GCT Bayonne is part of a comprehensive port complex of six container terminals, modern on-dock railroad systems, easy-to-access highways, and nearby distribution centres and warehouses.
HHLA grows with sustainable success
Container throughput increased moderately, due in particular to the successful integration of the Estonian terminal operator HHLA TK Estonia, which was acquired last year. A significant rise in container transport was achieved. In conjunction with a strong increase in revenue in the Logistics segment and a once again moderate increase in revenue from property management, this led to total revenue of € 693.7 million (+ 9.6 %). The operating result (EBIT) improved strongly by € 14.4 million, or 14.4 %, to € 114.3 million. Effects from the initial application of the IFRS 16 standard accounted for € 7.1 million of the EBIT increase.
Angela Titzrath, Chairwoman of HHLA’s Executive Board: “The results achieved in the first half of the year confirm our expectations of reaching the targets forecast for 2019. However, these results only represent one step in our strategic plan to secure the success of HHLA in the mid- and long-term future. It goes without saying that, in addition to the continued development of our core business and tapping into further business fields, sustainability and climate protection are integral elements of our business model. We are aware of our responsibility – not only for HHLA’s economic development but also towards society – and have already done a lot of work in this area.”
Port Logistics subgroup: performance January to June 2019
The listed Port Logistics subgroup saw a 9.8 % increase in revenue in the first six months to € 677.5 million, while the operating result (EBIT) rose strongly by 15.6 % to € 105.6 million. The EBIT margin improved by 0.8 percentage points to 15.6 %.
In the Container segment, container throughput increased moderately by 3.8 % in the first half of 2019 to 3,770 thousand standard containers (TEU). This was particularly influenced by the successful integration of the terminal in Tallinn, which was acquired last year. Due to the increase in volume of 3.8 % combined with an improvement in average revenue compared to 2018, revenue increased by 5.6 % to € 401.7 million. This was largely caused by an increase in the rail share. The operating result (EBIT) increased by € 3.6 million or 5.3 % year-on-year to € 71.8 million. Of this increase, € 5.2 million is attributable to the application of IFRS 16. The EBIT margin remained unchanged at 17.9 %.
In the first half of 2019, HHLA’s transport companies achieved significant growth in the Intermodal segment. With an increase of 9.6 %, container transport rose to 782 thousand standard containers (TEU). This trend was driven by growth in both rail and road transport. Compared with the previous year, rail transport increased by 9.3 % to 610 thousand TEU. In a market environment that remains difficult, road transport grew by 10.8 % to 172 thousand TEU due to the strong increase in delivery volumes. At € 244.1 million, revenue was up 17.4 % on the prior-year figure and thus performed much better than transport volume. With a roughly sustained rail share compared to the previous year, longer transport distances, in addition to price adjustments, made a particular contribution to this strong increase in revenue.
As a result of the positive trends in volume and revenue, the operating result (EBIT) increased by 31.6 % to € 50.8 million. Lower route prices in Germany led to the further increase in capacity utilisation of train systems. The application of IFRS 16 did not have a major influence on the positive EBIT trend.
Port Logistics subgroup: outlook
Due to the takeover of North America services and the first full-year consolidation of throughput volumes of the HHLA TK Estonia container terminal, HHLA expects a slight overall increase in container throughput in 2019. Slight year-on-year growth is also expected for container transport. At a Group level, this should lead to a slight increase in revenue.
The operating result (EBIT) of the Port Logistics subgroup is expected to rise significantly year-on-year in 2019, largely due to the changes in lease accounting policy (IFRS 16) as of 2019. Earnings for the subgroup will be shaped largely by the Container and Intermodal segments. Stable EBIT development on a par with the previous year is expected for the Container segment, while significant growth is expected for the Intermodal segment.
Real Estate subgroup: performance January to June 2019 and outlook
HHLA’s properties in the Speicherstadt historical warehouse district and the fish market area reported a positive trend in the first six months of 2019. Revenue again increased moderately by 3.5 % year-on-year to € 19.9 million as a result of virtually full occupancy in both districts this year as well as last year. In spite of the increased and planned maintenance work, there was slight year-on-year growth in the cumulative operating result (EBIT) of 1.3 % to € 8.5 million. The significantly stronger EBITDA increase was primarily due to the changes in accounting arising from IFRS 16.
The operating result (EBIT) for the Real Estate subgroup is expected to be around € 15 million due to large-scale maintenance work scheduled for 2019 that does not qualify for capitalisation.
Liebherr celebrates the inauguration of the new TCC 78000 heavy-duty gantry crane in Rostock
“Three, two, one… go” – On this command the Minister of Economics, Employment and Health of the state of Mecklenburg- Western Pomerania, Harry Glawe together with his colleague Mr. Christian Pegel, Minister for Energy, Infrastructure and Digitisation of Mecklenburg- Western Pomerania and Mrs. Patricia Rüf as well as Mrs. Stéfanie Wohlfarth as members of the Liebherr family pressed the blue button at the foot of the 164-meter-high heavy-duty gantry crane. A horn sounds and the TCC 78000 begins to raise a large Liebherr flag to a height of over 120 meters. The official inauguration ceremony marks the beginning of a new era in heavy load handling for Liebherr Rostock and the Port of Rostock.
“Thanks to its unique combination of lifting height and capacity, the TCC 78000 has the best technical potential available to safely and economically assemble and load the next generation of maritime cranes,” summarised Leopold Berthold, Managing Director of Liebherr-MCCtec Rostock GmbH, in his welcoming speech.
TCC is the abbreviation for Travelling Cargo Crane. The rail-mounted heavy-duty crane will move on a portal between the northern Liebherr plant site and the adjacent quay edge. With its maximum lifting capacity of 1,600 tonnes and a total height of 164 metres with the jib raised, the TCC 78000 will characterise the appearance of Rostock harbour in future. Equipped with a double bogeys (two rails per side) and a track gauge of 30 meters, the gantry crane provides optimum flexibility for handling all types of large goods.
Liebherr is not the only one benefiting from these new and important perspectives. The rail-mounted gantry crane will also offer other companies the opportunity to handle heavy loads at Rostock Port.
“With this impressive crane, the Hanseatic City of Rostock has gained another landmark, which at the same time is a symbol for the success story of Liebherr in the overseas port of Rostock. The heavy-duty gantry crane improves the opportunities for further company settlements and the acquisition of extremely heavy project cargoes. This potential must be enhanced together,” says Dr. Gernot Tesch, Managing Director of ROSTOCK PORT GmbH.
The installation of the TCC 78000 is also an investment for Liebherr-MCCtec Rostock GmbH in the new heavy-duty handling industry. The new offered service will have a positive impact on the port of Rostock and the entire region.
“This heavy-duty crane is a substantial improvement for the infrastructure in the port of Rostock. The investment demonstrates the company’s confidence in Mecklenburg- Western Pomerania as an attractive business location. Today Liebherr is a major player in the manufacturing industry and one of the most important employers in the region,” emphasised Mecklenburg-Western Pomerania’s Economics Minister Harry Glawe at today’s inauguration ceremony.
Overall, Liebherr is investing around 45 million euros in the new crane system. The TCC 78000 will have its first major operation at the end of this year. At that time it will lift the offshore crane HLC (Heavy Lift Crane) 295000 – the most powerful crane Liebherr has ever built – onto the special ship “Orion”.
Port of Long Beach receives USD4.8 Million FEMA security grant
The funding from the FEMA Port Security Grant Programme was announced just recently and will pay to upgrade cybersecurity, increase the number of cameras and sensors around the harbour, and continue the port’s investment in its fiber and wireless network infrastructure.“Securing the port requires state-of-the-art technology to monitor activities on land, on the water and below the water,” said Port of Long Beach Executive Director Mario Cordero. “This grant will help us enhance our domain awareness and maintain our readiness to protect the harbour.”“Trade at the Port of Long Beach supports 2.6 million jobs around the nation, and the Harbour Commission is thankful for this federal funding that helps us ensure the smooth flow of commerce,” said Long Beach Harbour Commission President Bonnie Lowenthal.