Port activity. Contents

Port activity Contents PORTS OF TENERIFE, LEADER OF THE EUROPEAN TRANSNATIONAL COOPERATION PROJECT, GESPORT... 2 TENERIFE, BUSINESS FORUM WITH AFRICA... 3 LARGE ATTENDANCE OF SECTOR PROFESSIONALS AT THE FIRST SEMINAR GESPORT... 4 Agreement with the Chamber of Commerce and Industry of Burkina Faso... 5 PORTS OF TENERIFE AND THE AUTONOMOUS PORT OF NOUADHIBOU, PRO ONGOING COOPERATION... 5 II INTERNATIONAL PORT WOMAN DAY... 6 THE CONSOLIDATION OF THE CANARY ISLANDS AS A LOGISTICS PLATFORM, TARGET OF THE LOGISTICS AND TRANSPORT ATLANTIC EXHIBITION II (SALT)... 6 FIRST CONGRESS OF MID-ATLANTIC PORTS... 7 PORTS OF TENERIFE COOPERATED INTERNATIONALLY THROUGH THE ICHCA TO DEVELOP AS A LOGISTICS PLATFORM... 8 ACCIONA TRASMEDITERRANEA LINKS DAILY TENERIFE, GRAN CANARIA AND FUERTEVENTURA IN ITS RETURN TO THE INTER-INSULAR TRAFFIC... 9 INCREASING RO/RO TRAFFIC WITH THE PORT OF CADIZ... 9 THE PORT OF LA ESTACA, AN EMERGENCY EVACUATION BASE FOR EL HIERRO POPULATION. 10 AWARDED THE BUILDING OF THE FACILITIES FOR SCANNING CONTAINERS AT THE PORT OF TENERIFE... 11 TRAINING SUPPORT FOR AFRICAN PORT WOMEN WORKERS... 12 PUNTA CUMPLIDA LIGHTHOUSE, FIRST IN EUROPE TO USE HIGH POWER LED... 12 ONE HUNDRED NEW BERTHS REORDER THE MARINA AT THE PORT OF LOS CRISTIANOS... 13 Related Works... 13 HUMAN RESOURCES 1. WORKER S TRAINING PROGRAM.... 14 2. STAFF COMPOSITION AND EVOLUTION... 18 3. WORK-RELATED RISKS PREVENTION.... 23 4. TEMPORARY DISSABILITY AND WORK RELATED ACCIDENTS.... 26 5. DEPARTMENT STUDIES AND PROJECTS... 28 6. SOCIAL ACTIONS... 33

PORTS OF TENERIFE, LEADER OF THE EUROPEAN TRANSNATIONAL COOPERATION PROJECT, GESPORT Ports of Tenerife has been elected leader of the European transnational cooperation project MAC 2009-2013 GESPORT being the overall objective to create a Euro-African network for sustainable cooperation in the port sector- meeting this way the territorial cooperation as main aim of the European Union cohesion policy. Thus, GESPORT defends cooperation as a value for the integrated development of the Azores, Madeira and the Canary Islands and of these with other countries in their geographical area. It aims to place the Macaronesian RUP as an Atlantic platform for freight and port services, as well as a focal point of maritime distribution. Furthermore, its goal is to strengthen maritime relations between regions and participating countries, promoting sharing knowledge on port management, human resources training, good environmental and safety practices and modernizing the port infrastructure. The role of the Port Authority of Santa Cruz de Tenerife as GESPORT project leader is serving as the speaker, representing other partners, taking responsibility for the overall management of the awarded funding and exercising all the functions that are essential for the proper execution of the project and partnership management. Along with the ports of Tenerife they are partners of the Port Authority of Las Palmas, their counterparts in the ports of Madeira, Gambia and Cape Verde, and the autonomous ports of Dakar, Nuadibú and Nouakchott. The program, approved by the Management Committee of the Transnational Cooperation Programme Madeira-Azores-Canary Islands (MAC) 2007-2013, has a total ERDF co-financing of 453,750, representing a funding rate of 85% over the cost of implementation. The Port Authority of Santa Cruz de Tenerife is involved in GESPORT providing 237,500, 201,875 of this sum co-financed with funds from MAC programme 2007-2013.

TENERIFE, BUSINESS FORUM WITH AFRICA Tenerife hosted between March 29 and April 1 the Conference of Business Alliances with Africa (International Partnerships Conference: Doing Business with Africa), a real business forum between companies and institutions working in Africa. It served to place the island as base for American and European companies working in West Africa. Organized by the Corporate Council on Africa (CCA), in collaboration with the European Business Council for Africa and the Mediterranean (EBCAM), the Chamber of Commerce, Industry and Navigation of Santa Cruz de Tenerife, the Council of Tenerife and the Government of the Canary Islands, it had the clear objective of providing managers the opportunity to acquire specialized knowledge and practical tools to successfully invest in the African continent, while facilitating personal contacts with financing multinationals from the U.S., Europe and Africa. The forum also aimed to bring business development with Africa to local businesses and facilitate other arrangements on innovation, training and logistics between North American and African companies and the archipelago. The Conference of Business Alliances with Africa brought together around 300 businessmen from America, Africa, Europe and Asia along with those responsible for administration of these areas, heads of multilateral and major financial institutions. The conference consisted of different seminars and workshops focused primarily on the sectors where new opportunities have been detected within these emerging markets: ICT, renewable energy and connectivity. Similarly, in order to promote the competitive advantages of Tenerife and show first-hand the infrastructures of the island, organized visits were programmed to the Technological Institute of Renewable Energies (ITER) and to the port of Santa Cruz. The latter visit was done by the president of the Port Authority, Pedro Rodríguez Zaragoza, who explained to the audience the traffic forecasts for the coming years at the facilities and the infrastructures that will contribute to its momentum in the port of Tenerife, including the new container

base at the East Dock and the Border Inspection Post. In addition, Rodríguez Zaragoza referred to some of the important ongoing projects such as the port of Granadilla. LARGE ATTENDANCE OF SECTOR PROFESSIONALS AT THE FIRST SEMINAR GESPORT More than one hundred professionals attended the conference of the first seminar GESPORT Port Sector: Offshore and Logistics in West Africa held at the Chamber of Commerce, Industry and Navigation of Santa Cruz de Tenerife, meeting collaborator. In the inauguration of the conference participated the President of Ports of Tenerife, Pedro Rodríguez Zaragoza, the Vice-President of the Council of Tenerife, Carlos Alonso, and Vice-President of the Chamber of Commerce, Modesto Castro Campos, all agreeing on the importance and potential of African market for regional economic development. Emerging markets and logistics in West Africa were precisely, along with human resource training, the central issues of this first seminar that was attended by international experts in the port sector, African partners like the Chamber of Commerce and Industry of Burkina Faso and GESPORT partners taking active participation. Among the participants in the different sessions were the Director of Submarine Systems ISLALINK S.A., Raw Bruce; the President of Carrier Gas Company Canarias S.A. (GASCAN) Miguel Becerra Dominguez; the Chairman of the Maritime and Port Institute of Cape Verde (IMP) and the Deputy General Manager of the port of Nouadhhibou, Sid Ahmed Ould Hady. The seminar was held within the framework of GESPORT Project Euro-Africa Network Cooperation in Port Sector Transnational Cooperation Programme Madeira-Azores- Canaries 2007-2013, co-funded by the European Regional Development Fund (ERDF). The Port Authority of Santa Cruz de Tenerife is lead partner in GESPORT project along with, now as partners, the Foundation Port of Las Palmas, Madeira Port Authority (APRAM); Port Authority of Cape Verde (ENAPOR), Autonomous Port of Dakar, Autonomous Port of Nouadhibou and Autonomous Port of Nouakchott.

Agreement with the Chamber of Commerce and Industry of Burkina Faso Coinciding with the celebration of GESPORT Seminar, Ports of Tenerife signed a collaboration agreement with the Chamber of Commerce of Burkina Faso. Both entities seek to create an Interport Committee holding regular meetings to develop an action plan with activities of interest to both entities and that will focus, among other areas, on the Free Zone and Special Zone, inspection centres, management of specialized terminals and port equipment and technology. PORTS OF TENERIFE AND THE AUTONOMOUS PORT OF NOUADHIBOU, PRO ONGOING COOPERATION The establishment of a permanent bond of cooperation within different aspects relating to port activity, particularly taking into account the area of influence of both ports, is the basis underlying the agreement signed between the Port Authority of Santa Cruz de Tenerife and the autonomous port of Nouadhibou, in Mauritania. The agreement, signed by the President of Ports of Tenerife, Pedro Rodríguez Zaragoza, and the Director General of the autonomous port of Nouadhibou, Cheikh Abadalahi Houeibib, includes the creation of a committee between ports with continuous contact as well as the arrangement of regular meetings to implement an action plan to ensure the effectiveness of such collaboration. The activities and projects of special interest to both institutions are related to port security, fight against marine pollution, human resources and port services. This is not the first time that the port of Santa Cruz de Tenerife and the port of Nouadhibou share interests as both institutions are part of the Gesport project, led by the Port Authorithy of Santa Cruz de Tenerife, whose overall objective is to create a large Euro-African network for sustainable cooperation in the port sector, and also the ICHCA, International Cargo Handling and Co-ordination Association.

II INTERNATIONAL PORT WOMAN DAY The Port Authority of Santa Cruz de Tenerife participated in 2011 in the second International Port Woman Day: the Role of Women in the Maritime and Port Sectors, held in Dakar, Senegal, organized by State Ports, the Autonomous Port of Dakar, the Network of Professional Women in the Maritime and Port Sectors of West and Central Africa and Las Palmas Port Foundation. The conference was attended by professionals of the sector in order to share their experiences as well as deepening and strengthening the ties of friendship among the participants, especially among those from the African continent, whom the promotion campaign is, mostly, headed towards. The conference included a visit to the port of Dakar, an activity within the GESPORT program, of which Dakar, Nouadhibou, Nouakchott, Cape Verde, Madeira and Las Palmas Foundation Port are members. The presentation of GESPORT targets was precisely the basis of the conference given by Ports of Tenerife during the First Day of Development Cooperation in the Maritime Sector organized by the University of Las Palmas de Gran Canaria and the Centre for Marine Science Technology Center, in collaboration with the Canary Islands Maritime Cluster. THE CONSOLIDATION OF THE CANARY ISLANDS AS A LOGISTICS PLATFORM, TARGET OF THE LOGISTICS AND TRANSPORT ATLANTIC EXHIBITION II (SALT) The Port Authority of Santa Cruz de Tenerife was one of the hundred entities, at national and international levels, participating in the Logistics and Transport Atlantic Exhibition (SALT) organized by the Canary Cluster for Transport and Logistics with the clear objective of consolidating Canary Islands as a logistics platform between Europe, Africa and Latin America enhancing the advantages of its geo-strategic status. The exploitation of the geographical position of the islands to generate new business and diversify the economy has just been, in recent years, a recurring theme as an undeniable future

action plan. In order to stimulate contacts and relationships in the field of logistics and shipping, considering what this may mean for our ports, the SALT was the ideal setting for holding multiple meetings and roundtables in which companies, experts and the sector authorities participated. Ports of Tenerife participated with a stand of 128 square meters dedicated to the new cruise terminal; expansion of the East Dock; the new Border Inspection Post (BIP); new technologies to meet port community and environmental improvements within the port. FIRST CONGRESS OF MID-ATLANTIC PORTS The president of the Port Authority of Santa Cruz de Tenerife participated in the 1st Congress of Mid-Atlantic Ports, held in the SALT 2011 and organized by Proexca, the Directorate General of Transport of the Canary Islands, Casa Africa, the Port of Las Palmas Foundation and Port Authority of Santa Cruz de Tenerife. The main approach was to articulate the regional cooperation between the Canaries and neighbouring African regions to promote integration within the port area, to encourage the establishment of stable institutional cooperation relationships and strengthen the role of the outermost regions as platform for territorial cooperation between the European Union and the neighbouring countries. Ports of Tenerife took part in a presentation focused on the regular shipping and organized, in this case with the collaboration of Proexca and the Port of Las Palmas, the Days "City-Port: strategies and confluences". Its inclusion in the program of parallel activities was due to Morocco's interest to know the port city model of development, especially in regard to cruise tourism. Representatives of Morocco and the Canary Islands participated in it, but also of Cape Verde, Madeira, Azores and Senegal. Thus, bringing together all the agents involved, they give response to the interest of the port authorities of the Canary Islands and Madeira to launch cruise lines that include new African cities. The congress took place within the GESPORT project, approved under the Transnational Cooperation Programme Madeira-

Canary Islands-Azores (MAC 2007-2013) and led by the Port Authority of Santa Cruz de Tenerife. PORTS OF TENERIFE COOPERATED INTERNATIONALLY THROUGH THE ICHCA TO DEVELOP AS A LOGISTICS PLATFORM The Port Authority of Santa Cruz de Tenerife makes advances in the international promotion of its port system to reaffirm itself as a logistics platform for the Atlantic and, more specifically, as a port of distribution of goods between Europe, Africa and America. To develop the necessary actions to meet this goal, Ports of Tenerife attended the 6th Assembly of the Regional Section for Canaries-Africa of the ICHCA, International Cargo Handling Coordination Association, with a delegation accompanied by business representatives and stevedores from the Canary Islands. At the meeting, held in Ouagadougou, Burkina Faso, on 12-13 July, the representatives from Tenerife focused their speeches on the progress of the transnational cooperation project GESPORT of which the Port Authority of Santa Cruz de Tenerife is the lead partner, presenting also the new infrastructures of the capital s port, specifically the new container terminal and the Border Inspection Post. Likewise the port of Granadilla was also an addressed issue. Among the side events held during the assembly, it highlights the visit to the dry port of Ouagadougou, in ongoing expansion and which is managed by the Chamber of Commerce of Burkina Faso. During the meeting the exchange of knowledge and experiences was considered as likely useful to this important structure. The delegation of Tenerife, along with a representation of stevedores from Canary Islands, also visited the Chamber of Commerce of Ouagadougou, wherein they met their deputy chairman and discussed about future projects including Africalia, a meeting place for entrepreneurs in Africa, Asia and Europe.

ACCIONA TRASMEDITERRANEA LINKS DAILY TENERIFE, GRAN CANARIA AND FUERTEVENTURA IN ITS RETURN TO THE INTER- INSULAR TRAFFIC ACCIONA Trasmediterránea returns to canary interisland traffic with a new connection, operational since last June 30, linking the port of Santa Cruz de Tenerife to Las Palmas and Morro Jable. Departures are scheduled to facilitate connections between the two main islands and the south of Fuerteventura, so there are daily departures, except on Sundays, from Santa Cruz de Tenerife to Las Palmas de Gran Canaria and Morro Jable. Likewise there are also daily returns, except on Saturdays, from Las Palmas and Morro Jable to Santa Cruz de Tenerife. The journeys are made by the vessel Las Palmas de Gran Canaria, with capacity for 886 passengers, 260 vehicles and 993 meters of Ro-Ro capacity. The presentation of the ship and the new interisland connection took place at the port of Santa Cruz de Tenerife in a ceremony attended by, among other authorities, the president of the Port Authority of Santa Cruz de Tenerife, Pedro Rodríguez Zaragoza, who presented his counterpart at Acciona- Trasmediterránea, Jorge Vega-Penichet, with the traditional memorial plaque. During the presentation Rodriguez Zaragoza stressed the importance of this new journey and its role as an interisland cohesive element. INCREASING RO/RO TRAFFIC WITH THE PORT OF CADIZ Ro-Ro traffic between the Canaries and the port of Cadiz has increased its competitiviness thanks to the new operating terminal at that port. This is a specific terminal used for that particular traffic. The public agency has invested 22 million euros to build 58,000 square metres on land, 570 metres of quay with depths of 10.5 metres and two Ro-Ro ramps. The Canary traffic involves 10 per cent of the operating revenues of the Cadiz Bay Port Authority and 24 per cent of the port s traffic volume, so that, in the words of its president,

Rafael Barra, it deserved, beyond expectations, the investment effort. THE PORT OF LA ESTACA, AN EMERGENCY EVACUATION BASE FOR EL HIERRO POPULATION La Estaca port, in the island of El Hierro, is the only evacuation base for part or the total population of the island if, for security reasons due to the volcanic crisis, an evacuation would be necessary. This is reflected in the Special Plan of Civil Protection and Emergency Response for Volcanic Risk in the Canary Islands (PEVOLCA), which rules out air evacuation because of the limitations that the issuance of volcanic ash to the air might involve. For this reason, the Port Authority of Santa Cruz de Tenerife was part of the PEVOLCA Technical Committee coordinating, along with Maritime Authority and shipping companies, the actions to be taken in case of mass evacuation of the island. For this purpose a series of emergency services had being provided. Thus, La Estaca Port had a prominent role from the beginning of the volcanic crisis in El Hierro, especially since September 23, 2011. On this date, it was the first time that the alert level raised to red light, according to PEVOLCA, due to the increased risk of eruption. This fact would be confirmed in early October by La Restinga, located barely two kilometer away from the area where there was found clear evidence of the volcano. In addition the esplanades of the port were used for the logistics organization of the many emergency units which are operating in El Hierro, including EMU and the Red Cross; the port has been also used as base for emergency and research vessels and it has even worked as an emergency helipad during the volcanic crisis. It can be said that the salvage tugs Punta Salinas, Guardamar Talía and Salvamar Adara had almost a permanent base at the port. As well as the patrols of the Civil Guard such as, for example, Pico Teide, and the research vessels Ramón Margalef, owned by the Spanish Institute of Oceanography, and Professor

Ignacio Lozano, under the authority of the Canary Islands Government. Another need arising from this crisis was the host in La Estaca port of those vessels based at La Restinga, amounting to about forty the number of acceptances AWARDED THE BUILDING OF THE FACILITIES FOR SCANNING CONTAINERS AT THE PORT OF TENERIFE Elimco Soluciones Integrales, S.A. was, by decision of the Management Board of the Port Authority, the company awarded the contract for the "Facilities for a container scanner at the port of Santa Cruz de Tenerife", within a period of six months and a budget allocation of 396,104 euros. This award represented further progress in the process leading to the implementation of that control tool. The process was initiated with fit-out works in the area where the scanner will be located. This project consists of the building of two control booths, one for use of the Port Authority and one for the Civil Guard; the shed under which the container scanner will be located, urbanization of the area around the electrical, lighting and telecommunication installations. The distribution of the shed that will house the scanner has been made taking into account the radiation conditions of the equipment to be installed, preventing access to radiation influenced areas. The operation of the new scanner, located between the new container terminal at Eastern Dock and the border inspection post, will improve and streamline the inspection of containerized goods, both from the standpoint of security and customs control. For its part, Telecomunicación, Electrónica y Comunicación, S.A. is responsible for delivering this "relocatable system for non-intrusive inspection of containers" including preventive and corrective maintenance of the system, with an award amount of 1,417,500 euros.

TRAINING SUPPORT FOR AFRICAN PORT WOMEN WORKERS The Port Authority of Santa Cruz de Tenerife gave in April a paper on the projects Salvia and Gesport during the Port Management Seminar aimed at the Professional Women's Association of Port Sector in Central and West Africa held in Casa Africa, Las Palmas. Such intervention is a clear support for the training and defence of African women workers in the sector. They are represented in this partnership of 50 professionals of different ranks and each of them put their work in the ports and associated African companies. The seminar was organized by the Port of Las Palmas Foundation and Casa África and sponsored by State Ports and the Department of Relations with Africa of the Government of the Canary Islands. PUNTA CUMPLIDA LIGHTHOUSE, FIRST IN EUROPE TO USE HIGH POWER LED The lighthouse at Punta Cumplida, La Palma, held since last August a special role being the first in Europe to operate with high power LED technology, which means a marked reduction in consumption and a not less significant increase in its light wave. This lighthouse used to have the highest consumption among those under the Port Authority of Santa Cruz de Tenerife, with an average of 3,200 W / h. Now it is saving 3Kw/h and has increased its light wave in more than forty nautical miles, maintaining, on the other hand, its 20-mile geographical reach. All this, combined with the life span the LED can reach, according to the production company it may even last one hundred years results in a reduction of costs compared to the ones incurred by using light bulbs. Ports of Tenerife has been a pioneer on several occasions in improving its technology aids to navigation networks as, for instance, the installation of the first Lighthouse Remote Monitoring and Control System operating in Spain. Once more it becomes a pioneer taking environmentally friendly initiatives.

ONE HUNDRED NEW BERTHS REORDER THE MARINA AT THE PORT OF LOS CRISTIANOS The port of Los Cristianos, South Tenerife, had at the end of 2011 around one hundred new berths divided into four piers for pleasure and fishing boats, included in the lists 7th, 6th, 4th, and 3rd. The works were awarded for a period of four months and 485,520 euros during the session of the Management Board of May. It was a project of the Port Authority with the aim of not only rearranging the port, but also increasing its safety. In this sense, boats are distributed along the new infrastructure according to their size, varying the length of the pontoons, equipped with fingers, between 6, 8, 10, 13 and 15 meters long. Works included, among other things, the installation of articulated walkways to access the piers and electricity towers. With this infrastructure the target is offering suitable provision for this type of service. Related Works Besides the mentioned works, the organization of the port involves other executions already undertaken by Ports of Tenerife and that mean a total investment of almost 600,000 euros in order to complete the project. In this regard, the esplanade of Varadero has a dry marina with 100 spaces for fiber boats, having also acquired a hoist for lifting, lowering and launching boats. It was also awarded, by a negotiated procedure, the grounding service that it was fully operational in August.

Human Resources 1. WORKER S TRAINING PROGRAM. During the year 2011, and in spite of the difficult current economic situation, the Port Authority of Santa Cruz de Tenerife has continued developing the Training Program drawn up and initiated in the year 2010. During this year, workers have undergone training to complete and improve their qualification profiles. All the courses undertaken have been evaluated by the Local Qualification Management Committee, including in the personal profiles the corresponding grades in each case. This year the Port Authority has invested 53,011.70 Euros in training, which translates to 243 Euros per worker. Also, the Port Authority managed bonuses through the Threefold Foundation for Training and Employment adding up to an annual amount of11,180.64 Euros. The employees of the Port Authority have received in the course of a year a total of10,499 hours of training. This way, as an average, each person has spent 48 hours on education during the year 2011. 1.1 IN-CLASSROOM TRAINING. 18 in-classroom training actions took place this year, in which 195 workers participated, totaling 8939 hours of training. The following table shows the courses provided, the number of participants and the hours. The current Training Plan, bets on in-service training, as a way of maximizing resources, making the most of the value added by the workers of the company, sharing and teaching their knowledge, skills and expertise in their areas of specialization with their co-workers. Three of the formative actions (Infrastructure Level I, Human Resources Development Level I and Labor Relations Level I) were included in this form of inservice training.

TABLE 1. In-classroom training in the year 2011. Formative Actions Course Hours Number of Partic Men Women Drawing- up police reports 8 35 1 Human Resources Development Level I 12 8 3 English for Marine and Maritime Environment 60 1 1 I Canarian Conference on Evaluating Performance in Public Service 8 0 2 Port Skipper 150 2 0 Trainer of Trainers 26 2 2 Autocad 40 1 0 Presto 40 2 0 Safety in driving a front-loading fork- lift truck 8 1 0 Infrastructure Level I 10 8 4 English Language CAE Level 100 4 6 English Language FCE Level 100 5 3 English Language PET Level 100 14 6 Port Regulations Level II 8 11 9 Work-Related Risks Prevention Basic Level 50 15 3 Labour Relations Level I 8 8 4 Navigation Aid Systems Level III 30 8 1 Maintenance and Physical Conditioning 100 20 5 TOTAL 145 50 1.2 TRAINING FOR WORK-RELATED RISKS PREVENTION. Included in the Work-Related Risks Prevention policy, there have been a total of 7 formative actions in the different ports depending on the Port Authority, in which 76 workers took part as specified in the following table:

TABLE 2. Formative actions geared towards preventing risks specific to the job. Formative Actions Course Hours Number of Participants Tot al Me n Wo men Tot al Risks Specific to the Sector 1,5 8 0 8 12 First Aid and Emergency Measures 3 8 0 8 24 Electrical Risks 0,5 10 2 12 6 Manual Handling of Cargo 1 10 2 12 12 Fire Prevention and Emergency Measures 1 10 2 12 12 Emergency Plans 1 10 2 12 12 Concepts of the Work-Related Risks Prevention Law 0,5 10 2 12 6 TOTAL 66 10 76 84 1.3 E-LEARNING TRAINING PROGRAMS. 14 tutored e-learning formative actions took place, adding up to a total of 845 hours of training in which 28 workers took part. TABLE 3. e-learning courses which took place in the year 2011. e-learning training courses Hours Number of Participants Total Hours Men Women Total Data Bases Level II 30 1 1 30 Goods Management Level I 15 1 1 15 Economic, Financial and Budgetary Management Level I 10 1 2 3 30

Logistics and Intermodality Level II 50 1 1 50 Environment Level I 15 2 2 30 Navigation Level I 10 1 1 10 Port Services and Operations Level I 15 2 2 30 Port Services and Operations Level II 50 7 1 8 400 Digital Presentations Level II 10 1 1 10 Work-Related Risks Prevention Level I 30 1 1 30 Work Related Risks Prevention Level II 50 1 1 50 Port Sector and Strategy Level I 15 1 1 15 Passenger Traffic Level I 15 2 1 3 45 Passenger Traffic Level II 50 2 2 100 TOTAL 17 11 28 845 1.3 OUT OF PROGRAM TRAINING. Apart from the previous actions, several external training courses were taken, and various conferences and congresses were attended. TABLE 4. Out of program training during the year 2011. Out of Program Formation Hours Participants Total Hours Protection Services Auditor 7 1 7 Main Labor Questions that Arise in the Public Sector 7 1 7 Introduction to the LIDER and CALENER VYP Programs - 1 -

Master in Maritime Commerce and Port Management 600 1 600 International Conference on Logistics and Intermodal Transport - 1 - XI Spanish Congress on Coasts and Ports - 3 - Environmental Management for Port Technicians and Directors 22 1 22 I Congress of Mid-Atlantic Ports - 1 - TOTAL 10 636 2. STAFF COMPOSITION AND EVOLUTION On the 31st of December of 2011, the number of people employed by this Port Authority is 235. The workforce is made up as follows: - Executives / Senior management: 2 - Permanent or indefinite union workers: 190 workers. - Temporary union workers: 16 workers. - Permanent non-union workers: 24 workers. - Temporary non-union workers: 3 workers. In the course of the year 6 workers retired from the company. The following tables show in detail the distribution of the staff by professional group and sex.

Table 5. Distribution of the non-union staff. PROFFESSIONAL NUMBER OF JOBS TOTAL CATEGORY PERMANENT TEMPORARY JOBS AVERAGE M W M W Executives 1 0 0 0 1 0,25 Senior Management 1 0 0 0 1 0,25 Area Head 1 0 0 0 1 0,25 Department Head 4 1 0 0 5 1,25 Division Head 9 3 1 0 13 3,25 Unit Head 6 0 2 0 8 1,75 TOTAL 22 4 3 0 29 Table 6. Distribution of union permanent staff. LEVEL PERMANENT UNION STAFF 1 2 3 4 5 6 7 8 M W M W M W M W M W M W M W M W TO TA L AVE RAG E Total Group II, Band I 0 0 3 1 0 0 2 1 2 3 0 0 1 0 4 4 21 1,31 Total Group II, Band II 1 0 5 9 3 0 6 9 4 0 5 3 3 1 4 5 58 3,63 Total Group III, Band I 0 0 0 0 0 0 8 0 1 0 0 0 1 0 0 0 10 0,63 Total Group III, Band II 0 0 8 0 6 3 3 0 0 3 0 0 0 3 0 0 0 98 6,13 Total Group III, Band III 2 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 3 0,19 TOTAL 3 0 8 8 1 6 6 3 1 6 1 0 1 0 3 5 3 9 1 8 9 19 0 Table 7. Distribution of the temporal union workers. LEVELS TEMPORARY UNION PERSONNEL 1 2 3 4 5 6 7 8 M W M W M W M W M W M W M W M W TO TA L AVER AGE Total Group II, Band I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Group II, Band II 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0,00

Total Group III, Band I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0,00 Total Group III, Band II 0 0 0 0 3 0 0 0 0 0 0 0 9 3 0 0 15 0,94 Total Group III, Band III 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0,06 TOTAL 0 0 0 0 3 0 0 0 0 0 0 0 1 0 3 0 0 16 The labor regulation of the salaries of the personnel of Port Authority of Santa Cruz de Tenerife is the following: The Senior Management, which is designated as established in article 41.1 of the Law 27/1992 of the 24th of November of State Ports and Merchant Navy; receive their salaries according to what is established in article 26.5 of the Law 51/2007 of the 27 th of December of the States General Budget. Non-union personnel receives their pay based on individual contracts, formalized out of the collective agreement, in accordance with the Workers Statute and the RD. 1382/85 of the 1st of August, where the special labor relations of the Senior Management Staff is regulated. The rest of the personnel follow the II Collective Agreement for State Ports and Port Authorities, which was signed by all parties on the 1st of February of 2005 and published in the Official State Gazette on the 11th of January of 2006. This Collective Agreement will be in effect from the 1 st of January 2004 until the 31 st of December of 2009, except in those items with different validity dates established. The negotiations for the III Collective Agreement for State Ports and Port Authorities are underway; therefore the validity of the previous agreement is extended until the end of the negotiations and the new signatures. On a local level, the I Company Agreement of the Port Authority of Santa Cruz de Tenerife of the 3rd of August of 2006, and published in the Official Gazette of the Province of Santa Cruz de Tenerife on the 5th of April of 2007, is still valid. 2.1 PERSONNEL RECRUITMENT PROCESSES.

The following selection processes were announced in the year 2011: Temporary Job Board for Port Operations and Services Technician: Level 2-2-8. Temporary Job Board for Port Policemen for the four ports dependent on the Port Authority of Santa Cruz de Tenerife. Level 3-2-7 One permanent position as Director Sales Department. Nonunion. The next table shows the number of candidates, both men and women, the number admitted and selected for each of the posts. TABLE 8. Participating candidates in the external selection process during the year 2011. Total candidates Admitted candidates Selected candidates Job Post Port Men Wo men Men Wo men Men Wo men Port Policeman (Temporary Job Board) La Estaca 12 1 7 1 1 0 Port Policeman (Temporary Job Board) La Gomera 16 2 11 2 2 0 Port Policeman (Temporary Job Board) La Palma 13 2 7 2 2 1 Port Policeman (Temporary Job Board) Los Cristianos 31 6 27 4 5 0 Port Policeman (Temporary Job Board) Santa Cruz de Tenerife 91 14 76 10 5 1 Port Operations and Services Technician (Temporary Job Board) Santa Cruz de Tenerife 7 2 6 0 2 0 Director Sales Department Santa Cruz de Tenerife 1 0 1 0 1 0 TOTAL 171 27 135 19 18 2 The following chart shows the total number of men and women who applied for the different posts available, those admitted and those finally selected.

CHART 1. Distribution candidates by sex. 2.2 PROFESSIONAL PROMOTION AND DEVELOPMENT. In the year 2011, 1 post for Port Police Team Leader came up for Internal Promotion. There were 9 candidates for this post, 2 were excluded and 7 admitted to the selection process. 2.3 RETIREMENTS AND PRE-RETIREMENTS. In the course of the year 2011, 6 workers have left the Port Authority, five have retired and one due to permanent disability. The jobs carried out by these people were the following: - 1 Building Works and Maintenance Officer - 1 Support Service - 1 Maintenance Team Leader - 2 Port Policemen - 1 Port Policeman Also, 3 workers have partially retired. The jobs carried out by these workers are: - 2 Port Policemen - 1 Building Works and Maintenance Officer

2.4 PERSONNEL COSTS The following table indicates the personnel costs of the Port Authority for the year 2011: TABLE 9. Personnel Costs for the year 2011. SALARIES 2011 CONCEPTS DIRECTOR DIRECTOR LABOUR LABOUR LABOUR SUM RETRIBUTIONS PERMANENT (2) TEMPORAR Y PERMANEN T (1) INDEFIN ITE TEMPORAR Y (3) TOTAL Basic retributions 1.144.886,60 99.952,78 4.144.911, 34 44.209,7 6 258.151,31 5.692.11 1,79 Basic salary 924.889,10 85.101,52 3.179.035,8 1 35.682,7 2 221.943,79 Seniority 55.036,01 849,59 344.618,00 1.421,58 1.293,99 Salary Extraordinary pay 155.550,72 13.870,31 558.615,08 6.827,05 34.667,88 Seniority Extraordinary pay 9.410,77 131,36 62.642,45 278,41 245,65 Complementary retributions 304.645,87 25.824,44 1.000.567, 85 13.479,1 3 114.565,44 1.459.08 2,73 Residence 70.029,19 5.368,52 426.667,85 4.054,34 26.187,59 Extraordinary hours 0,00 0,00 0 0 0 Productivity Program 297.336,42 26.310,51 822.079,26 12.260,5 9 103.282,30 Discount R.D. Law 8/2010-62.719,74-5.854,59-248.179,26-2.835,80-14.904,45 TOTAL 1.449.532,47 125.777,22 5.145.479, 19 57.688,8 9 372.716,75 7.151.19 4,52 Social Fund 53.768,76 TOTAL 1.449.532,47 125.777,22 5.145.479, 19 57.688,8 9 372.716,75 7.204.96 3,28 3. WORK-RELATED RISKS PREVENTION. 3.1 COMPOSITION OF THE WORK-RELATED RISKS PREVENTION SERVICES. PORT OF SANTA CRUZ DE TENERIFE. WORK SECURITY AND HEALTH COMMISSION Members representing the Company: Mr. Miguel Angel Hormiga González

Mr. Leandro Melgar Casillas Mr. Javier Mora Quintero Mr. Jaime Ruiz Martí Union representing members: Mr. Jorge Morera Padrón (UGT) Mr. Antonio Ossorio Padrón (UGT) Mr. Germán Beltrán Martínez (IC) Mr. Armando Herrera Hernández (CCOO) DESIGNATED WORKERS: Mr. Vicente Déniz Izquierdo Mr. Jesús T. Moreno Mateo EXTERNAL PREVENTION SERVICE: PREVIMAC (4 specialties signed on) PORT OF LOS CRISTIANOS: Prevention Delegate: Mr. Jose Enrique Rodríguez Pérez PORT OF SAN SEBASTIÁN DE LA GOMERA: Prevention Delegate: Mr. Oscar Libertad Ramos Armas PORT OF SANTA CRUZ DE LA PALMA: Prevention Delegate: Mr. Álvaro González Arrocha PORT OF LA ESTACA (EL HIERRO) Integrated in the Port of Santa Cruz de Tenerife. 3.2 SUMMARY OF THE ACTIVITIES OF THE WORK HEALTH BASIC UNIT The following activities took place under the specialty of preventive health:

Health Activities Number Initial Medical Examination 0 Specific Periodic Medical Examinations 131 Medical Examinations after a prolonged absence 1 Total number of Medical Examinations 132 Health Protocols Applied Number Data Display Screen Protocol 115 Forced Postures Protocol 61 Noise protocol 49 Repetitive Movements Protocol 2 Manual Handling of Cargo Protocol Work Evaluation Center: Drivers Working in Heights Protocol Pressure Neuropathy Results of the Specific Medical Examinations 3 4 2 61 Number ABLE 125 ABLE WITH A TEMPORARY RESTRICTION ON TASKS 1 ABLE SSW[1] WITH RESTRICTIONS 5 ABLE SSW WITHOUT RESTRICTIONS 1 TOTAL 131 3.3 ANNUAL INDICATORS OF WORK-RELATED ACCIDENTS The total number of workers who suffered accidents was: 6 (all of them considered LIGHT) Total days: 33 Frequency Indicator Number of accidents with leave YEAR FI FI = - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2011 9.91 Total number of hours worked * people on the

payroll Gravity Indicator Total number of days lost YEAR I I = - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total number of hours worked * people on the payroll 2011 0.07 Incidence Indicator Total number of accidents YEAR II II = - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2011 20.92 Average number of people exposed Average duration indicator Number of days lost YEAR ADI ADI = - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2011 6.60 Number of Accidents 4. TEMPORARY DISSABILITY AND WORK RELATED ACCIDENTS. 4.1 WORK ABSENTEEISM INDICATORS In the year 20111, the percentage of absenteeism at the Port Authority was 5.76% average yearly for common contingencies and 0.07% annual average for professional contingencies. TABLE 10. Percentage of absenteeism by months and contingency for the year 2011. Percentage of work absenteeism year 2011 Month COMMON CONTINGENCIES PROFESSIONAL CONTINGENCIES TOT AL

Percentage of work absenteeism year 2011 Month COMMON CONTINGENCIES PROFESSIONAL CONTINGENCIES TOT AL January 4,21 0,00 4,21 February 5,74 0,13 5,87 March 7,96 0,00 7,96 April 7,57 0,00 7,57 May 6,87 0,03 6,90 June 5,75 0,31 6,06 July 5,30 0,00 5,30 August 4,76 0,00 4,76 September 4,54 0,19 4,73 October 4,55 0,08 4,63 November 5,53 0,00 5,53 December 6,34 0,05 6,39 Annual average 5,76 0,07 4.2 EVOLUTION OF THE ABSENTEEISM INDICATORS 2004-2011. 5,8 3 The global absenteeism percentage shows a clear downward trend since the year 2004, and in the year 2011 it is at its lowest point since the last seven years: 5.83%. TABLE 11. Work absenteeism percentages 2004 2011. MONTH 201 1 201 0 200 9 200 8 200 7 200 6 200 5 200 4 January 4,21 6,49 8,20 12,6 1 10,9 4 8,91 7,94 9,62 February 5,87 5,51 6,40 13,3 8 10,0 2 9,17 8,51 10,0 2 March 7,96 9,25 8,01 April 7,57 6,96 7,18 11,5 3 9,54 12,7 3 8,27 11,4 4 9,57 8,01 13,3 5 8,69 9,23

May 6,90 6,38 7,64 11,7 9 7,71 9,93 9,2 10,5 5 June 6,06 5,78 7,14 12,5 2 9,84 10,1 9 9,48 7,13 July 5,30 5,70 8,00 9,1 8,50 8,33 7,87 7,99 August 4,76 4,86 5,40 9,21 9,70 8,18 6,82 7,57 Septemb er 4,73 4,63 6,92 7,31 October 4,63 4,61 7,65 6,06 10,1 2 6,23 5,85 6,09 11,3 5 6,82 6,31 6,53 Novembe r 5,53 5,46 8,88 7,14 9,60 10,2 4 6,85 5,95 Decembe r 6,39 4,10 6,49 6,69 8,20 9,92 6,04 7,7 AVERAGE 5,83 5,81 7,33 10,0 1 9,48 10,3 4 7,69 7,95 CHART 2. EVOLUTION OF WORK ABSENTEEISM 2004 2011. 5. DEPARTMENT STUDIES AND PROJECTS 5.1 ANALYSIS AND DESCRIPTION OF JOB POSTS STUDY. In this year we have concluded the study, analysis and description of all the work posts. It was carried out by this

Department together with the Department of Cognitive, Social and Organizational Psychology of the University of La Laguna. In it, through the information provided by the workers in the job posts that were analyzed, which was later reviewed by their immediate superiors, they were able to draw up a description of the duties and tasks undertaken by the different occupations, and analyze the work load carried by each. The data obtained from the study supplies the initial information necessary for preparing the evaluation scales for performance in the different jobs (occupation critical tasks). This paper also provides qualitative information (functional) and quantitative (work load) of the different jobs, a series of recommendations derived from the analysis of the study which will allow the design of workforce optimizing processes. The steps taken this year to finish the project are the following: Phase 3: Drawing up a Task Inventory and a questionnaire for collecting quantitative information. Based on the information recovered through 92 job analysis interviews, a questionnaire was devised to recover quantitative information (frequency, importance and complexity of the tasks carried out in each job). This questionnaire was answered by all the workers of the posts analyzed. Phase 4: Review of the results by immediate superiors. In this phase, the immediate superiors of each of the jobs analyzed, reviewed the information supplied by the workers through the questionnaires, and the results obtained through their analysis. Those superiors who thought so appropriate, modified some values, normally correcting the tendency of some workers to exaggerate the contents and complexity of their job. Phase 5: Data analysis and drawing-up of the studies final report. The data matrix reviewed by the superiors was analyzed again to obtain the definite results of the study. The results presented included the following aspects: For each worker and job post:

¾ Number of tasks carried out. ¾ Number of tasks shared or also carried out by other posts/workers. ¾ Annual work-day of the worker. ¾ Average time given to each task per year. ¾ Average importance of the tasks on a scale of 0 (minimum) to 5 (maximum). ¾ Average difficulty of the tasks on a scale of 0 (minimum) to 5 (maximum). ¾ Work Load: Estimated work load indicator, result of the weighted sum of the weight of each task over the job post, calculated from its frequency, dedication time, importance and difficulty. ¾ 5 tasks on which the worker spends the most time. ¾ 10 tasks considered most important or critical. ¾ Optimization Index: Indicates the % of tasks to which the most time is dedicated, which are also considered essential. For the whole organization and/or for each functional unit: ¾ Descriptive statistics and analysis of the relation between salary and work load. ¾ Map of the tasks carried out by each worker, distinguishing between essential and non-essential tasks. ¾ Summary of results and intervention proposals. Analysis of the relation between work and work load after the proposed intervention. ¾ Main problems detected by the management and future agenda. ¾ General Conclusions and recommendations of the study.

5.2 DRAWING UP OF THE EMPLOYEE MANUAL. In the year 2011 a workers manual was drawn up. It holds a series of relevant information destined mainly to help the welcoming and integration of new collaborators. The manual, which is handed out to collaborators in digital format, holds the following content: 1. Welcome letter by the President. 2. Basic information on the organization: its mission, vision and values, structure and organization chart, main functions of the different Departments, and management tools used. 3. History of the Entity, main Port services and economic activity. 4. Human relations. This section holds all the information related to people management and work relations in the company: Work-day, vacations, work calendar, paid leave, salary structure, social actions, training, internal communication and socio-cultural activities carried out in the Port Authority. 5.3.- INTRODUCTION OF A MANAGEMENT SYSTEM FOR THE PREVENTION OF WORK-RELATED RISKS. During the year 2011 the Human Resources Department of the Port Authority, in collaboration with the PDCA consulting firm, has started working in the design, elaboration and implementation of a Work-Related Risks Prevention management system. The aim of this project is to improve the efficiency of the preventive actions and to obtain the OHSAS 18001:2007 certification which accredits the quality of the work-related risks prevention management systems of the company. In this year the following steps have been taken: Phase 1: Study and inspection of the current prevention management system and the work processes. In this phase a detailed evaluation and analysis of the current system and structure of the Port Authority with respect to prevention was carried out. For this, a revision and analysis of the existing documents was carried out, as well as work meetings with the members, people in charge, workers, etc, of the prevention services, and visits to the various installations where the work activity is carried out.

Phase 2: Revision of the Prevention Plan and adaptation to the specifications of the PRRLL management system. In this phase the existing prevention plan was revised and the necessary adjustments were made according to the directives of the OHSAS 18001:2007. The document drawn up has currently the approval of the prevention service and the Entity s Management. Phase 3: Definition of processes and drawing up of general, operational and complementary procedures. In this phase the processes for the PRRLL management system necessary for carrying out the preventive actions of the organization were defined. The general procedures implemented were revised, adapting in their case to the specifications of the OHSAS 18001:2007 standard, the ILO directives and the current legal rules and regulations. Phase 4: Revision and approval of the general, operational and complementary procedures. This phase has consisted on constituting expert work teams for revising the theoretical and practical revision of the procedures. The information contributed by the work teams, were analyzed by the prevention service in their meetings with them with the aim of incorporating them to the procedures. We are currently still working on this phase. Phase 5: Circulation of the WRRP management system. During this phase, a Work-Related Risks Prevention manual was drawn up. This manual will be handed out to new collaborators of the Entity during the welcome plan phase dedicated to the diffusion and becoming familiar with the WRRP in the company. The organization of the prevention system will be circulated, apart from the manuals, through the prevention policy and plan drawn up.

6. SOCIAL ACTIONS The following actions, meant to increase the worker s quality of life, were carried out within the Port Authority s social work: 6.1 COMPLEMENTARY MEDICAL INSURANCE In the year 2011, and despite the current difficult economic situation, the Port Authority of Santa Cruz de Tenerife has decided to provide its workers with the benefit of a complementary medical insurance. The current insurance policy has a wide coverage and an array of associated medical centers, as well as special conditions for the Port Authority workers as well as their families. The Port Authority pays for 75% of the insurance policy, and the workers pay for the remaining 25% which is deduced monthly from their salary. - Number of workers adhered to the plan in 2011: 215 6.2 RETIREMENT PLAN The Pension Plan Control Commission of the Port Authority of Santa Cruz de Tenerife has authorized the payment of their corresponding economic rights to all those workers who have retired in the year 2011and have so requested. All those workers of the Port Authority entitled to, have joined the aforementioned retirement Plan. The Company carries 75% of the cost of the retirement Plan and the workers assume the remaining 25%. The annual amount of the investment is the following: 6.3 REIMBURSABLE LOAN. The workers of the Port Authority, through their Company Agreement, have the possibility of, if the conditions apply, getting a personal loan to be discounted from their monthly paycheck for a quantity of up to 4000, to be returned in a maximum of 24 months without interest. - Number of workers who applied for the loan in 2011:9

6.4 SOCIAL FUND The Port Authority contributes 1% of the payroll to the Social Fund. This Fund, which is managed by a representation of the workers (and must guarantee the participation of the rest of the workers), has the following purposes: Study grants for the promotion of workers. Scholarships for the workers children. Exceptional need situations. All those which appear in the Fund s regulations. [1] Specially Sensible Workers