The port of Amsterdam sees inland connectivity and investment as the twin pillars of a successful future, writes Michael King.
The city of Amsterdam is widely famed for its stunning canals. The Port of Amsterdam also prides itself on its waterways and the critical link they provide to the wider European industrial hinterland beyond. With multiple daily barge services to Rotterdam, Antwerp, a slew of German industrial centres and, via the River Rhine, as far south as Basel in Switzerland, Amsterdam leans heavily on the extra reach and affordable on-shipment options its inland navigation access offer bulk cargo owner customers.
“In the European bulk sector there are two big ports that are able to reach a wide hinterland via waterways and barges — Amsterdam and Rotterdam,” said Lex De Ridder, commercial manager for bulk cargoes at the port. “Of the other two big ports in the Northern Range, Hamburg has hardly any water connections, so cargo must move by rail, and from Antwerp access is limited and not easy.
“So that’s our advantage because for bulk cargoes barge is the cheapest method of transport. That’s why Amsterdam and Rotterdam get two-thirds of the bulk cargo shipped via ports in the ARA range.”
Comparing Amsterdam to its larger Dutch neighbour, De Ridder believes the two rivals — which also co-operate in a number of areas (see box) — offer shippers, ship owners and port operators differentiated propositions.
For example, most of Rotterdam’s terminals provide fixed handling gear and can receive the largest bulk carriers without lightering, unlike Amsterdam which only can take fully loaded Capesize vessels after lightering at present.
“But,” said De Ridder,“Amsterdam is more flexible with most of our terminals using floating cranes which can be moved around to suit demand.
“Not all cargo goes in bigger ships anyway. We’re a bit smaller but we’re used to going the extra step to attract customers.
“Rotterdam might at the first look be the obvious path, but for custom-made solutions, Amsterdam is sometimes more suitable.”
He cites the port’s pioneering role in handling Russian coal as one example of Amsterdam’s flexibility in action. While other ports baulked at the ‘dirty’ nature of the coal, Amsterdam’s stevedores installed separating magnetic equipment at the port to clean the coal of metal parts picked up in transit before the cargo was on-shipped to power stations for use in electricity generation. “We were the first in Europe to do this, everyone else followed,” said De Ridder.
The port has also forged a unique role in the agribulk trades by encouraging the handling of parcel services by the likes of Cargill. This system enables smaller volumes to be transported without impacting the economies of scale of shipping in bulk because a number of cargo owners can use the same ship and storage facilities simultaneously. Port managers worked diligently with stevedores and shippers to ensure the complex logistics entailed in this type of shipping solution was facilitated across the port, with every detail covered including tariffs, storage facilities and the handling systems used before shipment to the hinterland.
De Ridder said that while Rotterdam had the lead in steel sector cargoes such as petcoke and iron ore, Amsterdam was ahead elsewhere, most recently in the handling of building materials.
“European building material production is going down,” he said. “It’s like coal, it’s too expensive and reserves are limited to produce in Europe now, so increasingly it’s imported via seaports and we have been very successful in getting this business. A lot is produced in Scotland and Scandinavia. The seafloor is also being mined for all types of materials.”
In the first half of this year,Amsterdam increased total volumes by 5.4% compared with a year earlier to over 38mt (million tonnes). Dry bulk products accounted for 15.1mt, up 1.4% year-on-year. Grain and fertilizer throughput increased by 31.5% and 8.2%, respectively, although this was offset by a drop in cattle feed and oilseeds. Coal volume rose 19.3% year-on- year to almost 7mt, and scrap metal throughput jumped 64% in the period.
The first half of 2012 also saw almost 2.5mt of building materials and industrial minerals passing through Amsterdam. The port’s role in the construction industry will be expanded later this year when a major player in the industry is expected to confirm its commitment to operate a terminal in the Australiahaven part of the port. The terminal will have annual transshipment capacity of 1mt.
Maja Stuwadoors will also open a new multi-purpose terminal later this year operating floating cranes on Pier Azie¨ in the Coenhaven area of the port to handle vessels up to Panamax class. The terminal will target agribulk industrial minerals, biomass and other dry bulk cargoes shipped as bulk or breakbulk.
Maja is already operating at the terminal by making use of the public quay on Pier Azie¨ and two warehouses — Loods 7 and Loods 8 — both of which offer 7,500m2 covered storage. But negotiations with the port to ensure dedicated access to the quay are now in their final stages and are due to be signed off in the coming months.
Once fully operational the 37,000m2 terminal will be able to handle up to 1mt of cargo each year.
“There is also a coaster/barge mooring of 90 metres and open storage of around 5,000m2,” said De Ridder. “The existing rail connection is being refitted and should be fully operational in 2013.”
The port has also now received the green light to move forward with a number of major projects that have been in the
pipeline for some time. Most significantly, the City of Amsterdam has now approved
the €700 million investment in a new locks system at Ijmuiden. This will allow direct access to the port of Amsterdam for Capesize vessels within the dimensions of around 17 metres draught, 65–70 metres beam and 500 metres in length. Although approval is for completion of the locks by 2019, De Ridder is confident this will be brought forward and will now happen in 2017/18.
Bulk shippers will also soon benefit from a new lightering facility which has now also finally won €80 million funding and is forecast to be available in 2015. The lightering station, to be located at a harbour on the North Sea at Ijmuiden, will allow two Capesize vessels to be handled simultaneously, doubling current capacity.
Port managers’ long-term aim of winning more control of the port’s commercial manoeuvrability and potential was also secured in July when city officials said the port could be corporatized.
This will see the port, which is currently registered as a municipal company and owned by the City of Amsterdam, become a governmental limited liability company operating under the name NV Haven Amsterdam. All shares will be retained by the City, but the new structure will enable the port to enter more commercial arrangements with port companies and attract investors without loading risk on to the City.
Corporatization will also create opportunities to link the ports of Amsterdam with its North Sea neighbours of Beverwijk, Ijmuiden and Zaanstad. In the future this could even see the ports combined under one management structure.
De Ridder said corporatization will enable managers to embark on more entrepreneurial relationships, both locally and internationally. “It would boost competitiveness and help us win more cargo currently being moved via other Northern Range ports,” said De Ridder.
“The port region will growth through all these initiatives.The port of Amsterdam is located in densely populated area, so we have to make choices. But the region definitely wants a growing port and this is evidence of that.”
In 2011, the German ports of Bremen and Bremerhaven handled a combined 8mt (million tonnes) of dry bulk, which was 3% higher than the 7.8mt reported for 2010, writes Barry Cross.
In the first five month of 2012 around 3.4mt were handled, which was up 12% compared with 2011 (3mt). Robert Howe, managing director of the port authority, suggests that, if dry bulk traffic continues to develop, this could reach 8.5–9mt by the end of the year.
As for commodities, grain and feed stuffs (12% of all dry bulk traffic in 2011), ore (50%) and coal/coke (19%) are the main ones handled in and around Bremen’s harbours. In the first five month of 2012, grain/feed stuffs were up 39% compared with 2011, while ore had increased by 12%. In contrast, coal/coke tonnage had slipped by 6%.
“The recession in 2009 resulted in a 19% (down to 6.5mt) decrease in dry bulk traffic, whereas in 2008 we handled 8.5mt,” notes Howe.
It tends to be terminals in Bremen, rather than Bremenhaven, that handle most dry bulk. Dependent on tidal conditions, Bremen is accessible to vessels drawing no more than 10.7 metres of water. Once deepening of the River Weser is completed, draught will be 11.1 meters.
“Vessel size is clearly dictated by the maximum draught. The largest vessels we see are used to carry ore to the harbour at Bremen, where there are currently five dry bulk terminals,” says Howe.
TRAFFIC AT WESERPORT BROADLY SIMILAR TO LAST YEARWeserport, which is a joint venture between the Rhenus Group and ArcelorMittal Bremen, operates four terminals within the port of Bremen. In 2011, overall it handled 8.2mt of cargo, of
which 6.4mt was dry bulk, which was broadly similar to traffic in 2010. In the first half of the current year, throughput amounted to 3.1mt dry bulk, suggesting that volumes in 2012 will be about the same, too.
According to managing director, Michael Appelhans, bulk traffic at the Weserport facilities is directly affected by developments in the market for steel, influenced above all by the production planning of the ArcelorMittal group.
“Steel-related dry bulk traffic follows other rules than agribulkbuilding materials, who depend on corresponding local buyer/user markets,” he says.
Indeed, the vast majority of its traffic is steel-related, encompassing iron ore, ore pellets, coke, coal, scrap and slabs, as well as minerals/building materials, manganese, peat moss, fertilizers, fish meal, phosphates, recycling material and mineral salt.
“These materials are sourced worldwide and arrive at our terminal via a number of routes. Some come from sources like Australia in transit via Rotterdam, although we also get direct shipments from the Baltic, Mediterranean Sea, Norway and even South Africa. Finally, steel products are exported not just to European customers, but also to destinations around the globe.”
Draught varies from 9.45 metres at the terminals behind the lock gate to 10.7 metres on the river berth where the iron ore terminal is located. Panamax vessels can move beyond the locks, but due to draft limitations cargo capacities usually range around 45,000 tonnes per vessel, depending on the vessel type/construction.
Coke and coal sourced from ports around the Baltic is usually shipped in Handysize vessels or coasters of 5,000–8,000dwt, while all other commodities are shipped in a large variety of vessels, from inland waterway barges to coasters to Panamax bulkers in line with the volume of the consignment being moved.
Handling equipment at the Weserport terminals consists of four 35-55-tonne jib cranes, four 22–45-tonne gantry cranes, one 45-tonne Gottwald harbour mobile crane and one Liebherr 954 high-rise excavator. “Our loading and unloading productivity is very good,” says Appelhans,“but of course depends on the exact handling equipment deployed and storage areas utilised.”
Asked whether any of the dry bulk currently handled by Weserport could be diverted to any competing terminals, he says the majority cannot, since the bulk is destined for/or originated by the local ArcelorMittal steel mill.
“We don’t look at our hinterland in terms of geography, but rather as something defined by the cost effectiveness of the supply chain. The total logistics costs determine whether you can win a contract or not,” he stresses.
AFTER 10% RISE IN 2011, BRUNSBU¨TTEL PORTS FORECASTS CONSOLIDATION FOR 2012
Brunsbu¨ttel Ports GmbH operates two dry bulk terminals: one at Brunsbu¨ttel (Elbehafen) and another one in Hamburg (Aurubis). They handled a total amount of 4,655,868 tonnes of dry bulk in 2011, which was 10.1% more than the amount in 2010. In the first half of 2012, volumes amounted to 2,360,570 tonnes, prompting managing director Frank Schnabel to comment that end-of-year forecasts are expected to be similar to last year, all other things being equal.
Quizzed about the recent impact the downturn in market conditions has had on business in general, he says, “Due to our putting the focus on being a multi-purpose port, we are able to react with total flexibility to all changes within the market. Even during the major economic crisis in 2009, our handling figures grew by 3.9%.”
Major dry bulk commodities handled are copper concentrate (inbound from South America, Asia and Australia), building materials (from Scandinavia) and coal.
Elbehafen at Brunsbu¨ttel has a draught of 14.8 metres, which Frank Schnabel comments is sufficient for all regular dry bulk vessel sizes.
Elbehafen is equipped with four cranes, allowing loads of up to 120 tonnes to be handled. Also available are several wheel loaders and bobcats, as well as a Multidocker crane. Bagging machines are also provided.
At the Aurubis-Terminal in Hamburg, dockside lift consists of two cranes, with a bobcat available and also a bagging machine.
In respect of whether the Brunsbu¨ttel Ports terminals are the end-of-the-line or whether they serve an extensive hinterland, Schnabel explains that Elbehafen is a trimodal terminal, served by water, road and rail, with consignments forwarded to clients using all three modes of transport.
As to whether any of its current traffic could be considered as being ‘captive’ to its two terminals, Schnabel says that all bulk goods theoretically could be handled by other ports, although the copper concentrate traffic had involved the setting up of a complex logistics system, which had only been viable through the signing of a 20-year contract with the customer.
MIXED RESULTS IN NORTHERN FRENCH PORTSAt the inland waterway complex centred around the northern French city of Lille, Ports of Lille reports traffic of 6,159,061 tonnes of dry bulk last year, which commercial manager Dominique Drapier notes was 17% better than the 5,264,591 tonnes handled in 2010.
“It was quite a good result,” he remarks, adding that, in 2012, traffic has continued to rise, albeit slowly. “Given the poor economic situation overall, we would be satisfied with a similar level of traffic to last year’s.”
Asked about the overall impact of the recession, he says it has made it more difficult to make forecasts about the future. Terminal operators in the port have no clear idea of where markets are going and so are having to be cautious. Nevertheless, he believes the market as a whole bottomed out in 2009–2010.
In terms of commodities handled, Ports of Lille is especially strong in building materials, industrial waste, iron/steel products and cereals.
“A large part of our dry bulk traffic comes from (or goes to) coastal ports. This is the case of sand, for the majority of other building materials, coal and for metallurgical goods,” he says.
Because of the loading gauge of the canal linking Lille with the
coast — which is limited to 3,000 tonnes — most consignments are conveyed by individual barges, rather than by barge-trains. However, Drapier stresses that, given that Lille is an inland port, consignment size is not significant anyway.
A maximum draught of 3 metres also precludes the use of larger craft. However, this is not usually a problem, as most companies using the port are well aware of its limitations and adapt consignment size accordingly. Low water is not a problem, either, given that river serving the port have been fully canalized. As a result — and particularly because of heavy rain throughout 2012 — there have been only very small variations in the water level.
Interestingly, the port itself has not invested in dry bulk terminal infrastructure, since consignments are invariably handled directly by customers and not by port stevedores.
“Lille is not the end of the line, but rather a part of the overall logistics chain. We also see our function as trying to persuade as much traffic as possible to move from the road to the waterways and railways,” Drapier says.
Quizzed whether there is scope for existing dry bulk traffic to move either to other modes or other ports, he concedes that there is.
“Our main competitor is the road haulage industry,” he stresses. “We are very close to coastal ports and sometimes shippers find it is easier or cheaper to use road transport instead of rail or inland waterway. In these types of cases, we lose traffic.”
DUNKERQUE STRUGGLES TO CONSOLIDATE 2011 TRAFFIC GAINS
In 2011, dry bulk traffic at the Port of Dunkerque rose 4.8% to 23.79mt. Of this, mineral traffic — 11.32mt — posted a slight increase, which the port authority regards as a “satisfactory result” given the provisional closure of the Lorraine blast furnace. Coal traffic of 7.56mt was a 17.8% increase over 2010 thanks to strong demand from power stations in the UK. In terms of the July 2010 to June 2011 cereals harvest, the
2.34mt handled was a new record. This was reflected in the 2011 calendar year, when cereals increased by 18.6% to 1.98mt.
As for minor bulks (sugar, oil, lime, scrap, slag, etc) these declined by 14% to 2.87mt.
However, the overall positive 2011 performance has not continued into 2012. Traffic to the end of June was down by 6.8% to 11.52mt compared to last year.
Ore traffic slowed considerably, with 5.62mt handled in the half year. Coal, while down in June, was nevertheless up 15% overall to 4.06mt. Minor bulks have also continued to decline, down 16% in the first two quarters to 1.3mt.
However, grain traffic to date has been unable to match last year’s exceptional result, falling 56% to 524,000 tonnes. Despite
this, the grain terminal has moved to upgrade quayside lift, acquiring a 400-tonne in November 2011 from the Port of Le Havre.The grain terminal on Grande-Synthe quay is now equipped with two gantry cranes, which is a strong indication of its policy of developing cereals trafic across its hinterland encompassing the Nord-Pas de Calais, Picardy and Champagne- Ardennes.
VOLUMES AT BRUSSELS RETURN TO 2008 LEVELS THANKS TO BOOST IN BUILDING MATERIALS
The Port of Brussels handles around 24mt of cargo each year, of which one-third is water-borne traffic.
In 2011, transshipped cargo rose by 13%, while goods loaded and unloaded in the port went up by 13% to 4.855mt, returning traffic levels of those to the previous highs recorded in 2008.
Traffic simply transiting the port increased sharply, by 18%. Overall traffic amounted to 7.2mt, up 13%.
The port authority calculates that, thanks to port usage, some 670,000 movements by road were eliminated in 2011, a saving of 100,000 tonnes of CO2.
And it is the port that functions as the city’s main gateway for construction materials. Both sand and gravel increased in volume, as did cement and palletised building materials. Excavated earth also amounted to 220,000 tonnes.
Construction materials increased by 24% to 2.836mt, agribulk declined by 18% to 316.000 tonnes, animal feed was down 20% to 154,000 tonnes, minerals and scrap increased 1% to 118,000 tonnes, while metal products rose by 82% to 53,000 tonnes.