Figures show Rotterdam ‘attractive for business’

Last year saw turnover at the port increase by 2.6% to €676.9m thanks largely to more port dues following a 4.9% rise in the throughput of goods.

Nevertheless, profits fell by 1.7% to €211.6m due to a one-off payment of €19.2m in redemption of a long-term loan which was used to fund the construction of Maasvlakte 2.

Despite this chief financial officer, Paul Smits believes costs are under control and profit development is sound.

“Our financial situation shows a positive development. For the second consecutive year after the construction of Maasvlakte 2 the cash flow is positive, which allows us to continue to invest in the port and at the same time improve our debt position,” he explained.

“The fact that our revenues have not increased to the same extent as the throughput shows that we are making an effort to keep Rotterdam attractive for business,” added Mr Smits.

The two main sources of income for the port authority are the lease of sites and the seaport dues that ships pay when they visit the port. Revenues from the lease of sites rose by 1% to €340.8 million.

This represents the allocation of a site to Sif-Verbrugge at Maasvlakte 2, indexation of contracts and renewal of contracts at revised prices, and termination of the contract with Shtandart, resulting in the port authority recovering a site.

Although throughput rose by 4.9%, port dues increased by a smaller 3.4% to €316.5 million, owing to the port authority granting environmentally-friendly ships discounts totalling €3.8 million. Overall, operating revenues rose by 2.6% to €676.9 million.

Operating expenses rose by 3.3% to €133.6 million, mainly due to higher costs for the management and maintenance of port infrastructure and investments in innovations such as PortXL and SmartPort.

Costs for internal business operations remained stable. The income from participating interests amounted to €8.9 million, over 50% more than the previous year. The size of this item is determined mainly by the successful participation in the port of Sohar (Oman).

In conformity with long-term agreements, the port authority will propose to its shareholders – the municipality of Rotterdam (70.83%) and the state (29.17%) – to pay dividends of €91.0 million for 2015: €64.5 million to the municipality, and €26.5 million to the state.

The mission of the Port of Rotterdam Authority is to create economic and social value by generating sustainable growth together with customers and stakeholders. Investments in 2015 included new buoys and dolphins in the Caland and Hartel Canals, the construction of the LNG Breakbulk terminal, quay walls for UWT and Sif-Verbrugge, a jetty for LBC and the redevelopment of RDM Rotterdam.

The port authority is currently considering an appeal against the European Commission’s recent decision compelling the port authority to pay corporation tax from 1st January 2017.