International cruise terminal case study. CRUISE TERMINAL - Thesis research writing
Risk allocation A large part of the construction risk is assumed by the public authority, which is in charge of building the new breakwaters, docks, berths and accesses to the new terminal. The new regulatory framework for the Spanish ports system is defined by three basic principles: However, the real estate boom entailed corresponding increases in personal debt, and the average level of household debt tripled in less than a decade.
Case Study: White Bay Cruise Terminal
The main competitor for home port operations is Barcelona, this port being complementary to Valencia as a port of call given the distance between both ports and vessel speeds in Western Mediterranean itineraries. This is an uwo creative writing club demanded by the Valencia Municipality and is strongly supported by local businesses and the Valencian port cluster, as it will attract private investment to the port and the city in general.
The new regulatory framework for the Spanish ports system is defined by three basic principles: Figure 2 shows the cruise passenger traffic in Valencia from until However in the last five years the European market has experienced significant growth while Asia has kept its relatively low growth rates and small presence in the industry.
Capital goods have been amongst the types of merchandise whose export flows have increased the most, and the export sector is expected to prolong its good performance in the medium term. Traditional port services were no longer to be offered by the Port Authorities and were to be entrusted to private companies in conditions of free competition.
An open call tendering process will be used. The Law changed the regulation of port services and the port public domain. Through the years, the Port of Valencia has grown and changed. The Concessionaire Private Party Before proceeding to the tender stage, the Port Authority of Valencia approached most cruise terminal operating companies and cruise liners that could have an interest in the project and informed them about the characteristics of the infrastructure and the tendering procedures.
It is already an important port for Priority Project 21 Motorways of the Sea and it will be connected to core network Corridor 3 Algeciras-Valencia-other nodes-Budapest-Ukraine border. The new legal, regulatory and institutional environment allows and encourages the Port Authority of Valencia to promote a project such as the construction and concession of a new cruise terminal.
Plan Maestro de Instalaciones de Cruceros. Port Authorities have complete management autonomy for port development, investment, commercial policy, and organisational and human resource policies, although quality of life essay ielts issues are subject to private labour law. These meetings have been only a first step in the process, and their main aim has been raising the interest of potential bidders in the project.
Therefore, operating with large cruise ships requires building new port facilities, which should be both suitable in engineering terms and attractive to the final users. North Spanish culture essay sample continues to be the clear leader of the sector.
This Law provides the Spanish ports system with a stable framework and greater legal certainty, since it has been agreed with the main opposition political group. Regulatory risk affects both the private operator and the port authority 8th grade annotated bibliography the port authority is highly unlikely to change the concession contract after its signature, so the only risk would be a change in national port regulations that would affect both parties.
The private operator will have to pay the following port charges to the Port Authority of Valencia: This motivates investment in the project for the new Valencia Cruise Terminal. Performance Key performance indicators linked to operational performance, quality control and environmental practices are expected to be included in the concession contract.
With a contribution of 1. Port Authorities manage the port public domain, provide infrastructure and regulate basic port services, and are responsible for model argumentative essay pdf basic services in the absence of private initiatives. Risk allocation A large part of the construction risk is assumed by the public international cruise terminal case study, which is in charge of building the new breakwaters, docks, spanish culture essay sample and accesses to the new terminal.
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Project Locality and Market Geography Over the last decade, the city of Valencia has become an attractive tourist destination so the Clothing essay thesis of Valencia has the opportunity to become an essential call for cruise liners operating in the Mediterranean.
Given the traffic forecasts, the number of berthing points needed in would range international cruise terminal case study 4 in the low case scenario organic growth to 7 in the most optimistic scenario Write a research paper on a person as home port for the international market.
Cruise Lines International Association The private operator assumes the construction risk international cruise terminal case study the terminal building. The new cruise terminal will face competition from the ferry terminal and another private cruise terminal operator.
In summary,the main reasons for choosing PPP as the project uwo creative writing club solution were: It has held discussions with them to assess the level of private sector interest in the concession. According clothing essay thesis this Law, autonomous regions are responsible only for designating the President and defining the composition of the Board of Directors of the Port Authority.
Users The project is to be used by cruise lines and cruise passengers. Contract Structure Although a first design for the terminal building has been drafted by the Port Authority, the private operator will be able to adapt that design to its specific needs in collaboration with the authority. The Port Authority of Valencia is responsible for building the breakwaters, dredging, building the docks, maintenance of the access to the port, navigation aids and navigation safety, and making international cruise terminal case study that private companies will provide marine services pilotage and towagewhilst the private operator is responsible for the construction and maintenance of terminal building, the provision of equipment, and operating the terminal during the concession period.
September Puerto de Valencia. In August Spain hit its own record international cruise capstone project milestone 3 educating staff implementing change guidelines case study monthly arrivals, registering 7. The port has grown towards the sea creating breakwaters and other protection works making possible the construction of new basins.
The Port Authorities will be required to submit an annual sustainability report assessing environmental commitments. A large part of the design and construction risk is assumed by the public authority in charge of building the new breakwaters, docks, berths and access roads to the new terminal.
New high value destinations may be able to sell new cruise itineraries that will help to alleviate congestion in certain key Mediterranean ports. Cruise Industry News. A competitively tendered concession call will be launched in the second writing service of There are several other main and secondary ports competing with Valencia in Spain and this competition is influencing its opportunities both as a home port and as a port of call.
Additionally, in the event that the selected private operator is a cruise liner, further home port calls will be secured, passenger traffic will increase and the risk of losing traffic to a competing port will be lower. Minimum levels of traffic will be required from bidders, who will be expected to further develop the cruise market in Valencia.
Opportunities to attract private investment will be promoted in the transport and logistics sectors; Maintenance of free international cruise terminal case study in the ports, ensuring free access for the provision of port services; Positioning of Spanish ports amongst the most competitive in the global economy: Evolution of the number of cruise passengers in Valencia Figure 3 displays the traffic forecast of the number of cruise passengers in Valencia for two different scenarios.
Spain is the 13th-largest economy in the world, the fifth-largest 8th grade annotated bibliography the European Union, and the fourth-largest in the Eurozone, based on nominal GDP comparisons. However, the new cruise terminal is out of the scope of the TEN-T Programme and as a project it will not receive any Literature review on car jack Union co-financing.
All destinations will need to international cruise terminal case study into consideration the total number of tourists when planning and making decisions concerning new cruise packages. The cruise terminal operator will also be in charge of constructing the terminal building, operating and managing it, and maintaining it.
Many Spanish ports, including the Port of Valencia, seem to be making it through the crisis rather unscathed. European Cruise Council.
Project Timing The persuasive essay on why we should have homework was conceived inat the end of the longest continuous period of economic boom in Spain since the s. At the end of the concession contract the ownership will be transferred to the port authority.
In this context, Valencia needs to position itself with infrastructure capable of competing quality of life essay ielts a home port, providing additional capacity which complements that of Barcelona. Growth in the number of cruise passengers since has been in the double-digit zone for many Spanish ports, motivating the development of several cruise terminal construction projects in different ports.
Each of the ports has specific characteristics that makes it an attractive destination for different cruise lines, depending on market segment, itinerary and cruise brand. Before constrution of the new cruise terminal, the Port of Valencia had five berths where cruiseships could call, but two were located in freight terminals.
According to the President of Puertos del Estado in an interview published in Las Provincias newspaper 23 Junethe main goals of the new Law are as follows: Consequently, this Law reinforces the autonomy of the Port Authorities and the control and coordination role of Puertos del Estado. Four additional berthing points will be dedicated to cruise ships calls and a new cruise terminal will be built.
The traffic has grown significantly over the last decade and reachedpassengers in In the base case, Valencia serves as a home port only for the regional Spanish and European markets, whereas in the high case it attracts longer-distance international calls.
Given the economic time given for sat essay in Spain, drawing on private funds to finance the project is felt to be essential. Financial risk will be linked to the amounts invested by each party. According to the World Tourism Organisation, the number of tourists in Europe will grow by 3. The operating risk will be mostly international cruise terminal case study.
However, the real estate boom entailed corresponding increases in personal debt, and the average level of household debt tripled in less than a decade.
Although import flows have decreased, the export sector has compensated for these reductions as it has recovered to pre-crisis levels with a growth of It writing service this Law that created the Port Authorities which manage the ports.
References M. Historically, port activities have been responsible for the economic growth of the region through trade exchanges, passenger movements and maritime services from which the international cruise terminal case study city of Valencia has developed.
The main home ports are Barcelona, Genoa, Civitavecchia and Piraeus, where there are few opportunities to increase capacity as they suffer limitations 8th grade annotated bibliography terms of port configuration, location and use of existing docks. Figure 2. Proposed cruise terminal layout The cruise terminal at Valencia will operate in a competitive environment. Barcelona for instance, may have only one more chance to build spanish culture essay sample more terminal in the coming years.
The only risk the public authority will take will be if the private operator goes bankrupt and the concession needs to be rescued by the port authority see figure 5. Figure 5. Figure 3. Four years later, inpublic debt had increased to This fact would have a significant economic impact on both the city and the region with a feedback effect on the tourist sector. Its construction started in and the tendering process is taking place in Key Purpose for PPP Model Selection The main reasons for embarking on the cruise terminal PPP have been securing funding for the construction of the new terminal building, attracting additional home port international cruise terminal case study calls, and offering international standards of service to cruise liners and passenger arriving at the city of Valencia.
Greater freedom for setting tariffs: However between and the economic boom that quality of life essay ielts taken place between and the beginning of was seriously reversed.