Foreword
Dear shareholders,
Global economic development continued to be shaped by crises and risk factors during the first nine months of 2024. Persistent economic weakness, military conflict in the Middle East and the war in Ukraine continue to adversely impact global trade. Upcoming events, such as the US election, are also affecting the flow of goods. The significant rise in cargo flows to and from North America, for example, is an indication that US companies are stocking up in anticipation of potential punitive tariffs after the election.
Despite these global challenges, HHLA once again demonstrated its resilience and closed the third quarter on a positive note. The strong increase in transport volumes was particularly impressive. Although rail traffic in Germany was adversely impacted by severe weather and construction work, the Intermodal subsidiaries Metrans and Roland Spedition achieved positive growth in rail transport across Europe. There was also an increase in container throughput at HHLA’s container terminals. Revenue and earnings performed very well on the whole, due in no small part to the temporary increase in container dwell times at the Hamburg terminals, as well as the successful expansion of the European rail network.
In order to further strengthen our resilience as a network logistics service provider in Europe, we are continually working to develop our business fields and expertise. By constantly expanding our European network, we can offer our customers integrated solutions along the entire logistics chain. The acquisition of a majority stake in Roland Spedition this year is already playing a decisive role in efforts to enhance our service portfolio.
HHLA is committed to making the logistics industry more sustainable. This also involves the use of cutting-edge technologies at our terminals. In the third quarter, for example, our Container Terminal Burchardkai (CTB) in Hamburg reached a further milestone with the launch of its first in-depth field tests for automated guided vehicles (AGV). By the end of 2025, 116 AGVs will be in operation at CTB to handle container transport. Construction work on the new workshop is also making good progress. The extensive retrofitting of CTB during day-to-day operations is regarded as one of the industry’s largest brownfield projects and represents a huge challenge. Thanks to our team’s many years of expertise in this field, we are confident that we can make handling processes at CTB significantly more productive and climate-friendly in future. And at our Container Terminal Tollerort in Hamburg, we are currently testing the first prototype of a hydrogen-powered tractor unit as part of our Clean Port & Logistics cluster.
We are also committed to using climate-friendly handling methods at our international terminals. In the port of Trieste in Italy, for example, we are working on expanding the terminal and the environmentally friendly redevelopment of a former steelworks site. Moreover, we are pressing ahead with the expansion of the terminal’s rail connections – thus enabling more goods to be transferred from road to rail.
HHLA offers its customers integrated solutions along the entire logistics chain, leveraging the strength of its European networks.
The third quarter also saw further developments with regard to the planned investment in HHLA of the shipping company MSC. In September, the Hamburg Parliament gave its final approval and in early October, the EU Commission granted clearance from a merger control perspective. At the time of preparing this report, Ukraine’s merger control clearance is still pending.
During the course of the year, HHLA came to an agreement with the City of Hamburg and MSC regarding the main points for the further development of HHLA, which were set out in a Business Combination Agreement. This has enabled HHLA and its stakeholders to reach important agreements, such as commitments to continue the company's successful strategy, to maintain the neutrality of HHLA's business model and to safeguard employee rights. At HHLA, we are all set and ready to seize the opportunities offered by the MSC investment.
Notwithstanding these developments and changes in the industry, HHLA remains committed to its goal of becoming one of Europe's leading providers of sustainable, digitalised and networked logistics solutions. As a European group of companies, we are preparing ourselves for the challenges of future freight traffic and will continue to focus on intelligent solutions and the strength of our networks.
Yours,
Angela Titzrath
Chief Executive Officer