Seine-Nord Europe CanalCentral link of the

Seine-Scheldt Inland Waterway

RTE-T priority projet n°30

Nicolas BourDirecteur Mission Seine-Nord Europe

Voies Navigables de France

4 octobre 2010

Plan of the presentation

• History and Key decisions of the project

• Presentation of the Seine-Nord Europe canal

• Issues of the project

• Trafic and global benefits

• Financing and PPP contract

• Partnerships of the project

• Questions/answers

Link between basins of Seine and Scheldt towards the 20 000 km of the european large-gauge waterway network

IN FRANCE : -Seine-Nord Europe canal -Northern extensions : Dunkerque-Scheldt and Deûle canals, Lys, re-opening of the Condé-Pommeroeul canal- Southern extensions : Oise from Compiègne to Conflans-Ste-Honorine

IN BELGIUM:-Flanders : Lys and the lower Scheldt- Wallonia : Scheldt and the Walloon ridge.

Seine-Scheldt

Partnership between France Flanders and Wallonia

France, Flanders and Wallonia have worked in close collaboration since 2003

In July 2007, they submitted a joint request for a grant from the European Commission.

In september 2009 : creation of the Intergovernmental Commission (IGC) between the 3 Governments to follow the preparation and implementation of the Seine-Scheldt project.

In April 2010 : creation of the European Economic Interest Grouping (EEIG) between VNF, SPW and W&Z, to implement the financial coordination of the project, the coordination of research and procedures, the harmonisation of pricing conditions on the cross-border section and the harmonisation of the traffic

management condition.

1975 : Part of Strategic plan of french inland waterways1993 : Part of strategic Plan of european inland waterways

1993 : Public debate on opportunity of the project1995-1998 : preliminary studies and consultationsMarch 2002 : Selection of the corridorDec. 2003 : Priority project in France Sept 2008 : decree of public interestSept 2008 : Start of land acquisition and archeological surveysDec 2008 : Decision of TEN-T to finance the project in MAWP 2007-2013March 2009 : Financing agreement between French State and RegionsApril 2009 : Launch of the call for tender ( PPP contract) June 2010 : Start of the preliminary works

History of the project (key dates)

Key decisions of the project

2004 : inclusion of Seine-Nords Europe in EU’s

priority transport projects TEN-T

2006 : Choice of the PPP Contract scheme

2008 : Declaration of public utility of the project

2009 : Decision to develop the platforms in separate contract, but in coordination, with the PPP

Plan of the presentation

• History and Key decisions of the project

• Presentation of the Seine-Nord Europe canal

• Issues of the project

• Trafic and global benefits

• Financing and PPP contract

• Partnerships of the project

• Questions/answers

Seine Nord Europe canal project

A canal 106 km long (class Vb) from Compiègne to Aubencheul-au-Bac comprising:

8 reaches connected by 7 locks (single chamber) with water-saving basins

2 water storage reservoirs

3 aqueducts

4 multimodal platforms and7 loading/unloading quays

5 boat harbours + moorings for passenger vessels

Images of the future canal

Seine-Scheldt :

a multimodal

platforms

network

– 360 ha of industrial port and logistics zones : 4 platforms

– Enhancing the agricultural and industrial potential of the regions

– Locating logistics distribution centres

– Contributing to volume concentration

– Developing intermodality - water-rail-road

Port and logisticszones along the canal

Noyon

Nesle

Péronne-Haute-

Picardie

Cambrai-Marquion platform

Forecast water transport in 2020

– Bulk: 1.215 Mt

– Containers: 30 000 TEU

Size of port area: 156 ha

– Including 30 ha for a logistics park, 18 ha for an activity park and 52 ha of industrial and logistics land connected to the waterway

– A 20 ha multipurpose container terminal

Intermodal facilities

– 1000 m quay

– Rail services

1400 jobs in 2020

PLATFORM Developer & Manager

PPP canal

ContractPrivate C°

Canal construction & opérations + quays walls

construction

Concession/Rights to operate Contract

French Government

Regional Public partners

Infrastructure development

Container TerminalLogistics & Industries areas

Bulk and General Cargo Terminals

• Multi users or dedicated terminal• Barge, Rail, Road Handling• Empty Depot …..

Others Private Partners

Renting/Lease Contract

Construct and operate workshops, plants, warehouses

Platforms development organisation

Plan of the presentation

• History and Key decisions of the project

• Presentation of the Seine-Nord Europe canal

• Issues of the project

• Trafic and global benefits

• Financing and PPP contract

• Partnerships of the project

• Questions/answers

A project for french and european economy

• Improve competitiveness of european economy

• Contribute to economical and indsutrial development of regions and territories

• Link important regions of production and goods consumption in north Europe

• Embody sustainable development issues in transport policies

A project for the transports network• Eliminate a major bottleneck

• Reinforce the european network of transport

• Strengthen efficiency of the link between the 7 seaports of the northern range

• Develop network of platforms

• Restructure the logistical activity in north Europ

Plan of the presentation

• History and key decisions of the project

• Presentation of the Seine-Nord Europe canal

• Issues of the project

• Trafic and global benefits

• Financing and PPP contract

• Partnerships of the project

• Questions/answers

Nature of goods transported on SNE

2020Conteneurs, colis lourds,

véhicules25%

Produits chimiques et

engrais7%

Matériaux deconstruction

34%

Produits métallurgiques

8%

Produits énergétiques

5%

Céréales21%Containers, heavy

loads, vehicules 25 %

Chemicalsproducts, fertilisers

7%

Cereals, Agro-industry

21 %

Energy products 5 %

Steel products 8 %

Construction materials 34 %

• 75 % of the economics benefits come from reduction in transport costs, 25 % from reduction of external costs.

• These benefits concerne France, Belgium, Netherland and Germany, concentrated in the regions of production and goods consumption.

• 25 % of the benefits are concentrated in the 7 seaports of the northern range

10 billions euros of global benefits

Scénario logistique: répartition par région des avantages (VAN) du projet

10%

5%

11%

12%17%

20%

17%

Nord-Pas-de-Calais

Ile-de-France

Picardie

Haute-Normandie

Reste de la France

Wallonie

Flandre

Pays-Bas

Allemagne

Belgique15%

France 75%

Pays-Bas 7% Allemagne 3%

Distribution of global benefits

Plan of the presentation

• History and Key decisions of the project

• Presentation of the Seine-Nord Europe canal

• Issues of the project

• Trafic and global benefits

• Financing and PPP contract

• Partnerships of the project

• Questions/answers

Project financing prospects

• EU under the TEN-T programme : 333 M€• State : 900 M€• French local authorities : 900 M€

• Private partners under a public-private partnership contract (decree of 17 June 2004) : 2 100 M€

Total of the financing prospects (euros 2015) 2 400 M€

• Favorable opinion given by the PPP Contract support Unit in october 200

• Reduction of construction time and risks

• Public funding requirement reduced

• Project enhanced through the “competitive dialogue” with private candidates

Eligibility and relevance of a partnership contract

Technical and financial optimisationDistribute risks in advance among the public and private partners :

• intergrate design, construction, operation, maintenance and renewal to overall optimisation of the project in the long term and respect costs and lead times

• ensure that water supply, transfer and flood control issues are tackled efficiently

• include initiatives of the private sector partners for the development of side activities,

•obtain higher performance levels thanks to the mechanisms of profit incentive for the private-sector partner.

Important economics benefits, due to reduction in transport costs, permit to take tolls, and to preserve the competitiveness of the mode, in comparaison to raod and rail.

Tolls

equity

Lenders

Sponsors

SPV PPP

CP contract

Subsidies and rentsConstruction

debt/senior debt

Canal users

Tolls

maintenance , operate and regeneration

Canal, water storage,civil works of platforms then,maintenance, operation and

regeneration of the canal

Design & Build

PPP structuration

ststructurStructuration du PPP

Other spvs

Ancillary activities developped by the

PPP(water management, energy,real estate,

tourism, …)

Other public contributers

UE ,local authoritiessubsidies

State

PPP contract organisation

Detailed studies and competitive dialogue : 2010-2011

Archaeological surveys : 2008-2011

Land acquisition : 2010-2011

Closing of PPP Contract : 2012

Opening of the canal : 2016

Forecasted schedule

•Archaeological diagnosis have been done on more than 1500 ha

• Archaeological excavation have begun in 2010

•Preliminary works to modify profile of the A29 motorway

Plan of the presentation

• History and Key decisions of the project

• Presentation of the Seine-Nord Europe canal

• Issues of the project

• Trafic and global benefits

• Financing and PPP contract

• Questions/answers

Questions and answers