Dour outlook, but HHLA bucks the trend

Although Germany unexpectedly announced only 0.1% growth in the second quarter, Hamburger Hafen und Logistik AG (HHLA) says it’s expecting revenue and earnings for the full year to increase in the region of 15%. This is partly down to increased market share and good performance in the first half of the year which saw revenue climb by 18.6% to €596m.

Klaus-Dieter Peters said, “Performance in the first six months exceeded our expectations to date.” However, he went on to add a disclaimer to its projected growth, by adding, sensibly, “If the latest turbulence on the financial markets does not permanently curb the previous trends in the global economy”.

The growth in HHLA’s market share appears to be partly attributable to the larger sizes of vessels now coming into Burchardkai, Tollerort and Altenwerder. However, the growth hasn’t been without its difficulties as the expanding ship sizes nevertheless has led to a strain on operations, also exacerbated by a delay in the dredging of the Elbe which has restricted the time available to handle the deeper draught ships.