- The Role of Citizenship Determines MSC's Access to HHLA
The Hamburg Parliament will finalize its stand on Wednesday (starting 1:30 PM) regarding the contentious involvement of the globe's largest shipping firm, MSC, in the port logistics provider, HHLA. The left-green alliance is predicted to push through this agreement in the second and conclusive vote with their two-thirds majority. The decision was initially scheduled for the last session before the summer recess, but it was obstructed by the opposition.
Hamburg's left-green administration aims to incorporate the Mediterranean Shipping Company (MSC) into strengthen the Hamburg Port and Logistics AG (HHLA) and container handling. The city will hold 50.1% and MSC will hold 49.9% of the company. Previously, the city owned approximately 70%, with the remainder in free float.
As part of the deal, MSC plans to boost its cargo volume at HHLA terminals from the upcoming year and nearly double it to one million standard containers per year by 2031. The Swiss shipping corporation also intends to establish a new German headquarters in Hamburg and, in collaboration with the city, increase HHLA's equity capital by 450 million euros.
The trade union Verdi, dockworkers, and numerous experts strongly oppose this agreement. From their perspective, not only are jobs at HHLA under threat, but also at other port companies such as overall port operations and lashing operations. Additionally, MSC would essentially gain extensive veto powers through this deal.
The Hamburg Parliament's decision on MSC's involvement in HHLA could significantly impact the shipping sector, as the agreement includes plans to increase MSC's cargo volume through shipping. The shipping of goods may require increased shipping services, resulting in changes in shipping schedules or routes.
