- Obtaining Citizership Granted for Admission to MSC at HHLA Translates to:
The Hamburg legislature has ultimately endorsed the contentious inclusion of the globe's largest shipping firm, MSC, into the Hamburg harbor logistics company, HHLA. The progressive-left coalition pushed the agreement through in the second and final voting round, despite persistent protests. In a headcount vote, 72 out of the 105 attending parliament members supported the proposition, compared to 33 who opposed it. This translates to the two-thirds majority of the SPD and the Greens within the parliament. Initially, the judgment was expected to be made during the last gathering prior to the summer recess, but it was hindered by the opposition. However, before the agreement can materialize, approval from the EU Commission is still required.
MSC is expected to acquire 49.9 percent stake in HHLA.
Hamburg's progressive-left government aims to incorporate Mediterranean Shipping Company (MSC) to bolster Hamburg Port and Logistics AG (HHLA) and container handling. The city will retain 50.1 percent evacuate, while MSC will hold 49.9 percent of the company. Till now, the city held approximately 70 percent, with the rest in public trading.
As an exchange, MSC aims to boost its goods volume at HHLA terminals by next year and almost double it to one million standard containers annually by 2031. Moreover, the Swiss shipping company intends to establish a new German headquarters in Hamburg and, in alliance with the city, increase HHLA's capital by 450 million euros.
However, labor union Verdi and harbor workers fiercely oppose the deal and have repeatedly rallied. According to Verdi, not only jobs at HHLA but also at other harbor companies such as overall harbor operations and lashing operations are at risk. Moreover, MSC would effectively gain far-reaching veto powers through the agreement. Experts have similarly cautioned against the agreement, labeling it a "historic blunder."
During the last debate prior to the decision, emotions once again escalated. Economic Senator Melanie Leonhard (SPD) acknowledged consensus on two points: it was a notable decision, and "action is required regarding the positioning of the port in the global market." The strategic partnership with the world's largest shipping company would provide HHLA with promising prospects. "We aim to shape the transformation in such a way that we don't end up with just a cultural and real estate port (...) and therefore I ask you today for your approval – with conviction – and unlike what others have said here – not under pressure," she stated before the vote.
CDU's economic expert, Goetz Wiese, labeled the partial sale of HHLA by the Senate as a sign of weakness. He commended SPD MP and budget committee chair, Mathias Petersen, who was the sole Social Democrat to vote against the agreement, along with Green MPs Filiz Demirel and Gudrun Schittek. Looking towards the upcoming years, Wiese said, "Not a single question about the future is answered." Where is HHLA headed? Where is the port headed?
The Left's harbor expert, Norbert Hackbusch, accused Mayor Peter Tschentscher (SPD) of lying to justify "this madness." "This MSC deal does not lead to cooperation. This is a sell-out of the port, where a completely opaque shipping company will have to be consulted on all decisions in the future," he stated in parliament, garnering applause from numerous harbor workers. It would be more sensibly to abide by SPD maverick Petersen's proposition and offer MSC a stake in the container terminal Burchardkai.
SPD and Greens expect MSC investments to turn the tide in the port, said AfD's Krzysztof Walczak, criticizing the Senate's opacity regarding contract details. This reveals, "that this MSC deal is a desperate act."
SPD and Greens commend beneficial agreement
SPD spokesman for public enterprises, Markus Schreiber, accused the opposition of obstructing the final decision solely for tactical reasons before the summer recess. They had not presented anything new. He emphasized, "What has been agreed upon now is a good agreement." Similarly, Green Party representative Johannes Müller stated, "It's a forward-thinking, visionary decision for the benefit of the company and its employees." The vote was met with boisterous disapproval from dockworkers in the visitor gallery, "You're putting our jobs on your conscience."
The Commission needs to give its approval for MSC's acquisition of a stake in HHLA.
If approved, the Commission's approval will mark a significant step towards strengthening Hamburg Port and Logistics AG (HHLA) through MSC's investment.
