APPENDIX 1: SERVICE DESCRIPTION Public transport in Greenland Internal transportation on the basis of service contracts The Government of Greenland Ministry of Housing, Building and Infrastructure PO Box 909 3900 Nuuk, Greenland 2016 April 2012 TABLE OF CONTENTS 1. INTRODUCTION TO TRANSPORT ASSIGNMENTS 1 2. VISION FOR IMPLEMENTATION OF ASSIGNMENTS 2 3. EXISTING INFRASTRUCTURE 4 4. GENERAL TERMS AND CONDITIONS FOR TRANSPORTATION 7 5. SPECIFIC TERMS AND CONDITIONS FOR INDIVIDUAL TRANSPORT ASSIGNMENTS 14 in LIST OF APPENDICES Sub-appendix 1.1: List of airport directors Sub-appendix 1.2: Supplementary information on infrastructure Sub-appendix 1.3: List of Mittarfeqarfiit’s hangar facilities Sub-appendix 1.4: List of ticket, mail and freight rates as of 2016 Sub-appendix 1.5: Excerpt of reporting for 2015 for Qaanaaq District Sub-appendix 1.6: Excerpt of reporting for 2015 for Upernavik District Sub-appendix 1.7: Excerpt of reporting for 2015 for Uummannaq District Sub-appendix 1.8: Excerpts of reporting for 2015 for Disko Bay Region, summer Sub-appendix 1.9: Excerpt of reporting for 2015 for Disko Bay Region, winter Sub-appendix 1.10 Excerpt of reporting for 2014 for Central West Greenland Sub-appendix 1.11: Current timetables for Central West Greenland Sub-appendix 1.12 Excerpt of reporting for 2015 for South Greenland Sub-appendix 1.13 Excerpt of reporting for 2015 for Tasiilaq District Sub-appendix 1.14 Excerpt of reporting for 2015 for Ittoqqortoormiit District Sub-appendix 1.15 Excerpt of reporting for 2015 for Nerlerit Inaat and Qaanaag ii 1. INTRODUCTION TO TRANSPORT ASSIGNMENTS The Government of Greenland, by publicising the government order of a call for tenders on [insert date] both in the Official Journal of the European Union and on http://www.businessingreenland.gl/da/Udbud/Kommende-udbud, has launched a tender process concerning public transportation of passengers, mail and freight with the aim of entering into service contracts to come into effect on 1 January 2017, when the current contracts expire. The assignments concerns public transportation by airplane, ship and/or helicopter of passengers including their baggage, as well as transportation of mail, as prescribed by Act No. 3 passed by the Inatsiartut (Parliament of Greenland) on 15 April 2011, and of freight. Since the Government of Greenland has a separate service contract concerning shipping of freight, the service contracts to be tendered for will, in principle, only encompass a minor share of total demand for freight in Greenland, albeit a significant share of the payload by air. The assignments encompass transportation within the regions of, respectively, North and East Greenland, as well as transportation within the districts of Qaanaaq, Upernavik, Uummannaq, Disko Bay Region, Central West Greenland, South Greenland, Tasiilaq and Ittoqqortoormiit. Notwithstanding the changes ocurred in the classification of transport assignments compared to how these have previously been put out to tender, the Government of Greenland has chosen to maintain the numbering of transport assignments that was applied in the call for tenders in 2014. Due to elections being called for the Inatsiartut (Parliament of Greenland), the tendering process was annulled and the existing service contracts with the current operators Air Greenland, Arctic Umiaqline, as well as Disko Line, were extended until the end of 2016. It must be mentioned that search and rescue flights are not covered by this call for tenders, since this area pertains to the Danish state, Ministry of Defence. The transportation to be tendered for is divided into the following separate transport assignments, all of which are for year-round service. Area I Transport assignment 1: Qaanaaq Transport assignment 2: Upernavik Transport assignment 3: Uummannaq 1 Transport assignment 10: North Greenland (Qaanaaq-Upernavik) Area II Trafikopgave 4/5: The Disko Bay Transport assignment 6: Central West Greenland Transport assignment 7: South Greenland Area III Transport assignment 8: Tasiilaq Transport assignment 9/11: Ittoqqortoormiit General conditions for carrying out transport assignments are described below in section 4. Each transport assignment, with corresponding destinations and terms and conditions, is detailed below in section 5. 2. VISION FOR IMPLEMENTATION OF ASSIGNMENTS The Government of Greenland has identified the following visions, which will guide the tendering process and selection of operators : Basic vision: As much transport as possible for the money The Government of Greenland focuses on subsidising the most economically efficient mode of transport, as there is no preference for any particular type. Thus, it is conceivable that a combination of several modes of transport (e.g. helicopter, airplane and ship) used simultaneously may provide the most convenient and flexible solution for a given assignment that gives the most transport for the money. It is also conceivable that, in some areas, a ship can be used in the summer and a helicopter in the winter. Up-to-date service The Government of Greenland wishes to enter into contracts with operators who are capable of delivering an efficient service that is up-to-date both as regards the transport provided and the equipment used. It should also be possible to continuously develop and innovate the service. 2 Coherence of transport Simple ticket handling and optimal connectivity between different modes and suppliers of transport. Transparent reporting The transport subsidy allocations should be spent partly on ensuring public transport to specific towns and villages, and partly on helping to reduce ticket prices. Regardless of the function of the subsidy, it is an essential priority to have transparency regarding costs associated with the operators’ performance of the service contracts. Prices should be closely linked to actual costs. Accordingly, when assessing operators’ pricing of the contracts tendered for, focus will be on the breakdown of costs into, respectively, capacity costs (fixed operational costs, FOC) and variable costs (direct operational costs, DOC), as well as on capacity utilisation in, respectively, subsidised and non-subsidised public transport. Open books and risk sharing The Government of Greenland wishes to enter into service contracts with a good balance between the parties’ responsibilities, including an appropriate balance between the operator’s costs incurred and subsidy received. Accordingly, attention will be paid to seeking to place responsibilities and risks with the party most capable of handling the matter appropriately for the benefit of both parties. Supply security and reliability Since is is important that an operator is able to carry out a transport assignment awarded to it, the tendering process will focus on the operator’s capacity both financially and technically. As regards the equipment used, importance will be attributed to the operator’s maintenance procedures and backup equipment. Corporate social responsibility (CSR) The assessment will set store on the extent to which the operator has a business model that promotes local employment and develops the competence of staff. In addition, importance will be attributed to addressing environmental concerns, such as the reduction of CO2 emissions by using up-to-date equipment. Incentives to operate flights to difficult destinations Since service contracts are required to encompass all destinations for a given transport assignment, the draft contract contemplates an incentives model that promotes implementation of the necessary transportation, including to destinations with difficult access (e.g. due to weather conditions and other factors). 3 3. EXISTING INFRASTRUCTURE 3.1 In general The Government of Greenland places existing harbour facilities, airports, heliports and helistops at the operators’ disposal at the rates and with the payment requirements in force, and as agreed with Mittarfeqarfiit (Greenland Airports). Mittarfeqarfiit is responsible for managing these infrastructure facilities (does not apply to state tasks, which are undertaken by the Danish Transport and Construction Agency). Relevant information about these facilities, including opening hours and rates regulations, is available at www.mit.gl. Information about current airport directors is provided in sub-appendix 1.1. Further relevant information in terms of AIP (Aeronautical Information Publication) for Greenland’s airports and heliports is available at the website http://aim.naviair.dk/. Information on the website is kept up-to-date, although the actual size of the touchdown and lift-off area (TLOF) and of the final approach and takeoff area (FATO), which is indicated as being the same for three heliports in South Greenland, diverges from the AIP data in the following manner: Narsaq Heliport (BGNS) is said to be 60x20m in the AIP. It is now a circle with a radius of 9.0m. According to the AIP, Qaqortoq Heliport (BGJH) is a circle with a radius of 15m. The radius now measures 11.5m. Nantortalik Heliport (BGNS) is said to be 60x20m in the AIP. It is now a circle with a radius of 9.0m. For information on weight limits for heliports, please see BL 3-8 (issued by the Civil Aviation Administration Denmark): “Bestemmelser om etablering og drift af helikopterflyvepladser” [Provisions on establishment and operation of heliports], which is available at: http://selvbetjening.trafikstyrelsen.dk/civilluftfart/Dokumenter. Supplementary information about facilities is provided in sub-appendix 1.2. The