BLG benefits from automotive boom although business at EUROGATE slower
The German logistics and terminal operator BLG Logistics Group has outlined its annual results, describing a strong recovery in both the automotive and container sectors.
The company runs the largest car terminal in Europe as well as the EUROGATE consortium that owns Bremerhaven port, a string of ports in the Mediterranean and is developing further terminals in Germany and North Africa.
The core container business continues to be the most profitable part of the company, although BLG has not yet published financial results, it says that volumes and profits have still to recover to the levels of 2007. By far its main port, Bremerhaven handled 5.9m TEUs (twenty foot equivalent units) in 2011, however BLG complained that growth was being hindered by the shallowness of the channel into the port. Detlev Aden, BLG’s CEO, commented that "we could have a lot more containers in Bremerhaven if we weren’t restricted by the waterway depth. The waterway adjustment must eventually be tackled so as not to hinder Bremerhaven’s development any longer. Planning approval was obtained a time ago."
BLG is particularly strong in automotive logistics, running Europe’s largest finished car terminal at Bremerhaven. Volumes here have been driven by the strength of German car sales to markets such as China, with the facility exceeding its record 2007 figure and a 30% increase over 2010 levels to 2m vehicles. Demand for finished vehicle logistics is now so high at Bremerhaven that BLG is considering converting under-utilised space at its conventional cargo terminal in Neustadt for use by its automotive division. BLG has also commenced building an automotive logistics network in Russia in a joint-venture with the Russian logistics company FESCO.
Excluding the EUROGATE business, BLG states that it made pre-tax earnings of "more than €40m" up from €34m in 2010 on revenues of "more than €1bn". The company has not yet published its annual audited figures.
Detthold Aden forecast that the whole business would "take time" to see a return to the profit levels seen in 2008 of over €80m, and this would not happen in 2012. Nonetheless, even if the German economy weakened "BLG will continue to grow, at least in the lower single-digit percent region."
Quelle: eyefortransport
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