Mersin’s Role in MoSChallenges and Solutions

MERSIN INTERNATIONAL PORT

Port of Trieste

Mersin International Port

MIP SHAREHOLDERS

PSA International, is the leading port operator of choice in the world’sgateway hubs, with a network stretching coast to coast, operatingaround the world in different countries.

Singapore is the second port in the World's Top 27 Container Handling Ports in 2015. Handled 67.63 million TEUs in 2016.

Singapore Colombia TurkeyPanama China ThailandBelgium India ItalyArgentina Saudi Arabia VietnamPortugal South Korea JapanIndonesia

Akfen Holding was established in 1976. Operations cover a wide spectrum of activities;

Airport concessions and construction: Istanbul, Ankara & IzmırAirports

Marine transport : IDO Istanbul Ferry & Seabusses Co.

Energy and real estate : Ibis and Novotel

Water distribution and waste water services

Construction

Mersin Port was tendered by the Privatization

Administration of Turkey and its operation

rights were awarded to the PSA-Akfen Joint

Venture Group until 2043.

Mersin International Port Management Inc.

was established as a joint venture of PSA

International and Akfen Holding on May 11,

2007 and handover of the port was

completed.

2016 MIP TOTAL HANDLING VOLUMES

1.453k TEU

7k Cars 321k Heads 18k Passengers

4.213 Vessels

59k RoRo Trucks

18k TON 793k TON1.143k m TON 5.4 m TON

MULTIPURPOSE BERTHS

OPERATIONAL FIGURES

OPERATION PROCESS

RECENT DEVELOPMENTS

KEY CHALLENGES

PROJECT BENEFITS

There are 7 UN Roro vessels calling MIP and their schedules are on Wednesday and Saturday between 16:00-20:00 pm. Their routes are betweenItaly and Turkey.2016 FY datas have been analyzed:

Peak and Off Peak Days for RORO EntrancePeak and Off Peak Days for RORO Exit

0 2000 4000 6000 8000

Sun

Fri

Wed

Mon

0 1000 2000 3000 4000 5000 6000

Sun

Fri

Wed

Mon

OPERATIONAL FIGURES |Loading and Discharging

Import Export

Avg.169 trailer per vessel call Avg.171 trailer per vessel call

19% trailer + semi-trailer 18% trailer + semi-trailer

4,04 hrs discharge operation 5,14 hrs loading operation

Avg. dwell time 22,14 hrs per trailer Avg. dwell time 30,59 hrs per trailer

Total 12.915 Total 16.321

OPERATIONAL FIGURES

Import

Transit Turkey

60%-65% 35%-40%

Avg.169 trailer pervessel call

Avg.101 trailer per vessel call Avg.68 trailer per vessel call

Iraq Iran CIS Countries

48% 41% 11%

Customs procedures take longer time compared to import trailersrelated to the vehicle tracking device

KEY CHALLENGES|Operation Duration

Entrance ExitDischarging Start Loading Complete

4,04 hrs 5,14 hrs

9,18 operation hrs

30,59 loading dwell time

22,14 discharging dwell time

During loading operations after entering the port, one trailer spends approximately 21,41 hrs inside the port due to the customs

procedures, fuel supply and waiting for discharging operations to be completed. Some trailers enter the port early because there is noparking area outside the port.

During discharging operations, one trailer spends approximately 12,96 hrs inside the port after discharging due to the customs

procedures. Discharging End&

Loading Start

21,41 hrs 12,96 hrs

11

2

3

5

4

Discharging ListDischarging lists are submitted to the TOS approximately 2-3 days before theoperation.

Vessel Berthing and Customs ControlAfter the vessel berths, customs control starts. Customs control takes approximately 30-45 min andlashing operations take 15 min.

Discharging OperationsMIP drivers begin to discharge the trailers and semi-trailers. Tallymen keep the records during discharging operation and then they enter them into the system at the end of the operation.

Customs ProceduresAll document procedures take 1 day on average before trailers exit.

6

Weighbridge and X-RayAll trailers and semi trailers are weighed to complete the customs procedure (20-30 min). Trailers shall pass through the X-ray if customs demands it (15-20 min). After discharging, approximately 20-25% of the trailers pass through X-ray.

ExitAfter the final confirmation from customs, MIP matches the trailer and semi-trailervia system. If there is no problem with the confirmations, trailer can exit.

OPERATION PROCESS| Discharge Operations

OPERATION PROCESS |Discharge Operation Map

6

2

3

4a

4c

5

Exit

CustomsProcedure

Vessel Berthing andCustoms Control

DischargingOperations

Weighbridge

X-Ray

Mobile X-Ray4b4d

Fast ScanX-Ray

CustomsProcedure

5

OPERATION PROCESS| Loading Operations

11

2

3

5

4

Loading ListLoading lists are submitted to the TOS approximately 2-3 hrs before the vessel berthing.

EntranceTrailers and semi trailers enter the port usually 1 day before the operation andduring the entrance they are weighed at the gate weighbridges.

Customs ProceduresAll document procedures take an average of 1 day before trailers gate out. During customs procedures trailer passes through X-ray if customs demands it. Before loading, approximately 20% of the trailers pass through X-Ray.

Loading OperationMIP drivers start to load the trailers and semi-trailers. Tallymen keep the records during loading operation and they enter them into the system at the end of the operation. Private security personnel takes carbon dioxide measurements against human smuggling before loading and it takes approximately 3 min per trailer.

6

Fuel SupplyAfter export declaration is completed, fuel is supplied to trailers and semi-trailers (except trailers coming from free zone and warehouse). According to the operations, it takes 15 min on average.

Customs Control and Vessel UnberthingAfter the necessary controls are completed, loading operation is carried out and vessel unberths.

13

OPERATION PROCESS |Loading Operation Map

2

65

4

3c

3aEntrance

CustomsProcedures

Customs Control andVessel Unberthing

LoadingOperations

Fuel Supply

X-Ray

Mobile X-Ray3b

3dFast Scan

X-Ray

3aCustoms

Procedures

RECENT DEVELOPMENTS

New Tugmasters X-Ray

1 mobile X-Ray have started to be operated in 2017 Jan to accelerate the UN Roro X-Ray operations. Generally, 50% of the UN Roro has been scanned by Mobile X-Ray.

1 new fast X-ray scan will start to be operated in container operations.

Mobile X-Ray

Fast X-Ray Scan

X-Ray

2 new tugmasters have started to be operated in 2017 March.

Total 6 tugmasters have been operated forRoro operations.

Contributed to operation duration

KEY CHALLENGES |Customs Procedures and Late Submissions

Customs Carbon Dioxide Controls X-Ray

Late Loading List Submission Customs & Maritime Police Control

Procedure is only forloading operations

Takes aprroximately 3 mins per trailer

On avg.600 min loss pervessel

1 fixed and 1 mobile X-Ray

25% in discharging, 20% in loading X-RAY per vesselon average

15-20 min scanning pertrailer

Long queues

Submissions 2-3 hrs before vesselberthing

Awaiting for customs proceduresdue to the late submission

Passport and general controls forthe crew and drivers

Approximately 40 mins

Vehicle Tracking Device

For Transit Trailers

Waiting for the customs to providethe device approximately 1 day afterdischarging

During the peak days, customs procedures take approximately 1 day. It creates traffic and parking area problems inside the port.

After discharging, RoRo trucks pass through weighbridge and wait for custom procedures to be completed before they exit.

X-Ray position is opposite to RoRo operation area. Especially during peak days, trailers have to wait in the long queues since there is one mobile and one fixed X-Ray in service for the whole port. New fast X-Ray scan (scanning in 40 seconds) will be operated for container terminal operations.

98% of export trailers buy fuel before they are loaded to the vessel which also creates long queues and parking area problems.

KEY CHALLENGES |Problem Areas

KEY CHALLENGES |Stowaways

Stowaways in RORO trailer from Mersin to Italy

Creates security problems, damages thecredibility of the port operations

Strenghten customs controls to preventstowaways cause truck waiting times andlonger operation duration

With a possible customs integration , MIP aims to:

Fast Lane

Decrease the trailer waiting time,gate service time byhaving passive e-seal check at automated gate

X-RAY

Decrease the X-Ray durations (approximately 20 minper trailer) by moving out X-ray ops to off dock area

Fuel Supply

Decrease the operational intensity by moving out fuelstation to off dock area.

Customs Procedures

Decrease trailer waiting times inside the port due tocustoms procedures

The objectives above can be achieved for instance, by having customs procedures of RoRo trailerscompleted before they discharge and by installing technologies such as e-seals on trailers .

Off-Dock

PROJECT BENEFITS

Passive e-Seal appositionPassive eSeal final checkat Automated Gate

PROJECT BENEFITS

Security PerformanceUN RoRo Dwell Time Simplified Operations

Export to Italy

Information sharing between Turkish Customs,Italian Customs and MIP by having RFID E-seals on trailers and systemintegration :

Import from Italy

MIP

Trailers loaded on vessel at MIP

LOADING LIST: List of trailers loaded on

vessel, RFID eSeals info and integrity status (Phase 1)

TurkishCustomsSystem

Customs Information

SinfomarTrieste PCS

ItalianCustomsSystem

RFID Reader antenna

Trailers gate out fromPort of Trieste

PORT GATE-OUT LIST: List of trailers that have left the

port and RFID info and eSeal integrity status

Sinfomar

SinfomarPort

Gate-OutList

ItalianCustomsSystem

MIP

CustomsInfo

TurkishCustomsSystem

Passive eSeal check atDischarging area

Passive eSeal final checkat Loading area

THANK YOU