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Logistics

Liner-operator port partnership falls through

12 Dec 2024 - by Staff reporter
The Port of Hamburg. Source: Rail Cargo Group Blog
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A proposed collaboration between CMA CGM and the German port operator Eurogate to jointly develop a new terminal in Hamburg appears to have collapsed, as reported by shipping analyst, Alphaliner.

Earlier this summer, it was revealed that officials from Hamburg were urging Eurogate to find a partner for the Westerweiterung project, which involves a 24-hectare expansion of its Burchardkai facility.

This initiative aims to enhance the port's capacity significantly, The Loadstar reports.

Alphaliner has indicated that industry sources now confirm that Eurogate and CMA CGM have failed to reach an agreement on the deal.

Local newspaper DVZ reported that municipal representatives had expressed concerns regarding Eurogate's financial capability to independently fund the project.

They encouraged the operator to seek a shipping line partner, similar to a deal it was negotiating with Mediterranean Shipping Company (MSC) and Hamburger Hafen und Logistik AG (HHLA), which was predominantly owned by the city at that time.

Planning permission for the Westerweiterung project was granted in 2016, allowing for land reclamation and the construction of two berths, measuring 450 metres and 600 metres respectively.

This development is expected to increase the port’s annual capacity by approximately two million TEU (twenty-foot equivalent units), with construction costs estimated to exceed €1 billion.

Despite this setback, Alphaliner noted a renewed commitment within Hamburg to revitalise its port operations.

The successful investment from MSC in HHLA has reinforced this determination, particularly as HHLA continues to require substantial capital for its automation retrofit project at Burchardkai.

The withdrawal of CMA CGM from this initiative may open doors for other shipping companies.

Alphaliner remarked that, following the HHLA-MSC agreement — which included provisions for MSC to co-fund significant upgrades at HHLA’s container terminals — Hamburg remained eager to advance the Westerweiterung project, which already possessed full planning approval.

Should CMA CGM's exit be confirmed, it could present an opportunity for MSC, Hapag-Lloyd, or another carrier to engage in Hamburg’s next major port expansion effort.

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