port of rotterdam

Abridged AnnuAl report 2013

port of rotterdAm Authority

Investing in the future

ElmerTypewritten Text














Port of Rotterdam Authority Abridged Annual Report 2013 2

Foreword by the Executive

investing in the future

Investments drive the growth of the Port of Rotterdam.

The Port of Rotterdam Authority plays an important role

in this. In May, for example, Maasvlakte 2 was opened to

shipping. This was an important milestone, providing

scope to businesses for growth and development.

We also embarked on modernising shipping control with

the commissioning of the totally refurbished Traffic Centre

Hook of Holland. In 2013, the Port of Rotterdam Authority

invested a total of 263 million.

Other parties also invested heavily in modernising and

expanding capacity in and around the existing port area.

Projects involved widening the Amazonehaven for the

increasingly large container ships as well as widening the

A15 and laying the A4 between Schiedam and Delft.

These investments not only focus on infrastructure aimed at

throughput and production. Together with the environmental

protection agency for the Rijnmond region (DCMR Milieudienst

Rijnmond) and other parties, we embarked on expanding the

We-nose network. The aim is to provide detailed, real-time

insight into the air quality in and around the port. This is one

of the initiatives to improve living conditions, transparency and

the relationship with the environment. We intensified relation-

ships by establishing a social dialogue between employers

and employees, so that they could discuss labour and training

issues. We also devoted attention to the relationship between

the city and the port. Through various projects, we are making

the port visible in the centre of Rotterdam. These include the

LED screen with images of the port in the entrance hall of

Rotterdam Central Station. On the RDM site, we are reno-

vating the historic buildings of the former shipyard to provide

accommodation for modern business activity and education.

The World Economic Forum named the Dutch port infra-

structure the best in the world for the second year in a row.

The Port of Rotterdam was also voted Port of the Year at

the annual Containerisation International Awards in London.

At the same time, throughput declined by 0.2% compared with

2012. Our neighbouring ports performed better. This clearly

shows that for the port needs more than physical infrastructure

alone to perform well.

We will have to work hard on this in the coming years.

Issues demanding our full attention include how to strengthen

Rotterdams position in the consolidation of container shipping

and how to reinforce connections to the hinterland. Above all,

we will have to focus on the rail product. Other areas of atten-

tion are improving the efficiency of the chemical and energy

sectors, promoting the bio-based and recycling industry and

optimising our use of the residual heat from industry.

The Port of Rotterdam Authority must create the right condi-

tions for all these issues. This means continuing to invest in

port infrastructure, because we want to remain the best in

the world. It also means investing in all these other aspects

of the port to ensure that the port continues to make a major

contribution to the welfare of the region, the Netherlands and

Europe in the coming years. This requires excellent interaction

between many different organisations, companies and govern-

ment authorities.

Our employees and the Works Council deserve a word of

thanks for their commitment, efforts and engagement in 2013.

We are conscious of the fact that this does not happen as a

matter of course and it will remain an important factor for the

Port of Rotterdam Authority.

Special thanks are also due to Hans Smits, who headed the

Port of Rotterdam Authority for the past nine years. He left

the company on 31 December 2013 and was succeeded by

Allard Castelein on 1 January 2014.

This was a period in which the organisation took major steps

in the field of results orientation, business-like working and

transparency, a period in which our image surveys showed that

appreciation of the Rotterdam port was growing. In this period

too, Maasvlakte 2 was completed and the port and industry

invested 1.5 to 2 billion euros a year.

Port of Rotterdam Authority

Rotterdam, the Netherlands, 21 February 2014

Executive Board

Allard Castelein, Ronald Paul and Paul Smits

34.0%increase in turnover

in 2013

226.6million euros net result

in 2013

turnover result

263.0million euros invested in

2013

investments

440.5million tonnes of throughput

in 2013

total throughput

11.6million teu

in 2013

45%of the shipments from containers from the maasvlakte travelled by road in the 1st half of 2013

throughput in teu modal split

6.5%Co2-reduction

in comparison with 2010

Co2-footprint

1,118year-end 2013

number of employees

37.5%market share in hamburg

le havre range in 2013(up to and including third quarter)

market share

408.6million euro result before interest, depreciation and

amortisation and tax in 2013

ebitdA

29,448seagoing vessels

in 2013

5,971*hectares of port area in 2013

* incl. issuable land Maasvlakte 2

Vessel visits of port area

At a glance

Port of Rotterdam Authority Abridged Annual Report 2013

4Market position

The port of Rotterdam is the largest port in Europe. It is our

ambition to maintain and strengthen this position as market

leader. Rotterdam has held a strong position in the Hamburg

Le Havre range for years. As the port of Rotterdam is impor-

tant for the throughput of many different commodities, total

throughput is less vulnerable to market fluctuations in specific

sectors.

The market share for all commodities up to and including the

3rd quarter of 2013 was 37.5%. This is equal to the market

share for 2012 as a whole. The expectation for the full year of

2013 is 37.2%. The expected reduction is the result of lower

throughput of crude oil and containers in the fourth quarter,

due to incidental factors. The 37.9% target for 2013 will

therefore probably not be achieved.

Throughput in the Port of Rotterdam diminished marginally in

2013 by 0.2% to 440.5 million tonnes. This is 1 million tonnes

less than in the year 2012. From January 2013, the Port of

Rotterdam Authority will operate Dordrecht seaport. The

throughput volume in Dordrecht totalled 3 million tonnes in

2013. If this volume is disregarded in the comparison with

2012, the reduction in the total throughput is 1%.

Incoming throughput grew by 0.2% to 310.8 million tonnes.

Outgoing throughput fell by 1.3% to 129.7 million tonnes.

This reduction primarily concerned container throughput,

particularly deep-sea and feeder volumes. Shipments of

mineral oil products also declined as a result of poor market

conditions in the European refining sector.

throughput port of rotterdam*(Gross weight x 1,000 metric tonnes)

2013 2012

Diffe-

rence

% Diffe-

rence

Iron and scrap 35,944 32,742 +3,202 +10%

Coal 30,675 25,282 +5,393 +21%

Agribulk 10,318 8,050 +2,268 +28%

Other dry bulk goods 12,250 12,029 +221 +2%

Total dry bulk 89,187 78,103 +11,084 +14%

Crude oil 91,054 98,324 -7,270 -7%

Mineral oil 81,608 81,814 -206 -0%

LNG 756 560 +196 +35%

Other liquid bulk 33,381 33,515 -134 -0%

Total

liquid bulk 206,799 214,213 -7,414 -3%

TOTAL DRY 295,986 292,316 +3,670 +1%

Containers 121,251 125,428 -4,177 -3%

Roll on/roll off 18,512 17,919 +593 +3%

Other general goods 4,715 5,865 -1,150 -20%

Breakbulk 23,227 23,784 -557 -2%

TOTAL GENERAL 144,478 149,211 -4,734 -3%

TOTAL THROUGHPUT 440,464 441,527 -1,064 -0%

Total in number of

containers 7,006,301 7,183,675 -177,374 -2%

Total in number of TEU 11,621,249 11,865,916 -244,667 -2%

* Throughput figures include throughput at terminals on the northern banks of the river

(Hook of Holland, Schiedam, Vlaardingen). This throughput accounts for approx. 3% of

the total throughput in 2013. The accompanying port dues are not paid to the Port of

Rotterdam Authority and are therefore not included in the financial reports.

* The market shares are based on the throughput figures until the 3rd quarter of 2013.

Throughput

Rotterdam

(Gross weight x 1 million tonnes, rounded off figures)


Market share of Rotterdam in

the Hamburg Le Havre range

(per main segment) in %

Market share of Rotterdam in

the Hamburg Le Havre range

(based on total throughput in tonnes) in %

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

450

Nat massagoed

Droog massagoed

Containers

Breakbulk

2011 2012201020092008

434,6 441.5430,2

387,0421,1

2010 2011 201220092008

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

0

50

100

150

200

250

300

2012201120102008 2009

193228 240

174192

0

10

20

30

40

50

60

Liquid bulk

Dry bulk

Containers

Breakbulk

2010 2011 2013*20122009

0

5

10

15

20

25

30

35

40

45

50

Onzekerheidsmarge

Effect maatregelen RCI

CO2 uitstoot

202520202015201120102009200820072006 1990

RealisatieReferentie jaar Ambitie

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Doel RCI 2025

202520202015201020092008200720062005

0

5

10

15

20

25

30

35

40

Ghent

Zeeland Seaports

Wilhelmshaven

Zeebrugge

Dunkirk

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerp

Rotterdam

2010 2011 2012 2013*2009

0

40

80

120

160

200

240

2011 2012

BreakbulkContainersNat massagoedDroog massagoed

Breakbulk 5,5%

Containers 26,1%

Droog massagoed 19,7%

Minerale olieproducten, overig

massagoed en nat 25,4%

Ruwe aardolie 23,3%

Breakbulk

Containers

Droog massagoed

Minerale olieproducten + overig massagoed, natRuwe aardolie

0

40

80

120

160

200

240 2012

2011

Droog massagoedNat massagoedContainersBreakbulk

0

15

30

45

60

75

90

105

120

Quarter 1

Quarter 2

Quarter 3

Quarter 4

20132012201120102009

5Financial results 2013 Harbour Master

After years of rising profits, the result of Port of Rotterdam

Authority fell slightly this year to 227 million euros. This was

not unexpected. After years of major investments, particularly

Maasvlakte 2, depreciation and interest costs have risen

sharply. However, turnover increased by 4%. Land leasing

increased through transfers of sites on Maasvlakte 2 and in

Europoort, the acquisition of a site in the Botlek and the

integration with Dordrecht. As a result of this, rents, ground

leases and quay fees increased by 10%. However, income

from port fees fell, even slightly more sharply than the

throughput, due to somewhat lower prices per tonne on

average. Costs were under control. Personnel costs rose by

1%, driven by pension costs. The other operating expenses

were 6 million higher than in 2012, driven almost entirely

by a large incidental release in 2012 and by the integration

of Dordrecht.

Investments in 2013 amounted to 263 million euros, signifi-

cantly lower than in the peak year of 2012 (626 million

euros). 154 million euros was invested in the Existing

Rotterdam Area and 109 million euros in Maasvlakte 2.

The ratio of investments to EBITDA was equal to 64% in

2013, which is still a very high percentage. This is typical

of the investment machine which is the Port Authority.

The operating cash flow plus the investment cash flow

(excluding the State contribution and the partial release of

this) less the dividend was still negative in 2013, at -16 million

euros. This has been the case since 2008. Due to its high

investments, the Port of Rotterdam Authority structurally

spends more money than it receives. As a result, the long-

term loans have now risen to the record level of 1.2 billion

euros. A ratio as important as the net debt/EBITDA ratio

consequently rose to 2.7, despite the rising EBITDA.

However, this is still well within the terms of all bank cove-

nants. With positive cash flows, this ratio will gradually fall

again in the coming years.

In conclusion, 2013 was a good year with a fine, albeit

slightly lower profit, good control of operating expenses,

a slightly negative cash flow and once again, a high level

of investment.

The Harbour Master ensures effective, safe and efficient

handling of shipping in the ports and the offshore approa-

ches to the ports. The Harbour Master is also the National

Harbour Master and reports to the Minister of Infrastructure

and the Environment. The Harbour Master also performs

tasks in the ports of Rotterdam, Schiedam, Vlaardingen,

Dordrecht, Papendrecht and Zwijndrecht. In this regard,

he reports to the Mayor of the relevant municipal authority.

In 2013, the Harbour Masters division launched the project

Focus on vessels. Within this project, nautical service provi-

ders, terminal operators and the Port Authority work together

to improve the exchange of information and develop more

efficient traffic scheduling in the port.

In order to support the processes of the Harbour Master, the

Harbour Master Management Information System (HaMIS)

was introduced. HaMIS now provides a single information

system to administer, manage and inspect ship visits linked to

a map of the port. The Port of Amsterdam Authority will also

use the system, which contributes to process standardisation.

In 2013, the Harbour Master contributed to a new traffic

separation system in the North Sea. This has improved the

approach of seagoing vessels from the North.

Since 2013, there have also been larger anchorage areas.


6Port of Rotterdam Authority Abridged Annual Report 2013

Balance sheet(Before appropriation of income,

amounts x 1,000)

31-12-2013 31-12-2012

ASSETS

Fixed assets

Tangible fixed assets 3,611,144 3,476,642

Financial fixed assets 51,952 43,602

3,663,096 3,520,244

Current assets

Inventories 578 599

Accounts receivable 124,791 134,564

Cash and cash equivalents 129,946 42,458

255,315 177,621

TOTAL ASSETS 3,918,411 3,697,865

LIABILITIES

Equity capital

Subscribed capital 900,000 900,000

Share premium reserve 391,200 391,200

Statutory reserves 22,073 17,038

Other reserves 637,827 502,705

Result for appropriation 226,589 227,549

2,177,689 2,038,492

Provisions 54,908 54,246

Long-term debts 1,419,590 1,027,126

Current liabilities 266,224 578,001

TOTAL LIABILITIES 3,918,411 3,697,865

Income statement(Amounts rounded off, x 1,000)

2013 2012

Net revenue 624,110 599,088

Other operating income 15,797 16,242

Total operating income 639,907 615,330

Wages, salaries and social insurance 104,381 103,274

Depreciation of

tangible fixed assets 126,338 120,074

Other operating expenses 126,908 120,928

Total operating expenses 357,627 344,276

Operating result 282,280 271,054

Financial income and expenses -65,045 -50,525

Income from participating interests 9,354 7,020

RESULT 226,589 227,549

Cash flow statement(Amounts rounded off, x 1,000)

2013 2012

Operating result 282,280 271,054

Cash flow from

operating activities 331,951 300,295

Cash flow from

investment activities -558,136 -252,563

Cash flow from

financing activities 313,673 -7,387

Net cash Flow 87,488 40,345

110011001010011100110101

1 2 3 4 65 7

98

Core tasks of the Port of Rotterdam Authority

Strengthening the competitive position of the Port of Rotterdam

Investing in development and maintenance of port sites,

public and client-specific infrastructure

Manager and operator of the Port of Rotterdam

Efficient, safe and effective handling of shipping

Shipping

Tank storage

Chemicals

Industry

Fuel hub

Containers

110011001010011100110101

Digital services

Refining

Road transport

Rail

Inland shipping

Pipeline

Energy (bio, wind, coal, LNG)

1

2

3

4

Cooperation with partners

Dialogue with stakeholders

Promoting access to the port area

Investing in the environment, safety and quality of living conditions

Stimulating the exchange of knowledge and innovation

Working on the port labour market

5

6

7

8

9

7Port of Rotterdam Authority Abridged Annual Report 2013

Nautical opening ofMaasvlakte 2

on 22 May 2013

Granting of two TEN-T subsidies by the EC for the development

of LNG infrastructure

SignatureSector-Wide Approach to

bunkering to improve quality

Opening of new Traffic Centre

Hook of Holland

milestone milestone

milestone milestone

Havenbedrijf Rotterdam N.V. Beknopt jaarverslag 2013

port of rotterdam Authority

The aim of the Port of Rotterdam Authority is to enhance the

competitive position of the port of Rotterdam as a logistics hub

and world-class industrial complex. Not only in size, but also

in quality. The core tasks of the Port of Rotterdam Authority

are the sustainable development, management and operation

of the port and the preservation of the swift and safe handling

of shipping.

Publication: Port of Rotterdam Authority

Editing and consistency control:

Corporate Finance & Control

Graphic design and layout: Smidswater

Photography: Aeroview

Contact

Visiting address

Port of Rotterdam Authority

World Port Center (WPC)

Wilhelminakade 909

3072 AP Rotterdam

The Netherlands

Port number 1247

Correspondence address

PO Box 6622, 3002 AP Rotterdam, the Netherlands

Tel. +31 10 2521010

[email protected]

www.portofrotterdam.com

Colophon

port of rotterdam

Documents

port needs

port visible

centre of rotterdam

existing port area

dutch port infrastructure

modernising shipping

large container ships

recycling industry