Ritchie Bros. has been successfully building from Moerdijk for 25 years

With $6 billion in annual machine sales, Ritchie Bros. is the global leader in used equipment. What is the secret behind this success? Moreover, June marks exactly 25 years since the Moerdijk auction site officially opened its doors. A great opportunity to let Shane Eshuis tell how Ritchie's unique formula contributes to the success of many customers in the Benelux and far beyond.

Ritchie Bros. was founded in Canada in 1958 and made the crossing from North America to Europe in 1987. The first auction took place at the Maasvlakte near Rotterdam, and that location served as the backdrop for many years to come. "At the time, it provided a highlight on the equipment calendar several times a year. From all over Europe and far beyond, buyers and sellers of used machines or trucks came to this event," knows Shane Eshuis, who joined Ritchie Bros. in 2009 as Yard Operations Manager and now serves as Vice President Operations International.

Largest establishment

In 1998, Ritchie Bros. opened its first European location in Moerdijk, which was then a relatively empty industrial site. Since then, the company has locations throughout Europe and the Middle East, but the Moerdijk auction site, with an area of 25 hectares, remains Ritchie Bros.'s largest site within the EMEA region. The official opening was in June 1999, following the completion of the office area with reception desk, theater and storage facilities. Every year, parent company RB Global (which also includes the online platforms Mascus and Marketplace-E) sells more than 650,000 machines, trucks and accessories worldwide. From the Netherlands, some 12,000 machines are sold annually to buyers from more than 90 different countries.

For years, Moerdijk - where the next auction will take place on June 19 and 20 - was the only location on this side of the big ocean besides Dubai (UAE) and Brisbane (Australia). "There were representatives in certain countries, though, who came to Moerdijk with customers to buy or sell machines," Shane says. "The theater was invariably fully filled for this happening, with a thousand seats, and it was also full of potential buyers in the back and on both sides. The role that the annual global Ritchie Bros. auction in Orlando, Florida, in February fulfills as a barometer for the international earthmoving world, such a similar position Moerdijk held for decades on the European continent."

True eye-catcher

The international role played by Moerdijk cannot be separated from the fact that the Dutch auction site is located in close proximity to several world ports (Rotterdam, Amsterdam and Antwerp) and also has a customs office function, which in the past has resulted in machines being auctioned that you did not often see in Europe. Shane: "Think of a CAT D11 bulldozer or a 110-ton Trencor T17 cutter. That kind of equipment was at our auction on a regular basis and invariably attracted a large crowd. The bulk consisted of more common models of earthmoving machines, telehandlers, aerial work platforms or road construction equipment, with a true eye-catcher regularly in the form of a special mining machine or crane."

The central location near rail, road and water connections (good infrastructure) combined with the customs function and the widely acclaimed Dutch trading climate have contributed greatly to the popularity of the Moerdijk yard as an auction location. "Between 2004 and 2012, Ritchie Bros. greatly expanded its presence in Europe with its own branches in England, Germany, France, Italy and Spain. This naturally caused more fragmentation and a less central role for Moerdijk. Nevertheless, the Dutch branch has always maintained a prominent place within the global company."

Physical becomes online

Another development is the shift to online bidding. Whereas in 1999 nearly 100% of buyers were still physically present at the auction site, in 2019 60% of all items were already sold through online bidding. Due to the Covid pandemic, Ritchie Bros. switched completely to the so-called Timed Auction system in March 2020. "For the business, it hasn't been bad, although everyone misses the face-to-face contact during live auctions," Shane knows. "Corona has changed the world tremendously and we've changed with it. A comprehensive inspection overview of every machine we sell appears online with photos, videos and sometimes even a 360º presentation, making it very easy and transparent to bid along online." 

On top of that, Ritchie Bros. has expanded its offerings with several online equipment platforms (Mascus, IronPlanet and Marketplace-E) and through the acquisitions of platforms such as SmartEquip, Rouse and IAA. "Our aim is to ensure continuity, also towards the market. Thanks to flexible solutions, global presence and up-to-date market insights, we can respond well to changes in the equipment world and thus add value to our customers. Not only when buying or selling machines, but also with services such as financing, parts, data and insight to increase uptime and control costs. Ritchie Bros. today is much more than a traditional auction house, although sometimes the market still needs to discover that."