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
Worlds 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
Worlds major container ports (2005)
Unit Number x 1 million TEUs (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

• Global carriers/Alliances

APL Cosco DSR Evergreen Hanjin Hapag-Lloyd Hyundai
K Line Maersk MOL MSC Nedlloyd NOL NYK OOCL PO S
ea-land UASC Yang Ming Zim
APL Cosco Evergreen Hanjin/DSR Hapag
Lloyd Hyundai Maersk MOL MSC NYK OOCL PO
Nedlloyd Sea-land UASC Yang Ming Zim
Maersk/Sea-land Grand Alliance New World
Alliance United Alliance CHKY Alliance Evergreen M
SC 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

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Global terminal operators
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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

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More space

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

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Facilitate New Terminal Capacity

• Investment Programme ECT Delta
• Extension APM Terminal Rotterdam
• New Euromax Terminal
• Maasvlakte 2

Maasvlakte 2
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New Land Reclamation

• Port of Rotterdam in need of S P A C E
• Construction of Maasvlakte 2
• reinforces the Port of Rotterdams position and
  quality

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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
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 Rotterdams aim is to
  both strengthen the economy and improve the
  quality of 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.
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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

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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
Customs
Bank
Veterinary Authority
Port Authority
Facilitators
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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

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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 ?
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Reliable port

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

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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)

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Port of Rotterdam

• Harbour Masters responsibilities

60 km
40 km
Regulations Monitoring Prevention Incident
Control
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Safety
Harbour Co-ordination Center
Rotterdam Port Authority
Incident Control training
Port Security
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Harbour Coordination Center
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Traffic control at Harbour Coordination Centre
(HCC)
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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

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RDF
Wassenaar
Maasvlakte
Schouwen
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Other key users of (part of) the Data Handling
System

• Public
• Seaport Police
• Customs / Immigration
• State Port Control
• other VTS Authorities

• Private
• Pilots organization
• Royal Agency Dirkzwager
• Shipping agencies
• Tughandling
• Linehandling

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Division Harbour Master Rotterdam
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Harbour Masters mission

• Safe, smooth environmentally responsible
  shipping
• optimize shipping traffic and shipping related
  activities in a client oriented way within the
  boundaries of public law

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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)

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VTS - Traffic Centres
Hoek van Holland
Botlek
City
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Vessel Traffic Service (VTS)IMO compliant

• Monitor traffic and environment
• Supply traffic information
• Regulate traffic
• Enforce traffic and environment rules

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Noxious and Dangerous Goods Dept.
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Noxious and Dangerous Goods Dept.

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

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Port Operations ControlPatrol vessels
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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
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Contingency plan Key services
Rotterdam Port Authority
Fire brigade
Police
DCMR (enviromental protection agency), Hazmat /
chemical, advisor
Health service
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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

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Port of Rotterdam

• Area managed by PoR, responsible for safety and
  security

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Port Security in three phases
Supply chain (CSI, C-TPAT, EU)
Port area (EU Directive)
Ships and terminals (ISPS)
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Phase 1 ISPS

• terminal operators shipping lines
• (from July 1st 2004)

n 1
n 142
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Port Facility Security Toolkit

• Web-application providing on-line assistance for
  terminals in completing both risk analysis and
  PFSP
• The toolkit ensures
• Full compliance
• Uniformity
• Efficiency
• Confidentiality

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All elements of ISPS are addressed in the Toolkit

• Access to the Port Facility
• No Access or Restricted Areas
• Monitoring the Port Facility
• Cargo Handling
• Ships Stores
• Unaccompanied Luggage
• Measures and procedures determined by risk
  assessment

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Phase 2 Port Area Security (EU directive)

• authorities all port companies

n 1
n 142
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Phase 2 Port Area Security

• EU Directive in preparation
• Complete coverage of designated Port Area
• Key infrastructure (road, rail, power grid, etc)
• Chemical industry, distri-areas, pipelines
• Same methodology as ISPS
• Risk Analysis
• Port Security Plan
• 3 Security Levels
• Early implementation in Rotterdam (in 2006)

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Overarching Port Security Plan

• Scenario development
• Connection with crisis response organisation
• Objects analysis measures
• Rapid Response Teams
• Port Key
• Integration with VTM

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Rapid Response Teams Sea Port Police and Port
Authority

• Shared water-borne surveillance
• Information exchange
• Special Security Inspections by Sea Port Police
  upon request PSO

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Port Key

• Introduction of universal identification card for
  efficient terminal access (control)
• Biometric capabilities (or electronic / visual )
• For frequent visitors
• Service providers (Pilots / Suppliers / )
• Inspectors (RPA, Customs, )
• PFSO remains responsible

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Phase 3 supply chain security authorities
(worldwide) companies

• EU initiatives
• EU Consultation paper
• Plans for Directive on Freight Transport Security
• Research programs

Shipper
Port A
Port B
Buyer
Transport
Transport
Transport
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Phase 3 supply chain security authorities
(worldwide) companies

• In Rotterdam
• C-TPAT many shipping lines participate
• CSI US Customs officials stationed in Rotterdam
• 24 hour Manifest rule
• Customs X-ray scanners
• Radiation detection gates

Shipper
Port A
Port B
Buyer
Transport
Transport
Transport
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Policy of the Port of Rotterdam

• Phase 3 consistent with phases 1 and 2(no
  overlap)
• Development of secure AND efficient lanes
• Information management and technology
• Important role for Customs
• Secure actors
• On voluntary basis (incentives)
• Regulations only when necessary (high threat
  cargo)

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