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fast forward The Future is BIG An Orange Elephant learns to Dance Setting New Standards at the Delta PROGRESS REPORT SUMMER 2003 ISSUE 27

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Page 1: 457.015 FF Summer 03 - ECT Hutchison Ports · the Japanese carrier MOL has been a cus-tomer of ECT for quite some time already. Chris Bourne, MOL’s managing director for Europe,

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fast forward

The Future is BIG

An Orange Elephant learns to Dance

Setting New Standards at the Delta

P R O G R E S S R E P O R T S U M M E R 2 0 0 3

I S S U E

27

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11 As of July 1, 2004, the InternationalMaritime Organization will be introducingstrict security regulations. One result is thatterminals will have to make large invest-ments to satisfy all new requirements. Theseare extra costs that ECT will not be able toavoid passing on to its customers.

Security Charge Unavoidable

P.O. Box 73853000 HJ Rotterdam, the Netherlands T +31 (0) 181 278 278F +31 (0) 181 278 315E [email protected] www.ect.nl

8-10

The Future is BIG

With the call of the OOCL Shenzhen, ECT for the first time had a ship of8,000+ TEU alongside its quay. And according to Andrew Penfold ofOcean Shipping Consultants, ships will only get bigger. Following an in-between stage of 10,500-11,000 TEU, we are heading for 12,500 TEU.

Colophon

Fast Forward, a business-to-business publication of ECT, appears three times a year.

Please contact our Communications Department with any questions or suggestions

you may have regarding the contents.

Copy: Dean Harte, Rob Schoemaker, Rob Wilken (editor-in-chief), Harry de Wilt

Translation: James Andrick, Niall Martin, Dean Harte

Photography: Eric Bakker (unless stated otherwise)

Layout: Ontwerpwerk, The Hague

Printing: Drukkerij De Longte, Dordrecht

External coordination: RWP, Voorburg

Chief editor ECT: Rose Wiggers

Europe Container Terminals (ECT)

ECT is the largest and most advanced container terminal operator in Europe, han-

dling almost three-quarters of all containers in the port of Rotterdam. Twenty-four

hours a day, seven days a week and 52 weeks a year, ECT operates several container

handling facilities on the ECT Delta Terminal at the Maasvlakte along the North Sea

and the Home Terminal in the Eemhaven area, near the city center. ECT has devel-

oped a network of inland terminals to facilitate better intermodal transport - barge,

rail - between Rotterdam and the European hinterland. Currently, ECT operates ter-

minals in Venlo (in the southeast of the Netherlands), Willebroek (Belgium) and

Duisburg (Germany). All ECT’s terminals inside and outside Rotterdam are at the

crossroads of visible container flows and invisible information flows. ECT’s highly

skilled staff is on standby 24 hours a day for its customers.

ECT is a member of the Hutchison Port Holdings Group (HPH), the world’s leading

port investor, developer and operator with interests in fifteen countries throughout

Asia, Africa, Europe and the Americas. Today, HPH operates a total of 31 ports

together with a number of transportation related service companies.

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12-13 As a member of The New World Alliance,the Japanese carrier MOL has been a cus-tomer of ECT for quite some time already.Chris Bourne, MOL’s managing director forEurope, shares his views on ECT’simproved performance.

Changes for the Better

fast forward As part of Fast Forward’s new coverseries about the cargo within thecontainer, we this time focus on milk. In the Netherlands, we are brought upon the stuff. But ‘our’ dairy products arealso very popular elsewhere in the world.Dairy manufacturer Friesland Cobercofor example moves vast quantities of cansto the Middle East, West Africa, SouthAmerica and South-east Asia.

Dutch Milk

C O N T E N T S

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20-21 Ten years ago, the Delta/Sea-LandTerminal on the Maasvlakte became oper-ational. This first ever robotized containerterminal has totally proven itself in use.To this very day, the Delta DedicatedNorth Terminal - as it is now called - isstill operating successfully.

Ten Years of Proven Technology

22 With Conliner, rail giant Deutsche Bahnhas positioned a new, independent railoperator in the market for the transportbetween the so-called west ports and therest of Europe. Via hubs in the hinterland,this young company is already able tooffer a great number of destinations.

GO WEST!

If you look at the ships on order today, you can easily seethat they are becoming increasingly big in terms of TEUcapacity. It is paramount that terminal operators will seethe demands related to berth productivity increase. ECT ispreparing itself for these upcoming demands. The invest-ments in hardware for the future are huge. The entire logis-tics chain has to perform better and, above all, faster. Looking at the total transportation costs, one can for manycommodities wonder if this really makes a difference forthe consumers. The transport costs of a TV set produced inChina on the shelves of our shops are less then € 10 perset. A bottle of beer produced in the Netherlands and con-sumed in the USA costs less then € 0.15 per bottle. It’s afact that this does not impact the choices of the consumerat all. However, logistics is seen as an expense and not as anadded value. As an industry, we need to work on ourimage. The logistics chain adds a lot of value, but profits inthe chain itself are slim or non-existing. A fact we need todeal with in a professional way. On the one hand we needto make sure the entire logistics chain makes sufficientmoney to safeguard future expansion and on the otherhand we need to be careful that the competition doesn’t eatour lunch. This tension is forcing people to be creative andinnovative in order to make things happen as cheaply aspossible. However, consumers and producers need tounderstand that the logistic industry is capital intensiveand needs healthy returns to ensure compliance with futuremarket demands. It is remarkable to see that in some partsof the logistics chain, the price is the main denominatorwhen it comes to decision-making. Food for thought is thestatement made by a famous business guru: if you pay toolittle, you have to calculate for error, if you calculate forerror, you are better-off paying a little more from thebeginning. The simple laws of business dictate that it’s notpossible to pay a little and get a lot. With the new vesselson order, stevedores need to invest in bigger equipmentand need to prepare for increased service demands. ECT isready for this new challenge, as we are investing and have aguaranteed draft to handle all vessels presently being built,fully loaded. We are also investing heavily in a new com-puter system that can meet the future demands in terms ofthe peak capacity and performance needed to connect suchhuge vessels with feeders, barges, trains and trucks in theshortest time possible. We will do it in a smart way toensure that the costs remain as low as possible. Yet I hopethat the entire logistics industry gets more recognition andthe responsible shippers and receivers allow for healthymargins that facilitate this new step ahead in vessel sizesand service demands.

Jan GelderlandDirector Operations

14-16President Richard Pearson and director ofmarketing & sales Wando Boevé explainwhat is still necessary to put ECT back onthe map in ink. “One thing is for sure, cus-tomer attention is a policy that’s here tostay.”

17 What goes well, goes fast. Not even fouryears after it first started operations, TCTBelgium has already been able to expandits quay wall from 120 to 350 meters.More and more companies are discoveringthe advantages of ECT’s inland terminalin Willebroek.

An Orange Elephant learns to Dance

Bridgehead in Belgium

18-19 The ECT Delta Terminal is on the eve of atotal renewal of its terminal software. Usewill be made of the proven technology andexpertise of Gottwald Port Technology andNavis. The ultimate goal: better services forECT’s customers, improved performanceand more flexibility.

Setting New Standards

SUMMER 2003C O L U M N

Bigger and Better

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N E W S

The first ship to call at the DDEwas the OOCL Fidelity with acapacity of approx. 2,800 TEU.The full rotation of the G-loop isDalian, Xingang, Pusan, Ningbo,Kaoshiung, Yantian, Southampton,

“This is already the third semester in succession inwhich the port performs well in a mediocre economy,”says Willem Scholten, chairman of the managementboard of the RMPM. “Regarding semi-finished prod-ucts and consumer goods, which are moved in boxesthe most often, this is mainly attributable to globalproduction and consumption patterns. The gapbetween consumption and production areas is widen-ing and especially assembly generates a lot of additionaltraffic. The shipping sector with its scaling-up and costreductions is ideally suited to bridge this gap betweenthe two.” In May the port of Rotterdam realized a newmonth record. For the very first time ever, container

Double Figures

throughput figures surpassed the boundary of600,000 TEU per month: 624,222 TEU or 20,000TEU per 24-hour period.The RMPM in addition analyzed the size of the5,500 container vessels that called at the port in thefirst six months. The conclusion: a growing numberof small shortsea-/feeder vessels (up to 1,000 TEU)and an increasing market share for container vesselsof 6,000+ TEU. The latter is predominantlyattributable to the fact that in this category largervolumes are handled per ship. Rotterdam is the firstport of call on the European continent for many ser-vices from Asia. Therefore a more than average num-ber of containers is discharged here. Shipping com-panies can in this way decrease the draft of the shipto make it possible to call at Hamburg. What’s more,containers with a time-critical cargo can be moved totheir destinations faster.

Rotterdam, Hamburg and back toChina via Giaio Tauro, Singaporeand Hong Kong.

Another OOCL vessel, the OOCLKorea, made its maiden call at

Grand Alliance - Grand Presence

In the first half of 2003, the throughput of containers in the portof Rotterdam increased by 11.4 per cent to 3.5 million TEU. Andthe Rotterdam Municipal Port Management (RMPM) is also opti-mistic about the rest of the year. An end-of-year record is possible.

The brand new G-loop of the Grand Alliance for the first time called at the ECT DeltaDedicated East Terminal (DDE) in early August. The Grand Alliance is the partnershipbetween shipping companies Hapag Lloyd, MISC, NYK, OOCL and P&O Nedlloyd.With their sixth (!) weekly Far East - Northern Europe service, the alliance is especiallyanticipating the quickly growing export from China.

ECT as part of the B-loop. Thisexisting Grand Alliance servicenow also directly calls atRotterdam. The B-loop connectsEurope with the Asian ports ofPusan, Shanghai, Hong Kong,Singapore, Port Kelang andKaoshiung.

The Grand Alliance is a customerat ECT for all of its Far East -Northern Europe services.

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N E W S

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N E W S

In anticipation of the constantlyincreasing container volumesbetween Asia and Europe, CMACGM has early this summerlaunched a new weekly sched-uled service: the Sunda Express.

New: Sunda Express

What makes the service stand outin Asia is the fact that in additionto the established hubs ofSingapore and Port Kelang, it alsodirectly calls at Djakarta,Indonesia. In Europe, Piraeus

(Greece) constitutes a new directcall in the Far East - NorthEurope trade for the French ship-ping company.

The full rotation of the SundaExpress is: Singapore - Port Kelang- Malta - Le Havre - Rotterdam -Hamburg - Zeebrugge - Piraeusand then back to Asia. The Frenchshipping company deploys shipsof approximately 3,000 TEU inthe Sunda Express. The handlingat ECT takes place at the DeltaDedicated North Terminal. CMACGM has three other Asia services(FAL, NCX, Tour du Monde)which are all customers at ECT.

Between June and August, Rotterdammers whostayed at home had a genuine riverside beach attheir disposal, smack-bang in the city center.Special sand was used to create ‘WaterlifeBoulevard on the Beach’ and of course all ameni-ties were included: palm trees, parasols,deckchairs and a beach café with a terrace fordining, drinking and performances. And for those die-hards who despite the sunshinecould not let go of the container business: fortu-nately, the river is one of the thoroughfares forbarges to and from Germany.

And where did we go this Summer?

photography Ben Wind

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N E W S

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Dolf van Rijswijk, managing director of CMA CGMHolland: “In the past, feedering activities to Portugalwere executed by third parties. But nowadays, volumeshave increased to such an extent that it has becomemore economical to do it ourselves. In addition, wenow have much more control over the just-in-timedelivery. And feedering Portugal-bound cargo viaRotterdam has certain customs-related advantages.” Inthe Butterfly Service - as the service is officially known- ships of 509 TEU are used. Departing fromRotterdam each Monday, cargo arrives in Lisbon onThursdays and in Leixoes on Saturdays.

“The decision to also initiate a feeder service to the UKfrom Rotterdam is mainly motivated by the congestionin England’s southern ports,” says Van Rijswijk. CMACGM’s feeder service from the Delta Dedicated NorthTerminal sails to destinations in Mid and NorthEngland. “It is simply more economical to serve theseregions via the Maasvlakte. Partially also becauseRotterdam is one of the first European ports of call inour deepsea trades from the Far East.” The feeder ves-sels (capacity 380 TEU) are in Rotterdam eachMonday and from here depart to Immingham (arrivalTuesday), Grangemouth (Wednesday) and Teesport(Saturdays).

In early June, ECT had the distinct honor of welcoming ChairmanChang Yung-Fa of Evergreen. Chairman Chang (7th on the right inthe picture) and his party among other things called at the ECTDelta Terminal. Evergreen has been a customer of this terminal sincethe end of 2002. Before that, the Taiwanese carrier was handled atthe ECT Home Terminal for many years. The main reason for relo-cating the entire volume to the Delta Terminal, was Evergreen’s wishto concentrate its operations closer to the sea.

Feedering with CMA CGM

CMA CGM this summer has started two European feeder services from the ECT DeltaDedicated North Terminal: one to the UK, one to Portugal. The latter service is carriedout by the French shipping company’s full subsidiary MacAndrews (represented in theNetherlands by Logistic Link Holland).

Chairman Evergreen visits ECT

photography Martin van V

ught

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N E W S

Hanjin Shipping is steadilyincreasing the capacity of its week-ly North Europe - China Express(NEX). Before the end of thisyear, the service will be fully car-ried out by ships with a capacityof 5,750 TEU. Early this summer,the Hanjin Lisbon made its maid-en call at the Delta DedicatedNorth Terminal. At present, thealmost 280-meter-long and morethan 40-meter-wide ship is on itssecond round trip.

In mid-August, the ECT Home Terminal couldonce again greet a new customer. With the call ofthe Cielo di San Francisco (capacity 2,400 TEU),Rotterdam has been incorporated in the rotationof Italia Lines’ Med-Pac service. The Med-Pac ser-vice connects the Mediterranean Sea to the west

Larger Ships Hanjin

Med-Pac Service

coast of North America and Mexico via thePanama Canal. On the return trip, the ships firstcall at Thamesport and Rotterdam to then returnto the Mediterranean Sea. Italia Lines is part ofthe CP Group.

Norasia will deploy five ships in the new service,MOL one. According to Mark Mol, MOL Europe’sdeputy general manager for the east-west trade, thevast economic potential of the Indian subcontinent isthe main reason for initiating the new service. “In thenear future, we anticipate a substantial increase inshipping traffic with Europe. We are now investing inour presence on this route.” The full rotation of theEuro-Galex is Jebel Ali (United Arab Emirates),Karachi (Pakistan), Nhava Sheva (India), Colombo(Sri Lanka), Felixstowe (UK), Hamburg (Germany),Rotterdam and then Jebel Ali again.

New Service Europe - India

Shipping companies Norasia and MOL have start-ed a joint service between Northern Europe andthe Gulf Indian subcontinent. At the end of July,the MOL Sprinter (capacity 1,700 TEU) was thefirst ship in this direct Euro-Galex service to call atthe ECT Home Terminal.

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The Future is BIG

8 >>

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With the call of the OOCL Shenzhen in early June, the ECT Delta Terminal for

the first time had a container ship with a capacity of more than 8,000 TEU

alongside its quay. And according to Andrew Penfold of Ocean Shipping

Consultants in England, ships will only get bigger in the future. Together

with Lloyds Register, his company carried out research into the ultra-large

container vessel of the near future. Following an in-between stage of 10,500-

11,000 TEU, we are heading for 12,500 TEU.

9>>

For a long time, the Panama Canal constituted a barri-er for the construction of ships larger than 5,000 TEU.However, the average ship size has drastically increasedin the last fifteen years. The economies of scale, com-bined with the increase in container traffic on the FarEast - Europe and the Pacific trade, for the shippingcompanies in the end outweighed the inability to navi-gate the Panama Canal. Ocean Shipping Consultants’managing director Andrew Penfold describes theimpact of the choice to use larger vessels. “The movefrom a capacity of 5,000 TEU to 8,000 TEU offersshipping companies a potential cost reduction of 20per cent per slot/mile a day.” However, it is a fact thateconomies of scale have a curve. “The next phase, from8,000 TEU to 11,000 TEU, allows for a new costreduction of 14 to 18 per cent per slot/mile. If shipsbecome even larger - let’s say between 11,000 TEU and20,000 TEU - then the cost savings will furtherdecrease. In addition, the shipping company willbecome less flexible.” By way of comparison, Penfoldrefers to the earlier development of crude tankers.“After the Very Large Crude Carriers, the Ultra LargeCrude Carriers never really caught on. They were sim-ply too big.”

Cautious ApproachThe optimum capacity of future container vessels wasthe subject of a joint study by Ocean ShippingConsultants and Lloyds Register. The latter predomi-nantly focussed on the technical feasibility of large ves-sels. What are the design boundaries you simply cannotcross? Ocean Shipping Consultants simultaneously car-ried out a detailed review of the (future) capacities ter-minals all over the world have to receive large ships.What does this mean for the requirements - or, moreaccurately, limitations - regarding length, width anddraft? “We have both opted for a very cautiousapproach. Based ourselves on the everyday practice ofshipping lines and stevedores. The starting point is thatthe large vessel is deployed in the current trades.Possibly with less ports, but still with various calls percontinent.”

12,500 TEULength, width, draft: looking at the possibilities ofworldwide infrastructure and stevedoring capacity,Penfold for the ultimate ultra-large container carriercomes to a length of 380-400 meters, a width of 57meters (22 containers wide) and a design draft of 14.5meters. Combined, this adds up to a capacity of12,500 TEU. “For almost all ports in the world, lengthis not a problem. Only river ports can’t be serviced inthese kinds of mega-operations.” A draft of 14.5 metersalso isn’t really that much of a bottleneck. Dependingon what a ship is carrying - the combination of full andempty containers, weight of the cargo etc - the draftcan be even less. Nonetheless, Penfold has ascertainedthat Europe is behind in this respect. Ships of 12,500TEU could at the moment only enter the port ofRotterdam in all conditions and a very limited numberof other ports using tidal windows. In five to ten yearstime, more European ports will however be ready toreceive such ships. Penfold: “Elsewhere in the world,Asia has an advantage when it comes to water depth.The future requirements regarding water depth havealready been taken into account in the often morerecently developed ports there. In North America,access is more restricted. It was not that long ago thatthe Panama Canal set the standard. But things havechanged. Vancouver for example has very good deep-water access. Long Beach/Los Angeles also offers possi-bilities.” Regarding worldwide crane capacity, OceanShipping Consultants’ managing director already sees afair amount of terminals - including ECT - that areable to handle vessels with containers 22 rows wide. Inaddition, substantial amounts are invested in cranes.

Technical RequirementsSo in the main ports, ships of 12,500 TEU will bemore than welcome in the near future. But how doesthis measure up to the requirements for the ship? Theimportant question is the choice between one engine ortwo. Lloyds Register’s research has shown that the idealship, powered by one engine and sailing at a competi-tive speed of 25 knots per hour, has a capacity of

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World’s Largest and MoreThe OOCL Shenzhen is the Hong Kong-basedshipping company’s first of ten ships with a capa-city of 8,063 TEU. This officially makes these con-tainer vessels the largest in the world. The newworld record holders are 320 meters in lengthand the containers on board stand 17 rows wide.By now, many other shipping companies havefollowed OOCL’s example and are also rapidlyplacing orders for ships with a capacity of 8,000+TEU. Some of the customers of the shipbuildingyards are important ECT customers such asEvergreen, CMA CGM and Hapag Lloyd.

“ECT is Ready”“The draft isn’t a problem anyway. And we also already havequay cranes with a reach of 22 containers wide.” ECT’s terminalmanager for the Delta, Jarmo Stoopman, has no doubt whatso-ever about the stevedore’s capacity to handle ships of 10,000 TEUand more. “With the modernization of the terminal software (seearticle page 18-19) we are presently investing in a further increasein productivity, for example also through twin-lifting by quaycranes and twin-carrying by the Automated Guided Vehicles. Hereat ECT, we will definitely be ready on time.”

roughly 10,300 TEU. Such a ship can be realized in 18to 24 months. Larger is also possible, but with twoengines - and therefore at higher costs - or at a lower,less competitive speed. Penfold: “Using twin engines intheory means that you can double everything. Butwhat is the best option from an economic point ofview? And the limits that apply in the ports are clear.”

Ships must SailLarge ships earn the shipping companies money as longas they sail. In the ports, they only cost money.Penfold: “We have therefore also taken the speed in theport, the possible turn-around time into consideration.Using a number of simulations, we have established asort of future best practice for ship handling. The start-ing point is that the stevedore handles the ultra-largecontainer carrier using six cranes at the same time.With slightly more than 35 moves per crane - which isfeasible - this boils down to about 220 containers pership per hour. In our eyes, this is a very achievablestevedoring speed. To then calculate how long a largeship will remain in a port, we finally need to knowwhat the consignment is. How many containers does aship load and discharge expressed in a percentage of itstotal capacity? In a typical hub such as Rotterdam, this

can amount to as much as 40 per cent.” By comparing the additional port costs that come withthese sorts of mega-operations to the savings perslot/mile at sea, Penfold in the end calculates an overallcost reduction of 13 to 14 per cent for shipping com-panies in the case of an ship upgrade from 8,000 TEUto 11,000 TEU. “The stay in the ports does diminishsome of the initial advantages, but certainly not all ofthem. For larger ships with two engines and a capacityof 12,500 TEU, the overall savings decrease to 7 or 8per cent compared to an 8,000-TEU ship. Ports simplyaren’t able to work any faster. 35 moves per hour isalready quite a challenge.”

Penfold expects that ships of 10,500 to 11,000 TEUwill be operational around 2006/2007. The exactmoment also depends on the global economy. Themanaging director of Ocean Shipping Consultantsthinks that in the very short term, the first shippingcompany will make the announcement that will breakthe psychological barrier of 10,000 TEU. In the yearsfollowing the introduction of the 10,500-11,000-TEUships, Penfold also expects ships with a capacity of12,5000 TEU and two engines. “We might see theseultimate ships in 2010, 2011.”

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Security Charge Unavoidable

The events of September 11,2001 shook society across theworld as a whole. The trans-port sector was no exception.Initially spurred on by theUSA, security is now a prima-ry issue. As of July 1, 2004,the International MaritimeOrganization (IMO) will beintroducing strict regulations.One result is that terminalswill have to make largeinvestments to satisfy all newsecurity requirements. Theseare extra costs that ECT willnot be able to avoid passingon to its customers.

The new set of IMO regulationsthat will go into effect in mid 2004is known as the International Shipand Port Facility Security Code(ISPS code). The IMO aims tohave the code ratified and imple-mented in 109 countries by July 1,2004. Countries where this has nottaken place in time will be put on ablacklist. And in this way, they losea good deal of their appeal as atrading partner. Obviously, the

Netherlands, the port of Rotterdamand ECT will not let it come thisfar. Jan Gelderland, director ofoperations at ECT: “As ECT, wehave always paid a lot of attentionto security at our terminals.Together with our parent companyHPH, we are participating in thevanguard of a number of importantinitiatives.” Gelderland is referringin part to the Customs TradePartnership Against Terrorism (C-TPAT) and Container SecurityInitiative (CSI) with the USA,

which have been developed in thelast two years. ECT is also activelyinvolved in the introduction ofSmart and Secure Tradelanes(SST). “As we see it, improvingsecurity is our combined responsi-bility before all else. But alongsidethat, active participation in securityinitiatives provides an opportunityto establish preferable conditionsfor your customers. With respect toCSI, US Customs have indicatedthat containers from Rotterdamcan count on priority handling atthe other side of the ocean. In thisway, attention to security becomesa logistic advantage.”

New InvestmentsBut all this does not change thefact that implementing the ISPScode drawn up by the IMO onceagain demands considerable invest-ments on the part of ECT. AsGelderland points out, “for exam-ple, we have to appoint a fulltimesecurity officer - something whichwe have already taken care of.What’s more, we need to furtherraise security requirements for ourterminals. This is also the case forentrance checks, which includespeople wanting to board a ship.

Provisions must be able to gothrough a scan if so required. Andall our employees need to betrained to recognize potential dan-gers.” In short, there are plenty ofextra costs. And ECT is unable toabsorb these additional costs withinthe existing commercial agreementsit has with carriers. As a result, thecompany is compelled to start levy-ing a security charge that willamount to about nine euro percontainer. Gelderland knows thatas a rule, any rate hike can expectto meet with stiff opposition in thelogistic sector. Yet in this case heexpects that customers will realizethe reasonableness of the charge. Asa consequence of the ISPS code,carriers themselves must also investin the security of their vessels. Thecompanies know that ECT makes alegitimate request. Gelderland:“The security measures that weneed to take are a result of changesin international regulations -changes that lie outside our rangeof influence. Yet just sitting andwaiting until July 1, 2004 rollsaround is not an option. ECT isalready incurring the related costs.But security is most definitelyeveryone’s business.”

ECT is unable to absorb additional security costs

within the existing commercial agreements

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Changes for the Better

As a member of The New World Alliance (TNWA), the Japanese carrier MOL has

been a customer at ECT’s Delta Terminal for quite some time already with two

weekly services to the Far East. Recently Euro-Galex, a new service to India and

Pakistan, has been added at the Home Terminal. At MOL’s European headquarters

in Rotterdam, Chris Bourne, managing director for Europe, shares his views on

ECT’s improved performance.

MOL’s Relationship with ECT

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“It’s been quite the transformation. ECT has alwaysbeen very good in technological terms. Throughoutthe last couple of years, we’ve also seen a distinctimprovement in the operational and commercial ser-vices of the stevedore. Regarding operations, ECT isnow right up there with terminals in neighboringports. But what’s perhaps even more important istheir commercial attitude. They’ve got listening to thecustomer down to a fine art. This change has sub-stantially boosted ECT’s competitive power.” Thespeaker is Englishman Chris Bourne, managing direc-tor of the European Head Office of Mitsui OSKLine, better known as MOL.

And ECT’s general improvement in performance isbearing fruit. The New World Alliance (the partner-ship between MOL, Hyundai Merchant Marine andAPL) from the Delta Terminal has a weekly service toAsia, the A-Express, and a direct service to Japan, theJ-Express. On these trades, TNWA is currently shift-ing a sizable portion of its feeder cargo destined forScandinavia and the Baltic from Hamburg toRotterdam. “Lines are very cost-conscious. When youadd it all up - feedering and stevedoring - the costsvia Rotterdam are lower. And on top of that,Rotterdam is the first port of call for our ships fromthe Far East. This reduces sailing times by two tothree days,” says Bourne.

Strong Points“As far as ECT’s strong points are concerned, the firstthing you notice is the sheer technology at the Delta,combined with the terminal’s fantastic deepwateraccess.” Bourne’s enthusiasm is unmistakable. “Thecaptain of a 6,000-TEU ship recently told me that hecould have entered the port unassisted without ahitch if he had wanted to. The port is superb andwith the continuing upscaling, this advantage willonly gain in importance.”The same is true for the hinterland connections withGermany and beyond. Bourne has no doubt whatso-ever that containers need to be shifted from Europe’sexpressways to other modalities. MOL already makesextensive use of inland waterways for its hinterlandtransport. “What’s more, the Betuwe Route - thededicated cargo rail link to Germany that gives accessto the rail network all the way up to Eastern Europe -will be completed in a couple of years. Together withthe fantastic barge connections it already has,Rotterdam will have a couple of strong trump cards.And this is also the case from an environmental pointof view, which alongside economic considerations isan important element in the MOL policy. In addi-tion, the development of the feeder network is veryimpressive. It’s an area in which Rotterdam has creat-ed enormous opportunities for providing an optimalservice to the ports on the UK’s eastern coast. Butalso to other destinations, as we have now seen forScandinavia and the Baltic for example.”

European HeadquartersMOL recently moved its European headquarters fromLondon to Rotterdam. Says Bourne, “the core of ourbusiness is in the Benelux. It is one of MOL’s basicbeliefs that you need to be close to your customers.And the European Union is expanding in an eastwarddirection. Moreover, having an office in London isvery expensive. I like it here. I recently bought anapartment that’s only a ten-minute-walk from theoffice and public transport in the Netherlands is per-fect. Living close to ECT is of course another advan-tage. In this age of e-mail and cell phones, you stillcan’t beat face-to-face contact. There is constant dia-logue with ECT regarding relevant developments,which is quite useful.”

Responding to TrendsDevelopments in information technology and track-ing & tracing as well as the speedy electronic han-dling of document flows are the focus of much inter-est, says the European managing director. “To makesure everything goes as smoothly as possible, we arealso in continuous contact with ECT regarding thesematters. What is of course very important is that aftersome pretty rough years, the container market in gen-eral has finally picked up again. A prognosis of sevenper cent annual growth in the transport sector is real-istic and global trade continues to increase. Largerships will be a significant determining factor in theindustry, also for MOL.” Bourne concludes, laugh-ing: “ECT has no need to be overly concerned aboutupscaling. On the contrary. More than any otherEuropean port, Rotterdam is ready to respond to anytype of upscaling the future has to offer.”

More information on MOL and Norasia’s newjoint Euro-Galex service to the Indian sub-continent in the news item on page 7.

TNWA is currently shifting a sizable portion of its

feeder cargo destined for Scandinavia and the Baltic

from Hamburg to Rotterdam

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An Orange Elephantlearns to DanceAfter going through a particularly rough time, ECT is heading in the right

direction. Volumes are on the rise and carriers are positive about the service

ECT provides. Despite this, the company still has a ways to go. President

Richard Pearson and director of marketing & sales Wando Boevé explain what

is still necessary to put ECT back on the map in ink. “One thing is for sure, cus-

tomer attention is a policy that’s here to stay.”

Richard Pearson (l) and Wando Boevé.

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“The operational employees at the Rotterdam con-tainer terminals have a 32-hour workweek. Otherplaces sometimes have a 40 to 48 hour workweek. Soit’s up to us to accomplish the same amount in justthose 32 hours.” The president of ECT, RichardPearson, uses this example to point out the continu-ous challenges his company faces in a heavily com-petitive market. “People use the expression ‘the ele-phant has to learn to dance’. That’s what is going onat ECT.” However, a lot of positive things have hap-pened in the recent period of change. As director ofmarketing & sales Wando Boevé states, “slowly thingsare picking up, certainly with respect to volume. Weare benefiting from the worldwide growth in the con-tainer trade. What’s more, we have managed toattract several new services and strings. Competitionstill places a lot of pressure on the prices, though.”

In any case, ECT is once again an organization thecarriers have faith in. Indeed, the company hasworked hard towards improving its performance.Pearson: “One thing is for sure, customer attention isa policy that’s here to stay. And we shall be especiallyvigilant against every form of complacency. Otherports are waiting to swoop in. This is something werealize all too well.” ECT’s president lists otherpositive developments: “Agreements made with theunions and employees council enable us to deployworkers with greater flexibility. In addition, there hasbeen a significant improvement in cost control.Despite this, we still need to take more economymeasures.”

The Perfect FitBut what do the two managers think are ultimatelythe most important reasons for carriers to chooseECT? Boevé: “Unrestricted access is absolutely one ofour foremost plus points. The Delta Terminal is ableto handle the largest ships, including future genera-tion vessels, under any conditions. I’m talking aboutboth the water depth at the terminal and the capacityof our cranes, which can reach 22 containers across.”

That still is not all, reveals the commercial director.“Being able to handle the big ships is one matter.Fast turn-around times and therefore high productiv-ity rates are another. And on top of this, it must bepossible to head the individual box straight out tothe hinterland. ECT offers a perfect fit for this com-bination of requirements. Because of our logistic ter-minal concept, we can, if necessary, load a containeron the following modality ten minutes after the cranehas lifted it off the ship. This also means that as aterminal, you must have the full range of modalitiesrunning at high frequencies: feeder, barge, rail andtruck. And ECT is in the fortunate circumstance thatit can do this. It’s therefore a very logical place to useas a European hub.”

Space for ExpansionAdding to this, Pearson mentions that service reliabilityis of crucial importance for the customers. “I think thatwe’re demonstrating at ECT that our service reliabilityis improving all the time. And our flexibility, too, is onthe rise. We are guided entirely by the needs of ourindividual customers. Furthermore, we are in the fortu-nate situation that we have immediate space availablefor phased-in expansions.” In particular, there is anoth-er 800 meters of quay wall on the west side of theDelta Dedicated West Terminal as well as the adjoininglot primed for further development. Boevé: “The chal-

lenge here is to select the ideal moment for investmentin close consultation with our customers.” Pearsonjoins in: “Because here, too, cost control plays animportant role. It’s a balancing act between the neces-sary lead time for carrying out these expansions and theactual growth of the volumes.” Apart from that, nowthat container figures are showing a clear upward trend,Pearson is pleased to announce that new investments inyard equipment (stacking cranes in particular) for theDelta Terminal are on the way.

The two management board members do not by anymeans automatically assume that ECT is an obviouschoice on the part of carriers now that there is a con-tinuing increase in ship size (8,000+ TEU). Of course,the Delta Terminal’s free access to deep water is a sig-nificant advantage in this respect. However, as Pearsonand Boevé state, “you should never rely on that.”Pearson: “Don’t forget Archimedes’ law. Make a shipwider, and its draft does not turn out be that muchdeeper.”

Major IT OperationPearson attaches great importance to the project TotalSystem Solution. In two phases, ECT will be switchingover to completely new software for process control atthe Delta Terminal. In a change with the past, thecompany is not developing this software itself, but hasassigned the task to specialized service providers thathave proven themselves elsewhere in the world (see alsoarticle on page 18-19). Besides cost savings, the switchis intended primarily to result in continued improve-ments in the service of ECT. Indicating the extent ofthis project, Pearson points out that, “it is without adoubt one of the biggest IT operations ever within theHPH Group.”

Safe and SecureAnother vital matter ECT’s president emphasizes is theattention for safety, both socially and economically.

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“We are guided entirely by the needs of our

individual customers”

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“We want to make sure that we provide the best possi-ble environment for safety for our whole operation.This is an entirely separate matter from that of securi-ty.” With respect to the latter, Pearson directs attentionto the worldwide initiative for Smart and SecureTradelanes (SST) in which the HPH Group is one ofthe leading participants. By fitting containers with elec-tronic seals in conjunction with online tracking & trac-ing of these boxes during their trip across the globe,security in the transport sector can be substantiallyincreased. Pearson knows that the system has a highlevel of support within the U.S. government. “Let it beclear: this is truly a global issue. The world is one trad-ing community. The U.S. sets the standard, however. Itknows how to get the ball rolling.” The Delta Terminalis completely ready to handle containers with an e-sealas part of the SST program. A pilot that started inMarch has since been expanded. Pearson foresees a bigfuture for the use of e-seals. “We believe that we areheading towards a situation in which their use will bevirtually mandatory. ECT is prepared for this.”

SST is of course but one of many puzzle pieces whichwhen interlocked create a healthy picture of the futurefor ECT. Pearson: “What helps in this respect is theincreased awareness on the part of the various Dutchauthorities as to what is necessary to keep Rotterdamcompetitive. Customs procedures, for example, havedefinitely improved. Although there is still progress to

be made.” Boevé: “The initiative for setting up Portinfolink is also a very important one.” Set up jointly bythe Port Management, Customs and the business com-munity, this new organization focuses on the speedydevelopment of an umbrella Port Community Systemfor port-wide information exchange. “It’s what ourcustomers have been asking for,” explains Boevé.“Good interfaces. More efficiency. It all comes down to the ease of doing business.”

“Unrestricted access is absolutely one of our foremost plus points. The Delta Terminal is

able to handle the largest ships, including future generation vessels, under any conditions.”

“It all comes down to the ease of doing business”

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What goes well, goes fast. Not even four years after it first started operations, TCT Belgiumhas already been able to expand its quay wall from 120 to 350 meters. More and more com-panies are discovering the advantages of ECT’s inland terminal in Willebroek. The mostimportant reasons: the strategic location in the hinterland, the reliability of the barge sectorand the just-in-time availability of cargo and/or empty containers.

“For the last three years, all our containers have beenhandled via TCT Belgium. Each week, 50 high cubesfrom the Far East are involved.” As the person respon-sible for Logistics, Customs and Far East Shipments atMassive, the multinational specializing in lighting,Frank Duysters is enthusiastic about the servicesoffered by the inland terminal situated on the Scheldt-Brussels Sea Canal. “On average, 40 of those contain-ers come in via the sea terminals in Rotterdam and 10via Antwerp.” The reason why Rotterdam has the larg-er consignment is quite simple according to Duysters.“It allows us to save time. The shipping companies wedo business with use Rotterdam as their first port ofcall in Europe.” From Rotterdam (or Antwerp), thecontainers are now moved to TCT by barge, whereasin the past this had to be done by truck, directly toMassive. Duysters: “Road congestion however madethis very hard to plan. And as we work according tothe just-in-time principle, this caused some seriousproblems.” Routing the containers via the inland ter-minal has made quite a change. “We offer TCT aweekly planning stating which containers we want toreceive at what time. Similar to a shuttle service, atruck goes back and forth between us and Willebroek,a distance of twenty kilometers. Each time, the driverdelivers a full container and picks up an empty.Everything’s highly efficient.”

Congestion-free TransportTCT Belgium also maintains such shuttle services withmany other customers in the area, explains managingdirector Martine Hiel. The entire region aroundWillebroek is characterized by a large and constantlygrowing number of production and distribution cen-ters of renowned companies. By making use of the ser-

vices offered by the inland terminal, these companiesgain much more control over their cargo flows. Inaddition, they avoid road congestion. An argumentthat will become even more important in 2004.That’s when Antwerp will start work on a lengthyand drastic renovation of the ring road around thecity. Hiel: “We offer a twice-daily barge shuttle (54TEU + 32 TEU) to the port of Antwerp five days aweek and a barge shuttle (99 TEU) to Rotterdamthree times a week. If necessary, we can add addi-tional shipping capacity. Here in Willebroek, we alsooffer our customers temporary storage and act as anempty depot for a number of shipping companies.”

ExpansionsWith volumes constantly on the increase it wasmore than necessary for TCT Belgium to expand.The recent extension of the quay wall from 120 to350 meters presents new possibilities, and certainlymore breathing space. Hiel: “As soon as one bargewas being handled alongside the quay, other shipshad to wait elsewhere in the canal. Now, they canalready moor and the mobile crane can move along-side the barge.” TCT’s terminal site at the momenteffectively covers 4.6 hectares. Another five hectaresare available for further extension. The directorexpects a first site expansion in 2004. After all, thepossibilities for growth are still far from exhausted.Coasters can also very easily reach Willebroek viathe sea lock. In addition, the inland terminal has itsown rail facilities. The role TCT Belgium plays inthe logistics chain of shippers, shipping companiesand forwarders can only become more important.

Bridgehead in Belgium

Strategic LocationTCT Belgium is strategically located beyondAntwerp directly on the Scheldt-Brussels SeaCanal. The important A12 and E19 motor-ways from and to Brussels, North France andbeyond are just around the corner. In addi-tion, Muizen - the rail junction for Europeanshuttle trains - is only about ten kilometersaway from TCT’s own rail facilities.

Photography: Filip Decoster

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There is a healthy tension in the air on the second floorof building 21 at the ECT Delta Terminal. The projectmanagers, consultants and programmers of Navis andGottwald Port Technology who from here work on theTotal System Solution (TSS) - as the project is officiallycalled - are fully focussed on the ‘Going Live’ of thenew terminal software. The first milestone is on the31st of January 2004, when ECT will in one go switchto new software for all of the administrative processes(customer relations, planning, order processing etc.) onthe entire Delta Terminal. TSS’ overall project managerReiner Bittner is fully committed to make sure thedeadline is met. Everyone and everything must be real-ly ready on the planned date for this first phase. Thechangeover must take place as smoothly as possible.Bittner works for Gottwald Port Technology, one ofECT’s external partners in the project. In addition tothe general management of the project, the Germancompany itself - together with Navis - will be responsi-ble for Phase II: the implementation of new softwarefor operating the terminal equipment. This will happenin 2005.

The replacement of the current administrative softwarein early 2004 is the responsibility of Navis. GordonTredgold is their project manager at ECT. Despite theworldwide experience Navis already has with the imple-

mentation of such systems, the Englishman considersTSS a particularly exciting challenge. “ConsideringECT’s size and complexity, this cannot be compared toany previous projects.”

In order to prepare it for future use at ECT, Navis hadto considerably customize its standard software. Thisupgraded software will also become part of the stan-dard Navis Suite. Tredgold: “We are currently carryingout very thorough integration tests at ECT. Navis isexploring a wide variety of business scenarios, to ascer-tain the performance of the software in the ECT envi-ronment.” The project manager is fully confident thatthe system will be able to deliver. “But if you compareit to soccer: even the best team faces a lot of challengesbefore it finally becomes the champion.”

Thorough Training“The quality of the new administrative software is onething. But the organization must also be able to workwith it,” emphasize Tredgold and Bittner. That’s whythe training of 500 users within ECT already com-menced at an early stage. First, so-called ‘super users’were trained. They are now passing on their knowledgeto other employees. What’s more, the old and newadministrative systems will run simultaneously in theweeks before the new software goes live. The day that

Navis and Gottwald Port Technology modernize ECT’s Terminal Software

Setting New Standards The ECT Delta Terminal is on the eve of a total renewal of

its terminal software. Contrary to previous projects, ECT

will not carry out this development itself. Instead, the

proven technology and expertise of German company

Gottwald Port Technology and U.S.-based Navis has been

chosen for. First, all administrative software will be

replaced. In 2005, the introduction of new software for

operating the terminal equipment will follow. The ulti-

mate goal: better services for ECT’s customers, improved

performance and more flexibility.

Gordon Tredgold (l) and Reiner Bittner: fully focussed on the ‘Going

Live’ of the new terminal software.

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ECT actually switches - in principal Saturday the 31stof January - the Delta Terminal will be closed for cus-tomers for some hours. Bittner: “Of course, we willkeep this period as short as possible.” The aim is tocomplete the entire operation in less than 8 hours witha maximum period of 24 hours. If the new system stilldoesn’t function accordingly at that time, ECT will fallback on the old software. The implementation willthen be postponed for a couple of weeks. The two project managers of course think it will notcome to this. Customers will in fact notice very little ofthe software change in Phase I. And after it has beencompleted, the effects may not be very obvious ineveryday practice. Tredgold: “However, a reliable andespecially a flexible business process is a prerequisite foran optimally functioning terminal.” One of thechanges will be the lay-out of the customer reports. Inaddition the system, even more than before, requiresproper electronic data exchange. ECT and the shippingcompanies are currently discussing the possibilities offurther boosting this use of EDI.

Navis LLCNavis LLC has more than fif-teen years of experience inthe development of a widerange of technological solu-tions for the transport andlogistics sector. At over 150facilities in 36 countries Navisproducts have helped in-crease the profitability ofmoving all types of cargowithin and between transferfacilities by encompassing theentire workflow of each ope-ration in a comprehensive,real-time information system.

Gottwald PortTechnologyGerman company GottwaldPort Technology has beeninvolved in the developmentand implementation of ECT’sautomated terminal conceptfor some fifteen years now.Recently, the company wasalso co-responsible for theautomation of the newContainer TerminalAltenwerder in Hamburg.

Target 40 Moves per Hour“And Phase I will of course constitute the starting pointfor replacing the software for operating the terminalequipment later on,” says Bittner. Gottwald is alreadybusy preparing for this. With the support of ECT. Thestevedore over the years has accumulated a lot of know-how in the field of automated terminal systems. In linewith the new strategy to contract out non core-businessactivities, a number of ECT employees have by nowmade the switch to the German company.The new software that is to be introduced in 2005promises to spectacularly improve performance.Bittner: “The contract states that at 40 moves per hourthe system will be such that at least 95 per cent of thetime the crane driver will not have to wait for AGVs(Automated Guided Vehicles). And it certainly doesn’thave to stop here. The TSS project has a third phase.After 2005, ECT will be able to benefit from the fur-ther development of the system, considering the factthat we also hope to work for other terminals in theworld.”

at the Delta

The new software that is to be introduced in 2005 promises to

spectacularly improve performance.

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25 June 1993: the Day the World’s First Robotized Container Terminal opened

Ten Years ofProven TechnologyOn June 25, 1993, it was the Netherlands’ Queen Beatrix herself who officially

opened the Delta/Sea-Land Terminal on the Maasvlakte. This first ever robot-

ized container terminal drew attention throughout the world. But what is far

more important is that the revolutionary terminal concept has totally proven

itself in use. Ten years after its opening, the Delta Dedicated North Terminal -

as it is now called - is still operating successfully.

“Like just about everyone else at that time, my firstreaction to the terminal concept was disbelief. Theidea that something like that could work! However,the creativity and the enthusiasm of the peopleinvolved quickly won me over.” In the late 1980s cur-rent management board member Wando Boevé wasECT’s man in charge of operations for American cus-tomer Sea-Land at the Home Terminal. In thatcapacity, he became involved in the plans for creatingSea-Land’s own dedicated terminal on theMaasvlakte. But not just any terminal. With 48Automated Guided Vehicles (AGV’s) and 24Automated Stacking Cranes (ASC’s) as the most

manifest components, a new, futuristic approach wasthe terminal’s hallmark. “Somebody had to ‘feed’ thedesigners with everyday practical knowledge,” saysBoevé. “How does a terminal work? During thedevelopment process I was expected to act as theactual end user.” Following the design and construction phase, Boevéwas assigned responsibility for the opening of theDelta/Sea-Land Terminal (and subsequently for oper-ations). “Labor organization was an important aspect.Our operational staff called it a ghost terminal. Noone wanted to work there. At the time, we didn’teven dare to use the term ‘robotized’. We preferred to speak about ‘heavily automated’. The challengewas to properly motivate our people. We had to make sure they didn’t feel like an extension of thecomputers - because, in fact, they’re not.”

“The whole start-up was a very exciting, very tenseperiod,” recalls Boevé. “But I wouldn’t have missed itfor anything. Sure, we all had days - and weeks - thatwe thought, ‘where are we headed with all this?’ Wehad all the terminal components thoroughly tested inadvance. But there comes the day that you have to golive. No testing or models could imitate the complex-ity of the volumes that in real life go through thestack and over the quay.”

Crucial ChoicesBoevé’s current management board colleague, JanGelderland, sat on the other side of the table at thetime. “I was one of the three negotiators representingSea-Land at the contract talks with ECT,” says

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Using a walky-talky, Queen Beatrix gave a crane driver the order to

discharge the first official container at the Delta/Sea-Land Terminal.

photography Martin van V

ught

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Gelderland. “Three ports were up for the contract:Antwerp, Zeebrugge and Rotterdam. And contrary towhat a lot of people have always thought, it was abso-lutely a neck-and-neck race.” In Gelderland’s opin-ion, ECT was lucky to have had a genuineentrepreneur in Sea-Land at the negotiating table.After all, Sea-Land’s founder, Malcolm McLean, wasthe inventor of the container. “Sea-Land was notafraid to accept a completely new concept.”According to Gelderland, now director of operationsat ECT, there were two crucial questions in the deci-sion to robotize. How would labor costs develop inthe future? And what would happen to the cost ofcapital? “Time has proven our assessment at the timeto be correct. The price of labor has only gone upand up, while the cost of capital has dropped.Terminals like the Delta/Sea-Land (now called DeltaDedicated North) - and later the Delta DedicatedEast and Delta Dedicated West - are the only way tosuccessfully face up to the competition inNorthwestern Europe. We need to do as much aspossible with the fewest number of people.”

A Proven ConceptAfter the contract between ECT and Sea-Land wassigned on April 14, 1988, Gelderland temporarilydisappeared from the scene, to work for the carrierelsewhere in Europe. But he was called back toRotterdam by Sea-Land to manage the terminal start-ing on July 1, 1993. Officially opened on June 25,the Delta/Sea-Land Terminal was fraught withteething troubles. “It wasn’t just the technology.People had to learn to work with the new system. For

six months, everyone at Sea-Land and ECT workedday and night to overcome those initial problems.”And with success, observes Boevé. “Looking back, allyou can say is that, since that first six months of

operations, the terminal has continued to prove itsworth. The concept worked then and it works now!Performance stayed right in line with the agreementsmade with Sea-Land. And don’t forget that there weretechnical limitations back then. Technology has pro-gressed immensely since 1989.” Both members of themanagement board also praise the completely paper-less data exchange between ECT and Sea-Land.Communication went via EDI for 100 per cent. Agoal ECT would very much like to achieve with itscurrent customers also.

Continuous ImprovementFollowing Maersk’s takeover of Sea-Land in 1999, theterminal was renamed the Delta Dedicated NorthTerminal. ECT now serves several carriers here: CMACGM, Hanjin, COSCO, Yang Ming, NYK and “K”Line. Gelderland, who started working for ECT in2000: “The Delta Dedicated North completely bearsthe scrutiny of criticism. The operational base speedhas increased steadily throughout the years. And withthe planned modernization of terminal software forthe entire Delta (see also article on page 18-19),performance will increase even further.”

“The concept worked then and it works now!”

Terminals like the Delta/Sea-Land (now called Delta Dedicated North) are the only way to successfully face up to the competition in Northwestern Europe.

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“Five times a week, we offer railshuttle departures connectingRotterdam´s Maasvlakte andWaalhaven terminals with anovernight service to Duisburg,Cologne, Mannheim, Munich andSalzburg. From these hinterlandhubs, our trains link up withKombiverkehr’s vast Europeanshuttle network. Their shuttlesmaintain services to Scandinavia,North and East Germany, Poland,Russia, Central Europe, Italy, Spainand so on.” Conliner’s managingdirector Dirk Broek has no difficul-ty whatsoever to paint a clear pic-ture of the new intermodal railoperator’s concept. FromRotterdam, container trains departto a limited number of destinationsin the hinterland. There, the cargois joined together with containersfrom Antwerp and other places inorder to compile new shuttlesbound for destinations deep intoEurope. “This allows us to generatethe volumes that make new areasaccessible from the west ports,”says Broek. “It is my strong believethat, in order to compete with theNorth German ports, Rotterdamand Antwerp must combine vol-umes to enable cost reductions inthe hinterland transport.”

Clear FocusThe managing director continues:“Conliner was especially set up byDeutsche Bahn subsidiary DBCargo to further boost rail trans-port to and from the west ports ofRotterdam and Antwerp. We areconvinced that there is a lot ofpotential. In the past, our sistercompany Transfracht used to han-dle this westbound traffic. But thiscollided with the services theyoffered from the North Germanports.” TFGI GmbH (Transfracht)now fully focuses on NorthGermany, newcomer Conliner onthe west.

More Initiatives NecessaryAccording to Broek, rail is the onlymodality with which Rotterdamcan properly serve the economicgrowth areas deeper in Europe.“There still is a sea of opportunitiesbeyond the obvious hinterland inthe Benelux and the regions aroundthe Rhine and Meuse rivers.” Thishowever does require a competitiverail market. Conliner is a new linkin this respect, but Broek has uptill now been somewhat disap-pointed in the effects of the liberal-ization of European rail transport.Besides some fairly successfulnational and carrier-bound initia-tives, he has not yet seen the emer-gence of a proper new independentrailway company that offers tailor-made, customer-specific tractionthroughout Europe. The choiceremains limited. From the grouppoint of view, Railion (also a sub-sidiary of DB) is the first choiceregarding traction for Conliner.“But we are an independent orga-nization. If the price-quality ratio isbetter elsewhere, we will opt forthat other company in order toserve our customers’ needs to thefullest. There is absolutely no trucksystem here.” Another prerequisitefor boosting rail volumes to andfrom Rotterdam is the constructionof the Betuwe Route. This dedicat-

ed freight railway line will direct-ly connect Rotterdam to theGerman railway system from theend of 2006. “It’s only possibleto penetrate new markets if thereis sufficient rail capacity.”

Speed ImportantBroek emphasizes that first andforemost, Conliner aims to com-pete with the truck and not withthe barge sector. “That’s why ourMannheim and Munich shuttlesfrom Rotterdam have a so-calledNachtsprung. Departure fromRotterdam one day, arrival at thedestination the next morning.Speed is important.” Comparedto Antwerp, Rotterdam has thesubstantial advantage that allcargo is concentrated at two railterminals. “In this way, you canserve all shipping companies inone go, which makes it easy tocompose entire trains for onedestination and maintain therequested transit time. What’smore, Rotterdam is often thefirst and last port of call for ship-ping companies. This also meanspotential time savings. The over-all product ‘Rotterdam’ - and thisincludes ECT - offers manyopportunities for optimum logis-tics.” Conliner’s managing direc-tor concludes: “The current -and also future - volumes to andfrom Central and Eastern Europeare predominantly moved bytrain. It is not so much that weneed to convince these customersto use rail, it’s much more aboutselling all the advantages of thewestern ports. This requires ajoint effort of the entireRotterdam community. Conlineris fully committed to that.”

With the establishment of Conliner, rail giant Deutsche Bahn has positioned a new, independentintermodal rail operator in the market for the transport between the so-called west ports(Rotterdam and Antwerp) and the rest of Europe. By making use of hubs in the hinterland, thisyoung company is already able to offer a great number of destinations including Eastern Europe.

GO WEST!

Conliner was especially set up

to further boost rail transport

to and from the west ports.

Page 23: 457.015 FF Summer 03 - ECT Hutchison Ports · the Japanese carrier MOL has been a cus-tomer of ECT for quite some time already. Chris Bourne, MOL’s managing director for Europe,

AntwerpMouscron

Athus

Basel

Bettembourg/Metz

Rotterdam

Venlo

LeeuwardenVeendam

Copenhagen

Budapest

Bucarest

Sopron

DuisburgWanne/HerneNeuss

Germersheim

Kornwestheim

Munich

CologneMainzMannheim

Zurich

PadovaBrescia

Salzburg

Vienna

MilanNovara

Prague

Malaszewicze/Brest

Bratislava

Promezia

to Russia

RUSSIA

BELARUSSIA

AUSTRIA

ITALYSPAIN

GERMANY

FRANCEHUNGARY

ROMANIA

BULGARIA

TURKEY

DENMARK

POLAND

UKRAINE

CZECH

SLOVAKIA

NETHERLANDS

BELGIUM

IRELAND

BALKAN

MOLDOVA

LITHUANIA

LATVIA

LUX.

SWITZERLAND

BRITAIN

Item

ECT's European Connections

Inland ShippingAn extra modality to the Europeanhinterland:

• fast• frequent• low-cost• reliable

Already 40 per cent of Rotterdam’slandside transport is carried out byinland shipping.

RailHigh capacity rail facilities and highfrequency connections:

• environmentally sound• especially for transport over longer

distances

Daily shuttle trains depart to variousdestinations throughout Europe.

FeederA ‘far out’ feeder network:

• highest number of scheduledconnections to more than 110European ports

• highest number ofdeparture/arrival frequencies

• feeder connections tuned tointercontinental shippingschedules

23>>

Page 24: 457.015 FF Summer 03 - ECT Hutchison Ports · the Japanese carrier MOL has been a cus-tomer of ECT for quite some time already. Chris Bourne, MOL’s managing director for Europe,

The port landscapes of photographer Jan Nass can be interpreted in many different ways. Consequently, everybody creates his or her own

fantasy world in his close-ups of often worn-out containers. However, chances are that ‘water’ will this time play an important role in those

fantasies.

The photos of Jan Nass ([email protected]) will be on exhibition at hotel De Beer in Europoort, Rotterdam, in October 2003.

Port Landscape II