03.07.2024 | Press release

HGK Group increases earnings for the fifth year in a row

Cologne. Häfen und Güterverkehr Köln AG (HGK) remains on course for success: despite difficult market conditions in the transport and logistics sector, the group of companies recorded a jump in earnings to 13.3 million euros for the fifth year in a row last year.

"In a persistently difficult environment that continued to be characterised by negative influences such as the war in Ukraine, high inflation, a shortage of skilled workers and structural and economic problems in key German industries, we were able to increase our earnings. Thanks to our flexible and integrated logistics services, we have maintained and further expanded our position in the market," summarises CEO Uwe Wedig. The HGK CEO continues: "It is pleasing that all subsidiaries and associated companies achieved their targets and in some cases significantly exceeded them. This also applies to the operational HGK divisions Technology, Grid and Real Estate."

FUSION COLOGNE GmbH, the development and management company developing a modern industrial and logistics quarter in the Cologne North Industrial Park, has also started marketing the first plots. FUSION was declared one of five key urban development projects by the City of Cologne. The first leasehold contract was concluded with an investor in December 2023.

Positive figures despite a difficult economy

The HGK Group's total revenue in 2023 will amount to around EUR 700 million, while HGK AG's revenue will total EUR 80.1 million. The development in turnover and earnings is all the more remarkable given the slight decline in transport and handling services in 2023. This reflects the generally difficult economic situation and the resulting impact on the HGK Group's customers. However, thanks to successful adjustments and restructuring measures, the HGK companies were able to defy these trends and prove their resilience in economically challenging times.

The HGK Group transported and handled a total of 87.3 million tonnes of goods in 2023 (previous year: 91.1 million tonnes). The key figures of the individual subsidiaries and affiliated companies vary. "Despite the difficult market conditions, HGK Shipping has once again succeeded in making an excellent contribution to earnings," says Uwe Wedig, "this shows once again that the acquisition of Europe's largest inland shipping company in 2020 was not only the right move from a strategic perspective, but also in terms of sustainable earnings development."

HGK Logistics and Intermodal GmbH (HGK L&I, formerly neska GmbH) also suffered a decline in transport and handling services due to the economic situation. The decline in traffic movements in the past year had a particular impact on container handling. Despite these difficult conditions, the very good result from the previous year was confirmed. "I am very pleased that the transformation measures at HGK Logistics and Intermodal are visibly taking effect and ensuring consistently high earnings contributions," explains Uwe Wedig.

HGK's subsidiary RheinCargo GmbH & Co. KG (RC), a joint venture with Neuss Düsseldorfer Häfen GmbH, was Germany's largest inland port network and achieved total port throughput of 18.51 million tonnes in 2023 (previous year: 19.79 million tonnes). RC-Güterbahn transported around 18.74 million tonnes of goods by rail (previous year: 20.17 million tonnes). Net tonne-kilometres increased slightly to 2.97 billion (previous year 2.83 billion). Thanks in part to a comprehensive restructuring of the company, RheinCargo's result significantly exceeded the original forecast.

HGK CEO Uwe Wedig assesses the 2023 balance sheet as very positive overall: "The HGK Group continued to develop successfully in the past financial year and, in addition to the operational logistics business, made important contributions to the provision of public services for industry, the city and the region."

"Our goal remains to continue offering sustainable and innovative logistics services at competitive prices in order to maintain the competitiveness of both our customers and the HGK Group."

Uwe Wedig, Chairman of the Management Board of HGK AG

At the same time, however, he is also aware of the major challenges facing the HGK Group. "Our companies have recently felt the effects of the economic slowdown. Due to the geopolitical uncertainties, there has been little or no growth in many branches of industry, which is also having a downstream impact on the logistics sector. This makes it all the more important for all areas of society and politics to work together to counteract this in order to secure prosperity and jobs in the future. The framework conditions must be improved so that manufacturing companies in our country continue to have prospects. The expansion of the ageing infrastructure in all areas of the transport sector is just one example of this."

For the future, Uwe Wedig sees HGK in a very stable position overall. The Group will continue to develop dynamically in the coming years. Acquisitions will contribute to this, as will the strengthening of existing business models.