicles 700,000

Ro-Ro traffic 300 000 UTIsRo Ro traffic 300,000 UTIs

Cruise passengers 2,4 M pax

The Port of BarcelonaThree ports in one

AirportZona Franca City

Logistics PortLogistics Port Commercial Port Commercial Port

City PortCity Port

Port of Barcelona: strategyThe future of the Port

Main logistics hub of thehub of the South of Europe and the M ditMediterranean

Strategic cityPortMediterranean

HinterlandInterocean routesCargo flows

Client‐oriented: competitiveness/quality          /productivity/efficiency,

Expansion     of the Port and Logistics 

Improved connectivity with  hinterland and /productivity/efficiency,

…g

areas hinterland and 

foreland

1. Expansion of the Port and Logistics areasExpansion of the Port

Expansion of Port infraestructure: More surface, more capacity

New terminal Prat wharf: Hutchison

Investment 500 M €

Concession 30 years

New terminal Prat wharf: Hutchison

Capacity 3 M TEU

Surface 100 ha

Wharf line 1,500 ml

Draught 16.5 m

2008 2012 ProjectCompletionCapacities/year

TonsContainers (TEU)

50 milion2 6 milion

85 milion4 5 milion

130 milion10 milionContainers (TEU) 2,6 milion 4,5 milion 10 milion

2. Improved connectivityIncrease of rail traffic

The container rail traffic of the Port of Barcelona increased significantly in recent

Evolution of rail use in the Port of Barcelona. 2006-2010. Container (Import/

Export)years, reaching 8% in December 2010.

The objective is to reach 23%

p )

8%

10%

80 000

100 000

120 000

nspo

rted

il e

Rail traffic 2010 (% var. 2009)

Container 103.898 TEU +75%

Vehicles 128 093 Ud +22%0%

2%

4%

6%

0

20 000

40 000

60 000

80 000

Con

tain

er tr

aby

ra

% u

se

Obj ti f th il t t

Vehicles 128.093 Ud +22%

Bulk 328.214 tn +195%

0%02006 2007 2008 2009 2010

C

Objectives of the rail strategy:

• Improvement of the rail connections of the Port with the hinterland

• Development of the Port hinterland to Southern and Central Europe• Development of the Port hinterland to Southern and Central Europe

•Increase of rail services

Rail servicesStrategy by transport corridors

ParisLudwigshafen

Strasbourg

From the TCB and TERCAT port rail terminals* Future service

Nº of weekly services In each direction.

5

Paris

Lyon

Strasbourg

2 22*

3

Future service

Vitòria

Bordeaux

Toulouse

Milano3 2*2*

1

25/10

3

Madrid

Zaragoza

BurgosPerpignanLleida *

5 2

2* Transport corridors

EbroTransversal iberian

Tarragona South of FranceEuropeanMotorways of the sea with ItalyMotorways of the sea with Maghreb

3. Client orientation: improvement of productivity and efficiencyand efficiency

Global scale companies (Multinationals)

Main features of world logistics today

New logistics “mega-operators”Cooperation and competition between portsRelation between ports and logistics centresp gChange in the typology and amount of Logistics costs (less inventory costs vs. more transport costs)Lead time (Goods delivery in 24 hours)Geographically integration of logistics activitiesGeographically integration of logistics activitiesChanges in distribution schemas (one vs. several continental distribution centres)Environmental limitations

Main maritime routes

Countries without sea connectionsMain navigable rivers

Main maritime routesMain straits and canals

Why efficiency in maritime logistics is so important?1. Logistics costs are equivalent, depending on the economic sector, to 8-15%

of a product’s retail price and this percentage tends to grow.

Why efficiency in maritime logistics is so important?

2. From 2003 to 2005 the world GDP grew around 2,9%. The maritime transport grew 5,1%.

3. In 2006, world ports handled 440 million TEU, 13,4% more than in 2005. That year, road transport increased 4,5%.

5

4. From 1950, world GDP has been multiplied by 7, and worldwide exports by 100.

5. In Spain, port activity represents 20% of the transport GDP and 1,1% of the total GDP. It creates 35.000 direct jobs and more than 110.000 indirect jobs.

6 I 2007 i S i 55% f t d 83% f i t d b

7 Spanish port traffic has increased 60% in the last 10 years (1996-2005)

6. In 2007 in Spain, 55% of exports and 83% of imports were done by sea. Road transport only accounted for 41% and 16% respectively.

7. Spanish port traffic has increased 60% in the last 10 years (1996 2005).

8. Nowadays, general cargo’s logistics costs represent 4,7% of their total value.

NSTR logistics cost / total cost

The impact of logistics costs on the price of products

0 Agricultural products and live animals 21,1%1 Foodstuffs and animal fodder 16,5%2 Solid mineral fuels 5,9%3 Petroleum products 0,7%

41 5%4 Ores and metal waste 41,5%5 Metal products 18,1%6 Crude and manufactured minerals building materials 32 0%6 Crude and manufactured minerals, building materials 32,0%7 Fertilizers 0,5%8 Chemicals 6,6%

9 Machinery, transport equipment, manufactured articles and miscellaneous articles 4,7%

Logistics costs include all costs of maritime transport (port passage, sea freight), land transport and inventory costs

Only a minor percentage of the costs of logistics chains or even of the maritime leg of these chains, are due to ports

Main port costs

P fPort feesTerminal Handling Charges

(THC=150€ aprox. Far East / Europe)C t i t k i t i l Wh fContainer stockage in terminal - WharfageInspections

Other costs linked to portsOther costs linked to ports

Customs clearanceLoading / Unloading train or truckLoading / Unloading train or truckOther (commissions, land connections, etc.)

P t’ i t th ffi i d titi f l i ti h i iPort’s impact on the efficiency and competitiveness of logistics chains is not linked to costs and/or tariffs, is linked to speed, transparency,

productivity and intermodality

What is an efficient port?

Key features of an efficient portReliability: clients and logistics operators need to know their planning

S d

y g p p g(lead time, etc) is going to be respected and fulfilled. And this despite inspections, etc.

Speed: Reduce as much as possible time of stay of merchandises in the port due to port procedures.

Transparency: clients need to know always what is happening to their

Intermodality: Number frequency capacity price of train barge Ro

Transparency: clients need to know always what is happening to their cargo and why

Intermodality: Number, frequency, capacity, price of train, barge, Ro-Ro connections

AND PRICE!!

Increase in inefficiencies

in a port

Increase of logistics costs (time, price, etc.)for exporters and importers

Reduction of competitiveness of local and regional

Part of the traffic is deviated to other ports

Captive trade from immediate hinterland becomes less

competitivecompanies

Exports and imports are reduced

Companiesreduce production

Increase of land transportation

Reduction of local logistics sector

Increase of CO2 emissions

Reduction of direct and indirect employment in the logistics sector Reduction of employment

Increase of Congestion in roads

Some of the tools developed in order to improve efficiency

1. Portic: The Port Community one stop shop

2 SAC: The customer service2. SAC: The customer service

3. The Quality Plan

2. SAC: The Port’s C������� S������

Transparency and Mediation

Main responsibilities:

•Attention of claims requests and consultationsAttention of claims, requests and consultations•Efficiency Network (Quality Plan) Implementation•Management of non-compliance / breaches of standards / indicators included in the Efficiency Network.y•Mediation between customers, port community agents and administration•Costs reports / analysis for customers•Updated Information of the Port activity and customsp y

The Quality Plan is launched in 1995, having as its main objective to assure the

3� T�� Q������ P���

y , g jsecurity of cargo. The main tool to achieve this objective is the establishment of the Quality team (EQ) that assures reliability and security of cargo during inspections of containers in the terminals and extended the use of seals to 100% of the Port’s containers.

Currently we are in the second phase of the Plan, which focuses on the development of a guarantee brand, based on efficiency commitments, controlled through indicators.

Efficiency Network is the Port’s Brand of Quality

The Efficiency Network is a commitment to quality and efficiency of service between the companies and institutions involved in maritime transportation at Port de Barcelona.

It is a support tool for promoting Port of Barcelona and its operators.

It is a system that promotes the improvement of processes efficiencyIt is a system that promotes the improvement of processes efficiencyat the Port de Barcelona.

Certify for Efficiency Network means offering your customers

SECURITY OF GOODS, INFORMATION AND TRANSPARENCY AND RELIABILITY OF OPERATIONS

EFFICIENCY NETWORK means:Continuous Improvement System

• Periodic measurement of efficiency

indicators PREVIOUSLY DEFINED.

• Random checking for compliance degree

of CERTIFIED companies for guaranteed

processes.

• Analysis of types of complaints and

incidents.

• Reports to define the continuous

improvement to apply to fix incidents.

Service efficiency commitments

- Collection and delivery of goods at deadlines agreed with the customer, within a margin of two hours

RELIABILITY OF OPERATIONS

margin of two hours.

- Clearance within 17 hours.

- Clearance of goods with the participation of SIF within 25 hours.

- Shipment of goods on the envisaged scale according to agreement.

- MMPP entry permit on planned entry day to the Port.

- Notification of the Knowledge of Embarkment availability 10 hours after ddeparture.

INFORMATION AND TRANSPARENCY

Service efficiency commitments

INFORMATION AND TRANSPARENCY

- Provide reliable information on the main operations related to the passage of

goods through the Portgoods through the Port.

S C O GOO SSECURITY OF GOODS

- No incidents will occur to the goods during their stay at Port.

- In case of imports, shipment container will be delivered with the same seal with

which it left the terminal.