Rotterdam coal, iron ore terminal EMO secures lease till 2043

Source: PLATTS

Rotterdam terminal EMO, or Europees Massagoed Overslagbedrijf BV, the largest coal and iron ore storage and transshipment facility in Europe, said it had secured an extension to its land lease through to 2043.

The Port of Rotterdam is committed to EMO serving its customers, which are mainly German steel and power utilities, the operator said on its website. The statement follows objections to transit coal through Rotterdam from local government and environmental groups.

The Rotterdam city council will debate the EMO contract extension on Thursday, according to local media.

“Reviewing the prolonged land lease is not an option as this is a business transaction between two private parties (EMO and Port of Rotterdam),” EMO said in an email.

Disruption to crucial dry bulk operations in the Amsterdam-Rotterdam- Antwerp zone may threaten steelmakers relying on ports in the Netherlands for the storage and transshipment of raw materials, such as ThyssenKrupp, Dillinger and ArcelorMittal. Tata Steel Europe operates its own bulk terminal at IJmuiden.

“EMO has a strong and successful position in the iron ore and coking coal market and is further diversifying its product portfolio of dry bulk commodities,” said the company, which has operated since 1973.

The Port of Rotterdam said 85% of the coal handled in Rotterdam is forwarded to Germany, and half of that amount is used for steel production, with the remainder for power generation.

EMO said in 2017, 10.6 million mt of cargo was distributed to the steel sector, with 14.8 million mt sent to the energy and silicon sectors.

The Paris climate agreement will mean the Netherlands will need to have reduced its CO2 emissions by 49% by 2030 compared to 1990, but does not include any statements on the actual use or storage of coal itself, the Port of Rotterdam said.

In December, EMO and JERA Trading agreed a five-year contract to supply specialty coal for silicon metal production, used in solar panels.

Silicon metal is used as a source for photovoltaics and computer integrated circuits. EMO will provide the transshipment, storage and manufacturing facilities at its site, while JERA will market and source the coal.

Source: PLATTS