Port of Creating a bigger hinterland

Helen De Wachter Senior Consultant Strategy & Development

1 December 2010 Port of Antwerp Importance of intermodal freight in the Port of Antwerp Port of Antwerp Hinterland Intermodal projects in the Port of Antwerp Multifunctional port

2. Logistics

3. Cargo handling

1. Industry 1. Main chemical hubs per continent

Antwerp

Houston

Singapore 2. Storage and distribution in the Port of Antwerp

– 5.45 million m² covered storage space – Cool and cold storage, hazardous goods warehouses etc. – Added value services: – weighing – packing – quality control – labelling – stock management etc. 3. Shipping freight volumes 2010

Containers Breakbulk 60% 8%

Dry bulk 11%

Liquid bulk 21% 3. Shipping freight volumes 1990-2010 (estimation of) total

x 1 000 000 ton

200 176 million ton Total 180 Import

160 Export 140 120 100 80 60 40 20

0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3. Shipping freight volumes 1990-2010 (estimation of) containers 102 million ton x 1 000 000 ton = 8,4 million TEU

100 Total

Export

80 Import

60

40

20

0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Evolution of container market share in the Hamburg - Le Havre Range 45% 40% 35% 30% 25% 20% 15% 10% 5%

0%

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 H12010

Antwerpen Rotterdam Hamburg Zeebrugge Bremen Le Havre A seaport is more than a transit hub

– A seaport is partner in the total logistics chain – Competition with other ports is about logistics and transport networks – Customer wants a total supply chain solution Port of Antwerp Importance of intermodal freight in the Port of Antwerp Port of Antwerp Hinterland Intermodal projects in the Port of Antwerp Modal split containers

2009 2009 2020 overall cont cont

barge barge barge 45% 33% 40%

road road road 37% 56% 40% Seagoing vessel

train train train 14% 11% 20%

pipeline 4% Inland navigation Importance

– 2nd biggest barge hub in Northern

– 55 000 handled barges in 2009

– Connected to the European waterway network by -Rhine canal and Albert canal

– Main inland terminals within easy reach: Brussels, Liège, Duisburg, Ludwigshafen, Basel, etc.

Inland Navigation in the Port of Antwerp Evolution

OVERALL CONTAINERS 100 25

20 forecast 2010 = 80 20,6 million tons or 2.55 million TEU forecast 2010 = 15 84.6 million tons increase of 11% 60 increase of 8% 10 versus 2009 versus 2009

40 5 1997 1999 2001 2003 2005 2007 2009 1997 1999 2001 2003 2005 2007 2009

=> 1997 – 2008: strong growth of inland navigation overall: +57% - containers: +124%

Inland Navigation Container shuttles

– 45 barge operators frequently connected to the port of Antwerp

– 15 operators representing 80 % of the market share

– Over 370 container shuttles per week to 55 destinations in 7 countries

– All container barge sailings can be consulted on www.inlanddeparturelist.be

Inland navigation Intra Port Barge services

Volume 2009: 400 000 TEU = 15% of container barge traffic in the Port of Antwerp

3 specialised operators within the port

Daily barge services between all container quays in the Port of Antwerp

Right bank Left bank River terminals right bank: Q913 & Q869 Deurganck dock: Q1700 & Q1742 Delwaide dock: Q730 & Q742 Vrasene dock: Q1227 Canal dock B1/2: Q604 (Ancon) & Q524 Churchill dock: Q420 Grain dock: Q364 (ATO) 3rd Harbour dock: Q170 Albert dock: Q104 Rail freight Importance

– 2nd biggest rail port in Europe – 2009: 24 million tonnes (net)

– 1055 km tracks in the port – 26 rail sidings – Each terminal has a rail connection – 250 loaded freight trains daily

– +/- 50 % of all Belgian in- and

export has origin or destination Share rail freight in modal split of the Port of Antwerp Antwerp

0,2 0,15 0,1

0,05

0 2006 2007 2008 2009 2010 2015 2020 2025 2030

containers total Source: EOS 2008, GHA 11 railway companies on the Belgian Net

– SNCF Fret – NMBS Logistics

– Captrain

– Crossrail Benelux

– European Rail Shuttle – TrainsporT AG

– CFL Cargo

– ACTS

– DB Schenker Nederland

– Belgian Rail Feeding – Euro Cargo Rail

+ 3 new railway companies have applied for safety certificate B Rail freight in the Port of Antwerp 2009 Market shares

80%

1% 8%

11% Rail freight sector: 3 different markets

Transport concept Market share Competitive environment

Block Trains Traditionally barge 25% competition

Price decline

Single Wagon Load Road competition traffic High entry barriers 25%

Complex production process Combined transport Strong road competition

50% Subsidized in several countries

Source: X-Rail, Mc Kinsey, VIL, Port of Antwerp 7 intermodal operators in the Port of Antwerp

– IFB Interferryboats Connections to - , , - CIS countries, Romania - France, Spain, Austria, Hungary - Germany, Italy, Balkan, Scandinavia

– Hupac Connections to - Spain, Portugal - Germany, Italy - France, Switzerland - Poland, Russia

– Rail Link Connections to - Dourges

– Naviland Cargo Connections to - Lyon/Marseille - Strassbourg

– MSC Medlog Connections to - Frankfurt, Germersheim - Neuss, Regensburg

– Kombiverkehr Connection to - Duisburg

– Quadrum Raillogistics Connection to - Basel, Novarra

Single wagon loads

– Single wagon load traffic is done almost exclusively by NMBS-logistics in the Port of Antwerp. – In 2008 the total volume of single wagon loads accounted for 6,6 million tonnes, or 26% of the total volume that NMBS- Logistics transported to and from the Port of Antwerp – In 2009 This volume dropped to 4,7 million tonnes or 25% of the total NMBS-Logistics volume in Antwerp Rail freight 26 Public rail sidings

1 Main Hub 17 Berendrecht 2 Far West 18 Stabroek 20 3 Belgische Basis 19 Zandvliet 4 Kongo 20 Noordzeeterminal 19 5 21 18 Rhodesie Kallo 32 14 17 6 Angola 22 Zuid 31 7 Wilmarsdonk 23 Verrebroek 30 29 8 Amerika Zuid 24 Krommenhoek 27 28 1 16 9 West-Siberië 25 Kalishoek 24 25 15 10 Groenland 26 Liefkenshoek 26 23 7 6 11 Alaska 27 * Saeftinge 5 4 3 12 Ijsland 28 * Arenberg 13 10 2 9 13 Petrol 29 * Polderdijk 22 11 21 14 Kanaaldok 30 * Kieldrecht 12 8 15 Oorderen 31 * Oude Sluis 16 Lillo 32 * Rapenburg

* future/planned Xrail network 2010 Container rail terminals

Main Hub

Zomerweg 2 Combinant 33 Hupac Terminal Antwerp (HTA)

11

Maritime rail terminals 55 1 Cirkeldyck (MSC Home Terminal) 44 2 Noordzeeterminal PSA 3 Europaterminal PSA 4 Antwerp Gateway DP World 5 Deurganckdok PSA Rail freight Container shuttles from/to the Port of Antwerp

Over 250 container shuttles per week to more than than70 destinations 70 destinations in 19 incountries 19 countries + 7 new connections in 2010 Port of Antwerp Importance of intermodal freight in the Port of Antwerp Port of Antwerp Hinterland Intermodal projects in the Port of Antwerp A seaport is more than a transit hub

– A seaport is partner in the total logistics chain – Competition with other ports is about logistics and transport networks – Customer wants a total supply chain solution Collaboration with hinterland hubs

– What? – Tight collaboration between port and hub in the hinterland

– Why? – Supporting logistics platforms in the natural hinterland of Antwerp (for ex. Liège, , Venlo, Duisburg, etc.) – Improved barge and railway network – Hinterland hubs take over groupage and distribution function of seaport – Hinterland hubs have become a major determining factor in the success of a port Hinterland strategy: 3 pillars

1. Infrastructure: extending rail, barge and road infrastructure, e.g. – Barge: heighten bridges on Albert Canal – Rail: Liefkenshoek rail tunnel, 2nd rail access to the port – Road: Oosterweel connection

2. Operational improvements, e.g. – Master plans rail and barge – Central Barge Planning system – ICT: “Port Community system”

3. Collaboration and/or investment in the hinterland, e.g. – : Logistics Platform – Liège: TriLogiPort – Beverdonk: Container terminal (transferium) – 2 new terminal projects (South and East) Hinterland strategy: Goals

– “Win-win” for the seaport and the hinterland hub

– Anchoring of trade flows – Anchoring companies with trade imports/exports in ‘natural hinterland’ – Local account approach of shippers – Deploy Port of Antwep marketing efforts to attract companies in the hinterland location – Optimisation of available (limited) space of port concessions – Focus in the port on port related activities – Offering potential investors an alternative at equal total logistics costs in the hinterland – Structural congestion free solution via solid hinterland strategy – Bundling of flows – Optimisation of rail and barge network – Hinterland nodes take over certain activities of seaports – Groupage, distribution functions – Green lanes, customs, security,… Port of Antwerp hinterland strategy

- Tier 1: Consolidation of volumes via transferia - WCT Meerhout, Beverdonk Container Terminal, TCT Willebroek, ,…

- Tier 2: Tri-modal hinterland hubs - LAR Kortrijk & Mouscron (South West), Athus (South East), Liege

- Tier 3: Hinterland corridors (Rail/Barge) - South Lanes: - France/Spain (Lille/Paris/Irun/ Hendaye and Lyon/Marseille/ Perpignan/Barcelona) - Italy (Basel/Milan East & West) - Eastern Lanes: - Rhine corridor - Germany/Austria/Hungary - Czech Rep/Poland Port of Antwerp Collaboration and investments in inland terminals

– Logistics Platform Limburg – Collaboration with the province Limburg, POM Limburg, NV De Scheepvaart, NV LRM & city councils (14) – Collaboration on land development promotion, joint efforts in infrastructure developments and exchange of know-how,… – Genk South: – 26 ha of Port of Genk – Joint efforts to attract potential investors – Port of Brussels – Collaboration on land development, promotion, and hinterland connections and exchange of knowledge – Trilogiport, Liège – Economic collaboration – Beverdonk Container Terminal – Participation in Joint Venture – Operational start 2012 Port of Antwerp Importance of intermodal freight in the Port of Antwerp Port of Antwerp Hinterland Intermodal projects in the Port of Antwerp Masterplan Barge (2009-2016)

1. AIS for barges (Automatic Identification System) – Compulsory use of inland AIS as from 1 March 2011 for inland navigation in the port of Antwerp 2. Functional Analysis Inland Container Shipping – Charting the functional needs of the different inland shipping players in the short and long run in a structural manner – Resulting in a supported action plan that can be initiated at short notice 3. Sailing schedules Container Barges – Optimisation of the sailing schedules of the barge operators in the port 4. Barge Traffic System – ICT interface between the barge operator and the terminal operator for the planning of loading and unloading operations. – New version mid September 2010 5. Consolidation small container volumes – Investigation by APA into possibility to set up consolidation platform in or outside the port – Focus on consolidation of the Rhine volumes 6. Premium Barge Service intra port transport by barge – Working out a dedicated barge service (regular ‘bus service’) servicing fixed terminals within the port with fixed volumes at fixed time slots.

Barge infrastructure investments

5 1 Upgrading Albertcanal between port and Wijnegem 2 Renovation Van Cauwelaert lock

(2008-11) 4 3 3 Waiting dock for push barges 6 K530 4 Development of waste park and 2 water supply nearby Lillo 7 bridge

5 Waiting dock for barges 1 Noordland bridge

6 Waiting dock for barges Lillo

7 Replacement fenders in Vrasene Dock Masterplan Rail (2009-2016) 1. Antwerp Intermodal Solutions II – Objective: create new intermodal linkages between Antwerp and selected regions in Southern Germany & Central/Eastern Europe. Achieve win-win – Commercial & cost advantages for participants (demand side) – New opportunities for rail, intermodal and terminal operators – Antwerp as a rail hub – Antwerp Port Authority (APA) runs a neutral platform to allow for bundling of traffic (forwarders and carriers) and provide structured feedback to supply side – Results: 5 new railway connections (Paris, Vienna, Ludwigshafen, Verona + 1 to be launched) + 2 destinations with frequency increases (Lyon and Duisburg) 2. Intra Port Rail – Objective: to improve competitiveness of intra port shunting services and last mile solutions. 3. Conditions – tanking facilities – maintenance workshops for wagons and locomotives – parking facility for wagons & locomotives – use of Antwerp North bundling station – Locomotive drivers: bottleneck profession (a profession which has difficulty filling vacancies) 4. Innovative projects to improve hinterland connectivity – E.g. connect Antwerp to China via rail – E.g. creating a corridor towards the West (UK market) Rail infrastructure investments

1 Liefkenshoek railway tunnel

2 Deurganckdok rail installations and terminals

3 Capacity extension right bank rail 2 1 5 access (L27A) + second rail 2

access 3

4 Modernisation rail infra right bank

5 Iron Rhine 3 3

3 5