Market position

With its listed core business Port Logistics, HHLA competes with other companies on the European market for sea freight services. By establishing new locations for handling activities both in the Mediterranean and Baltic regions, as well as continuously optimising  and expanding its Intermodal network, HHLA has been able to leverage the growth potential of its respective markets over recent years. Major Central and Eastern European countries have strengthened their competitive edge over the past few years, laying the foundations for economic growth. During the 2022 financial year, growth was largely shaped by geopolitical conflicts, particularly the war in Ukraine, and the trends in raw material and energy prices. Economic environment

Container segment

Factors affecting competition

The competitive position of a terminal operator is determined by geographical location and the hinterland links of a port as well as its accessibility from the sea. 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 between the port and its hinterland (in terms of frequency, punctuality and pricing) and therefore the range of integrated transport solutions.

Competition remains extremely fierce in Northern Europe and ports are increasingly influenced by changing shipping company constellations, alliances and participations in terminals. A distinction must be made here between overseas traffic (i.e. ocean transport from distant regions, such as Asia or North America, to Northern Europe) and feeder traffic, which redistributes cargo from the major North Range seaports to the Baltic, for example. The shift resulting from new shipping company constellations, alliances and participations in terminals towards more geographically flexible feeder traffic is having an impact on handling volumes. By contrast, handling volumes of overseas traffic that are tied to the port's natural catchment area are relocated less frequently. Competition in the more remote hinterland served by rail transport, for example, is becoming increasingly fierce.

Competitive environment

The market for port services of significance to HHLA on the Northern European coast (the North Range) is characterised by its high concentration of ports. Competition is particularly strong between the four largest North Range ports of Rotterdam, Antwerp-Bruges, Hamburg (HHLA’s main hub) and the Bremen ports. As of 2022, the ports of Antwerp and Zeebrügge operate together as the Port of Antwerp-Bruges, making it the second largest container port in Europe. Wilhelmshaven also underwent a change in the 2022 financial year. Hapag-Lloyd acquired a 30 % stake in the JadeWeserPort in Wilhelmshaven from APM Terminals.

Container throughput at the North Range ports

Handling volumes and market shares 1–9 | 2022

As the most easterly North Sea port, the Port of Hamburg’s position 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 container throughput of 8.3 million TEU, Hamburg is expected to rank 19th among ports worldwide in 2022, cementing its status as the third-largest European container port after Rotterdam and Antwerp-Bruges. In the Port of Hamburg, HHLA is a direct competitor of Eurogate, particularly with regard to overseas services: HHLA operates three container terminals in Hamburg, while Eurogate operates one. With a throughput volume of 6.2 million TEU in the 2022 financial year, HHLA remained the largest container handling company in the Port of Hamburg and was able to expand its market share there to 75.2 % (previous year: 74.5 %). The major shipping regions were Asia, North America, Scandinavia and the Baltic region.

Container throughput at the North Range ports

in million TEU

Container throughput by shipping region

in the Port of Hamburg in 2022

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 also used by ocean-going vessels. Despite a temporary dip in 2022, Gdansk in particular has shown strong growth and become a serious competitor within the network system. The expansion of the port is also continuing.

With HHLA TK Estonia, HHLA has been operating one of Estonia's most important multi-function terminals near Tallinn since 2018. Due to the wide range of services, including container handling and the processing of RoRo traffic, as well as general cargo and bulk cargo, the terminal is very well positioned. To provide a further boost to container handling, two larger container gantry cranes were transported from their prior location at Container Terminal Burchardkai (CTB) to the Port of Muuga in 2022, where they went into operation. HHLA TK Estonia is also actively involved in the “Amber Train” project that aims to significantly strengthen intermodal transport and create a new rail corridor between Northern and Western Europe via the Baltic states.

The Adriatic region with ports such as Koper and Trieste has also developed dynamically in recent years. Having acquired a majority shareholding in the multi-function terminal “Piattaforma Logistica Trieste” (PLT) in Trieste in 2021, HHLA has positioned 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. In the past year, two container services were gained which brought regular volumes to Trieste.

The Container Terminal Odessa (CTO) on the Black Sea is of strategic importance as the biggest container terminal in Ukraine. It has been operated by the HHLA Group since 2001 and previously handled bulk cargo, general cargo and project cargo in addition to containers. With the outbreak of the war in Ukraine in February 2022, seaborne handling at the CTO came to a standstill. All that was possible was the partial loading of grain ships to comply with international agreements. In addition, alternative intermodal logistics routes were established in the hinterland. Given the current geopolitical situation and the restricted business operations, it remains difficult to assess the market environment.

Intermodal segment

Competitive factors 

In addition to the density of the available network, key competitive factors for intermodal transport – which is becoming increasingly significant in terms of the competition between ports – include the frequency of departures, opportunities for freight pooling and storage in the hinterland, the geographical distance to destinations, punctuality and infrastructural capacity.

Competitive environment

With regard to container transport by train, the state railway companies compete with a variety of private rail operators and intermodal transport firms, as well as with other carriers such as trucks and barges or feeder ships. As rail infrastructure is mainly publicly owned, various national authorities guard against discrimination in terms of both access and usage fees.

Intermodal network of HHLA

Selected connections

HHLA operates proprietary inland terminals in Central and Eastern Europe along with its own container wagons and traction fleet (locomotives), all of which are central to the company’s service offering. This is necessary to enable HHLA 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.

Logistics segment

The Logistics segment serves various market sectors, some of which are highly specialised. With its multi-function terminal Unikai, 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 through its Frucht- und Kühl-Zentrum. The portfolio also includes consulting and management services for clients in the international port and transport industry. New business activities in process automation, airborne logistics services and digital services, particularly for the intermodal segment, complete the portfolio.

Real Estate segment

With a population of approximately 1.9 million and its importance as a major economic centre, Hamburg is one of the largest property markets in Germany for the non-listed Real Estate segment. What makes its 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 careful handling of its landmarked buildings with world heritage status. These properties compete with German and international investors marketing high-quality properties in comparable locations.