“The agreement marks the next step in WWL’s long-term commitment to the Port of Zeebrugge, the largest ro/ro port in the world, and positions the company for continued growth and expansion all across Northern Europe,” said Ray Fitzgerald, president and chief operating officer of WWL Landbased.

Since beginning its relationship with the Port of Zeebrugge in 1999, Wallenius Wilhelmsen Logistics has expanded its operations at the port to include vehicle processing, technical services for heavy equipment, and yard management services. WWL has been seeking expansion opportunities within the port, and this concession allows the company to attract new business with Original Equipment Manufacturers (OEMs) and other third parties.

“Both WWL and the Port of Zeebrugge have experienced significant growth together over the last two decades, and this expansion paves the way for an exciting future,” said Hendrik Sohier, terminal manager, WWL Zeebrugge.

The Port of Zeebrugge, which handled 2.8 million units of cargo in 2017, serves as an important hub for WWL with an established network of deep-sea, short-sea and inland transportation connections. To keep up with the growing volumes, WWL has developed specialized service and storage facilities for cars, trucks and heavy equipment.

“The new concession agreement marks a great moment for both the Port of Zeebrugge and Wallenius Wilhelmsen Logistics, who have been loyal partners these past decades. As a port authority we are very thankful that WWL has chosen Zeebrugge for the expansion, and look forward to working together to make this terminal a success,” said Joachim Coens, CEO of the Port of Zeebrugge.

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At 136.5 million tons, in 2017 seaborne cargo throughput in Hamburg, comprising general and bulk cargoes, was stable at a high level. A slight downturn occurred in handling of containerized general cargo at 8.8 million TEU, being one percent lower. At 44.7 million tons, the bulk cargo total was at the previous year’s level.

When it came to container throughput, developments in 2017 varied, noted Axel Mattern, joint CEO of Port of Port of Hamburg Marketing. “Throughput of loaded boxes was unchanged at 7.6 million TEU, whereas for empty boxes we have to report a downturn of 88,000 TEU to 1.2 million TEU,” he added. “Against the background of the still outstanding fairway adjustment on the Elbe, and the economic sanctions still in force on trade with Russia that is of such significance for the Port of Hamburg, the result in the container segment is in line with our expectations.”

In Port of Hamburg Marketing’s view, the restrictions in force on the Elbe and the narrow tidal window are causing shipowners to use available transport space on their mega-containerships primarily to shift loaded boxes. Empty containers are increasingly being routed via other ports in Northern Europe. Of the big container ports there, Hamburg handles the lowest proportion of empty containers at 13.0 percent of the total, and the highest proportion of loaded boxes at 87 percent.

“Once the fairway adjustment has been completed, we shall be able to handle substantially more containers and bulk cargo in Hamburg. Terminals and other port facilities are well prepared for growth,” said HHM Executive Board colleague Ingo Egloff. “Increased draft on the Elbe and simplification of maneuvering by the construction of a passing zone on the Elbe downstream from Hamburg will facilitate more efficient use of hold capacities and crucially simplify passing for ultra-large vessels.”

The Port of Hamburg’s marketing organization also pointed out a further increase in average containership size. Since the first calls in the port by vessels with a slot capacity of over 18,000 TEU, the total number of these has tripled. In 2017 Hamburg alone received 102 calls by ULCVs in the size bracket 18,000 to 20,000+ TEU, a rise of 52.2 percent. In March the “CMA CGM Antoine de Saint Exupery”, with a slot capacity of 20,776 TEU, the largest-ever containership is expected to call in Hamburg for the first time.

For the handling segment bulk cargoes, comprising grab, suction, and liquid cargoes and contributing one-third to the Port of Hamburg’s volume, trends on imports and exports differed. A slight downturn was evident in imports, down one percent at 33.1 million tons. At 11.6 million tons, by contrast exports of these were slightly higher (up 1.1 percent).

2017 brought a record result for the grab cargoes segment, with the total 7.0 percent higher at 23.5 million tons. Imports at 19.6 million tons (+5.8 percent) benefited once again from a strong tailwind. At 7.8 million tons (up 5.7 percent), imports of coal set a fresh throughput record. At 10.1 million tons (up 6.8 percent), ore imports were at the highest level of the past decade. Exports of grab cargoes, 13.0 percent ahead at 4.0 million tons, performed even more strongly. At 4.0 million tons (down 5.6 percent) imports of suction cargoes (Agribulk) were weaker than in the previous year. Exports at 3.4 million tons (down 21.8 percent) were also weaker. This was mainly attributable to the drop in the volume of wheat exports. Totalling 9.5 million tons (down 11.9 percent), imports of liquid cargoes such as oil products, fell. By contrast, strong growth was reported for exports, which were 17.7 percent higher at 4.2 million tons.

Following the end of operations at Buss Hansa Terminals, throughput of conventional general cargo, at 1.4 million tons (down 6.0 percent) was lower than in the previous year, as expected. This segment covers large plant elements, heavy cargo and vehicle shipments.

On the occasion of the Port of Hamburg annual press conference, Hamburg’s Senator for Economics, Transport and Innovation spoke very hopefully on the development prospects for Germany’s largest universal port. “We have many questions to address concerning the future. We must get to grips with Industry 4.0, with digitalization and how this will change supply chains,” said Senator Frank Horch. “We must develop the port to enable it to play a prominent role. The Port of Hamburg must become a Port 4.0. We will improve the infrastructure, implement the fairway adjustments and secure good general conditions. When extending the port it will be important to identify how Hamburg as a broad based universal port can be economically sustainable, strong and generate new impulses. We are ready to take new paths – in usage, the type of development and in the partners we will achieve this with.”

One example Horsch cited is the new mobile standard 5G, which is being tested in the Port of Hamburg. “5G offers a level of security, reliability and speed that current mobile networks are unable to match. It provides the HPA with a wholly new set of application options,” said Jens Meier, CEO of the HPA. “The testbed allows us to study the future technology and co-shape the standard, which will not only benefit the port but the entire city of Hamburg.”

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The European Commission has required Belgium and France to abolish the corporate tax exemptions granted to their ports, so as to align their tax regime with EU state aid rules. Profits by port operators must be taxed under normal national corporate tax laws to avoid distortions of competition.

The commission has also requested information from and continues to assess the functioning and taxation of ports in member states to ensure fair competition in the EU port sector.

“Recently, the commission introduced new rules to save member states time and trouble when investing in ports and airports, while preserving competition,” said competition commissioner Margrethe Vestager. “At the same time, the commission decisions for Belgium and France – as previously for the Netherlands – make clear that unjustified corporate tax exemptions for ports distort the level playing field and fair competition. They must be removed.”

In Belgium, a number of sea and inland waterway ports (notably the ports of Antwerp, Bruges, Brussels, Charleroi, Ghent, Liège, Namur and Ostend, as well as along the canals in Hainaut Province and Flanders) are exempt under Belgian law from the general corporate income tax regime. These ports are subject to a different tax regime, with a different taxable base and tax rates, resulting in an overall lower level of taxation for Belgian ports as compared to other companies in Belgium.

Most French ports, notably the 11 grands ports maritimes of Bordeaux, Dunkerque, La Rochelle, Le Havre, Marseille, Nantes-Saint-Nazaire, and Rouen as well as Guadeloupe, Guyane, Martinique, and Réunion, the port autonome de Paris, and ports operated by chambers of industry and commerce, are fully exempt from corporate income tax under French law.

The commission considers that the corporate tax exemptions granted to Belgian and French ports provide them with a selective advantage, in breach of EU state aid rules. In particular, the tax exemptions do not pursue a clear objective of public interest, such as the promotion of mobility or multimodal transport. The tax savings generated can be used by the port operators to fund any type of activity or to subsidize the prices charged by the ports to customers, to the detriment of competitors and fair competition.

The two commission decisions make clear that if port operators generate profits from economic activities these should be taxed under the normal national tax laws to avoid distortions of competition.

Belgium and France now have until the end of 2017 to take the necessary steps to remove the tax exemption in order to ensure that, from January 1, 2018, all ports are subject to the same corporate taxation rules as other companies.

Since the corporate tax exemption for ports already existed before the accession of France and Belgium to the EU, these measures are considered as existing aid and the commission cannot ask Belgium and France to recover the aid already granted.

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The European Commission is proposing that an agreement to improve the working conditions of seafarers on board of EU-flagged vessels be enshrined in EU law.

The proposal will ensure that seafarers are better protected against abandonment in foreign ports, and will strengthen their rights to compensation in the event of death or long-term disability due to an occupational injury, illness, or hazard.

“Maritime transport remains crucial for Europe’s economic development,” said Marianne Thyssen, the EC’s employment commissioner. “Today’s proposal will strengthen seafarers’ protection and underpin fair competition in the maritime sector. Improved working conditions will also make the shipping sector more attractive for young Europeans. This proposal is an excellent example of how social partners support the Commission in keeping EU law fit for purpose.”

The global nature of the shipping industry, with different national laws applying depending on the state of the ship owner, the flag state of the vessel or the nationality of the crew, make it difficult for seafarers to get speedy and satisfactory redress in case of abandonment, injury or death. What the commission is proposing are improvements to the existing system.

The proposal will improve seafarers’ protection in the event of abandonment, including when the ship owner fails to pay contractual wages for a period of at least two months, or when the ship owner has left the seafarer without the necessary maintenance and support to execute ship operations. This will not only benefit seafarers, noted Thyssen, but also EU port authorities, as it will result in fewer abandonment cases.

According to data collected by the International Labor Organization, since 2004, 192 merchant ships have been abandoned, of which 21 were EU-flagged vessels. In 2016 five merchant vessels and 58 seafarers were abandoned in EU ports.

The proposal will also improve the mechanisms by which compensation is provided. It will make the payment of claims quicker and easier, which will help avoid the long delays in payment and red tape that seafarers or their families frequently encounter in case of abandonments or in case of death or long-term disability resulting from accidents or illness at work.

The International Labor Organization adopted the Maritime Labor Convention (MLC) in 2006, aiming to create a single, coherent instrument embodying all up-to-date standards applying to international maritime labor. It provides a set of rights and protection measures at work for all seafarers regardless of their nationality or the flag of the ship. So far the MLC has been ratified by 81 countries.

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The Swisstrain, a transportation product offered by Swissterminal AG, of Frenkendorf, Switzerland, os expanding its service portfolio. Beginning today, the train will serve the Port of Antwerp in addition to the Port of Rotterdam.

Swissterminal will switch its service connection from the inland hub of Duisburg and will use the hub Neuss Trimodal to offer reliable and efficient links to two of Europe’s most important sea ports. Customers of the Swisstrain will continue to benefit from the many advantages a hub offers, such as for example a high frequency of links to various terminals on a regular basis.

Swissterminal has also entered a partnership with the logistics service provider Optimodal Nederland B.V. By teaming up with Optimodal as an import agency, Swissterminal is present at the major transport hubs of both Rotterdam and Neuss and information, for example pertaining to the seagoing vessel, can be delivered quicker.

“The first Swisstrain carrying boxes with destination Rotterdam left our terminal in Frenkendorf in October last year,” said Roman Mayer, president of Swissterminal AG. “Since then we have noticed an increasing demand for transport solutions in the market. By adding Antwerp to our service portfolio, the change to Neuss Trimodal as a hub and Optimodal as import agency, we expand our market leadership as a provider of integrated and independent services for the transport and terminal services in Switzerland.”

The Swisstrain will continue to connect the terminal in Frenkendorf three times per week and the facility in Rekingen twice per week with the respective sea ports.

The link with the Port of Rotterdam is offered either via a pure rail connection or through combined transport using rail and barge. The Maasvlakte terminals, ECT-Delta, APMT 1 and APMT 2 as well as RWG and Euromax in Rotterdam are served by rail via Neuss according to the new schedule. If preferred, the Maasvlakte terminals can be reached by barge as well. The city terminals Uniport, Waalhaven, Botlek and RST are connected by barge three times per week.

The Antwerp service operates with two barge departures per week and serves five terminals at that port.

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The project will adding a deep-sea jetty for ships from Europe and will increase the size of the site from 850 to 1,100 acres—allowing Tilbury to accommodate larger ships from Africa, India,and the Far East.

Tilbury is the United Kingdom’s third-largest container terminal, dealing with 60 percent of the port’s traffic with Europe. The new berths are designed to meet rising demand for building materials. The terminal handled 40 million bricks last year, as well as food, steel, and consumer goods between Europe and the UK.

Tilbury is also where Jaguar Land Rover ships cars to South America and second-hand cars and construction machinery depart for west Africa. Shipments of recycled materials are also handled at the port.

Around half of the investment at Tilbury will be made by tenants. Amazon is constructing its largest fulfillment center in Britain on the site, tripling its employee numbers at Tilbury from 4,000 to 12,000 in the next decade. More retailers may also decide to package their goods on site at the port, rather than moving them to a separate site for distribution.

Officials of Forth Ports, the owner of Tilbury, see positives and negatives to expanding before the UK embarks on Brexit. Increased tariffs after Brexit will mean more pressure on supply chains to generate efficiencies.

Tilbury also faces competition from the DP World London Gateway Terminal which is capable of handling 9,000-TEU containerships.

Forth Ports expects Tilbury to grow its cargo numbers to 32 million tons by 2026. Increased demand for food, clothing, and entertainment in London will drive the growth. Cargo at the port has increased 30 percent since 2010 and rose eight percent in 2016 over 2015.

Trade at the Port of London reached its high for the decade in 2016, increasing 10 percent to top 50 million tons for the first time since 2008.

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The Russian Ministry of Economic Development released figures recently which show that shipments on Russia’s Northern Sea Route through November 2016 reached 6.9 million tons, a new post-Soviet high.

A Russian official says that increased volumes in the Arctic requires a larger traffic coordinating role. Dmitry Rogozin, a deputy prime minister and chair of the Arctic Commission, a Russian government agency, said that role should be delegated to the Northern Sea Route Administration, an office currently responsible for monitoring ship traffic and granting shipping permits.

“The administration should be not only a service which keeps track of shiploads, but also a service which has an organizing role, which attracts leading global shipping companies to the Northern Sea Route,” said Rogozin, according to local news reports.

Rogozin’s ultimate idea is to transform the Northern Sea Route Administration into an Arctic transportation ministry of sorts.

That proposal could be on the agenda when Russian President Vladimir Putin visits the port of Arkhangelsk on the Barents Sea to attend an Arctic conference in March 2017.

Many of the shipments over the Northern Sea Route are destined to the Yamal Peninsula and the Yamal LNG project and Novy Port. More than nine million tons of goods have been sent to the site over the last couple of years through Sabetta, a new seaport serving the Yamal LNG project.

Dmitry Rogozin openly criticized government bodies and ministries, and in particular the Ministry of Transportation, for their lack of coordination in the Arctic. He found the Transport Ministry’s new strategy document for development of Arctic transport infrastructure inadequate and blasted the Ministry of Economic Development for failing to deliver an updated version of a social and economic development program for the region.

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The ports of Antwerp, Hamburg, Rotterdam, Le Havre, and Bremen/Bremerhaven support the positions of North Sea and Baltic countries to designate the North Sea and the Baltic Sea as Nitrogen Emission Control Areas (NECA) beginning in 2021. The ports called on the Maritime Environmental Protection Committee members to support those submissions during its 70th Session held last week in London.

European ports are under pressure to reduce their environmental footprints. Ports that accommodate industrial clusters and are located in the vicinity of residential areas and/or Natura 2000 sites—protected natural habitats designated by the European Union—in particular feel the urgency to reduce their emissions in order to maintain their licenses to operate.

With the submission to designate the North Sea and Baltic Sea as a NECA there is an opportunity to further decrease the harmful impact on the environment. The shipping industry is responsible for an increasing share of nitrogen-oxide emissions which contribute to nitrogen deposits in protected sites and to nitrogen oxide concentration levels in residential areas. While significant advances have been made to curb nitrogen emissions from land-based sources, the shipping industry has not yet been able to achieve the same results.

International studies have shown that the designation of an NECA is a cost-effective way to reduce nitrogen-oxide emissions from seagoing vessels. There is a range of proven technologies available to comply with these NECA requirements including dual fuel engines or pure gas engines that can operate on liquefied natural gas (LNG), selective catalytic reduction (SCR), and exhaust gas recirculation (EGR).

Global standards implemented by the International Maritime Organization provide the building blocks to reduce emissions from maritime transport. IMO requirements for vessels built beginning in 2021 and operating in Nitrogen Emission Control Areas are a key instrument for nitrogen oxide reduction. These requirements push down nitrogen oxide emissions, which have detrimental effects on air quality and health, by about 75 percent compared to the Tier II, which are requirements that apply for all vessels built since 2011.

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The number of ships and services are staying the same “but the port rotations of each loop will be altered,” noted Drewry in a recent report, “and with fewer port calls transit times will be reduced.”

Maersk has said the changes are being made to “ensure it is better equipped to deal with contingencies.”

One of the benefits touted by the THE Alliance when it announced its formation recently is that shippers can look forward to “very attractive transit times.”

“It seems that the 2M carriers have decided to take up the challenge and speed things up ahead of their new rivals,” the Drewry report commented.

The 2M carriers decided not to increase the operating speed of vessels because that would use more fuel and bunker prices have doubled in recent months. Rather, the 2M carriers have decided to reduce the number of ports served. “Inevitably this means that they will lose some direct connections,” Drewry noted, “but the payoff is that transit times in surviving corridors can be reduced as more time is spent at sea.”

The reduction of port calls will come from Asia with the number of westbound departures from the region dropping from 36 to 33. One of the departures from Japan will also be eliminated. Kobe and Nagoya will no longer be served by 2M’s direct network to North Europe and only one weekly westbound call from Yokohama will remain.

“This,” Drewry speculated, “is perhaps an admission that they do not expect to be able to compete in the Japan market with THE Alliance and its three Japanese partners.”

Drewry research shows that, in fact, 2M will succeed at having the best transit times from three ports in Asia to Hamburg, and from five Asian ports to Rotterdam when the new network comes into effect next year.

“The reductions in transit times from 2M’s network re-tuning are not huge but it is clear that shippers can expect to see carriers and alliances putting speed and reliability at the forefront of their sales pitches,” Drewry concluded. “It is likely that the other two alliance groups will design their own networks to be competitive with 2M. Ships are unlikely to be sped up due to rising fuel prices and on-going cost-cutting measures so expect more streamlined services with fewer port calls.”

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This year’s conference, hosted in Turku, Finland, last week was entitled “Investing in smart and sustainable solutions for competitive Blue Growth” and focuses on unlocking investment in the blue economy.

“Throughout the world, more and more opportunities for blue growth and jobs are being identified,” said Karmenu Vella, Commissioner for Environment, Maritime Affairs and Fisheries. “The EU is in the lead on several blue economy technologies, such as renewable energy and clean shipping. We are leading because we have invested. Our commitment to sustainability is what gives us our competitive edge and what will open up new global business opportunities for our industry”.

“Our goal is to make Finland a forerunner in the bioeconomy, circular economy, and cleantech by 2025,” said Prime Minister of Finland Juha Sipilä. “Sustainable solutions speed up export and employment. With better regulation we can increase investments that will help boost economic growth.”

Finland is currently preparing a national development plan for the blue bioeconomy to capitalize on the growth potential of the sector.

In Turku, over 1000 participants chose among 21 workshops, five thematic sessions—such as investing in blue growth, improving ocean governance, and harnessing clean energy—and two leadership exchange panels. The two-day event was organized by the European Commission in cooperation with the City of Turku and the Finnish Government.

The role that ports play in the maritime economy was a recurring theme this year. A photo competition organized by the European Commission through social networks, called #MyPortForTurku, attracted almost 600 pictures from 166 ports in 24 countries. Fifty works, chosen by an independent jury for their distinction, were exhibited. They will then go through several other European cities as a traveling exhibition of the diversity and value of European ports.

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