Port of Rotterdam breaks European goods handling record

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 Dec 2007

In 2007, the Port of Rotterdam was the first European port to break through the barrier of 400 million tonnes cargo throughput. 406 million tonnes were loaded and unloaded, 6.4% more than in 2006. Imports increased by 4% to 300 million tonnes, exports by almost 14% to 107 million tonnes. Bulk cargo rose 4.5%, general cargo by over 10%. Imports and exports were down for crude oil (-2%) and other general cargo (-3.5%). Positive developments were seen in the throughput of agribulk (+2%), ore and scrap (+4%), coal (+1.5%), other dry bulk (+4%), other liquid bulk (+1%), mineral oil products (+24%), roll on/roll off (+24%) and containers (+10%). For the first time more tonnes of container cargo – 105 million – were transhipped than crude oil. In terms of units, Rotterdam was the first European port to pass the milestone of 10 million TEU: 10.8 million (+12%). Records were broken in six sectors: mineral oil products, coal, containers, ro/ro, other dry bulk and other liquid bulk. Port of Rotterdam CEO Hans Smits: "With regard to both quantity and quality, 2007 was an unprecedented success. Expectations concerning throughput were well exceeded. In addition, crucial progress was made for the Second Maasvlakte, the Betuwe Route actually went into operation and huge investments were once again made. I would like to mention the refinery sector, Shell, the Gatel LNG terminal, and the container terminals Euromax and Rotterdam World Gateway. These together accounted for almost three billion euro. The port is developing above the highest long-term growth scenario, but within the 'old' physical boundaries. This is commercially and socially positive, until the increase in revenue decreases. We are balancing on the pivot point, particularly in the oil, containers and other dry bulk sectors and in hinterland transport. Although the businesses appear to be skilled tightrope walkers, we still have a few more years to go before we are in the clear. Prospects for the Port of Rotterdam, however, remain very positive. The investment boom will continue and in 2008 throughput will increase by 4% to at least 420 million tonnes. Within this framework, container throughput will grow by around 10%."Dry bulkThe total volume of dry bulk rose by 3% to 91 million tonnes.A record volume of coal was handled (+1.5% to 28 million tonnes). This was despite the mild winter and closure for maintenance by E.on on the Maasvlakte. In addition, exports were hindered by low water on the rivers and strikes by the French and German railways. Consequently, when imports picked up again in August, the terminals became chock-a-block. Prospects for coal throughput are good due to the structurally increasing demand and the reduction in mine capacity in Germany. In 2008 for example, the Walsum mine will be closing down and this will gradually lead to a need for an additional 2 million tonnes of imported coal. Ores and scrap throughput increased by 4% to 40 million tonnes. The big demand for steel led to a decision by Arcelor to reactivate a blast furnace in Liege and stocks had already been built up for this. A negative consequence of the flourishing steel sector was a lack of certain ore qualities. This depressed throughput in the first six months particularly, likewise the interruption in production due to modernisation of the Thyssen Krupp plants in Duisburg. However, from a structural point of view these developments are positive for Rotterdam. Scrap exports increased by almost 10% despite the strong euro and thanks to a high demand. Other dry bulk is continuing its upward trend with an increase of 4% this year to a record throughput of 13 million tonnes. There is a continuing high level of demand for sand, gravel, ores, minerals and concentrates by the building, chemical and metal industries. After six years of uninterrupted growth, the ceiling is coming in sight in Rotterdam for the throughput of these products. A slight increase is still possible, but there is no room for structural expansion.  Throughput of agribulk (grains, oil-seeds, derivatives) greatly declined for over six months, but nevertheless ultimately finished at +2%, 9.5 million tonnes. Initially, part of the imports of palm products for power generation ground to a halt. The role of imported soya residue was taken over by (European) rapeseed. When the European intervention stocks were exhausted, exports also collapsed (-19%). As a result of this, however, imports eventually also improved (+10%). This is a positive development for the more import-oriented Rotterdam terminals.Liquid bulkThe total volume rose by over 5% to 186 million tonnes. This sector has been doing well for some time and attracts a high level of investment from industry and the Port of Rotterdam Authority. Imports of crude oil showed a slight decline, by 2% to 97 million tonnes. At the beginning of 2007, a large MOT oil jetty was put out of action due to a collision. Thanks to more intensive use of the other jetty and other terminals, the decline that had been feared was limited to a couple of million.However, since the price trend for these products lagged behind that of crude oil, refinery margins were reduced and generally speaking oil imports were squeezed. If oil prices do not rise to extreme levels, imports in 2008 will remain approximately the same. Imports of oil products grew by 13% to 34 million tonnes and exports by 43% to 23 million tonnes. In total, a record volume of 57 million tonnes (+24%) was handled. There is still considerable movement due to regional differences in supply and demand, regarding both quantity and quality. Environment-oriented government measures and the active commercial sector reinforce this. Fuel oil exports continue to be a prime example of this. If there is sufficient difference between Rotterdam and Singapore, it is worth transhipping Russian fuel oil in Rotterdam into very large tankers. In 2007, 24 of these VLCCs were loaded, double that of the previous year. Throughput of gas oil, the second most important product, showed a slight decline, but kerosene did well.   Throughput of other liquid bulk, mostly base chemicals, remained at the same level as the excellent year of 2006. This record was improved by 1% to 32 million tonnes (exports +6%, imports -1%). Throughput of chemical products is keeping pace with the positive development of industry. While throughput of vegetables oils showed a decline, that of ethanol and biodiesel increased. The latter rose by a huge 400%, thanks to the American subsidy on B99 (pure biodiesel mixed with a little of the normal product). For 2008, a slight increase in the other liquid bulk sector is expected.General cargoThe general cargo sector had a very good year with an increase of 13 million tonnes (+11%) to 130 million tonnes. Containers accounted for the greater part of this with 10 million tonnes (imports +12%, exports +9%). Expressed in figures, this is equivalent to +12% to 10.8 million TEU (+1,100,000). The container terminals are working close to the limits of their capacity. Growth was and is possible due to an improvement in productivity, including by restricting the time spent in port by containers. In order to facilitate further growth, the terminals will pursue this path in 2008. They will also further differentiate their services on the basis of follow-up transport modalities. This can be achieved via specific facilities, such as the Delta Barge Feeder terminal to be opened in 2008, and on a product basis as in the Feeder platform.The roll on/roll off sector in Rotterdam received a substantial stimulus due to the addition of the Stena and Norfolkline. Throughput mainly rose due to the newcomers by 24% to almost 16 million tonnes. The organic growth comes from the transport of containers as ro/ro, not from the trailers. Since only the latter is included in ro/ro statistics, this creates a picture that does not tally with the more optimistic perception of the companies. Almost without exception they are expanding capacity.Due to the discontinuance of the lash barge sector, other general cargo suffered both in throughput and from an emotional point of view. Rotterdam was the last remaining European port for transport of the large floating barges on board the mother ship to and from the USA. In the last year of its existence, there was a turnover of around a million tonnes. The total throughput of other general cargo totalled around 9.5 million tonnes (-3.5%). Despite the slight decline, steel, cars and paper for example did well. Growth can therefore be achieved in 2008 and the loss of lash compensated for.