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Portugal To Launch Tender For New Sines Port Terminal

Portugal to launch tender for new Sines port terminal

Portugal To Launch Tender For New Sines Port Terminal

Sines, Portugal (PortSEurope) October 14, 2019 – The port of Sines handles around 56% of the country’s containerised cargo, and its container port has been operating above capacity as volumes have steadily risen in recent years – 20,000 TEU in 2004 to over 1.75 million TEU in 2018. Until capacity is increased, meeting forecast demand will not be achieved, and business will be lost to other ports.

The government has announced two actions to address this issue, in view of the conclusions of the market and economic-financial analysis, the “Strategy for Increasing the Competitiveness of the Mainland Commercial Ports Network – Horizonte 2026”

Terminal XXI, the only container terminal currently existing at the port of Sines, is operated by Singapore-based PSA International. An amendment to the concession agreement was signed by the Port of Sines Administration and PSA Sines on October 12, which will allow for new investments in quay expansion and the resizing and modernization of this infrastructure, which was immediately effective.

This will include:

  • A total private investment of €660.9 million (current prices) to be made by the concessionaire, PSA Sines, comprising not only the expansion of the berth and its handling equipment, but also the maintenance , replacement and renovation of equipment already installed in previous phases, throughout the life of the concession;
  • From this investment: €134.4 million will be in infrastructure, completed between February 2021 and end-2023; €9.3 million for railroad expansion, already completed; and €154.2 million of new equipment to be purchased by 2027, for a total of €297.9 million. The remaining €363 million will be invested in equipment renewal over the life of the concession.
  • Extension of the concession term by 20 years, so that the concessionaire can amortize the agreed investment;
  • A 1,950-metre (currently 1,040-metre) quay front, spread over a 1,750-metre front and a 200-metre front, enabling the simultaneous mooring of four state-of-the-art container ships;
  • Installation of nine more “super post-panamax” cranes (total will be 19), 30 park gantries and transport equipment;
  • Expansion of the storage area from the current 42 to 60 hectares;
  • Increased capacity from current 2.3 million TEU to 4.1 million TEU.

With this investment, PSA Sines will waive the right of first refusal or exclusivity in relation to the construction and operation of other container terminals that may be located in the Port of Sines.

Terminal XXI is currently the largest employer in the region, with over 1,000 jobs. This investment enhances job creation, contributing to the socio-economic development of the region and the country. The impact on GDP amounts to €118 million and will promote the creation of around 4,600 jobs if direct, indirect and induced effects are considered. In direct terms, it is expected that 900 new jobs will be created.

Secondly, a second container terminal will be built – the Vasco de Gama terminal.

Formally launching on October 15, an international public tender for the concession of a new container terminal in the port of Sines, Vasco da Gama Terminal, including its design, construction and operation. The deadline for submission of bids is nine months, with a contract award expected in the last quarter of 2020 and start of work in 2021, with a duration of approximately three years.

The new terminal will have an annual handling capacity of 3.5 million TEU and a 1,375-metre long quay with three simultaneous berth positions of the world’s largest vessels (400 m long, 60 m mouth and 24,000 TEU capacity). It will have a 46-acre embankment area, 15 dock gantries and -17.5 m draft.

It represents an estimated total investment of around €642 million in private funds from the future concessionaire, with an estimated €225 million in equipment and €417 million in infrastructure. For this estimated investment amount, the Economic and Financial Study considers a concession period of 50 years.

The construction of the Vasco da Gama Terminal is estimated to have a total economic impact of €524 million, representing 0.28% of GDP and 0.33% of Portuguese GVA. It is estimated that the new terminal will create 1,350 direct jobs in the exploration phase.

The Vasco da Gama Terminal will be built and financed exclusively by private funds through the concessionaire to be selected under the international public procurement procedure that will be launched, including the assumption of all associated risks, materializing the port management model of the port. landlord port type applicable to the national port system and recommended by the European Commission and the OECD. The concession space will remain in the public domain under port jurisdiction, where it will fully revert at the end of the concession period.

The realization of these two projects makes it possible to place Sines Port as one of the main ports in the world and particularly “West Med”, in terms of port offer in the containerized cargo segment, reaching over 7 million TEU, guaranteeing the ability to compete and attract new cargo and customers from global logistics chains, reinforcing Sines’ positioning in the international maritime-port context.

Public investment in the Port of Sines for modernization and digitization over the next five years is around €300 million.

PSA Sines (also known as Sines Container Terminal) started operations in May 2004 and is located 150 km south of Lisbon. Well connected by road and rail to the hinterland, the terminal is positioned to be the preferred Atlantic gateway for Portugal and the Iberian Peninsula.

PSA Sines is also located at the crossroads of two main shipping routes, the North-South (30 nautical miles away) and the East-West (70 km nautical miles away).

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