CASE STUDY Project Name: Gullen Range Wind Farm Origins: China Cargo Volume: 210,000 FRT Duration: November 2012 / March 2014 Destination: Bannister, New South Wales, Australia

Your Partner for Global Wind Energy Projects Key components of this project included:

The transportation and shipping of 73 wind turbines

ex China to Australia

The full ocean charter of 9 vessel carrying 210,000

freight tons of project cargoes

The Interface management at load and discharge

ports including jobsite

The transport of 788 over-dimensional loads

The strict adherence to Quality, Health, Safety and

Environment throughout the project

GULLEN RANGE WIND FARM

GULLEN RANGE WIND FARM | PROJECT LOGISTICS

Transport Engineering Services

Project Pre-Feed GULLEN RANGE WINDFARM - deugro Projects Australia conducted the first road survey and project feasibility study for the Gullen Range Wind Farm in October 2008. More than 3 years later, on November the 13th 2012, deugro signed the logistics contract with one of the worlds leading wind turbine manufacturers. One of deugro’s advantages in securing the contract was the early involvement and profound knowledge of the logistics requirements including but not limited to:

• Port of discharge / discharge terminal and limitations

• Transport routes to site, permits & turn-around times

• Potential travel curfews and traffic management

• Local contractors and their capabilities

• Project equipment and its availability

• Weather data

• Customs Clearance and Quarantine procedures

• Project bottlenecks, risk analysis and risk mitigation

• Identifying civil works requirements

Transport Engineering Department (TED)

An additional advantage to deugro’s proposal was the

early engagement of the in-house Transport and

Engineering Department (TED).

Project-Specific Solutions TED supported the Gullen Range project in terms of: • Transport drawings

• Method Statements

• Route Surveys

• Transport consultancy

• Packaging/lifting studies

• Risk Assessment

• Damage Prevention

With the support of TED, deugro designed an overall cost-effective transport and logistics model for the project and supported our client with calculating reliable freight budgets.

Part of deugro’s offer was a dedicated project team from ‘start to finish’. deugro’s project manager was involved at project inception from budget pricing to feasibility studies as well as being an integral part of the operation including supervision at port of loadings, port of discharge, site activities and meetings. The project team comprised of: 1 Project Manager

1 Project Lead Coordinator

1 Project Supervisor at Port of discharge, load in & out

1 Project Supervisor on site the wind farm site

1 Project Interface Manager China & Australia

1 Project Administration & Finance

Manpower

GULLEN RANGE WIND FARM | PROJECT LOGISTICS

deugro On-site Personnel

Transport Engineering Services

Project Execution & Contractor

Management After a comprehensive pre-project set up which included a rigorous carrier and vendor selection process the first of nine full charter voyages was loaded in China on the 25th of February 2013. With different manufacturing locations within China the shipping program needed to incorporated two ports of call, namely Taican and Tianjin before arriving at the final destination, Port Kembla, Australia. The two load ports added pressure on the delivery program providing further risk exposure to potential port congestion and the possibility of not receiving the cargo components alongside the vessel within the agreed laycan periods. On average we completed the loadings in both ports within six days with a further eighteen days (average) for the ocean voyage to Port Kembla. In cooperation with deugro China we executed the entire shipping program, on time. deugro Australia’s project team, together with deugro China pre-inspected all the cargo prior to each voyage. Cargo condition and integrity was checked including adherence to Australia’s strict quarantine regulations prior to loading to minimize the risk of potential quarantine holds which would impact on the construction schedule.

`Can Do´ Attitude Jointly with our customers we develop clearly defined project-event process charts with consideration to Risk Matrices, the installed QHSES and Compliance systems and time versus cost impact assessments.

This is done not only to pre-plan the entire transport and logistics chain but also to identify and simulate possible scenarios in case of unexpected changes to schedules or events. In addition we utilized CAR’s (Corrective Action Reports) to raise any issues related to the cargo, cargo handling or other project related issues. The CAR’s assist both deugro and our clients to review and improve processes in the logistics chain during the execution phase.

GULLEN RANGE WIND FARM | PROJECT LOGISTICS

Wharf port storage

Commitment to QHSES

Convoy en-route

Onshore Services Australia Quite often the onshore logistics component of a project, from receiving the cargo under the vessels hook up to final delivery to jobsite, can be complex and challenging with additional pressure placed on the construction schedule by issues such as travel curfews, escorts and permit requirements. Prior to contract award deugro undertook a feasibility study of the two port terminals in Port Kembla assessing key aspects such as storage area, availability, type of material handling equipment, accessibility to main highway networks, permitting requirements for final delivery to site as well as QHSE procedures and similar experience handling projects of this magnitude. Last but not least commercials, value-added potential and flexibility working seven days a week if & when required over a 12 month period, was taken into account to complete the assessment. The end result being deugro managing a storage area within the port of discharge of over 18,000 sqm through the course of a 40 week load-out program.

Undertaking such a feasibility study adds comfort in utilizing the most suitable infrastructure for the project. A similar process and due diligence was applied in choosing the heavy haulage contractor and crane company to undertake the unloading of the components on site.

We dedicate a considerable amount of time prior to and throughout project execution to undertaking effective & collaborative subcontractor management. This includes but is not limited to vendor registration, surveys, audits and performance tracking.

Besides managing around 788 over dimensional loads with blades of 50m in length, deugro also coordinated the unloading of the trucks at the Goulbourn windfarm site in New South Wales.

Strict QHSES Standards At deugro we maintain a zero accident philosophy. Our organization has a top down commitment to QHSES and it is embedded in our company culture.

GULLEN RANGE WIND FARM | PROJECT LOGISTICS

No action required / on schedule Shipment is delayed / requires action

(Screenshot)

Project Period November 2012 – March 2014 Track & Trace

The use of deugro’s SCEM system (Supply Chain Event Management) saves costs and man hours to both deugro’s and our clients shipping, expediting and procurement functions by reducing the risk of stock-outs, doubled approaches to vendors and by facilitating PO consolidation planning. On top of simply tracing your PO movement, SCEM users can generate tailored dynamic statistics and KPI reports, or simply select any of our generic reports with only a few mouse clicks:

Material status reports:

- Track & Trace on line item / article level

- “Orders ready but not received”

- “Orders received but not shipped”

- “Orders in transit”

- “Orders arrived but not delivered”

- “Orders under import clearance”

Volume Statistics by origin and mode of transport

Key Performance Indicator (KPI) reports:

- “Cargo readiness delayed“

- “Delays re. provision of supplier details“

- “Reminder sent re. cargo readiness“

- “Documents received with discrepancy“

- “Cargo delivery delayed“

Planning & Scheduling reports

At deugro we have assembled a team of the best minds in the transport and logistics business, giving us the ability to focus on logistics excellence and service leadership.

“Since 2003 deugro has shipped more than 2.061 wind turbines handling in excess of over 4,000,000 million freight tons.”

Whether by direct EDI access to our clients management systems or by accessing the available online web-application, SCEM provides a user-friendly representation of your order status on shipment, order, item or article level.

The deugro Group deugro Projects Australia is part of the deugro group which was established almost 90 years ago in 1924 in Frankfurt, Germany. Today we operate an extensive network of over seventy owned offices, covering all continents and which are strategically located within gateways around the globe.

deugro Projects (Australia) Pty Ltd

Level 6, 60 Albert Road

South Melbourne, VIC 3205

Australia

P: +61 3 9230 9900

F: +61 3 9230 9999

www.deugro.com

IT TAKES THE BEST MINDS TO MAKE THE RIGHT MOVES.