“I called us a bunch of daredevils.” Vertom is a significant global player in maritime logistics services, operating from their main offices in Rotterdam. That’s also where their director Arjan de Jong is, who is bringing us up to date about his valuable period on the Supervisory Board of NNPC.
As a young accountant, Arjan de Jong (now 55) had the good fortune to work for an office that had a lot of clients in the shipping sector. From there, he moved into the maritime world where he was able to progress to become co-owner and director of Vertom. His studies at the University of Amsterdam in environmental management – which was still a course for pioneering spirits at the time – were “hugely relevant and I’ve benefited from it a lot.”
You’ve been a director of Vertom for nearly fifteen years. How has the company changed in that time?
“When I started in this role, the entire shipping industry was going through a bad patch, for instance because of Lehman going under and the start of the banking crisis. At that point, we decided together that we were going to go for it. I called us a bunch of daredevils – down-to-earth but opportunistic. We bought ships from businesses that were in financial trouble. It gave us a lot of energy in what were challenging times. Then we started diversifying so that we’d be able to cope with the market’s volatility. That growth was partly organic and partly through takeovers. We professionalized too, putting a modern management structure in place.”
The world of shipping has consolidated a great deal over recent decades, but Vertom has remained independent. How did you achieve that?
“We’re in the short sea market, which used to be dominated by small family businesses. Even though the market was dire, those people kept on working until it became untenable. When it got to the point that the owner was no longer able to meet their financial obligations, the banks pushed them either to sell or to merge. We were in the right place at the right time; we were able to make the most of that and strengthen our own position. We managed to stay independent by making the right decisions at the right moments. That’s not always easy to predict, so you need a slice of luck too. I don’t think that the consolidation in the segment has finished yet, by the way – it’s going to keep going for a while yet.”
Vertom has had a close relationship with NNPC throughout.
“Yes, we go back a long way. NNPC has been our P&I club for as long as I’ve been with Vertom. They’re a real source of knowledge within Dutch shipping. If we need to know anything, we go knocking on NNPC’s door. And as we’re talking about consolidation… well, I’m glad you’re still around! It means we don’t have to join some bigger outfit in the UK or Scandinavia. The lines are short, the contacts are fine, the attitude is open: that’s all an excellent fit with our own culture.”
Until recently, you were on our Supervisory Board. We’re very grateful for that, of course. What did being a member of that board involve?
“NNPC approached me at a time when things weren’t going smoothly on the Supervisory Board. My job was to help pour oil on the troubled waters. With hindsight, I can understand the thinking: we’re from Rotterdam and acted as a counterweight to the rest of the board, who were largely from the north. My background as an accountant was a help too.”
How did it go?
“Very nicely. We were able to have some pretty heavy discussions about the future of NNPC. Should it merge or stay independent? How much growth is needed to survive? What’s the raison d’être for NNPC in this market? Along with the rest of the board, I was able to provide some useful input. I even extended my term there by an extra year and served for four and a half years in the end. Then I reckoned that I’d done what I’d been brought in for and stepped down. I’m pleased with the time I put into it, though. The Supervisory Board is in calmer waters now. They’ve got a good team there.”
You’ve got a background in environmental management, so you’re as interested in sustainability as we are. How do you think the sector is going to tackle that issue?
“Given that short sea is a relatively small market within shipping, there’s not much investment in R&D yet. We’re seeing initiatives such as auxiliary sail power, solar panels on deck and research into alternative fuels. There’s nothing radical yet, but there is awareness and every little bit helps reduce the emissions. At the moment, the major gains are to be made in the container shipping and deep sea markets. As for us, well, we’re working with TB Shipyards to get a diesel-electric power train onto the market. That’s a step in the right direction. It’s future-proof too, because you can also use alternative fuels then. We’ve put our neck on the block for this one.”
Is there anything else you’d like to add?
“NNPC is a business that we should cherish. Even though we may be critical, we always appreciate the many good things you do for us. NNPC is the stakeholder you can turn to at a personal level, the smaller party that’s taking on the challenge of keeping its head above water. That’s not always easy and it deserves recognition.”
Want to know more?
If you would like to know more about the maritime transport service provider Vertom, dive into their website. If you need P&I expertise and are intrigued to find out how NNPC can also be an accessible knowledge centre for you, contact us here.