Port position strategyPieter Struijs, senior executive vice president Port of Rotterdam,Malaysia, 2007

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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

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Structure of RPA

shareholders

Non-Executive Board

Executive Board

Government 25%

Community of Rotterdam 75%

Five members to be appointed by the shareholders

Chairman with chief commercial officer, chief financial officer and chief

operational officer

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Total throughput 1977 - 2006

0

50

100

150

200

250

300

350

400

77 79 81 83 85 87 89 91 93 95 97 99 1 3 5

2006: +1,7 % ▼Unit:x 1 mln. tons

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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

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World’s major ports (2005)

050

100150

200250

300350

400450

Shanghai (1)

Singapore (1)

Rotterdam

Ningbo

Guangzhou

Tianjin

Hong Kong (1)

Nagoya (2)

Qingdao

Dalian

Antwerp

Unit: x 1 million tons (m)

(1) Including rivertrade

(2) Freight tons (1 freight ton = 0,92 metric ton)

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Major European ports (2005)

0

50

100

150

200

250

300

350

400 Unit: x 1 million tons (m)

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0

2

4

6

8

10

12

14

16

18

20 Unit: Number x 1 million TEU’s

(Twenty Feet-Equivalent-Units)

Hong Kong and Shanghai including rivertrade

World’s major container ports (2005)

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Globalisation

Global market both production and consumption transport

Global players:

Global Liners

Global Terminal Operators

Global Forwarders

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Consolidation of the Shipping linesGlobal carriers/Alliances

APLCoscoDSREvergreenHanjinHapag-LloydHyundaiK LineMaerskMOLMSCNedlloydNOLNYKOOCLP&OSea-landUASCYang MingZim

APLCoscoEvergreenHanjin/DSRHapag LloydHyundaiMaerskMOLMSCNYKOOCLP&O NedlloydSea-landUASCYang MingZim

Maersk/Sea-landGrand AllianceNew World AllianceUnited AllianceCHKY AllianceEvergreenMSCZim

19931993 19981998 20032003

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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

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

2001 2002 2003 2004

ma

rke

t s

ha

re

HPH PSA APMT P&O Ports

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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.

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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

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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 Rotterdam’s 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

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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

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Environmental SpaceThe 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 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

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Hinterland strategy

Reachability plan

(from infra thinking to mobility thinking)

Improve infrastructure (road = bottleneck)

Inland hub

Use of modern communication means

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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

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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

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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

OrganizersAgent Forwarder

Facilitators

Customs BankVeterinary Authority

Port Authority

Physical Chain

Shipping Line

Terminal Depot

Barge operator

Rail operator

Road Haulier

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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

Time savings

Faster processes due to

- faster, timely and more accurate information exchange (e.g. Customs declaration)

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)

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 Master’s responsibilities

60 km60 km 40 km40 km

Regulations & Monitoring

Prevention & Incident Control

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Safety

Security Level I

Security Level II

Security Level III

Prevention / Preparation Crisis Management

Harbour Co-ordination Center

Incident Control training Port Security

Rotterdam Port Authority

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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

Schouwen

Maasvlakte

Wassenaar

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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 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

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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

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Disaster / Crisis Management

Units on location

Mayor

Municipal Crisis Staff

strategic

Commanderdisaster management

organisation

Operational Team

tactical

Commander incidentLocation

Incident Location Team

operational

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Contingency plan: Key services

Fire brigade Police

Health service

Rotterdam Port Authority

DCMR (enviromental protection agency), Hazmat / chemical, advisor

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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

Schepen en terminals

Havenbrede beveiliging

Ketenbeveiliging

Ships and terminals

(ISPS)

Port area (EU

Directive)

Supply chain (CSI, C-TPAT,

EU)

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Phase 1: ISPS

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

n = 1

n = 142

Port Security Plan

Port Facility Security Plan

Port Facility Security Plan

Port Facility Security Plan

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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

Port Security Plan

Port Facility Security Plan

Port Facility Security Plan

Port Facility Security Plan

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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 TransportTransport 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 TransportTransport 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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