Last year, turnover of the Port Authority increased by 2.6% to €676.9 million. This was mainly due to a 4.9% rise in the throughput of goods as a result of which the Port Authority received more port dues. Costs are under control, therefore profit development is sound. Nevertheless, profits fell by 1.7% to €211.6 million due to the redemption of a long-term loan. This has reduced the debt that has been accumulated due to the construction of Maasvlakte 2, according to the annual report (only available in Dutch) published by the Port on Tuesday.
Operating revenues +2.6%
The two main sources of income for the Port Authority are the lease of sites and the seaport dues that ships pay when they visit the port. Revenues from the lease of sites rose by €3.3 million (+1.0%) to €340.8 million. This is the sum of – on the one hand – the allocation of a site to Sif - Verbrugge at Maasvlakte 2, indexation of contracts and renewal of contracts at revised prices, and – on the other – termination of the contract with Shtandart, resulting in the Port Authority recovering a site. The port dues increased by €10.3 million (+3.4%) to €316.5 million, which is less than the rise in throughput (+4.9%). The Port Authority granted environmentally-friendly ships discounts on port dues totalling €3.8 million. Overall, operating revenues rose by €17.1 million (+2.6%) to €676.9 million.
Operating expenses +3.3%
Operating expenses rose by 3.3% to €133.6 million, mainly due to higher costs for the management and maintenance of port infrastructure and investments in innovations such as PortXL and SmartPort. Costs for internal business operations remained stable. The income from participating interests amounted to €8.9 million, over 50% more than the previous year. The size of this item is determined mainly by the successful participation in the port of Sohar (Oman). For the redemption of a loan the Port Authority paid a one-off sum of €19.2 million. This is the main reason why profit for 2015 declined by 1.7% to €211.6 million.
Corporation tax
Dividends of €91 million
In conformity with long-term agreements, the Port Authority will propose to its shareholders – the municipality of Rotterdam (70.83%) and the State (29.17%) – to pay dividends of €91.0 million (+2.0%) for 2015: €64.5 million to the municipality, and €26.5 million to the State.
Corporation tax
The investment portfolio for the coming years is well-filled with projects such as the diversion of approximately 4 km of the Port Railway Line via the Theemsweg. This concerns public infrastructure to which the Port Authority will contribute almost €100 million. In competing ports in neighbouring countries, the government pays for that kind of public infrastructure. It is therefore particularly unfortunate that the European Commission has decided that the Port Authority will have to pay corporation tax as from 1 January 2017. The Port Authority is considering an appeal against this decision because it violates the principle that a level playing field should exist within Europe.
Source: Port of Rotterdam
Source: Port of Rotterdam