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Port of RotterdamInvestment managementPort Development and LogisticsJakarta October 10th, 2011

By: Capt. Kees. J. WeststrateSr. Project ManagerPort of Rotterdam International

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Legal structure Port of Rotterdam

Municipality of

RotterdamDutch State

Port of Rotterdam N.V.

70% 30%

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Investment Management

Investment management is involved in the planning of investmentprojects;

Projects in Rotterdam area and participations;

Make businesscases, financial consequences of investment decisions,advise board on investments;

Financial situation of PoR in the long term.

Some recent projects:

LNG Rotterdam, Pipeline project, Real Estate projects;

Analysis Lahad Datu Malaysia, Businescase Suape Brazil,Businesscase Rewas India, Research investment opportunitiesVietnam;

Innovative projects GE;

Take-over Port of Dordrecht, Valuation Moerdijk etc.

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Investments PoR

Investments Landlord Port for example: Roads

Dredging

Quay walls

Jetty’s

Basins / waterways

Nautical communication systems

Land (for example reclamation)

Structural investments € 175 mln per year (notincluded Maasvlakte 2)

Investment Maasvlakte 2 is € 3 bln (to be financed byPoR)

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5MV2 6

Example LNG Gate

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Example LNG Gate

Investment PoR Investment GateBuying land Storage tank

Preparing land Regassification facilities

Land reclamation Pipelines

Roads Infrastructure (buildings, roads,lighting etc) within terminalboundaries

Slopes Jetties

Other Other

Total investment € 67 mln Total investment € 1.000 mln

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Investments in the port2008 - 2015: € 15 billion

Infrastructure

24%

Energy/LNG

34%

Refinery/tank storage

15%

Biofuels

9%

Containers/Break bulk

14%

Miscellaneous

4%

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Income sources PoR

1. Port dues: 52% total income

2. Contract income: 45% total income

Land lease

Lease quay walls

3. Other Income (participations etc): 3% totalincome

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Income sources PoR (in mln €)

249

14

288

Port dues Contract income Other income

x

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Port dues

Port dues are related to cargo volumes

Tariff dependent on:

Type of ship

Type of cargo

Loading of the ship

Each year negotiations with business community

Commercial instrument

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Contract income

Lease of quay walls

Tariff per meter dependent on draft;

Lease of land:

Tariff per m2 dependent on

Market demand

Competition

ROI of PoR and lessee

Specific qualities of the location

Price-elasticity in a certain sector

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Lease policy: optimal utilizationof the land

Optimal planning of the port area:

No activities that do not belong in a port area

Taking back land that is not being used

Encourage co-siting and clusters of activities

Redevelopment of areas that are not profitable any more

To be able to manage land prices, now and in the future

A steady source of income for PoR

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Lessee has economic ownership

In the Rotterdam port area it is possible to lease land(25, 50 yrs) with economic ownership of the land forthe lessee during the lease-period;

Municipality of

Rotterdam

Port of

Rotterdam

Lessee (private

companies)

Legal ownership

land

Economic

rights land

Economic

rights land

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Economic rights for lessee

With these lease-contracts the lessee hasalmost the same rights as full ownership of theland e.g.:

It is possible to encumber the leased landwith a mortgage to finance operations

It is possible to lease the land to anotherprivate company (approval needed fromPoR)

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Duration of lease contracts

Standard 25 years + an option of another 25years

By determining the specific characteristics ofa lease contract, a starting point is theinvestment of the lessee. Large investmentsin industrial activities sometimes have longpay back periods. This can lead to a longerlease period (e.g. LNG terminals).

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Economic impact

Cargo: 430 mln ton

Employment Port of Rotterdam Authority: 1.200 people

Direct employment Rotterdam port area: 90.000 people

Indirect employment: > 200.000 people

Contribution Mainport Rotterdam to Dutch GNP 7% (> €

40 billion)

1818

235

135170

121

55

171324

150 160

422361

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0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012

Prognoses MV2

Prognoses exclMV2Realization MV2

Realization exclMV2

Investments Port of Rotterdam

Ammounts: x € 1 million

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Funding of investment ambitions

Investments

Investments PoR in 2010-2012 average € 500mln/year

Investments in MV2 of total € 3 bln

Funding

Equity PoR

Arrangements (debt financing) for € 2,3 bln

Dutch state is shareholder (€ 0,7 bln)

Thank you for yourattentionAny questions?