Port of Rotterdam profits down despite increased revenue

The port authority saw a 4.9% drop in profits due to higher interest charges and depreciation.    Port of Rotterdam Authority increased year-over-year revenue 3.1 percent to 660 million euros (U.S. $ 728.8 million), but profits fell 4.9 percent to 215 million euros. The authority attributed the loss in profits to higher interest charges and depreciation, according to its latest financial statements.
   The port completed phase 1 of its new Maasvlakte 2 terminal, decreasing investments 27.9 percent to €189 million.
   Revenues from the lease of authority-owned land rose 5 percent to €337.5 million, thanks to the release of new sites, charging individual customers for infrastructure built for their user need on a square-meter basis, indexation of contracts and price adjustments in renewed contracts.
   Seaport charges increased 1.2 percent to €306.2 million.
   “We are not surprised by the fall in profit,” said financial director Paul Smits. “The massive investments of the past few years have caused our long-term debt rise to €1.3 billion, which also means a rise in our interest charges.
   “In addition, the early repayment of a long-term debt of €45 million involved the payment of additional interest charges,” Smits added. “Also, the commissioning of Maasvlakte 2 led to a rise in depreciation of €7 million. At the same time, the rise in our revenues was limited, resulting in lower profit. We use our profit to distribute dividend and reduce our debt, but mostly to invest in the port.”