The Port of Rotterdam and the Future

History
The muddy estuary (rotta) of the Maas River became a settlement in the 10th century CE. A few hundred years later, a dam was built in the rotta, giving the fledgling seaport its name: Rotterdam. By the 14th century the Rotterdam Schie, or shipping canal, had been fully dredged, giving birth to what would one day become the world’s most important shipping port (“A History of the Port of Rotterdam,” 2015).
Rotterdam immediately gained traction as a pivotal shipping destination because of its strategic location linking England with not just the Netherlands but also the rest of Europe. Trade routes boomed during the Age of Exploration and Imperialism, boosting the significance of Rotterdam especially as the Dutch East India Company dominated global trade.
During the Industrial Age, Rotterdam suffered a major setback as the rotte, its naturally muddy estuary, proved too shallow for high tech industrial barges. The city of Rotterdam responded immediately to the crisis by constructing a new waterway, or Nieuwe Waterweg, by 1872 (“A History of the Port of Rotterdam,” 2015). Crisis averted, the Nieuwe Waterweg helped retain the Rotterdam’s status as one of the world’s most important shipping ports. Seamless connections on rail and river ensured Rotterdam would become the world’s largest port, a position it occupied for much of the 20th century.
With the Nieuwe Waterweg, the Port of Rotterdam also bolstered shipping ties with the rest of Europe. Since the Industrial Age, the Port of Rotterdam has made successive improvements to the depth and stability of the Nieuwe Waterweg to enable it to accommodate newer and different sized vessels. In the 1960s, Rotterdam commenced construction on the Gate to Europe (Europoort) complex. Completed in the 1970s, the Europoort also entailed massive land reclamation projects that displaced sand banks to allow for the largest possible shipping vessels in the world (“A History of the Port of Rotterdam,” 2015). Called the Maasvlakte, the massive new shipping port recently received a sister port simply called Maasvlakte 2. Improved rail and road connections also helped Rotterdam retain its reputation for reliability and shipping capacity.
Current Status and Competition
By the time the Maasvlakte 2 was completed in 2013 Rotterdam had lost its superlative status as the world’s largest shipping port. However, the Maasvlakte 2 proves Rotterdam’s commitment to remaining the largest shipping port in Europe and still one of the globe’s most important. Currently outpaced by both Shanghai and Singapore, Rotterdam is still the largest in Europe and third largest in the world not just in terms of its footprint but also in terms of throughput. The Port of Rotterdam currently occupies about 105 square kilometers, or 41 square miles. Throughput numbers in 2014 were at about 445 million tonnes of cargo, ranking Rotterdam 8th in the world. Those numbers actually increased in 2016, when the Port of Rotterdam saw more than 461 million tonnes of dry bulk, liquid bulk, containers, and breakbulk pass through the Maasvlakte and Massvlakte 2 (Port of Rotterdam, 2016, “Facts and Figures”). The Port of Rotterdam has more than 20 moorages, over 120 bulwarks, 29 tugboat facilities, six pilot boat facilities, 95 liquid and dry cargo depots, moorage for cruise liners and also for vessels navigating internally (Karan, 2016).
Major competitors to Rotterdam started to emerge by the late 1980s, when Singapore and Shanghai rose to ascension as global shipping ports. Although Rotterdam remains number one in Europe, followed by regional rivals only like Antwerp and Hamberg, it is China that presents the most significant competition. Of the top ten shipping ports in the world based on throughput tonnage, seven are located in China including Shanghai, Suzhou’s river port, Tianjin, Guangzhou, Tangshan, and Qingdao. Singapore ranks third in the world. The only other non-Chinese shipping port to make the top ten in throughout is Port Hedland in Western Australia, mainly because of its being the hub for mining and other raw materials output.
Although competition for throughput and containers (TEU) remains strong and will only become more contentious, Rotterdam has little to worry about in terms of attracting global investors. The main reason why Rotterdam remains ahead of the competition in Europe and contends with China worldwide is its infrastructure. Five times in a row, the World Economic Forum has named Port of Rotterdam the best in the world for sites and terminals such as refineries, utilities, containers, and storage (Port of Rotterdam, 2016, “Facts and Figures”). Rather than focusing on throughput quantity, Rotterdam remains dedicated to quality.
Strategy: Logistics, Transportation, Storage
Since the early 20th century, Rotterdam has built its port around the burgeoning oil industry. Oil and petroleum products, primarily liquid, remain the core cargo throughput. Crude oil, mineral oil, liquid natural gas, and other liquid bulk comprises more than 200 million tonnes per year. Dry bulk including iron ore, scrap, coal, agribulk, and other general bulk raw materials and containers comprise most of the remainder of Rotterdam’s throughput (Port of Rotterdam, 2016, “Facts and Figures”). Oil and chemical processing fuel the Port of Rotterdam’s business, logistics, and supply chain strategies. Due to its solidification as a reliable and strategic port authority, and its geographic location, Rotterdam has developed Europe’s most diversified and advanced cluster of oil and chemical refineries and distribution networks (Hurenkamp, 2017). Virtually all petrochemical clusters are represented in Rotterdam including olefins, aromatics, polyurethane, polyester, and chlorine (Hurenkamp, 2017).
Rotterdam has access to not just train, road, and river shipping passageways that link the port to the entire European contient, but also 1500 kilometers of liquid bulk pipelines (Hurenkamp, 2017). The natural setting of the port has enabled it to grow from the muddy estuary it was a thousand years ago to one that has capacity for deep sea vessels as well as shortsea/feeder vessels, direct lock-free access, and zero draft restrictions (Hurenkamp, 2017). According to Hurenkamp (2017), Rotterdam boasts four “world-scale” oil refineries, as well as “more than 40 (petro)chemical companies, 3 industrial gas producers and 13 major tank storage and distribution companies in the port area,” (p. 1). With unparalleled processing facilities, logistics and transportation networks, chemical feedstock, plant, and storage facilities, Rotterdam remains critical to Europe’s overall infrastructure. Logistics infrastructure is internal, with immediate access to feeder services.
Enhancing its transportation logistics, Rotterdam also boasts the best possible options for storage, warehousing, and distribution. The oil and chemical clusters at Rotterdam include both private producer-built and managed storage facilities but also independent and third party storage for oil and chemicals. The diversification of the oil and chemical port storage sector attracts new investors and expands opportunities for supply and distribution. Total storage capacity for bulk liquids alone is currently at 30 million cubic meters, including not just crude and mineral oils like gasoline, diesel, kerosene and naphtha, but also edible oils (Hurenkamp, 2017). Of course, Rotterdam offers opportunities for storage of both hazardous and non-hazardous bulk and manufactured goods. Hazardous goods storage and distribution specialists like Steinweg and De Rijke make their homes in Rotterdam’s port.
Cold stores offer tremendous opportunities for fruit and other temperature sensitive goods storage. Moreover, the nearby Waalhaven terminals have “reduced truck movements by 40% and significantly cut CO2 emissions” as a result, in keeping with the Port of Rotterdam’s commitment to environmental sustainability in its continued growth and development as one of the world’s premier ports (Opticool, 2017).
Strategy: Innovation
One of the reasons why Rotterdam has continually edged out regional rivals like Hamburg while also remaining in the same league as global shipping port giants like Singapore and Shanghai is innovation. Innovation is built into the Rotterdam business model. For example, the Port of Rotterdam offers financial incentives for barge congestion solutions, coordinates with the railroad system to prevent bottlenecks and delays, and lobbies the European Union successfully and aggressively to prevent tax incentives from enabling rivals to receive tax breaks or further subsidies (JOC, 2017). Unfortunately for Rotterdam, though, the European Union has offered strategic incentives to help grow rival ports. The Dutch government remains the only one in Europe still responsible for paying corporate taxes (JOC, 2017). However, the Port of Rotterdam has mitigated regulatory and tax impediments with strategic innovation and effective strategic management. The Rotterdam Dry Docks area and the Research, Design & Manufacturing (RDM) is an area dedicated to innovation and progress (Rotterdam Tourist Information, 2017).
Strategy: Environmental Sustainability
Sustainability and social justice are not necessarily in conflict with the strategic management goals of the Port of Rotterdam. The Port of Rotterdam offers real incentives such as port dues discounts for cargo ships that are “green,” by reducing their total greenhouse emissions and/or utilizing innovative operating procedures (Port of Rotterdam, 2017, “Clean Vessels: Real Discount”). In conjunction with several other European ports, the Port of Rotterdam started the Environment Ship Index (ESI) under the general rubric of the World Ports Climate Initiative (WPCI). The ESI assesses emissions of nitrous oxides (NOx), sulphur oxides (SOx) and carbon dioxide (CO?).
Discounts are part of the Port of Rotterdam’s overall strategy for reducing the environmental footprint of a port that otherwise banks on heavy oil and petrochemicals traffic. According to the Port of Rotterdam, “ocean-going vessels arriving in Rotterdam with an ESI score of 31 points or more are rewarded with a 10 per cent reduction on the gross tonnage portion of the port fees.” These incentives can be combined with additional discounts for scoring well on the NOx index measured through the ESI. The Port of Rotterdam recommends using liquid natural gas or large catalysts for shipping vessels to achieve green goals. Payouts have been impressive so far, with over 3 million Euro given to vessels with good ESI ratings (“Port of Rotterdam, 2017, “Clean Vessels: Real Discount”). Moreover, the Port of Rotterdam offers another six percent port fee discount to vessels with the Green Award. The Green Award is issued by an independent organization to “vessels and shipping companies that have made additional investments in vessel and crew and, in doing so, place a particularly high priority on environmental performance, safety and quality,” (“Port of Rotterdam, 2017, “Clean Vessels: Real Discount”). Suitably, oil, liquid natural gas, or product tankers with a load capacity of 20,000 tonnes or more are eligible for the Green Award. Sustainability incentives are not just offered to large seagoing vessels but also to the smaller inland shipping vessels, which can receive harbor and passage discounts of up to 30 percent. Simultaneously, the Port of Rotterdam has started to give surcharge fees to inland shipping vessels that do not meet CCR2 emissions standards (“Port of Rotterdam, 2017, “Clean Vessels: Real Discount”).
Strategy: Socially Conscious Development
With 175,000 employees, the Port of Rotterdam ensures that the local community is thriving and committed to an accessible, safe, and aesthetically pleasing port area that includes public walkways, art installations, and tourism opportunities. Public infrastructure, human resources, site development, and shipping traffic management are only some of the roles that fall under the rubric of the Port of Rotterdam Authority (PoRA). The PoRA is managed as a “non-listed public limited company,” with three-fourths of its shares held by the Municipality of Rotterdam and the remaining 25% held by the federal government (“Port of Rotterdam, Netherlands,” 2017). The port authority alone employs 1200 people (“Port of Rotterdam, Netherlands,” 2017). Corporate social responsibility is integral to the Port of Rotterdam’s operations and organizational structure.
Tourism and the arts are integral to the future of the Port of Rotterdam. Located on the Maas River, the Port of Rotterdam boasts options for tourists and residents to enjoy walking and bicycle riding, as well as organized tours of the port itself. Rotterdam Tourist Information (2017) claims that the waterfront surrounding the massive port area is a “beautiful spot for a stroll,” due not just to the well-maintained pathways but also to the Willemskade, Maaskade, Willemsbrug, Noordereiland, Wilhelminapier and Erasmus Bridges. Water taxis, boat tours, bicycle tours, and even tours of the container shipping area are all possible, enhancing the quality of life for residents and visitors.
Promoting the arts is critical for the socially conscious vision of the Port of Rotterdam. For example, the M4H is a progressive and “untamed area currently being developed as a testing grounds for artists, designers and other visionaries,” (Rotterdam Tourist Information, 2017). Surrounding areas of the city of Rotterdam have thrived due to the port’s industrial aesthetic. Scheepvaartkwartier, the Oude Haven, Historic Delfshaven and the Katendrecht peninsula are all lively areas that host music and cultural festivals and will continue to do so in the future.
Future Plans: Port Vision 2030
In 2011, the Rotterdam City Council unveiled Port Vision 2030. Port Vision 2030 is a comprehensive report detailing the measurable success factors for the future of Rotterdam. Strategically abandoning any attempt to rival Chinese ports for throughput numbers, the Port of Rotterdam is instead committed to being “the best, the smartest, and the most sustainable” (Port of Rotterdam, 2016, “Facts and Figures”). Information technology infrastructure and automation are core focal points for the Port of Rotterdam, to make logistics and shipping far more efficient than they are already. The Port of Rotterdam is remarkably on track to meet their 2050 goal of being near-zero on CO2 emissions (Port of Rotterdam, 2016, “Facts and Figures”). One way the Port of Rotterdam is achieving their Port Vision 2030 is by investing heavily into hydrogen, which “may well be the fuel of the future,” (Port of Rotterdam, 2016, “Facts and Figures”). In addition to purchasing hydrogen cars for use at the port, the Port of Rotterdam aims to transform the utilities and energy infrastructure of the region by supplying alternative energy such as taking residual heat from refineries and sending it to greenhouses and private homes (Port of Rotterdam, 2016, “Facts and Figures”). The Port also has in place a plan for recycling residual waste from its own chemical plants, and constructing wind turbines at sea. The Port of Rotterdam’s vision for the future encompasses sustainability, accessibility, safety, and corporate social responsibility, and has in place a plan of action that is feasible and realistic.










References

“A History of the Port of Rotterdam,” (2015). Twente. Retrieved online: https://www.marineinsight.com/ports/the-port-of-rotterdam-the-biggest-port-of-europe/
Hurenkamp, J. (2017). Port of Rotterdam. Chemical Parks in Europe. Retrieved online: https://chemicalparks.eu/parks/port-of-rotterdam
JOC (2017). Port of Rotterdam. Retrieved online: https://www.joc.com/port-news/european-ports/port-rotterdam
Karan, C. (2016). The port of Rotterdam. Marine Insight. Retrieved online: https://www.marineinsight.com/ports/the-port-of-rotterdam-the-biggest-port-of-europe/
Opticool (2017). Port of Rotterdam. Retrieved online: http://opticool.nl/en/about-opticool/port-of-rotterdam/
Port of Rotterdam (2016). Facts and figures. Retrieved online: https://www.portofrotterdam.com/sites/default/files/facts-and-figures-port-of-rotterdam-2016.pdf
Port of Rotterdam (2017). Clean vessels: Real discount. Retrieved online: https://www.portofrotterdam.com/en/news-and-press-releases/clean-vessels-real-discount
“Port of Rotterdam, Netherlands,” (2017). Retrieved online: http://www.ship-technology.com/projects/portofrotterdam/
Rotterdam Tourist Information (2017). The port. Retrieved online: https://en.rotterdam.info/locations/the-port/