Antwerp, Rotterdam look out for Port of Dunkirk's Ocean Three challenge

WITH mega alliance Ocean Three set to make regular calls, the Port of Dunkirk is expecting mega growth in container traffic from Asia that could threaten Antwerp and Rotterdam, reports Lloyd's Loading List.

Because Dunkirk port CEO Stephaane Raison now has dreams of re-taking the hinterland and diverting cargo that now bypasses his port and heads for congested gateways of Antwerp and Rotterdam. 

"Shippers can take advantage of transit times from Asia that are one and half days shorter than services through Antwerp," he said, adding that since January 1 customers no longer pay French VAT.

"This will put us on an equivalent VAT footing with Antwerp giving shippers in northern France no reason to look anywhere else but to the 'natural' port of entry for their goods - Dunkirk," he said.

"Our rail transport capability will also hold us in good stead at a time when road congestion in the proximity of ports has become a real issue and allows us to contribute to sustainable freight transport growth too," he said.

Ocean Three member lines CMA CGM, China Shipping and the United Arab Shipping Company offer weekly direct service from Tianjin, Dalian, Qingdao, Shanghai and Shenzhen-Yantian. Some O3 loops also offer weekly calls from Busan, Kelang, Beirut and Jeddah.

The prospect of adding a further 150,000 TEU a year through Dunkirk to add to the 320,000 annual volume has prompted expansion plans for its box terminal over the next three years.

"The expansion and modernisation of our container terminal will represent an investment of EUR65 million [US$71.4 million]," said Mr Raison. 

"We currently have 1,200-metre of quay at the terminal of which only 400 metres is 16.5 metres draught, offering a single berth. Development work focuses on 1,000 metres of quayside at 18-metre draught which will enable us to offer two berths to accommodate the biggest container ships such as the Triple E class."

The EUR20 million investment programme will pay for improving safety measures at the entrance of the terminal, widening of the swinging basin at a cost of EUR20 million and a rail infrastructure upgrade at the port totalling EUR15 million.

"Dunkirk is France's leading port for rail freight, largely in the form of bulk shipments and steel products. Out of our estimated global traffic of 46 million tonnes in 2014, rail transport will have accounted for 13 million tonnes," said Mr Raison. 

"But only five per cent of the container traffic handled at Dunkirk arrives or leaves the port by train. So there is a considerable potential for growth in our railfreight offering. But you must have the volume in order to grow and with the Ocean Three service we now have the potential to generate the necessary volume.

"We have the infrastructure to offer efficient and regular intermodal services from Dunkirk in the form of both rail and barge shuttles and this is a plus point that shouldn't be underestimated," Mr Raison said.