Port Rotterdam pays city € 123 million dividend
This year, the continuing growth in the port of Rotterdam has yielded the city of Rotterdam a €123 million dividend for 2006. The city can also count on a similar sum at the beginning of next year.
This became evident when the Port of Rotterdam Authority’s annual financial report was presented yesterday by the director of finance, Thessa Menssen. Rotterdam is entitled to an annual dividend of at least € 40 million. But an extra € 50 million will be added for last year and this, due to the State buying into the Port Authority. In exchange for financial aid in developing Maasvlakte II, the State will receive one third of shares in the Port Authority. With the release of € 22 million, which was reserved for claims relating to the port scandal, and other smaller items, the city of Rotterdam’s dividend for 2006 has grown to 123 million.
Although the hefty dividend payment is in full conformity with earlier agreements, Menssen and her ultimate boss, CEO Hans Smits, hope that the municipality will still find some way of using the money to benefit the economic structure of the port.
The State will become a fully-fledged shareholder in the Port Authority in 2008. Owning one third of shares, the State will then be entitled to an annual 20 million dividend. And although the dividend payments are high, they are justified, according to the Port Authority. The Port Authority invests heavily, last year € 225 million, but also earns plenty due to the continuing growth in throughput in the port.
That can also be seen from the rest of the figures. Net profit was up last year from € 73 to € 120 million. That is simply because proceeds are rising and costs are falling. The Port Authority workforce also continues to shrink, last year from 1286 to 1245 on 31 December 2006. Most of this slimming-down is due to natural turnover.
Despite the major investments for Maasvlakte II, the Port Authority also anticipates an increase in profits for the coming years.
In the meantime, the Port Authority is busy searching for space. To this end, negotiations are being held with the Havenschap Moerdijk, among others. Three potential locations for the construction of a special container terminal for inland shipping are under consideration.
The opening of the Euromax terminal will be six months later than planned. When it opens, it will give the port some breathing space again.
This became evident when the Port of Rotterdam Authority’s annual financial report was presented yesterday by the director of finance, Thessa Menssen. Rotterdam is entitled to an annual dividend of at least € 40 million. But an extra € 50 million will be added for last year and this, due to the State buying into the Port Authority. In exchange for financial aid in developing Maasvlakte II, the State will receive one third of shares in the Port Authority. With the release of € 22 million, which was reserved for claims relating to the port scandal, and other smaller items, the city of Rotterdam’s dividend for 2006 has grown to 123 million.
Although the hefty dividend payment is in full conformity with earlier agreements, Menssen and her ultimate boss, CEO Hans Smits, hope that the municipality will still find some way of using the money to benefit the economic structure of the port.
The State will become a fully-fledged shareholder in the Port Authority in 2008. Owning one third of shares, the State will then be entitled to an annual 20 million dividend. And although the dividend payments are high, they are justified, according to the Port Authority. The Port Authority invests heavily, last year € 225 million, but also earns plenty due to the continuing growth in throughput in the port.
That can also be seen from the rest of the figures. Net profit was up last year from € 73 to € 120 million. That is simply because proceeds are rising and costs are falling. The Port Authority workforce also continues to shrink, last year from 1286 to 1245 on 31 December 2006. Most of this slimming-down is due to natural turnover.
Despite the major investments for Maasvlakte II, the Port Authority also anticipates an increase in profits for the coming years.
In the meantime, the Port Authority is busy searching for space. To this end, negotiations are being held with the Havenschap Moerdijk, among others. Three potential locations for the construction of a special container terminal for inland shipping are under consideration.
The opening of the Euromax terminal will be six months later than planned. When it opens, it will give the port some breathing space again.
