Voters decide on incorporation of MSC into HHLA's port operations.
With a majority of two-thirds, SPD and Greens in Hamburg allow MSC, the world's largest shipping firm, to enter HHLA as a port operator. They aim for cargo handling stability. Labor unions strongly condemn the arrangement, calling it a "major blunder".
The Hamburg Parliament has endorsed the contentious partnership between the world's biggest shipping company, MSC, and local port logistics corporation, HHLA. The SPD and Greens coalition bypassed intense opposition in the final approval vote, with 72 proponents against 33 opponents. This reflects the coalition's two-thirds majority in the parliament.
Initially, the decision was set for the pre-summer break session, but it was stalled by opponents. However, prior to implementation, the EU Commission still needs to approve the agreement.
Hamburg's social democratic and green government intends to lure MSC to boost the Hamburg Port and Logistics AG (HHLA) and container handling, ultimately acquiring a 50.1% stake and giving MSC the remaining 49.9%. The city previously owned around 70%, with the rest distributed to various stakeholders.
In exchange, MSC proposes to grow the cargo volume at HHLA terminals to one million TEUs (twenty-foot equivalent units) annually by 2031 – nearly doubling current figures. Furthermore, MSC also plans to establish a new German headquarters in Hamburg and invest 450 million euros in HHLA's equity capital with the city's assistance.
However, the labor union Verdi and port staff vehemently oppose the deal, often protesting on the streets. According to Verdi, jobs at HHLA and other associated port businesses, ranging from overall port operations to lashing operations, may be at risk. Moreover, MSC would effectively acquire extensive veto powers through the agreement. Additionally, experts had cautioned against the deal in expert sessions, labeling it a "historic blunder".
The partnership between MSC and HHLA, if approved by the EU Commission, could significantly boost the economy of Hamburg by increasing the cargo volume handled at HHLA terminals. However, the labor unions are concerned that the agreement could potentially lead to job losses in various port-related sectors.
