By Dominic Chopping

German transport and logistics provider Hamburger Hafen und Logistik expects to report revenue and earnings growth this year on an increase in container transport and demand for port services.

The Hamburg terminal operator--known as HHLA--specializes in seaport terminal and port services, as well as container and transport logistics. It said it spent 2024 focusing on strengthening its European network, particularly by increasing the number of rail connections, in addition to further modernizing and automating its container terminals in Hamburg.

"In uncertain times, it is crucial to strategically remain on track," Chief Executive Angela Titzrath said. "Based on the growth of revenue and earnings, we are now able to look forward with optimism to 2025."

Despite global challenges such as weakness in the German economy, conflict in the Middle East and the war in Ukraine, HHLA said it was able to post increases in revenue and earnings in 2024, mainly thanks to the expansion of its European network.

Transport volumes rose significantly at its intermodal business, which offers transport services via rail, truck and ship, while it also benefited from an increase in container storage charges at Hamburg terminals. That was thanks to port congestion last year, as shipping diversions caused by attacks on vessels in the Red Sea and port strikes in the U.S. ramped up pressure on ports and meant containers were held in port for longer, leading to increased storage fees.

Container handling at the company's seaport terminal edged higher, as lower volumes on routes to and from the Far East and Middle East were offset by strong growth for the North and South America shipping regions.

Cargo volumes also increased for other European seaports, particularly Belgium and Greece, which was due to temporary route adjustments caused by the Red Sea disruption.

Overall, the group reported a 23% rise in earnings before interest and tax to 134.3 million euros ($144.9 million) in 2024 on year, as revenue rose 10% to 1.6 billion euros.

The company had guided for EBIT of between 125 million and 145 million euros.

For 2025, it expects "strong" revenue growth and EBIT of between 195 million and 235 million euros. Between 180 million and 220 million euros of that is expected to come from its port logistics unit that is made up of the container, intermodel and logistics businesses. Its real estate unit, which develops, designs and lets buildings such as warehouses and commercial sites in Hamburg, is expected to see a strong drop in earnings this year from the 16.1 million euros it reported in 2024.

The company proposed a full-year dividend of 16 European cents, up from 8 cents a year earlier.

HHLA is majority owned by the City of Hamburg, but a deal late last year saw container shipping giant Mediterranean Shipping Co buy a 49.9% stake in the company.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

March 26, 2025 06:30 ET (10:30 GMT)

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