Contship Italia Group 2014 results

Milan - Contship Italia Group, leader in Italy in the maritime container terminal business by market share and in the intermodal transport sector recorded the following 2014 results. Contship Italia Group overall results are, naturally, influenced by various market factors and events of 2014. The Contship Maritime Container Terminal business handled 6.6 million TEUs (+5.7% vs 2013) while intermodal transported TEUs mirrored the same figures of 2013. Transported TEUs mirrored the same figures of 2013. “Shipping Lines continue to pursue their strategy of alliances, mergers, integration, multi-faceted co-operations – said Cecilia Eckelmann-Battistello, Contship Italia Group President - aimed to extract efficiencies from their networks, reduce their operating costs, improve service levels and reliability for on-time delivery as well as extended port – pair coverage. The downward pressure on freight rate levels looks set to continue, even if the positive signs for growth continue.

Contship Italia Group continues to strongly invest in its facilities, setting the scene for the new scenario involving major changes both in networks and shipping line co-operations. The East-West Network (2M), Ocean Three (O3), as well as the UASC/Hamburg Sued cooperation agreement, Hapag Lloyd/CSAV and CCNI/Hamburg Sued become operational in Q1 2015 and begin to compete in the global marketplace with the existing networks of CKYHE and G6. For such reasons Contship businesses are changing, offering new products to the market providing an opportunity to re-think the overall supply chain through efficient and effective access to the main important Italian market as well as viable alternative Southern gateway to serve the European market beyond the Alps”.

In Italy, Medcenter Container Terminal (MCT), the “MEGA HUB” in Gioia Tauro, experienced a modest contraction compared to the recent growth trend of the last 2 years with a slight decrease in final total moves (that can be attributed to reasons of systems changes in the summer period and the temporary shutdown of commercial operations in order to handle a U.N. managed operation). The average TEUs handled per call is 3% higher, confirming the general trend of larger vessel deployed in the main east-west trades. In December 2014, MCT recorded a cumulative 50 million TEUs handled, preparing itself for a new record in September 2015 marking its 20th anniversary. Cagliari International Container Terminal (CICT), confirms its dual-role of Med transhipment platform and gateway for local Sardinian cargo. Beyond Italy, Eurogate Tanger, the Moroccan hub, recorded its best ever results with 1,347 vessels operated (+6%). La Spezia Container Terminal (LSCT) continues to be a champion in the North Tyrrhenian market achieving its best ever record in terms of total TEUs, where the complete acquisition of the remaining Speter shareholding in May 2014 added volume to an already existing growth trend 2014 vs 2013.

LSCT continues to improve its rail volumes with 10% more rail wagons dispatched, increasing its share of rail transported containers in excess of 35% of throughput. Terminal Container Ravenna (TCR) experienced a slightly lacklustre performance for the full year of 2014, although there was a strong growth in the final months. A constraint in water depth and quay access, the Port Authority confirms to solve during 2015, contributes to the final result. Salerno Container Terminal (SCT), continues to strongly increase its market share in the Southern part of Italy with a second year double digit growth. Contship Italia Group Intermodal solutions (operated by Sogemar and Hannibal, the latter now assuming the responsibility of both domestic and international intermodal transport services), achieved the same 2014 vs 2013 result, even though rail operations in the Rail Hub of Melzo (Milan) were stopped in November and severely limited in December due to flooding of the RFI (Rete Ferroviaria Italiana) local railway control station. For the same reason, Oceanogate Italia, Contship Italia Group rail traction company, slightly decreased the number of km-trains operated. In early 2015, Rail Hub Milano will complete its second tranche of investments with expanded developments including 100,000 sqm of new yard area and 4 new rail internal tracks, 750 m length each.