Sub-Group Port Logistics: A Year of extraordinary Growth

The Sub-group port logistics sector experienced significant growth in 2024, marked by a importent increase in both revenue and operational results. Sales revenue climbed by 10.8%, reaching EUR 1,561.7 million, a notable increase from the previous year’s EUR 1,408.9 million. This growth underscores the resilience and adaptability of the port logistics industry in a dynamic global market.

The operating result (EBIT) saw an even more impressive surge, increasing by 26.8% to EUR 117.8 million, up from EUR 92.9 million the year before. This figure aligns with earlier projections, which anticipated a result within the EUR 110 to 130 million range. The annual surplus attributable to shareholders also rose significantly, reaching EUR 23.0 million compared to EUR 8.7 million in the previous year. Earnings per share increased to EUR 0.32, a substantial jump from EUR 0.12 the prior year.

Several factors contributed to this positive performance, including a robust increase in transport volumes for intermodal services and higher-than-usual storage revenues due to extended container dwell times. These elements combined to drive both sales and earnings growth within the sub-group.

Container Segment: Navigating Global Shifts and Military Conflicts

The Container segment demonstrated resilience, with container throughput at HHLA’s seaport terminals increasing by 0.9% to 5,970 thousand TEU (twenty-foot equivalent units), slightly up from 5,917 thousand TEU in the previous year. The Hamburg container terminals maintained a steady performance, handling 5,686 thousand TEU, consistent with the previous year’s 5,687 thousand TEU.

While transshipment volumes on routes to the Middle East declined, strong growth was observed in traffic to North and South America, particularly with the United States. Additionally, increased cargo volumes were noted with other European ports, especially in Belgium and Greece. These shifts were largely driven by temporary route adjustments resulting from the ongoing military conflict in the Red Sea, highlighting the industry’s ability to adapt to geopolitical challenges.

Feeder traffic experienced moderate growth compared to the previous year, with notable increases in container handling within Germany, Poland, latvia, and the United Kingdom. However,cargo volumes from finland and Denmark decreased. The feeder quota on the water side increased to 19.4%,up from 18.6% in the previous year.

International container terminals saw a significant surge in throughput volume, increasing by 23.1% to 284 thousand TEU,compared to 231 thousand TEU in the previous year. This growth was primarily driven by strong performance at the multifunctional terminal HHLA TK Estonia in Estonia and the resumption of water-side handling at the container terminal Odessa (CTO) in Ukraine during the third quarter of 2024. These gains effectively offset any setbacks resulting from ship diversions or failures due to military conflicts in the Red Sea, such as the withdrawal from PLT Italy in Trieste.

The extended dwell times of containers at the Hamburg terminals, which positively impacted warehouse revenues, coupled with volume growth in international container terminals, led to a significant 9.1% increase in segment sales, reaching EUR 773.3 million, up from EUR 708.8 million in the previous year. the operating result (EBIT) increased substantially by 66.6% to EUR 78.7 million, compared to EUR 47.2 million in the previous year. Consequently, the EBIT margin improved by 3.5 percentage points to 10.2%, up from 6.7% in the previous year.

Intermodal Segment: Rail Transport Drives Growth

The Intermodal segment experienced substantial growth, with container transport volumes increasing by 11.6% to 1,787 thousand TEU, up from 1,602 thousand TEU in the previous year. Rail transport played a pivotal role,growing by 13.2% to 1,545 thousand TEU, compared to 1,365 thousand TEU in the previous year. This growth was primarily driven by strong performance in the DACH region (Germany, Austria, and Switzerland), which more than compensated for challenges in Adriatic seaport traffic and the maintenance of Polish traffic. The acquisition of Roland Spedition GmbH in the second quarter further contributed to this growth.

Road transport volumes also saw a slight increase of 2.2% to 242 thousand TEU, up from 236 thousand TEU in the previous year.

Sales revenue in the intermodal segment increased by 14.6% to EUR 711.3 million,surpassing the previous year’s EUR 620.5 million. This growth outpaced the increase in transport volume, driven by price adjustments and an increased proportion of rail transport in HHLA’s total intermodal volume, rising from 85.2% to 86.5%.

The operating result (EBIT) rose by 14.8% to EUR 83.7 million, compared to EUR 72.9 million in the previous year. The EBIT margin remained stable at 11.8%,consistent with the previous year’s level. The positive EBIT development was primarily attributed to the increase in transportation volumes. However, tariff increases and business expansion in the railway sector had offsetting effects.

Looking Ahead: Challenges and opportunities in Port logistics

While the port logistics sector has demonstrated remarkable growth and resilience in 2024, it faces ongoing challenges, including geopolitical instability, supply chain disruptions, and evolving customer demands. However, these challenges also present opportunities for innovation, efficiency improvements, and strategic partnerships.

As the global economy continues to evolve, the port logistics industry must remain agile and adaptable to navigate these complexities and capitalize on emerging opportunities. By embracing new technologies, optimizing operations, and fostering collaboration, the sector can continue to drive economic growth and facilitate global trade.