1 The dredging industry and the European port system: challenges and opportunities Prof. Dr. Theo Notteboom President, ITMMA - University of Antwerp Part-time.

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The dredging industry and the European port system: challenges and opportunities

Prof. Dr. Theo NotteboomPresident, ITMMA - University of AntwerpPart-time professor in Maritime Transport - Antwerp Maritime Academy

CEDA Dredging Days

Antwerp, 1-3 October 2008

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CEDA - Antwerp – 2 Oct 2008Prof. Dr. T. Notteboom

Dredging companies have been involved in major port-related projects in Europe, but its seems the center of activity is shifting to elsewhere

DEMERiver Scheldt (BE/NL) Maintenance and deepening dredging work in the access channels of the River Scheldt

and in the access channels to the Antwerp locks Belgian Coast (BE) Maintenance access channelsDeurganckdock - Antwerp (BE) Dredging and dry earthmoving for the construction of the dockVerrebroekdok - Antwerp (BE) Dredging and dry earthmoving for the construction of the dockKallo Lock - Antwerp (BE) Maintenance dredging in the access channelKluizendock - Ghent (BE) Dredging for the quay wall and construction of a mooring dock including reclamation works. Port of Ostend (BE) Renovation of the outer portPort 2000 - Le Havre (F) Major port extension in the estuary of the river Seine Altenwerder - I and II - Hamburg (D) Extension of the Port of Hamburg, dredging and reclamation worksAusserweser (D) Capital and maintenance dredging in the approach channel of the Outer Weser.

Reclamation of the dredged material in the Uberseehafendock in Bremen.Rossaveel (Ireland) Harbour extension at the Ferry Terminal Ancona (I) Construction of inner dyke. Construction of caisson quay. Giioa Tauro (I) Construction of a new quay. Port of Monopoli (I) Restructuring and adjustment of the port. Port of Ortona (I) Partial removal of northern quay. Port of Trapani (I) Dredging works, extension of main breakwater and construction of new minor breakwater and quay wall construction. Porto Nuovo di Crotone (I) Dredging, pilling and construction of blocks for building a quay wall. Muelle Sur de la Cabezuela (E) Construction of a 451m long quay wall with floating caissons and a quay terrain of 5ha.Sagunto - Valencia (E) Building of a new quay wall.

Jan De NulRiver Scheldt (BE/NL) Maintenance and deepening works in the Western Scheldt and the Scheldt Estuary between Vlissingen and New Sealock at WintamBelgian Coast (BE) Maintenance dredging in the Northsea and the access channels and ports of Oostende and ZeebruggeZeebrugge (BE) Execution of Dredging Works in the Albert II DockVerrebroekdok - Antwerp (BE) Involvement in the construction of the quay wall at VerrebroekAmericadock - Antwerp (BE) Involvement in the renovation of the Americadok.River Elbe (D) Subcontract for the maintenance dredging in the Elbe in Hamburg with transport to and disposal in the NorthseaCadiz (E) Extension of the Quay Marques de Comillas in Cadiz . Barcelona (E) Dredging and demolition works around collapsed quay-wall of Muelle Prat Sagunto - Valencia (E) Sagunto - Extension of the Southern Quay in the Port of SaguntoValencia (E) Dredging in the Channel of Copa AmericaLeixoes (P) Maintenance dredging in the Port of LeixoesPort of Bilbao (E) Dredging and reclamation for the quay ZierbenaPort of Castellon (E) Dredging works for the extension of the Port of Castellon

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Some relevant questions to the dredging industry

What about the growth path for European port activities ? In what sectors ?

Where are the growth markets for port development in Europe ?

Do upstream river ports have a future ? What about transhipment ?

Are we slowly approaching the end of an era of large port infrastructure works in Europe ?

What role for the dredging industry in sustainable port development ?

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General observations

European ports find themselves embedded in ever-changing economic and logistics systems.

The European port industry overall is a healthy industry

A blend of different port types and sizes

No lack of port competition in Europe

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1. General observationsEuropean port traffic - 2005

0

200

400

600

800

1000

1200

1400

1600

RoRo - 260 ports ConventionalGeneral Cargo - 340

ports

Liquid Bulk - 330ports

Dry Bulk - 350 ports Containers (est.) -132 ports

Mill

ion

met

ric

ton

nes

415m10.3%

253m6.3%

1.58b39.1%

977m24.1%

811m20.1%

Figures 2005

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For more details on European port volumesESPO/ITMMA reports (www.espo.be)

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Port competition is changingCargo concentration … but more ports

Share of top 15 ports - 2007Total European container traffic = 90 mln TEU

Rotterdam12.0%

Hamburg11.0%

Antwerpen9.1%

Other32.1%

Gioia Tauro3.8%

Algeciras3.8%Felixstowe

3.6%Valencia

3.4%Barcelona

2.9%Le Havre

2.9%

Marsaxlokk2.1% Zeebrugge

2.2%

Constanza1.6%

Southampton2.0%

Genoa2.1%

Bremen5.5%

Share of top 15 ports - 1985Total European container traffic = 17.2 mln TEU

Rotterdam15.5%

Antwerp7.2%

Hamburg6.7%

Other39.1%

Felixstowe4.2%

Le Havre3.3%

Marseille2.8%

Leghorn2.8%

Barcelona2.1%

Tilbury2.3%

Genoa1.9%

Algeciras2.0%

Southhampton1.2%

Zeebrugge1.3%

Valencia1.8%

Bremen5.7%

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Middle East – Far East

Main shipping route

Americas

Americas

Transhipment/interlining port (transhipment incidence >75%)

Logistics core region

Multi-port gateway region

Inland corridor

Main shipping route

Gateway port

Gateway port also handlingsubstantial transhipment flows

Multi-port gateway regions1. Rhine-Scheldt Delta2. Helgoland Bay3. UK SE Coast4. Spanish Med5. Ligurian Range 6. Seine Estuary7. Black Sea West8. South Finland9. Portugese Range10. North Adriatic 11. Gdansk Bay

1

2

11

6

5

10

4

9

7

3

8

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The challenge of the peripheryEvolution of the share of the market leader in each gateway region (in %)

1985 1995 2007 Trend for market share of leader Main challengers in the peripheryRS Delta 62.6 61.8 50.3 Decreasing, leader unchanged (Rotterdam) Zeebrugge (+), Amsterdam (-), Flushing (?)

Helgoland Bay 54.0 65.2 66.8 Increasing, leader unchanged (Hamburg) Wilhelmshaven (°), Cuxhaven (x)

UK SE Coast 48.1 54.3 47.3 Fluctuation, leader unchanged (Felixstowe) London Gateway (°), Bathside Bay-Harwich (°)

Dibden Bay (X), Teesport (?)

Spanish Med 52.2 49.3 53.4 Fluctuation, change in leader (Valencia overtook Barc.) -

Ligurian Range 48.2 30.0 45.6 Fluctuation, change in leader (Genoa overtook Leghorn) -

Seine Estuary 80.8 89.0 94.3 Increasing, leader unchanged (Le Havre) -

Black Sea West n.a. n.a. 90.4 Increasing, leader unchanged (Constanza) -

South Finland n.a. 60.3 40.9 Decreasing, change in leader (Kotka overtook Helsinki) Kotka (+)

Portugese Range 57.9 58.4 48.7 Recent decrease, leader unchanged (Lisbon) Sines (+)

North Adriatic 50.5 41.3 41.3 Fluctation, change in leader (Venice overtook Ravenna) Trieste (+)

Gdansk Bay 100.0 99.6 86.4 Decreasing, leader unchanged (Gdynia) -

(+) (some) terminal(s) already in operation; strong results(-) (some) terminal(s) already in operation; moderate results(°) Terminal under construction(?) No container terminal yet, planning phase(x) Container terminal was planned, but plans abandonned or rejected

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Source: Notteboom & Rodrigue (2005)

0 50 100 150 20025Kilometers

France

Belgium

Lux

Germany

NetherlandsROTTERDAM

Zeeland Seaports

ANTWERPZeebrugge

GhentOstend

BrusselsLille

Liège

WielsbekeGenk

DuisburgEmmerich

Nijmegem

Avelgem

Born

Venlo

Valenciennes

GrimbergenWillebroek

DeurneMeerhout

Duesseldorf

Cologne

Krefeld

Neuss

Bonn

Andernach

Dortmund

Amsterdam

Alkmaar

BeverwijkZaandam

HarlingenLeeuwarden Veendam

Meppel

GroningenDrachten

Kampen AlmeloHengelo

ZutphenEdeHillegom

UtrechtA. a/d Rijn

TilburgOosterhout

Helmond

Gorinchem

MoerdijkDen Bosch

Oss

Valburg

Stein

Gennep

Mertert

Koblenz

Dormagen

Seaport in Rhine-Scheldt Delta

Delta seaport system with multi-zone polarisation

Inland Container Terminal (barge or multimodal)

Growth region EuropeanDistribution (outside seaport system)

Port competition is changing Port regionalization is unfolding

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Lattakia Lattakia .. Beirut Beirut ..

Haifa Haifa ..Ashod Ashod ..

.. Bar Bar.. Barcelona Barcelona.. Civitavecchia Civitavecchia

.. Ancona Ancona

.. Constanza Constanza

Fos Fos ..

Genoa Genoa ..

Haydarpasa Haydarpasa .... Izmir Izmir

.. Koper Koper

.. La Spezia La Spezia

Limassol Limassol ..

Leghorn Leghorn ..

Mersin Mersin ..

Naples Naples ..

.. Odessa Odessa

.. Piraeus Piraeus

.. Ravenna Ravenna

SalernoSalerno.. .. Thessaloniki Thessaloniki

VeniceVenice..Trieste Trieste ..

.. Valencia Valencia

.. Kumport Kumport

.. Varna Varna

.. Armaport Armaport

GemlikGemlik

.. Ilyichevsk Ilyichevsk

..TartousTartous

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Port dynamics in the Med

.. Gioia Tauro Gioia Tauro

.. Port Said Port Said Alessandria Alessandria ..

.. Malta Malta

.. Taranto Taranto

.. Damietta Damietta

.. Algeciras Algeciras

.. Cagliari Cagliari

Main shipping lane

Med ports going north ?Med ports going north ?

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Transhipment hubs under scrutiny and its impact on inland freight distributionThe market shares of ports in the West Mediterranean. Ports grouped according to the diversion distance from the main shipping route (1975-2007)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Sh

are

in

TE

U t

hro

ug

hp

ut

We

st-M

ed

West-Mediterranean ports with one-way diversion distance > 250 nm

West-Mediterranean ports with one-way diversion distance 100-250 nm

West-Mediterranean ports with one-way diversion distance < 100 nm

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Port competition and the role of upstream portsEvolution of the market shares in the Le Havre-Hamburg range

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Sh

are

in T

EU

th

rou

gh

pu

t L

e H

av

re-H

am

bu

rg r

an

ge

Small and medium-sizedcoastal ports

Large coastal ports

Small and medium-sizedupstream ports

Large upstream ports

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Ports live in a turbulent world

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The environment is changing

Fear for impact of economic downturn

Impact of high fuel costs

Pressure on (infrastructural) capacity

Environmental and security issues are omnipresent

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Fear for impact of economic downturnWorld Container Traffic, 1980-2008. Reaching Peak Growth?

0

100

200

300

400

500

600

700

800

900

1000

1980 1985 1990 1995 2000 2005 2010 2015 2020

Mill

ion

TE

U

Divergence

Adoption Acceleration Peak Growth Maturity

1966-1992

1992-2002

2002-2010(?)2010(?) -

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Rising bunker pricesBunker price for CST 380 in Rotterdam ($ per ton)

Source: based on data Clarksons Research Services Ltd

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Bu

nk

er

pri

ce

in

$ p

er

ton

fo

r C

ST

38

0 i

n R

ott

erd

am

481.5 $4 January 2008

219.5 $19 January 2007

331 $5 May 2006

50.5 $11 December 1998

129 $3 December 2004

707 $18 July 2008

481 $19 Sept 2008

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Pressure on infrastructural capacityNew large port infrastructure projects are still coming on stream, but it takes much longer than expected and less projects make it to the finish

Development of initial plans

Proposed date for start operations

(first phase)

Date for start terminal operations

Le Havre ‘Port 2000’ – France 1994 2003 2006

Antwerp – Deurganck Dock - Belgium 1995 2001 2005

Rotterdam – Euromax Terminal – the Netherlands

2000 2004 2008

Rotterdam – Maasvlakte II – the Netherlands 1991 2002 2013/2014

Deepening Westerscheldt -the Netherlands/Belgium

1998 2003 2008

Wilhelmshaven/JadeWeserPort - Germany NA 2006 2010/2011

Cuxhaven - Germany NA 2006 Never

Dibden Bay – UK NA 2000 Never

London Gateway – UK NA 2006 2013

Felixstowe South – UK NA 2006 2008

Hull Quay 2000/2005 NA 2000 2011

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Realising terminals takes (more) time

Environmental considerations are prominent in port planning: balancing of economic, social and environmental values

Emancipation process and local rationality (cf. NIMBY) of pressure groups

(Pitfalls in) regulations and procedures slow down decision-making process

Port managers spend a lot of time in embedding the port in local community

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Securing port capacity

Notwithstanding new capacity will come on stream in the coming years, delays due to port congestion could become a structural problem in the longer term:

1. Limitations to terminal productivity increases 2. Public support for port development is lacking3. Rules and procedures4. Governments’ retreat in the funding of ports5. Investment climate6. Weak support for ‘port co-opetition’-model

The battle for securing port capacity will continue

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Sustainability is key to allow further port development

The sustainability objective has given rise to important spin-off activities for the dredging industry.

Environmental impact of port projects not only one-sided negative: port projects can be instigator of environmental initiatives that would otherwise not develop.

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Sustainability is key to allow further port developmentHarmonizing ecology and economy: the Antwerp co-habitation model (compensation: 6-7% of total cost price!)

Source: Port of Antwerp

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Sustainability is key to allow further port development

The dredging industry plays a key role:

Technological innovation to secure port expansion; Disposal of dredged material (e.g. La Spezia, Antwerp)

Assist in environmental planning linked to port expansion projects;

Coordinate with port authorities, terminal operators, government departments and organisations (e.g. Ecoports/Green Ports) to help legislators in setting realistic environmental targets;

Share best practices to help develop environmental standards taking into account the unique nature of each port and each dredging project

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1 The dredging industry and the European port system: challenges and opportunities Prof. Dr. Theo Notteboom President, ITMMA - University of Antwerp Part-time.

Documents

ceda antwerp

europe slide

havre port

notteboom rodrigue

port planning

port regionalization

port dynamics

omnipresent slide