annual report 2010 port of rotterdam 1

You have given the instruction to download a selection from the Annual Report 2010 of the Port of Rotterdam Authority.

This information is derived from the Annual Report 2010 of the Port of Rotterdam

Authority as approved on 2 March 2011 by the Supervisory Board. The Port of

Rotterdam Authority has taken the utmost care to ensure the accessibility, accuracy

and completeness of the contents of the online version of the Annual Report 2010.

In the event of differences or inconsistencies between the online Annual Report on

this site and the original Annual Report audited and certified by Ernst & Young, the

latter will take precedence. The original Annual Report is filed at the office of the

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

The Annual Report 2010 of the Port of Rotterdam Authority has been audited

by Ernst & Young and provided with an Auditor’s Report. For full information

on the assignment, the work and the opinion of Ernst & Young, we refer to

the Annual Report as a whole as placed on the website of the Port Authority

www.portofrotterdam.com/annualreport.

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annual report 2010 ‘World-class in action!’

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The Port of Rotterdam Authority Annual report 2010 1Contents

Contents

Foreword by the Executive Board 4

Introduction 9

Report of the Port Authority 11

1 The Port of Rotterdam 12

2 About the Port of Rotterdam Authority 16 2.1 The Port of Rotterdam Authority in brief 17

2.2 Mission, vision and strategy 18

2.3 Corporate Social Responsibility 20

2.4 Organisation 22

2.5 Corporate Governance 23

2.6 Employees 26

2.7 Participating interests 29

3 Harbour Master 32 3.1 The Harbour Master in brief 33

3.2 Smooth handling of shipping 34

3.3 Nautically safe 35

3.4 Safe transport 37

3.5 Clean (environmentally safe) 39

3.6 Secure 41

4 Customer 42 4.1 Customer in brief 43

4.2 Our relationship with the customer 44

4.3 Our market position 46

4.4 Port Marketing 50

5 Area and space 51 5.1 Area and space in brief 52

5.2 Maasvlakte 2 53

5.3 Existing port area 56

6 Traffic and accessibility 59 6.1 Traffic and accessibility in brief 60

6.2 Road 61

6.3 Rail 63

6.4 Inland shipping 65

6.5 Pipelines 67

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The Port of Rotterdam Authority Annual report 2010 2

7 Environment and sustainability 69 7.1 Environment and sustainability in brief 70

7.2 Sustainability 71

7.3 Rotterdam Climate Initiative 78

7.4 Dialogue 80

7.5 Innovation 83

7.6 Labour market and education 85

8 Finance 87 8.1 Result 88

8.2 Cash flows 90

8.3 Financing 92

9 Outlook 2011 94

Report of the Supervisory Board 96

Financial Statements 2010 100

Key figures 2010 128

1 Cockpit: Financial 129

2 Cockpit: Personnel 131

3 Cockpit: Harbour master 132

4 Cockpit: Throughput and market share 133

5 Cockpit: Critical Preformance Indicator (KPI’s) 2010 139

About the Annual Report 142

About the annual report 143

Independentauditor’s report 150

Appendix 149

Contents

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The Port of Rotterdam Authority Annual report 2010 3Contents

Appendix I 150

Appendix II 154

Appendix III 155

Appendix IV 160

Colophon 181

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The Port of Rotterdam Authority Annual report 2010 6Foreword by the Executive Board

Foreword by the Executive Board

Van links naar rechts: Hans Smits en Thessa Menssen

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Port and Port of Rotterdam Authority stay on course

The port of Rotterdam is performing well. In 2010, the throughput of goods

recovered faster than expected leading to an increased market share. In addition,

we invested substantially in Maasvlakte 2 and the existing port area. To ensure that

Mainport Rotterdam remains an important factor in both the national and European

economy, we keep on investing in a world-class port. This Annual Report informs you

how we do this by, on the one hand presenting the 2010 figures and, on the other,

looking at the future developments of our own organisation and also those of the

port of Rotterdam. Herewith, we wish to inform you about several important

achievements and future expectations.

Before we do this, we would like to give some

thought to a very sad occurrence in 2010. The good results of 2010 were

overshadowed by a helicopter crash during the Tour du Port organised by us on

27 June 2010. This accident took the lives of four persons, including our colleague

Martijn Hessing. Furthermore, one passenger was severely injured. Several

colleagues witnessed this fatal accident and it has made a deep impression on

all our employees.

Quick recovery of throughput

The recovery of world trade started in the second half of 2009 and grew faster than

expected in 2010. In 2010, world trade grew by 15%. The throughput figures of most

ports in the Hamburg – Le Havre range show a similar recovery curve for 2010. The

throughput in the port of Rotterdam increased by 11.1% in 2010 amounting to 430

million tonnes, exceeding the level of the record year 2008. Almost all segments

showed a positive development in 2010. The port continues to profit from strong

European exports, leading to a growing demand for raw materials. In 2011, we

expect throughput in Rotterdam to increase by a further 2.6%.

Partly due to the throughput recovery, the net result increased to € 154.2 million in

2010. This was an increase of € 10 million (excluding exceptional items) compared

to € 144.2 million in 2009. In 2010, the level of investment in the port of Rotterdam

reached an historical high. Our investment aims at safety, space for growth,

accessibility and sustainability.

Harbour Master: clean, efficient, safe, secured

The clean, efficient, safe and secured handling of shipping is one of the core

activities of the Port of Rotterdam Authority. The number of seagoing vessels rose

by 3% in 2010 compared to 2009. Despite a few incidents, the handling of shipping

continued to be efficient and safe.

On Thursday 21 October 2010, Princess Magriet of the Netherlands and Pieter van

Vollenhoven jointly opened the Traffic Coordination Centre in the Botlek. The new

coordination centre integrates the work of the traffic coordination centres “Stad” and

“Botlek”. The combination of the two traffic coordination centres will improve the

efficiency of ship handling in the port of Rotterdam.

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Space for growth

Two thirds of our investment in 2010 was related to the construction of Maasvlakte 2.

This important land reclamation project is on schedule. In 2010, two thirds of the

intended sand works (240 million m3) were raised and the construction of the first

quay walls and solid sea defence started. The Maasvlakte 2 project is an investment

for the future. It will enhance our long term position and our ability to anticipate the

growth in container handling and other developments requiring space.

Not only are we working on the expansion of space. To accommodate growth we are

also continuing to look for possibilities to restructure and intensify the terrains

already available. Good examples of growth by intensifying the existing port area are

initiatives that enhance the energy related activities in Rotterdam (Rotterdam Energy

Port). In this respect, the construction of the LNG import-terminal is on track. In 2011

we expect the first vessels to moor at the terminal. In addition, we will start an

important process of intensification of the container sector. As a result of a decision

taken in 2010 to broaden the Amazonehaven, the ECT Delta Terminal will also be

accessible for the largest container vessels on the terminal’s south side.

In 2010, we also concluded a collaboration agreement with the municipality of

Dordrecht concerning the integration of the management, exploitation and

development of the seaports of Rotterdam and Dordrecht. This collaboration will

start in the middle of 2011, and will enable both parties to achieve synergy and scale

advantages.

Accessibility

The port of Rotterdam can accommodate the largest seagoing vessels. Due to the

excellent access to the European hinterland via sea, inland shipping, rail, roads and

pipelines, Rotterdam is an important hub in the logistic chain. Growing throughput

leads to an increase in the traffic capacity required. We are, therefore, investing in

the extension of infrastructure and in innovative and sustainable traffic concepts. Our

aim: fewer goods by road and more goods by water and rail (modal shift).

De Verkeersonderneming, a foundation in which we participate, introduced a number

of measures to stimulate a reduction of the number of cars on the A15 during rush

hours. In order to avoid the bottlenecks at the Rotterdam cross-section (Rotterdamse

Ruit), we believe it is important that the New Western Riverbank connection (NWO)

is in operation by 2018. Consequently, we have allocated people and resources to

the project organisation ‘Rotterdam Vooruit’ to speed up this process. In 2010, we

started operations in the inland shipping container terminal in Alphen aan de Rijn.

We also came to an agreement concerning the construction of a container transfer

location in Alblasserdam. Furthermore, in 2010 we decided to develop and manage

new rail connections for our customers; these will enable us to be more pro-active in

the construction of rail facilities for our customers.

Sustainability

Sustainability for the Port of Rotterdam Authority means both improving our own

performance and stimulating sustainable entrepreneurship in the port area. In our

new Business Plan 2011-2015, we raised our ambitions by setting ourselves the

target of becoming the most efficient, safe and sustainable port of our sort in the

world. In collaboration with five other ports in the Hamburg-Le Havre range, we

developed the Environmental Ship Index last year. From 2011 onwards, the cleanest

vessels visiting Rotterdam will be eligible for a reduction in their harbour due. By

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offering this incentive, we aim to change ship owners’ behaviour so they reduce their

emissions of NOx, SOx, airborne solid particles and, within a reasonable period,

CO2. Another initiative to contribute to the improvement of the local air quality is the

availability of shore-based power installations in the port; these offer berths in the

harbour where inland vessels do not have to start up their own diesel aggregates.

Obviously we are continuously working to reduce our CO2 emissions. We report on

this topic in paragraph 7.2 Sustainability. In our new Business Plan, we have

formulated targets to achieve an emissions reduction of 10% in 2015 compared to

2010. And our intention is to be climate neutral as early as 2011.

The port and the Port of Rotterdam Authority after 2010

Last year we developed a new Business Plan for 2011-2015. This plan contains the

mission, vision and strategy for the years to come. The new plan continues to build

on a solid starting point regarding the level of knowledge and capabilities, reputation

and finance. Furthermore, it continues to build on the strategic choices made

previously, such as international participations and hinterland strategy. For long term

continuity, it is important that we have access to sufficient funds to fulfil our

investment ambitions. To achieve this we require a sufficient return on the investment

portfolio, on the one hand, and cost control on the other.

Over a period of 20 years we expect an increase in the throughput of goods,

compared to the current level of 430 million tonnes per year. The extent and the

sectors in which growth will manifest itself depend on global economic

developments, societies and technical innovations. This could mean that the

utilisation of a part of the port area will change in the future. In particular, the speed

of energy transition (the pace at which fossil fuels are replaced by alternative

sources of energy) and environmental policy are relevant. In 2010, on the basis of

several forecasts, we started the process of compiling a Port Vision 2030. This

concept is to form the starting point for broad discussions with customers,

government bodies, interest groups and residents in 2011.

Farewell

In November 2010, André Toet announced that he will no longer be part of future

developments within our organisation. He resigned his board position as of 1

January 2011. We are grateful to André for his enthusiastic efforts in the last three

years. In that period, he brought the organisation a step further due to his knowledge

and skills, charismatic personality and strong focus on cooperation. As of 1 January

2011, Thessa Menssen will be the Chief Operating Officer. The recruitment and

selection of a Chief Financial Officer has now been completed, Paul Smits has been

appointed Chief Financial Officer as of 1 June 2011.

The State Harbour Master left at the age of 63. He was Harbour Master of

Rotterdam for over 20 years, then of Rotterdam and Schiedam and State Harbour

Master of the Rotterdam-Rijnmond region. We thank him for the special manner in

which he made use of his position to achieve a clean, efficient, safe and secured

port. René de Vries (49) is to succeed Jaap Lems; René started his career at the

Port of Rotterdam Authority in 1982 as sailor on one of the patrol vessels. In the

years thereafter he became manager of Traffic Planning & Operations. As of 1

March 2010, he was appointed (State) Harbour Master of Rotterdam.

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Word of thanks

We conclude with a word of thanks to our staff and the Works Council. Through their

commitment, effort and expertise they have demonstrated their dedication to the port

and the Port of Rotterdam Authority. In so doing, they are all contributing, to our new

slogan “World class in action”.

The Port of Rotterdam Authority

Rotterdam, 2 March 2011

Executive Board

Hans Smits Thessa Menssen

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The Port of Rotterdam Authority Annual report 2010 11Introduction

Introduction Scope of the Annual Report

The scope of this Annual Report is broader than just our own organisation. The Port

of Rotterdam Authority can exert influence in three areas. The level of influence and

the effect on the environment and the surrounding district vary per area.

The effects of our own operational management on the environment and

surrounding district are limited. However, the effects of our investments in the port

area and the logistics to and from the port area are substantially larger. Through

cooperation, we can exert our influence in the port area and (logistics) chain.

Consequently, in our Annual Report, we devote extensive attention to our shared

activities with various partners. The scope and range of the Annual Report 2010 is

similar to that of the 2009 integrated Annual Report.

Integrated Annual Report

In our Annual Report 2010, we have integrated the traditional executive report and

the corporate social responsibility (CSR) report. We made this decision because we

believe that CSR is an integral part of our operational management. The focus of the

Annual Report is on our own operational management, the performance of the legal

duties of the Harbour Master and the four strategic themes: Customer, Area and

Space, Traffic and Accessibility and Environment and Sustainability. We have

recorded our organisational efforts concerning these themes and the collaboration

with stakeholders in the port area and the (logistics) chain. The content of the report

has been compiled around these four strategic themes, our regular contacts in our

dialogue with stakeholders and research into the most important themes for the CSR

report. In the section ‘About the Annual Report’ we have indicated the criteria on

which we selected our subjects.

Verified Annual Report

We engaged auditors to give an assurance in respect of the Annual Report. The

Annual Report was classified into three categories within the scope of this

assignment:

• The Report: Report of the Port of Rotterdam Authority, Key Figures and cases (Cases

are only available digitally);

• The Financial Statements;

• Other information: Foreword by the Executive Board, Introduction, Appendices and the

Report of the Supervisory Board.

The Report and the Financial Statements were assessed by the auditors, with the

exception of information about future developments. For further information related

to the scope of the auditor’s report we would refer you to the section ‘About the

Annual Report’. In addition to the auditor’s report, the Global Reporting Initiative

(GRI) tested the level of application of the G3-guidelines. The application level of the

Report of the Port of Rotterdam Authority was accredited with an A+. The GRI is a

non-governmental organisation that develops global standards for annual CSR

reporting.

activities port

and industrial

complex

chainport authority

business

operations

influence:

fair

influence:

limited

influence:

high

effect:

fair

effect:

high

effect:

limited

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The Port of Rotterdam Authority Annual report 2010 12Introduction

Digitised Annual Report

Finally, our Annual Report will only be published online on our website, where you

can download the entire Annual Report as a PDF file. You also have the option of

personalising the Annual Report. By selecting the parts you want, you can compile

your own Annual Report which you can then download or print out. The digital Report

also contains four short films (cases) in which we show some of 2010’s most

important developments surrounding Maasvlakte 2, safety, accessibility and

sustainability.

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Report of the Port Authority

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14Report of the Port Authority > The Port of Rotterdam

report of the port authority 1 The Port of Rotterdam2 About the Port of Rotterdam Authority3 Harbour Master4 Customer5 Area and space6 Traffic and accessibility7 Environment and sustainability8 Finance9 Outlook 2011

The Port of Rotterdam Authority Annual report 2010

The Port of Rotterdam

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15Report of the Port Authority > The Port of Rotterdam The Port of Rotterdam Authority Annual report 2010

Port of Rotterdam in brief

The port of Rotterdam is the largest logistics and industrial hub in Europe. The port

and industrial complex stretches over a length of 40 kilometres and covers some

10,000 hectares (excluding Maasvlakte 2). The throughput of 430 million tonnes

makes the port of Rotterdam by far the largest seaport in Europe. The port of

Rotterdam derives its position from its excellent accessibility by sea, hinterland

connections and the many companies and organisations that are active in and in the

service of the port area. In this context, the Port of Rotterdam Authority fulfils the

role of manager, operator and developer of the port and industrial area. Besides

that, the Port of Rotterdam Authority, personified by the (State) Harbour Master, has

the task of managing the shipping traffic effectively, safely and efficiently. Together

with the other companies and organisations in the port area, we are working to

achieve a world-class port.

Location and position of the port of Rotterdam

Description

The port area of Rotterdam is located directly on the North Sea and is the only port

in Northwest-Europe that offers direct and unrestricted access to ships with the

deepest draughts. The port offers a wide range of market segments and flows of

goods, as well as high-quality, all-round facilities for the storage, handling and

distribution of all kinds of commodities and products. Moreover, the (process)

industry and chemicals are significantly represented in Rotterdam; industrial clusters

that generate and maintain cargo. With an extensive network of hinterland

connections (inland shipping, feeder, short sea, rail, road and pipelines), Rotterdam

facilitates the import and export of goods from and to the European market (a market

with approximately 350 million consumers). In 2008, the direct added value of the

port area was about €15.5 billion, and approximately 90,000 persons were directly

employed in the port complex. In addition, the port of Rotterdam generated about

55,000 indirect jobs (source: havenmonitor, 2008).

Prin

ses

Ale

xiah

aven

Prin

ses

Am

alia

have

n

Prinses Arianehaven

Prinses Margriethaven

Liquid bulk, oil and chemials

Distribution

Coals en ores

General cargo and containers

Food products

Other activities

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Goods segments

In the port of Rotterdam both bulk (dry and liquid bulk) and general cargo (containers

and break bulk) are handled. The accompanying figure presents the proportions of

throughput. Because of the relatively large volume of liquid bulk, a distinction is

made between crude oil and mineral oil products including other liquid bulk.

Logistics hub

The unique combination of industrial and logistic facilities makes Rotterdam the port

importing the largest volume of crude oil in Europe. The port of Rotterdam is also

the largest port for the import of iron ore in transit to the German blast-furnaces in

the Ruhr area. In addition, the port has developed into an important global trade spot

for mineral oil products – due, among others things, to the available capacity of

independent tank storage. With the construction of the first LNG terminal on the

Maasvlakte, Rotterdam is also developing into a logistics junction for gas imports to

the Netherlands and Europe. Furthermore, it is developing a similarly important

position as the “Energy port” due to the construction of new power plants on the

Maasvlakte. Furthermore, Rotterdam has proven to be the most important container

gateway. The increase in cargo flows to and from other European ports enhances the

hub function of the port of Rotterdam in the logistics chain. The Ultra Large

Container Carriers (ULCCs) that have been put into operation in the shipping routes

between Asia and Europe contributed to this.

Market segmentation

An increase in activities is crucial for the development of the port. By attracting cargo

flows, Rotterdam competes with other ports in the Hamburg-Le Havre (HLH)-range.

All these ports serve the hinterland of Northwest-Europe. The competition varies

significantly per segment. With respect to containers, Antwerp and Hamburg are the

most important competitors; for coal Amsterdam and for crude oil Le Havre and

Wilhelmshaven. In the (petro)chemical sector, there is global competition. In

Northwest-Europe, Antwerp is the most important player. Important factors in the

commercial battle are: deep water location, world-class terminals, the availability of

space, good access due to a range of hinterland connections (roads, inland

waterways, rail and pipelines), quality of service, costs and an attractive business

and residential climate. The petrochemical complexes in Antwerp and Rotterdam are

well connected via pipelines and inland waterways. Both chemical complexes are

complementary. For example, Rotterdam delivers a substantial proportion of

commodities to Antwerp’s petrochemical cluster.

Information concerning market segmentation is presented in chapter 4 ‘Customer’.

Outlook for the port of Rotterdam

Maasvlakte 2

With the Construction of Maasvlakte 2, we are investing in additional space to

accommodate future growth; in total the port area will increase by 20%. Roughly

speaking, Maasvlakte 2 is being constructed in two phases. The first phase (2008-

2015) aims at the reclamation of the first 700 hectares. The second phase (2015-

2030) concerns the site preparation of the remaining 300 hectares. The second

phase will start when there is sufficient demand.

Throughput by segment

(gross weight in tonnes)

0

10

20

30

40

50

60

Liquid bulk

Dry bulk

Containers

Breakbulk

2009 2010200820072006

0

10

20

30

40

50

60

Nat massagoed

Droog massagoed

Containers

Breakbulk

20102009200820072006

0

5

10

15

20

25

30

35

40

Dunkirk

Ghent

Zeeland Seaports

Wilhelmshaven

Zeebrugge

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerp

Rotterdam

2009 2010200820072006

0

5

10

15

20

25

30

35

40

Gent

Zeeland_Seaports

Wilhelmshaven

Zeebrugge

Duinkerken

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerpen

Rotterdam

20102009200820072006

Breakbulk 5,5%

Containers 26,1%

Dry bulk 19,7%

Mineral oil -

other liquid bulk 25,4%

Crude oil 23,3%

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Scenarios 2030

In 2010, we started developing a vision for the long term development of the port.

Using existing economic models, forecasts of individual companies combined with

expertise from knowledge institutions, we created so-called potential estimates.

These estimates give an indication of the growth potential of throughput until 2030.

The three scenarios with accompanying estimates are:

1 European Trend scenario: the point of departure of this scenario is the existing policy

and moderate economic growth. In this scenario, the throughput could rise to 654

million tonnes in 2030.

2 Global Economy scenario: here the point of departure is further globalisation

combined with a low oil price leading to enhanced economic growth. In this scenario

throughput levels would rise to 739 million tonnes in 2030.

3 High Oil Price scenario: this point of departure is a high oil price, strict environmental

policies, moderate economic growth and a rapid enhancement of the sustainability of

industry and logistics. In this scenario, throughput would rise to 575 million tonnes in

2030.

The throughput in Rotterdam is currently 430 million tonnes per year. We expect this

to grow in the next 20 years. However, the extent of growth and the segments in

which growth will be achieved are dependent on global economic developments,

society and technical innovations. This means that the utilisation of a part of the port

area will change over time. In particular, the speed of energy transition (the pace in

which fossil fuels are replaced by alternative sources of energy) and the

environmental policy are relevant.

Port Vision 2030

The estimates form the departure point for the development of Port Vision 2030.

Subsequently, we started to analyse the effects of the scenarios on space,

environment, hinterland connection and labour. By doing so, concrete pictures arose

concerning the development of the port in several areas. This information translates

into a concept vision, which will be the starting point for broad discussions with

customers, government bodies, interest groups and residents in the spring of 2011.

The debate concerns the desired development of the port and what needs to happen

to realise the vision. In the summer of 2011, we plan to present Port Vision 2030 to

the Mayor and Aldermen of Rotterdam and to submit it to the City Council for

adoption.

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18Report of the Port Authority > About the Port of Rotterdam Authority

report of the port authority 1 The Port of Rotterdam2 About the Port of Rotterdam

Authority3 Harbour Master4 Customer5 Area and space6 Traffic and accessibility7 Environment and sustainability8 Finance9 Outlook 2011


About the Port of Rotterdam Authority

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19Report of the Port Authority > About the Port of Rotterdam Authority The Port of Rotterdam Authority Annual report 2010

2.1 The Port of Rotterdam Authority in briefThe Port of Rotterdam Authority manages, operates and develops the Rotterdam port

and industrial area. In our vision, Rotterdam has to distinguish itself as a quality port

in which Corporate Social Responsibility is the key element.

The Port of Rotterdam Authority aims to enhance the competitive position of the port

of Rotterdam as a logistics hub and a world-class industrial complex. To this end, the

Port of Rotterdam Authority has initiated a long term vision concerning the future of

the port; a vision based on global, national and regional expectations and

developments. These expectations and developments provide the framework and

direction of our activities.

The Port of Rotterdam Authority is investing in the development of new port sites,

especially Maasvlakte 2, in public infrastructure, such as roads in the port area, and

customer-specific infrastructure, particularly quay walls and jetties. In order to handle

shipping as effectively as possible, we maintain the waterways at a certain depth and

we are investing in a traffic management system, traffic control centres and patrol

vessels.

With its operating income developing soundly and its focus on efficient operations, the

Port of Rotterdam Authority is creating optimal financial conditions to invest in the port

of Rotterdam. The main operating income flows are harbour dues and contract

income (long term leases of port sites).

Besides investing in infrastructure in and around the port area, the Port of Rotterdam

Authority is, in collaboration with several companies and organisations, working on

preconditions for the port. These preconditions, such as accessibility and the

environment, are not always quantifiable but are necessary requirements for the

efficient, sustainable and safe growth of the port.

Capital expenditures on projects

(amounts x € 1 million)

Operating income 2010


Harbour dues 288

Contract income 249

Other income 214

0

50

100

150

200

250

300

350

400

450

500

Existing port area

Investments Maasvlakte 2

201020092008200720062005

Harbour dues 288

Contract income 249

Other income 214

0

50

100

150

200

250

300

350

400

450

500

Existing port area

Investments Maasvlakte 2

201020092008200720062005

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2.2 Mission, vision and strategyMission

In line with its objectives under the articles of association, the Port of Rotterdam

Authority has formulated the following mission statement:

‘ In partnership, the Port of Rotterdam Authority is developing the leading European

port of global stature’.

To fulfil our mission, we formulate five-yearly Business Plans. The most important

objectives of our Business Plan for 2006-2010 have been accomplished. Examples

include the start of construction of Maasvlakte 2, the increase in market share and

the efficient and safe handling of shipping. For more information see: cockpit Critical

Performance Indicators.

In 2010, we formulated a new five-year Business Plan which has been submitted to

and approved by our shareholders. This new Business Plan 2011-2015 builds on the

existing strategic choices, such as international participations and the hinterland

strategy; however, our two key objectives (under the articles of association) remain

fully effective:

1 the development, construction, management and operation of the port and industrial

area in Rotterdam;

2 the promotion of the effective, safe and efficient handling of shipping in the port of

Rotterdam and the offshore approaches to the port.

Vision

As a guideline for the Business Plan an ambitious vision was established. We

formulated the following vision for our Business Plan 2011-2015:

The Port of Rotterdam Authority is fully committed to the continued development of

Rotterdam’s port and industrial complex so it can become the most efficient, safe

and sustainable in the world. The Port of Rotterdam is creating value for customers

by developing chains, networks and clusters, both in Europe and in growth markets

worldwide. As an enterprising port developer, the Port of Rotterdam is the partner

for customers of world stature in petro-chemicals, energy, transport & logistics. In

this way the Port of Rotterdam is enhancing the competitiveness of the

Netherlands.

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Strategy

The Port of Rotterdam Authority is very involved with the port and industrial area in

Rotterdam and fully committed to the continued development of Rotterdam’s port

and industrial complex so it can become the most efficient, sustainable and safe in

the world. To realise this development we want to be proactive in contracting

partnerships with international players. We also want to contribute actively to the

quality of chains and networks. For this reason The Port of Rotterdam has explicitly

opted:

• to adopt a more active and entrepreneurial role, if this is necessary to strengthen the

complex;

• to focus on acquiring and binding leading global players in their industries to

Rotterdam;

• to make active efforts to strengthen Rotterdam’s port network by,for example,

cooperating with the port of Dordrecht and investing in hinterland junctions;

• to make every effort to become actively involved in port developments in international

growth markets, through participations.

These strategic choices are an outline of the following four key themes in this

Report:

Customer

We work as partners with our existing customers, while at the same time attracting

new activities and customers that will further strengthen the port and industrial

complex.

Area and space

We ensure an efficiently organised port area with good public infrastructure.

Furthermore, we aim to provide space for growth by developing Maasvlakte 2 and

structuring, restructuring and intensifying the use of the existing Rotterdam area.

We also actively examine opportunities as they arise outside the Rotterdam area.

Traffic and accessibility

We are responsible for the clean, smooth, safe and secure handling of shipping in

the port. Together with our partners, we are also increasingly active in improving

landside accessibility for the four modalities (rail, road, inland shipping and pipeline).

Environment and sustainability

We invest with our partners in obtaining broad support in society and optimum

preconditions for a port that has the ambition to develop. Sustainability, dialogue,

work and innovation are important elements in this aim.

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2.3 Corporate Social ResponsibilityManagement approach

Corporate Social Responsibility (CSR) is an essential element of the Port of

Rotterdam Authority’s business processes and business culture. We have committed

ourselves to this in an official CSR-statement (see www.portofrotterdam.com).

We want to enable the port to grow in a balanced way: Maasvlakte 2 together with

space for recreation and relatively less road transport. Our aim is for all our activities

to be sustainable, involved and transparent.

In our new Business Plan 2011-2015 we have taken up the challenge to develop the

port area as the most efficient, safe and sustainable of its kind in the world.

Corporate Social Responsibility

Sustainability Involvement Transparency

Sustainable

For the Port of Rotterdam Authority, sustainability means we wish to improve our

individual performances and encourage sustainable enterprises in the port area.

In our view, investing in sustainability is vital to retain support for port activities and

to facilitate growth. In our Business Plan 2011-2015, we aim to be the most

sustainable port of its kind in the world. Over the next five years we will work on this

ambition in three areas: our own operations, the businesses in the port and the

logistics. To this end we have formulated the following targets:

• to accomplish a CO2 neutral Port of Rotterdam Authority and ensure the sustainability

of construction and management by reducing CO2 and NOx emissions in our own

processes. We aim to be CO2 neutral in 2011 and to reduce our own CO

2 emissions

by 2% per year;

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• to realise the most sustainable Energy Port and Fuel Port by reducing the CO2 and

Nox emissions when leasing out plots. This means that new contracts concluded

with port businesses will contain certain criteria which must be fulfilled. These criteria

involve air quality, capture readiness of CO2 and the usage of certified biomass;

• to realise the most sustainable container port by ensuring transport is concentrated on

the sustainability of all modalities. Our aim is to shift road transport in favour of more

rail and inland shipping and increase the utilisation of shore-based power.

In our management report, we have ensured that these sustainability objectives remain

points of attention; a substantial part of our critical performance indicators are

focussed on sustainability. Furthermore, the Executive Board considers sustainability in

the decision-making process concerning investments and other important issues.

Because sustainability is part of our overall policy, activities related to sustainability are

not only described in section 7.2 (Sustainability) but also throughout the entire Report.

Involved

Hundreds of thousands of people live and work in the immediate vicinity of the port

and industrial complex. It is crucial for us to retain support for our activities. Working

and living in and around the port must be attractive. That is why it is important for us to

invest in our immediate surroundings. It is about investing in accessibility and

approachability (chapter 6), but also about investments in innovation and the labour

market (section 7.5).

Another project that expresses our involvement in the immediate surroundings is the

RDM Campus, where a former port site is being redeveloped to accommodate a

combination of learning and working activities. You will read more about this subject in

section 5.3 (Existing Port Area below “City Ports”) and in section 7.2 (Sustainability

below “sustainable real estate”).

We also believe it is important to make the knowledge and the expertise of our

employees available to ports in less developed countries. One example is Senegal,

where we want to make greater economic development possible. In 2009, we signed

an agreement with the OMVS (Organisation pour la Mise en Valeur du fleuve Sénégal)

for functional support to make the Senegal River navigable and develop the port of

Saint Louis., In 2010 we sent out more Port of Rotterdam Authority specialists to carry

out specific research projects on site. After an evaluation, we decided to continue our

support for OMVS under certain conditions.

In November 2010, ‘Jong HbR’, the network of young people at the Port of Rotterdam

Authority, participated in a CSR activity organised by the municipality of Rotterdam. On

board the ship Abel Tasman, 15 young employees of the Port of Rotterdam Authority

helped run an unforgettable St Nicholas party held for a large group of ill and disabled

children. ‘Jong HbR’ wants to participate in more CSR projects in 2011.

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Transparent

Transparent means that we formulate open and clear ambitions and account for the

results achieved. We want to be transparent to our environment about the dilemmas

we face in achieving our objectives. Sometimes we have to make difficult choices. For

example, please read our report on Rotterdam Port Experience (section 2.7

Participations), fossil versus renewable energy (section 4.3, Our market position),

speed limitations on inland shipping and hinterland congestions (section 6.4, Inland

shipping) and shore-based power (section 7.2, Sustainability). This annual report is

just one of the tools we have for our dialogue with our stakeholders. In order to

increase transparency, we have asked our auditors to give their opinion not only on the

financial statements but also on the other information contained in the Annual Report.

In addition, the level of compliance with the G3 guidelines has been tested by Global

Reporting Initiative, a non-governmental organisation that develops worldwide

standards for corporate social responsibility reporting. According to the GRI, the report

of the Port of Rotterdam Authority fulfils the requirements of Application Level A+.

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2.4 Organisation Structure

Although, the Port of Rotterdam Authority is a not a listed public limited company, it

does comply with the all legislative requirements imposed on ‘large’ companies.

Since 21 July 2008, a more enlightened two-tier board system has been applicable

to the Port of Rotterdam Authority. This means that the General Meeting of

Shareholders are authorised to assign and dismiss Executive Board members.

The Executive Board conducts the day-to-day management of the company. The

independent Supervisory Board supervises the Executive Board and oversees the

state of affairs in the company. Both shareholders, the municipality of Rotterdam

(approx. 70%) and the Dutch State (approx. 30%) exercise influence on the

company through the General Meeting of Shareholders. The powers of the

Supervisory Board and the General Meeting of Shareholders are laid down by law

and in the articles of association.

The most recent organisational chart of the Port of Rotterdam Authority is contained

on the website www.portofrotterdam.com.

Core values and business code

Our core values are the most important values in our organisation. They help us to

do our jobs, enhance collaboration, fulfil our Business Plan ambitions and indicate

how we want to be perceived by the outside world. We rewrote our core values in

2010. The four new core values are: Passion, Collaboration, Continuous

improvement and Trustworthiness.

Our values and standards, such as integrity, are described in the Business Code,

which sets out who we are, what we stand for and what we feel is important in

business and public life. The code contains guidelines that state clearly what is and

what is not permitted. By doing so, the Port of Rotterdam Authority supports the ten

‘United Nations Global Compact Business Principles’, concerning human rights,

labour conditions, environment and fighting corruption.

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2.5 Corporate GovernanceCorporate Governance Code

The Corporate Governance Code is applicable to listed companies. Although the

Port of Rotterdam Authority is not a listed company, we have chosen to implement

the provisions of the Corporate Governance Code wherever possible and relevant to

us. The principles and best practices of the Corporate Governance Code recur as

often as possible in the various internal regulations, such as the regulations

governing both the Executive Board and the Supervisory Board. These and other

regulations can be found on www.portofrotterdam.com.

In compliance with the Corporate Governance Code, we have observed the ‘apply

or explain’ concept and explained why we believe a number of provisions are less

relevant to the Port of Rotterdam Authority. This scheme can also be found on

www.portofrotterdam.com.

Risk management

We use a management control system to achieve our Business Plan objectives.

Within the Business Plan, we pay attention to the structure and policy required to

achieve the objectives and we use the planning and control cycle for monitoring

purposes. Part of our management control system is the risk management and

control system. We are risk averse.

Our ambitions and the most relevant risks are included in several chapters of our

Report. In this section, we describe how risk management is embedded in our

organisation. In addition, we describe how we perceive the different levels (strategic,

operational and compliance, financial and reporting) of risk management. Finally,

the management statement is included.

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Risk management structure

Our internal risk management and control system is divided into multiple levels. First

of all, the departments and project teams are responsible for identifying and

controlling risks in our organisation. If required, they are supported by specialised

risk management professionals. In addition, our Internal Audit Department checks

the effectiveness of internal controls and the external auditor makes

recommendations to improve internal controls during the annual accounts

examination. Finally, the Audit Committee supervises the Executive Board

concerning the effectiveness of the risk management and control system, including

compliance with relevant legislation.

Strategic risk management

To gain insight into strategic risks, two risk surveys and analyses were conducted in

a number of departments in 2010. The strategic risks are linked to the objectives of

the Port of Rotterdam Authority. The risks, causes, effects and measures have been

recorded in a “strategic risk landscape”. The most critical risks were discussed with

the Supervisory Board. As a result of which, the Supervisory Board approved the

“strategic risk landscape”.

Operational risk management and compliance

Our operational risk management and compliance are linked to the objectives of

departments and projects. Risks, causes, measures and risk-owners are recorded in

risk landscapes. Derived from these are risk paragraphs that departments should

incorporate in their work activities. In addition, they monitor the risks during the year.

Operational risk management is especially important for the Harbour Master division.

In this context, the Harbour Master reports to the Ministry of Infrastructure and

Environment and the municipality of Rotterdam on developments in the level of

efficient, safe and environmental pressure of shipping traffic and other indicators

concerning the quality of the execution of the Harbour Master’s responsibilities.

In 2009, a project risk management method was established that gives insight into

the complexity, controllability and financial risks of customer-specific projects. In

2010, the application of this method was extended to public projects. Moreover in

2010, improvements were made to the manner in which insight is acquired into the

risks during the engineering and realisation phases of projects. Project control was

also improved in 2010 due to the implementation of the project management module

in our ERP-system. This implementation should, amongst other things, improve the

predictability of expected cash flows. In addition, the financial control of projects and

the monitoring of the project portfolio were made more rigorous.

The construction of Maasvlakte 2 is the largest project in our history. We established

a special project organisation to manage the project. Within the project the best

practice management principles of Prince 2 are applied and in 2007 this project

organisation was accredited for this. In 2011 re-accreditation is necessary. Project

leaders are responsible for managing and controlling risks in several partial projects;

project managers continuously facilitate them. Every month an internal report on the

risk dossier is presented. In addition, the Internal Audit Department and the external

auditor periodically assess the internal control systems of the Maasvlakte 2

construction.

Read more about our core values and business code on www.portofrotterdam.com.

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Financial risk management

Our financial policy is risk averse and aims to hedge the risks against acceptable

costs. The effects of substantial and long term investment projects and

accompanying financing and interest risks increase the need to control cash flows

(within the Treasury position). The Supervisory Board approved the actualised

Treasury Statute. At the request of the Audit Committee, the external auditor

assessed the effectiveness of the Treasury position.

In the Management letter, the external auditor recommended the following:

• Improve the predictability of cash flows.

• Secure the Treasury related knowledge.

Currently initiatives are in place to secure the knowledge related to controlling cash

flows. For a further explanation of interest, credit and foreign exchange risks we

would refer you to the financial statements.

Reporting risk management

To hedge internal and external financial reporting risks related to inaccuracies of

material effect we use the COSO internal control framework. The framework contains

the most important control measures for risks in the primary financial processes and

the effectiveness of measures in those processes. The framework is actualised

periodically and the control activities formulated and presented in the frameworks are

carried out. In addition, action plans to improve and strengthen the control measures

even further have been developed and implemented.

Management statement

Based on our risk management and control system, we aim to reduce the

possibilities of making wrong decisions or being surprised by unforeseen events.

Unfortunately, total guarantee cannot be given. No risk management and internal

control system can provide absolute assurance to achieve organisational objectives,

nor can it entirely prevent inaccuracies, fraud, accidents and violations of laws and

regulations. We did not request a separate investigation of the quality of our risk

management and internal control system. However, within the framework of the

financial statement assessment, our external auditor investigated our internal control

measures. The aim of these activities is to deliver an unqualified auditor’s report

related to the financial statements and they do not, therefore, encompass all the

issues that could arise if the organisation were subject to a targeted assessment.

Just as in preceding years, the external auditor concluded in the management letter

that the quality of our internal control environment meets the required standards.

However, the auditor made the following recommendations:

• assess and monitor the quality of the outsourced IT services critically;

• continue the improvements embarked on regarding project control in the existing port

area;

• make the authorisation process for procurement in our ERP system more rigorous;

• make the internal control of the processing of personnel transactions more rigorous.

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We concur with the recommendations of the external auditors and we intend to

follow up these recommendations in order to improve the effectiveness of our risk

management and control system in 2011.

On the basis of reports and information from several departments and parties that

form part of our risk management and control system, the Executive Board believes

that the risk management and control systems worked properly during the book year

and provide a certain measure of assurance that the financial reporting does not

contain inaccuracies of material effect.

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2.6 Employees Introduction

The Port of Rotterdam Authority continuously strives to be a world-class port. This is

accomplished with the assistance of approximately 1,200 involved and motivated

staff. For this purpose, the Port of Rotterdam Authority wants to be an attractive and

modern employer. We invest in the quality of our staff and we believe that diversity

and employee satisfaction are important drivers. Our concrete objective for 2010

was to raise the level of employee satisfaction to a score of 7.3. This aim was amply

achieved when a survey returned a score of 7.7.

The year 2010 was overshadowed by a helicopter crash during the Tour du Port

organised by the Port of Rotterdam Authority on 27 June 2010. This accident killed

four persons, including our colleague Martijn Hessing. Furthermore, one passenger

was severely injured. Due to this tragedy, the Port of Rotterdam Authority cancelled

all public events related to the Tour de France in Rotterdam until after the funerals of

the four casualties. This fatal accident was witnessed by a great number of

employees and made a profound impression on everyone.

Quality

To achieve our corporate goals, we believe it is essential to have insight into the

development of our staff and their potential successors. We employ career

counselling (AanZ), a Young Potential and a Management Development (MD)

programme to support the development of our staff. All our employees are entitled

to a minimum of one performance interview with their manager a year in which

employee development is discussed and recorded.

In the latter half of 2010, we conducted a 360 degree feedback for over 100

employees in the higher echelons of the organisation. For the members of the

Management Team and the members of the Project Board Maasvlakte 2, a

‘management appraisal’ was established. These evaluations map the potential and

competences of these target groups. We will use the results as input for

development agreements for the coming period.

The Port of Rotterdam Authority stimulates internal mobility. For example: the new

Harbour Master was appointed from within the organisation. The new Harbour

Master, René de Vries, started his career at the Port of Rotterdam Authority as a

sailor and is currently one of its key managers.

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In January 2010 the ‘Inhuurdesk’ started operations, this is a ‘market-place’ concept

enabling interested parties to view all the external capacity required via the internet

site of the Port of Rotterdam Authority. This relates to positions for interim-

management, temporary capacity or specific expertise required temporarily.

Interested parties are able to bid for these assignments. The assignment is granted

to the party that offers the best price-performance proposal. The Port of Rotterdam

Authority expects this new procedure to increase transparency for all stakeholders

and enhance our knowledge of the competitive bidding of interested parties which

will, in turn, help the Port of Rotterdam Authority to assign postings at competitive

prices.

Diversity

The Port of Rotterdam Authority underlines the importance of a diversified work

force. We aim for a reflection of our workforce environment in our employees and

want a reflection of standards and values of our society as well. For practical

reasons and to focus our efforts we started to target women first. We signed the

treaty Charter Talent to the Top (Talent naar de top)’ on 4 May 2010. By subscribing

to this Charter, the Port of Rotterdam Authority committed itself to the development

an explicit strategy for recruitment, promotion and retention of more female talent in

top positions (Executive Board and second and third echelon). By doing so, the Port

of Rotterdam Authority aims to establish a more diversified work force. This will

improve our results and the quality of management decisions and also insure our

organisational demands for personnel are met in the long run. In concrete terms, we

aim to increase the percentage of female managers to 25% within five years. At

present, women constitute 16% of these management positions.

The Charter ‘Talent naar de top’ has been signed by 145 companies, financial

institutions, universities, trade unions and government bodies. On an annual basis,

they report to an instituted commission on their progress in respect of a number of

critical performance indicators.

Employee satisfaction

A 2010 survey demonstrated that our staff are, in general, very satisfied with their

jobs. We conduct an employee satisfaction survey every two years. In the May 2010

survey a score of 7.7 was achieved, our initial target for 2010 was a score of 7.3, the

score in 2008 was 7.2. The most important improvements in the period 2008-2010

were in: personal development, remuneration and cooperation within and between

departments. Our staff are more positive with regard to these specific topics. In

respect of personal development and remuneration, the 2010 score was almost a full

grade higher. However, the 2010 survey did suggest there was room for improvement

in: result-orientation, efficiency and the focus on shared objectives. These topics will

be addressed specifically in the coming period.

Employment conditions

On 27 January 2010, the Port of Rotterdam Authority and the trade unions reached

an agreement regarding the new company collective agreement on employment

conditions (Collectieve Arbeidsovereenkomst CAO). This agreement has been

ratified for the period from 1 January 2010 to 1 January 2012. In addition to an

increase in the salary scale amounts and the end-of-year employee bonus, the

agreement allows for an extension of the remuneration structure. This will enable a

better alignment of the employment conditions for personnel subject to the CAO and

personnel not subject to the CAO. The CAO is not applicable to senior management,

for which a supplementary structured remuneration policy has been agreed

combined with targets to be achieved. These targets are derived from the targets of

the Executive Board. Additionally, the agreement contains arrangements concerning

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the employability of staff over 45 years of age, internships, social conditions,

teleworking and leave for short term care. Once every two years, we measure our

employment conditions using the Best Employers Survey published by Intermediair.

In 2010, the Port of Rotterdam Authority ended 4th in the total survey on employment

conditions. In 2008 we were ranked 24th.

Promoting the interests of our employees

Our organisation has a Works Council which fulfils the tasks in accordance with the

Works Councils Act. Cooperation between the Port of Rotterdam Authority, trade

unions and the Works Council is excellent, as is evident in the smooth implementation

of agreements and schemes.

Our Health & Safety policy focuses on optimising working conditions. Five work

related accidents resulting in short periods of absence and one with a longer period

of absenteeism were reported in 2010. The Health & Safety coordinator and the

company doctor deal with these cases, calling in the Labour Inspectorate when this is

required. The Port of Rotterdam Authority has appointed counsellors to deal with

matters pertaining to both undesirable conduct and integrity. There are four

counsellors in total: three are employees of the Port of Rotterdam Authority and one

is an external counsellor.

Once every six weeks the Port of Rotterdam Authority conducts a Social and Medical

Consultative Meeting, in which the manager, HR adviser, company doctor and social

worker discuss absenteeism due to illness and decide on a joint follow-up action plan.

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2.7 Participating interests Introduction

In order to achieve our objectives, the Port of Rotterdam Authority has a

participating interest in a limited number of companies, both nationally and

internationally.

Before acquiring a participating interest a number of issues have to be addressed:

• the investment needs to enhance the core business;

• the investment has to comply with the internal yield objective of the Port of Rotterdam

Authority;

• the Port Authority must be able to exercise sufficient influence on the policy to be

pursued by the organisation in which we hold a participating interest.

The Port of Rotterdam Authority has direct and indirect interests in seventeen

companies and two foundations. Operational activities have been incorporated

within ten of these companies and two foundations. A full list of participations is

included in the other information in the financial statements. At the end of 2010, the

participating interests collectively represented a total value (financial fixed assets) of

€ 25.2 million.

Dutch participating interests

Portbase

One of our Dutch participating interests is Portbase. We acquired a 75 % share in

this company in order to improve chain efficiency. Portbase develops, manages and

operates the Port Community System (PCS). This is an electronic platform on which

the port community can exchange vital information on logistics. In 2010, the Port of

Amsterdam became a 25% shareholder in Portbase and with this the first step was

made towards the development of Portbase as a national platform.

Keyrail

The Port of Rotterdam Authority is also a co-shareholder in Keyrail. We have been a

co-shareholder since the foundation of Keyrail in 2006. Our share in the company is

35%, the other shareholders are ProRail which owns 50% and the Port of

Amsterdam 15%. Keyrail is the commercial operator of the Betuweroute, the

dedicated railway track for commodities, linking Maasvlakte in the port of Rotterdam

to Zevenaar on the German border. The railway enhances the accessibility of the

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port of Rotterdam. In addition, Keyrail is an important link for transferring goods

efficiently between the port of Rotterdam and the European hinterland. In this

context, both the accessibility of the port and the effective handling of goods are

important objectives.

Pipelines: RC2 and Multicore

In order to optimise land based transport we participate in two pipeline exploiting

companies, we own 50% of the shares in RC2 and 75% of Multicore shares. Both

companies operate pipelines in the port of Rotterdam area. Our partners in these

companies are ARG (50%) and Vopak (25%) respectively. Section 6.5 (Pipelines) of

this report provides details of these participating interests.

De Verkeersonderneming

De Verkeeronderneming is a joint strategic cooperative venture with the Directorate-

General of Public Works and Water Management, the municipality of Rotterdam and

the Urban Region and the Port of Rotterdam Authority. The objective of De

Verkeersonderneming is to increase the accessibility of the city of Rotterdam and

the port of Rotterdam via the A15 motorway. In 2010, this cooperative venture was

transformed into a foundation. In section 6.2 (Roads) of this Report, there is an

explanation of the activities and results of De Verkeersonderneming in 2010

Rotterdam Port Experience

Unfortunately, Rotterdam Port Experience (RPEX) was not a success. RPEX was an

initiative of the Port of Rotterdam Authority in collaboration with the municipality of

Rotterdam. RPEX’s objective was to enhance the association between the port and

the city, to positively influence the port’s reputation and to improve the pride of the

port for all the residents in Rotterdam. However, we concluded that the concept did

not attract enough visitors to achieve the objectives of RPEX. For this reason RPEX

was terminated on 1 July 2010.

Port of Rotterdam International

The Port of Rotterdam Authority has the ambition to acquire a number of

international participating interests in port management companies during the

forthcoming years. Based on the idea that ports are links in global logistic chains, the

focus will be on areas that generate commodity flows to and from Rotterdam.

The main arguments for this ambition are:

• upgrading our skills by acquiring market knowledge, expanding our network and

strengthening our image as a World Class Port;

• retaining cargo: the activities will strengthen our commercial links with existing

customers and create the opportunity to acquire new customers.

We set about selecting potential port participations in a structured way. We devoted

considerable attention to risk analysis, sustainability and corporate governance.

Internationalisation must contribute to the Port of Rotterdam Authority’s objectives.

In addition, our initiatives must meet the preconditions of yield and sufficient control.

As of 2010, the Port of Rotterdam Authority supports the ten ‘United Nations Global

Compact Business Principles’, concerning human rights, labour conditions,

environment and fighting corruption.

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Joint venture in Oman

The Port of Rotterdam Authority has two participating interests in the Sultanate of

Oman: Sohar Industrial Port Company (SIPC) and Sohar Industrial Development

Company (SIDC). These joint ventures with Oman focus on managing and

developing the port and industrial complex of Sohar. About 80% of the 2000 hectare

port complex (SIPC) has already been leased.

In 2010 we invested € 6.3 million equity in Oman. This investment concerns the

construction of a bulk terminal for the Brazilian multinational Vale. We expect to

invest up to $ 24.7 million (= approx. € 16.7 million). SIDC plans to invest up to $ 247

million. Vale expects to handle at least 30 million tonnes of iron ore and pellets per

year. The progress in the jetty construction is on schedule and we fully expect the

jetty to be completed during the first quarter of 2011.

Next to the existing port area, SIDC is developing a new area of 4,500 hectares

called Free Zone Sohar. In 2010, this entity started preparations for the first phase

involving 500 hectares. Contracts were concluded with several companies for the

lease of 65 hectares. The first plots are expected to be put in to use in 2011.

Other foreign activities

There are opportunities for port participations in:

• Brazil: Joint-management of the port of Suape. We signed a ‘Framework Heads of

Agreement’ (HoA) with Suape in August 2010. Both parties intend to investigate the

possibilities of a joint-venture and a new port organisation.

• Other countries: In India, Malaysia, South Africa, China and around the Mediterranean

Sea we are investigating the possibilities of cooperating with authorities and

businesses.

In addition, in 2010 we carried out the following consultancy assignments:

• Brazil (Suape): we provided a second opinion to a master plan compiled by Brazilian

consultants. Furthermore, we provided a business plan for the port of Suape, being a

part of the aforementioned master plan.

• Brazil (national): we provided knowledge and expertise and a second opinion to

the university of Santa Catarina by executing a strategic study of all 34 ports in the

country.

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36Report of the Port Authority > Harbour Master



Harbour Master

36 / 177

37Report of the Port Authority > Harbour Master The Port of Rotterdam Authority Annual report 2010

3.1 The Harbour Master in brief

It is vital for the port to be readily accessible from all sides; from the sea, the inland

waterways, by road, rail and pipeline. The Harbour Master of Rotterdam is

responsible for the clean, smooth, safe and secure handling of shipping. In doing

so, he performs a large number of public-law tasks. These powers have been

transferred to the Harbour Master by various authorities, such as central government

and the municipalities of Rotterdam, Schiedam and Vlaardingen. The Harbour

Master stands for nautical order and safety in the areas of environment, safety

and port security. In addition, the Harbour Master coordinates incident control.

The Harbour Master uses various means to achieve this, such as patrol vessels,

the Harbour Coordination Centre, the radar stations, bridges and locks, and the

undertaking of all kinds of inspections on board of ships and at business premises.

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3.2 Smooth handling of shippingVessel visits

In 2010, the number of ships visiting the port of Rotterdam increased by 3%

compared to 2009. In 2010, a total of 33,404 ships visited Rotterdam. This total is

slightly below the 35,400 visits expected. However, we observed larger and more

fully loaded vessels which explains the difference between the relatively large

percentage increase in goods handled and the moderate increase in ship visits.

Turn Around Time

Smooth handling of shipping is crucial for the port of Rotterdam and the Turn

Around Time (TAT Rotterdam) is essential to its competitive position. The average

sailing time (handling time) of seagoing vessels larger than 150 meters from the sea

to the berth and vice-versa is expressed as the TAT Rotterdam. In 2010, our target

was an average time of 4 hours and 27 minutes.

In 2010, the TAT realised was 4 hours and 37 minutes. Compared to our target time,

the TAT we achieved was 10 minutes too high, a deviation of 4%; a deviation of up

to 5% is acceptable. In 2010, the TAT showed an increase of 3% compared to the

previous year’s TAT (2009: 4:30). A partial explanation for the increase is the relative

increase in the number of ships that visited the City and Botlek areas. The sailing

times are longer, leading to a slight increase in the average TAT Rotterdam. Another

cause is the growth in larger and more fully loaded ships; these have an increased

sailing time.

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

TankersGeneral cargo

Dry bulk

Container

OthersDroge bulk

Volcontainer

Overige

0

2000

4000

6000

8000

10000

12000

14000Overige

Volcontainer

General cargo

Droge bulk

Tankschepen

20102009200820072006

25.000

27.000

29.000

31.000

33.000

35.000

37.000

39.000

Ship visits

20102009200820072006

25

27

29

31

3335

37

39

Scheepsbezoeken

20102009200820072006

4:18

4:30

4:42

4:54

4:66

4:78

4:90

5:02

Turn Around Time Rotterdam in hours

2009 2010200820072006

4,18

4,30

4,42

4,54

4,66

4,78

4,90

5,02Turn Around Time Rotterdam

20092008200720062005

80

110

140

170

200

230

Nautical accident norm

Nautical accidents

20102009200820072006

70.000

74.000

78.000

82.000

86.000

90.000

Ocean vessels movements

70

74

78

82

86

90 Scheepsbewegingen zeevaart

20092008200720062005

0

5000

10000

15000

20000

25000

30000

35000

40000

Others

Container

General cargo

Dry bulk

Tankers

20102009200820072006

5,5

6,0

6,5

7,0

7,5

8,0

8,5

9,0

9,5

Norm Enviroment

Norm Respons

Norm Safety

Enviroment

Respons

Safety

20102009200820072006

Turn Around Time and

number of visiting ships

(Zeevaart)

Seagoing vessels in Rotterdam

in the last 5 years

38 / 177


Smooth administrative settlements

With the arrival of the new Port Management Bye-Laws (HBV) Rotterdam 2010

implemented as of 1 March 2010, the port regulations have been simplified and

the administrative burdens for users reduced. The HBV is one integral document

encompassing all port regulations of the municipality of Rotterdam. In the HBV,

several exemptions have been replaced by notifications. Notifications are easier

to process than exemptions. The replacement of exemptions by notifications also

offers customers other benefits. Customers can now submit notifications

electronically to the Harbour Master. And whereas in the past exemptions had to be

brought on board physically, an email is now sent to the captain after which work

may start. This means the customer has fewer administrative burdens and saves

time.

39 / 177


3.3 Nautically safe

Nautical accidents

The reliable handling of shipping is essential for shipping companies, our customers

and the surrounding environment. Nautical safety holds a crucial position in this. In

2010, we believe Rotterdam once again demonstrated it was a safe port; the basis

for this belief being the number of nautical accidents compared to the total ocean

vessel movements (see graph). The number of nautical accidents fell to 116.

Compared to 2009 (124) this represents a reduction of 6%. The objective for 2010

was a maximum of 120 nautical accidents.

There were a total of 58 nautical accidents in the navigation channels and 58 in the

port basins. 49 of these involved collisions with an object, 27 were collisions

between vessels and 40 were nautical accidents in other categories.

In order to enhance nautical safety, we supervise navigation rules and berth usage

by performing themed actions. Examples of these are checks on the usage of

marine telephones, the stability of sand and gravel ships, party and passenger

navigation, exemptions on compulsory pilot services, leisure and fast motorboats.

The themed actions appear to be an effective tool for monitoring compliance with

the rules.

Significant accidents

Of these 116 accidents, unfortunately 15 were significant. A nautical accident is

significant if one or more of the following factors occurs: fatally or severely injured

victims, major damage to navigation channels, vessels, cargo or the environment or

if shipping is completely blocked for one hour or more. 2 of the 15 significant

accidents happened near the Botlek Bridge. In both accidents a car hit the water

and in both accidents one person lost their life. Furthermore, in Hoek van Holland an

accident happened with the tug boat Fairplay 22 causing the death of two people.

By regulating traffic and making use of patrol vessels, the Port of Rotterdam

Authority attempts to ensure accidents cause limited disruption to shipping traffic.

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000


Dry bulk

Container

OthersDroge bulk

Volcontainer

Overige

0

2000

4000

6000

8000

10000

12000

14000Overige

Volcontainer

General cargo

Droge bulk

Tankschepen

20102009200820072006

25.000

27.000

29.000

31.000

33.000

35.000

37.000

39.000

Ship visits

20102009200820072006

25

27

29

31

3335

37

39

Scheepsbezoeken

20102009200820072006

4:18

4:30

4:42

4:54

4:66

4:78

4:90

5:02


2009 2010200820072006

4,18

4,30

4,42

4,54

4,66

4,78

4,90


20092008200720062005

80

110

140

170

200

230


Nautical accidents

20102009200820072006

70.000

74.000

78.000

82.000

86.000

90.000


70

74

78

82

86


20092008200720062005

Ocean vessels and

nautical accidents

40 / 177


Port of Refuge

In 2010, Rotterdam was also a Port of Refuge. Outside the operational control area

of the Harbour Master, two vessels collided on 12 October 2010. Near

Scheveningen, the container vessel Jork Ranger and the oil tanker Mindoro both

suffered serious damage. The container ship was able to continue her journey to

Rotterdam independently. The oil tanker Mindoro faced more severe problems.

Quick assistance was provided via the Coast Guard centre. The ship was secured in

the port of Rotterdam at the request of the Ministry of Infrastructure and

Environment. The incident was dealt with successfully due to good cooperation

between the various parties.

41 / 177


3.4 Safe transport Coordinated supervision

Supervision of cargo and handling is necessary in order to maintain the safety level.

The Harbour Master does this by carrying out inspections and checks, and initiates

corrective measures where necessary. The national Supervision Reform programme

(Vernieuwing Toezicht) aims at cooperation between supervisory bodies; including

Customs and the Directorate-General of Public Works and Water Management.

Within the domain of the seaports, the Harbour Master is responsible for

coordinating the supervision of various organisations on board seagoing vessels in

Rotterdam. In addition, the Harbour Master participates in coordinated supervision

within the Front Office Chemicals Rijnmond. Within the aforementioned

programmes, we are working at joint planning, data sharing, joint risk analysis and

shared risk-directed and system supervision.

Safety and Environmental Index

The Harbour Master uses the Safety Environment Index (SEI) to measure the level

of compliance with rules on safety and the environment on board ocean and other

vessels. The measurement is based on the findings during on-board inspections and

the systematic checking of compliance with statutory administrative reporting

obligations by shipping companies and agents. The index comprises three target

values for the environment, safety and the quality of reports. In 2010, the target

value for safety (8.3) was achieved with a score of 8.5. The index for the quality of

reports was 7.6 versus a target value of 7.5. The realised index for the environment

was 8.8, in comparison to the target value of 8.3 (see paragraph 3.5 Clean).

Safety & Environmental Index (SEI)

0

5000

10000

15000

20000

25000

30000

35000

40000

Others

Container

General cargo

Dry bulk

Tankers

20102009200820072006

5,5

6,0

6,5

7,0

7,5

8,0

8,5

9,0

9,5

Norm Enviroment

Norm Respons

Norm Safety

Enviroment

Respons

Safety

20102009200820072006

42 / 177


A total of 12,426 inspections were carried out: 6,098 environmental checks and

6,328 safety checks. This is largely in line with the intended number of checks

(11,750). An overview of the total inspections in recent years is shown below:

Monitoring

By structurally monitoring the compliance behaviour of ships and businesses, we can

carry out more targeted checks. Together with other supervisory bodies, we establish

a risk profile. In cooperation with the Directorate-General of Public Work and Water

Management, we have developed joint objectives. In addition, we share our

supervisory results. If combined, the different risk analyses provide a (collaborated)

risk profile per object or per group. With this approach, we try to reward good

performance by decreasing the number of inspections and punish bad performance

with extra inspections. This approach is also intended to stimulate companies to take

greater responsibility for their own compliance.

2010 2009 2008 2007 2006

Safety checks 6,328 5,956 6,399 6,066 4,466

Environmental checks 6,098 5,385 5,552 5,737 6,235

TOTAL 12,426 11,341 11,951 11,803 10,701

43 / 177


3.5 Clean (environmentally safe)Introduction

To maintain a sustainable port, the Harbour Master actively monitors compliance

with environmental laws by the port user. In 2010, the ports of Rotterdam and

Amsterdam started carrying out inspections of port waste-processing installations

(havenontvangstinstallaties (HOI)). These are locations in the port area where ships

and shipping lines can deliver their waste. We carried out these inspections in

anticipation of amendments to the Prevention of Pollution from Ships Act. The

legislative proposal for amendments was accepted by the Upper Chamber of the

Dutch Parliament in the autumn of 2010. After the legislative amendments, port

managers may be granted supervisory powers in respect of the Prevention of

Pollution from Ships Act.

Safety and Environmental Index

Apart from information about the level of safety, the Safety Environment Index (SEI)

also gives a picture of compliance with environmental regulations on board ships.

Here a distinction is made between compliance within the port and the compliance

of ocean vessels outside the port. In 2010, the SEI for both the port environment

and the maritime environment was 8.8, above the norm of 8.3. In addition, 1,884

applications and notifications of activities involving increased risk, such as repairs

and alternative unloading methods, were assessed.

Shipping Waste Decree

Partially due to the development and implementation of the Shipping Waste Decree,

the Port of Rotterdam Authority is also active in preventing environmental pollution

from ships’ waste in the inland waterways The Harbour Master’s Reporting Centre

also manages the national Reporting and Information Centre (Meld- en

Informatiepunt) where all questions and reports concerning the Shipping Waste

Treaty are received and passed on to other government departments. It appears

that the national Reporting and Information Centre offers added value to both the

sector and the relevant governmental departments in respect of compliance with the

Shipping Waste Decree. After the pilot period, we agreed with Water Management to

retain the national Reporting and Information Centre in 2011.

44 / 177


Bunkering and spills

Oil and/or chemicals may end up in the water when bunkering oil, transferring liquids

or for other reasons. In the event of such an incident, the Harbour Master ensures

the spill is contained to minimise the risk of consequential damage. The polluted

water and polluted ships or other objects are then cleaned. There were 240 recorded

spills in 2010; an actual clean-up operation was carried out on 53 of the spills.

Cleaning up spillages is extremely important to us in order to maintain a clean,

smooth, safe and secure port. In order to prevent any delays in the Turn Around

Time of a polluted ship and pollution of the port, a clean-up organisation is on

standby in the port 24 hours a day, seven days a week. In 2010, the spill control was

outsourced to a market party with qualified personnel and materials.

45 / 177


3.6 Secure

The Port Security Act applies to objects in the port area deemed high-risk from the

perspective of terrorism. These could be both port facilities and non port facilities.

The Harbour Master is also the Port Security Officer. In this role, he is responsible

for compliance with the Port Security Act. The Port Security Officer certifies the

security plan for the port facilities and high-risk objects, organises supervision and,

if necessary, acts in an enforcing role to ensure compliance with European

legislation.

In 2010, to comply with international safety standards, we actively worked on the

recertification of companies which are obliged to have ISPS certification but whose

certification was about to expire. In total, we issued 97 certificates, the majority of

which replaced expired certificates. The Harbour Master periodically inspected

businesses with ISPS certification to monitor implementation of their security plans.

According to internal standards, the security level is adequate if the average

assessment produces a score of 7.1 on a scale of 1 to 10. Business security that

had previously been assessed inadequate was subject to more frequent

inspections. In 2010, the businesses scored 7.0

46 / 177

47Report of the Port Authority > Customer



Customer

47 / 177

48Report of the Port Authority > Customer The Port of Rotterdam Authority Annual report 2010

4.1 Customer in brief

Our ambition is to maintain our market leader position in Europe and to gain market

share in the growth concepts Energy Port, Fuel Hub and Container Port. Together

with our customers, we invest in these growth concepts in order to achieve this

ambition. We invest in terrains which we lease out to customers as well as investing

in real estate or infrastructure, such as quay walls and jetties. In their turn, our

customers invest in specific business-related capital equipment, such as cranes and

storage tanks.

In order to retain our investment levels, we require our operating income to develop

consistently and soundly. To ensure healthy turnover development, we need a

diversified and high quality customer portfolio. After all, our growth ambitions could

be negatively affected if customers have limited room to invest or face bankruptcy.

We are working on improving our customer portfolio by strengthening the

relationships with our existing customers and acquiring new customers in specific

market segments. In addition, we are pursuing an active commercial policy whereby

we will acquire new customers and, in cooperation with them, consider ways in

which we can support them.

48 / 177


4.2 Our relationship with the customerIntroduction

We have two categories of contracted customers: location related customers and

customers that handle cargo. Location related customers are, for example,

refineries, chemical companies and terminals for handling and storing goods.

Customers that handle cargo are the large companies that execute checks on the

transport of goods. We do not have a contractual relationship with shippers and

forwarders (the so called “customer behind the customer”). Nevertheless, we believe

it is important to maintain a good and solid relationship with them; not least because

they have a significant effect on good flows. Therefore, shippers and forwarders

form part of a third category, i.e. non-contract customers.

In 2010 we strengthened our contacts with the most important location and good

handling customers. The “executive account programme” was a critical element in

this. Executive Board members frequently visit companies in the port and outside

the port. They discuss the strategic developments of the port and the interests of

those companies in these developments.

Customer satisfaction

In order to create and maintain good relationships, it is important to know how our

customers perceive the services of the Port of Rotterdam Authority. We carried out

a customer satisfaction survey at the beginning of 2010. The score for general

customer satisfaction levels was 7.2, similar to the 2007 result. The target for 2009

was a score of 7.4. Unfortunately we did not reach our target score. Nevertheless,

the customers believe that the quality of our services has improved; in particular

communication and cooperation improved substantially. We evaluated the results of

the survey and discussed the criticism with the companies involved. Points of

improvement are particularly related to accessibility, “value for money” and dealing

with complaints. Our target for the 2012 survey is a score of 7.4.

49 / 177


Harbour dues, rates

We fixed the yearly rate structure of harbour dues in cooperation with the market

parties involved, partly represented by Deltalinqs. At the end of 2009, we fixed the

2010 harbour due pricing policy. Hereby, we attempted to reduce the impact of the

crisis on our customers. We agreed on a non-recurring crisis deduction of 7% to the

rate structure of harbour dues for 2010. The consequences of the crisis are still

apparent in several market segments. For this reason, we awarded a recovery

deduction on the 2011 harbour due pricing policy for all goods segments. In addition,

we awarded a 3% deduction on the inland ship rate structure for 2011. Our aim is to

stimulate the supply and transit of goods through inland shipping.

50 / 177


4.3 Our market positionMarket developments

The recovery of world trade, which started in the second half of 2009, grew above

expectations in the first half of 2010. Since then growth has stabilised. The yearly

growth rate was 15% (source: CPB).

The throughput of most ports in the Hamburg-Le Havre range showed a similar

recovery curve in 2010. In particular, Rotterdam took advantage of the growth in

trade volume of mineral oil products in 2010; this was due to the price development

of these goods. In 2010, we managed to maintain the strengthening of our position

in the container market which started in 2009.

Throughput Rotterdam*

Rotterdam is the largest petrochemical cluster in Europe with five refineries and

forty chemical companies. Since the crisis of 2008/2009, the refinery and chemical

sectors have stagnated leading to overcapacity. In the refinery market, Rotterdam

enhanced its market leader position because two refineries in competing ports

(Dunkirk and Wilhelmshaven) closed in 2010. The refineries in Rotterdam further

enhanced their competitive position by targeted investments.

* Figures include throughput at terminals on the

northern banks of the river (Hook of Holland,

Vlaardingen, Schiedam). This throughput accounted

for approx. 3.1% of total throughput in 2010.

Harbour dues are excluded from PoR financial

statements because harbour dues are collected

by local municipalities.

0

10

20

30

40

50

60

Liquid bulk

Dry bulk

Containers

Breakbulk

2009 2010200820072006

0

10

20

30

40

50

60

Nat massagoed

Droog massagoed

Containers

Breakbulk

20102009200820072006

0

5

10

15

20

25

30

35

40

Dunkirk

Ghent

Zeeland Seaports

Wilhelmshaven

Zeebrugge

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerp

Rotterdam

2009 2010200820072006

0

5

10

15

20

25

30

35

40

Gent

Zeeland_Seaports

Wilhelmshaven

Zeebrugge

Duinkerken

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerpen

Rotterdam

20102009200820072006

Breakbulk 5,5%

Containers 26,1%

Dry bulk 19,7%

Mineral oil -


Crude oil 23,3%

Movements in throughput Rotterdam

(gross weight x 1.000 metrics tonnes) (net weight x 1.000 metric tonnes) 2010 2009 Difference in% 2008

Dry bulk 84,590 66,628 27.0 94,935

Liquid bulk 209,358 198,090 5.7 194,003

Total bulk goods 293,948 264,718 11.0 288,938

Containers 112,293 100,280 12.0 106,999

Breakbulk 23,686 21,959 7.9 25,199

Total general cargo 135,979 122,239 11.2 132,198

TOTAL goods throughput 429,927 386,957 11.1 421,136

51 / 177


The steel market in Europe recovered well. Most furnace-blast installations in the

Ruhr area are now utilising their full production capacity again. The iron ore and a

large share of the coal necessary for these furnaces are imported via Rotterdam;

consequently the transhipment of iron ore and coal is. almost back to normal levels.

However, the coal handling for power plants remained behind schedule due to the

low gas price in 2010. The gas heated power plants therefore operated at higher

production levels than the coal heated power plants. The handling of steel products,

such as sheets and roles, increased substantially in 2010. This was related to

changes in the worldwide supply of steel products.

Market share

Our market share for all good flows increased from 36.4% in 2009 to 37.8% in 2010;

this far exceeded our 2010 target of 36.3%.

In 2009, we defined three growth concepts to focus our marketing efforts on. The

concepts represent a critical element in our commercial strategy for the next five

years. The three growth concepts are: ‘Rotterdam Energy Port’, ’Rotterdam Fuel

Hub’ and ’Rotterdam Container Port’. In addition to these three growth concepts we

defined several other marketing concepts for favourable growth opportunities:

’Rotterdam Petrochemical Cluster’, ’Rotterdam Steel Port’, ’Rotterdam Cool Port’,

’Rotterdam RoRo Port’ and ’Rotterdam Service Port’. We have clarified our three

growth concepts ’Energy Port’, ’Container Port’ and ’Fuel Hub’ below.

Energy Port

Good flows

The growth concept Energy Port aims to be the market leader in ‘gas & power’, the

production of sustainable energy and the handling of related commodities. Those

commodities are especially cokes-coal, LNG (shipped liquefied natural gas) and bio

mass. The extension of the production of wind energy and the developments of

‘Carbon Capture and Storage’ (CCS) are also part of this concept.

Fossil versus new energy

Rotterdam Energy Port has a significant economic and societal impact on the

undisturbed and reliable supply of clean and affordable energy for the port, the

region, Netherlands and Northwest-Europe. A growth in the Rotterdam Energy Port

means an increase in CO2 emissions due to fossil sources (coal, gas, oil). The Port

of Rotterdam Authority is very aware of this dilemma. On the one hand, the

Rotterdam Energy Port is growing due to the increasing demand for energy from

businesses and households, on the other hand, the increase in CO2 emissions poses

a climate threat. That is why the new coal plants are committed to the newest

technologies with regards to the CO2 capture readiness principle, there is space to

capture CO2 emissions and we are working on CCS infrastructure. In addition, we

are focusing on new CO2 –reducing energy flows and products such as LNG and bio

mass. Those new flows are not only cleaner, but also offer certainty in respect of

future energy provision. Our ambition is to develop Rotterdam into the most energy-

efficient energy and industrial cluster in the world and the CO2 hub in Northwest-

Europe.

Market share Rotterdam in

Hamburg – Le Havre range

(Per main segment) in %

0

10

20

30

40

50

60

Liquid bulk

Dry bulk

Containers

Breakbulk

2009 2010200820072006

0

10

20

30

40

50

60

Nat massagoed

Droog massagoed

Containers

Breakbulk

20102009200820072006

0

5

10

15

20

25

30

35

40

Dunkirk

Ghent

Zeeland Seaports

Wilhelmshaven

Zeebrugge

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerp

Rotterdam

2009 2010200820072006

0

5

10

15

20

25

30

35

40

Gent

Zeeland_Seaports

Wilhelmshaven

Zeebrugge

Duinkerken

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerpen

Rotterdam

20102009200820072006

Breakbulk 5,5%

Containers 26,1%

Dry bulk 19,7%

Mineral oil -


Crude oil 23,3%

0

10

20

30

40

50

60

Liquid bulk

Dry bulk

Containers

Breakbulk

2009 2010200820072006

0

10

20

30

40

50

60

Nat massagoed

Droog massagoed

Containers

Breakbulk

20102009200820072006

0

5

10

15

20

25

30

35

40

Dunkirk

Ghent

Zeeland Seaports

Wilhelmshaven

Zeebrugge

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerp

Rotterdam

2009 2010200820072006

0

5

10

15

20

25

30

35

40

Gent

Zeeland_Seaports

Wilhelmshaven

Zeebrugge

Duinkerken

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerpen

Rotterdam

20102009200820072006

Breakbulk 5,5%

Containers 26,1%

Dry bulk 19,7%

Mineral oil -


Crude oil 23,3%

Movement market share Rotterdam in

de Hamburg - Le Havre range

(based on total throughput in tons) in %

52 / 177


Carbon Capture and Storage (CCS)

Since the start, the construction of E.ON’s and Electrabel GDF SUEZ’s new coal /

bio mass plants on the Maasvlakte has been linked to the development of carbon

capture and storage infrastructure. Together they plan to realise a CCS

demonstration project. To this end, they set up the joint venture ROAD CCS in 2010.

Partly funded by a European Union and Dutch State subsidy, ROAD intends to

capture and store a minimum of 4,000 kTon CO2 in a gas field at sea between 2015

and 2020. Furthermore, both parties aim to realise a CO2 shipping terminal, so

carbon dioxide can be liquefied and transported by ship to empty reservoirs in open

sea. In this context, the Port of Rotterdam Authority is conducting a location study, in

which we consider safety and synergy. In addition, the Port of Rotterdam Authority

has taken the initiative in the construction of an “open access” pipeline in the port

through which producers can transport their CO2 to a shipping terminal or an

offshore pipeline.

Liquefied Natural Gas (LNG)

Due to the crisis, the world demand for natural gas declined. Simultaneously, the

supply rose due to new natural gas producers in the United States and increased

LNG-export from the Middle East. These market conditions caused the price of

natural gas to decline significantly. Several LNG-terminal projects in the Hamburg-Le

Havre range were postponed or cancelled, including the LionGas project in

Rotterdam. On the other hand, Gate’s LNG-terminal will start operations soon; the

Danish company Dong Energy will be Gate’s first customer contracting LNG

suppliers. The residual heat from E.ON’s plant will be used by Gate to transform the

cold LNG into gas. In 2010, a residual heat pipeline was constructed underneath the

Yangstehaven. Gasunie also worked on its gas roundabout (Gasrotonde Rijnmond)

project in 2010; the aim of this project is to transport Gate’s gas to the hinterland.

The new EnecoGen power plant and the new hydrogen factories of Air Liquide and

Air Products will be connected to this in 2011. Furthermore, in 2010 the InterGen gas

heated Maasstroom Power Plant became operational.

Fuel Hub

For several years, the throughput of mineral oil products has grown substantially in

the port of Rotterdam. This particularly concerns fuels such as fuel oil, diesel,

kerosene and petrol. In recent years, the world wide transport of oil products has

also grown due to differences between demand and supply in the relevant regions.

An increase in the trading volume of almost all ‘liquid bulk’ flows has led to larger

handling volumes per ship and heavier demands on the nautical infrastructure in the

port. In 2010, several tank storage companies expanded: Europoort Tank Terminal

(Vitol), Argos Oil (Pernis), Botlek Tank Terminal (HES/Noble Group), Service

Terminal Rotterdam (STR). In 2010, we started a market consultation to gain insight

into the commercial possibilities for a new tank terminal Europoort-West located on

the Kop van de Beer. We had discussions with companies from Russia, China, India,

the United States and of course the Netherlands and Belgium. On the basis of the

market consultation and the tendering procedure, we will make a selection in 2011.

In addition to mineral oil products, bio fuels also increased significantly.. This

concerns bio-ethanol for mixing petrol, and bio diesel. This growth was driven by the

compulsory mixing of 4% proposed by the European Union in 2010.

53 / 177


Container Port

The container market is recovering remarkably fast. The majority of the ships that

were out of service in the crisis were back in operation in the first half of 2010. In

addition, 340 new ships were delivered of which 10% had a capacity equal to or in

excess of 10,000 TEU (source: Drewry Container market 2010/11 – Annual Review

and Forecast). Most of the so-called Ultra Large Container Vessels (ULCVs) are

used for the Asia-Europe trade, given the large volumes transported on this route,

especially from China. Rotterdam is the pre-eminent port to accommodate these

large vessels; consequently, in 2010, we welcomed a ULCV 172 times. The market

developments related to container traffic in the long term seems positive. The

construction of the new container terminals on Maasvlakte 2 (Rotterdam World

Gateway and APMT) is, therefore, progressing unimpaired. We are keeping a close

eye on the growth rate of both the demand for and supply of container capacity in

the port of Rotterdam.

We have noticed an increase in containerisation for the transport of cooled products

such as fruit, fish and meat and we are working towards a further integration of the

handling of these products, transported in containers and general cargo, with the

development of the ports in the Waal/Eemhaven area. We refer to this growth

concept as: “Cool Port”.

54 / 177


4.4 Port Marketing

We continuously work to maintain and extend our contacts with all the branches in the

eight segments (three growth concepts and five back bone and niche concepts) that

are relevant to the port of Rotterdam. To do this we employ a port marketing strategy

focussed on a number of marketing concepts The market segments are an important

asset in our commercial strategy for the coming five years. In addition to the focus on

growth, backbone and niche concepts, we also pay attention to total port marketing

(port branding).

We use various channels for the marketing and account management of the port.

Through our Business Managers we stay in direct contact with customers on a

day-to-day basis. In addition, our regional representatives in the most important areas

overseas (Japan, China, Brazil, Russia, USA, Austria) fulfil a crucial role in

maintaining contacts with market parties located there.

Another important channel is the Rotterdam Port Promotion Council (RPPC). The

RPPC functions as a PR and marketing office for port businesses in Rotterdam and

the surrounding area. In 2010 the RPPC once again organised several exhibitions

and made promotional trips to countries within and outside Europe.

55 / 177

56Report of the Port Authority > Area and space



Area and space

56 / 177

57Report of the Port Authority > Area and space The Port of Rotterdam Authority Annual report 2010

5.1 Area and space in briefSpace for growth is important for the development of the port. We are creating that

space through the construction of Maasvlakte 2; and also by intensifying the existing

Rotterdam port area, and developing and redeveloping existing and outdated plots

and properties. We intend to create an efficiently organised port area, with good

public infrastructure. In addition, we actively examine opportunities as they occur

outside the Rotterdam port area. Our total capital expenditure amounted to € 445

million in 2010.

In order to realise new plots and to intensify the utilisation of existing plots, long

term processes and proper preparations are required. Every postponement or

cancellation of investments or future land leases can limit the space for growth in

the port area. To avoid this and to optimise the utilisation of the existing port area,

we have constructive dialogue with relevant stakeholders. This approach is

explained in more detail in paragraph 7.4 Dialogue. Furthermore, the Port of

Rotterdam Authority uses the ‘best practices’ in risk and project control and the

project organisation Maasvlakte 2 has been accredited for working in accordance

with the project management method Prince 2.

57 / 177


5.2 Maasvlakte 2Introduction

Immediately to the west of the existing port area, we are constructing a new European

first-class location in the North Sea dedicated to port activities and industry:

Maasvlakte 2 will cover 2,000 hectares, of which 1,000 hectares will be lettable sites.

The port size will increase by 20%.

Maasvlakte 2 will be constructed in roughly two phases. The first phase (2008-2015)

consists of reclamation of the first part of the sand works (700 hectares), the

construction of the solid seawall, the necessary deepening of the port basins and the

construction of public infrastructure to reach the area. The second phase (2015-2030)

concerns the construction of the remaining sand works (300 hectares), the deepening

of the other port basins and the finalisation of the missing infrastructure. When there is

sufficient demand, the second phase construction work will start.

Global economic developments also have an impact on Maasvlakte 2. However at the

end of 2010, on the basis of the updated project business case, the Executive Board

and the Supervisory Board positively reconfirmed the investment decision made in

2006 concerning the construction of Maasvlakte 2.

Progress of the construction

The realisation of the majority of the project is being undertaken by the construction

consortium PUMA on the basis of the contract Seawall and first plots (Zeewering en

eerste haventerreinen). The total contract value is close to € 1,1 billion and is the

largest contract the Port of Rotterdam Authority has ever awarded. In September 2008,

we started construction; in 2009, the main project focus was land reclamation which

was continued in 2010. In addition, construction of quay walls and the solid seawall

started in 2010. Furthermore, projects related to the accessibility of Maasvlakte 2 from

the current Maasvlakte are in preparation or being carried out. The construction of

Maasvlakte 2 is progressing as planned. In 2010 all the planned milestones were

achieved:

• By the end of 2010, in total 2/3 of the sand works (240 million m3) had been reclaimed.

• The construction of the quay wall for the first customer (Rotterdam World Gateway,

RWG) started. The deep wall has been fully casted, the concrete works are progressing

well.

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• The construction of the solid seawall on the North-side of Maasvlakte 2 was started.

For this purpose, over one million tonnes of stone have already been delivered from

Norway and the old seawall partly dismantled.

• We brought the pipeline-passage Yangtzehaven into use. With this pipeline route for

utilities we realised a critical milestone in the continued construction of Maasvlakte 2.

• The broadening of the Southside of the Yangtzehaven is ready. This means the

Yangtzehaven is broad enough to serve as an access channel for Maasvlakte 2,

except for the cut which is scheduled for the first quarter of 2013.

The projects in the existing port area that are necessary for the accessibility of

Maasvlakte 2 (the so-called interface projects) also started in 2010. In March, we

awarded the construction of an overpass junction near Distripark Maasvlakte 1; the

construction works are progressing well. In 2010 we awarded several other projects

related to the modification, extension and connection of roads and rail to the existing

port area; these projects will start in 2011. All the projects aim to make Maasvlakte

2 accessible by 2013.

Sustainable execution and development

Sustainability is and will continue to be a major spearhead for Maasvlakte 2. To this

end, we have focused specific attention on the lay-out of public spaces. We are

investigating the possibility of designing and controlling a sustainable area. Subjects

of the study include, among other things, the multifunctional usage of the seawall

and the applicability of sustainable lightning.

We have made agreements with our customers concerning the sustainable lay-out

and operation of the terminals. We are in consultation with these terminal operators

with reference to the implementation of these agreements. These include issues

such as the selection of the terminal concept, the realisation of the model split and

the utilisation of materials. These experiences will be used in the future renting out

of plots on Maasvlakte 2. When renting out terrains, we aim at clustering, that is

combining existing and new energy and chemical companies, but also logistic areas.

We have done this in order to stimulate the mutual usage of energy and residual

flows and the development and usage of shared facilities.

To us sustainability also means sharing and passing on information. We have an

extended youth programme including a teaching package. The reach of this youth

programme is substantial. In 2010, the teaching package was often used by schools

and FutureLand, the Maasvlakte 2 information centre, was visited by schools twice a

week on average; the schools ranged from primary schools to secondary schools

and universities. The relationship built up with our customers, the environment and

other stakeholders is a critical success factor for the design of sustainability.

Agreements with stakeholders

In the run up to the construction of Maasvlakte 2, agreements about sustainable

execution and development were laid down in various contracts with stakeholders. In

the year 2010, the focus was on compliance with those agreements. In this context,

we delivered the first MEP+ (Monitoring and Evaluation Programme) and integral

report for discussion by the Council of Security (Tafel van Borging), the consultative

body of the agreement ‘Vision and Trust’ (Visie en vertrouwen). Furthermore, on the

basis of several agreements, we have been working on sustainable measures and

solutions. These measures vary from cleaning our own vessels to the

implementation of the Environmental Ship Index, see paragraph 7.2: Sustainability

for more information. We are going to assess these measures in respect of

feasibility and continued implementation in the next period.

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Monitoring

The authorities have established a wide-ranging monitoring programme with regards

to the Environmental Impact Studies (MERs; Milieu Effecten Rapportages). In 2010,

we started monitoring on all fronts. The Monitoring and Evaluation Programmes

(MEPs, Monitoring en Evaluatie Programma’s) aim to provide insight into the actual

effects of the construction, presence and utilisation of Maasvlakte 2. Subsequently

we assessed these in the light of the expected effects. These relate to estimates

of the effects on the water flow, sedimentation level, seabed life, algal as nutrition

provision for shellfish and the underwater noise caused by dredging ships. The

results will form input for the evaluation of the core urban planning decisions of

Project Mainport Rotterdam( planologische kernbeslissing Project Mainport

Rotterdam (PKB PMR)), and will form the basis on which the authorities can,

if necessary, amend implementing orders. Using this approach, we will be both

assessing and learning.

Communication

We consider public support very important for Maasvlakte 2,. In addition to complying

with agreements concluded with stakeholders, we have, from the start, been

communicating with the environment,the wider public and specific target groups. In

the first place, we keep our stakeholders updated through FutureLand, the

Maasvlakte 2information centre. Since its opening in May 2009, approximately

170,000 people have visited this centre of which over 100,000 in 2010. As of June

2010, the FutureLand Express was operational, allowing visitors to make a tour on

the reclaimed land. Approximately 10,000 passengers have already made this trip.

Communication was mainly via the media but we also used other means, such as

publication of a second issue of the MAASVLAKTE 2 Magazine and an art exhibition

of Maasvlakte 2 works (Portscapes) in the Museum Boijmans Van Beuningen.

Furthermore, we compiled a community-minded report of the MEPs in 2010.

During a conference about the facts related to Maasvlakte 2 (Maasvlakte 2 de feiten)

in March 2010, we shared the most important experiences from the preparation

phase of the project with approximately 300 interested people from several public and

corporate entities.

Archaeological discoveries

Building a future means giving consideration to the past. During the construction of

Maasvlakte 2 important archaeological discoveries are to be protected Legislation is

in place to do this but we also deem it our social responsibility. Until now we have not

discovered anything of particular archaeological interest. In the sand resource area,

there were a number of paleontological discoveries such as mammoth bones and

other fossils. In 2010, we signed an agreement with the Rotterdam’s natural history

museum stipulating that we would make the discoveries available to the museum. In

addition, we set up a small exhibition in FutureLand.

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5.3 Existing port area Introduction

Together with other companies the Port of Rotterdam Authority invests in the port

area. We invest in terrains to let these out to customers and we invest in real estate

or infrastructure, such as quay walls and jetties. In their turn, our customers invest in

specific business capital equipment such as cranes and storage tanks.

Intensifying space

Space is scarce in the port of Rotterdam area. With our investments we intend to

intensify and redevelop existing port areas. Similarly, our pricing policy is aimed at

stimulating the conscious usage of space. In addition, we consult businesses about

taking back plots or parts of plots that are not being optimally used. With this

approach, we took back over 20 hectares and reused them in 2010. Furthermore, we

are reducing the length of plot reservations and terrain options.

Investments are required in order to intensify the utilisation of space. In the end

however, intensification of space leads to an increased number of leased hectares,

increased throughput and an increase in our income per square meter. Of the total of

5,252 hectares in the existing port area, 4,781 hectares are let out to our customers,

97 hectares are in option to customers and 180 hectares are reserved for potential

leases. Approximately 200 hectares are still available. The vacant terrains are in

general small and not located on the waterfront.

Intensifying in collaboration with port businesses

Europoort Tank Terminal

In 2010, the Port of Rotterdam Authority decided to facilitate the enlargement of the

Europoort Tank Terminals (ETT). ETT expects to realise an additional 383,000 m3 of

storage capacity. The Port of Rotterdam Authority planned to invest in a jetty to

accommodate additional handling capacity. Our investments are necessary to balance

the handling and storage capacity after enlargement. Previously unused terrain will be

used for the construction of the new storage tanks.

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EMO

The Port of Rotterdam Authority also decided to construct infrastructure for an EMO

establishment and to fill in the former Hartelkanaal in 2010. The plot covers 24

hectares. In order to make the terminal suitable for the handling of coal and iron ore,

we will realise a quay wall. EMO is expected to handle about 5.6 million additional

tonnes per year.

Botlek Tank Terminal

Furthermore, in 2010 the Port of Rotterdam Authority decided to invest in infrastructure

for a new liquid bulk terminal for Botlek Tank Terminal (BTT). We have invested in the

filling in of an area of 5 hectares to be an extension of the existing terrain and in some

additional works. BTT is investing in the terminal. The storage capacity will grow to

526,000 m3 after completion of the project in 2014. This is expected to result in the

handling of 3.4 million tons per year. Currently, BTT is subject to an MER procedure

(Environmental Impact Study) that is expected to be completed in the second half of

2011. Afterwards, the filling in will start, and be completed in phases. The filling in is

expected to be completed in the middle of 2013 and to be fully operational one year

later.

LNG import terminal (Gate)

The realisation of Gate’s LNG import terminal is progressing successfully. The

so-called ‘Kleine Beerkanaal’ is being realised at the former dredging depot. The

completion of this cut is scheduled for the end of April 2011. Due to the filling in and

modified operational usage, the LNG import terminal is a spatial expansion to the port

of Rotterdam area. The terminal is now beginning to acquire its intended shape. The

three LNG tanks have almost been completed. The gasification installations are also

acquiring their intended shape. The drilling of the warm-water pipeline underneath the

Yangtzehaven has been realised and the jetties for the LNG carriers virtually

completed. Commercial usage of the LNG import terminal is planned for the end of

2011. A plot reservation is in place for a fourth tank and discussions have been started

with Gate concerning a potential expansion by means of a fifth tank. In the first months

of 2011, we will mutually compare possible locations.

Clean-up Welplaatweg

In 2010, we started cleaning up the terrain located on the Welpaatweg, the purpose

being to let out this terminal, which had previously been used by the chemical

company TIC, to AKZO Nobel. In addition, this long term cleaning up is also intended

to create the space necessary to safeguard AKZO Nobel´s future production.

Calandkanaal

In 2010, the so-called offshore pit was completed. This location is suitable for work on,

for example, drilling rigs. When the offshore pit is not being used by the offshore

industry, board-to-board handling of bulk goods can be facilitated. In the Calandkanaal,

we also realised the dolphins 78/79 for the board-to-board handling of bulk goods. This

has created handling capacity without using scarce terrain on land.

Amazonehaven

The new container terminals located on Maasvlakte 2 increase the handling capacity

in the container segment. In 2010, an important intensification of the container

segment was definitively started in the existing port area. Due to the expansion, the

ECT Delta Terminal will become accessible for the largest container vessels.

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CityPorts

The Rotterdam CityPorts form a transition area between the city and the port. Both

urban functions and functions supporting the port processes will be established in

these former port areas, the aim being to improve the business climate in the port of

Rotterdam. The agreements concerning the transition of the CityPorts are related to

the agreements concerning the construction of Maasvlakte 2. On 6 April 2010, former

prime-minister Jan Peter Balkenende initiated the accelerated development of

CityPorts. The CityPorts project was one of the sixty projects carried out at an

accelerated pace by virtue of the Crisis and Recovery Act. This Act guaranteed shorter

procedures enabling construction work to be started more rapidly.

In 2010, the Port of Rotterdam Authority invested in the CityPorts around the former

RDM Shipyard. In 2010, the replacement of the electricity and gas network in the

shipyard was completed. New businesses located on the RDM Campus can connect to

this network. In the Dokhaven and Heijsehaven, we demolished and replaced several

quay walls and jetties. The educational centre SAIO was established in a redeveloped

former dock office in the Heijsehaven. SAIO is a service and training provider for port

businesses in the areas of safety and calamities. This redevelopment has improved

the environmental quality and provided space to service businesses in the port.

Furthermore, in 2010 we concluded an agreement for the establishment of Heesen

yacht construction on the former RDM wharf. With a wink from the past, the

establishment of Heesen forms the basis of a new cluster in the port of Rotterdam.

Yacht construction will generate an impulse for innovation and technology. This new

cluster therefore fits in with the established schools and the so-called Innovation Dock;

a start-up area for innovative businesses.

Intensifying due to regional collaboration

In 2010, we reached outline agreement with the municipality of Dordrecht about the

management, operations and development of the seaport area Dordrecht. Through

this collaboration both parties are seeking synergy and scale advantages. The seaport

of Dordrecht will be able to improve its quality while the port of Rotterdam is being

offered the possibility of fulfilling part of its need for space in the seaport of Dordrecht

area. Certain reservations will have to be given further consideration and dealt with in

the first half of 2011, before the collaboration starts on 1 July 2011.

The development of real estate as impulse for the redevel-opment of areas

Port City is a real estate development of the Port of Rotterdam Authority. The aim of

this real estate development is to attract businesses in the maritime sector to the port

of Rotterdam area by offering them a location for their head quarters. A second aim of

the development of Port City is to give a quality impulse to the redevelopment of the

outdated industrial zone Waalhaven Zuid, located nearby.

In total, Port City offer space for four office buildings. In July 2010, Port City buildings 2

and 3 were completed while building 1 was completed in December 2010.

The schedule for 2011 is to have the car park and the public deck surrounding building

1 completed in March 2011. We aim to let out the terrain for building 4 in 2011. Just

like building 1, this building will not be constructed by us but by third parties.

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64Report of the Port Authority > Traffic and accessibility



Traffic and accessibility

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65Report of the Port Authority > Traffic and accessibility The Port of Rotterdam Authority Annual report 2010

6.1 Traffic and accessibility in briefThe port of Rotterdam can handle the very largest ocean vessels. Due to its

excellent access to the hinterland and the European market via inland shipping,

short sea, rail, road and pipeline, Rotterdam is a major hub in the logistic chain.

Increasing throughput leads to an increase in the required transport capacity. That is

why we are investing in the expansion of infrastructure and in innovative and

sustainable transport concepts, in collaboration with authorities and market parties.

Underlying this view is the fact that no single party has all the management or

solutions in its hands. Government bodies fulfil an important role in adapting

infrastructure or improving usage, while market parties, employers and employees

can exercise influence on the extent and timing of transport and traffic flows.

Ultimately our final goal is: better and more sustainable accessibility due to the

transfer of traffic from roads to the cleaner modalities water, rail and pipelines,

referred to as the “modal shift”.

The Port of Rotterdam Authority stimulates the use of modalities other than roads

by, if possible, facilitating and extending the availability of those modalities. For the

development of the “modal split”: please refer to the graphs.

The factor posing the greatest risk in ‘Traffic and accessibility’ is the poor

accessibility of the port via the A15 motorway. The customer satisfaction survey

carried out in 2010 indicated customers were dissatisfied about the accessibility of

the port. To improve the accessibility, the Port of Rotterdam Authority is actively

working together with partners in De Verkeersonderneming, see also paragraph 6.2

Road. Specifically to maintain the flow of the Beneluxtunnel, we are contributing to

the realisation of a New Western Riverbank connection (see also paragraph 6.2

Road). Hereby we are pro-actively participating in an efficient decision-making

process and efficient and effective planning procedures. We are taking an active role

as one of the interested parties in respect of all the stakeholders and are

considering participating in the investment, if this will enhance a timely construction.

This chapter describes the milestones for 2010 in respect of a number of the larger

accessibility projects for the different transport modalities road, rail, short sea and

pipelines. The accessibility by sea is clarified in chapter 3.

Modal split 2009 *

*figures for 2010 are not available until mid 2011

Target modal split 2035

Development modal split *

*figures for 2010 are not available until mid 2011

x 1.000 moves

Rail transport 14%

Inland shipping 39%

Road 47%

Road 35%

Inland shipping 45%

Rail transport 20%

0

500

1.000

1.500

2.000

2.500

Rail transport

Inland shipping

Road

200920082007

Rail transport 14%

Inland shipping 39%

Road 47%

Road 35%

Inland shipping 45%

Rail transport 20%

0

500

1.000

1.500

2.000

2.500

Rail transport

Inland shipping

Road

200920082007

Rail transport 14%

Inland shipping 39%

Road 47%

Road 35%

Inland shipping 45%

Rail transport 20%

0

500

1.000

1.500

2.000

2.500

Rail transport

Inland shipping

Road

200920082007

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6.2 RoadIntroduction

In 2010, we also actively cooperated with relevant authorities and market parties to

improve the accessibility of the port by road. The 2010 objectives were:

• To keep the percentage of container volume transported to and from the Maasvlakte by

road (the so-called “modal split”) at or under 47%;

• To achieve a maximum journey time of 38 minutes (between Vaanplein and Maasvlakte)

in 85% of all rush hours on the A15 motorway.

At the time of publication of this Annual Report, the results of the 2010 objectives are

not yet available. We can, however, explain what our efforts were to achieve those

goals. In the next few paragraphs, we explain the developments in 2010 concerning:

De Verkeersonderneming, the New Western Riverbank connection and the Container

Transferium

De Verkeersonderneming

The only motorway to the port of Rotterdam, the A15, is vulnerable to congestion. The

current congestion burden and the increase in road traffic mean measures need to be

taken. In addition to these, preparations are underway for the widening of the A15

motorway, a project that will take 5 years. The Verkeersonderneming, set up in June

2008, is a strategic cooperative venture in which the Port of Rotterdam Authority is

working closely with the Directorate-General of Public Works and Water Management,

the municipality of Rotterdam and the Urban Region on the accessibility of the port

via the A15 motorway. De Verkeersonderneming is organising measures to reduce the

number of cars during the rush hours by 20% (compared to 2008) and to optimise the

available road capacity. In 2010, the results of De Verkeersonderneming´s important

projects were:

• Congestion scores: The project financially rewards commuters for avoiding travelling via

the A15 during rush hours. Currently, the project has contributed to a traffic reduction of

7%. The number of participants amounted to approximately 1,800 by the end of 2010.

• E-bikes: by the end of 2010 over 300 port employees had chosen to commute to

work by means of an e-bike or scooter instead of a car. This was partially due to the

stimulation measures of De Verkeersonderneming.

• Height detection: At the terminal of P&O North Sea Ferries the height of trailers is

measured before departure. By doing this, we intend to avoid damage to tunnels and

flyovers in the port area resulting in unnecessary congestion.

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• Thanks to Hotel at Work and Port Project Services, there are more possibilities to

accommodate large groups of temporary employees close to the work site and to

transport them collectively. De Verkeersonderneming took the initiative to establish this

hotel in the Maasvlakte, the hotel rented out 650 beds in 2010. Port Project Services

accommodated 200 employees in Vlaardingen. Collective company transportation

transports employees from and to the port.

• Carpooling: since October 2010 there has been an online carpool-matching site for the

port area. People who work in the port area can make seats in their car available or

find a seat in someone else’s car.

In addition, together with other parties, we ensure that road users can take

alternative routes when there is congestion on the A15 or other main roads. We are

trying to achieve this by using dynamic route panels that indicate whether the Botlek

Bridge is closed and report traffic diversions, as well as using boards indicating

alternative routes, links to manage traffic lights from a distance and extra monitoring

systems that can be consulted online by all involved parties.

New West Riverbank connection

The competitive position of the port of Rotterdam is increasingly determined by the

accessibility of the hinterland. The road accessibility is under huge pressure, and

without drastic measures the Rotterdam cross-section (Rotterdams Ruit) will be

jammed within 10 years. This was and is the reason for the Port of Rotterdam

Authority to actively participate in the timely completion of a river-connection west of

the Benelux tunnel.Last year we pro-actively participated in the team of Rotterdam

Vooruit (a cooperative body with the Ministry of Infrastructure and Environment,

Province of South-Holland and the Urban Region of Rotterdam) to compile the

necessary study plan documents. Given the results of the studies, the Port of

Rotterdam Authority has announced its preference for the Blankenburg route,

because this alternative will contribute the most to the accessibility. A study has been

carried out to explore the possibilities of cost-bearing and financing. The Port of

Rotterdam Authority has indicated that it wants to participate in the realisation and

management of the Blankenburg tunnel. We hope this will help overcome the

financial obstacles and facilitate a quick construction of the riverbank connection.

In 2011, the decision-making process concerning the preference route will take

place. We are supporting this process by actively participating in the realisation of

the structural vision or, as the case may be, the preferred decision and by studying

the route that best fits into our social responsibility principles.

Container Transferium

To relieve the traffic pressure on the A15, we actively worked on the realisation of a

container transfer point in Alblasserdam. Through this transfer point, goods can be

shipped by inland vessels and then transported on to the hinterland by truck. Due to

extensive consultation with the various stakeholders, in particularly in the

Drechtsteden area, the realisation of the Container Transfer Point (the so-called

Container Tranferium) has got closer. In November, the municipality of Alblasserdam

and the Port of Rotterdam Authority signed an agreement concerning ground

exploitation and planning blight. A tripartite agreement was also concluded between

the municipality of Alblasserdam, the Port of Rotterdam Authority and the

prospective manager BCTN. This agreement concerns sustainability and Sundays

being rest days at the terminal (see also paragraph 7.2 Sustainability subsection

sustainable letting). The start of quay wall constructions is planned in the first

quarter of 2011 after which delivery of the terminal to BCTN is expected in the

middle of 2012. Consequently, the Container Transferium should be able to start

operations in the second half of 2012.

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6.3 RailIntroduction

Our target is to transport 20% of the container flows from Maasvlakte 2 by rail by

2035. The objective has been translated into agreements with companies that will

operate in Maasvlakte 2. We expect approximately 3 million TEU (containers) to be

transported to and from the Maasvlakte by rail in 2035, that is a fourfold of the

current rail transport. To accommodate this growth, we have established a rail

programme. The rail programme aims to improve the utilisation of the existing rail

infrastructure, construct any additional infrastructure required and attract new cargo

flows; not only in the port area, but also in the corridors to the hinterland and the

hinterland itself. Below we present the rail developments in 2010 per category.

Rail developments in the port area

Until April 2010, new customer specific rail connections were realised by NS

Spooraansluitingen and ProRail. To serve customers in the port area better, the Port

of Rotterdam Authority has been developing rail connections for customers since

April 2010. This will enable us to be act more pro-actively and improve our services

to our customers.

On the main track of the Port railway, the Calandbrug is the busiest place where rail

traffic crosses shipping traffic. The rail traffic faces considerable congestion when

the bridge is open. With Water Management, KeyRail and ProRail, we have achieved

operational alignment enabling expected bridge openings to be announced to all

parties in advance. Due to this operational agreement, KeyRail can organise its train

services better with respect to bridge openings.

In 2010, we started the study ‘Logistic exploration of the Port railway ‘(Logistieke

Verkenning Havenspoorlijn) together with ProRail and our participation KeyRail.

This study forms the foundation for logistic improvements in the port of Rotterdam.

These improvements will be worked out with the Ministry of Infrastructure and

Environment, Keyrail and market parties.

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Rail developments in the corridor

We believe that the Betuweroute is essential for Rotterdam to be a genuine rail port.

The 158.5 kilometre long freight rail route from the Maasvlakte to the German border

ensures a good rail link to the German hinterland. The Betuweroute is being made

increasing use of and KeyRail expects a sizable growth in the years to come.

The Ministry of Infrastructure and Environment is the principal for the ‘High

frequency rail transport programme’ (Programma Hoogfrequent Spoorvervoer

(PHS)). The objective of this programme is to enable high frequency rail transport on

highly utilised rail routes in the Randstad. With other stakeholders, the Port of

Rotterdam Authority is taking part in one of the region-bounded task forces that are

working on the definitive execution of PHS. For us, the most important point of

attention within PHS is the connection of the port to three locations in the German

network: Oldenzaal, Zevenaar and Venlo. This will provide us with reliable

accessibility to the German hinterland. To achieve this, PHS has proposed a railway

curve at Meteren, at the Elso crossing, and a railway curve by Deventer. These three

infrastructural adjustments are part of the Cabinet decision concerning the

programme taken on 4 June 2010.

Rail developments in the hinterland

The Port of Rotterdam Authority aims to achieve a growth in Rotterdam’s market

share of the hinterland. In 2010, we intensified our relationship with terminals in the

hinterland with the objective of optimising the shared chain from Rotterdam to the

hinterland. For this purpose, we started several consultations and projects with

among others Venlo, Duisburg and Munich/Bavaria. In Venlo, the Port of Rotterdam

Authority took a seat in the Supervisory Board of Greenport Development Company

Venlo. The same applies to the administrative advisory body of the logistic execution

agenda of NV Region Venlo. In Duisburg, together with Duisburg Agency and

KeyRail, we started the project “Supply Chain Cooperation”. This project aims to

optimise the logistic process by enhanced chain arrangements and communications.

Finally, in Munich the Port of Rotterdam Authority, together with the Dutch Consulate

and businesses from Rotterdam, entered into consultations with key figures from

Bavarian logistics and politics. This objective of this consultation is to achieve a

frequent and reliable rail connection between Bavaria and Rotterdam.

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6.4 Inland shippingIntroduction

Our target is to transport 45% of the container flows from Maasvlakte 2 by inland

ship by 2035. It is anticipated that approximately 7 million TEU (containers) will be

transported to and from the Maasvlakte by inland ship in 2035, that is a fourfold of

the current inland shipping. This development requires strong, sustainable and

competitive inland shipping.

To achieve our 45% target in 2035, we have formulated an inland shipping

programme. Together with the rail programme, this programme must ensure that

Rotterdam can offer the market optimal added value. Specifically it concerns

activities around the themes: more capacity, optimal utilisation and sustainability and

efficient logistic processes.

Inland shipping in the port

The Port of Rotterdam Authority (as port manager) has the task of guaranteeing

sufficient capacity for the handling of containers for inland shipping. More and more

attention is being paid to a better utilisation of this capacity, because we cannot

inexhaustibly continue to expand. Consequently, the Port of Rotterdam Authority

intends to try to reduce the length of stay of inland vessels in the port.

In the port, the Port of Rotterdam Authority and terminal operators are increasingly

working towards more specific inland shipping facilities. In addition to current

examples (Hartelhaven, Delta Barge Feeder Terminal), this also applies to the new

deep sea terminals on Maasvlakte 2. Besides that, a reservation has been made to

realise a joint barge terminal for the handling of smaller numbers of containers on

Maasvlakte 2. There is already market interest in this concept. Furthermore, we

investigated the required capacity for wait and berth facilities for inland ships in

2010. On the basis of this study, we decided to develop an integral vision for wait

and berth facilities. In this vision attention will definitely be paid to the operational

distinction between wait and berth facilities and an enhanced utilisation of wait

facilities. From the programme Peaks in the Delta for the South Wing (Pieken in de

Delta), a subsidy has been granted for the development of a reservation system for

wait and berth facilities.

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Inland shipping in the hinterland

In order to create an optimal network for inland shipping, the Port of Rotterdam

Authority is focussing on the inland waterway corridors and the hinterland. We can

do this by acquiring terrains for inland terminals ourselves and letting these out to

commercial terminal operators at competitive prices. In 2010, we agreed with the

municipality Alblaserdam and the operator BCTN in respect of the Container

Transferium In addition, the Port of Rotterdam Authority acquired terrains in

Wanssum close to the German border and in Alphen aan de Rijn, the so-called

Alpherium. The Alpherium started operations in October 2010 and already Heineken

is transporting a large share of its export beer through this barge terminal to

Rotterdam.

In January 2011, there was a long term blockage of the Rhine near the Lorelei rock

in Germany. The cause was the capsize of an inland ship carrying sulphuric acid.

This blockage continued for a month and caused a substantial loss to several Dutch

inland shippers. The Port of Rotterdam Authority is aware that incidents involving

chemicals may not be underestimated. On the other hand, the Port of Rotterdam

Authority understood the call from the Dutch inland shipping sector for quicker action

on the part of the German authorities. Our agreements with businesses on

Maasvlakte 2 concerning hinterland transport over water require open waterways.

Together with German and Dutch organisations, we will investigate whether we can

prevent long term blockages in the near future.

Efficient logistic process

Given the significant increase in the container volume of inland ships and the

number of seaport terminals, the Port of Rotterdam Authority wants to improve the

handling of inland container shipping. Opportunities for direct control by the public

and management branch of the Port of Rotterdam Authority are limited. However, in

2011 we and the (chain)parties concerned plan to determine how we can stimulate

improvements in inland container shipping. Together with the market, the Port of

Rotterdam Authority is increasingly frequently participating in pilot projects for modal

shifts and the acquisition of freight flows. A successful example in 2010 was the joint

pilot project with Philips Lighting and Mearsk. Since 2010, all 600 export containers

from the distribution centre in Roosendaal have been transported to Rotterdam via

Moerdijk by inland ships; thus contributing to the reduction of congestion on the A15.

Sustainable inland shipping

In order to preserve the modality inland shipping, we executed several projects and

took measures in 2010. See paragraph 7.2 (Sustainability, under sustainable

transport) which clarifies shore-based power, the new regulation governing clean

inland shipping and speed limitations.

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6.5 PipelinesIntroduction

The Port of Rotterdam Authority wants to develop the port of Rotterdam into

Europe’s number one energy port. Due to the excellent wire and cable

infrastructure, Rotterdam has an attractive business climate. We want to maintain

and strengthen that position. Together with the market, we want to realise an

efficient and effective pipeline network. With approximately 1,500 km oil and

chemical pipelines, 830 km utility pipelines, 2,500 km high voltage cables and many

kilometres of data wires, the underground infrastructure is an important transport

modality. Transport by pipeline is environmental friendly, safe and congestion free.

The underground cable and pipeline network forms the mutual link between the

businesses in the port area, and to businesses in the Netherlands, Belgium and

Germany. Pipelines account for 37% of cross-border transport from the port of

Rotterdam (51 million tonnes, source: CBS).

Strategy and action plan

In 2010 we drew up the “Strategy and action plan Pipelines 2010-2015” (Strategie

en Actieplanpijpleidingen 2010-2015). The main point is the joint development of

open-access pipelines with market parties. Another spearhead is the assurance of

the accessibility of underground infrastructure. Sufficient space is required in the

pipeline routes for new cables and pipelines. The pipeline routes are clamped

between other infrastructure. Therefore, we can only solve bottlenecks by

intensifying the utilisation of the existing space.

Projects

In 2010, we started the construction of an 800 meter long pipeline crossover

between the Aveling and Digna Johannaweg. In 2011, the first phase of this

infrastructural facility should be completed. Because of the importance and the

advantages of pipelines as transport modality, the Port of Rotterdam Authority has

participated in the following pipeline-projects:

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RC2 and MultiCore

RC2 and Multicore are entities that operate pipelines in the port of Rotterdam area

(see also paragraph 2.7 Participations). De RC2 pipeline is a single common carrier

pipeline for the transport of ethylene. Common carrier means that the pipeline can

be used by multiple users at the same time. Multicore has an underground pipeline

route of 4 x 20 km between Europoort, Botlek and Pernis which can be used by

businesses. In 2010, Multicore concluded an agreement with a 7th customer, Shell

Chemicals Europe. Consequently, 80% of the pipeline capacity is now rented. In

2010, the Port of Rotterdam Authority contacted several businesses in the port to

assess the interest in pipeline transport. The assessment demonstrated that a new

MultiCore pipeline through the port was viable. We hope to develop this in 2011; our

intention is to use one of the pipelines to transport CO2.

Steam pipe

Together with market parties, the Port of Rotterdam Authority worked on a business

case for the Steam pipe Botlek. By means of transport pipelines for steam,

businesses can mutually exchange steam and therefore make substantial savings in

their energy usage; which will contribute to the CO2 reduction proposals of the

Rotterdam Climate Initiative. In 2010, Stedin and Visser & Smit Hanab reached

agreement with DSM and AVR, their first customers, on the transportation of steam.

Based on this agreement the Steam pipe will be constructed in 2011. The project is

supported by a subsidy from “Pieken in de Delta” the municipality of Rotterdam, the

province and the state. The Port of Rotterdam Authority is supporting further project

developments, aimed at the extension of steam pipelines.

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74Report of the Port Authority > Environment and sustainability

report of the port authority 1 The Port of Rotterdam2 About the Port of Rotterdam Authority3 Harbour Master4 Customer5 Area and space6 Traffic and accessibility7 Environment and

sustainability8 Finance9 Outlook 2011


Environment and sustainability

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75Report of the Port Authority > Environment and sustainability The Port of Rotterdam Authority Annual report 2010

7.1 Environment and sustainability in brief

For the Port of Rotterdam Authority, sustainability not only means improving our own

individual performance but also encouraging sustainable enterprises in the port and

industrial complex. The improvements we can achieve are related to those three

criteria and are dependent on the influence we can exert:

activities port

and industrial

complex

chainport authority

business

operations

influence:

fair

influence:

limited

influence:

high

effect:

fair

effect:

high

effect:

limited

No-one travelling through the port will immediately think about sustainability. Among

other things, the petrochemical industry, coal power plants and the extensive traffic

flows evoke another image. However, today’s society cannot live without products,

wants to be assured of the supply of electricity and gas, and also wants to work.

Within this field of tension, we are convinced that we should continuously dedicate

ourselves to a strong port and an environment where the quality of life is good. We

do this by, for example, being a partner in the Rotterdam Climate Initiative and by

contributing to innovation, knowledge development and jobs. Naturally, we also

concentrate on enhancing the performance of our own organisation.

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7.2 SustainabilityIntroduction

Sustainability encompasses three elements: people, planet and profit.

The focus of our social activities (people) is predominantly the relationship between

the port and the city, our direct and indirect contribution to employment and our

contribution to knowledge and education. In this context, we dedicate special

attention to ensuring that, in the port, there is a sufficient number of qualified

personnel available to realise our growth ambitions. And naturally we pay specific

attention to our own staff. See also paragraph 2.6 (Employees). The profit side of

sustainability relates to our focus on the return on investment, chain-efficiency and

the establishment of businesses in the right location.For the impact the element

planet has on sustainability, we have, in the same way as last year, made use of the

sustainability index (see left column of figure 1). During 2010, we focused on

‘sustainable operations’, ‘sustainable use of space’ and ‘sustainable transport’. The

reasons for this were a better fit with our core activities and increased transparency

of our own performance. Efficient use of space and efficient transport will be

discussed in the chapters “Area and space” (chapter 5) and “Traffic and

accessibility” (chapter 6).

Figure 1 Correlation of themes within sustainability SUSTAINABILITY

Sustainable business PoR

Sustainability index Part of ‘Area and space’ and ‘Traffic and accessibility

Better use of infrastructure

Better use of modalities

Cleaner modalities

Modal shift towards

cleaner modalities

Sustainable use of area Sustainable transport

DUURZAAMHEID

Duurzame bedrijfsvoering HbR

CO2-footprint

Duurzaam vastgoed

Duurzame uitgifte

MTO/BWO

ROCE

Efficiency ruimtegebruik

Meer uitgeefbaar terrein

Beter gebruik ruimte

Efficiency transport

Beter gebruik infrastructuur

Beter gebruik modaliteiten

Duurzame inkoop en aanbesteding

Duurzame uitgifte

Duurzaam gebruik bestaande ruimte (complex)

Schonere modaliteiten

Modal shift richting schonere modaliteiten

Duurzaam ruimtegebruik

Duurzaam transport

Sustainable property

Sustainable allocation

ESS/BES

ROCE

CO2-footprint

Sustainable purchasing

& tendering

Efficient use of area

More area for allocation

Better use of area

Sustainable allocation

Sustainable use of

Existing area (complex)

Efficiency transport

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Sustainable operations

CO2 footprint Port of Rotterdam Authority

The yearly reporting with respect to the CO2 footprint of the Port of Rotterdam

Authority provides the CO2 emissions of our own activities. The footprint is based on

the ISO 14064 standards from the Greenhouse Gas (GHG) protocol. The Port of

Rotterdam Authority has applied this method and, on this basis, made a choice of

the most relevant CO2 producing activities. In 2008, we expressed the ambition for

our own business operations to be CO2 neutral with effect from 1 January 2012 with,

as an additional target, a 35%reduction in our own CO2 footprint in comparison to the

base year 2007. The report of the 2009 operations is the third report in the series

and became available in 2010. The report on the 2010 operations will become

available during 2011. The data gathering for the report concerning 2009 and the

reliability of the figures has improved. The CO2 footprint for the year 2009 totals 28

kTon CO2 i.e. a reduction of 15% compared to 2007 (see table 1). This reduction is

substantial and is mainly due to the fact that no deep quay walls were constructed in

2008 and 2009 (scope 3).

1 In this respect, the construction of Maasvlakte 2 has been excluded for comparison purposes with 2008 and

2007. Below it will be reported separately.

• Scope1 (direct emissions): the reduction of direct emissions compared to 2007 is

mainly due to both the reduction in fuel consumption of our vessels (0.8 kTon), as a

result of the Dynamic Savings Programme (Voortvarend Besparen) started in 2008,

and the procurement of green gas for the offices of the Port of Rotterdam Authority

(-0.3 kTon) since 2009. In contrast to the savings of 1.1 kTon CO2, there was an

increase in CO2 emissions of 0.1 kTon CO

2. This was the result of an increase in the

total number of lease cars, by about 20 cars, and insufficient visibility in the emission

figures in respect of the effects of measures such as the usage of alternative fuels.

• Scope2 (indirect emissions): These emissions are limited due to the Port of

Rotterdam Authority having made use of green energy for the office buildings it

controls itself since 2007. The scope 2 emissions have increased by 0.1 kTon CO2

since 2007 due to more energy being consumed in the offices. The energy demand is

strongly dependent on external factors (cold winters) and the acquisition, selling and

construction of real estate.

• Scope3(other indirect emissions): the reduction of the total emissions for the Port

of Rotterdam Authority is mainly attributable to a reduction is the scope 3 emissions.

The reduction is 4.3 kTon compared to 2007. The main reason for the reduction is the

decrease in diesel consumption for the construction of deep quay walls (-4.2 kTon),

because there were no deep quay wall constructions in 2008 and 2009. In contrast

to the decrease, there was an increase of 1.4 kTon CO2 because of the increase of

combi wall constructions. In 2009 more walls were constructed than in 2007 and 2008.

Another reason for the reduction of scope 3 emissions was the substantial decrease

of diesel consumption for dredging (-1.6 kTon) as a consequence of more efficient

dredging.

Table 1: CO2-footprint Port of Rotterdam Table 1: CO2 footprint over 2009 compared to preceding years (in kTon CO2)

2009 2008 2007

Scope 1: direct emissions 8.0 9.0 9.0

Scope 2: indirect emissions 4.0 4.2 3.9

Scope 3: other indirect emissions 1 15.9 15.9 20,1

TOTAAL 27.9 29.1 33.0

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The activities related to the completion of quay walls, roads and Maasvlakte 2 and

the maintenance dredging (scope 3) will no longer form part of the CO2 footprint

report (2010) concerning our reduction and climate-neutral objectives. This is due to

the limited influence we have on those activities, the fluctuations per year (depended

on the market demand) and natural factors, such as drainage, which determines

whether we should dredge more or dredge less per year. Our CO2 reductions in

respect of these activities will be reported in the category “ Sustainable procurement

and tendering”. The objective of operating on a CO2 neutral basis in 2012 has been

changed due to the limitations of scope 3.The objective has now been reduced to

compensation of the scope 1 and scope 2 emissions and restricted scope 3

emissions. In the new Business Plan, the reduction objective of 35% in 2012

compared to 2007 has been replaced by a reduction objective of 10% in 2015

compared to 2010.

The construction of Maasvlakte 2 is not considered in the CO2 footprint, because it is

a separate project in which the volume is not proportional to the general operations

of the Port of Rotterdam Authority. The emissions of projects such as the

construction of Maasvlakte 2 are therefore not considered in the CO2 neutrality

targets for the end of 2011. In 2009, the construction of Maasvlakte 2 started; for the

land reclamation in 2009 approximately 79 million m3 of sand was reclaimed and

used. The total CO2 emissions were circa 230 kTon CO

2 eq.

Sustainable procurement and tendering

For the procurement of goods, works and services, we focus on the sustainability

criteria we deem most important: sustainable operations, sustainable usage of space

and sustainable transport.

In 2009, we translated these focus areas into selection and allotment criteria which

we also used in two pilot projects. We formulated emission requirements for vehicles

and tools, and market parties were asked to reduce the number of transport

movements to and from projects. This made it apparent that by making agreements

with suppliers concerning transport over water, carpooling and such like, a reduction

of transport movements can be achieved. The experiences of these pilot projects

were so promising we will continue them.

In 2010, 44% of the tenders (with a procurement volume > € 150,000) included

sustainability aspects. Examples include:

• The re-use of materials in the maintenance of pitching-stone and rubble and brake

works;

• The purchase of electric pumps to replace diesel pumps required to pump water

containing slit;

• The requirements placed on materials and gritting equipment to prevent slipperiness.

We intend to use the experiences of the pilot projects and tender procedures to give

further substance to the sustainable procurement and tendering policy.

Sustainable use of space

Sustainable letting

The target for 2010 was to include a sustainability clause in all new land allocations.

In 2010, 30 projects were started which focused on the redevelopment and allocation

of sites that were being considered for sustainability criteria. Of these 30 projects,

explicit attention was paid to sustainability in the decision-making process in 28

projects as a result of which we achieved a score of 93%. To include the final 7%,

we will, together with the customers, give greater substance to sustainability in

combination with the environmental permit process. The 2010 process-related target

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to include a sustainability clause in all new land allocations was converted into a

content-relevant policy during the year. This policy aims to accommodate customers

that are leaders in sustainability.

As mentioned earlier in paragraph 6.2 (Road), we signed an agreement with the

municipality Alblasserdam and the terminal operator BCTN (Binnenlandse Container

Terminal Nederland B.V) with respect to the operations of the Container Transferium

in Alblasserdam in December 2010. This contract included measures that BCTN will

take to transform the Container Transferium into a silent and very sustainable

terminal operator. This specifically relates to the following measures:

• The lay-out of the terminal will be extremely ecologically sound and will go beyond

the regulative standards; among other things electric cranes, clean fuel, shore-

based power facilities for inland ships and sustainable lighting will be used and extra

measures taken to for protect against sound and light;

• The landside of the terminal will be closed to trucks on Sunday;

• The number of trucks to and from the Container Transferium will be restricted to a

maximum of 180,000 traffic movements per year.

In addition to the sustainable lay out of the transfer point,, the municipality of

Alblasserdam also made agreements with the Minister of Infrastructure and

Environment in respect of modification to cross-roads, safe crossing places for

cyclists, modifications to the junction A15/N3 near Papendrecht and a survey into the

build-up of traffic on the A15. These measures fit in with the ambition of the Port of

Rotterdam Authority to be the most sustainable port of its kind in the world.

Sustainable real estate

Our organisation develops real estate to accomplish area developments. Our method

is to acquire properties at relevant locations and to redevelop these, especially in the

RDM area and the Waalhaven. In 2010, we completed several projects in the RDM

area, the transition area between city and port. In this area urban functions and

functions that support port processes converge. In 2010, a lot of attention was paid

to the possibility of sustainable energy supplies. In accordance with the scheme

Stimulating Sustainable Energy (Stimulering Duurzame Energie SDE), we applied,

under the category sun roofs, for a power capacity of 2,000 kW; unfortunately the

subsidy was not granted to us. In addition, on the RDM terrain we started a feasibility

study for a sustainable energy concept. This study related to a large number of

premises on the RDM Campus, among others the Machinehal (20,000m²).

In July 2008, our organisation co-signed the covenant Sustainable Building for

Rotterdam. In so doing, we promised to make every effort to ensure that the CO2

emissions generated by our building activities were 25% lower than those permitted

under the existing Building Decree 2006. In 2010, together with the Rotterdam

Climate Initiative, we analysed how we can give greater substance to our efforts. It

would now appear we are going to do this by means of the method BREEM-NL, the

Dutch version of an international assessment method for the determination of the

sustainability performance of buildings. The possibility of specific application of this

method to real estate projects will be further investigated in 2011

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Area specific approach soil pollution and groundwater policy

Due to the long term presence of industrial activities, there are areas of soil pollution

in the port of Rotterdam and the industrial complex. The soil pollution can be located

at various depths. With flowing groundwater, pollution can be spread to areas that

are currently clean. Since 1992, we have adopted a policy of improving and

maintaining the soil quality of industrial zones in order to make these zones suitable

for industrial activities. We execute this policy by means of clauses in our ground

lease contracts. Businesses must hand the terrains back in their original condition at

the end of the contract period.

The Port of Rotterdam Authority introduced a combined strategy a few years ago.

This strategy combines the approach to pollution in topsoil and subsoil:

• In accordance with legislation, pollution in the topsoil (globally the upper 4 a 5 meters)

should be removed case-specifically by each business individually.

• The groundwater pollution in the subsoil (the layers underneath the topsoil) may be

tackled on an area basis (across plots). This area-directed approach should prevent

deeper pollution and the spread of pollution outside the borders of the port area. The

area-directed approach allows more time for the natural demolition process in the soil

to break down the pollution (enlarge ‘reactor barrel’)., This will cause the total number

of ‘hot spots’ to decrease and consequently reduce the financial risks for the Port of

Rotterdam Authority, the business and the municipality.

In 2009, we reassessed our 1992 soil policy due to the introduction of the European

Groundwater regulation which placed requirements on the spread of polluted

groundwater. The legislator observed that, entirely apart from the cost and feasibility,

the complete cleaning of all pollution was not immediately necessary in all specific

cases. The legislator therefore introduced area-directed groundwater management

as an alternative.

In 2010, we gave greater substance to groundwater management. In cooperation

with us, and other authorities, the municipality of Rotterdam formulated an

Administrative arrangements (Bestuurlijk Arrangement). This laid down the vision for

area-directed groundwater management in the city and port. In respect of the port,

this was translated into a policy for area-directed ground water management in 2010.

After the policy has been adopted, we are going to monitor and control the

groundwater pollution on an area basis starting in the Botlek and Vondelingenplaat

area. Deltares and Royal Haskoning carried out three surveys which resulted in a

monitoring implementation programme. To support this approach the Ministry of

Infrastructure and Environment has granted EUR 5 million to have this approach

implemented in the Botlek area.

Sustainable transport

The Port of Rotterdam Authority’s sustainable transport ambitions are expressed via

the shift of transport to cleaner modalities (modal shift) on the one hand and by

making the separate modalities sustainable on the other hand. The modal shift

objective for 2035 is to ensure that no more than 35% of containers are transported

to and from the Maasvlakte via roads. This will be accomplished by considerable

utilisation of the modalities rail (see paragraph 6.3, Rail) and inland shipping

(paragraph 6.4 Inland shipping).

In order to enhance the sustainability of the individual modalities the following

projects have been carried out and measures taken:

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Environmental Ship Index (ESI)

An ESI is a certificate that, at a ship’s request, is issued by the World Ports Climate

Initiative (see www.environmentalshipindex.org); ESIs were first issued on 1 January

2011 and were an initiative of the ports of Le Havre, Bremen, Hamburg, Antwerp,

Amsterdam and Rotterdam. The index indicates the environmental performance of

ships with respect to their emission of air pollution (NOx and SOx) and CO2. Ports

and other nautical service providers around the world can use the index to reward

ships and thus stimulate sustainable behaviour in shipping.

Ship owners and operators can sign up to the ESI website. The website was officially

launched during a press conference in London on 2 November. In 2010, we decided

that the cleanest ships that visit Rotterdam will be eligible for an average reduction

of 5% of their harbour dues as of January 2011.

Speed limitations

The Harbour Master has announced a speed limitation for inland ships on three

waterway routes: the Nieuwe Maas near Noordereiland, the Oude Maas between

Beerenplaat and the Botlek bridge, and the Hartelkanaal between the fork of the

Oude Maas and the Harmsen bridge. This measure is related to the zoning plan

Maasvlakte 2. This measure is necessary to limit the emissions at several

bottlenecks as a consequence of Maasvlakte 2. The inland shipping sector did not

agree with this measure and has appealed against it. The appeal procedure will

continue in 2011.

Shore-based power

The Port of Rotterdam Authority invests in shore-based power facilities in order to

improve the air quality in the port. Inland ships that moor at a berth with a shore-

based power facility are not allowed to use their generators to generate electricity.

Instead they have to use the electricity point on the shore. Our aim is to reduce the

local emission of NOx and airborne solid particles and to limit the noise pollution in

the surrounding area.

In April 2010, following the pilot project on shore-based power (Walstroom

Maashaven) we also placed shore-based power on Noordereiland in Rotterdam,

where we realised a total of 55 connections. In 2010, close to the urban area of

Rotterdam, 90 connections were made available for inland ships in, among others,

the Heijsehaven, Waalhaven, Feijenoordkade and Maasboulevard. Currently, 300 of

the 800 inland shipping berths are equipped with shore-based power. Our objective

is to have 600 connections available in the port area in 2012.

The roll-out of shore-based power for inland shipping was accomplished in close

consultation with the sector. In May 2010, the Port of Rotterdam Authority decided to

reward a 7 cent discount (per kWh) on shore-based power for one year long. Despite

this, the purchase of shore-based power is still lagging behind expectations. There

are several reasons for this: technical and operational problems, delays in the

placements at new locations and shippers perceiving it too expensive. Because of

the mandatory use of shore-based power in Rotterdam a lot of inland shippers avoid

Rotterdam in favour of other ports. A project team is currently in consultation with the

inland shipping sector to solve these problems.

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Stena Line in Hoek van Holland will be the first Dutch seaport terminal to use

shore-based power. In so doing, the ocean vessels of this shipping line will get their

electricity from the shore. This investment will considerably improve the air quality in

the direct surrounding of the terminal in Hoek van Holland. Stena Line is adapting

the ocean vessels at its own cost. The on-shore installation has been facilitated by a

contribution from the Port of Rotterdam Authority and co-financing from the Ministry

of Infrastructure and Environment and the Urban Region Rotterdam in collaboration

with the municipality of Rotterdam. The Stena Line ships are expected to start using

shore-based power in the course of 2011

New regulations clean inland shipping

In 2010, the Port of Rotterdam Authority decided to start a temporary fund

stimulating clean inland shipping and sustainable logistics in Rotterdam (Schone

binnenvaart en duurzame logistiek in Rotterdam). The fund provides financial

contributions to the inland shipping sector to reduce fuel consumption and emissions

in the Rotterdam region. On behalf of the Port of Rotterdam Authority, the Expertise

and Innovation Centre for Inland shipping (Expertise en Innovatie Centrum

Binnenvaart EICB) will administer the fund. Applications to the fund can be submitted

by companies, public organisations or combinations of those. Ultimately, the

applications submitted will be considered on the basis of the expected environmental

return per invested euro.

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7.3 Rotterdam Climate InitiativeIntroduction

In 2007, the climate programme ‘Rotterdam Climate Initiative’ (RCI) was founded.

In this climate programme, four parties work together: the municipality of Rotterdam,

the Port of Rotterdam Authority, DCMR Environmental Protection Agency Rijnmond

and the employers’ organisation Deltalinqs. The RCI’s ambitious target is to halve

CO2 emissions in 2025 compared to 1990, anticipate climate change and strength

Rotterdam’s economy.

RCI forms part of the C40 Climate Leadership Group, a group of world cities that

are taking the lead in tackling climate change. Rotterdam was invited to join because

of its extensive port and industrial complex. The C40 Group works closely with the

Clinton Climate Initiative.

Projects

Within the programme of RCI, the Port of Rotterdam Authority focuses on energy

and sustainable mobility. The focus on energy concerns energy efficiency (less CO2

emissions), sustainable energy (replacement CO2-emissions) and capture and

storage (preventing CO2 emissions ending up in the atmosphere). Concrete RCI

projects that we are executing in collaboration with others are:

• The stimulation of the trade of sustainable biomass by the realisation of an exchange

for biomass;

• The facilitation of the production and utilisation of bio fuels;

• The doubling of the wind power capacity in the port area in the period 2010-2020 (by

virtue of a wind energy covenant [Convenant Windenergie] );

• The development of the port as a research station for energy projects (such as ‘Plant

One’ and the RDM Campus);

• The Rotterdam Storage and Capture Demonstration project (Rotterdam Opslag en

Afvang Demonstratieproject), referred to as ROAD, for the capture and storage of CO2

at sea;

• The facilitation of the steam pipe projects for the benefit of heat usage and CO2

transport (“Steam pipe”).

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Besides the efforts of ROAD, there are several other initiatives related to Carbon

Capture & Storage (CCS). OCAP, a joint venture of Linde Gas and Volker Wessels,

will connect the bio-ethanol factory of Abengoa to its CO2 network to greenhouse

horticulture. Furthermore, there are market parties prepared to realise a CO2

shipping terminal, so liquefied carbon dioxide can be transported to empty off-shore

reservoirs by ship. The Port of Rotterdam Authority is carrying out a location study in

this context, whereby safety and synergy are important considerations.

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7.4 DialogueIntroduction

We are conscious of the fact that it is important for our ‘license to operate’ and

‘license to grow’ to have a sustainable dialogue with our environment. Public

support for port activities cannot be taken for granted and we must adopt a pro-

active approach towards our surroundings. During the development studies of

Maasvlakte 2, we noticed that the pro-active involvement of stakeholders was very

important to obtain support. We involved the stakeholders in an early phase of the

project and systematically worked on an on-going and sustainable dialogue. Hereby,

we carefully mapped out important issues related to the project and collectively

searched for solutions. The method used for this project generated collective added

value.

Dialogue with stakeholders

For many years, having a dialogue with stakeholders has been part of our day-to-

day operations.During this dialogue several social, economic and environmental

subjects are discussed. The Port of Rotterdam Authority wants to understand the

view points of stakeholders, but also explain its own. We cannot satisfy everyone,

but we believe that transparency, honesty and respect for different views are the

starting points for maintaining good relationships.

Our stakeholders are people and organisations who influence our activities and who

are influenced by our activities. The Port of Rotterdam Authority has distinguished

the following stakeholder groups: customers, employees, government authorities

(State, province and municipalities), residents, sector associations and social

interest groups. Government authorities have a double role due to their shareholder

interest and their role as legislator.

We enter into dialogue with our stakeholders in several ways. Through face-to-face

consultations, during projects, in partnerships, participations and cooperative

ventures and during lectures, forums and conferences, we come into contact with

several stakeholders. Finally, we held four discussion sessions with businesses in

the port during 2010; the aim being to remain updated on the ongoing businesses of

our customers. The so-called Dialogue with an Eye on the Port (Dial)oog op de

Haven) sessions form a platform through which our Executive Board can present the

latest developments in the port and enter into dialogue with the businesses in the

port.

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In 2010, within the Port of Rotterdam Authority, we introduced a structured technique

to design a sustainable dialogue with relevant stakeholders. It has been

demonstrated that added value is created by giving an insight and overview of our

stakeholders, decision points and interests and by taking concrete steps in our

surroundings. Among other things, implementing the technique involves the

establishment of structural dialogues with our stakeholder groups. Besides good

monitoring and ensuring agreements with stakeholders are complied with, we trained

our staff to conduct dialogues; a skill which project leaders can apply in on-going

projects. In 2010 this skill was applied in several projects. In various sections of the

Report, there are specific examples of dialogues conducted in 2010. See for

example paragraph 5.2 (Maasvlakte 2), 5.3 (Existing port area), 6.2 (Road), 6.3

(Rail) and 6.4 (Inland shipping). In 2011, we intend to maintain this way of working;

dialogue with our environment is part of our working method.

Dialogue with Europe

Ports are heavily influenced by legislation and European Union regulations, such as

maritime and port-related policy, as well as policies relating to energy, climate, the

environment and safety. On the other hand, ports are important to the European

market. Consequently, we not only focus on what Europe means to the port, but also

on what the port means to Europe. In 2009, we put this on the European agenda for

2009-2014 ‘Samen Werken aan Europa’ (Working Together on Europe). This agenda

also determined our European strategy in 2010. In particular, the continuous work

devoted to Trans-European Networks for transport (TEN-T) was a point of attention.

Besides that, the execution of the ‘Communication on Ports Policy’, which was

presented in 2007, played an important role. This mainly concerns giving

substantiation to essential transparency during the allocation of port terrains to

market parties. In addition, it relates to giving substance to the guidelines for state

support and the Natura 2000 policy. Furthermore, an important priority was and still

is our aim to become the ‘Energy Port’ of Europe and to be referred to as such in

European policy.

Our 2010 focus points remain high on the agenda in 2011. Just as we did in 2010,

we are going to address the international role of the port and the importance of the

European hinterland network. We intend to pay special attention to the strengthening

of our role during the development of relevant hinterland corridors.. A central theme

is the hub function of the port of Rotterdam and other ports in relation to a network

of large non-stop freight corridors. The European Commission will elaborate this

concept during the revision of the Trans-European Network for Transport (TEN-T).

In 2011, the revision of TEN-T will be subject to political decision-making in the

European Parliament and the European Council. Based on the decision-making

process large European infra projects will be prioritised.

In 2011, we will similarly devote time and effort to developing the position and role of

Rotterdam in the EU energy policy. This specifically concerns paying attention to the

Energy Strategy for Europe 2011-2020 and its implementation. It also concerns the

Energy Infrastructure Package through which we aim to centralise the hub function

of Rotterdam for the European energy supply. Hereby, the revision of the Trans-

European Network for Energy (TEN-T) will be important. In addition to the existing

CO2 reduction, the point of departure of the EU’s approach is expected to be the

increasing importance of the strategic energy supply.

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In a number of cases, we work with the European Sea Ports Organisation (ESPO).

In respect of the allocation of port terrains, we are working on a programme for

the self-regulation of concessionary agreements (‘Guide of Good Practice for

Concessions’). There will also be a review of the sustainability manifesto

(‘Environmental Code of Practice’). Furthermore, we are working with ESPO

on the design of a chain network for TEN-T and EU decision-making and regulations

in the area of state support, the environment and safety in EU ports.

In November 2010, Victor Schoenmakers, the Port of Rotterdam Authority’s Director

of European & International Affairs, was re-elected chairman of ESPO. The

chairmanship of the ESPO will remain in Rotterdam until November 2012.

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7.5 Innovation Introduction

Issues concerning space, sustainability and accessibility are wide-ranging. Often

conventional solutions are not sufficient. Through research and innovation we aim to

contribute to genuine renewal. In this context, the Port of Rotterdam Authority is

working with universities, companies and other parties to ensure the port will be

able to deal with future challenges intelligently.

In order to stimulate innovation, the Port of Rotterdam Authority determined four

innovation themes, namely sustainable accessibility, space, infrastructure and

navigation. For every innovation theme the accompanying innovation team – several

internal specialists under the supervision of a line manager- indentifies the most

relevant developments for the next ten to twenty years and the challenges the Port

of Rotterdam Authority will face due to these developments. For the most important

challenges, the innovation teams determine whether innovation is necessary and if

so, how this should be accomplished, for example through the initiation of surveys,

studies, exploration or pilot projects. Once or twice a year, every innovation team

presents their findings at board room level. In 2010, three of the four innovation

teams determined their challenges either definitively or in draft form. Shared

alignment between the four teams will probably take place in 2011.

Activities

Concrete innovation activities which took place last year include:

• Bluetooth measurement network: In 2010, the ‘Bluetooth measurement network’ was

rolled out in the port area and several bordering locations. Through this measurement

network, we can keep a close eye on the traffic flow on the roads of the Port of

Rotterdam Authority and the A15 motorway. We can also enlarge our knowledge

concerning the route choices of freight transport to and from the hinterland. The Port

of Rotterdam Authority won an award for this project (out of 78 contributions) during

the National Traffic Management congress.

• Sticky eco-structures: in 2010 we tentatively placed sticky eco-structures (hulas) in

the Scheurhaven and Pistoolhaven. These aim to coarsen smooth slopes and jetties

creating an attractive environment in which mussels and other water organisms can

settle. The next step is to investigate whether the test has affected the water quality,

surge and underwater environment.

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• ‘Plant One’: In May 2010, an industrial test and demonstration facility for innovative,

sustainable process technology (Plant One) became operational. Here new

technologies utilising less energy and raw materials and the application of cleaner

raw materials should be able to prove their usefulness quickly and efficiently. Plant

One will contribute to the objectives of the Rotterdam Climate Initiative to half the CO2

emissions in 2025 compared to 1990. Starting the operation was made possible by

subsidies from the State, province of South-Holland, municipality of Rotterdam, the

Port of Rotterdam Authority and the Rotterdam Climate Initiative.

Collaboration

In addition, in 2010 the following collaborations were entered into with universities,

research institutes and businesses:

• Port Research Center (TU Delft): Within the RPC collaboration with the Delft University

of Technology further depth has been achieved in the field of scientific port-related

research. At the time of writing this report, four PhD students were being supported,

two port professors had been appointed and the selection of a third port professor had

been completed.

• Next Generation Infrastructures (NGI): in 2010 the project organisation Maasvlakte 2

concluded a collaborative agreement with the research programme NGI. The objective

for the next four years is the application of the knowledge developed, within NGI

projects during the last four years. On and around Maasvlakte 2, new concepts can be

demonstrated and tested.

• Erasmus Smart Port: a collaboration was formalised with the Erasmus University

Rotterdam (EUR) in December 2010. The Governing Body of the EUR committed

itself through the appointment of five part time professors in Port Economics. The

Port of Rotterdam Authority, municipality of Rotterdam and Detalinqs have promised

financial support for four years. The first multi-discipline projects have been carried out

successfully, one of which was about the importance of the port of Rotterdam for the

Netherlands (Het belang van de haven van Rotterdam voor de BV Nederland’).

• TNO: With TNO a board level decision was taken to utilise their mutual knowledge and

possibilities. The aim is to apply TNO’s knowledge in the port and open up the port

as an experimental site. As a consequence, the employees of the Port of Rotterdam

Authority and TNO will deal with a number of challenges. The collaboration involves

two intensive workshops: one with respect to the transitions of the chemical cluster

and the other on the intensification of space. Furthermore two ‘field labs’ were started

up on ‘Security’ and the ‘Intensification of space utilisation’.

• General Electric (GE): We signed a collaborative agreement with General Electric

which resulted in three projects: Smart Grid Maasvlakte, shore-based power and an

investigation into CO2-caputure and storage combined with coal gassing. Also, together

with GE, we have had explorative discussions on intelligent street lighting with both

Philips and IBM.

• Dinalog: the Top Logistics Institute (Dutch Institute for Advanced Logistics) started

in Breda in 2010. Dinalog is to become the institute for innovation where the top

of the international business and scientific worlds can share their knowledge and

jointly effect innovative methods and processes. Dinalog resulted from the innovation

programme of the Van Laarhoven Commission. The Port of Rotterdam Authority is

actively involved in two Dinalog projects, the objectives of which are to strengthen the

role of managing junctions. Through the port professors at Erasmus SmartPort, Port

Research Center Delft and Eindhoven University of Technology, we are also involved in

the further development of Dinalog.

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7.6 Labour market and educationIntroduction

As the Port of Rotterdam Authority, we have an interest in the availability of

sufficient qualified personnel for ourselves and our customers, now and in the future.

The direct employment within the port and industrial complex amounted to

approximately 90,000 persons in 2008. Roughly half are employees that work

directly in the area managed by us. The other half are employees in the logistics

sector who fall into the category directly port-related employees In addition, the port

of Rotterdam generates about 55,000 indirect jobs (suppliers, service providers)

outside the area managed by us (source: havenmonitor, 2008).

Labour market exploration

After the crisis in 2009, companies were reticent to hire permanent employees in

2010, despite the recovery of the economy. In the first instance, growth was taken

care of by employing flexible workers through temporary employment agencies.

Through the Labour Market Exploration Mainport Rotterdam, a yearly employment

survey is carried out to assess the need for personnel by port businesses and to

examine how this matches the availability of students entering the labour market on

completion of their studies. Approximately 2,000 people are required each year. In

the long term, we expect a large scarcity in the port labour market. This is partially

due to growing requests for replacements (pensions and natural staff turnover) and

the expansion needed (Maasvlakte 2). However, it is also because few of today’s

youngsters are opting to follow educational courses in the fields of technology,

logistics or maritime, and because we are competing with other economic sectors

for talent while there is a general lack of knowledge about jobs in the port.

Tasks and activities

Because we have an interest in a good fit between education and the labour market

in the port of Rotterdam, we focus on the following four tasks:

• Annual monitoring of the labour market, allowing us to signal trends and threats;

• Contributing to projects (manpower/ Euros), participating in governance (influence/

advice)

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• Investing in the port as an attractive and accessible work environment;

• Lobbying for good regional conditions (house building, public transport, recreation

facilities).

Last year we translated these tasks into the following activities:

• The development of a new port teaching programme for 8,000 students studying at

senior secondary vocational education (VMBO) level, a programme which is being

developed in collaboration with the Educative Information Centre and the Foundation

for LMC Secondary Education

• Lectureship Ideal Port and a broadening of the participating educational institutions,

within and outside the region;

• Designing a new work programme Knowledge Infrastructure Mainport Rotterdam

(KMR), the objective being to improve the fit between the port businesses and

education, increase the number of students entering port education and have the

alignment and coordination of the port labour market carried out by KMR.

• Acting as principal in a study of the aging of the employment force and the

consequences for the port area. What is the age composition of the employment force

in the port sector and how high is the outflow due to retirement age being attained?

What consequences does this have for the HRM policy in the port?

• Monitoring the labour conditions, including new collective labour agreements and

labour unrest, but also advising in social projects such as Revit, in which young people

with no starting qualifications are helped to find a job in the port.

• Analysing the labour market in the port for Port Vision 2030, both the translation

of projected goods into employment figures and the trends and developments that

influence the port’s future labour market.

In 2010, 9 new recruits with either bachelor or master degrees (HBO / WO) started

at the Port of Rotterdam Authority as a result of the so-called Agreement of

Rotterdam (Akkoord van Rotterdam), which was adopted in 2009. Among other

things this agreement, concluded with the municipality of Rotterdam and the

Rotterdam business community, lays down that 10-15 new recruits will be offered a

temporary position within three years. The objective of the “Akkoord van Rotterdam”

is to limit the negative consequences of the economic recession and to improve the

opportunities after the crisis has ended.

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92Report of the Port Authority > Finance



Finance

92 / 177

93Report of the Port Authority > Finance The Port of Rotterdam Authority Annual report 2010

8.1 ResultThe result for 2010 was € 154.2 million. Compared to the result of 2009 (excluding

exceptional items), this represents an increase of € 10.0 million (+ 7%). The main

developments include:

• An increase in operating income (€ 32 million) caused by higher income

from harbour dues and contract income;

• A non-recurring buy-off of the liability for intended small-scale maintenance of

bridges, quay walls and locks (€ 13.9 million);

• an increase in depreciation/amortisation costs (€ 12.3 million);

• an increase of the income from participating interests (€ 6.6 million).

Result development INCREASE 2010 2009 Difference

Amounts x € 1 million in %

Harbour dues 288,2 274,1 14,2

Contract income 249,4 232,5 16,9

Other operating income 13,9 12,9 1,0

Operating income 6,2 551,4 519,4 32,1

Salaries, wages and social charges -101,1 -95,1 -6,0

Operating expenses -102,0 -104,1 2,1

other operating expenses -18,3 -23,1 4,8

Operating expenses before non-recurring buy-off

small-scale maintenance -0,4 -221,4 -222,3 0,9

Non-recurring buy-off small-scale maintenance -13,9 -13,9

Total operating expenses -5,8 -235,3 -222,3 -13,0

Earnings before interest, taxes, depreciation

and amortisation (EBITDA) 6,4 316,1 297,1 19,0

Depreciation and amortisation -113,1 -100,8 -12,3

Income from normal operations (EBIT) 3,4 203,0 196,3 6,7

Financial income and expenses -55,1 -51,8 -3,3

Income from participating interests 6,3 -0,3 6,6

Income excluding exceptional items 7,0 154,2 144,2 10,0

Proceeds from sale participating interest 23,2 -23,2

NET INCOME -7,9 154,2 167,4 -13,2

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The harbour dues increased by € 14.1 million (+ 5.1%) compared to the year 2009.

Due to the increase in handled throughput and an increase in harbour due tariffs

the gross harbour dues increased by € 27.6 million (+ 9.5%). After eliminating the

non-recurring crisis deduction of 7% and other discounts, the net harbour dues

amounted to € 275.3 million. The income from harbour dues (for inland vessels)

( €12.9 million) rose by € 1 million (+8.6%). As a result of indexing and price

revisions, the contract income rose to € 16.9 million (+ 7.3%).

Compared to 2009, the operating expenses excluding the non-recurring buy-off

of small-scale maintenance remained stable. The most important changes were:

• an increase in salaries, wages and social charges (€ 6 million) predominantly caused

by a rise in the company collective agreement (January +0.75%, July +0.5%) and

higher allocation to former personnel due to a change in legislation

• a decrease in the operating costs (€ 2.1 million) and other operating expenses

(€ 4.8 million).

The depreciation expenses rose by € 12.3 million due to a higher level of

investments. Compared to 2009, the balance of financial income and expenses

decreased by € 3.3 million. The Port of Rotterdam Authority utilised the available

facilities to meet the financing requirements. This caused an increase in interest

expenses. In addition, the positive cash balance at the end of 2009 was mainly used

in 2010 to fund investments resulting in a decrease of interest income.

The results from participating interest increased by € 6.6 million compared to 2009.

This was caused by an increase in the operational results of the participations and

the sale of 25% of the shares in Portbase B.V. to the municipality of Amsterdam

(€ 1.5 million). The 2010 book profit amounted to € 23.2 million due to the sale of

a participation.

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8.2 Cash flows

Because of the State contribution there was a reclassification in 2010 from ‘Tangible fixed assets’ to ‘Accounts

receivable’. This item has no cash impact and therefore it is not included in the cash flow statement (for more

details see the annual report 2010).

Compared to 2009 the operational cash flow increased with € 87,2 million to € 223.4

million. The rise was mainly caused by a decrease in working capital (€ 76.7 million)

as a result of less repayment of short-term debt. Other sources of an increase in

the operational cash flow were an increased operating result (+ € 6.7 million) and

increased depreciations and provisions in 2010 (€ 10.9 million). Conversely, we paid

more interest (+ € 7.1 million).

The cash flows from investing activities concerns the volume of investments

corrected for received contributions and subsidies. Compared to 2009, the volume

of investments including capitalised interest rose as a result of the investments in

Maasvlakte 2. This resulted in an increase in the (outgoing) cash flow from investing

activities.

Cash flow overview 2010 2009

Amounts x € 1 million

Earnings (EBIT) 203,0 196,3

Depreciation and movement in provisions 103,0 92,1

Cash flow from ordinary activities 306,0 288,4

Movements in working capital -28,3 -105,0

Cash flow from normal activities 277,7 183,4

interest -54,3 -47,2

Cash flow from operating activities 223,4 136,2

Cash flow from investing activities -394,4 -320,7

Cash flow from financing activities 56,9 355,4

BALANCE CAsh fLOw -114,1 170,9

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The cash flow from financing activities mainly consists of repayments of

subordinated loans and senior debts and the issued debt from the European

Investment Bank amounting to € 180 million.

Gross investments 2010 2009 2008 2007 2006

amounts x € 1 million

Exisitng area 121 170 135 235 231

Maasvlakte 2 324 171 55 17

TOTAL 445 341 190 252 231

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8.3 FinancingAt the end of 2010, the funding of the Port of Rotterdam Authority predominantly

consisted over € 1.7 billion of equity and liabilities. These liabilities consist of issued

(subordinated) loans from the municipality of Rotterdam and (senior) debt from the

financial market.

The financial policy of the Port of Rotterdam Authority is risk-averse. We hedge

financial risks to a significant extent. In order to prevent interest risks on loans with

floating interest rates, we contracted four interest rate swaps. In addition, at the of

end 2008, we contracted a fuel swap by which we have hedged the risk of volatile oil

prices during the construction of Maasvlakte 2. Furthermore, we contracted a Euro/

Dollar foreign currency swap in 2009 to hedge the risk the Port of Rotterdam

Authority faces with respect to a foreign participation.

The ratios interest coverage ratio (ICR)1, Net Debt / EBITDA2 and solvency3 slightly

deteriorated in 2010 compared to 2009. This was mainly caused by the effects of

the equity injection of € 450 million which we received, and which led to a

substantial increase in our liquidity and issued capital. The interest coverage

declined due to a relative increase in interest expenses in 2010 compared to the

slight growth in operating income. Due to higher investments in 2010, the Net debt /

EBITDA ratio increased. These investments led to a lower level of liquid assets at

the end of 2010. The solvency decreased due to the issuing of long term debt

causing the balance sheet total to grow faster than the increase in equity.

Just as in 2009, the ratios amply fulfil the standards imposed by external financiers.

Because of the high levels of investment expenditure, the financial ratios will be

under pressure in the coming years but are expected to continue to fulfil the

agreements with the financiers. The return on capital employed (ROCE4) declined

1 Operating income / balance of interest income and

expense

2 Net interest-bearing debt / income before interest,

depreciation and amortisation

3 Group equity, incl. subordinated loans / balance

sheet total

4 Income from normal operations / average balance

sheet total less short-term debt

Key figures 2010 2009

Interest coverage rate 3.7 4.1

Net Debt / EBITDA 2.9 2.6

Solvency (in %) 63 66

Return on capital employed (in %) 7.0 7.8

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due to stabilised income from normal operations and higher investments in 2010

compared to 2009. This development follows the expectations expressed in 2009

and are largely caused by increasing investments in Maasvlakte 2. The ROCE will

decline further in the coming years because of the high level of investments.

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99The Port of Rotterdam Authority Annual report 2010 Report of the Port Authority > Outlook 2011


Outlook2011

99 / 177

100The Port of Rotterdam Authority Annual report 2010

As stated in the foreword the port of Rotterdam is doing well. The handling of

goods, our market share and our investments, in both Maasvlakte 2 and the exiting

port area are developing successfully. We would like Mainport Rotterdam to maintain

its role as the engine of the national and European economy. Our new Business

Plan for 2011-2015 sets out the direction we wish to take We can build on our

history, knowledge and experience and we have ambitious targets such as improving

accessibility, preserving the port area, enlarging our market share and creating

value for global players in international growth markets.

We are positive in respect of the development of throughput handling in 2011. We

foresee a growth of 2 to 3 percent amounting to 440 million tonnes. This growth is

comparable with the growth rate in the period 2005-2008. The harbour dues are

developing moderately. Our operational and other expenses remain stable. Thanks

to the growth in income and the ‘freeze’ of expenses, we expect an increase in the

net result in 2011.

We continue investing to realise our ambitions. Our investment volumes will further

increase in 2011. For Maasvlakte 2, 2011 will be an important year: the largest

proportion of the total investments takes place in 2011 and the first berths will

become visible.

In the existing port area, we also anticipate developments. Two new, large bio fuel

factories and a liquefied gas terminal will be operational in the port, and two new

coal heated power plants and a gas power plant are under construction. Through

the Rotterdam Climate Initiative, we are cooperating with our partners to make

sustainable growth of the Rotterdam Energy Port feasible. We are working hard on

CO2-capture installations at the existing coal heated power plants, to save energy by

mutually linking companies and increasing the number of wind turbines in the port

of Rotterdam.

In order to improve the accessibility of the port, we are maintaining the same course

in respect of De Verkeersonderneming and the Container Transferium in

Alblasserdam. To realise the rapid construction of the New Western River bank

connection, we are doing our utmost to ensure a decision is taken in 2011 regarding

a preferred route and we hope to be able to remove the potential financial barriers.

In 2011 we will present our new ‘Port Vision 2030’. In the spring, we will enter into

dialogues with customers, authorities, interest groups and residents. We hope to

formulate a substantively good and flexible vision with regard to the desired

development of the port and its surroundings. After the dialogue we will present the

Port Vision 2030 to the Mayor and Aldermen of Rotterdam.

Report of the Port Authority > Outlook 2011

100 / 177

Financial Statements 2010

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The Port of Rotterdam Authority Annual report 2010 106Financial Statements

Content Financial Statements

Balance sheet 107

Statement of income 108

Cash flow statement 109

Notes to the balance sheet and the statement of income 110

Accounting policies for the balance sheet 111

Accounting policies for the statement of income 115

Notes to the balance sheet 117

1 Tangible fixed assets 117

2 Financial fixed assets 118

3 Accounts receivable 118

4 Cash and cash equivalents 118

5 Equity capital 119

6 Provisions 120

7 Long-term debt 121

8 Short-term debt 122

9 Off-balance sheet commitments and contingencies 122

10 Financial instruments 124

Notes to the statement of income 125

11 Total operating income 125

12 Salaries, wages and social charges 125

13 Other operating expenses 126

14 Other notes to the statement of income 126

15 Financial income and expense 126

16 Income from participating interests 127

17 Workforce 127

18 Remuneration of Directors 127

19 Related parties 130

20 Auditors’ expenses 130

Other information 131

21 Appropriation of net income under the Articles of Association 131

22 Proposed appropriation of net income - provisional 131

23 Withdrawals from/deposits into paid-in surplus 132

24 Events after the balance sheet date 132

25 Auditor’s report 132

List of participating interests 133

102 / 177


Balance sheet(before appropriation of income, amounts x € 1,000)

Ref. 31/12/2010 31/12/2009

Assets

fixed assets

Tangible fixed assets 1 2,875,590 2,779,858

Financial fixed assets 2 27,691 24,914

2,903,281 2,804,772

Current assets

Inventories 497 574

Accounts receivable 3 315,391 107,193

Cash and cash equivalents 4 61,085 175,158

376,973 282,925

TOTAL AssETs 3,280,254 3,087,697

Liabilities and shareholders’ equity

shareholders' equity

Subscribed capital stock 5 900,000 900,000

Paid-in surplus 5 391,200 391,200

Statutory reserves 5 4,648 3,435

Other reserves 5 319,785 213,945

Income to be appropriated 5 154,189 136,163

1,769,822 1,644,743

Provisions 6 83,966 80,579

Long term debt 7 1,143,222 1,058,564

short term debt 8 283,244 303,811

TOTAL LIABILITIEs AND

shArEhOLDErs’ EquITy 3,280,254 3,087,697

103 / 177


Statement of income (amounts x m 1.000)

Ref. 2010 2009

Net turnover 11 537,539 506,510

Other operating income 11 13,857 12,921

Total operating income 551,396 519,431

Salaries, wages and social charges 12 101,145 95,062

Depreciation on tangible fixed assets 1 113,057 100,813

Other operating expenses 13 134,193 127,242

Net operating expenses 348,395 323,117

Income from normal operations 203,001 196,314

Financial income and expenses 15 -55,087 -51,827

Income from participating interests 16 6,275 22,941

NET INCOME 154,189 167,428

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Cash flow statement (amounts x m 1.000)

Ref. 2010 2009

Income from normal operations 203,001 196,314

Adjustments for:

Amortisation and depreciation 1 113,057 100,813

Changes in provisions 39 358

Withdrawal of equalisation groud-lease buy-off -10,108 -9,786

Impairment of financial fixed assets 2 27 708

103,015 92,093

Changes in working capital

Accounts receivable 3 -10,612 -383

Inventories 77 -42

Short term debt -17,777 -104,550

-28,312 -104,975

Cash flow from ordinary activities 277,704 183,432

Interest income 5,546 3,318

Interest expense -59,868 -50,548

-54,322 -47,230

Cash flow from operating activities 223,382 136,202

Investments

Tangible fixed assets -401,295 -344,901

Loans granted 2 -335 -1,012

-401,630 -345,913

Disposals 7,257 25,245

Cash flow from investing activities -394,373 -320,668

Cash flow before financing -170,991 -184,466

Repayments on long term debt -107,166 -102,579

Loans contracted 193,918 61,081

Paid-up capital 0 450,000

Dividend 5 -29,835 -53,113

Cash flow from financing activities 56,918 355,389

NET CAsh fLOw -114,073 170,923

Cash balance at beginning of year 4 175,158 4,235

Cash balance at end of year 4 61,085 175,158

MOvEMENT IN CAsh -114,073 170,923

105 / 177


Notes to the balance sheet and the statement of income

General

Under the provisions of Section 153 of Book 2 of the Dutch Civil Code, on 20 July

2005 the Port of Rotterdam Authority filed a statement with the Trade Register that

since 31 December 2004 it had complied with the requirements laid down by law for

‘large’ companies. This means that as from 21 July 2008 the Port of Rotterdam

Authority has been a statutory two-tier company. The Articles of Association already

take account of this statutory two-tier Board system.

The shares are held by the Municipality of Rotterdam (70 5/6%) and the State of the

Netherlands (29 1/6 %).

The financial statements have been drawn up in accordance with the statutory

provisions of Part 9 of Book 2 of the Dutch Civil Code and the firm pronouncements

in the Dutch Accounting Standards as issued by the Dutch Accounting Standards

Board [Raad voor de Jaarverslaggeving].

With effect from 2009, the Port of Rotterdam Authority has made use of the

exemption from the obligation to consolidate the companies involved in the

consolidation whose joint significance is negligible to the company as a whole (RJ

217.304).

For an overview of participating interests, reference is made to the List of

Participating Interests.

The cash flow statement has been prepared using the indirect method. The cash

disclosed in the statement consists of cash and cash equivalents. Interest received

and paid, as well as dividends received are shown under the cash flow from

operating activities. Dividends paid are shown under the cash flow from financing

activities.

There were no system changes in 2010.

Offsetting of receivables and debt only takes place if it is legally possible and it is the

explicit intention to settle the separate items as such.

Accounting policies

Shareholders

Exemption from consolidation obligation

Notes to the cash flow statement

System changes

Two-tier board system

Offsetting

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Accounting policies for the balance sheet General

The financial statements have been prepared on an historical cost basis of

accounting. Unless a different valuation principle is stated, assets and liabilities are

stated at nominal value. Notes to the line items of the balance sheet, statement of

income and cash flow statement have been numbered in the financial statements.

The amortised cost price is calculated using the effective interest method less any

deductions (direct or through forming a provision for exceptional impairment or bad

debts). The calculation also takes account of share premiums or discounts at the

moment of acquisition and transaction costs and fees that form an integral part of

the effective interest rate.

On each balance sheet date, the Port Authority tests whether there are any indications

of an asset being subject to impairment. If there are such indications, the realisable

value of the asset is determined. If it is not possible to determine the realisable value

of an individual asset, the recoverable amount of the cash generating unit to which the

asset belongs is identified. An asset is subject to impairment if its carrying amount is

higher than its recoverable value; the recoverable value is the higher of realisable

value and present value. Any impairment loss is directly taken to the statement of

income.

When applying the policies and rules for drawing up the financial statements, the

management of the Port of Rotterdam Authority will form certain opinions and

estimates. The main opinions and estimates, including the associated assumptions,

are:

Depreciation and amortisation

The depreciation period is based on the expected economic life of the asset. The

depreciation periods used are set out in Note 1: Tangible fixed assets.

Provision for employee benefit plans

The estimated elements primarily relate to the interest percentages used, redundancy,

disability, mortality and retirement risk, as well as inflation assumptions and career

tables.

Provision for soil clean-up

The calculation is based on present clean-up costs, the time of clean-up (in the future),

price indexation and expected effects of developments on clean-up costs.

Assets

Tangible fixed assets are stated at acquisition or manufacturing price, inclusive of

directly attributable costs, such as construction period interest, less straight-line

depreciation based on estimated useful life, or lower present value. The manufacturing

price consists of the costs of acquisition of raw materials and consumables and costs

directly attributable to the manufacturing process, including installation costs.

Preliminary expenses for investment projects are capitalised from the moment it is

certain that these projects will actually be carried out. Land and tangible fixed assets

under construction are not depreciated.

Opinions and estimates

Amortised cost price

Exceptional fixed asset impairment

Tangible fixed assets

107 / 177


Depreciation is on a straight-line basis, and based on the expected economic life,

taking account of the residual value. If the expectation in respect of the depreciation

method, useful life and/or residual value is subject to change over time, this will be

shown as a change in the accounting estimate.

Grants and contributions on investments will be deducted from the acquisition or

manufacturing price of the asset to which the grants relate.

Group companies and other participating interests in which the Port Authority may

exercise significant influence on business and financial policy are carried at net asset

value. Significant influence is assumed at any rate to be present if the rate of

participation is more than 20% of the voting rights attached to the shares.

The net asset value is calculated using the policies applied in these financial

statements. For participating interests about which insufficient information is available

for adjustment to these policies, the valuation principles of the participating interest

concerned are followed.

If the participating interest’s net asset value is negative, it is stated at nil. If and in so

far as the Port of Rotterdam Authority fully or partially guarantees the debts of the

participating interest or has the firm intention to enable the participating interest to pay

its debts, a provision is formed.

The share in the result of investments in participations is included in the statement of

income.

If and in so far as the Port of Rotterdam Authority cannot effect payment of the income

to itself without restrictions, the not distributed income will be taken to a statutory

reserve

Participating interests acquired are initially valued at the fair value of the identifiable

assets and liabilities at the moment of acquisition. The difference between the

acquisition price and the fair value of the identifiable assets and liabilities will be

capitalised as goodwill and disclosed under intangible fixed assets. Any subsequent

valuation is based on the net asset value thus determined.

Participating interests in which no significant influence can be exercised are stated at

the lower of acquisition price and recoverable value. Loans included under financial

fixed assets are stated at amortised cost price after the initial accounting. Income and

expenditure is shown in the statement of income by means of the amortisation

process.

The line item ‘other securities’ consists entirely of bonds. In principle, these are to be

retained until the date of maturity. These bonds are valued at amortised cost price.

Income and expenditure will be credited or debited to the statement of income by

means of the amortisation process.

Inventories mainly concern spare parts and consumables for vessels and technical

systems. Inventories are stated at the lower of the acquisition price and realizable

value.

Financial fixed assets

Inventories

108 / 177


Accounts receivable

Cash and cash equivalents

Trade receivables are stated at face value. A provision is deducted for potential bad

debts.

Cash and cash equivalents represent cash in hand, bank balances and deposits with

terms of less than twelve months. Current account overdrafts at banks are included

under debts to credit institutions under the heading ‘Short term debt’.

Liabilities

Provisions are formed for legally enforceable or constructive obligations existing on the

balance sheet date, the settlement of which is likely to require an outflow of funds

whose extent can be reliably estimated. If applicable, provisions are recognised at

their present value.

The new standard Dutch GAAP guideline 271 presumes the ‘commitment approach’.

This means that legal entities have to form a provision if there is a possibility of

existing additional pension commitments that are not covered by current provisions.

The Port of Rotterdam Authority has a defined benefit plan. This means that the Port

of Rotterdam Authority pays premiums to its pension provider, and the pension

provider is then responsible at its own risk for the pension commitments to the

employees of the Port of Rotterdam Authority. Apart from the payment of premiums,

under the terms of this pension plan the Port of Rotterdam Authority is not obliged to

pay additional contributions. Therefore, no provision has been formed for this.

However, provisions have been formed for future payments relating to early retirement,

health insurance costs and other deferred remunerations. Each year the liabilities

relating to these employee benefit plans are calculated by independent actuaries. The

value of the liability is calculated by converting the estimated future cash flows into

cash, taking account of expected salary developments and mortality and disability

risks, assuming interest rates that apply to high-quality corporate bonds.

Valuation is done by best estimate.

Ground lease buy-off

Leaseholders may buy off their ground leases at present value. The amounts thus

received are included under long term debt. Each year interest is accrued on the

outstanding balance and the proceeds for the year concerned are added to the

contract income.

The policy of the Port of Rotterdam Authority is to cover a part of the interest,

currency and product price risks effectively. If derivatives are used in this respect, the

Port of Rotterdam Authority applies hedge accounting. According to the cost-price

hedge accounting method, the derivatives are stated at cost price. If the hedge is

effective, value changes remain off the balance sheet.

Provisions

Long term debt

Pensions and other employee benefit plans

Derivatives and hedge accounting

109 / 177


Financial lease

Assets financed through financial leases are capitalised in the balance sheet from the

moment at which the lease is concluded, at the lower of the fair value of the asset and

the present value of the minimum lease instalments. The lease instalments payable

are broken down into repayment and interest components, on an annuity basis and

based on a fixed interest rate. The lease commitments are recognised under long term

debt exclusive of interest. The interest component, as part of the lease instalments, is

taken to the statement of income. The relevant assets are depreciated over their

remaining economic lives.

Operating lease

Liabilities resulting from operating leases are included in the statement of income on a

straight-line basis, over the term of the respective contract. With effect from 2011, the

obligations will be included in the commitments and contingencies not included in the

balance sheet.

Leasing

110 / 177


Accounting policies for the statement of income

Accounting policies for the statement of income

Net income represents the income from operations and services rendered, less

discounts and suchlike and taxes levied on the turnover. This income mainly concerns

harbour dues and income from sites let to third parties.

Costs

Costs are determined on an historical basis and allocated to the year to which they

relate. (Foreseeable) liabilities and potential losses which originate from before the

end of the financial year are taken into account if they have become known before

drafting the financial statements, and the conditions for including provisions are

otherwise met.

Employee benefits

Salaries, wages and social charges are taken to the statement of income by virtue of

the conditions of employment.

The Port of Rotterdam Authority pays for the defined benefit plan, which according to

Standard 271 may be recognised as a defined-contribution plan, contributions to

pension funds and insurance companies. The contributions are recognised as

personnel costs when these are payable. Contributions paid in advance are included

as prepayments and accrued income if they lead to a repayment or a reduction in

future payments.

Allocations to the provision for employee benefit plans are recognised as personnel

costs.

Government grants

Operating grants are recognised as income in the statement of income in the year in

which the subsidised costs were incurred, income was lost or a subsidised operating

deficit occurred and it is likely that it will be received and the Port of Rotterdam

Authority can demonstrate the conditions for receipt.

Grants for additions to tangible fixed assets are deducted from the asset concerned

and taken to the statement of income as part of depreciation.

Benefits paid periodically

Pensions and other employee benefit plans

111 / 177


Depreciation

Depreciation on tangible fixed assets is based on the acquisition or manufacturing

price. There is no depreciation on sites and on tangible fixed assets under

construction. Depreciation is on a straight-line basis, based on the estimated

economic life (see also ‘Accounting policies for the balance sheet - Tangible fixed

assets’).

Financial income and expense

Interest income and expense are recognised on a pro rata basis, taking account of

the effective interest rate of the assets and liabilities concerned.

Interest charges are capitalised for qualifying assets during the period of their

manufacture. The interest to be capitalised is calculated based on the internally

weighted average interest rate of the long term loans of the Port of Rotterdam

Authority adjusted for the loan capital/total capital ratio. If a project is being financed,

the interest to be capitalised is calculated based on the interest rate applicable to

this financing.

Interest charges are added to provisions and long term debts, the balance sheet

value of which is determined based on a cash value calculation.

Corporation tax

All shares in the Port of Rotterdam Authority are held by legal entities under public

law. This means that, under Section 2, paragraphs 3 and 7 of the Corporation Tax

Act, the (current) activities of the Port of Rotterdam Authority are exempt from

corporation tax.

Interest income and expense

Capitalisation of interest charges

Interest charges entered as liabilities

112 / 177


Notes to the balance sheet

(amounts X € 1,000)

* This item has no cash impact and therefore it is not included in the cash flow statement.

During the financial year, an amount of € 12 million in construction period interest was

capitalised for tangible fixed assets under construction.

In accordance with the development agreement ‘Land reclamation’ the State will

contribute € 726 million nominal in the construction costs of Maasvlakte 2. The

expenditure up to 31 December 2010 (€ 198 million) attributed to the said contribution

has been reclassified as ‘Accounts receivable’.

As the conditions of article 3 of the development agreement were fulfilled in 2010, the

requisition is included (all public-legal involvement was obtained, land reclamation was

actually started and a contiguous construction process could be assumed).

For three properties a change in estimate took place. Because of a future demolition,

the depreciation period for the residual carrying amount was changed to 4 years. The

change in estimate has a yearly result effect of € 2.8 million.

Beneficial ownership of the port sites was transferred to the Port of Rotterdam

Authority at the time of the Company’s incorporation. The Municipality of Rotterdam

holds legal title to these sites, on which a ground lease was established for the benefit

of the Port of Rotterdam Authority. At the end of 2010 this had been realised for about

99% of the total area, 30% of which was subject to a suspensive condition.

1 Tangible fixed assets Land

and infraplus

public

infrastructure

port basins and

waterways

quay walls,

slopes, jetties

and other

mooring

facilities

Tangible

fixed assets

under

construction

Equipment

and

otherassets

TOTAL

31 December 2009

Cost 1,042,207 565,145 931,672 428,073 326,041 3,293,138

Accumulated depreciation -92,012 -137,601 -187,964 - -95,703 -513,280

CArryINg AMOuNT 950,195 427,544 743,708 428,073 230,338 2,779,858

Movements in 2010

Investments - - - 413,328 - 413,328

Disposals -145 - - - -6,808 -6,953

State contribution Maasvlakte 2* - -29,724 - -167,862 - -197,586

Depreciations -22,275 -25,299 -37,988 - -27,495 -113,057

Commissioning 66,375 14,674 63,383 -215,784 71,352 -

43,955 -40,349 25,395 29,682 37,049 95,732

31 December 2010

Cost 1,108,437 550,095 995,055 457,755 387,408 3,498,750

Accumulated depreciation -114,287 -162,900 -225,952 - -120,021 -623,160

CArryINg AMOuNT 994,150 387,195 769,103 457,755 267,387 2,875,590

Depreciation periods in years up to 30 years 25 to 50 years 25 to 40 years n.v.t. 5 to 50 years

113 / 177



For an overview of participating interests, reference is made to the List of Participa-

ting Interests.

2 Financial fixed assets Participations Other securities Other long term

receivables

TOTAL

31 December 2009

CArryINg AMOuNT 18,200 4,390 2,324 24,914

Movements 2010

Loans granted - - 335 335

Instalments on loans - - -304 -304

Provisions releases - - 164 164

Income from participating interests 6,275 - - 6,275

Exchange result 724 - - 724

Provisions for bad debts - - -27 -27

Reclassification short term receivables - -4,390 - -4,390

TOTAL MOvEMENTS 6,999 -4,390 168 2,777

31 December 2010

CArryINg AMOuNT 25,199 0 2,492 27,691


The main items included in prepayments and accrued income are items yet to be

invoiced and VAT yet to be received.

A corporate bond portfolio was included in the other short term receivables for a

carrying amount of € 4.4 million. The market value of this portfolio as at 31

December 2010 was € 4.5 million. The corporate bond portfolio was settled in

January 2011.


Cash is at the Port of Rotterdam Authority’s free disposal.

3 Accounts receivable

Prepayments and accrued income

4 Cash and cash equivalents

31/12/2010 31/12/2009

Accounts receivable from the Municipality of Rotterdam 415 2,374

State contribution (Maasvlakte 2) 197,586 -

Trade receivables 67,492 76,121

Other short term receivables 15,027 8,382

Prepayments and accrued income 34,871 20,316

TOTAL 315,391 107,193

31/12/2010 31/12/2009

Cash (current account) 61,085 175,158

114 / 177


The Port of Rotterdam Authority’s guarantee capital or liability capital comprises the

following:


The summary of movements in equity capital in 2010 is as follows:


The Company’s authorised capital totals € 3 billion, and is divided into three billion

consecutively numbered ordinary shares of € 1 par value each.

The subscribed and paid-up equity capital totalled € 900 million at the end of 2010

and is divided into 900 million ordinary shares of € 1 par value each.

The balance of statutory reserves relates to the reserve for participating interests

and the exchange rate reserve for participating interests.

The total result of the Port of Rotterdam Authority is equal to the result for the

financial year.

5 Equity capital

31/12/2010 31/12/2009

Shareholders' equity 1,769,822 1,644,743

Subordinated loans from the Municipality of Rotterdam 312,125 404,525

TOTAL guArANTEE CAPITAL 2,081,947 2,049,268

Summary of movements

Equity capital

Statutory reserves

Total income

Subscribed

capital stock

Paid-in surplus Statutory

reserves

Other reserves Income to be

appropriated

TOTAL

31 december 2009 900,000 391,200 3,435 213,945 136,163 1,644,743

Net income for the year - - - - 154,189 154,189

Final dividend paid 2009 - - - - -29,834 -29,834

Appropriation of net income 2009 - - - 106,329 -106,329 -

Exchange rate reserve - - 724 - - 724

Contribution to statutory reserves - - 489 -489 - -

TOTAL MOvEMENTS 0 0 1,213 105,840 18,026 125,079

31 december 2010 900,000 391,200 4,648 319,785 154,189 1,769,822

115 / 177



Provisions were formed for obligations to current and former personnel in relation to

early retirement, future contributions to health insurance premiums and other

deferred employee remuneration.

Since 1/1/2009 the plan concerning job-related early retirement has changed. As a

result of this change the costs for the employer increased, which caused a higher

allocation in 2010 (€ 4.5 million).

This is a long-term provision.


An amount of € 27.2 million for the provision for future soil clean-up concerns residual

pollution accepted by the Port of Rotterdam Authority upon termination of the lease of

sites. This will largely be covered from the lump-sum payouts received in relation to

this. Annual interest is added to this sum. The remaining € 5.7 million concerns the

cash value of the expected clean-up expense on sites where actual clean-up has been

agreed with the competent authorities.

No provision is included in the financial statements for soil pollution at the other sites,

which may have to be cleaned up in the very long term. Due to continuing

technological advances as well as amendments to legislation and regulations, the

amount to be spent on associated future clean-up cannot be estimated with a high

degree of certainty at present. Furthermore, the standard contract provisions of the

Port of Rotterdam Authority applying to the lease or issue under lease or sublease

stipulate that, when the contract is terminated, the soil must be delivered to the Port of

Rotterdam Authority in its original condition. Consequently, the expectation is that it will

be possible to recover a large portion of the future clean-up expenses from the polluter.

This is a long term provision.

6 Provisions

Provisions for employee benefit plans

Provisions for future soil clean-up

Provision employee

benefit plans

Provision future soil

clean-up

Provision allegedly

furnished guarantees

TOTAL

31 december 2009 23,761 32,342 24,476 80,579

Allocations 5,500 489 - 5,989

Withdrawals -4,627 -1,159 - -5,786

Releases - - - 0

Interest allocated 1,044 1,280 860 3,184

31 december 2010 25,678 32,952 25,336 83,966

31/12/2010 31/12/2009

Early retirement 22,413 19,534

Health insurance contribution after retirement 1,995 2,965

Other deferred remunerations 1,270 1,262

TOTAL 25,678 23,761

116 / 177


On 24 January 2007, the District Court of Rotterdam gave its judgment in proceedings

between Commerz (Nederland) NV and the Port of Rotterdam Authority, denying the

claims of Commerz.

Commerz lodged an appeal against this judgment. On 1 February 2011, the court of

appeal in The Hague ratified the judgement of the district court in Rotterdam. The

expectation is that Commerz bank will give notice to appeal. Because of this, the

provision formed for this purpose was maintained. The Investment Agreement

concluded on 2 September 2005 between the State of the Netherlands, the

Municipality of Rotterdam and the Port of Rotterdam Authority lays down that any

future release of the provision will accrue to the Municipality by means of an additional

dividend. In 2010, only interest was added to the provision for guarantees which were

allegedly furnished.

This is a long term provision.


These loans are subordinated to all of the Port Authority’s other existing and future

creditors. Annual interest on these loans is 5.72%.

Annual interest rates on these loans range between 5.03% and 6.14%.

This represents the value of customer compensation for ground lease buy-offs.

The Port of Rotterdam Authority leases sites and a vessel for representative

purposes.

Of the total loans taken out with the European Investment Bank (€ 456 million) more

than 30% are on a fixed-interest basis (ranging between 4.65% and 4.96%). The

remaining loans have been taken out at a variable interest rates, based on the

3-month EURIBOR.

The Port of Rotterdam Authority agreed to buy off future small maintenance costs

related to a number of objects. The payment will take place in 7 periods.

Provision for guarantees allegedly

furnished

Subordinated loans from the Municipality

of Rotterdam

Other loans from the Municipality

of Rotterdam

Ground lease buy-off

Financial lease commitments

Debts to credit institutions

Maintenance cost buy-off

7 Long term debt31/12/2010 31/12/2009

Term Term Term TOTAAL TOTAAl

< 1 year 1-5 years > 5 years

Subordinated loans from the

Municipality of Rotterdam 92,400 219,725 - 312,125 404,525

Other loans from the Municipality of Rotterdam 8,043 128,914 55,811 192,768 200,338

Ground lease buy-off 9,800 49,000 94,919 153,719 154,807

Financial lease commitments 315 2,060 12,325 14,700 14,987

Debts to credit institutions 7,676 74,138 373,678 455,492 282,907

Maintenance cost buy-off 1,988 9,940 1,990 13,918

Other long term debt - - 500 500 1,000

TOTAL 120,222 483,777 539,223 1,143,222 1,058,564

117 / 177


In January 2008 credit facilities were taken out with the European Investment Bank,

Bank Nederlandse Gemeenten, ING, Rabo and Fortis for an amount of € 2 billion.

They will be used to finance investments in the existing port area as well as the

construction of the first part of Maasvlakte 2. The annual interest rate is based on

the 3-month EURIBOR. This interest payment has been partly swapped for a fixed

interest rate of an average of 4.8%. No security has been provided for the long term

debt facilities.

There is an agreement with external financiers about a number of financial ratios.

Just as in 2009, the ratios amply fulfil the agreed standards.

8 Short term debt


The Port of Rotterdam Authority has a short term debt facility of € 200 million,

for which no security has been provided.

Contingent agreements have been concluded with several market players about

future capital expenditure such as investments and restructuring operations, etc.

These agreements concern payments to be made (€ 6.7 million) and received (€ 1.7

million).

The Port of Rotterdam Authority also stands surety for a loan (€ 0.7 million).

Guarantees have been issued for a number of group companies and participating

interests in respect of the fulfilment of lease, rental, repayment and interest

obligations towards third parties up to an amount of € 10.3 million. The Company

guarantees a minimum yield of a participating interest for the co-shareholder. In

addition, the Port of Rotterdam Authority guarantees a residual value of installations

(€ 1.4 million).The Port of Rotterdam Authority has issued a letter of comfort to a

bank for a maximum of € 4.4 million.

Last year, the Port of Rotterdam Authority and the municipality reached a conditional

agreement for cooperation in relation to seaport Dordrecht. From 1 July 2011, the

Port of Rotterdam Authority will develop, maintain and exploit the seaport for its own

account. The total area related to the seaport Dordrecht amounts 290 ha of which

approximately 50 ha is let out and 10 ha free to let out. To acquire the main ground

lease, the Port of Rotterdam Authority will pay an initial yearly fee of approximately

€ 1.8 million. During the first few years the compensation will gradually increase to

around € 2.7 million by 2016 after which it will be indexed yearly. Further on, the

9 Off-balance sheet commitments and

contingencies

Debt facilities

Contingent schemes

Long term debt facilities

31/12/2010 31/12/2009

Debt to credit institutions 0 35,755

Debts to the Municipality of Rotterdam and State 17,009 20,469

Trade payables 45,850 42,763

Taxes and social security charges 4,946 4,023

Pension charges 1,338 1,312

Holiday pay and holiday entitlements not taken 7,448 8,110

Received reservation fees Maasvlakte 2 103,052 72,431

Advance on rents, ground lease and quay fees 53,790 43,095

Advance on investment grant for Trafic Guidance System 8,831 15,371

Other debt, accruals and deferred income 40,980 60,482

TOTAL 283,244 303,811

118 / 177


Port of Rotterdam Authority will invest in the first 15 years of the cooperation at least

€ 10 million in port related projects on condition that there is sufficient return on

investment.

The Port of Rotterdam Authority expects to invest € 2 billion in Maasvlakte 2 until 2020.

The State grants the Port of Rotterdam Authority a contribution of € 726 million for

realising Maasvlakte 2.This contribution is partially to compensate the construction

costs of the solid sea-defence and public infrastructure. At the end of 2010,

€ 198 million of the contribution received was classified as ‘Accounts receivable’.

The contribution will be received in the period 2011-2012.

Phase 1 of this investment (€ 1.1 billion) has been contracted to the PUMA

consortium, of which € 724 million is outstanding obligations. The Port of Rotterdam

Authority also expects to invest € 2 billion in the existing port area until 2020. € 155

million is already contracted. Of this, € 101 million is in outstanding obligations.

The Port of Rotterdam Authority has committed itself for the coming years to a

maximum of € 62 million in infra-plus investments, in respect of which the future

lessees of the infrastructure can determine the moment of investment.

The multi-year financial obligations towards market players totalled € 4.4 million.

As part of the privatisation of the Rotterdam Municipal Port Authority as the Port of

Rotterdam Authority [Havenbedrijf Rotterdam N.V.], the Municipality and the Port

Authority agreed that the Port Authority would remain responsible for and bear the

costs of the implementation of the Existing Rotterdam Area (BRG) quality of life

projects until 2020 (average € 2.7 million a year). The outstanding obligation at the end

of 2010 was € 22.8 million.

An agreement has been concluded with the Municipality Rotterdam about buying off

the obligation to manage and maintain objects such as bridges and locks in the urban

area and port and industrial area (€ 13.5 million). Next to it, an agreement was made

that the Port of Rotterdam Authority will receive a contribution of the Municipality

Rotterdam to compensate the costs made for maintaining two objects (€ 2,9 million).

Long term liabilities (yearly € 28.5 million) have been assumed for the rent of office

buildings, operating leases for vehicles and maintenance of the port area.

Furthermore, the maintenance of the Traffic Guidance System [Verkeers Begeleidend

Systeem, ‘VBS’] and the supply of water to inland shipping was laid down in contracts.

• The Port of Rotterdam Authority has concluded a lease for an office building until 2015

with a renewal option. The annual rental charges total approximately € 8.4 million.

• For vehicles, five-year operational leases are usually concluded, with a total annual

charge of approximately € 2.7 million.

• Maintenance contracts were concluded with several suppliers for the maintenance

of the port area. These contracts concern such activities as dredging work and the

maintenance of banks, slopes, roads and outdoor spaces. The annual cost of these is

€ 13 million.

• Until 2013, € 0.9 million will be spent yearly to combat oil spills in the port of

Rotterdam.

• For the maintenance of the Traffic Guidance System and the supply of drinking water,

€ 1.7 million and € 0.7 million respectively have been agreed. The same applies for

the maintenance and management of shore-based power boxes that supply power for

inland shipping. This is outsourced until 2013 (€ 0.4 million).

• In respect of Maasvlakte 2, a contract has been concluded to develop, host and

manage an online contract and document management system.

This contract maintains until 2012 with annual costs of approximate € 0.7 million.

Multi-year financial obligations

119 / 177


A number of companies backed by several oil companies are disputing the tariffs

charged by the Port of Rotterdam Authority for harbour dues for oil tankers. This

resulted in fiscal proceedings (for the seaport dues collected up to October 1997) and

civil proceedings (for the seaport dues charged after October 1997) between the Port

of Rotterdam Authority and the companies referred to above. Based on the interim

judgments, rendered in both the fiscal and civil proceedings, it was decided not to form

a provision. In a final verdict the court in The Hague rejected in 2010 the claim in the

civil proceeding of the companies referred to above. Notice to appeal against this

order has been given to the previously mentioned companies. The investment

contract concluded on 2 September 2005 between the State of the Netherlands, the

Municipality of Rotterdam and the Port of Rotterdam Authority contains an indemnity

clause in respect of any repayment of seaport dues. This will come into effect if

the amount to be repaid is greater than € 50 million and (individually) not less than

€ 5 million.

General

The explanations contained in these notes provide information that is useful in

estimating the extent of risks in connection with the financial instruments that both

included in and excluded from the balance sheet.

Unlike derivatives, the financial instruments of the Port of Rotterdam Authority serve to

finance the operational activities of the Port of Rotterdam Authority or ensue directly

from these activities. Next to it the port of Rotterdam Authority makes use of currency

and interest swaps in order to cover currency and interest risks. Frameworks,

guidelines and rules are mentioned in the treasury articles of association. The market

value of the derivatives at the end of 2010 was approximately - €165.8 million (2009: -

€ 103.1 million). This concerns the calculated present value of the difference between

the covered fixed interest and the (variable) market interest. The port of Rotterdam

Authority applies the cost-price hedge accounting method. Therefore, these financial

instruments remain off the balance sheet.

The main financial risks are:

The Port of Rotterdam Authority incurs interest risk on the interest-bearing receivables

(particularly under financial fixed assets), cash and cash equivalents and interest-

bearing long term and short term debt (including lease buy-offs and debts to credit

institutions). For receivables and debts with variable interest rate agreements, the

Port of Rotterdam Authority incurs risk in respect of future cash flows. Concerning

fixed-interest receivables and debts, the Port of Rotterdam Authority incurs risk on

the market value. Concerning debts with variable interest rate agreements, a number

of financial derivatives relating to the interest risk have been contracted.

The Port of Rotterdam Authority incurs currency risk on investment activities as part

of an international participation. To cover this currency risk, a currency swap has been

concluded for the expected total financing cash flow.

The Port of Rotterdam Authority has no significant concentration of counterparty risks.

Based on the agreements made with the contractor for the construction of the first

phase of the Maasvlakte 2 project, the Port of Rotterdam Authority incurs a particular

risk with regard to movements in oil prices. To cover this risk, a fuel swap has been

concluded for the expected cash flow during the period until the end of September

2013.

Currency risk

Interest risk

Counterparty risk

Commodity risk

10 Financial instruments

Pending claims and disputes

120 / 177


Notes to the statement of income


The item ‘other operating income’ largely concerns a contribution to the Traffic

Guidance System.


The rise in 2010 of salaries and wages was partly caused by increases under the

collective agreement (CAO) and periodic increases. There was also a rise in the

average number of employees through the filling of existing full-time equivalent

vacancies. The increase in pension charges is largely caused by increases in

early-retirement contributions.

11 Total operating income

12 Salaries, wages and social charges

2010 2009

Harbour dues (sea-going vessels) 275,298 262,203

Harbour dues (inland vessels) 12,863 11,847

Rent, ground lease, quay fees 249,378 232,460

Total net turnover 537,539 506,510

Other operating income 13,857 12,921

TOTAL 551,396 519,431

2010 2009

Salaries and wages 77,651 76,219

Pension charges and redundancy pay 16,018 11,187

Other social security charges 5,466 5,646

Other personnel expenses 2,010 2,010

TOTAL 101,145 95,062

121 / 177



The item ‘operating expenses’ includes the regular charges for vessel guidance

services, development, management and maintenance of the port infrastructure,

management of equipment and nautical information systems, information and

communication technology, customer acquisition and account management,

and overhead expenses.

Other operating expenses concern contributions to quality of life projects,

restructuring costs, development costs, programme costs and the formation

of a provision for bad debts. Other operating costs include the buy-off of future

maintenance costs. This is related to a transaction with a shareholder which took

place under market conform circumstances.

During the financial year € 2.4 million (2009: € 2.5 million) in lease instalments was

recognised in the statement of income for operating leases for vehicles.

Research and development costs included in the income statement for 2010 totalled

€ 4.5 million (2009: € 5 million).


The capitalised interest on the investment expense for the Euromax project is equal

to the 3-month EURIBOR plus a surcharge of 113 base points.

For the other projects, the rate used for the construction period interest has been

reduced from 2.4% in 2009 to 2.8%. This is the weighted average of the interest rate

for loan capital, adjusted for the loan capital/total capital ratio.

13 Other operating expenses

14 Other notes to the statement of income

Operating lease

Research and development costs

15 Financial income and expense

2010 2009

Operating expenses 102,036 104,069

Other operating expenses 32,157 23,173

TOTAL 134,193 127,242

2010 2009

Income from long term receivables and securities 348 753

Other interest income 809 7,155

Total financial income 1,157 7,908

Interest expenses -68,277 -66,672

Capitalised interest on tangible fixed assets under construction 12,033 6,937

Total financial expenses -56,244 -59,735

TOTAL -55,087 -51,827

122 / 177


The income from participating interests (€ 6.3 million) comprises the share of the

Port of Rotterdam Authority in the result of participating interests (€ 4.8 million) and

the (positive) result concerning the sale of 25% of a participating interest (€ 1.5

million).

The average number of employees in 2010 was 1,232 (in 2009: 1,221). An average

of 541 of these employees were employed by the Harbour Master Division (in 2009:

549). The number of employees working outside the Netherlands in 2010 was 12 (in

2009: 12).

Supervisory Directors

The remuneration of the Chairman of the Supervisory Board is € 30,000 a year. For

Supervisory Board members, the remuneration is € 25,000 a year. In addition,

Supervisory Directors who are members of the Audit Committee or the Remuneration

Committee receive an annual payment of € 5,000.

Remuneration for the Supervisory Directors is as follows:

(amounts X € 1)

Directors

The remuneration policy as applied since 1 January 2005 to Executive Board

members was adopted by the General Meeting of Shareholders in December 2004

following advice from the external consultancy firm Hay Group.

The Port of Rotterdam Authority offers a competitive package of employment

benefits, consisting of a regular income and a variable short term income, as well as

a variable long term income.

The variable short term income is 20% of the applicable regular income and is

awarded if predetermined performance criteria are met. Because of the specific

nature (strategic, long term) of the Port Authority, the remuneration of Directors is

also based on long term performance (four years). If the long term objectives are

achieved, a bonus of 60% of the average regular income for the preceding four

years is paid after four years. For shorter periods of employment, the bonus will be

calculated on a pro rata basis. If the period to be settled is less than 2 years, the

long term bonus will not be paid out (e.g. on taking up employment later or leaving

earlier).

16 Income from participating interests

17 Employees

Remuneration policy

18 Remuneration of Directors

2010 2009

Supervisory Board A.J. Scheepbouwer 35,000 35,000

R.J.N. Abrahamsen 30,000 30,000

J.M. Kroon 30,000 30,000

R.P.M. van Slobbe 30,000 30,000

R.M. Smit 30,000 30,000

TOTAAL 155,000 155,000

123 / 177


At the time it was adopted, the Port of Rotterdam Authority’s remuneration policy

was set at a substantially lower level than that of comparable positions in the

relevant remuneration market.

At the request of shareholders, a start was made to develop a new remuneration

policy in 2010.

At the end of 2010, the Supervisory Board submitted a proposal to the shareholders

proposing that the remuneration policy be based on government policy in respect of

remuneration for board members of state participations. By means of this proposal,

the Supervisory Board aimed to offer remuneration which, in terms of amount and

structure, is such that it can attract, motivate and retain qualified and competent

managers. The shareholders are expected to make a decision about the new

remuneration policy in the first quarter of 2011.

The following basic salaries were awarded in 2010:

(amounts X € 1)

The above-mentioned amounts are inclusive of holiday pay and exclusive of

employer’s insurance contributions and suchlike. Mr. Toet ceased to be an executive

director on 1 January 2011.

Standards have been set for a number of performance criteria for determining the

variable short term income. These performance criteria relate to the net result,

employee satisfaction and progress at Maasvlakte 2. The reserves below are

therefore cautiously based on the fulfilment of objectives.

(amounts X € 1)

Variable short term income (annual bonus)

Basic salaries 2010

2010 2009

H.N.J. Smits 328,980 324,110

A.G.F. Toet 262,735 258,840

T. Menssen 262,735 258,840

TOTAL 854,450 841,790

2010 2009

H.N.J. Smits 32,898 32,410

A.G.F. Toet 39,410 25,885

T. Menssen 39,410 25,885

TOTAL 111,719 84,180

124 / 177


The long term bonus relates to a period of four years: from the start of 2009 to the end

of 2012. The maximum bonus that may be awarded is a maximum of 60% of the

average fixed annual income over this period (average 15% a year). Each year, for the

sake of caution the maximum amounts will be reserved pro rata, to be charged to the

result. The performance criteria for the long-term bonus concern market share,

sustainability, safe and efficient shipping and the development of company expenses.

(amounts X € 1)

Mr. Toet’s long term bonus related to the period 2009 and 2010 and was paid off in

proportion to the fulfilment of objectives (€ 39,118). The provision at the end of 2009

was sufficient to cover the payment.

Executive Board members participate in the General Pension Fund for Public

Employees [Algemeen Burgerlijk Pensioenfonds, ‘ABP’). The pension plan for

Directors is the same as that for employees of the Port Authority under the CAO. The

ABP scheme has been a career average pension scheme since 1 January 2004.

The table below shows the employer’s contribution to the ABP pension premium and

the fixed cost allowance in 2010.

(amounts X € 1)

The long term bonuses for the period 2005 until 2008 were paid off in 2009 for each

Director.

The corresponding pension charges were paid in 2010.

Total remuneration of directors

(amounts X € 1)

On his departure of Mr. Toet was awarded severance pay amounting to € 262,735.

This amount is in accordance with the Dutch Corporate Governance Code.

Variable long term income

2010 2009

H.N.J. Smits 49,347 48,617

A.G.F. Toet 292 38,826

T. Menssen 39,410 38,826

TOTAL 89,049 126,269

Pension costs and other emoluments

Serverance pay

2010 2009

H.N.J. Smits 96,322 66,021

A.G.F. Toet 60,880 49,255

T. Menssen 70,668 52,794

TOTAL 227,870 168,070

2010 2009

Basic salary 854,450 841,790

variable short term income (annual bonus) 111,719 84,180

variable long term income 89,049 126,269

Pension charges and other emoluments 227,870 168,070

TOTAL rEMuNErATION Of DIrECTOrs 1,283,088 1,220,309

125 / 177


All group companies and other participating interests as listed in Appendix B, as well

as the Municipality of Rotterdam and the State of the Netherlands, qualify as related

parties. An amount of € 31.2 million for the Municipality of Rotterdam is included in

the interest charges (2009: € 36.9 million).In addition, an annual contribution of € 6.2

million (2009: € 7.2 million) to Port Infolink B.V. (Portbase) is included in other

operating expenses.

The financial statements are audited by Ernst & Young Accountants. The total costs

incurred against the income for 2010 are € 279,400.

(amounts X € 1)

Port of Rotterdam N.V.

Rotterdam, 2 March 2010

Executive Board,

Ir. Drs. H.N.J. Smits

Ir. T. Menssen MBA

19 Related parties

20 Auditors’ expenses

2010 2009

Audit of financial statements 112,972 101,625

Other audit engagements 115,254 50,085

Other non-audit engagements 51,174 50,180

TOTAL 279,400 201,890

126 / 177


Other information

The provisions contained in the Articles of Association and in the Investment

Agreement concluded on 2 September 2005 between the State of the Netherlands,

the Municipality of Rotterdam and the Port of Rotterdam Authority, as well as the

provisions laid down in this respect in the Shareholders’ Agreement between the

above-mentioned parties are important for the appropriation of net income.

Supplementary agreements for the appropriation of net income were made in 2009 by

the three parties referred to above in the Capital Agreement of 30 January 2009 and

the Settlement Agreement of March 2009.

Article 3 of the Shareholders’ Agreement provides that from 1 January 2006 the

shareholders will receive 4% each year on the capital they have invested, with the

application of an indexation clause. Article 11.1 of the Investment Agreement sets the

amount of capital paid in by the Municipality on 1 January 2006 at € 1 billion. On 23

May 2007 the State joined as a co-shareholder and paid up € 50 million in share

capital (first tranche). The second tranche was a capital payment of € 450 million in

2009 by the State and the Municipality of Rotterdam, for which new shares were

issued. As a result of the 2009 agreements referred to above, the issue of the new

shares has changed the basis for the distribution of the dividend between the

shareholders. Until the moment of issue, the dividend for each shareholder was

calculated on the basis of the capital paid in by each shareholder, whereas now the

distribution of shares is the decisive criterion.

Net income totals € 154.2 million. In accordance with the provisions laid down in the

Investment Agreement and the Shareholders’ Agreement, the Capital Agreement 2009

and the Settlement Agreement, it is proposed that the following dividend be paid to the

Municipality of Rotterdam and the State of the Netherlands.


No interim-dividend was paid during the financial year 2010.

21 Appropriation of net income under the

Articles of Association

22 Proposed appropriation of net income - provisional

Description

Dividend payment to the Municipality of Rotterdam 45,2

Dividend payment to the State of the Netherlands 18,6

TOTAL 63,8

127 / 177


The Investment Agreement which was drawn up due to the entry of the State

specifies that, subject to conditions, the Municipality of Rotterdam will, repay the Port

of Rotterdam Authority the net costs incurred by the Port of Rotterdam Authority in

relation to the guarantee affair. In this context, it was laid down that the State can be

compensated for these costs in the form of a deposit into the paid-in surplus.

No events took place after the balance sheet date that provide additional information

about the actual situation on the balance sheet date.

The Annual Report of the Port of Rotterdam Authority has been provided with an

unqualified audit report by Ernst & Young Accountants LLP. This report may be found

in the Chapter ‘About the Annual Report and the Auditor’s Report’.

23 Withdrawals from/ deposits into paid-in surplus

Indemnification of guarantees affair

24 Events after the balance sheet date

25 Auditor’s report

128 / 177


List of participating interestsBelow is a list of the participating interests of the Port of Rotterdam Authority:

Direct participating interests of the HBR Domicile Shareholding

Mainport Holding Rotterdam N.V. (MHR) 100% Rotterdam

Keyrail B.V. 35% Rotterdam

Indirect participating interests via MHR Domicile Shareholding

Port infolink B.V. (Portbase) 75% Rotterdam

Cruise Port Rotterdam B.V. 100% Rotterdam

Koninklijke Scheepsagentuur Dirkzwager B.V. 46% Maassluis

Mainport Foreign Investments B.V. 100% Rotterdam

Sohar Industrial Port Company 50% Sohar, Oman

Sohar Industrial Development Company 50% Sohar, Oman

Ontwikkelingsmaatschappij Noordoever B.V. 50% Schiedam

Northcoast Properties Zevenmanshaven C.V. 48% Schiedam

Mainport Rotterdam Properties B.V. 100% Rotterdam

Mainport Project II B.V. 100% Rotterdam

Mainport Project III B.V. 100% Rotterdam

Mainport Project IV B.V. 100% Rotterdam

Mainport Project V B.V. 100% Rotterdam

Mainport Project VI B.V. 100% Rotterdam

MHR Commanditaire Vennoot B.V. 100% Rotterdam

Multicore B.V. 50% Rotterdam

MultiCore C.V. 75% Rotterdam

MHR Silent Partner B.V. 100% Rotterdam

RC2 C.V. 50% Rotterdam

RC2 B.V. 50% Rotterdam

Scheepvaartmaatschappij Eendracht B.V. 11.7% Rotterdam

Foundations Domicile Shareholding

Stichting Rotterdam Port Experience 100% Rotterdam

Stichting de Verkeersonderneming 33.3% Rotterdam

129 / 177

Key figures 2010

130 / 177

135The Port of Rotterdam Authority Annual report 2010 Key figures > Cockpit Financial

CockpitFinancial

* Income from normal operations / average balance sheet total less short-term debt.

** Net interest-bearing debt / income before interest, depreciation and amortisation.

*** Operating income / balance of interest income and expense.

**** The Port of Rotterdam Authority makes use of the exemption from the obligation to consolidate the companies

involved in the consolidation whose joint significance is negligible to the company as a whole.

Key figures Port of Rotterdam(Amounts x € 1 million)

2010 2009

**** Financial performance Total operating income 551 519

Income from normal operations (EBIT) 203 196

Net income 154 167

**** Balance sheet data Group equity 1,770 1,645

Long-term debts 1,143 1,059

Invested capital 2,913 2,704

Total assets 3,280 3,088

**** Ratio’s Return on capital employed * (in %) 7 8

Capital adequacy (in (%), incl. subordinated loans) 63 66

Net Debt / EBITDA ** 3 3

Interest coverage rate *** 4 4

Operational data Investments **** 445 341

Goods throughput ( x 1 mln tonnes) 430 387

Number of visits by seagoing vessels 34,404 33,352

Market share Hamburg – Le Havre Range Total (in %) 38 37

Liquid bulk goods (in %) 53 49

Dry bulk goods (in %) 36 33

Containers (in %) 28 28

General cargo (in %) 25 25

Workforce Number of employees at year end 1,224 1,239

131 / 177

136The Port of Rotterdam Authority Annual report 2010 Key figures > Cockpit Financial

Harbour dues 288

Contract revenues 249

Other revenue 214

0

100

200

300400

500

Investeringen Maasvlakte 2

Investeringen Bestaand Rotterdams Gebied

201020092008200720062005

0

50

100

150

200

250

300

350

400

450

500

Investments in Maasvlakte 2

Investments in Existing Port Area

20092008200720062005 2010

Harbour dues 288

Contract revenues 249

Other revenue 214

0

100

200

300400

500

Investeringen Maasvlakte 2

Investeringen Bestaand Rotterdams Gebied

201020092008200720062005

0

50

100

150

200

250

300

350

400

450

500

Investments in Maasvlakte 2

Investments in Existing Port Area

20092008200720062005 2010

Capital expenditures 2010

(x € 1 million euro)

Operating income 2010

(x € 1 million euro)

* Figures normalised

** With effect from 2007, RoRo througput in Hook of Holland and Vlaardingen is consolidated in the througput

figures of Great Rotterdam. The 2006 throughput figures are thus adjusted (originally 378.2 MlN ton).

Financial Overview(Amounts x € 1 million)

Consolidated from 2003;adjusted in 2004 in accordance with the Dutch Accounting. Standards Board RJ 271

(2005) Others years not consolidated ; adjusted as far as possible for comparative purposes.

2010 2009 2008 2007 2006 2005

Balance sheet

Assets 3,280 3,088 2,678 2,548 2,430 2,293

Shareholder’s equity 1,770 1,645 1,080 1,033 971 843

Long-term debts 1,143 1,059 1,102 1,139 1080 1,127

Capital invested 2,913 2,704 2,183 2,172 2,051 1,970

Provisions and short-term debts 367 384 495 376 378 323

TOTAL ASSETS 3,280 3,088 2,678 2.,548 2,430 2,293

Statement of income

Total operating income 551 519 523 488 455 440

Operating expenses 235 222 224 220 226 222

Depreciation 113 101 93 87 83 79

Income from participating interests 6 0 -1 -10 1 -1

Financial income and expenses -55 -52 -56 -57 -55 -65

NET INCOME 154 *144 149 114 *92 *73

Key figures

Goods throughput ( x 1 mln tonnes) 430 387 421 409 **382 370

Number of calls of seagoing vessels 34,404 33,352 36,415 37,097 35,989 34,954

Capital expenditures (x 1 million) 445 341 190 235 231 135

Return on capital employed (in%) 7.0 7.8 9.2 8.2 *7.3 6.6

132 / 177

137The Port of Rotterdam Authority Annual report 2010 Key figures > Cockpit Personnel

CockpitPersonnel

Number of employees

Total number of employees

Average age employees

Sickness absence (in %)

Proportion male-female

Total port of Rotterdam

Management

Number of years of service

Number of employees

Age Employees

Number of employees

0

100

200

300

400

500

600

> 1511-156-10< 5

201020092008

Female

16%

Male

84%

15%

85%

23%

77%

14%

86%

22%

78%

20%

80%

201020092008

0

50

100

150

200

250

300

350

400

450

2008

2009

2010

2008

2009

2010

> 6050 - 60 40 - 4930 - 39< 30

0

1

2

3

4

5

6

Short period (1 - 7 days)Medium period (8 - 42 days)

Long period (43 - 365 days)

Year (1 - 2 years)

Target sickness absence

201020092008

25

30

35

40

45

50

Port of Rotterdam total

Management

New employees

201020092008

0

250

500

750

1.000

1.250

Full-time

Part-time

201020092008

25,000000

29,166667

33,333333

37,500000

41,666667

45,833333

50,000000 Havenbedrijf totaal

Management

Nieuwe medewerkers

201020092008

0

100

200

300

400

500

600

> 1511-156-10< 5

201020092008

Female

16%

Male

84%

15%

85%

23%

77%

14%

86%

22%

78%

20%

80%

201020092008

0

50

100

150

200

250

300

350

400

450

2008

2009

2010

2008

2009

2010

> 6050 - 60 40 - 4930 - 39< 30

0

1

2

3

4

5

6



Year (1 - 2 years)


201020092008

25

30

35

40

45

50


Management

New employees

201020092008

0

250

500

750

1.000

1.250

Full-time

Part-time

201020092008

25,000000

29,166667

33,333333

37,500000

41,666667

45,833333


Management

Nieuwe medewerkers

201020092008

0

100

200

300

400

500

600

> 1511-156-10< 5

201020092008

Female

16%

Male

84%

15%

85%

23%

77%

14%

86%

22%

78%

20%

80%

201020092008

0

50

100

150

200

250

300

350

400

450

2008

2009

2010

2008

2009

2010

> 6050 - 60 40 - 4930 - 39< 30

0

1

2

3

4

5

6



Year (1 - 2 years)


201020092008

25

30

35

40

45

50


Management

New employees

201020092008

0

250

500

750

1.000

1.250

Full-time

Part-time

201020092008

25,000000

29,166667

33,333333

37,500000

41,666667

45,833333


Management

Nieuwe medewerkers

201020092008

0

100

200

300

400

500

600

> 1511-156-10< 5

201020092008

Female

16%

Male

84%

15%

85%

23%

77%

14%

86%

22%

78%

20%

80%

201020092008

0

50

100

150

200

250

300

350

400

450

2008

2009

2010

2008

2009

2010

> 6050 - 60 40 - 4930 - 39< 30

0

1

2

3

4

5

6



Year (1 - 2 years)


201020092008

25

30

35

40

45

50


Management

New employees

201020092008

0

250

500

750

1.000

1.250

Full-time

Part-time

201020092008

25,000000

29,166667

33,333333

37,500000

41,666667

45,833333


Management

Nieuwe medewerkers

201020092008

0

100

200

300

400

500

600

> 1511-156-10< 5

201020092008

Female

16%

Male

84%

15%

85%

23%

77%

14%

86%

22%

78%

20%

80%

201020092008

0

50

100

150

200

250

300

350

400

450

2008

2009

2010

2008

2009

2010

> 6050 - 60 40 - 4930 - 39< 30

0

1

2

3

4

5

6



Year (1 - 2 years)


201020092008

25

30

35

40

45

50


Management

New employees

201020092008

0

250

500

750

1.000

1.250

Full-time

Part-time

201020092008

25,000000

29,166667

33,333333

37,500000

41,666667

45,833333


Management

Nieuwe medewerkers

201020092008

0

100

200

300

400

500

600

> 1511-156-10< 5

201020092008

Female

16%

Male

84%

15%

85%

23%

77%

14%

86%

22%

78%

20%

80%

201020092008

0

50

100

150

200

250

300

350

400

450

2008

2009

2010

2008

2009

2010

> 6050 - 60 40 - 4930 - 39< 30

0

1

2

3

4

5

6



Year (1 - 2 years)


201020092008

25

30

35

40

45

50


Management

New employees

201020092008

0

250

500

750

1.000

1.250

Full-time

Part-time

201020092008

25,000000

29,166667

33,333333

37,500000

41,666667

45,833333


Management

Nieuwe medewerkers

201020092008

2010 2009 2008

Total internal staff 1,224 1,239 1,203

Full-time 1,081 1,093 1,061

Part-time 143 146 142

Number of managers (3- layers) 71 75 72

133 / 177

138The Port of Rotterdam Authority Annual report 2010 Key figures > Cockpit Harbour Master

CockpitHarbour Master

Turn Around Time and

number of ship visits

(Sea-going vessels)

Number of ship visits

(Sea-going vessels)

Ship movements

and nautical accidents

(Sea-going vessels)

0

5000

10000

15000

20000

25000

30000

35000

40000

Others

Container

General cargo

Dry bulk

Tankers

20102009200820072006

5,5

6,0

6,5

7,0

7,5

8,0

8,5

9,0

9,5

Norm Enviroment

Norm Respons

Norm Safety

Enviroment

Respons

Safety

20102009200820072006

0

5000

10000

15000

20000

25000

30000

35000

40000

Others

Container

General cargo

Dry bulk

Tankers

20102009200820072006

5,5

6,0

6,5

7,0

7,5

8,0

8,5

9,0

9,5

Norm Enviroment

Norm Respons

Norm Safety

Enviroment

Respons

Safety

20102009200820072006

Safety & Environmental Index (SEI)

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000


Dry bulk

Container

OthersDroge bulk

Volcontainer

Overige

0

2000

4000

6000

8000

10000

12000

14000Overige

Volcontainer

General cargo

Droge bulk

Tankschepen

20102009200820072006

25.000

27.000

29.000

31.000

33.000

35.000

37.000

39.000

Ship visits

20102009200820072006

25

27

29

31

3335

37

39

Scheepsbezoeken

20102009200820072006

4:18

4:30

4:42

4:54

4:66

4:78

4:90

5:02


2009 2010200820072006

4,18

4,30

4,42

4,54

4,66

4,78

4,90


20092008200720062005

80

110

140

170

200

230


Nautical accidents

20102009200820072006

70.000

74.000

78.000

82.000

86.000

90.000


70

74

78

82

86


20092008200720062005

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000


Dry bulk

Container

OthersDroge bulk

Volcontainer

Overige

0

2000

4000

6000

8000

10000

12000

14000Overige

Volcontainer

General cargo

Droge bulk

Tankschepen

20102009200820072006

25.000

27.000

29.000

31.000

33.000

35.000

37.000

39.000

Ship visits

20102009200820072006

25

27

29

31

3335

37

39

Scheepsbezoeken

20102009200820072006

4:18

4:30

4:42

4:54

4:66

4:78

4:90

5:02


2009 2010200820072006

4,18

4,30

4,42

4,54

4,66

4,78

4,90


20092008200720062005

80

110

140

170

200

230


Nautical accidents

20102009200820072006

70.000

74.000

78.000

82.000

86.000

90.000


70

74

78

82

86


20092008200720062005

134 / 177

139The Port of Rotterdam Authority Annual report 2010 Key figures > Cockpit Throughput and Market share

CockpitThroughput and Market share

Incoming throughput Port of Rotterdam* (gross weight * 1,000 metric tons)

* Figures are including throughput terminals on North bank of the river (Hook of Holland, Vlaardingen, Schiedam);

these counted in 2010 for approx. 3,1% of throughput. Harbour dues are excluded from financial statements

PoR because harbour dues are collected by local municipalities.

2010 2009 difference 2010/2009

(in %)

Agribulk 6,817 6,867 -50 -0,7

Ore and scrap 36,444 20,184 16,260 80,6

Coal 23,278 23,665 -387 -1,6

Other dry bulk goods 9,090 6,442 2,648 41,1

Total dry bulk 75,630 57,158 18,472 32,3

Crude oil 99,548 95,676 3,872 4,0

Mineral oil 42,704 42,241 463 1,1

Other liquid bulk 19,655 18,070 1,585 8,8

Total liquid bulk 161,906 155,987 5,919 3,8

TOTAL BuLK gOODs 237,536 213,145 24,391 11,4

Containers 55,025 47,890 7,135 14,9

Roll on / roll off 8,123 8,025 98 1,2

Other general cargo 4,671 4,232 439 10,4

Breakbulk 12,794 12,257 537 4,4

TOTAL BrEAKBuLK 67,819 60,147 7,672 12,8

TOTAL INCOMINg ThrOughPuT 305,355 273,292 32,063 11,7

135 / 177


Outgoing throughput Port of Rotterdam*

(gross weight * 1,000 metric tons)


these counted in 2010 for approx. 3,1% of total throughput. Harbour dues are excluded from financial statements


2010 2009 difference 2010/2009

(in %)

Agribulk 1,551 1,467 84 5.7

Ore and scrap 3,378 3,114 264 8.5

Coal 802 1,168 -366 -31.3

Other dry bulk goods 3,229 3,721 -492 -13.2

Total dry bulk 8,960 9,470 -510 -5.4

Crude oil 752 742 10 1.4

Mineral oil 34,876 29,949 4,927 16.4

Other liquid bulk 11,823 11,412 411 3.6

Total liquid bulk 47,451 42,103 5,348 12.7

TOTAL BuLK gOODs 56,412 51,573 4,839 9.4

Containers 57,268 52,390 4,878 9.3

Roll on / roll off 8,625 7,980 645 8.1

Other general cargo 2,267 1,722 545 31.7

Breakbulk 10,892 9,702 1,190 12.3

TOTAL BrEAKBuLK 68,160 62,092 6,068 9.8

TOTAL OuTgOINg ThrOughPuT 124,572 113,665 10,907 9,6

136 / 177

141The Port of Rotterdam Authority Annual report 2010 Key figures > Cockpit Throughput and Market share 141

Incoming and outgoing throughput Port of Rotterdam*



these counted in 2010 for approx. 3,1% of total throughput. Harbour dues are excluded from financial statements


2010 2009 difference 2010/2009

(in %)

Agribulk 8,369 8,334 35 0.4

Ore and scrap 39,823 23,298 16,525 70.9

Coal 24,080 24,833 -753 -3.0

Other dry bulk goods 12,319 10,163 2,156 21.2

Total dry bulk 84,590 66,628 17,962 27.0

Crude oil 100,300 96,418 3,882 4.0

Mineral oil 77,579 72,190 5,389 7.5

Other liquid bulk 31,478 29,482 1,996 6.8

Total liquid bulk 209,358 198,090 11,268 5.7

TOTAL BuLK gOODs 293,948 264,718 29,230 11.0

Containers 112,293 100,280 12,013 12.0

Roll on / roll off 16,748 16,005 743 4.6

Other general cargo 6,938 5,954 984 16.5

Breakbulk 23,686 21,959 1,727 7.9

TOTAL BrEAKBuLK 135,979 122,239 13,740 11.2

TOTAL INgOINg AND

OuTgOINg ThrOughPuT 429,927 386,957 42,970 11.1

137 / 177


Market share Rotterdam in Hamburg-Le Havre range(gross weight * 1,000 metric tons)

0

10

20

30

40

50

60

Liquid bulk

Dry bulk

Containers

Breakbulk

2009 2010200820072006

0

10

20

30

40

50

60

Nat massagoed

Droog massagoed

Containers

Breakbulk

20102009200820072006

0

5

10

15

20

25

30

35

40

Dunkirk

Ghent

Zeeland Seaports

Wilhelmshaven

Zeebrugge

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerp

Rotterdam

2009 2010200820072006

0

5

10

15

20

25

30

35

40

Gent

Zeeland_Seaports

Wilhelmshaven

Zeebrugge

Duinkerken

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerpen

Rotterdam

20102009200820072006

Breakbulk 5,5%

Containers 26,1%

Dry bulk 19,7%

Mineral oil -


Crude oil 23,3%

Movement in market share Rotterdam

in Hamburg - Le Havre range

(based on total throughput in tons) in %

Throughput Growth 2009-2010 Market share in %

2010 2009 Absolute in % 2010 2009

rotterdam 429.9 387.0 43.0 11.1 37.8 36.8

Antwerpen 178.2 157.6 20.6 13.1 15.7 15.0

Hamburg 121.2 110.4 10.8 9.8 10.7 10.5

Amsterdam 90.6 86.7 3.9 4.5 8.0 8.2

Le Havre 70.2 73.7 -3.5 -4.7 6.2 7.0

Bremerhaven 68.7 63.0 5.7 9.0 6.0 6.0

Duinkerken 42.7 45.0 -2.3 -5.1 3.8 4.3

Zeebrugge 49.6 44.9 4.7 10.5 4.4 4.3

Wilhelmshaven 25.7 33.6 -7.9 -23.5 2.3 3.2

Zeeland Seaports 33.0 29.0 4.0 13.8 2.9 2.8

Gent 27.3 20.8 6.5 31.3 2.4 2.0

TOTAAL 1,137.1 1,051.7 85.5 8.1 100.0 100.0

0

10

20

30

40

50

60

Liquid bulk

Dry bulk

Containers

Breakbulk

2009 2010200820072006

0

10

20

30

40

50

60

Nat massagoed

Droog massagoed

Containers

Breakbulk

20102009200820072006

0

5

10

15

20

25

30

35

40

Dunkirk

Ghent

Zeeland Seaports

Wilhelmshaven

Zeebrugge

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerp

Rotterdam

2009 2010200820072006

0

5

10

15

20

25

30

35

40

Gent

Zeeland_Seaports

Wilhelmshaven

Zeebrugge

Duinkerken

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerpen

Rotterdam

20102009200820072006

Breakbulk 5,5%

Containers 26,1%

Dry bulk 19,7%

Mineral oil -


Crude oil 23,3%

0

10

20

30

40

50

60

Liquid bulk

Dry bulk

Containers

Breakbulk

2009 2010200820072006

0

10

20

30

40

50

60

Nat massagoed

Droog massagoed

Containers

Breakbulk

20102009200820072006

0

5

10

15

20

25

30

35

40

Dunkirk

Ghent

Zeeland Seaports

Wilhelmshaven

Zeebrugge

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerp

Rotterdam

2009 2010200820072006

0

5

10

15

20

25

30

35

40

Gent

Zeeland_Seaports

Wilhelmshaven

Zeebrugge

Duinkerken

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerpen

Rotterdam

20102009200820072006

Breakbulk 5,5%

Containers 26,1%

Dry bulk 19,7%

Mineral oil -


Crude oil 23,3%

Movement in throughput Rotterdam


Proportions of goods segments


0

10

20

30

40

50

60

Liquid bulk

Dry bulk

Containers

Breakbulk

2009 2010200820072006

0

10

20

30

40

50

60

Nat massagoed

Droog massagoed

Containers

Breakbulk

20102009200820072006

0

5

10

15

20

25

30

35

40

Dunkirk

Ghent

Zeeland Seaports

Wilhelmshaven

Zeebrugge

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerp

Rotterdam

2009 2010200820072006

0

5

10

15

20

25

30

35

40

Gent

Zeeland_Seaports

Wilhelmshaven

Zeebrugge

Duinkerken

Bremerhaven

Le Havre

Amsterdam

Hamburg

Antwerpen

Rotterdam

20102009200820072006

Breakbulk 5,5%

Containers 26,1%

Dry bulk 19,7%

Mineral oil -


Crude oil 23,3%

Market share Rotterdam of

Hamburg – Le Havre range

(Per main segment) in %

138 / 177

143The Port of Rotterdam Authority Annual report 2010 Key figures > Cockpit Critical Preformance Indicator (KPI’s) 2010 143

CockpitCritical Performance Indicator (KPI’s) 2010

TArgET CrITICAL PErfOrMANCE

INDICATOr

NOrM 2010 rEALIsATION q4

2010

rEfErENCE

1.1 Chain efficiency 1.1.1 Average turnaround time deepsea-containers in the port and industrial complex

Imposing a measurement system

Not achieved n.a.

1.1.2 Improvement of modal split Road: 47,0%Rail: 14,5%Barge: 38,5%

Realisation: 2009:Road: 47%Rail: 14%Barge: 39%

Paragraph 6.1

1.1.3 Average journey time A15 Ridderkerk - Maasvlakte: Percentage during rush hours that lead to a max. journey time of 38 minutes

85,0% measurement 1x per year

Paragraph 6.1

1.2 European market leader 1.2.1 Market share throughput H-L-H range

36,3% 37,8% Paragraph 4.3

1.3 quality of customer portfolio 1.3.1 Customer satisfaction Formulate and execute action plan

Feedback from clients and fixing of points for improve - ments realised. Improvement actions in execution

Paragraph 4.2

2.1 Maasvlakte 2 2.1.1 Milestones Maasvlakte 2 Realisation milestones

Milestones realised Paragraph 5.2

2.3 space outside the port and industrial

complex

2.3.1 Milestones Alblasserdam / Dordrecht / hinterland strategy

Realisation milestones

Milestones Alblasserdam and Dordrecht realised

Paragraph 6.2 / 5.3

3.1 Optimal handling of shipping 3.1.1 Dynamic turn around time Rotterdam

4:27 hour 4:37 hour Paragraph 3.2

3.1.2 Number of nautical accidents 120 116 Paragraph 3.3

3.1.3 Safety & environmental index 8,3 8,6 Paragraph 3.4

3.1.4 Results of inspections: Port Security Act

7,2 7,0 Paragraph 3.6

4.1 sustainability 4.2.1 Sustainability index Implementation Adjusted in 2010 Paragraph 7.2

4.2.2 Environmental Shipping Index Implementation index

Index implemented Paragraph 7.2

5.1 Available investment funds 5.1.1 Additional (financial) investment capacity

N.v.t. N.v.t. N.v.t.

6.1 Employee quality 6.1.1 Commitment personnel (from MTO)

7.2 (measurement 1x per 2 years)

7.7 Paragraph 2.6

6.1.3. Sickness absence 4.8% 4.6% Cockpit personnel

6.1.4. Performance interviews 90% 83% Paragraph 2.6

6.2 Organisational-efficiency 6.2.1 Control of operating expenses Max. € 225 m. € 221 m (excl. Non-recurring buy-off small scale

Financial Statements

139 / 177


Notes to the KPI’s

In this outline 18 of PoR’s 23 KPI’s are included. Five KPI’s are excluded because

they are not applicable anymore or they are commercially confidential.

Policies quantitative KPI’s

1.1.2 Modal split:

The modal split calculation is based on the received information of ship brokers and

terminal operators located on Maasvlakte 1. The modal split provides information

concerning the proportion of transported containers from and to Maasvlakte 1 by

road, water and road. The data of 2010 is available from half 2011.

1.1.3 Average journey time A15 – Ridderkerk – Maasvlakte: percentage rush hours in

which the maximum journey time is 38 minutes. This information is received form the

Verkeersonderneming and Directorate-General of Public Works and Water Manage-

ment. The information is not yet available by publication of this Annual Report.

1.2.1 Market share throughput Hamburg-Le Havre (HLH)-range

The market share is calculated based on throughput figures of ports in the Hamburg

– Le Havre Range. The figures are received quarterly from the applicable port

companies.

3.1.1 Dynamic turn around time Rotterdam

Average sailing time of sea-going vessels larger than 150m from sea (6 miles zone

border) to various port basins (quay walls / jetties) in the region Europoort, Botlek

and City (combined) and vice versa. The data is extracted from the port control

system IVS..

3.1.2 Number of nautical accidents

A nautical accident is an unwanted event for a ship during the journey. A distinction is

made between nautical accidents, significant nautical accidents and so-called near

miss situations. The accidents are recorded in a database based on various journals

and information received from third parties.

3.1.3 Safety & Environment index

The Harbour Master uses the Safety Environment Index (SEI) to measure the level

of compliance with rules on safety and the environment on board ocean and other

vessels. The measurement is based on the findings during on-board inspections and

the systematic checking of compliance with statutory administrative reporting

obligations by shipping companies and agents.

3.1.4 Inspection results of the Port Security Act

The security level is the average assessment on the ISPS inspections

6.1.1 Employee satisfaction (from the employee satisfaction survey)

We conduct an employee satisfaction survey every two years. The final results are

based an average of the overall employee satisfaction score.

6.1.3 Absenteeism

The absenteeism is based on the total days of illness compared to the work related

days. The information on absenteeism is registered in our ERP-system and an

annual report is generated from this.

140 / 177


6.1.4 Performance interviews

The percentage performance interviews are based on the total performance

interviews in 2010 compared to the average number of employees. This information

is also registered in the ERP-system.

6.2.1 Controlling operating expenses

The operating expenses are derived from the Financial Statements. It concerns

operating expenses excluded for depreciation and amortisation.

141 / 177

147The Port of Rotterdam Authority Annual report 2010 Appendix > About the Annual Report

About the Annual Report Integrated Annual Report

The traditional report of the Executive Board, the Financial Statements and the

Corporate Social Responsibility Report have been integrated into one single report:

the Annual Report 2010. The introduction of the report contains the scope of the

integrated report. In this section, we explain the subject selection in the report and

the quality assurance. In addition, a more detailed explanation of the reporting

policies is provided.

Selection of subjects

The Annual Report focuses on our administration, the performance related to the

legislative duties of the Harbour Master and the performance and developments

within the strategic focus areas: Customer, Area and Space, Traffic and Accessibility

and Environment and Sustainability. The Port of Rotterdam Authority reports on its

own efforts related to the strategic focus areas and the effects of these efforts on

stakeholders in the port area and the (logistics) chain.

The dialogues with stakeholders are an important source of information with regard

to our perceived expectations. This is the reason why the dialogue determines the

content of this Annual Report. The feedback received from stakeholders provides

input for our (CSR) priorities and reporting. The dialogue is an important component

in our day-to-day business. The Port of Rotterdam Authority is thoroughly aware of

the importance of a pro-active stakeholder approach for public support and as part

of our daily operations. The efforts related to this dialogue are described in

paragraph 7.4. In addition to the results of the dialogue with stakeholders, we

compiled the content of the report on the basis of strategy, strategic focus areas,

feedback on the Annual Report 2009 and by surveying the key subjects of the

corporate social responsibility report. The most important subjects in 2010 are listed

below.

Subjects related to the Port of Rotterdam Authority’s administration

• Helicopter crash during Tour du Port.

• Solid financial basis, necessary for the investments in Maasvlakte 2 and the existing

port area.

• New traffic coordination centre, for a more efficient control of the ever increasing

shipping in the port of Rotterdam.

• Personnel changes in the top management of the organisation

• The new Business Plan for the period 2011-2015.

• Support for our operational activities

142 / 177


Subjects related to the activities in the port area and the chain

• Quick recovery of the throughput of goods.

• Developments in the market share.

• Substantial investments in Maasvlakte 2 for the purpose of creating space for growth

for the development of the port.

• Investments to intensify the existing port area for the efficient use of the existing port

terrains.

• Accessibility of the port by road, rail and water.

• Rotterdam Energy Port, to provide room for the increasing energy need and

simultaneously pay attention to the environment

• Collaboration with other ports

• European Ship Index, aimed at rewarding the cleanest vessels with the objective of

reducing the emissions of NOx, SOx, airborne solid particles and, in time, CO2.

• Shore-based power for inland shipping

• Port Vision

In accordance with last year’s report we share various performance indicators

related to 2010 by which we measure the performance of our own administration,

including market share, throughput figures, CO2 emissions, modal split, journey time

by road, nautical accidents, Safety & Environmental Index and various key figures.

Key figures are placed, if possible, in a long term perspective.

Reporting policies

The Annual Report has been drawn up with due observance of the statutory

provisions of Title 9, Book 2 of the Dutch Civil Code, the Annual Reporting

Guidelines and the G3 Guideline of the Global Reporting Initiative (GRI). The GRI

performance-indicators are only partly relevant for our organisation, due to the

nature of business of the Port of Rotterdam Authority as service provider and

upholder of regulations and the special role in the chain. This is reflected by the

chosen subjects and is further explained in the GRI table in appendix IV. The table

refers to the page that contains an explanation of the indicator. Some indicators are

explained in other publications. Moreover, we use some indicators to explain why we

believe they are not important or why information is not available. The definition of

the reporting policies remained unchanged compared to last year. We compare

quantitative information whenever possible. The reporting policies for the most

important CPIs are included in the cockpit Critical Performance Indicators (CPIs)

2010.

Quality of the Annual Report

In order to achieve the desired quality, we intensively collaborated with a large

number of employees in projects. Furthermore, our auditors examined the Annual

Report and we had the application level of the reporting policies for corporate social

responsibility reporting externally assessed.

The project group for the Annual Report 2010 consisted of a supervisory group and

a project team. The supervisory group was led by the CFO and the project team was

led by the Manager Corporate Finance & Control. The project team consisted of

employees of the departments: Corporate Finance & Control, Corporate

Communication Strategy, Corporate Strategy and Internal Audit. Experts throughout

the organisation wrote the individual texts after subject selection by the project team.

Afterwards, Corporate Finance & Control edited the texts and combined them.

Internal Audit checked the texts in respect of their correctness, completeness and

relevance during the project. The consistency between the Financial Statements and

the texts was checked by Corporate Finance & Control. Corporate Communication

Strategy (Digital Media) is responsible for the on-line version and the PDF-

publication of the report.

143 / 177


We engaged our auditors to give assurance in respect of the Annual Report. The

Annual Report was classified into three categories within the scope of this

assignment:

• The Report: Report of the Port of Rotterdam Authority, Key Figures and cases (Cases

are only available digitally).

• The Financial Statements.

• Other information: Foreword of the Executive Board, Introduction, Appendices and the

Report of the Supervisory Board.

The Report and the Financial Statements are assessed by the auditors, with the

exception of information about future developments.

In addition to the auditor’s report, the Global Reporting Initiative (GRI) tested the

level of application of the G3-guidelines. The application level of the Report of the

Port of Rotterdam Authority fulfil the requirements of A+. The GRI is a non-

governmental organisation that develops global standards for annual CSR reporting.

Future-oriented information

In this Annual Report, we report our efforts and our achievement of objectives in

2010. In addition, we have provided our plans and vision for the future. This future-

oriented information can be recognised by words such as: aim, expect, would like,

consider, continuation, predict, target, objective, scenario, plan, vision, planning,

ambition, intention and prediction. Future expectations are subject to risks and

insecurities. That is the reason the auditor cannot provide any assurance concerning

future-oriented information.

144 / 177

Ap pendix

145 / 177

154The Port of Rotterdam Authority Annual report 2010 Appendix I

Appendix I Personal details of the Supervisory Board as of 2 March 2011

The Supervisory Board currently consists of the following five members.

1944

Dutch

Member of the Supervisory Board of the Port of Rotterdam Authority since

06-09-2005. President of the Supervisory Board since 01-01-2006

Member of the Remuneration Committee

Chairman of the Board of management and CEO Royal KPN N.V.

• Chairman of the Supervisory Board Maasstad Ziekenhuis

• Member of the Supervisory Board and investor in RFS Holland Holding B.V. Zwolle

• Member of the Advisory Board ECP.NL

• Member of the Supervisory Board of Bank Oyens & van Eeghen N.V.

1938

Dutch

Member of the Supervisory Board of the Port of Rotterdam Authority since

01-01-2004. Vice-president of the Supervisory Board of the Port of Rotterdam

Authority

Chairman of the Audit Committee

Former Managing Director and CFO of KLM Royal Dutch Airlines

• Member of the Supervisory Board of PON Holdings B.V. (until July 1, 2010)

• Member of the Supervisory Board of Fluor Daniel B.V.

• Member of the Supervisory Board of TNT Post Group

• Member of the Supervisory Board of ANP

• Chairman of the Supervisory Board of Optimix Vermogensbeheer N.V.

• Member of the Supervisory Board of Koninklijke BAM Groep N.V. (until July 1, 2010)

• Member of the Supervisory Board of Vitens N.V. (until July 1, 2010)

• Member of the Supervisory Board of N.V. Bank Nederlandse Gemeenten (BNG)

A.J. (Ad) Scheepbouwer

Year of birth

Nationality

Appointed

Committees

Present position/Experience

Additional functions

Drs. R.J.N. (Rob) Abrahamsen

Year of birth

Nationality

Appointed

Committees

Present position/Experience


146 / 177


1952

Dutch

Member of the Supervisory Board of the Port of Rotterdam Authority since 1-1-2006

Member of the Audit Committee

Former member of the Executive Board of Royal P&O Nedlloyd N.V.

• Non-Executive member Board of Directors Dockwise Ltd

• Member of the Supervisory Board Royal Netherlands Sea Rescue Institution

• Member Board of Directors Shipping and Transport College (STC)

• Member of the Supervisory Board MPC Shipping & Logistics B.V.

• Member of the Supervisory Board Eendracht B.V.

• Partner Oxalis Cooperatie U.A.

1957

Dutch


Member of the Audit Commitee

Chairman of the Board of Tennet B.V.

• Member of the Supervisory Board, Port of Rotterdam Authority since

22-06-2005 / Member of the Audit Committee

• Member of the Supervisory Board, Diamond Tools Group N.V.

• Member of the Supervisory Board, APX B.V.

• Chairman of the Supervisory Board, NOVEC B.V.

• Member of the Executive Board, Belpex S.A.

• Member Comité d’Administration Powernext S.A.

• Verwaltungsrat Transpower GmbH

• Member of the Supervisory Board, HTM Personenvervoer N.V.

• Vorsitzender Aufsichtrat Transpower GmbH

1959

Dutch


Chairman of the Renumeration Committee

Chairman of the Executive Board of VU University Amsterdam

• Member of the Non-Executive Board Kloosterboer Groep B.V.

• Member of the Innovation Platform (until 21-06-2010)

• Chairman Supervisory Board Rotterdam Philharmonisch Orkest (since 01-09-2010)

Ir. J.M. (Mel) Kroon MBA

Year of birth

Nationality

Appointed

Committees

Present postion / Experience


Drs. R.M. (René) Smit

Year of birth

Nationality

Appointed

Committees



R.P.M. (Rutger) van Slobbe

Year of birth

Nationality

Appointed

Committees



147 / 177


Members Executive Board

The Executive Board consists of three members.

13-03-1950

Dutch

President & Chief Executive Officer (CEO) since 01-01-2005

01-01-2013

Former general manager Arthur D. Little Nederland

• Member Supervisory Board Sohar Industrial Port Company SAOC (SIPC)

• Member Supervisory Board KLM Nederland N.V.

• Chairman Supervisory Board Jansen de Jong Groep

• Chairman Programme Board ‘Pieken in de Delta’ voor de Zuidvleugel

(Peaks in the Delta for the South Wing)

• Chairman Supervisory Board Stichting de Ombudsman

(The Ombudsman Foundation)

• Chairman Advisory Board Arthur D. Little Benelux N.V.

• Chairman Management Ronald McDonald Huis Sophia Rotterdam

• Member International Advisory Board (IAB) - Municipality Rotterdam

• Member Advisory Board Rotterdam Airport

• Member of the Commission on Reduction administrative costs

• Member Economic Development Board Rotterdam (EDBR)

• Advisor 8 Miles Fund

04-05-1967

Dutch

Executive Vice President & Chief Financial Officer (CFO) since15-03-2006

1-1-2011

Former Finance Director of Unilever Nederland Home and Personal Care

(2005-2006)

• Member Supervisory Board Maritiem Museum

• Member Supervisory Board Rotterdam Philharmonisch Orkest

• Member of the Supervisory Board of Vitens N.V.

• Member of the Audit Committee Ministry of Education, Culture and Science

Ir. drs. H.N.J. (Hans) Smits

Date of birth

Nationality

Appointed

End of present term

Former position


Ir. T. (Thessa) Menssen MBA

Date of birth

Nationality

Appointed

End of present term

Former position


148 / 177


05-08-1963

Nederlandse

Senior Executive Vice President & Chief Operating Officer (COO) since 01-01-2008

01-01-2011

Former CEO Maersk Central Europe

• Chairman Supervisory Board Portbase B.V.

• Member Advisory Board Maritime Economics and Logistics (MEL) Erasmus

University

• Chairman Policy Board Cruise Rotterdam B.V.

• Member Nationale Havenraad (National Ports Council)

• Member Board Nederland Maritiem Land

• Member Supervisory Board Keyrail

• Chairman Stichting garantiefonds Zeelieden

Ing. A.G.F. (André) Toet

Date of birth

Nationality

Appointed

End of present term

Former position


149 / 177

158Appendix The Port of Rotterdam Authority Annual report 2010 158Appendix II

TOTAL IMPORTS ROTTERDAM

DRY BULK

LIQUID BULK

CONTAINERS

OTHER GENERAL CARGO

RO/RO

TOTAL EXPORT FROM ROTTERDAM

DRY BULK

LIQUID BULK

CONTAINERS

OTHER GENERAL CARGO

RO/RO

PROCESSING IN THE PORT

AND INDUSTRIAL COMPLEX

IMPORT BULK GOODS

IMPORT CONTAINERS

DIRECT ONWARD TRANSPORT

TO HINTERLAND

SEA-SEA TRANSSHIPMENT

DRY BULK

LIQUID BULK

CONTAINERS

EXPORT AFTER PROCESSING

OIL- AND CHEMICAL PRODUCTS

SUPPLY FROM HINTERLAND FOR PROCESSING

INCL. BY PIPELINE FROM ANTWERP

DIRECT ONWARD TRANSPORT FROM HINTERLAND

REFINING

added value in the port and industrial complex

DISTILLATION CAPACITY CRUDE OIL

ENERGY AND GASSES GENERATION USING COAL, GAS, WASTE, WINDPOWER & GASSUPPLIED TO GRID

CHEMICALS AND BIOFUELS MORE THAN 40 BUSINESSES

OTHER INDUSTRY AND

LOGISTIC ACTIVITIES

3 DISTRIPARKS

MORE THAN 80 BUSINESSES

INCL. SHIPBUILDING, AGRO-INDUSTRY AND METAL INDUSTRY

ONWARD TRANSPORT AFTER PROCESSING IN

PORT AND INDUSTRIAL COMPLEX

CHEMICALS

PETROL, DIESEL, KEROSENE, PETCOKES

Appendix IIFlowchart of the port and industrial complex

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159The Port of Rotterdam Authority Annual report 2010 Appendix III 159

Appendix IIIExplanatory list of abbreviations, names and terms

ABBrEvIATIONs

ABBrEvIATION EXPLANATION

A

B BCTN Binnenlandse (inland) Container Terminal Nederland

BTT Botlek Tank Terminal

C CCS Carbon Capture Storage

COSO Committee of Sponsoring Organizations

D DINALOG Dutch Institute for Advanced Logistics

E EMO Europees Massagoed- Overslagbedrijf

ESI Environmental Ship Index

ERP Enterprise Resource Planning

ESPO European Sea Ports Organisation

G Gate Gas Access To Europe

GRI Global Reporting Initiative

H HOI Port waste processing- installation (Havenontvangstinstallatie)

I ISPS International Ship and Port facility Security

K KMR Knowledge infrastructure Mainport Rotterdam (Kennisinfrastructuur Mainport Rotterdam)

L LNG Liquified Natural Gas

M MER Environmental impact study (Milieu Effecten Rapportage)

MEP Monitoring and Evaluation Programme

MARPOL Marine Pollution

N NGO Non governmental organisation

O OCAP Organic CO2 for assimilation by plants

P PCS Port Community System

PHS Programma Hoogfrequent Spoorvervoer

PKB/PMR Core urban planning decisions Project Mainport Rotterdam (Planologische Kern Beslissing / Project Mainportontwikkeling Rotterdam)

PRINCE2 Projects IN Controlled Environments 2

R ROAD (Carbon captures and storage) Rotterdam Opslag en Afvang Demonstratieproject

Roro Roll-on/roll-off

RWG Rotterdam World Gateway

S SAV Shipping waste decree (Scheepsafvalstoffenbesluit)

SEI Safety and Environmental Index

T TAT Turn Around Time

TEN Trans-European Networks

TEU Twenty-foot Equivalent Unit

U ULCC Ultra Large Container Carrier

W WVVS Prevention of pollution from ships Act (Wet Voorkoming Verontreiniging door Schepen)

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DEfINITIONs

DEfINITION EXPLANATION

A Abengoa Spanish bio-ethanol manufacturer building a large factory in the port of Rotterdam area.

B BREAAM-NL Methodology to assess the sustainable performance of buildings.

Bulk goods Goods that are not shipped apart (such as containers, parcels) but separately in the hold of the ship (f.e. crude oil, coal, iron ore, grain). Another commonly used term for bulk goods is bulk cargo.

C Capture Ready Ready / suitable to capture CO2.

Carbon Capture Storage (CCS) Technique by which CO2 is captured and stored

underground, preventing it from reaching the atmosphere.

Charter Treaty / convention.

Code 24 Cooperation treaty between several European economic regions in which is investigated how to optimise the rail traffic between Rotterdam and Genoa.

Common carrier pipeline Pipeline that can be utilised by multiple customers.

Corridor Area between two (or more) territories or “main ports” that facilitate traffic of goods or people.

Committee of Sponsoring Organisations of the Treadway Commission (COSO)

Committee consisting of several private organisations that impose policies concerning internal audit and internal control as a result of some accounting and fraud scandals in 1992.

Collision Collisions are nautical accidents between ships and other (navigable) objects.

COSO-model Management model developed by COSO aimed at internal audit and internal control.

D Dry bulk goods Tangible goods transported in bulk form such as iron ore, coal and grain.

E European company for Bulk goods and Throughput (Europees Massagoed- Overslag-bedrijf (EMO))

Largest dry bulk terminal in Europe that has been located at the Maasvlakte Rotterdam since 1973. EMO is specialised in the handling and storage of iron ore and coal from all parts of the world.

Energy Port Name for the growth concept in the segment ‘gas & power’. This encompasses sustainable energy and the handling of energy coal, LNG (liquefied natural gas) and bio mass. The extension of wind energy and CCS fits in this growth concept.

Enterprise Resource Planning (ERP) Computer software to support all processes within the organisation in which all data is stored in a single database preventing double entry of data

Environmental Ship Index Index that reflects the environmental performance of ships with respect to air pollution (NOx en SOx) and CO2

.

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DEfINITIONs

F Feeder Container vessel that transports goods by order of other vessels to other container ports.

G Gate terminal Gas Access To Europe: import terminal located at the Maasvlakte for liquefied natural gas (LNG).

Gateway gateway.

General cargo schip Ship type that transports both general cargo and bulk goods (bulk cargo).

Global Reporting Initiative UN-principles that aim to improve human rights, labour conditions and the environment.

Global Compact Non-governmental organisation developing worldwide unified standards for corporate social responsibility.

H Port waste-processing installations (HOI) Locations in the port area suitable for the garbage processing of ships

Hub Mainport, centre.

I International Ship and Port facility Security Security of ships and port waste-processing installations against terrorist attacks

K Knowledge infrastructure Mainport Rotterdam (KMR)

Cooperation treaty of the regional business community (port and industry), regional educational facilities and local administrations. The foundation KMR aims to enhance the economic structure through innovation in knowledge infrastructure.

L Liquefied Natural Gas Gas shipped in a liquefied form

LMC Secondary education Foundation that offers inter-confessional and innovative education in Rotterdam and the region

M MARPOL Marine Pollution: The MARPOL-treaty is an international treaty to prevent ship pollution. The treaty consists of regulations with respect to oil discharge, sanitary and household garbage and the discharge of chemicals by ships.

Environmental Impact Study (MER) Public document in which the environmental effects of intended activities and alternatives are described.

Monitoring and Evaluation Programme (MEP) Programme that is used to check the assumptions and predictions of the MER.

Modal shift Shift of transport by road to the cleaner modalities water, rail and pipeline.

Modal split Proportion between transportation by road, rail and water.

N Liquid bulk Liquid bulk goods such as crude oil and liquefied natural gas

Nautical accident Unwanted events for ships during the journey. A distinction is made between nautical accidents, significant nautical accidents and so-called near miss situations

Non Governmental Organisation (NGO) Social organisation that operates independently with regards to the government

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DEfINITIONs

O OCAP Joint Venture between gas supplier Linde Gas and Construction company VolkerWessels that provides clean CO

2 inter alia to greenhouses in the Westland

Open access pipelines Pipelines accessible for all market parties

P Peaks in the Delta (Pieken in de Delta) Programme in which the Dutch State and regions collaborate to enhance the economy in six regions (a.o. South-wing Randstad)

Plant One Facility for testing and demonstrating sustainable process-technology

PKB/PMR: Core urban planning decisions Project Mainport Rotterdam (Planologische Kern Beslissing Project Mainportontwikkeling)

Governmental decision concerning the construction of Maasvlakte 2 and the realisation of 750 ha. recreational area for the Rotterdam region

Prince 2 Structured technique for project management. This method aims at management, governance and organisation of a project

Port Project Services Platform of United Homes (temporarily housing) with temporary personnel organisation Randstad, Vipre (collective transport) and Aqualliner. It serves as focal point for organisations in order to find temporary personnel, housing and transport from and to the Maasvlakte.

R Roro of roll-on/roll-off: Horizontal transportation of rolling equipment that can drive in and out of the ship (such as cars).

Rotterdam World Gateway Terminal operator that will operate the first container terminal on the Maasvlakte in 2013.

S Safety and Environmental Index Index by which the Harbour Master measures to what extent all regulations related to safety and environ-ment are carried out.

Scope 1 emission Direct CO2 emissions of the Port of Rotterdam

Authority

Scope 2 emission Indirect CO2 emissions from energy production

demanded by the Port of Rotterdam Authority.

Scope 3 emission Other indirect CO2 emissions.

Shipping terminal Location where ships can depart, moor and load or unload.

Shortsea Transport of goods that occur at least partly by sea or ocean. Ocean’s are not crossed though.

Steam pipe Project in the Botlek area for the exchange of steam between companies by using a transport pipeline resulting in savings in energy consumption.

General cargo Goods in which the quantity is leading above measure or weight in contrast to bulk cargo or bulk goods. General cargo is transported in boxes, crates, barrels or bags.

Supply chain Supply chain.

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DEfINITIONs

T Trans-European Networks Infrastructure across borders (such as the Betuwe-lijn).

TEU of "Twenty-foot Equivalent Unit" Measurement unit for the capacity of container vessels or container terminals. 1 TEU is equivalent to a twenty-foot container.

Turn Around Time (TAT) Average sailing time of sea-going vessels larger than 150m from sea to various port basins in the region Europoort, Botlek and City and vice versa. Journeys within the port and continuing journeys is not accounted for

U Ultra Large Container Carrier (ULCC) Ultra large container vessel

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164The Port of Rotterdam Authority Annual report 2010 Appendix IV > G3-Richtlijn Global Reporting Initiative

Appendix IV

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165The Port of Rotterdam Authority Annual report 2010 Appendix IV > G3-Guideline Global Reporting Initiative 165

G3-Guideline Global Reporting Initiative

This table contains the criteria from the G3-Guideline of the Global Reporting Initiative.

For each guideline there is an indication of the public communication, issued by the

Port of Rotterdam Authority, in which information is disclosed. Furthermore, a brief

explanation of the information is give. Some issues from the Guideline are not or less

relevant for the Port of Rotterdam Authority or are not disclosed in public communi-

cations. If possible the reasons for non-disclosure are given.

Some indicators are not reported in public communications, even though the

indicators are relevant and available. The reason for not publishing these indicators

is that it is evident that there is no internal or external need for them.

We estimate that the relevance of a number of indicators to our business activities

is low or zero. For this reason, we do not report these indicators in public

communications. As far as possible, this table provides an explanation of this.

We estimate that the relevance of a number of indicators to our business activities

in 2010 was low or zero. For this reason, we do not report these indicators in public

communications. As far as possible, this table provides an explanation of this.

Not reported in public communications

Not or less relevant to the

Port of Rotterdam Authority

Not or less relevant to the

Port of Rotterdam Authority in 2010

grI INDICATOr rEfErENCE TO ChAPTEr ANNuALrEPOrT / PuBLIC COMMuNICATION

BrIEf EXPLANATION

PrOfIEL

1. sTrATEgy & ANALysIs

1.1 Statement from the most senior decision-maker in the organisation (e.g. CEO, chair, or equivalent senior position) about the relevance of sustainability to the organisa-tion and its strategy.

2.3 Corporate Social Responsibility - Management approach [22]

In 2006, when introducing the CSR policy and ambition, the Executive Board also produced an official CSR statement.

2.2 Mission, vision and strategy [21] Sustainability is an important element of the strategic point for attention ‘Environment and Sustainability’.

1.2 Description of key impacts, risks and opportunities

7.2 Sustainability [76] Ensuring sustainability affects production chains and transport throughout the world.

2.5 Corporate Governance - Risk management [26] The Port of Rotterdam Authority manages the risks by managing the strategic, operational, financial reporting and compliance risks.

Foreword of the Executive Board [8]7.1 Environment and sustainability in brief [75]

Sustainability as a licence to grow for a harbour that wants to develop.

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166The Port of Rotterdam Authority Annual report 2010 Appendix IV > G3-Guideline Global Reporting Initiative


BrIEf EXPLANATION

2. OrgANIsATIONAL PrOfILE

2.1 Name of the organisation Colophon [182] Havenbedrijf Rotterdam N.V.

2.2 Primary brands, products, and services 2.1 The Port of Rotterdam Authority in brief [19] The Port of Rotterdam Authority manages, operates and develops the port and industrial area of Rotterdam. Brand names and products are not applicable.

2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint ventures.

2.7 Participating interests [33 - 35] Financial Statements 2010 - List of participating interests [129]”

List of participating interests

2.4 Location of organisation’s headquarters Colophon [182] World Port CenterWilhelminakade 9093072AP ROTTERDAM

2.5 Number of countries where the organisza-tion operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

2.7 Participating interests [33 - 35] The Port of Rotterdam Authority operates mainly in the Netherlands, but also in Oman.

2.3 Corporate Social Responsibility - Committed [23] In addition to the port activities in The Netherlands and Oman, we participate in a sustainability project in Senegal where our employees’ knowledge and skills is offered to develop a port.

2.6 Nature of ownership and legal form 2.4 Organisation [25] The Port of Rotterdam Authority is a public limited company with two shareholders: the Municipality of Rotterdam and the State of the Netherlands.

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

2.1 The Port of Rotterdam Authority in brief [19]4.2 Our relationship with the customer [49]

The Port Authority lets out port sites to companies, particularly storage companies and cargo terminals and the chemical and petrochemical industry, including energy producers.

4.3 Our market position [51 - 52] The flows of goods handled in the port of Rotterdam are reported, together with their destination.

2.8 Scale of the organisation 8 Finance [92 - 98] Financial figures.

Financial Statements 2010 [105 - 133] Financial figures.

Cockpit Finance [135 - 136] Financial figures.

Cockpit Personnel [137] Number of employees.

2.9 Significant changes during the reporting period regarding size, structure, or ownership.

Not or less relevant to the Port of Rotterdam Authority in 2010

No significant changes occured in 2010.

2.10 Awards received during the reporting period www.portofrotterdam.com The Port of Rotterdam Authority presents awards each year to companies in the port, such as the Port Dues Award and the Port Image Award. http://www.portofrotterdam.com/nl/actueel/pers-en-nieuwsberichten/Pages/20100128_03.aspx

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BrIEf EXPLANATION

3. rEPOrT PArAMETErs

report profile

3.1 Reporting period (e.g. fiscal/calendar year) for information provided.

Financial Statements 2010 [105 - 133] The financial year of the Port of Rotterdam Authority runs from 1 January to 31 December.

3.2 Date of most recent previous report (if any). www.portofrotterdam.com Annual Report 2009 (2 March 2010). A single annual report for financial and CSR reports. www.portofrotterdam.com/en/Port-authority/finance/Pages/yearly-result.aspx”

3.3 Reporting cycle (annual, biennial, etc.) Introduction [11] Annually.

3.4 Contact point for questions regarding the report

Colophon [182] e-mail and other contact details.

www.portofrotterdam.com Reply form. www.portofrotterdam.com/en/general/Pages/contact.aspx

report scope and boundary

3.5 Process for defining report content About the Annual Report and Auditor's Report [144 - 149]

Development of the process, including internal and external assurance.

3.6 Boundary of the report Introduction [11] About the Annual Report and Auditor’s Report [144 - 149]

Scope and significance is explained in the Introduction. The boundary of items is explained in About the Annual Report and Auditor's Report.

3.7 State any specific limitations on the scope or boundary of the report.

Introduction [11] About the Annual Report and Auditor’s Report [144 - 149]

Scope and significance is explained in the Introduction. The boundary of items is explained in About the Annual Report and Auditor's Report.

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations.

Financial Statements 2010 [105 - 133] About the Annual Report and Auditor’s Report [144 - 149]

See notes to the balance sheet and the statement of income and the explanation in About the Report.

3.9 Data measurement techniques and the bases of calculations, including assumpti-ons and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

About the Annual Report and Auditor’s Report [144 - 152]

All the figures have been substantiated internally and verified by an external auditor. The accounting policy is explained in the annual report 2010 (Accounting policy) and the KPIs are explained in the Cockit Critical Performance Indicators KPIs 2010.

3.10 Explanation of the effect of any re-state-ments of information provided in earlier reports, and the reasons for such re-state-ment (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).



3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.



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BrIEf EXPLANATION

grI content index

3.12 Table identifying the location of the Standard Disclosures in the report.

Appendix IV [164 - 181] GRI table

Assurance

3.13 Policy and current practice with regard to seeking external assurance for the report.


Development of the process including internal and external assurance.


Auditor’s report

4. gOvErNANCE, COMMITMENTs

& ENgAgEMENT

governance

4.1 Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organisa-tional oversight.

2.4 Organisation [25] Reference to the organisational chart and explanation by the Executive and Supervisory

2.5 Corporate Governance - Corporate Governance Code [26]

Reference to the regulations of the Executive and Supervisory Boards on www.portofrotterdam.com

4.2 Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organisation’s management and the reasons for this arrangement).

2.4 Organisation - Structure [25] The Chairman of the Supervisory Board has no executive function within the company.

4.3 For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

2.4 Organisation - Structure [25] The Rotterdam Port Authority has a two-tier board structure.

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

2.4 Organisation - Structure [25] The shareholders exercise their influence on the company through the General Meeting of Shareholders. The authority of the General Meeting of Shareholders is laid down by law and in the articles of association.

2.4 Organisation - Structure [25] A Works Council operates within the Port Authority in accordance with the Works Councils Act.

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organisation’s performance (including social and environmental performance).

Financial statements 2010 - 18 Remuneration of Directors [127 - 129]

Remuneration of supervisory directors and executive directors.

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.


Although the Port Authority is not a listed company, we have decided where possible and meaningful to implement the provisions of the Corporate Governance Code.

2.4 Organisation - Structure [25] The independent Supervisory Board monitors the Executive Board.

4.7 Process for determining the required qualifications and expertise of the members of the highest governance body so it is able to guide the organisation’s strategy on economic, environmental, and social topics.


This is stated in the regulations of the Executive and Supervisory Boards, see http://www.portofrotterdam.com/en/Port-authority/organisation/Pages/corporate-governance.aspx

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BrIEf EXPLANATION

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

2.2 Mission, vision and strategy [20] The Port of Rotterdam Authority has formulated a mission and four strategic points of attention to achieve its mission.

2.3 Corporate Social Responsibility - Management approach [22]

CSR statement.

2.4 Organisation - Core values and business code [25]

Since 2010, the Port of Rotterdam Authority has subscribed to the 10 'United Nations business principles' issued by UN Global Compact.

2.4 Organisation - Core values and business code [25]

In 2010, the Port of Rotterdam Authority stated four new core values, these values will be integrated in the company code in 2011.

7.2 Sustainability - Introduction [76] Consistency in issues concerning sustainability

4.9 Procedures of the highest governance body for overseeing the organisation’s identifica-tion and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.


Although the Port of Rotterdam Authority is not a listed company, we have chosen where possible and meaningful to implement the provisions of the Corporate Governance Code.

2.3 Corporate Social Responsibility - Sustainable [22 -23]

In management reports and decisions made by the Executive Board structual attention is given to our sustainability goals and sustainability performance.

2.5 Corporate Governance - Risk Management [26 - 29]

We control the risks by managing the strategic, operational, financial reporting and compliance risks.

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

www.portofrotterdam.com Regulation Supervisory Bord section D (Remuneration) http://www.portofrotterdam.com/nl/Havenbedrijf/organisatie/Documents/Raad-van-Commissarissen-reglement.pdf

Commitments to external initiatives

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation.

www.maasvlakte2.com (projectorganisatie van Havenbedrijf Rotterdam)

At various places on the Maasvlakte 2 website the results from the dialogue with stakeholders are stated. Preliminary to the construction of Maasvlakte 2, this dialogue devoted extensive atten-tion to the economic, social and environmental effects of the construction.

4.12 Externally developed economic, environ-mental, and social charters, principles, or other initiatives which the organisation subscribes to or endorses.

7.3 Rotterdam Climate Initiative [83 - 84] The Port Authority is partner of the Rotterdam Climate Initiative which forms part of the C40 Climate Leadership Group / Clinton Climate Initiative.

4.13 Memberships in associations (such as industry associations) and/or national/ international advocacy organisations.

7.4 Dialogue - Dialogue with Europe [86] The Port Authority is a member of and provides the chairman of the ESPO.

Overleg met belanghebbenden

4.14 List of stakeholder groups with whom the organisation is engaged.

7.4 Dialogue - Dialogue with stakeholders [85] As stated The Port Authority distinguishes groups of stakeholders: clients, employees, governmental bodies (State, province and municipalities), local residents, sector associations and NGOs.

4.15 Basis for identification and selection of stakeholders with whom to engage.

7.4 Dialogue - Dialogue with stakeholders [85] Stakeholders are defined as people and organisati-ons who affect our activities and who are being affected by our activities.

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BrIEf EXPLANATION

4.16 Approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

7.4 Dialogue - Dialogue with stakeholders [85] Paragraph 7.4 contains a description of the various ways in which the Rotterdam Port Authority leads the dialogue with its stakeholders. The dialogue is a part of our business and takes place on a frequent base. Examples of these dialogues are: the annual shareholders meeting, the customers satisfaction survey which takes place every two years (4.2 Our relationship with our customers [49]) Employees satisfaction survey (2.6 Employees [31]), an evaluation of the Annual Report 2009 amongst 16 readers (customers, banks, governmental organisations) and the '(Dial)moog op de haven', in which four times a year members of the Executive Board hold discussions with companies in the

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting.

Sustainable dialogue Maasvlakte 2 http://www.maasvlakte2.com/nl/index/show/id/79/Duurzame+dialoog

At various places on the Maasvlakte 2 website the results of dialogues with stakeholders are stated. Preliminary to the construction of Maasvlakte 2, this dialogue devoted extensive attention to the economic, social and environmental effects of the construction.

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BrIEf EXPLANATION

ECONOMIC PErfOrMANCE INDICATOrs Information on management approach The role of the Port of Rotterdam Authority is to manage, operate and develop the port and industrial area of Rotterdam. The direct added value of Rotterdam’s port and industrial complex in 2008 was approximately € 15.5 billion. Direct employment from the port complex in 2008 was roughly 90,000 persons. In addition, the port of Rotterdam generates around 55,000 indirect jobs.

The Port of Rotterdam lets out port sites on long leases to companies, particularly storage companies and cargo terminals and the chemical and petrochemical industry, including energy producers. The main income flows are rents and harbour dues. The Port of Rotterdam Authority is investing in the development of new port sites, particularly Maasvlakte 2, in public nfrastructure such as roads in the port area and customer-specific infrastructure such as quay walls and jetties. In order to handle shipping as efficiently as possible, substantial investment is being made in a traffic guidance system, traffic centres and patrol vessels. At the end of 2010 a total of 1,224 persons were employed by the Port of Rotterdam Authority.

For a further explanation, please refer to:9 Finance [92 - 98]• Cockpit Finance [135 - 136]2 The Port of Rotterdam [14 - 17]4.4 Marketposition [51 - 54]• Cockpit Throughput and marketshare [139 - 142]2.3 Corporate Social Responsibility [22 - 24]

ECONOMIC ASPECTS

Aspect: Economic Performance

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

Financial Statements 2010 [105 -133] Overview of all financial information from 2010 and comparative figures from 2009.

EC2 Financial implications and other risks and opportunities for the organisation’s activities due to climate change.


The Port of Rotterdam Authority investigated the (financial) consequences of climate change. From this investigation it concluded that the consequen-ces in the years to come are limited and indirect. The Port Authority does, however, recognise the importance of minimising the footprint of its own business and the chain. Our efforts in this matter are stated in chapter 7.

7.3 Rotterdam Climate Initiative [83] CO2 reduction measures to achieve the ambition of

a 50% reduction by 2025 and Carbon Capture & Storage.

7.2 Sustainability - Sustainable transport [80 - 82] Stimulating environmentally friendly (sea and inland)shipping.

EC3 Coverage of the organisation’s defined benefit plan obligations.

Not or less relevant to the Port of Rotterdam Authority

Employee pensions are insured by ABP.

EC4 Significant financial assistance received Not or less relevant to the Port of Rotterdam Authority in 2010

In 2010, there was no financial support from the State. The State is contributing to the construction of the outer contour and the public infrastructure of Maasvlakte 2 (Financial Statement - 9 Off-balance sheet commitments and contingencies).

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BrIEf EXPLANATION

Aspect: Market Presence

EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.


Range of ratios to locations is not relevant to the Port of Rotterdam Authority since we operate mainly in The Netherlands. Employees salaries are in accordance with the Collective Labour Agreement (see paragraph 2.6 Employees - Employment

EC6 Policy, practices, and proportion of spending at locally-based suppliers at significant locations of operation.


This indicator is less relevant since The Port of Rotterdam Authority is obliged to conform to European Procurement Directives and therefore has no seperate procurement policy for local suppliers. The Port of Rotterdam Authority operates mainly in the neighbourhood of Rotterdam and has a direct and indirect impact on the local economy. See chapter 1 The Port of Rotterdam - Location and position of the port of Rotterdam [15].

EC7 Procedures for recruiting locally and the proportion of senior management hired from the local community at significant locations of operation.


This indicator is less relevant since The Port of Rotterdam Authority mainly operates in The Netherlands. The Port of Rotterdam Authority does not have separate procedures for hiring employees from the local community. Recruitment focuses on The Netherlands and the top management is Dutch. We actively participate in activities to improve the regional labour market, amongst others by the ‘Akkoord van Rotterdam’ (7.6 Labour market and education [90-91]).

Aspect: Indirect Economic Impacts

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

6.1 Traffic and accessibility in brief [65] The efforts of The Port of Rotterdam Authority on accessibility are not only important for the harbour but also have a general benefit.

2.3 Corporate Social Responsibility - Committed [23]

Advice from the Port of Rotterdam Authority in OMVS project in Senegal.

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

1. The port of Rotterdam - Location and position of the port of Rotterdam [15- 17]

The Port of Rotterdam Authority has a direct and indirect impact on the local economy.

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BrIEf EXPLANATION

ENvIrONMENTAL PErfOrMANCE

INDICATOrs

Information on management approachWe invest, together with our partners, in public consensus and the best possible preconditions for a port which has the ambition to develop. Sustainability is a key element in this ambition. For the Port of Rotterdam Authority, sustainability means improving our own performance as well as promoting sustainable enterprise in the port and industrial complex. Investment in sustainability is, in our view, necessary to retain public support for port activities as well as enabling the port to grow. In 2010 the Port of Rotterdam Authority focussed on ‘sustainable business’, ‘sustainable use of space’ and ‘sustainable transport’.

The Port Authority aims to play a leading role in improving sustainability performance in the port industries by keeping the footprint of the Port Authority’s activities as small as possible, actively investing in reducing the environmental impact of port activities and actively working on attracting sustainable economic activities in the port area, such as biomass handling, wind power and the production of second-generation biofuels. Read more about our growth concepts in chapter 4 Customer and about our approach to sustainability in Chapter 7: Environment and Sustainability.

The Port of Rotterdam Authority, together with its partners, is increasingly active in improving land-side accessibility for the four modalities (rail, road, inland shipping and pipeline). Read more about our approach to sustainable accessibility in Chapter 6; Traffic and Accessibility.

More detailed information on environmental aspects can be found in:2.3 Corporate Social Responsibility - Management approach [22]2.3 Corporate Social Responsibility - Sustainability [22 - 23]3.5 Clean (environmentally safe) [44 - 45]4.3 Our market position - Energy Port [52 - 53]5.2 Maasvlakte 2 - Sustainable execution and development [59]5.2 Maasvlakte 2 - Monitoring [60]6. Traffic and accessibility [64 - 73]7.2 Sustainability [76 - 82] 7.3 Rotterdam Climate Initiative [83 - 84]7.5 Innovation [88 - 89]

EvIRONMENTAL ASPECTS

Aspect: Materials

EN1 Materials used by weight or volume. Not or less relevant to the Port of Rotterdam Authority

The Port of Rotterdam Authority is a service compa-ny and does not, therefore, use materials directly in products.

EN2 Percentage of materials used that are recycled input materials.


The Port of Rotterdam Authority is a service compa-ny and does not, therefore, use materials directly in products.

Aspect: Energy

EN3 Direct energy consumption by primary energy source.

Not reported in public communications The direct use of energy by the Port of Rotterdam Authority is limited due to the nature of the business. The Port of Rotterdam Authority does not report on this information separately. Information on the use of energy is internally available for the calculation of the CO2

footprint (EN 16) and consists of the use of fuel (cars and vessels) and the use of gas for buildings. This information is not expressed in kilojoules.

EN4 Indirect energy consumption by primary

source.

Not reported in public communications The direct use of energy by the Port of Rotterdam Authority is limited due to the nature of the business. The Port of Rotterdam Authority does not report on this information separately. Information on the use of energy is internally available for the calculation of the CO

2 footprint (EN 16) and

consists of the use of fuel (cars and vessels) and the use of gas for buildings. This information is not expressed in kilojoules.

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EN5 Energy saved due to conservation and efficiency improvements.

7.2 Sustainability [76 - 82]7.3 Rotterdam Climate Initiative [83 - 84]7.5 Innovation [88 - 89]”

The Port of Rotterdam Authority has started several energy saving measures. However, the benefits of these measures cannot always be measured as the decrease is dependant on several factors. Examples of energy saving measures are the measures under the CO

2 footprint of Port of Rotterdam Authority and

the projects in the Rotterdam Climate Initiative.

EN6 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives.

4.3 Our market position - Energy Port [52 - 53] As a growth concept Energy Port is consciously aiming to attract the production of sustainable energy and throughput of related products.

7.3 Rotterdam Climate Initiative [83 -84] Measures for energy efficiency, renewable energy and Carbon Capture & Storage.

7.2 Sustainability - Sustainable transport [80 - 82] The Port of Rotterdam Authority stimulates sustainability by giving discounts to reward reductions of fuel usage and emissions from vessels (ESI).

EN7 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives.

7.2 Sustainability - Sustainable operations [77 - 78]

Scope 2: Energy indirect emissions: Port of Rotterdam Authority limits the indirect use of energy by purchase of green power.

7.2 Sustainability - Sustainable use of space 78 - 80]

Sustainable development of RDM.

Aspect: water

EN8 Total water withdrawal by source. Not or less relevant to the Port of Rotterdam Authority Water withdrawal is limited to personal use by employees.

EN9 Water sources significantly affected by withdrawal of water.

Not or less relevant to the Port of Rotterdam Authority Water withdrawal is limited to personal use by employees.

EN10 Percentage and total volume of water recycled and reused.

Not or less relevant to the Port of Rotterdam Authority Water withdrawal is limited to personal use by employees.

Aspect: Biodiversity

EN11 Location and size of land owned, leased, managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas.

Not or less relevant to the Port of Rotterdam Authority The port of Rotterdam is situated in an urban area. Only a (very) limited part of this area is bounded by nature. In developing the (existing) harbour area, the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' (http://www.portofrotterdam.com/en/Port/port-development/Pages/maasvlakte-2.aspx) and in various agreements about Maasvlakte 2 (www.maasvlakte2.com, amongst others http://www.maasvlakte2.com/uploads/brochure_maasvlakte_2_de_duurzame_haven.pdf en http://www.maasvlak-te2.com/nl/dossier/show/id/4).

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

Not or less relevant to the Port of Rotterdam Authority The port of Rotterdam is situated in an urban area. Only a (very) limited part of this area is bounded by nature. In developing the (existing) harbour area the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' (http://www.portofrotterdam.com/en/Port/port-development/Pages/maasvlakte-2.aspx) and in various agreements about Maasvlakte 2 (www.maasvlakte2.com, amongst others http://www.maasvlakte2.com/uploads/brochure_maasvlakte_2_de_duurzame_haven.pdf en http://www.maasvlak-te2.com/nl/dossier/show/id/4).

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EN13 Habitats protected or restored. Not or less relevant to the Port of Rotterdam Authority

The port of Rotterdam is situated in an urban area. Only a (very) limited part of this area is bounded by nature. In developing the (existing) harbourarea the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' (http://www.portofrotterdam.com/en/Port/port-development/Pages/maasvlakte-2.aspx) and in various agreements about Maasvlakte 2 (www.maasvlakte2.com, amongst others http://www.maasvlakte2.com/uploads/brochure_maasvlakte_2_de_duurzame_haven.pdf en http://www.maasvlak-te2.com/nl/dossier/show/id/4).

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity

Not or less relevant to the ort of Rotterdam Authority

The port of Rotterdam is situated in an urban area. Only a (very) limited part this area is bounded by nature. In developing the (existing) harbourarea the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' (http://www.portofrotterdam.com/en/Port/port-development/Pages/maasvlakte-2.aspx) and in various agreements about Maasvlakte 2 (www.maasvlakte2.com, amongst others http://www.maasvlakte2.com/uploads/brochure_maasvlakte_2_de_duurzame_haven.pdf en http://www.maasvlak-te2.com/nl/dossier/show/id/4).

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.


In 2009, in relation to the construction of Mass-vlakte 2, we obtained a general release of the Flora and Fauna Act for the natterjack toad and the yellow widelip orchid. Both have been given their own place in the port area.

Aspect: Emissions, Effluents, and waste

EN16 Total direct and indirect greenhouse gas emissions by weight.


Included is the footprint (scope 1 & 2) of our business operations.

EN17 Other relevant indirect greenhouse gas emissions by weight.


Included is the footprint (scope 3) of our business operations.

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

4.3 Our market position - Energy Port [52 - 53] As a growth concept Energy Port is consciously aiming to attract the production of sustainable energy and throughput of related products.

7.3 Rotterdam Climate Initiative [83 - 84] Measures for energy efficiency, renewable energy and Carbon Capture & Storage.


Objectives and measures for CO2 reduction.

7.2 Sustainability - Sustainable transport [80 - 82] The Port of Rotterdam Authority stimulates sustainability by giving discounts to reward reductions of fuel usage and emissions from

EN19 Emissions of ozone-depleting substances by weight.


This indicator is not of essential importance to our business operations, because we are a service

EN20 NO, SO, and other significant air emissions by type and weight.


This indicator is not of essential importance to our business operations, because we are a service

EN21 Total water discharge by quality and destination.


Water withdrawal is limited to personal use by employees.

EN22 Total weight of waste by type and disposal method.


This indicator is not of essential importance to our business operations, because we are a service provider. The Port of Rotterdam Authority is active in prevention of pollution by ship’s waste (see 3.5 Clean (environmentally safe) [44]).

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EN23 Total number and volume of significant spills.

3.5 Clean (environmentally safe) [44 - 45] The Port Authority is active in containing spills with the aim of minimising the risk of consequential damage. There were 240 recorded spills in 2010; an actual clean-up operation was carried out for 53 of the spills.

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.


As the State Harbour Master, we ensure the application of the law and regulations in this respect (see 3.5 Clean (environmentally safe) [44]).

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organisation’s discharge of water and runoff.

3.5 Clean (environmentally safe) [44 - 45] The Port Authority is active in containing spills with the aim of minimising the risk of consequential damage. There were 240 recorded spills in 2010; an actual clean-up operation was carried out for 53 of the spills.

Aspect: Products and services

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Not or less relevant to the Port of Rotterdam Authority in 2010.

In developing the (existing) harbour area, the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' and in various agreements about Maasvlakte 2. These agreements date from previous years and are monitored in the "Milieu Effect Rapportages" (5.2 Maasvlakte 2 - Monitoring

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.


We do not sell any products (see also indicator 2.2).

Aspect: Compliance

EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.


No significant fines were imposed on us in 2010. Being Stae Harbour Master we ensure the application of the law and regulations in ths respect (see 3.5 Clean (environmentally safe)).

Aspect: Transport

EN29 Significant environmental impact of transporting products and other goods and materials used for the organisation’s operations, and transporting members of the workforce.

7.2 Sustainability - Sustainable operations [77 - 78] The use of fuel of vehicles is stated in the CO2

footprint.

6.1 Traffic and accessibility in brief [65] The Port of Roterdam Authority is working on a shift in the transport-chain from transport by truck to transport by cleaner modalities (rail, inland shipping, pipeline).

Aspect: Overall

EN30 Total environmental protection expenditures and investments by type.

4.3 Our market position - Energy Port [52 - 53] Investments in gas & power and (bio)fuels.

7.3 Rotterdam Climate Initiative [83 - 84] Investement in CO2 reduction.

7.2 Sustainability - Sustainable operations [77 - 78] Investment in measures in respect of the planet.

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LABOr AsPECTs Information on management approachWe invest, together with our partners, in public consensus and the best possible preconditions for a port that has the ambition to develop, Employment is an important element in this ambition. The Port of Rotterdam Authority focusses on quality and diversity of employees. In addition, employee satisfaction is an important issue. The terms of employment of our employees are registered in a Collective Labour Agreement which is agreed with the trade unions. The Port of Rotterdam Authority operates mainly in the Netherlands and is an employer under the Dutch laws and regulations on advocacy and working conditions.

More detailed information about social aspects can be found in:2.6 Employees [30 - 32]7.6 Labour market and education [90 - 91]• Cockpit Personnel [137]

LABOur PrACTICEs AND DECENT wOrK

Aspect: Employment

LA1 Total workforce by employment type, employment contract, and region.

Cockpit Personnel [137] The classification by region is not of essential importance to the Port of Rotterdam Authority since the activities are mainly situated in the Rotterdam area. Information about the sort of labour and the classification by type of labour agreement is internally available but is not considered an essential item on which seperate reporting is issued.

LA2 Total number and rate of employee turnover by age group, gender, and region.

Not reported in public communications In 2010, the inflow was 46 employees and the outflow 55 employees. These numbers are not available per age range.

Not reported in public communications Information about this indicator is laid down in our Collective Labour Agreement. This is made available internally over the Intranet to our employees. In accordance with the CLA, all payments made to full-time employees apply pro rata to part-time employees.

Aspect: Labour/Management relations

LA4 Percentage of employees covered by collective bargaining agreements

2.6 Employees - Employment conditions [31] LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

Not reported in public communications Information about this indicator is laid down in our CLA. This is made internally available to our employees by intranet.

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Aspect: Occupational health and safety

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programmes.

2.6 Employees - Promoting the interests of our employees [32]

Port of Rotterdam Authority operates mainly in the Netherlands. Working conditions are laid down in legislation. Within the Port of Rotterdam Authority, there is one working conditions coordinator, one company doctor and four confidential counsellors.

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region.

2.6 Employees - Introduction [30]2.6 Employees - Promoting the interests of our

employees [32]

In 2010, we suffered one fatal accident in our company due to a helicopter crash during an event organised by the Port of Rotterdam Authority. Separate reporting on figures about injuries, occupational diseases and absence is less relevant to the Port Authority. By the nature of our services, work-related accidents seldom occur. In 2010 five workrelated accidents led to short absences and one led to a long absence. Considering these figures related to the total number of our employees we consider these figures (except for fatal accidents) not essential for the Annual report.

Cockpit Personnel [137] Absenteeism figures

3.3 Nautically safe [40] Report of nautical incidents.

LA8 Education, training, counselling, prevention, and risk-control programmes in place to assist workforce members, their families, or community members regarding serious diseases.

Not or less relevant to the Port of Rotterdam Authority Within the Port of Rotterdam Authority there are no specific occupational related risks or serious illnesses.

LA9 Health and safety topics covered in formal agreements with trade unions.

2.6 Employees - Employment conditions [31] New Collective Labour Agreement is explained briefly.

Aspect: Training and Education

LA10 Average hours of training per year per employee by employee category.

Not reported in public communications Education of employees is registered in numbers, not in average number of hours.

LA11 Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

2.6 Employees - Quality [30] The Port of Rotterdam Authority has various development programmes for employees: AanZ, Young Potential programme, Management Development programme.

LA12 Percentage of employees receiving regular performance and career development reviews.

2.6 Employees - Quality [30]Cockpit Critical Performance Indicators (KPI’s) 2010 [143]

In 2010, 83% of the employees had a performance interview, in which their achievements and careers were discussed.

Aspect: diversiteit en kansen

LA13 LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.

Appendix 1 [154 - 157] Composition of the Executive Board and Supervi-sory Board.

Cockpit Personnel [137] Male/female ratio and management age group.

LA14 Ratio of basic salary of men to women by employee category.

2.6 Employees - Employment conditions [31] Information about this indicator is laid down in our CLA. This is made internally available to our employees by intranet. No distinction is made in our CLA between men and women.

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huMAN rIghTs Information on management approachThe Port of Rotterdam Authority operates primarily in the Netherlands, and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance.

Aspect:

Information on management approach

HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.

Not or less relevant to the Port of Rotterdam Authority The Port Authority operates primarily in the Netherlands and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance.

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.


HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.


Aspect: Non-discrimination

HR4 Total number of incidents of discrimination and actions taken.

Not reported in public communications Havenbedrijf Rotterdam heeft 4 vertrouwens-personen gericht op ongewenst gedrag en integriteit. Meldingen zijn vertrouwelijk. Informatie over aantallen is niet openbaar.

Aspect: freedom of Association and

Collective Bargaining

HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.

2.6 Employees - Employment conditions [31] Bij de Ondernemings-CAO zijn de vakorganisaties, zoals ABVAKABO en CNV Publieke zaak en de Onafhankelijke Vereniging als CAO-partij betrokken.

Aspect: Child Labour

HR6 HR6 Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination of child labour.


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Aspect: forced and compulsory Labour

HR7 Operations identified as having significant risk for incidents of forced or compulsory labour, and measures taken to contribute to the elimination of forced or compulsory labour.


Aspect: security Practices

HR8 Percentage of security personnel trained in the organisation’s policies or procedures concerning aspects of human rights that are relevant to operations.


Aspect: Indigenous rights

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.


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sOCIETy Information on management approachWe invest, together with our partners, in public consensus and the best possible preconditions for a port that has the ambition to develop. Dialogue and consensus are important elements in this ambition. It is of great importance to us to create consensus. In various ways we started a dialogue with our stakeholders (see for examples paragraph 8.4 Dialogue). In 2010 we introduced a structural method to style the environmental dialogue with relevant stakeholders. In several places in this Annual report examples are given of dialogues with our environment, where this method is put to use.

Meer gedetailleerde informatie over sociale aspecten treft u aan in:5.2 Maasvlakte 2 - Agreements with stakeholders [59]5.3 Existing port area [61 - 63]6.2 Road [66 - 67]6.3 Rail [68 - 69]6.4 Inland Shipping [70 - 71]7.4 Dialogue - Dialogue with stakeholders [85 - 86]

Aspect: Community

SO1 Nature, scope, and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

5.2 Maasvlakte 2 - Agreements with stakeholders [59]

Overeenkomsten en dialoogakkoorden.

5.2 Maasvlakte 2 - Monitoring [60] De Monitoring en Evaluatie Programma's (MEP's) hebben als doel om de daadwerkelijke optredende effecten van de aanleg, aanwezigheid en het gebruik van de Maasvlakte 2 inzichtelijk te maken.

7.4 Dialogue - Dialogue with stakeholders [85 - 86] Lijst met belanghebbenden.

Aspect: Corruption

SO2 Percentage and total number of business units analysed for risks related to corruption.

Not or less relevant to the Port of Rotterdam Authority The Port of Rotterdam Authority uses a risk and control system in which operational risks are stated. Corruption is not a seperate item as the Port of Rotterdam Athority mainly operates in the Netherlands a country given the lowest risk classification in the AON Political Risk Map.

SO3 Percentage of employees trained in the organisation’s anti-corruption policies and procedures.

Not or less relevant to the Port of Rotterdam Authority The Port of Rotterdam Authority does not have a seperate anti-corruption policy (see SO2) but devotes attention to anti-corruption policy and procedures in the company code. See http://www.portofrotterdam.com/en/Port-authority/our-company/Documents/Code-of-Conduct_2009.pdf. Our employees do not take seperate courses on corruption issues.

SO4 Actions taken in response to incidents of corruption.

Not or less relevant voor the Port of Rotterdam Authority in 2010

No reports of any cases of corruption were made in 2010.

Aspect: Public Policy

SO5 Public policy positions and participation in public policy development and lobbying.

7.4 Dialogue - Dialogue with Europe [86 - 87] Specification of activities in respect of Europe and the European Sea Port Organisation.

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

www.portofrotterdam.com Our sponsorship policy is described at www.portofrotterdam.com, which also states that we do not sponsor any activities of a political or religious character.

Aspect: Anti-competitive Behaviour

SO7 Total number of legal actions for anti-com-petitive behaviour, anti-trust, and monopoly practices and their outcomes.

Financial Statements 2010 - 9 Off-balance sheet commitments and contingencies [122 - 123]

Ongoing claims and disputes

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Aspect: Compliance

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.


No significant fines were imposed on us in 2010.

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PrODuCT rEsPONsIBILITy Information on management approachThe Port of Rotterdam Authority does not sell any products. In addition, the indicators to do with product responsibility are less relevant to our services. When indicators areapplicable to our services in relation to safe handling of shipping, it is reported in detail in Chapter 3

You can find more detailed information on this in:3.3 Nautically safe [40 - 41]3.4 Safe transport [42 - 43]3.5 Clean (environmentally safe) [44 - 45]

Aspect: Customer health and safety

PR1 Life cycle stages in which the health and safety impacts of products and services are assessed for improvement, and percentage of significant product and service categories subject to such procedures.

Not or less relevant to the Port of Rotterdam Authority We do not sell any products. In addition, this indicator is less relevant to our service.

PR2 Total number of incidents of non-complian-ce with regulations and voluntary codes concerning the health and safety impacts of products and services, by type of outcomes.


Aspect: Product and Service labelling

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.


PR4 Total number of incidents of non-complian-ce with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes.


PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

4.2 Our relationship with the customer [50] The results of the biannual Customers Satisfaction Survey are explained.

Aspect: Marketing Communications

PR6 Programmes for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Not or less relevant to the Port of Rotterdam Authority Less relevant considering the nature of the activities of the Port of Rotterdam Authority.

PR7 Total number of incidents of non-complian-ce with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes.

Not or less relevant to the Port of Rotterdam Authority Less relevant considering the nature of the activities of the Port of Rotterdam Authority.

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Aspect: Customer Privacy

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

Not or less relevant to the Port of Rotterdam Authority Customer complaints are attended to. Considering the nature of the activities of the Port of Rotterdam Authority, customer complaints concerning privacy are not usual..

Aspect: Compliance

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

Not or less relevant to the Port of Rotterdam Authority No significant fines were imposed on us in 2010.

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185The Port of Rotterdam Authority Annual report 2010 Colophon

Colophon


Corporate Finance & Control

Internal Audit

Corporate Communication Strategy (Digitale Media)

Smidswater

Netvlies internetdiensten

Het Kader, audio visual productions

Ben Wind, Freek van Arkel, Eric Bakker, Martijn Hessing, Aeroview, John Janssen

Visiting address


World Port Center (WPC)

Wilhelminakade 909

3072 AP Rotterdam

Port number 1247

Mail address

Postbus 6622

3002 AP Rotterdam

The Netherlands

T 010 - 252 10 10

E [email protected]

W www.portofrotterdam.com

Publication

Editing and control consistency

Verifying relevance, accuracy and completeness

Realisation online and PDF publication

Graphic design

Technical realisation and hosting

AV production video cases

Photography

Contact

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