Connect with us

Maritime

HHLA benefits from strong increase in container transport by rail

Published

on

HHLA benefits from strong increase in container transport by rail. Image: HHLA
HHLA benefits from strong increase in container transport by rail. Image: HHLA
Listen to the story (FreightComms AudioPost)

Hamburger Hafen und Logistik AG (HHLA) recorded positive business development in the first half-year of 2021. The Group operating result (EBIT) increased by 63.2 percent year-on-year to € 90.5 million. The positive business development was partially attributable to high storage fees as a result of continued shipping delays at the Port of Hamburg as well as a strong increase in container transport volumes. While container transport recorded strong growth of 16.0 percent, container throughput increased slightly by 0.7 percent compared with the same period last year. The Real Estate subgroup achieved slight growth in revenue and significant increase in earnings. In total, Group revenue increased by 12.8 percent to € 709.2 million.

Angela Titzrath, Chairwoman of HHLA’s Executive Board: “Global supply chains have been disturbed as a result of the coronavirus pandemic as well as singular events such as the recent one in the Suez Canal. This has resulted in massive shipping delays to which we terminal operators must adapt. However, we are conscious of our responsibility for the steady supply for consumers and companies in Germany and Europe. We are therefore undertaking great efforts to ensure reliable handling at our facilities and fast onward transport of containers. The fact that we once again achieved a positive operating result in the first half-year of 2021 despite challenging conditions is an expression of the strength of HHLA and of its ability to successfully adapt to current challenges.”

Port Logistics subgroup: performance January to June 2021

The listed Port Logistics subgroup recorded a strong 13.2 percent increase in revenue to € 695.1 million in the first six months (previous year: € 614.2 million). The operating result (EBIT) increased by 70.4 percent to € 83.8 million as compared with the previous year, which was strongly affected by the pandemic (previous year: € 49.1 million). The EBIT margin improved by 4.0 percentage points to 12.0 percent.

In the Container segment, the throughput volume at HHLA’s container terminals increased slightly by 0.7 percent to 3,369 thousand standard containers (TEU) (previous year: 3,345 thousand TEU). At the three Hamburg container terminals, the throughput volume of 3,073 thousand TEU was up 0.5 percent on the same period last year (previous year: 3,058 thousand TEU). This was due in particular to the moderate increase in cargo volumes for Far East services, which offset pandemic-related volume shortfalls in the previous year and the loss of a Far East service in May 2020. On the other hand, there was a moderate decline in feeder traffic, particularly in the Baltic region. The international container terminals in Odessa and Tallinn recorded an increase in throughput volume of 3.4 percent to 296 thousand TEU (previous year: 286 thousand TEU). Only RoRo ships – and no container ships – were processed at the Trieste container terminal during the first six months of 2021.

Revenue increased year-on-year in the first half of 2021 by 11.4 percent to € 404.9 million (previous year: € 363.4 million). The slight increase in volume of 0.7 percent was strongly exceeded by the increase in revenue quality. Average revenue per container handled at the quayside rose by 10.6 percent year-on-year. This was due to an advantageous modal split with a high proportion of hinterland volumes and a temporary increase in storage fees as a result of ongoing ship delays. In addition to the pandemic-related delays in ship arrivals, the blocking of the Suez Canal in March also led to longer dwell times that led to an increase in storage revenue. Against this backdrop, the operating result (EBIT) increased by 72.1 percent to € 63.4 million (previous year: € 36.8 million). The EBIT margin increased by 5.5 percentage points to the more normal level of 15.6 percent.

In the Intermodal segment, container transport increased strongly by 16.0 percent to 832 thousand TEU (previous year: 718 thousand TEU). It was primarily rail transport that continued to benefit from the recovery in freight volumes beginning in the second half of 2020. Rail transport increased by a remarkable 19.3 percent year-on-year to 678 thousand TEU (previous year: 568 thousand TEU). The increase was even more significant in the second quarter compared with the previous year’s pandemic-related weak quarter. The growth in volume during the first half of the year was widely diversified. In a persistently challenging market environment, road transport increased moderately by 3.4 percent to 155 thousand TEU (previous year: 149 thousand TEU).

At € 252.9 million, revenue was up by 13.3 percent on the prior-year figure (previous year: € 223.2 million). However, this increase failed to match the development in transport volumes. Despite the advantageous increase in the rail share of HHLA’s total intermodal transportation from 79.2 percent to 81.4 percent, average revenue per TEU decreased as a result of changes to the structure of freight flows. In light of the positive trend in volume and revenue, the operating result (EBIT) increased by 33.4 percent to € 46.0 million in the reporting period (previous year: € 34.5 million).

Real Estate subgroup: performance January to June 2021

HHLA’s properties in the Speicherstadt historical warehouse district and the Fischmarkt area continued their positive trend with almost full occupancy in the first six months of 2021.

Revenue rose slightly by 1.9 percent in the reporting period to € 18.4 million (previous year: € 18.0 million). In addition to the reactivation of revenue-based rent agreements, this was primarily due to the partial waiving of rent deferrals as a consequence of the Covid-19 crisis in the previous year. As maintenance volumes remained almost constant, the operating result (EBIT) increased by 7.1 percent to € 6.6 million (previous year: € 6.1 million).

Forecast for 2021 partially raised

The economic development of HHLA in the first half of 2021 was largely in line with expectations. However, expectations for container transport and revenue for the Port Logistics subgroup and the Group have been raised.

For the Port Logistics subgroup, a moderate year-on-year increase in container throughput is expected, as well as a significant increase in container transport (previously: moderate increase). In view of the positive development in the first half of 2021, a significant increase in revenue is now expected for the year as a whole (previously: moderate increase). EBIT for the Port Logistics subgroup is still expected to be within the range of € 140 million to € 165 million.

A slight year-on-year increase in revenue is still considered possible for the Real Estate subgroup with an operating result (EBIT) on a par with the previous year.

At Group level, HHLA now expects a significant increase in revenue (previously: moderate increase), while an operating result (EBIT) in the range of € 153 million to € 178 million is still anticipated.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maritime

Flanders announces Gateway²Britain to make trade with UK frictionless

Published

on

Flanders announces Gateway²Britain to make trade with UK frictionless. Image: Port of Antwerp-Bruges
Flanders announces Gateway²Britain to make trade with UK frictionless. Image: Port of Antwerp-Bruges
Listen to the story (FreightComms AudioPost)

 

Flanders, the northern region of Belgium, has announced Gateway²Britain, an innovative digital application that will bring visibility and transparency for trading with Flanders into one place. It is being delivered by a partnership between Port of Antwerp-Bruges, VLAIO, Flanders Investment & Trade and Deloitte. Their aim is to make trade between Flanders and Britain as frictionless as possible.

Traders are likely to be able to validate an initial version of Gateway²Britain by the end of this year. The application will allow traders to fill out just one dataset online, which is then automatically shared with all the relevant supply chain & logistics partners.

The UK is a significant trading partner for Flanders. Full-year trade figures for 2022 revealed that the total value of exports from the UK to Flanders amounted to 33.77 billion EUR. Imports into the UK from Flanders totaled 27.95 billion EUR, making the UK Flanders’ 4th highest export market. Flanders is in 16th position as a world goods exporter.

Research carried out among more thana thousand UK traders for Flanders Investment & Trade in May 20231 found that nearly 74% of UK companies agree2 that they had been forced to consider alternative markets due to the bureaucracy involved in trading with the EU post Brexit. Almost half of the respondents (48%) said they would trade more if the process was simplified and just over two in five (42%) had seen trade decrease with the EU since Brexit. The research was carried out for Flanders Investment & Trade by Censuswide.

Flanders is already a popular route into the EU for British companies due to its proximity to both the UK and Europe’s major business centres. A market of 400 million consumers is within 6 hours of the region, or 60% of Europe’s purchasing power. The world-leading seaports of Antwerp-Bruges, Ghent and Ostend are all in Flanders and the region has three international airports and sophisticated transport hubs, and over 650 European distribution centers. ​

Around 90% of British goods that are imported into Flanders are further processed and re-exported afterwards. Gateway²Britain will make Flanders an even more attractive route into the EU. No other EU country has yet been able to introduce a similar, comprehensive data-driven system to ease the friction created by Brexit.

The concept behind the new application will be further explained at Multimodal.

British companies who need help with trading with Flanders should contact Flanders Investment & Trade.

Minister-President of the Government of Flanders Jan Jambon currently visiting the UK commented: “Britain is an important trading partner for Flanders. We know from our research that British companies have been looking at alternative markets due to the bureaucracy involved post Brexit. Gateway²Britain signals the end of that bureaucracy. It makes life simple again, whilst meeting all the demands of the new rules.” ​ ​

Dirk Verlee, Trade and Investment Counsellor at Flanders Investment & Trade, based at the Belgian Embassy in London, explained the significance of Gateway²Britain for consumers; “Flanders is a key route in and out of the EU for British traders. This means that if Gateway²Britain solves the challenges of Brexit in Flanders, supply issues that have affected the UK should also be solved.”
Annick De Ridder, Vice-Mayor of the City of Antwerp and President of the board of directors of Port of Antwerp-Bruges: “Port of Antwerp-Bruges has a long tradition of facilitating the supply chain and is fully committed to digitalization. The building blocks are in place to make our world port the ideal candidate to realize the vision behind Gateway2Britain. And that for the widest possible range of stakeholders. As a major export port to the UK, we also see this as an important opportunity for our own competitiveness, Flemish logistics and, by extension, a reinforcement of the economic engine we are for Flanders.”

Continue Reading

Container Shipping Lines

ONE takes delivery of first 24,000-TEU container ship, ONE INNOVATION

Published

on

By

ONE takes delivery of first 24,000-TEU container ship, ONE INNOVATION. Image: ONE
ONE takes delivery of first 24,000-TEU container ship, ONE INNOVATION. Image: ONE
Listen to the story (FreightComms AudioPost)

 

Ocean Network Express announced that “ONE INNOVATION”, the company’s first ever 24,000-TEU class Megamax, was successfully delivered at Kure Shipyard of Japan Marine United Corporation in June 2023.

The vessel, ONE INNOVATION, with a capacity up to 24,136 TEU, will help bring economies of scale and significantly lower carbon emissions through a state-of-the-art hull design that aims to maximize cargo intake and minimize fuel consumption. The vessel is equipped with a bow windshield, an energy saving device, and an exhaust gas cleaning system to meet the emission regulations of IMO. She is also the first of the six new Megamax vessels to joining ONE’s core fleet.

She will be deployed on the Asia to Europe service, under THE Alliance.

ONE is always committed to operational excellence, business sustainability and environmental protection. Through the introduction of ONE INNOVATION together with other five upcoming sister Megamax vessels. ONE targets to offer more competitive and best-in-class services to our customers with decreased environmental impact.

“ONE INNOVATION is the largest vessel in our fleet, and we are proud to have it as our flagship. This newly built vessel will help us pave the way for the sustainable development of global logistics and respond to customer requests with the world’s No. 1 quality of service,” Said Yu Kurimoto, Managing Director of ONE, during the commemorative party. “Last year, we announced our ‘Green Vision’, which aims to achieve net-zero by 2050. We are actively working to reduce greenhouse gas emissions from our fleet, and we are confident that this vessel will contribute to this effort and bring innovation to global logistics.”

Port Rotation

Ningbo – Xiamen – Kaohsiung – Yantian – Singapore – Rotterdam – Hamburg – Antwerp – Southampton – Algeciras – Singapore – Yantian – Hong Kong – Kaohsiung – Ningbo

Continue Reading

Maritime

Mawani and Saudi Post sign deal to deliver express mail service

Published

on

Mawani and Saudi Post sign deal to deliver express mail service. Image: Saudi Ports Authority
Mawani and Saudi Post sign deal to deliver express mail service. Image: Saudi Ports Authority
Listen to the story (FreightComms AudioPost)

 

The Saudi Ports Authority has struck a strategic partnership agreement with Saudi Post to boost its best-in-class solutions and optimize service delivery in line with the objectives of the National Transport and Logistics Strategy.

The deal was signed by Dr. Majid Al Malik, Mawani’s VP for Shared Services and Digital Transformation, and Mr. Rakan Al-Daifallah, government sales general manager.

The collaboration between the public sector entities is set to deploy the latest technologies and modern capabilities in developing a high-performance and cost-efficient logistics sector in the Kingdom in support of national efforts that seek to enhance Saudi Arabia’s ranking in the World Bank’s Logistics Performance Index.

A key step towards bolstering digital government services, the partnership will see the nation’s trusted logistics provider manage Mawani’s postal needs through its Express Mail Service, a customized solution for the Kingdom’s government and non-government sectors that offers a reliable and low-cost distribution channel both locally and internationally.

Continue Reading

Popular

Copyright © 2017-18 | FreightComms | Made with ♥ in Singapore