Boskalis_Annual_Report_2016

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KOTUG SMIT TOWAGE MAKES STRONG START

The establishment of harbor towage company KOTUG SMIT Towage in April 2016 was for Boskalis an important step in the implementation of its strategy aimed at concentrating and expanding all towage services in regional partnerships. With the integration process still in full swing, during the first year of its existence KOTUG SMIT Towage already managed to further reinforce its leading position in Northwest Europe.

“The increasing concentration in shipping has major implications for our harbor towage activities,” said Robert-Jan van Acker, group director of the Towage & Salvage division. “The increases in scale among our clients, particularly in container transport and wet and dry bulk, have in a short space of time resulted in overcapacity and substantial price pressure in the entire logistics chain. Boskalis anticipated these developments in time by consolidating its towage services in regional joint ventures, in which each partner holds an equal share. Besides KOTUG SMIT Towage, this includes Smit Lamnalco (worldwide terminal services), Keppel Smit Towage (Asia) and Saam Smit Towage (Americas). These joint ventures are now more competitive and are better able to respond to demands from the market. Global shipping companies are increasingly choosing harbor towage companies that provide services in more than one port. Since the establishment of KOTUG SMIT Towage we have seen its market share in Northwest Europe rise by a few percent in volume, while towage rates are under pressure, and financially it is doing well.”