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INSIGHTS AND CHALLENGES IN FLANDERS AND THE PORT OF ANTWERP

This article explores the goals, challenges, and initiatives of the Port of Antwerp in achieving sustainable growth, mobility, transition, safety, and operational excellence. It also discusses the port's contribution to the United Nations' Sustainable Development Goals (SDGs) and the land concession policy implemented by the port.

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INSIGHTS AND CHALLENGES IN FLANDERS AND THE PORT OF ANTWERP

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  1. EnvironmentalSustainabilitySeaports, Napoli, 25 September 2018 INSIGHTS AND CHALLENGESIN FLANDERS AND THE PORT OF ANTWERP Prof. Dr Ralph De Wit Attorneyat Antwerp, Goemans, De Scheemaecker & De Wit Advocaten University of Brussels (VUB), University of Antwerp (UA), AntwerpMaritime Academy (HZS) Arbitrator at CEPANI, Belgian Centre forArbitrationandMediation Ralph.DeWit@GDSAdvocaten.be, RalphDeWit@skynet.be

  2. Benoît Goemans Laurent De Scheemaecker Ralph De Witbenoit.goemans@gdsadvocaten.be laurent.descheemaecker@gdsadvocaten.be ralph.dewit@GDSadvocaten.be+32 (0) 3 231 54 36 +32 (0) 3 231 67 97 +32 (0) 496 234 069+32 (0) 478 47 29 91 +32 (0) 475 39 01 79 Avoidance and resolution of disputes, drafting of contracts and other instruments of trade and finance, both domestic and international, with emphasis on international sale, leasing, shipping, transport and logistic activities, agency, l/c, financing and securities, insurance, anti-trust (competition) liabilities and recovery of secured and unsecured claims. The firm also has expertise in the field of law and treaty making and in assisting industries in consultations with governments (national and supranational).

  3. Port of Antwerp land concessions as instrument for sustainable development Port of Antwerp goals to 2020: Sustainable growth Mobility Transition Safety and security Operational excellence Flemish Region: logistics development and modal shift GENERAL OUTLINE Page 3 Page 3

  4. PORT OF ANTWERP HINTERLAND Page 4 4

  5. LIMITED IMPACTOF PORT ORGANISATION Page 5 5

  6. GOALS FOR 2020 SUSTAINABLE GROWTH OPERATIONAL EXCELLENCE MOBILITY SAFETY & SECURITY TRANSITION Page 6 6

  7. Sustainable growth Managing and developing sites and infrastructure Ensure that the available sites within the existing port are used as efficiently as possible. Strengthen the cluster and improve sustainable performance of the platform Attract and retain new sources of cargo by expanding presence in the foreland and hinterland Mobility Modal shift (road to more sustainable transport modes for goods and people) Enhancement of sustainable transport mode: pipelines Transition Transition to a circular, low-carbon economy Digital transition PRIORITIES FOR 2020 (1) Page 7 Page 7

  8. Safety & Security Increase safety, security and health of all port employees Business continuity and resilience management implementation => top 5 risk management Proactive policy regarding maritime safety Operational excellence Improved efficiency of the services provided by the Port Authority regarding maritime and infrastructure facilities Improved organisation by integrating data, systems and technologies more closely into operations Improved involvement of all personnel PRIORITIES FOR 2020 (2) Page 8 Page 8

  9. SUSTAINABLE DEVELOPMENT GOALS – SDGs https://www.un.org/sustainabledevelopment/sustainable-development-goals/ Page 9 Page 9

  10. RELEVANT SDGsFOR THE PORT OF ANTWERP Almost 150,000 people are working (directly and indirectly) in the Port of Antwerp. This is important for the companies, for the Belgian economy and for the employees. Keeping a high diversity and number of decent jobs therefore is essential. Furthermore the created added value of the port community is closely linked to the work carried out by all the motivated employees.  Almost 900 companies active in the Port of Antwerp, making it into a leading international industrial, logistic and maritime cluster Cooperation between public and private partners on a local scale is the key issue in the transition towards a more sustainable port and thus the contribution to all SDGs. Essential optimisation on national and global scale of sustainable transition of the global supply chain in which ports play an important role. Port of Antwerp started this in 2010: "Strong through collaboration". Page 10 Page 10

  11. Port of Antwerp is a “landlord” port. It is a privately structured company of public interest which owns parts of the public and private domain (4,000 hectares of soil and 610 hectares of warehouses and shelters) which it may put at the disposal (not: lease) of users through an administrative contract that is essentially precarious, temporary and for payment (Standard Trading Conditions for Land Concessions by the Port of Antwerp, I.1.§3-4). Managing and developing sites and infrastructure may thus be steered and influenced by imposing specific criteria and conditions for operation, taking into account sustainable growth requirements LAND CONCESSION POLICY Page 11 Page 11

  12. DP World Limited v. Kingdom of Belgium (ICSID Case No. ARB/17/21) Based on bilateral investment treaty between BLEU (Belgium-Luxembourg Economic Union) - United Arab Emirates BIT (2004). Indirect shareholding of 60 per cent in the Antwerp Gateway facility, a container terminal at the Port of Antwerp, through a local subsidiary (DP World Antwerp NV). In BelgianParliament, question in writing on 7 December 2017 toForeign Minister Didier Reynders richtte, but answers vague. Port of Antwerp decided to (temporarily) re-allocate 40 hectares occupied by DP World to Maersk and MSC until expansion through new container dock (Saeftinghe) was finished. Unclear what DP World wants to achieve, but costs alone are estimated to be in excess of € 9,000,000… LAND CONCESSION POLICYPOTENTIAL PROBLEMS Page 12 Page 12

  13. EXAMPLE: ZERO PELLET LOSS STIMULATION THROUGH PARTNERSHIPS AND AWARDS Collaborationbetweenindustry, transportsandlogisticsto keep polymere pellets out of environment Page 13 Page 13

  14. PETROCHEMICAL INDUSTRYCO2 EMISSIONS • In 2015 9% more energy efficientthan in 2000 • 20% higherproduction • Changedrelation energy consumptionandproduction Page 14 Page 14

  15. ECLUSE operationalin 2018 Incinerationplants produce annual volume of steamwith maximum capacity of 250 MW Direct use of steam energy generatesannual CO2 savings of 100,000 tonnes (equalto 50 wind turbines) Network designedtogrowandgenerate CO2 savings up tothe equivalent of 100 wind turbines ECLUSE STEAM NETWORK LEFT BANK Page 15 Page 15

  16. MODAL SHIFT – PIPELINES – ACQUISITION OF NAT’L PIPELINE CO Page 16 Page 16

  17. 1.4 million investment byAntwerp Port Authority over 3 years 7 projects: Shift towards rail transport DP-World (-50,000 truck trips) EuroportsInland Terminals (-16,200 truck trips) SlovakShippingand Ports (-6,000 truck trips) Shift towardsbarges Delcatrans (-5,400 truck trips) Port-Liner Holding bv (-23,000 truck trips) (hybridbarges) Danser (-26,000 truck trips) More efficientroad transport Hakka NV (-120,000 truck trips) RESULT: reduction of 250,000 truck trips per year MODAL SHIFT: AWAY FROM TRUCKS Page 17 Page 17

  18. What is OPS? Supply of power from onshore (port) to ship. Allows ships to turn off their engines when in port. OPS is known in industry by a variety of names including: Cold ironing system Alternative Maritime Power (AMP) Shore side electricity Shore power TRANSITION – ON-SHORE POWER SUPPLY Page 18 Page 18

  19. If all seagoing and inland ships in European harbours would use SSE by 2020 for covering their energy demand at berth, they would consume 3,543 GWh annually, which is approximately 0.1% of the electricity consumption in Europe as a whole in 2012. Furthermore, SSE offers the potential to mitigate 800,000 tons of CO2 emissions (source Ecofys studyAllbased on voluntary cooperation of logistics companies A cruise vessel (12 MW – maximum deliverable power) emits during 8 hours 1.2 t NOx, equivalent to 10,000 cars 30 kg particulate matter (PM), equivalent to 6,000 cars Active SSE installation in Antwerp (inland navigation) saves more CO2 than entire Low Emission Zone in city ON-SHORE POWER SUPPLY Page 19 Page 19

  20. IMO Regulations Regulation 13, Nitrogen Oxides (NOx) of Annex VI to the MARPOL Convention Regulation 14, Sulphur oxides (SOx) and particulate matter of Annex VI to the MARPOL Convention EU SULPHUR DIRECTIVE (2012/33/EU) DIRECTIVE 2014/94/EU ON THE DEPLOYMENT OF ALTERNATIVE FUELS INFRASTRUCTURE (AFI DIRECTIVE) ON-SHORE POWER SUPPLYREGULATORY BACKGROUND Page 20 Page 20

  21. On-shore Power Supply best means to mitigate local vessel emissions Competitive advantage can be achieved for both port and vessel company Proactive approach 1 OPS-ready quay, 1 OPS installation All (re)new(ed) quays are being/will be made OPS-ready Until now: “pioneer’s punishment” ON-SHORE POWER SUPPLYPORT OF ANTWERP Page 21 Page 21

  22. Manyprojectsinvolvingsustainability, logisticsflows, warehousing, circulareconomy Allbased on voluntary cooperation of logistics companies Lean & Green Project since 2012 – originating in the Netherlands, generalplansfor companies to save CO2 in logisticsactivities VIL assists companies Ifimplementation of plan leads to 20% savingsthe company obtains a “Lean & Green Star” 70-80 companies have gonethroughtheprocess FLEMISH LOGISTICS INSTITUTE (VIL)LEAN & GREEN Page 22 Page 22

  23. VIL wants to help companies toassesstheirgeneralsustainability performance bycreating a benchmark thatwillenablethemto set up improvementprogrammes, a kind of World Logistics Performance Index but gearedtowardssustainability Initiated in December 2017 for a period of 2 years Relevant criteria (inter alia): energy consumptionand efficiency, emissions (CO2 , NOx, particulate matter, …), impact on mobility (congestion, traffic safety…), noisepollution, consumption of rawmaterials, waste (collection, prevention, recycling, packaging, …) FLEMISH LOGISTICS INSTITUTE (VIL)LOGISTICS SUSTAINABILITY INDEX Page 23 Page 23

  24. MANY THANKS TO: The organisers of this conference Mr Eric Dedeckere, CSR Manager Port of Antwerp Mr Steve Sel, Flemish Logistics Institute (VIL)

  25. SO… ? Do you have any questions? ? ? Page 25 Page 25

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