Transportation of goods by sea or waterways. - Opposed to MSC's Investment in HHLA: Shareholders' Risks
A group of concerned shareholders is voicing their worries about the potential entrance of globally renowned shipping company MSC into the Hamburg Port Logistics Group (HHLA) at a time that they see as more significant than the influence of Chinese shipping corporation Cosco at the HHLA's Tollerort container terminal. In a public statement released on Wednesday, the association called for a halt to the intended agreement. Their main concerns include potential threats to environmental and wildlife protection, employee participation rights, and transparency. The Hamburg Port and Logistics AG (HHLA) hosts its Annual General Meeting on Thursday.
"The Swiss company MSC, which operates both a container and cruise fleet, has had a questionable reputation in the past," said Markus Dufner, the director of the association. He pointed out that many of their ships are outdated and have not always adhered to environmental protection laws. "We're not alone in our opposition to this deal," added Dufner, "The trade union Verdi and some parts of the Hamburg Senate are also against it. The impending influence of the Mediterranean Shipping Company (MSC) on the Hamburg Port poses various risks, both economically and socially."
The Senate intends to leverage MSC's involvement in HHLA to secure its container handling operations. It's planning a joint venture with the Aponte-owned company, with the city holding the majority stake of 50.1%. To date, the city held around 70% of the listed HHLA.
For its involvement, MSC aims to establish its German headquarters in Hamburg, escalate cargo handling in the port from 2025 onwards, and surpass one million standard containers (TEU) per year by 2031. The city and MSC also desire to expand HHLA's equity capital by 450 million euros. Hamburg Port, in the meantime, has seen a decrease in cargo handling in the past year, falling by 4.7% to 114.3 million tons - a value not seen since 2009.
The HHLA itself is facing financial difficulties and incurred a net loss of 1.1 million euros in the first quarter, with a slight dip in revenue. The previous quarter had reported a net profit of 2.8 million euros. The Senate's finance committee practically finalized the arrangement on Tuesday with a majority from the government coalition. Nevertheless, the left thwarted the deal with a motion for a public hearing instead. The scheduled hearing is set for June 20 at 2 p.m. The Hamburg Senate's red-green coalition is scheduled to approve the agreement in the last Parliamentary session before the summer break on July 10.
