This article will focus on the Dutch port of Rotterdam and how this small European country is pushing the world into a new era of maritime logistics, vessel designs and port developments, of which all play a crucial horizontally integrated role in providing early investors with multiple ways to both invest and grow their funds in these times of economic turmoil.
What is so unique about the port of Rotterdam that beckons our attention to the maritime sector and its chain of respective industries? Why should investors look beyond the port veil of simple import/export businesses when sourcing new methods of accumulating wealth? These two questions merit an unusually high degree of attention for any individual interested in developing themselves, their business strategies and fortune through probably one of the hottest markets to soon emerge out of the 21st century.
What do we know about the port of Rotterdam?
As of today, the Dutch port of Rotterdam is one of the most important ports in Europe and one of the most active ports in the world. It conducts on an annual basis roughly 450 million tons of cargo shipped out to every location around the world, and is the primary gateway for foreign goods entering the European market of over 350 million consumers.
But most importantly the port is pioneering marvelous research into developing for the first time in admiralty history a sustainable port equipped with futuristic technologies and modern innovations in every field related either directly or indirectly to the maritime world of logistics, goods and consumer behaviors.
- Rotterdam port has a prime location with accessibility via the sea, land and air;
- Rotterdam port has numerous companies and organizations active in the port and port industrial complex (Maasvlakte 2);
- Rotterdam port stretches 40 kilometers and about 12,000 ha (incl. Maasvlakte 2).
Why should companies consider a Rotterdam port jurisdiction to operate?
The port of Rotterdam is the biggest port in Europe and has become one of the largest in the world. Many companies have considered Rotterdam as a nexus of operations due to its prime location and accessibility to European consumers. Asian investors such as Japanese, Chinese and Indian companies are especially fond of using the port to establish a foothold in Europe, furthering their business strategies and capital gain.
From Rotterdam they are able to distribute their goods easily by different means to all over Europe via railway, trucks and barges of which are the most common methods to reach their final destinations. And for goods especially such as oil products and chemicals, pipelines are available which also connect to Germany and Belgium. Companies considering a Rotterdam presence would benefit from its unique advantages if they are primarily involved in logistics, goods and especially chemicals/oil.
- Rotterdam port has an industrial complex with over 45 chemical companies;
- Rotterdam port houses 5 world-class chemical clusters (petro) oil refineries;
- Rotterdam port has 10 production companies using renewables as their feedstock;
- Rotterdam port companies are under the jurisdiction of the Port Authorities, not the Dutch Government (special advantages).
All the companies which have chosen to invest operating costs into Rotterdam do so because of the ports unique location, brilliant logistic facilities and numerous utilities. But probably the most attractive reason for why these companies chose to position themselves in Rotterdam port is because of the mutual synergy which is created throughout the entire cluster. This means that unlike other places where companies compete amongst each other with in a small given space, the companies at Rotterdam's cluster directly provide their neighbors with feedstock and semi-finished products. It is common practice that waste products of one company serve as raw materials for another company. Landowners and port authorities are also particularly welcome to new companies (especially Asian) that are considering using the Dutch hub as a cornerstone for their European activities.
What is a Sustainable Port?
Apart from pitching the perfect location for foreign companies to operate in, the port is primarily looking to the future and envisioning a concept called a "sustainable port". With a consensus for the living conditions of future generations, the port has divided its concept of sustainability into three dimensions.
- Ecological - Being aware of and considering nature, the environment and energy;
- Economic - Maintaining and strengthening the position of the port in the market;
- Social - Improving the overall quality of life within the city and outer regions.
What Else Makes the Port Attractive to Investors?
Probably the most appealing aspect of Rotterdam port is Maasvlakte 1 and 2. Being an important hub with access to the North Seas, a growing number of companies have chosen the Dutch port for this very reason to operate over the past couple years. However, this influx of entrepreneurs and corporations has quickly filled up the space originally available. That is what Maasvlakte 2 was designed in 2008 to resolve by 2013. Expansion is crucial for the port to continue rising in response to growing demands of global expectations. Naturally, the overall future of the port will depend on foreign investments by companies and entrepreneurs, but the quality of life and concern for the environment are just as important as strengthening Rotterdam's position as a main port. Expanding the port and improving the quality of life will go hand in hand.
- Maasvlakte 2 will be a direct extension of Maasvlakte and will have access to all its connections within the European mainland;
- Maasvlakte 2 will create a new top location in the heart of the European market;
- Maasvlakte will have 1000 hectares of space for deep sea related container transport and distribution;
- Nowhere else in Europe will the largest ships in the world be able to moor 24 hours a day.
How Will the Port of Rotterdam Influence the International Trade Network?
Rotterdam is an international hub and market place for containers, crude oil, oil products, chemicals, bio-fuels and vegetable oils. Because of this accumulation of bulk in Rotterdam, many foreign trading companies have established themselves in or nearby Rotterdam to be close to these trade flows. Furthermore, in the port many prices are set for commodity product, and offer an integrated approach not just as a logistics hub, but as a developer of supply chain integration and consolidation of industries efficiently and effectively.
Rotterdam has a deep sea bed allowing large ships easy access to the port. Rotterdam is the only port in Europe which has such a deep sea bed, and definitely benefits from its undersea landscape. This however will influence the shipping industry and all companies around the world related to anything shipping from design, raw material and construction.
Super transport ships are being designed such (as by the Danish logistics giant Maersk), and constructed for the logistics of tomorrow. Our traditional cargo ships will eventually be replaced with new sustainable vessels with technologies and capabilities far beyond our conventional idea of boats. This is due to the distinct competitive advantages of the Port of Rotterdam. On a global scale, few international ports have the ability to compete with the tiny Dutch country. This in turn has had a ripple effect on not just maritime industries, but all industries involved in the supply chain of building, research and design of the future super vessels.
What are Rotterdam Port Advantages Over other EU Ports?
The primary advantage the Port of Rotterdam has over other continental European ports is the location of Holland to the European mainland and market as well as the excellent infrastructure that is available. The port is famous for its numerous methods of logistics around Europe and the world. In addition to this, the Dutch government wants to upgrade these channels of distributions such as rail, road and pipe lines connecting with major chemical sites in Germany, Belgium and France. Currently, the Dutch government is investing in increased road capacity, better rail connections, more use of the river for inland transport and pipeline connections with the Antwerp cluster. In addition to the ease of cargo distributions, the port offers foreign companies assurance of their willingness and ability to invest in infrastructure to be even more competitive than other ports.
Having invested
