ANNUAL REPORT 2013 PORT ACTIVITY TENERIFE MANAGES TO SECURE A FOOTHOLD IN CHINA. Home > Port activity

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1 ANNUAL REPORT 2013 Home > Port activity Home Presentation Financial statement Technical data of the port Works or activities authorized to third parties Traffic statistics Works and projects Regular Shipping Lines Port activity Human resources Cruise traffic Sociocultural activities Port community directory Photo gallery Table of contents PORT ACTIVITY TENERIFE MANAGES TO SECURE A FOOTHOLD IN CHINA Download PDF After more than a year of hard work and numerous business contacts whith Chinese authorities Puertos de Tenerife signed on June, 6th, its first alliance with a Chinese harbor, Shenzhen, the third largest container port in the world, after closing 2012 whith almost 23 million TEUs and surpassing at the beginning of 2013 the giant Hong-Kong. With this agreement, Tenerife manages to secure a foothold in China through one of its largest harbours, a real Asian hub located to the south of the country. Its main authorities were present in the World Port Strategy Forum, celebrated in Santa Cruz de Tenerife, from June, 6th -8th, organized by the Global Institute of Logistics (GIL). The agreement recognizes the important increase in maritime transport forecasted for the 21st century, so in view of this reality both ports have to face common opportunites and challenges. The combined development of commercial relationships linked to maritime transport, in addition to deepening mutual knowledge, are the pillars on which the agreement is based. Dong Yanze, Port Administration Chief of Shenzhen Municipality Transport Committee, declared that the celebration of this Forum is proving us the real strategic value of the port of Santa Cruz de Tenerife, recognizing the important connections of the port with Europe and Africa, especially highlighting the task force by the Port, the harbor community and the different institutions of the island under the brand Why Tenerife?, an experience which will serve as inspiration for the development of the Port of Shenzhen. The Port Administration Chief of Shenzhen, also declared that the data and conclusions obtained from the Forum will be analyzed and sent to millions of companies of the Pearl River Delta, where the harbor is located, in order that they have complete information about the Port of Tenerife. Inauguration. The President of the Government of the Canary Islands, Paulino Rivero, together with the President of Ports of Tenerife, Pedro Rodríguez Zaragoza, the vice-president of the Council of Tenerife, Carlos Alonso and the Major of Tenerife, José Manuel Bermúdez, were in charge of the inauguration, together with the representative of the Global Institute of Logistics, Kieran Ring. The Forum in International Logistics was celebrated at the Hotel Mencey in the capital town. In his speech, Rivero declared his wish that the international investors participating in the meeting could see for themselves that Tenerife is a strategic logistic platform. The President referred to international studies ranking the Canary Islands alongside ports of the stature of Singapore and Miami as a strategic distribution gateway, with its good communications infrastructure, political stability and legal certainty, and tax incentives. He added that the overgrowing presence of multinationals on the islands was proof that major global investor consider us to be an international freight distribution centre, especially to America and Africa. In the case of Africa, he underlined its significant growth rate, saying that it was set to be the major region for development in the 21st century. The President of Ports of Tenerife, Pedro Rodríguez Zaragoza, was also bold. He declared: Yes, our port is now prepared to become the hub for Western Africa, which was confirmed by Kieran Ring, who said that the potential of Tenerife as a strategic location has to be materialized; it is no longer a mere concept. The port of Tenerife can be this physical infrastructure serving China s logistics with Africa. Kieran Ring declared that its facilities have the potential to become one of the twenty two key ports needed in the years ahead to satisfy the demand of the regions regarding harbor infrastructure.

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4 ANA PASTOR, MINISTER OF DEVELOPMENT: THE CONTAINER TERMINAL OF TENERIFE, ONE OF THE MOST MODERN IN THE WORLD Terminal de Contenedores de Tenerife (TCT), the second public terminal for container traffic at the harbor of Santa Cruz de Tenerife, officially inaugurated operations on June 12th, during an event presided by the President of the Canary Islands, Paulino Rivero, and the Minister of Public Works, Ana Pastor, accompanied by the President of Puertos del Estado, José Llorca; the head of Puertos de Tenerife, Pedro Rodríguez Zaragoza; the Major of Santa Cruz de Tenerife, José Manuel Bermúdez and the chairmen of the companies OHL and Marítima Davila, Juan Miguel Villar Mir and Eduardo Davila, respectively. For Pastor, TCT is one of the most modern container terminals worldwide. She declared that its operation will be a milestone for containerized transport on the island, both for transshipment and import-export, capitalizing on its geostrategic location. Villar Mir coincided with the Minister, indicating that one of the reasons for his investment in this harbor is its value as logistics platform between Europe, Africa and the Americas. According to the announcement of TCT, integrated by OHL Concesiones and Marítima Davila, the second phase of the terminal will be ready by 2014, thus allowing reaching the committed 200,000 TEUs in its eleventh year of activity and exceed the 600,000 TEUs during the concession period, which initially is of thirty years.

5 THE PORT OF SANTA CRUZ DE TENERIFE, ONE OF THE FOUR HARBORS WORLDWIDE SUPPLYING RMK500 FUEL

6 The port of Santa Cruz de Tenerife is one of the four ones worldwide supplying RMK500, a high quality fuel specifically designed for long-distance container ships as substitute of the generally supplied 380, assuring the same performance at between eight and ten US $ less per ton. Besides Tenerife, only the giants of Algeciras, Rotterdam and Djakarta supply this fuel, exclusively supplied by Compañía Española de Petróleos (CEPSA). This large multinational company has within the port of Tenerife a tank of 8,175m3 located on the rear of the Dársena del Este, where the public terminals are located. On the Canary Islands, only Santa Cruz de Tenerife offers the combined supply of RMK500 and low sulphur fuel, obviously in addition to the rest of the other common products. CEPSA, CAPSA AND PETROCAN, COMMITTED TO SOUND ENVIRONMENTAL PRACTICES Compañía Española de Petróleos (CEPSA), Compañía Auxiliar del Puerto (CAPSA) y Petróleos de Canarias S.A. (PETROCAN) are already applying in their concessions in the ports of Santa Cruz de Tenerife and Santa Cruz de La Palma the agreements on sound environmental practices signed with the Port Authority of Santa Cruz de Tenerife, thus becoming the three first companies incorporated to this new system for environmental respect and defense. The active environmental practices of CAPSA in the significant and priority aspects will represent a 15 per cent discount on the activity fees granted by Puertos de Tenerife. CAPSA will reinvest 30 per cent of this discount to improve its environmental performance in its port concessions, with continuous improvements in aspects like acoustic emissions and accidental spills. In the case of CEPSA and PETROCAN, the compliance of the conditions included in the agreement will represent a general discount of 15 per cent in the activity fee and up to 20 per cent in the case of the fee for liquid bulk operations. CEPSA and PETROCAN will reinvest 70 per cent of the activity fee discount to improve the environmental performance in their concessions.

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8 THE PORT, WITH ELECTRICAL MOTORBIKE Under the slogan A more pleasant, clean and sustainable driving, Tohqui Europa, a company located in the Tenerife Free Zone of the Port of Santa Cruz de Tenerife started to export its electrical motorbikes to the main European countries. With two polyvalent assembly lines, the company has the capacity to produce up to 1,000 vehicles each month, and is currently developing different agreements to establish a wide distribution network to cover the whole national territory and the main European countries. One of the models of TOHQI motorbikes, a member of the APEX Program Spain Export and Investments by ICEX is already part of the fleets of the Port Authority of Santa Cruz de Tenerife, after being purchased as a clear sign of support to this 100 per cent Spanish company.

9 LA ESTACA WELCOMED 10,000 PASSENGERS LINKED WITH THE EVENT BAJADA DE LA VIRGEN DE LOS REYES. Between Tuesday, July 2nd, and Friday, July 5th, seven ships of Fred.Olsen and Naviera Armas took about 8,000 passengers and 1,750 vehicles to the Port of La Estaca, however arrivals commenced to increase from the second half of June. Thus approximately 10,000 visitors and 2,200 vehicles arrived per ship to the Isla del Meridiano to celebrate the Bajada de la Virgen de Los Reyes, in addition to the logical increase of cargo vehicles due to the generated demand of goods.

10 PUERTOS DE TENERIFE AND CAPE VERDE, FAVORING AGREEMENTS OF COMMON INTEREST IN MARITIME TRANSPORT The president of Puertos de Tenerife, Pedro Rodríguez Zaragoza, and the Minister of Infrastructure and Transport of Cape Verde, Sara María Duarte Lopes, celebrated during the month of April a business meeting, during which the basis for several agreements if common interest in the area of maritime transport were set. The meeting was celebrated in the framework of the visit of the president of the Port Authority of Tenerife to Cape Verde as part of GESPORT. During these dates, he also met technicians and managers of ENAPOR, the Cape Verde Port Administration Company, presiding the meeting of the GESPORT members. TWENTY PROFESSIONALS FROM THREE COUNTRIES, QUALIFIED AND TRAINED AS PROTECTION OFFICERS

11 Twenty professionals of the harbor industry substantially improved their knowhow in the area of harbor safety taking part in the OPIP Course Oficial de Protección de Instalaciones Portuarias ( Port Premises Protection Officer) celebrated at the venues of Puertos de Tenerife during the month of March. This qualification and training course is part of the activity program celebrated under the GESPORT Program, Red de Cooperación Euroafricana en el Sector Portuario (Euro-African Cooperation Network in the Harbour Industry), approved by the Committee of the Transnational Madeira-Azores Canarias Cooperation Program, co-financed by ERDF Funds. THE LIGHTHOUSE OF PUNTA DEL HIDALGO, CHOSEN TO MEASURE THE FORMATION OF NANOPARTICLES ON THE COAST The lighthouse of Punta del Hidalgo, situated in Tenerife within the provincial Port Authority, was elected as the "ideal placing" by the National Institute for Aerospace Technology "Esteban Terradas" (INTA), to study the formation of nanoparticles on the coasts and its relation with the iodine monoxide present in the atmosphere. Nanoparticles are currently one of the priority areas of research in the scientific and technological development, with a wide range of potential applications in fields such as biomedicine, electronics and even in different areas of environmental protection. The project, called AMISOC, aims to improve the knowledge of the minority components of the atmosphere that play an important role in ozone chemistry. It involves two seasons, the Tenerife one will be the main of project covering the island, at different altitudes with the necessary equipment for measuring gases and aerosols. Above sea level it will be specifically study the formation of nanoparticles and their relation with gases such as carbon monoxide. For INTA, the lighthouse at Punta del Hidalgo stands in an "excellent location" on the north coast and close to the sea, with minimal interference from the Earth's surface. This avoids that the detection of these particles is affected by contaminant emissions from, among others, industrial and port areas. The project, under the National Plan of I+D+ i [Investigation, development and Innovation], has the support of the Center for Atmospheric Research of Izaña of the Spanish Meteorological Agency (AEMET) and the Center for Atmospheric and Climate Research of the Higher Council for Scientific Research.

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13 THE PORT OF SANTA CRUZ DE TENERIFE HAS BEEN DECLARED AS "PRIORITY" IN THE TRANS-EUROPEAN TRANSPORT NETWORK The port of Santa Cruz de Tenerife was declared by the European Parliament as "priority" port on the European transport networks (TEN-T), allowing it to receive, based on the projects that it presents, the distribution of 23,200 million Euros for transportation improvements that the European Union will give during the period This amount is part of an even larger amount of 29,300 million Euros for the financial mechanism corresponding to "Connecting Europe", and also includes energy and telecommunications networks. The vote held in the European Parliament marked the end of three years of intense negotiations for the "priority" transport projects for the European Union. These include the Mediterranean and the Atlantic corridors, which are part of the nine routes expected to go across Europe in 2030 in the so-called Core Network and that will be co-financed up to 40 percent of the cost of its development. Reina Sofia Airport is also included, in this case on the main network, along with nine other large airports in the country as well as other twelve facilities at the port of Santa Cruz.

14 PORTS OF TENERIFE, REPORTER ON THE MOST IMPORTANT TRANSPORT AND LOGISTICS FAIR IN ASIA Ports of Tenerife took active part in the eighth International Exhibition for Logistics and Transport of China, held in Shenzhen from 14 to 16 October, as a speaker at various conferences on port logistics. This fair is already considered the most important of the sector in Asia. With the primary objective of promoting the port of Santa Cruz de Tenerife and attract new points of goods transhipment, the head of Ports of Tenerife, Pedro Rodríguez Zaragoza led a delegation that held several meetings with maritime and logistics operators on the continent. Not surprisingly, it is estimated that this fair was visited by about eighty thousand professionals, from providers of logistics service, equipment and technology to some of the leading organizations in the sector. Rodríguez Zaragoza highlighted not only the strategic value of our ports, but its good communication infrastructures, the political stability and legal certainty of our islands and tax incentives of ZEC [Canary Islands Special Zone] and the Free Trade Zone defining us as an increasingly valued international distribution centre of goods. Likewise, he also acted as a representative of the brand Why Tenerife? In which the provincial Port Authority is involved. Rodríguez Zaragoza reported, with a clear focus on maritime transport relations with West Africa, that our port can be the physical infrastructure hedging the logistics of China with that continent.

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16 OPDR CELEBRATES THE CENTENARY OF ITS SHIPPING LINE BETWEEN THE CANARY ISLANDS AND NORTH EUROPE The regular line of the OPDR group connecting the Canary Islands with North Europe celebrated its centenary in 2013, a hundred years joining the said enclaves with a service that began exporting bananas to Europe and, today, is part of one of the largest logistics companies in the Canary Islands and the Iberian Peninsula. This achievement was recognized by the Board of Directors of the Port Authority of Santa Cruz de Tenerife at its meeting on 6 November, agreeing to formally congratulate the group on its anniversary. It was in September 1913 when OPDR began exporting fruit from the Canary Islands to Europe by steamships. According to the director of the shipping agent of the group in Tenerife, Klaus Elsner, "this service became a bilinear service because fruit was exported and various materials such as fertilizers and machinery for agriculture were imported. Currently OPDR Iberia as multimodal logistics company not only continues to export Canary fruit mainly to Germany, Holland and England, but also serves as shipping agent for luxury cruises in our ports.

17 There are two operational lines between the Canary Islands and Europe, one of them covering the route of Canary Islands-Iberian Peninsula-Casablanca (CISS), and the other the route of Canary Islands Express (SECI) with regular connections between Seville and the Archipelago. Statistics Dues and charges 2013 Annual Report 2012 Shipping lines

18 ANNUAL REPORT 2013 Home > Port activity > Human resources Home Presentation Financial statement Technical data of the port Works or activities authorized to third parties Traffic statistics Works and projects Regular Shipping Lines Port activity Human resources HUMAN RESOURCES ANNUAL ACTIVITY REPORT HUMAN RESOURCES DEPARTAMENT Cruise traffic Sociocultural activities Port community directory Photo gallery Table of contents Statistics Dues and charges 2013 Annual Report 2012 Shipping lines