HHLA comments on effects of Russian invasion of Ukraine
(Posted on 08/03/22)
In view of the ongoing actions of war in Ukraine, Hamburger Hafen und Logistik AG (HHLA) have commented on the current and potential impact on its affected business activities. HHLA has been active Ukraine since 2001.
Angela Titzrath, Chairwoman of HHLA’s Executive Board, clarifies: “The temporary closure of the terminal in the Port of Odessa has not impaired HHLA’s successful business activities significantly. According to current estimates, the sanctions imposed by the EU will also also have only a minor impact on the company’s economic development. HHLA is on a solid financial basis. Even under the challenging conditions of the Corona pandemic, HHLA achieved positive business results. We are also operationally stable enough to meet our customers’ requirements both at our terminals in Hamburg, Tallinn and Trieste and by rail. Logistics always means managing volatility. We rise to this challenge. This is because we are aware of our responsibility as a service provider for the industrial nation of Germany. Companies and consumers can rely on us to continue to supply them reliably with goods and commodities.”
On the instructions of the Ukrainian authorities, the terminal was closed with the start of the Russian invasion of Ukraine on 24 February 2022. The approx. 480 employees on site were sent home. Their safety is HHLA’s top priority. Whether and when Container Terminal Odessa (CTO) will be able to resume operations cannot be predicted at present due to the ongoing hostilities.
The CTO share of container throughput, revenue and earnings of the Port Logistics subgroup was in the low to mid-single-digit percentage range in the 2020 financial year. A significant part of the investments made to date, amounting to € 170 million, had already been amortised by the end of the 2020 financial year.
HHLA has also secured the CTO against political risks by taking out federal guarantees for direct investments abroad. These cover a significant portion of the CTO’s current assets in the event of war or expropriation and in the event of a breach of legally binding commitments by government or government-controlled entities.
In the 2020 financial year, the CTO's balance sheet equity amounted to € 44 million. A significant portion of this would be covered in the event of a possible call on the federal guarantees. According to the current risk assessment, HHLA assumes that no significant financial burdens will arise for the company.
In addition, measures to implement the sanctions imposed by the European Union (EU) against Russia also took effect at HHLA's container terminals in Hamburg on 1 March 2022. Since 1 March 2022, no containers coming from or destined for Russia will be handled here. This also applies to cargo transported by rail, barge or truck. HHLA is thus following the example of terminal operators in other European ports and responding to the consequences of implementing the sanctions decided at European level in global supply chains. The situation remains dynamic and will be adjusted accordingly as the market situation changes.
Latest News
Hamburg and Estonia deepen strategic port cooperation
(Posted on 29/05/26)Hamburg’s Senator for Economic Affairs, Dr Melanie Leonhard, has welcomed Estonia’s Minister... Read more
Associated British Ports appoints new Group Head of Property
(Posted on 29/05/26)Associated British Ports (ABP), the UK’s largest port operator and one of the UK’s biggest... Read more
Associated British Ports appoints new Group Head of Property
(Posted on 29/05/26)Associated British Ports (ABP), the UK’s largest port operator and one of the UK’s biggest... Read more
King and Minister open Rotterdam section of Netherlands hydrogen network
(Posted on 25/05/26)King Willem-Alexander of the Netherlands has symbolically activated the first section of the national... Read more
Collaboration to explore alternative export hub on UAE East Coast
(Posted on 22/05/26)Abu Dhabi based AD Ports Group, a leading global enabler of integrated trade, industry and logistics... Read more
Hamilton welcomes new $135-million Sucro Can sugar refinery
(Posted on 14/05/26)Sucro Can Canada and HOPA Ports marked the official opening of Sucro Can’s new sugar refinery,... Read more
New Liebherr MHC enhances Belfast Harbour’s bulk handling capabilities
(Posted on 13/05/26)Belfast Harbour has made its latest investment in the development of the port with the arrival of a... Read more
Riga and AD Ports MoU marks new phase of cooperation
(Posted on 11/05/26)A Memorandum of Understanding has been signed in Riga between Abu Dhabi-based, publicly traded global... Read more
International conference “all about ports” launches in Hamburg
(Posted on 11/05/26)As an international conference accompanied by an exhibition, all about ports will address key future... Read more
ADMA satellite agreement to enhance efficient routing of minerals and agri products
(Posted on 04/05/26)Abu Dhabi Maritime Academy (ADMA), the Middle East region’s leading academic institution for maritime... Read more
