Rotterdam port is found in Rotterdam city, Netherlands and is the largest port in Europe. The port was the world’s busiest until 2004 when Singapore first overtook it followed by the Chinese Shanghai. Rotterdam port ranked eleventh largest globally regarding twenty-foot same units that it handled in 2011. The rank had deteriorated since 2006 when it ranked sixth, 2008-ninth, and 2009-tenth as more ports kept increasing the units they handled. The port which had also done well in cargo tonnage ranked sixth-largest worldwide in annual cargo tonnage in 2012. Rotterdam port covers 105 square kilometers and extends for a distance of 40 kilometers stretch.

Impact in the Local economy and global economic trade

Rotterdam port has had significant opportunities for the locals of Rotterdam city and the entire Netherlands at large. The port offers numerous employment opportunities for the citizens of the Netherlands thus raising their living standards and raising their economy. Most people have also invested in other businesses and companies because of the ease of importing materials and exporting finished products to and from Netherland respectively through the port. As a result, industrialization has thrived in the country because of the ever increasing number of investors ever starting businesses and companies. The primary benefit of industrialization is usually the development of infrastructure. Companies and organizations need good transport systems and communication networks to facilitate their business operations. This necessity and the availability of the port have enhanced the development of roads and communication throughout the Netherlands. These improved infrastructures have promoted the development of both big and small companies thus raising the living standards of the citizens and raising the country’s local economy. Finally, the port and the benefits it has come along with mentioned above, have also improved the spread and development of other amenities like education. Most citizens can afford to take their children to school with their incomes and the help of the government. This situation has made the Netherlands have many scholars graduating annually and improving the innovations in the country thus improving other sectors that earn revenue to households and the government.

The port has impacted not only the local economy of Rotterdam city and Netherlands but also the global economy trade. Being the largest port in the world, it accommodates the biggest and broadest of ships from any nation. This capability has made it preferred by most countries since it was launched. Global business has, therefore, thrived through the port as countries import and export raw materials and finished products in and out of the Netherlands through the port. Other landlocked countries also use the port to import and export their products. The global business operations through the port have benefited all the countries involved different levels of revenue thus raising their economies and in extension the global economy trade.

Technology Advance

Rotterdam port outclasses its rival ports by the level of technology that it employs in its day-to-day operations. Unlike the other ports which use human controlled cranes to load and offload cargo from the ships, Rotterdam port uses robotics in its operations. Its cranes are computer controlled thereby making them more efficient because it eliminates the human error that the other human-operated cranes experience from time to time. The autonomous robotic cranes load the cargo on computer controlled chariots also available in the ports that carry one container at a time. Rotterdam’s management has also installed infrared techniques to identify and track the cargo after being loaded on the chariots to their delivery on the designated areas on the port. Other unmanned robotic stacking cranes offload the cargo from chariots and stack them at the stacking yard. These technologies have increased the efficiency of the port because the machines work continuously without errors or interruptions. It has also made the port to be among the most preferred in the world because ship owners cherish ports where they will spend the least amount of time with the least possible errors. The port is still working on ways that can do their work even better by bringing new technological innovations that will better their current status.

Connecting Hub Gateways

The port is located strategically at the mouth of River Rhine and on the North Sea, both of which have deep waters that allow unloading and loading of the ships without the needing sea locks. Its strategic location also makes it accessible from the open seas thus making it preferred by most ships because they unload and load their vessels in no time before proceeding to their next destinations. Other than the excellent sea gateways, the port is also connected to the rest of Europe by roads, inland shipping, short sea, pipelines, and an extensive intermodal rail network. These channels have made trade more comfortable and fast between the trading countries.

Comparative, Competitive, and Absolute Advantage

Comparative advantage is a firm’s ability to produce goods or service at a lower opportunity cost than its competitors in the market. Rotterdam port enjoys a high comparative advantage because of the immense technology that it had applied in its day-to-day operations. The techniques eliminate expenses that the company would have incurred without it. For instance, unlike the other ports, the company does not have to pay crane operators, truck drivers, and other employees involved in the stacking and storage. This situation means that the company is using less opportunity cost than its competitors thus having a comparative advantage over them. Competitive advantage is the situations, conditions, or circumstances that put a company or organization in a superior position regarding business operations. Rotterdam has managed to have competitive advantages over its competitors for a long time because of the many factors including the strategic and favorable gateways to entire Europe, deep waters, and the robotic operations that make their services efficient.  Countries thereby prefer Rotterdam over its competitors for the reasons discussed above.

Absolute advantage refers to a company’s ability to use the same amount of resources to produce a higher number or value of products. Rotterdam port also has a relatively higher absolute advantage over its competitors because of the innovations that it has implemented and the strategic locations as mentioned in the discussion above. The technology eliminates the human error that human operated cranes and vehicles would have otherwise created thus making the company to load and unload ships faster than its competitors.

Manufactured Product

The port of Rotterdam also doubles up as a manufacturing hub with 58 million tonnes capacity oil refineries. These refineries manufacture products like diesel, gasoline, the feedstock for chemical industries, kerosene, and heating oil. These products increase the country’s revenue because of the massive local and foreign consumption. Their location at the port also allows for easy transportation within the country and to the foreign nations.

Economic Growth

As already discussed, the port has led to massive economic growth in the Netherlands because of the numerous opportunities that come along with its development and expansion. The ports current global rank still makes it preferable to many states thus meaning that it still is profitable. The low production and operation costs that it incurs also widen the profit margins for the company and nation at large.

Mega Ships

The depth and size of the Rotterdam port allows it to accommodate mega ships and has enhanced business with nations that use those sizes of vessels. The port is also recognized for receiving many cruise ships annually.

 
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