Port of Rotterdam in full transition in 2023

Total cargo throughput in the port of Rotterdam this year amounted to 438.8 million t, 6.1% less than in 2022 (467.4 million t). The fall was mainly seen in coal throughput, containers and other dry bulk. Throughput rose in the agribulk, iron ore & scrap, and LNG segments.

• Cargo throughput down by 6.1% due to ongoing geopolitical unrest, low economic growth and high inflation.
• Manifest progress on making industry and logistics chain more sustainable: investment decision made for Porthos, construction of national hydrogen network initiated, new shore power connections in place, land reclamation for Princess Alexiahaven started.
• Key developments in container segment: investment decisions made for expansion of container terminals by APMT and RWG, Container Exchange Route (CER) officially opened, Nextlogic operational, widening of Yangtzekanaal started.
• Stable financial result for Port of Rotterdam Authority.
• Port of Rotterdam investment level continues high.

Boudewijn Siemons, CEO of the Port of Rotterdam Authority stated: "2023 saw ongoing geopolitical unrest, low economic growth due to higher interest rates and faltering global trade, all of which had a logical effect on throughput in the port of Rotterdam. However, the year also saw many major investment decisions and milestones in the transition to a sustainable port. We made the final investment decision for the construction of the CO2 transport and storage project, Porthos. Construction work also began on the national hydrogen network in the port of Rotterdam. And we celebrated a number of significant developments in the logistics segment this year, such as the announcement of the expansions of the APMT and RWG container terminals, and the opening of the CER. All these developments will take us a step closer to a successful and future-resilient port and industrial complex."

The Port Authority had a stable 2023 financially. Revenue rose by 1.9% to €841.5 million, consisting mainly of contract revenue from land lease, and port dues. As a result of price changes and new contracts, contract revenue rose by €28.4 million. Revenue from port dues fell by €4.6 million due to a combination of lower throughput and a higher price per tonne. Operating expenses increased by 3.8% (€10.7 million) to €292.9 million because of higher payroll expenses and overhead. The operating result before interest, depreciation and taxes (EBITDA) rose on balance by 0.9% to €548.6 million. The net result was 5.6% (€13.7 million) down at €233.5 million (2022: €247.2 million). The lower net result was attributable to two one-off items in 2023. Acquired nitrogen deposition rights were revalued downward (€8.0 million) in response to the ruling from the Council of State relating to the 25-kilometre cut-off. In addition, the Porthos guarantee premium (€7.3 million) was booked, leading to a lower result for participating interests. Furthermore, interest expenses in 2023 were €6.8 million higher because of higher interest rates than in 2022. The dividend proposal for the shareholders (the Municipality of Rotterdam and the Dutch State) was €129.0 million (2021: €132.3 million).

The Port Authority invested a total of €295.4 million, almost 15% more than in 2022 (€257.0 million). The largest investments in 2023 were the investments in quay walls for the container sector (€72.9 million), land reclamation for the Prinses Alexiahaven (€23.1 million) and the fendering in the Rozenburg lock (€12.8 million).

The throughput of dry bulk in 2023 was 11.8% down on 2022. A striking development in the agribulk segment was the increase in maize imports by 50% after crop failures due to drought and floods in Europe. Coal throughput fell by 20.3% to 23.1 million t, mainly because of low demand for energy coal for power production. In 2022, demand for energy coal rose sharply due to concerns about energy security and large increases in gas prices. The throughput of crude oil was 9.9% higher at 28.1 million t. Ore stocks were replenished after low imports of ore in 2022 pursuant to low steel production. Outgoing scrap in Rotterdam was 32% higher.

The negative figures for the throughput of other dry bulk were attributable to lower demand for raw materials from European industry. The striking decrease of 49.4% in other dry bulk and the increase of 31.3% in agribulk were caused by a correction of erroneous declarations in the seaport dues system in 2022. After the elimination of this distortion, the decrease in other dry bulk was 24.7% and the increase in agribulk was 3.0%.

Read the article online at: https://www.drybulkmagazine.com/ports-terminals/28022024/port-of-rotterdam-in-full-transition-in-2023/