Boskalis jaarverslagen 2011

Harbour Towage

Berthing and unberthing of oceangoing vessels, providing assistance to special objects and port services.

    2011   2010*
(in EUR millions)        
Revenue   233   155
Operating profit   29.3   23.2

* SMIT activities consolidated from the second quarter

Revenue

Boskalis is active in this segment through SMIT Harbour Towage (consolidated as from the second quarter of 2010) at locations including Rotterdam, Belgium, Brazil, Panama, Canada, Australia and Singapore. Revenue in 2011, including the proportionate consolidation of associates, was EUR 233 million (2010 three quarters: EUR 155 million).

While the recovery, which started in 2010, and the associated upturn in freight shipping volumes continued in some parts of the market, freight tariffs for both container shipping and bulk transport came under further pressure during the course of 2011. 
Even so, SMIT only saw a reduction in the level of activity in the ports of Rotterdam and Antwerp.

In early March, Boskalis acquired the remaining 50% of SMIT Rebras in Brazil. It was subsequently decided to invest in another 12 new tugs for this growth market, six of which have now been ordered and are under construction. Ahead of the completion of these vessels, four frontrunners have been deployed in the ports of Victoria and Rio Grande, and these contributed towards the growth in revenue. 
The harbour towage activities in Argentina were terminated due to continued disappointing results. 
At the end of October, SMIT won a seven-year exclusive concession to provide harbour towage services in the port of Zeebrugge (Belgium). Based on freight traffic projections the concession represents total revenues of around EUR 90 million.

Segment result

The operating result, including the proportionate consolidation of associates, was EUR 29.3 million (2010 three quarters: EUR 23.2 million), with the activities in Rotterdam, Belgium, Brazil and Canada making a good contribution to this result. The operating result was negatively impacted by the costs associated with discontinuing the activities in Argentina.

Added to My report add to My report Source: Annual review 2011, Report of the Board of Management, page 37