Strategic Planning of Port Infrastructure

Marc EvertsePort of Rotterdam International

Brasilia, 25th of November 2008

Example of infrastructure development:the Port of Rotterdam

1800 - 1900

1400 - 1800

1800 - 1900

1920 - 1940

1946 - 1960

1960 - 1970

1970 – 2015

2015

Classification of ports

First generation – classical type, only cargo handling

Second generation - plus industry cluster within port limits

Third generation - plus logistic/ distribution services

Generation determines the character of a port, not the size

Each generation requires different infrastructure

Indispensable elements of strategic port planning

Traffic forecasting

Space / clustering

Hinterland connections

Organisation

Environment

Employment / added value

Example of strategic port planning: Maasvlakte 2 project

Maasvlakte 2 project

The reason:

Long term supply/demand outlook

The design

Technical features of MV2 project

The construction

Construction tendering process

The exploitation:

Commercial procedure

Forecast vs realisation

Container handling Rotterdamrealisation vs forecasts

4,00

5,00

6,00

7,00

8,00

9,00

10,00

11,00

12,00

13,00

14,00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

mln

TEU realisation

V2020 - DE

V2020 - GCN

MLT-forecasts

Functional specifications (1)

Gross area 2,000 ha

Net area 1,000 ha

A 20% increase in port area in the Port of Rotterdam

Use of area for economic activities:

Containers: 620 ha,

Distribution: 170 ha

Chemicals: 210 ha

Managed and financed by the Port of Rotterdam;

shareholders are the Dutch government and the

Municipality of Rotterdam

Functional specifications (2)

Design vessel 12.500 TEU

Modal split; 35% road, 20% rail, 45% barge

High productivity figures

Area productivity 27.500 TEU/ha/year

Berth productivity 1.500 TEU/m/year

Design philosophy

Flexibility, flexibility and flexibility to cope with the expected changes in port business during the development period of the project (up to 2035)

Make the choices that have to be made right now, leave the rest to be decided in a later stage

Phased development. Construct outer contour. Phased reclamation and infrastructure development based on client demand

Fixed budget, required IRR

Research, waves and currents

Golfhoogte- en golfrichtingverdeling tijdens NW 8 Bft. De oranje kleur geeft een golfhoogte van ca. 5.5 m aan, de kleur blauw golven tot ca. 1 m.

Golfhoogte- en golfrichtingverdeling tijdens NW 8 Bft. De oranje kleur geeft een golfhoogte van ca. 5.5 m aan, de kleur blauw golven tot ca. 1 m.

Research: manoeuvering simulator tests

Phased development MV2

MV2 market demand in relation to MV2 supply

-2468

10121416

2014

2016

2018

2020

2022

2024

2026

2028

2030

MV2 market demand MV2 supply

84

6767

77

81

81

81

90

2014 2020 2025 2030

MV2 Market demand (mln teu) 0,7 3,8 8,7 14,1

Tender process - objectives

Finance

Better prices, better conditions, less risk

Investigate customers Business Case

Strategy and marketing

Additional cargo, more competion, captive cargo

Sustainability

EMS, Modal split, security

Technical

Quality of handling, flexibility of operation

Landlord portDivision of responsibilities

Port of Rotterdam

Nautical entrance, fairway and management

Terminals, sites, quaywalls, public infrastructure, rail, road and utilities upto the boundary

Management and maintenance

Private company

Superstructure, cranes, rolling equipment, buildings, staff, computer systems, gate

Management and maintenance

Maasvlakte 2 land reclamation extension

the last one?

Port of Rotterdam InternationalMain objective: participations

Focussing on participation in (new) ports in countries of strategic interest (f.i. BRIC countries)

Participation in the form of a Port Management Company with local authorities and private companies as partners

No terminal operations

Provision of infrastructure, nautical safety and environment

Acquisition of industry and terminal operators

Long term planning

Second objective: ‘boardroom’ consultancy

Provision of strategic “boardroom” consultancy in countries of interest:

Long-term relationship with local government

Strategic advice on port development

Provision of second opinion

Supporting PoR’s commercial objectives: enhancement of cargo flows between Rotterdam and certain countries/regions

Oman: Port of Sohar

Rotterdam

Sohar

Port of Sohar 2002

Port of Sohar 2007

Regulates according to Good International Practices

Attracts world-class operators

Facilitates common services

Leases land, jetties and quays

Provides infrastructure

Encourages clusters

Facilitates training & human resource development

SIPC as a LANDLORD

Markets the Port

And industrial area

Support community

Port of Sohar

Port of Soharindustrial cluster

Port of Sohar - SEZ

Port of Rotterdam Internationalnew opportunities

India – Port West in Gujarat

Brazil – Port of Suape in Pernambuco

Malaysia – Port of Lahad Datu in Sabah

Brazil - Port of Suapecharacteristics

‘brownfield’ port

Deep water (16-18 m)

Ample space: 3000 additional port area

Good hinterland connections

Much interest from heavy and light industry

Management willing to form a partnership with PoR

Suape area:total 13,500 ha, Port area: 3000 ha

Win-win situation joint venture:advantages for Rotterdam

Commercial / financial

Access to fast growing economies

Network expansion

Utilisation of skills and experience

Spreading the ‘brand’ of the Port of Rotterdam

Synergies with Rotterdam (cargo flows)

Win-win situation join venture:advantages for partner

Commercial / financial

Access to Port of Rotterdam’s know-how and experience

Access to other Rotterdam based know-how and experience

Trustworthy port manager for port users

Enhanced acquisition of new port business / investments

Enhanced development of the (new) port

Economic development of the country/region

Conclusions / question

Brazil: fast growing, big economy

Brazil is in need of new port infrastructure

Rotterdam: ample know-how and experience in all port related matters

Rotterdam practices strategic port development abroad

Is there a perfect match: a win-win situation between Brazil and the Port of Rotterdam?

Thank you for your attention