Hamburg Port Operator HHLA Posts Strong Earnings Growth Despite Economic Headwinds
Hamburg, Germany – Despite the challenging economic climate, Hamburg Port operator HHLA (Hamburger Hafen und Logistik AG) reported a significant increase in earnings for the past year.
Financial Performance
According to preliminary figures, HHLA’s operating profit before interest and taxes (EBIT) surged by nearly 23% to €134 million in 2023. Net profit also rose to €33 million, up from €20 million in 2022. Group revenue climbed by approximately €150 million to almost €1.6 billion.
Container Handling
Group-wide container throughput at HHLA’s seaport terminals grew by 0.9% to 5.97 million twenty-foot equivalent units (TEU). Besides Hamburg, HHLA operates terminals in Trieste, Italy; Muuga, Estonia; and Odessa, Ukraine. However, the volume handled at these terminals is relatively small compared to Hamburg.
In Hamburg alone, HHLA’s three terminals, Altenwerder, Burchardkai, and Tollerort, handled 5.686 million TEU, a slight decrease of around 1,000 TEU compared to the previous year.
Strong Growth in Intermodal Segment
In contrast to the decline in container handling, the Intermodal segment, which involves container transport by rail and truck, performed exceptionally well. HHLA reported an 11.6% increase in Intermodal traffic to almost 1.79 million TEU.
Positive Impact of Storage Fees
Higher storage fees had a positive effect on earnings. This was due to containers staying longer at Hamburg’s terminals.
Increased Umsatz in Hafenlogistik
In the Hafenlogistik subgroup, revenue increased by 10.8% to €1.56 billion. Operating profit jumped by 26.8% to €118 million, and net profit rose from €9 million to €23 million.
Strategic Development Drives Growth
HHLA CEO Angela Titzrath attributed the positive results to strategic advancements. "The targeted expansion of our European network contributed significantly to the growth in revenue and earnings," she said.
MSC Partnership
Since the end of November 2023, Swiss shipping giant MSC has become a major shareholder in HHLA. Despite protests from employees, unions, and some experts, the City of Hamburg transferred all of its A shares in HHLA to the joint venture Port of Hamburg Betreibergesellschaft SE as part of a capital increase.
Under the new arrangement, the city and MSC jointly manage HHLA, with the city holding a 50.1% stake and MSC a 49.9% stake. Previously, the city owned about 70% of HHLA, with the remaining shares held by public investors.
Outlook
HHLA remains optimistic about the future despite the uncertain economic landscape. The company plans to continue investing in infrastructure and digitalization to maintain its competitive edge and drive further growth.
