Antwerp Port, the second largest port of Europe that works on a landlord model, has many lessons for the Indian ports. The Government-owned port does not hike tariff every year; it markets itself as a port of preferred choice and even proactively helps aggregate cargo to ensure faster evacuation by rail and inland waterways. Mr Marc Van Peel, Chairman, Port of Antwerp, who is currently visiting India spoke to Business Line . Excerpts:
Why did you work towards changing the transport mode shift?
As in India, even in Belgium, we are stuck with huge traffic on roads. A port is as strong or as weak as the total supply chain that it is functioning in. Despite your best efforts, even if one part of the chain is not functioning, then your performance will be hit. So, we did not wait for other players to act. We became as a port authority, responsible for creating the supply chain to link the port. We worked towards developing a strategy to enhance modal split towards rail, towards barge, even towards pipelines given our petrochemical industry.
We did our best to get the cargo bundled. We contacted different private players - everybody was small and could not provide cargo for one full train, or one full barge connection. Sometimes they were competitors. We created an arrangement between them. So, they could bring in cargo and put them in one train or one barge. Organising cargo flow by rail or by barge became our role as a port authority. This cargo went off the road.
As a landlord port, how many port operators do you deal with?
We have two major port operators in containers – DP World (erstwhile Dubai Ports World) and PSA (Port of Singapore Authority). We are also the first break-bulk port in Europe. Then, we have lot of smaller private players who also do the cargo handling.
In Antwerp Port, what is the period of concession agreement with operators? What are the bid parameters?
Usually 30-35 years. The bid parameters are different - depends on location of the port. For example, more and more, we have the sustainability criteria. We have inter-modal criteria. Then there is the price level (revenue offered to Antwerp Port).
How do you define sustainability criteria in your bids?
For instance, we are measuring emissions. We are lowering tariffs if they use modes of transport other than road.
You were in talks with Essar Ports in India for investing in their ports. What is the status?
We will see them this week. We are still negotiating.
What are you investment plans for India? Are you considering investing in other Indian ports?
That's one of the possible issues of our negotiation with Essar Ports. But it's not for sure yet. In order to potentially invest, we are talking only with the Essar now. At a macro level, not being present in India, as a major European port, would be a mistake. This is a part of promoting our port as a part of the global supply chain which involves being present in those parts of the world that will be the economic future of the world.