Amsterdam hopeful about maintaining current market share

With the sale of Rietlanden to the German logistics giant Rhenus, the Amsterdam port seems to be taking a substantial blow towards the ambition to be coal-free by 2030 at the latest. At the same time, this megadeal raises pressing questions. For example, what is needed to compensate for the loss of the coal flow and also keep the port on track economically until 2030? ‘We say goodbye to the coal, not the customer. ’

 

When Port of Amsterdam CEO Koen Overtoom pronounced the sustainability ambitions for the Amsterdam port in 2017, there was not a word of Russia being coal-free in 2030. You could describe that as a slap on the table, but it is still more nuanced, says Roon van Maanen, Director Energy & Circular Industry at POA. ‘ Apart from geopolitical shocks, you cannot escape policy shocks in a colossal transition such as that of energy. At the same time, the coal decision is well thought out, because we are taking a period of 13 years for it. Every link in the current energy system can therefore prepare for the loss of coal flow and our terminals also know in time where they stand in terms of investments. In addition, they can start attracting other business in time. That complex process takes time, because it is clear that we cannot go through the china cabinet like an elephant. We are dealing with many interests, such as security of supply of energy. We therefore want to have alternatives ready for the storage and transhipment of coal in time. ’

 

Rhenus' takeover of Rietlanden is an essential step forward in that process. Now Rhenus still holds a minority of shares, in addition to majority shareholder Jera. In 2027, Rhenus will also acquire the remaining shares in the two Rietlanden terminals. Depending on the measuring moment you choose, it is possible to determine which potential volume recovery in coal transshipment you are talking about, Van Maanen explains. ‘ In 2022 we experienced a volume peak of 14 million tons due to the outbreak of the war in Ukraine. However, if you look at averages in the previous years, you will end up between 7 and 8 million tons of coal transfer. I expect to get out of there again this year. ’

 

This raises the question of how to compensate for this substantial decrease in incoming flows. According to Van Maanen, this will mainly have to come from other dry bulk flows. ‘ Think of agri-products and raw materials from the construction sector, such as sand and gravel. In addition, we expect scrap as a circular current to play a role in recovering volume, just like general cargo-like metals. ’ The fact that there are several alternatives is hopeful. Yet it is still quite a task. ‘ We are of course in competition with other ports for these bulk flows. The question is therefore whether you continue to grow in total volume or whether you only compete for pieces of the same cake. Either; will that cake get bigger or will we just distribute it differently? ’

‘ Think of agri-products and raw materials from the construction sector, such as sand and gravel'

 

Van Maanen is hopeful about holding the current market share in transshipment. ‘ It is part of our four-year strategy to maintain the current market share while growing in transhipment of non-fossil cargo. I like that because we have a good competitive position. We have exactly the right scale size. Not too big so that the customer snows in a large port complex, so to speak, but large enough for sufficient clout and port ecosystem to attract other cargo flows to us and to handle this logistically well. In addition, there are plenty of logistics connections with the hinterland and the new Zeesluis and the Energiehaven for offshore wind farms will help us. Of course it is relevant to respond to the customer wishes as well and flexibly as possible as a terminal.The players in our port also have these options. The following applies to the energy transition: we say goodbye to coal, not to the customer. ’

 

Although Van Maanen can make a fairly good estimate from his position about the future of the terminals and logistics activities, it is still too early for absolute statements. ‘ The conversation with Rhenus has yet to be conducted. We will first have to hear how they want to achieve the 2030 ambition while maintaining sufficient transshipment volume. Of course we think along with this and we advise if desired, that is our role as a port in this process. But in consultation with the Port Authority, it must ultimately come from Rhenus. ’

 

‘ It is not inconceivable that in a few years' time it will appear that the goals are still out of reach. What should be done then? ‘ Then you could see if it is not better for certain areas to return to the Port Authority. It is difficult to predict how this will proceed. It will all have to show in the coming years, but Rhenus and HES are of course large players with very diverse activities. ’

 

Jeroen van der Neut is COO within HES, among other things responsible for the strategic further development of HBTA ( HES Bulk Terminal Amsterdam ). The company, with the core business of storing and transshipment dry bulk goods, has experience in the loss of coal flows. When the coal-fired Hemweg power station closed, then OBA, was confronted with a sudden drop in coal. The company decided to build on attracting other product flows. This strategy is still leading in light of a coal-free port in 2030. The purchase of IGMA in 2021 was an important part of this. Van der Neut: ‘ We have a former, large coal storage field emptied to build a new warehouse for agribulk storage, concentrating all agri volumes on one terminal at Westhaven.This also means that we have one to one and a half million tons less of coal throughput. That is quite substantial. ’

 

Van der Neut continued to work with his team on a strategy to deal with dropped volumes. First of all, he decided to look at how to bind flows to you. ‘ We do this, among other things, by offering other companies at our terminal at Westhaven the opportunity to install their production facilities there, provided that this results in our work on the quay. This concerns our core business, storage and transhipment of dry bulk goods. ’ Van der Neut is currently in the middle of negotiations with potential candidates, which means that no changes are physically visible on the terminal site yet. It is a process of perhaps five to seven years before the terminal is fully equipped for other product flows and that are actually stored and stored.‘ I am not concerned about the required approval of the Port Authority with which we work closely. More challenging are environmental permits or adjustments to them. As a result, the movement of coal and the search for a different interpretation of our terminal is a long-term process. ’

 

Cooperation is crucial to be effective in the energy transition, he concludes. ‘ This is a transformation that you don't do on your own. We are therefore moving in with the Port Authority and with companies that want to settle at our terminal. ’ When asked about the HBTA terminal in 2030, Van der Neut envisions an industrial park. ‘ With an obvious role for us in terms of transhipment on the quay side and in terms of product storage. But I also see other parties that take up their part of our site for their manufacturing work. And perhaps a collaboration that extends to, for example, the exchange of heat where one has a surplus and the other has a need. I expect that we will see beautiful synergy in 2030. ’