Concession Framework to implement and operate a Port Single Window

1. Concession Framework to implement and operate a Port Single Window Africa Ports & Maritime Conference Ports & Logistics A vision for the future integration Pascal Ollivier Director of Corporate Development, SOGET Jean Michel Marnoto Vice President BUREAU VERITAS

2. SOGET in brief • Port Single Window (PSW) leader in Africa and in France • Public Private Partnership since 1983 between Port of Le Havre Authority, Port of Le Havre Community & French Customs • 1300 men years of experience in PSW • 110 employees at Le Havre HQ • e-Maritime is our nextgen PSW • Chair of the European Port Community System Association (EPCSA) • Strategic Partnership with Ministry of Commerce of China, BUREAU VERITAS, Microsoft and NAVIS • Expert to many international and regional organizations: EU, WB IABD, WCO, UN, OAS, IAPH, IACP, CCLEC, AGPAOC, PMASEA

3. BUREAU VERITAS in brief • Company founded in 1828 • A world leader service company with a core business of conformity assessment applied in the QHSE areas, Quality, Health, Safety and Environment • 1,000 offices / 330 laboratories in 140 countries • EUR 2,92 Billion revenue. • 48,000 employees • Eight Business Lines offering a large scope of services • Inspection, tests and audit, certification, assistance to risk management, outsourcing, consultancy and training, • A Business Line dedicated to Trade Facilitation (Government Services & International Trade Division) • 400,000 clients in all kind of activities • More than 40 current trade facilitation programmes for governments

4. 10 reasons for a Port Single Window Concession Reason # 1:Port Authorities have a very limited PSW track record in Africa Reason # 2: Ports have experiences in Concession Reason # 3: PPP Joint Venture with stakeholders Reason # 4:Best way to accelerate modernization Reason # 5:Benefits are immediately visible Reason # 6:Efficient operations Reason # 7:Key Performance indicators Reason # 8:Capacity Building Reason # 9:Transparency via tendering process Reason # 10:Reduced risks

5. PSW of Cotonou, Benin • Expression of Interest: February 2010 • Tender: May 2010 • Signature of Concession: November 2010 • Start of first stakeholders: March 2011 • Go Live: July 2011 • Import Roll out: October 2011 • Export Roll out: December 2011

6. What is a Port Single Window ? • a neutral and open electronic platform enabling intelligent and secure exchange of information between public and private stakeholders in order to improve the competitive position of the sea and air ports’ communities; • optimizes, manages and automates port and logistics efficient processes through a single submission of data and connecting transport and logistics chains.

7. Vessel Traffic Management: - Calls and schedules, IMO FAL, vessel management, cruise, ferry, yatching Cargo Management System: - general cargo, liquid & dry bulk, roro, container… Intermodal Management system: air, truck, rail, inland terminals, borders Import, Export, Transhipment & Transit Billing & E-Payment Tracking & Tracing Statistics Interoperability: Port system, Shipping lines systems 3PLs systems & Intermodal systems Asycuda, CMS & OGAs Banks Foundation Layer Export Layer Import Layer Port Single Window Foundation Layer

8. Submission of the manifest Transhipment management Cargo discharge Customs Clearance Delivery Order Inland Carrier Identification Gate-Out authorization Terminal Gate-Out and ICD Gate-Out LCL (House Manifest, Stripping operations, Customs clearance of the goods) Intermodal management Gate-in and Gate-out at the importer Gate-in at the empty containers depot Foundation Layer Import Layer Export Layer Port Single Import Layer

9. Booking Confirmation Empty Container release order Empty Container Gate-Out Laden Container Gate-Out at exporter Intermodal management Customs Clearance Customs Authorisations to move the containers Loading Authorisation – Shipping Line & Forwarding Agent Stuffing under Customs Control Gate-In at the Terminal Loading on board EU ICS filing Foundation Layer Import Layer Export Layer Port Single Window Export Layer

10. BUREAU VERITAS / SOGET in joint venture with public and private stakeholders 10 year concession 100 % CAPEX and OPEX financing Performance project driven by service level agreement Capacity Development Key Features of the Concession

11. Detailed Concession Framework 1/6 • Concessioning Authority - Ministry of Finance Ministry of Transport or Port Authority • Purpose of the concession - To implement and operate the Port Single Window • Binding documents - Ministry Decree • Operating Company - Joint Venture between BV/SOGET Joint Venture and local shareholders (Port Authority, Shipping Association, Freight Forwarders Association..)

12. Detailed Concession Framework 2/6 • Activities under the Concession Agreement - to automate all supply chain business processes - to implement the Port Single Window - to operate and maintain the Port Single Window - to train the stakeholders - to lead change management through nation wide communication - to provide reporting datas - to manage billing operations

13. Detailed Concession Framework 3/6 • Obligations of Concessionining Authority - to provide an exclusivity - to provide the concessionaire with no restriction to manage its operations - to facilitate request for information to all stakeholders - to take any action to facilitate the mission of the concessionaire

14. Detailed Concession Framework 4/6 • Obligations of the Concessionaire - to recognize the authority of the Port Authority - to implement the Port Single Window - to operate the Port Single Window according to existing national laws & international standards - to process a gap analysis - to provide a change management plan - to provide a procedures and trade facilitation plan - to provide a training plan - to put in place the right human resources to operate the Port Single Window

15. Detailled Concession Framework 5/6 • Obligations of the Concessionaire (more) - to set up a call center - to run beta sites - to operate 7/24 operations - to provide maintenance and support - to provide monthly statistical datas ad KPIs - to comply with the transaction fee - to manage billing operations - to invest for hardware, software and telecoms upgrade as required • Transaction Fee - Transaction fee based cargo declaration or tonnage according to agreed business plan - Transaction fee to be adjusted according to volume

16. Detailled Concession Framework 6/6 • Licence fee to the Concessioning Authority - Licence fee • Reporting and Audit - Yearly Balance Sheet & Operating statements - Annual Report - Yearly Audit • Concession Period - 10 Years - Acquisition of Assets of the end of the term

17. Conclusion “ Opting for a concession agreement is the most promising vehicle for the Government requiring no public financial resources while providing efficient operations, immediate results and reducing risks ”