townsville towage tender document

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CONTRACT C640

Request for Proposals - Licence to Supply Towage Services and Associated Tug Berth Licence

for the Port of Townsville ("Tender")

Contract C640 – Licence to Supply Towage Services for the Port of Townsville and Associated Tug Berth Licence

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SECTION A

TENDER INFORMATION AND CONDITIONS OF TENDERING


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Port of Townsville Limited

REQUEST FOR PROPOSALS SUPPLY OF TOWAGE SERVICES PORT OF TOWNSVILLE AND ASSOCIATED TUG BERT LICENCE (Tender)

TENDER INFORMATION

This Tender Information shall be read in conjunction with and shall form part of the Conditions of Tendering.

Background & Invitation: Port of Townsville Limited (POTL) is a Queensland Government owned Corporation constituted under the Government Owned Corporations Act 1994 and the Transport Infrastructure Act 1994, with offices at Administration Building, Port of Townsville, Benwell Road, Townsville, Qld 4810.

Licences:

POTL is considering issuing an exclusive licence for the Port of Townsville for the provision of towage services. Whether or not POTL does issue an exclusive licence will depend on the content of the tenders received and on the arrangements that POTL considers best meet its objectives for towage service provision, as outlined in the Tender Documents.

Standard Towage Licence Terms: The base terms and conditions of the Towage Licence are set out in the POTL's standard Towage Licence contained in Section C of the Tender Documents.

Standard Tug Berth Licence Terms: If POTL does issue any Towage Licence then the licensee will be required to enter into a Tug Berth Licence if it wishes to use tug berths at the Port of Townsville. The base terms and conditions of the Tug Berth Licence are set out in POTL's standard Tug Berth Licence contained in Section C of the Tender Documents.

Exclusive Dealing Notification: The grant of any exclusive Towage Licence will always be subject to POTL being satisfied with the outcomes of any Exclusive Dealing Notification it may wish to make pursuant to the Trade Practices Act 1974.

Request for Proposals: POTL invites proposals (Tenders), based on the Tender Documents, from suitably qualified operators who wish to be considered for the grant of an exclusive Towage Licence to provide towage services in the Port of Townsville together with the grant of an associated Tug Berth Licence.

This tender is a reissue of the cancelled tender for contract 605.

Definitions & Interpretation:


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In the Conditions of Tendering:-

"Closing Time" means 1600 hours AEST, 28 April 2009, the time at which tenders close

"Port" means the Port of Townsville

"Principal" means Port of Townsville Limited (POTL)

"Purchase Price" means $Nil "Tender Deposit" means the sum of $Nil

"Tender Documents" means

(i) this Tender Information and Conditions of Tendering, set out in Section A

(ii) Form of Tender and Tender Schedules, set out in

Section B (iii) POTL's standard Towage Licence terms and

standard Tug Berth Licence terms set out in Section C

(iv) Specification (including drawings referred to

therein), set out in Section D (v) any annexure, addendum or amendment issued by

the Principal by notice pursuant to clause 1.11 of the Conditions of Tendering.

"Tenderer" means any person or entity who lodges a Tender.

"Site" means the Port of Townsville and the place or place where the Services are to be provided or are likely to be provided together with the tug berths and surrounding areas.

"Services" means the towage services and related services, which are

described in the Tender Documents.

Inspection and Purchase of Tender Documents: Tender Documents may be inspected or purchased at:

Port of Townsville – Administration Building

Benwell Road

Townsville Qld 4810


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Lodgement of Tenders: Tenders shall be enclosed in a sealed envelope endorsed:

Tender for Contract C640 – Licence to Provide Towage Services for the Port of Townsville.

Address: Tender Box

Administration Building

Port of Townsville

Benwell Road

Townsville Qld 4810

Australia Principal's Postal Address: PO Box 1031

Townsville Qld 4810

No. of Copies of Tender

required: Three (3)

Tender Inquiries: All questions or inquiries concerning the Tender

Documents shall be submitted in writing to:

Matthew O’Halloran General Manager Operations Port of Townsville Limited Address: PO Box 1031, Townsville, Qld 4810 Phone: 07 4781 1655 Facsimile: 07 4781 1601 Email: [email protected] Tenderers should note that questions or inquiries submitted to POTL, and the response to such questions or inquiries, may be made available to all Tenderers.

Tender Validity Period: Tenders shall be valid for ninety (90) days from the Closing Time. After the expiration of such period, a Tender shall remain valid only with the written consent of the Tenderer.


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Conditions of Tendering

Contents 1 Basis of Tender 7 1.1 Identity of Tenderer 7 1.2 No Assignment 7 1.3 No Masquerades 7 1.4 Agreement to be Bound by Conditions of Tendering 7 1.5 Tender Documents 7 1.6 Tenderer to Inform Itself Fully 7 1.7 Site Conditions 8 1.8 Warranties and Acknowledgements 8 1.9 Access to Site During Tender Period 9 1.10 Property and Copyright in the Specification 9 1.11 Notice to Tenderers 9 1.12 Grievance Mechanism 9

2 Tenders 10 2.1 Contents of Tender 10 2.2 Subcontractors 10 2.3 Non-Conforming Tenders 10 2.4 Compliance 10 2.5 Acknowledgment by Tenderers - Contracts 10 2.6 Signing of the Tender 11 2.7 Lodgement of Tenders 11 2.8 No Collusion 12 2.9 Bribes 12 2.10 Canvassing 12 2.11 Taxes and Pricing 12 2.12 No obligation to Proceed 12 2.13 Expenses of Tendering 12

3 After Lodgement of Tenders 13 3.1 Opening of Tenders 13 3.2 Post Tender 13 3.3 Additional Information 13 3.4 Referees 13 3.5 Modification of Tenders 13 3.6 Withdrawal of Tenders 13 3.7 Process and Assessment Criteria 13

4 UNSUCCESSFUL TenderERs 16 5 Other Requirements 17 5.1 Queensland State Procurement Policy 17 5.2 Environmental Management and Compliance 17

6 Confidentiality and Media 18 7 Financial and Legal Capacity 19


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1 BASIS OF TENDER

1.1 Identity of Tenderer The identity of the Tenderer is fundamental. The Tenderer shall be the person, persons, corporation or corporations named as the Tenderer and whose execution appears on Schedule 1.

1.2 No Assignment Each tender is personal to, and is not assignable or transferable by, the Tenderer or any representative of the Tenderer, without the prior written consent of the Principal (which consent may be withheld at the Principal’s absolute discretion).

1.3 No Masquerades If the Tenderer is acting as agent or trustee for or jointly with another person, persons, corporation or corporations this must be fully disclosed by the Tenderer in the Tender. If the Tenderer fails to fully disclose the identity of all participants and the nature of its relationship to those participants, the Tender’s tender may not be considered by the Principal. No-one will have any right, title or interest in any licence that arises out of the Tender process unless they have been fully disclosed to the Principal in the relevant tender submission.

1.4 Agreement to be Bound by Conditions of Tendering In consideration of the Principal inviting the Tenderer to Tender for the Licence, and in consideration of the Principal agreeing to evaluate each Tender submitted by the Tenderer in accordance with these Conditions of Tendering, the Tenderer agrees to be bound by these Conditions of Tendering for each tender submitted by the Tenderer.

1.5 Tender Documents The Tender Documents are set out in the Tender Information and on the Form of Tender. The Tender Information shall form part of these Conditions of Tendering.

The Tender Documents must be read and construed together.

The documents comprising the Tender Documents are intended to be mutually explanatory.

The Tender Documents must be used solely for the purpose of Tendering for the Towage Licence and the Tug Berth Licence, and for no other purpose. The information provided by the Principal in these Tender Documents is provided for the convenience of Tenderers. While the Principal has taken reasonable steps to ensure that the information is accurate, it does not warrant, represent or guarantee the accuracy or completeness of the information.

Tender Documents may be inspected at the address shown in the Tender Information, or purchased for the Purchase Price. The Purchase Price is non-refundable.

1.6 Tenderer to Inform Itself Fully Tenderers are required to acquaint themselves with all conditions relating to the Tender and are to inspect the Site prior to submitting a Tender.

Tenderers are required to, and agree by submitting a Tender that prior to submitting the Tender they have carried out all relevant investigations and have examined and acquainted themselves with and have satisfied themselves concerning:-

• the Tender Documents including the Specification referred to in Section D;

• information (oral or otherwise) provided or made available at any time by or on behalf of the Principal to any Tenderer;

• all information which is relevant to the risks, contingencies and other circumstances which could affect the Tender and which is obtainable by the making of reasonable enquiries;


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• Site conditions (as more fully described in clause 1.7);

• the nature of the work and plant necessary for, and the amount of work involved in the provision of Services, and access requirements to the Site and the tug berths;

• the correctness and sufficiency of its Tender, and that its price covers the cost of complying with all of the Licensee’s obligations under the Towage Licence and the Tug Berth Licence and all matters and things necessary for the due and proper provision of the Services and the use of the tug berths.

• understanding of the Principal’s objectives regarding Service provision; and, • recognition that the Services will be reviewed in future and that there is potential for them to be

varied, resulting in modified Service requirements depending upon future Port requirements.

If a Tenderer has any questions or inquiries as to the meaning or content of the Tender Documents, it shall either:-

(a) make a request in writing to the Principal for clarification (which may be issued with the written response of the Principal to all Tenderers); or,

(b) when submitting its Tender, include a statement of the interpretation upon which it relies and on which its Tender has been prepared.

The Principal shall not be bound by any verbal advice given or information furnished by any officer of the Principal in respect of the Tender Documents.

1.7 Site Conditions Tenderers are to satisfy themselves as to the nature of the Site and of all matters and things relating to provision of the Services, including but not limited to:-

• The layout of the Port, including channels and berths;

• Operating parameters for shipping movements within the Port limits;

• Number of vessel movements and size of vessels visiting the Port;

• Range of met-ocean conditions experienced at the Port.

The Principal accepts no responsibility for any interpretations made by the Tenderer in respect of any Site information. It is the Tenderer’s responsibility to interpret and assess the relevance of any Site information, to decide whether additional information is required. If a Tenderer has a query arising from a Site inspection, the query must be submitted as described in the Tender Information and the Conditions of Tendering.

In accordance with the changes to the Workplace Health & Safety Act 1995 which came into effect from 1 July 2007 the Principal, (the ‘Client’) has:-

• reviewed hazards or safety risks that the Principal is aware of on the Site and associated with the Services.

The relevant information is included in Section B Tender Schedules of this document. The Tenderer is to provide this schedule with its Tender including a record of consultation undertaken with the Principal regarding the OHS issues relating to the Tenderer’s proposal to provide the Services.

1.8 Warranties and Acknowledgements In submitting a Tender, Tenderers are deemed to have acknowledged and warranted that:-

(i) all information provided by the Tenderer in the Tender submission is accurate;

(ii) the Tenderer has and will maintain the necessary experience, expertise and skill to provide the Services;

(iii) the Tenderer will maintain at adequate levels throughout the term of each Licence all resources required for the proper provision of the Services and use of the tug berths within the time required under the Licence terms including, but without limitation, operations and corporate management, skilled manpower, finance, material, and office and operational plant and facilities;


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(iv) the Tenderer has not relied on any information provided by the Principal and has undertaken and relied upon its own investigations into the commercial and operational risks involved in relation to all aspects of the Services, the Towage Licence and the Tug Berth Licence;

(v) the Tender complies in all respects with the Tender Documents and is in all respects consistent with the Tender Documents; and

(vi) any non-conforming Tender is submitted at the Tenderer's risk,

and in submitting a Tender, the Tenderer will be deemed to acknowledge that the Principal will be entitled to rely upon the warranties given in this clause.

1.9 Access to Site During Tender Period Tenderers are invited to inspect the Site and related Port facilities at Townsville to ensure that they are fully conversant with the Port's towage requirements. Prior approval must be obtained from the Principal. No reliance shall be made on the Principal granting such approval, which may be conditional. Each Tenderer is also invited to contact the main Port users (including the Pilots and Regional Harbour Master) to ensure they fully understand the various Port users' needs in regard to Services provision.

1.10 Property and Copyright in the Specification All rights of intellectual property, including copyright, in the Specification and other documents supplied to the Tenderer by or on behalf of the Principal must not be used by the Tenderer for purposes other than the preparation of a Tender, except with the prior written approval of the Principal.

All documents, materials, articles and information submitted by the Tenderer as part of, or in support of a Tender shall become, upon submission, the absolute property of the Principal and will not be returned to the Tenderer at the conclusion of the Tender process. However, the Tenderer shall be entitled to retain the copyright and any other intellectual property associated with its Tender submission documents unless otherwise provided in any licence that arises out of the Tender process.

1.11 Notice to Tenderers The Principal reserves the right at any time and from time to time before the Closing Time to issue (by notice in writing each prospective Tenderer) amendments, additions to, or deletions from all or any of the elements of the Tender Documents. Such notification in writing shall be entitled "Notice to Tenderers". Every Notice to Tenderers shall be provided in accordance with the ‘Service of Tender Notices’ provisions of this tender document.

Any Notice to Tenderers will form part of the Tender Documents.

Tenderers must, in their Tender, acknowledge receipt of all Notices to Tenderers.

Service of notice to a Tenderer shall be to the address provided by the Tenderer at the time it obtains a copy of the Tender Documents.

Notices may be served:

(a) by email, when delivered to a system from which the Tenderer can retrieve it; or,

(b) by hand delivery, where notice is deemed to be served at the time the document is handed over; or,

(c) by prepaid post, where notice is deemed to be served at the time at which such notice would normally arrive in the ordinary course of mail; or,

(d) by facsimile, where notice is deemed to be served on the day of transmission, except where the Tenderer notifies the Principal by 4:00 pm on the day following transmission, that the copy received was not legible, in which case the later date of transmission shall be deemed to be the date of service of the notice.

1.12 Grievance Mechanism Any Tenderer who is dissatisfied with the tender process or any decision made by the Principal may lodge a complaint in writing to the relevant person:

General Manager Support Services, Port of Townsville Limited


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2 TENDERS

2.1 Contents of Tender A Tender must be submitted upon the Tender Form provided in Section B and together with the documents referenced on the Tender Form shall be deemed to form the Tender. Tenders shall not be prepared in pencil.

Handwritten alterations and amendments to the face of the Form of Tender made before the lodgement of the tender must be clearly legible and initialled by the Tenderer. Tenders containing un-initialled alterations and amendments and tenders in which information is not legible may be excluded from consideration at the total discretion of the Principal.

All Tender Schedules shall be completed by the Tenderer and submitted with the Tender.

Tenderers may attach additional or explanatory information as supplementary material to their Tender. Supplementary material is material additional to the Form of Tender which elaborates or clarifies the Form of Tender, but which does not alter it in any material aspect. Supplementary material which, in the Principal's opinion, effectively alters the tender contained in the Form of Tender may not be admitted for evaluation. Packages containing supplementary material must be clearly labelled.

2.2 Subcontractors Each Tenderer shall be entirely responsible for the activities of its potential subcontractors with respect to the Tender, including answering any queries they may have. The Tenderer shall ensure that under no circumstances will a subcontractor contact the Principal in order to seek answers to queries. If a subcontractor has a query, this shall be passed to the Tenderer who may in turn pass the query to the Principal.

2.3 Non-Conforming Tenders Any Tender which does not comply with the requirements of the Tender Documents, or which contains provisions not required by the Tender Documents, may be rejected by the Principal in its absolute discretion (but the Principal shall be under no obligation to reject the non conforming Tender and may, at its discretion, accept a Tender that is non-conforming). .

Any acknowledgement by the Principal that it has received a Tender does not imply that the Tender has been received or admitted as a complying Tender.

Tenderers may submit alternative Tenders to that specified herein. Any such exception shall be expressly stated in the Tender and clearly identified as an exception to the Tender Documents.

Any such Tender shall also be accompanied by full details of the alternative, and documented evidence of its ability to achieve the specified quality and other requirements, and clearly marked "ALTERNATIVE TENDER"

Any alternative tender may be rejected without consideration by the Principal if it is not submitted in conjunction with a conforming Tender.

2.4 Compliance Unless otherwise agreed in writing between the Principal and the relevant Tenderer, every Tenderer must, prior to lodging any Tender, obtain or procure any approval, qualification, registration, membership or licence required to be held by the Tenderer to enable it to lawfully provide the Services.

The Tenderer must include with its tender all registration or license numbers and qualification or membership details which are necessary for it to provide the Services or which it proposes to use to provide the Services.

All such licenses and memberships must be current at the time of submission of the Tender.

2.5 Acknowledgment by Tenderers - Contracts


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By lodging a Tender, a Tenderer accepts and acknowledges that, in respect of any of the matters or things relevant to the Services and the tug berth licence which the Tenderer must satisfy itself under these Conditions of Tendering:-

(i) it shall have no claim against the Principal or any employee, agent or contractor of the Principal (whether in contract, tort, equity, under statute or otherwise) from or in connection with any information provided by the Principal during the Tender process.

(ii) except as provided for in clause 1.4, neither the Tender document nor the Tender process undertaken by the Principal will give rise to any licence or contractual obligations of any kind between the Principal and the tenderer unless the terms of the licence or other contract are acceptable to the Principal and have all been reduced to writing in a single document and signed by both the Principal and the Tenderer.

2.6 Signing of the Tender The Tenderer must sign all copies of the Tender.

If the Tenderer is a corporation, the common seal of the Tenderer is to be affixed to the Tender Form, in the manner prescribed by its Constitution or, alternatively, the Tender Form must be signed for and on behalf of the Tenderer by a person or persons having full authority to bind the Tenderer for the purposes of the Tender.

If the latter option is taken, evidence of the authority of the person or persons signing the Tender Form must be provided.

If the Tenderer is:-

(a) a person, it must provide the name in full and the address of the person;

(b) a firm, it must provide the name in full and the address of each member of the firm; or,

(c) a corporation, it must provide the name of the corporation, the address of its registered office and its ABN.

The Tenderer is to include details, as applicable, of the Tenderer about:

(a) any trading or business name, if different from its registered name;

(b) related bodies corporate within the meaning of the Corporations Act; and,(c) for a foreign individual, firm or corporation, details of its registration, incorporation and place of business in Australia and the name of any Australian representative.

2.7 Lodgement of Tenders A Tender must be lodged in accordance with the following requirements:-

(a) Every Tender shall be in the form prescribed by the Conditions of Tendering (Section B).

(b) Tenders shall be enclosed in a sealed envelope addressed to the Principal and endorsed with the Contract number and a general description of the Licences as set out in the Tender Information.

(c) The number of copies of the Tender stated in the Tender Information shall be lodged in the Tender Box at the Location and before the Closing Time specified in the Tender Information. The Principal may reject any tender delivered after the Closing Time.

(d) Any Tender not lodged before the Closing Time shall not be considered unless there is evidence satisfactory to the Principal that such tender was either posted or despatched by a recognised carrier providing a direct delivery service to the Port of Townsville, in sufficient time to reach the Principal under normal circumstances before the Closing Time but was still in course of delivery by post or by the recognised carrier at the Closing Time.

(e) The Principal in its discretion may reject a Tender delivered after the Closing Time no matter what the reason is for the late delivery. Franking machine stamps will not be accepted by the Principal as proof of the date of posting of a Tender received after the Closing Time.

(f) Tenders sent or transmitted direct to the office of the Principal by telephonic or telegraphic devices, telegram, telex, facsimile or other electronic means, will not be considered.


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2.8 No Collusion In submitting any Tender, the Tenderer will be deemed to warrant that:

(i) neither the Tenderer nor any of its servants or agents had any knowledge of the price of any other Tenderer prior to submitting its Tender nor has the Tenderer disclosed to any rival Tenderer the Tenderer's price or any other information, offer or proposal set out in the Tender;

(ii) neither the Tenderer nor any of its servants or agents have entered into any contract, arrangement or understanding having the result that, if successful in the Tender Process, it will pay to any unsuccessful Tenderer any moneys in respect of or in relation to the Tender or any Licences that may be granted; and,

(iii) the Tender is a genuine competitive tender and is not a "cover tender" or "cover bid".

2.9 Bribes If a Tenderer shall be found to have offered or given any gratuity, bonus, discount or bribe of any kind to any member, office or employee of the Principal in relation to any aspect of the Tender or the Tender process, then the Principal may reject that Tenderer's Tender and the Tenderer must indemnify the Principal against all losses and damage which the Principal may sustain as a result.

2.10 Canvassing The canvassing by Tenderers and/or their employees or agents will be considered grounds for the rejection of a Tender.

Except as provided for in the Conditions of Tendering, a Tenderer must not discuss or attempt to interview or discuss any matter in relation to its Tenders or any other Tenders with any member, office, employee or agent of the Principal. A breach of this clause by employees or agents of the Tenderer will constitute grounds for rejection of a Tender without further reference to the Tenderer involved.

2.11 Taxes and Pricing GST will be applicable to the Service provision costs, and the Tenderer is deemed to have included GST in its Tender Price. The amount of GST will be required to be stated on all invoices.

The Tenderer is required to examine and satisfy itself concerning any applicable sales tax exemptions and make allowance in the charges, rates and prices tendered for the provision of Services for any sales tax payable in relation to the Services.

2.12 No obligation to Proceed The Principal may postpone, cancel, vary or abandon the Tender process at any time for any reason. If the Principal does postpone, cancel, vary or abandon the Tender process then no Tenderer will have any claim against the Principal for any costs, losses or damages of any kind that the Tenderer may have incurred in connection with or arising out of the preparation or submission of any Tender.

The Principal is not obliged to select any preferred Tenderer or Tenderers and the Principal is not obliged to negotiate with, or grant any licence to any Tenderer.

2.13 Expenses of Tendering Tenderers are responsible for all costs incurred in the preparation and lodgement of Tenders, and in respect of any discussions, negotiations, enquiries or any work undertaken by them in relation to the Tender process. The Principal is not liable for any costs or compensation in relation to these matters, regardless of whether the Principal terminates, varies or suspends the Tender process or takes any other action in relation to the Tender process.


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3 AFTER LODGEMENT OF TENDERS

3.1 Opening of Tenders Tenders lodged in the tender box will be opened after the time and closing date shown in the Tender Information. Tenderers, their representatives and others are not entitled to be present at the opening of the tender box or opening of Tenders. Information as to the names of Tenderers, the tendered prices or the content of any Tender will not be made public. Following formal notification that the Licences have been granted, unsuccessful Tenderers may request ‘feed back’ from the Principal regarding the Tenderer’s Tender only. The Tenderer agrees that any such ‘feed back’ provided will be on an informal and ‘without prejudice’ basis.

3.2 Post Tender Post tender interviews may be conducted with any Tenderers who are short-listed by the Principal. Answers to questions from any short-listed Tenderers shall be considered as additional information to that which has been provided with the relevant Tenders and the Principal may take that information into account in its decision making process.. Any interviews may be conducted in person or telephone as requested by the Tenderer.

3.3 Additional Information The Principal may at any time request additional information from one or more of the Tenderers for the purpose of comparison of Tenders. A Tenderer must provide all such additional information or clarification as may be requested by the Principal.

The Tenderer must allow the Principal to inspect any tug, facility or equipment proposed for use in the provision of the Services.

The Principal's request for additional information will generally be in writing addressed to the designated contact person at the Tenderer's address given in the Tender. The Tenderer's response to such a request must be in writing and will form part of the Tenderer's Tender.

If the Principal considers it necessary it may request a meeting with the Tenderer to obtain additional information from that Tenderer.

The Principal will produce a written record of any such meeting, to be signed by both the Principal and the Tenderer. The signed written record will form part of the Tenderer's Tender.

3.4 Referees The Tenderer must allow the Principal to contact any referee nominated by the Tenderer and authorise the Principal to obtain information about the Tenderer from any third party who the Principal reasonably considers may be able to provide information about the Tenderer or which is pertinent to the Tender.

3.5 Modification of Tenders The Principal reserves the right to invite some or all Tenderers to change their Tender submissions to take into account any matter or issue raised by the Principal.

3.6 Withdrawal of Tenders A Tenderer may withdraw its Tender at any time after the expiration of the Tender Validity Period stated in the Tender Information, but shall not withdraw its Tender prior to the expiration of such period.

3.7 Process and Assessment Criteria If the Principal is satisfied with the Tender process, it is the Principal's intention to select one or more preferred proposals from the Tender submissions received and to then negotiate with the preferred Tenderer or Tenderers in relation to the terms of a final written Towage licence and Tug Berth licence (Licences) and it is the Principal's intention to ensure that the terms of the Licences contain those terms set out in the Standard Towage Licence and the Standard Tug Berth Licence set out in Section C (Standard Terms).


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However, the Principal reserves the right to vary the Standard Terms at any time prior to execution of the final Licence documents.

Selection as a preferred Tenderer will not mean that the Tenderer will be granted any licence or contract of any kind and will not mean that the Principal has accepted or will accept any of the terms or conditions specified by any preferred Tenderer in its Tender.

The selection of one or more preferred Tenderers by the Principal will be based the Principal's value for money assessment of the Tenders. In carrying out its assessments the Principal will, amongst other things, assess the Tender submissions in response to the following criteria (set out in no particular order of priority) together with an assessment of any other information provided in the respective Tenders:

• proven ability of the Tenderer to provide towage services to the shipping industry in ports like the Port of Townsville according to best practice principles in terms of availability, reliability, competence, flexibility security and safety;

• the ability of the Tenderer to guarantee a high level of service and to expand, improve and innovate on its services to cater for any future growth and expansion in the Port of Townsville;

• operational history of managing comparable size towage operations under similar conditions to those existing in the Port of Townsville with the range of vessel sizes, types, frequency of movements and operating conditions;

• the quality of the guarantees proposed regarding the tugs and availability of equipment and labour for the uninterrupted supply and overall continuity of the Services;

• demonstrated compliance with the provisions requiring tug masters, engineers and crew to be licensed as required in the Transport Operations (Marine Safety) Regulations 2004 (Qld), Sections 86, 87, 88 and 89. Tug crews to be trained in fire fighting in accordance with AS 3846 – 2005;

• the competitiveness of the charges proposed for the Services;

• the adequacy of backup tugs in respect of capability and timeliness;

• the preparedness and ability of the Tenderer to show flexibility and reschedule services at relatively short notice with reduced penalty or no penalty;

• the quality assurance, environmental, safety and security standards proposed;

• the ability to provide interim towage services should they be required after grant of the Licences has been agreed in principal pending finalisation of the grant and any of the conditions precedent imposed by the Principal's with respect to the grant; and,

• the Tenderer's employee relations management plan (being a plan that should, amongst other things, recognise the importance of all personnel who carry out Services related work being able to work in an environment that is:-

• free of disputation and discrimination;

• safe and healthy; and.

• quality controlled.

If the Principal adopts a weighting system of assessment (which it may do), Tenderers should note that the failure to provide any of the Principal's requested information may result in a zero score for that criterion.

Rates for services may be assessed in whole or part by the generation of a lump sum against historical ship movement data from the Port. This data is provided as part of the Tender Documentation.

Tenderers should also note that:

(a) Tenders who cannot demonstrate minimum capability requirements for provision of the Services will most likely be excluded from the Tender considerations;

(b) it will be a requirement under any Towage Licence that the licensee must ensure back-up towage services are available at the Port within 24 hours and that the capacity of those back-up services must meet or exceed the minimum requirement outlined in Section D of these Tender Documents. Inability to meet this criteria is likely to result in immediate disqualification from Tender consideration;


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(c) the grant of any exclusive Towage Licence will always be subject to POTL being satisfied with the outcomes of any Exclusive Dealing Notification it may wish to make pursuant to the Trade Practices Act 1974; and

(d) in addition to approval by the POTL Board, the grant of any licence arising from this Tender process may require Queensland State Government approval and may be subject to scrutiny by relevant competition authorities.

These factors will be considered when evaluating tenders and weighted on a price:non-price criteria ratio of 40:60.


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4 UNSUCCESSFUL TENDERERS Following the grant of any Towage Licence and Tug Berth Licence the unsuccessful Tenderers will be advised in writing.


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5 OTHER REQUIREMENTS

5.1 Queensland State Procurement Policy As a Government organisation the Principal is required to follow the requirements of the State Procurement Policy.

5.2 Environmental Management and Compliance Any Tenderer who is granted a Towage Licence or a Tug Berth Licence shall comply with the Environmental Protection Act 1994 and the Environmental Protection Regulation 1998. Compliance includes, but is not limited to seeking, holding and maintaining all environmental licences necessary to provide the Services.


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6 CONFIDENTIALITY AND MEDIA All information regarding innovative methodology or alternatives provided between Tenderer and the Principal shall be treated as confidential information. Both the Tenderer and Principal shall undertake to maintain that information as confidential and commercial in confidence.

The obligations contained in this clause are continuing obligations and shall survive the termination or completion of this Tender process.

Tenderer’s must not issue any information, publication, document or article for publication concerning the Services or Tender process in any media without the prior written consent of the Principal.

If a Tenderer receives any enquiries pertaining to the Services from the media, the Tenderer must immediately refer the person making the enquiry to the Principal and must notify the Principal of the fact that an enquiry was made. Tenderer's must not make any other comment in response to such an enquiry.


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7 FINANCIAL AND LEGAL CAPACITY The Principal may ask a Tenderer to provide it with written evidence of its financial capacity to perform the Services or of its legal capacity. Written evidence of its financial capacity must come from a bank or financial institution. Written evidence of legal capacity must comprise a copy of an official document such as company registration and names of office bearers issued by the Australian Securities and Investments Commission, or a statement confirming the legal entity signed by a practicing solicitor.

The Tenderer must provide the written evidence (as applicable):-

(a) in relation to financial capacity, within 14 days of a request; or,

(b) in relation to legal capacity, within 3 days of a request.

The Principal may refuse to grant a Towage Licence or a Tug Berth Licence to:-

(a) any body other than a corporation or a person; and,

(b) any body which cannot show that it has the financial and legal capacity to provide the Services.


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SECTION B

FORM OF TENDER AND TENDER SCHEDULES FOR

CONTRACT No. C640


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Contents of Form of Tender and Tender Schedules 1 Tender Form Checklist 22 2 Form of Tender 23 3 Statutory Declaration 25 4 Tender Schedules 26


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1 TENDER FORM CHECKLIST Tenderers are required to provide all details requested by the Tender Schedules.

The Tender shall be provided (in the number specified in the Tender Information) to the Principal at the address nominated in the Tender Information.

The Tender shall consist of:

1. A completed Form of Tender.

2. A completed Statutory Declaration

3. Completed Tender Schedules:

Schedule A. Company Information Schedule B. Business Activity & Experience Schedule C. Rates Schedule D. Licence Fee Schedule E. Plant Schedule F. Service Commencement Schedule G. Personnel Schedule H. Ordering procedures Schedule I. Site Facilities Schedule J. Emergency Response and Continuity of Service Guarantee Schedule K. Fire Fighting Schedule L. Quality Schedule M. Insurance Schedule N. Safety Schedule O. Environmental Management Schedule P. Security Management Schedule Q. Tender Exclusions

and shall, unless set out in an alternative Tender, be deemed to incorporate an offer by the Tenderer to accept:

1. the terms of the standard Towage Licence and the standard Tug Berth Licence terms set out in Section C of the Tender Documents.

2. the Specification for Contract No. C640 set out in Section D of the Tender Documents. NOTE:

• Attention is drawn to the Conditions of Tendering regarding alternative Tenders.

• Tenderers are reminded to take careful note of all Notices to Tenderers that are issued by the Principal.

• Where there is insufficient space in any of the above Schedules for Tenderers to provide the requested information, additional pages may be inserted and incorporated as part of submissions.


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2 FORM OF TENDER Full name of person, firm or company tendering USE BLOCK LETTERS

Australian Business Number:

Address: of Phone: Fax: hereby tender(s) for an exclusive Licence to Description of Works provide towage services at the Port of Townsville and a licence to use

allocated tug berths at the Port of Townsville

(Contract C640) in accordance with the following documents: Tender Documents Tender Information and Conditions of Tendering * Documents to be Tender Form * submitted by Tenderer Statutory Declaration * Schedule A. Company Information

Schedule B. Business Activity & Experience Schedule C. Rates Schedule D. Licence Fee Schedule E. Plant Schedule F. Service Commencement Schedule G. Personnel Schedule H. Ordering procedures Schedule I. Site Facilities Schedule J. Emergency Response and Continuity of Service Guarantee Schedule K. Fire Fighting Schedule L. Quality Schedule M. Insurance Schedule N. Safety Schedule O. Environmental Management Schedule P. Security Management Schedule Q. Tender Exclusions

Other (specify)


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Addenda To Tender Documents

We acknowledge receipt of the following addenda, the terms of which are incorporated in the Tender [INSERT FURTHER ENTRIES AS REQUIRED]:

Number Dated

Number Dated

Number Dated

Commencement of Services:

I/We will commence the provision of the Services within ______ weeks from the date on which the Towage Licence is granted.

If the Tenderer is a firm the full names of the individual members of the firm must be stated here.

Insert date.

DATED this ................................. day of ............................. 20.......

Signature of Tenderer

Signature of Witness

Address of Witness


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3 STATUTORY DECLARATION I, ……………………………………………………..………………………………………………… of ………………………………………………………………………………………………………….. do solemnly and sincerely declare, in respect of the Tender for ………………………………………………………………………... ………………………………………………………………………………………………………………….……. that: 1. I hold the position of ………………………………………… and am duly authorised by

…………………………………….. (the Tenderer) to make this declaration on its behalf. (a) Neither the Tenderer nor any of its servants or agents has entered any contract, arrangement or

understanding with any other tenderer or any trade, industry or other association to the effect that the Tenderer, if successful will confer any benefit on any other party;

or (b) The Tenderer has entered into a contract, arrangement or understanding to pay to

………………………………………………………………………………………………… the sum of $AUS………………………..…………. On account of the Tenderer being granted any licence as a consequence of the Tender process.

2. Neither the Tenderer nor any of its servants or agents has or had any knowledge of the price of any other Tenderer prior to submitting its Tender nor did the Tenderer disclose to any other rival Tenderer the Tenderer’s price prior to closing of Tenders.

3. The Tenderer did not collude with, accept any commission from, offer any commission to, or inflate its

tendered price for the benefit of, any other Tenderer; 4. The Tenderer warrants that it has no conflict of interest in the performance of the services/work

detailed in this Tender at the date of this Tender. 5. The Tenderer warrants that immediately upon becoming aware of the existence of, or possibility of, a

conflict of interest affecting the Tenderer, the Tenderer will advise the Principal in writing, in which event the Principal may abandon the tender process.

And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Oaths Act. Signature and date …………………………………….………………………………………………………………. Subscribed and Declared at ……………………………. this …………………..day of ………………….….20….. Before me …………………………………………………………. (Justice of the Peace).


Tenderer: ............................................ Witness:................................................

Signature:............................................ Signature: .............................................

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4 TENDER SCHEDULES

SCHEDULE A. COMPANY INFORMATION A.1 Corporate Details

Business Name

ABN

Type of business (partnership, public company, private company, etc.)

Address

Contact person

Telephone number

Facsimile number

Email address

Names of Directors or Partners

Authorised signatory – Name & Position

List parent and subsidiary companies (provide a diagram showing relationships)

And year established

Total revenue for last 3 financial years

Name of financial referee able to provide and verify financial information regarding the business




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A.2 Financial Details

Last two financial years ending…

Item

June 2007 June 2008

Current year to end of last

month

1. Turnover (revenue) including contract receipts

2. Direct expenses

3. Gross profit

4. Operating expenses

5. Net Profit

6. Current assets - Cash - Trade debtors - Inventory - Other

7. Current liabilities - Trade creditors - Provisions i. Employee entitlements ii. Income tax - Other

8. Working capital (Item 6 minus Item 7)

9. Non-current assets - Loans - Investments - Property, plant and equipment

10. Non-current liabilities - Loans - Creditors - Provisions - Other

11. Net assets (Item 8 plus Item 9 minus Item 10)

12. Shareholders/proprietors funds - Share capital - Reserves - Accumulated profits/losses

(Total of Item 11 should equal total of Item 12)




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SCHEDULE B. BUSINESS ACTIVITY & EXPERIENCE B.1 Business Activity

Tenderer is required to provide a summary of the main business activities of the companies indicated in the diagram in Schedule A.1 indicating the range of services offered. In particular, details of tug facilities currently owned or operated should be provided.

Company Business Activities Tugs Owned/Operated




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B.2 Experience

Tenderer is to provide details of the company’s experience on similar operations including the nature of the services, dates and contact details of Authorities that can be contacted by the Principal as references.

Contract Licence Period Nature of Services Name of Supervisor Representative




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SCHEDULE C. RATES • Respondents are required to show clear details of the charges or scale of charges to apply for the

provision of Services.

• Proposed charges must be shown with and without GST.

• Proposed charges are to be maximum charges only. Nothing is intended to preclude a licensee from charging less than the maximum charges stated in any licence that results from this tender process.

• Proposed charges should be all inclusive. It is not intended that surcharges for activities such as removals or use of tugs’ lines or other surcharges would be levied.

• Tenderers are required to indicate additional charges (if any) proposed for cancellations and detentions and the basis of application of these charges.

• Tenderers should, without limitation, take into account the terms set out in the Principal's standard Towage Licence and standard Tug Berth Licence set out in Section C of the Tender Documents.

• Tenderers are required to propose the period for which the proposed charges are to apply before those charges are reviewed and outline the method or methods for review proposed together with the frequency of reviews.

• Tenderers are asked to separately outline their intended discounting policies.




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C.1 Charges for Towage Provide charges per tug per service in the table below.

Port of Townsville Vessels using own power - Vessel GRT

Charge Ex. GST

Charge With GST

Up to 5,000 Gross Tonnes

5,001 Tonnes up to 10,000 Gross Tonnes





Vessels greater than 50,000 Gross Tonnes

C.2 Additional Tug Services

Provide charges for additional services including emergency response per tug in the table below. Charge Ex. GST

Charge With GST

Hourly Rate Charge per tug (towage)

Waiting Time per hour per tug

Cancellation Cost per tug

Deferral Cost per tug

Other (Specify)

C.3 Review of Charges Tenderers are requested to specify the period for which the charges proposed will apply and outline the method or methods of review of charges it proposes applying assuming a seven (7) year licence period is granted. This information should also detail the frequency of review proposed. The process should include:

• detail of the review of cost of consumables (e.g. fuel); and, • discount for volumes of work greater than base case volume assumptions.

C.4 Discounting Policies Respondents are asked to detail the nature and extent of any discounting that will apply to the scale of proposed charges outlined above.




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SCHEDULE D. LICENCE FEE The licensee will pay to the Principal a Licence Fee. Tenderers are to make an offer of the proposed annual licence fee amount. From market analysis the Principal has determined a fair market value for the Licence Fee and will be reluctant to accept offers below this amount.

Ex. GST With GST

Licence Fee Amount




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SCHEDULE E. PLANT Tenderers are required to complete the following for the purposes of the Towage Licence stating the numbers and sizes of tugs to be used in the Port of Townsville for both primary and back-up tugs.

PRIMARY TUGS BACK-UP TUG

Tug 1 Tug 2 Tug A

Name/Number

Gross Tonnes Bollard Pull (@85% MCR)

Over Stern

Bollard Pull (@85% MCR) Over Bow

Speed

Standard Operating Draft Min Operating Draft

Length Overall

Beam Moulded

Depth Moulded

Year of Construction

Date of Last Survey

Type of tug (propulsion method)

Brake Horsepower of Propelling Engine

Fire-fighting class as per AS3846-2005 table B1

Volume/Type Foam




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SCHEDULE F. SERVICE COMMENCEMENT Tenderers are required to outline anticipated timeframes required to commence Service provision. Specifically Tenderers should specify details of:

1. the date at which full services could be made available; and,

2. the dates, lead time and nature of interim arrangements or partial services, if required, after successful negotiations for a licence have been concluded but before the date specified in 1 above, and the ability to provide services on short notice.




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SCHEDULE G. PERSONNEL G.1 Training

Tenderers are required to outline details of training programs (including training to AS3846-2005 and emergency response training) to ensure that staff are fully trained to provide the Services in a safe and competent manner with the necessary knowledge of local conditions. It is a requirement that Masters, engineers and crew all hold licences as required in the Transport Operations (Marine Safety) Regulation 2004, Sections 86, 87, 88 and 89. There are no specified prior local knowledge requirements for tug skippers and crew to comply with prior to operating at the Port of Townsville. However, tenderers should articulate how their training processes will ensure and demonstrate to the satisfaction of the Regional Harbour Master that personnel are appropriately qualified and trained to carry out their duties.

G.2 Industrial Relations

The Tenderer shall provide details of its proposed Industrial Relations arrangements including details of the manner in which the Tenderer will supply labour and manage labour relations. In addition, the Tenderer shall provide details of a proposed management of dispute settlement procedures for industrial disputes and strikes.




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G.3 Key Personnel

List key personnel, the positions they will hold and their relevant qualifications and experience. Attach resumes as required.

Name Position Qualifications/Experience




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SCHEDULE H. ORDERING PROCEDURES Services are to be available 24 hours a day, every day of each year.

For towage services, Tenderers are required to specify the proposed ordering procedures to be followed, including:

• minimum notice required for ordering

• rescheduling and cancelling orders and penalties that apply

• Commencement of charges and minimum charges that will apply

• number of tugs that would be available within the minimum notice period

• Ordering procedures including for after hours, weekends and public holidays




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SCHEDULE I. SITE FACILITIES The Principal owns and maintains tug berths located at the northern end of Berth 8 capable of mooring two tugs. Administration, storage and crib facilities are also leased within the Port.

With the developments planned for the Port, site facilities (including the tug berths) may have to be moved within the proposed licence period. Further, as these Port developments progress, facilities may need to be relocated to temporary locations until a permanent location becomes available.

Tenderers are required to indicate their requirements for tug berthing and other facilities within the Port, including the ancillary services (power, water, etc) required at those sites and to make offers for the lease or licence of those facilities. The Principal's standard tug berth licence terms are set out in Section C of the Tender Documents and any other facilities leases or licences that are granted by the Principal will be on terms satisfactory to the Principal and those terms are likely to include, amongst other things:

• a licence or lease term that expires as soon as the Towage Licence expires or otherwise comes to an end;

• obligations to maintain the facility in good repair and to return to the Principal in similar condition following termination or expiry of the lease or licence;

• obligations to meet all costs associated with the provision of utilities and any ancillary services to the sites;

• obligations in regard to vacating each site if required by the Principal in for other Port purposes. In this instance the Principal would normally endeavour to find alternative sites from which the lessee or licensee can operate.

The Principal has conducted a market review of its holdings available for lease and licence and has determined minimum prices for those holdings. Sites will not be leased or licensed at rents or fees less than those minimum prices.

Annual Rental or fee Offer Facility Requirement (purpose / services / area)

Ex. GST With GST

Tug Berths

Administration

Storage

Workshop

Crib

Other




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SCHEDULE J. EMERGENCY RESPONSE AND CONTINUITY

OF SERVICE GUARANTEE Tenderers are required to detail the means by which they will guarantee the availability and continuity of Services 24 hours a day, every day of every year. Guarantees are required in respect of backup equipment and facilities for plant which may be temporarily out of service for maintenance, providing emergency assistance or other reasons and for labour which is required to be continuously available for service provision. In particular, detail how a backup tug will be made available at the Port within 24 hours when required.

Tenderers should also outline the procedures for responding to vessels requiring emergency assistance.

Tenderers should take into account the provisions in the Principal's standard Towage Licence set out in Section C of the Tender Documents.




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SCHEDULE K. FIRE FIGHTING Tenders are to outline the procedures by which they will comply with the requirements for fire fighting capability within the tug fleet and crew. This should include a process for the provision of fire fighting foam and any associated costs to be passed on to the Principal or Port Users.




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SCHEDULE L. QUALITY Suppliers to the Queensland Government and its agencies are required to have an appropriate level of quality assurance. Suppliers are advised that if services supplied under any licence issued as a result of this Tender process fail to meet the requirements of the specification this will prejudice the supplier’s chances of being considered for future licences. Tenderers are required to show commitment to, or to have implemented, an adequate quality assurance system. Preference will be given to suppliers who have certification to the appropriate standard, AS/NZS ISO 9001:2000 Quality Management Systems – Requirements. 1 Do you have a Quality System?

If NO, go to Question 8

YES NO

2 Has your firm’s Quality System been certified by a third party (eg Standards Australia, Lloyd’s Register)? If YES, attach a copy of your certification and go to Question 10

YES NO

3 Has your firm’s Quality System been certified by a second party (eg Queensland Government)? If YES, attach a copy of your certification and go to Question 10

YES NO

4 Upon what standard is your Quality System based (eg AS9001,)?

5 Does your firm have a Quality Manual?

YES NO

6 Does your firm have documented Quality Procedures?

YES NO

7 Has your firm’s Quality System been audited by a second or third party? If YES, by whom?

YES NO

8 Are records of QA/QC activities maintained?

YES NO

9 Does your firm undertake Quality Audits?

YES NO

10 Does your firm agree to allow access for an initial assessment of your Quality System (before the grant of any licence)

YES NO

If registration/certification is not presently held, describe the action you are taking toward implementing a quality assurance system for the Services tendered. ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… …………………………………………………………………………………




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SCHEDULE M. INSURANCE Tenderers are required to set out a detailed description of the types of insurance cover, the levels of cover including any limitations and provide proof of currency of cover. At a minimum, this should include, but is not limited to:

• Workers Compensation insurance;

• Public liability insurance;

• Insurable risks to Licensee's and Port equipment;

• Comprehensive marine protection and indemnity insurance including pollution and clean up cover;




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SCHEDULE N. SAFETY 1 Does your company have a Safety Policy? If YES, attach a copy of your policy

YES NO

2 Does your company have a Safety Management System?

YES NO

3 Does your Safety Management System comply with any standards? If yes, nominate the standard…………………..

YES NO

4 Has any legal or legislative compliance action been brought against your company in relation to safety matters? If YES please provide details

YES NO

5 Does your company record safety incident, near miss, safety audit or other such data? If YES, attach a copy of this data in summary format for the last 4 years

YES NO

6 Person in the company responsible for health and Safety

Tenderers are to inform themselves of the occupational health and safety (OHS) issues relevant to the provision of the Services. The tenderer is to consult with the Principal in relation to these issues.

The following are identified by the Principal as potential OH&S hazards associated with the provision of the Services at the Port of Townsville:

• Ships visiting the Port carry and handle dangerous goods and hazardous cargos which may be susceptible to explosion or fire

• Townsville is in a tropical region and can be subject to cyclonic conditions (extreme wind, rain and sea-state events) and high temperatures and humidity which can lead to dehydration.

• Operation of vessels can result in personnel overboard and drowning.

• Activity on vessels can involve works in confined spaces with the potential for suffocation.

• Lines used to fasten and manoeuvre ships can break under high tension and may kill personnel if they are contacted.

• Personnel in the water around operating ships may be injured of killed from propellers.

• Cargo is handled on the wharves at height and may kill of injure personnel if it falls.

• Cargo handling plant and equipment and other vehicles are active throughout the port and may kill of injure personnel if contacted.

• Ships lines, wharf furniture and cargo on wharves can present tripping hazards.

• Wharf edges are unguarded with significant drop to the water below. Personnel may be injured or drown.

• Electricity supply is available at some facilities and may result in electrocution if mishandled or handled in the wet.

• The Tug berth includes floating components in the event of vessel contact or wave action. This could result in crush injuries.

Tenderer

The Tenderer provides the following as a record of consultation undertaken with the Principal regarding the OHS issues relating to the Tenderer’s proposed provision of Services. The Tenderer warrants that it will undertake detailed consultation with the Principal in the event that the Tenderer is granted any Licence and that it will assume the role of principal contractor in the event that the Workplace Health and Safety Act 1995 (Qld) applies to any of the Tenderer's operations in the Port.




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SCHEDULE O. ENVIRONMENTAL MANAGEMENT 1 Does your company have an Environmental Policy? If YES, attach a copy of your

policy

YES NO

2 Does your company have an Environmental Management Plan?

YES NO

3 Does your Environmental management system comply with any standards eg ISO 14001? If yes, nominate the standard…………………..

YES NO

4 Has any legal or legislative compliance action been brought against your company in relation to environmental matters? If YES please provide details

YES NO




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SCHEDULE P. SECURITY MANAGEMENT The Port of Townsville has a single, Port wide security plan pursuant to Section 42 of the Maritime Transport & Offshore Facilities Security Act 2003. Tenderers can become a signatory to this plan. Alternatively, tenders can have their own plan but will be required to agree to comply with the relevant sections of the Port Security Plan. 1 Does your company have an approved Security Plan as a Port Services Provider?

If YES, attach a copy of your plan.

YES NO

2 Has your Security Plan been certified to comply with the requirements of MTOSFA for Townsville? If YES, attach evidence of certification.

YES NO

3 Will you be operating under your own Security Plan or under the Port of Townsville umbrella plan?

Own POTL

4 Has any legal or legislative compliance action been brought against your company in relation to security matters? If YES please provide details.

YES NO




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SCHEDULE Q. TENDER EXCLUSIONS The Tenderer is to outline any exclusions to the intent of the tender.

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SECTION C

Principal's Standard Towage Licence and Standard Tug

Berth Licence


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SECTION D

Specification


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Contents of Tender Specification 1 Introduction 50 1.1 Period for the Supply of Services 50 1.2 Port Operations 50 1.3 Future Port Operations 51

2 Towage Services 52 2.1 Service Requirements 52 2.2 Tug Specification 52 2.3 Crew Capability and Training 52 2.4 Emergency Response and Backup Service 53 2.5 Fire Fighting 53

3. Site Facilities 54 4. Additional Information 54


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1 INTRODUCTION The Principal seeks tenders from suitably qualified operators for towage services on an exclusive basis for the Port of Townsville.

The Principal is considering issuing an exclusive licence for the Port of Townsville for the provision of these services. Tenderers should note that the Principal will only consider issuing an exclusive licence if it is satisfied that this will result in significant demonstrable benefits to Port customers in terms of rates for service provision and taking into account the quality of services provided.

The licence, whether exclusive or non-exclusive, will be regulated through the Transport Infrastructure Act 1994 and will be subject to a Government approval processes.

The objectives of this Tender process are to ensure that charges for the towage services are as competitive as possible by national and international standards and that the Services provision is best practice in terms of availability, reliability, competence, flexibility and safety. Continuity of services and competitive pricing are considered to be essential criteria.

1.1 Period for the Supply of Services The period for the supply of the Services shall commence on 1 July 2010 and shall be for a period of five (5) years plus an extension of two (2) years subject always to the Terms and Conditions as contained in the towage licence.

1.2 Port Operations The Port of Townsville is located on the eastern seaboard of tropical north Queensland. Total throughput is approximately 10 million tonnes per annum, imports and exports. Main trades are:

• Import – Nickel ore (62%), oil and petroleum products (19%), cement (9%) and other cargo (10%).

• Export – Mineral concentrates (30%), sugar (29%), fertiliser (19%), molasses (6%), refined metal (5%) and other cargo (11%).

Subject to tide and weather conditions, maximum size of vessels that can enter the Port are LOA = 238m, Beam = 32.2m, Draft = 13.1m. Larger vessels may be permitted to enter at the discretion of the Regional Harbour Master.

The table below shows Port usage for the previous five years. A spreadsheet is also provided as part of the tender documentation showing shipping activity for the financial year 2007/2008. The Principal makes no guarantees as to the accuracy of this data or to its relevance for future shipping activity at the Port.

IMPORTS

FINANCIAL YEAR ENDING 2003 2004 2005 2006 2007 General 111,350 117,926 104,486 87,622 94,953Motor Vehicles 14,976 15,630 17,487 16,477 18,587Oil 901,631 977,866 976,205 1,058,809 980,313Fertiliser 103,271 71,174 102,858 80,835 76,920Nickel Ore 3,713,421 3,870,413 3,582,632 3,313,150 3,274,338Zinc Concentrates 251,921 227,219 157,518 232,235 289,086Sulphur 93,488 90,150 95,471 112,433 105,155Cement 288,304 305,998 395,294 469,159 476,946Sulphuric Acid 21,608 - 10,085 - -TOTAL (Mass Tonnes) 5,499,970 5,676,376 5,442,036 5,370,722 5,316,298

EXPORTS FINANCIAL YEAR ENDING 2003 2004 2005 2006 2007General 149,761 134,746 136,470 139,305 168,066Meat Products 52,836 55,361 49,284 27,539 15,668Mineral Concentrates 1,222,663 1,248,056 1,428,054 1,538,958 1,283,528Refined Metals 477,416 399,225 436,661 402,400 331,556High Analysis Fertiliser 833,901 788,226 805,660 837,605 799,486Sulphuric Acid 23,788 20,189 47,876 31,037 33,694


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Molasses 219,597 237,676 276,104 260,408 256,240Sugar 1,256,180 1,475,730 1,315,446 1,176,780 1,208,956Timber 0 127,113 50,613 139,315 129,971Cattle 82,591 8,404 1,094 6,378 14,015TOTAL (Mass Tonnes) 4,318,733 4,494,726 4,547,262 4,559,723 4,241,179

TOTAL 2003 2004 2005 2006 2007 9,818,703 10,171,102 9,989,298 9,930,444 9,557,477

SHIPPING Vessels over 200 Tonnes 2003 2004 2005 2006 2007 Cargo Vessels 705 655 614 625 625

Gross Tonnage 12,035,164 12,024,522 12,080,532 12,575,062 12,468,893Passenger Vessels 4 4 7 3 7

Gross Tonnage 93,029 92,189 131,339 79,141 182,701Naval Vessels 34 25 38 35 35

Gross Tonnage - - - - -Bunkers 47 47 45 28 6

Gross Tonnage 15,463 15,463 14,805 10,791 55,896Other Vessels 13 12 18 13 46

Gross Tonnage 4,636 15,861 34,552 24,226 27,146Total Vessels 803 743 722 704 719

Total Gross Tonnage 12,148,292 12,148,035 12,261,228 12,689,220 12,734,636

1.3 Future Port Operations The Principal has undertaken a Master Planning process to assist in understanding future Port requirements in terms of trade throughput, likely future ship sizes and the berth and channel infrastructure required to support the trade growth.

The Master Plan indicated a wide range of potential growth scenarios over the next 25 years. The high growth scenario has throughput increasing from the current 10 million tonnes per annum to 30 million tonnes. The low growth scenario sees trade increase to 13 million tonnes.

A potential major growth area is bulk import/export of ore and minerals. However there is also potential for growth in all other trade areas.

For all growth scenarios, only a modest increase in vessel numbers was predicted based upon the assumption that the global trend in increasing vessel sizes will continue to filter to the Port of Townsville. The high growth scenario predicted an increase from approximately 700 ship visits per year to 1100 ship visits.

In response to the growth projections, the Principal has embarked upon a program of works to revitalise the inner harbour facilities and expand the outer harbour. These works may include:

• upgrading Berth 8 as a bulk export facility to accommodate panamax vessels;

• demolition of Berths 6 and 7;

• upgrading of Berth 10 as a general cargo and Defence facility to accommodate panamax vessels;

• upgrading of Berth 4 as a general cargo facility to accommodate panamax vessels;

• construction of additional berths in the outer harbour

As an indication, during the term of this licence, these works and associated trade growth have the potential to affect the Services in the following ways:

• less restriction on the size of tugs operating in the inner harbour;

• increased access of vessels to inner harbour berths;

• increase in the size of vessels accessing the inner harbour;

• increased number of vessels operating in exposed waters in the outer harbour;

• temporary and permanent relocation of tug berth facilities.


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The Tenderer should consider the effects that changing Port activity may have on provision of the Services.

2 TOWAGE SERVICES Under the current towage arrangements, the existing towage operator provides towage services in the Port of Townsville using two tugs. The successful Tenderer will be required to have two tugs permanently based in Townsville.

The Towage Licence will include the right to provide tug services for shipping within the harbour including all services normally provided by tugs for berthing, unberthing and moving of ships but will not include exclusive rights in relation to the towage of barges and small craft.

2.1 Service Requirements In addition to the requirements as contained in the towage licence, two tugs shall be permanently stationed in Townsville, available 24 hours per day on all days of the year in good order and repair with the capacity to provide full services within four (4) hours of receiving notice from the Regional Harbour Master, Duty Pilot, Pilot or Shippers.

2.2 Tug Specification The tug particulars for which there is a minimum or range requirement are specified below. Primary and backup tugs are to comply with these specification requirements.

Gross Tonnes 300 -450 Upper limit can be exceeded noting the maximum

design tug displacement for the tug berth is 750 tonnes.

Bollard Pull (@85% MCR) Over Stern

60 T Winch not required for stern towage lines.

Bollard Pull (@85% MCR) Over Bow

60 T

Speed 12 kts

Standard Operating Draft 4.8 – 5.5 m Suitable to access all Port operational areas Length Overall Up to 32.0 m Length limit to allow the tug to operate between

Berths 7 and 8 when there are ships in each berth Type of tug (propulsion method) ASD

Fire-fighting class as per AS3846-2005 table B1

A Alternate standards are acceptable as long as Class A is maintained. At all times must be one tug available in port which complies.

Volume/Type Foam 15

2.3 Crew Capability and Training The Masters and engineers must be appropriately qualified to operate the ship within the Great Barrier Reef Region.

The Tender should include details of an ongoing program of crew training in normal operational and emergency response procedures for the crews operating the tugs. Emergency response training should include involvement in multi agency response scenarios. There are no specified prior local knowledge requirements for tug skippers and crew to comply with prior to operating at the Port of Townsville. However, tenderers should articulate how their Safety Management System (or training processes) will ensure and demonstrate to the satisfaction of the Regional Harbour Master that personnel are appropriately qualified and trained to carry out their duties.


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2.4 Emergency Response and Backup Service Tugs will be required to provide any special assistance to ships within Port limits, consistent with their capabilities. Responsibility for declaring an emergency situation and deploying a tug to assist a marine casualty within the extent of Port limits rests with the Regional Harbour Master - Townsville.

Tenderers should include in their submissions how they propose to provide emergency response services to ships in need of assistance in all waters within and to the seaward extent of Port limits in situations such as, but not limited to, machinery breakdown, grounding, fire on board or other maritime emergency.

The submission should include proposed arrangements for coverage with a replacement or back-up when a tug is deployed on emergency response tasks or otherwise unavailable for Port of Townsville operations and the proposed charges for these emergency response services.

Note that it is a requirement of the Principal that back-up towage services be available at the Port within 24 hours and that the capacity of those services meet or exceed the minimum requirement outlined in Section 2.2 of this document.

Tenderers are requested to state how substitute tugs will be made available in the event of a breakdown to ensure that two (2) tugs are available at the Port of Townsville to perform towage operations.

The substitute tugs will be required to meet circumstances such as extended mechanical breakdown of a permanent tug and/or a tug being unavailable due to survey requirements or planned maintenance.

The Principal is not responsible for waters outside Port boundaries and the Queensland Government has not specified any requirement for a salvage capable tug to be positioned in Townsville for this purpose.

2.5 Fire Fighting One tug must be available in the Port at all times with fire fighting capability with equipment in good order and condition in accordance with AS 3846-2005 (or equivalent standard), to comply with the minimum requirements for a “Class A” fire fighting support ship. For the purpose of determining compliance with the standard, the maximum sized tanker that can be accommodated in Berth 1 (bulk liquids berth) has a displacement of 90,000 tonnes.

Without limiting this obligation in any way, the Tenderer is to:

• Provide fire fighting foam. The minimum quantity of foam concentrate to be carried shall be determined by:

Fire fighting class of vessel.

Number of fire pumps.

Power of pump.

Maximum flow of pump.

Number of fire monitors.

Foam capacity and type. •

• Ensure the fire fighting tug is available for fighting fires in the Port, land based fires adjacent to Port and fires on vessels in the vicinity of the Port.

• Take directions from the Regional Harbour Master or a Command Officer duly nominated by the Fire Authority in accordance with fire fighting/disaster procedures developed/as amended from time to time by the Principal and/or the Fire Authority and ensure that the Master of the Tug shall respond to the reasonable directions of the Regional Harbour Master or Command Officer, provided that, shall not be obliged to obey any direction that, in his opinion, would seriously threaten the safety of the Tug and crew.

• Keep informed on the Port’s current Emergency Response Plans and fire fighting and disaster procedures, copies of which will be supplied to the successful Tenderer by the Principal from time to time.

• Train and keep trained its tug crews in the fire fighting procedures in accordance with the Principal’s reasonable requirements and shall make the fire fighting equipped tugs and crew(s) available for exercises on a reasonable number of occasions annually during the term of the Agreement.


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• Maintain a record of when fire fighting exercises with the tug are conducted and the names of crew involved in the exercise.

• Comply with the reasonable requirements of the Insurance Council of Australia, and any reasonable requirements of the Fire Authority, and any statute, regulation or other notice issued by any similar authority and without limiting the foregoing in particular with all fire emergency requirements.

3. SITE FACILITIES The following table outlines tug berth facilities and ancillary services that are available at the Port of Townsville:

Facilities Berth Facilities Two tugs are berthed at the northern end of Berth 8. As built documentation for

the tug berths is included in the Tender Documents. Berthing facilities may be required to relocate within the proposed period of the licence for Port development purposes.

Power Three phase power is available (metered) at the current prescribed cost. Portable Water Fresh water is available (metered) at the current prescribed costs. Waste Removal Waste removal is at the Tenderer's cost and the Tenderer is to provide its own

waste reception facilities. Vehicle Parking The towage operators’ crew and/or contractors’ vehicles can be parked on the

Suter Pier car park but may be required to be relocated for the Principals purposes.

Operational Tug Berth Due to operational requirements the Principal may require the tugs to berth at an alternative temporary berth to be designated by the Principal.

Berthage Fees A tug berth rental or fee will apply. Tenderers are to nominate a rental or fee. The Principal has other facilities on site which may be available and suitable for the operational requirements of the licensee (e.g. administration offices, workshop, storage, crib rooms). If these facilities are required, Tenderers should enquire further of the Principal.

4. ADDITIONAL INFORMATION The following additional information is attached which may assist Tenderers in preparing their submissions:

• P1562 - tug berth design loads.pdf - Drawing showing tug berth layout with design notes. Note that this drawing is not representative of the current harbour layout.

• Directory_Mapv3.pdf - The most recent port directory map.

• 20090225 tug movements.xls - Spreadsheet showing shipping movements for the 2008 calendar year and the number of tugs that were applied to those movements. POTL makes no guarantees that this information is correct, complete or relevant to future years. Tenderers rely upon the information at their own risk.