Feature: Annual meeting with sound financial statements and first celebration of 150th anniversary

"When you, like me, are born raised in Esbjerg, you take great pride in the importance of this port. Not just for South West Denmark, but for the entire Danish nation".

These words of praise were, among other things, spoken by Ulla Tørnæs, Minister for Development Cooperation, in her speech at the annual meeting of the Port of Esbjerg, which was held at the Concert Hall on Tuesday 20 March. Here, the annual reports were presented, and the celebration of the 150th anniversary was kicked off.

Mrs. Tørnæs's words were very much in line with the thoughts of several keynote speakers, who described the development of the port from its beginnings as a quay and fishing community to cargo port and, among other things, a hub for the windmill industry. On top of that, the anniversary year sees the port's best result ever.

Record turnover and profits

The meeting was opened by Board Chairman Flemming N. Enevoldsen, who was very satisfied: 

”I am pleased that we are able to present solid financial statements in our anniversary year. This confirms that both the city and its port are in really fine fettle. We have a very strong platform on which to develop well into the future.” 

Port CEO Ole Ingrisch reported that a generally high level of activity and great progress in the wind energy sector made 2017 another great year for the Port of Esbjerg. During 2017, the Port invested EUR 32.11 million in completing new port areas and a new RoRo terminal in the East Port, among other things.

The Port of Esbjerg has invested a total of EUR 228 million in new solutions and infrastructure since 2004. In 2017, the return on average invested capital (ROAIC) was 8.4%.

The turnover was EUR 31.61 million, an increase of 2.2% compared to 2016. The result was EUR 10.83 million.

Financial muscle required

In 2017, the Port of Esbjerg invested EUR 32.11 million in port development, and Flemming N. Enevoldsen pointed out that willingness to invest will continue to be decisive for the Port of Esbjerg, and it requires financial strength:

”Our financial muscle must be such that we are continuously able to make the investments required to meet our customers' needs and develop the Port of Esbjerg. The need for investment is unlikely to decrease in the future, given the market outlook and the high pace at which our environment has changed in the past."

New in 2017

In 2017, the invested capital was, among other things, spent on opening the new 250,000 square metre area in the East Port, including two new RoRo ramps. This gives the port a total of 4.5 million square metres at its disposal. In December, Blue Waters opened its new multi terminal in the East Port, and a new welfare building for 60 staff was also constructed in the East Port. A few days ago, a new agreement was made with Scandinavian Auto Logistics about the leasing of 60,000 square metres for car processing.

As 90% of the capacity is now being utilised, more space is needed. Therefore, the Port of Esbjerg has initiated an environmental impact assessment (EIA) to investigate the possibility of further expansion. The results of this assessment will be ready in 2019.

Ulla Tørnæs remembers 100th anniversary

In her speech, Ulla Tørnæs recalled her own memories of the celebration of the town and the port's 100th anniversary. Back then, she was a 6-year-old girl, who waved at King Frederik and rode on a double decker bus, which had been sailed to Esbjerg to mark the festivities.

For this very reason she was particularly pleased to be able to celebrate the 150th anniversary and even do so when the port is doing extremely well. Ulla Tørnæs believes three growth drivers will ensure the continued development of the port.

The first one is the last year's North Sea agreement, which settles the terms for the Danish oil and gas industry for many years ahead. Among other things by development of the Tyra oil field. 

”With the North Sea agreement, the Danish government has ensured stable conditions until 2042," she said.

Second driver: Decommissioning. The Minister believes the renewed infrastructure in the North Sea will also generate new possibilities.

”The decommissioning and redevelopment of oil rigs constitutes a market worth DKK 400-500 billion. The government has begun the work by ensure the competitive terms for Danish companies by incorporating these into its new maritime growth strategy".

Finally, Ulla Tørnæs is generally very pleased with the continued development of offshore wind. According to Ulla Tørnæs, the government will strive to make the North Sea the new Silicon Valley for offshore wind. "The potential for generating electricity from offshore wind is enormous," she said.

The EU Commission expects the North Sea to contribute 12% of the European Union's electricity production by 2030, and within the next 3-4 years, an additional four large-scale Danish wind farms will be constructed. Three of these will be in the North Sea. 

Ulla Tørnæs completed her speech by paying homage to the citizens of Esbjerg.

"For 150 years, Esbjerg has managed to adapt to substantial changes and seize new opportunities. From agricultural exports to fishing, cargo and wind. The Port and the inhabitants of Esbjerg don't give up just because of little wind," she said. "It's in our DNA!"

Sustainability means business

"I'm concerned", was the key message from Peter Thagesen, Danish Industry's Director of International Market Policy and CSR, when assessing the prospects of international stability and free trade. This is among other things due to China's trade policy actions, Trump's protectionism and Brexit. 

"In reality, free trade means regulated trade where everyone plays by the same rules," Peter Thagesen said. He sees clear signs that access to export markets on fair and equal terms is increasingly under pressure. 

On the other hand, the situation looks quite different in terms of sustainability. The UN's 17 sustainable development goals show what we can accomplish when all nations of the world stand together. And the UN has given the private sector – the companies – a key role in achieving the goals.  The companies have accepted this role, and the efforts to promote sustainability also include major commercial opportunities, which Danish companies are taking full advantage of.

Board chairman Flemming N. Enevoldsen concluded his address by wishing all of the 140 guests a happy anniversary year.

"Today we are celebrating the past, the present and the future," he said. All of the guests were presented with a printed annual report, an anniversary book and a bottle of anniversary beer.