The Structural Change in the Port of Hamburg Has Long Begun

In the corn crisis, many see an opportunity to drive forward the structural change. In many cases, as in the Port of Hamburg, this has long begun before Corona, as Ingo Egloff, CEO of Hafen Hamburg Marketing, explicitly emphasized.

(Hamburg) The discussion about the change in transport routes and the future of globalization has gained new momentum due to the Corona crisis. The end of globalization and international division of labor is repeatedly being discussed. The change in structure, which is now being called for again in a position paper by the Hamburg Institute of International Economics (HWWI) by Professor Dr. Henning Vöpel, has, according to Ingo Egloff, CEO of Hafen Hamburg Marketing, been taking place for a long time.

“The structural change in the port has long begun. Every company is responsible for keeping its business model successful and marketable out of its own interest. Those who fail to do so will quickly disappear from the market,” says Egloff. He further adds: “Through our international relationships and our representations, we have a good overview of what is happening in the transport and logistics industry internationally. From this knowledge, we must conclude: The Port of Hamburg is among the leaders in the international ports regarding digitization, coordination, and improvement of logistics processes.”

These ports are in intense exchange, for example, through the network “chainPORT”. The Hamburg Port Authority (HPA) initiated this cross-border partnership between leading ports worldwide. The members exchange knowledge, innovations, and the promotion of strategic topics. The goal is to learn from each other and create innovations. A comprehensive and well-founded debate on the effects of the digital revolution and the avoidance of unnecessary future investments through the more efficient use of existing infrastructure is being pursued. Since logistics is a complex process involving countless partners from different countries, solo efforts are ineffective and inefficient.

The digitization strategy of the HPA and the port companies gives Hamburg a leading role in various areas such as sustainability, virtual reality, or drone use both underwater and in the air. No other port has a system like the Hamburg Vessel Coordination Center (HVCC), which coordinates ship arrivals and advises shipping companies on how to enter the port without problems while saving expensive fuel. This also reduces CO2 emissions. The HVCC is now serving as a model for traffic control worldwide. New aspects of the 5G standard were successfully tested in the Hamburg port within the framework of the EU project 5G-MoNArch with various applications. With the new technology concept “Network-Slicing,” there will no longer be “the one network” under 5G, but rather parallel operated, virtual networks based on a shared infrastructure.

“Anyone who still thinks that terminal operators are merely ‘box movers’ fails to recognize that these are now highly complex logistics chains that the companies organize,” Egloff continues. In Hamburg, this is particularly sustainable because almost 50 percent of containers are transported by rail to the hinterland, and this share will be further increased. Among the four major North Range ports, Hamburg transports almost as many containers by rail as the other three combined. “This is lived sustainability and not a pipe dream,” says Egloff.

Moreover, the port, which includes one of the largest industrial areas in Europe, is organizing the structural change. The production of green hydrogen in the port, the transition to hydrogen technology even in the basic materials industry, for example in steel, is driven by the industry and sustainably supported by economic policy. When utilizing still free or becoming free areas, Hamburg is always on the lookout for new technologies. “Hamburg has proven compared to other ports that industry and port economy can grow sustainably on a small area. Large former port areas are now attractive living spaces and have transitioned to urban use while simultaneously enhancing the quality of the port,” says Egloff.

“Nevertheless, we cannot and will not do without the adjustment of the fairway of the Elbe. Firstly, the measure is almost complete, and secondly, it is necessary for the ships currently in operation. This has nothing to do with the fact that we will not reach the 30 million TEU targeted years ago – where all experts worldwide were mistaken. Container transport on large ships far into the inland is also advantageous from an ecological perspective when considering the CO2 balance per transported container and then including rail transport in the analysis. And this will even improve further when the ship drives change, whether through LNG, hydrogen fuel cell technology, or scrubbers,” explains the HHM board.

A big question mark is raised by Egloff regarding the farewell of the HWWI’s short study on globalization. “Politics will certainly consider which productions must be present in Germany or Europe for reasons of basic supply in the future. This will be a lesson from the Corona pandemic. But this actually only concerns a small part of the economy and industry.”

Otherwise, it remains a matter of the market how it decides regarding production locations. Labor costs play a role, as does the security of transport chains. There may be some relocations, but certainly no return to “everything made in Germany.” That is unrealistic wishful thinking. And as long as a sneaker in China or elsewhere in Asia is still many times cheaper than one produced by a 3D printer in Germany, there will still be transport.

“We must not forget that we are one of the largest exporting nations and therefore must also have an interest in conducting further international trade. Our industry largely depends on this. When we talk to others, we gladly explain how advanced the port already is and where future potentials lie. We are always open to good proposals in the port. This has been the case for 831 years, and that is why we still play in the top league,” concludes Egloff.

Photo: Hafen Hamburg Marketing / Achim Multhaupt

Photo caption: Ingo Egloff, CEO of Hafen Hamburg Marketing

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