Reading through the press reports from the Benelux Ports one gets a distinct feeling that the order of the day is to grin and bear it and maintain an optimistic outlook in the face of challenge and adversity. While most ports included in our article below report “little” or “modest growth” in total trans-shipment, there is a ray of hope for container traffic which in most cases saw healthy growth. Predictions for 2013 are also cautious which is unsurprising with talk of further economic uncertainty particularly in the UK where there are whispers of a triple-dip recession. Each port highlighted here has had its percentage ‘ups and downs’ and are doing their utmost to keep in or ahead of the game.
Modest growth at Rotterdam
throughput growth of 1.7%
container traffic up
modest growth of 2% expected for 2013
Despite the ailing economy, freight throughput in the port of Rotterdam grew by 1.7% in 2012 – compared to 2011 – with a total of 442 million tonnes of cargo handled by the port.
Commenting on the 2012 results Hans Smits, President and CEO of the Port of Rotterdam Authority was upbeat saying: “Although the growth is limited, it is another record for Rotterdam. Container throughput increased slightly in 2012 thanks especially to exports. In the dry bulk market segment, the declining steel production in Europe was responsible for reduced throughput, especially of ore. This shift was more than compensated by the growth in liquid bulk: more crude oil and oil products particularly were handled. The latter category has actually tripled in size over the past ten years. That shows that the port of Rotterdam is increasingly becoming a hub for global trade. This helps the port to continue to grow, as global trade generally develops faster than the Dutch and the European economies. The positive throughput figures for this year do not alter the fact that the profit margins for many companies are under pressure, some businesses are in the red and some are dismissing staff.” The Port of Rotterdam Authority expects growth of around 2% next year.
In dry bulk, less cargo was handled across the board. Bad harvests in major grain and oil seed exporting countries and the ensuing high prices caused agri-bulk throughput to drop by 18%. Iron ore and scrap dropped 12% due to the low steel production in Europe. Several blast furnaces have closed. Throughput of cokes coal (used in blast furnaces) did not keep pace with the drop in iron ore handling, because cargo flows were bundled and now go via the port of Rotterdam. Cokes coal throughput dropped nevertheless by 4%. The causes are the reduced demand for coal for electricity generation due to the availability of plenty of sustainable energy in the summer and stocks being used up. Throughput of other dry bulk dropped by 9%, due especially to the slump in building and disappointing industrial production. A total of 79 million tonnes of dry bulk was handled. The throughput of crude oil increased this year by 6%, putting it back at the ‘normal’ level. On the one hand the refinery sector experienced fewer significant maintenance breaks than last year and on the other hand production capacity ceased elsewhere in Europe, a reason why production was driven up.
Similar to previous years, the throughput of mineral oil products increased, this time by 12%. The most important cause is the increased oil product trade, due chiefly to the differences in the price of fuel oil in Europe and Asia. It is worthwhile, for instance, to ship Russian fuel oil via the port of Rotterdam to the Far East. The throughput of naphtha, gas oil, diesel, kerosene and petrol also increased. LNG imports remained at a low level, because the prices in Asia are much higher, resulting in the product being transported to the Far East rather than to Europe. Other liquid bulk experienced growth of 4%, partly through the start-up of Neste (palm oil import) and the increased import of bio diesel. A total of 214 million tonnes of liquid bulk was handled. This cargo segment thus represents half of the cargo throughput in the port of Rotterdam.
According to Smits, the continuing economic slump means less cargo is imported and more is exported. The balance of those two is a growth of 2% in tonnage. Because export containers are heavier on average and furthermore, fewer containers were going back empty, the throughput in numbers of containers (in TEU) stayed the same. The port of Rotterdam lost cargo in the feeder market, but gained short sea containers. The 11.9 million TEU in containers came to 126 million tonnes. Roll on/roll off increased by 3%, despite the ailing British economy. Other general cargo dropped by 23%, due especially to the greatly reduced import of steel. This resulted in a drop of 5% in break-bulk to a total of 24 million tonnes.
The market share of the port of Rotterdam in the Hamburg-Le Havre range increased over the past five years by an average of 0.5% per year to 37.7% in the third quarter of 2012. The difference with Hamburg and Antwerp in the container
segment was preserved.
In view of the prospects of the development of the Dutch and European, and especially the German economies, modest growth of around 2% is expected again for 2013. This means that the throughput for next year will probably approach 450 million tonnes. The throughput is expected to increase slightly faster in the subsequent years, on the one hand, because the economic prospects for 2014 are better and on the other hand, because the current investments in tank storage, container terminals and coal-fired power plants will result in more throughput over time.
Ports of Amsterdam on the rise
1.6% rise in trans-shipment
new record of 77 million tonnes set
container traffic increased by 36% in 2012
The ports of Amsterdam, IJmuiden, Beverwijk and Zaanstad closed the year 2012 with a 1.6% rise in trans-shipment. According to provisional figures total trans-shipment amounted to some 95 million tonnes. Despite the challenging economic environment, the port region along the North Sea Canal handled more raw materials and goods and achieved a satisfactory annual result. Trans-shipment in the port of Amsterdam increased by 3% compared to 2011, to 77 million tonnes. Import was stable at 50.5 million tonnes in Amsterdam while exports rose 9% to 26.6 million tonnes. These figures represent a new record for the port of Amsterdam beating the previous record set in 2008, when 76 million tonnes were handled.
Commenting on 2012 results Port of Amsterdam’s President and CEO, Dertje Meijer said: “Despite the sluggish economy affecting many market sectors, our port again managed to achieve growth in the past year. The 1.6% growth of the Amsterdam port region is therefore a satisfactory result. The Amsterdam port even achieved an increase of 3%. I consider this to be an excellent result, especially in view of the prevailing economic environment. We are the fourth port in Europe, after Rotterdam, Antwerp and Hamburg. I am proud of that.” The new Vopka terminal gave a boost to the trans-shipment of oil products which rose 11% to 41 million tonnes. However, coal trans-shipment remained stable at 15.6 million tonnes while agricultural bulk trans-shipment fell some 15% to almost 6.8 million tonnes. Container traffic increased 36% to over 800,000 tonnes. Trans-shipment of cars and other Ro/Ro decreased 36% to 600,000 tonnes while other break bulk increased 53% to 2.2 million tonnes. 2012 was a very good year for cruise shipping with a record number of cruise ships calling at Amsterdam. Visits by sea cruise ships totalled 145, up 18% from 2011. For 2013 Amsterdam port is expecting a slight growth in trans-shipment and sea cruise shipping is set to experience another very good year, with 150 visits and over 300,000 passengers expected.
Port of Antwerp stands its ground
Container traffic holds steady at 8,635,169 TEU
Total traffic handled up by 1.6%
Calls from ultra-large container carriers up significantly
The port of Antwerp handled 184,134,516 tonnes of freight last year which represents a drop of 1.6% compared with 2011, when the volume was 187.2 million tonnes. The figures are slightly better than the provisional results presented at the end of December, showing that the port is managing to stand up well in the current climate affecting the shipping industry and the general economy. The container freight volume in Antwerp remained at around the same level, with 8,635,169 TEU (down 0.3%) being handled. Expressed in tonnes the fall amounted to 1.0%, to 104,060,119 tonnes. The ro/ro volume for its part rose by 13.0%, to 4,797,360 tonnes. The number of cars handled in 2012 came to 1,240,223, an increase of 14.8%. On the other hand there was a fall in the volume of conventional break-bulk. During the past year 10,894,712 tonnes of freight in this category was loaded and unloaded, 14.2% less than the previous year. This result is mainly due to the decrease in the amount of steel handled (down 19.2% to 6,809,218 tonnes), which in turn reflects the current market conditions. The volume of fruit fell by 3.2% to 1,307,399 tonnes, while paper and cellulose experienced strong growth of 17.4%, finishing at 895,593 tonnes. Bulk freight volume was down by 1.1%, to 64,382,325 tonnes while liquid bulk amounted to 45,275,901 tonnes, up just slightly short (by 1.6%) of its record level in 2011. Imports and exports of oil derivatives were well up, by 7.2%, ending at 31,988,678 tonnes. The volume of chemicals on the other hand was much less (down 8.2%), totalling 10,211,428 tonnes. Dry bulk remained at the same level as last year (only 0.1% higher), with 19,106,424 tonnes being handled. Considerably more coal was handled in 2012 than in the previous year (up by 7.0% to 5,726,247 tonnes), while fertilisers experienced t
he reverse development (down 5.3% to 4,214,056 tonnes). The number of calls by seagoing ships amounted to 14,556, a fall of 4.5% in comparison with the previous year. On the other hand the number of calls by ultra-large container carriers of more than 10,000 TEU was up significantly, from 141 in 2011 to 167 in 2012, demonstrating that the port of Antwerp is very definitely reaping the benefits of the deepening of the Scheldt.
Diversity helps Port of Ghent
1.17% decrease in total traffic
container traffic up by 11.9%
exports on the up
Ghent port registered total waterborne cargo traffic of 49.5 million tonnes in 2012. With 600,000 tonnes less traffic, Ghent experienced a decrease of 1.17 % compared to 2011. Although seaborne traffic is diminishing, the port authority believes the diversity of goods categories it handles is a major contributing factor in enabling the port to stand its ground. The diminished seaborne cargo traffics mainly concern liquid bulk (-10%). Also conventional general cargo is decreasing (-7%) however, Ro/ro traffic (+4.7%) and containers (+11.9%) are on the up. For 2012, total waterborne cargo traffic amounted to 49.5 million tonnes. This, say the port, is a mere 600,000 tonnes less than the record year of 2011 but still 1.5 million tonnes more than in 2010. Seaborne cargo traffic registered 26.3 million tonnes or 3.2% less than in 2011 (almost 900,000 tonnes). Inland navigation traffic experienced growth of 1.2%: from 22.9 million to 23.2 million tonnes or 300,000 tonnes more. Over the past few years, exports via seagoing and inland navigation have been on the up and Ghent is confirming itself as an export port. This trend was continued in 2012. Just like in 2011 Sweden was again the main trading partner of Ghent port thanks to ro/ro traffic. Russia remains second with the trans-shipment of coal, steel slabs and linseed. In third place is the United States with coal, petroleum coke and wood pellets traffics. In fourth position comes Canada (with among other goods wood pellets, wheat, soy beans and ores), followed by Brazil (among other things fruit juice and iron ore). In sixth place is the United Kingdom, followed by Norway (iron ore). Newcomer Ukraine grabbed the eight position with cereal products and anthracite, followed by Turkey (scrap exports) and finally in tenth position, also new: Australia (rapeseed). Interestingly, Venezuela and France are no longer part of the top ten. At the start of 2012 the overall cargo traffic in Ghent port experienced a weak start, but a spurt towards the latter part of the year enabled the port to close 2012 on a rather moderate note. The port expects 2013 to be a difficult year but is positive that despite the economic crisis it will be able to stand its ground once again.
Mixed fortunes for Zeebrugge
container traffic drops 10.6% to 1.96 TEU
break-bulk sector recorded strong growth
total traffic volume drops by 7%
In 2012, 1.96 million TEU or 20.34 million tonnes containers were handled in Zeebrugge which is a drop of 10.6% on the previous year. Deep-sea services were hit harder than short-sea container services. The break bulk sector closed the year with a strong rise. Throughout the year, paper pulp and paper and cardboard volumes grew continuously, resulting in a rise of 17% giving a total volume in this sector of 1.3 million tonnes. 2012 was a challenging year for LNG import to Europe. Japan’s growing demand influenced the asking price but at the same time, Europe’s demand lowered due to a fall in demand from the industrial sector and a growing interest in sustainable energy. As a result the import and export of LNG in Zeebrugge dropped 16%. Last year, was a record year for calls from cruise ships, with 91 calls compared to 75 in 2011. Total traffic volume in 2012 came to 43.6 million tonnes compared to 46.9 million tonnes the previous year, which represents a drop of 7%.
The importance of a certain water depth in the port of Zeebrugge was highlighted on 17 December 2012 when the largest container vessel in the world, CMA CGM Marco Polo, arrived in the port. This giant’s visit brought the CMA CGM Group executives to Zeebrugge for the official European welcoming and christening of their newest vessel. The renewal of the contract between Zespri and Sea-Invest in Auckland, New Zealand, was a significant moment for the port. Under the agreement, SEA-invest has put its infrastructure at the disposal of Zespri for the storage, quality control and packaging of kiwifruit that arrives from New Zealand in Europe via the port of Zeebrugge. From Zeebrugge, it is then distributed to 25 markets across Europe. For the port of Zeebrugge, a logistical crossroads for the European distribution of food products from New Zealand, the renewal of this contract is of great value. It also means job certainty for the 250 people who work at the Belgian New Fruit Wharf. New projects undertaken in 2012 included the dredging at the lengthened Bastenaken quay and the Albert II quay. The most extensive works took place at the APM Terminal and PSA terminal. These works comprise the lengthening of the quay wall of the APM Terminal and the deepening of the eastern quay wall of Container Handling Zeebrugge. Real progress was made in the construction of the second LNG jetty in the outer port of Zeebrugge and at the end of June the construction of the foundation structure was completed.
Box story
Zeeland Seaports chosen as West-European hub
Zeeland Seaports, as Zeeland Port Authority, is responsible for developing, managing, maintaining and operating both the ports of Vlissingen and Terneuzen. The port area is located strategically at the mouth of the Western Scheldt and the deep-water and the absence of locks at the seaports allow excellent nautical access. Furthermore, thanks to a well functioning network of roads, railways, inland shipping routes and pipelines, the ports have excellent connections with the European hinterland. Due to this strategic location, the Zeeland ports have developed, in the past forty years, into the third largest seaport in the Netherlands, and since 1980 have even been among the fastest-growing port areas in Europe. The area covers more than 4600 hectares. Zeeland Seaports plays an important role for the regional economy as the port area is home to around 250 companies, which account for 18% of employment in Zeeland. This role will be re-affirmed with the recent opening of a new factory that will help Zeeland and Verbrugge Terminals to retain their lead in handling forest products. Leading firm, Eldorado Brasil Celulose has chosen Verbrugge Terminals, with branches in Terneuzen and Vlissingen, as its West-European hub and will be handling and storing a large proportion of the cellulose destined for the European market. The factory, the largest so-called single-line pulp mill in the world, has an annual capacity of 1.5 million tonnes of cellulose. A sizeable proportion of this will be carried by ocean-going vessels from Santos, Brazil to the Scaldiahaven in Vlissingen. From there, the cellulose will be stored and later supplied to the paper and tissue industry in the hinterland. An increasingly important share of transport to the hinterland will take place by inland vessel. As a result of all this, there will not only be an increase in the movement of ocean-going vessels towards, but also from inland vessels.