http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/RSS.ashxAarhus Havn PagesThu, 26 Mar 2009 13:30:31 +0100http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=1http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=1Annual report 20082009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=2http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=23 4 6 7 8 9 2008 was a turning point Management’s review Financial highlights Financial ratios and cash flow Physical data Statistics 10 Goods handling 11 Port of Aarhus – development Århus Havn Mindet 2 Postboks 130 DK-8100 Århus C Tel. +45 8613 3266 Fax +45 8612 7662 port@aarhus.dk www.aarhushavn.dk Layout: Søren Bo Grafisk Tegnestue Print: Zeuner Grafisk AS2009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=3http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=3After several years of uninterrupted growth and progress, the world economy suffered a severe downturn in 2008 as a result of the financial crisis. The first signs became evident towards the end of 2007 in the US. During 2008, it became clear that the economies of the world are closely connected. Every country has, to varying degrees, been hit by the financial crisis and the subsequent economic decline and general downturn. The Port of Aarhus is obviously affected by these developments. 2008 started with a very satisfactory first six months, although with slightly lower growth than in the preceding years but better than budgeted. This growth which had been achieved was significantly reduced in Q3. But in Q4, cargo turnover suffered the biggest and most dramatic decline in recent times. Despite this totally unexpected fall in cargo volumes, the financial results achieved are in line with the budget and therefore satisfactory. In 2008, the Port of Aarhus invested more than DKK 100 million in new facilities to help see the port into the future. Over the past 10 years, more than DKK 1.5 billion has been invested in new harbour installations, cranes, roads, railway track etc. In 2008, phase one of the sale of port areas in close proximity to the city centre was completed. This involved the last part of Pier 4 – the former container terminal – and the basin for fishing boats and leisure craft as well as the area around Honnørkajen. In the port areas in close proximity to the city centre, the Port of Aarhus now only owns the area around Pier 3 – the MolsLinien ferry terminal. The area is being radically changed from an active port to an urban development area and will be the site of large-scale construction projects in the coming years. We expect 2009 to be a particularly challenging year. World trade is characterised by a decline in volumes, and transport prices are also coming under pressure. It naturally follows that prices represent income for one party and an expense for another. In the course of 2009 it will become apparent where a new balance can be struck, but there is undoubtedly a great deal of uncertainty. The Port of Aarhus, like Denmark, is in a relatively strong position. Liquidity is high. On the other hand, capital costs are also high as a result of the investments which have either been made or which are planned in new port facilities. The Port of Aarhus expects to maintain the planned pace of development with a budget for new facilities in excess of DKK 200 million in 2009. The Port of Aarhus is relatively well geared to remaining one of Denmark’s international ports. 2008 was a turning point Management’s review Financial highlights Financial ratios and cash flow Physical data Statistics Goods handling Port of Aarhus – development 3 Århus Havn – Port of Aarhus March 20092009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=4http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=42008 was a turning point 4 Management’s review Financial highlights Financial ratios and cash flow Physical data Statistics Goods handling Port of Aarhus – development Main tasks The main activities of the Port of Aarhus are the establishment and operation of port infrastructure for goods handling, the leasing of areas and buildings to companies engaged in harbour-related business as well as the supply and execution of ship-related services. Cargo turnover The volume of cargo handled fell by 475,000 tonnes (4%) to 12,098,000 tonnes and was distributed as follows: 1,000 tonnes Container routes . . . Cargo ferries ro-ro . . General cargo. . . . . Bulk traffic . . . . . . Tankers . . . . . . . . Total. . . . . . . . . 2008 . . . . . . . . . . 3,453 . . . . . . . . . . 3,135 . . . . . . . . . . . 342 . . . . . . . . . . 3,400 . . . . . . . . . . 1,768 . . . . . . . . 12,098 2007 . . . . . 3,757 . . . . . 3,403 . . . . . . .251 . . . . . 3,270 . . . . . 1,892 . . . . 12,573 Tankers Tankers carrying mineral and vegetables oils etc. fell by 124,000 tonnes (7%). Leasing Areas, warehouses and office premises are leased to harbourrelated businesses. In 2008, lease income totalled DKK 66 million. Services Services comprise pilotage, mooring, towage and crane operations. Income from these services totalled DKK 73 million with an average price increase of 3%. Sale of property The sale of non-current assets resulted in a financial gain of DKK 213 million and a similar effect on the profit. The sale comprises parts of the port areas in close proximity to the city centre, which are being handed over in stages to the Municipality of Aarhus, the lessees or the highest bidders. The Municipality of Aarhus is responsible for transforming the port area to one characterised by urban functions according to the municipal plan. In 2008, the southernmost part of Pier 4, the area around Honnørkajen as well as the last parts of the harbour for fishing boats and leisure craft were transferred to the municipality. New facilities An amount of DKK 142 million was invested in new port facilities. In 2009, DKK 266 million has been allocated to new facilities. Net profit The net profit for the year was DKK 257 million, of which DKK 213 million is attributable to the sale of non-current assets. The profit of DKK 44 million before the sale of non-current assets is in line with the budget. For 2009, considerable uncertainty surrounds developments in cargo volumes. The outlook is for a profit of about DKK 35 million. The profit will be used for investments in new port installations and loan repayments. Balance sheet The port’s net debt was reduced by DKK 162 million to DKK 59 million. The net debt consists of fixed loans of almost DKK 517 million and other outstanding amounts totalling DKK 95 million less bond portfolio, cash and cash equivalents and other current assets of DKK 553 million. Equity increased by DKK 243 million to DKK 1,497 million. Together with the balance sheet total of DKK 2,239 million, this equals an equity ratio of 67%. The port’s holding of cash and cash equivalents increased by DKK 161 million to DKK 531 million. The Port of Aarhus maintained its position as Denmark’s biggest container port and public bulk port as well as the largest ferry port in western Denmark. The infrastructure charges from cargo handling (ship and harbour dues) totalled DKK 99 million. On average, rates increased by 3% over the year. Unit turnover The volume of unit loads shipped with containers and trailers has been growing steadily for many years. This trend changed abruptly at the end of the year. In 2008, 458,000 TEUs were lifted across the quays by the port’s cranes while 383,000 TEUs were driven across the quays, resulting in a total shipping volume of 841,000 TEUs compared to 920,000 TEUs in 2007. Cargo and passenger ferries Mols-Linien A/S sails up to six daily trips with cargo ferries to Kalundborg and nine daily trips with passengers and vehicles to Odden, bot2009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=5http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=5Risk assessment There are no special risks which differ from similar businesses apart from the financial risk. The risk attached to the loan debt is hedged by fixed-rate, long-term loans. The holding of cash and cash equivalents is held in Danish bonds and as short-term special-term deposits. In 2004, the risk of terrorism at the port was assessed according to the international ISPS standards which were implemented by Act no. 1221 of 27 December 2003. Ten-year development In 1997, work on developing the port according to the master plan commenced. This has resulted in a growth in total cargoes volumes handled of 58% over 10 years 1999-2008 corresponding to an average annual growth rate of approx. 5%. In the period, DKK 1,255 million has been invested in the Container Port out of total investments made in new facilities of DKK 1,512 million. The number of containers handled in the same period has almost doubled, corresponding to an average annual increase of approx. 7%. Environmental concerns In connection with the adoption of the master plan in 1997, the Port of Aarhus was the first port in Denmark to conduct a full environmental impact assessment (EIA). The assessment covered all the environmental impacts on land, at sea and in the air of an annual cargo volume of 20 million tonnes and corresponding to a fully extended port as outlined in the master plan. The environmental factors are not expected to have any material significance for future earnings. Employment The harbour college ‘Havnehøjskolen’ has implemented a number of activities for all employees. 2008 was a turning point Management’s review Financial highlights Financial ratios and cash flow Physical data Statistics Goods handling Port of Aarhus – development 52009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=6http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=62008 was a turning point Management’s review 6 Financial highlights Financial ratios and cash flow Physical data Statistics Goods handling Port of Aarhus – development Port of Aarhus DKK 1,000 kr. Income statement Ship and harbour dues Leasing Services Other income Total income Costs Profit from harbour operations Gains from the sale of port facilities Net financial expenses Profit Balance sheet Equity Assets Payables – receivables Net debt beginning of year Change in net debt Net debt end of year Investments East Harbour Container harbour Other investments Total investments 2008 2007 2006 2005 2004 98,817 66,433 72,726 35,450 273,426 232,934 40,492 212,988 3,756 257,236 95,610 68,274 75,651 31,970 271,505 215,202 56,303 421,939 23,829 454,413 88,218 62,797 60,719 34,343 246,077 183,560 62,517 14,941 32,538 44,920 81,683 63,400 50,162 28,848 224,093 163,223 60,870 95,495 29,746 126,619 73,973 56,419 44,839 31,054 206,285 154,911 51,374 0 28,248 23,126 1,496,679 2,238,326 1,254,097 1,999,700 793,948 1,671,455 741,608 1,575,399 625,917 1,466,402 221,663 -162,246 59,417 595,550 -393,887 221,663 496,526 99,024 595,550 469,139 27,387 496,526 478,297 –9,158 469,139 51,635 69,557 20,795 141,987 3,480 181,978 1,945 187,403 3,684 184,007 1,672 189,363 18,083 188,816 4,425 211,324 10,311 1,352 17,753 29,4162009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=7http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=7Financial ratios in % Equity ratio: Equity end of year end as a percentage of assets end of year Return on capital employed: Profit from harbour operations as a percentage of assets end of year Return on equity: Profit for the year as a percentage of average equity Profit margin: Profit from harbour operations as a percentage of revenue Gross margin ratio: Profit before depreciation as a percentage of revenue Depreciation rate: Depreciation as a percentage of property, plant and equipment beginning of year Cash flow Cash and cash equivalents beginning of year Cash flow for investments Cash flow from operating activities Cash flow from financing activities Cash and cash equivalents end of year 2008 66.9 2007 62.7 2006 47.5 2005 47.1 2004 42.7 2008 was a turning point Management’s review Financial highlights 1.8 2.8 3.7 3.9 3.5 Financial ratios and cash flow Physical data 7 18.7 44.4 5.9 18.5 3.7 Statistics Goods handling Port of Aarhus – development 17.0 23.2 28.9 31.2 29.3 45.6 44.4 52.0 54.8 55.4 2.7 2.3 1.4 2.8 2.8 369,687 -141,987 97,269 205,725 530,694 147,409 -187,403 72,906 336,775 369,687 190,174 -189,363 66,076 80,522 147,409 226,519 -211,324 64,680 110,299 190,174 197,277 -23,416 57,710 948 226,5192009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=8http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=82008 was a turning point Management’s review Financial highlights Financial ratios and cash flow 8 Physical data Statistics Goods handling Port of Aarhus – development General The Port of Aarhus is situated near Denmark’s second-largest city with 300,000 inhabitants. There are connections to the E45 motorway and to the railway network, and several airports can be found nearby. • Location: 56° 10’ N – 10° 14’ E • 9 km of quays • 2,600,000 sq m of land areas • Open 24/7 - 365 days a year • Several ferry services • Maritime services • Warehouses • Tank terminals • Silos • Heavy-lift terminal • Bonded warehouses • EU border control • ISPS-approved Container Port The Container Port is capable of handling 1,000,000 TEUs a year. In 2008, the remaining area of 60,000 sq m, which is shared by the APM Terminal and the Cargo Service Terminal, was paved. In addition, a number of buildings and areas will be constructed and laid out for use by the authorities (customs and veterinary control), as a truck stop for drivers and lorries as well as for leasing out to harbour-related businesses. In March 2009, a further two Post Panamax container cranes will be erected. • Approach channel: 250 m wide and 14 m deep • 750,000 sq m of land areas with space for 20,000 TEUs • 1,300 m of quays with a water depth of up to 14 m (prepared for 15.5 m) and ro-ro ramps • Five Post Panamax container cranes with a lifting capacity of up to 90 tonnes (seven cranes from March 2009) • One Panamax container crane with a lifting capacity of 40 tonnes • Railway tracks • 24,000 sq m of private warehousing • 1,500 power points for refrigerated/chiller containers • Facilities for cleaning, repairing and conducting PTI checks on containers • Operators: APM Terminals and Cargo Service Container Terminal • ISPS approval no. 4682 and DKAAR-008 Multi Terminal • Approach channel: 200 m wide and 14 m deep • 472,000 sq m of land area • 1,740 m of quays plus 215 m of export piers with a water depth of up to 13.5 m and ro-ro ramps • One heavy-lift crane with a lifting capacity of up to 50 tonnes • Six multi cranes with a lifting capacity of up to 35 tonnes with hook and 20 tonnes with grab • Two 20-tonne gantry grab cranes with accompanying conveyor belt system for transport to ship, road and rail • Railway tracks • Eleven warehouses totalling 45,000 sq m plus private warehouses • Power points for refrigerated/chiller containers • Weighing, tally etc. • ISPS approval no. 4685 Ferry Terminal (Pier 3) Mols-Linien operates cargo ferries and high-speed passenger ferries between Aarhus and Zealand. The terminal has capacity to add further destinations. ‘Mellemarmen’ and ‘Kornpier’ At the end of Mellemarmen is a commercial port area in the former shipyard buildings. Here, ship repairs, boat construction and other harbour-related functions take place. Crane capacity is available for lifts of up top 180 tonnes, which is particularly suitable for wind turbines. Feedstuff warehouses and factories can be found at the near end of Mellemarmen. Tank and Bulk Terminals Various oil products, molasses, cement etc. are handled in the Oil harbour. East Harbour In the deep-water harbour, five Panamax ships can be loaded/ unloaded simultaneously. The Multi Terminal is particularly suitable for project cargo, rolling goods and all kinds of bulk goods. Moreover, it is possible to transfer goods efficiently between large and smaller ships. The Bulk Terminal boasts Denmark’s only conveyor belt system for transhipment to/ from ship, road and rail. Areas are leased for production and storage purposes.2009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=9http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=9Statistics 2000 – 2008 2000 Calling ships (number) Liners Ferries Tankers Others Total Liners Ferries Tankers Others Total Incoming Outgoing Total Liners Ferry cargo Oil and petrol Other tankage Other Total Full in Full out Empty in Empty out Total lo-lo by sea Ro-ro Total Pilotage Moorings Tug services Crane hours 1,735 3,932 626 1,504 7,797 13,659 39,520 1,357 3,228 57,764 6,586 3,351 9,937 2,908 2,307 1,493 336 2,893 9,937 72 137 66 18 293 329 622 1,443 4,382 806 15,330 2005 1,182 4,557 443 1,954 8,136 17,303 39,437 1,352 3,574 61,666 7,306 3,981 11,287 3,570 2,894 1,295 434 3,094 11,287 138 163 59 36 396 407 803 1,394 3,617 833 17,568 2007 1,253 4,530 465 2,212 8,460 17,515 37,219 1,470 4,226 60,430 8,179 4,394 12,573 4,241 2,919 1,418 474 3,521 12,573 179 180 80 64 503 417 920 1,766 4,327 1,178 22,880 2008 1,148 4,939 548 1,677 8,312 14,170 43,519 1,853 7,809 67,351 7,921 4,177 12,098 3,938 2,650 1,333 435 3,742 12,098 161 170 72 55 458 383 841 1,921 4,135 1,329 20,514 2007-08 2008 was a turning point Management’s review -105 409 83 -535 -148 -3,345 6,300 383 3,583 6,921 -258 -217 -475 -303 -269 -85 -39 221 -475 -18 -10 -8 -9 -45 -34 -79 155 -192 151 -2,366 Financial highlights Financial ratios and cash flow Physical data Statistics Goods handling Port of Aarhus – development 9 Tonnage (1,000 GT) Cargo turnover (1,000 tonnes) Type of service (1,000 tonnes) Containers (1,000 TEUs) Services (number)2009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=10http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=102008 was a turning point Management’s review Financial highlights Financial ratios and cash flow Physical data Statistics 10 Goods handling Port of Aarhus – development Goods handling 2007 – 2008 Incoming Goods types (1,000 tonnes) Containers Cargo ferries General cargo Total general cargo Grain Feedstuffs/oilseed Coal Stone and cement Other Bulk goods, total Oil products Other Liquid goods, total Total 1,740 1,592 123 3,455 267 1,612 241 863 26 3,009 1,077 380 1,457 7,921 Foreign Product groups (1,000 tonnes) Liquid fuels Solid fuels Foodstuffs Stone and gravel Grain Vegetable oil Cement Other goods Total 813 241 1,719 411 252 233 0 4,299 7,968 Outgoing 1,713 1,543 219 3,475 2 122 59 60 148 391 256 55 311 4,177 Domestic 520 59 108 351 17 5 161 2,709 4,130 2008 3,453 3,135 342 6,930 269 1,734 300 923 174 3,400 1,333 435 1,768 12,098 2008 1,333 300 1,827 762 269 238 161 7,208 12,098 2007 3,757 3,403 251 7,411 127 1,903 217 844 179 3,270 1,418 474 1,892 12,573 2007 1,418 217 2,034 658 127 229 186 7,704 12,573 2007-2008 -304 -268 91 -481 142 -169 83 79 -5 130 -85 -39 -124 -475 2007-2008 -85 83 -207 104 142 9 -25 -496 -4752009-03-26T13:30:31+01:00http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=11http://webhouse.ipapercms.dk/AarhusHavn/rsrapport/rsrapport2208GB/?Page=11The development strategy continues In our 2007 annual report, we speculated on how long the then economic boom would last. The answer came in 2008. Like most other companies in Denmark and abroad, the Port of Aarhus had a year which started well but which ran out of steam. By the end of 2008, only one thing seemed certain – the financial crisis in the autumn had spread like a virus to almost every corner of business. Early on, the Port of Aarhus decided that the financial crisis and its effects should not go to waste. We intend to use the situation constructively and prepare ourselves for the next upturn in the economy. In other words, we will use the present situation to prepare for the next phase of the port’s development. Even though the market is declining, we are still focused on developing the port and acquiring the necessary commercial strength, which includes sharpening our competitive edge and introducing additional capacity, so we are ready when the economy picks up again. At the end of 2008, we involved all our employees in ‘Project Progress’, which is intended to strengthen the company from within to withstand external challenges. This means that we examine our costs and insource work that we previously outsourced, and that we trim the organisation in readiness for the future. At the same time, we are maintaining our development strategy, which at the moment involves extending the port with a new Omni Terminal, a new ferry terminal, yet another container terminal and a further two new Post Panamax container cranes, the world’s biggest, as well as two new high-capacity bulk cranes. Moreover, we are helping to finance the construction of a new harbour tunnel which will create a direct connection between the port and the European motorway network. At a port where we receive many goods from China, and where we handle many of the wind turbines being shipped from Denmark, it is relevant to quote an old Chinese proverb: ‘When the winds of change blow, some build fences, others build windmills.’ New terminal due for completion in 2010 In 2008, we laid the foundations for a new terminal, the Omni Terminal, which will relieve our present Multi Terminal. The shipping of wind turbines from the Port of Aarhus is developing strongly and has led to pressure on the Multi Terminal. And the wind power industry expects this trend to continue despite the current recession. The Port of Aarhus has decided to meet this demand by creating a new 80,000 sq m terminal which can be used for almost all types of goods. Hence its name, Omni Terminal. We expect the terminal to be used for a wide range of cargo types which do not need to be stored under cover. These will include, for example, stone, gravel and several types of bulk products. And, as mentioned, wind turbines, as the wind power industry more than anybody else needs a high level of flow in its transport operations. This calls for large, flexible harbour areas which the Port of Aarhus can now offer at the Omni Terminal, where there will be as few restrictions as possible. This means fewer facilities and buildings and more storage space than we have seen so far at the terminals. The planning of the Omni Terminal has already commenced, and during spring 2009 the contracting work will be put out for tender. The terminal is expected to be completed and ready for use by mid-2010. The expansion means that the Port of Aarhus is starting the final phase of its so-called ‘revised master plan’, which covers two areas for enlargement: a new Container Port with accompanying service areas at the East Harbour (this part was completed in 2007), and an area for development to the north-east of the area around the Tank Terminal. It is this area which is now being developed. 2008 was a turning point Management’s review Financial highlights Financial ratios and cash flow Physical data Statistics Goods handling Port of Aarhus – development 112009-03-26T13:30:31+01:00