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Thursday 09 September 2010

Competition

To an increasing extent, the containers handled contain goods sailed to and from a number of ports in the Baltic Sea area. With weekly calls by the world’s largest container ships from Maersk Line and daily connections to most of the Baltic Sea region through fourteen shipping companies, the Port of Aarhus has a fine-meshed route network, which more and more transport buyers are beginning to realise. Competition is key for the Port of Aarhus, and its competitiveness is affected by both external and internal competition.

Port of Aarhus Denmark

Aarhus Havn

Most efficient in Europe

Externally, the Port of Aarhus benefits greatly from the daily competition with the continent ports in countries such as Germany and the Netherlands. This competition strengthens the effort to maintain the position as one of the most efficient container port in Europe, as measured by number of container lifts per crane hour.

 

Internally at the port, we have two competing terminal operators: APM Terminals and Cargo Service. This ensures that the transport buyers are given optimal service. Another reason behind the port’s success is a distinctive investment strategy, which has led to total investments of EUR 188 million over the last 10 years. So, we have plenty of room as we have expanded the port in step with the growing revenue.

 

From 1997 to 2007 we have doubled the number of containers handled, and during the same period we have invested EUR 160 million in new container facilities – including a fleet of the world’s largest container cranes. The container segment has seen rapid growth, but the Port of Aarhus has other things to offer being Denmark’s largest public bulk port, with grain, feedstuff and oil as the types of goods most frequently passing over the quays in bulk and multi terminals. Finally, the Port of Aarhus is the largest ferry port in Western Denmark.

No congestion

Aarhus Havn

 

In step with the continuous expansion of the port, we have ensured to develop the required infrastructure. This means that no customers will be troubled by heavy traffic, queues or congestion problems. And there is no doubt that ‘all clear’ is a competitive parameter that is becoming more and more important. The latest expansion of the port by a total of 400,000 m² of container terminal was completed on time and within budget. However, we will continue expanding the port and already have plans to expand yet another container terminal.

 

Recently, we were rewarded for the port’s success through a political decision to spend EUR 200 million on a completely new tunnel, a tunnel carrying the goods directly to and from the port – onto the European motorway network. The tunnel is expected to be completed in 2015 – at the same time as the next expansion of the container port. The Port of Aarhus is not only strategically well located in respect of the increasing volumes of goods expected in the Baltic Sea region. The port also has a favourable location in respect of the domestic market – almost in the middle of the centre of gravity for both consumption and production.

Natural advantages

Aarhus Havn

 

In addition, the Port of Aarhus has a number of natural advantages, including a natural water depth, making it ideal for accommodating large, ocean-going container ships. On the other hand, the water is not so deep that it results in extraordinary costs when constructing new port areas. And there are no natural hindrances that can hamper vessels calling at the port – for example large waves and winter ice.

 

On one hand, the natural advantages imply high efficiency and free competition between more terminal operators, and on the other hand, they contribute to making the Port of Aarhus one of the most competitive in the market – also in terms of price. Naturally, the price level is the result of the competition described above, but also of the synergies created when more terminal operators use the same equipment, such as the port’s cranes, which are owned and operated by the Port of Aarhus. Ships calling at the port may use the port’s own pilot, mooring and towage services.

 

These services are optional and if the need arises, the services are available 24/7/365 – at very short notice. * Measurement made by Maersk Nordic & Baltic which is one of the Port of Aarhus’ most valued collaboration partners.