Port of Zeebrugge Asks “What can we do to help you?”

Journalist: Since the start of worldwide financial crisis last year, many American and European ports have suffered remarkable decrease in throughput. Meanwhile, port is playing an important role in logistics supply chain and directly related to shipping line’s benefits, shipper’s benefits and freight forwarder’s benefits. How can Zeebrugge Port overcome the problem from financial crisis, and create positive benefits to all relevant parties?

Answer: Thank you for this very interesting question. It is a challenging time for all of us indeed, it is even worse in EU and America than in China. The financial crisis also has effects on Port of Zeebrugge. We have different segments, such as cars, special goods, gas and so on. We do have drops in car volume, especially in new cars, because the consumption of cars has dropped worldwide, the production has dropped in Russia, Asia and Japan. It happens to the port and the city. However we did not lose the market share. Companies still look for logistics services, and especially the service with lower cost. For example, China and India car exporters & importers come to Zeebrugge port for the business.
The second factor is the container. On the container sector, we did not witness decrease. The country got a challenging year last year, has a 10% decrease. However, in the first four months this year, Zeebrugge Port has an increase at 3%. It is not much, but it is very good, as many other ports have dropped by 15% or 20%. We are actually increasing by 3%.
Meanwhile, shipping lines look for cost-saving and convenient services. We have shorter entry time and deep water depth, which can allow the largest vessel’s entry. That is why many shipping companies now are interested in doing business with Zeebrugge Port. The evidence is out there. Yesterday, it is announced by China Shipping and Evergreen that they will work together to restart the trade between Asia and EU come to various goods with Gulf and Zeebrugge Port.
As you can see, under the current problem, we still can look for new idea and work out new solutions to the problem. The last thing we want to say is that the financial crisis is the best time for investment, to get ready for the coming increase after the crisis. We are investing in new container terminal and new cars terminal. We are ready for the bright future.

Journalist: After going through the information of Zeebrugge Port, we have realized that Zeebrugge Port is also good at sea-rail Multi-Modal transportation services. What the most remarkable advantages does Zeebrugge Port have in this field?

Answer:   We are always connected by road, rail, and inner navigation. In Europe, we always move goods among the three modes. We have an advantaged network with rail. The first terminal in Zeebrugge was operated by railway, of course it is operated by PSA now. As a result, it is has a great railway connection for container sector. The railway connects all important terminals. If we look at deep sea containers, about 40%-50% of them are actually transported to other EU markets via railway.
On the other hand, we have in-land navigation. We have partners to link us with 250 and 300 TEUs vessels, the route reaches 10,000 Km. It is like a highway in water to other EU markets.
Meanwhile, the road connection is very important to Zeebrugge Port, because many commercial centers are very nearby. Paris is only two hours away, Hamburg is one hour away. In summary, Zeebrugge Port has three modes to connect us to nearby industry and commercial centers. They are very important, because Zeebrugge is originally developed from logistics service not industry area. As a result, we have strong connection to nearby industry centers, which are major EU consumption markets.

Journalist: Based on Zeebrugge Port’s introduction, we can see that Zeebrugge Port looks for win-win situation in China market. Could you tell us what benefits can Zeebrugge Port bring to China business, meanwhile what benefits does Zeebrugge port want to receive from China market?

Answer: The port is at the service of economic and goods distribution, transportation. We want to be as efficient as possible. We do believe we can play a role in providing one efficient logistic chain for the goods transportation between China and EU countries. Based on our strategic location, we can act as distribution center for the goods from China and then distribute further to other EU destinations. As mentioned above, we are nearby to many important EU industry and commercial centers, so we can get Chinese exporters’ goods to major EU markets very fast and efficiently.
On the other hand, what do we expect from China market? Of course, we want to become the hub port for the trade between China and EU. Meanwhile we want to become well accepted by various China market segment, including shipping companies, ports, freight forwarders and shippers. We want to establish a large network with China in a full scale.

Journalist:  According to my knowledge, many EU ports have already had the similar functions in China before. Do not you think it is too late for Zeebrugge Port to have the function now? What is the development strategy of Zeebrugge Port in China?

Answer:  First, it is never too late for anything in life. So let me get to your specific question now. What is happening to Zeebrugge Port is that we have entered into container growth in last five years. Zeebrugge Port is a very young port. We are there for only more than 20 years, and have experienced the container growth for only last five years, especially for the growth with China. As a result, it will have no sense for us to set an office or a permanently base too early in China, if we do not have enough business here. Now we have strong business increase to China market, and we realized that we have been in China two or three times a year for last ten or five years, as a result, we believe it is a time for us to transfer that to a permanently base in China. We need to have our senior management members in China and manage the market. So we will have Mr. Jan Vannieuwenburg who has been working with us for 30 years to manage China market this year. This is a new page.
Another new page is that we are going to Chinese shipping lines. We have introduced Zeebrugge Port to major shipping lines like China Shipping, COSCO, Evergreen and so on. Now we have some volume, and we have new strategy to go directly to shippers, the manufacturers, and the people who actually exporting their goods to overseas market. That is an interesting day for us. So the first step is to go to shipping lines, then shippers may notice that China Shipping is calling Zeebrugge port, however they do not know Zeebrugge Port very well. They will not be sure about whether they should have their goods transported to EU markets through Zeebrugge Port. Consequently, our next step is to go to shippers, makes us become well known in China shippers, manufacturers and exporters & importers.

Journalist: According to my knowledge, the cooperation between SIPG and Zeebrugge port has stopped. What other business partners is Zeebrugge Port going to cooperate with in China?

Answer:   We have a very good relation with SIPG.. I mean, we have been there several times and I met them yesterday. It’s an interesting company and very active in stevodoring and containers. We must demonstrate that the cooperation is not over. We will still have further discussion on APMT. It is still in the agenda. 
Apart from SIPG, the interested parties include shipping lines, terminals and so on. Distribution groups, logistics groups want to have their logistics center. We are available for China companies to invest in Europe. That should be a faith, that is, China companies should come to Europe for investment and set up their distribution centers. We are available and seek China investment. Therefore, we are seeking China partners such as distribution center companies and so on for cooperation.
 
Journalist: As we know, shipping lines between Asia and Europe are the major revenue source. And Europe has four basic ports: Hamburg, Rotterdam, Antwerp and Felixstowe. Will Zeebrugge become a basic European port? What measures does Zeebrugge take to become a European basic port?

Answer:    It is an interesting question. Usually people tend to stick to traditions, that is, call at four European basic ports. It is normal. However, I must say that Zeebrugge Port is the only European port at present to produce growth, especially in shipping lines. Last year we produce a 15% percent growth, and this year in the first four month a 3.1% growth. This means in such a time of crisis and full of challenges, there is rapture. Rapture, the name of the game all over the world, is to save customers. The customers will discover a way from traditional choice and discover a new choice, That is they will find a new port of Zeebrugge. They will find that through Zeebrugge Port they will get faster and easier effect. In addition to the existing shipping lines, we will get new customers and new shipping lines. We are ambitious to be a new European basic port apart from the other basic ports, so we are giving more investment to expand our capacity.   
      
Journalist: As a largest automotive hub port in the world, what special advantages does Zeebrugge Port have compared with other European ports?
 
Answer:    This is a good question. As to the advantage of Zeeburgge Port in handling cars, of course Zeebrugge Port in the No. 1 port in export of cars because we have 1700 car engineers to manufacture cars and ; we have a mix of car manufacturers from UK, Germany and so on, and we can redistribute a lot of European cargoes. In the other hand, we can also handle cargo from overseas countries, like Asia, Africa and so on. The high efficiency of handling car firstly depends on our network combining a deep sea network and a short sea network. A deep sea network is for overseas countries, and a short sea network is for European market. Secondly, we have dedicated car centers, introducing knowledge, know-how to car manufacturers at our port to make a preparation for entering the destination market, also reform the car to meet the specialized customers and specialized market.

Journalist: What’s the specific date for Zeebrugge Port to set up your headquarters in China? What’s your daily advantage in terms of tax and custom clearance?
Answer: We will set up our headquarters at the end of September.
Zeebrugge Port is a Belgium Port. Belgium is the center of EU and EU capital is also Belgium capital. According to a three-year long survey, Belgium is No. 1 logistics center in Europe. Secondly, it is interesting that Belgium offers favorable policies for China companies to set up European headquarters and distribution centers in Belgium. Although Belgium is small, it is in very center of Europe, 2 hours drive to Germany, 2 hour drive to UK and 30 minutes drive to France. There is no other European countries can offer it. Therefore, we really have many maritime advantages. All these advantages come to the conclusion that if China companies want to head for Europe, Zeebrugge port is also an ideal port.

Journalist: We have known that Zeebrugge port has advanced facilities. At the information seminar, we also know that Lianyungang Port has opened a railway to Moscow through Asia-Europe Land Bridge. Whether it is possible that in future the railway from China can reach Zeebrugge Port through Asia-Euro Land Bridge?

Answer:   Well, We will focus on the overall Sino-EU trade, we will have more contact with Lianyungang Port to have a more detailed discussion on this problem. Regarding this issue, we will open all discussions and opportunities and analyze all the possibilities of cooperation with Lianyungang port.

Journalist: As is known, China-EU trade relations get more and more tight and China-EU trade volume is expanded. Recently China’s government purchase group visited Europe and signed a large order. All these show that China-EU trade volume is getting larger. My question is what role Zeebrugge port plays in China-EU trade?

Answer: Obviously, we know that China Premier Mr. Wen went to Europe for a visit including UK, German and so on. And China government signed an intended package to promote China-EU trade. It is a symbol of growth of China-EU relationship. China’s trade with EU through purchase will be beneficial to Zeebrugge Port. Due to the increased winner, Zeebrugge Port will definitely be a winner of that activity.
        I will add that we have set up multi-tie relationship with China. We suppose our role as a logistics provider. We serve the industries both in China and Europe. Now the important delegation goes to Europe. They must need the logistics or tools to transport the cargo from China to Europe or from Europe to China. Our role will be the gateway for China to Europe for both importing and exporting.

Journalist: Zeeburgge Port’s throughput last year is 42 million tons. Compared with many China ports, this is not a large number. And still not many ports know well about Zeebrugge Port. It is necessary for Zeebrugge Port to make you well-known in China. Today’s industry event is a good form, what other forms will you take to make Zeebrugge Port more well-known in China?
Answer:  Obviously that is why we come here. It is a well-established strategy to put to place to get in touch with China market. We are not so well-known and is a well-kept secret, so we have a lot of things to offer to China market. We are not as well-known as traditional mega ports, but it’s not a comparison in size only. The mega ports are much bigger in volume than us. However, many cargoes are heavy cargoes like coal and so on. We did not handle so much heavy cargoes and we don’t have heavy productions. We are a green and clean port. We don’t import coal product. We are a green port, which is what I want to focus and is the message that I want to carry to our customers including forwarders, shipping lines and so on. Of course we have some marketing tools, but the first strategy we adopt is to get Zeebrugge Port informed to China potential market and make them see our specialty. We will tell you where we can help in exporters, logistics size and your setting up factory in Zeebrugge. We will provide value-added services. We will give brochures everywhere. For example, we have given brochure in Tianjin, so participants can know our data and advantages. We will analyze, listen to our customers and meet our customers as much as possible. Therefore, it’s meeting, listening and analyzing, using all marketing tools.  We will use all Internet possibly and Internet communication. We come to Shanghai to build our office. We go to inland to talk to exporters. All these are strategies we use. We want to customers to see a very fact, that size is not the only criteria. The fact is that Zeebrugge port is a port in Europe and this port only focuses on logistics and distribution. And I believe Zeebrugge Port will get much better.

Journalist: Does Zeebrugge Port have some plan to contact and cooperate with shipping lines, ports and exporters/importers in Hong Kong?

Answer:   When talking China, we must say Hong Kong is a major city and an important economy cluster in China. It develops early and has relationship with Europe early. China and Hong Kong is a whole country. Since we contact China market, we must contact Hong Kong market.

At the end of the press conference, Port of Zeebrugge Chariman Mr. Coens thanks all people coming to the press conference and thanks to hear all the interesting questions.