Container terminal operator sues Port of Rotterdam

19th December 2011 20:03 GMT


ECT owns more than half of the container capacity at the Port of RotterdamThe Port of Rotterdam is being sued for €900 million ($1.2 billion) by Chinese-owned container terminal operator Europe Container Terminals (ECT) over a dispute involving other container operators due to begin operations in 2014.

According to a press release, ECT believes that the Port Authority is treating them unfairly in favour of other stevedores and is demanding compensation of €900 million for supposed damaged that it might suffer in the distant future.

The port said that ECT believes they have not been given a fair opportunity in the issue of the first terminal on Maasvlakte 2 and that the Port Authority is imposing stricter and more severe conditions than on other stevedoring companies.

The port added that before ECT issued the summon, ECT demanded the Port Authority delay the terminals at Maasvlakte 2 becoming operational.

According to a press release, ECT also demanded that they should not be required to pay for the widening of the Amazonehaven. The port said the demands of ECT are "impossible to meet."

"The first would have meant the one-sided breaking of existing contracts with other customers," stated the port. "The second would have meant large-scale adaptions to fairly new infrastructure for one customer, without that customer having to pay anything.

"Both are disrupting to the free market forces in the level playing field in the port. The demands were and are unreasonable and are incompatible with that which the Port Authority has to do."

Rob Bagchus, spokesperson for ECT told Reuters that the Port of Rotterdam was not sticking to its expansion plans.

"The problem is that there will be new land available and the new terminals are coming online very soon and we think this will lead to a lot of overcapacity," Bagchus said.

The port said it is not concerned with the outcome of the lawsuit.

"The Port Authority and its legal advisors are convinced that, over the years, they have always operated correctly with respect to ECT.

"The Port Authority will not and cannot protect businesses against market forces."

The port added that it will continue its positive relationship with ECT and will let their lawyers handle the dispute.

ECT is owned by Hong-Kong listed company Hutchinson Port Holdings, which owns more than half of the container capacity at the Port of Rotterdam.


Comments