Public Private Participation William Demoor 10 th July 2015

1 Introduction to the port of Antwerp 2

Development of the port River Scheldt Road infrastructure Border Port area Before the 19th century: Old river port 1811 – 1930: Renovation of old port and expansion to the north as far as the Van Cauwelaert lock 1951 – 1965: Marshall Plan, construction of the petroleum port and expansion of docks as far as the Dutch border 1970 – 2000: expansions until the turn of the century : Recent developments

Facts & Figures: Cargo handling mio ton Break -bulk 14 mio ton Liquid bulk 63 mio ton Dry bulk 14 mio ton Con- tainers 108 mio ton 2nd European port 1. Rotterdam 2. Antwerpen 3. Hamburg Balanced import and export flows Million tons of maritime traffic

Volatility in world trade 5 Major disruptions with an important impact on world trade: -Financial crisis, Eurocrisis, Monetary policies Central Banks -Geopolitical crisis: e.g. Ukrain, Middle East -Shifts in the energy market: shale gas, Fukushima,…. -New trade routes, new alliances (O3, G6, M2,…), Source: ITMMA and ING

6 Economic and trade growth in the Eurozone vs. throughput growth in the Port of Antwerp 6 The two growth segments (containers and liquid bulk) are expected to keep on developping. The port of Antwerp shows similar evolutions to the Eurozone (slightly more extreme).

2 Towards a pro-active landlord 7

Port authority as enabler and facilitator of sustainable growth Services & tools port Landlord port Pro-active landlord port Time Size New sustainable growth path Ad hoc, re-active, competitive approach Integrated, pro-active, collaborative approach

Port Authority (public) Management of territory: investments concessions Management of Infrastructure: docks, quays bridges, locks land Trade facilitation Vessel traffic management Marketing & Branding Port companies (private) Management of superstructure: terminals cranes equipment warehouses Handling of the cargo Landlord model : Successful cooperation 9

The Antwerp Port Authority is an autonomous body, managing Infrastructure –docks –bridges –locks –quays –land Vessel traffic in the port Trade facilitation Marketing & branding activities Organisation in the Port of Antwerp 10

The private companies manage superstructure and operate the terminals: –terminals –cranes –equipment –Warehouses More efficiency in spending public money and increase in expertise. A landlord port 11

-What is a Concession in the European context -Tendering procedures -Key factors of negotiation:  Duration - Investments  Price  Productivity clauses: efficient use of space, tonnage obligations Concession Policy 12

3 Concessions 13

Landlord Port The port of Antwerp is a landlord port. The port authority owns most of the port grounds and administrates the infrastructure. Concession ‘an administrative contract by which a public authority grants a private partner the right of use of a part of a public good (e.g. public domain) for a given time’ Concessions - introduction 14

Basic principle: principle of equality (good governance) Tendering:  public  objective  transparent Concessions - allocation 15

Tendering procedure: - Main focus = kind of activity, employment, traffic generation, added value, investments,… ǂ maximising profit for the port authority - How?: decision is based upon objective criteria Concessions - allocation 16

17 Value added Logistics Industry Cargo handling Realising unique synergies

Case : Churcill Industrial Area 18

-Financial: PPP means enough financial means for core business Concessions - prices 19 Private FinancingPublic Financing

Parameters for Price setting  Location (quay/land)  State of grounds (paved/unpaved)  Nature of planned activity (traffic generating activities / services to traffic generating / other services) Specific tariffs for: Private parking facilities Concessions - prices 20

-Port dues /revenues of the exercise of the port management competences and other activities. -Investments/financial responsibility of the Flemish Region : the construction, the maintenance and operation of the maritime gateways and the basis infrastructure of the port (except port internal basis infrastructure, e.g. the docks). -Subsidies by the Flemish Region (specific Executive Orders by the Flemish Government): e.g. for the maintenance of the sea locks, for investments in port internal basis infrastructure and equipment infrastructure (e.g. commercial mooring facilities for transshipment). If the port managerial competencies are not exercised in conformity with the Port decree, the subsidies can be withdrawn /recovered. Financing of the port authority 21

Revenues Antwerp Port Authority 22

Determination of the term of the concession agreement based on following criteria:  Planned investment in real estate  Decisive factors for activities on the quay: Quality of the project Planned lay-out/efficient use of space Projected traffic generation Concessions - terms 23

Maximum duration of 40 years (maritime) / 30 years (services) Duration linked with investments/m² Table of investmentsDuration Investment >= 375 EUR/m² builded surface40 ans 225 EUR/m² <= investment < 375 EUR/m² builded surface 35 ans 175 EUR/m² <= Investment < 225 EUR/m² builded surface 30 ans 150 EUR/m² <= Investment < 175 EUR/m² builded surface25 ans 125 EUR/m² <= Investment < 150 EUR/m² builded surface 20 ans 100 EUR/m² <= investment < 125 EUR/m² builded surface 15 ans 25 EUR/m² <= Investment < 100 EUR/m² builded surface 10 ans 0 EUR/m² <= Investment < 25 EUR/m² builded surface trimestre Concessions - terms 24

Special clauses to stimulate productivity :  Efficient use of space  Minimum tonnage  Use of modern technologies for container handling Concessions - productivity 25

Case: Deurganckdok 26

Existing measures Use of modern technologies for container handling (e.g. stacking) Obligation to inform the port authorities about the planned lay-out, the handling techniques, the projected traffic etc. New measures Special clause regarding to an efficient use of space  Evaluation every five year  Possibility to add special clauses to enhance efficient use of space Concessions - efficient use of space 27

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