role of the port authority

8/10/2019 Role of the Port Authority

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Vermelding onderdeel organisatie

1

ROLE of the PORT AUTHORITY

43rd International Port Seminar

Prof. Han Ligteringen


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International Classification

Port Management in the Netherlands

Port of Rotterdam case


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1. International Classification of Ports

into Management Categories


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International Classification of Ports

Port management depends upon among other things

Socio-economic structure of a country

Open market/ open borders

Historical development

Former colonial structure

Location of the port

Urban area/ isolated region

Types of cargo handled

Dry and liquid bulk, containers


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Classification into production factors

Ownership of land

Capital

Labour


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Classification into production factors

Infrastructure

Fairways, harbour basins, quays including bollards andfenders Public roads and flyovers in port areas

Superstructure

Warehouses, pavement of sites, fences Cranes, forklifts, straddle carriers

Labour Dockworkers, crane drivers, forklift drivers

Other functions Security services


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International Classification of Ports

Landlord Port

Tool Port

Public Service Port

Private Service Port


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Port Management Models


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Landlord Port

Strengths Weaknesses

Private terminal operators

are more loyal towardsthe

port and inclined to invest

with a view to long termcontracts (>= 25 years)

Private companies workmore efficient(competition)

Risk of creating over-

capacity due to pressureof different terminaloperators

Risk of mismatch of timingfor additional capacity


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Tool Port

Strengths Weaknesses Investments in port

infrastructure andsuperstructure (e.g. cranes)

are decided by Authorities.

Hence, overcapacity will beprevented.

Both private and public labourinvolved in cargo handling,which might lead to conflict

situations

Private companies have no

own assets and have a labourpool character. Hence, thesecompanies will not develop astrong balance and have

restricted growth possibilities

Risk of too few investments

Lack of innovation


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Public service port


Development ofinfrastructure andsuperstructure includingcargo handling are oneentity

Unity of management

No or limited role of forprivate sector in cargohandling

No internal competition,which might lead to

inefficiency Dependency ofAuthorities (bureaucracy,

public budgets) Operations are not client

oriented Lack of innovation


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Private service port


Maximum flexibilityregarding investmentsand port operations

No public involvement

Market-oriented port-and tariff developments

Monopolistic behaviourof the private operator

Authorities loose thepossibility for developing

long term port policy

Possible high pay-back

costs, in case ofredeveloping port area

Speculation with port area


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2. Port Management in the Netherlands

Until seventies little involvement of Central

Government (The Hague) with development of ports Central Government responsible for accessibility at

seaside and landside including maintenance and

(nautical) safety of fairways In Amsterdam en Rotterdam historically municipal port

management

In fifties development of regional port authorities(regional policy of Government)


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Throughput Dutch Seaports

Cluster Throughput

Northern seaports 4,4 million tons ( 0,9%)

Noordzeekanaal ports 74,9 million tons (15,2%)

Rhine - Meuse Estuary 81,5 million tons (77,6%)

Scheldt 30,5 million tons ( 6,2%)

Total Netherlands 491,3 million tons (100%)


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Port Management in the Netherlands

As from the seventies more attention from CentralGovernment

Economic policy Stimulate/ discourage of growth in economic regions

because of primary economic function of ports

General tuning of policy in different sectors Employment, spatial planning, environment

Undesired, autonomous growth of seaports

Prevention of overcapacity


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Port Management in the Netherlands (2)

Huge investments in infrastructure

Municipalities cannot bear these investments International framework

EU regulations

Representation in international bodies e.g. IMO


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3. Port of Rotterdam Case

Description of port and industrial complex

Port of Rotterdam Authority(Havenbedrijf Rotterdam N.V.)

Positioning

Internal organisation

Corporatisation


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Port overview


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Waalhaven


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Food- and Fruit port: Merwehaven


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Botlek


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Europoort


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Maasvlakte


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Port entrance: Nieuwe Waterweg


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Key Figures

SurfaceSurface:: 10.500 ha10.500 ha

Commercial sites:Commercial sites: 4.900 ha4.900 haPercentagegrossPercentagegross nationalnational product : 7%product : 7%

EmploymentEmployment in port:in port: 65,00065,000

TotalTotal employmentemployment:: 315,000315,000

AddedAdded valuevalue:: 2323 billionbillion


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Port Infrastructure 2005

Total port length 40 km

Total quay length 77 km Tank storage 33.3 Mio m

Pipeline network 1,500 km

Nautical accessibility 22,5 m draft

Seagoing vessels p.a. 33,000

Inland barges p.a. 140,000


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Throughput 2005

Total throughput: 369 million tons

Dry bulk cargo: 90 million tons (24%)

Liquid bulk cargo: 170 million tons (46%)

100 million crude oil Containers (9,3 mln TEU): 91 million tons (24%)

Other general cargo: 18 million tons (4%)


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Core Tasks Port Authority

The Port Authority has two key objectives in fulfilling

its core task: To promote the effective, safe and efficient

handling of shipping and to arrange for nautical and

maritime order and safety, as well as acting as thecompetent port authority in the port of Rotterdam

To develop, construct, manage and commercially

operate the port of Rotterdam


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Nautical control, safety and security

Traffic management and operations Planning (HCC)

Traffic Services (Vessel Traffic Centres)

Patrol vessels (incident response)

Bridges and locks

Transport and environmental safety

Noxious goods department (inspections)

Central reporting centre

(Fast) patrol vessels (inspections) Port security

b C di i C ( CC)


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Harbour Coordination Centre (HCC)

N i d D G d D t t


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Noxious and Dangerous Goods Department

P t C ti ti Wh ?


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Port Corporatisation Why?

Port managed by Rotterdam Municipal Port

Management as public branch during 70 years

Management model less effective nowadays

Three mayor developments relevant

Business world

City of Rotterdam Central Government and EU

P t C ti ti ( t)


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Port Corporatisation (cont)

Business world

Changes in competitive positions between ports asks

for more commercial power (quick and flexible) andmore efficient management(less political influence)

Municipality has primarily a local focus(driven by the electorate)

Port management has a businesslike, internationalfocus (client oriented)



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Central Government and EU

Preconditions to a high degree established by CentralGovernment

Regulations regarding spatial planning, environment

and safety Hinterland connections

EU regulations

Rotterdam as municipality is nota discussionpartner for EU, Central Government is


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Port Corporatisation (final)


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Port Corporatisation (final)

As from 1st January 2004 public enterprise

Shares initially 100% owned by Rotterdam Municipality(Not a privatisation!)

As from 1st January 2006 Central Government owns25% of the shares

Board of Commissioners (from business world) Port Management one entity

Both commercial as well as public tasks in one

organisation Employees are not longer civil servants

role of the port authority

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