SPRING 2015 ISSUE. Further Growth. EGS Mastering Volumes. European Gateway Services at Transport Logistic Munich, 5 8 May 2015

Transcription

1 SPRING 2015 ISSUE 61 Further Growth EGS Mastering Volumes European Gateway Services at Transport Logistic Munich, 5 8 May 2015

2 Contents Fast Forward is also available as an app for the ipad and Android tablets. It can be downloaded in the Apple App Store and Google Play Market. Leo Ruijs New CEO of ECT Since March 2015, Leo Ruijs has been ECT s new Chief Executive Officer (CEO). The born-and-bred Rotterdammer knows the company from within. 8-9 Further Growth for European Gateway Services In our growing European network, we make container transport reliable, cost-effective and sustainable At Home in Southern Germany The establishment of an EGS office in southern Germany makes Rotterdam even more accessible 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 Rob Schoemaker, Rob Wilken (editor-in-chief) Translation Niall Martin, Dean Harte Photography Eric Bakker (unless stated otherwise) Layout Ontwerpwerk, The Hague External coordination and printing RWP, Voorburg Chief editor ECT Rob Bagchus No rights can be derived from this publication. P.O. Box 7385, 3000 HJ Rotterdam, The Netherlands T +31 (0) info@ect.nl egsinfo@ect.nl 4 News 7 People make the Difference The EGS Sales Team. 10 Mastering Volumes The ECT Delta Terminal is operating at full capacity. Day in, day out we show we are capable of handling these volumes, says Delta s General Manager Philip Beesemer. 12 A New Era Upscaling in the container industry looks to be going faster than ever. 14 Together We Can Do More Manufacturer Nutricia Advanced Medical Nutrition recently shifted a substantial container flow within the Netherlands from the road to inland shipping. 20 The Best Invention of the Past Century Taking as his subject the container, Dr. Bart Kuipers last year won a nationwide essay competition about what was the best invention of the past century. 22 Partnership in Reliability The new direct rail shuttle Rotterdam - Strasbourg. 23 Me and My Vessel Captain Sun Feng of the CSCL Globe. 24 Behind the Scenes The Technical Maintenance Department of ECT is responsible for ensuring the availability and reliability of all the equipment at the three deepsea terminals 24/7. 2

3 Introduction For and Together With You! Up till now, 2015 has been characterised by new record vessels. In early 2015, the CSCL Globe made its maiden trip as the largest container ship in the world, but roughly just two months later it was already surpassed by the MSC Oscar. Both ships with a capacity of over 19,000 TEU of course called at the ECT terminals. With currently six dedicated berths for Ultra Large Container Ships (ULCSs) situated directly on the North Sea, ECT is uniquely geared to handle these giants adequately. The developments in ship size have been tremendous. When I joined ECT in 2002, the first 8000-TEU vessel had yet to call. That did not happen until one year later, in the summer of The next new record ship for ECT had a capacity of nearly 9500 TEU and berthed in the spring of Since this year 2015, ships with a capacity of 19,000+ TEU are the new standard. That is almost 10,000 TEU more than the largest ships of less than ten years ago. And where will it all end? As before, experts are once again hurrying to explain that the size of container ships either has or has not pretty much reached its limits. But who of them is right? As always in its almost 50 years of existence, ECT sets its own course towards the market, taking into account all possible scenarios and looking to both the short and the long term. WE ARE SERVING ALL OUR CUSTOMERS AS BEST WE CAN Currently, our deepsea terminals are very busy. I elaborate on the underlying causes of this elsewhere in this Fast Forward. At this point, I would particularly like to emphasise that we are serving all our customers as best we can. And yes, that does require some creative planning. Especially regarding the waterside handling of barges and feeders at times. In close cooperation with the Port of Rotterdam Authority and the market, we are working on appropriate operational measures to relieve as much pressure from the system as possible. After all, service and performance are and will always be ECT s number one priority. We strive for continuous improvements in this respect and acknowledge the ongoing necessity to invest in technology, equipment and process enhancements. Both on the seaside, for example through the three ultra-large ULCS cranes which are heading our way, and on the landside. Like no other, we realise just how important it is that containers can be quickly moved onward to the hinterland. Hence the efforts we are making in the further implementation of a comprehensive European hinterland network via European Gateway Services. Records are nice. But for almost 50 years, ECT has already realised that remaining at the top is even more difficult than getting to the top. We work hard to stay there every day. For and together with you! Also read the interview with Leo Ruijs on pages 8-9. Leo Ruijs Chief Executive Officer of ECT 3

4 EGS AT TRANSPORT LOGISTIC IN MUNICH EGS Finalist 2015 Containerisation International Awards European Gateway Services (EGS) is one of the six finalists for the 2015 Containerisation International Awards in the category Logistics Provider of the Year. From May 5 to May 8, 2015 European Gateway Services (EGS) will be prominently present at Transport Logistic in Munich. At the world s biggest logistics trade fair, EGS will have its own stand. Here, you can inform yourself about all aspects of the services provision within EGS s constantly growing European transport network. What s more, you can try out a short demo version of the so-called SynchroMania game as well (also see the news item on page 6). The nomination is based on the fact that in only a few years time, EGS has successfully managed to create a comprehensive European hinterland network offering reliable, cost-effective and sustainable container transport to carriers, freight forwarders, logistics service providers and shippers alike. EGS now already handles close to one million TEU annually. An independent jury will announce whether EGS has won the award during a festive gathering on the 18 th of June 2015 in London. The 2015 Containerisation International Awards are an initiative of the leading container news service with the same name. You will find EGS at Transport Logistic in Hall B3, Stand 410. CONTINUOUS INFLUX HYBRID AGVs By now, 56 of the 84 hybrid Automated Guided Vehicles (AGVs) which were ordered from the Dutch company VDL have arrived at the ECT Delta Terminal. According to the planning, ECT will take delivery of the last new vehicles in the summer of The AGVs of VDL replace equipment of the first generation and combine a better performance twice as fast, suitable for twin carrying with substantially lower emissions. 4

5 News E-GATE APP OFFERS PUSH MESSAGES As announced in the previous edition of Fast Forward, it is now possible to receive push messages via the E-Gate App of European Gateway Services. By selecting this option, users will automatically receive an alert when something changes. This makes the E-Gate app even more user-friendly. The following push messages are available: Status messages about the actual time of discharging of a container, both at the three deepsea terminals of ECT in Rotterdam and the EGS inland terminals TCT Venlo, DeCeTe Duisburg, TCT Belgium and MCT Moerdijk; Actual Times of Arrival (ATA s) of deepsea vessels, feeders, trains and barges at the three deepsea terminals of ECT in Rotterdam; Service notifications related to the deepsea terminals; News about European Gateway Services. By default, you can switch push messages for news and service notifications on or off. ATA and container status push messages need to be set for each event. Receiving push messages is free-of-charge for ATA s, service messages and news. A container status push message costs No E-Gate App on your mobile phone yet? Download it now for free in the Apple App Store or Google Play Market. New CFO ECT In line with the appointment of Leo Ruijs as ECT s Chief Executive Officer (CEO), Wilgert Willems was appointed Director of Finance of ECT and member of the Management Board as of the 15 th of March Willems has been working at ECT since 1999, most recently as Manager Planning & Control. EUROMAX TERMINAL ORDERS FOUR SHORETENSIONS The Euromax Terminal Rotterdam has ordered four ShoreTension units. Invented by the boatmen in Rotterdam, the flexibly deployable mooring system makes it possible to firmly moor a ship alongside the quay under any weather condition. This offers substantial benefits in terms of both safety and container handling. When a ship is firmly moored alongside the quay, cranes are able to operate far more efficiently, also near the bridge. Moreover, the ShoreTensions make it possible to moor a vessel in such a manner that the hawsers are almost perpendicular to the quay. This creates more space. For the terminal, that may just yield enough room to moor an additional barge, feeder or even deepsea vessel. The ShoreTension mooring system is globally exploited by ShoreTension Holding in which ECT is a 50-percent shareholder. More information: AUSTRALIA AND NEW ZEALAND ALSO EMBRACE SHORETENSION More and more ports and maritime organisations are realising the benefits ShoreTensions offer in terms of increased security and efficiency. So far in 2015, the ShoreTension organisation has for example received orders to supply the systems to the port of Taranaki in New Zealand and the port of Freemantle in Australia. The port of Taranaki has ordered four units, the port of Freemantle no less than twelve. Both ports are regularly confronted with swell; Freemantle in addition frequently sees hard winds. The ShoreTensions ensure that ships can be moored with great stability under these conditions as well. All New ASCs into Operation All eleven of the Automated Stacking Cranes (ASCs) previously ordered from Kalmar for the ECT Delta Terminal are now up and running. The eleven ASCs have replaced older versions that dated back to the early days of terminal automation. The new equipment can lift a single container over five others, thus further boosting the ECT Delta Terminal s stack capacity. 5

6 News PLAY THE SYNCHROMANIA GAME In the European hinterland transport, European Gateway Services (EGS) aims to make the difference for customers through synchromodality. But just what is synchromodal transport? What does it really mean? To make that clear and thus help to realise a mind shift, the research agency TNO, EGS, ECT and Danser Containerline have jointly developed a serious game: SynchroMania. Financial support came from the Dutch Knowledge and Innovation Top Consortium and the Stichting voor Maatschappij en Onderneming (Foundation for Society and Enterprise). In three gaming levels, the online game lets players experience the benefits of allowing a synchromodal inland operator to transport containers to the hinterland without restrictions related to mode of transport, route and time slot, thus enabling it to always choose the best option for the customer for that specific situation. While in level 1 there are still many limitations due to, for example, the demands of the customer in terms of fixed modes of transport or routes, in levels 2 and 3 the players are granted more flexibility, thus progressively resulting in a more ideal planning, if played well. Playing SynchroMania allows users to experience what it really means to operate synchromodally. The core of the game is to convince companies to break away from fixed patterns and start thinking in terms of networks rather than specific barges and trains. SynchroMania is primarily intended for planners and sales representatives, but customers can also play the game. In this way they can personally experience the added value of working with a synchromodal logistics partner who delivers containers reliably and sustainably right up to the front door. Play SynchroMania yourself? During Transport Logistic from May 5 th to 8 th in Munich, any visitor to the stand of European Gateway Services can play a shortened demo version of SynchroMania. We invite you to experience in person what synchromodal transport has to offer you. EGS can be found in hall B3, stand 410. Three New ULCS Quay Cranes on their Way Three additional quay cranes for the handling of Ultra Large Container Ships (ULCSs) are expected to arrive at the ECT Delta Terminal in early June The quay cranes, built by ZPMC in Shanghai, are identical to those five taken into operation during the course of The new quay cranes are among the biggest in the world and excellently suited to the discharging and loading of ULCSs of 19,000 TEU or more. The three new acquisitions now on their way are scheduled to be operating at full swing at the ECT Delta Terminal from the fourth quarter of this year. Read Fast Forward on your Tablet This edition of Fast Forward is also available to you on your tablet, including many extras. The app version among other things contains short videos showing the efficient logistics of hinterland transport between Rotterdam and the EGS inland terminal in Venlo, offers an impression of the everlarger ships calling at ECT and gives a peek behind the scenes on board the CSCL Globe. Don t have the Fast Forward app on your tablet yet? Then download it now free of charge from the Apple App Store or Google Play Market. 6

7 People make the Difference European Gateway Services (EGS) offers shipping companies, logistics service providers, freight forwarders and shippers an extensive and evergrowing network for all their transport requirements throughout Europe. Synchromodal, so always reliable, efficient and sustainable. The EGS sales team is ready to provide every customer with the right advice. No matter where in Europe the customer is located, we offer him optimum access to seaports through reliable and dedicated transport services with a low carbon footprint. JOHN MONTEIRO SALES EXECUTIVE A one-stop-shop for all of Europe. Through one contact person, the customer can easily book for all the destinations in our network. RONALD DOOREWAARD COMMERCIAL EXECUTIVE Within the EGS team, we always work together with the customer to select the most suitable solution for his European transport needs. AMANDA DE BRUINE MARKETING ANALYST EGS is a neutral partner with a large transport network. Through our synchromodal approach, we are capable to make the difference for many parties. FABIAN HEIJNEN SALES EXECUTIVE The logistics needs of our customers are the starting point for a reliable service provision throughout the whole of Europe. We combine quality with sufficient transport capacity, well-known partners and a proactive approach. A green solution for the customer; through barge and rail we take as many trucks as possible off the road. SEBASTIAAN VAN DORSSER INSIDE SALES EXECUTIVE MARTINE HIEL HEAD OF SALES Missing in the photo is the Sales Executive for southern Germany, Marilyne van Hoey Smith (see pages 18-19). 7

8 Leo Ruijs New CEO of ECT Since March 2015, Leo Ruijs has been ECT s new Chief Executive Officer (CEO). The born-and-bred Rotterdammer knows the company from within: he previously served on ECT s Management Board as Chief Financial Officer (CFO) for more than ten years. Now, Ruijs has succeeded Jan Westerhoud at the helm of the company. Initially, I never planned on staying with ECT this long, says Leo Ruijs (49). His story confirms that life can sometimes take an unexpected turn. After a career in accountancy, IT and real estate, he joined the ranks of ECT in In 2004, the then-cfo however changed jobs and Ruijs was asked to take his place on the Management Board. Although he did not have any real port experience at the time, he was no stranger to the port and ECT. I come from a true Rotterdam family. My father was a tallyman and at birthday parties of my parents and their families, there were always talks about three cousins who worked at ECT. Today, Ruijs knows the container sector like the back of his hand. He considers the change in scalability of the industry and the realisation of the Euromax Terminal as two of the highlights of the last decade. What makes this work so much fun are the dynamics - every day is different - and the high profile of our company. ECT, the port of Rotterdam and Schiphol Airport are unique hotspots with an importance and relevance that far exceed the Netherlands BV. In Contact with the Customer The new CEO explicitly considers himself part of the Management Board. You only function as well as the people who work for and with you. This is something I have always propagated. We face the challenges of ECT together. ECT s number one priority will continue to be the customer, of course. But in maintaining this strong customer-orientation, we must however also strike a proper balance between the interests of our other stakeholders: the employees and the shareholder, explains Ruijs his philosophy. For a healthy company with good service levels, those three really need to be in a proper balance. As CEO, Ruijs is highly looking forward to having regular personal contact with the customer. The head offices are of course very important in that respect, but the shipping line offices in Rotterdam do matter as well. They are at the very heart of our business and ultimately constitute your strongest supporters. Supply and demand must remain in proper balance Pressing Ahead with EGS On the landside, Ruijs is noticing that another line of business, subsidiary European Gateway Services (EGS), is continuously improving. The concept is solid. I am a strong believer in the added value of the synchromodal push and pull approach. In 2014, EGS already handled almost one million TEU. Nevertheless, I feel we are only just getting started. We had to develop the entire EGS organisation and the required systems from scratch. That took time. Now we have to press ahead, whereas the competition in the hinterland transportation is fierce. We want to prove that EGS is a cut above the rest and organise the flow of containers together with our partners more efficiently. 8

9 Photo: Bas van der Wel We are doing everything we can to properly manage the current influx. Major Challenges It is just one of the challenges Ruijs and his team will be facing. The year 2015 started out well for the Western European ports in the Hamburg-Le Havre range. All the terminals in the major container ports are running at full capacity. ECT is no exception. The more business the better - that essentially applies to all companies of course and each link in the logistics chain will agree to this. However, ECT is facing the additional challenge at the moment that the new terminals on Maasvlakte 2 (Rotterdam s newest port area), which were scheduled to come on stream last year have not been really operational yet. Therefore, ECT s existing capacity and resources have to be used to the maximum extent to adequately handle all the volumes. At times it will be a tight fit at our terminals in 2015, says Ruijs. But we will pull it off, one way or the other. The new CEO realises that outsiders might be confused by the fact that ECT is now running at more than full capacity, while it has always expressed concern about the rapid pace of commissioning of that very same Maasvlakte 2. Mind you, ECT has never opposed the construction of the new port area. Nor have we ever denied the need for additional capacity. Our main concern was the issuing process for the two new container terminals there (RWG and APM Terminals Maasvlakte II, ed.) at the same time. Supply and demand must remain in proper balance as a commonly recognized basic principle from an economic perspective. Simultaneously commissioning two new terminals will still create substantial overcapacity and the big question is how long it will take for the market to absorb. However, in contrast to the original start up scheme, neither of the two new container terminals are actually handing any substantial container flows yet. It is therefore that the current surge in volumes needs to be handled primarily by ECT. An additional challenge is that we need to do this adequately while at the same time we need to prepare ourselves for the fact that cargo flows can be relocated to another terminal just like that. Needless to say we are doing everything we can to properly manage the current influx though. Optimal Utilisation of Capacity In a joint statement towards the market, ECT and the Port Authority have indicated that they will make every effort together to make optimum use of the available capacity in The entire logistics chain has been asked for support in this. Ruijs: It s only then that we can optimally serve Rotterdam s interests and, most importantly, that of the customer. 9

10 Mastering Volumes The ECT Delta Terminal is operating at full capacity. The influx of containers is huge and the occupancy of the quays is high. Ever larger Ultra Large Container Ships (ULCSs) are changing the scale of container handling, with call sizes growing steadily. Day in, day out we show we are capable of handling these volumes, says Delta s General Manager Philip Beesemer. But it s not all plain sailing. Beesemer explains the dilemma ECT is facing. The new container terminals on Maasvlakte 2 (the new Rotterdam port area, ed.) were due to open in That became 2014 and now it is 2015 without a clear picture when the new terminals will come into (full) operation. Obviously ECT took steps in anticipation of the new terminals coming online. After all we were informed about the fact that a number of deepsea services were due to transfer over there. Optimizing container flows is the joint responsibility of the entire logistics chain That still hasn t happened. Given the rapidly increasing number of Ultra Large Container Ships, Beesemer is proud and happy that HPH / ECT continued to invest in people, systems and equipment at the ECT Delta Terminal. Since mid-2014, Delta s entire operation has been coordinated from one central location. And thanks to the removal of virtual systems boundaries, the south side of the Delta now operates as a single, highly efficient terminal. What s more, new ULCS quay cranes, Automated Guided Vehicles (AGVs) and Automated Stacking Cranes (ASCs) are working at full tilt. Beesemer: At the ECT Delta Terminal we can now offer customers four ULCS berths for handling container vessels of 16,000 TEU up to 20,000 TEU. Alongside there is plenty of room for other vessels. Taking the north and the south side of the terminal together, we have a total of 38 deepsea quay cranes at our disposal. That s not all. After taking five of the largest-ever ULCS quay cranes into operation last year, the ECT Delta Terminal is set to take delivery of a further three same-sized ULCS cranes from ZPMC. The new quay cranes are due to be taken into operation in the fourth quarter of To stay ahead of the competition, we are together with our experienced and highly motivated workforce also experimenting with various future-oriented techniques. 10

11 We strive to help all customers on their way as efficiently as possible Joint Responsibility Amidst all the bustle the ECT Delta Terminal also succeeds in setting some great records, such as the 11,051 container moves on the Thalassa Hellas recently (see article on pages 12-13). Gigantic call sizes like this can however also be seen as symbolizing the bigger challenges that ECT and the port as a whole are facing. The efficient handling of the current peak volumes requires the close cooperation of all parties involved. ECT and the Port Authority recently issued a joint statement indicating they will closely work together to achieve this. Beesemer: Various operational measures will be necessary at the ECT terminals as well. The exact details we aim to formulate in close consultation with all our customers and logistics partners. Measures being considered include a reduction in terminal dwell times, a limit on the storage of empty containers in the stack, strict enforcement of cargo opening and cargo closing times, optimizing barge calls sizes, optimizing the quality of pre-information and more. Conveyor Belt The ECT Delta Terminal is like a conveyer belt at the moment, says Beesemer. A deepsea vessel has barely left before there s another to take its place. Around and in between these mother vessels we try to schedule feeders and barges as efficiently as possible. Given the current situation a degree of waiting time can t always be ruled out, the general manager acknowledges. We however of course strive to help all customers on their way as efficiently as possible. Beesemer adds that on the landside handling of road and rail transport there is in general not an issue. At the ECT Delta Terminal we really do all that s humanly possible to handle the enormous volumes efficiently, Beesemer says in conclusion. We re pretty successful at that, but we can t do it alone. Optimizing container flows is the joint responsibility of the entire logistics chain. It takes two to tango! 11

12 A New Era Fast Forward s photographer sometimes complains about it: All the ships I photographed two years ago at the ECT deepsea terminals now look dated. Upscaling in the container industry looks to be going faster than ever. In early 2015 ECT welcomed China Shipping Container Lines CSCL Globe for the very first time. Measuring 400 metres in length, 59 metres in width and with a capacity of 19,100 TEU, the CSCL Globe at that point ranked as the biggest container vessel in the world. Meanwhile its sister ships CSCL Indian Ocean and CSCL Pacific Ocean have also become regular visitors to the Euromax Terminal Rotterdam with more 19,100 TEU vessels from the Chinese shipping line yet to come. Even Bigger With the MSC Oscar s call to the ECT Delta Terminal in mid- March 2015, also the world s current largest container vessel (395 metres long, 59 metres wide, capacity 19,244 TEU) has since visited ECT. Shipping line MSC plans to deploy many more of these giants within the coming period, while the United Arab Shipping Company (UASC) and CMA CGM also expect to take delivery of their first 18,000 TEU vessels within the near future. Other shipping lines aren t far behind, deploying an increasing number of Ultra Large Container Ships (ULCSs) as well. 12

13 Continuously increasing Call Sizes In keeping with the ever-larger vessels, call sizes are continually increasing as well. Discharging and loading 5000 to 6000 TEU on a single vessel is no exception at ECT. Its deepsea terminals are fully equipped to handle the ULCSs as efficiently as possible (see also feature on pages 10 11). The absolute record to date is the handling of 18,500 TEU (5215 containers offloaded and 5836 containers loaded) during the visit of Evergreen Line s Thalassa Hellas to the ECT Delta Terminal in mid-february this year. New Trend The Thalassa Hellas record-breaking visit to the ECT Delta Terminal was its only port call in North Western Europe. After visiting Rotterdam, the ship immediately set sail back to Asia. It is exemplary of a trend whereby shipping lines with their ultra large vessels capitalise on the depth advantages offered by Rotterdam and the ECT terminals in particular. Increasingly, ULCSs bound for Europe call at Rotterdam first to discharge. With less draught, the ships are subsequently in a position to call at other European ports. Before leaving Europe, the vessels then return to ECT in order to load up to maximum levels. In this way the route via Rotterdam always offers shippers in Europe s hinterland the best overall transit times: both inbound for imports and outbound for exports. Video imagery of the recent calls of ULCSs to ECT is available through the free Fast Forward app for tablets. No Fast Forward app yet? Download it free-of-charge from the Apple App Store or Google Play Market now. 13

14 Nutricia shifts Substantial Container Volumes to Inland Shipping Together We Can Do Manufacturer Nutricia Advanced Medical Nutrition recently shifted a substantial container flow within the Netherlands from the road to inland shipping. European Gateway Services (EGS) is one of the parties which contributes to making this transition a success. A modal shift does not always need to involve deepsea transport. Approximately foot containers of Nutricia a year are now traveling by barge from the west to the southeast of the Netherlands. About 2000 boxes are moved back in a similar fashion as well. All transport that was previously carried out by truck. In line with the company s own environmental aims, Nutricia is consequently achieving a significant modal shift. For the company, 4000 fewer truck movements result in a CO 2 reduction of almost 25 percent on this route. Combination Inbound - Outbound Together with the Promotion Council for Inland Navigation, Nutricia has long studied the feasibility of the shift. The crux turned out to be the combining of inbound and outbound cargo flows. Furthermore, the project brings together various logistics parties, each of which plays a specific role. Samskip Intermodal bears overall responsibility and arranges the sea transport, Van den Bogerd Transport performs the local truck transport on both sides of the country and EGS takes care of the barge transport across the Netherlands and the handling at its own inland terminal in Venlo in the southeast Netherlands. Specific Tasks Fabian Heijnen, Sales Executive of EGS, broadly explains how the service works. A specific production batch of Nutricia in Zoetermeer (near The Hague, ed.) is involved which is mainly manufactured in the weekend. Van den Bogerd Transport next moves the containerised products by truck to the RST container terminal in Rotterdam some 40 kilometres away. There, the barges of Danser Containerline, which maintains a scheduled service to Venlo for EGS, pick up the boxes. This includes a number of Nutricia containers from Liverpool which are also bound for Venlo. Once at our inland terminal in Venlo in the south-east Netherlands, drivers of Van den Bogerd Transport take care of the last mile to the European distribution centre of Nutricia a couple of kilometres down the road. From there, they bring back containers filled with other Nutricia products to the inland terminal. We transport these aboard our EGS barges to the RST terminal in Rotterdam; from here, Samskip arranges the overseas export to various European destinations. Intensive Consultation This fully completes the cycle. Containers are almost fully laden in both directions. The transport of empty containers is limited to the route from Rotterdam to Zoetermeer. Calculations indicate that this approach annually eliminates 585,000 road kilometres in total. In Heijnen s experience, the entire logistics process for Nutricia runs like a well-oiled machine. All the partners in the cooperation take their responsibility, the reliability of the service is great. The service was launched in October 2014 on a limited scale; we then gradually expanded until December During this phase, all parties frequently consulted with one another, with at least one conference call a week. This is the way to quickly eliminate potential bottlenecks, says Heijnen. And as things progress everything just starts running smoother and smoother. A small example of the good coordination and efficient operations is the cooperation of EGS and Van den Bogerd Transport for the transport in Venlo between the inland terminal and the European distribution centre. After a driver has identified himself upon arrival at the inland terminal by means of his Cargo Card, a list of available containers is waiting for him in a locker. The driver can each time independently select a container from this list and flag it for collection at the inland terminal using the Do-It-Yourself Desk which is present in the same room. 14

15 More Modal shifts similar to that of Nutricia can be achieved on various intracontinental routes As a result, the driver is back on the road again in no time at all. All the links seamlessly connect anyway. Heijnen: Containers collected by barge at RST on Sunday are available in Venlo on Monday morning. We then put the first export containers on the barge again on Monday afternoon so that they can be moved aboard the sea-going vessel of Samskip at RST on Wednesday. More Projects? As far as EGS is concerned, this is not the last project involving cooperation between various parties on an equal footing. Heijnen: In my view, this constitutes a blueprint for a new type of cooperation in which different links in the supply chain form an ad hoc alliance with one another for the benefit of a shared customer. We at EGS are happy to think along in these kinds of modal shift projects and are really willing to invest time and energy in them. Shifts similar to that of Nutricia can be achieved on various intracontinental routes. A modal shift does not always need to involve deepsea transport. With our extensive network and reliable service provision, we at EGS are in a perfect position to play a role in that. Six Sailings a Week As part of a more comprehensive service, EGS offers six barge sailings a week in both directions on the route Rotterdam - Venlo. The barges call at all the relevant deepsea terminals and empty depots in Rotterdam; in Venlo, the inland terminal of EGS functions as the hub. All the links seamlessly connect. 15

16 Further Growth for European Gateway Services In our growing European network, we make container transport reliable, cost-effective and sustainable. Managing Director Mark van Andel clearly summarises in one sentence what European Gateway Services (EGS) represents to customers. The concept is catching on. The ECT subsidiary now already handles close to 1 million TEU annually. Throughout Western and Central Europe, EGS currently offers customers a network of nineteen inland terminals which are linked by barge and rail with Rotterdam, other seaports and each other. A unique concept, says Van Andel: No other party in our sector uses a comparable network approach to move containers to and from the European hinterland. In 2014, the EGS network was expanded with a new rail shuttle connecting Rotterdam with Austria. Furthermore, a direct rail shuttle to Strasbourg (see feature page 22) was launched on the 1 st of January Van Andel: EGS will continue to grow in First, we intend to raise the frequency of the Rotterdam-Bayern Express rail link between Rotterdam and southern Germany as soon as possible. In both directions, we want to increase the number of departures from four to six per week. On top of that, we aim to further expand the network. We are specifically looking at connections with the Middle Rhine area (Mainz, Frankfurt and further east), southern Belgium/northern France and the northern part of the Netherlands. At the heart of EGS continuous expansion are the vast container flows which converge in Rotterdam. Van Andel: The deepsea terminals of ECT for example handle more than 100,000 containers per week. This volume gives us a unique position to offer efficient and sustainable hinterland transport solutions. It s a starting point which no other party can match. Whether you ship a single box or have large flows of containers to carry across Europe, all can benefit from this. We work for shipping lines, logistics service providers, freight forwarders and shippers alike. More and more larger companies are interested in our network approach: they prefer to have one single point of contact, one approach and one invoice. Reliability First EGS has a clear mission. Van Andel: Customer research has shown that reliability - or, in other words, on-time delivery - is by far their top priority. The daily practice of European hinterland transport however shows there s still a lot to gain in this respect. As European Gateway Services, we take the lead in achieving optimal reliability. What s more, our use of barge and rail enables us to meet the growing emphasis customers are placing on sustainability. The good thing about our business is that this often translates into cost savings as well. To make this all happen, within EGS, we embrace the use of synchromodality. EGS simply makes it happen Synchromodal Approach Synchromodality is the optimal use of transport modes, transport routing and transport lead times for delivering a container on time. EGS aims to be the leader in this development. At EGS, work is currently in full swing on the development of a so-called Synchromodal Trip Optimizer. This advanced planning tool is expected to become available in the fourth quarter of The tool allows for each container to be efficiently planned, irrespective of mode of transport and route, in such a manner that the customer will always receive his container on time anywhere in Europe. This could very well mean that a container destined for a warehouse in the vicinity of Venlo is for example first moved by rail to Duisburg because this connection is the most optimum choice for that particular situation. The EGS 16

17 The good thing about our business is that the use of rail and barge often translates into cost savings as well. customer however does not notice any of this; he or she orders the container to be at a certain location at a certain time and at a certain price and EGS simply makes this happen. Van Andel realises that synchromodality requires a truly different mindset, also among customers. What we are factually asking for is a certain degree of freedom: in terms of selecting the mode of transport, the route and the timeframe. This allows us to consistently make the best combinations. All the customer really needs to tell us is when the container needs to be on their doorstep or, conversely, on the deepsea vessel. We take care of everything: as efficiently and sustainably as possible, including transport across the last mile between inland terminal and final destination. EGS is already using the synchromodal approach in practice as much as possible. The Synchromodal Trip Optimizer that is currently under development however allows for a more advanced approach. To that end, we are also rearranging our internal organisation. The organisation in Rotterdam and the inland terminals will start to operate much more like one single organisation. There will be one uniform way of working, highly coordinated with everybody connected through a single system. Each and every container that moves through the network is closely monitored and actions are taken when disruptions may occur. There s no need to book on a specific train or barge; just choose a delivery date and destination and we will make it happen. Close to the Market In another move, EGS aims to bring the daily customer contact as close to the market as possible. Next to the existing EGS offices in Rotterdam and Venlo, the inland terminals in Willebroek and Duisburg will have dedicated customer service centres, respectively serving as contact points for German and for Belgium and French customers. Their staff know the local area and speak the language. Moreover, to emphasize the commitment to southern Germany, a sales office was recently opened in Munich (see page 18-19). EGS is increasingly gaining ground in Germany anyway, continues Van Andel. We are considered a serious competitor with a strong service and we are there to stay. In close cooperation with the Port of Rotterdam Authority, we are first and foremost selling the general advantages of Rotterdam. It is the preferred first and last port of call in Europe for many deepsea services and therefore offers the fastest transit times. Import via the Netherlands furthermore makes it possible to defer VAT payments. But at the end of the day, it is the service in our network that has to convince our customers. Just to be clear, concludes Van Andel, we consider synchromodality a means and not a goal in itself. What matters to us is that we can always provide the customer with the most reliable, efficient and sustainable hinterland service for every European destination; synchromodality helps EGS achieving this. 17

18 Photo: Thomas Bayer Marilyne van Hoey Smith (l) and Ingrid Rossmeier: The route via Rotterdam offers clear advantages. At Home in Southern Everyone in southern Germany looking for information about the rail connections with Rotterdam can call me. With any questions they may have about the product we provide, of course, but also about all operational matters. Marilyne van Hoey Smith is the local EGS representative in southern Germany since early March From her own EGS office in Munich, she aspires to optimally assist (potential) customers in the region. Van Hoey Smith combines the best of two worlds for that: being half-german, she speaks the language fluently and having worked at EGS and ECT in Rotterdam for the last couple of years means she also knows her way around there. I know exactly how the organisation works and who to contact. Rotterdam Representative Van Hoey Smith is not alone in southern Germany. Ingrid Rossmeier has been the Port of Rotterdam Authority s representative there since early 2014 and provides support where possible. Rossmeier was born and raised in Bavaria and represents Rotterdam from Nuremburg using her vast logistics experience. As such, she knows like no other what it takes to further boost the popularity of the Rotterdam- Bayern Express. To begin with, the Rotterdam alternative is simply still quite unknown. Forwarding agents do not actively present it as an option to their clients, who therefore do not use it. Each from their own respective responsibility, both women therefore often work together in southern Germany to change this. Van Hoey Smith: Ingrid opens doors and then it s up to me to explain the EGS product. Individually and together, the two visit forwarders, shipping lines, shippers and others. Van Hoey Smith: I will definitely also approach the relevant stakeholders in northern Germany. It is at the headquarters there that the decisions regarding cargo flows are often made. Clear Advantages via Rotterdam In any case, the route via Rotterdam offers clear advantages. Van Hoey Smith: Of all the ports in Northwest Europe, Rotterdam most frequently is the first port of call - and increasingly also the last - for shipping lines. As a result, transit times are highly favourable. While the deepsea ship is en route from Rotterdam to the next port - for example Hamburg - the container has already long been on the train heading for southern Germany. This can save two days just like that. In the opposite direction, outbound cargo can be loaded onto the train later and still make the required deepsea connection in Rotterdam. Rossmeier: Many shippers feel that Rotterdam is further away than Hamburg. But this is really not the case. The difference in distance from both seaports to southern Germany is only about twenty kilometres. For imports, Rotterdam offers another advantage as well. For cargo which enters the European Union via Rotterdam, VAT payments can be deferred to the moment of delivery to the customer, also in southern Germany. 18

19 Since 2012, the Rotterdam-Bayern Express has been directly connecting Munich and Nuremberg with Rotterdam by rail. More and more German companies are discovering this rail shuttle as an attractive alternative to transport via the north German ports. By opening an office in Munich with a German-speaking representative, European Gateway Services (EGS) now also wants to convince those still on the fence. Germany Just try booking one or two containers and experience our service in person Given the fact that high-value cargo is often involved, this benefits a company s cash flow. In contrast, in the north German ports VAT must already be paid upon arrival which is not reimbursed until later. Competitive Reliable, efficient and sustainable at competitive rates, summarises Van Hoey Smith the core strengths of the Rotterdam-Bayern Express. The inland terminal München Riem serves as the shuttle s hub in Munich and the TriCon Container-Terminal does so in Nuremberg. As EGS, our services however extend all the way up to the customer s front door. In cooperation with transport company Kloiber, we also provide on-demand pre-transport and post-transport. As soon as possible, EGS aims to increase the number of trains from Rotterdam to Munich and Nuremberg from four a week at present to a daily departure in both directions. The preparations for this have virtually been completed. Van Hoey Smith is clear about EGS intentions for southern Germany. We re here to stay. We realise though that we have to prove ourselves. This takes time. Companies are historically accustomed to choose the route via northern Germany. I hereby invite them to just try booking one or two containers on our shuttle and experience our service in person. Previous parties who have done so are now convinced and make structural use of the Rotterdam- Bayern Express. Rossmeier: The establishment of an EGS office in southern Germany with Marilyne as the contact person makes Rotterdam even more accessible to southern German companies. The threshold is low. They can now communicate with EGS in their own language, including making bookings with a German-speaking Booking Desk (see box, ed). More information? The EGS office in Munich is located at Kronstadter Straße 4, close to the Messe Munich. Marilyne van Hoey Smith can be reached here by telephone number +49 (0) and Marilyne.van.HoeySmith@ect.nl. For booking containers onto the Rotterdam-Bayern Express, you can directly contact the German-speaking Booking Desk of EGS: phone +49 (0) , EGSplanning@ect.nl. Rotterdam Representative Ingrid Rossmeier can be reached via telephone number +49 (0) and IA.Rossmeier@portofrotterdam.com. 19

20 The Best Invention of the Past Century Taking as his subject the container, Dr. Bart Kuipers last year won a nationwide essay competition organised by the leading newspaper NRC Handelsblad in association with the Royal Holland Society of Sciences and Humanities about what was the best invention of the past century. The port researcher, affiliated to Rotterdam s Erasmus School of Economics, characterizes the container as an innovation of equal importance to that of the internal combustion engine. The container has effectively enabled globalisation. In a single pithy sentence, Bart Kuipers this way sketches the undeniable importance of the invention of the container. It has been the enabler for the development of China as the world s working place. Thanks to the container, transport has become virtually cost-free; often transport costs represent less than one percent of the value of the products within the container. The Value of Re-exportation For the Netherlands, too, an economy without containers has become unthinkable. As a relatively small country we rank as Europe s second-largest export nation. Half of these exports worth some 200 billion per year involve re-exportation. That sector was previously very small, about a fifth of the current size. It has all become possible thanks to the container. Goods are imported to our country in containers, are made client-specific in distribution centres and subsequently transported into the European hinterland. Around twenty percent of all the containers handled in Rotterdam are bound for this kind of re-exportation. Kuipers doesn t agree with the critics who dismiss such onward exports as low-grade box pushing. The activities in a distribution centre are organised as in a pyramid with work for all levels and skills: at the apex the highly skilled logistics director, IT staff and so on, followed by the logistics planners lower down and the semi-skilled workers on the shop floor. I also don t agree with those who say that the added value for the Dutch economy of these types of activities only adds up to a mere 15 billion. That s more than the IT sector contributes, for example. Invention of the Internal Combustion Engine Kuipers has another striking comparison. The container is a fundamental innovation comparable to that of the internal combustion engine. He goes on to elaborate: What the conveyor belt did for Ford, is what the inland terminals are now doing for the container sector. He does however see diverging trends in the two sectors. Led by Toyota, the automotive sector has switched increasingly to production to order over the last decade or so. It s gone from push to pull. It s the order from the customer that puts the system into operation. Stimulated by sector leaders such as European Gateway Services and ECT, the trend in container logistics is moving the other way, from pull to push. From the seaports, containers travel direct to the hinterland synchromodally; from the inland terminal the customer then gets them delivered to his front door at the appointed time. Container transport will become even more of a commodity than it is now Kuipers predicts that container transport will become even more of a commodity than it is now. The shipper will want to agree delivery times, the price and the level of carbon dioxide emissions. How the cargo is actually transported won t really interest him. I sometimes liken it to water: although it s crucial, you re not really interested in the 20

21 how and why of production. It s the same with transport, as the costs are low compared to the value of the product. Transport is simply a side issue. It s only when aberrations occur that the supply chain manager wants to know. Source of Fresh Innovation While the container itself was a novelty sixty years ago, since then there has been series of further innovations with ECT in a leading role, inventing the automated terminal and more. It s something the Netherlands is good at, says Kuipers. Take also the current initiatives by Holland Container Innovations and Cargoshell to develop a foldable container for example. Or look at what s happening in the offices of companies like TBA in Delft and ABB in Rotterdam, where they re developing smart software solutions for automated terminal management. The Netherlands has really world class suppliers, with a great deal of knowledge development. I see opportunities for a niche product using small, fast ships Opportunities for a Niche Product In twenty years time the container box itself won t have changed much, Kuipers predicts. I sometimes compare it with the chemicals sector. On the face of it, manufacturing plants look the same as thirty or forty years back. But all the related factors, such as environmental and safety concerns, have changed 100 percent. It s the same with the container industry. I believe that in the end only four or five carriers will survive. Alongside them I see opportunities though for a niche product using small, fast ships. Given the high value of many of the goods in containers there will certainly be market players with a stake in higher speed deliveries than the super slow steaming currently being offered by the shipping lines. Thanks to the container, transport has become virtually cost-free. Kuipers also raises the question of whether the container industry at least in Europe will still continue to grow much further. Who knows, we now have reached the optimum. Europe s population is set to decline; what you re also starting to see is that companies are moving in the direction of near-shoring and reshoring, whereby production is being brought closer or back into Europe. What s more, there s a trend towards a circular economy. Gone are the days when one percent economic growth resulted in a four percent growth of global trade and a six to eight percent increase in container flows. On the other hand: it s also true that an ever-growing variety of goods are being shipped by container, such as agricultural products and flowers. 21