HGK Group Achieves Good Results in the Corona Year 2020

With 10.3 million euros, Häfen und Güterverkehr Köln AG (HGK) has confirmed its record result from the previous year despite the Covid-19 pandemic. This was contributed to by the acquisition and integration of HGK Shipping, among other factors. An internal organizational project has been initiated for further growth.

(Cologne) “Operationally, it was not an easy year for us. Almost all market segments in which we operate were massively negatively affected by the Corona crisis. Therefore, we are satisfied to have maintained the good result from the previous year. The acquisition of HGK Shipping and its stable, future-oriented business model made a significant contribution to this,” said Uwe Wedig, Chairman of the Board of Häfen und Güterverkehr Köln AG.

The revenue of HGK AG from the operational business areas of network, technology, and real estate amounted to 71.2 million euros in 2020, down from 75.4 million euros in the previous year. The impact of Corona on these operational business areas directly located within the AG was less than it initially appears. The higher revenue from the previous year was particularly characterized by one-off effects in the real estate sector.

Pandemic Causes Declines in Handling and Revenue

The effects of Corona become more pronounced when looking at the handling performance of HGK’s logistics investments. In the HGK Logistics and Intermodal (neska group) business area, nearly 1 million tons less goods were transported and handled (6.25 million tons compared to 7.18 million tons in 2019). At the 100% subsidiary HTAG, a total of 8.33 million tons were handled and transported (previous year 10.06 million tons). Rhein-Cargo, a joint venture of HGK and Neuss Düsseldorf Ports, had to record a significant decline, especially in rail freight transport, handling only 18.63 million tons in 2020 (previous year 21.86 million tons). The handling in the seven ports of RheinCargo was less affected by the Corona-related economic crisis, with 15.25 million tons (previous year 15.99 million tons).

 After the acquisition and integration of HGK Shipping into the logistics portfolio of the HGK Group in August 2020, the new 100% subsidiary made a positive contribution to the overall result of the HGK Group. Despite the declines in handling and transport volumes in all operational areas, HGK AG was able to conclude the 2020 financial year exactly at the previous year’s level, achieving a company result of 10.3 million euros.

HGK Group Advances Development Towards an Integrated Logistics Group

The acquisition and integration of HGK Shipping also marked an important element for the alignment and further development of HGK into an integrated logistics group. Today, the HGK Group can offer transport and logistics services from a single source across the entire route of combined transport and masters the complete modal split. This potential and the special competencies for certain goods groups and industrial segments will be even more closely linked in the future, not least through the smart use of digital tools and processes.

This strategy is now also reflected in a new trademark, a new brand architecture, and not least the realignment of the organization of HGK AG. In an internal organizational project, principles for the design of processes and task distributions between operational, controlling, and supporting areas were defined in the fourth quarter of 2020. This sets the course for further growth in new and existing business fields.

Expansion of the Board to Include COO Position

Thus, HGK AG is evolving into a managing management holding focused on corporate development and the coordination of central strategic tasks, such as in the areas of sustainability, quality, and digitalization. The already announced expansion of the HGK Board to include the position of COO (Chief Operating Officer), planned for early 2022, is another important step on this path.

Photo: © HGK