16.06.2023 | Press release

HGK Group achieves new record result

Cologne. Häfen und Güterverkehr Köln AG (HGK) was able to enter a new record result in the 2022 fiscal year: Despite difficult market conditions, it succeeded in increasing earnings to €11.9 million. In the previous year the surplus of the integrated logistics group from the Stadtwerke Köln Group contributed €10.5 million.

“In 2022 the entire logistics industry was confronted with particular challenges. The Russian war of aggression on Ukraine led to high energy prices, significantly increased inflation and damaged supply chains. In addition, the coronavirus pandemic continued to have an impact on business activities. Even against this background, we are very pleased to have been able to still exceed the good result we achieved in the previous year. All of our business divisions and in particular our subsidiaries have contributed to this,” summarises Uwe Wedig, Chairman of HGK Executive Board.

The turnover of the parent company HGK AG with its operational business divisions Rail Network, Rail Vehicle Maintenance and Real Estate totalled €77.7 million in 2022, after €74.7 in the previous year.

Ukraine crisis impacting the business segments differently

The transport and handling activities of HGK Group totalled 91,071,751 tonnes overall. The business segments of the subsidiaries and affiliates of the HGK Group were affected by the Ukraine crisis in different ways. Despite the dramatic impact on global supply chains, the transport volumes of HGK Shipping declined only moderately. “Since its acquisition in 2020 the profit contribution of HGK Shipping has progressed superbly and exceeded all expectations,” says Uwe Wedig.
Meanwhile, neska Schiffahrts- und Speditionskontor GmbH, from the business divisions HGK Logistics and Intermodal, succeeded in significantly boosting conventional handling over the previous year. A slight decline was recorded in the container business due to the problems already described. Overall, neska achieved the best result in financial year 2022 since it became part of the HGK Group.

The HGK subsidiary RheinCargo, operator of Germany's largest inland port network and one of the largest German rail freight companies, recorded a slight decline in total freight volumes from rail transport, port logistics and landside handling compared to the previous year. Like other companies, RheinCargo’s railway division suffered significantly from the crumbling rail infrastructure of DB Netz AG. This led to major restrictions in transport, causing the profit contribution of RC to remain below expectations.

Focus on digitalisation, innovations and sustainability

For the HGK Group, the continuing development of its subsidiary and associate companies is of major importance. “All our companies are focused on the areas of digitalisation, sustainability and innovation,” states Uwe Wedig. HGK Shipping has therefore set benchmarks by commissioning inland barges optimised for low water levels that are also compatible with future types of propulsion (‘future fuel ready’). This innovative fleet programme is still being expanded. With these future-ready models, the requirements of industrial customers for sustainable supply chains is taken into consideration by improving their CO2 footprints and those of their customers.

“All our companies are focused on the areas of digitalisation, sustainability and innovation.”

Uwe Wedig, Chairman of the Board, HGK AG

In 2022, the HGK Logistics and Intermodal division continued to push forward with its transformation into an integrated logistics provider. An example of this is the new hazardous substances warehouse at Ladenburg near Mannheim, which was built according to the latest standards and the highest sustainability requirements. This complex, designed for major customers in the chemical and medical industries is fully utilised and regarded as best practice for future projects.

In 2022 HGK AG also developed new business models With the FUSION COLOGNE real estate project, a unique quarter will be developed on an industrial space of up to 55 ha in the north of Cologne. Here, production, logistics, research start-ups are brought together. In this concept from HGK, innovation and sustainability are also at the foreground of all considerations. The city of Cologne has declared FUSION COLOGNE one of five key urban development projects.
Another initiative launched by the HGK Group to promote future growth and innovation is the start-up platform "Innovation Harbour Cologne" (IHC).

Together with new companies, we are working to develop logistics-related products and services in order to realise new business models. Innovation Harbour Cologne also focusses on the ideas of its employees and encourages their talents.

Against the background of decarbonisation, the HGK Group is pursuing the goal of significant reduction in its CO2 emissions. Tangible successes have already been achieved here. For example, photovoltaic systems have been put into operation at various sites. The new barges of HGK Shipping already emit 30% less CO2 than conventional models. The first electric truck has been ordered by neska. All electric locomotives of RheinCargo are operated with 100% green electricity. In the past financial year, HGK thus laid the foundation for achieving the City of Cologne's goal of climate neutrality by 2035.

In the current year the group of companies will reach a further milestone. “We will shortly be moving into our new headquarters in the port of Niehl. There, various divisions of the HGK Group will work together under one roof for the first time. We are certain that this will create many synergies and we will be able to implement new ideas even faster,” states Uwe Wedig.