Hapag-Lloyd to take stake in Eurogate terminal in Hamburg via subsidiary

Background: Capacities and Locations

Eurogate associates the conclusion of this partnership with "a stronger customer loyalty of Hapag-Lloyd as a strong partner with a high container handling volume," the statement said. Hapag-Lloyd has already had a large share of its ships handled at Eurogate in Hamburg since last year.

However, the shipping line is already involved in another container terminal in the port: At the Altenwerder terminal, Hapag-Lloyd holds 25.1 percent. This site is operated by competitor HHLA. Hapag-Lloyd has been involved in Eurogate competitor HHLA in Altenwerder for years and does not intend to change that.

Relationship with HHLA and Competition from MSC

The HHLA terminal in Altenwerder is, however, mainly suitable for smaller freighters due to the low Köhlbrand Bridge. Hapag-Lloyd had originally also sought a larger stake there – but in the end, the Swiss shipping line MSC was awarded the contract.

A direct consequence of MSC's stake in HHLA was that Hapag-Lloyd withdrew some of its ships from HHLA. With the now-announced entry into Eurogate, Hapag-Lloyd apparently wants to redistribute its handling capacities in Hamburg.

What remains open

The deal still needs to be approved by the antitrust authorities. How much Hapag-Lloyd is paying for the stake in Eurogate Hamburg is not known. On the stock market, the Hapag-Lloyd share reacted at times with a decline of 0.8 percent to 111.70 euros, according to XETRA data.

Hapag-Lloyd is one of the largest container shipping companies in the world and is headquartered in Hamburg. In addition to Hamburg, Eurogate also operates terminals in Bremerhaven and other European ports. The acquisition of the 20 percent stake by HGT is presented within the group as a strategic step to consolidate its presence in the Hanseatic city.

Observers see the move as a response to the competitive pressure that weighed on Hapag-Lloyd following MSC's entry into HHLA. With two port terminals in Hamburg – an existing one in Altenwerder and a new stake in Waltershof – the company aims to strengthen its independence from individual operators.

Market reaction

The Hapag-Lloyd share was quoted on Monday via XETRA at times 0.8 percent lower at 111.70 euros. Analysts did not initially wish to comment on the planned stake but pointed to the pending antitrust review as the most important factor for the completion of the deal.

It remains unclear how the planned expansion of the Eurogate terminal will affect Hapag-Lloyd's future role. As part of the Western Extension, additional berths, more modern crane systems, and higher handling capacity are to be created – a program that is likely to take several years.

The question of whether MSC will receive further shares in HHLA in the medium term also remains open. The Swiss rival had been awarded the contract in a bidding process in which Hapag-Lloyd had also expressed interest.