Key Success Factors to deliver your terminal automation project on time TOC Europe, 26 June 2013 Joost Achterkamp Managing Director Solid Port Solutions

The approach is based on the successful delivery of the EUROMAX Container Terminal in Rotterdam With 16 STS, 58 ASC and 96 AGV until now the biggest one time delivery of a fully automated terminal and the KHALIFA Port Container Terminal in Abu Dhabi The first semi-automated terminal in the Middle-East with 6 STS, 30 ASC and 20 SC’s The Approach

Key Success factors 1. Business Process Modeling 2. Procurement Strategy 3. Validation by Simulation 4. End-user involvement 5. Integrated Testing & Commissioning 6. Measuring Performance and Reliability 7. Good teamwork & the right people!

Business Process: A specific ordering of work tasks and activities across time and place, with a beginning, an end, and clearly defined inputs and outputs. Business processes are the structure by which the organization physically does what is necessary to produce value for its customers. Business Process Modeling: BPM is the analytical representation to describe and communicate the current or intended future state of a business process in a structured manner so that it shows how the work gets done and by whom. BPMN ADPC and ADT used NIMBUS CONTROL as a BPM Notation tool for describing all the business processes on the different levels in flow-chart like diagrams that can easily be understood by operations and IT. 1. Business Process Modeling

Benefits Input for TOS specifications and supporting systems Tool to develop test scenarios, test cases and acceptance criteria Centralize control of human resources, systems and processes Create visibility into end-to-end business processes Agility to rapidly re-engineer processes Improve process efficiency with productivity improvement Effective management and cost control Can been used as a Training Tool Job Task descriptions can be extracted from the BPM 1. Business Process Modeling

2. Procurement Strategy Team huddle Project/Procurement Contract type selection Strategic planning of the Scope of Work Single point of coordination on site Dedicated Procurement team Segregation of technical and commercial bid openings Concentrate on the project risks

Quay Crane ASC Straddle C AGV Other vehicles TOS High Low High Price Risk ASC/TOS interface 2. Procurement Strategy

OptionsPlusMinus Individual Contracts (STS, SC, ASC and TOS separately)  Greater competition, better price  ADPC control over all suppliers  Not all suppliers are influenced when one doesn’t perform  Responsibility. ASC/TOS with Employer  Employer as Integrator  More management time/cost  Delivery mismatch possible  No integrated planning ASC/TOS combined STS, SC individual  Good OEM competition  Single point responsibility for ASC/TOS  Proven ASC/TOS Solution  Best OEM bids to be selected  Implementation could delay  No overall integrated planning One Turn Key contract for all Equipment Incl. ASC/TOS  Single point responsibility  Proven ASC/TOS Solution  Less Employer Supervision  Overall Integrated Planning  Reduced Competition  Back-to-Back contract takes time  Unable to select best OEM bids  Increased overall price Future?

3. Design validation by Simulation Minimum number of studies: Berth capacity Can your quay wall handle the predicted number of vessels? Handling capacity Does the system deliver you the designed performance under a 24 hr peak load? Storage capacity Can your yard still perform under the predicted peak storage? Sensitivity Analysis for various scenarios: vessel types, arrival patterns and call sizes quay lay-out under the crane equipment numbers various dwell times and seasonal patterns

3. Design validation by Simulation Every simulation study highly depends on the quality of the input parameters Validation of the input parameters by Operations is essential and even small changes can have a big impact on the result It is advised to look at ranges of productivity rather than at exact figures. The actual operational influences will fluctuate and are not easy to calculate by simulation It is also advised to check the input parameters during the execution of the project, updated information can be a reason to adjust the design assumptions Check the simulation results with a full terminal emulation study to validate the performance of the TOS under peak load

The involvement of the operational and technical dept of the end-user is key for a successful delivery in order to be able to: - Validate the simulation assumptions - Give input to and sign off of the BPM - Approve the functional design - Define the Acceptance Criteria for both equipment and TOS - Deliver the IT-infrastructure/hardware - Assist the Testing & Commissioning team - Phased hand-over over of areas - Organize Go-Live tests 4. End-user Involvement 4. End-user involvement

13 During the project execution it is preferred option that the Testing & Commissioning process should be a joint effort for the Operator, the OEM and the TOS supplier in a Collaborative Testing Strategy (CTS) This integrated approach has following advantages: - Shorter lead time of overall testing (no repeat!) - Better use of the testing resources - Direct involvement of the end-user - Predefined Test scenarios & test cases based on BPM - Clear acceptance criteria per Contract Milestone - Defects administrated in one system (Quality Center) - Clear governance structure to resolve conflicts with a Triage Committee and Collaborative Testing Board 5. Integrated Testing & Commissioning

14 5. Integrated Testing & Commissioning

C Assembly and Yard Preparation ASC-1/ LS ASC-2 / WS Commission Live Equipment and TOS Testing Block Delivery Report Performance Testing 1152 moves 24 hours Startup Example 1 Stack lane with 2 ASC (Landside and Waterside) Testing Cycle per ASC block Prep Work Endurance (8 hours) Endurance (8 hours) Block Test Accuracy Testing Functional Testing Functional Testing ROS Testing CTS team 5. Integrated Testing & Commissioning

17 TOS performance test by means of emulation (TBA Controls) Example Khalifa Port, peak performance scenario full terminal: WS : 390 mvs/hr QC : 39 mvs/hr LS: 300 mvs/hr Yard density: max. 85% 10 QC 52 ASC 30 SC 2 Deep sea vessels 1 Feeder vessel The emulation test resulted in 41.8 QC mvs/hr under realistic operational conditions 6. Performance and Reliability Measurement

Continuous cooperation between OEM, Electrical supplier and operator is needed to reach the contractual MMBF figures Week avg 6. Performance and Reliability Measurement

Study ModifyImprove Deliver Construct Design Disciplines Operations Civil H&S Environment Equipment Security Systems IT-Infra Simulation Government PPP/BPM Disciplines Operations Civil H&S Environment Equipment Security Systems IT-Infra Procurement Finance PPP/BPM Proj. Control Simulation 7. Good teamwork & the right people! Disciplines Operations Civil H&S Environment Equipment Security Systems IT-Infra Procurement Finance PPP/BPM Proj. Control Simulation Disciplines Operations Civil H&S Environment Equipment Security Systems IT-Infra Procurement Finance PPP/BPM Proj. Control Simulation Disciplines Operations Civil H&S Environment Equipment Security Systems IT-Infra Procurement Finance PPP/BPM Proj. Control Simulation Disciplines Operations Civil H&S Environment Equipment Security Systems IT-Infra Procurement Finance PPP/BPM Proj. Control Simulation Interface management

7. Good teamwork & the right people! The approach of Solid Port Solutions: Step 1:Analyze your project Step 2: Advise on the project organization Step 3:Check the availability of experienced staff within your own company Step 4:Review the project scope and focus on the main deliverables Step 5:Form a team of own staff and Solid Port Solutions experts Step 6:Take responsibility of the delivery of the agreed scope Step 7:Team up with consultants, contractors and suppliers GOOD TEAMWORK with all parties involved. Detailed control of the INTERFACES. -

T 7. Good teamwork & the right people! THE PRACTICAL AND PROFESSIONAL APPROACH