1
Port of RotterdamInvestment managementPort Development and LogisticsJakarta October 10th, 2011
By: Capt. Kees. J. WeststrateSr. Project ManagerPort of Rotterdam International
2
Legal structure Port of Rotterdam
Municipality of
RotterdamDutch State
Port of Rotterdam N.V.
70% 30%
3
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.
4
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)
2
5MV2 6
Example LNG Gate
7
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
8
Investments in the port2008 - 2015: € 15 billion
Infrastructure
24%
Energy/LNG
34%
Refinery/tank storage
15%
Biofuels
9%
Containers/Break bulk
14%
Miscellaneous
4%
3
9
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
10
Income sources PoR (in mln €)
249
14
288
Port dues Contract income Other income
x
11
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
12
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
4
13
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
14
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
15
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)
16
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).
5
17
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
17
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
19
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?
Top Related