Profits drop at Rotterdam despite revenue rise

Profits down by 4.9% despite revenue increase of 3.1%, depreciation and higher interest charges to blame
Profits drop at Rotterdam despite revenue rise

The Rotterdam Port Authority recorded a €215m profit last year, a drop of 4.9% on the previous year. The fall comes despite the Port Authority announcing a revenue increase of 3.1%, taking home €660m, and is attributed to the depreciation of Maasvlakte 2 and high interest charges on exisitng debt.

“The massive investments of the past few years have caused our long-term debt rise to €1.3 billion, which also means a rise in our interest charges," said Paul Smits, the port authority’s Financial Director. 

"In addition, the early repayment of a long-term debt of €45 million involved the payment of additional interest charges. Also, the commissioning of Maasvlakte 2 led to a rise in depreciation of €7 million,” 

The Port Authority's two main revenue streams, land leasing and seaport duties, both rose in 2014, the former by 5% to €337.5m and the latter by 1.2% to €306.2m

The Port Authority said it intends to re-invest the largest possible share of its revenue back in the port. These investments will be mostly directed at servicing its current customers and sectors, but the Port Authority is also eager to expand its activities in the port and to invest in innovation.

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by Tom Holmes

Marine Trader Editor

Tom Holmes is the Editor of Marine Trader and readmt.com, the official publications of the International Marine Purchasing Association (IMPA). To discuss news, features or contributing to Marine Trader please get in touch.

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