Port of Bilbao, Home to Investments Totaling Around 700 Million Euros

[By: Port of Bilbao]

The Port of Bilbao is a logistics hub, equipped with terminals, warehouses, services and professionals to handle, advise on and load/unload any type of traffic, of any nature and size for anywhere in the world; an industrial hub that houses plants that manufacture or transform and terminals used to assemble parts and export them all around the world; and an energy hub in which an industrial zone has been set up and where energy of all kinds is produced, leading the energy transformation and promoting renewable projects.

These three key areas - logistics, industry and energy – are the cornerstones upon which the Port Authority of Bilbao and the companies of the port community have established sustainable growth guidelines, and are taking forward projects that contribute both to the economic growth of the Basque Country and to making it an innovative, cutting-edge and sustainable region. In parallel to its key role in the internationalisation of our companies, the port acts as a driver to become part of a new economy in which, as well as being agile, flexible and competitive, we must be sustainable to compete in a global market.

At present, projects requiring an investment of close to 700 million euros are either ongoing or are in the process of being approved in the Port of Bilbao. Of this investment, 78% is private and is earmarked for fuel plants and synthetic aggregates, renewable hydrogen, recycling of all kinds, biofuels and wind power components. Likewise, the circular economy is largely dependent on the investments of both the Port Authority itself and private enterprise.

Two other major areas of opportunity the Port of Bilbao is providing for the Basque Country are the capacity to host green corridors and the EU-backed Basque Hydrogen Corridor. In this respect, the Ports of Bilbao, Amsterdam and Duisport, together with the Basque Energy Agency (EVE), Petronor and the Dutch organisations SkyNRG, Evos Amsterdam and Zenith Energy Terminals, have co-signed a Memorandum of Understanding (MoU) in the field of hydrogen and its distribution along this maritime route. The Port of Bilbao is a key player in this corridor targeted by the European Union, as it meets all the requirements for the development of the production, transport and logistics of green hydrogen and its contribution to decarbonisation, with a view to net zero emissions.

On another note, the Board of Directors of the Port Authority has awarded the contract for the works of the second phase of the central breakwater in the Outer Abra for 55.14 million euros. These works will generate a new port area of 31.2 hectares and 1,011 linear metres of new berthing quays.

Economic and financial equilibrium
Turnover has amounted to 39.2 million euros between January and June 2024, compared to 33.6 million euros in the same period in 2023, a year-on-year increase of 16.8%.

Debt with the European Investment Bank at the end of the half year stands at 39 million euros, with cash of 66 million euros available to cover ongoing investments.

In line with the principle of financial and management autonomy, maintaining a healthy economic and financial balance is another cornerstone of the 2023-26 Strategy Plan of the Port Authority of Bilbao, enabling the port to roll out new infrastructure and services in the areas of energy transition, innovation and the environment. In this respect, the Port Authority has secured a total of 30.8 million euros in EU funding to support a portfolio of actions totalling 102.1 million euros, with an average co-funding rate of 30.1%. These investments are in the implementation phase, for execution over the period 2024 to 2026.

The second phase of the Central Breakwater awarded
The Board of Directors of the Port Authority of Bilbao has awarded the contract for the works of the "Construction project for the Central Breakwater of the extension of the Port of Bilbao in the Outer Abra (2nd phase)" to the joint venture formed by "SACYR CONSTRUCCIÓN, S.A. - CONSTRUCCIONES AMENABAR, S.A.". The estimated cost of the work amounts to 55,148,345 euros, with a completion period of 26 months.

The project covers those aspects related to the construction of the vertical quay of reinforced concrete caissons, backfilling, the bedding layer and superstructure. However, the scope of the construction project does not, in particular and among other aspects, provide for the subsequent general filling of the esplanade of the quays generated. In this respect, the different institutions involved envisage that the filling and soil materials originally selected for the project will be replaced by surplus excavation materials from large-scale public works being undertaken in the area around the port of Bilbao. This is a clear example of circular economy, in line with the specifications of the environmental impact statements applicable to the project, which essentially determine that the use of such materials is to be prioritised over the use of natural resources (dredging of the seabed, quarries, etc.).

The second phase of the central breakwater construction works will generate a new port area of 31.2 hectares and 1,011 linear metres of new berthing quays: 664 linear metres on the new A3 Dock and 347 linear metres as an extension of the current A4 Dock. These works, a strategic project for the Port of Bilbao which began in the 1990s, will bring the expansion of the port in the Outer Abra to its conclusion, and will enable the port to meet demand for port land to accommodate new projects and, consequently, maintain its position as a port of reference in the Bay of Biscay, as well as generating wealth and employment for the Basque Country as a leading logistics, commercial and industrial hub.

10% growth in traffic in the first half of the year
Between January and June, the Port of Bilbao handled 18 million tonnes of goods, an increase of almost 10% and 1.6 million more than the same period last year. This is the highest percentage increase since before the pandemic, is above the average for State Ports (+3%) and confirms the upturn in the business of the port, in line with the reactivation of the Basque economy.

Figures for bulk liquids and breakbulk are up 16% and 11% respectively, whilst those for container traffic and bulk solids have fallen by 5% and 2%, respectively. In general terms, the goods with the highest upturn in traffic have been diesel oil, crude oil, chemical products, steel products, minerals and paper and pulp, whilst those which have seen the biggest downturn have been natural gas, fuel oil, oils and fats, cement and clinker and soya beans.

Ro-Ro traffic is up 11% and has exceeded 550,000 tonnes, whilst figures for ITUs (intermodal transport units) have also increased by 4%. These results have been achieved despite the fact that Brittany Ferries has not operated in the first quarter of this year due to structural modifications undertaken to adapt the ro-ro ramp to the demands of its new vessels, which, like those of Finnlines - the other shipping company that carries ro-ro traffic - have greater capacity and are, in turn, more sustainable.

In terms of seaboards, Atlantic Europe leads the way with 43% of the traffic, followed by Atlantic North America with 16%, Atlantic South America with 14% and Asia with 13%. Of the twenty main countries to which the port imports and exports, twelve are outside Europe, which proves that Bilbao is a port with services and traffic for both short sea shipping and transoceanic routes.

Finally, between January and June, 59 ferries have called at the Port of Bilbao terminal in Zierbena, servicing the United Kingdom and Ireland, with 50,680 passengers on board, a year-on-year increase of 7%. Over the same period, the Getxo cruise terminal has welcomed 35 cruise ships, with 54,969 cruise passengers on board, a 14% year-on-year increase for the same period. In total, 105,649 people arrived by boat, 10% more than figures for the period January to June last year.