Annual Report 2010 Port of Rotterdam 1

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You have given the instruction to download a selection from the Annual Report 2010 of the Port of Rotterdam Authority.
This information is derived from the Annual Report 2010 of the Port of Rotterdam Authority as approved on 2 March 2011 by the Supervisory Board. The Port of Rotterdam Authority has taken the utmost care to ensure the accessibility, accuracy and completeness of the contents of the online version of the Annual Report 2010. In the event of differences or inconsistencies between the online Annual Report on this site and the original Annual Report audited and certified by Ernst & Young, the latter will take precedence. The original Annual Report is filed at the office of the Port of Rotterdam Authority (Havenbedrijf Rotterdam N.V.). The Annual Report 2010 of the Port of Rotterdam Authority has been audited by Ernst & Young and provided with an Auditor’s Report. For full information on the assignment, the work and the opinion of Ernst & Young, we refer to the Annual Report as a whole as placed on the website of the Port Authority www.portofrotterdam.com/annualreport.

annual report 2010
‘World-class in action!’

Contents
Foreword by the Executive Board Introduction Report of the Port Authority
1 2
2.1 2.2 2.3 2.4 2.5 2.6 2.7

4 9 11
12 16
17 18 20 22 23 26 29

The Port of Rotterdam About the Port of Rotterdam Authority
The Port of Rotterdam Authority in brief Mission, vision and strategy Corporate Social Responsibility Organisation Corporate Governance Employees Participating interests

3
3.1 3.2 3.3 3.4 3.5 3.6

Harbour Master
The Harbour Master in brief Smooth handling of shipping Nautically safe Safe transport Clean (environmentally safe) Secure

32
33 34 35 37 39 41

4
4.1 4.2 4.3 4.4

Customer
Customer in brief Our relationship with the customer Our market position Port Marketing

42
43 44 46 50

5
5.1 5.2 5.3

Area and space
Area and space in brief Maasvlakte 2 Existing port area

51
52 53 56

6
6.1 6.2 6.3 6.4 6.5

Traffic and accessibility
Traffic and accessibility in brief Road Rail Inland shipping Pipelines

59
60 61 63 65 67

The Port of Rotterdam Authority Annual report 2010

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7
7.1 7.2 7.3 7.4 7.5 7.6

Environment and sustainability
Environment and sustainability in brief Sustainability Rotterdam Climate Initiative Dialogue Innovation Labour market and education

69
70 71 78 80 83 85

8
8.1 8.2 8.3

Finance
Result Cash flows Financing

87
88 90 92

9

Outlook 2011

94

Report of the Supervisory Board Financial Statements 2010 Key figures 2010
1 2 3 4 5 Cockpit: Financial Cockpit: Personnel Cockpit: Harbour master Cockpit: Throughput and market share Cockpit: Critical Preformance Indicator (KPI’s) 2010

96 100 128
129 131 132 133 139

About the Annual Report
About the annual report Independentauditor’s report

142
143 150

Appendix

149

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Appendix I Appendix II Appendix III Appendix IV Colophon

150 154 155 160 181

The Port of Rotterdam Authority Annual report 2010

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Foreword by the Executive Board

The Port of Rotterdam Authority Annual report 2010

Foreword by the Executive Board

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Port and Port of Rotterdam Authority stay on course
The port of Rotterdam is performing well. In 2010, the throughput of goods recovered faster than expected leading to an increased market share. In addition, we invested substantially in Maasvlakte 2 and the existing port area. To ensure that Mainport Rotterdam remains an important factor in both the national and European economy, we keep on investing in a world-class port. This Annual Report informs you how we do this by, on the one hand presenting the 2010 figures and, on the other, looking at the future developments of our own organisation and also those of the port of Rotterdam. Herewith, we wish to inform you about several important achievements and future expectations. Before we do this, we would like to give some thought to a very sad occurrence in 2010. The good results of 2010 were overshadowed by a helicopter crash during the Tour du Port organised by us on 27 June 2010. This accident took the lives of four persons, including our colleague Martijn Hessing. Furthermore, one passenger was severely injured. Several colleagues witnessed this fatal accident and it has made a deep impression on all our employees.

Quick recovery of throughput
The recovery of world trade started in the second half of 2009 and grew faster than expected in 2010. In 2010, world trade grew by 15%. The throughput figures of most ports in the Hamburg – Le Havre range show a similar recovery curve for 2010. The throughput in the port of Rotterdam increased by 11.1% in 2010 amounting to 430 million tonnes, exceeding the level of the record year 2008. Almost all segments showed a positive development in 2010. The port continues to profit from strong European exports, leading to a growing demand for raw materials. In 2011, we expect throughput in Rotterdam to increase by a further 2.6%. Partly due to the throughput recovery, the net result increased to € 154.2 million in 2010. This was an increase of € 10 million (excluding exceptional items) compared to € 144.2 million in 2009. In 2010, the level of investment in the port of Rotterdam reached an historical high. Our investment aims at safety, space for growth, accessibility and sustainability.

Harbour Master: clean, efficient, safe, secured
The clean, efficient, safe and secured handling of shipping is one of the core activities of the Port of Rotterdam Authority. The number of seagoing vessels rose by 3% in 2010 compared to 2009. Despite a few incidents, the handling of shipping continued to be efficient and safe. On Thursday 21 October 2010, Princess Magriet of the Netherlands and Pieter van Vollenhoven jointly opened the Traffic Coordination Centre in the Botlek. The new coordination centre integrates the work of the traffic coordination centres “Stad” and “Botlek”. The combination of the two traffic coordination centres will improve the efficiency of ship handling in the port of Rotterdam.

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Space for growth
Two thirds of our investment in 2010 was related to the construction of Maasvlakte 2. This important land reclamation project is on schedule. In 2010, two thirds of the intended sand works (240 million m3) were raised and the construction of the first quay walls and solid sea defence started. The Maasvlakte 2 project is an investment for the future. It will enhance our long term position and our ability to anticipate the growth in container handling and other developments requiring space. Not only are we working on the expansion of space. To accommodate growth we are also continuing to look for possibilities to restructure and intensify the terrains already available. Good examples of growth by intensifying the existing port area are initiatives that enhance the energy related activities in Rotterdam (Rotterdam Energy Port). In this respect, the construction of the LNG import-terminal is on track. In 2011 we expect the first vessels to moor at the terminal. In addition, we will start an important process of intensification of the container sector. As a result of a decision taken in 2010 to broaden the Amazonehaven, the ECT Delta Terminal will also be accessible for the largest container vessels on the terminal’s south side. In 2010, we also concluded a collaboration agreement with the municipality of Dordrecht concerning the integration of the management, exploitation and development of the seaports of Rotterdam and Dordrecht. This collaboration will start in the middle of 2011, and will enable both parties to achieve synergy and scale advantages.

Accessibility
The port of Rotterdam can accommodate the largest seagoing vessels. Due to the excellent access to the European hinterland via sea, inland shipping, rail, roads and pipelines, Rotterdam is an important hub in the logistic chain. Growing throughput leads to an increase in the traffic capacity required. We are, therefore, investing in the extension of infrastructure and in innovative and sustainable traffic concepts. Our aim: fewer goods by road and more goods by water and rail (modal shift). De Verkeersonderneming, a foundation in which we participate, introduced a number of measures to stimulate a reduction of the number of cars on the A15 during rush hours. In order to avoid the bottlenecks at the Rotterdam cross-section (Rotterdamse Ruit), we believe it is important that the New Western Riverbank connection (NWO) is in operation by 2018. Consequently, we have allocated people and resources to the project organisation ‘Rotterdam Vooruit’ to speed up this process. In 2010, we started operations in the inland shipping container terminal in Alphen aan de Rijn. We also came to an agreement concerning the construction of a container transfer location in Alblasserdam. Furthermore, in 2010 we decided to develop and manage new rail connections for our customers; these will enable us to be more pro-active in the construction of rail facilities for our customers.

Sustainability
Sustainability for the Port of Rotterdam Authority means both improving our own performance and stimulating sustainable entrepreneurship in the port area. In our new Business Plan 2011-2015, we raised our ambitions by setting ourselves the target of becoming the most efficient, safe and sustainable port of our sort in the world. In collaboration with five other ports in the Hamburg-Le Havre range, we developed the Environmental Ship Index last year. From 2011 onwards, the cleanest vessels visiting Rotterdam will be eligible for a reduction in their harbour due. By

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Foreword by the Executive Board

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offering this incentive, we aim to change ship owners’ behaviour so they reduce their emissions of NOx, SOx, airborne solid particles and, within a reasonable period, CO2. Another initiative to contribute to the improvement of the local air quality is the availability of shore-based power installations in the port; these offer berths in the harbour where inland vessels do not have to start up their own diesel aggregates. Obviously we are continuously working to reduce our CO2 emissions. We report on this topic in paragraph 7.2 Sustainability. In our new Business Plan, we have formulated targets to achieve an emissions reduction of 10% in 2015 compared to 2010. And our intention is to be climate neutral as early as 2011.

The port and the Port of Rotterdam Authority after 2010
Last year we developed a new Business Plan for 2011-2015. This plan contains the mission, vision and strategy for the years to come. The new plan continues to build on a solid starting point regarding the level of knowledge and capabilities, reputation and finance. Furthermore, it continues to build on the strategic choices made previously, such as international participations and hinterland strategy. For long term continuity, it is important that we have access to sufficient funds to fulfil our investment ambitions. To achieve this we require a sufficient return on the investment portfolio, on the one hand, and cost control on the other. Over a period of 20 years we expect an increase in the throughput of goods, compared to the current level of 430 million tonnes per year. The extent and the sectors in which growth will manifest itself depend on global economic developments, societies and technical innovations. This could mean that the utilisation of a part of the port area will change in the future. In particular, the speed of energy transition (the pace at which fossil fuels are replaced by alternative sources of energy) and environmental policy are relevant. In 2010, on the basis of several forecasts, we started the process of compiling a Port Vision 2030. This concept is to form the starting point for broad discussions with customers, government bodies, interest groups and residents in 2011.

Farewell
In November 2010, André Toet announced that he will no longer be part of future developments within our organisation. He resigned his board position as of 1 January 2011. We are grateful to André for his enthusiastic efforts in the last three years. In that period, he brought the organisation a step further due to his knowledge and skills, charismatic personality and strong focus on cooperation. As of 1 January 2011, Thessa Menssen will be the Chief Operating Officer. The recruitment and selection of a Chief Financial Officer has now been completed, Paul Smits has been appointed Chief Financial Officer as of 1 June 2011.

The State Harbour Master left at the age of 63. He was Harbour Master of Rotterdam for over 20 years, then of Rotterdam and Schiedam and State Harbour Master of the Rotterdam-Rijnmond region. We thank him for the special manner in which he made use of his position to achieve a clean, efficient, safe and secured port. René de Vries (49) is to succeed Jaap Lems; René started his career at the Port of Rotterdam Authority in 1982 as sailor on one of the patrol vessels. In the years thereafter he became manager of Traffic Planning & Operations. As of 1 March 2010, he was appointed (State) Harbour Master of Rotterdam.

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Foreword by the Executive Board

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Word of thanks
We conclude with a word of thanks to our staff and the Works Council. Through their commitment, effort and expertise they have demonstrated their dedication to the port and the Port of Rotterdam Authority. In so doing, they are all contributing, to our new slogan “World class in action”. The Port of Rotterdam Authority Rotterdam, 2 March 2011 Executive Board

Hans Smits

Thessa Menssen

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Introduction
port authority business operations influence: high activities port and industrial complex influence: fair influence: limited chain

Scope of the Annual Report
The scope of this Annual Report is broader than just our own organisation. The Port of Rotterdam Authority can exert influence in three areas. The level of influence and the effect on the environment and the surrounding district vary per area. The effects of our own operational management on the environment and surrounding district are limited. However, the effects of our investments in the port area and the logistics to and from the port area are substantially larger. Through cooperation, we can exert our influence in the port area and (logistics) chain. Consequently, in our Annual Report, we devote extensive attention to our shared activities with various partners. The scope and range of the Annual Report 2010 is similar to that of the 2009 integrated Annual Report.

effect: limited

effect: fair

effect: high

Integrated Annual Report
In our Annual Report 2010, we have integrated the traditional executive report and the corporate social responsibility (CSR) report. We made this decision because we believe that CSR is an integral part of our operational management. The focus of the Annual Report is on our own operational management, the performance of the legal duties of the Harbour Master and the four strategic themes: Customer, Area and Space, Traffic and Accessibility and Environment and Sustainability. We have recorded our organisational efforts concerning these themes and the collaboration with stakeholders in the port area and the (logistics) chain. The content of the report has been compiled around these four strategic themes, our regular contacts in our dialogue with stakeholders and research into the most important themes for the CSR report. In the section ‘About the Annual Report’ we have indicated the criteria on which we selected our subjects.

Verified Annual Report
We engaged auditors to give an assurance in respect of the Annual Report. The Annual Report was classified into three categories within the scope of this assignment: The Report: Report of the Port of Rotterdam Authority, Key Figures and cases (Cases are only available digitally); The Financial Statements; Other information: Foreword by the Executive Board, Introduction, Appendices and the Report of the Supervisory Board. The Report and the Financial Statements were assessed by the auditors, with the exception of information about future developments. For further information related to the scope of the auditor’s report we would refer you to the section ‘About the Annual Report’. In addition to the auditor’s report, the Global Reporting Initiative (GRI) tested the level of application of the G3-guidelines. The application level of the Report of the Port of Rotterdam Authority was accredited with an A+. The GRI is a non-governmental organisation that develops global standards for annual CSR reporting.

• • •

The Port of Rotterdam Authority Annual report 2010

Introduction

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Digitised Annual Report
Finally, our Annual Report will only be published online on our website, where you can download the entire Annual Report as a PDF file. You also have the option of personalising the Annual Report. By selecting the parts you want, you can compile your own Annual Report which you can then download or print out. The digital Report also contains four short films (cases) in which we show some of 2010’s most important developments surrounding Maasvlakte 2, safety, accessibility and sustainability.

The Port of Rotterdam Authority Annual report 2010

Introduction

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Report of the Port Authority

report of the port authority
1 2 3 4 5 6 7 8 9 The Port of Rotterdam About the Port of Rotterdam Authority Harbour Master Customer Area and space Traffic and accessibility Environment and sustainability Finance Outlook 2011

The Port of Rotterdam

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Port of Rotterdam in brief
The port of Rotterdam is the largest logistics and industrial hub in Europe. The port and industrial complex stretches over a length of 40 kilometres and covers some 10,000 hectares (excluding Maasvlakte 2). The throughput of 430 million tonnes makes the port of Rotterdam by far the largest seaport in Europe. The port of Rotterdam derives its position from its excellent accessibility by sea, hinterland connections and the many companies and organisations that are active in and in the service of the port area. In this context, the Port of Rotterdam Authority fulfils the role of manager, operator and developer of the port and industrial area. Besides that, the Port of Rotterdam Authority, personified by the (State) Harbour Master, has the task of managing the shipping traffic effectively, safely and efficiently. Together with the other companies and organisations in the port area, we are working to achieve a world-class port.

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The Port of Rotterdam Authority Annual report 2010

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Location and position of the port of Rotterdam
Liquid bulk, oil and chemials Distribution Coals en ores General cargo and containers Food products Other activities
Description The port area of Rotterdam is located directly on the North Sea and is the only port in Northwest-Europe that offers direct and unrestricted access to ships with the deepest draughts. The port offers a wide range of market segments and flows of goods, as well as high-quality, all-round facilities for the storage, handling and distribution of all kinds of commodities and products. Moreover, the (process) industry and chemicals are significantly represented in Rotterdam; industrial clusters that generate and maintain cargo. With an extensive network of hinterland connections (inland shipping, feeder, short sea, rail, road and pipelines), Rotterdam facilitates the import and export of goods from and to the European market (a market with approximately 350 million consumers). In 2008, the direct added value of the port area was about €15.5 billion, and approximately 90,000 persons were directly employed in the port complex. In addition, the port of Rotterdam generated about 55,000 indirect jobs (source: havenmonitor, 2008).

Report of the Port Authority > The Port of Rotterdam

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Throughput by segment
(gross weight in tonnes) Crude oil 23,3% Mineral oil other liquid bulk 25,4% Dry bulk 19,7% Containers 26,1% Breakbulk 5,5%

Goods segments

In the port of Rotterdam both bulk (dry and liquid bulk) and general cargo (containers and break bulk) are handled. The accompanying figure presents the proportions of throughput. Because of the relatively large volume of liquid bulk, a distinction is made between crude oil and mineral oil products including other liquid bulk.
Logistics hub

The unique combination of industrial and logistic facilities makes Rotterdam the port importing the largest volume of crude oil in Europe. The port of Rotterdam is also the largest port for the import of iron ore in transit to the German blast-furnaces in the Ruhr area. In addition, the port has developed into an important global trade spot for mineral oil products – due, among others things, to the available capacity of independent tank storage. With the construction of the first LNG terminal on the Maasvlakte, Rotterdam is also developing into a logistics junction for gas imports to the Netherlands and Europe. Furthermore, it is developing a similarly important position as the “Energy port” due to the construction of new power plants on the Maasvlakte. Furthermore, Rotterdam has proven to be the most important container gateway. The increase in cargo flows to and from other European ports enhances the hub function of the port of Rotterdam in the logistics chain. The Ultra Large Container Carriers (ULCCs) that have been put into operation in the shipping routes between Asia and Europe contributed to this.
Market segmentation

An increase in activities is crucial for the development of the port. By attracting cargo flows, Rotterdam competes with other ports in the Hamburg-Le Havre (HLH)-range. All these ports serve the hinterland of Northwest-Europe. The competition varies significantly per segment. With respect to containers, Antwerp and Hamburg are the most important competitors; for coal Amsterdam and for crude oil Le Havre and Wilhelmshaven. In the (petro)chemical sector, there is global competition. In Northwest-Europe, Antwerp is the most important player. Important factors in the commercial battle are: deep water location, world-class terminals, the availability of space, good access due to a range of hinterland connections (roads, inland waterways, rail and pipelines), quality of service, costs and an attractive business and residential climate. The petrochemical complexes in Antwerp and Rotterdam are well connected via pipelines and inland waterways. Both chemical complexes are complementary. For example, Rotterdam delivers a substantial proportion of commodities to Antwerp’s petrochemical cluster. Information concerning market segmentation is presented in chapter 4 ‘Customer’.

Outlook for the port of Rotterdam
Maasvlakte 2

With the Construction of Maasvlakte 2, we are investing in additional space to accommodate future growth; in total the port area will increase by 20%. Roughly speaking, Maasvlakte 2 is being constructed in two phases. The first phase (20082015) aims at the reclamation of the first 700 hectares. The second phase (20152030) concerns the site preparation of the remaining 300 hectares. The second phase will start when there is sufficient demand.

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Scenarios 2030

1

2

3

In 2010, we started developing a vision for the long term development of the port. Using existing economic models, forecasts of individual companies combined with expertise from knowledge institutions, we created so-called potential estimates. These estimates give an indication of the growth potential of throughput until 2030. The three scenarios with accompanying estimates are: European Trend scenario: the point of departure of this scenario is the existing policy and moderate economic growth. In this scenario, the throughput could rise to 654 million tonnes in 2030. Global Economy scenario: here the point of departure is further globalisation combined with a low oil price leading to enhanced economic growth. In this scenario throughput levels would rise to 739 million tonnes in 2030. High Oil Price scenario: this point of departure is a high oil price, strict environmental policies, moderate economic growth and a rapid enhancement of the sustainability of industry and logistics. In this scenario, throughput would rise to 575 million tonnes in 2030. The throughput in Rotterdam is currently 430 million tonnes per year. We expect this to grow in the next 20 years. However, the extent of growth and the segments in which growth will be achieved are dependent on global economic developments, society and technical innovations. This means that the utilisation of a part of the port area will change over time. In particular, the speed of energy transition (the pace in which fossil fuels are replaced by alternative sources of energy) and the environmental policy are relevant.

Port Vision 2030 The estimates form the departure point for the development of Port Vision 2030. Subsequently, we started to analyse the effects of the scenarios on space, environment, hinterland connection and labour. By doing so, concrete pictures arose concerning the development of the port in several areas. This information translates into a concept vision, which will be the starting point for broad discussions with customers, government bodies, interest groups and residents in the spring of 2011. The debate concerns the desired development of the port and what needs to happen to realise the vision. In the summer of 2011, we plan to present Port Vision 2030 to the Mayor and Aldermen of Rotterdam and to submit it to the City Council for adoption.

The Port of Rotterdam Authority Annual report 2010

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report of the port authority
1 2 3 4 5 6 7 8 9 The Port of Rotterdam About the Port of Rotterdam Authority Harbour Master Customer Area and space Traffic and accessibility Environment and sustainability Finance Outlook 2011

About the Port of Rotterdam Authority

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Harbour dues 288 Contract income 249 Other income 214

2.1 The Port of Rotterdam Authority in brief
The Port of Rotterdam Authority manages, operates and develops the Rotterdam port and industrial area. In our vision, Rotterdam has to distinguish itself as a quality port in which Corporate Social Responsibility is the key element. The Port of Rotterdam Authority aims to enhance the competitive position of the port of Rotterdam as a logistics hub and a world-class industrial complex. To this end, the Port of Rotterdam Authority has initiated a long term vision concerning the future of the port; a vision based on global, national and regional expectations and developments. These expectations and developments provide the framework and direction of our activities. The Port of Rotterdam Authority is investing in the development of new port sites, especially Maasvlakte 2, in public infrastructure, such as roads in the port area, and customer-specific infrastructure, particularly quay walls and jetties. In order to handle shipping as effectively as possible, we maintain the waterways at a certain depth and we are investing in a traffic management system, traffic control centres and patrol vessels. With its operating income developing soundly and its focus on efficient operations, the Port of Rotterdam Authority is creating optimal financial conditions to invest in the port of Rotterdam. The main operating income flows are harbour dues and contract income (long term leases of port sites). Besides investing in infrastructure in and around the port area, the Port of Rotterdam Authority is, in collaboration with several companies and organisations, working on preconditions for the port. These preconditions, such as accessibility and the environment, are not always quantifiable but are necessary requirements for the efficient, sustainable and safe growth of the port.

Operating income 2010
(amounts x € 1 million)

Harbour dues 288 Contract income 249 Other income 214

Capital expenditures on projects
(amounts x € 1 million) 500 450 400 350 300 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010 Investments Maasvlakte 2 Existing port area

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450 400

2.2 Mission, vision and strategy
Mission
In line with its objectives under the articles of association, the Port of Rotterdam Authority has formulated the following mission statement: ‘ In partnership, the Port of Rotterdam Authority is developing the leading European port of global stature’. To fulfil our mission, we formulate five-yearly Business Plans. The most important objectives of our Business Plan for 2006-2010 have been accomplished. Examples include the start of construction of Maasvlakte 2, the increase in market share and the efficient and safe handling of shipping. For more information see: cockpit Critical Performance Indicators. In 2010, we formulated a new five-year Business Plan which has been submitted to and approved by our shareholders. This new Business Plan 2011-2015 builds on the existing strategic choices, such as international participations and the hinterland strategy; however, our two key objectives (under the articles of association) remain fully effective: the development, construction, management and operation of the port and industrial area in Rotterdam; the promotion of the effective, safe and efficient handling of shipping in the port of Rotterdam and the offshore approaches to the port.

1 2

Vision
As a guideline for the Business Plan an ambitious vision was established. We formulated the following vision for our Business Plan 2011-2015: The Port of Rotterdam Authority is fully committed to the continued development of Rotterdam’s port and industrial complex so it can become the most efficient, safe and sustainable in the world. The Port of Rotterdam is creating value for customers by developing chains, networks and clusters, both in Europe and in growth markets worldwide. As an enterprising port developer, the Port of Rotterdam is the partner for customers of world stature in petro-chemicals, energy, transport & logistics. In this way the Port of Rotterdam is enhancing the competitiveness of the Netherlands.
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The Port of Rotterdam Authority Annual report 2010

Report of the Port Authority > About the Port of Rotterdam Authority

Strategy
The Port of Rotterdam Authority is very involved with the port and industrial area in Rotterdam and fully committed to the continued development of Rotterdam’s port and industrial complex so it can become the most efficient, sustainable and safe in the world. To realise this development we want to be proactive in contracting partnerships with international players. We also want to contribute actively to the quality of chains and networks. For this reason The Port of Rotterdam has explicitly opted: to adopt a more active and entrepreneurial role, if this is necessary to strengthen the complex; to focus on acquiring and binding leading global players in their industries to Rotterdam; to make active efforts to strengthen Rotterdam’s port network by,for example, cooperating with the port of Dordrecht and investing in hinterland junctions; to make every effort to become actively involved in port developments in international growth markets, through participations. These strategic choices are an outline of the following four key themes in this Report:
Customer We work as partners with our existing customers, while at the same time attracting new activities and customers that will further strengthen the port and industrial complex. Area and space We ensure an efficiently organised port area with good public infrastructure. Furthermore, we aim to provide space for growth by developing Maasvlakte 2 and structuring, restructuring and intensifying the use of the existing Rotterdam area. We also actively examine opportunities as they arise outside the Rotterdam area. Traffic and accessibility

• • • •

We are responsible for the clean, smooth, safe and secure handling of shipping in the port. Together with our partners, we are also increasingly active in improving landside accessibility for the four modalities (rail, road, inland shipping and pipeline).
Environment and sustainability We invest with our partners in obtaining broad support in society and optimum preconditions for a port that has the ambition to develop. Sustainability, dialogue, work and innovation are important elements in this aim.

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2.3 Corporate Social Responsibility
Management approach
Corporate Social Responsibility (CSR) is an essential element of the Port of Rotterdam Authority’s business processes and business culture. We have committed ourselves to this in an official CSR-statement (see www.portofrotterdam.com). We want to enable the port to grow in a balanced way: Maasvlakte 2 together with space for recreation and relatively less road transport. Our aim is for all our activities to be sustainable, involved and transparent. In our new Business Plan 2011-2015 we have taken up the challenge to develop the port area as the most efficient, safe and sustainable of its kind in the world.

Corporate Social Responsibility Sustainability Involvement Transparency

Sustainable
For the Port of Rotterdam Authority, sustainability means we wish to improve our individual performances and encourage sustainable enterprises in the port area. In our view, investing in sustainability is vital to retain support for port activities and to facilitate growth. In our Business Plan 2011-2015, we aim to be the most sustainable port of its kind in the world. Over the next five years we will work on this ambition in three areas: our own operations, the businesses in the port and the logistics. To this end we have formulated the following targets: to accomplish a CO2 neutral Port of Rotterdam Authority and ensure the sustainability of construction and management by reducing CO2 and NOx emissions in our own processes. We aim to be CO2 neutral in 2011 and to reduce our own CO2 emissions by 2% per year;



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to realise the most sustainable Energy Port and Fuel Port by reducing the CO2 and Nox emissions when leasing out plots. This means that new contracts concluded with port businesses will contain certain criteria which must be fulfilled. These criteria involve air quality, capture readiness of CO2 and the usage of certified biomass; to realise the most sustainable container port by ensuring transport is concentrated on the sustainability of all modalities. Our aim is to shift road transport in favour of more rail and inland shipping and increase the utilisation of shore-based power. In our management report, we have ensured that these sustainability objectives remain points of attention; a substantial part of our critical performance indicators are focussed on sustainability. Furthermore, the Executive Board considers sustainability in the decision-making process concerning investments and other important issues. Because sustainability is part of our overall policy, activities related to sustainability are not only described in section 7.2 (Sustainability) but also throughout the entire Report.

Involved
Hundreds of thousands of people live and work in the immediate vicinity of the port and industrial complex. It is crucial for us to retain support for our activities. Working and living in and around the port must be attractive. That is why it is important for us to invest in our immediate surroundings. It is about investing in accessibility and approachability (chapter 6), but also about investments in innovation and the labour market (section 7.5). Another project that expresses our involvement in the immediate surroundings is the RDM Campus, where a former port site is being redeveloped to accommodate a combination of learning and working activities. You will read more about this subject in section 5.3 (Existing Port Area below “City Ports”) and in section 7.2 (Sustainability below “sustainable real estate”). We also believe it is important to make the knowledge and the expertise of our employees available to ports in less developed countries. One example is Senegal, where we want to make greater economic development possible. In 2009, we signed an agreement with the OMVS (Organisation pour la Mise en Valeur du fleuve Sénégal) for functional support to make the Senegal River navigable and develop the port of Saint Louis., In 2010 we sent out more Port of Rotterdam Authority specialists to carry out specific research projects on site. After an evaluation, we decided to continue our support for OMVS under certain conditions. In November 2010, ‘Jong HbR’, the network of young people at the Port of Rotterdam Authority, participated in a CSR activity organised by the municipality of Rotterdam. On board the ship Abel Tasman, 15 young employees of the Port of Rotterdam Authority helped run an unforgettable St Nicholas party held for a large group of ill and disabled children. ‘Jong HbR’ wants to participate in more CSR projects in 2011.

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Transparent
Transparent means that we formulate open and clear ambitions and account for the results achieved. We want to be transparent to our environment about the dilemmas we face in achieving our objectives. Sometimes we have to make difficult choices. For example, please read our report on Rotterdam Port Experience (section 2.7 Participations), fossil versus renewable energy (section 4.3, Our market position), speed limitations on inland shipping and hinterland congestions (section 6.4, Inland shipping) and shore-based power (section 7.2, Sustainability). This annual report is just one of the tools we have for our dialogue with our stakeholders. In order to increase transparency, we have asked our auditors to give their opinion not only on the financial statements but also on the other information contained in the Annual Report. In addition, the level of compliance with the G3 guidelines has been tested by Global Reporting Initiative, a non-governmental organisation that develops worldwide standards for corporate social responsibility reporting. According to the GRI, the report of the Port of Rotterdam Authority fulfils the requirements of Application Level A+.

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2.4 Organisation
Structure
Although, the Port of Rotterdam Authority is a not a listed public limited company, it does comply with the all legislative requirements imposed on ‘large’ companies. Since 21 July 2008, a more enlightened two-tier board system has been applicable to the Port of Rotterdam Authority. This means that the General Meeting of Shareholders are authorised to assign and dismiss Executive Board members. The Executive Board conducts the day-to-day management of the company. The independent Supervisory Board supervises the Executive Board and oversees the state of affairs in the company. Both shareholders, the municipality of Rotterdam (approx. 70%) and the Dutch State (approx. 30%) exercise influence on the company through the General Meeting of Shareholders. The powers of the Supervisory Board and the General Meeting of Shareholders are laid down by law and in the articles of association. The most recent organisational chart of the Port of Rotterdam Authority is contained on the website www.portofrotterdam.com.

Core values and business code
Our core values are the most important values in our organisation. They help us to do our jobs, enhance collaboration, fulfil our Business Plan ambitions and indicate how we want to be perceived by the outside world. We rewrote our core values in 2010. The four new core values are: Passion, Collaboration, Continuous improvement and Trustworthiness. Our values and standards, such as integrity, are described in the Business Code, which sets out who we are, what we stand for and what we feel is important in business and public life. The code contains guidelines that state clearly what is and what is not permitted. By doing so, the Port of Rotterdam Authority supports the ten ‘United Nations Global Compact Business Principles’, concerning human rights, labour conditions, environment and fighting corruption.

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2.5 Corporate Governance
Corporate Governance Code
The Corporate Governance Code is applicable to listed companies. Although the Port of Rotterdam Authority is not a listed company, we have chosen to implement the provisions of the Corporate Governance Code wherever possible and relevant to us. The principles and best practices of the Corporate Governance Code recur as often as possible in the various internal regulations, such as the regulations governing both the Executive Board and the Supervisory Board. These and other regulations can be found on www.portofrotterdam.com. In compliance with the Corporate Governance Code, we have observed the ‘apply or explain’ concept and explained why we believe a number of provisions are less relevant to the Port of Rotterdam Authority. This scheme can also be found on www.portofrotterdam.com.

Risk management
We use a management control system to achieve our Business Plan objectives. Within the Business Plan, we pay attention to the structure and policy required to achieve the objectives and we use the planning and control cycle for monitoring purposes. Part of our management control system is the risk management and control system. We are risk averse. Our ambitions and the most relevant risks are included in several chapters of our Report. In this section, we describe how risk management is embedded in our organisation. In addition, we describe how we perceive the different levels (strategic, operational and compliance, financial and reporting) of risk management. Finally, the management statement is included.

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Risk management structure
Our internal risk management and control system is divided into multiple levels. First of all, the departments and project teams are responsible for identifying and controlling risks in our organisation. If required, they are supported by specialised risk management professionals. In addition, our Internal Audit Department checks the effectiveness of internal controls and the external auditor makes recommendations to improve internal controls during the annual accounts examination. Finally, the Audit Committee supervises the Executive Board concerning the effectiveness of the risk management and control system, including compliance with relevant legislation.

Strategic risk management
To gain insight into strategic risks, two risk surveys and analyses were conducted in a number of departments in 2010. The strategic risks are linked to the objectives of the Port of Rotterdam Authority. The risks, causes, effects and measures have been recorded in a “strategic risk landscape”. The most critical risks were discussed with the Supervisory Board. As a result of which, the Supervisory Board approved the “strategic risk landscape”.

Operational risk management and compliance
Our operational risk management and compliance are linked to the objectives of departments and projects. Risks, causes, measures and risk-owners are recorded in risk landscapes. Derived from these are risk paragraphs that departments should incorporate in their work activities. In addition, they monitor the risks during the year. Operational risk management is especially important for the Harbour Master division. In this context, the Harbour Master reports to the Ministry of Infrastructure and Environment and the municipality of Rotterdam on developments in the level of efficient, safe and environmental pressure of shipping traffic and other indicators concerning the quality of the execution of the Harbour Master’s responsibilities. In 2009, a project risk management method was established that gives insight into the complexity, controllability and financial risks of customer-specific projects. In 2010, the application of this method was extended to public projects. Moreover in 2010, improvements were made to the manner in which insight is acquired into the risks during the engineering and realisation phases of projects. Project control was also improved in 2010 due to the implementation of the project management module in our ERP-system. This implementation should, amongst other things, improve the predictability of expected cash flows. In addition, the financial control of projects and the monitoring of the project portfolio were made more rigorous. The construction of Maasvlakte 2 is the largest project in our history. We established a special project organisation to manage the project. Within the project the best practice management principles of Prince 2 are applied and in 2007 this project organisation was accredited for this. In 2011 re-accreditation is necessary. Project leaders are responsible for managing and controlling risks in several partial projects; project managers continuously facilitate them. Every month an internal report on the risk dossier is presented. In addition, the Internal Audit Department and the external auditor periodically assess the internal control systems of the Maasvlakte 2 construction. Read more about our core values and business code on www.portofrotterdam.com.

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Financial risk management
Our financial policy is risk averse and aims to hedge the risks against acceptable costs. The effects of substantial and long term investment projects and accompanying financing and interest risks increase the need to control cash flows (within the Treasury position). The Supervisory Board approved the actualised Treasury Statute. At the request of the Audit Committee, the external auditor assessed the effectiveness of the Treasury position. In the Management letter, the external auditor recommended the following: Improve the predictability of cash flows. Secure the Treasury related knowledge. Currently initiatives are in place to secure the knowledge related to controlling cash flows. For a further explanation of interest, credit and foreign exchange risks we would refer you to the financial statements.

• •

Reporting risk management
To hedge internal and external financial reporting risks related to inaccuracies of material effect we use the COSO internal control framework. The framework contains the most important control measures for risks in the primary financial processes and the effectiveness of measures in those processes. The framework is actualised periodically and the control activities formulated and presented in the frameworks are carried out. In addition, action plans to improve and strengthen the control measures even further have been developed and implemented.

Management statement
Based on our risk management and control system, we aim to reduce the possibilities of making wrong decisions or being surprised by unforeseen events. Unfortunately, total guarantee cannot be given. No risk management and internal control system can provide absolute assurance to achieve organisational objectives, nor can it entirely prevent inaccuracies, fraud, accidents and violations of laws and regulations. We did not request a separate investigation of the quality of our risk management and internal control system. However, within the framework of the financial statement assessment, our external auditor investigated our internal control measures. The aim of these activities is to deliver an unqualified auditor’s report related to the financial statements and they do not, therefore, encompass all the issues that could arise if the organisation were subject to a targeted assessment. Just as in preceding years, the external auditor concluded in the management letter that the quality of our internal control environment meets the required standards. However, the auditor made the following recommendations: assess and monitor the quality of the outsourced IT services critically; continue the improvements embarked on regarding project control in the existing port area; make the authorisation process for procurement in our ERP system more rigorous; make the internal control of the processing of personnel transactions more rigorous.

• • • •

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We concur with the recommendations of the external auditors and we intend to follow up these recommendations in order to improve the effectiveness of our risk management and control system in 2011. On the basis of reports and information from several departments and parties that form part of our risk management and control system, the Executive Board believes that the risk management and control systems worked properly during the book year and provide a certain measure of assurance that the financial reporting does not contain inaccuracies of material effect.

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2.6 Employees
Introduction
The Port of Rotterdam Authority continuously strives to be a world-class port. This is accomplished with the assistance of approximately 1,200 involved and motivated staff. For this purpose, the Port of Rotterdam Authority wants to be an attractive and modern employer. We invest in the quality of our staff and we believe that diversity and employee satisfaction are important drivers. Our concrete objective for 2010 was to raise the level of employee satisfaction to a score of 7.3. This aim was amply achieved when a survey returned a score of 7.7. The year 2010 was overshadowed by a helicopter crash during the Tour du Port organised by the Port of Rotterdam Authority on 27 June 2010. This accident killed four persons, including our colleague Martijn Hessing. Furthermore, one passenger was severely injured. Due to this tragedy, the Port of Rotterdam Authority cancelled all public events related to the Tour de France in Rotterdam until after the funerals of the four casualties. This fatal accident was witnessed by a great number of employees and made a profound impression on everyone.

Quality
To achieve our corporate goals, we believe it is essential to have insight into the development of our staff and their potential successors. We employ career counselling (AanZ), a Young Potential and a Management Development (MD) programme to support the development of our staff. All our employees are entitled to a minimum of one performance interview with their manager a year in which employee development is discussed and recorded. In the latter half of 2010, we conducted a 360 degree feedback for over 100 employees in the higher echelons of the organisation. For the members of the Management Team and the members of the Project Board Maasvlakte 2, a ‘management appraisal’ was established. These evaluations map the potential and competences of these target groups. We will use the results as input for development agreements for the coming period. The Port of Rotterdam Authority stimulates internal mobility. For example: the new Harbour Master was appointed from within the organisation. The new Harbour Master, René de Vries, started his career at the Port of Rotterdam Authority as a sailor and is currently one of its key managers.

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In January 2010 the ‘Inhuurdesk’ started operations, this is a ‘market-place’ concept enabling interested parties to view all the external capacity required via the internet site of the Port of Rotterdam Authority. This relates to positions for interimmanagement, temporary capacity or specific expertise required temporarily. Interested parties are able to bid for these assignments. The assignment is granted to the party that offers the best price-performance proposal. The Port of Rotterdam Authority expects this new procedure to increase transparency for all stakeholders and enhance our knowledge of the competitive bidding of interested parties which will, in turn, help the Port of Rotterdam Authority to assign postings at competitive prices.

Diversity
The Port of Rotterdam Authority underlines the importance of a diversified work force. We aim for a reflection of our workforce environment in our employees and want a reflection of standards and values of our society as well. For practical reasons and to focus our efforts we started to target women first. We signed the treaty Charter Talent to the Top (Talent naar de top)’ on 4 May 2010. By subscribing to this Charter, the Port of Rotterdam Authority committed itself to the development an explicit strategy for recruitment, promotion and retention of more female talent in top positions (Executive Board and second and third echelon). By doing so, the Port of Rotterdam Authority aims to establish a more diversified work force. This will improve our results and the quality of management decisions and also insure our organisational demands for personnel are met in the long run. In concrete terms, we aim to increase the percentage of female managers to 25% within five years. At present, women constitute 16% of these management positions. The Charter ‘Talent naar de top’ has been signed by 145 companies, financial institutions, universities, trade unions and government bodies. On an annual basis, they report to an instituted commission on their progress in respect of a number of critical performance indicators.

Employee satisfaction
A 2010 survey demonstrated that our staff are, in general, very satisfied with their jobs. We conduct an employee satisfaction survey every two years. In the May 2010 survey a score of 7.7 was achieved, our initial target for 2010 was a score of 7.3, the score in 2008 was 7.2. The most important improvements in the period 2008-2010 were in: personal development, remuneration and cooperation within and between departments. Our staff are more positive with regard to these specific topics. In respect of personal development and remuneration, the 2010 score was almost a full grade higher. However, the 2010 survey did suggest there was room for improvement in: result-orientation, efficiency and the focus on shared objectives. These topics will be addressed specifically in the coming period.

Employment conditions
On 27 January 2010, the Port of Rotterdam Authority and the trade unions reached an agreement regarding the new company collective agreement on employment conditions (Collectieve Arbeidsovereenkomst CAO). This agreement has been ratified for the period from 1 January 2010 to 1 January 2012. In addition to an increase in the salary scale amounts and the end-of-year employee bonus, the agreement allows for an extension of the remuneration structure. This will enable a better alignment of the employment conditions for personnel subject to the CAO and personnel not subject to the CAO. The CAO is not applicable to senior management, for which a supplementary structured remuneration policy has been agreed combined with targets to be achieved. These targets are derived from the targets of the Executive Board. Additionally, the agreement contains arrangements concerning
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the employability of staff over 45 years of age, internships, social conditions, teleworking and leave for short term care. Once every two years, we measure our employment conditions using the Best Employers Survey published by Intermediair. In 2010, the Port of Rotterdam Authority ended 4th in the total survey on employment conditions. In 2008 we were ranked 24th.

Promoting the interests of our employees
Our organisation has a Works Council which fulfils the tasks in accordance with the Works Councils Act. Cooperation between the Port of Rotterdam Authority, trade unions and the Works Council is excellent, as is evident in the smooth implementation of agreements and schemes. Our Health & Safety policy focuses on optimising working conditions. Five work related accidents resulting in short periods of absence and one with a longer period of absenteeism were reported in 2010. The Health & Safety coordinator and the company doctor deal with these cases, calling in the Labour Inspectorate when this is required. The Port of Rotterdam Authority has appointed counsellors to deal with matters pertaining to both undesirable conduct and integrity. There are four counsellors in total: three are employees of the Port of Rotterdam Authority and one is an external counsellor. Once every six weeks the Port of Rotterdam Authority conducts a Social and Medical Consultative Meeting, in which the manager, HR adviser, company doctor and social worker discuss absenteeism due to illness and decide on a joint follow-up action plan.

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2.7 Participating interests
Introduction
In order to achieve our objectives, the Port of Rotterdam Authority has a participating interest in a limited number of companies, both nationally and internationally. Before acquiring a participating interest a number of issues have to be addressed: the investment needs to enhance the core business; the investment has to comply with the internal yield objective of the Port of Rotterdam Authority; the Port Authority must be able to exercise sufficient influence on the policy to be pursued by the organisation in which we hold a participating interest. The Port of Rotterdam Authority has direct and indirect interests in seventeen companies and two foundations. Operational activities have been incorporated within ten of these companies and two foundations. A full list of participations is included in the other information in the financial statements. At the end of 2010, the participating interests collectively represented a total value (financial fixed assets) of € 25.2 million.

• • •

Dutch participating interests
Portbase One of our Dutch participating interests is Portbase. We acquired a 75 % share in this company in order to improve chain efficiency. Portbase develops, manages and operates the Port Community System (PCS). This is an electronic platform on which the port community can exchange vital information on logistics. In 2010, the Port of Amsterdam became a 25% shareholder in Portbase and with this the first step was made towards the development of Portbase as a national platform. Keyrail The Port of Rotterdam Authority is also a co-shareholder in Keyrail. We have been a co-shareholder since the foundation of Keyrail in 2006. Our share in the company is 35%, the other shareholders are ProRail which owns 50% and the Port of Amsterdam 15%. Keyrail is the commercial operator of the Betuweroute, the dedicated railway track for commodities, linking Maasvlakte in the port of Rotterdam to Zevenaar on the German border. The railway enhances the accessibility of the

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port of Rotterdam. In addition, Keyrail is an important link for transferring goods efficiently between the port of Rotterdam and the European hinterland. In this context, both the accessibility of the port and the effective handling of goods are important objectives.
Pipelines: RC2 and Multicore In order to optimise land based transport we participate in two pipeline exploiting companies, we own 50% of the shares in RC2 and 75% of Multicore shares. Both companies operate pipelines in the port of Rotterdam area. Our partners in these companies are ARG (50%) and Vopak (25%) respectively. Section 6.5 (Pipelines) of this report provides details of these participating interests.

De Verkeersonderneming De Verkeeronderneming is a joint strategic cooperative venture with the DirectorateGeneral of Public Works and Water Management, the municipality of Rotterdam and the Urban Region and the Port of Rotterdam Authority. The objective of De Verkeersonderneming is to increase the accessibility of the city of Rotterdam and the port of Rotterdam via the A15 motorway. In 2010, this cooperative venture was transformed into a foundation. In section 6.2 (Roads) of this Report, there is an explanation of the activities and results of De Verkeersonderneming in 2010 Rotterdam Port Experience

Unfortunately, Rotterdam Port Experience (RPEX) was not a success. RPEX was an initiative of the Port of Rotterdam Authority in collaboration with the municipality of Rotterdam. RPEX’s objective was to enhance the association between the port and the city, to positively influence the port’s reputation and to improve the pride of the port for all the residents in Rotterdam. However, we concluded that the concept did not attract enough visitors to achieve the objectives of RPEX. For this reason RPEX was terminated on 1 July 2010.

Port of Rotterdam International
The Port of Rotterdam Authority has the ambition to acquire a number of international participating interests in port management companies during the forthcoming years. Based on the idea that ports are links in global logistic chains, the focus will be on areas that generate commodity flows to and from Rotterdam. The main arguments for this ambition are: upgrading our skills by acquiring market knowledge, expanding our network and strengthening our image as a World Class Port; retaining cargo: the activities will strengthen our commercial links with existing customers and create the opportunity to acquire new customers. We set about selecting potential port participations in a structured way. We devoted considerable attention to risk analysis, sustainability and corporate governance. Internationalisation must contribute to the Port of Rotterdam Authority’s objectives. In addition, our initiatives must meet the preconditions of yield and sufficient control. As of 2010, the Port of Rotterdam Authority supports the ten ‘United Nations Global Compact Business Principles’, concerning human rights, labour conditions, environment and fighting corruption.

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Joint venture in Oman

The Port of Rotterdam Authority has two participating interests in the Sultanate of Oman: Sohar Industrial Port Company (SIPC) and Sohar Industrial Development Company (SIDC). These joint ventures with Oman focus on managing and developing the port and industrial complex of Sohar. About 80% of the 2000 hectare port complex (SIPC) has already been leased. In 2010 we invested € 6.3 million equity in Oman. This investment concerns the construction of a bulk terminal for the Brazilian multinational Vale. We expect to invest up to $ 24.7 million (= approx. € 16.7 million). SIDC plans to invest up to $ 247 million. Vale expects to handle at least 30 million tonnes of iron ore and pellets per year. The progress in the jetty construction is on schedule and we fully expect the jetty to be completed during the first quarter of 2011. Next to the existing port area, SIDC is developing a new area of 4,500 hectares called Free Zone Sohar. In 2010, this entity started preparations for the first phase involving 500 hectares. Contracts were concluded with several companies for the lease of 65 hectares. The first plots are expected to be put in to use in 2011.
Other foreign activities There are opportunities for port participations in: Brazil: Joint-management of the port of Suape. We signed a ‘Framework Heads of Agreement’ (HoA) with Suape in August 2010. Both parties intend to investigate the possibilities of a joint-venture and a new port organisation. Other countries: In India, Malaysia, South Africa, China and around the Mediterranean Sea we are investigating the possibilities of cooperating with authorities and businesses.









In addition, in 2010 we carried out the following consultancy assignments: Brazil (Suape): we provided a second opinion to a master plan compiled by Brazilian consultants. Furthermore, we provided a business plan for the port of Suape, being a part of the aforementioned master plan. Brazil (national): we provided knowledge and expertise and a second opinion to the university of Santa Catarina by executing a strategic study of all 34 ports in the country.

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report of the port authority
1 2 3 4 5 6 7 8 9 The Port of Rotterdam About the Port of Rotterdam Authority Harbour Master Customer Area and space Traffic and accessibility Environment and sustainability Finance Outlook 2011

Harbour Master

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3.1 The Harbour Master in brief
It is vital for the port to be readily accessible from all sides; from the sea, the inland waterways, by road, rail and pipeline. The Harbour Master of Rotterdam is responsible for the clean, smooth, safe and secure handling of shipping. In doing so, he performs a large number of public-law tasks. These powers have been transferred to the Harbour Master by various authorities, such as central government and the municipalities of Rotterdam, Schiedam and Vlaardingen. The Harbour Master stands for nautical order and safety in the areas of environment, safety and port security. In addition, the Harbour Master coordinates incident control. The Harbour Master uses various means to achieve this, such as patrol vessels, the Harbour Coordination Centre, the radar stations, bridges and locks, and the undertaking of all kinds of inspections on board of ships and at business premises.

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3.2 Smooth handling of shipping
Vessel visits
Seagoing vessels in Rotterdam in the last 5 years
40000

14.000 35000 12.000 30000 10.000 25000 8.000 20000 6.000 15000 4.000 10000
5000 2.000 0 0 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Tankers Dry bulk General cargo General cargo Tankers Container Container Others Others

In 2010, the number of ships visiting the port of Rotterdam increased by 3% compared to 2009. In 2010, a total of 33,404 ships visited Rotterdam. This total is slightly below the 35,400 visits expected. However, we observed larger and more fully loaded vessels which explains the difference between the relatively large percentage increase in goods handled and the moderate increase in ship visits. Overige
Volcontainer

14000 12000 10000 8000 6000 4000 2000 0

Turn Around Time

General cargo Droge bulk

Turn Around Time and number of visiting ships
9,5 (Zeevaart) 9,0 39.000 37.000 35.000 33.000 31.000 29.000 27.000 2006 25.000 2007 2008 2008 2009 5:02 8,5 4:90 8,0 4:78 7,5 4:66 7,0 4:54 6,5 4:42 6,0 4:30 5,5 20104:18

Dry bulk

Smooth handling of shipping is crucial for the port of Rotterdam and the Turn Tankschepen Around Time (TAT Rotterdam) is essential to its competitive position. The average sailing time (handling time) of seagoing vessels larger than 150 meters from the sea to the berth and vice-versa is expressed as the TAT Rotterdam. In 2010, our target 2007 was an2006 average time of2008hours2009 27 2010 4 and minutes. In 2010, the TAT realised was 4 hours and 37 minutes. Compared to our target time, the TAT we achieved was 10 minutes too high, a deviation of 4%; a deviation of up to 5% is acceptable. In 2010, the TAT showed an increase of 3% compared to the Volcontainer previous year’s TAT (2009: 4:30). A partial explanation for the increase is the relative Overige increase in the number of ships that visited the City and Botlek areas. The sailing Droge bulk times are longer, leading to a slight increase in the average TAT Rotterdam. Another cause is the growth in larger and more fully loaded ships; these have an increased sailing time.

5,02 4,90 4,78 4,66 4,54 4,42 4,30 4,18 2005 2006 2007 2008 2009

Turn Around Time Rotterdam

Norm Enviroment 2006 2007 Norm Respons

Enviroment 2009 2010 Respons Ship visits

in hours Norm Turn Around Time RotterdamSafety Safety

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Smooth administrative settlements
With the arrival of the new Port Management Bye-Laws (HBV) Rotterdam 2010 implemented as of 1 March 2010, the port regulations have been simplified and the administrative burdens for users reduced. The HBV is one integral document encompassing all port regulations of the municipality of Rotterdam. In the HBV, several exemptions have been replaced by notifications. Notifications are easier to process than exemptions. The replacement of exemptions by notifications also offers customers other benefits. Customers can now submit notifications electronically to the Harbour Master. And whereas in the past exemptions had to be brought on board physically, an email is now sent to the captain after which work may start. This means the customer has fewer administrative burdens and saves time.

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General cargo Tankers Container Others Dry bulk Volcontainer Overige Droge bulk

39.000 37.000 35.000 33.000 31.000 29.000 27.000 25.000 2006 2007 2008 2009 2010 Ship visits Turn Around Time Rotterdam in hours

5:02 4:90 4:78 4:66 4:54 4:42 4:30 4:18

5,02 4,90 4,78 4,66 4,54 4,42 4,30 4,18 2005 2006 2007 2008 2009

Turn Around Time Rotterdam

3.3 Nautically safe
Ocean vessels and nautical accidents

Nautical accidents
The reliable handling of shipping is essential for shipping companies, our customers and the surrounding environment. Nautical safety holds a crucial position in this. In 2010, we believe Rotterdam once again demonstrated it was a safe port; the basis for this belief being the number of nautical accidents compared to the total ocean vessel movements (see graph). The number of nautical accidents fell to 116. Compared to 2009 (124) this represents a reduction of 6%. The objective for 2010 was a maximum of 120 nautical accidents. There were a total of 58 nautical accidents in the navigation channels and 58 in the port basins. 49 of these involved collisions with an object, 27 were collisions between vessels and 40 were nautical accidents in other categories. In order to enhance nautical safety, we supervise navigation rules and berth usage by performing themed actions. Examples of these are checks on the usage of marine telephones, the stability of sand and gravel ships, party and passenger navigation, exemptions on compulsory pilot services, leisure and fast motorboats. The themed actions appear to be an effective tool for monitoring compliance with the rules.

90.000 86.000 82.000 78.000 74.000 70.000 2006 2007 2008 2009 2010

230 200 170 140 110 80

Ocean vessels movements Nautical accidents Nautical accident norm

Significant accidents
Of these 116 accidents, unfortunately 15 were significant. A nautical accident is significant if one or more of the following factors occurs: fatally or severely injured victims, major damage to navigation channels, vessels, cargo or the environment or if shipping is completely blocked for one hour or more. 2 of the 15 significant accidents happened near the Botlek Bridge. In both accidents a car hit the water and in both accidents one person lost their life. Furthermore, in Hoek van Holland an accident happened with the tug boat Fairplay 22 causing the death of two people. By regulating traffic and making use of patrol vessels, the Port of Rotterdam Authority attempts to ensure accidents cause limited disruption to shipping traffic.

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Port of Refuge

In 2010, Rotterdam was also a Port of Refuge. Outside the operational control area of the Harbour Master, two vessels collided on 12 October 2010. Near Scheveningen, the container vessel Jork Ranger and the oil tanker Mindoro both suffered serious damage. The container ship was able to continue her journey to Rotterdam independently. The oil tanker Mindoro faced more severe problems. Quick assistance was provided via the Coast Guard centre. The ship was secured in the port of Rotterdam at the request of the Ministry of Infrastructure and Environment. The incident was dealt with successfully due to good cooperation between the various parties.

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3.4 Safe transport
40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 Tankers Dry bulk General cargo Container Others

Coordinated supervision
Supervision of cargo and handling is necessary in order to maintain the safety level. The Harbour Master does this by carrying out inspections and checks, and initiates corrective measures where necessary. The national Supervision Reform programme (Vernieuwing Toezicht) aims at cooperation between supervisory bodies; including Customs and the Directorate-General of Public Works and Water Management. Within the domain of the seaports, the Harbour Master is responsible for coordinating the supervision of various organisations on board seagoing vessels in Rotterdam. In addition, the Harbour Master participates in coordinated supervision within the Front Office Chemicals Rijnmond. Within the aforementioned programmes, we are working at joint planning, data sharing, joint risk analysis and shared risk-directed and system supervision.

Safety & Environmental Index (SEI)
9,5 9,0 8,5 8,0 7,5 7,0 6,5 6,0 5,5 2006 2007 2008 2009 2010 Norm Enviroment Norm Respons Norm Safety Enviroment Respons Safety

Safety and Environmental Index
The Harbour Master uses the Safety Environment Index (SEI) to measure the level of compliance with rules on safety and the environment on board ocean and other vessels. The measurement is based on the findings during on-board inspections and the systematic checking of compliance with statutory administrative reporting obligations by shipping companies and agents. The index comprises three target values for the environment, safety and the quality of reports. In 2010, the target value for safety (8.3) was achieved with a score of 8.5. The index for the quality of reports was 7.6 versus a target value of 7.5. The realised index for the environment was 8.8, in comparison to the target value of 8.3 (see paragraph 3.5 Clean).

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A total of 12,426 inspections were carried out: 6,098 environmental checks and 6,328 safety checks. This is largely in line with the intended number of checks (11,750). An overview of the total inspections in recent years is shown below:
2010 Safety checks Environmental checks TOTAL 6,328 6,098 12,426 2009 2008 2007 2006 4,466 6,235

5,956 5,385 11,341

6,399 5,552 11,951

6,066 5,737 11,803

10,701

Monitoring
By structurally monitoring the compliance behaviour of ships and businesses, we can carry out more targeted checks. Together with other supervisory bodies, we establish a risk profile. In cooperation with the Directorate-General of Public Work and Water Management, we have developed joint objectives. In addition, we share our supervisory results. If combined, the different risk analyses provide a (collaborated) risk profile per object or per group. With this approach, we try to reward good performance by decreasing the number of inspections and punish bad performance with extra inspections. This approach is also intended to stimulate companies to take greater responsibility for their own compliance.

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3.5 Clean (environmentally safe)
Introduction
To maintain a sustainable port, the Harbour Master actively monitors compliance with environmental laws by the port user. In 2010, the ports of Rotterdam and Amsterdam started carrying out inspections of port waste-processing installations (havenontvangstinstallaties (HOI)). These are locations in the port area where ships and shipping lines can deliver their waste. We carried out these inspections in anticipation of amendments to the Prevention of Pollution from Ships Act. The legislative proposal for amendments was accepted by the Upper Chamber of the Dutch Parliament in the autumn of 2010. After the legislative amendments, port managers may be granted supervisory powers in respect of the Prevention of Pollution from Ships Act.

Safety and Environmental Index
Apart from information about the level of safety, the Safety Environment Index (SEI) also gives a picture of compliance with environmental regulations on board ships. Here a distinction is made between compliance within the port and the compliance of ocean vessels outside the port. In 2010, the SEI for both the port environment and the maritime environment was 8.8, above the norm of 8.3. In addition, 1,884 applications and notifications of activities involving increased risk, such as repairs and alternative unloading methods, were assessed.

Shipping Waste Decree
Partially due to the development and implementation of the Shipping Waste Decree, the Port of Rotterdam Authority is also active in preventing environmental pollution from ships’ waste in the inland waterways The Harbour Master’s Reporting Centre also manages the national Reporting and Information Centre (Meld- en Informatiepunt) where all questions and reports concerning the Shipping Waste Treaty are received and passed on to other government departments. It appears that the national Reporting and Information Centre offers added value to both the sector and the relevant governmental departments in respect of compliance with the Shipping Waste Decree. After the pilot period, we agreed with Water Management to retain the national Reporting and Information Centre in 2011.
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Bunkering and spills
Oil and/or chemicals may end up in the water when bunkering oil, transferring liquids or for other reasons. In the event of such an incident, the Harbour Master ensures the spill is contained to minimise the risk of consequential damage. The polluted water and polluted ships or other objects are then cleaned. There were 240 recorded spills in 2010; an actual clean-up operation was carried out on 53 of the spills. Cleaning up spillages is extremely important to us in order to maintain a clean, smooth, safe and secure port. In order to prevent any delays in the Turn Around Time of a polluted ship and pollution of the port, a clean-up organisation is on standby in the port 24 hours a day, seven days a week. In 2010, the spill control was outsourced to a market party with qualified personnel and materials.

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3.6 Secure
The Port Security Act applies to objects in the port area deemed high-risk from the perspective of terrorism. These could be both port facilities and non port facilities. The Harbour Master is also the Port Security Officer. In this role, he is responsible for compliance with the Port Security Act. The Port Security Officer certifies the security plan for the port facilities and high-risk objects, organises supervision and, if necessary, acts in an enforcing role to ensure compliance with European legislation. In 2010, to comply with international safety standards, we actively worked on the recertification of companies which are obliged to have ISPS certification but whose certification was about to expire. In total, we issued 97 certificates, the majority of which replaced expired certificates. The Harbour Master periodically inspected businesses with ISPS certification to monitor implementation of their security plans. According to internal standards, the security level is adequate if the average assessment produces a score of 7.1 on a scale of 1 to 10. Business security that had previously been assessed inadequate was subject to more frequent inspections. In 2010, the businesses scored 7.0

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report of the port authority
1 2 3 4 5 6 7 8 9 The Port of Rotterdam About the Port of Rotterdam Authority Harbour Master Customer Area and space Traffic and accessibility Environment and sustainability Finance Outlook 2011

Customer

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4.1 Customer in brief
Our ambition is to maintain our market leader position in Europe and to gain market share in the growth concepts Energy Port, Fuel Hub and Container Port. Together with our customers, we invest in these growth concepts in order to achieve this ambition. We invest in terrains which we lease out to customers as well as investing in real estate or infrastructure, such as quay walls and jetties. In their turn, our customers invest in specific business-related capital equipment, such as cranes and storage tanks. In order to retain our investment levels, we require our operating income to develop consistently and soundly. To ensure healthy turnover development, we need a diversified and high quality customer portfolio. After all, our growth ambitions could be negatively affected if customers have limited room to invest or face bankruptcy. We are working on improving our customer portfolio by strengthening the relationships with our existing customers and acquiring new customers in specific market segments. In addition, we are pursuing an active commercial policy whereby we will acquire new customers and, in cooperation with them, consider ways in which we can support them.

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4.2 Our relationship with the customer
Introduction
We have two categories of contracted customers: location related customers and customers that handle cargo. Location related customers are, for example, refineries, chemical companies and terminals for handling and storing goods. Customers that handle cargo are the large companies that execute checks on the transport of goods. We do not have a contractual relationship with shippers and forwarders (the so called “customer behind the customer”). Nevertheless, we believe it is important to maintain a good and solid relationship with them; not least because they have a significant effect on good flows. Therefore, shippers and forwarders form part of a third category, i.e. non-contract customers. In 2010 we strengthened our contacts with the most important location and good handling customers. The “executive account programme” was a critical element in this. Executive Board members frequently visit companies in the port and outside the port. They discuss the strategic developments of the port and the interests of those companies in these developments.

Customer satisfaction
In order to create and maintain good relationships, it is important to know how our customers perceive the services of the Port of Rotterdam Authority. We carried out a customer satisfaction survey at the beginning of 2010. The score for general customer satisfaction levels was 7.2, similar to the 2007 result. The target for 2009 was a score of 7.4. Unfortunately we did not reach our target score. Nevertheless, the customers believe that the quality of our services has improved; in particular communication and cooperation improved substantially. We evaluated the results of the survey and discussed the criticism with the companies involved. Points of improvement are particularly related to accessibility, “value for money” and dealing with complaints. Our target for the 2012 survey is a score of 7.4.

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Harbour dues, rates
We fixed the yearly rate structure of harbour dues in cooperation with the market parties involved, partly represented by Deltalinqs. At the end of 2009, we fixed the 2010 harbour due pricing policy. Hereby, we attempted to reduce the impact of the crisis on our customers. We agreed on a non-recurring crisis deduction of 7% to the rate structure of harbour dues for 2010. The consequences of the crisis are still apparent in several market segments. For this reason, we awarded a recovery deduction on the 2011 harbour due pricing policy for all goods segments. In addition, we awarded a 3% deduction on the inland ship rate structure for 2011. Our aim is to stimulate the supply and transit of goods through inland shipping.

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60 50 40 30 20 10 0 2006 2007 2008 2009 2010 Liquid bulk Dry bulk Containers Breakbulk

40 35 30 25

4.3 Our market position
15 10 5 0 2006 2007 2008 2009 2010 Dunkirk Zeebrugge Wilhelmshaven Zeeland Seaports Ghent Rotterdam Antwerp Hamburg Amsterdam Le Havre Bremerhaven

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Market developments
The recovery of world trade, which started in the second half of 2009, grew above expectations in the first half of 2010. Since then growth has stabilised. The yearly growth rate was 15% (source: CPB). The throughput of most ports in the Hamburg-Le Havre range showed a similar recovery curve in 2010. In particular, Rotterdam took advantage of the growth in trade volume of mineral oil products in 2010; this was due to the price development of these goods. In 2010, we managed to maintain the strengthening of our position in the container market which started in 2009.
Throughput Rotterdam*
(net weight x 1.000 metric tonnes)

Movements in throughput Rotterdam
(gross weight x 1.000 metrics tonnes)

2010 84,590 209,358 293,948 112,293 23,686 135,979 429,927

2009

Difference in%

2008

Dry bulk Liquid bulk Total bulk goods Containers Breakbulk Total general cargo TOTAL goods throughput

66,628 198,090 264,718 100,280 21,959 122,239 386,957

27.0 5.7 11.0 12.0 7.9 11.2 11.1

94,935 194,003 288,938 106,999 25,199 132,198 421,136

* Figures include throughput at terminals on the northern banks of the river (Hook of Holland, Vlaardingen, Schiedam). This throughput accounted Crude oil 23,3% for approx. 3.1% of total throughputoil -2010. Mineral in Harbour dues are excluded from PoR financial other liquid bulk 25,4% statements because harbourDry bulk 19,7% dues are collected by local municipalities. Containers 26,1% Breakbulk 5,5%

Rotterdam is the largest petrochemical cluster in Europe with five refineries and forty chemical companies. Since the crisis of 2008/2009, the refinery and chemical sectors have stagnated leading to overcapacity. In the refinery market, Rotterdam enhanced its market leader position because two refineries in competing ports (Dunkirk and Wilhelmshaven) closed in 2010. The refineries in Rotterdam further enhanced their competitive position by targeted investments.

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Dry bulk Containers Breakbulk

Movement market share Rotterdam in de Hamburg - Le Havre range
(based on total throughput in tons) in % 40 35 30 25 20 15 10 5 0 2006 2007 2008 2009 2010 Dunkirk Zeebrugge Wilhelmshaven Zeeland Seaports Ghent Rotterdam Antwerp Hamburg Amsterdam Le Havre Bremerhaven

The steel market in Europe recovered well. Most furnace-blast installations in the Ruhr area are now utilising their full production capacity again. The iron ore and a large share of the coal necessary for these furnaces are imported via Rotterdam; consequently the transhipment of iron ore and coal is. almost back to normal levels. However, the coal handling for power plants remained behind schedule due to the low gas price in 2010. The gas heated power plants therefore operated at higher production levels than the coal heated power plants. The handling of steel products, such as sheets and roles, increased substantially in 2010. This was related to changes in the worldwide supply of steel products.

Market share
Our market share for all good flows increased from 36.4% in 2009 to 37.8% in 2010; this far exceeded our 2010 target of 36.3%. In 2009, we defined three growth concepts to focus our marketing efforts on. The concepts represent a critical element in our commercial strategy for the next five years. The three growth concepts are: ‘Rotterdam Energy Port’, ’Rotterdam Fuel Hub’ and ’Rotterdam Container Port’. In addition to these three growth concepts we defined several other marketing concepts for favourable growth opportunities: ’Rotterdam Petrochemical Cluster’, ’Rotterdam Steel Port’, ’Rotterdam Cool Port’, ’Rotterdam RoRo Port’ and ’Rotterdam Service Port’. We have clarified our three growth concepts ’Energy Port’, ’Container Port’ and ’Fuel Hub’ below.

Market share Rotterdam in Hamburg – Le Havre range
(Per main segment) in % 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 Liquid bulk Dry bulk Containers Crude oil 23,3% Mineral oil Breakbulk other liquid bulk 25,4% Dry bulk 19,7% Containers 26,1% Breakbulk 5,5% 40 35 30 25 20 15 10 5 0 2006 2007 2008 2009 2010 Dunkirk Zeebrugge Wilhelmshaven Zeeland Seaports Rotterdam Antwerp Hamburg Amsterdam

Energy Port
Good flows The growth concept Energy Port aims to be the market leader in ‘gas & power’, the production of sustainable energy and the handling of related commodities. Those commodities are especially cokes-coal, LNG (shipped liquefied natural gas) and bio mass. The extension of the production of wind energy and the developments of ‘Carbon Capture and Storage’ (CCS) are also part of this concept. Fossil versus new energy Rotterdam Energy Port has a significant economic and societal impact on the undisturbed and reliable supply of clean and affordable energy for the port, the region, Netherlands and Northwest-Europe. A growth in the Rotterdam Energy Port means an increase in CO2 emissions due to fossil sources (coal, gas, oil). The Port of Rotterdam Authority is very aware of this dilemma. On the one hand, the Rotterdam Energy Port is growing due to the increasing demand for energy from businesses and households, on the other hand, the increase in CO2 emissions poses a climate threat. That is why the new coal plants are committed to the newest technologies with regards to the CO2 capture readiness principle, there is space to capture CO2 emissions and we are working on CCS infrastructure. In addition, we are focusing on new CO2 –reducing energy flows and products such as LNG and bio mass. Those new flows are not only cleaner, but also offer certainty in respect of future energy provision. Our ambition is to develop Rotterdam into the most energyefficient energy and industrial cluster in the world and the CO2 hub in NorthwestEurope.

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Carbon Capture and Storage (CCS)

Since the start, the construction of E.ON’s and Electrabel GDF SUEZ’s new coal / bio mass plants on the Maasvlakte has been linked to the development of carbon capture and storage infrastructure. Together they plan to realise a CCS demonstration project. To this end, they set up the joint venture ROAD CCS in 2010. Partly funded by a European Union and Dutch State subsidy, ROAD intends to capture and store a minimum of 4,000 kTon CO2 in a gas field at sea between 2015 and 2020. Furthermore, both parties aim to realise a CO2 shipping terminal, so carbon dioxide can be liquefied and transported by ship to empty reservoirs in open sea. In this context, the Port of Rotterdam Authority is conducting a location study, in which we consider safety and synergy. In addition, the Port of Rotterdam Authority has taken the initiative in the construction of an “open access” pipeline in the port through which producers can transport their CO2 to a shipping terminal or an offshore pipeline.
Liquefied Natural Gas (LNG) Due to the crisis, the world demand for natural gas declined. Simultaneously, the supply rose due to new natural gas producers in the United States and increased LNG-export from the Middle East. These market conditions caused the price of natural gas to decline significantly. Several LNG-terminal projects in the Hamburg-Le Havre range were postponed or cancelled, including the LionGas project in Rotterdam. On the other hand, Gate’s LNG-terminal will start operations soon; the Danish company Dong Energy will be Gate’s first customer contracting LNG suppliers. The residual heat from E.ON’s plant will be used by Gate to transform the cold LNG into gas. In 2010, a residual heat pipeline was constructed underneath the Yangstehaven. Gasunie also worked on its gas roundabout (Gasrotonde Rijnmond) project in 2010; the aim of this project is to transport Gate’s gas to the hinterland. The new EnecoGen power plant and the new hydrogen factories of Air Liquide and Air Products will be connected to this in 2011. Furthermore, in 2010 the InterGen gas heated Maasstroom Power Plant became operational.

Fuel Hub
For several years, the throughput of mineral oil products has grown substantially in the port of Rotterdam. This particularly concerns fuels such as fuel oil, diesel, kerosene and petrol. In recent years, the world wide transport of oil products has also grown due to differences between demand and supply in the relevant regions. An increase in the trading volume of almost all ‘liquid bulk’ flows has led to larger handling volumes per ship and heavier demands on the nautical infrastructure in the port. In 2010, several tank storage companies expanded: Europoort Tank Terminal (Vitol), Argos Oil (Pernis), Botlek Tank Terminal (HES/Noble Group), Service Terminal Rotterdam (STR). In 2010, we started a market consultation to gain insight into the commercial possibilities for a new tank terminal Europoort-West located on the Kop van de Beer. We had discussions with companies from Russia, China, India, the United States and of course the Netherlands and Belgium. On the basis of the market consultation and the tendering procedure, we will make a selection in 2011. In addition to mineral oil products, bio fuels also increased significantly.. This concerns bio-ethanol for mixing petrol, and bio diesel. This growth was driven by the compulsory mixing of 4% proposed by the European Union in 2010.

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Container Port
The container market is recovering remarkably fast. The majority of the ships that were out of service in the crisis were back in operation in the first half of 2010. In addition, 340 new ships were delivered of which 10% had a capacity equal to or in excess of 10,000 TEU (source: Drewry Container market 2010/11 – Annual Review and Forecast). Most of the so-called Ultra Large Container Vessels (ULCVs) are used for the Asia-Europe trade, given the large volumes transported on this route, especially from China. Rotterdam is the pre-eminent port to accommodate these large vessels; consequently, in 2010, we welcomed a ULCV 172 times. The market developments related to container traffic in the long term seems positive. The construction of the new container terminals on Maasvlakte 2 (Rotterdam World Gateway and APMT) is, therefore, progressing unimpaired. We are keeping a close eye on the growth rate of both the demand for and supply of container capacity in the port of Rotterdam. We have noticed an increase in containerisation for the transport of cooled products such as fruit, fish and meat and we are working towards a further integration of the handling of these products, transported in containers and general cargo, with the development of the ports in the Waal/Eemhaven area. We refer to this growth concept as: “Cool Port”.

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4.4 Port Marketing
We continuously work to maintain and extend our contacts with all the branches in the eight segments (three growth concepts and five back bone and niche concepts) that are relevant to the port of Rotterdam. To do this we employ a port marketing strategy focussed on a number of marketing concepts The market segments are an important asset in our commercial strategy for the coming five years. In addition to the focus on growth, backbone and niche concepts, we also pay attention to total port marketing (port branding). We use various channels for the marketing and account management of the port. Through our Business Managers we stay in direct contact with customers on a day-to-day basis. In addition, our regional representatives in the most important areas overseas (Japan, China, Brazil, Russia, USA, Austria) fulfil a crucial role in maintaining contacts with market parties located there. Another important channel is the Rotterdam Port Promotion Council (RPPC). The RPPC functions as a PR and marketing office for port businesses in Rotterdam and the surrounding area. In 2010 the RPPC once again organised several exhibitions and made promotional trips to countries within and outside Europe.

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report of the port authority
1 2 3 4 5 6 7 8 9 The Port of Rotterdam About the Port of Rotterdam Authority Harbour Master Customer Area and space Traffic and accessibility Environment and sustainability Finance Outlook 2011

Area and space

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5.1 Area and space in brief
Space for growth is important for the development of the port. We are creating that space through the construction of Maasvlakte 2; and also by intensifying the existing Rotterdam port area, and developing and redeveloping existing and outdated plots and properties. We intend to create an efficiently organised port area, with good public infrastructure. In addition, we actively examine opportunities as they occur outside the Rotterdam port area. Our total capital expenditure amounted to € 445 million in 2010. In order to realise new plots and to intensify the utilisation of existing plots, long term processes and proper preparations are required. Every postponement or cancellation of investments or future land leases can limit the space for growth in the port area. To avoid this and to optimise the utilisation of the existing port area, we have constructive dialogue with relevant stakeholders. This approach is explained in more detail in paragraph 7.4 Dialogue. Furthermore, the Port of Rotterdam Authority uses the ‘best practices’ in risk and project control and the project organisation Maasvlakte 2 has been accredited for working in accordance with the project management method Prince 2.

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5.2 Maasvlakte 2
Introduction
Immediately to the west of the existing port area, we are constructing a new European first-class location in the North Sea dedicated to port activities and industry: Maasvlakte 2 will cover 2,000 hectares, of which 1,000 hectares will be lettable sites. The port size will increase by 20%. Maasvlakte 2 will be constructed in roughly two phases. The first phase (2008-2015) consists of reclamation of the first part of the sand works (700 hectares), the construction of the solid seawall, the necessary deepening of the port basins and the construction of public infrastructure to reach the area. The second phase (2015-2030) concerns the construction of the remaining sand works (300 hectares), the deepening of the other port basins and the finalisation of the missing infrastructure. When there is sufficient demand, the second phase construction work will start. Global economic developments also have an impact on Maasvlakte 2. However at the end of 2010, on the basis of the updated project business case, the Executive Board and the Supervisory Board positively reconfirmed the investment decision made in 2006 concerning the construction of Maasvlakte 2.

Progress of the construction
The realisation of the majority of the project is being undertaken by the construction consortium PUMA on the basis of the contract Seawall and first plots (Zeewering en eerste haventerreinen). The total contract value is close to € 1,1 billion and is the largest contract the Port of Rotterdam Authority has ever awarded. In September 2008, we started construction; in 2009, the main project focus was land reclamation which was continued in 2010. In addition, construction of quay walls and the solid seawall started in 2010. Furthermore, projects related to the accessibility of Maasvlakte 2 from the current Maasvlakte are in preparation or being carried out. The construction of Maasvlakte 2 is progressing as planned. In 2010 all the planned milestones were achieved: By the end of 2010, in total 2/3 of the sand works (240 million m3) had been reclaimed. The construction of the quay wall for the first customer (Rotterdam World Gateway, RWG) started. The deep wall has been fully casted, the concrete works are progressing well.

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• •

The construction of the solid seawall on the North-side of Maasvlakte 2 was started. For this purpose, over one million tonnes of stone have already been delivered from Norway and the old seawall partly dismantled. We brought the pipeline-passage Yangtzehaven into use. With this pipeline route for utilities we realised a critical milestone in the continued construction of Maasvlakte 2. The broadening of the Southside of the Yangtzehaven is ready. This means the Yangtzehaven is broad enough to serve as an access channel for Maasvlakte 2, except for the cut which is scheduled for the first quarter of 2013. The projects in the existing port area that are necessary for the accessibility of Maasvlakte 2 (the so-called interface projects) also started in 2010. In March, we awarded the construction of an overpass junction near Distripark Maasvlakte 1; the construction works are progressing well. In 2010 we awarded several other projects related to the modification, extension and connection of roads and rail to the existing port area; these projects will start in 2011. All the projects aim to make Maasvlakte 2 accessible by 2013.

Sustainable execution and development
Sustainability is and will continue to be a major spearhead for Maasvlakte 2. To this end, we have focused specific attention on the lay-out of public spaces. We are investigating the possibility of designing and controlling a sustainable area. Subjects of the study include, among other things, the multifunctional usage of the seawall and the applicability of sustainable lightning. We have made agreements with our customers concerning the sustainable lay-out and operation of the terminals. We are in consultation with these terminal operators with reference to the implementation of these agreements. These include issues such as the selection of the terminal concept, the realisation of the model split and the utilisation of materials. These experiences will be used in the future renting out of plots on Maasvlakte 2. When renting out terrains, we aim at clustering, that is combining existing and new energy and chemical companies, but also logistic areas. We have done this in order to stimulate the mutual usage of energy and residual flows and the development and usage of shared facilities. To us sustainability also means sharing and passing on information. We have an extended youth programme including a teaching package. The reach of this youth programme is substantial. In 2010, the teaching package was often used by schools and FutureLand, the Maasvlakte 2 information centre, was visited by schools twice a week on average; the schools ranged from primary schools to secondary schools and universities. The relationship built up with our customers, the environment and other stakeholders is a critical success factor for the design of sustainability.

Agreements with stakeholders
In the run up to the construction of Maasvlakte 2, agreements about sustainable execution and development were laid down in various contracts with stakeholders. In the year 2010, the focus was on compliance with those agreements. In this context, we delivered the first MEP+ (Monitoring and Evaluation Programme) and integral report for discussion by the Council of Security (Tafel van Borging), the consultative body of the agreement ‘Vision and Trust’ (Visie en vertrouwen). Furthermore, on the basis of several agreements, we have been working on sustainable measures and solutions. These measures vary from cleaning our own vessels to the implementation of the Environmental Ship Index, see paragraph 7.2: Sustainability for more information. We are going to assess these measures in respect of feasibility and continued implementation in the next period.

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Monitoring
The authorities have established a wide-ranging monitoring programme with regards to the Environmental Impact Studies (MERs; Milieu Effecten Rapportages). In 2010, we started monitoring on all fronts. The Monitoring and Evaluation Programmes (MEPs, Monitoring en Evaluatie Programma’s) aim to provide insight into the actual effects of the construction, presence and utilisation of Maasvlakte 2. Subsequently we assessed these in the light of the expected effects. These relate to estimates of the effects on the water flow, sedimentation level, seabed life, algal as nutrition provision for shellfish and the underwater noise caused by dredging ships. The results will form input for the evaluation of the core urban planning decisions of Project Mainport Rotterdam( planologische kernbeslissing Project Mainport Rotterdam (PKB PMR)), and will form the basis on which the authorities can, if necessary, amend implementing orders. Using this approach, we will be both assessing and learning.

Communication
We consider public support very important for Maasvlakte 2,. In addition to complying with agreements concluded with stakeholders, we have, from the start, been communicating with the environment,the wider public and specific target groups. In the first place, we keep our stakeholders updated through FutureLand, the Maasvlakte 2information centre. Since its opening in May 2009, approximately 170,000 people have visited this centre of which over 100,000 in 2010. As of June 2010, the FutureLand Express was operational, allowing visitors to make a tour on the reclaimed land. Approximately 10,000 passengers have already made this trip. Communication was mainly via the media but we also used other means, such as publication of a second issue of the MAASVLAKTE 2 Magazine and an art exhibition of Maasvlakte 2 works (Portscapes) in the Museum Boijmans Van Beuningen. Furthermore, we compiled a community-minded report of the MEPs in 2010. During a conference about the facts related to Maasvlakte 2 (Maasvlakte 2 de feiten) in March 2010, we shared the most important experiences from the preparation phase of the project with approximately 300 interested people from several public and corporate entities.

Archaeological discoveries
Building a future means giving consideration to the past. During the construction of Maasvlakte 2 important archaeological discoveries are to be protected Legislation is in place to do this but we also deem it our social responsibility. Until now we have not discovered anything of particular archaeological interest. In the sand resource area, there were a number of paleontological discoveries such as mammoth bones and other fossils. In 2010, we signed an agreement with the Rotterdam’s natural history museum stipulating that we would make the discoveries available to the museum. In addition, we set up a small exhibition in FutureLand.

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5.3 Existing port area
Introduction
Together with other companies the Port of Rotterdam Authority invests in the port area. We invest in terrains to let these out to customers and we invest in real estate or infrastructure, such as quay walls and jetties. In their turn, our customers invest in specific business capital equipment such as cranes and storage tanks.

Intensifying space
Space is scarce in the port of Rotterdam area. With our investments we intend to intensify and redevelop existing port areas. Similarly, our pricing policy is aimed at stimulating the conscious usage of space. In addition, we consult businesses about taking back plots or parts of plots that are not being optimally used. With this approach, we took back over 20 hectares and reused them in 2010. Furthermore, we are reducing the length of plot reservations and terrain options. Investments are required in order to intensify the utilisation of space. In the end however, intensification of space leads to an increased number of leased hectares, increased throughput and an increase in our income per square meter. Of the total of 5,252 hectares in the existing port area, 4,781 hectares are let out to our customers, 97 hectares are in option to customers and 180 hectares are reserved for potential leases. Approximately 200 hectares are still available. The vacant terrains are in general small and not located on the waterfront.

Intensifying in collaboration with port businesses
Europoort Tank Terminal In 2010, the Port of Rotterdam Authority decided to facilitate the enlargement of the Europoort Tank Terminals (ETT). ETT expects to realise an additional 383,000 m3 of storage capacity. The Port of Rotterdam Authority planned to invest in a jetty to accommodate additional handling capacity. Our investments are necessary to balance the handling and storage capacity after enlargement. Previously unused terrain will be used for the construction of the new storage tanks.

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EMO

The Port of Rotterdam Authority also decided to construct infrastructure for an EMO establishment and to fill in the former Hartelkanaal in 2010. The plot covers 24 hectares. In order to make the terminal suitable for the handling of coal and iron ore, we will realise a quay wall. EMO is expected to handle about 5.6 million additional tonnes per year.
Botlek Tank Terminal Furthermore, in 2010 the Port of Rotterdam Authority decided to invest in infrastructure for a new liquid bulk terminal for Botlek Tank Terminal (BTT). We have invested in the filling in of an area of 5 hectares to be an extension of the existing terrain and in some additional works. BTT is investing in the terminal. The storage capacity will grow to 526,000 m3 after completion of the project in 2014. This is expected to result in the handling of 3.4 million tons per year. Currently, BTT is subject to an MER procedure (Environmental Impact Study) that is expected to be completed in the second half of 2011. Afterwards, the filling in will start, and be completed in phases. The filling in is expected to be completed in the middle of 2013 and to be fully operational one year later. LNG import terminal (Gate) The realisation of Gate’s LNG import terminal is progressing successfully. The so-called ‘Kleine Beerkanaal’ is being realised at the former dredging depot. The completion of this cut is scheduled for the end of April 2011. Due to the filling in and modified operational usage, the LNG import terminal is a spatial expansion to the port of Rotterdam area. The terminal is now beginning to acquire its intended shape. The three LNG tanks have almost been completed. The gasification installations are also acquiring their intended shape. The drilling of the warm-water pipeline underneath the Yangtzehaven has been realised and the jetties for the LNG carriers virtually completed. Commercial usage of the LNG import terminal is planned for the end of 2011. A plot reservation is in place for a fourth tank and discussions have been started with Gate concerning a potential expansion by means of a fifth tank. In the first months of 2011, we will mutually compare possible locations. Clean-up Welplaatweg In 2010, we started cleaning up the terrain located on the Welpaatweg, the purpose being to let out this terminal, which had previously been used by the chemical company TIC, to AKZO Nobel. In addition, this long term cleaning up is also intended to create the space necessary to safeguard AKZO Nobel´s future production. Calandkanaal In 2010, the so-called offshore pit was completed. This location is suitable for work on, for example, drilling rigs. When the offshore pit is not being used by the offshore industry, board-to-board handling of bulk goods can be facilitated. In the Calandkanaal, we also realised the dolphins 78/79 for the board-to-board handling of bulk goods. This has created handling capacity without using scarce terrain on land. Amazonehaven The new container terminals located on Maasvlakte 2 increase the handling capacity in the container segment. In 2010, an important intensification of the container segment was definitively started in the existing port area. Due to the expansion, the ECT Delta Terminal will become accessible for the largest container vessels.

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CityPorts
The Rotterdam CityPorts form a transition area between the city and the port. Both urban functions and functions supporting the port processes will be established in these former port areas, the aim being to improve the business climate in the port of Rotterdam. The agreements concerning the transition of the CityPorts are related to the agreements concerning the construction of Maasvlakte 2. On 6 April 2010, former prime-minister Jan Peter Balkenende initiated the accelerated development of CityPorts. The CityPorts project was one of the sixty projects carried out at an accelerated pace by virtue of the Crisis and Recovery Act. This Act guaranteed shorter procedures enabling construction work to be started more rapidly. In 2010, the Port of Rotterdam Authority invested in the CityPorts around the former RDM Shipyard. In 2010, the replacement of the electricity and gas network in the shipyard was completed. New businesses located on the RDM Campus can connect to this network. In the Dokhaven and Heijsehaven, we demolished and replaced several quay walls and jetties. The educational centre SAIO was established in a redeveloped former dock office in the Heijsehaven. SAIO is a service and training provider for port businesses in the areas of safety and calamities. This redevelopment has improved the environmental quality and provided space to service businesses in the port. Furthermore, in 2010 we concluded an agreement for the establishment of Heesen yacht construction on the former RDM wharf. With a wink from the past, the establishment of Heesen forms the basis of a new cluster in the port of Rotterdam. Yacht construction will generate an impulse for innovation and technology. This new cluster therefore fits in with the established schools and the so-called Innovation Dock; a start-up area for innovative businesses.

Intensifying due to regional collaboration
In 2010, we reached outline agreement with the municipality of Dordrecht about the management, operations and development of the seaport area Dordrecht. Through this collaboration both parties are seeking synergy and scale advantages. The seaport of Dordrecht will be able to improve its quality while the port of Rotterdam is being offered the possibility of fulfilling part of its need for space in the seaport of Dordrecht area. Certain reservations will have to be given further consideration and dealt with in the first half of 2011, before the collaboration starts on 1 July 2011.

The development of real estate as impulse for the redevelopment of areas
Port City is a real estate development of the Port of Rotterdam Authority. The aim of this real estate development is to attract businesses in the maritime sector to the port of Rotterdam area by offering them a location for their head quarters. A second aim of the development of Port City is to give a quality impulse to the redevelopment of the outdated industrial zone Waalhaven Zuid, located nearby. In total, Port City offer space for four office buildings. In July 2010, Port City buildings 2 and 3 were completed while building 1 was completed in December 2010. The schedule for 2011 is to have the car park and the public deck surrounding building 1 completed in March 2011. We aim to let out the terrain for building 4 in 2011. Just like building 1, this building will not be constructed by us but by third parties.

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report of the port authority
1 2 3 4 5 6 7 8 9 The Port of Rotterdam About the Port of Rotterdam Authority Harbour Master Customer Area and space Traffic and accessibility Environment and sustainability Finance Outlook 2011

Traffic and accessibility

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6.1 Traffic and accessibility in brief
Modal split 2009 *
*figures for 2010 are not available until mid 2011

Road Road Inland shipping Rail shipping Inland transport Rail transport Road Rail transport Road Road Inland shipping Inland transport Rail shipping Rail transport Road Inland shipping Rail transport

47% 47% 39% 14% 39% 14% 47%

Target modal split 2035 Inland shipping 39%
14% 35% 35% 45% 45% 20% 20% 35% 45% 20% 2.500

The port of Rotterdam can handle the very largest ocean vessels. Due to its excellent access to the hinterland and the European market via inland shipping, short sea, rail, road and pipeline, Rotterdam is a major hub in the logistic chain. Increasing throughput leads to an increase in the required transport capacity. That is why we are investing in the expansion of infrastructure and in innovative and sustainable transport concepts, in collaboration with authorities and market parties. Underlying this view is the fact that no single party has all the management or solutions in its hands. Government bodies fulfil an important role in adapting infrastructure or improving usage, while market parties, employers and employees can exercise influence on the extent and timing of transport and traffic flows. Ultimately our final goal is: better and more sustainable accessibility due to the transfer of traffic from roads to the cleaner modalities water, rail and pipelines, referred to as the “modal shift”. The Port of Rotterdam Authority stimulates the use of modalities other than roads by, if possible, facilitating and extending the availability of those modalities. For the development of the “modal split”: please refer to the graphs. The factor posing the greatest risk in ‘Traffic and accessibility’ is the poor accessibility of the port via the A15 motorway. The customer satisfaction survey carried out in 2010 indicated customers were dissatisfied about the accessibility of the port. To improve the accessibility, the Port of Rotterdam Authority is actively working together with partners in De Verkeersonderneming, see also paragraph 6.2 Road. Specifically to maintain the flow of the Beneluxtunnel, we are contributing to the realisation of a New Western Riverbank connection (see also paragraph 6.2 Road). Hereby we are pro-actively participating in an efficient decision-making process and efficient and effective planning procedures. We are taking an active role as one of the interested parties in respect of all the stakeholders and are considering participating in the investment, if this will enhance a timely construction. This chapter describes the milestones for 2010 in respect of a number of the larger accessibility projects for the different transport modalities road, rail, short sea and pipelines. The accessibility by sea is clarified in chapter 3.

Development modal split *
2.500 2.000 *figures for 2010 are not available until mid 2011 2.000 1.500 x 1.000 moves 1.500 1.000 2.500 1.000 500 2.000 500 0 2007 2007 2008 2008 2009 2009 Road Inland shipping 2007 2008 2009 Rail shipping Inland transport Rail transport Road Inland shipping Rail transport 1.500 0 1.000 Road 500 0

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6.2 Road
Introduction
In 2010, we also actively cooperated with relevant authorities and market parties to improve the accessibility of the port by road. The 2010 objectives were: To keep the percentage of container volume transported to and from the Maasvlakte by road (the so-called “modal split”) at or under 47%; To achieve a maximum journey time of 38 minutes (between Vaanplein and Maasvlakte) in 85% of all rush hours on the A15 motorway. At the time of publication of this Annual Report, the results of the 2010 objectives are not yet available. We can, however, explain what our efforts were to achieve those goals. In the next few paragraphs, we explain the developments in 2010 concerning: De Verkeersonderneming, the New Western Riverbank connection and the Container Transferium

• •

De Verkeersonderneming
The only motorway to the port of Rotterdam, the A15, is vulnerable to congestion. The current congestion burden and the increase in road traffic mean measures need to be taken. In addition to these, preparations are underway for the widening of the A15 motorway, a project that will take 5 years. The Verkeersonderneming, set up in June 2008, is a strategic cooperative venture in which the Port of Rotterdam Authority is working closely with the Directorate-General of Public Works and Water Management, the municipality of Rotterdam and the Urban Region on the accessibility of the port via the A15 motorway. De Verkeersonderneming is organising measures to reduce the number of cars during the rush hours by 20% (compared to 2008) and to optimise the available road capacity. In 2010, the results of De Verkeersonderneming´s important projects were: • Congestion scores: The project financially rewards commuters for avoiding travelling via the A15 during rush hours. Currently, the project has contributed to a traffic reduction of 7%. The number of participants amounted to approximately 1,800 by the end of 2010. E-bikes: by the end of 2010 over 300 port employees had chosen to commute to work by means of an e-bike or scooter instead of a car. This was partially due to the stimulation measures of De Verkeersonderneming. Height detection: At the terminal of P&O North Sea Ferries the height of trailers is measured before departure. By doing this, we intend to avoid damage to tunnels and flyovers in the port area resulting in unnecessary congestion.
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Thanks to Hotel at Work and Port Project Services, there are more possibilities to accommodate large groups of temporary employees close to the work site and to transport them collectively. De Verkeersonderneming took the initiative to establish this hotel in the Maasvlakte, the hotel rented out 650 beds in 2010. Port Project Services accommodated 200 employees in Vlaardingen. Collective company transportation transports employees from and to the port. Carpooling: since October 2010 there has been an online carpool-matching site for the port area. People who work in the port area can make seats in their car available or find a seat in someone else’s car. In addition, together with other parties, we ensure that road users can take alternative routes when there is congestion on the A15 or other main roads. We are trying to achieve this by using dynamic route panels that indicate whether the Botlek Bridge is closed and report traffic diversions, as well as using boards indicating alternative routes, links to manage traffic lights from a distance and extra monitoring systems that can be consulted online by all involved parties.

New West Riverbank connection
The competitive position of the port of Rotterdam is increasingly determined by the accessibility of the hinterland. The road accessibility is under huge pressure, and without drastic measures the Rotterdam cross-section (Rotterdams Ruit) will be jammed within 10 years. This was and is the reason for the Port of Rotterdam Authority to actively participate in the timely completion of a river-connection west of the Benelux tunnel.Last year we pro-actively participated in the team of Rotterdam Vooruit (a cooperative body with the Ministry of Infrastructure and Environment, Province of South-Holland and the Urban Region of Rotterdam) to compile the necessary study plan documents. Given the results of the studies, the Port of Rotterdam Authority has announced its preference for the Blankenburg route, because this alternative will contribute the most to the accessibility. A study has been carried out to explore the possibilities of cost-bearing and financing. The Port of Rotterdam Authority has indicated that it wants to participate in the realisation and management of the Blankenburg tunnel. We hope this will help overcome the financial obstacles and facilitate a quick construction of the riverbank connection. In 2011, the decision-making process concerning the preference route will take place. We are supporting this process by actively participating in the realisation of the structural vision or, as the case may be, the preferred decision and by studying the route that best fits into our social responsibility principles.

Container Transferium
To relieve the traffic pressure on the A15, we actively worked on the realisation of a container transfer point in Alblasserdam. Through this transfer point, goods can be shipped by inland vessels and then transported on to the hinterland by truck. Due to extensive consultation with the various stakeholders, in particularly in the Drechtsteden area, the realisation of the Container Transfer Point (the so-called Container Tranferium) has got closer. In November, the municipality of Alblasserdam and the Port of Rotterdam Authority signed an agreement concerning ground exploitation and planning blight. A tripartite agreement was also concluded between the municipality of Alblasserdam, the Port of Rotterdam Authority and the prospective manager BCTN. This agreement concerns sustainability and Sundays being rest days at the terminal (see also paragraph 7.2 Sustainability subsection sustainable letting). The start of quay wall constructions is planned in the first quarter of 2011 after which delivery of the terminal to BCTN is expected in the middle of 2012. Consequently, the Container Transferium should be able to start operations in the second half of 2012.

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6.3 Rail
Introduction
Our target is to transport 20% of the container flows from Maasvlakte 2 by rail by 2035. The objective has been translated into agreements with companies that will operate in Maasvlakte 2. We expect approximately 3 million TEU (containers) to be transported to and from the Maasvlakte by rail in 2035, that is a fourfold of the current rail transport. To accommodate this growth, we have established a rail programme. The rail programme aims to improve the utilisation of the existing rail infrastructure, construct any additional infrastructure required and attract new cargo flows; not only in the port area, but also in the corridors to the hinterland and the hinterland itself. Below we present the rail developments in 2010 per category.

Rail developments in the port area
Until April 2010, new customer specific rail connections were realised by NS Spooraansluitingen and ProRail. To serve customers in the port area better, the Port of Rotterdam Authority has been developing rail connections for customers since April 2010. This will enable us to be act more pro-actively and improve our services to our customers. On the main track of the Port railway, the Calandbrug is the busiest place where rail traffic crosses shipping traffic. The rail traffic faces considerable congestion when the bridge is open. With Water Management, KeyRail and ProRail, we have achieved operational alignment enabling expected bridge openings to be announced to all parties in advance. Due to this operational agreement, KeyRail can organise its train services better with respect to bridge openings. In 2010, we started the study ‘Logistic exploration of the Port railway ‘(Logistieke Verkenning Havenspoorlijn) together with ProRail and our participation KeyRail. This study forms the foundation for logistic improvements in the port of Rotterdam. These improvements will be worked out with the Ministry of Infrastructure and Environment, Keyrail and market parties.

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Rail developments in the corridor
We believe that the Betuweroute is essential for Rotterdam to be a genuine rail port. The 158.5 kilometre long freight rail route from the Maasvlakte to the German border ensures a good rail link to the German hinterland. The Betuweroute is being made increasing use of and KeyRail expects a sizable growth in the years to come. The Ministry of Infrastructure and Environment is the principal for the ‘High frequency rail transport programme’ (Programma Hoogfrequent Spoorvervoer (PHS)). The objective of this programme is to enable high frequency rail transport on highly utilised rail routes in the Randstad. With other stakeholders, the Port of Rotterdam Authority is taking part in one of the region-bounded task forces that are working on the definitive execution of PHS. For us, the most important point of attention within PHS is the connection of the port to three locations in the German network: Oldenzaal, Zevenaar and Venlo. This will provide us with reliable accessibility to the German hinterland. To achieve this, PHS has proposed a railway curve at Meteren, at the Elso crossing, and a railway curve by Deventer. These three infrastructural adjustments are part of the Cabinet decision concerning the programme taken on 4 June 2010.

Rail developments in the hinterland
The Port of Rotterdam Authority aims to achieve a growth in Rotterdam’s market share of the hinterland. In 2010, we intensified our relationship with terminals in the hinterland with the objective of optimising the shared chain from Rotterdam to the hinterland. For this purpose, we started several consultations and projects with among others Venlo, Duisburg and Munich/Bavaria. In Venlo, the Port of Rotterdam Authority took a seat in the Supervisory Board of Greenport Development Company Venlo. The same applies to the administrative advisory body of the logistic execution agenda of NV Region Venlo. In Duisburg, together with Duisburg Agency and KeyRail, we started the project “Supply Chain Cooperation”. This project aims to optimise the logistic process by enhanced chain arrangements and communications. Finally, in Munich the Port of Rotterdam Authority, together with the Dutch Consulate and businesses from Rotterdam, entered into consultations with key figures from Bavarian logistics and politics. This objective of this consultation is to achieve a frequent and reliable rail connection between Bavaria and Rotterdam.

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6.4 Inland shipping
Introduction
Our target is to transport 45% of the container flows from Maasvlakte 2 by inland ship by 2035. It is anticipated that approximately 7 million TEU (containers) will be transported to and from the Maasvlakte by inland ship in 2035, that is a fourfold of the current inland shipping. This development requires strong, sustainable and competitive inland shipping. To achieve our 45% target in 2035, we have formulated an inland shipping programme. Together with the rail programme, this programme must ensure that Rotterdam can offer the market optimal added value. Specifically it concerns activities around the themes: more capacity, optimal utilisation and sustainability and efficient logistic processes.

Inland shipping in the port
The Port of Rotterdam Authority (as port manager) has the task of guaranteeing sufficient capacity for the handling of containers for inland shipping. More and more attention is being paid to a better utilisation of this capacity, because we cannot inexhaustibly continue to expand. Consequently, the Port of Rotterdam Authority intends to try to reduce the length of stay of inland vessels in the port. In the port, the Port of Rotterdam Authority and terminal operators are increasingly working towards more specific inland shipping facilities. In addition to current examples (Hartelhaven, Delta Barge Feeder Terminal), this also applies to the new deep sea terminals on Maasvlakte 2. Besides that, a reservation has been made to realise a joint barge terminal for the handling of smaller numbers of containers on Maasvlakte 2. There is already market interest in this concept. Furthermore, we investigated the required capacity for wait and berth facilities for inland ships in 2010. On the basis of this study, we decided to develop an integral vision for wait and berth facilities. In this vision attention will definitely be paid to the operational distinction between wait and berth facilities and an enhanced utilisation of wait facilities. From the programme Peaks in the Delta for the South Wing (Pieken in de Delta), a subsidy has been granted for the development of a reservation system for wait and berth facilities.

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Inland shipping in the hinterland
In order to create an optimal network for inland shipping, the Port of Rotterdam Authority is focussing on the inland waterway corridors and the hinterland. We can do this by acquiring terrains for inland terminals ourselves and letting these out to commercial terminal operators at competitive prices. In 2010, we agreed with the municipality Alblaserdam and the operator BCTN in respect of the Container Transferium In addition, the Port of Rotterdam Authority acquired terrains in Wanssum close to the German border and in Alphen aan de Rijn, the so-called Alpherium. The Alpherium started operations in October 2010 and already Heineken is transporting a large share of its export beer through this barge terminal to Rotterdam. In January 2011, there was a long term blockage of the Rhine near the Lorelei rock in Germany. The cause was the capsize of an inland ship carrying sulphuric acid. This blockage continued for a month and caused a substantial loss to several Dutch inland shippers. The Port of Rotterdam Authority is aware that incidents involving chemicals may not be underestimated. On the other hand, the Port of Rotterdam Authority understood the call from the Dutch inland shipping sector for quicker action on the part of the German authorities. Our agreements with businesses on Maasvlakte 2 concerning hinterland transport over water require open waterways. Together with German and Dutch organisations, we will investigate whether we can prevent long term blockages in the near future.

Efficient logistic process
Given the significant increase in the container volume of inland ships and the number of seaport terminals, the Port of Rotterdam Authority wants to improve the handling of inland container shipping. Opportunities for direct control by the public and management branch of the Port of Rotterdam Authority are limited. However, in 2011 we and the (chain)parties concerned plan to determine how we can stimulate improvements in inland container shipping. Together with the market, the Port of Rotterdam Authority is increasingly frequently participating in pilot projects for modal shifts and the acquisition of freight flows. A successful example in 2010 was the joint pilot project with Philips Lighting and Mearsk. Since 2010, all 600 export containers from the distribution centre in Roosendaal have been transported to Rotterdam via Moerdijk by inland ships; thus contributing to the reduction of congestion on the A15.

Sustainable inland shipping
In order to preserve the modality inland shipping, we executed several projects and took measures in 2010. See paragraph 7.2 (Sustainability, under sustainable transport) which clarifies shore-based power, the new regulation governing clean inland shipping and speed limitations.

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6.5 Pipelines
Introduction
The Port of Rotterdam Authority wants to develop the port of Rotterdam into Europe’s number one energy port. Due to the excellent wire and cable infrastructure, Rotterdam has an attractive business climate. We want to maintain and strengthen that position. Together with the market, we want to realise an efficient and effective pipeline network. With approximately 1,500 km oil and chemical pipelines, 830 km utility pipelines, 2,500 km high voltage cables and many kilometres of data wires, the underground infrastructure is an important transport modality. Transport by pipeline is environmental friendly, safe and congestion free. The underground cable and pipeline network forms the mutual link between the businesses in the port area, and to businesses in the Netherlands, Belgium and Germany. Pipelines account for 37% of cross-border transport from the port of Rotterdam (51 million tonnes, source: CBS).

Strategy and action plan
In 2010 we drew up the “Strategy and action plan Pipelines 2010-2015” (Strategie en Actieplanpijpleidingen 2010-2015). The main point is the joint development of open-access pipelines with market parties. Another spearhead is the assurance of the accessibility of underground infrastructure. Sufficient space is required in the pipeline routes for new cables and pipelines. The pipeline routes are clamped between other infrastructure. Therefore, we can only solve bottlenecks by intensifying the utilisation of the existing space.

Projects
In 2010, we started the construction of an 800 meter long pipeline crossover between the Aveling and Digna Johannaweg. In 2011, the first phase of this infrastructural facility should be completed. Because of the importance and the advantages of pipelines as transport modality, the Port of Rotterdam Authority has participated in the following pipeline-projects:

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RC2 and MultiCore

RC2 and Multicore are entities that operate pipelines in the port of Rotterdam area (see also paragraph 2.7 Participations). De RC2 pipeline is a single common carrier pipeline for the transport of ethylene. Common carrier means that the pipeline can be used by multiple users at the same time. Multicore has an underground pipeline route of 4 x 20 km between Europoort, Botlek and Pernis which can be used by businesses. In 2010, Multicore concluded an agreement with a 7th customer, Shell Chemicals Europe. Consequently, 80% of the pipeline capacity is now rented. In 2010, the Port of Rotterdam Authority contacted several businesses in the port to assess the interest in pipeline transport. The assessment demonstrated that a new MultiCore pipeline through the port was viable. We hope to develop this in 2011; our intention is to use one of the pipelines to transport CO2.
Steam pipe Together with market parties, the Port of Rotterdam Authority worked on a business case for the Steam pipe Botlek. By means of transport pipelines for steam, businesses can mutually exchange steam and therefore make substantial savings in their energy usage; which will contribute to the CO2 reduction proposals of the Rotterdam Climate Initiative. In 2010, Stedin and Visser & Smit Hanab reached agreement with DSM and AVR, their first customers, on the transportation of steam. Based on this agreement the Steam pipe will be constructed in 2011. The project is supported by a subsidy from “Pieken in de Delta” the municipality of Rotterdam, the province and the state. The Port of Rotterdam Authority is supporting further project developments, aimed at the extension of steam pipelines.

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report of the port authority
1 2 3 4 5 6 7 8 9 The Port of Rotterdam About the Port of Rotterdam Authority Harbour Master Customer Area and space Traffic and accessibility Environment and sustainability Finance Outlook 2011

Environment and sustainability

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7.1 Environment and sustainability in brief
For the Port of Rotterdam Authority, sustainability not only means improving our own individual performance but also encouraging sustainable enterprises in the port and industrial complex. The improvements we can achieve are related to those three criteria and are dependent on the influence we can exert:
port authority business operations influence: high activities port and industrial complex influence: fair influence: limited chain

effect: limited

effect: fair

effect: high

No-one travelling through the port will immediately think about sustainability. Among other things, the petrochemical industry, coal power plants and the extensive traffic flows evoke another image. However, today’s society cannot live without products, wants to be assured of the supply of electricity and gas, and also wants to work. Within this field of tension, we are convinced that we should continuously dedicate ourselves to a strong port and an environment where the quality of life is good. We do this by, for example, being a partner in the Rotterdam Climate Initiative and by contributing to innovation, knowledge development and jobs. Naturally, we also concentrate on enhancing the performance of our own organisation.

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7.2 Sustainability
Introduction
Sustainability encompasses three elements: people, planet and profit. The focus of our social activities (people) is predominantly the relationship between the port and the city, our direct and indirect contribution to employment and our contribution to knowledge and education. In this context, we dedicate special attention to ensuring that, in the port, there is a sufficient number of qualified personnel available to realise our growth ambitions. And naturally we pay specific attention to our own staff. See also paragraph 2.6 (Employees). The profit side of sustainability relates to our focus on the return on investment, chain-efficiency and the establishment of businesses in the right location.For the impact the element planet has on sustainability, we have, in the same way as last year, made use of the sustainability index (see left column of figure 1). During 2010, we focused on ‘sustainable operations’, ‘sustainable use of space’ and ‘sustainable transport’. The reasons for this were a better fit with our core activities and increased transparency of our own performance. Efficient use of space and efficient transport will be discussed in the chapters “Area and space” (chapter 5) and “Traffic and accessibility” (chapter 6).

Figure 1 Correlation of themes within sustainability
Sustainable business PoR CO2-footprint Sustainable purchasing & tendering

SUSTAINABILITY
Sustainable use of area Sustainable allocation Sustainable use of Existing area (complex) Sustainable transport Cleaner modalities Modal shift towards cleaner modalities

Sustainable property Sustainable allocation ESS/BES ROCE Sustainability index

Efficient use of area More area for allocation Better use of area

Efficiency transport Better use of infrastructure Better use of modalities

Part of ‘Area and space’ and ‘Traffic and accessibility

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Sustainable operations
CO2 footprint Port of Rotterdam Authority The yearly reporting with respect to the CO2 footprint of the Port of Rotterdam Authority provides the CO2 emissions of our own activities. The footprint is based on the ISO 14064 standards from the Greenhouse Gas (GHG) protocol. The Port of Rotterdam Authority has applied this method and, on this basis, made a choice of the most relevant CO2 producing activities. In 2008, we expressed the ambition for our own business operations to be CO2 neutral with effect from 1 January 2012 with, as an additional target, a 35%reduction in our own CO2 footprint in comparison to the base year 2007. The report of the 2009 operations is the third report in the series and became available in 2010. The report on the 2010 operations will become available during 2011. The data gathering for the report concerning 2009 and the reliability of the figures has improved. The CO2 footprint for the year 2009 totals 28 kTon CO2 i.e. a reduction of 15% compared to 2007 (see table 1). This reduction is substantial and is mainly due to the fact that no deep quay walls were constructed in 2008 and 2009 (scope 3).
Table 1: CO2-footprint Port of Rotterdam Table 1: CO2 footprint over 2009 compared to preceding years (in kTon CO2) 2009 Scope 1: direct emissions Scope 2: indirect emissions Scope 3: other indirect emissions TOTAAL
1
1

2008

2007

8.0 4.0 15.9

9.0 4.2 15.9

9.0 3.9 20,1

27.9

29.1

33.0

In this respect, the construction of Maasvlakte 2 has been excluded for comparison purposes with 2008 and 2007. Below it will be reported separately.



Scope 1 (direct emissions): the reduction of direct emissions compared to 2007 is mainly due to both the reduction in fuel consumption of our vessels (0.8 kTon), as a result of the Dynamic Savings Programme (Voortvarend Besparen) started in 2008, and the procurement of green gas for the offices of the Port of Rotterdam Authority (-0.3 kTon) since 2009. In contrast to the savings of 1.1 kTon CO2, there was an increase in CO2 emissions of 0.1 kTon CO2. This was the result of an increase in the total number of lease cars, by about 20 cars, and insufficient visibility in the emission figures in respect of the effects of measures such as the usage of alternative fuels. Scope 2 (indirect emissions): These emissions are limited due to the Port of Rotterdam Authority having made use of green energy for the office buildings it controls itself since 2007. The scope 2 emissions have increased by 0.1 kTon CO2 since 2007 due to more energy being consumed in the offices. The energy demand is strongly dependent on external factors (cold winters) and the acquisition, selling and construction of real estate. Scope 3 (other indirect emissions): the reduction of the total emissions for the Port of Rotterdam Authority is mainly attributable to a reduction is the scope 3 emissions. The reduction is 4.3 kTon compared to 2007. The main reason for the reduction is the decrease in diesel consumption for the construction of deep quay walls (-4.2 kTon), because there were no deep quay wall constructions in 2008 and 2009. In contrast to the decrease, there was an increase of 1.4 kTon CO2 because of the increase of combi wall constructions. In 2009 more walls were constructed than in 2007 and 2008. Another reason for the reduction of scope 3 emissions was the substantial decrease of diesel consumption for dredging (-1.6 kTon) as a consequence of more efficient dredging.





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The activities related to the completion of quay walls, roads and Maasvlakte 2 and the maintenance dredging (scope 3) will no longer form part of the CO2 footprint report (2010) concerning our reduction and climate-neutral objectives. This is due to the limited influence we have on those activities, the fluctuations per year (depended on the market demand) and natural factors, such as drainage, which determines whether we should dredge more or dredge less per year. Our CO2 reductions in respect of these activities will be reported in the category “ Sustainable procurement and tendering”. The objective of operating on a CO2 neutral basis in 2012 has been changed due to the limitations of scope 3.The objective has now been reduced to compensation of the scope 1 and scope 2 emissions and restricted scope 3 emissions. In the new Business Plan, the reduction objective of 35% in 2012 compared to 2007 has been replaced by a reduction objective of 10% in 2015 compared to 2010. The construction of Maasvlakte 2 is not considered in the CO2 footprint, because it is a separate project in which the volume is not proportional to the general operations of the Port of Rotterdam Authority. The emissions of projects such as the construction of Maasvlakte 2 are therefore not considered in the CO2 neutrality targets for the end of 2011. In 2009, the construction of Maasvlakte 2 started; for the land reclamation in 2009 approximately 79 million m3 of sand was reclaimed and used. The total CO2 emissions were circa 230 kTon CO2 eq.
Sustainable procurement and tendering

For the procurement of goods, works and services, we focus on the sustainability criteria we deem most important: sustainable operations, sustainable usage of space and sustainable transport. In 2009, we translated these focus areas into selection and allotment criteria which we also used in two pilot projects. We formulated emission requirements for vehicles and tools, and market parties were asked to reduce the number of transport movements to and from projects. This made it apparent that by making agreements with suppliers concerning transport over water, carpooling and such like, a reduction of transport movements can be achieved. The experiences of these pilot projects were so promising we will continue them. In 2010, 44% of the tenders (with a procurement volume > € 150,000) included sustainability aspects. Examples include: The re-use of materials in the maintenance of pitching-stone and rubble and brake works; The purchase of electric pumps to replace diesel pumps required to pump water containing slit; The requirements placed on materials and gritting equipment to prevent slipperiness. We intend to use the experiences of the pilot projects and tender procedures to give further substance to the sustainable procurement and tendering policy.

• • •

Sustainable use of space
Sustainable letting

The target for 2010 was to include a sustainability clause in all new land allocations. In 2010, 30 projects were started which focused on the redevelopment and allocation of sites that were being considered for sustainability criteria. Of these 30 projects, explicit attention was paid to sustainability in the decision-making process in 28 projects as a result of which we achieved a score of 93%. To include the final 7%, we will, together with the customers, give greater substance to sustainability in combination with the environmental permit process. The 2010 process-related target

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to include a sustainability clause in all new land allocations was converted into a content-relevant policy during the year. This policy aims to accommodate customers that are leaders in sustainability. As mentioned earlier in paragraph 6.2 (Road), we signed an agreement with the municipality Alblasserdam and the terminal operator BCTN (Binnenlandse Container Terminal Nederland B.V) with respect to the operations of the Container Transferium in Alblasserdam in December 2010. This contract included measures that BCTN will take to transform the Container Transferium into a silent and very sustainable terminal operator. This specifically relates to the following measures: The lay-out of the terminal will be extremely ecologically sound and will go beyond the regulative standards; among other things electric cranes, clean fuel, shorebased power facilities for inland ships and sustainable lighting will be used and extra measures taken to for protect against sound and light; The landside of the terminal will be closed to trucks on Sunday; The number of trucks to and from the Container Transferium will be restricted to a maximum of 180,000 traffic movements per year.



• •

In addition to the sustainable lay out of the transfer point,, the municipality of Alblasserdam also made agreements with the Minister of Infrastructure and Environment in respect of modification to cross-roads, safe crossing places for cyclists, modifications to the junction A15/N3 near Papendrecht and a survey into the build-up of traffic on the A15. These measures fit in with the ambition of the Port of Rotterdam Authority to be the most sustainable port of its kind in the world.
Sustainable real estate Our organisation develops real estate to accomplish area developments. Our method is to acquire properties at relevant locations and to redevelop these, especially in the RDM area and the Waalhaven. In 2010, we completed several projects in the RDM area, the transition area between city and port. In this area urban functions and functions that support port processes converge. In 2010, a lot of attention was paid to the possibility of sustainable energy supplies. In accordance with the scheme Stimulating Sustainable Energy (Stimulering Duurzame Energie SDE), we applied, under the category sun roofs, for a power capacity of 2,000 kW; unfortunately the subsidy was not granted to us. In addition, on the RDM terrain we started a feasibility study for a sustainable energy concept. This study related to a large number of premises on the RDM Campus, among others the Machinehal (20,000m²).

In July 2008, our organisation co-signed the covenant Sustainable Building for Rotterdam. In so doing, we promised to make every effort to ensure that the CO2 emissions generated by our building activities were 25% lower than those permitted under the existing Building Decree 2006. In 2010, together with the Rotterdam Climate Initiative, we analysed how we can give greater substance to our efforts. It would now appear we are going to do this by means of the method BREEM-NL, the Dutch version of an international assessment method for the determination of the sustainability performance of buildings. The possibility of specific application of this method to real estate projects will be further investigated in 2011

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Area specific approach soil pollution and groundwater policy

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Due to the long term presence of industrial activities, there are areas of soil pollution in the port of Rotterdam and the industrial complex. The soil pollution can be located at various depths. With flowing groundwater, pollution can be spread to areas that are currently clean. Since 1992, we have adopted a policy of improving and maintaining the soil quality of industrial zones in order to make these zones suitable for industrial activities. We execute this policy by means of clauses in our ground lease contracts. Businesses must hand the terrains back in their original condition at the end of the contract period. The Port of Rotterdam Authority introduced a combined strategy a few years ago. This strategy combines the approach to pollution in topsoil and subsoil: In accordance with legislation, pollution in the topsoil (globally the upper 4 a 5 meters) should be removed case-specifically by each business individually. The groundwater pollution in the subsoil (the layers underneath the topsoil) may be tackled on an area basis (across plots). This area-directed approach should prevent deeper pollution and the spread of pollution outside the borders of the port area. The area-directed approach allows more time for the natural demolition process in the soil to break down the pollution (enlarge ‘reactor barrel’)., This will cause the total number of ‘hot spots’ to decrease and consequently reduce the financial risks for the Port of Rotterdam Authority, the business and the municipality. In 2009, we reassessed our 1992 soil policy due to the introduction of the European Groundwater regulation which placed requirements on the spread of polluted groundwater. The legislator observed that, entirely apart from the cost and feasibility, the complete cleaning of all pollution was not immediately necessary in all specific cases. The legislator therefore introduced area-directed groundwater management as an alternative. In 2010, we gave greater substance to groundwater management. In cooperation with us, and other authorities, the municipality of Rotterdam formulated an Administrative arrangements (Bestuurlijk Arrangement). This laid down the vision for area-directed groundwater management in the city and port. In respect of the port, this was translated into a policy for area-directed ground water management in 2010. After the policy has been adopted, we are going to monitor and control the groundwater pollution on an area basis starting in the Botlek and Vondelingenplaat area. Deltares and Royal Haskoning carried out three surveys which resulted in a monitoring implementation programme. To support this approach the Ministry of Infrastructure and Environment has granted EUR 5 million to have this approach implemented in the Botlek area.

Sustainable transport
The Port of Rotterdam Authority’s sustainable transport ambitions are expressed via the shift of transport to cleaner modalities (modal shift) on the one hand and by making the separate modalities sustainable on the other hand. The modal shift objective for 2035 is to ensure that no more than 35% of containers are transported to and from the Maasvlakte via roads. This will be accomplished by considerable utilisation of the modalities rail (see paragraph 6.3, Rail) and inland shipping (paragraph 6.4 Inland shipping). In order to enhance the sustainability of the individual modalities the following projects have been carried out and measures taken:

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Environmental Ship Index (ESI)

An ESI is a certificate that, at a ship’s request, is issued by the World Ports Climate Initiative (see www.environmentalshipindex.org); ESIs were first issued on 1 January 2011 and were an initiative of the ports of Le Havre, Bremen, Hamburg, Antwerp, Amsterdam and Rotterdam. The index indicates the environmental performance of ships with respect to their emission of air pollution (NOx and SOx) and CO2. Ports and other nautical service providers around the world can use the index to reward ships and thus stimulate sustainable behaviour in shipping. Ship owners and operators can sign up to the ESI website. The website was officially launched during a press conference in London on 2 November. In 2010, we decided that the cleanest ships that visit Rotterdam will be eligible for an average reduction of 5% of their harbour dues as of January 2011.
Speed limitations The Harbour Master has announced a speed limitation for inland ships on three waterway routes: the Nieuwe Maas near Noordereiland, the Oude Maas between Beerenplaat and the Botlek bridge, and the Hartelkanaal between the fork of the Oude Maas and the Harmsen bridge. This measure is related to the zoning plan Maasvlakte 2. This measure is necessary to limit the emissions at several bottlenecks as a consequence of Maasvlakte 2. The inland shipping sector did not agree with this measure and has appealed against it. The appeal procedure will continue in 2011. Shore-based power The Port of Rotterdam Authority invests in shore-based power facilities in order to improve the air quality in the port. Inland ships that moor at a berth with a shorebased power facility are not allowed to use their generators to generate electricity. Instead they have to use the electricity point on the shore. Our aim is to reduce the local emission of NOx and airborne solid particles and to limit the noise pollution in the surrounding area.

In April 2010, following the pilot project on shore-based power (Walstroom Maashaven) we also placed shore-based power on Noordereiland in Rotterdam, where we realised a total of 55 connections. In 2010, close to the urban area of Rotterdam, 90 connections were made available for inland ships in, among others, the Heijsehaven, Waalhaven, Feijenoordkade and Maasboulevard. Currently, 300 of the 800 inland shipping berths are equipped with shore-based power. Our objective is to have 600 connections available in the port area in 2012. The roll-out of shore-based power for inland shipping was accomplished in close consultation with the sector. In May 2010, the Port of Rotterdam Authority decided to reward a 7 cent discount (per kWh) on shore-based power for one year long. Despite this, the purchase of shore-based power is still lagging behind expectations. There are several reasons for this: technical and operational problems, delays in the placements at new locations and shippers perceiving it too expensive. Because of the mandatory use of shore-based power in Rotterdam a lot of inland shippers avoid Rotterdam in favour of other ports. A project team is currently in consultation with the inland shipping sector to solve these problems.

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Stena Line in Hoek van Holland will be the first Dutch seaport terminal to use shore-based power. In so doing, the ocean vessels of this shipping line will get their electricity from the shore. This investment will considerably improve the air quality in the direct surrounding of the terminal in Hoek van Holland. Stena Line is adapting the ocean vessels at its own cost. The on-shore installation has been facilitated by a contribution from the Port of Rotterdam Authority and co-financing from the Ministry of Infrastructure and Environment and the Urban Region Rotterdam in collaboration with the municipality of Rotterdam. The Stena Line ships are expected to start using shore-based power in the course of 2011
New regulations clean inland shipping In 2010, the Port of Rotterdam Authority decided to start a temporary fund stimulating clean inland shipping and sustainable logistics in Rotterdam (Schone binnenvaart en duurzame logistiek in Rotterdam). The fund provides financial contributions to the inland shipping sector to reduce fuel consumption and emissions in the Rotterdam region. On behalf of the Port of Rotterdam Authority, the Expertise and Innovation Centre for Inland shipping (Expertise en Innovatie Centrum Binnenvaart EICB) will administer the fund. Applications to the fund can be submitted by companies, public organisations or combinations of those. Ultimately, the applications submitted will be considered on the basis of the expected environmental return per invested euro.

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7.3 Rotterdam Climate Initiative
Introduction
In 2007, the climate programme ‘Rotterdam Climate Initiative’ (RCI) was founded. In this climate programme, four parties work together: the municipality of Rotterdam, the Port of Rotterdam Authority, DCMR Environmental Protection Agency Rijnmond and the employers’ organisation Deltalinqs. The RCI’s ambitious target is to halve CO2 emissions in 2025 compared to 1990, anticipate climate change and strength Rotterdam’s economy. RCI forms part of the C40 Climate Leadership Group, a group of world cities that are taking the lead in tackling climate change. Rotterdam was invited to join because of its extensive port and industrial complex. The C40 Group works closely with the Clinton Climate Initiative.

Projects
Within the programme of RCI, the Port of Rotterdam Authority focuses on energy and sustainable mobility. The focus on energy concerns energy efficiency (less CO2 emissions), sustainable energy (replacement CO2-emissions) and capture and storage (preventing CO2 emissions ending up in the atmosphere). Concrete RCI projects that we are executing in collaboration with others are: The stimulation of the trade of sustainable biomass by the realisation of an exchange for biomass; The facilitation of the production and utilisation of bio fuels; The doubling of the wind power capacity in the port area in the period 2010-2020 (by virtue of a wind energy covenant [Convenant Windenergie] ); The development of the port as a research station for energy projects (such as ‘Plant One’ and the RDM Campus); The Rotterdam Storage and Capture Demonstration project (Rotterdam Opslag en Afvang Demonstratieproject), referred to as ROAD, for the capture and storage of CO2 at sea; The facilitation of the steam pipe projects for the benefit of heat usage and CO2 transport (“Steam pipe”).

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Besides the efforts of ROAD, there are several other initiatives related to Carbon Capture & Storage (CCS). OCAP a joint venture of Linde Gas and Volker Wessels, , will connect the bio-ethanol factory of Abengoa to its CO2 network to greenhouse horticulture. Furthermore, there are market parties prepared to realise a CO2 shipping terminal, so liquefied carbon dioxide can be transported to empty off-shore reservoirs by ship. The Port of Rotterdam Authority is carrying out a location study in this context, whereby safety and synergy are important considerations.

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7.4 Dialogue
Introduction
We are conscious of the fact that it is important for our ‘license to operate’ and ‘license to grow’ to have a sustainable dialogue with our environment. Public support for port activities cannot be taken for granted and we must adopt a proactive approach towards our surroundings. During the development studies of Maasvlakte 2, we noticed that the pro-active involvement of stakeholders was very important to obtain support. We involved the stakeholders in an early phase of the project and systematically worked on an on-going and sustainable dialogue. Hereby, we carefully mapped out important issues related to the project and collectively searched for solutions. The method used for this project generated collective added value.

Dialogue with stakeholders
For many years, having a dialogue with stakeholders has been part of our day-today operations.During this dialogue several social, economic and environmental subjects are discussed. The Port of Rotterdam Authority wants to understand the view points of stakeholders, but also explain its own. We cannot satisfy everyone, but we believe that transparency, honesty and respect for different views are the starting points for maintaining good relationships. Our stakeholders are people and organisations who influence our activities and who are influenced by our activities. The Port of Rotterdam Authority has distinguished the following stakeholder groups: customers, employees, government authorities (State, province and municipalities), residents, sector associations and social interest groups. Government authorities have a double role due to their shareholder interest and their role as legislator. We enter into dialogue with our stakeholders in several ways. Through face-to-face consultations, during projects, in partnerships, participations and cooperative ventures and during lectures, forums and conferences, we come into contact with several stakeholders. Finally, we held four discussion sessions with businesses in the port during 2010; the aim being to remain updated on the ongoing businesses of our customers. The so-called Dialogue with an Eye on the Port (Dial)oog op de Haven) sessions form a platform through which our Executive Board can present the latest developments in the port and enter into dialogue with the businesses in the port.

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In 2010, within the Port of Rotterdam Authority, we introduced a structured technique to design a sustainable dialogue with relevant stakeholders. It has been demonstrated that added value is created by giving an insight and overview of our stakeholders, decision points and interests and by taking concrete steps in our surroundings. Among other things, implementing the technique involves the establishment of structural dialogues with our stakeholder groups. Besides good monitoring and ensuring agreements with stakeholders are complied with, we trained our staff to conduct dialogues; a skill which project leaders can apply in on-going projects. In 2010 this skill was applied in several projects. In various sections of the Report, there are specific examples of dialogues conducted in 2010. See for example paragraph 5.2 (Maasvlakte 2), 5.3 (Existing port area), 6.2 (Road), 6.3 (Rail) and 6.4 (Inland shipping). In 2011, we intend to maintain this way of working; dialogue with our environment is part of our working method.

Dialogue with Europe
Ports are heavily influenced by legislation and European Union regulations, such as maritime and port-related policy, as well as policies relating to energy, climate, the environment and safety. On the other hand, ports are important to the European market. Consequently, we not only focus on what Europe means to the port, but also on what the port means to Europe. In 2009, we put this on the European agenda for 2009-2014 ‘Samen Werken aan Europa’ (Working Together on Europe). This agenda also determined our European strategy in 2010. In particular, the continuous work devoted to Trans-European Networks for transport (TEN-T) was a point of attention. Besides that, the execution of the ‘Communication on Ports Policy’, which was presented in 2007, played an important role. This mainly concerns giving substantiation to essential transparency during the allocation of port terrains to market parties. In addition, it relates to giving substance to the guidelines for state support and the Natura 2000 policy. Furthermore, an important priority was and still is our aim to become the ‘Energy Port’ of Europe and to be referred to as such in European policy. Our 2010 focus points remain high on the agenda in 2011. Just as we did in 2010, we are going to address the international role of the port and the importance of the European hinterland network. We intend to pay special attention to the strengthening of our role during the development of relevant hinterland corridors.. A central theme is the hub function of the port of Rotterdam and other ports in relation to a network of large non-stop freight corridors. The European Commission will elaborate this concept during the revision of the Trans-European Network for Transport (TEN-T). In 2011, the revision of TEN-T will be subject to political decision-making in the European Parliament and the European Council. Based on the decision-making process large European infra projects will be prioritised. In 2011, we will similarly devote time and effort to developing the position and role of Rotterdam in the EU energy policy. This specifically concerns paying attention to the Energy Strategy for Europe 2011-2020 and its implementation. It also concerns the Energy Infrastructure Package through which we aim to centralise the hub function of Rotterdam for the European energy supply. Hereby, the revision of the TransEuropean Network for Energy (TEN-T) will be important. In addition to the existing CO2 reduction, the point of departure of the EU’s approach is expected to be the increasing importance of the strategic energy supply.

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In a number of cases, we work with the European Sea Ports Organisation (ESPO). In respect of the allocation of port terrains, we are working on a programme for the self-regulation of concessionary agreements (‘Guide of Good Practice for Concessions’). There will also be a review of the sustainability manifesto (‘Environmental Code of Practice’). Furthermore, we are working with ESPO on the design of a chain network for TEN-T and EU decision-making and regulations in the area of state support, the environment and safety in EU ports. In November 2010, Victor Schoenmakers, the Port of Rotterdam Authority’s Director of European & International Affairs, was re-elected chairman of ESPO. The chairmanship of the ESPO will remain in Rotterdam until November 2012.

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7.5 Innovation
Introduction
Issues concerning space, sustainability and accessibility are wide-ranging. Often conventional solutions are not sufficient. Through research and innovation we aim to contribute to genuine renewal. In this context, the Port of Rotterdam Authority is working with universities, companies and other parties to ensure the port will be able to deal with future challenges intelligently. In order to stimulate innovation, the Port of Rotterdam Authority determined four innovation themes, namely sustainable accessibility, space, infrastructure and navigation. For every innovation theme the accompanying innovation team – several internal specialists under the supervision of a line manager- indentifies the most relevant developments for the next ten to twenty years and the challenges the Port of Rotterdam Authority will face due to these developments. For the most important challenges, the innovation teams determine whether innovation is necessary and if so, how this should be accomplished, for example through the initiation of surveys, studies, exploration or pilot projects. Once or twice a year, every innovation team presents their findings at board room level. In 2010, three of the four innovation teams determined their challenges either definitively or in draft form. Shared alignment between the four teams will probably take place in 2011.

Activities
• Concrete innovation activities which took place last year include: Bluetooth measurement network: In 2010, the ‘Bluetooth measurement network’ was rolled out in the port area and several bordering locations. Through this measurement network, we can keep a close eye on the traffic flow on the roads of the Port of Rotterdam Authority and the A15 motorway. We can also enlarge our knowledge concerning the route choices of freight transport to and from the hinterland. The Port of Rotterdam Authority won an award for this project (out of 78 contributions) during the National Traffic Management congress. Sticky eco-structures: in 2010 we tentatively placed sticky eco-structures (hulas) in the Scheurhaven and Pistoolhaven. These aim to coarsen smooth slopes and jetties creating an attractive environment in which mussels and other water organisms can settle. The next step is to investigate whether the test has affected the water quality, surge and underwater environment.



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‘Plant One’: In May 2010, an industrial test and demonstration facility for innovative, sustainable process technology (Plant One) became operational. Here new technologies utilising less energy and raw materials and the application of cleaner raw materials should be able to prove their usefulness quickly and efficiently. Plant One will contribute to the objectives of the Rotterdam Climate Initiative to half the CO2 emissions in 2025 compared to 1990. Starting the operation was made possible by subsidies from the State, province of South-Holland, municipality of Rotterdam, the Port of Rotterdam Authority and the Rotterdam Climate Initiative.

Collaboration
In addition, in 2010 the following collaborations were entered into with universities, research institutes and businesses: • Port Research Center (TU Delft): Within the RPC collaboration with the Delft University of Technology further depth has been achieved in the field of scientific port-related research. At the time of writing this report, four PhD students were being supported, two port professors had been appointed and the selection of a third port professor had been completed. Next Generation Infrastructures (NGI): in 2010 the project organisation Maasvlakte 2 concluded a collaborative agreement with the research programme NGI. The objective for the next four years is the application of the knowledge developed, within NGI projects during the last four years. On and around Maasvlakte 2, new concepts can be demonstrated and tested. Erasmus Smart Port: a collaboration was formalised with the Erasmus University Rotterdam (EUR) in December 2010. The Governing Body of the EUR committed itself through the appointment of five part time professors in Port Economics. The Port of Rotterdam Authority, municipality of Rotterdam and Detalinqs have promised financial support for four years. The first multi-discipline projects have been carried out successfully, one of which was about the importance of the port of Rotterdam for the Netherlands (Het belang van de haven van Rotterdam voor de BV Nederland’). TNO: With TNO a board level decision was taken to utilise their mutual knowledge and possibilities. The aim is to apply TNO’s knowledge in the port and open up the port as an experimental site. As a consequence, the employees of the Port of Rotterdam Authority and TNO will deal with a number of challenges. The collaboration involves two intensive workshops: one with respect to the transitions of the chemical cluster and the other on the intensification of space. Furthermore two ‘field labs’ were started up on ‘Security’ and the ‘Intensification of space utilisation’. General Electric (GE): We signed a collaborative agreement with General Electric which resulted in three projects: Smart Grid Maasvlakte, shore-based power and an investigation into CO2-caputure and storage combined with coal gassing. Also, together with GE, we have had explorative discussions on intelligent street lighting with both Philips and IBM. Dinalog: the Top Logistics Institute (Dutch Institute for Advanced Logistics) started in Breda in 2010. Dinalog is to become the institute for innovation where the top of the international business and scientific worlds can share their knowledge and jointly effect innovative methods and processes. Dinalog resulted from the innovation programme of the Van Laarhoven Commission. The Port of Rotterdam Authority is actively involved in two Dinalog projects, the objectives of which are to strengthen the role of managing junctions. Through the port professors at Erasmus SmartPort, Port Research Center Delft and Eindhoven University of Technology, we are also involved in the further development of Dinalog.
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7.6 Labour market and education
Introduction
As the Port of Rotterdam Authority, we have an interest in the availability of sufficient qualified personnel for ourselves and our customers, now and in the future. The direct employment within the port and industrial complex amounted to approximately 90,000 persons in 2008. Roughly half are employees that work directly in the area managed by us. The other half are employees in the logistics sector who fall into the category directly port-related employees In addition, the port of Rotterdam generates about 55,000 indirect jobs (suppliers, service providers) outside the area managed by us (source: havenmonitor, 2008).

Labour market exploration
After the crisis in 2009, companies were reticent to hire permanent employees in 2010, despite the recovery of the economy. In the first instance, growth was taken care of by employing flexible workers through temporary employment agencies. Through the Labour Market Exploration Mainport Rotterdam, a yearly employment survey is carried out to assess the need for personnel by port businesses and to examine how this matches the availability of students entering the labour market on completion of their studies. Approximately 2,000 people are required each year. In the long term, we expect a large scarcity in the port labour market. This is partially due to growing requests for replacements (pensions and natural staff turnover) and the expansion needed (Maasvlakte 2). However, it is also because few of today’s youngsters are opting to follow educational courses in the fields of technology, logistics or maritime, and because we are competing with other economic sectors for talent while there is a general lack of knowledge about jobs in the port.

Tasks and activities
Because we have an interest in a good fit between education and the labour market in the port of Rotterdam, we focus on the following four tasks: Annual monitoring of the labour market, allowing us to signal trends and threats; Contributing to projects (manpower/ Euros), participating in governance (influence/ advice)

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Investing in the port as an attractive and accessible work environment; Lobbying for good regional conditions (house building, public transport, recreation facilities). Last year we translated these tasks into the following activities: The development of a new port teaching programme for 8,000 students studying at senior secondary vocational education (VMBO) level, a programme which is being developed in collaboration with the Educative Information Centre and the Foundation for LMC Secondary Education Lectureship Ideal Port and a broadening of the participating educational institutions, within and outside the region; Designing a new work programme Knowledge Infrastructure Mainport Rotterdam (KMR), the objective being to improve the fit between the port businesses and education, increase the number of students entering port education and have the alignment and coordination of the port labour market carried out by KMR. Acting as principal in a study of the aging of the employment force and the consequences for the port area. What is the age composition of the employment force in the port sector and how high is the outflow due to retirement age being attained? What consequences does this have for the HRM policy in the port? Monitoring the labour conditions, including new collective labour agreements and labour unrest, but also advising in social projects such as Revit, in which young people with no starting qualifications are helped to find a job in the port. Analysing the labour market in the port for Port Vision 2030, both the translation of projected goods into employment figures and the trends and developments that influence the port’s future labour market. In 2010, 9 new recruits with either bachelor or master degrees (HBO / WO) started at the Port of Rotterdam Authority as a result of the so-called Agreement of Rotterdam (Akkoord van Rotterdam), which was adopted in 2009. Among other things this agreement, concluded with the municipality of Rotterdam and the Rotterdam business community, lays down that 10-15 new recruits will be offered a temporary position within three years. The objective of the “Akkoord van Rotterdam” is to limit the negative consequences of the economic recession and to improve the opportunities after the crisis has ended.



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report of the port authority
1 2 3 4 5 6 7 8 9 The Port of Rotterdam About the Port of Rotterdam Authority Harbour Master Customer Area and space Traffic and accessibility Environment and sustainability Finance Outlook 2011

Finance

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8.1 Result
• • • •
Result development
Amounts x € 1 million

The result for 2010 was € 154.2 million. Compared to the result of 2009 (excluding exceptional items), this represents an increase of € 10.0 million (+ 7%). The main developments include: An increase in operating income (€ 32 million) caused by higher income from harbour dues and contract income; A non-recurring buy-off of the liability for intended small-scale maintenance of bridges, quay walls and locks (€ 13.9 million); an increase in depreciation/amortisation costs (€ 12.3 million); an increase of the income from participating interests (€ 6.6 million).
INCREASE in % 2010 2009 Difference

Harbour dues Contract income Other operating income Operating income Salaries, wages and social charges Operating expenses other operating expenses Operating expenses before non-recurring buy-off small-scale maintenance Non-recurring buy-off small-scale maintenance Total operating expenses Earnings before interest, taxes, depreciation and amortisation (EBITDA) Depreciation and amortisation Income from normal operations (EBIT) Financial income and expenses Income from participating interests Income excluding exceptional items 7,0 3,4 6,4 -5,8 -0,4 6,2

288,2 249,4 13,9 551,4 -101,1 -102,0 -18,3 -221,4 -13,9 -235,3

274,1 232,5 12,9 519,4

14,2 16,9 1,0 32,1

-95,1 -104,1 -23,1

-6,0 2,1 4,8

-222,3

0,9 -13,9

-222,3

-13,0

316,1 -113,1 203,0 -55,1 6,3 154,2

297,1 -100,8 196,3 -51,8 -0,3 144,2

19,0 -12,3 6,7 -3,3 6,6 10,0

Proceeds from sale participating interest NET INCOME
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23,2 -7,9
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-23,2 -13,2

154,2

167,4

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The harbour dues increased by € 14.1 million (+ 5.1%) compared to the year 2009. Due to the increase in handled throughput and an increase in harbour due tariffs the gross harbour dues increased by € 27.6 million (+ 9.5%). After eliminating the non-recurring crisis deduction of 7% and other discounts, the net harbour dues amounted to € 275.3 million. The income from harbour dues (for inland vessels) ( €12.9 million) rose by € 1 million (+8.6%). As a result of indexing and price revisions, the contract income rose to € 16.9 million (+ 7.3%). Compared to 2009, the operating expenses excluding the non-recurring buy-off of small-scale maintenance remained stable. The most important changes were: an increase in salaries, wages and social charges (€ 6 million) predominantly caused by a rise in the company collective agreement (January +0.75%, July +0.5%) and higher allocation to former personnel due to a change in legislation a decrease in the operating costs (€ 2.1 million) and other operating expenses (€ 4.8 million). The depreciation expenses rose by € 12.3 million due to a higher level of investments. Compared to 2009, the balance of financial income and expenses decreased by € 3.3 million. The Port of Rotterdam Authority utilised the available facilities to meet the financing requirements. This caused an increase in interest expenses. In addition, the positive cash balance at the end of 2009 was mainly used in 2010 to fund investments resulting in a decrease of interest income. The results from participating interest increased by € 6.6 million compared to 2009. This was caused by an increase in the operational results of the participations and the sale of 25% of the shares in Portbase B.V. to the municipality of Amsterdam (€ 1.5 million). The 2010 book profit amounted to € 23.2 million due to the sale of a participation.





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8.2 Cash flows
Cash flow overview
Amounts x € 1 million

2010 Earnings (EBIT) Depreciation and movement in provisions Cash flow from ordinary activities Movements in working capital Cash flow from normal activities interest Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities BALANCE CAsh fLOw 203,0 103,0 306,0 -28,3 277,7 -54,3 223,4 -394,4 56,9 -114,1

2009 196,3 92,1 288,4 -105,0 183,4 -47,2

136,2

-320,7

355,4 170,9

Because of the State contribution there was a reclassification in 2010 from ‘Tangible fixed assets’ to ‘Accounts receivable’. This item has no cash impact and therefore it is not included in the cash flow statement (for more details see the annual report 2010).

Compared to 2009 the operational cash flow increased with € 87,2 million to € 223.4 million. The rise was mainly caused by a decrease in working capital (€ 76.7 million) as a result of less repayment of short-term debt. Other sources of an increase in the operational cash flow were an increased operating result (+ € 6.7 million) and increased depreciations and provisions in 2010 (€ 10.9 million). Conversely, we paid more interest (+ € 7.1 million). The cash flows from investing activities concerns the volume of investments corrected for received contributions and subsidies. Compared to 2009, the volume of investments including capitalised interest rose as a result of the investments in Maasvlakte 2. This resulted in an increase in the (outgoing) cash flow from investing activities.

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Gross investments
amounts x € 1 million

2010 Exisitng area Maasvlakte 2 TOTAL 121 324 445

2009

2008

2007

2006

170 171 341

135 55 190

235 17 252

231

231

The cash flow from financing activities mainly consists of repayments of subordinated loans and senior debts and the issued debt from the European Investment Bank amounting to € 180 million.

The Port of Rotterdam Authority Annual report 2010

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96

8.3 Financing
At the end of 2010, the funding of the Port of Rotterdam Authority predominantly consisted over € 1.7 billion of equity and liabilities. These liabilities consist of issued (subordinated) loans from the municipality of Rotterdam and (senior) debt from the financial market. The financial policy of the Port of Rotterdam Authority is risk-averse. We hedge financial risks to a significant extent. In order to prevent interest risks on loans with floating interest rates, we contracted four interest rate swaps. In addition, at the of end 2008, we contracted a fuel swap by which we have hedged the risk of volatile oil prices during the construction of Maasvlakte 2. Furthermore, we contracted a Euro/ Dollar foreign currency swap in 2009 to hedge the risk the Port of Rotterdam Authority faces with respect to a foreign participation.
Key figures
Interest coverage rate Net Debt / EBITDA Solvency (in %) Return on capital employed (in %) 2010 3.7 2.9 63 7.0 2009

4.1 2.6 66 7.8

1

Operating income / balance of interest income and expense

2

Net interest-bearing debt / income before interest, depreciation and amortisation

3

Group equity, incl. subordinated loans / balance sheet total

4

Income from normal operations / average balance sheet total less short-term debt

The ratios interest coverage ratio (ICR)1, Net Debt / EBITDA2 and solvency3 slightly deteriorated in 2010 compared to 2009. This was mainly caused by the effects of the equity injection of € 450 million which we received, and which led to a substantial increase in our liquidity and issued capital. The interest coverage declined due to a relative increase in interest expenses in 2010 compared to the slight growth in operating income. Due to higher investments in 2010, the Net debt / EBITDA ratio increased. These investments led to a lower level of liquid assets at the end of 2010. The solvency decreased due to the issuing of long term debt causing the balance sheet total to grow faster than the increase in equity. Just as in 2009, the ratios amply fulfil the standards imposed by external financiers. Because of the high levels of investment expenditure, the financial ratios will be under pressure in the coming years but are expected to continue to fulfil the agreements with the financiers. The return on capital employed (ROCE4) declined

The Port of Rotterdam Authority Annual report 2010

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due to stabilised income from normal operations and higher investments in 2010 compared to 2009. This development follows the expectations expressed in 2009 and are largely caused by increasing investments in Maasvlakte 2. The ROCE will decline further in the coming years because of the high level of investments.

The Port of Rotterdam Authority Annual report 2010

Report of the Port Authority > Finance

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report of the port authority
1 2 3 4 5 6 7 8 9 The Port of Rotterdam About the Port of Rotterdam Authority Harbour Master Customer Area and space Traffic and accessibility Environment and sustainability Finance Outlook 2011

Outlook 2011

The Port of Rotterdam Authority Annual report 2010

Report of the Port Authority > Outlook 2011

99

As stated in the foreword the port of Rotterdam is doing well. The handling of goods, our market share and our investments, in both Maasvlakte 2 and the exiting port area are developing successfully. We would like Mainport Rotterdam to maintain its role as the engine of the national and European economy. Our new Business Plan for 2011-2015 sets out the direction we wish to take We can build on our history, knowledge and experience and we have ambitious targets such as improving accessibility, preserving the port area, enlarging our market share and creating value for global players in international growth markets. We are positive in respect of the development of throughput handling in 2011. We foresee a growth of 2 to 3 percent amounting to 440 million tonnes. This growth is comparable with the growth rate in the period 2005-2008. The harbour dues are developing moderately. Our operational and other expenses remain stable. Thanks to the growth in income and the ‘freeze’ of expenses, we expect an increase in the net result in 2011. We continue investing to realise our ambitions. Our investment volumes will further increase in 2011. For Maasvlakte 2, 2011 will be an important year: the largest proportion of the total investments takes place in 2011 and the first berths will become visible. In the existing port area, we also anticipate developments. Two new, large bio fuel factories and a liquefied gas terminal will be operational in the port, and two new coal heated power plants and a gas power plant are under construction. Through the Rotterdam Climate Initiative, we are cooperating with our partners to make sustainable growth of the Rotterdam Energy Port feasible. We are working hard on CO2-capture installations at the existing coal heated power plants, to save energy by mutually linking companies and increasing the number of wind turbines in the port of Rotterdam. In order to improve the accessibility of the port, we are maintaining the same course in respect of De Verkeersonderneming and the Container Transferium in Alblasserdam. To realise the rapid construction of the New Western River bank connection, we are doing our utmost to ensure a decision is taken in 2011 regarding a preferred route and we hope to be able to remove the potential financial barriers. In 2011 we will present our new ‘Port Vision 2030’. In the spring, we will enter into dialogues with customers, authorities, interest groups and residents. We hope to formulate a substantively good and flexible vision with regard to the desired development of the port and its surroundings. After the dialogue we will present the Port Vision 2030 to the Mayor and Aldermen of Rotterdam.

The Port of Rotterdam Authority Annual report 2010

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Financial Statements 2010

Content Financial Statements
Balance sheet Statement of income Cash flow statement Notes to the balance sheet and the statement of income Accounting policies for the balance sheet Accounting policies for the statement of income Notes to the balance sheet 1 2 3 4 5 6 7 8 9 10 Tangible fixed assets Financial fixed assets Accounts receivable Cash and cash equivalents Equity capital Provisions Long-term debt Short-term debt Off-balance sheet commitments and contingencies Financial instruments 107 108 109 110 111 115 117 117 118 118 118 119 120 121 122 122 124

Notes to the statement of income 11 12 13 14 15 16 17 18 19 20 Total operating income Salaries, wages and social charges Other operating expenses Other notes to the statement of income Financial income and expense Income from participating interests Workforce Remuneration of Directors Related parties Auditors’ expenses

125 125 125 126 126 126 127 127 127 130 130

Other information 21 22 23 24 25 Appropriation of net income under the Articles of Association Proposed appropriation of net income - provisional Withdrawals from/deposits into paid-in surplus Events after the balance sheet date Auditor’s report

131 131 131 132 132 132

List of participating interests

133

The Port of Rotterdam Authority Annual report 2010

Financial Statements

106

Balance sheet
Ref. Assets fixed assets Tangible fixed assets Financial fixed assets 1 2 2,875,590 27,691

(before appropriation of income, amounts x € 1,000)
31/12/2010 31/12/2009

2,779,858 24,914 2,903,281 2,804,772

Current assets Inventories Accounts receivable Cash and cash equivalents TOTAL AssETs Liabilities and shareholders’ equity shareholders' equity Subscribed capital stock Paid-in surplus Statutory reserves Other reserves Income to be appropriated 5 5 5 5 5 900,000 391,200 4,648 319,785 154,189 1,769,822 Provisions Long term debt short term debt TOTAL LIABILITIEs AND shArEhOLDErs’ EquITy 3,280,254 3,087,697 6 7 8 83,966 1,143,222 283,244 900,000 391,200 3,435 213,945 136,163 1,644,743 3 4 497 315,391 61,085 376,973 3,280,254 574 107,193 175,158 282,925 3,087,697

80,579

1,058,564

303,811

The Port of Rotterdam Authority Annual report 2010

Financial Statements

107

Statement of income
(amounts x m 1.000)
Ref. Net turnover Other operating income Total operating income Salaries, wages and social charges Depreciation on tangible fixed assets Other operating expenses Net operating expenses Income from normal operations Financial income and expenses Income from participating interests NET INCOME 15 16 12 1 13 101,145 113,057 134,193 348,395 203,001 -55,087 6,275 154,189 11 11 537,539 13,857 551,396 2010 2009 506,510 12,921

519,431

95,062 100,813 127,242 323,117 196,314

-51,827 22,941 167,428

The Port of Rotterdam Authority Annual report 2010

Financial Statements

108

Cash flow statement
(amounts x m 1.000)
Ref. Income from normal operations Adjustments for: Amortisation and depreciation Changes in provisions Withdrawal of equalisation groud-lease buy-off Impairment of financial fixed assets Changes in working capital Accounts receivable Inventories Short term debt 3 -10,612 77 -17,777 -28,312 Cash flow from ordinary activities Interest income Interest expense 5,546 -59,868 -54,322 Cash flow from operating activities Investments Tangible fixed assets Loans granted 2 -401,295 -335 -401,630 Disposals Cash flow from investing activities Cash flow before financing Repayments on long term debt Loans contracted Paid-up capital Dividend Cash flow from financing activities NET CAsh fLOw 5 -107,166 193,918 0 -29,835 56,918 -114,073 7,257 -394,373 -170,991 -102,579 61,081 450,000 -53,113 355,389 170,923 -344,901 -1,012 -345,913 25,245 -320,668 -184,466 223,382 277,704 3,318 -50,548 -47,230 136,202 -383 -42 -104,550 -104,975 183,432 2 1 113,057 39 -10,108 27 103,015 100,813 358 -9,786 708 92,093 2010 203,001 2009 196,314

Cash balance at beginning of year Cash balance at end of year MOvEMENT IN CAsh

4 4

175,158 61,085 -114,073

4,235 175,158 170,923

The Port of Rotterdam Authority Annual report 2010

Financial Statements

109

Notes to the balance sheet and the statement of income
General
Two-tier board system

Under the provisions of Section 153 of Book 2 of the Dutch Civil Code, on 20 July 2005 the Port of Rotterdam Authority filed a statement with the Trade Register that since 31 December 2004 it had complied with the requirements laid down by law for ‘large’ companies. This means that as from 21 July 2008 the Port of Rotterdam Authority has been a statutory two-tier company. The Articles of Association already take account of this statutory two-tier Board system. The shares are held by the Municipality of Rotterdam (70 5/6%) and the State of the Netherlands (29 1/6 %). The financial statements have been drawn up in accordance with the statutory provisions of Part 9 of Book 2 of the Dutch Civil Code and the firm pronouncements in the Dutch Accounting Standards as issued by the Dutch Accounting Standards Board [Raad voor de Jaarverslaggeving]. With effect from 2009, the Port of Rotterdam Authority has made use of the exemption from the obligation to consolidate the companies involved in the consolidation whose joint significance is negligible to the company as a whole (RJ 217.304). For an overview of participating interests, reference is made to the List of Participating Interests. The cash flow statement has been prepared using the indirect method. The cash disclosed in the statement consists of cash and cash equivalents. Interest received and paid, as well as dividends received are shown under the cash flow from operating activities. Dividends paid are shown under the cash flow from financing activities. There were no system changes in 2010. Offsetting of receivables and debt only takes place if it is legally possible and it is the explicit intention to settle the separate items as such.

Shareholders

Accounting policies

Exemption from consolidation obligation

Notes to the cash flow statement

System changes Offsetting

The Port of Rotterdam Authority Annual report 2010

Financial Statements

110

Accounting policies for the balance sheet
General
The financial statements have been prepared on an historical cost basis of accounting. Unless a different valuation principle is stated, assets and liabilities are stated at nominal value. Notes to the line items of the balance sheet, statement of income and cash flow statement have been numbered in the financial statements.
Amortised cost price

The amortised cost price is calculated using the effective interest method less any deductions (direct or through forming a provision for exceptional impairment or bad debts). The calculation also takes account of share premiums or discounts at the moment of acquisition and transaction costs and fees that form an integral part of the effective interest rate. On each balance sheet date, the Port Authority tests whether there are any indications of an asset being subject to impairment. If there are such indications, the realisable value of the asset is determined. If it is not possible to determine the realisable value of an individual asset, the recoverable amount of the cash generating unit to which the asset belongs is identified. An asset is subject to impairment if its carrying amount is higher than its recoverable value; the recoverable value is the higher of realisable value and present value. Any impairment loss is directly taken to the statement of income. When applying the policies and rules for drawing up the financial statements, the management of the Port of Rotterdam Authority will form certain opinions and estimates. The main opinions and estimates, including the associated assumptions, are: Depreciation and amortisation The depreciation period is based on the expected economic life of the asset. The depreciation periods used are set out in Note 1: Tangible fixed assets. Provision for employee benefit plans The estimated elements primarily relate to the interest percentages used, redundancy, disability, mortality and retirement risk, as well as inflation assumptions and career tables. Provision for soil clean-up The calculation is based on present clean-up costs, the time of clean-up (in the future), price indexation and expected effects of developments on clean-up costs.

Exceptional fixed asset impairment

Opinions and estimates

Assets
Tangible fixed assets

Tangible fixed assets are stated at acquisition or manufacturing price, inclusive of directly attributable costs, such as construction period interest, less straight-line depreciation based on estimated useful life, or lower present value. The manufacturing price consists of the costs of acquisition of raw materials and consumables and costs directly attributable to the manufacturing process, including installation costs. Preliminary expenses for investment projects are capitalised from the moment it is certain that these projects will actually be carried out. Land and tangible fixed assets under construction are not depreciated.

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111

Depreciation is on a straight-line basis, and based on the expected economic life, taking account of the residual value. If the expectation in respect of the depreciation method, useful life and/or residual value is subject to change over time, this will be shown as a change in the accounting estimate. Grants and contributions on investments will be deducted from the acquisition or manufacturing price of the asset to which the grants relate.
Financial fixed assets

Group companies and other participating interests in which the Port Authority may exercise significant influence on business and financial policy are carried at net asset value. Significant influence is assumed at any rate to be present if the rate of participation is more than 20% of the voting rights attached to the shares. The net asset value is calculated using the policies applied in these financial statements. For participating interests about which insufficient information is available for adjustment to these policies, the valuation principles of the participating interest concerned are followed. If the participating interest’s net asset value is negative, it is stated at nil. If and in so far as the Port of Rotterdam Authority fully or partially guarantees the debts of the participating interest or has the firm intention to enable the participating interest to pay its debts, a provision is formed. The share in the result of investments in participations is included in the statement of income. If and in so far as the Port of Rotterdam Authority cannot effect payment of the income to itself without restrictions, the not distributed income will be taken to a statutory reserve Participating interests acquired are initially valued at the fair value of the identifiable assets and liabilities at the moment of acquisition. The difference between the acquisition price and the fair value of the identifiable assets and liabilities will be capitalised as goodwill and disclosed under intangible fixed assets. Any subsequent valuation is based on the net asset value thus determined. Participating interests in which no significant influence can be exercised are stated at the lower of acquisition price and recoverable value. Loans included under financial fixed assets are stated at amortised cost price after the initial accounting. Income and expenditure is shown in the statement of income by means of the amortisation process. The line item ‘other securities’ consists entirely of bonds. In principle, these are to be retained until the date of maturity. These bonds are valued at amortised cost price. Income and expenditure will be credited or debited to the statement of income by means of the amortisation process.

Inventories

Inventories mainly concern spare parts and consumables for vessels and technical systems. Inventories are stated at the lower of the acquisition price and realizable value.

The Port of Rotterdam Authority Annual report 2010

Financial Statements

112

Accounts receivable

Trade receivables are stated at face value. A provision is deducted for potential bad debts. Cash and cash equivalents represent cash in hand, bank balances and deposits with terms of less than twelve months. Current account overdrafts at banks are included under debts to credit institutions under the heading ‘Short term debt’.

Cash and cash equivalents

Liabilities
Provisions

Provisions are formed for legally enforceable or constructive obligations existing on the balance sheet date, the settlement of which is likely to require an outflow of funds whose extent can be reliably estimated. If applicable, provisions are recognised at their present value. The new standard Dutch GAAP guideline 271 presumes the ‘commitment approach’. This means that legal entities have to form a provision if there is a possibility of existing additional pension commitments that are not covered by current provisions. The Port of Rotterdam Authority has a defined benefit plan. This means that the Port of Rotterdam Authority pays premiums to its pension provider, and the pension provider is then responsible at its own risk for the pension commitments to the employees of the Port of Rotterdam Authority. Apart from the payment of premiums, under the terms of this pension plan the Port of Rotterdam Authority is not obliged to pay additional contributions. Therefore, no provision has been formed for this. However, provisions have been formed for future payments relating to early retirement, health insurance costs and other deferred remunerations. Each year the liabilities relating to these employee benefit plans are calculated by independent actuaries. The value of the liability is calculated by converting the estimated future cash flows into cash, taking account of expected salary developments and mortality and disability risks, assuming interest rates that apply to high-quality corporate bonds. Valuation is done by best estimate. Ground lease buy-off Leaseholders may buy off their ground leases at present value. The amounts thus received are included under long term debt. Each year interest is accrued on the outstanding balance and the proceeds for the year concerned are added to the contract income. The policy of the Port of Rotterdam Authority is to cover a part of the interest, currency and product price risks effectively. If derivatives are used in this respect, the Port of Rotterdam Authority applies hedge accounting. According to the cost-price hedge accounting method, the derivatives are stated at cost price. If the hedge is effective, value changes remain off the balance sheet.

Pensions and other employee benefit plans

Long term debt

Derivatives and hedge accounting

The Port of Rotterdam Authority Annual report 2010

Financial Statements

113

Leasing

Financial lease Assets financed through financial leases are capitalised in the balance sheet from the moment at which the lease is concluded, at the lower of the fair value of the asset and the present value of the minimum lease instalments. The lease instalments payable are broken down into repayment and interest components, on an annuity basis and based on a fixed interest rate. The lease commitments are recognised under long term debt exclusive of interest. The interest component, as part of the lease instalments, is taken to the statement of income. The relevant assets are depreciated over their remaining economic lives. Operating lease Liabilities resulting from operating leases are included in the statement of income on a straight-line basis, over the term of the respective contract. With effect from 2011, the obligations will be included in the commitments and contingencies not included in the balance sheet.

The Port of Rotterdam Authority Annual report 2010

Financial Statements

114

Accounting policies for the statement of income
Accounting policies for the statement of income
Net income represents the income from operations and services rendered, less discounts and suchlike and taxes levied on the turnover. This income mainly concerns harbour dues and income from sites let to third parties.

Costs
Costs are determined on an historical basis and allocated to the year to which they relate. (Foreseeable) liabilities and potential losses which originate from before the end of the financial year are taken into account if they have become known before drafting the financial statements, and the conditions for including provisions are otherwise met.

Employee benefits
Benefits paid periodically

Salaries, wages and social charges are taken to the statement of income by virtue of the conditions of employment. The Port of Rotterdam Authority pays for the defined benefit plan, which according to Standard 271 may be recognised as a defined-contribution plan, contributions to pension funds and insurance companies. The contributions are recognised as personnel costs when these are payable. Contributions paid in advance are included as prepayments and accrued income if they lead to a repayment or a reduction in future payments. Allocations to the provision for employee benefit plans are recognised as personnel costs.

Pensions and other employee benefit plans

Government grants
Operating grants are recognised as income in the statement of income in the year in which the subsidised costs were incurred, income was lost or a subsidised operating deficit occurred and it is likely that it will be received and the Port of Rotterdam Authority can demonstrate the conditions for receipt. Grants for additions to tangible fixed assets are deducted from the asset concerned and taken to the statement of income as part of depreciation.

The Port of Rotterdam Authority Annual report 2010

Financial Statements

115

Depreciation
Depreciation on tangible fixed assets is based on the acquisition or manufacturing price. There is no depreciation on sites and on tangible fixed assets under construction. Depreciation is on a straight-line basis, based on the estimated economic life (see also ‘Accounting policies for the balance sheet - Tangible fixed assets’).

Financial income and expense
Interest income and expense

Interest income and expense are recognised on a pro rata basis, taking account of the effective interest rate of the assets and liabilities concerned. Interest charges are capitalised for qualifying assets during the period of their manufacture. The interest to be capitalised is calculated based on the internally weighted average interest rate of the long term loans of the Port of Rotterdam Authority adjusted for the loan capital/total capital ratio. If a project is being financed, the interest to be capitalised is calculated based on the interest rate applicable to this financing. Interest charges are added to provisions and long term debts, the balance sheet value of which is determined based on a cash value calculation.

Capitalisation of interest charges

Interest charges entered as liabilities

Corporation tax
All shares in the Port of Rotterdam Authority are held by legal entities under public law. This means that, under Section 2, paragraphs 3 and 7 of the Corporation Tax Act, the (current) activities of the Port of Rotterdam Authority are exempt from corporation tax.

The Port of Rotterdam Authority Annual report 2010

Financial Statements

116

Notes to the balance sheet
1 Tangible fixed assets
Land and infraplus public infrastructure port basins and waterways quay walls, slopes, jetties and other mooring facilities 31 December 2009 Cost Accumulated depreciation CArryINg AMOuNT Movements in 2010 Investments Disposals State contribution Maasvlakte 2* Depreciations Commissioning -145 -22,275 66,375 43,955 31 December 2010 Cost Accumulated depreciation CArryINg AMOuNT 1,108,437 -114,287 994,150 550,095 -162,900 387,195 995,055 -225,952 769,103 457,755 457,755 387,408 -120,021 267,387 3,498,750 -623,160 2,875,590 -29,724 -25,299 14,674 -40,349 -37,988 63,383 25,395 413,328 -167,862 -215,784 29,682 -6,808 -27,495 71,352 37,049 413,328 -6,953 -197,586 -113,057 95,732 1,042,207 -92,012 950,195 565,145 -137,601 427,544 931,672 -187,964 743,708 428,073 428,073 326,041 -95,703 230,338 3,293,138 -513,280 2,779,858 Tangible fixed assets under construction Equipment and otherassets TOTAL

Depreciation periods in years

up to 30 years
(amounts X € 1,000) *

25 to 50 years

25 to 40 years

n.v.t.

5 to 50 years

This item has no cash impact and therefore it is not included in the cash flow statement.

During the financial year, an amount of € 12 million in construction period interest was capitalised for tangible fixed assets under construction. In accordance with the development agreement ‘Land reclamation’ the State will contribute € 726 million nominal in the construction costs of Maasvlakte 2. The expenditure up to 31 December 2010 (€ 198 million) attributed to the said contribution has been reclassified as ‘Accounts receivable’. As the conditions of article 3 of the development agreement were fulfilled in 2010, the requisition is included (all public-legal involvement was obtained, land reclamation was actually started and a contiguous construction process could be assumed). For three properties a change in estimate took place. Because of a future demolition, the depreciation period for the residual carrying amount was changed to 4 years. The change in estimate has a yearly result effect of € 2.8 million. Beneficial ownership of the port sites was transferred to the Port of Rotterdam Authority at the time of the Company’s incorporation. The Municipality of Rotterdam holds legal title to these sites, on which a ground lease was established for the benefit of the Port of Rotterdam Authority. At the end of 2010 this had been realised for about 99% of the total area, 30% of which was subject to a suspensive condition.

The Port of Rotterdam Authority Annual report 2010

Financial Statements

117

2 Financial fixed assets
Participations Other securities Other long term receivables 31 December 2009 CArryINg AMOuNT Movements 2010 Loans granted Instalments on loans Provisions releases Income from participating interests Exchange result Provisions for bad debts Reclassification short term receivables TOTAL MOvEMENTS 31 December 2010 CArryINg AMOuNT 25,199
(amounts X € 1,000)

TOTAL

18,200

4,390

2,324

24,914

6,275 724 6,999

-4,390 -4,390

335 -304 164 -27 168

335 -304 164 6,275 724 -27 -4,390 2,777

0

2,492

27,691

For an overview of participating interests, reference is made to the List of Participating Interests.

3 Accounts receivable
31/12/2010 31/12/2009

Accounts receivable from the Municipality of Rotterdam State contribution (Maasvlakte 2) Trade receivables Other short term receivables Prepayments and accrued income

415 197,586 67,492 15,027 34,871

2,374 76,121 8,382 20,316

TOTAL
(amounts X € 1,000)

315,391

107,193

Prepayments and accrued income

The main items included in prepayments and accrued income are items yet to be invoiced and VAT yet to be received. A corporate bond portfolio was included in the other short term receivables for a carrying amount of € 4.4 million. The market value of this portfolio as at 31 December 2010 was € 4.5 million. The corporate bond portfolio was settled in January 2011.

4 Cash and cash equivalents
31/12/2010 31/12/2009

Cash (current account)
(amounts X € 1,000)

61,085

175,158

Cash is at the Port of Rotterdam Authority’s free disposal.

The Port of Rotterdam Authority Annual report 2010

Financial Statements

118

5 Equity capital
The Port of Rotterdam Authority’s guarantee capital or liability capital comprises the following:
31/12/2010 31/12/2009

Shareholders' equity Subordinated loans from the Municipality of Rotterdam TOTAL guArANTEE CAPITAL
(amounts X € 1,000)

1,769,822 312,125 2,081,947

1,644,743 404,525 2,049,268

Summary of movements

The summary of movements in equity capital in 2010 is as follows:
Subscribed capital stock Paid-in surplus Statutory reserves Other reserves Income to be appropriated TOTAL

31 december 2009 Net income for the year Final dividend paid 2009 Appropriation of net income 2009 Exchange rate reserve Contribution to statutory reserves

900,000

391,200

3,435

213,945

136,163

1,644,743 154,189 -29,834 724 -

-

-

724 489

106,329 -489

154,189 -29,834 -106,329 -

TOTAL MOvEMENTS 31 december 2010

0 900,000
(amounts X € 1,000)

0 391,200

1,213 4,648

105,840 319,785

18,026 154,189

125,079 1,769,822

Equity capital

The Company’s authorised capital totals € 3 billion, and is divided into three billion consecutively numbered ordinary shares of € 1 par value each. The subscribed and paid-up equity capital totalled € 900 million at the end of 2010 and is divided into 900 million ordinary shares of € 1 par value each. The balance of statutory reserves relates to the reserve for participating interests and the exchange rate reserve for participating interests. The total result of the Port of Rotterdam Authority is equal to the result for the financial year.

Statutory reserves

Total income

The Port of Rotterdam Authority Annual report 2010

Financial Statements

119

6 Provisions
Provision employee benefit plans Provision future soil clean-up Provision allegedly furnished guarantees TOTAL

31 december 2009 Allocations Withdrawals Releases Interest allocated 31 december 2010

23,761

32,342

24,476

80,579 5,989 -5,786 0 3,184 83,966

5,500 -4,627 1,044 25,678
(amounts X € 1,000)

489 -1,159 1,280 32,952

860 25,336

Provisions for employee benefit plans

Provisions were formed for obligations to current and former personnel in relation to early retirement, future contributions to health insurance premiums and other deferred employee remuneration. Since 1/1/2009 the plan concerning job-related early retirement has changed. As a result of this change the costs for the employer increased, which caused a higher allocation in 2010 (€ 4.5 million). This is a long-term provision.

31/12/2010

31/12/2009

Early retirement Health insurance contribution after retirement Other deferred remunerations TOTAL
(amounts X € 1,000)

22,413 1,995 1,270 25,678

19,534 2,965 1,262 23,761

Provisions for future soil clean-up

An amount of € 27.2 million for the provision for future soil clean-up concerns residual pollution accepted by the Port of Rotterdam Authority upon termination of the lease of sites. This will largely be covered from the lump-sum payouts received in relation to this. Annual interest is added to this sum. The remaining € 5.7 million concerns the cash value of the expected clean-up expense on sites where actual clean-up has been agreed with the competent authorities. No provision is included in the financial statements for soil pollution at the other sites, which may have to be cleaned up in the very long term. Due to continuing technological advances as well as amendments to legislation and regulations, the amount to be spent on associated future clean-up cannot be estimated with a high degree of certainty at present. Furthermore, the standard contract provisions of the Port of Rotterdam Authority applying to the lease or issue under lease or sublease stipulate that, when the contract is terminated, the soil must be delivered to the Port of Rotterdam Authority in its original condition. Consequently, the expectation is that it will be possible to recover a large portion of the future clean-up expenses from the polluter. This is a long term provision.

The Port of Rotterdam Authority Annual report 2010

Financial Statements

120

Provision for guarantees allegedly furnished

On 24 January 2007, the District Court of Rotterdam gave its judgment in proceedings between Commerz (Nederland) NV and the Port of Rotterdam Authority, denying the claims of Commerz. Commerz lodged an appeal against this judgment. On 1 February 2011, the court of appeal in The Hague ratified the judgement of the district court in Rotterdam. The expectation is that Commerz bank will give notice to appeal. Because of this, the provision formed for this purpose was maintained. The Investment Agreement concluded on 2 September 2005 between the State of the Netherlands, the Municipality of Rotterdam and the Port of Rotterdam Authority lays down that any future release of the provision will accrue to the Municipality by means of an additional dividend. In 2010, only interest was added to the provision for guarantees which were allegedly furnished. This is a long term provision.

7 Long term debt
31/12/2010 Term < 1 year Subordinated loans from the Municipality of Rotterdam Other loans from the Municipality of Rotterdam Ground lease buy-off Financial lease commitments Debts to credit institutions Maintenance cost buy-off Other long term debt TOTAL 92,400 8,043 9,800 315 7,676 1,988 120,222
(amounts X € 1,000)

31/12/2009 TOTAAl

Term 1-5 years

Term > 5 years

TOTAAL

219,725 128,914 49,000 2,060 74,138 9,940 483,777

55,811 94,919 12,325 373,678 1,990 500 539,223

312,125 192,768 153,719 14,700 455,492 13,918 500 1,143,222

404,525 200,338 154,807 14,987 282,907

1,000 1,058,564

Subordinated loans from the Municipality of Rotterdam Other loans from the Municipality of Rotterdam Ground lease buy-off Financial lease commitments

These loans are subordinated to all of the Port Authority’s other existing and future creditors. Annual interest on these loans is 5.72%. Annual interest rates on these loans range between 5.03% and 6.14%.

This represents the value of customer compensation for ground lease buy-offs. The Port of Rotterdam Authority leases sites and a vessel for representative purposes. Of the total loans taken out with the European Investment Bank (€ 456 million) more than 30% are on a fixed-interest basis (ranging between 4.65% and 4.96%). The remaining loans have been taken out at a variable interest rates, based on the 3-month EURIBOR. The Port of Rotterdam Authority agreed to buy off future small maintenance costs related to a number of objects. The payment will take place in 7 periods.

Debts to credit institutions

Maintenance cost buy-off

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121

Long term debt facilities

In January 2008 credit facilities were taken out with the European Investment Bank, Bank Nederlandse Gemeenten, ING, Rabo and Fortis for an amount of € 2 billion. They will be used to finance investments in the existing port area as well as the construction of the first part of Maasvlakte 2. The annual interest rate is based on the 3-month EURIBOR. This interest payment has been partly swapped for a fixed interest rate of an average of 4.8%. No security has been provided for the long term debt facilities. There is an agreement with external financiers about a number of financial ratios. Just as in 2009, the ratios amply fulfil the agreed standards.

8 Short term debt
31/12/2010 31/12/2009

Debt to credit institutions Debts to the Municipality of Rotterdam and State Trade payables Taxes and social security charges Pension charges Holiday pay and holiday entitlements not taken Received reservation fees Maasvlakte 2 Advance on rents, ground lease and quay fees Advance on investment grant for Trafic Guidance System Other debt, accruals and deferred income TOTAL
(amounts X € 1,000)

0 17,009 45,850 4,946 1,338 7,448 103,052 53,790 8,831 40,980 283,244

35,755 20,469 42,763 4,023 1,312 8,110 72,431 43,095 15,371 60,482 303,811

Debt facilities

The Port of Rotterdam Authority has a short term debt facility of € 200 million, for which no security has been provided.

9 Off-balance sheet commitments and contingencies
Contingent schemes

Contingent agreements have been concluded with several market players about future capital expenditure such as investments and restructuring operations, etc. These agreements concern payments to be made (€ 6.7 million) and received (€ 1.7 million). The Port of Rotterdam Authority also stands surety for a loan (€ 0.7 million). Guarantees have been issued for a number of group companies and participating interests in respect of the fulfilment of lease, rental, repayment and interest obligations towards third parties up to an amount of € 10.3 million. The Company guarantees a minimum yield of a participating interest for the co-shareholder. In addition, the Port of Rotterdam Authority guarantees a residual value of installations (€ 1.4 million).The Port of Rotterdam Authority has issued a letter of comfort to a bank for a maximum of € 4.4 million. Last year, the Port of Rotterdam Authority and the municipality reached a conditional agreement for cooperation in relation to seaport Dordrecht. From 1 July 2011, the Port of Rotterdam Authority will develop, maintain and exploit the seaport for its own account. The total area related to the seaport Dordrecht amounts 290 ha of which approximately 50 ha is let out and 10 ha free to let out. To acquire the main ground lease, the Port of Rotterdam Authority will pay an initial yearly fee of approximately € 1.8 million. During the first few years the compensation will gradually increase to around € 2.7 million by 2016 after which it will be indexed yearly. Further on, the
122

The Port of Rotterdam Authority Annual report 2010

Financial Statements

Port of Rotterdam Authority will invest in the first 15 years of the cooperation at least € 10 million in port related projects on condition that there is sufficient return on investment.
Multi-year financial obligations

The Port of Rotterdam Authority expects to invest € 2 billion in Maasvlakte 2 until 2020. The State grants the Port of Rotterdam Authority a contribution of € 726 million for realising Maasvlakte 2.This contribution is partially to compensate the construction costs of the solid sea-defence and public infrastructure. At the end of 2010, € 198 million of the contribution received was classified as ‘Accounts receivable’. The contribution will be received in the period 2011-2012. Phase 1 of this investment (€ 1.1 billion) has been contracted to the PUMA consortium, of which € 724 million is outstanding obligations. The Port of Rotterdam Authority also expects to invest € 2 billion in the existing port area until 2020. € 155 million is already contracted. Of this, € 101 million is in outstanding obligations. The Port of Rotterdam Authority has committed itself for the coming years to a maximum of € 62 million in infra-plus investments, in respect of which the future lessees of the infrastructure can determine the moment of investment. The multi-year financial obligations towards market players totalled € 4.4 million. As part of the privatisation of the Rotterdam Municipal Port Authority as the Port of Rotterdam Authority [Havenbedrijf Rotterdam N.V.], the Municipality and the Port Authority agreed that the Port Authority would remain responsible for and bear the costs of the implementation of the Existing Rotterdam Area (BRG) quality of life projects until 2020 (average € 2.7 million a year). The outstanding obligation at the end of 2010 was € 22.8 million. An agreement has been concluded with the Municipality Rotterdam about buying off the obligation to manage and maintain objects such as bridges and locks in the urban area and port and industrial area (€ 13.5 million). Next to it, an agreement was made that the Port of Rotterdam Authority will receive a contribution of the Municipality Rotterdam to compensate the costs made for maintaining two objects (€ 2,9 million). Long term liabilities (yearly € 28.5 million) have been assumed for the rent of office buildings, operating leases for vehicles and maintenance of the port area. Furthermore, the maintenance of the Traffic Guidance System [Verkeers Begeleidend Systeem, ‘VBS’] and the supply of water to inland shipping was laid down in contracts. The Port of Rotterdam Authority has concluded a lease for an office building until 2015 with a renewal option. The annual rental charges total approximately € 8.4 million. For vehicles, five-year operational leases are usually concluded, with a total annual charge of approximately € 2.7 million. Maintenance contracts were concluded with several suppliers for the maintenance of the port area. These contracts concern such activities as dredging work and the maintenance of banks, slopes, roads and outdoor spaces. The annual cost of these is € 13 million. Until 2013, € 0.9 million will be spent yearly to combat oil spills in the port of Rotterdam. For the maintenance of the Traffic Guidance System and the supply of drinking water, € 1.7 million and € 0.7 million respectively have been agreed. The same applies for the maintenance and management of shore-based power boxes that supply power for inland shipping. This is outsourced until 2013 (€ 0.4 million). In respect of Maasvlakte 2, a contract has been concluded to develop, host and manage an online contract and document management system. This contract maintains until 2012 with annual costs of approximate € 0.7 million.

• • •

• •



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Pending claims and disputes

A number of companies backed by several oil companies are disputing the tariffs charged by the Port of Rotterdam Authority for harbour dues for oil tankers. This resulted in fiscal proceedings (for the seaport dues collected up to October 1997) and civil proceedings (for the seaport dues charged after October 1997) between the Port of Rotterdam Authority and the companies referred to above. Based on the interim judgments, rendered in both the fiscal and civil proceedings, it was decided not to form a provision. In a final verdict the court in The Hague rejected in 2010 the claim in the civil proceeding of the companies referred to above. Notice to appeal against this order has been given to the previously mentioned companies. The investment contract concluded on 2 September 2005 between the State of the Netherlands, the Municipality of Rotterdam and the Port of Rotterdam Authority contains an indemnity clause in respect of any repayment of seaport dues. This will come into effect if the amount to be repaid is greater than € 50 million and (individually) not less than € 5 million.

10 Financial instruments

General
The explanations contained in these notes provide information that is useful in estimating the extent of risks in connection with the financial instruments that both included in and excluded from the balance sheet. Unlike derivatives, the financial instruments of the Port of Rotterdam Authority serve to finance the operational activities of the Port of Rotterdam Authority or ensue directly from these activities. Next to it the port of Rotterdam Authority makes use of currency and interest swaps in order to cover currency and interest risks. Frameworks, guidelines and rules are mentioned in the treasury articles of association. The market value of the derivatives at the end of 2010 was approximately - €165.8 million (2009: € 103.1 million). This concerns the calculated present value of the difference between the covered fixed interest and the (variable) market interest. The port of Rotterdam Authority applies the cost-price hedge accounting method. Therefore, these financial instruments remain off the balance sheet. The main financial risks are:

Interest risk

The Port of Rotterdam Authority incurs interest risk on the interest-bearing receivables (particularly under financial fixed assets), cash and cash equivalents and interestbearing long term and short term debt (including lease buy-offs and debts to credit institutions). For receivables and debts with variable interest rate agreements, the Port of Rotterdam Authority incurs risk in respect of future cash flows. Concerning fixed-interest receivables and debts, the Port of Rotterdam Authority incurs risk on the market value. Concerning debts with variable interest rate agreements, a number of financial derivatives relating to the interest risk have been contracted. The Port of Rotterdam Authority incurs currency risk on investment activities as part of an international participation. To cover this currency risk, a currency swap has been concluded for the expected total financing cash flow. The Port of Rotterdam Authority has no significant concentration of counterparty risks. Based on the agreements made with the contractor for the construction of the first phase of the Maasvlakte 2 project, the Port of Rotterdam Authority incurs a particular risk with regard to movements in oil prices. To cover this risk, a fuel swap has been concluded for the expected cash flow during the period until the end of September 2013.

Currency risk

Counterparty risk Commodity risk

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Notes to the statement of income
11 Total operating income
2010 2009

Harbour dues (sea-going vessels) Harbour dues (inland vessels) Rent, ground lease, quay fees Total net turnover Other operating income TOTAL
(amounts X € 1,000)

275,298 12,863 249,378 537,539 13,857 551,396

262,203 11,847 232,460 506,510 12,921 519,431

The item ‘other operating income’ largely concerns a contribution to the Traffic Guidance System.

12 Salaries, wages and social charges
2010 2009

Salaries and wages Pension charges and redundancy pay Other social security charges Other personnel expenses TOTAL
(amounts X € 1,000)

77,651 16,018 5,466 2,010 101,145

76,219 11,187 5,646 2,010 95,062

The rise in 2010 of salaries and wages was partly caused by increases under the collective agreement (CAO) and periodic increases. There was also a rise in the average number of employees through the filling of existing full-time equivalent vacancies. The increase in pension charges is largely caused by increases in early-retirement contributions.

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13 Other operating expenses
2010 2009

Operating expenses Other operating expenses TOTAL
(amounts X € 1,000)

102,036 32,157 134,193

104,069 23,173 127,242

The item ‘operating expenses’ includes the regular charges for vessel guidance services, development, management and maintenance of the port infrastructure, management of equipment and nautical information systems, information and communication technology, customer acquisition and account management, and overhead expenses. Other operating expenses concern contributions to quality of life projects, restructuring costs, development costs, programme costs and the formation of a provision for bad debts. Other operating costs include the buy-off of future maintenance costs. This is related to a transaction with a shareholder which took place under market conform circumstances.

14 Other notes to the statement of income
Operating lease

During the financial year € 2.4 million (2009: € 2.5 million) in lease instalments was recognised in the statement of income for operating leases for vehicles. Research and development costs included in the income statement for 2010 totalled € 4.5 million (2009: € 5 million).

Research and development costs

15 Financial income and expense
2010 Income from long term receivables and securities Other interest income Total financial income Interest expenses Capitalised interest on tangible fixed assets under construction Total financial expenses TOTAL
(amounts X € 1,000)

2009

348 809 1,157 -68,277 12,033 -56,244 -55,087

753 7,155 7,908

-66,672 6,937 -59,735 -51,827

The capitalised interest on the investment expense for the Euromax project is equal to the 3-month EURIBOR plus a surcharge of 113 base points. For the other projects, the rate used for the construction period interest has been reduced from 2.4% in 2009 to 2.8%. This is the weighted average of the interest rate for loan capital, adjusted for the loan capital/total capital ratio.

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126

16 Income from participating interests
The income from participating interests (€ 6.3 million) comprises the share of the Port of Rotterdam Authority in the result of participating interests (€ 4.8 million) and the (positive) result concerning the sale of 25% of a participating interest (€ 1.5 million).

17 Employees
The average number of employees in 2010 was 1,232 (in 2009: 1,221). An average of 541 of these employees were employed by the Harbour Master Division (in 2009: 549). The number of employees working outside the Netherlands in 2010 was 12 (in 2009: 12).

18 Remuneration of Directors

Supervisory Directors
The remuneration of the Chairman of the Supervisory Board is € 30,000 a year. For Supervisory Board members, the remuneration is € 25,000 a year. In addition, Supervisory Directors who are members of the Audit Committee or the Remuneration Committee receive an annual payment of € 5,000. Remuneration for the Supervisory Directors is as follows:
2010 2009

Supervisory Board

A.J. Scheepbouwer R.J.N. Abrahamsen J.M. Kroon R.P.M. van Slobbe R.M. Smit TOTAAL
(amounts X € 1)

35,000 30,000 30,000 30,000 30,000 155,000

35,000 30,000 30,000 30,000 30,000 155,000

Directors
Remuneration policy

The remuneration policy as applied since 1 January 2005 to Executive Board members was adopted by the General Meeting of Shareholders in December 2004 following advice from the external consultancy firm Hay Group. The Port of Rotterdam Authority offers a competitive package of employment benefits, consisting of a regular income and a variable short term income, as well as a variable long term income. The variable short term income is 20% of the applicable regular income and is awarded if predetermined performance criteria are met. Because of the specific nature (strategic, long term) of the Port Authority, the remuneration of Directors is also based on long term performance (four years). If the long term objectives are achieved, a bonus of 60% of the average regular income for the preceding four years is paid after four years. For shorter periods of employment, the bonus will be calculated on a pro rata basis. If the period to be settled is less than 2 years, the long term bonus will not be paid out (e.g. on taking up employment later or leaving earlier).

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At the time it was adopted, the Port of Rotterdam Authority’s remuneration policy was set at a substantially lower level than that of comparable positions in the relevant remuneration market. At the request of shareholders, a start was made to develop a new remuneration policy in 2010. At the end of 2010, the Supervisory Board submitted a proposal to the shareholders proposing that the remuneration policy be based on government policy in respect of remuneration for board members of state participations. By means of this proposal, the Supervisory Board aimed to offer remuneration which, in terms of amount and structure, is such that it can attract, motivate and retain qualified and competent managers. The shareholders are expected to make a decision about the new remuneration policy in the first quarter of 2011.

Basic salaries 2010

The following basic salaries were awarded in 2010:
2010 2009

H.N.J. Smits A.G.F. Toet T. Menssen TOTAL
(amounts X € 1)

328,980 262,735 262,735 854,450

324,110 258,840 258,840 841,790

The above-mentioned amounts are inclusive of holiday pay and exclusive of employer’s insurance contributions and suchlike. Mr. Toet ceased to be an executive director on 1 January 2011.

Variable short term income (annual bonus)

Standards have been set for a number of performance criteria for determining the variable short term income. These performance criteria relate to the net result, employee satisfaction and progress at Maasvlakte 2. The reserves below are therefore cautiously based on the fulfilment of objectives.
2010 2009

H.N.J. Smits A.G.F. Toet T. Menssen TOTAL
(amounts X € 1)

32,898 39,410 39,410 111,719

32,410 25,885 25,885 84,180

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Variable long term income

The long term bonus relates to a period of four years: from the start of 2009 to the end of 2012. The maximum bonus that may be awarded is a maximum of 60% of the average fixed annual income over this period (average 15% a year). Each year, for the sake of caution the maximum amounts will be reserved pro rata, to be charged to the result. The performance criteria for the long-term bonus concern market share, sustainability, safe and efficient shipping and the development of company expenses.

2010

2009

H.N.J. Smits A.G.F. Toet T. Menssen TOTAL
(amounts X € 1)

49,347 292 39,410 89,049

48,617 38,826 38,826 126,269

Mr. Toet’s long term bonus related to the period 2009 and 2010 and was paid off in proportion to the fulfilment of objectives (€ 39,118). The provision at the end of 2009 was sufficient to cover the payment.
Pension costs and other emoluments

Executive Board members participate in the General Pension Fund for Public Employees [Algemeen Burgerlijk Pensioenfonds, ‘ABP’). The pension plan for Directors is the same as that for employees of the Port Authority under the CAO. The ABP scheme has been a career average pension scheme since 1 January 2004. The table below shows the employer’s contribution to the ABP pension premium and the fixed cost allowance in 2010.
2010 2009

H.N.J. Smits A.G.F. Toet T. Menssen TOTAL
(amounts X € 1)

96,322 60,880 70,668 227,870

66,021 49,255 52,794 168,070

The long term bonuses for the period 2005 until 2008 were paid off in 2009 for each Director. The corresponding pension charges were paid in 2010.

Total remuneration of directors
2010 2009

Basic salary variable short term income (annual bonus) variable long term income Pension charges and other emoluments TOTAL rEMuNErATION Of DIrECTOrs
(amounts X € 1)

854,450 111,719 89,049 227,870 1,283,088

841,790 84,180 126,269 168,070 1,220,309

Serverance pay

On his departure of Mr. Toet was awarded severance pay amounting to € 262,735. This amount is in accordance with the Dutch Corporate Governance Code.

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19 Related parties
All group companies and other participating interests as listed in Appendix B, as well as the Municipality of Rotterdam and the State of the Netherlands, qualify as related parties. An amount of € 31.2 million for the Municipality of Rotterdam is included in the interest charges (2009: € 36.9 million).In addition, an annual contribution of € 6.2 million (2009: € 7.2 million) to Port Infolink B.V. (Portbase) is included in other operating expenses.

20 Auditors’ expenses
The financial statements are audited by Ernst & Young Accountants. The total costs incurred against the income for 2010 are € 279,400.
2010 2009

Audit of financial statements Other audit engagements Other non-audit engagements TOTAL
(amounts X € 1)

112,972 115,254 51,174 279,400

101,625 50,085 50,180 201,890

Port of Rotterdam N.V. Rotterdam, 2 March 2010

Executive Board, Ir. Drs. H.N.J. Smits Ir. T. Menssen MBA

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Other information
21 Appropriation of net income under the Articles of Association
The provisions contained in the Articles of Association and in the Investment Agreement concluded on 2 September 2005 between the State of the Netherlands, the Municipality of Rotterdam and the Port of Rotterdam Authority, as well as the provisions laid down in this respect in the Shareholders’ Agreement between the above-mentioned parties are important for the appropriation of net income. Supplementary agreements for the appropriation of net income were made in 2009 by the three parties referred to above in the Capital Agreement of 30 January 2009 and the Settlement Agreement of March 2009. Article 3 of the Shareholders’ Agreement provides that from 1 January 2006 the shareholders will receive 4% each year on the capital they have invested, with the application of an indexation clause. Article 11.1 of the Investment Agreement sets the amount of capital paid in by the Municipality on 1 January 2006 at € 1 billion. On 23 May 2007 the State joined as a co-shareholder and paid up € 50 million in share capital (first tranche). The second tranche was a capital payment of € 450 million in 2009 by the State and the Municipality of Rotterdam, for which new shares were issued. As a result of the 2009 agreements referred to above, the issue of the new shares has changed the basis for the distribution of the dividend between the shareholders. Until the moment of issue, the dividend for each shareholder was calculated on the basis of the capital paid in by each shareholder, whereas now the distribution of shares is the decisive criterion.

22 Proposed appropriation of net income - provisional
Net income totals € 154.2 million. In accordance with the provisions laid down in the Investment Agreement and the Shareholders’ Agreement, the Capital Agreement 2009 and the Settlement Agreement, it is proposed that the following dividend be paid to the Municipality of Rotterdam and the State of the Netherlands.

Description Dividend payment to the Municipality of Rotterdam Dividend payment to the State of the Netherlands TOTAL (amounts x € 1 million) 45,2 18,6 63,8

No interim-dividend was paid during the financial year 2010.

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23 Withdrawals from/ deposits into paid-in surplus
Indemnification of guarantees affair

The Investment Agreement which was drawn up due to the entry of the State specifies that, subject to conditions, the Municipality of Rotterdam will, repay the Port of Rotterdam Authority the net costs incurred by the Port of Rotterdam Authority in relation to the guarantee affair. In this context, it was laid down that the State can be compensated for these costs in the form of a deposit into the paid-in surplus.

24 Events after the balance sheet date
No events took place after the balance sheet date that provide additional information about the actual situation on the balance sheet date.

25 Auditor’s report
The Annual Report of the Port of Rotterdam Authority has been provided with an unqualified audit report by Ernst & Young Accountants LLP This report may be found . in the Chapter ‘About the Annual Report and the Auditor’s Report’.

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Financial Statements

132

List of participating interests
Below is a list of the participating interests of the Port of Rotterdam Authority: Direct participating interests of the HBR Mainport Holding Rotterdam N.V. (MHR) Keyrail B.V. Domicile 100% 35% Shareholding Rotterdam Rotterdam

Indirect participating interests via MHR Port infolink B.V. (Portbase) Cruise Port Rotterdam B.V. Koninklijke Scheepsagentuur Dirkzwager B.V. Mainport Foreign Investments B.V. Sohar Industrial Port Company Sohar Industrial Development Company Ontwikkelingsmaatschappij Noordoever B.V. Northcoast Properties Zevenmanshaven C.V. Mainport Rotterdam Properties B.V. Mainport Project II B.V. Mainport Project III B.V. Mainport Project IV B.V. Mainport Project V B.V. Mainport Project VI B.V. MHR Commanditaire Vennoot B.V. Multicore B.V. MultiCore C.V. MHR Silent Partner B.V. RC2 C.V. RC2 B.V. Scheepvaartmaatschappij Eendracht B.V. Foundations Stichting Rotterdam Port Experience Stichting de Verkeersonderneming

Domicile 75% 100% 46% 100% 50% 50% 50% 48% 100% 100% 100% 100% 100% 100% 100% 50% 75% 100% 50% 50% 11.7% Domicile 100% 33.3%

Shareholding Rotterdam Rotterdam Maassluis Rotterdam Sohar, Oman Sohar, Oman Schiedam Schiedam Rotterdam Rotterdam Rotterdam Rotterdam Rotterdam Rotterdam Rotterdam Rotterdam Rotterdam Rotterdam Rotterdam Rotterdam Rotterdam Shareholding Rotterdam Rotterdam

The Port of Rotterdam Authority Annual report 2010

Financial Statements

133

Key figures 2010

Cockpit
Financial

Key figures Port of Rotterdam
(Amounts x € 1 million)
2010 **** Financial performance Total operating income Income from normal operations (EBIT) Net income **** Balance sheet data Group equity Long-term debts Invested capital Total assets **** Ratio’s Return on capital employed * (in %) Capital adequacy (in (%), incl. subordinated loans) Net Debt / EBITDA ** Interest coverage rate *** Operational data Investments **** Goods throughput ( x 1 mln tonnes) Number of visits by seagoing vessels Market share Hamburg – Le Havre Range Total (in %) Liquid bulk goods (in %) Dry bulk goods (in %) Containers (in %) General cargo (in %) Workforce Number of employees at year end 551 203 154 1,770 1,143 2,913 3,280 7 63 3 4 445 430 34,404 38 53 36 28 25 1,224 2009 519 196 167

1,645 1,059 2,704 3,088

8 66 3 4

341 387 33,352

37 49 33 28 25

1,239

* ** *** ****

Income from normal operations / average balance sheet total less short-term debt. Net interest-bearing debt / income before interest, depreciation and amortisation. Operating income / balance of interest income and expense. The Port of Rotterdam Authority makes use of the exemption from the obligation to consolidate the companies involved in the consolidation whose joint significance is negligible to the company as a whole.

The Port of Rotterdam Authority Annual report 2010

Key figures > Cockpit Financial

135

Financial Overview
(Amounts x € 1 million)
Consolidated from 2003;adjusted in 2004 in accordance with the Dutch Accounting. Standards Board RJ 271 (2005) Others years not consolidated ; adjusted as far as possible for comparative purposes.

2010 Balance sheet Assets Shareholder’s equity Long-term debts Capital invested Provisions and short-term debts TOTAL ASSETS Statement of income Total operating income Operating expenses Depreciation Income from participating interests Financial income and expenses NET INCOME Key figures Goods throughput ( x 1 mln tonnes) Number of calls of seagoing vessels Capital expenditures (x 1 million) Return on capital employed (in%)
* **

2009

2008

2007

2006

2005

3,280 1,770 1,143 2,913 367 3,280

3,088

2,678

2,548

2,430

2,293

1,645 1,059 2,704 384 3,088

1,080 1,102 2,183 495 2,678

1,033 1,139 2,172 376 2.,548

971 1080 2,051 378 2,430

843 1,127 1,970 323 2,293

551 235 113 6 -55 154

519 222 101 0 -52 *144

523 224 93 -1 -56 149

488 220 87 -10 -57 114

455 226 83 1 -55 *92

440 222 79 -1 -65 *73

430 34,404 445 7.0
Figures normalised

387 33,352 341 7.8

421 36,415 190 9.2

409 37,097 235 8.2

**382 35,989

370 34,954

231 135 Harbour dues 288 *7.3 revenues 249 6.6 Contract
Other revenue 214

With effect from 2007, RoRo througput in Hook of Holland and Vlaardingen is consolidated in the througput figures of Great Rotterdam. The 2006 throughput figures are thus adjusted (originally 378.2 MlN ton).

Operating income 2010
(x € 1 million euro)

Capital expenditures 2010
(x € 1 million euro)
500 450 400

Harbour dues 288 Contract revenues 249 Other revenue 214

350 300 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010

Investments in Existing Port Area 500 450 400
The Port of Rotterdam Authority Annual report 2010 Key figures > Cockpit Financial

Investments in Maasvlakte 2

350 300 250

136

20% 80% 2008

22%

5 4
78% 3

23% 77%

45 40 35 1.250
2010

22% 80% 78% 2009

23% 77% 2010

2
2009

30 25 2008 2009 2008 2010 Port of Rotterdam total Management 2009 New employees 2010

2008

2008

2009

Medium period (8 - 42 days) 16% 14% Long period (43 - 365 days) 2008 2009
16% 15%

Cockpit
1 1.000 750 500 250 0 0 2010 Short period (1 - 7 days)

Personnel- 2 years) Year (1
2008

15% 2010

Full-t

Part-t

86% 84% Target sickness absence 2009

Full-time 85% Part-time
2010

86%

84% 2009

85% 2010

Male Female

2008

Male Female

Proportion male-female
Total port of Rotterdam

Average age employees
400 350 300 250
6 5 50 4 45 3 40 2 35 1 0 30 2010 25
20%

450

Number of years of service
Number of employees

6
20% 80% 2008 22%

5 4
78%3 2

23% 77% 2010

200 150 100 50
2008 2009

50,000000 22% 45,833333

600
23% 77% 2010

500 400 300 200
2009

2009 1

0

0 2009 2010 Short period (1 - 7 days) Medium period (8 - 42 days) 16% 14% Long period (43 - 365 days) Year (1 - 2 years) 86% 84% Target sickness absence
2008 2009

< 30

30 - 39

40 - 49

50 2008- 60

> 60 2009Short period2010- 7 days) (1
Medium period (8 - 42 days) 2008 Port of Rotterdam total 2008 Management 2009 Long 2009 period (43 - 365 days)

41,666667 80% 1.250 78% 37,500000 1.000 2008 33,333333 2009 2008 750 29,166667 500 25,000000 2008 <5 6-10 11-15 250
0
14% 2010 16%

100

2010

Port of Rotterdam t 0

> 15

2009
2008

201 Managem

Management

New employ

15% 2009 2010 84% 85% 2010

15%

2010

New - 2 years) Year (1employees

Full-time
86% Part-time 2008

Target sickness absence
85%

2009

2010

Age Employees
Male
Number of employees

Male Female

Female

450 400 350 300 250 200 600 150 500 100 400 50 300 0 200 < 30 <5 30 - 39 6-10 40 - 49
200860 50 50 45 40 35 30 25 2008 2010 Management New employees 2009

Number of employees
400 350 300 250 200 150 100
2008 2008 2009 50 2009 2010 Full-time 2010 6 1.250 5 1.000 4 750 3 500 250 2 0 1 0

450

Sickness absence (in %)
6

50,000000 45,833333 41,666667 37,500000 33,333333 29,166667 25,000000 2010 6-10

5 4 3 2 1 0

> 60 2009 100 > 15 2009
2010 2008 2009 2010

<5

2008 11-15

> 15

0

2008 Port of Rotterdam total 0

Short period (1 - 7 days) Medium period (8 - 42 days) Long period (43 - 365 days) Year (1 - 2 years) Target sickness absence

20

30 - 39

40 - 49

50 - 60

> 60

Short period (1 Part-time - 7 days) Medium period (8 - 42 days) 2008 Long 2009 period (43 - 365 days)
2010

11-15

20

20

Year (1 - 2 years) Target sickness absence

Total number of employees
Total internal staff Full-time
50 Part-time 450 45 400 40 Number of managers (3- layers) 350 35 300 30 250 25 200 2008 2009 2010 Management New employees

2010 1,224 1,081 50,000000 143 45,833333
41,666667 71 37,500000 33,333333 29,166667 25,000000

2009

2008

1,239 1,093 146

1,203 1,061 142
Management

450
Havenbedrijf totaal 400

350 250 200 150 100 50 137 0

75

72

Nieuwe medewerkers 300

600 500 400
2008 2009 2010

150 100 50 0

300 200 100 30 - 39 40 - 49 0

The Port of Rotterdam Authority Annual report 2010 Port of Rotterdam total

Key figures > Cockpit Personnel

< 30 <5 6-10 11-15 > 15

50 - 60

> 60
2008

39 37 35 33 Scheepsbezoeken

14.000 12.000 10.000 8.000 6.000 4.000 2.000

39.000 37.000 35.000 33.000 31.000 29.000 27.000 25.000 2006

5:02 4:90 4:78 4:66 4:54 4:42 4:30 4:18

5,02 4,90 4,78 4,66 4,54 4,42 4,30 4,18

31 29 27 25 2006 2007 2008 2009

2010

Cockpit
0

Harbour Master

2006

2007

2008

2009

2010

2006

2007

2007

2008

2008

2009

Ship visits

2009

2010

2010

General cargo Tankers Container Others Dry bulk

Turn Around Time Rotterdam in hours

Volcontainer Overige Droge bulk

Turn Around Time and Number of ship visits
(Sea-going vessels) 40000 Scheepsbezoeken 40000 35000 30000 35000 25000 30000 20000 25000 15000 20000 10000 15000 5000 10000 0 5000 2009 2010 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Tankers Tankers Dry bulk General cargo Dry bulk Container General cargo Others Container Others 0 39.000 37.000 35.000 33.000 31.000 29.000 27.000 25.000 2006 2007 2008 2009 2010 Ship visits Turn Around Time Rotterdam in hours 5:02 4:90 4:78 4:66 4:54 4:42 4:30 4:18 90.000 86.000 82.000 78.000 74.000 70.000

Ship movements and nautical accidents
(Sea-going vessels) 230 200 170 140 110 80 2007 2008 2009 2010

number of ship visits
(Sea-going vessels)

5,02 4,90 4,78 4,66 4,54 4,42 4,30 4,18
2006

2005

2006

Ocean vessels movements Nautical accidents Nautical accident norm

2007

2008

2009

Safety & Environmental Index (SEI)
9,5 9,0 9,5 8,5 9,0 8,0 8,5 7,5 8,0 7,0 7,5 6,5 7,0 6,0 6,5 5,5 6,0 2006 2007 2008 2008 2009 2010 5,5 2006 2007 Norm Enviroment Norm Enviroment Norm Respons Norm Respons Norm Safety Norm Safety 2009 Enviroment2010 Respons Enviroment Respons Safety Safety 90.000 86.000 82.000 78.000 74.000 70.000 2006 2007 2008 2009 2010 230 200 170 140 110 80

Ocean vessels movements Nautical accidents Nautical accident norm

The Port of Rotterdam Authority Annual report 2010

Key figures > Cockpit Harbour Master

138

Cockpit
Throughput and Market share

Incoming throughput Port of Rotterdam *
(gross weight * 1,000 metric tons)

2010

2009

difference

2010/2009 (in %)

Agribulk Ore and scrap Coal Other dry bulk goods Total dry bulk Crude oil Mineral oil Other liquid bulk Total liquid bulk
TOTAL BuLK gOODs

6,817 36,444 23,278 9,090 75,630 99,548 42,704 19,655 161,906 237,536 55,025 8,123 4,671 12,794 67,819 305,355

6,867 20,184 23,665 6,442 57,158 95,676 42,241 18,070 155,987 213,145

-50 16,260 -387 2,648 18,472 3,872 463 1,585 5,919 24,391

-0,7 80,6 -1,6 41,1 32,3 4,0 1,1 8,8 3,8 11,4

Containers Roll on / roll off Other general cargo Breakbulk
TOTAL BrEAKBuLK

47,890

7,135

14,9

8,025 4,232 12,257 60,147 273,292

98 439 537 7,672 32,063

1,2 10,4 4,4 12,8 11,7

TOTAL INCOMINg ThrOughPuT

*

Figures are including throughput terminals on North bank of the river (Hook of Holland, Vlaardingen, Schiedam); these counted in 2010 for approx. 3,1% of throughput. Harbour dues are excluded from financial statements PoR because harbour dues are collected by local municipalities.

The Port of Rotterdam Authority Annual report 2010

Key figures > Cockpit Throughput and Market share

139

Outgoing throughput Port of Rotterdam *
(gross weight * 1,000 metric tons)

2010

2009

difference

2010/2009 (in %)

Agribulk Ore and scrap Coal Other dry bulk goods Total dry bulk Crude oil Mineral oil Other liquid bulk Total liquid bulk
TOTAL BuLK gOODs

1,551 3,378 802 3,229 8,960 752 34,876 11,823 47,451 56,412 57,268 8,625 2,267 10,892 68,160 124,572

1,467 3,114 1,168 3,721 9,470 742 29,949 11,412 42,103 51,573 52,390

84 264 -366 -492 -510 10 4,927 411 5,348 4,839 4,878

5.7 8.5 -31.3 -13.2 -5.4 1.4 16.4 3.6 12.7 9.4 9.3

Containers Roll on / roll off Other general cargo Breakbulk
TOTAL BrEAKBuLK

7,980 1,722 9,702 62,092 113,665

645 545 1,190 6,068 10,907

8.1 31.7 12.3 9.8 9,6

TOTAL OuTgOINg ThrOughPuT

*

Figures are including throughput terminals on North bank of the river (Hook of Holland, Vlaardingen, Schiedam); these counted in 2010 for approx. 3,1% of total throughput. Harbour dues are excluded from financial statements PoR because harbour dues are collected by local municipalities.

The Port of Rotterdam Authority Annual report 2010

Key figures > Cockpit Throughput and Market share

140

Incoming and outgoing throughput Port of Rotterdam *
(gross weight * 1,000 metric tons)

2010

2009

difference

2010/2009 (in %)

Agribulk Ore and scrap Coal Other dry bulk goods Total dry bulk Crude oil Mineral oil Other liquid bulk Total liquid bulk
TOTAL BuLK gOODs

8,369 39,823 24,080 12,319 84,590 100,300 77,579 31,478 209,358 293,948 112,293 16,748 6,938 23,686 135,979

8,334 23,298 24,833 10,163 66,628 96,418 72,190 29,482 198,090 264,718 100,280

35 16,525 -753 2,156 17,962 3,882 5,389 1,996 11,268 29,230 12,013

0.4 70.9 -3.0 21.2 27.0 4.0 7.5 6.8 5.7 11.0 12.0

Containers Roll on / roll off Other general cargo Breakbulk
TOTAL BrEAKBuLK

16,005 5,954 21,959 122,239

743 984 1,727 13,740

4.6 16.5 7.9 11.2

TOTAL INgOINg AND OuTgOINg ThrOughPuT

429,927

386,957

42,970

11.1

*

Figures are including throughput terminals on North bank of the river (Hook of Holland, Vlaardingen, Schiedam); these counted in 2010 for approx. 3,1% of total throughput. Harbour dues are excluded from financial statements PoR because harbour dues are collected by local municipalities.

The Port of Rotterdam Authority Annual report 2010

Key figures > Cockpit Throughput and Market share

141

20 30 10 20 0 10 2006 2006 2007 2007 2008 2008 2009 2010 0 2006 2006 2007 2007 2008 2008 2009 2009 2010 Liquid bulk 2010 Dry bulk Liquid bulk Containers Dry bulk Breakbulk Containers Breakbulk Nat massagoed 2009 2010 Droog massagoed Nat massagoed Containers Droog massagoed Breakbulk Containers

40 20 30 10 20 0 10 0

Market share Rotterdam in Hamburg-Le Havre range
Breakbulk (gross weight * 1,000 metric tons)

Throughput
40 35 40 rotterdam 30 35 Antwerpen 25 30 Hamburg 20 25 Amsterdam 15 20 Le Havre 10 15 Bremerhaven 5 10 Duinkerken 0 5 Zeebrugge

Growth 2009-2010 Absolute 43.0 20.6 10.8 3.9 -3.5 5.7 60 -2.3 50 4.7 40 -7.9 30 4.0 20 6.5 10
0 201085.5 Liquid bulk Dry bulk Containers Breakbulk 2006

Market share in % 2010 37.8 2009 40

2010 429.9 178.2 121.2 90.6 70.2 68.7 42.7 49.6 25.7 33.0 27.3
2006 2007 1,137.1

2009 387.0
157.6 110.4 86.7 73.7 63.0 45.0 44.9 33.6 29.0 20.8 2008 1,051.7 2009

in % 11.1 13.1 9.8 4.5 -4.7 9.0 -5.1 10.5 2007 -23.5 Rotterdam 2006 2007 13.8 Antwerp 31.3 Rotterdam Hamburg Antwerp Amsterdam 8.1 Hamburg Le Havre Amsterdam Bremerhaven Le Havre
Bremerhaven

60 50 2006 2006 2007 2007 2008 2008 40 2009 30 2009 20 10 0 2007 2008 2009 2010

2010 0 Wilhelmshaven Gent 2010 Zeeland Seaports Zeeland_Seaports Gent Gent Wilhelmshaven Zeeland_Seaports TOTAAL Zeebrugge Wilhelmshaven Duinkerken Zeebrugge Bremerhaven Duinkerken Le Havre Bremerhaven Amsterdam Le Havre Hamburg

Nat massagoed Droog massagoed Containers Breakbulk

35 36.8 40 30 15.7 15.0 35 25 10.7 10.5 30 20 8.0 8.2 25 15 6.2 7.0 20 10 6.0 6.0 15 5 3.8 4.3 10 0 4.4 4.3 2008 2009 2010 5 2.3 3.20 Dunkirk 2008 20102.8 2.9 2009 Zeebrugge Dunkirk2.0 2.4 Wilhelmshaven Zeebrugge Zeeland Seaports 100.0 100.0 Wilhelmshaven Ghent Zeeland Seaports Ghent

Market share Rotterdam of
Amsterdam Hamburg – Le Havre range Antwerpen Hamburg (Per main segment) in % Rotterdam Antwerpen 60 Rotterdam 50 40 30 20 10 0 2006 2007 2008 2009 2010 Liquid bulk Dry bulk Gent Containers Breakbulk

Movement in market share Rotterdam in Hamburg - Le Havre range
(based on total throughput in tons) in % 40 35 30 25 20 15 10 5 0 2006 2007 2008 2009 2010 Dunkirk Zeebrugge Wilhelmshaven Zeeland Seaports Ghent Rotterdam Antwerp Hamburg Amsterdam Le Havre Bremerhaven

Movement in throughput Rotterdam
(gross weight * 1,000 metric tons)

40 35 30 25 20 15 10 5 0

Proportions of goods segments
(gross weight * 1,000 metric tons) Crude oil 23,3% Mineral oil Crude oil 23,3% other liquid bulk 25,4% Mineral oil Dry bulk 19,7% other liquid bulk 25,4% Containers 26,1% Dry bulk 19,7% Breakbulk 5,5% Containers 26,1% Breakbulk 5,5%

aports

haven

rugge

erken 40 35 30 25 20 15 10 5 0 2006 2007 2008 2009 2010 Dunkirk Rotterdam

haven

Havre

rdam

mburg

erpen

rdam

Zeebrugge Antwerp The Port of Rotterdam Authority Annual report 2010 Wilhelmshaven Hamburg Amsterdam Le Havre Zeeland Seaports Ghent

Key figures > Cockpit Throughput and Market share

142

Cockpit
Critical Performance Indicator (KPI’s) 2010
TArgET CrITICAL PErfOrMANCE INDICATOr 1.1 Chain efficiency 1.1.1 Average turnaround time deepsea-containers in the port and industrial complex 1.1.2 Improvement of modal split Imposing a measurement system Road: 47,0% Rail: 14,5% Barge: 38,5% NOrM 2010 rEALIsATION q4 2010 Not achieved n.a. rEfErENCE Realisation: 2009: Road: 47% Rail: 14% Barge: 39% Paragraph 6.1

1.1.3 Average journey time A15 Ridderkerk - Maasvlakte: Percentage during rush hours that lead to a max. journey time of 38 minutes 1.2 European market leader 1.3 quality of customer portfolio 1.2.1 Market share throughput H-L-H range 1.3.1 Customer satisfaction

85,0%

measurement 1x per Paragraph 6.1 year

36,3%

37,8%

Paragraph 4.3

Formulate and execute action plan

Feedback from Paragraph 4.2 clients and fixing of points for improvements realised. Improvement actions in execution Milestones realised Paragraph 5.2

2.1 Maasvlakte 2 2.3 space outside the port and industrial complex 3.1 Optimal handling of shipping

2.1.1 Milestones Maasvlakte 2

Realisation milestones Realisation milestones

2.3.1 Milestones Alblasserdam / Dordrecht / hinterland strategy

Milestones Alblasserdam and Dordrecht realised 4:37 hour

Paragraph 6.2 / 5.3

3.1.1 Dynamic turn around time Rotterdam 3.1.2 Number of nautical accidents 3.1.3 Safety & environmental index 3.1.4 Results of inspections: Port Security Act

4:27 hour

Paragraph 3.2

120 8,3 7,2

116 8,6 7,0

Paragraph 3.3 Paragraph 3.4 Paragraph 3.6

4.1 sustainability

4.2.1 Sustainability index 4.2.2 Environmental Shipping Index

Implementation Implementation index N.v.t.

Adjusted in 2010 Index implemented

Paragraph 7.2 Paragraph 7.2

5.1 Available investment funds 6.1 Employee quality

5.1.1 Additional (financial) investment capacity 6.1.1 Commitment personnel (from MTO) 6.1.3. Sickness absence 6.1.4. Performance interviews

N.v.t.

N.v.t.

7.2 (measurement 1x per 2 years) 4.8% 90% Max. € 225 m.

7.7

Paragraph 2.6

4.6% 83% € 221 m (excl. Non-recurring buy-off small scale

Cockpit personnel Paragraph 2.6 Financial Statements

6.2 Organisational-efficiency

6.2.1 Control of operating expenses

The Port of Rotterdam Authority Annual report 2010

Key figures > Cockpit Critical Preformance Indicator (KPI’s) 2010

143

Notes to the KPI’s
In this outline 18 of PoR’s 23 KPI’s are included. Five KPI’s are excluded because they are not applicable anymore or they are commercially confidential.

Policies quantitative KPI’s

1.1.2

Modal split: The modal split calculation is based on the received information of ship brokers and terminal operators located on Maasvlakte 1. The modal split provides information concerning the proportion of transported containers from and to Maasvlakte 1 by road, water and road. The data of 2010 is available from half 2011. Average journey time A15 – Ridderkerk – Maasvlakte: percentage rush hours in which the maximum journey time is 38 minutes. This information is received form the Verkeersonderneming and Directorate-General of Public Works and Water Management. The information is not yet available by publication of this Annual Report. Market share throughput Hamburg-Le Havre (HLH)-range The market share is calculated based on throughput figures of ports in the Hamburg – Le Havre Range. The figures are received quarterly from the applicable port companies. Dynamic turn around time Rotterdam Average sailing time of sea-going vessels larger than 150m from sea (6 miles zone border) to various port basins (quay walls / jetties) in the region Europoort, Botlek and City (combined) and vice versa. The data is extracted from the port control system IVS.. Number of nautical accidents A nautical accident is an unwanted event for a ship during the journey. A distinction is made between nautical accidents, significant nautical accidents and so-called near miss situations. The accidents are recorded in a database based on various journals and information received from third parties. Safety & Environment index The Harbour Master uses the Safety Environment Index (SEI) to measure the level of compliance with rules on safety and the environment on board ocean and other vessels. The measurement is based on the findings during on-board inspections and the systematic checking of compliance with statutory administrative reporting obligations by shipping companies and agents. Inspection results of the Port Security Act The security level is the average assessment on the ISPS inspections Employee satisfaction (from the employee satisfaction survey) We conduct an employee satisfaction survey every two years. The final results are based an average of the overall employee satisfaction score. Absenteeism The absenteeism is based on the total days of illness compared to the work related days. The information on absenteeism is registered in our ERP-system and an annual report is generated from this.

1.1.3

1.2.1

3.1.1

3.1.2

3.1.3

3.1.4

6.1.1

6.1.3

The Port of Rotterdam Authority Annual report 2010

Key figures > Cockpit Critical Preformance Indicator (KPI’s) 2010

144

6.1.4

Performance interviews The percentage performance interviews are based on the total performance interviews in 2010 compared to the average number of employees. This information is also registered in the ERP-system. Controlling operating expenses The operating expenses are derived from the Financial Statements. It concerns operating expenses excluded for depreciation and amortisation.

6.2.1

The Port of Rotterdam Authority Annual report 2010

Key figures > Cockpit Critical Preformance Indicator (KPI’s) 2010

145

About the Annual Report
Integrated Annual Report
The traditional report of the Executive Board, the Financial Statements and the Corporate Social Responsibility Report have been integrated into one single report: the Annual Report 2010. The introduction of the report contains the scope of the integrated report. In this section, we explain the subject selection in the report and the quality assurance. In addition, a more detailed explanation of the reporting policies is provided.

Selection of subjects
The Annual Report focuses on our administration, the performance related to the legislative duties of the Harbour Master and the performance and developments within the strategic focus areas: Customer, Area and Space, Traffic and Accessibility and Environment and Sustainability. The Port of Rotterdam Authority reports on its own efforts related to the strategic focus areas and the effects of these efforts on stakeholders in the port area and the (logistics) chain. The dialogues with stakeholders are an important source of information with regard to our perceived expectations. This is the reason why the dialogue determines the content of this Annual Report. The feedback received from stakeholders provides input for our (CSR) priorities and reporting. The dialogue is an important component in our day-to-day business. The Port of Rotterdam Authority is thoroughly aware of the importance of a pro-active stakeholder approach for public support and as part of our daily operations. The efforts related to this dialogue are described in paragraph 7.4. In addition to the results of the dialogue with stakeholders, we compiled the content of the report on the basis of strategy, strategic focus areas, feedback on the Annual Report 2009 and by surveying the key subjects of the corporate social responsibility report. The most important subjects in 2010 are listed below.
Subjects related to the Port of Rotterdam Authority’s administration

• • • • • •

Helicopter crash during Tour du Port. Solid financial basis, necessary for the investments in Maasvlakte 2 and the existing port area. New traffic coordination centre, for a more efficient control of the ever increasing shipping in the port of Rotterdam. Personnel changes in the top management of the organisation The new Business Plan for the period 2011-2015. Support for our operational activities

The Port of Rotterdam Authority Annual report 2010

Appendix > About the Annual Report

147

Subjects related to the activities in the port area and the chain

• • • • • • • • • •

Quick recovery of the throughput of goods. Developments in the market share. Substantial investments in Maasvlakte 2 for the purpose of creating space for growth for the development of the port. Investments to intensify the existing port area for the efficient use of the existing port terrains. Accessibility of the port by road, rail and water. Rotterdam Energy Port, to provide room for the increasing energy need and simultaneously pay attention to the environment Collaboration with other ports European Ship Index, aimed at rewarding the cleanest vessels with the objective of reducing the emissions of NOx, SOx, airborne solid particles and, in time, CO2. Shore-based power for inland shipping Port Vision In accordance with last year’s report we share various performance indicators related to 2010 by which we measure the performance of our own administration, including market share, throughput figures, CO2 emissions, modal split, journey time by road, nautical accidents, Safety & Environmental Index and various key figures. Key figures are placed, if possible, in a long term perspective.

Reporting policies
The Annual Report has been drawn up with due observance of the statutory provisions of Title 9, Book 2 of the Dutch Civil Code, the Annual Reporting Guidelines and the G3 Guideline of the Global Reporting Initiative (GRI). The GRI performance-indicators are only partly relevant for our organisation, due to the nature of business of the Port of Rotterdam Authority as service provider and upholder of regulations and the special role in the chain. This is reflected by the chosen subjects and is further explained in the GRI table in appendix IV. The table refers to the page that contains an explanation of the indicator. Some indicators are explained in other publications. Moreover, we use some indicators to explain why we believe they are not important or why information is not available. The definition of the reporting policies remained unchanged compared to last year. We compare quantitative information whenever possible. The reporting policies for the most important CPIs are included in the cockpit Critical Performance Indicators (CPIs) 2010.

Quality of the Annual Report
In order to achieve the desired quality, we intensively collaborated with a large number of employees in projects. Furthermore, our auditors examined the Annual Report and we had the application level of the reporting policies for corporate social responsibility reporting externally assessed. The project group for the Annual Report 2010 consisted of a supervisory group and a project team. The supervisory group was led by the CFO and the project team was led by the Manager Corporate Finance & Control. The project team consisted of employees of the departments: Corporate Finance & Control, Corporate Communication Strategy, Corporate Strategy and Internal Audit. Experts throughout the organisation wrote the individual texts after subject selection by the project team. Afterwards, Corporate Finance & Control edited the texts and combined them. Internal Audit checked the texts in respect of their correctness, completeness and relevance during the project. The consistency between the Financial Statements and the texts was checked by Corporate Finance & Control. Corporate Communication Strategy (Digital Media) is responsible for the on-line version and the PDFpublication of the report.
148

The Port of Rotterdam Authority Annual report 2010

Appendix > About the Annual Report

• • •

We engaged our auditors to give assurance in respect of the Annual Report. The Annual Report was classified into three categories within the scope of this assignment: The Report: Report of the Port of Rotterdam Authority, Key Figures and cases (Cases are only available digitally). The Financial Statements. Other information: Foreword of the Executive Board, Introduction, Appendices and the Report of the Supervisory Board. The Report and the Financial Statements are assessed by the auditors, with the exception of information about future developments. In addition to the auditor’s report, the Global Reporting Initiative (GRI) tested the level of application of the G3-guidelines. The application level of the Report of the Port of Rotterdam Authority fulfil the requirements of A+. The GRI is a nongovernmental organisation that develops global standards for annual CSR reporting.

Future-oriented information
In this Annual Report, we report our efforts and our achievement of objectives in 2010. In addition, we have provided our plans and vision for the future. This futureoriented information can be recognised by words such as: aim, expect, would like, consider, continuation, predict, target, objective, scenario, plan, vision, planning, ambition, intention and prediction. Future expectations are subject to risks and insecurities. That is the reason the auditor cannot provide any assurance concerning future-oriented information.

The Port of Rotterdam Authority Annual report 2010

Appendix > About the Annual Report

149

Ap pendix

Appendix I
Personal details of the Supervisory Board as of 2 March 2011
The Supervisory Board currently consists of the following five members.
A.J. (Ad) Scheepbouwer
Year of birth Nationality

1944 Dutch Member of the Supervisory Board of the Port of Rotterdam Authority since 06-09-2005. President of the Supervisory Board since 01-01-2006

Appointed

Committees Present position/Experience Additional functions

Member of the Remuneration Committee Chairman of the Board of management and CEO Royal KPN N.V.

• • • •

Chairman of the Supervisory Board Maasstad Ziekenhuis Member of the Supervisory Board and investor in RFS Holland Holding B.V. Zwolle Member of the Advisory Board ECP .NL Member of the Supervisory Board of Bank Oyens & van Eeghen N.V.

Drs. R.J.N. (Rob) Abrahamsen
Year of birth Nationality

1938 Dutch Member of the Supervisory Board of the Port of Rotterdam Authority since 01-01-2004. Vice-president of the Supervisory Board of the Port of Rotterdam Authority Chairman of the Audit Committee Former Managing Director and CFO of KLM Royal Dutch Airlines

Appointed

Committees Present position/Experience Additional functions

• • • • • • • •

Member of the Supervisory Board of PON Holdings B.V. (until July 1, 2010) Member of the Supervisory Board of Fluor Daniel B.V. Member of the Supervisory Board of TNT Post Group Member of the Supervisory Board of ANP Chairman of the Supervisory Board of Optimix Vermogensbeheer N.V. Member of the Supervisory Board of Koninklijke BAM Groep N.V. (until July 1, 2010) Member of the Supervisory Board of Vitens N.V. (until July 1, 2010) Member of the Supervisory Board of N.V. Bank Nederlandse Gemeenten (BNG)

The Port of Rotterdam Authority Annual report 2010

Appendix I

154

R.P .M. (Rutger) van Slobbe
Year of birth Nationality

1952 Dutch Member of the Supervisory Board of the Port of Rotterdam Authority since 1-1-2006 Member of the Audit Committee Former member of the Executive Board of Royal P&O Nedlloyd N.V.

Appointed Committees Present postion / Experience Additional functions

• • • • • •

Non-Executive member Board of Directors Dockwise Ltd Member of the Supervisory Board Royal Netherlands Sea Rescue Institution Member Board of Directors Shipping and Transport College (STC) Member of the Supervisory Board MPC Shipping & Logistics B.V. Member of the Supervisory Board Eendracht B.V. Partner Oxalis Cooperatie U.A.

Ir. J.M. (Mel) Kroon MBA
Year of birth Nationality

1957 Dutch Member of the Supervisory Board of the Port of Rotterdam Authority since 22-6-2005 Member of the Audit Commitee Chairman of the Board of Tennet B.V.

Appointed Committees Present postion / Experience Additional functions

• • • • • • • • •

Member of the Supervisory Board, Port of Rotterdam Authority since 22-06-2005 / Member of the Audit Committee Member of the Supervisory Board, Diamond Tools Group N.V. Member of the Supervisory Board, APX B.V. Chairman of the Supervisory Board, NOVEC B.V. Member of the Executive Board, Belpex S.A. Member Comité d’Administration Powernext S.A. Verwaltungsrat Transpower GmbH Member of the Supervisory Board, HTM Personenvervoer N.V. Vorsitzender Aufsichtrat Transpower GmbH

Drs. R.M. (René) Smit
Year of birth Nationality

1959 Dutch Member of the Supervisory Board of the Port of Rotterdam Authority since 01-07-2007 Chairman of the Renumeration Committee Chairman of the Executive Board of VU University Amsterdam

Appointed Committees Present postion / Experience Additional functions

• • •
The Port of Rotterdam Authority Annual report 2010

Member of the Non-Executive Board Kloosterboer Groep B.V. Member of the Innovation Platform (until 21-06-2010) Chairman Supervisory Board Rotterdam Philharmonisch Orkest (since 01-09-2010)
Appendix I

155

Members Executive Board
The Executive Board consists of three members.

Ir. drs. H.N.J. (Hans) Smits
Date of birth Nationality

13-03-1950 Dutch President & Chief Executive Officer (CEO) since 01-01-2005 01-01-2013 Former general manager Arthur D. Little Nederland

Appointed End of present term Former position Additional functions

• • • • • • • • • • • •

Member Supervisory Board Sohar Industrial Port Company SAOC (SIPC) Member Supervisory Board KLM Nederland N.V. Chairman Supervisory Board Jansen de Jong Groep C hairman Programme Board ‘Pieken in de Delta’ voor de Zuidvleugel (Peaks in the Delta for the South Wing) Chairman Supervisory Board Stichting de Ombudsman (The Ombudsman Foundation) Chairman Advisory Board Arthur D. Little Benelux N.V. Chairman Management Ronald McDonald Huis Sophia Rotterdam Member International Advisory Board (IAB) - Municipality Rotterdam Member Advisory Board Rotterdam Airport Member of the Commission on Reduction administrative costs Member Economic Development Board Rotterdam (EDBR) Advisor 8 Miles Fund

Ir. T. (Thessa) Menssen MBA
Date of birth Nationality

04-05-1967 Dutch Executive Vice President & Chief Financial Officer (CFO) since15-03-2006 1-1-2011 Former Finance Director of Unilever Nederland Home and Personal Care (2005-2006)

Appointed End of present term Former position

Additional functions

• • • •

Member Supervisory Board Maritiem Museum Member Supervisory Board Rotterdam Philharmonisch Orkest Member of the Supervisory Board of Vitens N.V. Member of the Audit Committee Ministry of Education, Culture and Science

The Port of Rotterdam Authority Annual report 2010

Appendix I

156

Ing. A.G.F. (André) Toet
Date of birth Nationality

05-08-1963 Nederlandse Senior Executive Vice President & Chief Operating Officer (COO) since 01-01-2008 01-01-2011 Former CEO Maersk Central Europe

Appointed End of present term Former position Additional functions

• • • • • • •

Chairman Supervisory Board Portbase B.V. Member Advisory Board Maritime Economics and Logistics (MEL) Erasmus University Chairman Policy Board Cruise Rotterdam B.V. Member Nationale Havenraad (National Ports Council) Member Board Nederland Maritiem Land Member Supervisory Board Keyrail Chairman Stichting garantiefonds Zeelieden

The Port of Rotterdam Authority Annual report 2010

Appendix I

157

Appendix II
Flowchart of the port and industrial complex
TOTAL IMPORTS ROTTERDAM DRY BULK LIQUID BULK CONTAINERS OTHER GENERAL CARGO RO/RO PROCESSING IN THE PORT AND INDUSTRIAL COMPLEX IMPORT BULK GOODS IMPORT CONTAINERS ONWARD TRANSPORT AFTER PROCESSING IN PORT AND INDUSTRIAL COMPLEX CHEMICALS PETROL, DIESEL, KEROSENE, PETCOKES DIRECT ONWARD TRANSPORT TO HINTERLAND

added value in the port and industrial complex
REFINING DISTILLATION CAPACITY CRUDE OIL

ENERGY AND GASSES SEA-SEA TRANSSHIPMENT DRY BULK LIQUID BULK CONTAINERS CHEMICALS AND BIOFUELS

GENERATION USING COAL, GAS, WASTE, WIND

POWER & GAS SUPPLIED TO GRID

MORE THAN 40 BUSINESSES

OTHER INDUSTRY AND LOGISTIC ACTIVITIES

3 DISTRIPARKS MORE THAN 80 BUSINESSES INCL. SHIPBUILDING, AGRO-INDUSTRY AND METAL INDUSTRY

TOTAL EXPORT FROM ROTTERDAM DRY BULK LIQUID BULK CONTAINERS OTHER GENERAL CARGO RO/RO

EXPORT AFTER PROCESSING OIL- AND CHEMICAL PRODUCTS

SUPPLY FROM HINTERLAND FOR PROCESSING INCL. BY PIPELINE FROM ANTWERP

DIRECT ONWARD TRANSPORT FROM HINTERLAND

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Appendix III
Explanatory list of abbreviations, names and terms
ABBrEvIATIONs ABBrEvIATION A B C D E BCTN BTT CCS COSO DINALOG EMO ESI ERP ESPO G H I K L M Gate GRI HOI Binnenlandse (inland) Container Terminal Nederland Botlek Tank Terminal Carbon Capture Storage Committee of Sponsoring Organizations Dutch Institute for Advanced Logistics Europees Massagoed- Overslagbedrijf Environmental Ship Index Enterprise Resource Planning European Sea Ports Organisation Gas Access To Europe Global Reporting Initiative Port waste processing- installation (Havenontvangstinstallatie) International Ship and Port facility Security Knowledge infrastructure Mainport Rotterdam (Kennisinfrastructuur Mainport Rotterdam) Liquified Natural Gas Environmental impact study (Milieu Effecten Rapportage) Monitoring and Evaluation Programme Marine Pollution Non governmental organisation Organic CO2 for assimilation by plants Port Community System Programma Hoogfrequent Spoorvervoer Core urban planning decisions Project Mainport Rotterdam (Planologische Kern Beslissing / Project Mainportontwikkeling Rotterdam) Projects IN Controlled Environments 2 (Carbon captures and storage) Rotterdam Opslag en Afvang Demonstratieproject Roll-on/roll-off Rotterdam World Gateway Shipping waste decree (Scheepsafvalstoffenbesluit) Safety and Environmental Index Turn Around Time Trans-European Networks Twenty-foot Equivalent Unit Ultra Large Container Carrier Prevention of pollution from ships Act (Wet Voorkoming Verontreiniging door Schepen) EXPLANATION

ISPS KMR

LNG MER

MEP MARPOL N O P NGO OCAP PCS PHS PKB/PMR

PRINCE2 R ROAD

Roro RWG S T SAV SEI TAT TEN TEU U W ULCC WVVS

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DEfINITIONs DEfINITION EXPLANATION

A

Abengoa

Spanish bio-ethanol manufacturer building a large factory in the port of Rotterdam area.

B

BREAAM-NL

Methodology to assess the sustainable performance of buildings. Goods that are not shipped apart (such as containers, parcels) but separately in the hold of the ship (f.e. crude oil, coal, iron ore, grain). Another commonly used term for bulk goods is bulk cargo.

Bulk goods

C

Capture Ready Carbon Capture Storage (CCS)

Ready / suitable to capture CO2. Technique by which CO2 is captured and stored underground, preventing it from reaching the atmosphere. Treaty / convention. Cooperation treaty between several European economic regions in which is investigated how to optimise the rail traffic between Rotterdam and Genoa. Pipeline that can be utilised by multiple customers.

Charter Code 24

Common carrier pipeline

Corridor

Area between two (or more) territories or “main ports” that facilitate traffic of goods or people.

Committee of Sponsoring Organisations of the Treadway Commission (COSO)

Committee consisting of several private organisations that impose policies concerning internal audit and internal control as a result of some accounting and fraud scandals in 1992. Collisions are nautical accidents between ships and other (navigable) objects. Management model developed by COSO aimed at internal audit and internal control.

Collision

COSO-model

D

Dry bulk goods

Tangible goods transported in bulk form such as iron ore, coal and grain.

E

European company for Bulk goods and Throughput (Europees Massagoed- Overslagbedrijf (EMO))

Largest dry bulk terminal in Europe that has been located at the Maasvlakte Rotterdam since 1973. EMO is specialised in the handling and storage of iron ore and coal from all parts of the world. Name for the growth concept in the segment ‘gas & power’. This encompasses sustainable energy and the handling of energy coal, LNG (liquefied natural gas) and bio mass. The extension of wind energy and CCS fits in this growth concept.

Energy Port

Enterprise Resource Planning (ERP)

Computer software to support all processes within the organisation in which all data is stored in a single database preventing double entry of data

Environmental Ship Index

Index that reflects the environmental performance of ships with respect to air pollution (NOx en SOx) and CO2.

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DEfINITIONs

F

Feeder

Container vessel that transports goods by order of other vessels to other container ports.

G

Gate terminal

Gas Access To Europe: import terminal located at the Maasvlakte for liquefied natural gas (LNG). gateway. Ship type that transports both general cargo and bulk goods (bulk cargo).

Gateway General cargo schip

Global Reporting Initiative

UN-principles that aim to improve human rights, labour conditions and the environment.

Global Compact

Non-governmental organisation developing worldwide unified standards for corporate social responsibility.

H

Port waste-processing installations (HOI)

Locations in the port area suitable for the garbage processing of ships Mainport, centre.

Hub I

International Ship and Port facility Security

Security of ships and port waste-processing installations against terrorist attacks

K

Knowledge infrastructure Mainport Rotterdam (KMR)

Cooperation treaty of the regional business community (port and industry), regional educational facilities and local administrations. The foundation KMR aims to enhance the economic structure through innovation in knowledge infrastructure.

L

Liquefied Natural Gas LMC Secondary education

Gas shipped in a liquefied form Foundation that offers inter-confessional and innovative education in Rotterdam and the region

M

MARPOL

Marine Pollution: The MARPOL-treaty is an international treaty to prevent ship pollution. The treaty consists of regulations with respect to oil discharge, sanitary and household garbage and the discharge of chemicals by ships.

Environmental Impact Study (MER)

Public document in which the environmental effects of intended activities and alternatives are described.

Monitoring and Evaluation Programme (MEP)

Programme that is used to check the assumptions and predictions of the MER. Shift of transport by road to the cleaner modalities water, rail and pipeline. Proportion between transportation by road, rail and water.

Modal shift

Modal split

N

Liquid bulk

Liquid bulk goods such as crude oil and liquefied natural gas Unwanted events for ships during the journey. A distinction is made between nautical accidents, significant nautical accidents and so-called near miss situations Social organisation that operates independently with regards to the government

Nautical accident

Non Governmental Organisation (NGO)

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DEfINITIONs

O

OCAP

Joint Venture between gas supplier Linde Gas and Construction company VolkerWessels that provides clean CO2 inter alia to greenhouses in the Westland Pipelines accessible for all market parties

Open access pipelines P

Peaks in the Delta (Pieken in de Delta)

Programme in which the Dutch State and regions collaborate to enhance the economy in six regions (a.o. South-wing Randstad) Facility for testing and demonstrating sustainable process-technology Governmental decision concerning the construction of Maasvlakte 2 and the realisation of 750 ha. recreational area for the Rotterdam region Structured technique for project management. This method aims at management, governance and organisation of a project

Plant One

PKB/PMR: Core urban planning decisions Project Mainport Rotterdam (Planologische Kern Beslissing Project Mainportontwikkeling) Prince 2

Port Project Services

Platform of United Homes (temporarily housing) with temporary personnel organisation Randstad, Vipre (collective transport) and Aqualliner. It serves as focal point for organisations in order to find temporary personnel, housing and transport from and to the Maasvlakte.

R

Roro of roll-on/roll-off:

Horizontal transportation of rolling equipment that can drive in and out of the ship (such as cars). Terminal operator that will operate the first container terminal on the Maasvlakte in 2013.

Rotterdam World Gateway

S

Safety and Environmental Index

Index by which the Harbour Master measures to what extent all regulations related to safety and environment are carried out. Direct CO2 emissions of the Port of Rotterdam Authority Indirect CO2 emissions from energy production demanded by the Port of Rotterdam Authority. Other indirect CO2 emissions. Location where ships can depart, moor and load or unload. Transport of goods that occur at least partly by sea or ocean. Ocean’s are not crossed though.

Scope 1 emission

Scope 2 emission

Scope 3 emission Shipping terminal

Shortsea

Steam pipe

Project in the Botlek area for the exchange of steam between companies by using a transport pipeline resulting in savings in energy consumption.

General cargo

Goods in which the quantity is leading above measure or weight in contrast to bulk cargo or bulk goods. General cargo is transported in boxes, crates, barrels or bags. Supply chain.

Supply chain

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DEfINITIONs

T

Trans-European Networks

Infrastructure across borders (such as the Betuwelijn). Measurement unit for the capacity of container vessels or container terminals. 1 TEU is equivalent to a twenty-foot container.

TEU of "Twenty-foot Equivalent Unit"

Turn Around Time (TAT)

Average sailing time of sea-going vessels larger than 150m from sea to various port basins in the region Europoort, Botlek and City and vice versa. Journeys within the port and continuing journeys is not accounted for

U

Ultra Large Container Carrier (ULCC)

Ultra large container vessel

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Appendix IV

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G3-Guideline Global Reporting Initiative
This table contains the criteria from the G3-Guideline of the Global Reporting Initiative. For each guideline there is an indication of the public communication, issued by the Port of Rotterdam Authority, in which information is disclosed. Furthermore, a brief explanation of the information is give. Some issues from the Guideline are not or less relevant for the Port of Rotterdam Authority or are not disclosed in public communications. If possible the reasons for non-disclosure are given.
Not reported in public communications

Some indicators are not reported in public communications, even though the indicators are relevant and available. The reason for not publishing these indicators is that it is evident that there is no internal or external need for them. We estimate that the relevance of a number of indicators to our business activities is low or zero. For this reason, we do not report these indicators in public communications. As far as possible, this table provides an explanation of this. We estimate that the relevance of a number of indicators to our business activities in 2010 was low or zero. For this reason, we do not report these indicators in public communications. As far as possible, this table provides an explanation of this.

Not or less relevant to the Port of Rotterdam Authority

Not or less relevant to the Port of Rotterdam Authority in 2010

grI INDICATOr

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BrIEf EXPLANATION

PrOfIEL 1. 1.1 sTrATEgy & ANALysIs Statement from the most senior decisionmaker in the organisation (e.g. CEO, chair, or equivalent senior position) about the relevance of sustainability to the organisation and its strategy. 2.3 Corporate Social Responsibility Management approach [22] In 2006, when introducing the CSR policy and ambition, the Executive Board also produced an official CSR statement. Sustainability is an important element of the strategic point for attention ‘Environment and Sustainability’. Ensuring sustainability affects production chains and transport throughout the world. The Port of Rotterdam Authority manages the risks by managing the strategic, operational, financial reporting and compliance risks. Sustainability as a licence to grow for a harbour that wants to develop.

2.2

Mission, vision and strategy [21]

1.2

Description of key impacts, risks and opportunities

7.2

Sustainability [76]

2.5

Corporate Governance - Risk management [26]

7.1

Foreword of the Executive Board [8] Environment and sustainability in brief [75]

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2. 2.1 2.2

OrgANIsATIONAL PrOfILE Name of the organisation Primary brands, products, and services Colophon [182] 2.1 The Port of Rotterdam Authority in brief [19] Havenbedrijf Rotterdam N.V. The Port of Rotterdam Authority manages, operates and develops the port and industrial area of Rotterdam. Brand names and products are not applicable. List of participating interests

2.3

Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint ventures.

2.7

Participating interests [33 - 35] Financial Statements 2010 - List of participating interests [129]”

2.4

Location of organisation’s headquarters

Colophon [182]

World Port Center Wilhelminakade 909 3072AP ROTTERDAM The Port of Rotterdam Authority operates mainly in the Netherlands, but also in Oman.

2.5

Number of countries where the organiszation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

2.7

Participating interests [33 - 35]

2.3

Corporate Social Responsibility - Committed [23] In addition to the port activities in The Netherlands and Oman, we participate in a sustainability project in Senegal where our employees’ knowledge and skills is offered to develop a port. Organisation [25] The Port of Rotterdam Authority is a public limited company with two shareholders: the Municipality of Rotterdam and the State of the Netherlands. The Port Authority lets out port sites to companies, particularly storage companies and cargo terminals and the chemical and petrochemical industry, including energy producers. The flows of goods handled in the port of Rotterdam are reported, together with their destination. Financial figures. Financial figures. Financial figures. Number of employees. No significant changes occured in 2010.

2.6

Nature of ownership and legal form

2.4

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

2.1 4.2

The Port of Rotterdam Authority in brief [19] Our relationship with the customer [49]

4.3

Our market position [51 - 52]

2.8

Scale of the organisation

8

Finance [92 - 98] Financial Statements 2010 [105 - 133] Cockpit Finance [135 - 136] Cockpit Personnel [137]

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

Not or less relevant to the Port of Rotterdam Authority in 2010

2.10 Awards received during the reporting period

www.portofrotterdam.com

The Port of Rotterdam Authority presents awards each year to companies in the port, such as the Port Dues Award and the Port Image Award. http://www.portofrotterdam.com/nl/actueel/ pers-en-nieuwsberichten/Pages/20100128_03.aspx

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3.

rEPOrT PArAMETErs

report profile 3.1 Reporting period (e.g. fiscal/calendar year) for information provided. Financial Statements 2010 [105 - 133] The financial year of the Port of Rotterdam Authority runs from 1 January to 31 December.

3.2

Date of most recent previous report (if any).

www.portofrotterdam.com

Annual Report 2009 (2 March 2010). A single annual report for financial and CSR reports. www.portofrotterdam.com/en/Port-authority/finance/ Pages/yearly-result.aspx” Annually.

3.3

Reporting cycle (annual, biennial, etc.)

Introduction [11]

3.4

Contact point for questions regarding the report

Colophon [182]

e-mail and other contact details.

www.portofrotterdam.com

Reply form. www.portofrotterdam.com/en/general/ Pages/contact.aspx

report scope and boundary 3.5 Process for defining report content About the Annual Report and Auditor's Report [144 - 149] Introduction [11] About the Annual Report and Auditor’s Report [144 - 149] Development of the process, including internal and external assurance. Scope and significance is explained in the Introduction. The boundary of items is explained in About the Annual Report and Auditor's Report.

3.6

Boundary of the report

3.7

State any specific limitations on the scope or boundary of the report.

Introduction [11] About the Annual Report and Auditor’s Report [144 - 149]

Scope and significance is explained in the Introduction. The boundary of items is explained in About the Annual Report and Auditor's Report.

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations.

Financial Statements 2010 [105 - 133] About the Annual Report and Auditor’s Report [144 - 149]

See notes to the balance sheet and the statement of income and the explanation in About the Report.

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

About the Annual Report and Auditor’s Report [144 - 152]

All the figures have been substantiated internally and verified by an external auditor. The accounting policy is explained in the annual report 2010 (Accounting policy) and the KPIs are explained in the Cockit Critical Performance Indicators KPIs 2010. No significant changes occured in 2010.

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

Not or less relevant to the Port of Rotterdam Authority in 2010

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Not or less relevant to the Port of Rotterdam Authority in 2010

No significant changes occured in 2010.

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grI content index 3.12 Table identifying the location of the Standard Disclosures in the report. Appendix IV [164 - 181] GRI table

Assurance 3.13 Policy and current practice with regard to seeking external assurance for the report. About the Annual Report and Auditor’s Report [147 - 149] About the Annual Report and Auditor’s Report [150 - 152] Development of the process including internal and external assurance. Auditor’s report

4.

gOvErNANCE, COMMITMENTs & ENgAgEMENT

governance 4.1 Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organisational oversight. 2.4 Organisation [25] Reference to the organisational chart and explanation by the Executive and Supervisory Reference to the regulations of the Executive and Supervisory Boards on www.portofrotterdam.com

2.5

Corporate Governance Corporate Governance Code [26]

4.2

Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organisation’s management and the reasons for this arrangement). For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

2.4

Organisation - Structure [25]

The Chairman of the Supervisory Board has no executive function within the company.

4.3

2.4

Organisation - Structure [25]

The Rotterdam Port Authority has a two-tier board structure.

4.4

2.4

Organisation - Structure [25]

The shareholders exercise their influence on the company through the General Meeting of Shareholders. The authority of the General Meeting of Shareholders is laid down by law and in the articles of association. A Works Council operates within the Port Authority in accordance with the Works Councils Act.

2.4

Organisation - Structure [25]

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organisation’s performance (including social and environmental performance).

Financial statements 2010 18 Remuneration of Directors [127 - 129]

Remuneration of supervisory directors and executive directors.

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

2.5

Corporate Governance - Corporate Governance Code [26]

Although the Port Authority is not a listed company, we have decided where possible and meaningful to implement the provisions of the Corporate Governance Code. The independent Supervisory Board monitors the Executive Board. This is stated in the regulations of the Executive and Supervisory Boards, see http://www. portofrotterdam.com/en/Port-authority/organisation/ Pages/corporate-governance.aspx

2.4

Organisation - Structure [25]

4.7

Process for determining the required qualifications and expertise of the members of the highest governance body so it is able to guide the organisation’s strategy on economic, environmental, and social topics.

2.5

Corporate Governance Corporate Governance Code [26]

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4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

2.2

Mission, vision and strategy [20]

The Port of Rotterdam Authority has formulated a mission and four strategic points of attention to achieve its mission. CSR statement.

2.3

Corporate Social Responsibility Management approach [22] Organisation Core values and business code [25]

2.4

Since 2010, the Port of Rotterdam Authority has subscribed to the 10 'United Nations business principles' issued by UN Global Compact. In 2010, the Port of Rotterdam Authority stated four new core values, these values will be integrated in the company code in 2011. Consistency in issues concerning sustainability

2.4

Organisation Core values and business code [25]

7.2

Sustainability - Introduction [76]

4.9

Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

2.5

Corporate Governance Corporate Governance Code [26]

Although the Port of Rotterdam Authority is not a listed company, we have chosen where possible and meaningful to implement the provisions of the Corporate Governance Code. In management reports and decisions made by the Executive Board structual attention is given to our sustainability goals and sustainability performance. We control the risks by managing the strategic, operational, financial reporting and compliance risks. Regulation Supervisory Bord section D (Remuneration) http://www.portofrotterdam.com/nl/ Havenbedrijf/organisatie/Documents/Raad-vanCommissarissen-reglement.pdf

2.3

Corporate Social Responsibility Sustainable [22 -23]

2.5

Corporate Governance Risk Management [26 - 29]

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

www.portofrotterdam.com

Commitments to external initiatives 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation. www.maasvlakte2.com (projectorganisatie van Havenbedrijf Rotterdam) At various places on the Maasvlakte 2 website the results from the dialogue with stakeholders are stated. Preliminary to the construction of Maasvlakte 2, this dialogue devoted extensive attention to the economic, social and environmental effects of the construction. The Port Authority is partner of the Rotterdam Climate Initiative which forms part of the C40 Climate Leadership Group / Clinton Climate Initiative. The Port Authority is a member of and provides the chairman of the ESPO.

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives which the organisation subscribes to or endorses. 4.13 Memberships in associations (such as industry associations) and/or national/ international advocacy organisations.

7.3

Rotterdam Climate Initiative [83 - 84]

7.4

Dialogue - Dialogue with Europe [86]

Overleg met belanghebbenden 4.14 List of stakeholder groups with whom the organisation is engaged. 7.4 Dialogue - Dialogue with stakeholders [85] As stated The Port Authority distinguishes groups of stakeholders: clients, employees, governmental bodies (State, province and municipalities), local residents, sector associations and NGOs. Stakeholders are defined as people and organisations who affect our activities and who are being affected by our activities.

4.15 Basis for identification and selection of stakeholders with whom to engage.

7.4

Dialogue - Dialogue with stakeholders [85]

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4.16 Approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

7.4

Dialogue - Dialogue with stakeholders [85]

Paragraph 7.4 contains a description of the various ways in which the Rotterdam Port Authority leads the dialogue with its stakeholders. The dialogue is a part of our business and takes place on a frequent base. Examples of these dialogues are: the annual shareholders meeting, the customers satisfaction survey which takes place every two years (4.2 Our relationship with our customers [49]) Employees satisfaction survey (2.6 Employees [31]), an evaluation of the Annual Report 2009 amongst 16 readers (customers, banks, governmental organisations) and the '(Dial)moog op de haven', in which four times a year members of the Executive Board hold discussions with companies in the

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting.

Sustainable dialogue Maasvlakte 2 At various places on the Maasvlakte 2 website the http://www.maasvlakte2.com/nl/index/show/id/79/ results of dialogues with stakeholders are stated. Duurzame+dialoog Preliminary to the construction of Maasvlakte 2, this dialogue devoted extensive attention to the economic, social and environmental effects of the construction.

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ECONOMIC PErfOrMANCE INDICATOrs

Information on management approach The role of the Port of Rotterdam Authority is to manage, operate and develop the port and industrial area of Rotterdam. The direct added value of Rotterdam’s port and industrial complex in 2008 was approximately € 15.5 billion. Direct employment from the port complex in 2008 was roughly 90,000 persons. In addition, the port of Rotterdam generates around 55,000 indirect jobs. The Port of Rotterdam lets out port sites on long leases to companies, particularly storage companies and cargo terminals and the chemical and petrochemical industry, including energy producers. The main income flows are rents and harbour dues. The Port of Rotterdam Authority is investing in the development of new port sites, particularly Maasvlakte 2, in public nfrastructure such as roads in the port area and customer-specific infrastructure such as quay walls and jetties. In order to handle shipping as efficiently as possible, substantial investment is being made in a traffic guidance system, traffic centres and patrol vessels. At the end of 2010 a total of 1,224 persons were employed by the Port of Rotterdam Authority.

For 9 • 2 4.4 • 2.3

a further explanation, please refer to: Finance [92 - 98] Cockpit Finance [135 - 136] The Port of Rotterdam [14 - 17] Marketposition [51 - 54] Cockpit Throughput and marketshare [139 - 142] Corporate Social Responsibility [22 - 24]

ECONOMIC ASPECTS Aspect: Economic Performance EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Financial Statements 2010 [105 -133] Overview of all financial information from 2010 and comparative figures from 2009.

EC2 Financial implications and other risks and opportunities for the organisation’s activities due to climate change.

Not or less relevant to the Port of Rotterdam Authority in 2010

The Port of Rotterdam Authority investigated the (financial) consequences of climate change. From this investigation it concluded that the consequences in the years to come are limited and indirect. The Port Authority does, however, recognise the importance of minimising the footprint of its own business and the chain. Our efforts in this matter are stated in chapter 7. CO2 reduction measures to achieve the ambition of a 50% reduction by 2025 and Carbon Capture & Storage. Stimulating environmentally friendly (sea and inland)shipping. Employee pensions are insured by ABP .

7.3

Rotterdam Climate Initiative [83]

7.2

Sustainability - Sustainable transport [80 - 82]

EC3 Coverage of the organisation’s defined benefit plan obligations.

Not or less relevant to the Port of Rotterdam Authority

EC4 Significant financial assistance received

Not or less relevant to the Port of Rotterdam Authority in 2010

In 2010, there was no financial support from the State. The State is contributing to the construction of the outer contour and the public infrastructure of Maasvlakte 2 (Financial Statement - 9 Off-balance sheet commitments and contingencies).

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Aspect: Market Presence EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation. Not or less relevant to the Port of Rotterdam Authority Range of ratios to locations is not relevant to the Port of Rotterdam Authority since we operate mainly in The Netherlands. Employees salaries are in accordance with the Collective Labour Agreement (see paragraph 2.6 Employees - Employment This indicator is less relevant since The Port of Rotterdam Authority is obliged to conform to European Procurement Directives and therefore has no seperate procurement policy for local suppliers. The Port of Rotterdam Authority operates mainly in the neighbourhood of Rotterdam and has a direct and indirect impact on the local economy. See chapter 1 The Port of Rotterdam - Location and position of the port of Rotterdam [15].

EC6 Policy, practices, and proportion of spending at locally-based suppliers at significant locations of operation.

Not or less relevant to the Port of Rotterdam Authority

EC7 Procedures for recruiting locally and the proportion of senior management hired from the local community at significant locations of operation.

Not or less relevant to the Port of Rotterdam Authority

This indicator is less relevant since The Port of Rotterdam Authority mainly operates in The Netherlands. The Port of Rotterdam Authority does not have separate procedures for hiring employees from the local community. Recruitment focuses on The Netherlands and the top management is Dutch. We actively participate in activities to improve the regional labour market, amongst others by the ‘Akkoord van Rotterdam’ (7.6 Labour market and education [90-91]).

Aspect: Indirect Economic Impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. 6.1 Traffic and accessibility in brief [65] The efforts of The Port of Rotterdam Authority on accessibility are not only important for the harbour but also have a general benefit. Advice from the Port of Rotterdam Authority in OMVS project in Senegal. The Port of Rotterdam Authority has a direct and indirect impact on the local economy.

2.3

Corporate Social Responsibility Committed [23] The port of Rotterdam - Location and position of the port of Rotterdam [15- 17]

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

1.

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ENvIrONMENTAL PErfOrMANCE INDICATOrs

Information on management approach We invest, together with our partners, in public consensus and the best possible preconditions for a port which has the ambition to develop. Sustainability is a key element in this ambition. For the Port of Rotterdam Authority, sustainability means improving our own performance as well as promoting sustainable enterprise in the port and industrial complex. Investment in sustainability is, in our view, necessary to retain public support for port activities as well as enabling the port to grow. In 2010 the Port of Rotterdam Authority focussed on ‘sustainable business’, ‘sustainable use of space’ and ‘sustainable transport’. The Port Authority aims to play a leading role in improving sustainability performance in the port industries by keeping the footprint of the Port Authority’s activities as small as possible, actively investing in reducing the environmental impact of port activities and actively working on attracting sustainable economic activities in the port area, such as biomass handling, wind power and the production of second-generation biofuels. Read more about our growth concepts in chapter 4 Customer and about our approach to sustainability in Chapter 7: Environment and Sustainability. The Port of Rotterdam Authority, together with its partners, is increasingly active in improving land-side accessibility for the four modalities (rail, road, inland shipping and pipeline). Read more about our approach to sustainable accessibility in Chapter 6; Traffic and Accessibility. More detailed information on environmental aspects can be found in: 2.3 Corporate Social Responsibility - Management approach [22] 2.3 Corporate Social Responsibility - Sustainability [22 - 23] 3.5 Clean (environmentally safe) [44 - 45] 4.3 Our market position - Energy Port [52 - 53] 5.2 Maasvlakte 2 - Sustainable execution and development [59] 5.2 Maasvlakte 2 - Monitoring [60] 6. Traffic and accessibility [64 - 73] 7.2 Sustainability [76 - 82] 7.3 Rotterdam Climate Initiative [83 - 84] 7.5 Innovation [88 - 89]

EvIRONMENTAL ASPECTS Aspect: Materials EN1 Materials used by weight or volume. Not or less relevant to the Port of Rotterdam Authority The Port of Rotterdam Authority is a service company and does not, therefore, use materials directly in products. The Port of Rotterdam Authority is a service company and does not, therefore, use materials directly in products.

EN2 Percentage of materials used that are recycled input materials.

Not or less relevant to the Port of Rotterdam Authority

Aspect: Energy EN3 Direct energy consumption by primary energy source. Not reported in public communications The direct use of energy by the Port of Rotterdam Authority is limited due to the nature of the business. The Port of Rotterdam Authority does not report on this information separately. Information on the use of energy is internally available for the calculation of the CO2 footprint (EN 16) and consists of the use of fuel (cars and vessels) and the use of gas for buildings. This information is not expressed in kilojoules. The direct use of energy by the Port of Rotterdam Authority is limited due to the nature of the business. The Port of Rotterdam Authority does not report on this information separately. Information on the use of energy is internally available for the calculation of the CO2 footprint (EN 16) and consists of the use of fuel (cars and vessels) and the use of gas for buildings. This information is not expressed in kilojoules.

EN4 Indirect energy consumption by primary source.

Not reported in public communications

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EN5 Energy saved due to conservation and efficiency improvements.

7.2 7.3 7.5

Sustainability [76 - 82] Rotterdam Climate Initiative [83 - 84] Innovation [88 - 89]”

The Port of Rotterdam Authority has started several energy saving measures. However, the benefits of these measures cannot always be measured as the decrease is dependant on several factors. Examples of energy saving measures are the measures under the CO2 footprint of Port of Rotterdam Authority and the projects in the Rotterdam Climate Initiative.

EN6 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives.

4.3

Our market position - Energy Port [52 - 53]

As a growth concept Energy Port is consciously aiming to attract the production of sustainable energy and throughput of related products. Measures for energy efficiency, renewable energy and Carbon Capture & Storage. The Port of Rotterdam Authority stimulates sustainability by giving discounts to reward reductions of fuel usage and emissions from vessels (ESI). Scope 2: Energy indirect emissions: Port of Rotterdam Authority limits the indirect use of energy by purchase of green power. Sustainable development of RDM.

7.3

Rotterdam Climate Initiative [83 -84]

7.2

Sustainability - Sustainable transport [80 - 82]

EN7 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives.

7.2

Sustainability - Sustainable operations [77 - 78]

7.2

Sustainability - Sustainable use of space 78 - 80]

Aspect: water EN8 Total water withdrawal by source. Not or less relevant to the Port of Rotterdam Authority Water withdrawal is limited to personal use by employees. Water withdrawal is limited to personal use by employees. Water withdrawal is limited to personal use by employees.

EN9 Water sources significantly affected by withdrawal of water. EN10 Percentage and total volume of water recycled and reused.

Not or less relevant to the Port of Rotterdam Authority

Not or less relevant to the Port of Rotterdam Authority

Aspect: Biodiversity EN11 Location and size of land owned, leased, managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas. Not or less relevant to the Port of Rotterdam Authority The port of Rotterdam is situated in an urban area. Only a (very) limited part of this area is bounded by nature. In developing the (existing) harbour area, the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' (http://www.portofrotterdam.com/en/Port/ port-development/Pages/maasvlakte-2.aspx) and in various agreements about Maasvlakte 2 (www. maasvlakte2.com, amongst others http://www. maasvlakte2.com/uploads/brochure_maasvlakte_2_ de_duurzame_haven.pdf en http://www.maasvlakte2.com/nl/dossier/show/id/4). The port of Rotterdam is situated in an urban area. Only a (very) limited part of this area is bounded by nature. In developing the (existing) harbour area the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' (http://www.portofrotterdam.com/en/Port/ port-development/Pages/maasvlakte-2.aspx) and in various agreements about Maasvlakte 2 (www. maasvlakte2.com, amongst others http://www. maasvlakte2.com/uploads/brochure_maasvlakte_2_ de_duurzame_haven.pdf en http://www.maasvlakte2.com/nl/dossier/show/id/4).

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

Not or less relevant to the Port of Rotterdam Authority

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EN13 Habitats protected or restored.

Not or less relevant to the Port of Rotterdam Authority

The port of Rotterdam is situated in an urban area. Only a (very) limited part of this area is bounded by nature. In developing the (existing) harbourarea the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' (http://www.portofrotterdam.com/en/Port/ port-development/Pages/maasvlakte-2.aspx) and in various agreements about Maasvlakte 2 (www. maasvlakte2.com, amongst others http://www. maasvlakte2.com/uploads/brochure_maasvlakte_2_ de_duurzame_haven.pdf en http://www.maasvlakte2.com/nl/dossier/show/id/4). The port of Rotterdam is situated in an urban area. Only a (very) limited part this area is bounded by nature. In developing the (existing) harbourarea the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' (http://www.portofrotterdam.com/en/Port/ port-development/Pages/maasvlakte-2.aspx) and in various agreements about Maasvlakte 2 (www. maasvlakte2.com, amongst others http://www. maasvlakte2.com/uploads/brochure_maasvlakte_2_ de_duurzame_haven.pdf en http://www.maasvlakte2.com/nl/dossier/show/id/4). In 2009, in relation to the construction of Massvlakte 2, we obtained a general release of the Flora and Fauna Act for the natterjack toad and the yellow widelip orchid. Both have been given their own place in the port area.

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity

Not or less relevant to the ort of Rotterdam Authority

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

Not or less relevant to the Port of Rotterdam Authority in 2010

Aspect: Emissions, Effluents, and waste

EN16 Total direct and indirect greenhouse gas emissions by weight. EN17 Other relevant indirect greenhouse gas emissions by weight. EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

7.2

Sustainability - Sustainable operations [77 - 78] Sustainability - Sustainable operations [77 - 78] Our market position - Energy Port [52 - 53]

Included is the footprint (scope 1 & 2) of our business operations. Included is the footprint (scope 3) of our business operations. As a growth concept Energy Port is consciously aiming to attract the production of sustainable energy and throughput of related products. Measures for energy efficiency, renewable energy and Carbon Capture & Storage. Objectives and measures for CO2 reduction. The Port of Rotterdam Authority stimulates sustainability by giving discounts to reward reductions of fuel usage and emissions from This indicator is not of essential importance to our business operations, because we are a service This indicator is not of essential importance to our business operations, because we are a service Water withdrawal is limited to personal use by employees. This indicator is not of essential importance to our business operations, because we are a service provider. The Port of Rotterdam Authority is active in prevention of pollution by ship’s waste (see 3.5 Clean (environmentally safe) [44]).

7.2

4.3

7.3

Rotterdam Climate Initiative [83 - 84]

7.2

Sustainability - Sustainable operations [77 - 78] Sustainability - Sustainable transport [80 - 82]

7.2

EN19 Emissions of ozone-depleting substances by weight. EN20 NO, SO, and other significant air emissions by type and weight. EN21 Total water discharge by quality and destination. EN22 Total weight of waste by type and disposal method.

Not or less relevant to the Port of Rotterdam Authority Not or less relevant to the Port of Rotterdam Authority Not or less relevant to the Port of Rotterdam Authority Not or less relevant to the Port of Rotterdam Authority

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grI INDICATOr EN23 Total number and volume of significant spills.

rEfErENCE TO ChAPTEr ANNuAL rEPOrT / PuBLIC COMMuNICATION 3.5 Clean (environmentally safe) [44 - 45]

BrIEf EXPLANATION The Port Authority is active in containing spills with the aim of minimising the risk of consequential damage. There were 240 recorded spills in 2010; an actual clean-up operation was carried out for 53 of the spills. As the State Harbour Master, we ensure the application of the law and regulations in this respect (see 3.5 Clean (environmentally safe) [44]).

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

Not or less relevant to the Port of Rotterdam Authority

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organisation’s discharge of water and runoff.

3.5

Clean (environmentally safe) [44 - 45]

The Port Authority is active in containing spills with the aim of minimising the risk of consequential damage. There were 240 recorded spills in 2010; an actual clean-up operation was carried out for 53 of the spills.

Aspect: Products and services EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Not or less relevant to the Port of Rotterdam Authority in 2010. In developing the (existing) harbour area, the Port of Rotteredam Authority respects nature. Agreements are recorded in 'Mainportontwikkeling Rotterdam' and in various agreements about Maasvlakte 2. These agreements date from previous years and are monitored in the "Milieu Effect Rapportages" (5.2 Maasvlakte 2 - Monitoring We do not sell any products (see also indicator 2.2).

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

Not or less relevant to the Port of Rotterdam Authority

Aspect: Compliance EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations. Not or less relevant to the Port of Rotterdam Authority in 2010. No significant fines were imposed on us in 2010. Being Stae Harbour Master we ensure the application of the law and regulations in ths respect (see 3.5 Clean (environmentally safe)).

Aspect: Transport EN29 Significant environmental impact of transporting products and other goods and materials used for the organisation’s operations, and transporting members of the workforce. 7.2 Sustainability - Sustainable operations [77 - 78] The use of fuel of vehicles is stated in the CO2 footprint. The Port of Roterdam Authority is working on a shift in the transport-chain from transport by truck to transport by cleaner modalities (rail, inland shipping, pipeline).

6.1

Traffic and accessibility in brief [65]

Aspect: Overall EN30 Total environmental protection expenditures and investments by type. 4.3 7.3 7.2 Our market position - Energy Port [52 - 53] Rotterdam Climate Initiative [83 - 84] Sustainability - Sustainable operations [77 - 78] Investments in gas & power and (bio)fuels. Investement in CO2 reduction. Investment in measures in respect of the planet.

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LABOr AsPECTs

Information on management approach We invest, together with our partners, in public consensus and the best possible preconditions for a port that has the ambition to develop, Employment is an important element in this ambition. The Port of Rotterdam Authority focusses on quality and diversity of employees. In addition, employee satisfaction is an important issue. The terms of employment of our employees are registered in a Collective Labour Agreement which is agreed with the trade unions. The Port of Rotterdam Authority operates mainly in the Netherlands and is an employer under the Dutch laws and regulations on advocacy and working conditions. More detailed information about social aspects can be found in: 2.6 Employees [30 - 32] 7.6 Labour market and education [90 - 91] • Cockpit Personnel [137]

LABOur PrACTICEs AND DECENT wOrK

Aspect: Employment LA1 Total workforce by employment type, employment contract, and region. Cockpit Personnel [137] The classification by region is not of essential importance to the Port of Rotterdam Authority since the activities are mainly situated in the Rotterdam area. Information about the sort of labour and the classification by type of labour agreement is internally available but is not considered an essential item on which seperate reporting is issued. In 2010, the inflow was 46 employees and the outflow 55 employees. These numbers are not available per age range. Information about this indicator is laid down in our Collective Labour Agreement. This is made available internally over the Intranet to our employees. In accordance with the CLA, all payments made to full-time employees apply pro rata to part-time employees.

LA2 Total number and rate of employee turnover by age group, gender, and region.

Not reported in public communications

Not reported in public communications

Aspect: Labour/Management relations LA4 Percentage of employees covered by collective bargaining agreements 2.6 Employees - Employment conditions [31] LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. Information about this indicator is laid down in our CLA. This is made internally available to our employees by intranet.

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

Not reported in public communications

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Aspect: Occupational health and safety LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programmes. 2.6 Employees - Promoting the interests of our employees [32] Port of Rotterdam Authority operates mainly in the Netherlands. Working conditions are laid down in legislation. Within the Port of Rotterdam Authority, there is one working conditions coordinator, one company doctor and four confidential counsellors.

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region.

2.6 2.6

Employees - Introduction [30] Employees - Promoting the interests of our employees [32]

In 2010, we suffered one fatal accident in our company due to a helicopter crash during an event organised by the Port of Rotterdam Authority. Separate reporting on figures about injuries, occupational diseases and absence is less relevant to the Port Authority. By the nature of our services, work-related accidents seldom occur. In 2010 five workrelated accidents led to short absences and one led to a long absence. Considering these figures related to the total number of our employees we consider these figures (except for fatal accidents) not essential for the Annual report.

Cockpit Personnel [137] 3.3 LA8 Education, training, counselling, prevention, and risk-control programmes in place to assist workforce members, their families, or community members regarding serious diseases. LA9 Health and safety topics covered in formal agreements with trade unions. Nautically safe [40]

Absenteeism figures Report of nautical incidents. Within the Port of Rotterdam Authority there are no specific occupational related risks or serious illnesses.

Not or less relevant to the Port of Rotterdam Authority

2.6

Employees - Employment conditions [31]

New Collective Labour Agreement is explained briefly.

Aspect: Training and Education LA10 Average hours of training per year per employee by employee category. Not reported in public communications Education of employees is registered in numbers, not in average number of hours.

LA11 Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. LA12 Percentage of employees receiving regular performance and career development reviews.

2.6

Employees - Quality [30]

The Port of Rotterdam Authority has various development programmes for employees: AanZ, Young Potential programme, Management Development programme. In 2010, 83% of the employees had a performance interview, in which their achievements and careers were discussed.

2.6 Employees - Quality [30] Cockpit Critical Performance Indicators (KPI’s) 2010 [143]

Aspect: diversiteit en kansen LA13 LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. Appendix 1 [154 - 157] Composition of the Executive Board and Supervisory Board.

Cockpit Personnel [137]

Male/female ratio and management age group.

LA14 Ratio of basic salary of men to women by employee category.

2.6

Employees - Employment conditions [31]

Information about this indicator is laid down in our CLA. This is made internally available to our employees by intranet. No distinction is made in our CLA between men and women.

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huMAN rIghTs

Information on management approach The Port of Rotterdam Authority operates primarily in the Netherlands, and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance.

Aspect: Information on management approach HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. Not or less relevant to the Port of Rotterdam Authority The Port Authority operates primarily in the Netherlands and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance. The Port Authority operates primarily in the Netherlands and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance. The Port Authority operates primarily in the Netherlands and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance.

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.

Not or less relevant to the Port of Rotterdam Authority

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

Not or less relevant to the Port of Rotterdam Authority

Aspect: Non-discrimination HR4 Total number of incidents of discrimination and actions taken. Not reported in public communications Havenbedrijf Rotterdam heeft 4 vertrouwenspersonen gericht op ongewenst gedrag en integriteit. Meldingen zijn vertrouwelijk. Informatie over aantallen is niet openbaar.

Aspect: freedom of Association and Collective Bargaining HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights. 2.6 Employees - Employment conditions [31] Bij de Ondernemings-CAO zijn de vakorganisaties, zoals ABVAKABO en CNV Publieke zaak en de Onafhankelijke Vereniging als CAO-partij betrokken.

Aspect: Child Labour HR6 HR6 Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination of child labour. Not or less relevant to the Port of Rotterdam Authority The Port Authority operates primarily in the Netherlands and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance.

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Aspect: forced and compulsory Labour HR7 Operations identified as having significant risk for incidents of forced or compulsory labour, and measures taken to contribute to the elimination of forced or compulsory labour. Not or less relevant to the Port of Rotterdam Authority The Port Authority operates primarily in the Netherlands and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance.

Aspect: security Practices HR8 Percentage of security personnel trained in the organisation’s policies or procedures concerning aspects of human rights that are relevant to operations. Not or less relevant to the Port of Rotterdam Authority The Port Authority operates primarily in the Netherlands and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance.

Aspect: Indigenous rights HR9 Total number of incidents of violations involving rights of indigenous people and actions taken. Not or less relevant to the Port of Rotterdam Authority The Port Authority operates primarily in the Netherlands and therefore regards these indicators as less relevant. Concerning the participating interest in Oman, the quality of and attention to human rights in the Sultanate have played a role. For new foreign activities we use the ‘Port Analysis model’, with particular attention given to risk analysis, sustainability and corporate governance.

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sOCIETy

Information on management approach We invest, together with our partners, in public consensus and the best possible preconditions for a port that has the ambition to develop. Dialogue and consensus are important elements in this ambition. It is of great importance to us to create consensus. In various ways we started a dialogue with our stakeholders (see for examples paragraph 8.4 Dialogue). In 2010 we introduced a structural method to style the environmental dialogue with relevant stakeholders. In several places in this Annual report examples are given of dialogues with our environment, where this method is put to use. Meer gedetailleerde informatie over sociale aspecten treft u aan in: 5.2 Maasvlakte 2 - Agreements with stakeholders [59] 5.3 Existing port area [61 - 63] 6.2 Road [66 - 67] 6.3 Rail [68 - 69] 6.4 Inland Shipping [70 - 71] 7.4 Dialogue - Dialogue with stakeholders [85 - 86]

Aspect: Community SO1 Nature, scope, and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. 5.2 Maasvlakte 2 - Agreements with stakeholders [59] Maasvlakte 2 - Monitoring [60] Overeenkomsten en dialoogakkoorden.

5.2

De Monitoring en Evaluatie Programma's (MEP's) hebben als doel om de daadwerkelijke optredende effecten van de aanleg, aanwezigheid en het gebruik van de Maasvlakte 2 inzichtelijk te maken. Lijst met belanghebbenden.

7.4

Dialogue - Dialogue with stakeholders [85 - 86]

Aspect: Corruption SO2 Percentage and total number of business units analysed for risks related to corruption. Not or less relevant to the Port of Rotterdam Authority The Port of Rotterdam Authority uses a risk and control system in which operational risks are stated. Corruption is not a seperate item as the Port of Rotterdam Athority mainly operates in the Netherlands a country given the lowest risk classification in the AON Political Risk Map. The Port of Rotterdam Authority does not have a seperate anti-corruption policy (see SO2) but devotes attention to anti-corruption policy and procedures in the company code. See http://www. portofrotterdam.com/en/Port-authority/our-company/ Documents/Code-of-Conduct_2009.pdf. Our employees do not take seperate courses on corruption issues. No reports of any cases of corruption were made in 2010.

SO3 Percentage of employees trained in the organisation’s anti-corruption policies and procedures.

Not or less relevant to the Port of Rotterdam Authority

SO4 Actions taken in response to incidents of corruption.

Not or less relevant voor the Port of Rotterdam Authority in 2010

Aspect: Public Policy SO5 Public policy positions and participation in public policy development and lobbying. 7.4 Dialogue - Dialogue with Europe [86 - 87] Specification of activities in respect of Europe and the European Sea Port Organisation.

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

www.portofrotterdam.com

Our sponsorship policy is described at www. portofrotterdam.com, which also states that we do not sponsor any activities of a political or religious character.

Aspect: Anti-competitive Behaviour SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes. Financial Statements 2010 - 9 Off-balance sheet commitments and contingencies [122 - 123] Ongoing claims and disputes

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Aspect: Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Not or less relevant to the Port of Rotterdam Authority in 2010. No significant fines were imposed on us in 2010.

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PrODuCT rEsPONsIBILITy

Information on management approach The Port of Rotterdam Authority does not sell any products. In addition, the indicators to do with product responsibility are less relevant to our services. When indicators areapplicable to our services in relation to safe handling of shipping, it is reported in detail in Chapter 3 You 3.3 3.4 3.5 can find more detailed information on this in: Nautically safe [40 - 41] Safe transport [42 - 43] Clean (environmentally safe) [44 - 45]

Aspect: Customer health and safety PR1 Life cycle stages in which the health and safety impacts of products and services are assessed for improvement, and percentage of significant product and service categories subject to such procedures. Not or less relevant to the Port of Rotterdam Authority We do not sell any products. In addition, this indicator is less relevant to our service.

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services, by type of outcomes.

Not or less relevant to the Port of Rotterdam Authority

We do not sell any products. In addition, this indicator is less relevant to our service.

Aspect: Product and Service labelling PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes. Not or less relevant to the Port of Rotterdam Authority We do not sell any products. In addition, this indicator is less relevant to our service.

Not or less relevant to the Port of Rotterdam Authority

We do not sell any products. In addition, this indicator is less relevant to our service.

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

4.2

Our relationship with the customer [50]

The results of the biannual Customers Satisfaction Survey are explained.

Aspect: Marketing Communications PR6 Programmes for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes. Not or less relevant to the Port of Rotterdam Authority Less relevant considering the nature of the activities of the Port of Rotterdam Authority.

Not or less relevant to the Port of Rotterdam Authority

Less relevant considering the nature of the activities of the Port of Rotterdam Authority.

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Aspect: Customer Privacy PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. Not or less relevant to the Port of Rotterdam Authority Customer complaints are attended to. Considering the nature of the activities of the Port of Rotterdam Authority, customer complaints concerning privacy are not usual..

Aspect: Compliance PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. Not or less relevant to the Port of Rotterdam Authority No significant fines were imposed on us in 2010.

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Colophon
Publication

Port of Rotterdam Authority

Editing and control consistency

Corporate Finance & Control

Verifying relevance, accuracy and completeness

Internal Audit

Realisation online and PDF publication

Corporate Communication Strategy (Digitale Media)

Graphic design

Smidswater

Technical realisation and hosting

Netvlies internetdiensten

AV production video cases

Het Kader, audio visual productions

Photography

Ben Wind, Freek van Arkel, Eric Bakker, Martijn Hessing, Aeroview, John Janssen

Contact

Visiting address Port of Rotterdam Authority World Port Center (WPC) Wilhelminakade 909 3072 AP Rotterdam Port number 1247 Mail address Postbus 6622 3002 AP Rotterdam The Netherlands

T E W

010 - 252 10 10 [email protected] www.portofrotterdam.com

The Port of Rotterdam Authority Annual report 2010

Colophon

185

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