Published on November 23, 2009
ADVERTISING FEATURE 24th SEPTEMBER 2008 PORTS& AIRPORTS Investment in infrastructure Shipshape New wave transit connections Dutch team Globalisation of the world’s economy has stays ahead spurred greater air and sea traffic along with modern infrastructure development with R&D I From high-tech luxury and he world's seaports and ship- ship routes have revolutionised the military ships to dredgers and T yards have been key to economic development for millennia,and since sea shipping industry in the past several decades by cutting costs cargo vessels, Damen hones its competitive edges with Kommer Damen, Chairman of the invention of the airplane,airports dramatically. technology and training Damen Shipyards Group have also become vital to spurring Europe's shipping companies are growth and spreading wealth in the among the world's most efficient and Kommer Damen knows the impor- “This technology is not easy to cities and regions they serve. competitive, and are also, in aggre- tance of staying well positioned for transfer to low-cost countries.You Seaborne trade around the world gate, the world's biggest. Its shippers the next breaking wave.The have to develop to be ahead,” says has grown tremendously since 2000, represented 41 per cent of the glob- Chairman of Damen Shipyards Mr Damen, alluding to the impor- rising to a record level of 7.1 billion al merchant fleet in 2006, accord- Group is carrying on the legacy built tance of proprietary R&D.“As well tons in 2005,according to the World ing to the European Communities by his father and uncle, who founded as high-tech ships, we build simple Trade Organisation,while during the Shipowners' Associations annual a single shipyard in the Netherlands cargo vessels, which are increasingly same period the number of interna- report. in 1927.The group pulled ahead of built in the Far East and Eastern tional air passengers grew by 5 per With sea shipping gaining in im- its competition in 1969 by introduc- Europe.” cent annually, despite disruptions portance year after year, the work ing standardised designs to its ship Despite its positioning as one of caused by the September 11, 2001, of Europe's shipyards is also adding manufacturing operations that guar- Europe’s major shipbuilding groups, terrorist attacks in the US and the more to the local economy. anteed well-proven vessels, very which offers products and services Severe Acute Respiratory Syndrome Members of the Community of short delivery times and competitive in over 30 shipyards and related epidemic in 2003. European Shipyards Associations to- prices.As the trade winds eventually companies while passing its The tourism industry is among the gether represent about 20 per cent turned, and the tide of inexpensive economies of scale along to cus- most important in Europe, which is of world shipbuilding capacity.They labour in Asia and other developing tomers, the Dutch group’s manage- the home of the world's top two directly employ more than 100,000 economies rose at an unprecedent- ment has shown it can steer toward destination countries, France and highly skilled workers, and indirect- ed pace, the immense Dutch ship- success and avoid sinking into slug- Spain, and also had four other coun- ly generate at least three times as building group faced a flooded mar- gishness. tries in the top ten in 2006. many in associated businesses. ketplace. Mr Damen himself is acutely Governments are aware that airports As the globalisation of the world's The widespread distribution of aware of the unenviable odds of often give travellers their first im- economy has increased, seaports, government subsidies further cruising into the gargantuan wave of pression of a country and city, and shipyards and airports have become swelled the market and created a cheap, available labour in an increas- many have invested huge amounts of ever more important. Our modern perfect storm that tilted the playing ingly globalised economy.“There is money to improve that first experi- transportation infrastructure has field and left some European ship- so much difference between labour ence, and increase efficiency at the changed the lives of literally billions yards scrambling to compete.That costs here and those in developing same time, as the new terminals at of people, allowing tourists to reach is where Mr Damen charted the fu- countries that you cannot bridge Madrid's Barajas and London's previously unheard of destinations, ture of his family’s namesake in the this – ever,” he comments.This is Heathrow airports demonstrate. putting fresh roses from Ecuador development of high-tech ships why he is leading the group toward Just as airports have permitted into Valentine's Day bouquets in that can serve the very precise investments in training in order to Photo: Aena people to travel more quickly and New York and permitting the dis- needs of military and the oil indus- face the current labour crisis, as well efficiently around the world, the tribution of low-priced merchan- try, while producing fast ferries, as more efficient technologies that containerisation of seaports and dise from Asia's factories to house- luxury yachts, and dredgers for a address surging oil prices and envi- the setting up of regular container holds around the world. Inside the striking new Terminal 4 at Barajas airport in Madrid range of customers. ronmental concerns. Distributed with The Daily Telegraph.
ADVERTISING FEATURE 2 PORTS&AIRPORTS 24th SEPTEMBER 2008 Perfect climate brings trade and ‘We find the most effective transport’ tourism cruising into Las Palmas I NTN’s business has quadrupled in size by Halfway between Newcastle providing global transport solutions upon Tyne and the Equator, Las with local attention to detail Palmas is a hotspot for tourism Despite the exuberance and intercontinental trade displayed by Norwegian Transpor t Network tudies by climatologists at of merchant ships passing (NTN) CEO Kjetil Abo S anAmerican university have, in the past, suggested that Las through the port in April 2008 was up almost 6 per cent on as he courts new oppor- tunities for Norwegian Palmas de Gran Canaria, joint figures from the same month Transport Network as far capital of the Canary Islands last year and total traffic as China and India, he is along with Santa Cruz de through the port also enjoyed adamant that a local fo- Tenerife, has the world’s best a 9 per cent increase. Fresh cus is the key to success climate.Average temperatures and frozen fish, general mer- on the motorways of the hover at a comfortable 25ºC chandise and container car- sea. Kjetil Abo, during the summer months go all pass through Las Palmas, “Instead of having the CEO of NTN and fall no lower than 15ºC in coming from countries both target for our company to winter, making this city of near and far to the island, sit- centralise all our activities pointed approach emerges 400,000 inhabitants a popular uated to the west of the in one big hub, or one port, the buying power and destination for tourists. Moroccan coast. we are doing the oppo- time-tested expertise of Las Palmas, however, is not Plans are also under way to site, we are working with the unified group of com- only a city with a rich cultur- develop the port.The Canary the local industries panies that bloomed out al scene and a bustling tourism Islands Special Zone is being through the local ports,” of a merger of five sector, which consistently at- set up to complement the al- says Mr Abo, whose NTN Norwegian companies tracts visitors who want to ready established free trade group has quadrupled in during the nineties, the spend some well deserved zone at Las Palmas port.The size between 2004 and oldest of which was found- leisure time enjoying its at- Canary Islands Economic and 2006. “By doing this, we ed in 1842. Those effi- tractions.This city is a key lo- Fiscal Regime, applicable in avoid the trucking and the ciencies also allow NTN to cation for intercontinental these special trading areas, Rising trade traffic and an almost 28 per cent increase this year alone in cruise ships docking at handling over the country. decrease the footprint it trade thanks to its position at allows investors to enjoy Las Palmas have bolstered plans to develop and enhance the port. Our aim is always to find leaves on the seas and the the crossroads between favourable conditions on in- the most effective trans- environment, and sharpen Europe, Africa and America. vestments, which include tax allow for an increase in the economies. Recent discover- rection and don’t go to other why the tourism sector is as port in and out of the its competitive edge. While figures for trade in 2008 exemption and a reduction amount of container space, ies of oil and gas in neigh- continental African ports,” he concerned about infrastruc- country.” Last year, NTN’s mo- are looking promising,the city’s in stamp duty,and gain access thus encouraging a further bouring Mauritania,for exam- remarks. ture development as those in- While NTN’s 49 sub- mentum pushed it toward port authority hopes,through to smoother investment growth of traffic and improved ple, have drawn the city’s at- It is also important that, in volved in the trade sector. sidiaries and 500 employ- a partnership with Tschudi its ambitious development processes. efficiency. There is a general tention to the changing nature order to maintain its interna- Up until April 2008,year-to- ees are spread across ten Shipping Company to cre- projects, to further reinforce These economic benefits political consensus that a of its location. As part of Spain tional reputation, Las Palmas date figures for cruise traffic countries and more than ate Tschudi Lines North Sea, Las Palmas’ role as centre of are not the only changes tak- wholistic approach to urban and thereby a member of the must maintain its high quality showed an almost 28 per cent 150,000 square metres of a short sea container line the four cardinal points. ing place. Plans to implement development has to be taken EU, the Canary Islands have standards and respect for the increase on 2007. More than warehouse space, each has that is capitalising on grow- Connected to ports in 180 a major urbanisation project too. In other words, as Mr enjoyed greater development environment on the island. €450 million (£356 million) kept its local brands their ing shipping opportunities countries, Las Palmas has the in the La Isleta isthmus,an area Saavedra suggests,“You don’t and prosperity than their Potential contamination of sea- generated by tourism each close relationships with between Norwegian ports, innate international outlook of the port, are currently be- have to only fix the posterior North African neighbours and water around the port has ma- year in Las Palmas makes a sig- local port authorities. Rotterdam, and the United of a city that understands its have therefore been able to jor implications for Las Palmas nificant contribution to the lo- Beyond NTN’s pin- Kingdom. economic stability depends on offer greater efficiency as a hub and the island of Gran Canaria. cal economy, but Councillor far more than domestic de- for international trade.The dis- “We have desalinated water for forTourism Aday Ruiz Santana velopments.That’s why the city covery of energy resources in human consumption,” says Mr wants to make sure that visi- council is looking to Asia as the next big import-export part- North Africa, at such a fragile time for global energy mar- Saavedra.“If there were a boat near our desalination plants, tors continue to spend in his city.“We have spent many years Finsea: Italy’s ner. Mayor of Las Palmas de Gran kets, however, has made Las Palmas think twice about its current competitive edge. which produced nearly 100,000 cubic metres of water per day, and it had an accident that pro- in the wilderness and tourism in Las Palmas de Gran Canarias has decreased;now we are de- logistics leaders Canaria, Jerónimo Saavedra Acevedo, is aware of his city’s Mr Saavedra is aware of the duced contamination in the signing a new tourism strate- I Diversification is fer passenger and hotel eastern aspirations:“I think it effect that discoveries in coun- water, it would create a secu- gy for the city which is agreed the key to services. Plus, there are is very good that the port of tries like Mauritania could have rity and subsistence problem.” upon by all political parties and sustained success plans to boost terminal Las Palmas has, over the past on their economic develop- Plans to develop a new de- institutions,” he comments. for the Italian space, largely to accom- few years, been developing a ment: “We have to forecast salination plant on the other A strong focus on cultural maritime and modate increasing import policy of contacts, exchange that in 20 or 30 years, the side of the city will contribute activities, potential concerts terminal operators cargo arriving from Asia. and meetings of port opera- poverty that most of the coun- to solving the potential prob- during the Christmas period, “We are doing a lot,” tors with Shanghai.” tries of West Africa have now lem, but Las Palmas and the and festival tourism should al- Known for its precise and comments President Luigi Some Canaries-based com- will lessen and there will be re- port authority is still aware of so encourage tour operators speedy service, Genoa- Negri. “For example, last panies are also setting up Asian Jerónimo Saavedra Aday Ruiz Santana, fineries, more consumerism, the potential risks of ineffi- to allow their clients to ap- based Finsea can speedily year we moved around outfits to maintain this care- Acevedo, Mayor of Las Councillor for Tourism, Las more traffic and even more ciency and is steering well away proach Las Palmas not as a move cargo from its port 420,000 deals in our role fully nurtured relationship. Palmas de Gran Canaria Palmas de Gran Canaria commerce.” from this approach to devel- stopover but rather as a place space to all inland desti- as shipping agents. Every Their understanding not only The mayor sees that Las opment and safety. to spend quality time, enjoy- nations. In fact, the Italian year we improve our busi- of Asian markets’ interests in ing reintroduced after having stretch of the isthmus, we al- Palmas and the Canary Islands Trade ships are not the on- ing the perfect climate and the holding company hauls the ness in Italy.” emerging African nature, but come to a halt due to politi- so have to request tenders for in general will have to fight to ly vessels that stop at Las quiet sense of change taking most cargo of all Italy’s According to Negri, the also of their own competitive cal issues in recent years. the development of everything maintain the current position Palmas port, which explains over the city. shipping agents. company’s operations have advantages in this new eco- Now, fresh momentum is on the sea front.” Change and as the favoured trading hub in The enterprise’s ship- improved steadily since nomic situation, means that behind the project and a pub- modernisation are on the way North Africa.“This has to be ping and logistics activi- port services were priva- traders who benefit from the lic tender will be announced, soon. a concern for the management ties span the maritime tised in the early 1990s. their islands’ strategic position requesting the ideas of archi- Las Palmas does not, how- of our ports in terms of our field, from tramp and lin- “Our dream is to have our are not resting on their laurels. tects worldwide for solving lo- ever, only respond to changes competition and making sure er shipping to custom bro- own trains and railroads,” So far in 2008, the port of gistical challenges facing the in its own urban and logistical the great producer and seller kerage, logistics and ter- he adds, “especially fol- Las Palmas has seen increased port due to its limited space. needs, as has already been of the next decade – that is Asia minal services. lowing EC regulations that traffic,confirming its interna- The intention is that efficient shown through its growing re- and in particular China – ori- The Genoa-based firm state the railway system tional reputation.The amount planning and development will lations with emerging Asian entate themselves in this di- recently partnered to of- here should be privatised.”
ADVERTISING FEATURE 24th SEPTEMBER 2008 PORTS&AIRPORTS 3 Riga pumps new life into trade arteries Trade traffic Latvia’s capital city is raising competitiveness with fresh investment in its road and seaport infrastructure heads A long the Asia-Europe transportation corridor, gic plans to develop the city’s main trade arteries. The so offer fresh opportunities for economic growth in con- European Transport Network, raising competi- roads are one of the ele- ments in this trade,” explains Modernisation of ports in- frastructure at Riga Freeport gistics centres.The port han- dled 25.9 million tonnes in ‘strait’ for Riga is emerging as an indis- pensable link in the chain of Ministry of Transport, head- ed by Ainars Slesers,is work- struction and transport lo- gistics. The 16-mile motor- tiveness on a global scale. The stretch of road will al- Prime Minister Ivars Godmanis.“But cargo is be- is helping to achieve EU goals to create a “motorway of 2007 – the largest rate of turnover in the port’s nine Melilla global commerce. Airports, ing to balance the liberalised way project is set to be the so divert sea and road traf- ing brought by sea to our the sea.” In the past decade, centuries of operation. Riga motorways,and seaports are economic environment with largest transportation infra- fic further away from the Latvian ports. For that rea- annual turnover at Riga Freeport is a leading partner poised to substantially ben- EU mandates to promote structure project in Riga medieval cobblestone son, once we improve the Freeport has doubled. Over in the Dangerous Goods in efit from plans to overhaul competitiveness and attract over the last few decades. streets of Riga’s Old Town, capacity and turnover vol- the course of several years, the Baltic Sea Region its infrastructure.As the main investments. After work finishes in a a Unesco World Heritage ume, Riga will help boost the management shifted fo- (DaGoB) initiative, a training manager of construction and Spearheaded by the Riga decade’s time, the motor- Site. trade in the whole EU, as cus from cargo loading to programme designed to im- development, the Riga City City Council, the Northern way will integrate Riga “Western Europe trades well as in eastern markets promoting greenfield devel- prove efficiency and safety in Council has unveiled strate- Transport Corridor will al- Freeport into the Trans- with big eastern markets and like Russia.” opment of factories and lo- these vital waters. Development and modernisation ‘Riga Freeport has over 800 at Riga International Airport hectares for greenfield investment’ I Rising passenger I Andris Argalis, Vice Mayor We are trying to develop and meet the numbers of 25% and of Riga, outlines the competitive needs of our customers of our port and we Arturo Esteban plans for expansion call advantages of the city’s are constantly improving our technical Albert, President of for astute management port and its plans to maximise its services and reconstructing all our facilities in the Port of Melilla convenient location order that it will fully meet top standards. That Sparked by the low-cost airline is the reason why Riga Freeport is more The port of Melilla has al- revolution, Riga is already recog- What is the development programme of competitive. ways held a strategic posi- nised as a reawakening cultural Riga Freeport until 2010? tion – a vital link between and tourism destination on the The main point is to move port cargo activity How are you financing these new port Europe andAfrica.Founded map of Europe.Thanks to from the city centre closer to the sea and free infrastructure projects? in 1497,the historic enclave Ryanair’s presence, London and up more space for the development of After joining the EU in 2004, we have access on the North-African coast Dublin remain the most popular businesses and cultural centres. We have signed to European Regional Development funds. We is one of Spain’s oldest cities. routes, both representing an agreement to build a big started preparing projects two As a supply point,Melilla around 15 per cent of total traf- modern container terminal years ago, and now we are in the long-served as a pillar of fic destinations. In March, near the sea and our biggest progress of technical design with the Spanish Empire inAfrica. Latvian budget carrier airBaltic plan is to shift our coal government approval. For port President Arturo unveiled nine new routes con- terminal to Krievu Island, on The European Cohesion Fund Esteban Albert, the goal is necting Riga to more European the left-hand side of the can fund approximately €120 to build on that tradition. destinations including Venice and Western Dvina River. At the million of costs and we are also The port already offers Nice. moment it is very close to the working with the European competitive tax and tariff in- Accession to the EU in 2004 centre of the city, creating a lot Development Bank, which already centives,but there are plans coupled with the signing of an of pollution. finances existing projects. The to further capitalise on open skies agreement enabled new container terminal will be growing container traffic Latvia to operate an unlimited What are you doing to developed by private financing. through the Strait of number of flights.“Our advan- improve competitiveness? Gibraltar. tage lies not only in our geo- Compared to other ports in How are you prioritising The new passenger ter- graphical location, but also in Members of the board (from left): Dagnija Kalnina, Janis Balkens, Europe, Riga Freeport has more environmental protection? minal, Estación Marítima, the change in aviation policy, Krisjanis Peters (chairman), Rota Murniece and Juris Kanels than 800 hectares of available Riga Freeport is unique because will help boost tourism.Mr which improved our competi- land for greenfield investments Andris Argalis, we are surrounded by nature Albert hopes it will be a tiveness,” says Krisjanis Peters, 25 per cent – an impressive feat vate capital and strategic part- either for business centres or Vice Mayor of Riga protection areas. social hub for the city,com- Chairman of the Board of Riga for a city of 747,000.As a result, ners to develop, operate and logistics. So we are coordinating our plete with a convention International Airport.“We re- Mr Peters and his team have im- administer future expansions. In We are close to the borders with Russia investment decisions with environmental centre and aquarium. alise that Riga Airport is one of plemented an expansion plan to May, the airport’s management and Belarus so foreign companies are coming groups in Latvia. Because all terminals at Riga He said ferry traffic has the key economic driving forces meet growing demand and in- opened an international tender here and looking for opportunities. Taking into Freeport are private, we choose the best already increased and the in the country, and I think that crease traffic in the coming to realise the €150-200 million account the rapid development of Russian, available technologies to decrease costs in the number of visitors grew by this synergy is what makes us as decades.The goal is to enable modernisation and development Kazakh and Chinese ports, we are able to future. 40 per cent last year.“We effective as we are.” the airport to handle a capacity plan.After construction is com- serve these markets. By eventually moving We accepted ISO 14001 guidelines to are at the gate of Europe Last year, Riga International of 20 million passengers every plete by mid-decade, an entirely operations closer to the sea, costs will be become environmentally friendly and as a and at the gate of Africa,” Airport served more than three year. new airport will emerge inte- cheaper. result, our railway and car parks became Albert says. “We are the million passengers, increasing A state-run company, Riga grating existing facilities into a Furthermore, we decided not to increase cheaper because we chose the best step between East and total passenger traffic by over International Airport seeks pri- new terminal. port payments, despite rising global inflation. technologies. West.”
ADVERTISING FEATURE 4 PORTS&AIRPORTS 24th SEPTEMBER 2008 ‘We try to find an equal balance The environmental balancing act between quality and low prices’ I The skies are rapidly catching up with congested majority of the energy used is generated by wind.” The national airports service vestors whilst retaining full own- ership of the air traffic control roads as an area of environmental Whereas the onus for environmental controls provider, Aena, has overseen record functions. The new model envis- aged also allows regional govern- concern – a predicament Aena at specific airlines falls un- der the remit of the EU, passenger numbers and massive ments to participate in the man- agement of the country’s top air- is keen to combat resulting in initiatives such as carbon offsetting, Aena airports expansion ports; Madrid and Barcelona. “It is logical that the government As people’s awareness of the environmental impact is compelled by its own government to implement ena (Spanish Airports and Air Spanish airports account for 40 should analyse the alternative man- of increased air traffic is expiatory procedures. A Navigation) is a purely state- owned company with no private in- per cent of all air traffic in Spain, which last year peaked at 210.4 agement models of a company that is so important for this country.The piqued by non-profit or- ganisations and the media, “In Barajas (the district of Madrid from which the vestors and no private-sector in- million passengers,another record. current model has worked suc- airlines and air transport airport takes it name) 100 put.It is also the largest airport op- These figures have been made cessfully for 15 years, but natural- service providers face a million euros have been erator in the world, with respon- possible via a 6.2 billion euro ex- ly the government has been look- challenge to balance the invested in soundproof- sibility for 47 airports worldwide, pansion at Madrid Barajas, which ing at how best to cope with grow- necessity for reparative ing homes. In a few days including all 26 of Spain’s as well furnished the airport with its new ing demand over the next 15 years. measures with the bot- time we will be opening as further installations in Mexico, Terminal 4 – the largest building in I think that a new model whereby tom line and the sway of a recuperation centre for the USA, Bolivia, Cuba, Colombia, Europe in terms of floor space – the Spanish autonomous commu- public opinion. At Aena, wildlife in which we have Sweden and the UK. and a major expansion at El Prat, nities as well as local governments the issue is one of par- invested over seven mil- Although a state-run company – with another new terminal due to and the private sector can enter ticular concern, and one lion euros.We are giving with all installations the property be inaugurated in 2009.While the the airport management side of that Javier Marin has tak- this centre to the com- of the Spanish state – Aena is man- onus falls on the two largest air- the business makes sense. Details en a personal interest in munity of Madrid to com- aged as a private company and fund- ports in Spain to take the bulk of about the model chosen and how mitigating. pensate for the environ- ing is completely separated from passenger arrivals, the increasing the company is to be reshaped yet “In Spain we have dis- mental impact on the lo- state budgets.No government sub- flight frequency of low-cost carri- need to be revealed but, in any incentive measures, in- cal fauna.All of these en- sidies exist and there are no fi- ers and a sweeping array of desti- case, Aena’s good financial results cluding penalising the use vironmental requirements nancial contributions whatsoever nations have made further invest- must be taken into account.The air- of older, noisier craft with are followed up by those from the state coffers.For this rea- ments at regional airports a priority ports in Spain have over 120,000 taxes that are paid to the who oversee them, such son, it is imperative that a business for Mr Marin.
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