Eurogate results 2012

10. April 2013

In fiscal 2012, the EUROGATE Group kept group revenue and container handling volumes stable at the previous year’s level with EUR 654 million and 13.3 million TEUs respectively. Group annual net profit decreased year-on-year in line with expectations due to startup costs related to the construction and start of operations of the EUROGATE Container Terminal Wilhelmshaven, as well as lower net investment income, and amounted to EUR 55 million. At EUR 159 million, investments doubled compared to the previous year. EUROGATE is broadly positioned to meet the current challenges of the market at the three locations Bremerhaven, Hamburg and Wilhelmshaven in Germany, as well as at eight container ports outside Germany. The group is in the unique position of being able to offer its customers a variety of container handling and intermodal transport alternatives depending on customers’ demands on their transport chains.

• Market development: weak demand and a growing number of mega container ships > 10,000 TEUs lead to overcapacities

The current market development is characterised by continued growth in container transports, albeit significantly slowed by weak consumer demand in the eurozone. The weak demand coupled with increased load space due to more vessels >10,000 TEUs have prompted global shipping lines to restructure their scheduled services. The growing number of ULCVs >10,000 TEUs has caused the number of port calls to steadily decline in recent years. These changes particularly affect the Far East – Northern Europe route. Over the long term, however, the volume of containers to be transported is once again expected to grow.

Start of operations at Germany’s only deep-water container terminal

Successful development of hinterland Connections

On 21 September 2012, EUROGATE Container Terminal Wilhelmshaven took up operations. The start went smoothly. The terminal facility is now fully operational and ready to compete for the highest productivities. Major advances have been made with respect to developing the hinterland connections. The three rail operators TFG Transfracht, EUROGATE Intermodal and ACOS Group have included Wilhelmshaven in their networks and offer transport services to/from Wilhelmshaven at competitive prices. This provides an important impetus for customers. ACOS Group has also set up a direct rail link from Wilhelmshaven via Bremen and Hamburg. This, too, sends an unequivocal signal to the market. Overall, in cooperation with these partners it is possible to offer customers any route they require.

Bremerhaven as base port for transhipment and storage of on- and offshore wind turbines

Ongoing investments in Hamburg

Bremerhaven defied the trend in 2012 and posted container handling growth of 3%. The world’s largest container vessel, the CMA CGM Marco Polo, in the meantime calls at the port on a regular basis. Bremerhaven recorded successes in the transhipment and storage of on- and offshore wind turbines. EUROGATE Container Terminal Bremerhaven will further develop its services as a base port for wind power components in the current financial year and demonstrate its capabilities in this segment. EUROGATE is also continuing to invest in its Hamburg facility. In March 2013, two new container gantries were delivered, which will allow for more efficient and productive handling of mega container ships. Planning approval for the westward expansion of the Hamburg terminal is expected to be granted in the near future. The area adjacent to the terminal is the most advantageous expansion site at the Port of Hamburg, is located directly on the River Elbe and is thus strategically situated at the harbour entrance, so that ULCVs can avoid complex manoeuvres or time-consuming navigation through channels and docks.

Positive development in Italy

Establishment of a separate traction company for rail transports

MCT Medcenter Container Terminal in Gioia Tauro and CICT Cagliari International Container Terminal recorded an increase in container handling volumes thanks to their major customers MSC Mediterranean Shipping Company and Hapag Lloyd (Gioia Tauro: +18%; Cagliari: +5%). Thus the Italian Contship Italia Group also posted a very positive result overall. One noteworthy development was the establishment of a company-owned traction company, OCEANOGATE, for seaport hinterland rail transports.

• New energy management system – certification in accordance with DIN EN 50001

In May 2013, the EUROGATE Group hopes to receive certification of its energy management system in accordance with DIN EN 50001. Since EUROGATE began systematically recording consumption values in 2008, energy consumption has been reduced by 12% and CO2 emissions by 8%. This brings the group another step closer to its goal to lower energy consumption by 20% and CO2 emissions by 25% by 2020. This success is attributable to a comprehensive set of measures. EUROGATE is setting standards and doing pioneering work in this field. One example: this year EUROGATE will be the first undertaking to build its own wind turbine in Hamburg.

Thomas Eckelmann, Chairman of the EUROGATE Group Management Board: “EUROGATE addressed the challenges posed by the difficult market environment and overall kept container handling volumes stable compared to the previous year. Due to its international presence at different locations, the Group is well positioned for the future. Given the uncertainties in the world economy, especially as a result of the European sovereign debt crisis, the outlook for 2013 is restrained. We will maintain a steady course but are “steering cautiously”, permitting us to respond flexibly and rapidly to changes. Slow progress in implementing key infrastructure projects continues to represent a risk for future business development. The still pending deepening of the Elbe and Weser navigation channels, the improvements to the Kiel Canal and construction of the coastal A20 motorway top a list of projects demanding immediate attention.”