The vision of… Ronald Paul

Since September 2012, the Port of Rotterdam, the biggest European port and number four port worldwide, has a new COO: Ronald Paul. Paul started at the Port of Rotterdam in 1985: “After finishing my studies, I worked at an engineering company and at Rijkswaterstaat, but realised that both companies were not for me. An acquaintance suggested I should apply for a job at the Port of Rotterdam, which I also thought would not be for me. Nevertheless, I applied, just to gain experience, but I never left.”

“Every time I thought that it was time to leave, another interesting job opportunity arose”, Paul continues. “I had the opportunity to work in many different disciplines within the company, so I kept on developing myself. Self-development and learning enrich your life.” After several functions, marketing, technical and real estate, among others, Paul was appointed managing director project organisation Maasvlakte 2 in 2004. “I received the brief to engage a contractor, to attract a first customer and to improve the profitability of the case”, he remembers. “I also had to arrange permits, all for our own account and risk. I was wondering where to start, so I made a plan and just started. I am very proud of the fact that we still are on track and within budget, as our plan in 2005 said that we would start building in 2008 and Maasvlakte 2 should be operational in 2013.” This achievement did not go unnoticed: Paul was appointed Port Personality of the Year 2010.

Taking distance, not saying goodbye

The construction of Maasvlakte 2 is still on schedule and the first phase is close to completion. Wasn’t it difficult for Paul to leave his ‘baby’ before it is completely finished? “No,” he says, “it is not saying goodbye, it is distancing myself. During this phase of the project, three managers – besides me, Rene van der Plas and Frank Hoevenaars – could be too much. Therefore it was an excellent timing to change jobs for me. Of course, I follow the project from a distance, but it falls under CEO Hans Smits. It would not have made sense to change it to my portfolio, as otherwise I would not be able

Self-development and learning enrich your life

to distance myself. However, after delivery, Maasvlakte 2 will be added to my portfolio. I took the right decision to change jobs, it feels good and it is challenging. The experience I gained from the Maasvlakte 2 project proves to be useful. My current role is more executive.

As worked in a very operational manner, realising things in a short period of time and with budgets, but I also thought about the long term in regard to strategies, permits, contracting and stakeholder management, which is more related to my new job.”

The Port of Rotterdam is a public limited liability company, the city of Rotterdam holds 70% of the shares and the Dutch government 30%. 1,161 people are employed at the company, of which 469 are operational 24/7. “We are a very diverse company, with many cultures. Commercial, operational, legal, technical: everything comes together in the Port of Rotterdam”, says Paul. The Port of Rotterdam has two important pillars: an operational pillar, offering shipping guidance and order and safety on the water and an exploitation pillar, the commercial realisation, management and maintenance of the port area. The turnover in 2012 was € 600 million, mainly deriving from harbour dues and real estate revenue. In 2012, a record-breaking € 500 million was invested. Paul explains: “Normally, we invest about € 200 million per year, but last year we had the highest investment level in our history, due to the investments for Maasvlakte 2.”

Growth and investments

2012 was not a too bad of a year for the Port of Rotterdam: the throughput grew with a modest 1.7%. Paul: “I am very pleased that together with the companies in the port area we realised a growth to 442 million tons of cargo. Although the throughput of dry bulk dropped, the throughput of liquid bulk and containers grew, which meant an overall growth of that 1.7%. For 2013, we expect about 2% growth, reaching about 450 million tons. Statistics Netherlands expects a deterioration of the Dutch economy in 2013, but the Port of Rotterdam is related to the world economy, and the world economy is expected to grow at least 4%. Therefore the Port of Rotterdam also expects to grow again in 2013. Together with Mainport Schiphol, the Mainport Rotterdam is the engine of the Dutch economy. We plan to invest € 200 million every year in the existing port area in 2013, the industry invests € 2 billion in the port and these investments contribute to the Dutch economy. According to the OECD report ‘The composition of government expenditure and economic growth’ investments in infrastructure and knowledge have the most positive long-term effect on an economy. Therefore investing in infrastructure is extremely important. We have contributed 3.5% to the Dutch gross domestic product in 2012. With our investments we make sure that the industry can do its job, we as a company are a facilitator for all companies in the Rotterdam port area.”

Stimulating sustainable shipping

According to the website of the Port of

Together with Mainport Schiphol, the Mainport Rotterdam is the engine of the Dutch economy

Rotterdam, “the Port of Rotterdam Authority is working to become THE European world-class port by conducting its business operations in a sustainable and socially responsible way. Sustainability is even one of the Port Authority’s five key values.” Paul confirms this: “The development of sustainable shipping is important to us. We participate in the Environmental Shipping Index (identifies seagoing ships that perform better in reducing air emissions than required by the current emission standards of the IMO, ed.) and Green Award (certifies ships in which is invested extra in the quality of the ship and the staff, ed.) and therefore spent respectively € 700,000 and € 1.5 million on incentives in 2012. We also support and stimulate the use of LNG as fuel. After Singapore, Rotterdam is the biggest bunker port and we have plans for the small scale or so-called break-bulk terminal where vessels can bunker LNG. The contracts will be signed in 2013 and the opening of the terminal is planned for 2015. To make LNG usable on a large scale, a good international network of participating ports is a must. That is why we cooperate with other ports, like the ports of Gothenburg and Antwerp, to promote LNG. Next to that, we work on rules and regulations with the government, as these are lacking in regard to bunkering LNG.”

“Other projects regarding sustainability we work on are the shore-based power connections, fumigation solutions and modal split”, continues Paul. “More than 300 berths for inland shipping have shore-based power connections, which means less noise and pollution because of emissions for the vicinity. We also realised such a connection for Stena Line in Hook of Holland. In the field of European shipping, we truly are a frontrunner. We also work on reducing the stench of fumigation. It is outdated to sail on the rivers to fumigate. Together with the

We want to bring the port to the city

municipality of Rotterdam we look into how to realise new regulations. Last, but not least the modal split, another way to achieve more sustainability. We want to reduce the share of road transport from the port. At the moment, about 55% of the containers are transported by truck, 10% by rail and 35% by barge. Our goal is to transport 20% of the containers by rail, 45% by barge and only 35% by truck. To be able to achieve this, we make arrangements about this in new contracts for companies in the port area. The share of inland shipping increases and therefore remains the important player in the Rotterdam hinterland.”

Connecting city and port

As every branch in the maritime industry, the port is in need of technical talent. Paul: “There are 2,000 structural vacancies in the port area per year, which is a big problem for companies. The STC and other education institutions play an important role in providing the industry with new talent, but there is just not enough technical personnel.

As Port of Rotterdam, we try our best to interest young people to work in the port, think of the EIC – Education Information Centre – where school kids get an introduction to the port, and Futureland, where citizens can experience Maasvlakte 2. We are also present at career events and stimulate primary schools to visit the port area. Next to that, there is more and more cooperation with universities, we contribute to a couple of chairs to expand the knowledge of the port. We want to bring the port to the city and make people aware of the fact that almost everything in our daily life, be it your clothes, your TV, your orange juice, your sneakers or your wine, comes from the port, people just still do not realise that. The port facilitates our prosperity.” An initiative Paul is very proud of, is the RDM Innovation Dock, a former shipyard which is converted to a place where students and companies collaborate and focus on new economic activity and sustainable and innovative solutions for the maritime industry, among others. It is a collaboration between the Port of Rotterdam, Albeda College and Rotterdam University to stimulate innovation, renewing and education.

Opened in 2009, the facility is now occupied by 70% and tenants include Imtech, Huisman and Ampelmann. Paul: “The RDM Campus is the delivery room for new innovations for the maritime industry. This is a strength of the Port of Rotterdam: investing against every economic development. We invest € 100 million in the project and it has developed enormously within a short period of time. When you enter the site, there is so much energy. For me, this is a great combination of city, port, innovation and employment.”

Gail van den Hanenberg