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

Example of infrastructure development: the Port of Rotterdam 1800 - 1900 1400 - 1800 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: The design The construction Long term supply/demand outlook The design Technical features of MV2 project The construction Construction tendering process The exploitation: Commercial procedure

Forecast vs realisation

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

Research: manoeuvering simulator tests

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

Maasvlakte 2 land reclamation extension the last one?

Port of Rotterdam International Main 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

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

Port of Sohar industrial cluster

Port of Sohar - SEZ

Port of Rotterdam International new opportunities India – Port West in Gujarat Brazil – Port of Suape in Pernambuco Malaysia – Port of Lahad Datu in Sabah

Brazil - Port of Suape characteristics ‘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