HGK Achieves Record Results in 2022

The Ports and Goods Transport Cologne AG (HGK) was able to record a new record result in the fiscal year 2022: Despite adverse market conditions, it succeeded in increasing profits to 11.9 million euros. In the previous year, the surplus of the integrated logistics group from the Stadtwerke Köln group was 10.5 million euros.

(Köln) “The entire logistics industry faced special challenges in 2022. The Russian war of aggression against Ukraine led to high energy prices, significantly increased inflation, and disrupted supply chains. In addition, the Corona pandemic still affected business activities. Against this backdrop, we are very pleased that we were able to exceed our good result from the previous year. All business areas and especially our subsidiaries contributed to this,” summarizes Uwe Wedig, Chairman of the Board of HGK.

The revenue of the parent company HGK AG with the operational business areas of network, technology, and real estate amounted to 77.7 million euros in 2022, compared to 74.7 million euros in the previous year.

Ukraine Crisis with Varying Impacts on Business Areas

The transport and handling performance of the HGK group amounted to a total of 91,071,751 tons. The business areas of the subsidiaries and investments of the HGK group were affected differently by the Ukraine crisis. The transport volume of HGK Shipping only saw a moderate decline despite the dramatic effects on global supply chains. “The contribution to results from HGK Shipping has developed excellently since its acquisition in 2020 and exceeds all expectations,” says Uwe Wedig.

The neska shipping and forwarding company from the HGK business area Logistics and Intermodal was able to significantly increase conventional handling compared to the previous year. In the container business, a slight decline was recorded due to the previously described problems. Overall, neska achieved the best result in the fiscal year 2022 since joining the HGK group.

The HGK investment RheinCargo (RC), as the operator of the largest inland port network in Germany and one of the largest German freight railways, recorded a slight decline in total freight volume from rail transport, port logistics, and land-side handling compared to the previous year. Like other companies, RheinCargo suffered significantly in the railway sector due to the dilapidated rail infrastructure of DB Netz AG. This led to significant restrictions in transport, resulting in the RC contribution to results falling short of expectations.

Focus on Digitalization, Innovations, and Sustainability

For the HGK group, the further development of its subsidiaries and affiliated companies is of central importance. “All our companies are focused on the topics of digitalization, sustainability, and innovation,” explains Uwe Wedig. HGK Shipping has set standards with the commissioning of low-water optimized inland vessels that are also prepared for future types of propulsion (“Future-Fuel-ready”). This innovative fleet program will be further expanded. With these pioneering models, the demands of industrial customers for sustainable supply chains are taken into account, thereby improving both the company’s and the customers’ CO2 balance.

HGK Logistics and Intermodal has intensively advanced its transformation into an integrated logistics provider in 2022. This is evidenced, for example, by the new hazardous materials warehouse in Ladenburg near Mannheim, which was built to the latest standards and highest sustainability requirements. This complex, designed for major customers from the chemical industry and medical technology, is fully utilized and is considered a best practice for future projects.

In 2022, HGK AG also developed new business models. With the real estate project FUSION COLOGNE, a unique district is being developed in northern Cologne on an industrial area of up to 55 hectares. Here, production, logistics, research, and start-ups are brought together. Innovation and sustainability are also at the forefront of all considerations in this HGK concept. The city of Cologne has declared FUSION COLOGNE as one of five key projects for urban development.

Another initiative that promotes future growth and innovations for the HGK group is the start-up platform “Innovation Harbour Cologne” (IHC). Together with young companies, efforts are being made to develop logistics-related products and services to realize new business models. Innovation Harbour Cologne also specifically targets ideas from employees and fosters their talents.

Noticeable Results in Reducing CO2 Emissions

In light of decarbonization, the HGK group aims for a significant reduction in its CO2 emissions. In this regard, noticeable successes have already been achieved. For instance, photovoltaic systems have been commissioned at various locations. The new ships of HGK Shipping already emit 30 percent less CO2 than conventional models. The first electric trucks have been ordered by neska. The electric locomotives of RheinCargo are powered 100 percent by green electricity. In the past fiscal year, HGK laid the foundation to achieve the climate neutrality goal set by the city of Cologne by 2035.

Photo: © HGK / Caption: Pleased with the good result of HGK (from left to right): CEO Uwe Wedig (l.) and COO Dr. Jens-Albert Oppel