Port position strategy

1. Port position strategy Pieter Struijs, senior executive vice president Port of Rotterdam, Malaysia, 2007

2. Objectives Rotterdam Port Authority • To promote economical activities • To arrange for nautical and maritime order, safety and security The Port Authority aims to carry out its activities to achieve these objectives in a socially responsible way

3. Structure of RPA Community of Rotterdam 75% Government 25% shareholders Five members to be appointed by the shareholders Non-Executive Board Chairman with chief commercial officer, chief financial officer and chief operational officer Executive Board

4. Total throughput 1977 - 2006 2006: +1,7 % ▼ Unit: x 1 mln. tons

5. Throughput in Rotterdam, 2006 Total throughput: 376,6 million tons Dry bulk cargo: 87,4 million tons Liquid bulk cargo: 175,8 million tons Containers (almost 10 TEU): 94,2 million tons Other general cargo: 19,2 million tons

6. World’s major ports (2005) Unit: x 1 million tons (m) (1) Including rivertrade (2) Freight tons (1 freight ton = 0,92 metric ton)

7. Major European ports (2005) Unit: x 1 million tons (m)

8. World’s major container ports (2005) Unit: Number x 1 million TEU’s (Twenty Feet-Equivalent-Units) Hong Kong and Shanghai including rivertrade

9. Globalisation • Global market both production and consumption transport • Global players: • Global Liners • Global Terminal Operators • Global Forwarders

10. Consolidation of the Shipping lines APL Cosco DSR Evergreen Hanjin Hapag-Lloyd Hyundai K Line Maersk MOL MSC Nedlloyd NOL NYK OOCL P&O Sea-land UASC Yang Ming Zim Global carriers/Alliances APL Cosco Evergreen Hanjin/DSR Hapag Lloyd Hyundai Maersk MOL MSC NYK OOCL P&O Nedlloyd Sea-land UASC Yang Ming Zim Maersk/Sea-land Grand Alliance New World Alliance United Alliance CHKY Alliance Evergreen MSC Zim 1993 1998 2003

11. Global carriers Key issues: • carriers entering terminal operations(better control and higher margins) • dedicated terminals • focus on hinterland transport • establishing own forwarding companies for maritime transport

12. Global terminal operators

13. First conclusions • Rapid changes in port societies • Dedicated terminals and tariffs under pressure • Only with big investments operators could be tighten to a port • Increase of efficiency (and partnership?) to meet with the grow of transport • Ports have to reorganize so that they are able to meet the challenge.

14. Changing ports • Facilitator / partner in port industry development (port manager) • Joint Ventures for infrastructure development (Multicore pipeline) • Pro-active account management and acquisition strategy • Wider financial mandate

15. Rotterdam port positioning strategy • More space • Hinterland strategy • Port Community system • Reliable port

16. More space • More container capacity • Co-siting • Environmental space • Turn-around time

17. Facilitate New Terminal Capacity • Investment Programme ECT Delta • Extension APM Terminal Rotterdam • New Euromax Terminal • Maasvlakte 2 Maasvlakte 2

18. New Land Reclamation Port of Rotterdam in need of S P A C E Construction of Maasvlakte 2 reinforces the Port of Rotterdam’s position and quality

19. Co-siting advantages (1) efficiency increase in use of: • area • feedstock/ base materials • energy and utilities • area facilities and infrastructure

20. Co-siting advantages (2) • more synergy between parties • less waste / rest products • contribution to the environment • contribution to the sustainability policy of R3 • lower investment costs • lower operating costs • optimalization of employment options

21. E Environmental Space The port of Rotterdam is unique in the world because it encompasses three residential areas: Heijplaat, Pernis and Rozenburg. That in itself is a sign of good behaviour on the part of the port community. Port of Rotterdam’s aim is to both strengthen the economy and improve the qualityof life in the Rijnmond area. That is why the Port of Rotterdam forms part of a partnership of 23 public and private parties, set up to achieve this dual objective. One of the projects is the creation of 750 hectares of new land for nature and recreational purposes, linked with the construction of new port sites. The locations of the new nature reserves are immediately to the south of Rotterdam and on the northern edge of the city.

22. Turn-around time Improve efficiency of nautical services by • VTS Future • Risk analysis • Admittance policy

23. Hinterland strategy • Reachability plan (from infra thinking to mobility thinking) • Improve infrastructure (road = bottleneck) • Inland hub • Use of modern communication means

24. Reachability Plan • From infra thinking to mobility thinking • Integral vision on rechability of port and industrial site • Relationship between all modalities • Most important problems on the road

25. Improve infrastructure, road = main bottleneck • More and more congestion problems • Infrastructural bottlenecks need to be solved • Long distance international road transport shifts towards inland barge and rail • However, Road transport will always be needed for short distance and before & aft transport

26. Inland hub • Container capacity • Modal shift • Air pollution • Dedicated barge services • Stack of 500.000 TEU

27. The Port infolink Community All Rotterdam port players in the logistics chain involved Agent Forwarder Organizers Physical Chain Barge operator Shipping Line Terminal Depot Rail operator Road Haulier Port Authority Veterinary Authority Customs Bank Facilitators

28. Why do we need a Port Community System? • What customer wants • paperless communication • timely and fast information exchange • simple planning facility • What customer gets • cost reduction • operational efficiency • better use of assets • information management

29. Advantages • Service level improvement • Faster releases (Customs / commercial) • More, accurate, reliable and real-time status information and planning • Less mistakes • One-stop-shop (no bilateral systems) • Time savings • Faster processes due to • faster, timely and more accurate information exchange (e.g. Customs declaration) • Workforce / productivity savings • From ‘problem solving’ to control • Less data retyping • Less telecommunication, paper and courier costs • Efficient communication with public bodies (Customs, Veterinary Authority, RMPM, ...) Operational costs  Sales / turnover  Service levels 

30. Reliable port • Safety: accident prevention • nautical: vessel traffic management • environmental: loading/unloading, bunkering, repair jobs • Security: crime prevention • theft • smuggling • illegal immigration • terrorism

31. Reliable port (2) • Multidisciplinary co-operation • Rotterdam Port Authority • Regional Fire Brigade (& Company Fire Brigades) • Customs • Seaport Police (& Coast Guard, Royal Netherlands Navy) • Deltalinqs (Industrial & Logistic Employers’ Association) • Public Health Service • DCMR (Environmental Protection Agency)

32. Port of Rotterdam • Harbour Master’s responsibilities 60 km 40 km Regulations & Monitoring Prevention & Incident Control

33. Safety Harbour Co-ordination Center Rotterdam Port Authority Incident Control training Port Security

34. Harbour Coordination Center

35. Traffic control at Harbour Coordination Centre (HCC)

36. Traffic Control (HCC) • Admission policy of seagoing ships • Long term planning of shipping traffic • Implementation of policies, regulations and procedures • Data flow in Data Handling System • Coordination between nautical services, customers, other ports • Emergencies, calamities

37. RDF Wassenaar Maasvlakte Schouwen

38. Public Seaport Police Customs / Immigration State Port Control other VTS Authorities Private Pilots organization Royal Agency Dirkzwager Shipping agencies Tughandling Linehandling Other key users of (part of) the Data Handling System

39. Division Harbour Master Rotterdam

40. Harbour Master’s mission • Safe, smooth & environmentally responsible shipping • optimize shipping traffic and shipping related activities in a client oriented way within the boundaries of public law

41. Operational safety in 3 departments • Traffic ManagementTraffic Control (HCC)VTS (Traffic Centres) • Noxious and Dangerous Goods(Dangerous Goods Control Center and motorised inspection teams) • Port Operations Control(a.o. patrol vessels, bridges, locks)

42. VTS - Traffic Centres Hoek van Holland Botlek City

43. Vessel Traffic Service (VTS)IMO compliant • Monitor traffic and environment • Supply traffic information • Regulate traffic • Enforce traffic and environment rules

44. Noxious and Dangerous Goods Dept.

45. Noxious and Dangerous Goods Dept. • Dangerous Goods Control Center (HCC) • Monitor dangerous goods handling • Monitor waste handling • Mobile inspection teams • Enforce Port Bye-laws

46. Port Operations ControlPatrol vessels

47. Port Operations ControlPatrol vessels • Escort shipping traffic • Inspect nautical infrastructure • Enforce Port Bye-laws • Incident response

48. Disaster / Crisis Management Mayor strategic Municipal Crisis Staff Commander disaster management organisation tactical Operational Team Commander incident Location operational Incident Location Team Units on location

49. Contingency plan: Key services Rotterdam Port Authority Fire brigade Police DCMR (enviromental protection agency), Hazmat / chemical, advisor Health service

50. What to protect • Port area: 10.500 ha = 26.000 acres • Quay length: 80 km = 50 miles • Seagoing ships / yr: 30.000 • Inland barges / yr: 130.000 • City of Rotterdam • NL and EU economy