EUROGATE’s crisis targets achieved

- Despite difficult market conditions, the EUROGATE Group achieved its targets for 2009. Although recording a decline in revenue of17.3% to €591.4m, net profit for the year amounted to €47.8m, 59% lower than in the previous year.

In response to the economic crisis EUROGATE cut investments by 59.5% to €96.7m. Additionally, it implemented a cost-savings programme amounting to €76.6m. As a result of these measures, EUROGATE was able to secure jobs in 2009 with job guarantees extended to 2010. With a high equity ratio of 41% (compared with 38.6% the previous year), the Group is well-positioned to weather the challenges of the coming years: although a gradual recovery is anticipated, revenue and earnings for 2010 are likely to remain stable.

Thomas Eckelmann, EUROGATE Group chairman said, “Container handling volumes across the Group fell Europe-wide by 12.3%. Despite this decline, we achieved a stable and respectable result compared to the market as a whole (while) succeeding in guaranteeing jobs and generating a positive operating result.

“Nevertheless, the economic crisis has set us back in our development by five years. We have had to postpone investments, but are forging ahead with our major projects such as the westward expansion of the Hamburg terminal. As things stand, this will ultimately be available in 2017/2019. We are also standing by our commitment to the terminal project in Wilhelmshaven, and will do everything in our power to ensure its success.”

Although it will be some time before container handling volumes at the ports reach the record highs of 2008, EUROGATE believes it is strategically well-positioned in the market and it is looking optimistically to the future, despite the challenging conditions ahead. The deepening of the shipping channel in the Outer Weser and Elbe rivers as well as the modernisation of the Kiel Canal are decisive infrastructure projects for the next few years to secure Germany’s competitiveness against the Benelux ports.

According to the company, politicians must ensure that Germany’s competitive disadvantages are removed and that comparable framework conditions are established for all seaports in northern Europe. This also applies in similar measure to the transhipment ports in southern Europe.

(Source: Container Management)