The port of Rotterdam achieved a yield of 218.9 million tonnes in the first six months of 2020, 9.1% less than in the first part of 2019, which was a record flow at the time. Despite the disruptive effect of the COVID-19 pandemic on the economy, production and logistics, the port of Rotterdam was again operational again. The economic effect of the COVID-19 pandemic is the main thing behind the decrease in volume.
Highlights of the first semester:
Allard Castelein, Executive Director of the Rotterdam Port Authority: “The Dutch economy and the port of Rotterdam have the evolution of world trade. The negative economic effect of the COVID-19 pandemic is being felt around the world. It is therefore not surprising that the flow volumes of the last six months have been significantly lower than those of the same time last year. On the plus side, the flow volumes at the moment quarter were higher than originally expected. However, it is not in the nature of Rotterdam to sit and look. For this reason, the Port Authority has carried out a review to determine which public-private investment projects can be accelerated. In this way, the government and port of Rotterdam can paint in combination to strengthen the sustainability of the economy and, at the same time, promote it”.
Developments by freight category
Bulk dry cargo
The dry bulk was 30.8 million tonnes, 19% less than in the first part of 2019. Dry bulk accounts for 14% of the port of Rotterdam. Volume minimisation was basically observed in iron ore and scrap (-22%) (-34%).
Low fuel costs meant more fuel and less coal was used for power generation. In addition, favorable weather conditions have led to a build-up of wind energy, eliminating the need for coal-fired power plants.
There has been a strong accumulation of biomass (up to 109%) due to the continuation of cooking in existing plants.
Bulk liquids
The decline in the category of petroleum products is basically similar to that of fuel oil.
Crude oil flows declined basically due to declining demand. As a result, some giant refineries were operating at a decrease in overall capacity.
The COVID-19 pandemic has led to an additional drop in fuel prices, which has made North Sea and Atlantic Ocean LNG used for electricity generation in Europe.
Containers and bulk
Container yield was minimized by just 3.3% compared to 2019 (tonnes, 7% in TEU). That’s 2.5 million tons less cargo. Shipping companies canceled up to 20% of all facilities in May and June. However, the minimum yield was less pronounced due to the accumulation of stopovers for boats making stopovers in Rotterdam. The number of empty boxes was significantly reduced to a minimum than in the same period last year, as container imports from Asia declined while exports increased.
Progress in the transition of power
Over more than six months, significant action has been taken again in the slow transformation of power and the promotion of circular activity in the port. Like what:
Advances in virtual transition
Our ambition is to be the smartest port and thus our competitive position. Good effects have also been achieved in the area of virtual transition over the more than six months. Like what:
The monetary scenario of the port authority is sound, the peak of ongoing investment
Revenues increased by 0.7% during the era analyzed to EUR 360.4 million. The accumulation was basically due to an accumulation in contract revenue, partly due to new rentals and partly indexation of the value of existing contracts.
Operating expenses increased by 3.5% compared to the first part of the previous year, mainly due to higher operating expenses and other safe one-off expenses. Labour prices fell 1.8 million euros and this is also largely due to an exceptional burden under the senior participation scheme in 2019. Depreciation and amortization greater than 3.6 million euros, basically due to the significant investment programme of recent years.
Profits from pre-tax activities for the first part of 2020 amounted to EUR 128.4 million, 4.8% less than in the first part of 2019. In the first part of 2020, an after-tax profit of EUR 98.1 million was recorded.
Gross investment in the first part of 2020 amounted to EUR 136.4 million. The authority of the Port of Rotterdam intentionally chose to continue to invest in the commercial complex of the port during the period COVID-19. Significant maximum investments for the first part of 2020 were the structure of Theemsweg Road, the structure of the container exchange road and the extension of Maasvlakte Plaza. The investment point for the 2020 total is expected to be in line with last year’s point (2019: 338.3 million euros).
Starter engine: a condiment for the Dutch economy
Investments are smart for the economy and can help it faster.
That is why the authority of the Port of Rotterdam has reviewed the investment projects to see which of them can be implemented. These are the projects that can boost economic recovery, functioning as a kind of starter engine to revive the economy.
The starter engine works in two ways: it accelerates prospective investments in expansion and revenue-generating capacity while accelerating the transition of strength and efforts to make the economy more sustainable. Examples of initial projects come with the structure of a hydrogen network, the deployment of a power source on the dock and the structure of a heating roundabout.
Perspective