Market position

With its listed core business Port Logistics, HHLA competes with other companies on the European market for sea freight services. This market offers long-term growth prospects, as a number of key Central European countries have strengthened their competitiveness in recent years, thereby paving the way for a further increase in foreign trade and consumer spending. Eastern Europe also offers growth potential and stable forecasts. Whether these positive trends materialise depends in part on the resolution of regional and geopolitical conflicts and the development of raw material and energy prices.

In 2021, the coronavirus pandemic continued to impact the economy, manufacturing, trade and in particular global supply chains. This resulted in excess strain on terminal storage areas at all the world’s major ports; however, the impact on growth of this congestion was not as strong as originally feared in early 2021. The International Monetary Fund (IMF) expects the global economy to grow by 5.9 % in 2021. Economic environment

Infection rates and supply bottlenecks will continue to hamper macroeconomic activity in 2022, although their impact should gradually lessen as the year progresses. Signs of structural inflation are evident. It remains to be seen when the European Central Bank (ECB) will implement monetary policy measures so that the global effect on further developments can be better assessed. Against this backdrop, the IMF downgraded its outlook for global economic growth in 2022 to 4.4 % in January 2022 (previously: 4.9 %). Business forecast

Container throughput at the North Range ports

Handling volumes and market shares in 2021

Source: Port Authorities / market shares according to own calculation

The market for port services on the Northern European coast (the North Range) of relevance for HHLA is characterised by its high concentration of ports. Competition is particularly strong between the four major North Range ports of Hamburg, HHLA’s main hub, Bremerhaven, Rotterdam and Antwerp. Other handling sites – such as Wilhelmshaven and Zeebrugge – are considerably smaller in terms of their capacity and/or current freight volume. As a result of handling difficulties at British ports, cargo was temporarily re-routed in 2021 through Rotterdam, Zeebrugge and Wilhelmshaven, resulting in additional throughput growth at these ports.

The Baltic Sea ports are served by high feeder traffic operating via central distribution points in the North Range. Ports such as Gdansk and Gothenburg, however, are providing more intense competition due to direct calls by ocean-going vessels. Gdansk is exhibiting particularly strong growth and is therefore developing into a serious competitor in this network system. In addition to the Polish ports, the Adriatic region with ports such as Koper and Trieste has developed dynamically in recent years. With a majority shareholding in the multi-function terminal “Piattaforma Logistica Trieste” (PLT) in Trieste, HHLA is positioning itself in a growing market that offers good opportunities for development, including the opportunity to actively participate in and help shape new and changing cargo flows. The terminal has its own rail connection. HHLA rail subsidiary METRANS already connects the Port of Trieste with its European intermodal network.

As well as the geographical position and hinterland links of a port, its accessibility from the sea affects the competitive position of terminal operators. Local freight volume in the direct catchment area of each port location plays an important role. Other key competitive factors that influence the market position include the reliability and speed of ship handling, as well as the scope and quality of services. Also of increasing importance is the performance of pre- and onward-carriage rail systems serving the hinterland (e.g. frequency, punctuality, pricing) and therefore the range of integrated transport solutions.

Competition remains extremely fierce in Northern Europe and the ports are increasingly influenced by changing shipping company constellations and participations in terminals. The resulting shift towards more geographically flexible feeder traffic is having an impact on handling volumes. By contrast, the market position for handling volumes that are tied to the natural catchment area onshore is largely stable. Here, it is vital to take the shortest route for the disproportionately more expensive land-bound transportation.

Container throughput at the largest North Range ports

in million TEU

1 Incl. HHLA / Source: Port Authorities

Container throughput by shipping region

in the Port of Hamburg, 2021

Source: Hamburg Hafen Marketing e.V.

The Container segment benefits from the Port of Hamburg’s position as the most easterly North Sea port, which makes it the ideal hub for the entire Baltic region and for hinterland traffic to and from Central and Eastern Europe. Furthermore, the long-standing trading relationships between the Port of Hamburg and the Asian markets are advancing Hamburg’s role as an important European container hub.

With a container throughput of 8.7 million TEU, Hamburg is expected to rank 19th among ports worldwide in 2021 and thus continues to be the third-largest European container port after Rotterdam and Antwerp. In Hamburg, HHLA remained the largest container handling company with a throughput volume of 6.5 million TEU in 2021 and was able to expand HHLA's market share of throughput in the Port of Hamburg to 74.5 % (previous year: 74.2 %). The Far East, North America, Scandinavia and the Baltic region were the most important shipping regions.

In the Intermodal segment, HHLA primarily utilises the advantages of the Port of Hamburg’s rail infrastructure – Europe’s most important rail traffic hub handling 2.8 million TEU a year. HHLA’s intermodal network also comprises further ports along the North Sea and Baltic Sea coasts as well as the Northern Adriatic and, increasingly, continental traffic. The companies that transport containers by train compete with a variety of other rail operators and intermodal transport firms in Germany and abroad, but also with other carriers such as trucks and barges or feeder ships. As the rail infrastructure is for the most part publicly owned, various national authorities guard against discrimination in both access and usage fees. In addition to the density of the available network, key competitive factors include the frequency of departures, opportunities for freight pooling and storage in the hinterland, the geographical distance to destinations, punctuality and infrastructural capacity. The importance of these factors is growing as ports compete with one another.

HHLA operates proprietary inland terminals in Central and Eastern Europe along with its own container wagons and traction fleet (locomotives). All of these factors play a major role in the company’s service offering. This is necessary to enable it to run direct trains with frequent and highly punctual departures. HHLA occupies relevant market positions in the majority of the regions it serves in the field of intermodal transport. HHLA has a sound market position in the Hamburg Metropolitan Region in the delivery and collection of containers by truck.

Intermodal network of HHLA

Selected connections

The Logistics segment serves various market sectors, some of them heavily specialised. With its multi-function terminal, HHLA is the leading provider of specialist handling services in Hamburg. Via Hansaport, HHLA has a stake in Germany’s biggest seaport terminal for handling iron ore and coal. HHLA also provides fruit handling services for Northern Europe with its Frucht- und Kühl-Zentrum. In the field of consultancy, work is conducted on pioneering development projects around the world. Business activities for process automation, additive manufacturing and airborne logistics services complete the portfolio.

Container throughput by shipping region

in the Port of Hamburg, 2021

Source: Hamburg Hafen Marketing e.V.

With a population of approximately 1.9 million and its significance as an economic centre, Hamburg is one of the largest property markets in Germany for the Real Estate segment. What makes the portfolio particularly attractive are its unique buildings and favourable locations in Hamburg’s Speicherstadt historical warehouse district and on the northern banks of the river Elbe/fish market area. The company has built up a wealth of development and implementation expertise dedicated to finding the right balance between market-based tenant demands and the careful handling of its landmarked buildings with world heritage status. The properties compete with German and international investors marketing high-quality properties in comparable locations.