Strategic Planning of Port Infrastructure

1. Strategic Planning of Port Infrastructure Marc Evertse Port of Rotterdam International Brasilia, 25th of November 2008

2. 1400 - 1800 1960 - 1970 2015 1920 - 1940 1800 - 1900 1800 - 1900 1946 - 1960 1970 – 2015 Example of infrastructure development:the Port of Rotterdam

3. 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

4. Indispensable elements of strategic port planning • Traffic forecasting • Space / clustering • Hinterland connections • Organisation • Environment • Employment / added value

5. Example of strategic port planning: Maasvlakte 2 project

6. 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

7. Forecast vs realisation

8. 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

9. 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

10. 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

11. Research, waves and currents

12. Research: manoeuvering simulator tests

13. MV2 market demand in relation to MV2 supply 16 81 14 90 81 12 10 81 8 77 67 6 67 4 84 2 - 2014 2016 2018 2020 2022 2024 2026 2028 2030 MV2 market demand MV2 supply Phased development MV2

16. 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

17. 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

18. Maasvlakte 2 land reclamation extensionthe last one?

19. 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

20. 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

21. Oman: Port of Sohar Rotterdam Sohar

22. Port of Sohar 2002

23. Port of Sohar 2007

24. Port of Sohar SIPC as a LANDLORD Facilitates common services Regulates according to Good International Practices Support community Attracts world-class operators Provides infrastructure Leases land, jetties and quays Encourages clusters Facilitates training & human resource development Markets the Port And industrial area

25. Port of Soharindustrial cluster

26. Port of Sohar - SEZ

27. Port of Rotterdam Internationalnew opportunities • India – Port West in Gujarat • Brazil – Port of Suape in Pernambuco • Malaysia – Port of Lahad Datu in Sabah

28. 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

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

30. 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)

31. 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

32. 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?

33. Thank you for your attention