Management Column: "New perspective for Naaldwijk: invest and optimize"
July 12, 2024
Members, growers, dealers and other floriculture parties regularly discuss the future of Royal FloraHolland's hubs. In those conversations, conclusions are drawn that are sometimes correct, but sometimes not. That's why in this column I would like to give a glimpse into the RFH vision, the plans for our commercial real estate and the future of the hubs. Because there are clear plans with perspective for members, growers, buyers, transporters and RFH employees at our hubs. In this column, I address the plans for the Naaldwijk hub.
Multi-hub strategy
Our three hubs together are essential for a healthy future of our platform, this is the multi-hub strategy. One part of this is a smart investment in the future of the Naaldwijk hub, which is part of an extensive plan. Instead of investing in overdue maintenance (of old commercial real estate), we are investing mainly in a new layout of our commercial real estate. In doing so, we are future-proofing the 'Elsen building' and the hub as a whole. The hub has grown organically over the past decades, and was initially intended primarily as an independent auction. As a result, there are many obsolete properties that no longer fit with our innovative practices and processes. Indeed, we are now moving toward an RFH platform, with a multi-hub approach where growth of supply and demand is key. That creates different demands. That is why we are going to partially redesign Naaldwijk. In the overall plans for Naaldwijk, the area 'Bloemblad 2' will be sold and 'TPW Mars' will remain in portfolio to facilitate future growth.
What are we going to do?
The short answer is a lot. We looked at the layout and use of buildings from different perspectives. In an extensive puzzle and rearrangement, we have bundled and reduced space for our own logistics process, allowing us to handle the same volume with less square footage. We are demolishing a highly obsolete part of the 'Elsen Building' that is costly to maintain and has relatively little volume because it has only one building layer. We will create storage for logistics in the outdoor space, where we also can make better use of the height.
Logistics
By bundling spaces that are currently scattered across buildings, and a more compact logistics process, we also reduce the number of transport movements. We concentrate the logistics operation on the first floor and realize a new cold store/cold storage room here. For tenants, we are developing as many directly accessible dock locations as possible on the ground and second floors. We are also making the working environment safer for customers and employees by no longer allowing vehicles with engine emissions into the premises; from now on, these will all be outside.
The entry, exit and storage of logistics means will of course remain available at the hub. Thus, the container-washing unit remains in place but the storage of logistics means moves outside as much as possible. This is safer and saves expensive covered storage.
Sustainability
Throughout the plan, we save on transport movements and demolish as sustainably as possible so that building materials are given a new purpose. The recently installed LED lighting in older parts of the Dijkzijde buildings has already been deliberately sourced so that it can be smartly moved back to other areas. With modifications to facades and new cold storage space on the second floor, we are taking a further step in energy efficiency.
Office space
Since corona, our office colleagues still work a lot of hybrid, so we are not using the Fleurcenter office tower to its full potential. We're going to do that smarter. By bundling office space in the Fleurcenter, we will achieve a higher occupancy rate. We do want to keep the offices for our operational management close to the workfloor and the logistics process, and that will remain the case in the future.
Ready for the future
With these plans we are further preparing the Naaldwijk hub for the future. This is necessary within the multi-hub strategy. In this way, customers in Naaldwijk will continue to receive good service, we will keep RFH financially healthy and we will make optimal use of our logistics hubs, including preventing an undesirable and expensive shift of supply to Aalsmeer. After all, the latter is not desirable for all lots in the sector. So we at Royal FloraHolland are really going to focus on this. Besides smart measures and frameworks for supply, new developments such as the digital auction clock and one central auctioning, in combination with Floriday, ensure that flows are optimized. However, it requires commitment from growers and buyers; we can only achieve this together.
RFH2.0
The plans for Naaldwijk are part of RFH2.0 in which we take the affordability of RFH's strategy and plans as our starting point. We are working on adjustments and solutions that will enable us to realize sufficient profitability and capital to finance our future plans. The main goal is value creation and affordable services for our growers and buyers, at acceptable rates and costs/expenses/charges per unit. And that, of course, with a reliable logistics performance. At the same time, we want to be attractive as an employer for logistics employees, with more (longer) day shifts.
I realize that these plans and developments may lead to additional questions. However, the plans will not be realized overnight; it will take several years. As soon as more is clear about the planning and impact, we will of course report on this in more detail. First, with the committed users of the hub directly; employees and some tenants who will be affected by this redesign. The overall purpose | goal is clear. A future-proof hub with affordable services, where we can work and do business together more efficiently in a nicer and more modern environment.
Multi-hub strategy
Our three hubs together are essential for a healthy future of our platform, this is the multi-hub strategy. One part of this is a smart investment in the future of the Naaldwijk hub, which is part of an extensive plan. Instead of investing in overdue maintenance (of old commercial real estate), we are investing mainly in a new layout of our commercial real estate. In doing so, we are future-proofing the 'Elsen building' and the hub as a whole. The hub has grown organically over the past decades, and was initially intended primarily as an independent auction. As a result, there are many obsolete properties that no longer fit with our innovative practices and processes. Indeed, we are now moving toward an RFH platform, with a multi-hub approach where growth of supply and demand is key. That creates different demands. That is why we are going to partially redesign Naaldwijk. In the overall plans for Naaldwijk, the area 'Bloemblad 2' will be sold and 'TPW Mars' will remain in portfolio to facilitate future growth.
What are we going to do?
The short answer is a lot. We looked at the layout and use of buildings from different perspectives. In an extensive puzzle and rearrangement, we have bundled and reduced space for our own logistics process, allowing us to handle the same volume with less square footage. We are demolishing a highly obsolete part of the 'Elsen Building' that is costly to maintain and has relatively little volume because it has only one building layer. We will create storage for logistics in the outdoor space, where we also can make better use of the height.
Logistics
By bundling spaces that are currently scattered across buildings, and a more compact logistics process, we also reduce the number of transport movements. We concentrate the logistics operation on the first floor and realize a new cold store/cold storage room here. For tenants, we are developing as many directly accessible dock locations as possible on the ground and second floors. We are also making the working environment safer for customers and employees by no longer allowing vehicles with engine emissions into the premises; from now on, these will all be outside.
The entry, exit and storage of logistics means will of course remain available at the hub. Thus, the container-washing unit remains in place but the storage of logistics means moves outside as much as possible. This is safer and saves expensive covered storage.
Sustainability
Throughout the plan, we save on transport movements and demolish as sustainably as possible so that building materials are given a new purpose. The recently installed LED lighting in older parts of the Dijkzijde buildings has already been deliberately sourced so that it can be smartly moved back to other areas. With modifications to facades and new cold storage space on the second floor, we are taking a further step in energy efficiency.
Office space
Since corona, our office colleagues still work a lot of hybrid, so we are not using the Fleurcenter office tower to its full potential. We're going to do that smarter. By bundling office space in the Fleurcenter, we will achieve a higher occupancy rate. We do want to keep the offices for our operational management close to the workfloor and the logistics process, and that will remain the case in the future.
Ready for the future
With these plans we are further preparing the Naaldwijk hub for the future. This is necessary within the multi-hub strategy. In this way, customers in Naaldwijk will continue to receive good service, we will keep RFH financially healthy and we will make optimal use of our logistics hubs, including preventing an undesirable and expensive shift of supply to Aalsmeer. After all, the latter is not desirable for all lots in the sector. So we at Royal FloraHolland are really going to focus on this. Besides smart measures and frameworks for supply, new developments such as the digital auction clock and one central auctioning, in combination with Floriday, ensure that flows are optimized. However, it requires commitment from growers and buyers; we can only achieve this together.
RFH2.0
The plans for Naaldwijk are part of RFH2.0 in which we take the affordability of RFH's strategy and plans as our starting point. We are working on adjustments and solutions that will enable us to realize sufficient profitability and capital to finance our future plans. The main goal is value creation and affordable services for our growers and buyers, at acceptable rates and costs/expenses/charges per unit. And that, of course, with a reliable logistics performance. At the same time, we want to be attractive as an employer for logistics employees, with more (longer) day shifts.
I realize that these plans and developments may lead to additional questions. However, the plans will not be realized overnight; it will take several years. As soon as more is clear about the planning and impact, we will of course report on this in more detail. First, with the committed users of the hub directly; employees and some tenants who will be affected by this redesign. The overall purpose | goal is clear. A future-proof hub with affordable services, where we can work and do business together more efficiently in a nicer and more modern environment.
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