World’s largest shipping line to buy just under half of terminal operator HHLA in deal set to be completed before end of 2024
Mediterranean Shipping Company’s plan to buy just under half of Hamburg-based terminal and service operator HHLA will be completed by the end of 2024, it has been confirmed.
HHLA will continue to be majority-owned (50.1 per cent) by the city itself, but can now be further developed with support from new major shareholder , the world’s largest container shipping company.
After Hamburg’s parliament and the European Commission approved the deal, the final go-ahead has been given by officials in Ukraine, where approval was also required because HHLA operates a terminal in Odessa.
Melanie Leonhard, Hamburg senator for economic affairs and innovation, said MSC’s support would mean the port continued to provide reliable services for all of its customers.
“In order to continue to perform its functions for Hamburg and the hinterland well, we must further develop and modernise the port,” she said. “With its expertise in maritime logistics, the Mediterranean Shipping Company will be a strategic partner for the necessary further development of HHLA.”
Finance senator Andreas Dressel said the proceeds of the deal, as well as a capital increase by MSC, would provide almost half a billion euros for investment in HHLA.
MSC chief executive officer Soren Toft welcomed the agreement’s approval. “Together with the City of Hamburg as majority owner, we will support HHLA and the Port of Hamburg in getting back on track for growth.”
Partnership plan
On13 September, 2023, Hamburg and MSC announced a strategic partnership for the HHLA’s future development.
The Port of Hamburg is expected to become an important hub in MSC’s global shipping and intermodal network, and to expand its position as a leading north-west European trading centre.
As part of the agreement, MSC will significantly expand its cargo handling activities in Hamburg from 2025.
And from 2031 onwards, the group anticipates it will handle a minimum volume of one million TEUs in the city.
Even before the transaction was implemented, the shipping company brought additional liner services to Hamburg, where it also plans to build a new German headquarters.
