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The Hague Scheveningen Cruise Port – Cruise Program and Tariff

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					 Chapter

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The Hague / Scheveningen Cruise
Port – Cruise Program andTariff
Analysis

Prepared for Zublin Grenada Ltd., AM Development & Vestia



Draft Update Report Submission
August 27, 2008



Prepared by:
 Chapter

       1
Cruise Operations and Programmatic Layouts
1.1    Background and study objectives

       As part of the continuing development of the cruise facilities program for The Hague /
       Scheveningen, B&A was tasked to conduct a physical facilities needs assessment based on the
       passenger and vessel projections established in the Market Study conducted earlier this year.
       This report serves as an Update to the 2007 report. This report further develops a
       set of programmatic modules that tie design vessel operations to facility needs. All timing
       (seasonality, number of hours required at the berth, pattern of passenger embarkation /
       disembarkation) and operational aspects of cruise homeport and port-of-call activities are
       fully explored. From this analysis, the following items will be estimated:

           Number of the berths and terminal facilities required;

           Berth utilization (by day);

           Average and maximum passenger throughput; and,

           Ground transportation and parking demand (based on volumes, cruise lines and type of
           cruise).

 1.2   Cruise Passenger and Vessel Throughput

       To create a baseline for determining the physical infrastructure requirements of the facility
       we used the maximum passenger and vessel projections from each of the three approaches
       developed under the Market Study. Furthermore, we explored the anticipated cruise
       operational patterns for the new facility based on the market study and cruise line feedback
       to determine the variable percentage of those vessels homeporting or conducting port-of-call
       operations from the new facility. Figure 1 provides the overview of maximum passenger
       throughput by year for the new facility from 2010 through 2026. To further amplify the actual
       cruise vessel and passenger throughput we have made a determination that the facility will handle
       approximately 25% homeport and 75% port-of-call traffic over the period.

       This allows us to further delineate not only the types of facilities required to accommodate
       the two types of traffic, but more importantly the volumes of each over time. This may be
       somewhat different and change over the course of the study period (2010-2026). However,
       we believe that the recommended facilities in place will be able to accommodate future
       traffic, albeit managed based on vacation patterns and desired itinerary pattern types such as
       8-day. Currently, Amsterdam is at approximately 50% for homeport and port-of-call, while
       Rotterdam is almost exclusively port-of-call. Based on our analysis of the cruise patterns and
       use of other complementary homeports, such as Hamburg, Kiel, Copenhagen, Harwich,

              The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                          Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
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Southampton and Dover, we determined that The Hague will likely serve slightly more as a
port-of-call due to the other influencing factors.

Figure 1: Maximum Passenger Throughput, 2010 - 2026
Source: B&A, 2007




From these annual maximum passenger throughputs we determined the monthly capacity
and daily loads for both cruise passenger and vessels. Based on our analysis of the seasonality
in the region we determined that the season runs mainly from late April through early
November with the peak season from mid-May through mid-September. Over the course of
time, we anticipate spreading out somewhat into the shoulder season. See Figure 2.

Figure 2: Northern Europe Cruise Seasonality, 2000 - 2007
Source: B&A, 2008




      The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                  Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                              Page 3
Using the maximum passenger and vessel traffic from the assembled projections the following
monthly throughputs were determined for each high result. The projected traffic throughput
for the facility is found below in Table 1.

Table 1: Traffic Throughput Percentage by Month
Source: B&A, 2008
 MONTH                   PERCENTAGE OF TRAFFIC THROUGHPUT BY SEASON (100%)
 MAY                                            2.00%
 JUNE                                          10.00%
 JULY                                          35.00%
 AUGUST                                        30.00%
 SEPTEMBER                                     15.00%
 OCTOBER                                        5.00%
 NOVEMBER                                       1.00%
 DECEMBER                                       2.00%


As illustrated we believe the patterns for cruise traffic to the region will remain relatively
consistent over the study period. We have provided slightly more volume to the shoulder
areas, particularly June and September in the belief that the Northern European region will
continue to prosper by providing increased per diems to the cruise lines over those found in
competing markets such as Alaska, Bermuda, Caribbean and Atlantic Canada. This monthly
traffic analysis provides the baseline for the daily traffic template. Figures 3 through 5 provide
the monthly maximum traffic throughputs for The Hague based on the projection models.

Figure 3: Approach A Maximum Passenger Monthly Throughput, 2010 - 2026
Source: B&A, 2008




July and August are the peak months for cruise passenger traffic with between 39,000 to
46,000 passengers per month by 2026 in Approach A.


       The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                   Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
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Approach B shows slightly more overall passenger volume with ranges from 54,000 to 63,000
passengers for the peak months in 2026 as illustrated in Figure 4.

Figure 4: Approach B Maximum Passenger Monthly Throughput, 2010 - 2026
Source: B&A, 2008




Projection Approach C is developed through various scenarios based on cruise line feedback
and market indicators. This is the most aggressive approach overall and provides for the
maximum passenger throughput for the months of July and August with between 94,000 to
109,000 passengers respectively. See Figure 5.

Figure 5: Approach C Maximum Passenger Monthly Throughput, 2010 - 2026
Source: B&A, 2008




      The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                  Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                              Page 5
We have also calculated the maximum vessel throughput for each of the approaches as
provided. They range from a maximum of 14 vessels on the peak month of July under
Approach A; 20 under Approach B; and 34 under Approach C. See Figure 6 for Approach C
maximum vessel throughput. The main reason for the slight decrease in monthly vessel
throughput is the passenger capacity of the vessel should be expanded accordingly.

Figure 6: Approach C Maximum Vessel Monthly Throughput, 2010 - 2026
Source: B&A, 2008




The maximum monthly numbers for The Hague / Scheveningen project appear to be in line
with the feedback received from cruise lines through the course of our past meetings.
However, based on our experience we believe that the opportunity is available for The
Hague to provide the cruise industry and cruise consumer with numerous advantages over
competing destinations in the region which may further expand the overall throughput to the
port. To some degree, with any approach taken there will be a requirement to effectively
manage the assets, primarily berths, to make them as efficient as possible through a good
berth allocation policy. It will be important to be able to spread out the weekly traffic with a
solid combination of homeport (primarily weekend) and port-of-call (primarily early and late
week) based on itinerary patterns in the region. Thus, we have defined the daily throughput
levels based on the following assumptions:

    The Hague / Scheveningen will serve primarily as a homeport for limited European and
    North American cruise lines;

    The majority of North American and UK cruise lines will continue to homeport from the
    ports of Dover, Southampton and Harwich;

    The Hague / Scheveningen will serve as the primary port-of-call for the Netherlands due
    to its geographic position relevant to passing itineraries; and,




      The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                  Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                              Page 6
    Amsterdam and Rotterdam will continue to accept cruise operations over the period,
    albeit more limited due to the increased competition from The Hague / Scheveningen.

    Weekends, particularly Saturday and Sunday are the primary homeport operations days
    for the new facility and existing sailings in the region on 8-day patterns;

    There are limited homeport operations for non-European lines that will occur on
    weekdays due to longer itinerary patterns of more than 8-days;

    Serving as a port-of-call, The Hague / Scheveningen will be used as a strategic port-of-call
    by vessels sailing from and to UK ports primarily with most of the homeport activity
    occurring on weekend days as well; and,

    Port-of-call operations will likely occur and overlap with homeport operations to some
    degree, particularly on Monday, Tuesday and Thursday.

Table 2 below illustrates our assumptions for daily passenger traffic over the study period.
As shown, the majority of traffic will fall on the weekend days with some 43% of the weekly
traffic on the two days in terms of both passenger and cruise vessel volumes. Based on our
analysis of the present itineraries assembled from UK ports we envision The Hague /
Scheveningen being one of the first ports on the itinerary. However, we also note that many
cruise lines prefer a sea day at the beginning of a longer sailing to assist in adjusting passengers
and provide for increased onboard spending opportunities. The Hague / Scheveningen will be
challenged to promote itself on each itinerary to capture the full passenger economic benefit,
particularly if it is positioned as a first port-of-call from a UK homeport.

Table 2: Traffic Throughput Percentage by Day
Source: B&A, 2008

 DAY                        PERCENTAGE OF TRAFFIC THROUGHPUT BY DAY (100%)
 MONDAY                                         18.00%
 TUESDAY                                        14.00%
 WEDNESDAY                                       8.00%
 THURSDAY                                       10.00%
 FRIDAY                                          7.00%
 SATURDAY                                       22.00%
 SUNDAY                                         21.00%


Based on the above table, please see Figures 7 through 9 illustrating the daily cruise vessel
volumes. In 2026 the number of vessels (berths required) on a daily basis peak Saturday
ranges from 2 (Approach A); to 3 berths under Approach B; and 5 berths (Approach C).




       The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                   Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                               Page 7
Figure 7: Approach A Daily Cruise Vessel Traffic Throughput, 2010 - 2026
Source: B&A, 2008




Figure 8: Approach B Daily Cruise Vessel Traffic Throughput, 2010 - 2026
Source: B&A, 2008




      The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                  Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                              Page 8
      Figure 9: Approach C Daily Cruise Vessel Traffic Throughput, 2010 - 2026
      Source: B&A, 2008




      Based on the projection and assumptions established above we provide the following
      recommendations in terms of berth requirements to support long-term cruise operations:

          In the short-term two berths are required to support cruise operations;

          Each berth must accommodate multiple operations (homeport and port-of-call);

          Mid- to long-term a third berth is required to meet demand (beyond 2018); and,

          A third berth should be primarily a port-of-call berth with the ability to accommodate
          small vessel (less than 1,500-passengers) for homeport operations on an ad-hoc basis.

      In the short-term we envision the average throughput in the peak season of 1 port-of-call
      vessel per day with occasional homeport operations. The average passenger count would be
      from 2,000 to 2,800 per vessel based on current and future deployments of vessels in the
      region.

1.3   Cruise Vessel Characteristics

      As an extension of our work in the Market Study, B&A has verified the characteristics of the
      anticipated cruise vessel that will be utilizing the new facilities at The Hague / Scheveningen
      based upon our overview of the world cruise order book and new build trends, regional
      vessel placement and long-term deployment anticipated for the region.

      Cruise vessel characteristics are important for sizing of berthing facilities as well as the upland
      requirements (terminal, retail, ground transportation, parking and others). Based on our
      evaluation for cruise the following three vessel types appear to be the largest potential
      options for The Hague / Scheveningen over the mid- to long-term. They include:

             The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                         Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                     Page 9
    Post Panamax (sample A): 112,000 GT; 292 m. LOA; 3,500 pax. ;

    Post Panamax (sample b): 109,000 GT; 289.5 m. LOA; 3,600 pax.;

    Super Post Panamax (sample c): 160,000 GT; 311 m. LOA; 3,634 pax.

The evolution of the cruise vessel has been one of the principal mechanisms propelling
industry growth. It has also required that cruise destinations—both the maritime port
facilities handling homeport and port-of-call operations as well as the destinations
themselves—evolve to meet the challenges presented by these vessels if they wish to
participate in the large-scale segment of the cruise industry. Cruise vessels have advanced
through a number of developmental phases; from the small, 500-passenger vessels of the
1970s to the rise of the Post-panamax, 3,600-passenger vessels of the late 1990s to the
sophisticated ultra-vessels of today (see Table 3).

Table 3: Evolution of the Modern Cruise Vessel
Source: B&A, 2008
    Period         Length (m.)       Draft (m.)      PAX           Characteristics of the Period

      1960              155              11           500      Vessels acquired & refurbished.
                                                               Standard business model used with profitable
      1970              215             9.75          650
                                                               results until the fuel crisis.
                                                               Change in business model; experimentation
      1980              245               9          1,500
                                                               with larger vessels and operating itineraries.
                                                               Larger vessels becoming the destination.
      1990              275               8          2,600
                                                               Shallower drafts.

                                                               Mega-vessels that are floating cities. Focus on
      1997              294               8          3,600     maximizing passenger capacity. One-region
                                                               vessels not capable of Panama Canal Transit.

                                                               Larger vessel volume concentrating on creating
                                                               efficiencies with vessel design, outside cabin
      2000              305               9          3,000
                                                               development, vessel services and flexible
                                                               deployment.

                                                               Freedom class, 160,000-GT. Allows for
                                                               increased onboard revenue areas, largest
      2006             300+               9          4,000
                                                               vessel in the world status and large economies’
                                                               of scale.


                                                               Product and service led design; new innovative
                                                               marine hull design to support more above
 Next Generation     335 – 425          9 – 11       5,000+    water structure. Separate apartment towers,
                                                               entertainment zones and amenities. Limited
                                                               port deployment options.




Over the past five years, the newest and most popular generation of vessels continues to
have greater volumes and lengths to accommodate the area needed for large scale outside
cabin development. These vessels range in length from 295 – 365 meters and have lower
berth passenger complements of between 1,950 and 3,600. Cruise lines have focused on
improved operational cost savings by ordering standardized hulls for multiple brands. By
example, Carnival Corporation uses its Spirit-class vessel hull for Carnival, Holland America,
P&O and Costa vessels.

       The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                   Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                              Page 10
Grand-, Destiny-, Voyager-class vessel orders, however, are not expected to disappear; several
orders for each of these type vessels are still outstanding and it is likely that more will
continue to be issued over the next decade. Costa was the first European operator to order
a Concordia-class vessel based on the Spirit-class hull design. Carnival Corporation’s Queen
Mary 2, Pinnacle project and RCCL’s newest Genesis Project vessel suggests that the quest
for larger cruise vessels is not over (see Table 4). As illustrated above Star/NCL has also
placed a firm order for two 150,000-GT vessels carrying more than 5,000-passengers each in
2,100-cabins.

Table 4: Sample of Large Cruise Vessel Types
Source: B&A, 2007

                                                                                       Tomorrow’s
                        First Post -          Today’s            Tomorrow’s
         Type                                                                         Largest Vessel
                         Panamax           Post-Panamax         Largest Vessel 1
                                                                                            2
 Name                   Grand Princess       Freedom Class         Genesis Project           F3
 Operator              Princess Cruises          RCI                    RCI               Star/NCL
 Group                     Carnival              RCCL                  RCCL                 Star
 Built                      1998                 2006                  2009               2009/10
 Pax (LBs)                  2,600                3,634                 5,400                4,200
 Pax (Max)                  3,000                4,200                 6,400                5,200
 GT                        108,000              160,000               220,000             150,000 +
 LOA (m)                     290                  339                   360                 325
 Beam (m)                    36                   46                     47                  40
 Draft (m)                   8.2                  8.5                   9.1                  8.5
 Air Draft (m)               61                   64                     65                 61.9



For The Hague / Scheveningen, the net result of the cruise vessel development trends is that
cruise facilities and upland tourism support areas will need to be able to accommodate these
large cruise vessels for the destination to be competitive in the regional marketplace and be
able to fully accommodate the future generation cruise vessels’ service requirements. This
will include the ability to offer industry operators facilities and venues capable of
accommodating a passenger complement upwards of 3,000 – 6,000 persons per vessel.

Based on our cruise line interviews and understanding of the cruise line market these next
generation vessels (more than 320 to 425-m.) will be for the most part purpose-built and
intended for specific deployments. They become much more of a destination than even
today’s vessels. Thus, while they are built and deployed for a specific cruise deployment it
does not necessarily imply that The Hague / Scheveningen will have a homeport or port-of-
call only opportunity for this vessel type or they will sail within the Northern European
region. It is more likely these will stay in itinerary patterns such as the Caribbean and
Mediterranean where they have access to a variety of ports that can support cruise activities
within a short distance in the region in the mid-term. However, in the long-term we would
assume these larger vessels will move into the region.




          The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                      Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                 Page 11
1.4   Design Vessel Requirements

      Based on cruise line interviews and projection scenarios we have developed a design vessel
      requirement for homeport and port-of-call operations. Based on the design vessel
      consideration can be given to each of the primary infrastructure types (criteria) required to
      support design vessel operations with specific emphasis on the primary infrastructure of
      entrance channels, turning basins, berths, passenger terminal, GTAs (Ground Transportation
      Areas) and other elements used to service cruise vessels in port. Competing ports, such as
      Amsterdam, Rotterdam and UK homeports in the region presently have demand to serve
      both Panamax and Post-panamax vessels.

      Future Cruise Vessel Characteristics

      In considering the types of vessels likely to be operating in the Northern European region
      over the short- (today through 4-years), mid- (5 to 9-years) and long-term (over 10-years),
      several important trends are worthwhile of consideration:

          The average length and size of cruise vessels on an international basis continues to
          increase. Based on our market assessment and specifically cruise operator 2006 input
          cruise vessels with lengths of between 250m and 300m will likely become the operational
          norm and be deployed in most major cruise regions—inclusive of the Northern
          European region—today and over the next decade. Some larger vessels, such as the
          Voyager of the Seas will also call in the region.

          New SOLAS rules in 2010 will inevitably hasten the withdrawal from service a
          considerable number of vessels that were built before 1969. This series of SOLAS rules
          looks to eliminate all wood from cruise vessels. There are very few vessels left in the
          conventional worldwide fleets, thus there will be no significant impact on the Northern
          European region, as most, if not all vessels from the North American and mainstream
          European fleets currently calling meet and exceed these standards.

          32 of the 34 large vessels scheduled for introduction over the next five years have an
          average capacity of 2,893 passengers. Thirteen vessels have capacity of over 3,000-
          passengers. Project Genesis and the NCL vessels, scheduled for delivery in 2009/10,
          each has an estimated capacity of more than 5,000-passengers.

          Through our stakeholder outreach process from 2006, several lines—both regional and
          international—indicated their intention to place larger vessels in the Northern European
          region in the mid to long-term. These ships are likely to replace smaller vessels in fleets
          and would not necessarily be the largest ships of the worldwide fleet. A Freedom-class
          ship has already sailed in the Mediterranean region and called in the Baltic in 2008.
          However, this ship must bypass Amsterdam and Rotterdam due to a number of issues
          including the length of itinerary pattern, transit time via canal and river and lack of
          physical capacity to be supported at either port or entrance channel. It is likely, based
          upon history in the region, that a Voyager-class, equal or larger vessel may be deployed to
          the region in the mid- to long-term on a regular basis.

          Large cruise vessels must bypass Amsterdam and Rotterdam due to a number of issues
          including the length of itinerary pattern, transit time via canal and river and lack of
          physical capacity to be supported at either port or entrance channel. It is likely, based

            The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
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    upon history in the region, that a Voyager- and/ or Freedom-class may be deployed to the
    region in the mid- to long-term on a regular basis.

Please see the Independence of the Seas itinerary samples below for further detail on its
deployment from Southampton in 2008. The 2,500-passenger Jewel of the Seas will be
deployed to Scandinavia & Russia sailings. This vessel, like others sailing from UK homeports
has two days at sea prior to its first call. This is a balance between onboard revenue and
speed & distance issues. Should a destination be available that could deliver a high quality
tourism product within an adequate sail from the homeport of Harwich it may well fit nicely
into the overall deployment.




Suggested Design Vessels for The Hague / Scheveningen

The previous discussion, cruise line stakeholder outreach and data provided throughout this
report and the previous Market Study report had as one of its purposes the discovery of
what design vessel(s) The Hague / Scheveningen should plan demand and cruise operations
planning scenarios on for the future. Selection of a model design vessel(s) dictates a
programmatic response for The Hague / Scheveningen, one that will allow the destination to
meet industry needs, maintain competitiveness in the region into the future, and plan
homeport and port-of-call operations as deemed viable and within best practices policies in
order to be a marquee cruise tourism destination. As a result of the previous analysis, the
following design vessel particulars were established. Based on additional information
gathered we believe the port may be well served to offer facilities to accommodate
the largest vessel that may sail in the region over the long-term.

Table 5: Suggested Design Vessels for The Hague / Scheveningen
Source: B&A, 2008

                            Design Vessel 1                Design Vessel 2                  Design Vessel 3
       Type
                             (Panamax)                     (post-Panamax)                (Super post-Panamax)
Passengers                      2,000 to 2,600               3,000 to 4,000                     4,200 to 5,200+
Crew                                 850                         1,200                               1,200+
GT                              Up to 100,000              100,000 to 140,000                + 140,000 to 200,000
LOA (m)                           275 to 300                   300 to 365                          350 to 400
Beam (m)                           Up to 36                     Over 36                             Over 40
Draft (m)                          Up to 8.5                   8.5 to 10*                          10 to 13.5
Air Draft (m)                    Less than 60                   Up to 64                               64+
Note: Suggested design vessels represent primary ranges of the majority of vessels within these categories. *Queen
Mary 2 has a vessel draft of 10m.




        The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                    Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
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These design vessels incorporate the features of the various classes that are becoming
industry standards, including the Destiny, Grand, and Voyager. The Freedom, Genesis and F3
classes as Super post-Panamax vessels will likely not have the capacity to launch operations in
the region in the short-to mid-term. However, planning for these design vessels, along with
smaller ships currently sailing within the region and those on the new-build order list gives
The Hague / Scheveningen the flexibility it needs over the long-term to absorb changes in the
cruise industry as the planning process unfolds.

Based on these design vessel characteristics a series of marine requirements for future
master planning cruise infrastructure development are provided:

    Berth;

                Minimum – 335-meters in length, preferably 390-meters; and,

                13.5-meters depth.

A minimum berth face of 275m with supporting bow and stern line positions beyond this
length.1 Dependent upon a marginal wharf, pier or slip configuration, the maximum length of
the berth face needed to support the post-Panamax design vessel could range between 275m
and 390m. Additional maneuvering and vessel safety margins may need to be added given a
specific site. Structural capability of accommodating a post-Panamax vessel of greater than
100,000-GT and 50,000-DT.

    Apron;

                18 – 20 -meters wide (wharf to accommodate homeport operations; and,

                More than 25 - 30-meters wide as a finger pier to accommodate simultaneous
                vessels (this is also dependent upon additional structures or transportation
                mechanisms incorporated into the design of the pier).

    Pier tie-downs;

                150 - 250 ton bollards to accommodate the storm bollard requirements of the
                large vessels (not all bollards need to be full strength (250-tons). These are
                mainly used for and aft to accommodate the bow and stern lines in the event of
                heavy winds or storm. 150-ton bollards alongside the vessel for additional tie-
                downs are incorporated thereafter.

                Fendering systems should provide for maximum flexibility to accommodate a
                variety of cruise vessels and other maritime assets that may use the berths in the
                off-season. Yokohama fenders or flat panels can be used as long as they are
                placed accordingly. Twenty-five knots of beam wind will generate a force of 200



    1
     Berth face in this usage refers to the area immediately adjacent to the vessel’s hull as well as all areas required for line
    handling and proper movement onto/off of the pier.

        The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
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             tonnes; should the wind increase to 60 knots, a force of 1,200 tonnes will be
             generated. Fendering systems need to be designed to withstand these forces.

             Ability to fully secure the vessel apron—using fencing, access control systems,
             and CCTV—while the vessel is in port and 24-hours prior to vessel arrival. The
             apron should not be used for supporting GTA functions.

For creation of facilities to support a super post-Panamax vessel, structural loads and
possibly berth length would exceed those presented above. A structural load of
80,000- to 100,000 DT would be required to accommodate the Super post-
Panamax cruise vessel (upwards of 175,000 GT).

Utilities;

             Water – provided for sale on the pier with at least two hookups. A ship can
             accept from 100 tonnes to more than 500 tonnes of water per day dependent
             on the vessel passenger capacity and water use. The average volume is
             approximately 10 – 30 tonnes per hour for the loading process. Cruise and
             ferry ships with passengers can essentially take on water in every port of call if it
             is available at a good rate and the water quality is good. Potable water, 2"
             camlock fitting plus international connection.

             Waste - The Port Operator must make sure that there are sufficient possibilities
             for the disposal of ship-generated wastes and that proper collection and disposal
             can take place in the designated port. Several types of shipboard waste can be
             generated and disposed of in each port of call. They can include types such as:

                 Solid Waste (contaminated and non-contaminated);
                 Recyclables (paper, plastics and other);
                 Liquid waste (black water, grey water, other); and
                 Toxic waste (chemicals, paint and other).

             Dumpsters, telephone, fresh water and (increasingly) gray water connections on
             the berth or via barge need to be provided. Fuel operations generally occur via
             barge brought alongside the cruise vessel. Specific connections associated with
             the Queen Mary 2 are provided below. While several of these are standard for
             the largest vessels in operation, a final facility design approach will need to fully
             explore specific needs of several vessel types.

                 HFO bunker connection, 200mm ND, 12 x 18mm holes on a 295mm PCD.

                 Gas oil bunker connection, 155mmND. 8 x 18mm holes on a 240mm PCD.

                 Dirty oil discharge, 100mm ND, 8 x 14mm holes on a 185mm PCD.

                 Lube oil filling, 80mmND, 8 x 14mm holes on a 165mm PCD.

   The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
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              Black and grey water discharge, 155mm ND, 8 x 18mm holes on a 240mm
              PCD.

              Dry waste of 25 cubic meters total after a 7 day cruise. No wet waste is
              discharged on the pier.

        Telecommunications – Generally performed via satellite systems. For homeport
        operations there must be a system incorporated to provide communications
        from the check-in area to the vessel.

        Power (Alternative Marine Power) – Long-term this will likely be a standard in
        most ports worldwide. However, there are still many incompatibilities with the
        systems and ships. Infrastructure space should be secured for the future
        placement of this system. It appears Europe is leaning toward quicker
        deployment of Amp than other locations. Thus, it is good to reserve
        the space and build in the systems to provide the system.

Navigation.

        Adequate maneuvering within the harbor area inclusive of entrance channel
        width of at least 1.5 times the vessels beam. In the case of The Hague /
        Scheveningen it is clear that the goal of the entrance channel clearance width
        should be to provide for total accommodations year-round without downtime.

        Turning Basins - 1.2 to 1.5 times (LOA) Length overall of the cruise vessel. This
        is also dependent upon the internal configuration of the harbor and adjacent
        maritime structures.

Gangways and shell doors

        Clearance times – based upon the vessel call type (homeport or port-of-call) this
        should be a swift operation to accommodate the requirements of the cruise
        passenger. Pre-clearance of the passenger and crew manifest is done
        approximately 24-hours prior to arrival. Upon arrival clearance will be done
        once all documentation is completed and passengers and crew met with as
        concerns to Immigration or Customs officials. Clearance time should take no
        more than 30-minutes to accomplish once the ship is berthed and officials have
        boarded.

        Gangway operations – A complete study during the design phase for the pier
        structure should be conducted to adequately consider the shell door area levels
        for all vessel types (starboard and port side to), wind and tidal allowances, and
        pier type (marginal vs. finger pier) which have separate width requirements. As
        a general rule it would be assumed port-of-call vessels could use manual gangway
        systems at deck 1 and move passengers directly onto the pier and adjacent
        Ground Transportation Area. Homeport operations may require mechanized
        gangway systems to support operations using a direct route into a terminal

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               facility. In any case a minimum of two gangways per vessel are
               required. An additional crew gangway should also be considered.

                    Gangway design should allow for a system that moves both horizontally and
                    vertically along the vessel apron to allow for the widest range of vessel
                    embarkation/disembarkation doors to be accommodated. Gangways
                    systems should take into account tidal fluctuations and adjust accordingly.

               Provisioning and baggage doors – it is important to also recognize the
               provisioning and baggage shell doors in the design of the pier facility and final
               height ranges to allow for ease of movement of baggage cages, pallets and other
               materials onto and off the vessel. Other shell door considerations may include
               the bunkering door, water and garbage removal areas.

   There is a potential for the deployment of larger vessels in the region over the long-term as
   provided for in the discussion above. First, any new port facility should take into
   consideration the ability to accommodate the next generation of cruise vessel that may sail in
   the region. We do not believe there are boundaries to this possibility as defined through
   past experience of the Voyager and Freedom-classes which have been deployed far a field from
   their originally intended cruising market of the Caribbean. Thus, to provide for either the
   flexibility to re-develop or engineer existing facilities put in place to accommodate these
   vessels or build to their standards today (based on cost considerations) then the destination
   will be well served to meet the needs of the cruise line industry long-term. These are not
   only inclusive of the marine infrastructure, but also the terminal, access and GTA’s affiliated
   with the cruise operations.

   By examples, designing individual GTA’s for two cruise vessels that could also serve a single
   5,000+-passenger vessel may provide for the required flexibility. From an operational
   perspective consideration needs to be given then long-term to the acceptance of more than
   one of these large vessels per day if the infrastructure cannot adequately accommodate the
   capacity overall. From a terminal design perspective, we recommend provided for a flexible
   terminal design with no fixed interior walls or stationary check-in or security stations to
   provide for the utmost in flexibility based on the size of a single or multiple vessel call.

Ground Transportation Areas and Parking

   Both homeport and port-of-call operations need to have large areas dedicated to GTA
   loading, off-loading and marshalling for tour buses, taxis, limos and private car operations.
   Tour buses, often the most demanding in terms of area required for operation should have at
   a minimum a drop-off / pick-up area capable of accommodating between 16 and 20 buses
   simultaneously for a 3,000-passenger vessel.

   For homeport operations, the GTA for buses needs to allow for luggage transfer to cages
   (inbound) and for loading back onto buses (outbound). Because the discharge of cruise
   passengers occurs within an abbreviated period, a bus marshalling area(s) supporting the
   primary GTA is typically needed to hold all buses required in the operation. Control of taxi
   operations via radio dispatch from a marshalling area is also preferred for vessel operations,
   especially in larger ports-of-call.



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   We recommend a GTA supporting a post-Panamax terminal of between 20 - 30 buses plus a
   separate drop-off and taxi area. It is likely that a 20 to 25 bus area could be effectively
   managed through ground staff, radio dispatch and support by a marshalling area to
   accommodate a post-Panamax vessel.

   Parking needs associated with cruise homeport operations can vary widely dependent upon
   the volume of cruise operations, the degree to which the cruise vessel serves a drive-cruise
   consumer market, and the duration(s) of cruise itineraries offered from the homeport
   (cruises of shorter durations generally have a higher need for parking areas). Ideally, parking
   areas should be within close proximity to the cruise terminal; as an alternative, satellite
   parking areas with shuttle bus services are a workable solution for a number of port facilities.
   Calculations for needed parking areas typically account for double private vehicle occupancy
   and are based on a percentage capacity per cruise vessel.

       Buses and vans – These are the primary transportation vehicles for the cruise passenger
       and thus the lead user of the GTA facilities. Placement, circulation and communication
       with the operators of these vehicles are key to a successful daily cruise operation. Based
       on port-of-call operations experience in the region we envision a GTA with the ability to
       accommodate between 40 to 50 motor coaches. This should not be a simultaneous park
       and move. Thus, based on a 15 to 30-minute maximum loading time we envision the
       need of between 16 to 20 coach parking stalls per 3,000-passenger cruise vessel at a 65%
       excursion rate of use. Additional parking areas for small vans (8 to 12 passengers)
       accommodating between 6 to 12 vans per vessel is also necessary. For homeport
       operations for a North American based vessel of 3,000-passengers we envision the need
       for upwards of 85% using coaches to move to/from airports and hotels to the cruise
       terminal. There is a requirement for between 50 to 60 coaches in at least three banks of
       movement. Thus, individual GTA’s adjacent to the cruise terminal facility of between 20
       to 25 spaces would be required.

       Taxis and cars – The port should be prepared to accommodate a higher percentage of
       taxis and private vehicles for homeport operations for a European based cruise vessel.
       Additionally, any parking facilities must take into consideration parking spaces for at least
       two vessel cycles due to overlap of operations. We envision the need for parking
       accommodations for two homeport vessels simultaneously long-term with an average
       use of 50% on a 2,600-passenger vessel. At 2.2 persons per vehicle this means a need for
       approximately 590-spaces per vessel. A parking facility of approximately 1,200-spaces
       should provide the requirements as needed. Taxi queuing space should be provided for
       a minimum of 20 taxis and additional off-site holding areas for overflow. Dispatch should
       be done via radio call up.

   As noted, parking will need for both anticipated drive-cruise business and for terminal staffing.
   The actual number of spaces, however, could vary substantially given a specific site and
   proximity to mass transit rail linkages. Consideration should be provided to accommodate at
   least 50% of the total passenger complement of the 3,000-passenger design vessel, or
   approximately 500 to 600 spaces per vessel berth and an additional 30 spaces for terminal
   staff and operations personnel.

Provisioning

   Provisioning of food and beverage items, fuel, water, spare parts and sundries to be used
   onboard is essential in a cruise homeport operation. In certain homeports, cruise lines will
          The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
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   send ahead a number of containers of provisions for use in the upcoming cruise homeport
   operation, thereby requiring some degree of storage area. Provisioning activities occur
   rapidly and are to be completed at least an hour prior to the vessel’s scheduled departure
   time.

   The provisioning process requires a large apron area (recommended at a minimum of 15-
   meters for port-of-call (finger pier) and 22 to 30-meters for homeport operations (marginal
   wharf) and ample access to the vessel’s shell doors. Areas for truck ingress and inspection
   need to be provided prior to the vehicle gaining access to the vessel berth. The inspection
   area should allow for explosives and narcotics detection of truck contents as well as
   examination of driver credentials. Consideration should be provided for a queue/holding
   area of between 3 and 5 trucks prior to the inspection area. It is preferred to have a
   separate point of ingress and egress that allows provisioning vehicles to be inspected and then
   circulate along the dock. This configuration improves the efficiency of the overall
   operation—especially in a pier configuration with two vessels at dock—and eliminates the
   need for trucks to turnaround while on the apron. The flow of all articles, including stores,
   cargos and baggage into and from the cruise vessels will need to be approved by Customs
   and be subject to Customs checks.

Access

   Multiple modes of access should be provided for a cruise homeport terminal. Consideration
   should be provided for at least two lanes of access to a terminal site, with bus and drop-off
   areas separated. A one-way circulator is often ideal for heavily used terminal facilities.
   Additional circulation lanes should also be provided if significant multiple uses are included in
   an overall cruise terminal program. For the private car and taxi zone, separation of these
   operations modes should be provided as space permits. For passenger pick-up, management
   of taxi flows should be undertaken through radio dispatch of taxis from a separate
   marshalling area. Signage and other way finding tools should be clear and lead pedestrians
   easily to/from the terminal into the surround area.

   Special consideration should be provided for linking to mass transit, light rail, ferry and other
   modes of transit to any new cruise terminal complex. These links provide for expanded
   mode selection and reduce terminal parking needs.

Security

   Cruise lines recognize that the terrorism threat against cruise vessels at sea or in port is very
   real and they are working hard to protect the safety of their passengers, crew and financial
   interests. One incident, no matter how small, could easily result in significant loss of life and
   financial ruin of the cruise line and industry overall. The location of this incident, especially if
   this event occurred at a port, would also suffer in terms of negative press and loss on
   industry participation and revenues. All cruise facilities will need to meet the minimum
   standards of the ISPS Code. The facility should also meet and/or exceed many of the
   standards considered best practices for maritime security facility planning. These include:

         Development of a security plan for the facility;

         Screening of all passengers and luggage for cruise and ferry traffic;

         Limit access to the apron to authorized, port/terminal ID holding individuals only;

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    Inspection of provisions and other materials;

    Private car drop-off areas and parking must be away from cruise vessels and ferries with
    a minimum distance of 35m established (both above ground and structured);

    Apron fencing of 3m to 4m in height with a top bar and razor wire (or similar structure
    to discourage fence scaling);

    Lighting of the apron and access areas (between 3 and 5 foot-candles);

    CCTV surveillance of the terminal, apron and waterside and upland approaches;

    Access control systems for all doors leading to the vessel apron;

    Provision of a small security operations center as part of each terminal; and

    Consideration of waterside security surveillance and patrolling prior to and during vessels
    being in port.

Final development of security features should be thoroughly consulted with the local Port
Authority, Security Bureau, and individual cruise lines.

Other basic operational functions include the following:

    Baggage operations – for cruise homeport operations there is a requirement for interior
    laydown or carousel space (approximately 1.4 square meters per passenger) to meet the
    baggage and customs requirements;

    Customs and Immigration operations – Working in conjunction with each of these
    services to meet the needs of the berth users and passengers will be critical for the
    success of a private port facility. They are the main drivers of both space
    accommodations and operations for all aspects of entry and exit from the facility via ferry
    and cruise vessel. Providing the correct working and office spaces is essential to make
    this a good relationship. In addition, communication is key to providing each service unit
    with the daily throughput in the facility so they can staff and prepare accordingly;

    Cruise operations – The involvement of line handlers, services such as bunkering, waste
    disposal and storing are the main elements of these operations. Coordination and
    communication directly with the operators, port agent and ship’s onboard staff must be
    defined in terms of pre, daily and post call operations;

    Information dissemination – Communications and marketing of the cruise facility is
    paramount in capturing the required passenger and vehicle throughput and needs of the
    mixed-use environs established at the site. Identifying the local and international markets
    is key, along with a strong operational knowledge of the maritime components of the
    operation; and,

    Other services to be identified – Maintenance, finance, and general daily administrative
    operations are required to successfully meet the objectives of the cruise facility.
    Coordination and support of the major units within the conceptual management
    approach must be maintained for success.

      The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
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1.6   Terminal and Upland Requirements

      In this section a discussion of the required and secondary elements for terminal and upland
      needs are examined. Table 7 illustrates the primary and secondary elements to be
      considered for the cruise facility.

      Table 6: Primary and Secondary Cruise Facilities Elements
      Source: B&A, 2008
                                  Primary                                           Secondary

            Channel depth                                           Mixed-use areas

            Berth length and depth alongside                        Other surrounding uses

            Apron and related supporting infrastructure             Mass transit access

            Terminal areas

            Ground transportation areas and Parking

            Security facilities

            Roadway access

            Customs & Immigration processing




  Cruise Pier Types

      Three primary types of berth configurations are observed worldwide: Linear berths, piers,
      and slips. While each of these types affords certain benefits as they relate to cruise ship
      operations, there are some distinctive advantages and limitations to each that are worthwhile
      to note.

      A linear berth configuration is one of the most common observed at destinations. Linear
      berths typically allow for cost effective and straightforward development of cruise or ferry
      facilities through creation of a bulkhead and adjacent terminal facility. Upland terminal
      development and GTA—whether a single berth/single terminal or multiple berth/single
      terminal approach—are easily organized (see Figure 11). Linear berths also provide some
      degree of flexibility in terms of accommodating vessels of varying sizes, especially as a facility
      grows and has a tendency to accommodate both the industries largest vessels and other
      medium ships. Vessel berthing is also typically uncomplicated. Limitations associated with
      linear berths typically include: Consumption of long stretches of waterfront and adjacent
      upland area, especially if multiple, contiguous are developed; in some applications, the need to
      extend marine navigation channels and turning basing along a stretch of waterfront to
      accommodate vessel operations; in multiple vessel applications, the need to create several
      smaller terminals supporting each berth or larger facilities supporting multiple berths which
      have the complication of stretch passenger access to the vessel; and, a “walling effect” of
      vessels and berths along the waterfront.

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Figure 10: Linear Berth Configuration
Source: B&A, 2008




Pier configurations—such as Tallinn’s new cruise ship port-of-call berth —allow for a larger
number of vessels to be placed in a smaller marine and upland footprint. In cruise
applications, a pier typically supports two vessels, one on each side (see Figure 12). The
compactness of the development can be very attractive in terms of marine access and upland
facilities. The functional and aesthetic relationship of the pier to surrounding areas also holds
distinct advantages over a multiple linear berthing area. Downsides of piers include:
Substantial initial development cost for new pier facilities and, if development is planned on
the deck of the pier, high cost associated with structural loading; constrained GTA and
transportation access facilities; and, difficulty in expansion beyond two berthing positions.

Figure 11: Finger Pier Configuration
Source: B&A, 2008




The slip configuration has many of the advantages of both the linear berth and pier
configuration. A slip allows for some degree of compactness of development and reduces
the walling effect of cruise vessel berthing under a linear scheme. Depending upon the
configuration of upland areas, a slip can allow for ease of implementation of terminal schemes
similar to linear berth and terminal configurations. On the negative side, a slip can have
significant costs associated with materials removal and disposal.




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   Figure 12: Slip Berth Configuration
   Source: B&A, 2008




   To accommodate these maneuvering needs, the navigation footprint can be large and
   expensive proposition. A slip will typically require creation of multiple terminals (one on
   each side). Finally, slips also can be disruptive to the surrounding upland fabric, requiring land
   uses and transportation facilities to be “oriented around” versus “extended onto” a pier. A
   slip needs to be developed wide enough to accommodate safe navigation of vessels into and
   out of occupied and/or vacant berthing positions.

   For The Hague / Scheveningen, each of these berthing configuration approaches, with the
   exception of the clip may prove advantageous for implementation of new facilities within and
   along the proposed harbor area and extended waterfront. The typical ease of
   implementation, both in terms of cost and time, of a combination linear/finger pier berthing
   approach may prove more desirable in facility development given berth demand and
   passenger scenarios presented in the Market Study Update.

Cruise Passenger Terminals

   The terminal is the nexus of sales, land and waterside transportation activities. In this role, it
   is essential for a terminal to be highly efficient, moving people quickly from the land-side
   transportation area to the ship. A terminal is also a reflection of the city’s or port’s image,
   affording an important opportunity to make a favorable impression on tourists arriving and
   departing from the destination. In the section that follows, we describe the needs of port-of-
   call and homeport cruise terminal facilities.
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For a port-of-call, the passenger terminal serves as a centralized location where shelter,
information, and restrooms are provided for passenger disembarkation/embarkation
activities. In ports-of-call where cruise traffic is frequent, programmed terminal spaces can be
small (some destinations use tent structures). Typically, reuse of an abandoned cargo shed(s)
serves well as an interim terminal building. Overall, ports-of-call do not necessarily require a
terminal unless there is a policy decision to provide services, such as tourism,
communications, transportation and other essential facilities. Retail or other mixed-use areas
may also be combined to incorporate a terminal or adjacent area for services. Otherwise,
direct access to a GTA for tour loading, taxis and other transportation services is desired.

Cruise terminal requirements are significantly greater for facilities accommodating cruise
homeport operations. Increased size associated with a cruise homeport terminal reflects the
following operational needs: Passenger ticketing and processing; passenger luggage off-
loading; requirements of inspection services (customs, immigration, agriculture, and others);
security screening points; waiting lounges; support office spaces and circulation. Several types
of terminals are observed in operation in North America and Europe.

Single Berth, Single Terminal. As aptly named, this configuration involves the use of a
single terminal structure supporting a single vessel berth (see Figure 14). All activities—
embarkation, disembarkation, ground transportation, federal inspection services, and
others—needed to support the vessel are handled within a single terminal complex. This
terminal type is the most commonly found cruise in cruise destinations, especially with those
cruise operations found in defined port districts and management areas. Its origins were
principally a result of outmoded cargo sheds (those typically accommodating break bulk
cargo) and adjacent berths being converted for use for cruise terminal purposes. The
strengths of the single berth-terminal include ease of facility operation, cruise line and port
familiarity, and generally low start-up capital costs. Cruise operators also often prefer this
type of configuration because it allows a line to “customize” the terminal for their particular
type of operation and brand. Weaknesses of this terminal type include potential operational
inefficiencies for destinations supporting more than one cruise terminal, future expansion
difficulties, and—if multiple terminals are needed—higher capital costs over the long term.

Figure 13: Single Berth, Single Terminal Configuration
Source: B&A, 2008




Multi Berth, Single Terminal. This terminal configuration is the favored type for facilities
with a substantial cruise or ferry vessel base. Often evolving from a single terminal complex,
the multi berth single terminal approach allows for two or three vessel to be accommodated
with a single ground transportation, security, and terminal embarkations area—a
configuration very similar to that of an airport concourse (see Figure 15). Passengers are

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distributed to the cruise ship berth via multiple gangways or shuttle system. Baggage and
disembarkation, while separately divided for each ship, often share a common customs and
immigration center. The multi berth, single terminal’s primary strength lies in the sharing of
these facilities, allowing for improved efficiency and reduced capital and operational costs
(when measured per ship). Without proper facilities design and management, shared facilities
can suffer operational breakdowns, an instance that often occurs in the ground
transportation area. Another drawback of this terminal configuration is that it requires a
larger upland area and generally contiguous berth locations.

Figure 14: Multi-Berth, Single Terminal Configuration
Source: B&A, 2008




Single / Multi Berth, Remote Terminal. Copenhagen has very diversified and spread out
maritime facilities, with many different locations being used to support the Port’s seasonal
cruise business. The main focus of marine operations is Langelinie, a 1,000-meter linear
wharf. This facility, as well as others used for cruise operations, has very little upland area to
support ground and terminal operations. As a result, Copenhagen has foregone the
development of a more traditional cruise terminal and has instead improvised to create a
“City Terminal” concept (also known as the Copenhagen Cruise Lounge) wherein hotel
ballrooms and/or small tents and remote facilities are utilized to provide a flexible and cost
effective way of accommodating cruise ticketing and other terminal functions. Once cruise
passengers have checked in, the “City Terminal” concept allows passengers to explore the
City, in essence, allowing the downtown to serve as the passenger waiting area and creating a
sense of Copenhagen as the cruise itinerary’s first port-of-call. See Figure 16.

Figure 15: Single, Multi-Berth, Remote Terminal Configuration
Source: B&A, 2008




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   Copenhagen’s “City Terminal” is one of the few working examples of a remote terminal
   approach that several cruise homeport destinations are pursuing. This concept effectively
   allows the cruise terminal to be situated in any number of locations (often existing facilities)
   or at a consolidated terminal site. Buses or smaller shuttles move passengers from the
   remote terminal to designated cruise berth facilities. Negatives associated with this type of
   terminal approach include unfamiliarity of operations by cruise lines (they generally prefer a
   more traditional cruise passenger terminal and being close to the vessel); increased cost
   associated with movement of passengers between the berth and remote terminal; exposure
   to weather and potential safety hazards (e.g., mixing of passengers with provisioning activities
   and ship’s lines) of cruise passengers on the pier; and the need to provide for sterile transit of
   passengers between the berth and remote terminal.

   Terminal typologies presented often include additional uses beyond cruise and ferry
   operations are programmed into the facility. These uses often consist of retail,
   entertainment, office, recreation, and conference center areas that work to create venues for
   passengers as well as for community residents and landside tourists. In some instances, actual
   spaces are used to support others found in the complex (e.g., an embarkation area not is use
   serving as a conference center meeting space). This configuration is increasingly found as a
   component of a destination’s urban waterfront and/or areas outside of the port
   administration area. The strengths of this type of facility include: Allows for other revenue
   generating operations to support (either in full or partially) cruise dedicated facilities; creates
   an amenity for cruise passengers and the local community; integrates well into surrounding
   urban areas; and, creates improved utilization of capital investment resources in
   circumstances where cruise operations are infrequent or highly seasonal. Similar to the multi
   berth terminal, proper facilities design and management are critical to allow cruise functions
   to occur without additional constraints placed on them by the presence of other facility uses.
   Sizing of the facility, especially from the standpoint of determining the level of retail and other
   uses demand is also crucial for success. Clear separation of security and berth operations
   areas also should be made.

   Any of the above terminal typologies are likely suitable for The Hague / Scheveningen.
   Incorporation of mixed-uses is also likely to create a dynamic and exciting terminal
   experience for cruise passengers, land based visitors, and local residents. The key for
   incorporation of mixed-uses is to ensure the terminal complex(es) are not developed as a
   mixed-use development with a terminal attached; the terminal and its functionality need to
   take center stage to ensure that the facility will properly meet its varies operational
   requirements, timing issues, and be provided to cruise operators at a reasonable cost.

Functionality

   As presented, the basic components of cruise terminal functions in most applications and
   regions of the world are fairly straightforward. For embarkations, they include moving the
   passenger from a GTA to ticketing, security, (in some destinations) immigration, and
   boarding. While these processes are ongoing, the ship is being provisioned. For
   disembarkation activities, luggage is unloaded and placed in a baggage area; passengers
   disembark and get their bags, proceed through customs, and move the GTA and/or parking
   area. These general flows are illustrated in Figure 17 through 22.




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Figure 16: Typical Cruise Embarkation - Linear
Source: B&A, 2008




Figure 17: Typical Cruise Disembarkation / Separate Customs & Immigration -
Linear
Source: B&A, 2008




      The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
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Figure 18: Typical Cruise Disembarkation / Combined Customs & Immigration -
Linear
Source: B&A, 2008




Figure 19: Typical Cruise Embarkation - Pier
Source: B&A, 2008




      The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
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Figure 20: Typical Cruise Disembarkation / Separate Customs & Immigration - Pier
Source: B&A, 2008




Figure 21: Typical Cruise Disembarkation / Combined Customs & Immigration -
Pier
Source: B&A, 2008




      The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
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Cruise Port-of-Call Cruise Space Requirements

   While The Hague / Scheveningen will primarily support longer duration cruises and entertain
   a high level of port-of-call visits the facilities must be multi-use in purpose. For port-of-call
   operations a cruise terminal is not necessarily required, but rather facilities that meet the
   customs and immigration needs, provide shelter and comfort to the passenger, and provide
   potential revenue options. Overall requirements for port-of-call operations per vessel
   include:

       Covered disembarkation and arrivals area of approx. 100 sq. m. per vessel;

       Consolidation of functions to support multiple vessels for security, Immigration and
       Customs that offer an increased ability for high-staffing and faster processing and the
       potential to reduce the overall program by +/-20% through consolidation;

       Restrooms 20 sq. m. per vessel (approx. 3 – 5 units each);

       Destination Information Area approx. 30 sq. m. per vessel; and,

       GTA for motor coaches of 20 – 30 coaches, 10 – 15 vans and maximum 15 taxis.

Cruise Homeport Operations

   Based on the above within this section we have also developed a suggested terminal size
   program for The Hague / Scheveningen based on conversation with Zublin Grenada and our
   observations of the development approach. Based on this we recommend the development
   of a single or multi-berth linear or finger pier, plus an additional single linear berth long-term
   to accommodate port-of-call operations or secondary homeporting activities of small vessels.

   We assume that long-term the new cruise facility will need to accommodate two cruise
   homeport vessels, post-panamax and Super post-panamax simultaneously, along with a single
   post-panamax cruise port-of-call vessel, or a combination thereof. To highlight the
   requirements for the facility we have included a typical homeport operational day. The
   sequence of events during the typical European homeport operation is as follows:

   Prior to Arrival. The cruise line or vessel contacts the port either directly or through the
   port agent to verify its berthing assignment, arrival and departure schedule, and provision
   information such as water, gangway location, storing process, medical needs and others. The
   vessel manifest is also typically transmitted for review by security agencies.

   5:00 to 7:00. The harbour pilot rendezvous with the vessel is navigates it through the
   channel to the assigned berth. The port agent, stevedores, security agencies, line handlers,
   port personnel and cruise line representatives (if any) communicate with shipboard
   representatives when the vessel it docked. Provisioning trucks and barges located dockside
   and/or remote location are readied.

   7:00. Immediately upon arrival, the gangway(s) is/are moved into position and connected
   to the ship’s passenger doors. The vessel is then inspected by security agencies.

   7:30 to 8:00. The ship is cleared by customs and other security agencies. The stevedores
   begin the process of off-loading baggage using fork-lifts, cages and other means as appropriate

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for the vessel and berth configuration. The baggage is placed within the designated sterile
location and is displayed on the floor or carousel. The area is sealed to prevent access by
unauthorized persons. Stevedores proceed to remove from the vessel any other items
requested.

8:00 to 9:00.    Passengers begin disembarking the vessel. The passenger process is as
follows:

    Immigration. In the past, passengers first went through immigration onboard the ship
    and once the entire ship had been “cleared” the disembarkation process began. Due to
    heightened security requirements in many destinations, immigration agencies have
    increasingly requested land-based clearance. Under this approach, passengers exit the
    vessel once the ship has arrived and then are processed in the terminal similar to that
    observed as part of international arrivals at an airport. Health inspection facilities would
    also be provided in this area as needed.

    Customs. Once passengers clear immigration, they collect their luggage from the
    baggage handling area and proceed to the designated customs checkpoint. Customs
    operates under a green light/red-light system. Passengers with nothing to declare
    proceed through a primary check-point consisting of a stand manned by a customs
    officer who collects customs declaration form(s); if a passenger has something to declare
    or the customs officer wishes, they are sent to a secondary check-point, which typically
    consists of tables allowing for the inspection of luggage.

    Transportation. Passengers clear/complete the customs process area and exit the
    terminal to the GTA or parking area. The passengers using pre-arranged bus
    transportation will either drop-off luggage with an airline representative (if any) or will
    carry luggage directly to the bus and auto area.

    Crew. Onboard ship’s staff and crew disembark through crew doors and exit through
    specially designated locations with security and federal inspection. Crew will typically
    depart the vessel once a majority of passengers have disembarked. Approximately one-
    third of the crew will disembark during a homeport operation. Crew can be expected to
    return between 15:00 and 16:30.

11:00. Passenger disembarkation ends and the sterile components associated with customs
and immigration inside and outside of the terminal can be withdrawn, except for crew check-
points. Managed provisioning of the vessel begins to ensure continued flow of stores.
Provisioning is generally paced, with a ground logistics person calling for trucks waiting in a
marshalling or other area to proceed onto the apron for commencement of the provisioning
process. Barges are organized in a similar fashion for bunkering if required.

11:00. Embarking passengers typically will begin to arrive to the terminal facility before
11:00. Passengers will arrive by any of the following modes:

        Cruise line arranged buses. Cruise lines generally bring their passengers in buses
        either from the airport for those using an air-sea package, or directly by bus for
        those being transported from the region.

        Private cars. If the consumer market is suitable, cruise lines will sell cabins to
        nearby and local residents, which will come to the terminal in their own vehicles.

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        Parking is often provided on site or an alternative parking area and a shuttle bus
        takes the passenger to the terminal.

        Taxis and mass transit. Some passengers will use these services if they do not
        have cruise line provided pre-arranged transportation.

        Drop-offs. Many passengers will be dropped off by friends and relatives.

Typically, cruise passenger’s drop-off their luggage at the GTA where they are met by
designated luggage handlers. Some passengers may select to keep smaller items and “self
assisted” luggage with them as they move through the check-in process. Passengers then
proceed into the terminal embarkations area to go through cruise line check-in formalities.
Luggage is collected at curbside in metal cages which are then taken via forklift through the
ground floor of the terminal to an area for explosives detection scanning. Luggage is then
brought alongside the vessel for loading.

12:00. The cruise line opens the vessel for boarding once a second round of clearance is
issued by security agencies. The terminal needs to accommodate the following functions:

        Waiting. Since passenger arrivals have already been underway from earlier in the
        morning, passengers need a place to wait until the embarkation process can begin. In
        a mixed-use terminal scenario, some passengers could be directed to nearby
        attractions or other parts of the complex. However, there will be a certain number
        of passengers that will not want to leave the area or there might be inclement
        weather preventing other outdoor activities. As a result an area capable of holding
        20% to 40% of the ship’s passenger compliment is usually needed.

        Security. Once boarding begins, passengers proceed through a security check-
        point. Typically two options are available: The entire terminal is secured by placing
        the check-point at the entrance or the check-point is placed immediately before the
        boarding area. A security check-point after the check-in and waiting area is generally
        preferred.

        Immigration / Customs. Some ports require passengers to be processed
        through an immigration and customs area prior to boarding.

        Bon-voyage activities. Dependent upon the cruise line, a photo is taken of each
        passenger at the gangway entrance for the line’s Sea-Card Identification system.

17:00 – 22:00. Vessel departs for the cruise. Cruise line personnel, stevedores and all other
dock personnel leave. Terminal operations staff secures the facility.

For The Hague / Scheveningen, some variants of this process may occur. Due to the quality
of the Netherlands as a destination as well as the range of flight arrivals into the area,
international cruise lines may accommodate a homeport turn over the course of two days.
Under this scenario, disembarkation activities would likely occur on Day 1 followed by
embarkation activities on Day 2. For very short cruises—two days in duration or less—
passengers will primarily only have self assisted luggage, and as such, the embarkation and
disembarkation process will be both easier and shorter. For planning purposes, however, we
must assume that the critical terminal space program parameters are accommodation of
longer and more luggage intensive cruises of 8-days and greater.

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1.7   Space Requirements for Terminal Operations

      A vessel of today’s passenger capacity of more than 3,000-passengers would require a
      minimum of a 14,000-sq. meter terminal facility to accommodate all of the essential
      operations. Furthermore, since from a homeport terminal perspective there is actually
      double the amount of passengers using the facility during the day as a cruise vessel homeport,
      as passengers both depart from and arrive to the cruise vessel.

      A terminal must be highly efficient, moving people quickly from the land-side ground
      transportation area (GTA) to the vessel. A terminal is also a reflection of the destination’s
      image, affording an important opportunity to make a favorable impression on arriving and
      departing tourists, as well as land-based tourists and the local community as well do to its
      location on the water’s edge.

      Cruise terminal requirements are significant for facilities accommodating cruise homeport
      operations. The cruise homeport terminal reflects the following operational needs:
      Passenger ticketing and processing; passenger luggage off-loading; requirements of inspection
      services (customs, immigration, agriculture, and health); security screening points; waiting
      lounges; support office spaces and circulation.

      Basic cruise terminal functions (steps) for cruise embarkation and disembarkation are very
      similar for most terminals worldwide. For embarkations, these steps include moving the
      passenger from a GTA to check-in, security, immigration, customs (in some cases) and
      boarding. The vessel is being provisioned while these processes are underway. For
      disembarkation activities, luggage is unloaded and placed in a baggage area; passengers
      disembark and get their bags, proceed through customs and move to the GTA and/or
      parking area.

      As vessels have grown the complexity of moving large amounts of passengers and baggage;
      increased security procedures; and facilities for Customs & Immigration also needed to
      expand in order to accommodate the needs of the cruise line. Technology and operational
      innovations have helped keep space demands down to some extent. However, with the
      deployment of cruise vessels of more than 3,000-passengers, terminals still must have
      adequate space for the necessary functions of the facility to meet the needs and expectations
      of the cruise line and passengers. By example, Freedom of the Seas delivered in spring 2006
      utilizes terminals of more than 5,500-sq. meters minimum to adequately meet the vessels
      demands unless technology and new operational standards are developed to assist in
      defraying the space requirements posed by these vessels.

      Terminal space programs can vary from port to port. Review of general planning parameters
      for cruise terminals observed in Europe call for development of passenger areas of between
      1.0m2 and 2.1m2 per passenger, a rate that accounts for passenger check-in, waiting, security,
      baggage, cruise line offices and back-of-house functions.2 North American standards are
      generally higher due to more involved baggage, security, and Immigration and Customs.




          2
            Flexibility may exist in the design of terminal disembarkation spaces, especially related to how the cruise line and customs
          plan to conduct baggage lay down operations. Terminal spaces should be designed around the largest vessel(s) anticipated to
          operate regular homeport operations from the terminal facility.

              The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
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   Table 7: General Cruise Terminal Program by Region
   Source: B&A, 2008

                    Terminal Area                            North America                          Europe / Asia

      Check-In

      Security

      Baggage

      Inspection Services (Customs,                     1.4 m2 to 2.1 m2 per Design          1.0 m2 to 2.1 m2 per Design
      Immigration, Health and Agriculture)                   Vessel Passenger                     Vessel Passenger

      Lounge

      Lobby

      Circulation

      Note: Squ. m. estimated at 1.67 per passenger for all years. European average is between 1.0 and 2.1-per passenger.




Terminal Space Requirements

   Terminal space programs can vary from port to port. Review of general planning parameters
   for cruise terminals observed in Europe as a guide and building from the information
   collected as part of stakeholder interviews, case study analysis and B&A experience, we
   outline general space allocations for prototypical terminals in Table 8. These terminals have
   been customized for anticipated needs in The Hague / Scheveningen in future space planning
   efforts. Space allocations were generated for both a terminal supporting single or dual cruise
   homeport operations by a post-Panamax vessel and a super post-Panamax vessel.




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Table 8: Suggested Terminal Size Programs for Post-Panamax Homeport Vessel,
Individual and Twin Terminals (m2)*
Source: B&A, 2008
                     Individual Terminal for Design           Twin Terminal for Design Vessel
                       Vessel 2 (post -Panamax)                     2 (post -Panamax)
      Use
                                                                                      Suggested
                    Minimum (m2)        Suggested (m2)        Minimum (m2)
                                                                                        (m2)

   Check-In /
   Lounge /             2,500                 2,500                 4,000                4,000
  Waiting Area

    Security        Within several       Within several        Within several       Within several
                        areas                areas                 areas                areas

    Baggage             2,650                 2,650                 5,000                5,000

   Customs
  Processing /           400                  600                   800                  1,000
   Exit (LL)

   Customs
                         200                  400                   400                   800
  Offices (LL)

  Immigration /
    Health /
                         500                  500                   1,000                1,000
    Customs
     (UL)

  Immigration /
    Health /
    Customs              400                  600                   800                  1,000
    Offices /
   Other (UL)

     Lobby               200                  500                   400                   900

   Support /
    Loading              300                  400                   600                   800
     Dock

     Totals             7,145                 8,225                13,000               14,850

 Note: *Circulation and structure included in area allocations; LL = Lower Level; UL = Upper Level




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Table 9: Suggested Terminal Size Programs for Super Post-Panamax Homeport
Vessel, Individual and Twin Terminals (m2)*
Source: B&A, 2008
                     Individual Terminal for Design           Twin Terminal for Design Vessel
                     Vessel 3 (super post -Panamax)              3 (super post -Panamax)
      Use
                                                                                     Suggested
                    Minimum (m2)       Suggested (m2)         Minimum (m2)
                                                                                       (m2)

   Check-In /
   Lounge /             3,500                3,500                 6,000                 6,000
  Waiting Area

    Security        Within several       Within several        Within several       Within several
                        areas                areas                 areas                areas

    Baggage             3,500                 3,500                7,000                 7,000

   Customs
  Processing /           400                  600                   800                  1,000
   Exit (LL)

   Customs
                         200                  400                   400                  800
  Offices (LL)

  Immigration /
    Health /
                         700                  700                  1,200                 1,200
    Customs
     (UL)

  Immigration /
    Health /
    Customs              600                  800                  1,200                 1,500
    Offices /
   Other (UL)

     Lobby               200                  400                   400                  800

   Support /
    Loading              350                  500                   600                  910
     Dock

     Totals             9,450                10,645                17,600               19,700

 Note: *Circulation and structure included in area allocations; LL = Lower Level; UL = Upper Level




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   Terminal layouts depict stand alone facilities. Mixed-uses can, and given the dynamic nature
   of The Hague / Scheveningen development is a likely candidate site for mixed-use
   development integrated into the area surrounding the terminal. The retail area depicted in
   the terminal is considered the minimum demanded for cruise passenger convenience and
   duty free goods prior to boarding the ship. For duty free purchases, we assume the
   passenger shows a cruise ticket and/or other documentation to purchase duty free goods.

   All luggage, other than passenger self-assisted bags, is handled on the ground floor to reduce
   the number of move(s) and amount of labor required for embarkation and disembarkation
   processes. We assume luggage scanning occurs within a designated zone in the baggage area
   presented. We have not included a baggage carousel system as part of these schemes.
   These systems have shown some promise in highly active homeport terminals (Miami’s
   Terminal’s 3/5) and can reduce space allocations associated with the baggage area. The
   difficulty with these systems is the high fixed and operational costs and the elimination of
   flexible use of space.

   The immigration area is reversible to allow for processing of disembarking passengers (as
   needed) in the morning and embarking passengers in the afternoon. The actual mode of
   operation and requirements for customs, immigration health facilities overall would need to
   be further refined as part of a specific site development scheme.

   We have assumed for the individual terminal program a minimum Customs Processing and
   Exit area of 400m2 under both design vessels and a recommended area of 600m2. Actual
   mode of operation and requirements for customs and immigration would need to be further
   refined as part of a specific site development scheme. While not fully detailed in the
   schemes, we have included a space allocation of approximately 100m2 for installation of
   Customs counters, controlled passages and screening facilities for performing Customs
   clearance. Secondary screening areas are provided in the Customs Offices Area. It is
   expected that all disembarking (incoming) passengers and their baggage shall be subject to
   Customs clearance.

   The loading dock is intended for movement of baggage held in-bond from the airport(s) as
   well as other functional needs of the terminal.

   For a port-of-call operation, disembarking passenger flows could occur either through the
   second floor or the baggage area. Both routes should lead to the GTA. Dependent upon a
   final selection of route, additional areas for visitors should be provided that present tourism
   information, shore excursion activities and provide other information.

Other Mixed-Uses

   Retail and other mixed-use are increasingly important components of cruise terminal
   facilities. At a small scale, retail is generally offered as part of a homeport to allow for
   passengers to purchase duty free items or other goods prior to embarking on a cruise. Due
   to the timing (generally morning) of disembarkation activities under a homeport scenario,
   retail demand is low; passengers are often more concerned with getting off of the vessel,
   clearing immigration and customs and finding transport to the airport or other venue. Retail
   areas as part of a port-of-call—especially those close to the terminal or disembarkation
   areas—are typically larger and can add a significant amenity to cruise passengers and generate
   additional income for the port and/or terminal operator. Retail developed for the crew—
   sundries areas, telephone and computer facilities and others—are also worthwhile for
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development into a terminal space and can provide a substantial source of income, especially
if a port becomes known as a “crew friendly” location with good value for money.

Retail per square meter demanded can vary substantially for homeport and port-of-call
facilities. Through professional experience with several cruise facilities around the world, we
generally consider programming 1,000 m2 of retail space per 100,000 annual port-of-call
derived passengers. For homeport purposes, retail demand is generally 300 to 500 m2 per
100,000 passengers. By example, Barcelona’s new homeport terminal design is calling for
only 500 m2 of retail to support a single terminal accommodating a 3,600 passenger cruise
vessel. The above retail figures do not include the potential demand associated with other
retail designed to appeal to the local community and land-based sourced visitors.

Other mixed uses for consideration in terminal and mixed-use waterfront development—
many of which likely have high market viability in The Hague / Scheveningnen development
are summarized in Table 10:




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Table 10: Suitable Uses in Concert with Cruise Facilities
Source: B&A, 2008
                                                          Somewhat
   Mixed-Use Type            Most Desirable                                       Less Desirable
                                                           Desirable

                            Mid-to upper level
                           shopping (geared to
                              locals and cruise
                            passengers); luxury
                                                      Marketplace / bazaar;     Big box retail; low-end
         Retail           goods; duty free; high-
                                                         crafts market            discount shopping
                           end prepared foods;
                               some kiosk and
                             specialty retailers;
                                   others

                          Live theatre; specialty /   Standard cinemaplex;
     Entertainment        Theme entertainment;           Sports facilities;                -
                                 Nightclub                  Gaming

                            All; White tablecloth; Food court; Mid-Range
      Restaurants                                                                          -
                                            Establishments

        Office*                  Class A and B+; Maritime office use              Class B and below

        Hotel*               Four to Five Star, Greater than 120 rooms          Three star and lower

      Residential*                    -                          -                        All

     Conference /
                                    All                          -                         -
     Convention*

                            Water Taxi; Mass
                                                        Ferry (inter and/or
                           Transit and Light Rail
 Multimodal Transport*                                intra-regional); Public       Industrial rail
                          systems; Local charter
                                                                bus
                            and tour offerings

        Marina*                       -                         All                        -

   Public recreation*               All                          -                         -

        Parking*

       Industrial                                                                         All

 Notes: *Significant consideration needs to be given to Port security planning with incorporation of
 these uses proximate to the waterfront.




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Vancouver Case Study




   Overview

   Vancouver has a long and distinguished history of hosting homeport and port-of-call
   operations for cruise vessels operating along the Pacific Northwest and Alaskan coast. Over
   1,000,000 revenue passengers on deepwater, ocean-going cruises were accommodated at
   Vancouver Port Authority (VPA) facilities in 2008, double the level achieved in 1995. Due to
   increased competition and new cruise ship deployments this number declined slightly after
   2003. The Port of Vancouver is the principal feeder homeport for the Alaska cruise region
   due to its geographic location; regulatory position; airlift capacity; hotel accommodations;
   support tourism infrastructure; and available cruise ship berths.

   Vancouver acts as a port-of-call and homeport for Pacific Northwest sailings from/to Seattle,
   and some Alaska cruise sector types from San Francisco, Hawaii, and Seattle due to the
   Passenger Services Act and repositioning to Vancouver for seasonal homeporting to Alaska.
   In addition, Vancouver is the homeport for repositioning cruises that either transit the West
   Coast of the U.S. or go via Hawaii en route to winter cruise destinations in the Caribbean,
   Hawaii, Panama Canal, and Mexican Riviera. Vancouver has consistently met the
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requirements of the cruise ship industry through its relatively close operational relationship
with the major North American cruise lines associated with the Northwest Cruiseship
Association (NWCA). Originally formed to provide security support to the Port of
Vancouver the NWCA has become the cruise lines mouthpiece and political lobby on issues
in the region.

With further cruise facility development in Seattle and the movement of cruise deployments
to this Port, Vancouver has begun a coordinated marketing and operational effort to continue
its trend in not only being the primary Alaska feeder port, but also growing its passenger
throughput levels annually in other areas of deployment. Vancouver has seen over ¾ of a
Million passengers flow through its Port in each of the last three years, despite the growth of
Seattle as a homeport for the Alaska cruise sector. For the Port of Vancouver the cruise
industry is the second largest generator of jobs and economic output. With a five-month
season, the cruise industry is an important seasonal employment generator. Each sailing of a
cruise ship generates 14 direct jobs. Each cruise ship leaves CA$1.5 million in economic
benefits to the region. The cruise industry generates:

     4,500 direct jobs annually;

     $177 million in wages;

     $228 million in GDP; and,

     $508 million in economic output.

Cruise Facilities

The Port maintains two cruise ship complexes – Canada Place and Ballantyne Pier for
seasonal operations.

Canada Place

Port of Vancouver's premier cruise facility is located in the city centre, near excellent hotels,
shopping, dining and entertainment. Due to increasing weekend traffic and ship size of the
worldwide fleets Canada Place was expanded adding a third berth and supporting facilities.
Its distinctive white sail design, five-star hotel, and the Vancouver Convention and Exhibition
Centre make Canada Place an attractive start and finish to any cruise experience. This is a
mixed-use facility that also houses limited retail space, a 4-star hotel, IMAX Theatre, office
and conference center facilities. The Terminal and operations are managed by the Vancouver
Port Authority with a management structure inclusive of Terminal Operations Manager;
Security Manager (NWCA); Maintenance; and secondary operational personnel to interface
with the facility users throughout the season. Details for the facility include the following:




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 Location:              999 Canada Place, Vancouver (City Center)

 Berths:                3

 Berth Lengths:         506 m. (1,660 ft.), 329 m. (1,070 ft.), 274 m. (900 ft.)

 Depth:                 8.4 m. (27.5 ft.) to 10 m. (33 ft.)

 Gangway Units:         2 automatic tide-sensored gangways at each berth (6 total).

 Capacity               Approximately 12,000 – 15,000-passengers (3 cruise vessels – homeporting
                        simultaneously); Plus operations personnel.

 Layout:                See drawings below for detail.

 Baggage Area:          6,000 sq. m. (64,500 sq. ft.) Moveable walls used for separation.

 Check-In Area:         Moveable walls used in area to separate cruise lines.

 Customs            &   Fixed area of approx. 3,000 sq. ft. for Canada CIQ; US Immigration and
 Immigration:           Customs at booths designated for each ship prior to boarding process.

 Dock Apron:            9,500 sq. m. (102,700 sq. ft.)

 Security Zones:        Security CTV monitoring office on main floor of Terminal (approx. 600 sq.
                        ft.). Additional office space in administration building.

 Ground                 12 bus bays plus slots plus taxi and limousine parking. Dispatch for taxis via
 Transportation:        radio control outside on Waterfront Street. Rental cars shuttled to office or
                        outside lots. Shuttles buses to hotels have one slot in area.

 Parking:               On-site and off-site parking for cruise passengers. See below for details.

 Roadway                Via Waterfront Street; Main links to airport via surface roadways through
 Linkages:              downtown (limited highway); Major tourism sites in downtown core and
                        park accessible via sidewalks and other transportation.

 Vessel Services:       Fresh water at dockside, ship telephone jacks, garbage collection
                        (international and domestic), 24-hr. tug service, 24-hr. security.

 Passenger              Tourism information center, individual baggage carts, baggage storage,
 Services:              scooter and wheelchair rental, full wheelchair access, easy-service restaurant,
                        foreign currency exchange, IMAX Theatre and five-star hotel.



Access to Canada Place is via Waterfront Road for coach, taxi, rental and private vehicles
(drop off only) to the first floor of the terminal facility. While space constrained, careful
planning and management of Canada Place has enabled the cruise lines to satisfy
their ground transportation requirements. The terminal’s porte-cochere area has 12
bus bays for sharing among the three full-sized berths. This is augmented by apron level bus
loading/unloading. The recently expanded porte-cochere area enables greater usability of the

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facility by limousines, private tour operators, shuttle busses, and private vehicles. Ground
transportation at Canada Place’s is supported by a GTA staging area located on the central
waterfront and just east of Canada Place. The holding lot, however, suffers from heavy levels
of peak hour congestion. Having a staging area in close proximity to the cruise terminal is
essential to supporting the efficient operation of Canada Place.

The availability of personal vehicle
parking for Vancouver originating
cruises is considered reasonable.
Canada Place has on-site parking located
in the terminal’s parkade, which is
operated on contract by Easy Park. In
addition, Cruise Park operates an offsite
facility just east of Canada Place and
provides shuttle service for its clients
to/from both Canada Place and
Ballantyne Pier. Parking for passengers'
convenience short-term parking is
provided on-site at Canada Place and
short and long-term parking offsite for
both Canada Place and Ballantyne.
Canada Place has an on-site two level
parkade housing 770 stalls operated by
Citipark for short-term and long-term
parking. Off-site short and long term
parking is available for both Canada Place
and Ballantyne terminals. For passengers
arriving/departing in Vancouver, a
complimentary shuttle is provided to
Canada Place and Ballantyne terminals.

Due to the location of the cruise areas within the Canada Place facility there are
limited entrance points for pedestrian traffic into the facility due to security and
operational arrangements. However, access points for pedestrians on the multi-levels
adjacent to the cruise ships is exceptional with a walking promenade encompassing the
entirety of the facility, large viewing platforms above the embarkation points, and other places
of interest.

Traffic control for the Vancouver cruise facilities is accomplished in coordination with
the local Vancouver police authority and private security. Due to limited space within the
Canada Place facility this area of the operation is continually monitored and updated as
required.

With security measures that meet or exceed North American standards, the Port
of Vancouver has a well-earned reputation as a secure, safe and dependable place to do
business. The Port of Vancouver continues to undertake several initiatives and programs to
implement innovative security solutions that enhance and safeguard the movement of cargo
and passengers through Canada’s largest port. The Port emphasizes the following security
measures:

    ISPS compliant as of July 1, 2004;
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       Member of Partners-in-Protection (PIP) and U.S. Customs Container Security Initiative
       (CSI);

       Fully staffed security department and 24-hour marine surveillance;

       Card-only and gate access in place at all Port terminals;

       24-hour closed-circuit television monitoring of Port roadways and cruise terminals;

       Advanced gamma ray container screening equipment;

       100 per cent passenger and baggage screening;

       Upgraded lighting, fencing, optical intrusion detection devices & signage on all Port
       properties; and,

       Active incident reporting program to track suspicious activity.

Embarkation activities – Canada Place

   Upon arrival at cruise passengers are directed to a common waiting area and security zone.
   Due to the itinerary types and operations most cruise vessels using Canada Place as a
   homeport arrive between 4AM and 7AM and depart from 4PM – 9PM. They are then sent
   to the appropriate check-in areas for their particular cruise vessel. All coaches for the facility
   share common space. Luggage is either off-loaded from the coach for non-cruise line groups
   and transfers or done via in-bond truck from/to the Vancouver International Airport. Each
   passenger walks through passenger security zones, all hand held luggage is scanned through a
   machine and the passenger must walk through a portal. Secondary inspections of baggage
   and persons take place as required in the immediate area. There are limited check-in lounge
   facilities for waiting areas and the process is intended to be expedited through the process
   due to the space constraints of the facility with two large and one medium cruise vessel.
   Each check-in area can be configured to the general operational specification of the individual
   cruise line. Individual counters can be moved. Power grids and cabling for computer
   equipment for each check-in unit is housed in the ceiling on tracks for ease of movement.
   Both Canada and US Customs, Immigration and Agriculture officials have facilities within the
   Terminal for ease of processing.

   For embarkation, non-US passengers must show their passports and pass through the
   inspection process for US Customs and Immigration. Once completed passengers board via
   two gangway systems per ship that are customized to accommodate the tidal activity.
   Dependent upon the cruise line, a photo is taken of each passenger at the gangway entrance
   for the Sea-Card Identification system. Total boarding time per guest from GTA departure
   to boarding may average 5 – 7 minutes at present. Again, this is very cruise line dependent
   due to their operational programs and use of technology. Princess Cruises’ can check in
   passengers at a rate of one per 1:30 due to their gooey screen use and pre-check in
   procedures (forms are filled out in advance and scanning a credit card or I.D. is the only
   requirement for boarding). Luggage is loaded via the main floor via luggage crates. All
   baggage is scanned prior to boarding.

Disembarkation activities – Canada Place


          The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                      Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                 Page 44
   Upon arrival, activity centers upon the off-loading of passenger baggage and the transition of
   provisions for the cruise vessel (both hotel and marine). Baggage is moved via the ship in
   crates and deposited in the baggage lay-down area for each vessel. This is approximately a 1
   – 2 hour process dependent on passenger count and stevedore crewing. All disembarking
   passengers are required to walk through the Canadian Immigration facility within the terminal
   prior to baggage collection. To streamline the process, not all baggage must be in the facility
   prior to disembarkation. Instead, the baggage is color-coded dependent upon passenger
   status (flight time, independent, etc.). Passengers are allowed to disembark via color code to
   enter through Immigration (show passport), continue to the baggage laydown area (collect
   baggage) and pass through Customs Inspection. Baggage for groups leaving directly to the
   airport is collected and placed in an in-bound truck for direct access to the Vancouver
   International Airport where it is processed. The Ground Transportation Area is common
   and as such bus stalls and other parking areas are identified accordingly for each coach.
   Personnel from the individual cruise lines assist in directing passengers to through the GTA.
   Coaches, hotel shuttles, limousines, taxis, and car rentals are all accommodated within this
   area.

Marine Operations

   Due to the market serviced by the Port of Vancouver ship arrivals generally occur between
   4AM – 7AM and departures occur from 4PM – 9PM. Gangways are custom designed and
   accommodate the tidal ranges of the region. Each gangway unit is monitored throughout the
   cruise homeport operation to ensure its working ability. Upon arrival each cruise ship is
   moored to provide access via the gangway system. The gangways provide excellent mobility
   from the terminal facility due to the hallway configuration. Union line handlers are used for
   the operations.

Provisioning and Ship Servicing Operations

   While the Canada Place terminal operates with great efficiency, it is noted that congestion
   can get quite high during days when three ships are at the terminal. Co-ordination among all
   terminal stakeholders is required to ensure that the terminal functions effectively. The
   operational areas of Canada Place are considered to be well defined and secured.
   The apron allows for excellent access for provisioning trucks to off-load. Each truck is
   inspected by security personnel and dogs as required.

Information Technology

   In order to meet the needs of the individual cruise lines, Canada Place has installed cabling
   throughout the facility that can be moved via ceiling units into many different configurations.
   Telephone and computer communications linkages can be established at several points to the
   cruise ship at each berth. The facility uses technology for card scanning of all employees that
   access the facility; 24-hour CTV monitoring of the facility; optical intrusion detection devices;
   and other technology fixes.




          The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                      Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                 Page 45
Tariff Structure


                      PAX
     Port / City                     Dockage         Water                  Notes / Other
                     Charges




                                                                 Dockage after 12 hours at CA$0.84
                                     CA$9.46
                                                                 per meter per hour. Harbour dues
                                        per
                                                                   are CA$0.073 per GRT. for first
                                    meter/12
                                                                      five arrivals in calendar year.
                                     hours –
                    CA$11.00                                           Services and Facilities fee is
                                     Canada
                     on/off                                         CA$22.00 per meter/12 hours,
     Vancouver,                       Place;        CA$1.06
                                                                     $2.00 per addtl. hour. Rebate
        BC                          CA$0.192        per ton
                    CA$22.00                                            program: 15,001-45,000 =
                                        per
                    in-transit                                        CA$10.75; 45,001-75,000 =
                                    meter/12
                                                                     CA$10.50; 75,001-105,000 =
                                     hours –
                                                                 CA$10.25; > 105,001 = CA$10.00
                                    Ballantyne
                                                                 – all are on/off and apply to port-of-
                                       Pier
                                                                            call and homeport.




   Payment for cruise vessels is billed directly to the cruise line through the Vancouver Port
   Authority.

Port / Terminal Funding Sources (Capital and Operational)

   The Vancouver Port Authority, as with all Ports in Canada, over the past several years has
   gone from a public entity to a wholely private corporation with limited participation through
   the Canadian Government. Capital project funding is mainly through borrowing and input
   from net income. In 2003 the Port of Vancouver owed approximately CA$39.2 million, well
   below the CA$225-million limit set by the Canadian Marine Act. Net income for 2003 was
   CA$26.8-million with total operating revenues of CA$102.9-million.

Management Structure (Port / Terminal and Mixed-Use Facilities)

   The Vancouver Port Authority is compromised of a 9-member Board of Directors reported
   to by the Executive President & CEO of the Authority and his staff. Operating units are
   broken into Business Development; Finance & Administration; Operations; and Property &
   Legal Services. In addition, a separate Canada Place Corporation has been established to
   operate the primary facility with a 6-member Board of Directors and a Senior Management
   Team with responsibility for finance and operations. Two additional units of the Authority
   also have been established to oversee the development of business opportunities and mixed-
   use facilities. They are Port Vancouver Ventures Ltd. and Port Vancouver Holdings Ltd.
   Until the mid-1990’s the Port Authorities of Canada were under Federal government prevue.
   Canada Place was originally funded through public monies, although today they operation of
   the Port Authorities have been transitioned to a semi-privatized business enterprise.

         The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                     Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                Page 46
Cooperation with Cruise Operators

   The Port of Vancouver has a solid reputation with the cruise line industry in supporting their
   operations in Vancouver through the advancement of technology, security and other
   operations. The cruise line industry does believe that the Port was slow to react to their
   need for additional berth accommodations when required, and this caused some of the shift
   to the Port of Seattle. Overall, the Port has excellent marketing and operational relations
   with the lines.

Other Destination Information

   Some of the other key factors in the success of the Port of Vancouver and Canada Place as a
   key homeport facility reside in the following:

       The close proximity and relationship between Canada Place and destination offerings that
       allow passengers to walk off the ship to the waterfront and center of Vancouver;

       Cruise passenger ease and safety in going on self-guided walking tours of the City;

       The high quality of service, multi-lingual skill and friendliness shown by Vancouver
       residents and those in the hospitality industry servicing cruise ship passengers;

       Variety of tourism venues and products;

       Vancouver’s history and experience with accommodating regional and international
       visitors, and specifically, cruise ship operations; and,

       Ground transportation service providers play a key role in cruise operations in
       Vancouver. The cruise industry is supported by a strong network of motor coach, taxi,
       and limousine companies.

Keys to Vancouver’s Success and Relevance for The Hague / Scheveningnen

   There are several relevant issues pertaining to the success of the Port of Vancouver as it
   relates to cruise ship operations. They include the following:

       Canada Place was originally developed under public funding arrangements through the
       Federal and Provincial government as a mixed use facility. Not until the restructuring of
       the national Port Authority system was the Port Authority of Vancouver privatized.

       A separate Canada Place Corporation has been established to oversee the operations
       and financing of the Canada Place facility.

       Originally developed for cruise ships in the mid-1980’s the facility did not take into
       consideration the potential size increase in the cruise vessel. Thus, a new addition was
       added in 1999 to accommodate larger cruise ships. Funding was through cruise
       passenger revenues and loan guarantees.

       While space constrained for the larger cruise vessels, careful planning and management of
       Canada Place has enabled the cruise lines to satisfy their ground transportation


         The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                     Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                Page 47
requirements. The operation areas of Canada Place are considered to be well defined
and secured by cruise industry standards.

Vancouver relies on multiple factors for its tourism success. Space accommodations
(airports, seaports) and tourism venues for visitors are well known. They have also
developed numerous tour operations for pre and post cruise activities via rail and coach.

The Port and Airport work extensively to increase the quality of service to cruise visitors
and increase the consistency and ease of baggage and passenger movement operations.




  The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
              Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                         Page 48
 Chapter

       2
Tariff Analysis
1.1      Background and study objectives

         As part of this assignment we prepared a review of regional cruise port tariffs and port
         charges at competing and/or comparable facilities that were publicly available for review.
         From this analysis, several port charge scenarios were developed and reviewed for suitability
         and change over time. For this Update we did not conduct a tariff research study.

         A number of scenarios for port charge packages designed to act as an incentive for cruise
         throughput to The Hague / Scheveningen cruise facility are also provided.

 1.2     Regional and Comparable Tariffs

         Within this section we review and analyze current tariffs in the region and make
         recommendations for a tariff structure for The Hague / Scheveningen facility. In addition, a
         discussion of possible tariff contractual recommendations is also defined within this area.

         For this assessment we analyzed existing public cruise tariffs in the region to identify the levels
         of cost to the user and potential opportunities related to changes in the tariffs for future
         revenues to the cruise facility and modifications that more directly relate to future cruise line
         requirements.

      Cruise Tariffs

         Based on the sample vessel shown in Table 11 the following observations were noted.

         Table 11: Sample Pro-forma Cruise Vessel
         Source: B&A, 2008

               Sample Cruise Vessel: Grand Princess

               Passengers                             2,600

               Tonnage                                108,806

               LOA (meters)                           289.86

               Beam (meters)                          35.97

               Draught (meters)                       8.50



                The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                            Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                       Page 49
                      Port charges in the region overall are comparative in nature. The large fee imposed by St.
                      Petersburg (approx. € 39,000) is a one time annual fee. Other ports also offer discounts
                      based on volumes for individual cruise brands. While we did not note publicly that either
                      Rotterdam or Amsterdam charged a passenger fee, we believe that some form of fee is
                      obtained by each port which is most likely in the € 2 – 3 range. Fees for canal entrances for
                      both Rotterdam and Amsterdam are based on information obtained through the public
                      website and interpreted accordingly. We did not gain fees for the UK homeports as they
                      were not published as accessible public documents. However, as homeports in the UK we
                      can envision that the fees will range at a minimum 25% higher than is found below for typical
                      operations in the Baltic region.

                      Table 12: Sample Pro-forma Cruise Vessel Tariffs, 2007
                      Source: B&A, 2008
                   Passenger Charges         Canal or Entrance Fees                Wharfage              Nav. Aids or Security Fees
                                                                                                                                         TOTAL
     Port
                   rate          fee            rate        fee           rate            fee                rate            fee

St. Petersburg       € 7.00    € 18,200.00        € 0.36   € 39,170.16      € 0.01         € 544.03      $13.479/m+.0046    € 4,407.53   € 62,321.72
Rotterdam                 -              -        € 0.20   € 21,761.20      € 2.78         € 805.81                € 2.54    € 736.24    € 23,303.26
Helsinki             € 3.50     € 9,100.00        € 0.15   € 16,320.90      € 5.76        € 1,669.59           € 1,100.00   € 1,100.00   € 28,190.49
Tallinn              € 2.12     € 5,512.00       € 0.165   € 17,952.99           -                 -                    -            -   € 23,464.99
Oslo                 € 1.20     € 3,120.00             -             -      € 0.05        € 5,440.30                    -            -    € 8,560.30
Stockholm            € 2.18     € 5,668.00        € 0.16   € 17,408.96           -                 -               € 1.20   € 3,120.00   € 26,196.96
Rostock              € 6.00    € 15,600.00        € 0.05    € 5,440.30           -                 -             € 850.00    € 850.00    € 21,890.30
Copenhagen           € 0.51     € 1,326.00             -             -     € 0.164       € 17,844.18               € 0.40   € 1,040.00   € 20,210.18
Amsterdam                 -              -        € 0.26   € 28,289.56      € 3.06          € 886.97                    -            -   € 29,176.53
Riga                 € 2.00     € 5,200.00        € 0.10   € 10,880.60     € 0.007          € 761.64                    -            -   € 16,842.24

                 Average        € 7,965.75   Average       € 19,653.08   Average          € 3,993.22   Average              € 1,875.63   € 26,015.70




                      Based on our assessment, an annual increase based on the inflation rate of the country is the
                      norm for most ports in the world, whether they are public or private in nature. However,
                      for the most part fees are increased overall at a much slower rate.

                      Additional fees that can be charged are inclusive of GTA fees for coaches, mini-vans and taxis
                      on an annual permit, per day or per entry basis. Vehicle fees for short- and long-term parking
                      are also suggested and range from € 8 to 12 per 24 hours.

                      Over the past several years ports have also begun charging a security fee to off-set the costs
                      involved in accommodating the ISPS code. These range from € .40 to 1.00 per passenger per
                      call.

                      While shown separate, fees should be combined to provide for one lump sum to be passed
                      through to the passenger. These are inclusive of all fees, with the possible exception of
                      stevedoring fees. In addition, discounting published rate tariffs for increased passenger
                      throughput, shoulder or off-season facility useage, and other areas such as pre-payment of
                      fees, environmental and fuel NOX2 consumption may also be warranted.

                      Fees should always be charged based on the GT as this is the unit that expands and will likely
                      to continue to expand over the mid-term. The LOA is likely not to go over 425-meters.




                              The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                                          Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                                     Page 50
   Consideration for a fee base must also consider the potential for increased revenues for
   cruise lines, as well as overall cost savings when selected one port over another. In the case
   of The Hague / Scheveningnen these would likely be a comparison between the transit time
   and fees vs. higher or added on passenger rates. We suggest the following Tariff ranges for
   The Hague / Scheveningen based on a bundled fee format.

   Table 13: Suggested Range of Cruise Vessel Tariffs
   Source: B&A, 2008
    Suggested Tariff              Fee                                               Notes


                                            Based on no more than 12-hour call. In and out. Reduction for throughput on an
    Passenger Head Tax     € 3.00 to 5.00   annual basis for individual brands. Per passenger.


    Entrance Fee           € 0.05 to 0.12   Charge may be applied to GT.


    Wharfage Fee           € 0.05 to 0.08   Charge may be applied to GT.


    Security Fee           € .050 to 1.00   Per passenger fee for security per call.


    Mooring Fee            € 500 to 1,000   Charged in and out for berthing and un-berthing.


    GTA Bus Fee            € 12 to 15       Per bus per day.


    GTA Mini-bus Fee       € 8 to 12        Per Mini-bus per day.


    GTA Taxi Fee           € 25             Annual permit fee.


    Parking – short term   € 2 to 3         Per vehicle per hour. Charged at entry/exit gate of facility.


    Parking – long term    € 8 to 12        Per vehicle per day. Charged at entry/exit gate of facility.




   Rates for processing, servicing and parking can be adjusted on an annual basis based upon
   either inflation rates or a survey of competitor ports in the region. In addition, rates may
   need to be adjusted, specifically for tariff based on negotiated contracts and volume discount
   policies with the cruise operators. See section below for further details.

   We have examined a number of strategies that may be available in negotiating with cruise
   operators on tariffs and berthing. In many regards these are also tied to potential investment
   options on behalf of the operators. Investment options on the maritime end of the equation
   may be the following:

Maritime

   The cruise line provides an up front contribution for the completion or use of the facilities.
   In return a reduction in tariffs over a period of time based on the overall value of the
   contribution. This investment option is likely used by cruise lines for public sector port
   facilities of high value that do not have the resources required to build facilities within a
   required timeframe. The other tactic may be a contribution for a guaranteed berth or berths
   over a period of time. This works well for private berths that can be used as a marketing
   tool by one cruise line over another and have limited berths available.

           The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                       Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                  Page 51
   The second type of investment involves guaranteed passenger throughput to the facility by a
   cruise operator in exchange for either reduced tariffs (typically used with public port facilities)
   and berth guarantees (generally preferred in the case of private facilities where cash flow
   from passenger fees is an underlying portion of the revenue forecasts for the facility.
   Negotiating for passenger guarantees provides the facility with reduced risk over the period
   of time for throughput levels, and has a substantial impact on lease rates and opportunities
   for retail and other spaces as the lessee knows the approximate throughput and can plan for
   revenues accordingly.

   Some of the major cruise lines (Royal Caribbean and Carnival Corporation) also involve
   themselves in billions of dollars in upland investments worldwide based on their growth
   strategies and interest in key ports that either provides homeport access to their passenger
   marketplace or ports that are used significantly in their itinerary patterns and offer increased
   revenue options. In exchange for contributions, long-term passenger throughput or
   providing influence on retail relationships cruise and ferry operators may request a portion of
   the equity in the project. Actual percentage of participation ranges vary dependent upon the
   negotiations and type of project.

   Below is a series of useful strategies and case study materials from which to draw in the
   formulation of an approach(s) to negotiating long-term commitments for passenger and line
   throughput.

Throughput Contracts: Case Studies

       Long-Term Contracts – Destination Wide with Multiple Lines. Bermuda was
       one of the first destinations to secure a long-term contract for guarantees of cruise
       passenger and vessel throughput. Bermuda presently has three long-term contracts with
       four cruise lines—RCI, Celebrity and NCL. These contracts specifically stipulate the
       length of the cruise season (with a maximum of 26 calls per year), itinerary, homeport
       and port-of-call locations, tariff structure, passenger head count, and other articles
       negotiated directly with each cruise line. Each party discusses contract extensions every
       two to four years. Bermuda has been able to place itself in this position due to its unique
       geographic position and proximity to New England vacationers; Bermuda’s leverage over
       the cruise lines has been significant, resulting in average tariffs of over $60 per passenger.
       However, over the past three contract negotiations Bermuda has started to give in on
       some concessions concerning their cruise ship policies, most notably, on the number of
       cabins, itineraries and ship type operated to Bermuda.

       Mid-Term Contracts with a Single Line. In 1998, the Port of Seattle negotiated a
       mid-term contract with NCL to homeport an Alaska bound ship for a period of 2 years.
       Subsequent contracts of similar circumstances have been negotiated with both Holland
       America and Princess Cruises through 2006. As a part of these deals, concessions were
       given to each line concerning tariff fees and the Port guaranteed NCL that its Pier 66
       Terminal would be upgraded to meet the needs of the cruise line and the expectations of
       its passengers. Subsequent to this the other contracts have included guaranteed berthing
       at new facilities built along the waterfront of downtown Seattle. For Seattle, this was an
       opportunity to place them on the Alaska market cruise homeport map; shortly
       thereafter, RCI began 3- and 4-day sailings from Seattle and Holland America is operating
       several series of cruises from the port. Today, Seattle accounts for more than 600,000
       homeports passengers.

          The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                      Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                 Page 52
       This strategy, or a form of it, may assist in providing a more significant position for a
       variety of cruises found in the present target market. Seattle’s contract, like many others,
       is principally centered on two elements: a favorable tariff rate and a desire of the cruise
       line to distinguish its brand by establishing itself at non-traditional port facilities. The
       Hague / Scheveningen would need to consider carefully the degree it is willing to sacrifice
       port tariffs and direct revenues to achieve potentially greater throughput, and in return,
       greater visibility and overall community economic impacts.

       Mid-Term Contracts with Multiple Lines. Due to its significance for the cruise
       industry as a homeport for the Western and Eastern Caribbean, the Port of Miami and
       Port Everglades have both negotiated a number of two- to five-year contracts with
       several of the major cruise lines. Concessions within the contract provide for berthing
       and terminal rights for the individual cruise lines, and tariff discounts based on passenger
       throughput and number of calls per year. Due to the extreme amount of traffic, these
       are very lucrative contracts and negotiations reflect the bond between the Port and the
       cruise lines that have assisted in developing the facilities in each port. These agreements
       include a typical 20% discount on published tariffs.

       Negotiated Concessions – Marketing Monies. The Port of Houston offered NCL
       and Carnival Cruise Lines significant cash up front (for NCL, the sum exceeded $1
       million) to use for marketing cruises out of the Port of Houston in 2004. Additionally,
       the port promised additional terminal improvements and reduced tariffs based upon
       passenger throughput and total calls per year. The Port of Houston saw these funds as
       seed-money for future growth of the cruise industry in their port, while the lines
       accepted the generous offers to assist in their marketing efforts. Interestingly, cruise lines
       were beginning to move into the region and would have likely homeported out of
       Houston over time without these significant cash outlays. This similar feature has also
       occurred in ports such as Panama in exchange for use of the canal and passenger
       guarantees.

   Since 2000, both Carnival and RCI have invested millions in port projects worldwide in ports
   such as Naples, Civitavecchia, Barcelona, New York City, Istanbul, and many ports
   throughout the Caribbean. Most of these deals are for either guaranteed throughput or cash
   in exchange for berth guarantees or lower port fees OR in many cases in the Caribbean
   direct equity in the project.

Tariff Policy as Part of Negotiating Long-Term Agreements

   One of the key negotiating tools is the manipulation of tariffs, specifically the passenger head
   tax. This approach can be used to help secure a long-term contract, increase throughput per
   annum by a cruise operator, attract specific types of operators, attract new ship calls,
   maintain current users in some cases, and increase the overall durations of cruise ships in
   port. Two strategic levels of negotiation are outlined below:

       Level 1: Published Tariffs. For the most part, all ports have published fees; however,
       most ports also negotiate discounts with individual lines based upon passenger
       throughput and the number of calls per annum. The infrequent and small cruise operator,
       without further negotiations, generally pays published tariffs. The published tariff formula
       should take into consideration regional passenger throughput and total calls on a seasonal
       basis; cruise operators should be able to reasonably achieve some throughput discount


         The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                     Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                                Page 53
    given deployment trends in the market. Consideration should be given to operators
    with low passenger capacity ships that call frequently.

    Level 2: Negotiated Rates - Special Tariff Rates in Exchange for a Negotiated
    Commitment. Several ports negotiate special tariff rates with key cruise lines and ferry
    operators in exchange for long-term throughput commitments. Negotiation and
    commitment to long-term tariffs on behalf of the lines has increasingly become common
    practice at many worldwide ports. Cruise lines look to establish lower rates and
    preferential berthing, and in return, the port gets a long-term passenger throughput
    commitment and possible up front monies, the latter being usually reserved for strategic
    ports. Special rates are typically established for larger lines—those that will likely
    contribute significant levels of passenger throughput—as well as small lines.

    Level 2: Negotiated Rates - Non-seasonal Rates. Several ports offer reduced rates
    and other incentives to cruise and ferry lines that call outside the normal timeframe for a
    cruising season. Typically, lines calling outside of the current season window are eligible
    for a 30% discount on all published tariffs. In its application in The Hague / Scheveningnen
    this approach could assist the facility in promoting new business due to the traffic
    patterns of its potential target market mixed with other regional influences. This
    approach can be implemented for two categories of non-seasonal traffic: Shoulder
    season traffic (April / May and September / October) that may qualify for one type of
    discount; and winter traffic, which may include an additional discount on top of that
    provided in the shoulder season or other incentive.

    Level 2: Negotiated Rates - Berthing Discount. This approach involves provision
    of a reduced tariff structure for those vessels that may be forced to use an alternative
    berth outside of the standard cruise ship berths. This should not be an advertised rate,
    but only be offered should conditions dictate that a vessel, due to current port traffic,
    must berth at an alternative pier outside of the standard cruise ship area.

    Level 2: Negotiated Rates – Cruise Tariff Rebates and Pre-Pays. Used in a
    handful of ports, rebates and pre-pays allow for several other flexible tariff strategies to
    be developed that provide each party incentives based on the time value of money, a
    lump sum pre-pay with no minimum cruise throughput specified, or other approach.

Proper communication is critical in the establishment or change of port tariff rates; cruise
lines treat rates and changes with a high degree of sensitivity, and as such, a clear strategy
should be outlined to convey information associated with these charges. Some suggestions
include:

    Establish direct relationships with the individual lines prior to presenting a published tariff
    structure.

    Rates should be formatted for ease of calculation by each line. Any adjustments year-
    over-year should be communicated directly to the lines that call frequently in the port via
    a personal meeting. Reasoning for any rate changes should be explained in detail,
    outlining specific infrastructure improvements that benefit the maritime industry and
    others.




      The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
                  Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                             Page 54
Revised tariff structures should be announced and given to each individual cruise line 12
to 18 months prior to implementation. This will allow the lines to build any increases into
their operating expenses for the particular ship and itinerary.

Tariffs should be considered as a bundled option for cruise lines to assist in reducing their
operating costs. This is inclusive of all fees associated with the berthing process –
entrance fees, pilotage, passenger fees, wharfage, security and some associated shore
excursion or ground services fees.

Environmental or fuel surcharge fees should be carefully considered prior to the
implementation of these fees.




  The Hague / Scheveningen Cruise Port – Update of the Cruise Program and Tariff Analysis
              Prepared by Bermello Ajamil & Partners, Inc. – August 27, 2008
                                         Page 55

				
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