Amsterdam now operates in combination with Amsterdam city and Schiphol airport to create a regional logistics hub in the Netherlands. Now, Amsterdam and Mumbai have signed an MoU to collaborate in marketing and promotion. During her visit to India for the “Mumbai & Amsterdam: Smart Service Hubs†round table on 26 March, Dertje Meijer, CEO, Port of Amsterdam, explains to Shashidhar Nanjundaiah why it is important for port systems to rethink about vessel sizes, volumes and collaborations.
Why is there interest in the Indian port environment from Amsterdam?
North Western Europe will experience a growth of 300 per cent in the coming 30 years. This means not only a volume growth but also vessel size, and in that way, ports become interesting to other ports. We will have some so-called super hubs that can receive super sized vessels, and there will be other ports, together forming a European hub. We believe Amsterdam acts very well to serve niche markets, catering to vessel sizes that are similar to those that Mumbai can handle, and similarly for the US, South America and African ports.
[Such a hub] depends on change in world markets and change in types of cargo vessel systems. We expect at least a doubling of the volumes, still a tremendous growth. That is why it is important for us to change our way of thinking along with a change in the physical structure and infrastructure.
In that sense the economic crisis taught us a lesson because we have big ships coming from Japan and China, and because of crisis they decided to consolidate and go to bigger ports and bigger ships.
So that consolidated the vessel sizes too?
Yes. Smaller ships for a while were not even in use. They used bigger ships than the biggest container vessels that we at Amsterdam were handling. So these vessels shifted away from us to other ports in the region like Antwerp and Rotterdam. That is when we decided to shift mentally and physically. That is why we have the European gateway function for Rotterdam, because if they also handle super-big vessels, they wouldn’t be able to handle the smaller ones anymore or experience congestion. So they want shorter vessels to Amsterdam and Antwerp, and the bigger barges to Amsterdam.
If 6-7 of these very big ships of, say, 14,000 TEU unload their cargo, the port is completely congested on the water level and on the road level. Hence this port network system.
So it is basically building a system of ports it is not just one port and using the strengths of each port for different kind of ships.
Yes—connected through coastal shipping. And this is not something we invented: The market feels that it is being, so they are taking their precautions. The biggest inland terminal mesh for instance is already four years old in Amsterdam.
The vessel size or port size of Amsterdam is exactly the same in Mumbai as in Amsterdam. So all the ships that can enter Rotterdam is exactly the same size we have in Amsterdam. The metropolitan quality of econoÂmics is quite similar. We have logistics, business services, finance, creative industry, etc.
So what will Amsterdam do for Mumbai? What is the agreement?
The agreement is that Samsara will market Port of Amsterdam in India. And from that starting point on, we think we will share trading volumes, with cargos from India to Amsterdam and export from Europe via Amsterdam to India.
You have started doing on both shores? Promoting Mumbai in Amsterdam as well?
Not yet. We are marketing here. To be honest we do not know the Indian market enough. So in this environÂment, market intelligence, opportunities and promotion will help in finding defines business. We cannot guaraÂntee that it begins a relationship. From there on we can go to logistic services supply and new investments.
Many western port authorities say they were pleasantly surprised when some Indian ports also approached them to be consultants. Is this something you’ve considered?
Yes, we have a consultancy—the Amsterdam Port Consultancy. In general, we can do consultancy but only if our own customer asks for it. Then the customer either them or we will invest in a port here.
Is this something you can do for Indian ports?
Yes. We like to invest in ports in future but on the condition that it creates cargo flows to Amsterdam and it a very important issue. That is not an automatic result so you can build infrastructure but it does not necessarily create cargo flows. We follow our customer because they may want to invest in India because of your good steel or coal experience, for example.
So the consultancy will only happen if it benefits the port of Amsterdam?
Yes, then it will support the flows. Say our customer in the port of Amsterdam wants to start a flow between India and Amsterdam, and can do investment in the terminal but not the port management, and we can take that on.
What can Indian ports use from Amsterdam?
We always work in partnership and we have a lot of infrastructure. We can help building infrastructure but we will not do it ourselves. We know companies that like to support that like to support that kind things. Our USP as a port authority is that we build infrastructure in by being creative and building soft infrastructure. One of our innovations is the creation of a logistics Golden Triangle comprising Amsterdam (Schiphol) airport, Amsterdam port and Amsterdam city: that works togeÂther because we have all the services within 20 km.
We can function as the bridge into the hinterland. That is our functioning for Indian manufacturers in logistics parks.
We can also offer an integrated service to logistic companies wishing to enter the European market. Once a company has an idea to go to the European market, it needs help and Amsterdam can function as his back up team for smooth operations.
Do you think that the tariffs regulation in India should change?
In northwestern part of Europe the strategy is that it is completely free and that is competition and that is what the market wants. On the other hand we have tariff on airport are regulated and I know there are a lot of customers are complaining about that. I think it is good for business and competition where you get prices from the market and not from public or the government.
In India we are not yet big on environmentally friendly logistics. Now that you have seen ports like JNPT or Mumbai Port, how do you think they can leverage their own resources to build an environmentally friendly system?
Sustainability is very hot in Europe and that is beÂcause we think not for ourselves but our grandchildren and children. What kind of a world do we want for your grandchildren to live in?
So we were quite surprised when we landed in India and saw people working underneath in [in slums]. That is the kind of thing that cannot work in the Netherlands anymore. We have a growing city, port and airport inÂcluÂded, and that can only be done when you are open to each other and when you really work in a sustainable manÂner. That means less carbon footprint, less pollution. That means nearly half the infrastructure must change. And that is why create it, for instance, a Sustainability Fund. When you have an idea for sustainability we will stimulate it from a sustainability fund. But it needs to stand on its own merit and should not be because the neighbour has it—the idea needs to come with a new state-of-the-art concept, more sustainable perhaps than anywhere else in the world. That is the way it has to work.
PB (Peter) Overbeek Bloem, Senior Manager—Business Climate, Port of Amsterdam, also provided input to this interview.
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