she'd be free for lunch from 12:45pm-2:30pm or anytime between 4pm-6pm. The Competitiveness of Global Port-Cities: The Case of Rotterdam/Amsterdam – the Netherlands Please cite this document in the following way: Merk, O., Notteboom, T. (2013), « The Competitiveness of Global Port-Cities: the Case of Rotterdam, Amsterdam – the Netherlands », OECD Regional Development Working Papers, 2013/08, OECD Publishing, http://dx.doi.org/10.1787/5k46pghnvdvj-en OECD Regional Development Working Papers, 2013/08 Olaf Merk, Theo Notteboom Classification JEL: R41, R11, R12, R15, L91, D57 OECD REGIONAL DEVELOPMENT WORKING PAPERS This series is designed to make selected OECD studies on regional development issues available to a wider readership. Authorship is usually collective, but principal authors are named. The papers are generally available in their original language, either English or French, with a summary in the other if provided. This work is published on the sole responsibility of the author(s). The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD or of the governments of its member countries. Comment on the series is welcome, and should be sent to [email protected] or the Public Governance and Territorial Development Directorate, 2, rue André Pascal, 75775 PARIS CEDEX 16, France. --------------------------------------------------------------------------- OECD Regional Development Working Papers are published on www.oecd.org/gov/regional/workingpapers --------------------------------------------------------------------------- Applications for permission to reproduce or translate all or part of this material should be made to: OECD Publishing, [email protected] or by fax +33 1 45 24 99 30. © OECD 2013 Photo credits (from left to right): © Freek van Arkel, © Freek van Arkel, © Joost Notten 2 ABSTRACT This working paper offers an evaluation of the performance of the ports of Rotterdam and Amsterdam, an analysis of the impact of these ports on their territory and an assessment of policies and governance in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the ports on economic and environmental questions is studied and quantified where possible. The value added of the port clusters of Rotterdam and Amsterdam is calculated and its interlinkages with other economic sectors and regions in the Netherlands delineated. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. These include measures instituted by the port authorities, as well as by local, regional and national governments. Governance mechanisms at these different levels are described and analysed. Based on the report‘s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the ports of Rotterdam and Amsterdam on their territory. JEL classification: R41, R11, R12, R15, L91, D57 Keywords: ports, regional development, regional growth, urban growth, inter-regional trade, transportation, input/output 3 FOREWORD This study is the sixth in a series of case studies within the OECD Port-Cities Programme, which attempts to identify the impact of ports on their territories and possible policies to increase the positive impacts of ports on their territories. The report has been realized at the request of the Netherlands Ministry of the Economy, Agriculture and Innovation, the city of Rotterdam, the city of Amsterdam and the port authority of Amsterdam. This working paper is part of a series of OECD Working Papers on Regional Development published by the OECD Public Governance and Territorial Development Directorate. This paper was written by Olaf Merk (OECD) and Prof. Theo Notteboom (University of Antwerp). It was directed by Olaf Merk and it draws on the work of a number of other contributors, in particular César Ducruet (CNRS – Université de Paris I Panthéon-Sorbonne), Prof. José Tongzon (INHA University, Incheon), Walter Manshanden and Martijn Dröes (TNO, Netherlands) and Nicolas Winicki. Within the framework of this study, interviews with a series of actors and stakeholders have been conducted. The paper can be downloaded on the OECD website: www.oecd.org/regional/portcities Further enquiries about this work in this area should be addressed to: Olaf Merk ([email protected]) of the OECD Public Governance and Territorial Development Directorate. 4 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................................. 9 POLICY RECOMMENDATIONS: .............................................................................................................. 14 INTRODUCTION ......................................................................................................................................... 17 1. PORT PERFORMANCE .......................................................................................................................... 20 1.1. Port performance of Rotterdam and Amsterdam ................................................................................ 21 1.2. Determinants of port competitiveness................................................................................................. 22 Maritime connectivity ............................................................................................................................ 22 Port efficiency ........................................................................................................................................ 28 Hinterland connectivity .......................................................................................................................... 31 1.3. Synergies ............................................................................................................................................. 33 Synergy between the ports of Rotterdam and Amsterdam ..................................................................... 33 Synergies between the port-cities of Rotterdam and Antwerp ............................................................... 38 Synergies within multi-port gateways .................................................................................................... 40 2. IMPACT OF THE PORTS OF ROTTERDAM AND AMSTERDAM .................................................... 44 2.1 Economic impacts ................................................................................................................................ 44 Modest port-related value added growth ................................................................................................ 44 Stagnant port-related employment growth ............................................................................................. 46 High port-related labour productivity ..................................................................................................... 46 Moderate indirect economic effects with relatively large spillovers ...................................................... 48 An economic profile in line with European port-regions ....................................................................... 51 Not a world leading maritime centre ...................................................................................................... 52 Moderately associated with wider headquarter functions ...................................................................... 55 Assets for research and development ..................................................................................................... 56 Facilitators of cheap exports and imports ............................................................................................... 58 Revenue sources for cities ...................................................................................................................... 60 Favourable social-economic performance .............................................................................................. 60 2.2 Environmental impact .......................................................................................................................... 61 Air pollution ........................................................................................................................................... 61 Land consumption .................................................................................................................................. 63 Impacts from hinterland traffic............................................................................................................... 65 2.3 Balancing costs and benefits ................................................................................................................ 67 3. GOVERNANCE AND POLICIES ........................................................................................................... 70 3.1 Towards a sustainable and selective port growth strategy ................................................................... 70 3.2 Develop into a leading international maritime centre .......................................................................... 72 3.3 Intensify regional cooperation ............................................................................................................. 78 Cooperation at the city-region level ......................................................................................................