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Annual Report 2018 faster smarter cleaner 2018 Annual Report About Financial Port of Amsterdam Roadmaps Stakeholders Materiality Financials Investments Employees Risks statements Table of contents Key figures Report of the Report of the Profile, vision About this report 81 2018 Board of Directors Chairman of the and mission Faster, smarter, cleaner Supervisory Board Hub, hotspot and service Responsibility for 3 Sustainable ‘battery’ provider for the city sustainability 82 4 for the city and region 9 Financial statements 83 7 GRI table 131 Value creation model Strategic roadmaps Stakeholder dialogue Materiality Our added value Anticipating promising Engaging with our Social relevance Appendices 137 2 trends and developments communities 14 16 24 31 Financial results Investments Economic significance Shipping and In addition to this annual report, Sound financial and market of the North Sea Canal nautical safety we have an online publication position Investing in the future Area Clean and safe that deals more extensively with The strength of the port shipping our themes – faster, smarter and 43 48 cleaner – based on interviews and 54 57 case studies, in which our CEO Koen Overtoom outlines his vision for the development of the Our Risk management Governance and Supervisory Board port in a video. employees Clear view of our risks and compliance Report Developing agility how we manage them Solid organisation Involvement of Supervisory Board members 60 65 76 * The online publication has not been 79 audited. 2018 Annual Report About Financial Port of Amsterdam Roadmaps Stakeholders Materiality Financials Investments Employees Risks statements Key figures 2018 Throughput in Amsterdam Port of Amsterdam Revenue Net profit* (million tons) (€ million) (€ million) 81.3 150.1 60.9 2017 2017 2017 82.3 157.4 68.5 3 Clean shipping Port-based employment** Added value for NSCA** (% ships with ESI discount) (number of jobs) (€ billion) 20 66,858 6.9 27 2017 68,399 2016 7.2 2016 2017 2017 * Concerns the result after corporate income tax and excluding deferred tax. ** The figures have been taken from the Ports Monitor 2018 and relate to 2016 and 2017. 2018 Annual Report About Financial Port of Amsterdam Roadmaps Stakeholders Materiality Financials Investments Employees Risks statements Faster, smarter, cleaner Message from the Board of Directors “The port is becoming faster, smarter and cleaner. Port of Amsterdam saw its medium-term strategy The circular economy and the energy transition are bringing new, innovative players to the port, and innovation from continue to take shape in 2018.” 4 existing companies. The port is becoming faster, smarter and cleaner. The Port of Amsterdam saw its medium-term strategy continue to take shape in 2018. The record throughput of 82.3 million tons ensured that 2018 was a successful year for the port. The economic tide was favourable, so a fourth successive decline in coal throughput was offset by volume growth in agribulk, construction materials and containers. And that was against the backdrop of stable volumes of crucial oil products, which at 44.6 million tons continue to account for most of the Port of Amsterdam’s total throughput. More land was also issued in 2018 than in 2017, while 180 sea cruise ships and 2,007 river cruise ships called at our port. These are both record numbers. Partly thanks to these activities profit increased to €68.5 million compared to €60.9 million in 2017. Koen Overtoom, CEO (left) Michiel de Brauw, CFO 2018 Annual Report About Financial Port of Amsterdam Roadmaps Stakeholders Materiality Financials Investments Employees Risks statements Message from the Board of Directors Year of transition in sustainable development “The circular economy and the energy transition In this context, 2018 was a pivotal year. A broad societal awareness of sustainability grew are increasingly leading to interdependence and from people simply noting that things really had to change, partly due to the Climate Tables integration between traditional port businesses process – a prelude to a national Climate Agreement. At the port, we saw sustainable and game changers.” development actually take off. Substantial investments went into energy transition and the circular economy. A number of circular businesses were established, converting plastics into new raw materials and products, turning the Port of Amsterdam into a genuine circular New Municipal Executive plastics hub. Which shows that our 2017–2021 Strategy is bearing fruit. In 2018, a new Municipal Executive took office in the Municipality of Amsterdam, our shareholder. The Executive Agreement assigns specific roles to the port for the achievement The arrival of innovative game changers was clearly noticeable for the first time in the port of its sustainability objectives. For example, the municipality wants to make the port the 5 community. Networking meetings increasingly attract representatives of young businesses, ‘battery of the city’, to fulfil part of the city’s circularity plans in the port and to make the which in turn inspire existing companies to boost the sustainability of their products and port into a hub of urban distribution. Each and every one of these objectives appeal to us. processes. These young-generation businesses see opportunities which can also benefit The port is well equipped to implement them, and they are already embedded in our longer-established businesses. The latter make land available and provide waste flows and corporate strategy. knowledge, so the circular economy and the energy transition increasingly lead to interdependence and integration between traditional port businesses and game changers. Pressure on space remained as acute as ever. In 2018, the situation was exacerbated by the Here, too, the port has begun to change. City Council’s ambitions to turn Coenhaven and Vlothaven into a residential and business area without any space for the industry already established there. The intended transfer of The final quarter saw a marked acceleration in the energy transition. Together with the Passenger Terminal Amsterdam (PTA) also led to tension in the otherwise positive a number of strategic partners we announced our intention to establish a hydrogen cluster relations with the municipality and the shareholder due to a conflict of interest. in the Amsterdam region, starting with a feasibility study for a 100 MW hydrogen plant. This development will be key to determining the future of the port. Customers in the port Continued professionalisation of the internal organisation also installed thousands of solar panels on their warehouses’ roofs. The port has now We have substantially improved components in the finance and governance area, including a significant installed sustainable energy generating capacity: 64 MW of wind energy risk management, procurement and compliance. We also fine-tuned the execution of our and 55,000 m2 of solar panels. corporate strategy by selecting four guiding roadmaps for the most important themes: Energy Transition, Circular Economy, Logistics & Accessibility and Digitisation. 2018 Annual Report About Financial Port of Amsterdam Roadmaps Stakeholders Materiality Financials Investments Employees Risks statements Message from the Board of Directors Our employees also appreciate the focus the roadmaps provide. In response to the semi- annual survey, employees said they found the company’s direction clear and supported its strategy. In the internal organisation there is still some tension with regard to agility. The volatility of the outside world places demands on the internal organisation, requiring adaptation at an ever-increasing pace. But what is positive for the company is not always perceived as positive for every individual. That requires attention. At the same time, we are increasingly experimenting with agile teams, which can make fast and flexible contributions to substantial improvements in and for the company, raising our estimation among customers and other stakeholders. 6 Intensifying the sustainability shift in 2019 Our entrepreneurial spirit remained as strong as ever in 2018. Over the centuries, it has ensured our perennial adaptability to new challenges and circumstances. That spirit will also ensure that the success of 2018 lives on – particularly the shift towards sustainability. Indeed, we will further intensify the sustainability shift in 2019: faster, smarter, cleaner. We look forward to the future with confidence. Koen Overtoom, CEO Michiel de Brauw, CFO We will further intensify the sustainability shift in 2019. faster smarter cleaner 2018 Annual Report About Financial Port of Amsterdam Roadmaps Stakeholders Materiality Financials Investments Employees Risks statements Sustainable ‘battery’ for the city and region Message from the Chairman of the Supervisory Board “The expansion of the solar panel area in the port to 100,000 m2 is proceeding steadily. The year 2018 was a remarkable year for the Port of Amsterdam. The Port of Amsterdam has already achieved 7 its 2021 goal for clean shipping.” The Supervisory Board reports that the priorities set by the Board of Directors and the actions laid out in the strategic plan ‘Setting a course for the Amsterdam Metropolitan Port’ are beginning to deliver results. The port plays an increasingly important role in promoting and fulfilling the sustainability goals of the port authority, the city and the metropolitan region in the areas of energy transition, circular economy, sustainable freight transport and mobility. In the near future, the role
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