The Port of Rotterdam has charted a course of transformation throughout 2023. The year witnessed pivotal investment decisions aimed at fostering sustainability within the port and its logistics chain. Despite a 6.1% decline in total cargo throughput compared to 2022, reaching 438.8 million tons, the Rotterdam Port Authority remains financially stable, paving the way for sustained investments in a future-proof harbor.
Sustainable Progress Amid Global Challenges
The decrease in cargo handling, particularly in coal, containers, and other dry bulk, can be attributed to ongoing geopolitical tensions, sluggish economic growth, and high inflation rates. However, the year showcased visible strides in sustainability initiatives, including the green light for the Porthos CO2 transport and storage project, the commencement of a national hydrogen network, new shore power connections, and the initiation of land reclamation in Prinses Alexiahaven.
Boudewijn Siemons, CEO of the Rotterdam Port Authority, emphasized, “2023 marked a year of geopolitical unrest and economic challenges. Nevertheless, it also marked substantial investment decisions and milestones in our transition towards a sustainable harbor. We finalized the investment decision for the Porthos project, began construction of the national hydrogen network, and celebrated significant developments in the logistics sector.”
Financial Overview
Despite external challenges, the Port Authority maintained financial stability in 2023. Revenues increased by 1.9% to €841.5 million, driven by contract revenues from land rentals and port dues. Noteworthy investments totaled €295.4 million, nearly 15% higher than 2022, focusing on key projects such as container terminal quays, Prinses Alexiahaven land reclamation, and Rozenburgsesluis dam construction.
The CEO commented on the financial performance, stating, “Our operational costs rose by 3.8%, mainly due to increased labor and operational expenses. While EBITDA increased by 0.9%, the net result declined by 5.6%, attributed to one-time items. We proposed a dividend of €129.0 million for shareholders, demonstrating our commitment to sustained financial health.”
Cargo Overview
Dry Bulk
Dry bulk handling witnessed an 11.8% decrease in 2023. Notably, the agribulk segment saw increased corn imports due to European crop challenges. Coal handling declined by 20.3%, driven by reduced demand for energy coal, while iron ore and scrap handling increased by 9.9%, replenishing stocks after a low-import year in 2022.
Liquid Bulk
Liquid bulk experienced a 3.4% decline, with decreases in crude oil and mineral oil products, offset by a 3.7% rise in LNG handling. The Rotterdam Port remains a significant importer of LNG as Europe continues to replace Russian natural gas via pipelines.
Containers and Breakbulk
Container throughput decreased by 6.8%, reflecting global uncertainties. The expansion decisions by APMT and RWG, the operational Container Exchange Route (CER), and the implementation of Nextlogic aimed to optimize container handling efficiency despite challenges.
Investments for the Future
The Rotterdam Port Authority’s commitment to sustainable development is evident in ongoing projects. Expansion plans by APMT and RWG, the operational CER, and the wider Yangtzekanaal showcase efforts to enhance capacity and efficiency. CEO Siemons stated, “Our focus on sustainable investments, including Porthos and the national hydrogen network, underscores our dedication to shaping a future-ready harbor and industrial complex.”
Outlook for 2024
As global uncertainties persist, the Rotterdam Port remains steadfast in its commitment to stability and sustainable growth. Key projects scheduled for 2024 include the commencement of Porthos construction, development of the second conversion park, private investment decisions for hydrogen plants, bio-refineries, and crucial infrastructure enhancements. The port continues to advance its position in international chains, contributing significantly to national and European climate objectives.
