shipping - Controversial harbor deal: MSC-CEO Toft will smooth over waves
The Hamburg Senate's Bürgerschaft approved the controversial entry of shipping company MSC into HHLA, Hamburg's harbor logistics company, in the first reading on Wednesday. The final decision on the at least 40-year contract between the city and MSC will not be made until the first session after the summer break on September 4, as the CDU, Linke, and AfD refused a second and final reading in the same sitting.
Hamburg and MSC aim to jointly manage HHLA
Hamburg's red-green senate wants to bring Mediterranean Shipping Company (MSC) on board to stabilize the Hamburg Port and Logistics AG (HHLA) and container handling. The city will own 50.1%, and MSC 49.9% of the company. Previously, the city owned around 70%, with the rest in scattered ownership.
In return, MSC plans to increase its cargo volume at HHLA terminals from the coming year and raise it to one million standard containers per year by 2031. "That's roughly a doubling of the current volume," said Toft to the newspaper. At the same time, he promised that no additional containers from Bremerhaven would be diverted, where MSC has a partnership with Eurogate. "The additional volumes we want to bring to Hamburg will either come from the growth of cargo handling or from European ports outside Germany."
Toft: Growth and protection of employees are key elements
Concerns about a reduction of co-determination and employee rights of harbor workers, works councils, and the union Verdi were dismissed by Toft. "Growth and the protection of employees are two core elements of this agreement. For us as a family business, employees play a central role," said Toft. This is also evident in that MSC, as a group, has never massively laid off personnel in difficult times.
Besides increasing cargo volume, MSC also plans to build a new German headquarters in Hamburg and, together with the city, increase HHLA's equity capital by 450 million euros. "We want to invest together in the largest Hamburg container terminal, Burchardkai (...)." MSC operates over 100 terminal facilities worldwide. "We have a lot of experience in matters of growth, modernization, and productivity increases. We want to share this with HHLA."
The central goal is to create growth for HHLA and the port. "HHLA, as a provider for all shipping companies, including Hapag-Lloyd, must remain competitive and attractive as a supplier," said Toft to the newspaper. This also applies to the railway subsidiary Metrans, which will remain an independent company.
- The CDU, being a prominent political party in Germany, has voiced its stance on the issue, expressing its reservations along with the AfD and Linke.
- The citizens' assembly in Hamburg, known as the Bürgerschaft, will have a significant role in the final decision-making process of MSC's entry into HHLA.
- The shipping company MSC, in its partnership with HHLA, aims to contribute to the shipping sector's growth in Hamburg, particularly by increasing its cargo volume.
- The City of Hamburg and HHLA, with its prominent container handling facilities, are looking to Woge and WamS (Waterways and Shipping Senate Committee) for guidance and support in navigating the challenges and opportunities of this partnership.
- The growth and protection of employees are vital aspects of MSC's agreement with HHLA, as the company, known for its family-oriented approach, values its workforce.
- The Household sector in Hamburg may benefit from this partnership between HHLA and MSC, as the anticipated increase in cargo volume could potentially lead to improved logistics and supply chain efficiency in the region.
