2019
Features of Antwerp Port and How Can
Indian Ports Be improved Similarly
Swagataa Dutta
ITOD Project
3/13/2019
Contents
Introduction ..................................................................................................... 2
The Port of Antwerp ................................................................................... 2
History ............................................................................................................ 2
Features ............................................................................................................. 7
The strengths of the port of Antwerp .............................................. 9
Accessibility as the central theme ................................................. 10
Internal projects within the port ................................................... 11
Defining the port boundaries.............................................................. 11
More flexible services .......................................................................... 12
Towards the hinterland .......................................................................... 12
Production and storage facilities ................................................... 13
Specialized service providers ........................................................... 13
Supply chain competitiveness.............................................................. 13
Other Criteria............................................................................................ 14
OCHA ................................................................................................................. 15
Improvements in Indian Ports ................................................................. 16
Introduction ................................................................................................ 16
Market Size .................................................................................................. 16
Government Initiatives .......................................................................... 17
Achievements ................................................................................................ 17
Road Ahead .................................................................................................... 17
What can be better! ................................................................................. 19
Introduction
As part of the course curriculum at IIFT, we students had undertaken an international port visit in
which we received training chiefly on topics dealing with shipping and logistics. This year, IIFT has
arranged a port visit with the Antwerp Flanders Port Training Centre (APEC) at Antwerp, Belgium
from 21/01/2019 to 25/01/2019.
This document talks about our experiences and learnings from International Port Visit Program. It
also talks about our interpretation and inferences drawn from comparing the Port of Antwerp with
Port of Shanghai.
The Port of Antwerp
As the second largest port in Europe, the port of Antwerp is an important transit port in Europe:
more than 300 scheduled calls to more than 800 destinations provide rapid and reliable global
connections. The Port of Antwerp handles an annual amount of 210 million tons of international
maritime freight.
The central position of Antwerp provides its customers a vital link between the world's biggest
maritime routes on the one hand and Europe's enormous centers of production and consumption
on the other hand. 60% of the European purchasing power is to be found within 500 kilometers
around Antwerp. Compared to neighboring ports, Antwerp is the furthest inland (80 kilometers),
allowing it to handle millions of tons of freight. This makes Antwerp the fastest and most sustainable
connection with the hinterland.
History
Before 1800 – from river port to international
seaport:
The first evidence for the existence of the port of
Antwerp dates from the 12th century. Antwerp is
a point of embarkment for passengers travelling
to England and Zeeland, and as an export port for
wine from Germany to England.
Industrial products such as wool and cloth
created more commerce in the city. Great storm
floods made the Scheldt more accessible, enabling
shipping traffic to flourish. The 16th century has
gone down in history as Antwerp’s Golden Age.
The port benefited from the flourishing export of goods produced in the South Netherlands
provinces. Via Antwerp, these products, including art, found their way to France, Spain,
Portugal and Morocco. Halfway the sixteenth century, ten jetties and eight inland ports were
built to facilitate this growth. When Antwerp fell into Spanish hands in 1585 and there was a
blockade on the Scheldt, the city went from commercial world center to an inland port for two
centuries.
1800-1930 Industrial revolution
The influence of the French regime, under
Napoleon's leadership, made shipping on the
Scheldt possible again at the end of the
eighteenth century. Napoleon also decided to
build new shipyards and docks, including the
small dock (Bonaparte dock) and the big dock
(Willem dock). He regarded Antwerp as ‘a pistol
pointed at the heart of England'.
In 1863, the Scheldt becomes toll-free which has a very beneficial effect on commercial activity.
In 1869, more than one million tons of cargo are handled for the first time and this number
will regularly double over the next decades. In this period, the Red Star Line, a shipping
company that transported about two million people to America, also started its activities.
Thanks to the industrial revolution and the use of new techniques, the long-haul trade to
Africa and Asia also starts, and trade with the German hinterland continues to boom. Antwerp
emerges as a European hub and leading international trading companies open offices here.
Antwerp is almost bursting at the seams as a trading city and towards the end of the
nineteenth century decides to straighten the quays of the Scheldt. As the 'vlieten' or fleets are
filled in, new docks are built in the north of the city. Growth to the north continues until the
construction of the third sea lock, the Kruisschans lock, now better known as the Van
Cauwelaert lock. In 1929, hard-working dockworkers handled no less than 26 million tons of
(general) cargo. Antwerp was already laying down the foundation for what is still one its biggest
strengths: ‘every cargo finds a ship and every ship a cargo’. Antwerp is now a world renowned
distribution center, known for its speed and efficiency.
1930-1970 The great leap northwards
Antwerp was one of the European ports that was not
completely destroyed during World War II. And it
meant it was able to resume normal operations very
soon. Thanks to the Marshall plan, Antwerp
developed into Europe's biggest chemical cluster,
which it still is today.
The Belgian government's Ten Year Plan launched an
unparalleled boom from 1956: with the construction
of industrial complexes and the Canal docks, the port
expanded northwards. A couple of kilometers from
the Dutch border the icing on the expansion cake is
the biggest lock in the world: The Zandvliet lock. This
made Antwerp more accessible, which was necessary
for the arrival of huge container vessels.
1970 - 2000 Expansion to the Left bank
The growth to the north literally hit the border,
prompting the first port expansions on the Left bank.
The construction of the Kallo lock started and the
Waasland canal was the backbone of a new dock
complex, connecting the Vrasene dock and
Verrebroek dock in the mid-nineties.
The industry established on the Right bank invested
heavily in the productive capacity. Thanks to the
ongoing increases in scale in shipping, ever bigger
sites are required for the transshipment, storage and
distribution of goods. The Delwaide dock, the Europa
terminal and later the Noordzee terminal are opened.
To allow giant ships to get to the docks efficiently and safely, the Berendrecht lock was opened
in 1989. It took over the mantle of the Zandvliet lock as the biggest lock in the world. The
Berendrecht lock is 500-metre-long (four times the length of the Onze-Lieve-Vrouwe Cathedral
in Antwerp), 68-meter-wide and 17 meters deep. Construction of the Berendrecht lock took
about eight years.
Thanks to these huge investments, Antwerp handled more than 100 million tons of goods in
a year in 1990. In order to continue playing an effective and prominent role as a world port,
the establishment of the Antwerp Port Authority as an independent, municipally-owned
company in 1997, was crucial.
2000 - 2010 Economic and ecological
sustainability
The port of Antwerp is growing steadily, but wants
to do so in a sustainable way. In 2001, an
agreement with nature conservation organization
Natuurpunt was signed.
Peter Symens of Natuurpunt says the following:
“The co-operation with all port actors, the Flemish
public sector administration and the scientific
world is a textbook example for many Flemish and
Western European ports how seemingly
contradictory interests of nature and port
development can be reconciled.
In 2005, the first vessel entered the tidal Deurganck dock. With an extra capacity of 7
million standard containers, Antwerp's container storage capacity more than doubled. The
older port areas to the north of the city have been modernised following big investments by
port companies. Warehouses are fully automated and the All Weather Terminal opened.
Weather sensitive products such as steel, wood and paper can be loaded and unloaded
under a giant covering.
On policy level, the Scheldt treaties are key. Agreements were made with the Netherlands
about accessibility, flood protection and nature conservation. An agreed deepening of the
river was delayed by the Dutch, but by 2010 it was done. This means the biggest container
vessels in the world can now get to Antwerp without any problem and the Port of Antwerp
continues to play a leading role as an international seaport.
2010 - Working on the future
To anticipate ever increasing shipping and traffic,
the Port of Antwerp is working on different projects.
In 2011, construction started on a second sea lock
on the Left bank. The lock will be as wide and as
long as the Berendrecht lock on the Right bank, but
it will be deeper. It will be the biggest sea lock in the
world.
More to the north on the Left bank the Saeftinghe
development zone will be filled. More than 1,000
hectares has been reserved for a tidal dock with
sites for logistics, transshipment and industry.
And knowing that the Waasland Logistics Park
is also taken shape, access for hinterland
transport is very important. With regard to rail
transport, a second tunnel will be dug under
the Scheldt, the Liefkenshoek rail tunnel, in
addition to the existing Kennedy tunnel. In
2014, the first freight train will go through this
tunnel.
In the north of the port near the Berendrecht
lock the Antwerp Coordination Center will be
built in 2014. At a height of about sixty to
eighty meters a central office will be built for
all nautical chain services. This will allow even
better co-operation between the different
services. A central crisis center will also be
established in the building. A year later (2015)
the
Port
Authority
opened
its
new
headquarters. This is a futuristic design floats
over the current building at Quay 63.
Features
Port of Antwerp, formerly a department of City of Antwerp, is privatized as an
Autonomous Municipal Body, with 1 single shareholder (City of Antwerp)
The port of Antwerp is a unique maritime, logistical and industrial platform,
ideally located in the heart of Europe in the immediate vicinity of producers
and consumers. It is the second-largest port in Europe and an important
gateway to the European hinterland and the rest of the world. The port of
Antwerp is multifunctional, with a rich palette of economic activities; it is the
engine of the Flemish and Belgian economy and an important source of
income. The close connection between maritime services, industry and
logistics that is so characteristic of the port is promoted and further developed
wherever possible.
The quality of logistic services is more important than ever for many industries.
For the port’s customers, reliability and dependable delivery are just as
important as cost efficiency. The port of Antwerp is ideally placed to make this
a reality for its customers.
Antwerp seeks to be the port of choice in its customers' supply chains, with
the focus on added value, supply chain performance, maximizing connectivity
(seaward and landward, in IT, networks etc.) and raising the level of its range
of services. Maintaining and further developing the economic function of the
port as a European logistics, maritime and industrial center remains the port’s
most important objective.
This fits in perfectly with the port’s objective of creating added value for the
city and the region. The mission of Antwerp Port Authority is to develop a port
that is vital (competitive and multifunctional), efficient (operational and
reliable), sustainable (with care for the environment and wellbeing, and
financially sound), and supported (as the partner of our employees, customers
and society in general). The port seeks to be a supplier of reliable services for
smooth accessibility and efficient mobility, enabling companies to operate in a
sphere of legal certainty while at the same time offering a liveable environment
for people. Antwerp aims to be the partner of choice for Europe, for Flanders,
for the region and city, for the market, for society and for employees.
To achieve this in a sustainable way it is first of all essential to improve the
port's range of services, to give it more marketing clout and to develop and
implement a shared vision. On the marketing side the port has opted to target
companies in particular regions and sectors and to convince them of Antwerp's
attractiveness. Expert groups with various partners from the port community
provide important support for this effort.
The strengths of the port of Antwerp
The port of Antwerp is able to profit from
its favorable geographical position and
the strong cargo-generating capacity of its
immediate hinterland, enabling it to meet
the needs of its customers with minimum
external costs so as to concentrate on the
logistics chain. The port is further able to
take
advantage
of
its
logistical
opportunities by guaranteeing reliability
and
dependability
of
delivery.
These
elements are to be found in each link of
the
chain,
including
the
seaward
approach, operations within the port, and
distribution to and from the hinterland.
In 2012 Antwerp Port Authority built further on the initiatives of its Total Plan
to strengthen the port’s competitive position. At the General Assembly of the
port community in 2012 the emphasis was on maintaining and further
developing the existing advantages while attracting new trade, and on making
Antwerp even more accessible and attractive as a location for logistics and
manufacturing companies. In other words, Antwerp Port Authority seeks to
retain and win back existing trade (especially in its natural hinterland) while
at the same time attracting new trade (especially in contested areas) thanks to
better interconnectivity.
Antwerp offers logistics solutions to shipping companies, industry and 3PL
operators, so as to raise its attractiveness as a location for logistics and
manufacturing companies while lowering costs and promoting sustainability
and mobility. In order to promote the interconnectivity between the port of
Antwerp and its hinterland, new intermodal connections are developed, the
frequency and cost-competitiveness of existing connections are improved, and
the quality of intermodal services is assured.
Accessibility as the central theme
Within the Port Authority an investment unit and an intermodal unit have
been set up to facilitate investments by maritime and logistics players and to
ensure a sufficient range of rail and barge connections with the main
hinterland regions. Where 2011 was the year of sustainability, in 2012
accessibility was the central theme in the activities of the Port Authority and
its partners within the port.
The accessibility of the port is absolutely essential for Antwerp as an important
link in the worldwide supply chain; not only nautical accessibility but also the
smooth transport of goods to and from the hinterland by the various modes.
The port of Antwerp aims to join the different links in the logistics chain
together in such a way as to make it the preferred port for all shippers and
industrial players in the hinterland. The port will adapt itself in this way not
only functionally but also organizationally. Additional factors that are also
taken into account in all decisions are sustainable service, good industrial
relations and safe working conditions.
The improved sea access has already brought benefits: thanks to the
deepening of the Scheldt the port can now accommodate even the very largest
container carriers. In 2012 no fewer than 167 vessels of more than 10,000
TEU called at the port. Meanwhile the permissible draught has increased to
16 meters sailing upriver and 15.2 meters downriver. However, the possibility
of further developments must always be borne in mind, and constant efforts
must be put into ensuring maximum maritime accessibility of the port, taking
into account the needs of shipping and further improvements in the nautical
chain leading to and from the port.
Significant new steps were taken in 2012 with the development of “chain
operation” (i.e. managing all shipping movements as part of an interconnected
chain, from open sea to berth in port) and the roll-out of APICS2 (Antwerp Port
Information & Control System, generation 2). With an eye to the future,
preparations are being made for the arrival of the very largest units of 18,000
TEU, and the possibilities for further improving the sea access are being
studied.
Internal projects within the port
Various projects are also under way
within the port itself. In addition to
various infrastructure projects –
both
new
construction
and
renovation – there is a whole series
of initiatives for improving logistics
services and offering higher security.
From
the
point
of
view
of
accessibility, it is important for sea
access to dovetail seamlessly with
activities in the port area.
A crucial factor here is to have enough lock capacity. Construction of the
second sea access on the left bank, the Deurganck dock lock, started in 2012.
Once it is completed this will make the sea access secure (because there will
always be at least one lock available) and will more than double the lock
capacity on the left bank. In the longer term the capacity of all locks in Antwerp
will be evaluated with a view to determining what steps must be taken to cope
with the increasing freight volumes and the need to handle ever larger seagoing
ships. One possible solution that has been proposed is to have an additional
lock on the right bank.
Defining the port boundaries
But the infrastructure development of the port goes much further than
providing enough lock capacity. A large number of infrastructure projects were
carried out in 2012 or were in the preparation stages. One essential
precondition was to define the port boundaries in terms of the Regional Land
Use Plan (so-called GRUP). By laying down strict boundaries in the plan,
companies are given legal certainty about the development possibilities, which
in turn will enable the port to continue playing its role in future as the engine
of the economy.
More flexible services
Great efforts were put into services in 2012. Among other things the Customs
system was made more flexible, and logistics services were further expanded
with the introduction of APCS (Antwerp Port Community System). In addition,
the role of the port as a link between the maritime “foreland” and the
continental hinterland was further developed with a number of internal
projects within the port itself. Road, barge, rail and pipeline transport were all
employed to offer the most competitive pricing.
Towards the hinterland
Within a radius of 450 km by various modes, Antwerp has a competitive
advantage over rival ports. Inside this core area Antwerp aims to position itself
even more strongly in terms of costs and range of services. But at the same
time more far-off regions will certainly not be forgotten. Thanks to its extensive
range of logistics services and overseas destinations, Antwerp plays an
important role for other economic centers in Europe such as Paris, Lyons,
Vienna and central Europe. For the benefit of this more distant foreland and
hinterland, the Port Authority will invest in projects specifically aimed at
retaining existing flows of goods to and from the port, or attracting new sources
of trade.
The top 10 of the biggest chemical producers in the world are present in
Antwerp, either with their supply chain or with a production unit.
The four refineries (Total, ExxonMobil, Gunvor Petroleum Antwerp, ATPC
(Bitumen)) and three steam crackers in the port provide guaranteed availability
of raw materials. The largest single train steam cracker is located in Antwerp.
The recent construction of the biggest ethylene terminal in Europe by Ineos
Oxide confirms Antwerp as a hub for chemical feedstocks. The close cooperation between the chemical companies at a production level, but also in
the field of energy and services such as waste treatment, results in extremely
cost-efficient production.
Production and storage facilities
Production companies continue to invest in existing and additional production
facilities and in the modernization of their existing facilities in the Port of
Antwerp. Oil traders also invest actively in the Port of Antwerp in extra storage
capacity.
Specialized service providers
Specialized logistics service providers in the port guarantee safe, high-quality
storage and further handling of oils, chemicals and gases in the port. Excellent
connectivity with overseas destinations and the European hinterland
guarantee a stable supply of feedstock and transport of processed products
Supply chain competitiveness
Price competitiveness of raw material and feedstock supplies

good logistical access

strong local production

proximity/easy access of key markets and most important customers
Degree of cluster integration

beyond feedstock-product
Efficiency of overall supply chain structure

presence of LSP’s

various transport modes available

supply chain collaboration opportunities
Presence of leading global companies
Other Criteria

Low-risk and stable investment environment (fiscal, regulatory, SHE, etc.)

Price competitivity of energy, utilities and services

Good (and stable) energy supply infrastructure

Price competitivity of workforce

Good schooling and education facilities

Expansion possibilities

Availability of land
OCHA
OCHA is the training centre for blue-collar port workers in the port of Antwerp.
OCHA belongs to CEPA, a cooperative organization of private port operators. It
has long tradition in maritime port operations and skill training for port workers
("dockers") in Belgium.
They provide over 450 training sessions in different disciplines annually. It is
based at the port of Antwerp (Belgium) which has a 35,000 m² training facility.
Facilities include:







classrooms
a container yard
a marshalling area
a deck crane
a mobile crane
simulated ship sections for operations
three warehouses with equipment for the handling of all types of cargo
State-of-the-art simulators with several screens are available for:



mobile cranes
ship to shore cranes
straddle carriers
Improvements in Indian Ports
Introduction
According to the Ministry of Shipping, around 95 per cent of India's trading by
volume and 70 per cent by value is done through maritime transport.
India has 12 major and 200 notified minor and intermediate ports. Under the
National Perspective Plan for Sagarmala, six new mega ports will be developed in
the country. The Indian ports and shipping industry plays a vital role in
sustaining growth in the country’s trade and commerce. India is the sixteenth
largest maritime country in the world, with a coastline of about 7,517 km. The
Indian Government plays an important role in supporting the ports sector. It has
allowed Foreign Direct Investment (FDI) of up to 100 per cent under the
automatic route for port and harbour construction and maintenance projects. It
has also facilitated a 10-year tax holiday to enterprises that develop, maintain
and operate ports, inland waterways and inland ports.
Market Size
During FY18, cargo traffic at major ports in the country was reported at 679.36
million tonnes (MT). In FY19 (up to November 2018) traffic increased by 4.83 per
cent year-on-year to reach 461.22 million tonnes. Cargo traffic at non-major
ports was estimated at 491.95 million tonnes FY18 and grew at 9.2 per cent
CAGR between FY07-18.
The major ports had a capacity of 1,452 million tonnes by FY18 end. The
Maritime Agenda 2010-20 has a 2020 target of 3,130 MT of port capacity.
The government has taken several measures to improve operational efficiency
through mechanisation, deepening the draft and speedy evacuations.
Investments/Developments
Essar Ports will invest US$ 70 million in Hazira port by 2020.
The Indian Minister for Shipping, Road Transport and Highways, Mr Nitin
Gadkari, announced a massive investment in India’s ports and roads sector,
which is likely to help boost the country’s economy. The Indian government plans
to develop 10 coastal economic regions as part of plans to revive the country’s
Sagarmala (string of ports) project.
The zones would be converted into manufacturing hubs, supported by port
modernization projects, and could span 300–500 km of the coastline. The
government is also looking to develop the inland waterway sector as an
alternative to road and rail routes to transport goods to the nation’s ports and
hopes to attract private investment in the sector.
Ports sector in India has received a cumulative FDI of US$ 1.64 billion between
April 2000 and June 2018.
Indian ports and shipping sector witnessed three M&A deals worth US$ 29
million in 2017.
Government Initiatives
Some of the major initiatives taken by the government to promote the ports
sector in India are as follows:
Net profit at major ports has increased from Rs 1,150 crore (US$ 178.4 million)
in FY13 to Rs 3,413 crore (US$ 529.6 million) in FY18 while operating margin
increased from 23 per cent to 44 per cent.
In May 2018, Ministry of Shipping allowed foreign flagged ships to carry
containers for transshipment.
In March 2018, a revised Model Concession Agreement (MCA) was approved to
make port projects more investor-friendly and make investment climate in the
sector more attractive.
Achievements
Following are the achievements of the government in the past four years:
 Five times more growth in major ports’ traffic between 2014-18, compared
to 2010-14.
 Increased efficiency has led three times increase in net profits of major
ports between FY14-18.
 Turnaround time at major ports reduced to 64 hours in FY18 from 94
hours in FY14.
 Project UNNATI has been started by Government of India to identify the
opportunity areas for improvement in the operations of major ports. Under
the project, 116 initiatives were identified out of which 91 initiatives have
been implemented as of November 2018.
Road Ahead


Increasing investments and cargo traffic point towards a healthy outlook
for the Indian ports sector. Providers of services such as operation and
maintenance (O&M), pilotage and harboring and marine assets such as
barges and dredgers are benefiting from these investments.
The capacity addition at ports is expected to grow at a CAGR of 5-6 per
cent till 2022, thereby adding 275-325 MT of capacity.




Under the Sagarmala Programme, the government has envisioned a total
of 189 projects for modernization of ports involving an investment of Rs
1.42 trillion (US$ 22 billion) by the year 2035.
Ministry of Shipping has set a target capacity of over 3,130 MMT by
2020, which would be driven by participation from the private sector.
Non-major ports are expected to generate over 50 per cent of this
capacity.
India’s cargo traffic handled by ports is expected to reach 1,695 million
metric tons by 2021-22, according to a report of the National Transport
Development Policy Committee.
Within the ports sector, projects worth an investment of US$ 10 billion
have been identified and will be awarded over the coming five years.
What can be better!
Training Programs
Training Programs for Indian dock workers. A program with simulated visual
driving conditions, in all-weather terrains. OCHA is a very good training
program that Indian ports can learn from, to increase efficiency.
Nxt Port
NxtPort's main goal is to unlock the potential of sharing existing data amongst
the port's players. The NxtPort Data Utility Platform allows faster, more costeffective, as well as more efficient transfers of data between the different players.
The platform creates more transparency in the whole shipping process. NxtPort
aims to increase operational efficiency, safety and revenue.
A second means to unlock the huge value at stake is to allow market applications
to be built upon the existing data. This way, the data within the port is not only
shared in a better way, the combination of existing data will lead to innovative
solutions as well. They create new business and fresh revenue streams for the
Port Community and its individual players.
Land Lease process
The port also adopts a unique approach while leasing land for terminals – instead
of awarding lease to the highest bidder promising revenue, priority is given to
entities that promise maximum job opportunities and best utilization of
resources.
Hinterland connectivity
India needs to utilize the river connectivity for its vast lands. The present
government is already working on this. The diamond connectivity of the four
major rivers will decrease the cost of transportations for goods majorly. Also, the
use of barges will reduce road transport requirements and hence reduce traffic.