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

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

Structure of RPA Government 25% Community of Rotterdam 75% 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

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

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

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

Major European ports (2005) Unit: x 1 million tons (m) 17062005/H. Gillet

World’s major container ports (2005) Unit: Number x 1 million TEU’s (Twenty Feet-Equivalent-Units) Hong Kong and Shanghai including rivertrade 12042006/H. Gillet

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

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 P&O Sea-land UASC Yang Ming Zim 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

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

Global terminal operators

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.

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

Rotterdam port positioning strategy More space Hinterland strategy Port Community system Reliable port

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

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

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

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

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

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 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.

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

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

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

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

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

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

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

Advantages Operational costs  Sales / turnover  Service levels  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 

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

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)

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

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

Harbour Coordination Center

Traffic control at Harbour Coordination Centre (HCC)

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

RDF Wassenaar Maasvlakte Schouwen

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

Division Harbour Master Rotterdam

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

Operational safety in 3 departments Traffic Management Traffic 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)

VTS - Traffic Centres Hoek van Holland Botlek City

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

Noxious and Dangerous Goods Dept.

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

Port Operations Control Patrol vessels

Port Operations Control Patrol vessels Escort shipping traffic Inspect nautical infrastructure Enforce Port Bye-laws Incident response

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

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

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

Port of Rotterdam Area managed by PoR, responsible for safety and security

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

Phase 1: ISPS Port Security Plan terminal operators & shipping lines (from July 1st 2004) Port Security Plan Port Facility Security Plan n = 1 n = 142

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

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

Phase 2: Port Area Security (EU directive) authorities + all port companies Port Security Plan Port Facility Security Plan n = 1 n = 142

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)

Overarching Port Security Plan Scenario development Connection with crisis response organisation Objects analysis & measures Rapid Response Teams Port Key Integration with VTM

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

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

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

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

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)