Belgium’s two large ocean ports announced that they will
merge their operations to strengthened their position and prepare for future
developments. The cities of Antwerp and Bruges will begin a unification process
that is expected to take a year to finalize to unite the management of the
industrial ports of Antwerp and Zeebrugge making them more resilient to future
challenges.
The combined operations of the two ports will have an annual
throughput of more than 278 million tons becoming one of the largest breakbulk
and ro-ro ports in Europe. In 2020, the ports combined handled nearly 14
million TEU, which amounted to 157 million tons of container cargo, and they
accounted for 15 percent of liquid natural gas transited in Europe.
The concept of merging the two ports had been proposed
several times in the past but blocked by political opposition and the fears
that the smaller Zeebrugge would be eclipsed by Antwerp. In 2018, the Belgium
and Dutch ports straddling the northern border merged their operations creating
the North Sea Port and providing a model for the consolidation of Antwerp and
Zeebrugge. Discussions for the merger had gained momentum late in 2019 but were
delayed by the pandemic.
“By joining forces, we are on the way to becoming Europe's
global port, while at the same time reinforcing our position as the most
important container port in terms of tonnage, a solid RoRo port, and one of the
largest breakbulk ports in Europe,” said Annick De Ridder, port alderman and
chair of the board of directors of the Antwerp Port Authority. “Our ambition to
bring the two ports together is about much more than simply tonnage and TEUs. It
will enable us to focus even more firmly on the transition towards a low-carbon
economy and to continue our efforts regarding the digitalization of the supply
chain. The ports of Zeebrugge and Antwerp are to a large extent complementary
and working together will make us more resilient to external challenges.”
Detailing their strategy for the combination in a press
briefing, the two ports emphasized that their operations are largely
complementary. Antwerp specializes in the handling and storage of containers,
breakbulk and chemical products, while Zeebrugge is a major port for RoRo
traffic, handles containers, and the transshipment of liquid natural gas.
Working together they said will make it possible to consolidate sustainable
growth, not only of each port's market share but also the joint market share of
the combined operation.
To maximize the added value of a unified port, the Port of
Antwerp-Bruges as it will now be known will seek to develop and make optimum
use of the interconnectivity between the two ports. The transportation of goods
by rail between the two sites will be bundled, estuary traffic by inland
vessels on the North Sea will be optimized, and pipeline connections will also
be on the list of priorities.
Committed strategic investments, such as the new sea lock in
Zeebrugge and the additional container capacity in Antwerp, will go ahead.
Future investments will be evaluated from a unified operational perspective so
that both port platforms will benefit, and the port continues to meet its customers'
expectations.
As part of a joint plan, the two ports have defined three
strategic priorities – sustainable growth, resilience, and leadership in the
energy and digital transition – for their future priorities. Focusing on
sustainability and the ongoing transition in the industrial and maritime
sectors, they will look to position the combined port as a hub for green
hydrogen and the coming hydrogen economy. They believe the area with its
industrial cluster in the Antwerp-Zeebrugge will play a key role in the future
energy challenges in the Flanders region and the broader Benelux area. They
will also continue their efforts to examine will examine methods of applying
CCUS (Carbon Capture, Utilization & Storage) to contribute to the
transition towards a low-carbon port.
The transaction is subject to a number of customary
conditions, including approval from the Belgian Competition Authorities. Both
parties aim to finalize the transaction in 2021.