Port of Rotterdam

World-class in action! 

Port of Rotterdam Authority 

Gastcollege Avans Hogeschool 

International Maintenance Management 

5 maart 2013; Giel Jurgens 

© Copyright - Port of Rotterdam 

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Giel Jurgens 

• 43 years old 

• Hellevoetsluis 

• Studied; Technical Business Administration 

• Experience: 17 years at Port of Rotterdam 

• Specialized in Maintenance Management and Asset 

Management 

• Position; Asset Owner 

• Married; 3 kids 

• Hobby; Sailing 


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Port of Rotterdam 

Challenges 

Asset Management as the solution 

Business cases at PoR 

Case: Quay walls 

Case: Patrol Vessels 


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Port and industrial area 

+ 


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Port development 

2008 - 2030 

1960 - 1970 

1906 - 1922 

1400 - 1800 

1929 - 1949 

1800 - 1900 

1970 - 2008 

1948 - 1957 

1934 - 1946 


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Port of Rotterdam: facts 

• Largest port of Europe 

• Total area: 10.500 ha, excl. 

Maasvlakte 2: 2.000 ha 

• Waterdepth up to 24 meter 

• 80 terminals 

• 9 powerplants 

• 5 e port of the world 

• 3000 firms / plants / companies 

• 65 km Quay walls 

Maasvlakte 2 


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Port in figures 

Port of Rotterdam engine of the economy 

• Total employment 140,000 people (90,000 direct 

and 50,000 indirect) 

• Total added value € 10.3 billion 

• Throughput 442 million tons; 11.9 million TEU 

(2012) 

Employment 


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Ratio goods segment 

5% 

Liquid bulk 

18% 

29% 

48% 

Containers 

Dry bulk 

Breakbulk 


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Top 20 World ports 

Source: Port Authorities 

x 1 million tons 


2011 

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Top 20 European ports 

Source: Port Authorities 

x 1 million tons 


2011 

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Mission, Vision & Core values 

Mission 

The Port of Rotterdam Authority is developing, in partnership, 

the European world-class port 

Vision 

Continuously develop the port of Rotterdam to the most efficient, safe 

and sustainable in the world 

Core values 

Together, Passion, Improving, Trustworthy 


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Challenges 






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Transshipment scenarios for the future 

Ambition: in 2030 a transshipment of 675 à 750 million tons 


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Major challenges 

Maasvlakte 2 on time 

Better use of 

existing space 

Return on investment 

Knowledge & Innovation 

Corporate social 

responsibility 

Safety & Security 

Air quality & Safety 

Accessibility 

Customer satisfaction 


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Room for port development 

• Intensification of existing port area 

• Increasing productivity of terminals 

• Selective relocation companies 

• Areas to be filled in 

• Other seaports in South West 

Netherlands 

• Allocation policy 

• Maasvlakte 2 

Maasvlakte 2 


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Maasvlakte 2 

• Access via Yangtzehaven: 

600 m. wide and 20 m. deep 

• 20% expansion of port 

• Use: Containers and 

Industry 

• Cost: € 3 billion 

Maasvlakte 2 


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Maasvlakte 2 

October 2012 


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Accessibility 

Road 

Inland shipping 

Rail 

Pipeline 

Source: PoR / Bundesamt 2010 


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Accessibility Rotterdam 

24/7 without locks 

4,800 TEU 

Draft 13.50 m 

8,000 TEU 

Draft 14.50 m 

13,500 TEU 

Draft 15.50 m 

Hamburg 12.80 m 

Antwerp 13.10 m 

Amsterdam 13.70 m 

Rotterdam > 20 m 


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Largest Container ship in the world 

december 2012 

Marco Polo 

L: 396 m 

W: 54 m 

D: 16 m 

Capp: 16.000 TEU 


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Sustainability 

• Investments in 

sustainability are 

necessary to generate 

support and for growth 

• Sustainability is the 

balance between: 

People 

Planet 

Priorities: 

• Optimum use of space 

Profit 

• Sustainable accessibility 

• Air quality & climate 


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Extra Asset Management 

challenges 

• Huge increase of transshipment 

• Much old and aging assets 

• Increasing complexity of the 

assets and to fit the assets into 

an area 

• Increasing complexity of rules 

and regulations 


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Challenges 






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What is the difference between 

Asset Management and 

Maintenance Management 


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Maintenance management vs 

Asset management at PoR 

Asset Lifecycle 

Development 

Realisation 

Production / Exploitation / Use 

Demolish/ 

Sell 

Project Management 

Maintenance Management 

PM 

Asset Management 


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Current situation (maintenance) 

• 32 Asset types 

• 65 km Quay walls 

• 180 km slopes 

• 3,1 million m2 roads 

• 3.500 ha sea bed 

• 20 vessels 

• 36 land radars 

• Etc. 

• Invested Capital € 3,2 Billion 

• Maintenance budget € 50 Million 

• Approx. 130 employees in 

maintenance 


Several assettypes of PoR 

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Asset Management: 

An optimal balance between performance – risks – costs over the entire 

lifecycle, aligned with the strategic goals of the organization 

€ Costs 

Finance 

Reputation 

Physical 

ASSET 

Accessibility 

Sustainability 

Performance 

Risks 

Safety 


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Asset management at PoR 

Pas55 

World class 

2001 2006 

2013 

2030 


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Asset management at PoR [2030] 

• Maintenance plans based on 

thorough risk management 

• Assets future ready 

• Sustainable 

• Fit for purpose 

• Efficient, effective 

• Accessible 

• World-class 

Artist impression Maasvlakte 2 


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Worldclass Asset Management: 

• All aspects are 

Okay 

• Fit for purpose 

(aligned with 

organizational 

goals) 

Processes 

ICT 

Asset 

Management 

Partners 

Knowledge 

People 

Assets 


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Knowledge 

• PoR knows and understands her assets; 

• Asset base well-known 

• Degradation well-known and understood 

• Use and (rest)capacity (also possible 

bottlenecks) 

• (rest)Lifetime 

Proces 

-ses 

Partners 

Knowledge 

ICT 

Asset 

Manage 

ment 

Assets 

People 

• Technical, Economical, Commercial, Compliance 

• Relations between performances, costs and 

risks 

• Lifecycle costs of all the assets 


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Processes 

• Professional asset management (pas55), Project 

management (PRINCE2) is a part of Asset 

Management 

Proces 

-ses 

ICT 

Asset 

Manage 

ment 

Partners 

• Risk management is basis van asset management 

• Processes Inside and outside PoR are well tuned to 

each other 

Knowledge 

Assets 

People 

• Processes are integrally looked at 

• Logistical chain in the Port 

• Lifecycle of the asset 

• Business values 

• Cost effectiveness is first motive 


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ICT 

• All necessary data are present, actual and 

retrievable 

• Characteristics, Attributes 

• Process data, data of use 

• Geographical data 

• Financial data 

• Organization has the right methods en models to 

predict use of assets 

• Expert systems for asset management 

• KMS 

• POI, dgDialog 

Proces 

-ses 

Partners 

Knowledge 

ICT 

Asset 

Manage 

ment 

Assets 

People 


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Partners 

ICT 

• PoR is director en puts out to contracts (D&C, 

DBFMO, etc.) 

• Good collaborations with fine partners 

Proces 

-ses 

Partners 

Knowledge 

Asset 

Manage 

ment 

People 

• In the future only one partner 

Assets 


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People 

ICT 

• Sufficient, appropriate qualified personnel 

• Motivated 

• Proactive 

• Duties, Authorities, Responsibilities are wellknown 

• Well working asset roles; Asset owner, Asset 

Manager, service Provider and Asset User 

• Directors 

Proces 

-ses 

Partners 

Knowledge 

Asset 

Manage 

ment 

Assets 

People 


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Assets 

ICT 

Assets provide the right performance so that: 

• The increasing transshipment will be facilitated 

• Rotterdam is accessible on all the modals (rail, 

road, pipeline, shipping) 

• Rotterdam is the most efficient and most 

sustainable port in the world 

• The port keeps its license to operate and license 

to grow 

• Rotterdam will remain a (financial) attractive port 

Proces 

-ses 

Partners 

Knowledge 

Asset 

Manage 

ment 

Assets 

People 


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Asset Management 

ICT 

• AM creates value and will be admitted so by 

boards and management 

• Dutch firms make the difference with Asset 

Management 

• AM stands high on the political agenda 

Proces 

-ses 

Partners 

Knowledge 

Asset 

Manage 

ment 

Assets 

People 

so: 

Asset Management is Sexy! 


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Challenges 






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What is a Business Case 


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Business Case! 

• What does it 

mean 

• The continuous business justification of 

a project 

• What does a BuCa 

consists of 

• Management summery, 

• Reason why 

• Chosen business option 

• Expected benefits (and dis-benefits) 

• Costs, Risks, schedule of the project 

• Review of the investment 

[According to PRINCE2] 


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Business Case at PoR 

• BuCa is the “Business Justification”; 

a balanced reflection on the business 

values of the organization. 

• Costs 

• Environment 

• Contribution to strategic goals 

• Added value to customers 

• Etc. 

• BuCa leading at a the decisionmaking 

of projects 


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Business cases; 

not only for decision making 

Project development 

+ 

preparation Realisation Exploitation / asset use 

Choosing 

LTE or 

new asset 

Develop 

BuCa 

Follow the 

BuCa during 

realisation 

Asset Lifecycle 

Periodically evaluate / learn 

Develop 

Buca for LTE 

or new asset 

Decision making 

Business Case Lifecycle 

Decision making 


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Portfolio approach 

• A business case does not always stands on its 

own 

• Not every project has a positive financial 

business case 

• Portfolio 

• NPV of total portfolio 

• Multi criteria analyses 

shown in Portfolio-grid 

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Urgentie 


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Challenges 






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Assets of PoR 

• The assets are the pivot in 

our business model 

• Added value for our customers 

availability, sustainability, safety, 

accessibility, clean, etc. 

• Income for PoR 

• Continuity, certainty for the 

people who use the Port 


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And our assets deteriorate 

• Often Technical aging and aging due to 

intensive use 

• Well known process. Many standards 

• Vessels: Oil samples; Hull thickness; paint 

thickness, etc. 

• Roads; CROW methods en standards 

• Real estate; condition monitoring, NEN 2767 

• Maritime infrastructure: no standards 

• The most important TECC drivers for the 

assets of PoR are: Technical and 

Commercial 

VITALE Reference Model 


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Quay walls (at PoR) 

• Water and earth retaining 

• Quay walls facilitate 

transshipment = business 

• 95% beneath water level 

• Materials mainly steel and 

concrete 


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Quay walls (at PoR) 

• 65 km length; up to 23 m deep 

• Asset replacement value: 

€ 1,3 billion 

• Maintenance is expensive 

• Maintenance actions based on 

inspections 


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Inspection results Quay Walls 

• Results of periodically 

inspections were disturbing 

• Holes in steel tube piles and 

retaining walls 

• Faster degradation of the steel 

than expected 

• Due to many factors 


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And then … 

• Two possibilities: 

• Life time Extension (LTE) 

• Replacing the quay walls 

• Our choice = Life Time extension 

• Stop the degradation a.s.a.p. 

• Determine the degradation curve of the steel 

• Determine effective maintenance measures 

• Cathodic Protection 


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5 

Project Cathodic Protection because: 

The outcome of our BuCa: 

• Replacement of the quay walls: 

• Downtime for our clients (loss of 

income) 

• Too expensive (€ 700 million) 

• … 

• The LTE project: 

• It concerns approx. 50% of all quay 

walls (about 35 km) 

• Investment: € 30 million 


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Loss thickness [mm] 

Loss thickness [mm] 

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Project Cathodic protection (CP) 

• Duration project 2001 – 2012 

• Determine what kind of cathodic protection 

2001 - 2002 

• Mounting the CP 2003 – 2006 

• Monitor the degradation of the CP 2007 - 

2010 

• Validate the degradation curve of steel in 

Rotterdam 2010 – 2011 

• Share the findings with asset managers of 

other ports in NL en Belgium 2010 - 2011 

• Check the degradation curve in the middle 

east en northern America 2012 

Standard corrosioncurves with measurements 

combiwalls in salt water 

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Measured quaywall 

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EC 3 

2 

EC 3 Splash 

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1 

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0 10 20 30 40 50 60 

Exposition in years 

Standard corrosioncurve with measurements 

combiwall in fresh water 

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3 

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EC 3 

2 EC 3 Splash 

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0 10 20 30 40 50 60 

Exposition in years 


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Knowing and understanding 

your assets 

• In need of predicting the (end of) lifetime of 

all quay walls (not only the steel parts) 

• No standards, no norms 

• So we develop it ourselves: 

• The “Steel curve” we got; test it around the 

world 

• Buy the “Concrete curves” if possible 

• Develop a simulation tool 


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5 

Kade Modellering Systeem “KMS” 

(quay wall modeling system) 

• Wish: a tool / system that 

must be able to: 

• Predict 

• Simulate 

• Analyse 

• Prioritize 

• Budget 

• Plan (schedule) 


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5 

KMS 

• Unfortunately no “off the shelve” product 

• Difficult open tender 

• Finally a joint effort and joint risk between 

more partners (PoR, Simco, Traduco, 

Halcrow) 

• Jan 2012 Proof of Concept accepted 

• Q3 2012 finished 


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Awardwinning tool and project KMS 

• Infra projectteam 2012 (NVDO) 

• 2013 ACEC New York Gold 

Award 

Filmpje KMS 

Infra projectteam of the year 2012 


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Challenges 






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Refit or new vessels 

• RPA 14 en RPA 15 

• Two patrol/firefighting vessels of 

PoR 

• Several systems reached 

technical, economical and 

compliance “end of life” 

RPA 14 and RPA 15 before refit 


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Functional demands 

• Lifetime of at least 15 years 

• Suitable for a crew of 3 members 

(in stead of 4) 

• Modern accommodation (ARBO) 

• Maneuverability 

• Several technical issues 

• Several environmental items 

• Pumping capacity for fire 

department 

During refit 


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Business Case 

• Financially / Costs: 

• Refit € 7,3 mln; New € 14 mln 

• NPV refit is € 5 mln less than NPV new 

• Sustainability: 

• Refit better than New 

• Benefits (subsidies, less wages): 

• Same benefits for Refit as well as New 

• Tip: be aware of any scopecreeps. 

They might obscure the BuCa 


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Project 

• Our Choice: Refit 

• Negative NPV 

• Part of the entire project portfolio 

of PoR 

• Total project costs: € 7,3 mln 

• Duration: approx. 2 years (1 year 

per Vessel) 

Filmpje RPA14 

RPA 14 after refit 


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Port of Rotterdam is striving 

for world class, but isn’t she 

already world class 


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The Quality of port infrastructure in the 

Netherlands is world-class… 

In the Global Competitiveness 

Report, a leading study of the 

competitive strength of 

various countries conducted 

by the World Economic 

Forum, the Netherlands 

ranks 1 worldwide 

Global Competitiveness Report (2012 - 2013) 


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Conclusions PoR 

• Asset Management is more than 

maintenance management 

• Project management is part of 

asset management 

• Think in business cases 

• Think at the lifecycle of assets 

• A Business case consists of more 

than only costs 

• Weigh the individual business 

cases in a portfolio 

• Know and understand your assets World Port Centre & Queen Mary 2 


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Questions 


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Port of Rotterdam

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