The Port of Rotterdam has a complex legal structure with the Municipality of Rotterdam owning 70% and the Dutch State owning 30% of Port of Rotterdam N.V., which manages the port's operations. The Port of Rotterdam invests heavily in port infrastructure, averaging around €500 million per year and also taking on debt financing of €2.3 billion for the Maasvlakte 2 expansion project. The port generates most of its income from port dues paid on cargo volumes (52%) and leasing land and quay walls to private companies (45%). Lease contracts provide lessees with near full economic ownership of the land for 25-50 years to encourage major investments.

1. Legal structure Port of Rotterdam
Port of Rotterdam
Municipality of
Investment management Dutch State
Rotterdam
Port Development and Logistics
Jakarta October 10th, 2011
70% 30%
By: Capt. Kees. J. Weststrate Port of Rotterdam N.V.
Sr. Project Manager
Port of Rotterdam International
2
Investments PoR
Investment Management
 Investments Landlord Port for example:
 Investment management is involved in the planning of investment  Roads
projects;
 Dredging
 Projects in Rotterdam area and participations;
 Make businesscases, financial consequences of investment decisions,  Quay walls
advise board on investments;  Jetty’s
 Financial situation of PoR in the long term.  Basins / waterways
 Some recent projects:
 Nautical communication systems
 LNG Rotterdam, Pipeline project, Real Estate projects;
 Land (for example reclamation)
 Analysis Lahad Datu Malaysia, Businescase Suape Brazil,
Businesscase Rewas India, Research investment opportunities  Structural investments € 175 mln per year (not
Vietnam;
included Maasvlakte 2)
 Innovative projects GE;
 Take-over Port of Dordrecht, Valuation Moerdijk etc.  Investment Maasvlakte 2 is € 3 bln (to be financed by
PoR)
3 4
1

2. Example LNG Gate
MV2 5 6
Example LNG Gate Investments in the port
2008 - 2015: € 15 billion
Investment PoR Investment Gate Miscellaneous
4%
Buying land Storage tank Containers/Break bulk Infrastructure
14% 24%
Preparing land Regassification facilities
Land reclamation Pipelines
Roads Infrastructure (buildings, roads, Biofuels
lighting etc) within terminal 9%
boundaries
Slopes Jetties
Other Other
Refinery/tank storage
Total investment € 67 mln Total investment € 1.000 mln 15%
Energy/LNG
34%
7 8
2

3. Income sources PoR Income sources PoR (in mln €)
x
14
1. Port dues: 52% total income
2. Contract income: 45% total income
 Land lease 249 288
 Lease quay walls
3. Other Income (participations etc): 3% total
income
Port dues Contract income Other income
9 10
Port dues Contract income
 Port dues are related to cargo volumes  Lease of quay walls
 Tariff per meter dependent on draft;
 Tariff dependent on:
 Lease of land:
 Type of ship  Tariff per m2 dependent on
 Type of cargo  Market demand
 Loading of the ship  Competition
 Each year negotiations with business community  ROI of PoR and lessee
 Specific qualities of the location
 Commercial instrument
 Price-elasticity in a certain sector
11 12
3

4. Lease policy: optimal utilization Lessee has economic ownership
of the land
 Optimal planning of the port area:  In the Rotterdam port area it is possible to lease land
(25, 50 yrs) with economic ownership of the land for
 No activities that do not belong in a port area the lessee during the lease-period;
 Taking back land that is not being used
Municipality of Port of Lessee (private
 Encourage co-siting and clusters of activities Rotterdam Rotterdam companies)
 Redevelopment of areas that are not profitable any more
Legal ownership Economic Economic
 To be able to manage land prices, now and in the future
land rights land rights land
 A steady source of income for PoR
13 14
Economic rights for lessee Duration of lease contracts
 With these lease-contracts the lessee has  Standard 25 years + an option of another 25
almost the same rights as full ownership of the years
land e.g.:
 By determining the specific characteristics of
 It is possible to encumber the leased land a lease contract, a starting point is the
with a mortgage to finance operations investment of the lessee. Large investments
 It is possible to lease the land to another in industrial activities sometimes have long
private company (approval needed from pay back periods. This can lead to a longer
PoR) lease period (e.g. LNG terminals).
15 16
4

5. Economic impact Investments Port of Rotterdam
700 Prognose s MV2
 Cargo: 430 mln ton 600
Prognose s excl
MV2
Realization MV2
 Employment Port of Rotterdam Authority: 1.200 people 500 Realization excl
MV2
 Direct employment Rotterdam port area: 90.000 people 400
422
 Indirect employment: > 200.000 people 300
361
324
171
 Contribution Mainport Rotterdam to Dutch GNP 7% (> € 200
17
40 billion) 55
100 235
170 150 160
135 121
0
2007 2008 2009 2010 2011 2012
Ammounts: x € 1 million
17 18
18
Funding of investment ambitions
 Investments
 Investments PoR in 2010-2012 average € 500
mln/year
 Investments in MV2 of total € 3 bln Thank you for your
 Funding
 Equity PoR
attention
 Arrangements (debt financing) for € 2,3 bln Any questions?
 Dutch state is shareholder (€ 0,7 bln)
19
5