RAIL FREIGHT TERMINAL OPERATOR
A REQUEST FOR AN EXPRESSION OF INTEREST
March 2016
prologis.co.uk
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EXECUTIVE SUMMARY
Prologis and Rugby Radio Station Limited Partnership
It is intended that the operator of the new terminal will be
(“the owners”) are seeking a rail freight terminal operator
selected through a two stage process, with an initial stage
with the necessary track-record, relevant experience,
of a call for expressions of interest. Shortlisted potential
overall capability and financial resources to operate a new
operators will be expected to participate in design
rail freight terminal at DIRFT - the UK’s premier rail served
development to ensure that:
logistics park.
DIRFT III was granted a Development Consent Order in
July 2014 for up to 7.86 million sq ft (731,000 sq m) of
rail served storage and distribution space, with a new rail
the terminal design fully meets market
requirements; and
freight terminal. On completion, the entire DIRFT estate
final operating and financial proposals from
will have warehouse floorspace of about 14 million sq ft.
the shortlist are based on an as optimal a
Prologis has drawn down the first tranche of land and
solution as possible.
commenced site and infrastructure works. The first
buildings should be delivered by Q4 2017.
The owners now wish to appoint a rail freight terminal
operator and to concurrently progress the design and
construction of the new terminal; that will enable the
closure of the existing terminal and the opportunity to
transfer the existing business to the new terminal.
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DIRFT III RAIL FREIGHT TERMINAL –
THE OPPORTUNITY
A new terminal
It was a fundamental element of the DIRFT III proposals
(now reflected in the requirements of the DCO) that a new
Existing rail routes connect DIRFT with;
•Europe
terminal be constructed. The existing terminal has limited
•The main UK ports
capacity for future growth and is not capable of serving
•Scotland
the significant extension of floor area to be developed.
•Other domestic intermodal destinations
The new terminal will be centrally placed within DIRFT III
and connected by an extension of the rail infrastructure
Proposed terminal features
which currently connects from the national rail network
The owners intend to develop the terminal to an agreed
into the existing terminal and serves DIRFT II (see
specification, that is likely to include the following:
masterplan). It will include new transhipment sidings,
container storage, an HGV reception area and a rail control
• Rail sidings to load and unload freight
building with staff facilities.
• Freight storage area
Subject to final design, the new terminal will have capacity
•Cripple sidings, fuelling and maintenance areas
to store 7,000 twenty foot equivalent units (TEU’s) and
using rail mounted gantry cranes is intended to handle
over 500,000 freight containers per annum. The rail
infrastructure will be designed to handle up to 26 trains
per day to the new terminal and rail served buildings
within the DIRFT estate.
Existing rail freight traffic
The existing DIRFT terminal currently handles circa
125,000 containers per annum (at 2014), and is operated
by the Malcolm Group. It is anticipated that the existing
terminal business will transfer on closure.
In addition to the existing terminal there are two rail
served buildings at DIRFT I and three rail served buildings
within DIRFT II. It was a requirement of the planning
permission for DIRFT II that all buildings be rail served.
Within DIRFT II both Tesco and Sainsbury’s have their
own terminals and the Stobart building has a rail siding
•Administration and staff amenity building
•Terminal entry/exit gateway, with container inspection
facility, gatehouse and parking areas
• HGV stacking area
The appointed terminal operator will be expected to fund
certain works, anticipated to include:
•The cranes
•Terminal operating system
However the exact form of terminal specification, the
split between the owners and operator, the funding
package and the structure/extent of the operational
agreement (which may include the role of managing the
wider DIRFT “common” rail estate and mainline reception
sidings) will all be the subject of the second stage of the
appointment process.
serving it.
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TESCO at Prologis RFI DIRFT
DIRFT
Occupiers include:
FUTURE-PROOFFUELS
North West
J1
North
M6
J19
Catthorpe
Swift Valley
Ind Est.
Newton
A14
FUTURE-PROOFFUELS
A5
FUTURE-PROOFFUELS
FUTURE-PROOFFUELS
Clifton Upon
Dunsmore
Rugby
M1
South
A428
J18
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AERIAL CGI OF DIRFT
To Towcester
To J17 & Northampton
WEST COAST MAINLINE
A5
M1
J18
A428
A428
A5
A428
A428
A5
NORTHAMPTON LOOP LINE
M1
NEW TERMINAL
A5
To Hinckley
M1
To J19 & Leicester
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NEW TERMINAL
INDICATIVE
MASTERPLAN
DIRFT III –
DEVELOPMENT CONSENT ORDER
DIRFT III is a Nationally Significant Infrastructure Project
The Phase One Rail Works are the western half of the
(NSIP). A Development Consent Order (DCO) was issued
terminal, defined as:
on 3rd July 2014 and is beyond legal challenge. In general
the DCO provides consent to develop up to 7.8m sq ft of
logistics warehousing as well as the new terminal.
four western transhipment sidings
The DCO also confirms the parameters for the rail terminal
the engine release track
which also allows a phased approach to its development
and delivery.
western loading lane
western container storage area
sufficient of the rail terminal entry/exit
gateway to serve the operation of the above
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sufficient rail track and associated work to
serve the above.
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PROGRAMME
Phase 1 Infrastructure
timing – commencement
May 16, completion
Q2 2017
The programme opposite sets out:
•The current infrastructure delivery trajectory to service
the first phase of 90 acres of development land.
•Delivery of rail infrastructure works which will extend
OPERATOR SELECTION PROCESS
the rail sidings effectively from DIRFT II (adjoining
Sainsbury’s) across the A5 (by way of a new bridge to
EOI Submission
be constructed) into DIRFT III.
Shortlisting
•Proposed delivery of phase one of rail freight terminal.
•Timing of this operator selection process.
Selection
Proposed delivery
of Rail Freight Terminal
Phase 1 Q2 2018
Design Input
29 APRIL
2016
MAY 2016
JUNE 2016
ONWARDS
Q3 2016
2017
Proposed delivery of
Rail Infrastructure –
Commencement
Q2 2017
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2018
2022
Proposed delivery of
Rail Freight Terminal
Phase 2 – Q2 2022 (or
earlier to suit demand)
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MARKETING AND OPERATOR
SELECTION PROCESS
This will be a two stage selection process.
The initial stage is an invitation to submit
an EOI, the requirements of which are set
out below.
A substantial amount of work has been undertaken to
It is intended to shortlist three, possibly four, parties who
documentation, details of the existing terminal (to the
will be invited to submit detailed proposals. Whilst the
extent which is not commercially confidential).
detailed requirements will be set out at the time they are
likely to include:
•
Design proposals
•
Form of agreement: its proposed structure, detailed
terms and financial proposals
•
Funding: requirements on Prologis and on
the operator
date and this will be made available via an extranet site.
This will include amongst other items: technical reports,
planning information, design development of the terminal
to date and the rail infrastructure serving it, plans, legal
Selection will be by reference to the Performance Criteria
set out below.
1) The details herein are set out for guidance only,
and do not constitute nor constitute part of an offer
or contract
2) All descriptions and other details are given
without responsibility
•
Corporate entity to enter into the agreement
•
Conditionality
•
Confirmation of Board approvals (required or given)
• Safety record
Performance Criteria
i) Track Record (specifically experienced in
iii) Financial Standing
running terminals)
ii) Competitive Position (management of
complimentary terminal(s)/services and/or
conflicts of interest)
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STAGE 1
EOI RESPONSE REQUIREMENTS
GENERAL
DEVELOPER DAYS
In order to submit an EOI, the following information
Prologis and the technical team will arrange review
is required:
meetings on request to ensure that interested parties
•
Corporate details: the entity which would enter into
• Competitive position: please confirm how the DIRFT
an agreement to operate the terminal, the corporate
terminal will fit into your corporate rail strategy, and
structure, and the financial status of both the proposed
include a review of any potential conflicts of interest
operating company and (if different) the parent
(whether actual or perceived).
company. Please provide three years’ accounts for
each. If the operating company is to be newly formed
please confirm the guarantees that can be put in place.
•
Operational experience: please give details of your
company’s track record and experience in the operation
of rail freight terminals. Details should include the name
of the terminal, whether it is owned or leased (or under
an alternative form of agreement), its throughput (TEUs
and trains per day etc), nature of goods, operational
responsibilities, and generally a history of involvement.
•
Key individuals: please confirm project leads with
details of relevant experience and track record and role
•
Financing of capital equipment: as set out above it
is proposed that the operator will finance certain items
of capital equipment i.e. cranes. Please confirm, in
principle, your agreement and ability to do so.
understand the opportunity and the operational
requirements, albeit at a level compatible with the
For enquiries please contact:
requirements of this initial EOI stage.
Please arrange through Barry Allen at Savills.
Agents:
Barry Allen 0121 634 8411
ballen@savills.com
•
Design input: please confirm that you are willing to
participate, after short-listing and upto the point of an
appointment of a preferred partner, in design review
and development.
•
Grants: please confirm your experience with,
knowledge of, and views on, the availability and
procurement of grants - both UK and European.
Prologis:
Robin Woodbridge
0121 224 8778
rwoodbridge@prologis.com
Phil Oakley
0121 224 8745
poakley@prologis.com
within the entity.
The deadline for Expressions of Interest is
12 noon 29 April 2016.
Further Information
EOIs should be submitted to:
Barry Allen, Director
Savills
Innovation Court
121 Edmund Street
Birmingham B3 2HJ
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