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HHLA benefits from strong increase in container transport by rail

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3 years ago

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HHLA benefits from strong increase in container transport by rail. Image: HHLA
HHLA benefits from strong increase in container transport by rail. Image: HHLA
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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.

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Maritime

The Port of Valencia begins electrification of its docks

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8 months ago

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August 11, 2023

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The Port of Valencia begins electrification of its docks. Image: Port Authority of Valencia
The Port of Valencia begins electrification of its docks. Image: Port Authority of Valencia
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A new step in the decarbonisation of the Port of Valencia and its firm commitment to be an emission neutral site by 2030. The Port Authority of Valencia (APV) has put out to tender the drafting and execution of the works for the electrical connection to ships for the Transversal Costa-MSC quay. This is the first electrification or Onshore Power Supply (OPS) project to be carried out by Valenciaport in the Valencian precinct.

The APV is thus initiating the procedure for the award of the contract for the drafting and execution of the project for the installation of electrical connections for ships and the maintenance of the same at the Transversal de Costa quay. To this end, Valenciaport has jointly launched the drafting of the construction project, the execution of its works and the maintenance of the installations in the same procedure for an amount of 12,468,626.8 euros (VAT included).

Onshore Power Supply (OPS) electrification infrastructures have been consolidated as a very useful tool for the decarbonisation of ports, as this system avoids the use of auxiliary engines of ships when they are docked in the enclosures. This reduces greenhouse gas emissions – due to the use of electricity that eliminates the consumption of fossil fuels used in these auxiliary engines – and stops the emission of particles and polluting gases.

This OPS initiative in the Port of Valencia will be carried out in parallel with the works on the new electrical substation – a second substation is also planned – which was put out to tender last month with a base budget of around 11 million euros and a completion period of 24 months. This infrastructure will be responsible for supplying green energy to the first OPS electrification project of the Transversal de Costa-MSC quay.

In this regard, Joan Calabuig, president of Valenciaport, stressed that “these are just two examples of real projects in the execution phase that confirm the firm commitment that Valenciaport is making to achieve the goal of being a zero-emissions port by 2030, twenty years ahead of the European Green Pact. It is a commitment to sustainability and to the society of our environment that is supported by initiatives such as the electrification of the docks, the use of hydrogen in port operations, the installation of photovoltaic plants or the commitment to intermodality with the railway. We are committed to sustainable growth that reinforces our position as a port of reference in the Mediterranean”.

Project included in the Next Generation Funds

The joint contracting of the preparation of the project and the execution of the corresponding works in the same procedure is carried out in response to the fact that there are no references in Europe compatible with the ISO/IEC/IEEE 80005 standard and in Spain there is currently no previous experience of OPS projects in operation with the characteristics of the pilot project defined by the Port Authority of Valencia. The combination of the individual components required for this type of installation (transformers, protection cells, disconnectors, frequency converters, etc.) with infrastructures for supplying electricity to ships requires specific projects, with technically complex solutions that have to be designed specifically for each location. In addition, and given that the execution of the construction project is subsidised by the European Union’s Next Generation funds and the Spanish Government’s Recovery, Transformation and Resilience Plan, the joint tender is the only way to meet the established deadlines, since if two separate contracts were launched, the one for the execution of the construction project could not be launched until the one for the drafting of the construction project had been awarded, which would mean that the work would be completed beyond the deadline for the execution of the works to meet the target set by Europe.

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Environment

MOL joins GCMD as impact partner to accelerate decarbonisation

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8 months ago

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August 9, 2023

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MOL joins GCMD as impact partner to accelerate decarbonisation. Image: Pixabay
MOL joins GCMD as impact partner to accelerate decarbonisation. Image: Pixabay
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The Global Centre for Maritime Decarbonisation GCMD and MOL announced the signing of a five-year Impact Partnership agreement. On the same day, both parties held a signing ceremony at the GCMD office in Singapore.

Decarbonisation in the maritime industry is a challenge that needs to be achieved through accelerating collaboration and increasing investment by shipping companies, their customers, ports, energy suppliers and public sector actors. As an Impact Partner of GCMD, MOL will utilise its expertise developed over their long history and make various contributions and collaborations through its participation in GCMD’s projects, including providing access to vessels, operating data and evaluation reports so that internal learnings can be shared publicly and used for future trials.

MOL is one of the world’s leaders in the maritime industry and has been leading worldwide discussions on achieving decarbonisation. The carbon budget concept imposes a ceiling to the cumulative amount of greenhouse gas (GHG) that can be emitted globally in order to limit global temperature rise to 1.5 degree Celsius by 2050. Intermediate targets to reduce emissions, in addition to a net-zero target, are necessary. While plans are in place to adopt low or zero emissions vessels in the future, it is important to deploy measures to reduce emissions now. Such measures include the use of low-carbon and transition fuels that are available today, and deploying energy savings devices onboard vessels. MOL will bring its extensive capabilities and experience to bear as it joins GCMD and existing partners to accelerate international shipping’s decarbonisation.

Professor Lynn Loo, CEO of the Global Centre for Maritime Decarbonisation, said: “We are proud to have MOL, one of the leading shipowners in Japan, come onboard as an Impact Partner. We are excited to tap on MOL’s track record in developing technical energy efficiency measures to broaden our perspective as we scope an initiative to help increase industry adoption of measures that can increase fuel efficiency of ships.”

Toshiaki Tanaka, Representative Director, Executive Vice President Executive Officer, and Chief Operating Officer of MOL, said: “We are very pleased to be a partner of one of the most important global coalitions. We will make our biggest effort to contribute and accelerate progress towards the net zero future in maritime industry, together with GCMD and all its partners.”

About the Global Centre for Maritime Decarbonisation

The Global Centre for Maritime Decarbonisation (GCMD) was set up on 1 August 2021 as a non-profit organisation. Our strategic partners include the Maritime and Port Authority of Singapore (MPA), BHP, BW Group, Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express, Seatrium, bp, Hapag-Lloyd and NYK. Beyond the strategic partners, GCMD has brought on board 15 partners that engage at the centre level, in addition to more than 80 partners that engage at the project level.

Strategically located in Singapore, the world’s largest bunkering hub and second largest container port, GCMD aims to help the industry eliminate GHG emissions by shaping standards for future fuels, piloting low-carbon solutions in an end-to-end manner under real-world operations conditions, financing first-of-a-kind projects, and fostering collaboration across sectors.

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Container Shipping Lines

Wan Hai Lines establishes its new office in India

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8 months ago

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August 9, 2023

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Wan Hai Lines establishes its new office in India. Image: Unsplash
Wan Hai Lines establishes its new office in India. Image: Unsplash
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Aiming to further enhance service quality and gain a stronger foothold in the Indian sub-continent, Wan Hai Lines has established its India new office in Kolkata in July 2023. Contact details for the new office are as follows: WAN HAI LINES (INDIA) PVT. LTD 3rd Floor, Block C, Apeejay House, 15 Park Street, Kolkata, West Bengal, 700016 TEL: 91-33-4450 4500 According to the 2023 Foreign Trade Policy announced by the Indian Ministry of Commerce and Industry, India’s export trade volume will reach 2 trillion US dollars in 2030.

Therefore, benefiting from government policy incentives and the shifting trend of the global supply chain, India’s status in global manufacturing and international trade is increasing, which is conducive to maintaining long-term high economic growth. And the proportion of global exports has increased significantly. In addition, the continuous economic stimulus policy will help revitalize the domestic economy, and domestic demand is expected to increase significantly. Therefore, Wan Hai is optimistic about India’s future import and export situation. And also through the establishment of a new office to improve the overall operating efficiency.

Wan Hai India Kolkata office held a grand opening reception in the evening of 27th July. During the banquet, there were many important customers & guests. The Kolkata Port Authority, Kolkata terminal operators, feeder operators and important local customers were invited to send representatives to attend the meeting to express their blessings to Wan Hai’s opening of the Kolkata market. At present, Wan Hai has six owned offices in India, namely Mumbai, Chennai, Mundra, and Vizag, Delhi and the sixth office Kolkata office. In addition to directly providing river port services, it will also simultaneously strengthen service links between India and neighboring countries, such as Nepal and Bhutan. It is expected to pursue customer first through continuous expansion in the future and sustainable business philosophy.

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