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Contents
A. Extracts from Sector Sketch
Page
4
B. Feedback from oil and chemical company interviews
C. SWOT Analysis C.1. Strengths C.2. Weaknesses C.3. Opportunities C.4. Threats
Maasvlakte 2
Positive discussion likely: new land reclamation at high cost
Extra land will favour chemical sector The oil industry does not require extra land
Motor of Rotterdam trading strength
• Global warming • Congestion • Noise
Legitimate environmental concerns
Conflict Export industry must be internationally competitive to survive Tough environmental stance
Roland Berger & Partners Ltd. – International Management Consultants
Barcelona – Beijing – Berlin – Brussels – Bucharest – Budapest – Buenos Aires – Delhi – Detroit – Düsseldorf – Frankfurt – Hamburg Helsinki – Hong Kong – Kiev – Kuala Lumpur – Lisbon – London – Madrid – Milan – Moscow – Munich – New York – Paris Prague – Riga – Rome – São Paulo – Shanghai – Stockholm – Stuttgart – Tel Aviv – Tokyo – Vienna – Zurich
Dutch economic prosperity
Founded on trading
High population density low-lying - vulnerable to Global warming
Dutch environment
Oil industry focussed on exports
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11 12 17 23 26
D. Recommendations
31
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A.
Extracts from Sector Sketch
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The Dutch oil industry has traditionally been strong and internationally orientated
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Pressure for rationalisation is likely to coincide with timing of investment to meet future fuel specifications
Current situation
Refining and Chemicals
• Only 15% of total oil supply destined for home market • Accounts for 9% of EU refining capacity • Key synergies with and supply to Dutch chemicals industry • Benelux chemical cluster is second largest in Europe
Curren on tonnage rather than services used
Industry viewpoint Rotterdam is more expensive than Antwerp, Le Havre or Hamburg. The oil industry ‘subsidises’ the container industry May be economically viable
Variation prevents the existence of a ‘level playing field’
Place environmental decision making and implementation in the hands of one body
Land release
Environmental and clean-up regulations were central to views expressed by most interviewees
Current situation Goes ahead of competing countries on environmental issues Industry viewpoint This undermines competitive position of oil and chemical industries Alternative approach Lead by influencing EU consensus rather than by example
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Each sector in the oil industry faces important issues affecting its competitive position
• Increasing costs of environmental compliance • Mergers/alliances change the competitive scene • Overcapacity and low returns • Supports the international business • Fosters independent traders • Overcapacity and low returns • Strong role of refining companies • Dependent on critical mass of Rotterdam market • Important fuel oil outlet for refiners • Refiners becoming dominant • Pipelines and waterways key to Rotterdam logistical advantage • Dominated by private or consortium owned pipelines • Important synergies with oil sector • Sector entering downturn • Long-term growth potential
LON-P-04358-001-02-50-08v3.ppt
A conflict appears to be emerging between the traditional Dutch economic strengths and more recent environmental concerns
Ports
• Rotterdam ‘world’s leading port’ for 30 years • Road, rail, inland waterway and pipeline connections to many major markets
Trading
• Major oil trading market in the EU time zone and one of the big 3 globally (Rotterdam, Houston, Singapore)
Oil refining
Storage
Trading
Bunkering
Pipelines
Chemicals
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B.
Feedback from oil and chemical company interviews
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Alternative approach Base charges more on services than on tonnage basis
Port fees
Common carrier pipeline
No common-carrier pipeline exists
Consider common carrier where extra flexibility needed, but compensate owners of pipelines for investment and risk Ensure proper funding for Maasvlakte 2: No burden on oil industry
Role of the Netherlands
Decision making bodies