bas van helden route director scotland-belgium

Bas Van HeldenRoute Director Scotland-Belgium

Maritime Transport: Scotland’s Sustainable Growth Opportunity

The First MacKay Hannah Scottish Maritime Transport Conference

Norfolkline Group

October, 2009

Developing the Motorway of the Sea between

Scotland and the European Continent

Presentation, Edinburgh | October, 2009

Norfolkline Group - Historical Milestones

1973:

The company was sold to Unilever and re-named Norfolkline

1950:

Start of service by Dutch entrepreneur from Vlaardingen

1961:

Norfolk lijn was officially founded

1996:

RoRo vessels Maersk Importer & Exporter

2001:

Purchase of Murfitts

1985:

The company was bought over by A.P.Moller-Maersk Group

2000:

Start of New Route ‘English Channel’ & passenger service

1998:

Started ‘Daily Fresh’ as a JV with Post Kogeko & Visbeen

2004:

Purchase of land in Vlaardingen

2005:

AC Forwarding acquisition

2005:

Norse Merchant acquisition

2006:

Sale of Container Business

2006:

Vlaardingen Terminal operational

2005:

D-class vessels introduced

2006:

Killingholme route established

2007:

Focus on key priorities

2010 & beyond

Continued growth

2009:

Start-up new route Rosyth - Zeebrugge

Our Future


Norfolkline – Ferry Division

DUNKERQUE

VLAARDINGENHARWICH

FELIXSTOWE

ESBJERG

DOVER

BELFAST

HEYSHAM

LIVERPOOL

DUBLIN

KILLINGHOLME

RoPax

RoRo

SCHEVENINGEN HEAD OFFICE

IMMINGHAM

ZEEBRUGGE

ROSYTH


Characteristics European Freight ferry market

Key long term trends in freight market:

• Macro-economic growth of countries

• Increased trade on a regional and global level

• Increased unattractiveness of road transport

• Governmental stimulation of short sea transport

• Hub & spoke concept in logistics

• Oil price development

• Containerization in some of the markets

2.3

6.1

2.6

6.4 2.6

4.5 1.8

No. of freight units in million as projected in year 2016

Bridges in Western Scandinavia (around 2.2 million trailers) & the Eurotunnel (around 1.8 million trailers) are included

2.8%

3.9%

1.4%

2.6%

4.0% 4.0%

4.7%

2.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Irish

Sea

Englis

h Cha

nnel

North

Sea

UK Dom

estic

W S

candin

avia

Baltic

Sea

W M

edite

rrane

an

E Med

iterra

nean

Average growth projection 2016 - freight

Wild, G.P. 2007. ‘The Ferry industry to 2016, profiting from challenge and change


Market characteristics Scotland – Continent ferry market

Ferry market characteristics

Scottish RoRo market expected to range from 170.000 to 240.000 RoRo units in 2007

Geographical distribution: 43% Netherlands, 15% Belgium, 22% Northern France, 20% Western Germany

Potential Scottish trade car market around 100,000 cars in 2007

In H1 2009 significant drop in RoRo volume - 20% to 30% YOY

Route development

0

50

100

150

200

250

2002 2003 2004 2005 2006 2007 2008

Th

ou

san

ds

Passengers Cars & other vehicles Trailers/containers Trade cars

Capacity reduction

Capacity reduction

Economic characteristics

Average GDP growth per year: 2% (until Q2 2008)

Constant rise of economic export (2002 -2007: GBP 9 bln) and manufactured export

Major manufacturing industries in Scotland including food & drink industry, paper mills, car tires industry and chemicals


Impression Scottish Viking

Norfolkline Superfast

Pax details: Pax details:

- 800 passengers - 1600 passengers

- 109 cabins - 161 cabins

- 57 pullman seats - 72 pullman seats

Freight details: Freight details:

- 2250 lanemeter (120 trailers) - 1745 lm (80 trailers)

- 120 trade cars - 70 trade cars

- Around 30% lower fuel consumption


Benefits of MoS for road industry

Speed:- Comparable door-to-door transit time.- More reliable deliveries.

Costs:- Lower transport costs per ton product;- Unaccompanied trailers save vehicle costs.

Safety:- Low risk for damage by road accidents or for theft;- Operate legally regarding the maximum driving hours for drivers.- Reduction of many road kilometers.

Location:- Geographically favorable: Opening to the Benelux, North France, the Ruhr area and

North German market;- Close to the major, densely populated and industrialized cities;- Good road and rail connections to all countries of Continental Europe;- Modern port equipment, recently established. - A large potential of skilled labor achieving high productivity.


Benefits of MoS for environment

- Reduction of congestion by substituting freight transport by road, with

transport by short sea;

- The new route avoids heavily populated and congested areas like

Newcastle, London, Leeds, Rotterdam and Amsterdam.

- Road safety: through reduction of congestion a contribution is made to the

reduction of road accidents.

- The vessel to be employed for the service will use low-sulphur fuel.

- Reduction of CO2 and other emissions on European soil. Vessels can

transport larger quantities of freight more efficiently. The total

amount of CO2-emission reduction due to the reduction in road km’s could

go up to: 7 million kg per year


Consequences MoS for modal split

% km % km % km % km % km % km % km % km % km % kmGlasgow 5% 785 39.3 2% 446 8.9 3% 430 12.9 25% 309 77.3 0.5% 270 1.4

Edinburgh 5% 788 39.4 2% 423 8.5 2% 406 8.1 25% 240 60.0 0.5% 170 0.9Dundee 3% 904 27.1 1% 556 5.6 2% 549 11.0 10% 346 34.6 0.5% 300 1.5

Aberdeen 2% 1008 20.2 0% 655 0.0 1% 653 6.5 10% 449 44.9 0.5% 403 2.0Total 15% 3485 125.9 5% 2080 22.9 8% 2038 38.5 70% 1344 216.8 2% 1143 5.7

Totaling 409.9

Dover Middlesborough NewcastleHullImmingham

Average kilometer saving / unit in UK = 409.9 – 72.2 = 337.7 km

% km % kmGlasgow 35.5% 74 26.3Edinburgh 34.5% 23 7.9Dundee 16.5% 80 13.2Aberdeen 13.5% 184 24.8Total 100.0% 361 72.2

Rosyth

Average kilometer saving / unit on continent = 235.6 – 249.6 = - 14 km

Average kilometer gain / unit at sea = 750.1 – 464.1 = 286 km

% Route km % kmNetherlands 42.6% Zeebrugge - Utrecht 227 96.7Belgium 15.3% Zeebrugge - Brussel 112.1 17.2Northern France 22.1% Zeebrugge - Paris 310 68.5Western Germany 20.0% Zeebrugge - Dortmund 336.1 67.2Total 249.6

Average kilometer saving / unit = 37.6 km

Average road kilometers saved / unit = 323.6 km

% km % km % km % km % km % km % km % km % km % km % km % kmUtrecht 1% 62.9 0.3 23% 90.3 20.8 5% 227 11.4 2% 246.8 4.9 1% 308.8 1.5 1% 330.2 3.3Brussel 1% 225.6 1.1 4% 170.4 6.8 9% 112.1 10.1 1% 112.8 1.1 1% 174.8 1.7 1% 196.1 2.0Paris 1% 530 2.7 6% 473 28.4 13% 310 40.3 3% 312 9.4 1% 302 3.0 1% 296 3.0Dortmund 1% 265.5 1.3 16% 285.1 45.6 8% 336.1 26.9 1% 353.1 3.5 1% 415.1 2.1 1% 436.4 4.4Total 2% 1084 5.4 49% 1018.8 101.6 35% 985.2 88.6 7% 1024.7 19.0 3% 1200.7 8.4 4% 1258.7 12.6Totals 235.6

CalaisDunkirkOstendZeebruggeRotterdamIJmuiden

Route / Transport Mode Total distance Total roadOld Collection / distribution Scotland Road 409.8

UK - Continental Europe Short Sea 464.1Distribution / collection Continent Road 235.6Total 1109.5 645.4

New Collection / distribution Scotland Road 72.2Rosyth - Zeebrugge Short Sea 750.1Distribution / collection Continent Road 249.6Total 1071.9 321.8

Difference -37.6 -323.6


Consequences MoS for modal split

Total ton.road kilometers saved on annual basis = 100 million tKm

Road CO2 saving/year Scotland – European Continent service =

7.3 million kg

Total CO2 saving/year Scotland – European Continent service =

4.7 million kg

Equivalent to:

- Plane: 3000 flights to Australia

- Car: 39.2 million kilometers = 1000x around the earth


Corporate Social Responsibility

Companies should continuously focus on the

creation of long-term value in three

dimensions, which are People, Profit and

Planet. Social Economic Council, 2000


Linking this to CSR – The generation approach

Tools & Processes

3rd Generation

Remoulding competitive advantage

Multi-stakeholders standards and

partnerships, institution building, competitive

responsibility, oriented advocacy and public

policy

2nd Generation

Strategic Corporate Responsibility

Product and process innovation, new

business and corporate governance models,

long-term sustainability

1st Generation

Low-level business case

Philanthropy, short-term risk management,

industry standards

Legal Compliance

Business as usual

Regulation, covering tax, health and safety,

workers rights, consumer rights,

environmental regulations

Swift, T and S. Zadek. 2002. ‘Corporate responsibility and the Competitive Advantage of Nations.’ The Copenhagen Centre and AccountAbility

Ist: Ferry industry

Soll: Ferry industry


MoS Scotland – European continent

Thank you

bas van helden route director scotland-belgium

Documents

freight market

trade cars

ferry industry

freight units

roro units

lower transport costs

roro volume

pullman seatsfreight