HAMBURGER HAFEN UND LOGISTIK ... - HHLA

Hamburger Hafen und Logistik aktiengeseLLscHaft 

ANNuAl reporT 2006

HHLA Group: Key Figures 

2006 2005 2006/2005 

SALeS revenueS Million e 1,017.4 832.9 22.2 % 

GrOuP PrOFit FOr tHe YeAr 

- before income taxes Million e 186.8 113.7 64.3 % 

- after income taxes Million e 116.9 69.4 68.4 % 

- after minority shares Million e 97.1 57.2 69.8 % 

CASH FLOw from operating activity Million e 199.7 160.7 24.3 % 

inveStMentS Million e 204.7 117.4 74.4 % 

tOtAL ASSetS Million e 1,199.6 1,045.8 14.7 % 

tOtAL vALue ADDeD Million e 454.9 358.5 26.9 % 

eQuitY rAtiO % 21.6 14.5 49.0 % 

rOCe % 24.4 19.3 26.4 % 

nuMBer OF StAFF as at 31.12. 4,215 3,869 8.9 %

HHLA ANNUAL REPORT 2006 

CONTENTS 

Introduction 

HHLA Group: Key Figures 2 

Members of HHLA Boards 

Executive Board, Supervisory Board 6 

Foreword 

by the Chairman of the Executive Board 8 

Report by the Supervisory Board 12 

Strategy and Performance 

HHLA Group 

Growth opportunities successfully exploited 14 

List of Shareholdings 20 

HHLA Container Division 

Reaping success with high tech 22 

HHLA Intermodal Division 

Hinterland boom 28 

HHLA Logistics Division 

Logistics activities on course for expansion 36 

HHLA Real Estate Division 

Intelligent development of port real estate 42

Taking Responsibility 

Staff 

Human resources management shapes the future 48 

Economy 

Socially responsible management 54 

Environment 

Ecological transport chains protecting climate 58 

Society 

In dialogue with society 62 

Corporate Governance Report 66 

Consolidated Financial Statements 

Group Management Report 

CONTENTS 

HHLA Group: Key Figures 70 

Group position and business performance 72 

Financial report 76 

Risk report 80 

Report on events after the balance sheet date 83 

Forecast 83 

Consolidated Financial Statements 84 

Annex to Group Financial Statements 88 

Auditors’ report 137 

Annual Financial Statement (parent company) 138 

Chronology 142 

Terminology 144 

Imprint 146

hhla aNNUal REPORT 200 

MEMBERS OF 

hhla BOaRDS 

EXECUTIVE BOARD 

Klaus-Dieter Peters 

Chairman of the Executive Board – Corporate Development, Logistics Division 

Dr. Stefan Behn 

Member of the Executive Board – Container Division, Intermodal Operations 

Gerd Drossel 

Member of the Executive Board – Intermodal Division, Container Sales 

Rolf Fritsch 

Member of the Executive Board – Human Resources and Social Affairs 

Dr. Roland lappin 

Member of the Executive Board – Finance, Real Estate Division

SUPERVISORY BOARD 

Dr. Peter von Foerster 

Chairman, Lawyer 

Fred Timm 

Deputy Chairman, member of the HHLA Works Council 

harald Erven 

Member of the HHLA Works Council 

Rolf Kirchfeld 

Graduate in Business Administration 

Dr. Rainer Klemmt-Nissen 

Senate Director, Hamburg tax authority 

Dr. Johannes ludewig 

Executive Director, Community of European Railway and Infrastructure Companies (CER) 

Gunther Bonz 

Privy council of Economic Affairs and Employment 

Wolfgang Rose 

Hamburg Area Chief Officer, ver.di trade union 

Uwe Schröder 

Manager, Seaports Department, ver.di trade union, Hamburg 

Walter Stork 

Chairman, Executive Board, NAVIS Schiffahrts- und Speditions-Aktiengesellschaft, Hamburg 

Manfred Wilkens 

Member of the HHLA Works Council 

Wolfgang Weskamp 

Member of HHLA staff 

MEMBERS OF hhla BOaRDS

hhla aNNUal REPORT 2006 

The HHLA Executive Board (from left to right): Gerd Drossel, Dr. Roland Lappin, Klaus-Dieter Peters, Dr. Stefan Behn, Rolf Fritsch.

FOREWORD 

Globalisation is not a 21st century invention. Yet never be- 

fore have so many national economies intermeshed across 

continents so dynamically. One of the main hallmarks of the 

current wave of globalisation is the boom in container traf- 

fic. Volumes transported in these trades are currently in- 

creasing twice as rapidly as the world economy. For a long 

time now, that has involved far more than simple transport 

from A to B. Today’s requirement is for a complex logistics 

process ensuring that the goods and accompanying data 

receive service of the quality required, at the right place 

and at the right time. Services provided by the logistics 

sector accordingly have a decisive influence on the speed 

and quality of globalisation. 

SETTING FRESh RECORDS 

In this environment, in financial year 2006 Hamburger 

Hafen und Logistik AG (HHLA) once again grasped its 

opportunities with outstanding success. All divisions set 

fresh records for performance, turnover and result. HHLA 

simultaneously broke two sound barriers in the process: 

turnover climbed to over one billion euros, an advance of 

22 percent on the previous year. The trend on profits was 

FOREWORD 

even more impressive. The annual result after taxes leapt 

by 68 percent to 117 million euros, exceeding the 100-mil- 

lion mark for the first time. 

HHLA has again confirmed its steady upwards trend 

of recent years. The group is now harvesting the fruits of its 

determined modernisation course with the focus on clearly 

separated divisions and a strategic positioning along the 

logistics chain between the quay wall in the overseas port 

and the customers in our hinterland. Further development 

of technology and optimisation of interfaces and work 

processes enabled us to boost efficiency and productiv- 

ity once again. 

The basis for the leap in the result in 2006 was strong 

growth in all four divisions: Container, Intermodal, Logistics 

and Real Estate. Boosts in volumes of containers handled 

and transported were representative of the dynamic trend 

in performance of HHLA companies. In 2006, for instance, 

HHLA handled 6.1 million standard containers (TEU) at its 

terminals in the Port of Hamburg. That corresponds to a 

growth rate of 16 percent compared to the previous year, 

substantially exceeding world container traffic growth of 11 

percent and the growth rate of just under 9 percent in the 

overseas ports of Northern Europe.

10 hhla aNNUal REPORT 2006 

MaRKET ShaRES GaINED 

HHLA’s market share in the field where it competes directly, 

the Hamburg-Antwerp Range with Antwerp, Rotterdam, 

the Bremen ports and Hamburg, has meanwhile climbed 

to over 20 percent. In 2000, it was still around 16 percent. 

Last year more than one in five of all steel boxes in the big 

Northern European ports passed through a HHLA terminal. 

The increase in volumes transported on HHLA intermodal 

services was even steeper. By rail, by road and by feeder 

ship, in 2006 HHLA companies moved over 1.5 million TEU 

in hinterland traffic – 19 percent more than in the previous 

year. HHLA again succeeded in further expanding its lead- 

ing position in hinterland traffic of German seaports. 

Here the Group once again profited from the global 

transport boom and the strategically favourable situation of 

the Port of Hamburg, which was able to further extend its 

position as the most important European hub for intercon- 

tinental goods flows between Central and Eastern Europe 

and world markets – especially in the booming East Asian 

region. Grasping the resulting opportunities for growth re- 

quires an integrated and holistic approach, ensuring that 

separate links in the logistics chain interlock precisely. 

EXPaNSION PROJECTS REalISED 

HHLA’s strategy and its investment programme made an 

essential contribution here, for example with the punctual 

and demand-driven expansion of the terminal and exten- 

sion and upgrading of high-capacity hinterland connec- 

tions. On top of these come the expansion and optimisa- 

tion of logistics services, worldwide consultancy on port 

and transport logistics and not least utilisation of innovative 

technologies in container handling. 

The Port of Hamburg’s growth in the last four years 

would not have been possible without the entry into service 

of HHLA Container Terminal Altenwerder (CTA) in 2002. 

The CTA concept of container handling using a maximum 

of automation not only ensures maximum productivity on 

limited areas but also makes possible further increases 

in capacities at existing facilities. Today, the know-how 

gained at CTA is a crucial factor in implementing our cur- 

rent investment programme to double capacities at our 

container terminals. In coming years, they will be gradually 

upgraded to handle throughput of over 12 million TEU. 

In the financial year 2006, moreover, HHLA imple- 

mented a large number of projects. A few examples: 

Completion of the new on-dock rail terminal at HHLA 

Container Terminal Burchardkai secured the conditions 

for a further strengthening of rail in hinterland trans- 

port. 

With the extension of intermodal activities to Switzerland, 

and the expansion of our inland terminal at Dunajska 

Streda in Slovakia into a hub for SE Europe, we are once 

again substantially strengthening and expanding our hin- 

terland network. 

Construction of Logistics Center Altenwerder directly 

adjacent to our Container Terminal Altenwerder boosts 

synergies between cargo handling and contract logis- 

tics. 

Modernisation of the multifunction O’Swaldkai Terminal 

optimises the uses of space, creating additional growth 

potential for fruit and vehicle logistics. 

aWaRENESS OF OUR RESPONSIBIlITY 

HHLA’s corporate policy aims to be long-term and sustain- 

able. Discharge of our responsibility for the environment, 

the economy and society play a central part here: 

HHLA organises transport chains notable for their out- 

standing environmental compatibility, playing its part 

in climate protection as well as conserving natural re- 

sources. Our terminal expansion programme on areas

already in use for container handling sets yardsticks for 

growth alongside sparing use of resources. 

HHLA is achieving a constantly growing added-value 

contribution, and at a high level, strengthening eco- 

nomic momentum at our locations, especially in the 

Hamburg metropolitan region. In fiscal 2006, the Group 

once again created 346 jobs, and now has 4,215 staff 

on the payroll. 

HHLA sets high social standards with its preventive health 

care, an innovative tariff policy as well as its above-aver- 

age programme of vocational and further training. 

Our staff, both male and female, form the bedrock for the 

development of the company. Their flexibility and commit- 

ment, but above all also their identification with the com- 

pany, set benchmarks. Without their committed involve- 

ment, combination of the unwaveringly high quality of the 

services we provide and growth at a fast pace would be 

impossible. We owe all the staff of HHLA a special vote 

of thanks. 

MaINTaINING GROWTh COURSE 

In the light of the steady growth in demand from our cus- 

tomers, HHLA has once again topped up its investment 

programme. We shall be investing more than 1.2 billion 

euros in the expansion of our four divisions in the period 

between 2007 and 2011. It is of crucial importance that 

public infrastructure is expanded at the same time. 

By including 15 priority infrastructure projects for the 

expansion of waterside and landside port links, as well 

as the deepening of the navigation channels of the Outer 

Weser and the Outer and Lower Elbe in its overall invest- 

ment plan running until 2010, the Federal government has 

sent out positive signals. It has also met demands that 

have long been advanced by the German maritime industry. 

Taken along with the substantial topping up of investments 

FOREWORD 

by the City of Hamburg in port infrastructure to a total of 

three billion euros by 2015, the important conditions for 

continuation of our growth are now in place. 

Deepening of the navigation channel of the Outer and 

Lower Elbe is of particular strategic importance. It is es- 

sential that the growing number of large container ships of 

the latest generation can be handled optimally in the Port 

of Hamburg. In addition, it will make an important contri- 

bution towards the implementation of EU climate protec- 

tion targets in the freight transport field, since ecologically 

Hamburg offers the best linkage for most of the routes 

for intercontinental transport chains between Central and 

Eastern Europe and overseas. 

Our aim is to look to the future in exploiting the op- 

portunities of globalisation responsibly and over the long 

term. The forthcoming stock exchange placing of around 

30 percent of HHLA’s ordinary capital already announced 

by the Free and Hanseatic City of Hamburg (FHH), cur- 

rently our sole shareholder, is an important milestone on 

the way. The FHH has announced that the proceeds of this 

share placing will be used to strengthen HHLA’s own capi- 

tal structure and to expand further the Port of Hamburg’s 

infrastructure. 

With our highly motivated staff and our successful 

strategy, as well as our far-sighted expansion programme, 

we are well positioned to further strengthen our profitability 

in the years to come, to actively exploit growth opportun- 

ities and to prove equal to the present and future require- 

ments of our customers. 

Klaus-Dieter Peters 

Chairman of the Executive Board 

of Hamburger Hafen und Logistik AG 

11


In the financial year 2006, the Supervisory Board closely fol- 

lowed the situation and development of HHLA Group. It per- 

formed the duties as laid down in law and in the company’s 

articles of association, constantly monitoring and advising 

the Executive Board. The Supervisory Board was involved 

in all decisions of fundamental importance for HHLA’s de- 

velopment. 

MaIN SUBJECTS OF CONSUlTaTION IN ThE 

SUPERVISORY BOaRD 

In four ordinary meetings the Executive Board provided 

regular comprehensive reporting on intended corporate 

policy, profitability, the progress of business and the situ- 

ation of both HHLA Group and the HHLA holding company, 

as well as on matters of fundamental financial, human re- 

sources or other importance. 

In preparation for the meetings, the Executive Board 

briefed all members of the Supervisory Board in good time 

with written information on all foreseeable developments 

with potential repercussions on earnings, assets, finances 

and the risk situation. 

Consultations and discussions concentrated primarily 

on activities designed to further boost profitability. Aspects 

of strategic positioning and the forthcoming part-privatiza- 

tion were also fully discussed. 

In addition, the Supervisory Board briefed itself ex- 

tensively on the stage reached on the various infrastructural 

REPORT BY ThE 

SUPERVISORY 

BOaRD 

measures essential for HHLA Group’s planned growth. The 

Supervisory Board entirely agrees with the Executive Board 

that early deepening of the Elbe navigation channel and the 

swift expansion of rail and road infrastructure inland are 

of crucial importance for realizing the Port of Hamburg’s 

growth potential. 

A corporate governance report was for the first time 

published in respect of the year under review in accord- 

ance with § 161 of the Law on Public Limited Companies 

(Aktiengesetz), and likewise a declaration of conformity 

was issued. 

In addition to its four regular meetings, the Super- 

visory Board considered personnel questions arising at 

Executive Board level at one special meeting. 

WORK OF COMMITTEES 

Prior to Supervisory Board meetings, the Finance Com- 

mittee met so as to consider the Executive Board’s report 

on earnings. The Finance Committee thoroughly checked 

quarterly reporting by HHLA Group and the HHLA hold- 

ing company, in particular. At the appropriate meetings 

the Executive Board explained to the committee members 

the main deviations in the course of business from budget 

and the previous year’s figures. Medium-term planning on 

a five-year basis was discussed at length, and the main 

assumptions behind planning were checked for plausibility. 

The Finance Committee closely reviewed the annual finan-

cial statements, the management report, consolidated fi- 

nancial statements, the group management report and the 

Executive Board’s proposal for distribution of 2006 prof- 

its. Representatives of KPMG Deutsche Treuhand-Gesell- 

schaft, Wirtschaftsprüfungsgesellschaft, the external audi- 

tors appointed at the Annual General Meeting attended the 

annual accounts meeting and provided detailed informa- 

tion on the results of their audit. 

aNNUal FINaNCIal STaTEMENT 2006 

For the period to December 31st 2006, for the first time, 

HHLA reported in accordance with the rules of International 

Financial Reporting Standards (IAS/IFRS). 

The annual financial statement, management report, 

consolidated financial statement and the group manage- 

ment report were audited by KPMG Deutsche Treuhand- 

Gesellschaft, Wirtschaftsprüfungsgesellschaft and were 

endorsed without qualification(s). The Supervisory Board 

noted the result of the audit and concurred with the audi- 

tors in raising no objections. The annual financial statement 

and the consolidated statement are therefore complete. 

MEMBERShIP OF SUPERVISORY BOaRD aND 

EXECUTIVE BOaRD 

Wolfgang Weskamp has left the Supervisory Board ahead 

of time because of his appointment to the management 

REPORT BY ThE SUPERVISORY BOaRD 

of a HHLA subsidiary. Thomas Lütje has been elected to 

the Supervisory Board for the rest of its term of office. 

On behalf of the entire Supervisory Board, I wish to thank 

Wolfgang Weskamp for his steadfast and successful co- 

operation. No changes occurred in the membership of the 

Executive Board during the year under review. 

aPPRECIaTION FOR WORK DONE 

Financial year 2006 brought a continuation of the excel- 

lent cooperation between the Supervisory and Executive 

Boards. We were able on an ongoing basis to convince 

ourselves of the due diligence, legality and good order of 

management by the Executive Board. 

The Supervisory Board thanks all members of the 

staff, as well as the Executive Board, for their dedicated 

service that has contributed so much to enabling HHLA 

Group and the HHLA Holding company to look back on a 

financially highly successful fiscal 2006. 

Dr. Peter von Foerster Hamburg, May 2007 

Chairman 

13


GROWTh OPPORTUN- 

ITIES SUCCESSFUllY 

EXPlOITED 

Thanks to its strategic positioning along the transport chain, with record results 

Hamburger Hafen und Logistik AG (HHLA) profited to a special extent from 

the boom in global logistics chains. 

Meat from Argentina and Australia, fish from Norway, toys 

and textiles from China, computers from the USA and food 

for Russia, measurement and control technology for Japan, 

cars for North and South America – cargo flows to and from 

Germany and around the globe are growing. Outstripping 

the average long-term trend since 2003, world produc- 

tion grew unexpectedly strongly in 2006, being up by 5.1 

percent on the previous year. World trade also booked an 

unusually large increase, rising by 9.2 percent. Container 

traffic displayed even more momentum with fresh double- 

digit growth of 11 percent. 

Economic growth in China (10.7 percent) and India 

(9.2 percent) exemplified the accelerating pace of the in- 

tegration of developing and threshold countries into the 

world economy. Eastern Europe is pursuing a stable growth 

course, with GDP up by 6.7 percent in the Russian Fed- 

eration and by 6.1 percent in the countries that joined the 

European Union (EU) in 2004. In the slipstream of robust 

world economic activity unaffected by a slowdown in 

economic momentum in the USA, Japan with 2.4 percent 

growth, the EU as a whole (2.9 percent), as well as Germany 

(2.7 percent), also reported a more vibrant economic up- 

swing. Thanks especially to the dynamism of the logistics 

sector and foreign trade, at 2.9 percent Hamburg reported 

growth slightly faster than the national average. With growth 

in all cargo categories, Hamburg as a universal port fur- 

ther strengthened its leading position as Germany’s largest 

and most dynamic logistics hub. With total throughput of 

around 135 million tons and almost nine million standard 

containers (TEU), for the eighth year running the port set 

new records. That made it a linchpin of the German export 

industry that in 2006 boosted its sales by more than 10 per- 

cent and once again captured the title “World Champion 

Exporter” for Germany. 

Number of Containers handled 

(HHLA GROUP) 2004–2006 IN MILLIONS OF TEU 

2006 2005 2004 2006/05 

Container throughput 6.6 5.6 4.7 18 % 

Intermodal volume 1.5 1.3 1.1 19 % 

Swiftly growing container traffic meanwhile accounts for 

two-thirds of all cargo in the Port of Hamburg – in 1990, the 

proportion was one-third. In 2006, the Port of Hamburg fur- 

ther consolidated its role as Europe’s largest container port 

for trade with China, Eastern Europe and the Baltic region. 

Exchange of goods with the Russian Federation rose by 

41 percent, for example, with Malaysia by 38 percent and 

with South Korea by 28 percent. China and Poland each 

posted an advance of around 20 percent.

One of the main reasons for this is Hamburg’s superb lo- 

cation in terms of traffic geography. Situated deep inland 

– approximately 200 to 450 kilometres closer by land to the 

markets of Eastern Europe than the Rhine estuary ports, 

for example – Hamburg has established itself as the ideal 

hub for goods exchange between the Baltic region and 

East Asia. As the world economy’s boom region, East Asia 

meanwhile accounts for more than 50 percent of Ham- 

burg’s container throughput, while today the Baltic region’s 

share – with its adjacent national economies included – al- 

ready exceeds 30 percent. 

NEW RECORDS ON OUTPUT aND TURNOVER 

HHLA used the favourable market environment to 

achieve a surge in growth. In 2006, for instance, the three 

big HHLA container terminals in the Port of Hamburg 

handled 6.1 million TEU, corresponding to 16 percent 

growth on the previous year. Yet HHLA Group’s overall 

container handling performance made even more dy- 

namic progress: thanks to outstanding growth rates at 

HHLA’s container terminals in Lübeck (83 percent) and 

Odessa in the Ukraine (38 percent), total Group through- 

STRaTEGY, MaRKET ENVIRONMENT aND POSITIONING OF hhla 

hamburg-antwerp Range: Container Throughput Growth 2000–2006 

130 

120 

110 

100 

90 

80 

70 

60 

50 

40 

30 

27 % 

42 % 

20 

11 % 

25 % 

10 

13 % 

0 

3 % 

2000 2001 2002 2003 2004 2005 2006 

HHLA Hamburg-Antwerp range 

Since 2000, HHLA as market leader in the Port of Hamburg has reported growth rates on container throughput in excess of the average for the Hamburg-Antwerp range. 

put rose by 18 percent to 6.6 million TEU. HHLA’s mar- 

ket share in the the Hamburg-Antwerp Range (Antwerp, 

Rotterdam, the Bremen ports, Hamburg) has meanwhile 

climbed to over 20 percent – in the year 2000 it was 

still about 16 percent. HHLA’s intermodal services also 

progressed at an above-average rate. The transport vol- 

ume of the HHLA subsidiaries and affiliates in hinterland 

traffic rose by almost 19 percent to over 1.5 million TEU 

transported. HHLA’s companies Transfracht, METRANS, 

Polzug, combisped with its Hamburg-Lübeck landbridge, 

and CTD Container Transport Dienst accordingly once 

again expanded their leading positions in their respec- 

tive markets. 

66 % 

42 % 

91 % 

59 % 

Divisional Turnover Trends 

IN MILLIONS OF EUROS 

122 % 

74 % 

2006 2005 2006/05 

Group 1,017.4 832.9 22.2 % 

Container 587.9 473.2 24.2 % 

Intermodal 279.5 229.0 22.1 % 

Logistics 111.1 96.6 15.0 % 

Real Estate & Holding 38.9 34.1 14.1 % 

17


With turnover up by 15 percent, in 2006 HHLA’s Logistics 

Division – with special cargo handling, logistics services 

and the international consultancy activities of HHLA’s 

HPC Hamburg Port Consulting subsidiary – was clearly 

on the success trail. In 2006, HHLA’s Real Estate Div- 

ision once again succeeded in asserting its position as 

the leading supplier of logistics real estate in the Port 

of Hamburg and in further boosting occupancy in all its 

sectors. 

ThE ENTIRE TRaNSPORT ChaIN aT a GlaNCE 

Founded in 1885 as a company for building and operating 

Speicherstadt in Hamburg, today Hamburger Hafen und 

Logistik AG with its four divisions – Container, Intermo- 

dal, Logistics and Real Estate – combines strongly grow- 

ing logistics activities in the Port of Hamburg under one 

roof. Cargo handling and networking of different modes 

of transport, storage and contract as well as transport 

logistics, are backed by logistics services, consultancy 

and an extensive portfolio of logistics real estate. The 

combination of efficient terminals, high-performance 

transport systems and comprehensive logistics services 

focuses on the optimal functioning of the logistics process 

chain. The activities of HHLA companies benefit from a 

knock-on effect: should HHLA’s rail affiliate METRANS 

operate successfully in the Czech Republic, for example, 

then rise in throughput follows for both HHLA container 

terminals in Hamburg and HHLA’s service and logistics 

companies. With the expansion of its new inland terminal 

in Dunajska Streda, Slovakia, near the Hungarian bor- 

der, METRANS has further improved the link between the 

markets of South-East Europe and the overseas port of 

Hamburg. If HHLA container terminals chalk up through- 

put records, then the companies in HHLA’s hinterland 

network benefit. 

This strengthens the momentum behind the volume 

trend in the divisions concerned. In addition, vertical in- 

tegration of operations assists optimisation of the re- 

spective processes – at container terminals and transport 

companies, for example – also boosting performance 

of the interfaces. Here again, the process is two-way: 

regular formation of block trains at a single terminal, as 

for shuttle traffic between CTA and the METRANS ter- 

minal in Prague, for instance, is only feasible thanks to 

increases in cargo volume at the handling facilities. If 

such block trains are handled with maximum efficiency, 

then lay times for containers at the terminal and for con- 

tainer trains in the Port of Hamburg can be reduced. Both 

spin-offs boost capacity and reduce costs. 

What is crucial is the performance of the entire sys- 

tem. With farsighted investment programmes, the use of 

innovative technologies, as well as a body of staff notable 

for all-round know-how and commitment to performing, 

VERTICALLY ALONG THE TRANSPORT CHAIN: FROM DUNAJSKA STREDA TO BURCHARDKAI 

Departure: At the terminal in Dunajska 

Streda, Slovakia. 

En route: With the shuttle train to 

Prague. 

Storage: Short break at the 

METRANS Terminal in Prague.

HHLA contributes in a special way to Hamburg’s success 

as a logistics hub. In the process, HHLA intermeshes 

various client-specific divisional strategies, to be ex- 

plained in the following chapters, into an integrated port- 

folio of services. This strengthens its competitive posi- 

tion and opens up further opportunities for growth. The 

well-known “SCI-Logistikbarometer” newsletter regularly 

applauds the Hamburg logistics hub as being “the most 

dynamic base for logistics activities” in Germany. 

FURThER EXPaNSION OF ThE lOGISTICS SYSTEM 

The sustained momentum of growth in recent years in- 

volves a considerable challenge for all players. Thanks 

to the farsighted investments of the port industry and the 

state, Hamburg as a base has so far been well able to 

hold its own. Yet the demands of the coming years are 

enormous, even more so since current growth rates are 

once again outstripping forecasts. Politicians and busi- 

nesses have recognised the signs of the times. The entire 

logistics system of the Hamburg hub must be rapidly and 

flexibly expanded. So HHLA has once again topped up 

its ambitious investment programme. After 117 million 

euros in financial year 2005, a further 205 million euros 

were invested in 2006. Current planning provides for a 

total investment volume of 1.2 billion euros for the period 

from 2007 onwards. With this programme, HHLA aims to 

Onwards: On special railcars to 

Hamburg. 

Cargo handling: On-dock rail terminal 

at Burchardkai. 

STRaTEGY, MaRKET ENVIRONMENT aND POSITIONING OF hhla 

double annual capacity of its Hamburg container ter- 

minals to more than 12 million TEU, in addition further 

strengthening its hinterland networks as well as extend- 

ing its logistics activities. This expansion of superstruc- 

ture and hinterland connections will be flanked by a 

programme of investment, also substantially increased, 

in expanding infrastructure in the Port of Hamburg: the 

Free and Hanseatic City of Hamburg aims to invest about 

three billion euros by 2015. 

The Federal government is meanwhile also accord- 

ing top priority to expansion of infrastructure at the Ger- 

man seaports. The current national outline investment 

programme makes provision for the investment of 5.1 bil- 

lion euros in improving links with German seaports. This 

heading covers several such crucial projects for Hamburg 

as a location as the deepening of the Elbe, construction 

of what is known as the Y-rail network intended to com- 

bine southbound rail traffic from Hamburg and Bremen, 

and construction work on the Middle and Upper Elbe. 

Yet expansion of infrastructure alone will not suffice 

to allow upcoming challenges to be surmounted. Infra- 

structure must be exploited more intelligently and more ef- 

ficiently, and better and more evenly utilised. Many HHLA 

companies now already offer their services on a 24-hour 

a day basis, seven days a week. HHLA accordingly sup- 

ports “24/7”, a logistics sector project aiming to keep all 

the links in the logistics chain moving continuously. 

Containership: Loaded for the voyage 

overseas. 

19


hhla 

hambURgER hafEN UNd 

lOgisTik akTiENgEsEllschafT 

cONTaiNER iNTERmOdal 

CTT GmbH (100 %) 

cENTRal dEPaRTmENTs 

PROCUREMENT/MATERIALS MANAGEMENT 

fINANCE 

INfORMATION SySTEMS 

CORPORATE CONTROLLING 

HUMAN RESOURCES MANAGEMENT 

CORPORATE COMMUNICATIONS 

HHLA Container Terminals GmbH 100 % HHLA Intermodal GmbH 100 % 

CTA GmbH (74.9 %) 

SCA GmbH (74.9 %) KTH GmbH (37.5 %) 

CTA Besitz-GmbH (74.9 %) 

CTB GmbH 100 % 

SCB GmbH (100 %) 

CTT Besitz GmbH (100 %) Rosshafen GmbH (100 %) 

HCCR GmbH (100 %) 

LZU GmbH (65 %) 

UNIKAI Hafenbetrieb GmbH (100 %) 

CuxPort GmbH (25.1 %) 

Cuxcargo Hafenbetrieb GmbH & Co. KG 50 % 

Cuxcargo Hafenbetrieb Verwaltungs-GmbH 50 % 

DHU GmbH 23.1 % (17.3 %) 

SC HPC Ukraina (100 %) 

METRANS a.s. (50.1 %) 

METRANS (Deutschland) GmbH (50.1 %) 

METRANS (Danube) a.s. (50.1 %) 

METRANS (Danubia) Kft. (50.1 %) 

METRANS (Moravia) a.s. (50.1 %) 

METRANS Adria D.O.O. (50.1 %) 

POLZUG Intermodal GmbH (33.3 %) 

POLZUG Intermodal Polska sp.zo.o. (33.3 %) 

TFG Transfracht Internationale GmbH & Co. KG (50 %) 

Transfracht Verwaltungs-GmbH (50 %) 

ctd GmbH (100 %) 

combisped GmbH (100 %) 

CTL Container Terminal Lübeck GmbH (100 %) 

HHLA Intermodal Verwaltung GmbH 100 % 

Silk Road Express Georgia LLC (24.9 %)

sTaff UNiTs 

WORK SAfETy 

LEGAL AND INSURANCE 

INTERNAL AUDITING 

CORPORATE DEVELOPMENT 

lOgisTics REal EsTaTE 

Frucht- und Kühl-Zentrum GmbH 51 % 

Ulrich Stein GmbH 51 % 

UNIKAI L&S GmbH 100 % 

ARS-UNIKAI GmbH (50 %) 

Hansaport GmbH 49 % 

HHLA Rhenus Logistics GmbH 51 % 

HHLA Rhenus Logistics Altenwerder GmbH & Co. KG 49 % 

HHLA Rhenus Logistics Altenwerder Verwaltungsges. mbh 49.1 % 

HPC GmbH 100 % 

Uniconsult GmbH (100 %) HPTI GmbH (100 %) 

PERcENTagE Of shaREs hEld 

All figures represent the calculated share held by HHLA (AG). figures in 

parentheses = indirect shareholding, figures without parentheses = direct 

shareholding. 

lisT Of shaREhOldiNgs (as aT 31sT dEcEmbER 2006) 

GHL 1 GmbH 100 % 

GHL 2 GmbH 100 % 

GHL Block D GmbH 100 % 

GHL Bei St. Annen GmbH 100 % 

GHL Block T GmbH 100 % 

FMH GmbH 100 % 

OThER cOmPaNiEs NOT assigNEd TO a sPEcific diVisiON 

HHLA-Personal-Service GmbH 100 % 

“CAP SAN DIEGO” Betriebsgesellschaft mbH 33.3 % 

Egon Wenk Umschlag- und Logisticgesellschaft mbH (100 %) 

21

container 

hhla Container terminal altenwerder Control Center.


REaPING SUCCESS 

WITh hIGh TECh 

HHLA container terminals are mastering the fastest surge in growth in their history and 

at the same time further expanding their facilities. 

The “NYK Sirius” cast off from the quay at HHLA Container 

Terminal Altenwerder (CTA) in Hamburg on June 27th 2006. 

Just 19 hours had elapsed since her arrival and in that time 

2,717 containers had been handled. CTA had set a new 

record with 143 moves – meaning that an average of 143 

containers per hour had been shifted. That is an absolutely 

peak figure for the sector. 

Gratifying moments such as these have become by 

no means rare at HHLA’s latest container terminal just 

recently. A very short time after entering service in sum- 

mer 2002, the facility had exceeded expectations. With 

the ambitious technical system specially developed for 

CTA, that could by no means be taken for granted. Large 

container terminals are highly complex operations that 

normally need several years to develop and fully exploit 

their potential. 

The technical concept behind CTA proved itself within 

a minimum amount of time. With its continuous optimi- 

sations, it is playing a leading role in mastering dynamic 

growth in the Port of Hamburg’s container throughput. 

Once forecast to eventually handle a capacity of 1.9 million 

standard containers (TEU), last year it achieved growth of 

around 19 percent to 2.1 million TEU, and when completed 

will be capable of handling more than three million TEU 

per year. 

The trend was at least as satisfactory at Burchardkai, 

HHLA’s largest and oldest container terminal. For a long 

time maximum capacity here was seen as being 2.5 million 

TEU. Yet this figure was already far outstripped in 2006: 

with throughput growth of more than 13 percent, HHLA 

Container Terminal Burchardkai (CTB) moved 2.9 million 

TEU – and this despite a terminal rebuilding and upgrading 

programme running in parallel. 

HHLA Container Terminal Tollerort (CTT) also re- 

ported a steep increase, with approximately 18 percent 

growth to more than 1 million TEU, reaching its present 

capacity ceiling in 2006. CTT primarily has larger ships call- 

ing at the terminal on two East Asia services to thank for its 

growth. For this reason, too, in the coming years terminal 

capacity will be gradually doubled to over 2 million TEU. 

HHLA know-how also proved itself far away from the 

Port of Hamburg. In fiscal 2006, the Sea Commercial Port 

of Odessa boosted throughput by 38 percent to 395,000 

TEU. The terminal has already been managed since 2001 

hhla Container Throughput Trend** 

IN MILLIONS OF TEU 

2006 2005 2004 2006/05 

Throughput CTB 2.9 2.6 2.6 13.2 % 

Throughput CTA 2.1 1.8 1.3 19.1 % 

Throughput CTT 1.0 0.9 0.7 18.4 % 

Throughput others* 0.1 0.0 20.0 % 

Throughput hhla hamburg 6.1 5.3 4.6 16.1 % 

Throughput HHLA CT Lübeck 0.1

y HPC Ukraina, which also 

took over responsibility for 

operations on January 1st 

2005. HPC Ukraina is a 

wholly owned subsidiary of 

HHLA’s consultancy com- 

pany HPC Hamburg Port 

Consulting GmbH. 

STRaTEGY PaYS OFF 

With overall growth exceed- 

ing 18 percent and growth 

of 16 percent for the con- 

tainer terminals in the Port 

of Hamburg, the compa- 

nies in HHLA’s Container 

Division again performed considerably better than their 

market environment. This success is also the result of the 

Division’s customer-oriented approach. The following are 

some of the main factors here: 

Focus on growth. Any company aiming to exploit cur- 

rent growth opportunities in container transport must 

offer the capacities requested at the right time. Here 

HHLA relies on state-of-the-art technologies, with the 

aid of which both very rapid handling and capacity in- 

creases are attainable even in restricted spaces. HHLA 

container terminals in the Port of Hamburg will therefore 

be in a position to gradually double capacities in coming 

years. 

Client neutrality. Today 18 of the 20 world’s largest 

container shipping lines are clients at HHLA’s Hamburg 

terminals. 

Reliability. With its three large container terminals in 

the Port of Hamburg, specialized know-how and com- 

mitment along the entire transport chain right into the 

hinterland, HHLA offers its customers tremendous reli- 

ability and high flexibility. These two factors are of special 

importance for customers during the current boom. 

Service. With container maintenance and repair as well 

as comprehensive management for empty containers, 

HHLA’s HCCR hamburger Container- und Chassis- 

CONTaINER 

CTA posted a new handling record with the container ship “NYK Sirius”: 2,717 boxes in 19 hours. 

Reparatur and LZU leercontainer Zentrum Unikai 

subsidiaries offer vital supporting services contributing 

to Hamburg’s high quality as a container hub. 

RaPID FURThER EXPaNSION OF CaPaCITIES 

Since 1998, Hamburg’s container growth rate has outpaced 

the world container trend. Two current forecasts see this 

trend as being maintained in the coming years. On the 

basis of a 2004 survey by the Institute of Shipping Eco- 

nomics and Logistics (ISL) in Bremen, the Hamburg senate 

reckons with a growth curve of more than nine percent 

annually to 18 million TEU in 2015. That corresponds to a 

doubling of throughput compared to 2006 or six times the 

amount handled compared to 1995. Commissioned by the 

Federal Ministry for transport, building and urban develop- 

ment, in April 2007 a sea traffic forecast (2004–2025) by 

Essen-based PLANCO consultancy predicted average an- 

nual growth of 6.7 percent for Hamburg. On that basis, the 

annual handling quantity in the Port of Hamburg would 

rise to more than 23 million TEU by 2025. This would be 

the equivalent of almost the entire quantity of conainers 

handled altogether in the North European ports between 

Antwerp and Hamburg in 2004. 

However much growth rate assumptions differ, both 

forecasts express the view that Hamburg will grow dis- 

25


COMPACT, FAST AND EFFECTIVE 

hhla Container Terminal altenwerder in hamburg is setting benchmarks 

for the future of container handling. 

High tech wherever you look: even five years after 

going into service, HHLA Container Terminal Alten- 

werder (CTA) is the most modern facility of its kind 

worldwide. Container handling on the compact site 

here is automated to a high degree – with semi-auto- 

matic container gantry cranes on the waterside and 

unmanned IT-controlled vehicles for moving contain- 

ers between cranes and storage. The core of the sys- 

tem comprises the 26 enormous storage blocks, each 

with space for more than 1,500 TEU. The blocks are 

each served by two gantry cranes that not only take 

over automated storage but also stack more densely 

and higher than conventional equipment – a tremen- 

proportionately by comparison with competing ports in the 

North Range. The Elbe metropolis’ favourable geographical 

location for traffic – i.e., its proximity to the growth markets 

of Eastern Europe and Hamburg’s traditional strengths on 

the Far East trade routes – is advanced as the decisive rea- 

son. To be equipped to exploit these opportunities, in 2004 

dous space saving. The CTA system is notable for its 

high-speed handling and outstanding effectiveness. 

Peak figures are achieved here on such important key 

performance indicators as space productivity, quay 

productivity and staff productivity. These exceed those 

of conventional terminals by a factor of between 1.5 

and 2. CTA’s proven know-how is now being utilized 

for HHLA’s largest current project, the expansion of 

HHLA Container Terminal Burchardkai. CTA has ex- 

ceeded the expectations of its planners; the boldness 

involved in combining these innovative terminal tech- 

nology modules in a total system for the first time has 

been rewarded. 

A container’s path (red) from the ship via the automated storage block to the truck or rail terminal. 

HHLA started implementing a programme to double its con- 

tainer handling capacities. With these measures HHLA aims 

to handle more than 12 million TEU per year. This boost to 

capacity will be accompanied by further modernization and 

optimization measures to speed up handling and improve 

links with the hinterland networks.

INTELLIGENT EXPANSION 

hhla Container Terminal Burchardkai is being fundamentally modernized and its capacity 

doubled during business as usual. 

“Open-heart surgery” is how managing directors 

Christian Blauert and Peter Schwencke describe the 

600-million-euro project for the upgrading and expan- 

sion of HHLA Container Terminal Burchardkai (CTB). 

Even this understates the situation, because the heart 

of CTB continues to beat during expansion, even func- 

tioning at full load. With 2.9 million TEU, in 2006 CTB 

turned in a record performance even though a com- 

plete new on-dock rail container terminal was erected 

on the facility at the same time. 

The basic area has not been enlarged, remain- 

ing at around 1.6 million square metres. Yet by 2012, 

more than 5.2 million TEU could already be handled 

here – twice as many as in 2005. That will then sub- 

stantially exceed total throughput of all the container 

terminals of New York/New Jersey, the largest port on 

the US east coast. Burchardkai is also Hamburg’s old- 

est container terminal. In 1968, the “American Lancer” 

was the first full containership to call here. Since then 

CTB has repeatedly been adapted to meet the latest 

technical and operative requirements. Today, CTB is 

the largest container terminal in the Port of Hamburg, 

North Sea 

Empty 

Container Storage Warehouse 

New on-dock Rail Terminal (since Sept. 2006) 

Former on-dock Rail Terminal 

Yard 

CONTaINER 

handling around one-third of total container volume. 

The secret of the CTB upgrading project is intelligent 

management of space coupled with high-tech inno- 

vations already proven at CTA: 

A new terminal layout makes ideal use of existing 

areas. 

A “rolling building site” ensures constant availability 

of the areas required for current operations. 

The container storage blocks based on the one at 

CTA, but in a further improved version, have been re- 

modelled as a block storage system using automatic 

stacking cranes. Storage capacity will be more than 

doubled to around 70,000 TEU. 

The use of advanced Super-Post-Panmax container 

gantry cranes on strengthened quay walls leads 

to a substantial increase in waterside handling ca- 

pacity. 

CTB CTB 

On the landside, truck and rail handling facilities are 

being expanded and optimized. 

Realization of the entire concept involves a quantum 

leap in space efficiency and performance. 

North Sea 

Yard 

Empty 

Container Storage Warehouse 

on-dock Rail Terminal 

Truck Clearance 

RMG Block 

27

28 hhla aNNUal REPORT 2006 INTERmOdal 29 

INTERmOdal 

INaUGURaTION OF ThE RaIl TERmINal aT bURchaRdkaI.


hINTERlaND BOOM 

HHLA’s intermodal companies are achieving impressive growth 

– and are systematically taking expansion of their network even further. 

The dark-red bulk of the veteran V200 locomotive glides 

slowly across the points at the new on-dock rail terminal 

at HHLA Container Terminal Burchardkai (CTB). Hitched 

on behind it are eight railcars carrying containers of 1960s 

design. Without any squeaking whatever, the diesel engine 

stops in front of the party tent. 48 years earlier, another 

V200 hauled “Delphin”, the first container train, into the 

terminal on Burchardkai. Karin Roth, undersecretary in the 

Federal Ministry of transport, bridged the gap between 

then and now, giving an order by walkie-talkie for a con- 

tainer to be lifted from the sixties train. This is how the new 

on-dock rail terminal at Burchardkai was officially inaug- 

urated on September 26th 2006. 

With its eight tracks, each over 700 metres long, this 

is not only one of the largest rail transhipment facilities in 

Europe, but the first module to be completed at CTB dur- 

ing its fundamental upgrading. When completed, it will be 

capable of moving more than one million standard contain- 

ers (TEU) per year here on eleven tracks, corresponding to 

70 percent of the total volume currently handled by all the 

container terminals in the Port of Hamburg. The new rail 

hhla Intermodal: Volumes Transported 

IN THOUSANDS OF TEU 

terminal is a splendid example of HHLA’s strategy of inte- 

grated development. Expansion of handling capacity here 

goes in tandem with the expansion of the most important 

interface for hinterland traffic, bringing with it growth for 

HHLA Group’s intermodal companies. 

2006 2005 2004 2006/05 

Transfracht 869 779 745 11.6 % 

METRANS 245 222 193 10.4 % 

Polzug 120 75 67 60.0 % 

combisped 111 59 43 79.9 % 

CTD 180 150 94 20.0 % 

Total 1,525 1,285 1,142 18.7 % 

With a surge of almost 19 percent in total volume to 

more than 1.5 million TEU, the pace of growth in HHLA’s 

Intermodal Division actually outstripped the growth rate 

at its Hamburg container terminals. In 2006, all HHLA’s 

intermodal companies again succeeded in satisfying their 

clients’ rapidly increasing demand for transport. 

INTEllIGENT NETWORKING OF DIFFERENT CaRRIERS 

Hamburg is today the largest rail container transhipment 

center in Europe, with annual throughput of 1.5 million TEU. 

One in eight of all railcars in Germany roll over the tracks 

of the port railway. More than 70 percent of the long-haul 

traffic on land is transported by rail, a high proportion un- 

challenged anywhere in Europe. If its feedership network 

in the Baltic and its excellent road links are included, then

Hamburg possesses a complete trimodal transport range 

– by water, road and rail. 

HHLA’s Intermodal Division makes a substantial con- 

tribution here with its network of transport solutions for 

container transport into the port’s hinterland. With its rail 

affiliates Transfracht, METRANS and Polzug, these are fo- 

cused on rail transport. Over medium and long distances, 

the companies offer an area-wide continental network of 

destinations in Central and Eastern Europe and all three 

are market leaders for services to German seaports: Trans- 

fracht in cross-border rail container traffic with Germany, 

Austria and Switzerland; METRANS in the Czech Republic, 

Slovakia and Hungary; Polzug in Poland and the Common- 

wealth of Independent States (CIS). Each company offers 

a regional network with independent specialists. 

In linking the hinterland to the Port of Hamburg, HHLA 

relies on innovation. One example is the Hamburg-Lübeck 

landbridge, interlinking the entire Baltic region closely with 

the terminals in Hamburg. HHLA subsidiary combisped’s 

attractive rapid shuttle-train link connects Container Ter- 

minal Lübeck (CTL) directly with the Hamburg quay walls. 

From CTL, combisped operates feedership links to St. 

Petersburg and the Finnish ports of Kotka and Hamina. 

Availability of this system relieves and supplements the 

Hamburg-Baltic link via the Kiel Canal and saves two days 

of transit time. Around one third of overseas containers 

handled in Hamburg are transhipped between large con- 

tainerships and feederships. 

The transport range is completed by container 

trucking. HHLA Intermodal rounds off its range along the 

transport chain, for example, by offering a door-to-door 

service. CTD Container-Transport-Dienst GmbH covers 

the surrounding area of the Hamburg metropolitan region 

by road. In addition, CTD offers transport of special and 

hazardous cargoes of all kinds, and in 2006, also achieved 

steep growth in long-haul trucking. 

SYNERGIES alONG ThE TRaNSPORT ChaIN 

Not only commercially but also ecologically, the future 

belongs to intermodal transport chains using carriers of 

various types. Transport combining the ocean-going ship, 

inland rail and a container truck for the final mile, optimally 

INTERMODal 

DIRECT SERVICES TO 

SWITZERLAND 

With an overnight hop, TFG Transfracht rail com- 

pany connects the container terminals in ham- 

burg and Bremerhaven with Switzerland. 

In December 2006, Eastern Switzerland grew closer to 

the German seaports. SwissContainerExpress (SCE), 

the youngest offshoot of TFG Transfracht Internation- 

al’s range of quality trains, has been providing a direct 

connection to the quay walls at the terminals in Ham- 

burg and Bremerhaven via the Upper Rhine terminal 

at Rekingen, Zurich. This has considerably extended 

TFG’s network in the direction of Switzerland, and al- 

most doubled the services on offer. 

With its scheduled services at regular intervals, 

SwissContainerExpress provides six departures for 

imports and exports per week from the Rekingen 

terminal. The hinterland terminal in Basle handles 12 

weekly import trains and 11 for exports – overnight and 

completely independent of high or low water. Comple- 

mented by comprehensive services, such as doorstep 

delivery by road, consignment tracking and tracing, 

plus depot and empty container services, SCE consti- 

tutes a high-value range of services. It combines the 

specific strengths of various modes of transport into a 

high performance intermodal transport chain. 

Loading trains at the terminal in Rekingen, Zurich. 

31


HUB FOR 

SOUTH-EAST EUROPE 

30 million euros invested by METRaNS rail com- 

pany in Dunajska Streda. 

Ideal conditions: Terminal Dunajska Streda. 

HHLA subsidiary METRANS’ recipe for success is 

just as convincing as it is simple: shuttle trains link the 

container terminals in the German overseas ports of 

Hamburg and Bremerhaven with the major METRANS 

terminal at Uhrineves in Prague. The Czech Republic, 

Slovakia and Hungary are served from this inland hub. 

Two further hubs, in Zlin for Moravia and Northern Slo- 

vakia, as well as in Dunajska Streda for Southern Slo- 

vakia and Hungary, perfect this intermodal network. 

In 2006, METRANS invested more than 30 million 

euros in the upgrading of Dunajska Streda. 120,000 

TEU were handled at this Slovak inland terminal near 

the Hungarian border in 2006. Now equipped with five 

tracks and two modern transtainer gantry cranes, in 

the future this rail facility will be able to handle more 

than 500,000 TEU. The terminal design of Dunajska 

Streda not only provides excellent conditions for 

container handling. Covering an area of in excess 

of 70,000 square metres, there is also ample space 

for depots and container handling. Further sites are 

in reserve for establishing complementary logistics 

services. The potential is there for developing a mod- 

ern goods transport and logistics center. As a special 

characteristic, METRANS even provides direct access 

to the Adriatic coast via Dunajska Streda and with it to 

the Mediterranean; shuttle trains link Koper in Slovenia 

with the terminal. 

exploits the strengths of the respective means of transport 

and creates an efficient, economical and sustainable trans- 

port chain. HHLA’s strategic positioning, with its vertical 

integration along the transport chain, enables this system’s 

advantages to be fully exploited. Processes can be effect- 

ively intermeshed, interfaces optimized, weak points iden- 

tified and eliminated. Especially during the current boom 

phase in volumes transported, bottlenecks can be rapidly 

eliminated or even be avoided with foresight plus the ap- 

propriate measures. HHLA systematically uses here all the 

extensive know-how to be found within its four divisions. 

ON ThE MOVE ON RaIl, ROaD aND ThE BalTIC 

Nevertheless, in the financial year 2006 the success of 

HHLA’s intermodal companies was also rooted in specific 

features of the separate markets. That was impressively 

evident with Polzug, for example. Its 60 percent surge in 

growth in 2006 to 120,000 TEU is the direct result of the 

progressive integration of the Polish national economy 

into global production networks. So in the year 2006, Pol- 

zug profited especially from investments by multinational 

groups from Asia and the USA. Both the automotive indus- 

try and cor-porations in the electronics home entertainment 

industry put up new factories in Poland, today the largest 

manufacturer of flat (plasma) screens in Europe. Polzug, by 

providing reliable transportation, made an important con- 

tribution here. An almost 90 percent surge in growth was 

reported by combisped. The Hamburg-Lübeck landbridge 

combines the ocean-going ship via rail or road with the 

Growing volume: Polzug block container trains.

Directly connected with Hamburg: Container Terminal Lübeck. 

feedership serving booming markets on the Baltic, linking 

growth in the Port of Hamburg with steeply growing de- 

mand in Russia and Finland. 

TFG Transfracht, HHLA Group’s rail company with 

the heaviest traffic, primarily grew strongly in fiscal 2006 

on the basis of its core product: networked performance 

with the AlbatrosExpress, AustriaContainerExpress and 

SwissContainerExpress quality trains was up by around 12 

percent. With double-digit growth in volume transported, in 

2006 METRaNS once again consolidated Hamburg’s lead- 

ing position as “Gateway to the World” for the Czech Re- 

public, Hungary and Slovakia, at the same time laying the 

foundations for further growth with investments in terminals 

and its own railcars. HHLA’s CTD Container-Transport- 

Dienst subsidiary once again made outstanding progress, 

with the transport volume of 180,000 TEU reached in 2006 

corresponding to a growth rate of 20 percent. The ad- 

vanced, IT-based movement control system and invest- 

ments in its own vehicle fleet are paying off. CTD was able 

not only to reinforce its strong position in Hamburg, but 

also to book strong growth in long-haul traffic. 

NETWORK PROGRaMMED FOR GROWTh 

HHLA Intermodal’s companies also wish to systematically 

maintain their growth course in the future. Here the equally 

sustained and dynamic trend in volumes represents a tre- 

mendous challenge for the port plus the hinterland network 

as one complete system. Surmounting this successfully 

will call for coordinated action from the public purse and 

INTERMODal 

the logistics industry. HHLA Intermodal representatives 

therefore play an active part in various projects and bodies, 

one example being the project “Rail handling in the Port of 

Hamburg in 2015” that aims to create the prerequisites for 

a tripling of volume in container rail traffic. 

However, growth activities by HHLA Intermodal’s 

companies are focused on specific strategies and in- 

vestment projects in their respective transport markets. 

Polzug and METRANS are relying primarily on terminal 

expansion and a strengthening of block train and shuttle 

train systems. These will be loaded and unloaded during 

previously defined handling “windows” at the container 

terminals in the Port of Hamburg. In addition, METRANS 

is again adding to its rolling stock. The railcars designed 

especially for transporting containers produce substantial 

cost benefits. Transfracht will further expand its network 

performance by offering more trains and expanding its 

door-to-door services. combisped will cater for strong 

demand in the Baltic region by further developing its range 

of transport services. The road transport company CTD 

will expand its business model more towards long-haul 

traffic. At the beginning of 2007, for instance, the com- 

pany opened a branch in Bremen. With their differentiated 

strategies, their investments and expansion programmes, 

as well as with the optimization of interfaces with HHLA 

container terminals, the companies in HHLA’s Inter- 

modal Division are extremely well equipped to continue 

the growth of recent years. 

CTD with its own chassis is increasingly operating longhaul 

transport. 

33

34 hhla aNNUal REPORT 2006 INTERmOdal 35 

hhla’S hINTERlaNd 

NETWORK 

WESTERN 

EUROPE 

North Sea 

NETHERLANDS 

Rotterdam 

Basel 

Frankfurt kfurt urt a.M. 

a.M. 

M. M. 

Mannheim eim 

Bremerhaven 

Bremerhaven 

Dortmund ortmund 

Cologne ne 

Kornwestheim heim 

Stuttgart 

GERmaNY RmaNY RmaNY 

Ulm m 

Zurich/Rekingen R ki gen 

SWITZERlaNd aNd 

Nuremberg 

Nurem Nuremberg 

Nurem Nure berg 

SCANDINAVIA 

Lübeck 

hamburg g 

Leipzig Leipzig 

Regensburg 

RR 

egensburg 

Augsburg A AAugsburg 

Munich 

CZECh 

REP. REP. 

Prague Pr P Prague 

aUSTRIa 

SlOVENIa 

Gdánsk 

Baltic 

Sea 

POlaNd POlaN POlaNd 

Berlin 

Poznan/Gadki 

Poznan/Gad 

Poznan/Gadki 

Dresden Dres Dresden 

Linz 

Salzburg 

Koper 

Vienna Vienna 

Zlin/Lipa 

Gyor 

Mlawa Mlawa 

Dunajska 

Streda 

Slawkow Sla Slawkow 

Gliwize Gliw Gliwize 

SlOVaKIa 

SlO 

hUNGaRY 

Pruszkow/ 

Warsaw 

FINLAND 

Hamina 

Kotka Kot 

UKRaINE 

SOUTH-EAST EUROPE 

St. Petersburg 

Kiev 

mOldaVIa 

The map shows the supranational network of HHLA Intermodal Division affiliates. The five companies (symbolized by 

different coloured arrows) serve the hinterland of the German seaports with their transport solutions for each and every 

container. Regular services or branches are to be found in all those countries named on the map. Individual container 

transportation deep into Central Asia is organized as required. 

RUSSIA 

Black Sea 

COMBISPED 

CTD 

TRANSFRACHT 

METRANS 

POLZUG 

CAUCASUS 

MID-ASIA 

GEORGIA 

Poti 

Caspian Sea 

Baku 

AZERBAIJAN

36 hhla aNNUal REPORT 2006 lOGISTICS 37 

logistiCs 

lOGISTICS CENTER alTENwERdER.


lOGISTICS aCTIVITIES ON 

COURSE FOR EXPaNSION 

HHLA’s Logistics Division strongly boosted its performance and turnover – on special cargo 

handling, logistics services and international consultancy. 

With an intensely colourful dance by Chinese dragons, 

a breathtakingly precise ballet by forklifts and finally a 

brilliant shower of confetti, Logistikzentrum Altenwerder 

(LZA) was ceremonially opened on September 20th 2006. 

HHLA Rhenus Logistics is the part-owner and operator 

of this joint venture by HHLA and Rhenus AG. Inaugur- 

ation of a modern logistics facility with multifunctional and 

highly flexible technology to fulfil all tasks in storage and 

contract logistics was not the only cause for celebration, 

however. 

The overall concept here was also praiseworthy. A 

value-added logistics chain stretching from quay handling 

through the logistics center to a direct connection to the 

intermodal network for hinterland transport, all activities 

from a single source and setting benchmarks. LZA is a 

close neighbour of HHLA Container Terminal Altenwerder 

(CTA) and directly adjacent to a modern facility for com- 

bined freight traffic. 

DIVERSITY FOR aN aTTRaCTIVE lOCaTION 

The opening of LZA represents one of a number of large- 

scale and smaller expansion projects with which the com- 

panies in HHLA’s Logistics Division last year responded 

to continuously growing demand from their customers. 

This growth is also reflected in the business trend for 

2006. With turnover up by 15 percent, HHLA’s Logistics 

Division was clearly in the success lane. The basis for 

this was not least the dynamic volume trend on special 

handling: fruit handling increased by more than 26 percent 

to nearly one million tons, while vehicle throughput rose by 

almost ten percent to 130,000 units. Bulk cargo handling 

of ores and coal climbed by around eight percent to over 

14 million tons for the first time. 

HHLA’s Logistics Division encompasses an enor- 

mous variety of services: bananas for Germany and East- 

ern Europe, consultancy work for a container terminal in 

Port Elizabeth in New Jersey, ore for the steel production 

in Salzgitter, contract logistics for leading consumer goods 

manufacturers, high-end limousines for the Middle East, 

training for security personnel in the logistics sector, coal 

for North German power stations, logistics for cruise ships. 

Together, these services typify Hamburg’s quality as a uni- 

versal port, underpinning a very significant factor in the 

attractiveness of this location. 

logistics Division: Cargo Volumes 

EXAMPLES: 

2006 2005 2004 2006/05 

Unikai (vehicles x 1,000) 129 118 146 9.3 % 

Fruchtzentrum (x 1,000 tons) 982 778 727 26.2 % 

Hansaport (million tons) 14.1 13.1 12.6 7.6 %

SUCCESSFUl STRaTEGIES FOR EVERY MaRKET 

In the financial year 2006, the companies of HHLA’s Lo- 

gistics Division profited from the boom in global transport 

chains and exploited their opportunities with customized 

services for their respective markets. 

After two years of tempestuous growth, in fiscal 2006 

hhla Rhenus logistics Gmbh consolidated develop- 

ment of its business, also producing the conditions for 

further growth by opening the first section (area: 29,000 

square metres) of LZA. With its multifunctional and ex- 

tremely flexible technology, including a new storage man- 

agement system, LZA satisfies the latest requirements 

lOGISTICS 

AN OPTIMAL COMBINATION OF SUCCESS FACTORS 

In the container era, the altenwerder logistics Center networks cargo handling, transport and logistics 

services in exemplary fashion. 

In Hamburg-Altenwerder, the same success factors 

are combined in compact form that made the Port of 

Hamburg a success more than a century ago: the lat- 

est in waterside cargo handling, contract logistics in 

close proximity, and direct connections to hinterland 

transport carriers. 

Hamburg’s emergence as a world port towards 

the end of the 19th century was not least the result of 

a pioneering scheme for an integrated port, involving 

efficient cargo handling by modern cranes at quay- 

side facilities, along with an absolute novelty for those 

days, namely quayside facilities incorporating rail sid- 

ings for direct connections to the hinterland – and with 

Speicherstadt, then the world’s most modern logistics 

center, directly adjacent. 

Today, the modern interpretation of this concept 

can be admired at Altenwerder. Taken into service in 

2006, the advanced Logistics Center Altenwerder 

(LZA) run by HHLA Rhenus Logistics lies within sight 

of the container gantry cranes of HHLA’s Container 

Terminal Altenwerder. With direct access, it is being 

profile in container-related contract logistics. Generously 

dimensioned areas for traffic, incorporating its own covered 

rail link, as well as proximity to CTA, ensure optimal condi- 

tions and the best connections. 

linked via its own rail siding with the Kombi-Trans- 

europa Terminal Hamburg (KTH) and hence with the 

European rail network – while the autobahn is also 

not far off. 

hhla Frucht- und Kühlzentrum Gmbh and 

Fruchtspedition Ulrich Stein Gmbh posted strong 

growth for the financial year 2006. Total tonnage handled 

at the fruit-handling center at O’Swaldkai increased by 

204,000 tons to 982,000 tons, the great bulk consisting 

of bananas. This substantial increase in quantity enabled 

Hamburg to extend its leading position in banana logistics 

for Germany and Eastern Europe and consolidate its sec- 

ond place in Europe for banana handling after Antwerp. 

Opened in 2006: Logistikzentrum Altenwerder (LZA). 

39


OF CRUISES AND QUEENS 

Unikai operates the hamburg Cruise Center – and when necessary also welcomes cruise guests at the 

handling plant for rolling goods on the O’Swaldkai. 

A warm welcome: the ‘Astor’ cruise ship at the Hamburg Cruise Center. 

When the ‘Freedom of the Seas’ departed from Ham- 

burg on its maiden voyage on 27 April 2006, it super- 

seded the ‘Queen Mary 2’ as the biggest cruise ship 

in the world. Hamburg is a city with cruise ship fever: 

the visits of the giant luxury liners are often accom- 

panied by tens of thousands of onlookers marvelling 

at the ships entering and leaving the port, the turning 

manoeuvres and the accompanying spectacles with 

fireworks and festivities. 

HHLA’s subsidiary Unikai Lagerei- und Speditions- 

gesellschaft mbH ensures that passengers and ships 

have a pleasant stop-over. Unikai has been running the 

Hamburg Cruise Center since it opened ten years ago. 

‘The First Mile’, the bistro at the cruise-ship terminal, 

The opening of a banana ripening facility for the Edeka 

Group at O’Swaldkai considerably extended the penetra- 

tion of value-added services at the facility. 

Unikai lagerei- und Speditionsgesellschaft mbh 

also profited from booming world trade. The company 

boosted total tonnage handled at its O’Swaldkai base by 

four percent to almost 800,000 tons and company turnover 

by a double-digit percentage. 

Hamburg’s growing attractiveness for cruise ships 

also paid dividends: in 2006, Hamburg Cruise Center wel- 

comed around 44,500 more passengers than in 2005, with 

altogether 78,500 people embarking or disembarking here 

from large luxury liners. 

welcomes passengers from 

their first step on land. Unikai 

makes sure that the provision 

of food and drinking water to 

the ships runs smoothly, and 

takes care of luggage and 

passenger changes while 

adhering to international se- 

curity standards. It demon- 

strated this logistical tour de 

force no less than 67 times 

in 2006 – the number of times 

a cruise ship arrived in Hamburg – safely welcoming 

78,500 passengers to the city on the Elbe. 

Hamburg is becoming an increasingly attractive 

destination for cruise ships. In April 2006, a second, 

temporary terminal building was opened at the Cruise 

Center so that two luxury liners can arrive at the same 

time. Unikai’s association with these beautiful ships 

is continuing to develop positively as a further pillar 

of business – besides its handling business on the 

O’Swaldkai, where the ‘AIDAblu’ was also received 

on September 10th 2006. As on that day, four cruise 

ships were arriving in Hamburg at the same time, a 

red carpet was ceremoniously rolled out on the RoRo 

dock here. 

The previous year’s investments in expansion, taking 

into service a fourth unloader and the extension of coal 

storage space, enabled hansaport hafenbetriebsgesell- 

schaft mbh to report a distinct increase in tonnage calling 

at the facility, up by eight percent to 14.1 million tons. The

The all-rounder among the terminals: O’Swaldkai handled cargoes totalling 1.8 million tons in 2006. 

German market leader in coal and ore handling, this HHLA 

affiliate was therefore operating close to its capacity ceiling 

of 15 million tons. 

HHLA’s consultancy companies of the HPC Group, 

namely hPC hamburg Port Consulting along with HPC 

subsidiaries Uniconsult and hamburg Port Training In- 

stitute (HPTI) as a training operation, managed to boost 

turnover by seven percent in 2006, with growth in all sec- 

tors of their worldwide consultancy activities. The largest 

shares of turnover were generated by the following areas: 

IT development and consultancy, terminal development 

and planning, and strategy consultancy plus equipment 

engineering. 

EXPaNSION OF ThE O’SWalDKaI MUlTIFUNCTIONal 

TERMINal 

The most important expansion project for the companies 

of HHLA Logistics Division is the extension and upgrading 

of old-established O’Swaldkai, location of the fruit handling 

center and of Unikai, the specialist in vehicle logistics. With 

lOGISTICS 

cargoes totalling around 1.8 million tons being handled, this 

facility today is operating close to its capacity limit. At a cost 

of around 70 million euros, in 2007 and 2008 the terminal is 

being upgraded through improved terminal design, provid- 

ing more effective use of space, also by the expansion of 

fruit logistics with a fully automated fruit and refrigeration 

center designed to handle higher capacities with greater 

efficiency. 

Hansaport handles the largest bulk carriers. 

41

42 hhla aNNUal REPORT 2006 REal EsTaTE 43 

REAL ESTATE 

aiR wEll iN BlOck P Of sPEichERsTadT, hEadqUaRTERs Of hamBURg PORT aUThORiTy.


INTEllIGENT DEVElOPMENT 

OF PORT REal ESTaTE 

HHLA’s Real Estate Division maintained its success with a renewed increase in 

take-up rate and projects for intensifying use of logistics space. 

Glancing into the trim offices of the port planners, a visitor 

to the headquarters of the Hamburg Port Authority (HPA) 

could hardly imagine that here, for many decades, coffee 

and other high-value import cargoes were stored across 

the vast, gloomy warehouse floors. The transformation of 

yesteryear’s warehouse into the modern headquarters for 

the Hamburg port management can be seen as an example 

of the structural change being sensitively and systemat- 

ically orchestrated by HHLA. 

Erected in 1891–93 in Neo-Gothic style, the impo- 

sing Speicherblock P, with its gross floor space of around 

23,000 square metres, and a main crossbeam length of 

127 metres is located directly opposite the old quarter of 

central Hamburg and the city church of St. Katharinen. 

Extending down from the roof to the second floor, three 

large air wells now ensure bright, spacious premises. In- 

side the building, glass and steel are combined with white 

plasterwork and oak to create an uncluttered and almost 

domestic atmosphere. Around 600 staff members of the 

HPA moved here in 2006. 

The clinker ensemble of Speicherstadt, only released 

from freeport status in 2003, is increasingly changing into a 

vibrant urban quarter where the traditional and the modern 

are blended to create a new milieu. As the essential link 

between Hamburg city center and the HafenCity devel- 

opment project, it is the centerpiece of urban development 

in Hamburg, making it a major contribution to opening the 

city towards the water. 

PROFITaBlE PORTFOlIO DEVElOPMENT 

In fiscal 2006, the Hamburg office and logistics real estate 

market developed positively. The still relatively high empty 

space quotient of 8 percent for office space, correspon- 

ding to around 1 million square metres of empty space, 

contrasted with growing space turnover and a slightly rising 

rent level, particularly for qualitatively high-end properties 

in preferred locations. In 2006, the dynamic development 

of the Port of Hamburg made itself noticeable in sustained 

heavy demand for logistics real estate. 

A glimpse of the interior of the modernized Speicherblock P.

With its three operational units Logistics, Speicherstadt 

(Warehouse City) and Elbe riverbank, HHLA’s Real Estate 

Division is excellently positioned in this market environ- 

ment. 

The most important unit of HHLA’s real estate is its 

logistics real estate in the Port of Hamburg. With 800,000 

square metres of logistics open space and 390,000 

square metres of covered logistics space, HHLA is the mar- 

ket leader in the Port of Hamburg. 

With over 300,000 square metres, the Speicherstadt, for 

which application for recognition as part of World Cul- 

tural Heritage is being made to UNESCO, is today one 

of the most attractive Hamburg locations for office real 

estate in Hamburg. 

The northern bank of the Elbe also counts as one the 

preferred locations in the Hanseatic City. Here, HHLA is 

represented by attractive office, trading and commercial 

premises in what is known as the “String of Pearls” along 

the River Elbe. 

In 2006, HHLA’s Real Estate Division was able to exploit 

the good market environment to achieve a distinct im- 

provement in total turnover and results. In all segments, 

there are already limits to any feasible further increase in 

letting quotient. For logistics real estate in the port, for 

instance, it is meanwhile impossible to satisfy the current 

demand overhang for shed and warehouse space. 

GROWTh POTENTIal WITh INTENSIVE USE OF SPaCE 

The foundation for the dynamic trend in results lies in HHLA 

Real Estate Division’s differentiated strategies, each ad- 

apted to cater for its respective market segment. For the 

northern bank of the Elbe and for Speicherstadt, this invol- 

ves sustained, long-term, market-oriented development of 

HHLA’s own portfolio. This approach is particularly evident 

in Speicherstadt: here the separate warehouse blocks are 

being developed in dialogue with current and potential 

tenants to meet their particular requirements. 

The separate projects are incorporated in an overall 

strategy that is sensitively developing today’s spectrum of 

uses, while taking into account long-established structures 

REal ESTaTE 

SCOPE FOR IDEAS 

as part of hamburg architecture Summer 2006, 

hhla opened up Speicherstadt for some 

student ideas. 

Last year, student teams from Hamburg and Bielefeld 

presented ideas for the treatment of the protected his- 

toric buildings of Hamburg’s Speicherstadt. They had 

been invited by HHLA, which participated in Hamburg 

Architecture Summer 2006 with their contributions. As its 

subject, the team from Hamburg’s School of Fine Arts, 

led by Professor Christiane Sörensen, opted for Zoll- 

kanal, which until 2003 formed the boundary between 

the Freeport and the city center. Gilded diamond-shaped 

bricks on the sheet-piling walls of the canal reawakened 

memories of the former boundary. 

Under the motto “Scope for New Ideas”, students 

from Bielefeld Polytechnic, led by Professor Rouli Le- 

catsa, conducted a competition for ideas with the aim 

of sketching innovative uses for warehouses. The “Port 

Souk” project outline transformed a typical warehouse 

block into a market hall, combining storage spaces with 

offices, having an exotic garden bloom in the loft and 

opening up prospects accommodation for traders. The 

“Warehouse X” proposal featured a marketplace of the 

arts, providing for studios, showrooms, a museum and 

a hotel. Here, an open-air courtyard and pillar-form mir- 

rors bring daylight into the interior of the warehouse. 

Even if these ambitious ideas cannot be directly 

implemented, they provide creative stimuli for the further 

use of Speicherstadt. 

45


Individual expansion for such clients as Warner Music. HHLA uses offices located in Speicherblock U. 

and such traditional activities as storage. Speicherstadt 

remains the world’s most important entrepôt for trading 

in oriental carpets, for instance. New, by contrast, is the 

arrival in the quarter of textiles and fashion: in December 

2006, several fashion houses opened new showrooms for 

their collections at the same time. 

The title “Portfolio development” also fits HHLA’s 

strategy for its logistics real estate. Here the aim is better 

and more intensive use of available locations in the circ- 

umstances brought about by sustained, headlong growth. 

This strategy is being implemented by means of location- 

related projects such as the one at O’Swaldkai. In addition 

to the advantage of being part of HHLA Group, the experts 

of HHLA’s Real Estate Division also benefit from the know- 

how that they have accumulated over many years. On pro- 

ject development, synergies with HHLA’s other divisions 

are also harnessed. In this manner, such special quality 

characteristics as logistics in close proximity to cargo 

handling are thus being strengthened and further extend- 

ed. The regional economy and the environment, moreover, 

profit from this combination of growth that is sparing of 

resources and the boost this gives added value. 

HHLA Real Estate Division’s project development managers successfully cooperated on the banana ripening unit 

at O’Swaldkai.

REal ESTaTE 

GAINING SPACE ON O’SWALDKAI 

hhla’s real estate experts are striving to improve utilization of scarce space in the port, one example 

being at O’Swaldkai. 

Space is scarce in the Port of Hamburg. Although 

HHLA has numerous logistics properties at its dis- 

posal, headlong growth in throughput is absorbing all 

room for manoeuvre. The aim now, and the challenge 

for HHLA’s property experts, is to utilize existing areas 

more intensively and more efficiently. Restructuring 

of O’Swaldkai is one example of their work. Cover- 

ing 700,000 square metres, this large multipurpose 

terminal handles fruit, vehicles and general cargoes, 

increasingly in containers. 

Two HHLA subsidiaries operate here: Unikai 

Lagerei- und Speditionsgesellschaft mbH, the spe- 

cialist for handling RoRo services, and Frucht- and 

Kühlzentrum GmbH (FKZ), handling banana freighters 

from Central and South America at its quayside faci- 

lity and then storing the fruit in special temperature- 

controlled stores prior to delivery to customers by rail 

or truck. Between them, in 2006 the two companies 

handled 1.8 million tons here – so the capacity limit has 

been reached. The keynote aims of restructuring are to 

gain space and to reorganize procedures. Along with 

users of the facility, HHLA’s real estate experts drew 

up an integrated overall concept for the upgrading of 

O’Swaldkai that has gradually been implemented since 

2006. The aim is to integrate additional forms of use, to 

optimize operational and logistics processes, to realign 

the limits of different areas and to re-route traffic flows. 

The first module was construction of a banana-ripening 

unit for tenants, Edeka. Extra space has been secured 

by dismantling rail sidings no longer in use, creating a 

new central gate, optimizing traffic routing and building 

a multi-storey car park for use by staff and customers. 

Firms can use the space gained for additional storage 

area or for new cold stores. When restructuring is com- 

plete, the effective area of O’Swaldkai will have been 

enlarged by up to ten percent. 

47

48 hhla annual report 2006 

Women drivers of container gantry cranes and straddle carriers.

huMan resourCes 

ManaGeMent shapes 

the future 

More jobs, more investment in vocational training, a further upgrading of the Group’s 

social welfare policy – HHLA’s human resources management is setting accents for the 

development of the HHLA Group. 

“Ladies to the lever – a male-dominated profession is being 

opened up at Burchardkai.” The staff newspaper at HHLA 

Container Terminal Burchardkai, proudly reported the co- 

ming of a new age in its spring 2006 edition. On March 

1st 2006 the first female blue-collar staff were taken on. 

After their six months of vocational training to obtain the 

appropriate licences, today the four women are operating 

large equipment on the terminal, two being on container 

gantry cranes and two on van carriers. By the end of 2006, 

the number of female drivers had grown to seven. 

hhla staff 

As AT 31.12 

4,500 

4,000 

3,500 

3,000 

2.500 

2004 2005 2006 

3,334 

3,869 

4,215 

staff 

“The cliché of muscle-packed port workers struggling with 

very heavy sacks has certainly not been true for container 

operations for a long time,” states Wolfgang Weskamp, 

human resources manager at CTB. The skills required 

today are the ability to concentrate and the instinctive fee- 

ling to operate the complex handling technology reliably 

and under great time pressure. In the coming years, the 

number of young women at the joysticks and monitors in 

drivers’ cabins and gantry crane cockpits will continue 

to grow. 

Job Creation 

The powerful growth in all of HHLA’s business fields is 

clearly reflected in the increase of the number of staff in the 

Group. This rose by 9 percent to 4,215, or 346 more than 

the previous year. The greatest increase in jobs was in the 

HHLA Intermodal Division (plus 16%). In absolute figures, 

HHLA Container Division dominated with an increase of 

195 staff. 80 percent of all staff are located in Germany, 76 

percent in Hamburg. 

Moreover, the growth in the HHLA Group has created 

further jobs at its operating sites. For example, at its con- 

tainer terminals one third of the blue-collar workers directly 

involved in handling are from external companies, such as 

Gesamthafenbetriebs-Gesellschaft (GHBG). 

49


loGistiCs Chain know-how 

The services performed by HHLA within the context of 

worldwide logistics increasingly require specialist exper- 

tise. Blue-collar workers are very well acquainted with data 

transmission, global satellite positioning and an increasing 

degree of automation. Intelligent software intermeshes ope- 

rating systems, so that, for example, the work processes 

for operators on container gantry cranes, in van carriers 

and in warehousing harmonize perfectly. specialists with 

university degrees are increasingly being recruited for the 

organization and structuring of these processes. 

For this reason, HHLA has intensified its investment 

in vocational and in-service training in recent years. It has Rail planners link Hamburg with its hinterland. 

also increased its long-term involvement in setting up and 

building up supra-company institutions. After all, intelli- HHLA staff members attended the over 400 courses run 

gent logistics requires not only high performance IT, but at the company training center. 

above all bright intellects. HHLA promotes the upcoming 

generation both on the level of internationally educated health proteCtion further iMproved 

graduates at the Hamburg school of Logistics (HsL) and 

supra-company vocational training in blue-collar trades High health and safety standards enjoy a long tradition at 

at the Hamburg Vocational Training Center (HAZ). 16 ap- HHLA. To achieve this, HHLA’s health management puts 

prentices completed their vocational training in electronics emphasis on prevention. Already in 1995, with the com- 

and mechatronics in 2006. In addition, three trainee HHLA pletion of the in-company staff agreement on health pro- 

managers attended the HsL summer school in the summer tection, a modern health management system was estabof 

2006. This interlinks the in-service training of our own lished, which has since been steadily built up and impro- 

staff with international networking with decisionmakers ved. Regular awards bear witness to this prevention phiof 

the future. In so doing, 

HHLA is making a considerable 

contribution to the 

recruitment of future talent 

for the logistics field. 

With these activities 

HHLA supports the promotion 

of upcoming talent over 

and above its own needs. 

Besides this, vocational 

and in-service training are 

of great significance within 

the Group, enabling it to 

satisfy special job profiles 

internally. Once again during 

2006, more than 2,000 At container trucking company CTD, software supports resource planning.

losophy. In 2006, HHLA Container Terminal Altenwerder 

received an award from the wholesale and warehousing 

employers’ liability insurance association for a special 

tool, simplifying maintenance work on ventilation in ree- 

fer containers and considerably enhancing health and 

safety at work. 

A major hallmark of HHLA’s health management is 

its holistic approach. safety at work, health protection and 

occupational medicine are intermeshed with prevention 

programmes. One of these innovative programmes was 

developed during 2005 and implemented in 2006. The 

“orthopaedic consulting programme” provides preventive 

occupational medicine for certain groups of trades involved 

in container handling. A further milestone in the company 

staff 

health policy is the “company agreement on the protection 

of non-smokers” for the HHLA Holding and many of its 

subsidiaries. since the installation of separate smoking 

zones, smoking is confined to these areas, and the workplace 

is smoke-free. This protection of non-smokers is 

complemented by special programmes for smokers. The 

non-smoking training courses are already a major success. 

Here staff members learn to cope without cigarettes even 

when under stress. 

Modern soCial poliCy shapes the future 

In its new and innovative collective agreement entitled 

“Demographic change, global competition and company 

sAVING WORKING TIME FOR LIFE 

with the introduction of the lifetime work savings account, hhla is making use of the new instrument of the 

company pension scheme – to the advantage of both the staff and the company. 

still handling containers on the quayside in all weathers 

at the age of 67? This idea is discomforting for many 

port workers. Office staff, too, as much as they are enthusiastic 

about their work, can imagine an earlier life 

after work. This is why, since the start of 2006, HHLA 

has been offering its staff the opportunity to finish 

working earlier, without having to accept high long-term 

deductions from their pensions. The solution is the lifetime 

work savings account. 

The lifetime work savings account model (LAK) 

offers the individual staff member the opportunity of retiring 

earlier with full income. This reduces the average 

staff age, positively influences the average sickness 

rate and with it the productivity level of the company. 

In view of this win-win situation, the LAK model is now 

a collective agreement. With its introduction, HHLA is 

playing a pioneering role in North Germany. Money, or 

time credits converted into money, is paid into a LAK 

account. These “savings” will be used later, to enable 

the holder to finish the active working phase on full pay, 

Helmuth Hermann (l.) is retiring and handing over his 

keys to his successor. 

even a couple of years before reaching official pensionable 

age. At HHLA Container Terminal Altenwerder 

one third of the staff are already paying into their 

individual accounts, in the justified hope of achieving 

an earlier retirement. 

51


Drivers sit 13 metres above ground in their straddle carriers. 

social policy” which was developed during 2006, HHLA 

wants to provide a company answer to demographic 

change and cutbacks in state social benefits. Its aim is to 

make HHLA more attractive for young and older staff alike. 

The contract contains a wealth of innovations framed 

in collective agreements. These include individual work- 

ing-time models, e.g. for leave of absence for parenting, 

or caring for elderly parents in need of a high level of care; 

the introduction of scholarships for the highly qualified; 

and significant improvements in vocational and in-ser- 

vice training. Its aim: “To gain new employees, keep the 

existing ones long-term, and to offer older ones a sensible 

transition into retirement,” states Claudia Paulsen-Rist, 

who is responsible for retirement provisions within human 

resources (HR) management and one of the authors of the 

collective agreement. 

Above all, the collective agreement is a blueprint for 

the coming years. It formulates a whole range of tasks, on 

the basis of which solutions should be jointly developed 

by the contractual partners as a continuously learning 

organization. Taking the example of “age-based work- 

places and health protection”, in the future workplaces 

will be examined to see whether they need to be, and 

Monitoring the terminal from the control center. 

can be, suitably structured for the worker’s age. More- 

over, provision is made for accompanying measures in the 

interest of maintaining good health. Alongside influenza 

jabs, which have been available for years, financial sup- 

port is provided for non-smoking courses and subsidies 

for posture training. 

The company aging structure analysis, which in 

future will be conducted annually, will provide the basis 

for real “Instruments for an age-related company social 

policy”. Apart from age-based workplaces, this will in- 

clude specific in-service training courses. To provide a 

better framework for transition into retirement, and espe- 

cially in view of the raising of the pensionable age to 67 in 

Germany, it should be possible to combine the “Lifetime 

work savings account”, “Company pensions agreement” 

and “Partial retirement” models. 

Well trained and highly motivated staff are one of 

the most important keys for the success of a company. 

With its integrated approach, HHLA’s HR management is 

today already securing the preconditions for knowledge, 

health and motivation of its staff in the future, making 

it one of the central pillars in the growth strategy of the 

HHLA Group.

NEW PATHs IN OCCUPATIONAL MEDICINE 

preventing back pain: hhla has developed special exercises for its drivers on large equipment. 

Handy, pocket-sized brochures use pictograms to illustrate corrective exercises. 

short, concentrated, corrective exercises help people 

to avoid or banish back pain. HHLA has developed spe- 

cial exercises for drivers of container gantry cranes and 

straddle carriers. These can also be done in the cock- 

pit or the cabin to swiftly and systematically relax the 

muscles. Oil-repellent brochures in handy pocket for- 

mat include photographs and pictograms showing how 

this is done, whether the need is to stretch the large 

breast muscle, bend the hips, relax the neck muscles, 

or mobilize the spinal column. 

some exercises can simply be done at the work- 

place – while waiting for the next container. Requiring 

different amounts of time and space, “normal, special 

and turbo exercises” are explained. 

The recently developed exercises are based on 

questionnaires to 335 drivers at HHLA container termi- 

nals and physical examinations of about 100 of them. 

some were also photographed or filmed at work to de- 

termine typical postures. Assessment of the findings 

initially showed that HHLA drivers are more than usually 

sporty and health conscious. Yet to counter special 

staff 

strains at any early stage, an interdisciplinary team, led 

by Hamburg orthopaedic specialist Dr. Matthias soyka, 

devised these exercises that combine state-of-the-art 

orthopaedics, ergonomics and physiotherapy. 

HHLA is pursuing a new course in occupational 

medicine. Also involved were HHLA’s two company 

medical advisers, Dr. Joachim Meifort and Helma stahlkopf. 

The findings of this intensive scientific survey will 

be of further use for the company’s healthcare scheme. 

Already at the training stage, drivers are told of the corrective 

exercises. Regular medical checks also enable 

the medical advisers to analyze and discuss orthopaedic 

problems more precisely. 

53


The Elbphilharmonie, a beacon project for the Hamburg metropolitan region. 

Herzog & de Meuron.

SocIally reSponSIBle 

manaGement 

In the summer of 2010, when in all probability the Elbphil- 

harmonie will be inaugurated with great celebrations, Ham- 

burg will have a new landmark on a familiar site. This, after 

all, was where the gigantic Kaiserspeicher was inaugurated 

in 1875. After the old building had been devastated in the 

war and later demolished, the modern Kaispeicher A stood 

here from 1966. Now the glass palace of soaring curves, 

containing a new concert hall, will be a fresh architectural 

highlight in Hamburg’s cityscape. 

HHLA will also have contributed. This is not so much 

because Kaispeicher A was once owned by the Group and 

is now effectively the foundation for the gleaming new glass 

structure. With its contribution to the national economy, 

application of added Value 

economy 

With its high added value, its research activities and commitment to vocational and in-service 

training, HHLA makes a substantial contribution to society and the economy. 

added Value in hhla Group 

IN MILLIoNS of EuroS 

2006 2005 2006/05 

Staff 252 228 10 % 

Partners 117 69 68 % 

Lenders 16 17 - 4 % 

Taxes 70 44 58 % 

total added value 455 360 27 % 

HHLA strengthens the economy of the Hamburg metro- 

politan region in many different ways. That helps to secure 

the conditions essential for realization of a project of this 

kind. “Added value” serves as one indicator of a company’s 

“value added to the national economy”. This is calculated 

on the basis of the value of production less all input and 

depreciations. Amounting to 455 million euros, in the finan- 

cial year 2006 HHLA Group’s added value reached a new 

record, the previous year’s 360 million euros being topped 

by 27 percent. The added-value proportion also rose on a 

year-on-year basis from 42 percent in 2005 to 44 percent 

of the production value of 1,047 million euros that HHLA 

received in 2006 for its products and services. 

26 % 

15 % 

4 % 

55 % 

Staff 

Partners 

Taxes 

Lenders 

55


The added-value contribution of 455 million euros was dis- 

tributed between staff, lenders, partners and the state. At 

56 percent, in 2006 the largest share fell to HHLA staff – al- 

together 252 million euros. Tax payments and the partners’ 

shares grew especially dynamically. Total taxes paid rose 

by 58 percent to around 70 million euros. one indicator of 

the Group’s outstanding financial performance in 2006 is 

the 66 percent surge in payments to the partners to 117 

million euros. The main beneficiary of these achievements 

is the Hamburg metropolitan region, where HHLA’s activities 

are concentrated. 

InnoVatIonS For the loGIStIcS chaIn 

HHLA’s research activities are also significant for the 

economy. Involved in many logistics innovations in the 

overseas port and hinterland transport from an early stage, 

HHLA is actively pursuing a number of projects designed 

to expand its extensive know-how. Development of technologies 

for operating the container terminals plays a 

crucial part. HHLA’s HPC Hamburg Port Consulting subsidiary, 

for example, has developed numerous IT components 

for terminal control for use at both HHLA’s Container 

Terminal Altenwerder (CTA) and Container Termineaux de 

Normandie in Le Havre. on the basis of this experience, 

since 2006 HPC has cooperated with Aachen-based partner 

INforM on a comprehensive system platform. 

The Integrated Terminal Control System (ITS) aims to 

substantially boost the performance and stability of complex 

terminal systems. HPC markets this control system 

worldwide under the registered brand name TErMINAL- 

STAr. Hinterland transport companies in the HHLA Group 

are also active in application research. Polzug, HPC Hamburg 

Port Consulting and HPC’s uniconsult subsidiary, 

for instance, are all involved in the MaTIB (Management 

for Transport and Incidents) project that is backed by the 

Surface preparation unique in the world replaces the din of piledriving: consisting of special prefabricated blocks joined 

seamlessly, at HHLA Container Terminal Burchardkai (CTB) the gantry crane tracks are each 400 metres long.

Integrated Terminal Control System (ITS) is also used at CTB. 

federal ministry of education and research. The aim is 

to make intermodal container transport more attractive 

by improving IT-based workflow management. Work is in 

progress on developing a process standard as the basis 

for creating additional IT systems for the respective ser- 

vices. 

In cooperation with ThyssenKrupp and Hamburg uni- 

versity of Technology (TuHH), in 2006 HHLA succeeded in 

completing a pioneering project for simplifying construc- 

tion of modern storage blocks at container terminals. “Pre- 

fabrication for the raft foundation of crane rail tracks at the 

CTB storage block” is a novel system for the construction 

of tracks for large gantry cranes. As part of the Burchard- 

kai upgrading, reinforced concrete sections are used in 

the construction of storage blocks, being joined together 

to form a seamless foundation beam approx. 400 metres 

long. That saves the costly and prolonged preparation of 

foundations, and the related noise emissions caused by 

piledriving, required by conventional construction. 

commItteD to VocatIonal anD In-SerVIce traInInG 

The human factor is central in all economic know-how. 

Along with its comprehensive vocational and in-service 

economy 

training activities within the Group, HHLA is also enga- 

ged in another area, with supra-company vocational trai- 

ning for blue-collar trades. In this field, HHLA supports 

the Hamburg Vocational Training Center (HAZ). HAZ of- 

fers its member firms supra-company training courses 

for their apprentices. In addition, HAZ provides full-time 

vocational training courses enabling secondary-school 

graduates to become qualified skilled workers in metal- 

working trades. 

HHLA also promotes the international training of 

young high flyers with management potential in the logis- 

tics sector with its support for Hamburg School of Logis- 

tics (HSL). Since october 2004, HSL has been offering up- 

coming managers a compact one-year study programme 

as Masters of Business Administration in Logistics, which 

in this form is unique as a high-level programme for a new 

generation of managers in the logistics industry. The stu- 

dents come from Northern and Eastern Europe, especially. 

HSL was set up in 2003 as a public-private partnership, 

not only as a training facility but also to pursue research 

Hamburg Vocational Training Center. 

in applied logistics. 

HHLA supports HSL 

annually with a con- 

siderable grant. In 

addition, HHLA sup- 

plies speakers, and 

on a practical level, 

hosts HSL students 

on visits and guided 

tours of HHLA facil- 

ities. 

With its high 

national added value, 

application-oriented 

research for the logis- 

tics chain, outstand- 

ing commitment to 

training, and busi- 

ness model taking 

the long-term view, 

HHLA lives up to its 

economic and social 

responsibilities. 

57


A large containership on the Elbe: a carrier making ecological and economic sense.

eColoGiCal 

tranSport ChainS 

proteCtinG Climate 

Overseas containerships majestically cleave their way 

along the Lower Elbe between the North Sea and Ham- 

burg. The proportion of mega-sized container giants with 

more than 8,000 container slots is growing from year to 

year. Even today, over 400 of these enormous ships are al- 

ready calling annually at HHLA’s three container terminals. 

Each of these giant vessels has a quantity of goods on 

board exceeding the amount carried daily by trucks along 

one section of a German autobahn. If the smaller feeder 

container ships for the Baltic are included, in 2006 around 

8,000 containerships transported a total of nearly 9 million 

standard containers (TEU) along the Elbe. 

multimoDal Carrier miX For the Future 

Germany’s largest port lies at least 120 kilometres away 

from the nearest open sea in the German Bight. Thanks 

to the Elbe, overseas traffic reaches far more deeply in- 

land than elsewhere. Economically and ecologically, that 

is a tremendous advantage. Judged on energy consump- 

tion, emissions of greenhouse gases and transport costs, 

sea transport is many times superior to all modes of land 

environment 

Optimal networking of a range of carriers plus intelligent utilisation of logistics sites and 

infrastructure help to save resources and cut the impact of emissions on the climate. 

transport. The larger the ships, the greater the advantage. 

Hamburg’s superb geographical location for handling 

traffic offers optimal conditions for networking modes of 

transport so intelligently that they can fully exploit their 

economic and ecological strengths. 

Hamburg has seized the opportunity. For a start, 

the Hamburg metropolitan region is itself one of Europe’s 

strongest economic regions, and is in fact the destination 

or source of 40 percent of all containers handled in the 

port. The ocean-going ships sail almost to the doorstep 

of Europe, as it were. A further 30 percent opt for the eco- 

logically exemplary route on water, with feederships lin- 

king the national economies of the Baltic region with world 

markets. The remaining 30 percent of containers find their 

way inland across the boundaries of the metropolitan re- 

gion. Whether to Zurich, Vienna, Budapest, Berlin, Warsaw, 

Prague or even Azerbaijan, 70 percent of these go by rail. 

Hamburg therefore stands for intermodal – or supra-car- 

rier – transport chains offering an optimal combination of 

ocean-going ship, feedership, inland waterway craft, rail 

and road transport. 

59


This large containership on the way to HHLA Container Terminal Altenwerder transports about 8,000 standard 

containers. If they all went by road, the resulting truck column would be 400 kilometres long. 

inteGrateD loGiStiCS ConCept 

This pioneering multimodal mix did not happen by acci- 

dent. If the links of the transport chain are to interlock op- 

timally, all the elements must be coordinated, e.g., storage 

and contract logistics. HHLA makes decisive contributions 

to this integrated logistics chain between the quay wall and 

the hinterland: 

expanding superstructure and infrastructure. Expan- 

sion of container terminals (superstructure) and traffic 

(infrastructure) is closely coordinated by the public purse 

and HHLA. Handling and transport capacities are gradu- 

ally being increased to be able to handle double today’s 

container volume as early as 2015. 

Giving rail priority. Also by 2015, and as another feature 

of this coordinated expansion planning, Hamburg aims 

to triple capacity for rail transport from today’s 1.5 to 4.5 

million TEU, i.e. distinctly boosting rail’s market share 

in comparison to road transport. HHLA is already crea- 

ting the preconditions for this today. In modernising its 

terminals, on-dock rail terminals take first place. In sum- 

mer 2006, for example, the first new module to enter 

service at HHLA Container Terminal Burchardkai was the 

new rail terminal. As the next step, a new rail terminal will 

be built at HHLA’s Container Terminal Tollerort. 

improving utilization of infrastructure. One of the 

central modules of HHLA strategy is to keep up with 

traffic growth with more intelligent utilisation of existing 

infrastructure. Larger container volume at individual ter- 

minals is producing the prerequisite for an “industrializa- 

tion” of rail transport. Instead of laboriously assembling 

trains from part-loads from different terminals, the trend 

is towards shuttle trains running directly between one 

terminal and the hinterland, and being handled at both 

ends during specific time frames. This produces a quan- 

tum leap in productivity for rail as a system. Tapping 

infrastructure capacity reserves by making traffic flow

more evenly also offers very substantial potential. Along 

with other players in the logistics chain, HHLA is pur- 

suing “Project 24/7” that aims to create a transport chain 

in continuous operation 24 hours per day and seven days 

a week. HHLA’s container terminals have offered this 

service for a very long time. 

uSinG SiteS more eFFiCientlY 

A further pillar of HHLA strategy is to keep pace with 

handling growth using existing handling sites. Employing 

the terminal technology developed for HHLA’s Container 

Terminal Altenwerder (CTA), among other measures, cap- 

acity at the three large HHLA container terminals in Ham- 

burg can gradually be doubled from 6 to over 12 million 

TEU by 2015. That corresponds to the total throughput 

in the Port of Hamburg in 2003. A further approach is 

the optimization of port sites, using integrated restruc- 

turing concepts of the type currently being implemented 

by HHLA’s real estate management at O’Swaldkai multi- 

purpose terminal. 

Together, these strategies and measures make a de- 

cisive contribution towards meeting the European Union’s 

climate protection goals for goods traffic. The deepening 

of the Lower Elbe along with the strengthening of the Ham- 

burg hub is a very significant preliminary towards slowing 

down the harmful impact of emissions on the climate in 

European goods traffic. 

Gaining space at Tollerort: former port basins (l.) being 

in-filled. 

environment 

ADVANTAGE RAIL 

the combination of ocean-going vessel and container 

train is not only ecologically superior. 

Europe’s largest marshalling yard: Hamburg-Maschen. 

Hamburg as a traditional rail port not only possesses 

excellent rail connections into the hinterland – at over 

70 percent of all long-distance traffic, it has the highest 

rail proportion among all European overseas ports. 

Hamburg is therefore the ideal place for networking the 

ecologically and economically best carriers. 

Containers cover 96 percent of the 21,000 kilometres 

between Shanghai and Prague aboard the large 

ocean-going ships – from East Asia via the Elbe and 

deep inland to Hamburg. The remaining three percent 

to Prague, at least 700 kilometres, after all, are almost 

always undertaken by rail, e.g., directly from the container 

terminal by one of HHLA subsidiary METRANS’ 

block trains. 

This has economic and ecological advantages: 

The complete load of a containership with 8,000 TEU 

fills around 100 trains. On the roads, by contrast, it 

would require a convoy of between 5,000 and 6,000 

trucks, several hundred kilometres long. Whereas a 

truck consumes 4.1 litres of diesel per 100 ton-kilometres, 

the corresponding requirement in rail traffic is 

1.7 litres. In addition, road transport creates carbon dioxide 

emissions of 164 grams per thousand kilometres, 

with rail it is just 48 grams. 

61


IN DIalOGUE WITh 

SOCIETY 

Every year HHLA offers several thousand guests and visitors direct insights into one of 

globalization’s central interfaces. 

José Manuel Barroso, President of the European Commission. 

“Globalization brings opportunities and risks in equal 

measure. Anybody wishing to see how globalization can 

be organized successfully should look round the Port of 

Hamburg, I visited a few months ago. Container Terminal 

Altenwerder is the best example of globalisation’s advan- 

tages.” These are quotes from José Manuel Barroso, Presi- 

dent of the European Commission, commenting on his visit 

on December 1st 2006, and appeared in an interview with 

the “Hamburger Abendblatt” marking the G8 summit in 

Heiligendamm at the beginning of June 2007. 

EXPERIENCING GlOBalIzaTION aT FIRST haND 

On that occasion, Europe’s leading citizen had the basics of 

modern container handling explained to him at a height of 

50 metres on container gantry crane No. 13 at HHLA Con- 

tainer Terminal Altenwerder (CTA). He also took the driving 

seat. A few months earlier, on August 23rd 2006, Horst 

Köhler, President of the Federal Republic, had stood on the 

same crane jib at the same dizzy height. From there he was 

able to admire the entire logistics chain from ocean-going 

ship via container storage blocks and on-dock rail terminal 

to the adjacent, just opened Logistics Center Altenwerder. 

He afterwards met port workers for a discussion over a 

traditional Hamburg fish lunch in the CTA canteen. 

Wolfgang Tiefensee, Federal Minister of transport, 

building and urban development, had already visited CTA 

on April 26th to glean first-hand information about the 

current situation in the Port of Hamburg, Germany’s most 

important traffic hub for global cargo flows. Yet prom- 

inent contemporaries were not the only visitors last year 

at HHLA’s terminals and other facilities. Cooperation with 

a Hamburg coach operator alone brought around 30,000 

people, school classes and Rotary Clubs, tourists and par- 

liamentarians, sightseers and logistics experts through the 

port and into HHLA Container Terminals Burchardkai and 

Altenwerder in 2006. In addition, HHLA laid on hundreds 

of guided tours for specialists. 

All these activities have one aim, that of conveying 

a personal impression to those interested in what work in 

the port actually means, and above all of the nature and 

extent of the current boom in intercontinental transport 

chains. This arouses a better understanding not only of 

the challenges, but also of the opportunities, offered by

Society 

German President Horst Köhler 

at HHLA Container Terminal 

Altenwerder. 

63


Facts at first hand: German transport minister Wolfgang 

Tiefensee (center) in discussion with HHLA executive 

board chairman Klaus-Dieter Peters (l.) and HHLA board 

member Dr. Stefan Behn (r.). 

this trend. Questions and suggestions from the visitors 

frequently lead to lively debates. 

MEETING PlaCE 

HHLA’s head office in the heart of Speicherstadt also of- 

fers a place for dialogue and personal encounters. Built in 

The travelling exhibition “Rückblende” (Retrospects) with 

Germany’s best political photographs and caricatures is 

a regular visiting attraction at HHLA’s head office. 

From a dizzy height, German president Horst Köhler 

(center) has Hamburg’s first mayor Ole von Beust and 

HHLA executive board chairman Klaus-Dieter Peters 

explain Altenwerder’s advantages as a logistics location. 

1904 in neo-renaissance style, this counting house is also 

known as “Speicherstadt’s City Hall”. That has less to do 

with politics but more with architecture, for the neo-re- 

naissance style of post-1871 Germany took its inspiration 

from the city hall buildings of early renaissance Germany. 

Yet the travelling exhibition “Rückblende” (Retrospects), 

an exhibition of Germany’s best political photographs and 

caricatures from the previous year, seems especially at 

home in this “City Hall”. An annual visit to the exhibition, 

which is organized by “Der Spiegel” and other sponsors, 

has meanwhile become something of a tradition. Besides 

Hamburg, it is also shown in Berlin, Bonn, Brussels, Leip- 

zig, Mainz and Trier. The exhibition offers a welcome op- 

portunity for exchange between branches of the media, 

the port business community and the worlds of culture and 

politics. Speicherstadt’s central location between the city 

center and the major urban development project at Hafen- 

City makes HHLA’s head office increasingly attractive as a 

meeting place and bridge for different milieus. 

Another expression of this idea was the exhibition 

“Flowing Clouds – Flowing Water” that was HHLA’s con- 

tribution to the “China Time 2006” series of events in 

September 2006. Hamburg presented itself as “Europe’s 

Gateway to China” with this major cultural and social event, 

at the same time marking the 20th anniversary of the city 

partnership with the port city of Shanghai.

EAST MEETS WEST 

avant-garde artist Shi hui from Shanghai was a guest in hhla head office 

with the exhibition “Flowing Clouds – Flowing Water”. 

As a HHLA contribution to “China Time 2006”, its head office, also known as “Speicherstadt’s City Hall”, was 

the setting for an exhibition of contemporary Chinese art. 

At least 200 guests from the port business commu- 

nity, politics and the arts scene witnessed an un- 

usual encounter at the opening of the exhibition on 

September 12th 2006: filigree modern Chinese art on 

paper amid the traditional clinker architecture of Ham- 

burg’s Speicherstadt. “China close up” – the motto 

of the “China Time 2006” weeks was tangible on that 

evening, not least owing to the discussions and en- 

counters among guests at the opening. And naturally 

the container played its part. The works of art arrived 

along an intermodal transport chain by ocean-going 

ship plus truck. 

“All the characteristics of the materials that I 

handle, net structures, lines and threads without end, 

SOCIETY 

are wrapped in a thin paper brew, similar to a silkworm 

that to ensure its survival breaks off from its environ- 

ment and becomes a chrysalis,” was how the 51-year- 

old art professor Shi Hui explained her work process. 

The result is poetic white forms that will prove acces- 

sible to those who bring a willingness and sensitivity 

to open up to this art form. Shi Hui, invariably in the 

forefront of the development of Chinese avant-garde 

art since the mid-1980s, stands for a very personal 

networking of Chinese tradition and the Western Mod- 

erns. Meditative aspects, traditional materials and a 

deliberate renunciation of the fashionable components 

of success are combined with the freedoms of abstrac- 

tion found in Western art. 

65


CORPORaTE 

GOVERNaNCE REPORT 

On February 26th 2002, an independent commission 

appointed by the Federal government for the first time 

presented a German Corporate Governance Code. This 

assembles the main legal regulations regarding manage- 

ment and supervision of German companies with a stock 

exchange listing and incorporates international standards 

on good and responsible company management. The 

Code renders the German Corporate Governance System 

transparent and comprehensible. It strengthens the trust 

of investors, clients, staff and the public in the manage- 

ment and supervision of German companies with a stock 

exchange listing. 

Even as a non-listed joint stock company, HHLA 

regards corporate governance as a central requirement 

of responsible and value-oriented Group management. 

HHLA has always seen this as a high priority. We, as the 

Supervisory Board and Executive Board, therefore ex- 

pressly support the Code and the aims and purposes 

pursued. 

HHLA has based corporate governance of the com- 

pany on the recommendations and suggestions of the 

German Corporate Governance Code in the version dated 

June 6th 2006. The Executive Board and Supervisory 

Board discussed the topics related to corporate govern- 

ance in the course of 2006, and on December 14th 2006 

made the appropriate declaration under paragraph 161 of 

the statutory German Aktiengesetz, making this perma- 

nently accessible to the public on its Internet page. 

FUNDaMENTalS OF ThE COMPENSaTION SYSTEM 

COMPENSATION OF THE EXECUTIVE BOARD 

Total compensation comprises fixed and variable elements. 

The variable component is coupled to the development of 

Group results. Components providing a long-term incen- 

tive and involving risk (share options) do not form part of 

total compensation. Details of remuneration of individuals 

are not revealed. 

A report on compensation for members of the Ex- 

ecutive Board and senior managers is compiled annually 

by the auditors and passed on to representatives of the 

company. The fact that the shareholders are involved in 

setting the amount and composition of such compensation 

ensures that they are properly informed. 

No compensation arises in respect of board man- 

dates in subsidiary companies. 

An adjustment of compensation guidelines and dis- 

closure to conform to the Corporate Governance Code is 

foreseen for the future. 

COMPENSATION OF THE SUPERVISORY BOARD 

Compensation currently consists solely of attendance 

fees. Fixed compensation with the recommended division 

into one-time components, annual components linked to 

the commercial success of the company and the variable

component is coupled to the development of Group re- 

sults, and components providing a long-term incentive and 

involving risk (share options) is not paid. In accordance with 

the decision of August 1st 2006 by the commission for pub- 

licly owned companies of the Free and Hanseatic City of 

Hamburg, no forms of compensation, but only attendance 

fees, are paid in respect of duties undertaken on the super- 

visory boards of publicly owned companies in Hamburg or 

companies in which the city holds a majority stake. 

No compensation arises in respect of board man- 

dates, etc. in subsidiary companies. 

An adjustment of compensation guidelines and dis- 

closure to conform to the Corporate Governance Code is 

foreseen for the future. 

MaNaGEMENT aND CONTROl STRUCTURE 

SUPERVISORY BOARD 

The rights and duties of the Supervisory Board are based 

on the Articles of Association. The Supervisory Board 

supervises the management of the business and tenders 

advice to the Executive Board. It selects and dismisses the 

members of the Executive Board. New appointments are 

determined by a Selection Committee (Findungskommis- 

sion) in good time prior to the expiry of old contracts. Any 

transactions or measures by the Executive Board that fun- 

damentally alter the assets, financial or earnings situation 

of the company require prior assent from the Supervisory 

Board. The rules of procedure for the HHLA Supervisory 

Board contain a non-exclusive listing of transactions and 

measures requiring its assent. The Supervisory Board has 

12 members and in accordance with the Co-Determina- 

tion Law (Mitbestimmungsgesetz) of 1976 is composed in 

equal measure of representatives of the shareholders and 

of the employees. The former are elected by the Annual 

General Meeting, the latter by the staff. When votes by the 

Supervisory Board result in a tie, and this is repeated after 

a second vote, then the chair of the Supervisory Board 

exercises a casting vote. 

To ensure that advice for, and supervision of the Ex- 

ecutive Board is independent, no more than two former 

members of this may belong to the Supervisory Board. 

CORPORaTE GOVERNaNCE REPORT 

Members of the Supervisory Board may not exercise board 

mandates or advisory functions for any significant com- 

petitors of the Group. Supervisory Board members are 

obliged to reveal to the Supervisory Board without delay 

any conflicts of interest that could arise, especially those 

caused by an advisory or board function for customers, 

suppliers, lenders or other business partners. The Super- 

visory Board shall state in its report to the Annual General 

Meeting whether such conflicts have arisen and if so, how 

these were handled. Serious and not simply temporary 

conflicts of interests involving a member of the Supervisory 

Board in person should lead to a termination of his or her 

mandate. No conflicts of interest involving members of the 

HHLA Supervisory Board occurred during the year. Any of 

their contracts with the company for provision of advice 

or other services or work require the assent of the Super- 

visory Board. No contracts under this heading occurred 

during the period under review. 

The rules of procedure for the Supervisory Board 

provide for the following committees: 

At HHLA, the finance committee discharges the func- 

tions of the audit committee prescribed by the Corporate 

Governance Code. 

The mediation committee to be formed under para- 

graph 27 subparagraph 3 of the law on co-determination 

comprises two members appointed by the shareholders 

and two by the company staff. It is responsible for making 

proposals to the Supervisory Board for Executive Board 

appointments, if the required majority of two-thirds of Super- 

visory Board votes is not reached after a first vote. 

A selection committee prepares the way for new ap- 

pointments as holders of Supervisory Board mandates in 

good time, i.e. approximately one year before expiry of the 

current contract. This process has so far run without any 

participation from the Executive Board. 

EXECUTIVE BOARD 

The HHLA Executive Board consists of five members and 

includes a chairman. The Supervisory Board agrees the 

rules of procedure for the Executive Board. The Execu- 

tive Board conducts the business of the company on the 

basis of the joint responsibility of all its members. This 

67


determines entrepreneurial goals, the fundamental strate- 

gic direction of Group policy and organisation. The prin- 

ciple features of this are the steering of the Group and its 

financial resources, development of the human resources 

strategy, filling of senior management positions, senior 

staff development, and the presentation of the Group to 

the capital market and the public. 

The Executive Board informs the Supervisory Board 

regularly, without delay and comprehensively of all issues 

relevant for Group planning, business development, risk 

situation and risk management. 

The chairman of the Executive Board shall notify the 

chairman of the Supervisory Board without delay of any 

important occurrences of substantial importance, either 

for the assessment of the situation and development of 

the Group or for its management, as well as any deficien- 

cies arising in the supervisory system. Any transactions or 

measures requiring the assent of the Supervisory Board 

shall be submitted to it in good time. 

Members of the Executive Board are obliged to reveal 

any conflicts of interest to the Supervisory Board without 

delay, and to notify other members of these. Members of 

the Executive Board may only undertake other duties, and 

in particular supervisory board mandates in companies 

outside the Group, with the assent of the Supervisory 

Board. No conflicts of interest arose for members of the 

HHLA Executive Board in 2006. Any important transactions 

between Group companies, on the other hand, and mem- 

bers of the Executive Boards, or persons or companies 

closely related to them, require assent from the Supervi- 

sory Board. All transactions must be in compliance with the 

standards customary in the industry. No contracts under 

this heading occurred during the period under review. 

The D&O (directors and officers) liability insurance 

for the Executive Board and Supervisory Board does not 

currently provide for any net retention. 

ANNUAL GENERAL MEETING 

Currently, the only shareholder is the Free and Hanseatic 

City of Hamburg. This exercises its rights at the Annual 

General Meeting, including its right to vote. The city is regu- 

larly notified of important meeting dates. 

The shareholder enjoys the opportunity to exercise 

its right to vote itself at the Annual General Meeting or to 

have its vote cast by a proxy. 

In accordance with paragraph 2.3.1, sentence 2, 

the Executive Board shall not only submit the reports and 

documents, including the Annual Report, required by law 

to the Annual General Meeting and to convey these to the 

shareholders on request, but shall also publish these, along 

with the AGM agenda, on the company’s website. 

The corresponding reports and documents are pub- 

lished on the Internet at www.hhla.de. 

ACCOUNTS AND ANNUAL AUDIT 

The auditor is appointed at the Annual General Meeting in 

accordance with the legal requirements. 

The mandate to conduct the annual audit is awarded 

for a maximum of five years. On expiry of this period, a new 

invitation to tender is issued, the existing firm of chartered

accountants being excluded. The 2006 Annual Report will 

for the first time be prepared in observance of interna- 

tionally recognised financial reporting standards (IFRS). 

The closing dates for the annual financial statement for 

2006 will therefore not be met, nor probably will any au- 

dited interim reports be issued in 2007. Observation of the 

Corporate Governance Code provisions on disclosure is 

envisaged for the future. 

The annual audit will be conducted with an extension 

in accordance with paragraph 53 of the German law on 

budgetary procedures (HGrG). This requires the scrutiny 

and assessment as part of the annual audit of the due 

diligence of the management, as well as the commercial 

circumstances of the company. 

In order to ensure the independence of the auditors, 

the Supervisory Board requires from them a declaration 

regarding the existence of any possible reasons for exclu- 

sion or bias. As part of the award of the contract to audit 

to the auditors, it is agreed that: 

The chairman of the Supervisory Board should be noti- 

fied without delay of any possible reasons for exclusion 

or bias, arising during the audit. 

The auditors should report without delay all significant 

observations and occurrences affecting the duties of the 

Supervisory Board that come to light during the conduct 

of the annual audit. 

The auditor shall notify the chairman of the Supervisory 

Board and/or make note in the audit report of any facts 

arising during conduct of the audit suggesting that the 

declaration provided by the Executive Board and Super- 

CORPORaTE GOVERNaNCE REPORT 

visory Board regarding the German Corporate Govern- 

ance Code is incorrect. 

RISK MANAGEMENT 

The risk management system of HHLA Group is fully de- 

scribed in the chapter on “Risk management” of the Annual 

Report. As the law requires, it is designed to secure early 

recognition of existential risks to the HHLA Group and its 

operating companies, so that measures to minimise, over- 

come or avoid risk can be implemented. 

Strategy and policy on risks are primarily based on 

the findings of the annually conducted inventory of stra- 

tegic, market and financial risks, including risks specific to 

divisions. Here, Group controlling is an essential instrument 

for efficient risk management. 

TRaNSPaRENCY 

The Group informs participants on the capital market and 

the interested public about the situation of the Group, as 

well as the main features of its business primarily with its 

Annual Report, the press conference on its annual results, 

the annual financial statement and the Annual General 

Meeting. 

published. 

A first-half report is compiled but is not at present 

The dates of regular financial reporting are listed in 

the Financial Calendar, which can be seen on the Internet 

at www.hhla.de. 

69


hhla Group in Figures 

2006 2005 ∆ in % 

Total operating revenues Million 1 1,024.8 839.0 22.1 % 

Sales revenues Million 1 1,017.4 832.9 22.2 % 

EBITDA Million 1 296.4 210.2 41.0 % 

EBIT Million 1 218.1 146.6 48.8 % 

EBT Million 1 186.8 113.7 64.3 % 

Group profit for the year 

- before income taxes Million 1 186.8 113.7 64.3 % 

- after income taxes Million 1 116.9 69.4 68.4 % 

- after minority shares Million 1 97.1 57.2 69.8 % 

Cash flow from operating activity 

Investments (intangible assets/tangible assets/ 

Million 1 199.7 160.7 24.3 % 

investment property) 

asset structure 

Million 1 204.7 117.4 74.4 % 

Fixed assets Million 1 977.7 796.6 22.7 % 

Current assets Million 1 221.9 249.2 - 10.9 % 

thereof, fixed assets held for sale Million 1 3.5 0.0 - 

Assets 

Capital structure 

Million 1 1,199.6 1,045.8 14.7 % 

Shareholders’ equity Million 1 258.7 151.9 70.3 % 

thereof subscribed capital Million 1 53.3 53.3 0.0 % 

Non-current liabilities Million 1 736.4 726.3 1.4 % 

thereof other provisions Million 1 39.0 29.7 31.3 % 

thereof pension provisions Million 1 377.4 384.0 - 1.7 % 

Current liabilities Million 1 204.6 167.6 22.1 % 

thereof provisions (excl. tax provisions) Million 1 14.6 9.2 58.7 % 

Equity and liabilities Million 1 1,199.6 1,045.8 14.7 % 

Equity ratio 

roCe – asset calculation 

% 21.6 14.5 49.0 % 

EBIT Million 1 218.1 146.6 48.8 % 

ø Operating assets Million 1 893.3 758.5 17.8 % 

ROCE HHLA % 24.4 19.3 26.4 % 

Number of staff as at 31.12. 4,215 3,869 8.9 %

Group manaGement 

report 

Above-average growth of the Group 

Results of operations again improved 

Investment volume up again 

orGanISatIon and StrateGy 

the hhla Group 

A logistics enterprise with 42 consolidated entities, the 

HHLA Group focuses on the management of – and par- 

ticipation in – companies whose purpose is business 

connected with seaport traffic and the acquisition, rental 

and development of properties. The HHLA Group com- 

bines the flexibility, creativity and rapidity characteristic 

of medium-sized entities with the synergies, volume ad- 

vantages and capital power of a group. This enables the 

HHLA Group to act quickly in its dynamically growing 

markets while staying close to its customer base. 

In 2006, under the leadership of Hamburger Hafen und 

Logistik Aktiengesellschaft, which is the strategic man- 

agement holding, the HHLA Group completed its trans- 

formation that had been initiated in the financial year 

2003, to become an integrated logistics group. 

Group manaGement report 

The Group is divided into the following four divisions: 

Container 

Intermodal 

Logistics 

Real Estate 

The largest location of the HHLA Group is the Free and 

Hanseatic City of Hamburg. 

StrateGy 

Two factors in particular characterised the financial year 

2006 of the HHLA Group: 

Further major investment projects were implemented 

rapidly in the Container Division. 

The Groupwide business processes were optimised 

further, and the Group accounting function adopted In- 

ternational Financial Reporting Standards (IFRS). 

71


Group poSItIon and buSIneSS 

development 

Group development 

MARkET pOSITIONS FuRTHER ExTENDED 

The HHLA Group took advantage of the growth opportun- 

ities presented by the favourable economic environment 

in 2006. With above-average growth rates and a generally 

very welcome development, HHLA continued to be suc- 

cessful in its vertically integrated Container, Intermodal, Lo- 

gistics and Real Estate Divisions. All divisions contributed 

in the reporting year to a noticeable improvement in sales 

and results. The HHLA Group continues to be the most 

important corporation for the port of Hamburg. Especially 

welcome is the high growth evident in the Containers and 

Intermodal Divisions. These two divisions are benefiting 

disproportionately from the rise in global container traffic, 

which stands at 11 %, and is twice as high as the growth 

in global GDp. 

With consolidated sales of EuR 1,017.4 million, the 

HHLA Group has exceeded the 1 billion mark for the first 

time. The Group result before taxes rose from EuR 113.7 

million in the prior year to EuR 186.8 million. 

The value creation of the HHLA Group was EuR 454.9 

million, rising by 26.9 % in comparison with the prior year. It 

is made up of the production value less inputs such as cost 

of materials, depreciation, amortisation and other costs; 

it is distributed among the stakeholders of HHLA such as 

employees, shareholders and the local authority. 

An analysis of the origins and use made of the value 

created illustrates what social and societal added value the 

HHLA Group creates with its sustainable economic activity. 

The largest share of the value creation went to the employees. 

This includes wages, salaries, social security benefits 

and pension obligations. A further major contribution went 

to the local authority in the form of taxes. The share that 

remains with enterprise is largely reinvested. 

the origins of the value Creation and 

its application 

(MILLION EuROS, pRIOR yEAR FIGuRES IN BRACkETS)/ 

(pERCENT, pRIOR yEAR FIGuRES IN BRACkETS) 

origination of the use of the 

value created value created 

production value 

1,047.1 (852.7) 

Cost of materials 

397.2/37.9 % 

(328.8/38.6 %) 

Amortisation and Depreciation 

78.3/7.5 % 

(63.6/7.5 %) 

Other expenses 

116.7/11.2 % 

(101.8/11.9 %) 

= value created 

454.9/43.4 % 

(358.5/42.0 %) 

Employees (personnel 

expenses plus allocation 

pension provision and 

attributable interest portion) 

251.9/55.4 % 

(227.7/63.5 %) 

Lenders 

16.3/3.6 % 

(17.1/4.8 %) 

Taxes 

69.8/15.3 % 

(44.3/12.4 %) 

Net income for the year 

including minority shares 

116.9/25.7 % 

(69.4/19.3 %) 

eConomIC envIronment 

TRANSpORT vOLuME IS GROWING FASTER THAN 

WORLD TRADE 

The global economy continued to rise unabatedly, with 

robust GDp growth of about 4 %. This puts the worldwide 

growth rate above the long-term average, although 

the economies in the uSA and Japan slackened slightly. 

The countries of the European union (Eu-25), on the other 

hand, recorded a noticeable rise from 1.7 % in 2005 to 

2.8 % in 2006. Within the euro zone, economic growth, at 

2.6 %, was also above its level of the previous year. Apart

from the positive effects from the economic revival within 

the Eu, strong growth impetus for the world economy is 

emanating from especially Asia and Russia. 

Favoured by this robust world economy, the German 

economy recorded in 2006 a clear GDp rise of 2.7 %, after 

years of only restrained growth. With economic growth of 

2.9 %, the Free and Hanseatic City of Hamburg performed 

better than the national average, profiting greatly as an 

international logistics center in the form of its port from 

the disproportionately high growth in world trade, which 

continues to grow about twice as fast as global GDp. 

Thanks to its geographical location, the port of Hamburg, 

as a logistics center between the Far East, America, 

the Baltic region and the central and eastern European 

hinterland, again obtained in container traffic a clear rise 

of 9.6 % to 8.86 million TEu. Hamburg has hence again 

increased its market share within the chain of ports from 

Hamburg to Antwerp; these northern European ports obtained 

a growth in traffic of 8.6 % to 29.95 million TEu in 

the reporting year. The highest growth rates in container 

traffic were recorded by Hamburg with its trading partners 

in Russia (+41.3 %), Malaysia (+38.3 %), South korea 

(+28.3 %) and China (+19.7 %). 

development oF the dIvISIonS 

HHLA DIvISIONS CONTINuE SALES INCREASES 

The Containers division contributed significantly to the 

good development of sales in 2006. The HHLA container 

terminals in Hamburg, Lübeck and Odessa recorded traffic 

totalling 6.6 million TEu in 2006. This is a growth rate of 

18.2 %, which is much higher than that for the port as a 

whole; it is reflected in a clear rise in the consolidated segment 

sales of the division from EuR 473.2 million to EuR 

587.9 million. In 2006, the HHLA container terminals in the 

port of Hamburg handled traffic of 6.1 million TEu, constituting 

a growth rate of 16.1 %. Through this disproportionately 

large growth in the traffic of the terminal, the HHLA 

Group increased its share in the total container traffic in the 

port of Hamburg from 65,2 % to 69,1 %. HHLA has hence 

consolidated further its leading position for container traffic 

in the port of Hamburg in 2006. A notable contribution 

to these sales was made by HHLA Container Terminal 


Burchardkai GmbH (CTB). Notwithstanding conversion 

measures to extend capacity, productivity remained at a 

high level. Important elements of the third extension phase 

of the container terminal were implemented at HHLA Container-Terminal 

Altenwerder GmbH (CTA). 

At the beginning of the year, HHLA Container Terminal 

Tollerort GmbH (CTT) acquired the Rosshafenterminal. 

HpC ukraine, a subsidiary of HpC GmbH, 

acquired a further container gantry during the reporting 

year. This created the precondition for an increase in the 

volume of container traffic. With extensive extension and 

conversion measures, the Containers Division again enjoyed 

the greatest share in the investments made by the 

HHLA Group, with EuR 133.4 million in 2006. 

The companies in the Intermodal division further 

profited in 2006 from the growth in traffic in the Hamburg 

port. The consolidated sales of this division rose 22.1 % to 

EuR 279.5 million. Whereas the trains operators (Metrans, 

polzug and Transfracht) recorded volume growth of 14.3 %, 

combisped Hanseatische Spedition GmbH reported 

volume growth of 79.9 %. The development in volume and 

sales terms of the transport going through the Container 

terminal Lübeck to the Baltic region did not match expectations 

in the reporting year. 

In 2006 the logistics division again benefited from 

the continuing growth of the port of Hamburg. Consolidated 

segment sales of this division rose by 15.0 %, from 

EuR 96.6 million to EuR 111.1 million. The Frucht- und 

kühlzentrum, a fruit handling center, extended its already 

well-established position significantly. Total turnover was 

up on the prior year by 26.2 %. uNIkAI Lagerei und Speditionsgesellschaft, 

which specialises in vehicle logistics, 

obtained a sales increase of 17.1 %. 

The real estate division is the only operating area 

that is directly subordinate to HHLA Holding, except where 

it has taken on legal independence in the form of property 

companies. All activities in the division contributed to an 

increase in sales. Rentals of logistics facilities were close 

to capacity. The segment sales of the Real Estate Division 

and the Holding rose by 14.1 % to stand at EuR 38.9 million 

(prior year EuR 34.1 million). 

73


perSonnel manaGement 

NuMBER OF EMpLOyEES SHARpLy up 

The worldwide workforce of the HHLA Group as at 31 De- 

cember 2006 numbered 4,215 employees (2005: 3,869 

employees). Of these, 1,957 were wage earners (2005: 

1,661), 2,146 were salaried (2005: 2,094) and there were 

112 apprentices (2005: 114). 

In 2006 it was again the Container Division that employed 

the greatest number. 

number of Staff 31.12.2006 

Once again, employee health was an important focus of 

personnel management. The introduction of supplemen- 

tary orthopaedic modules for occupation-related check- 

ups, and short exercise programmes tailored to the work 

duties of dockers, was completed. In view of the frequency 

and severity of accidents on sea-going ships, the HHLA 

container terminals document the sources of danger on 

such ships. This is a contribution to work protection and 

minimising the hazards faced by seamen. The number of 

industrial accidents was reduced in 2006 by about 40 %. 

In the reporting year, a major step towards social and 

socio-political responsibility was taken with the introduc- 

tion of lifetime work accounts. The purpose of these ac- 

counts is for employees to be able to obtain leave, which is 

constituted by accumulation of credits, secured in respect 

of social security insurance, prior to reaching their pen- 

Salaried employees Wage earners apprentices total 

Holding 304 38 77 419 

Container 1,151 1,449 30 2,630 

Intermodal 360 256 2 618 

Logistics 271 188 0 459 

Real Estate 60 26 3 89 

2,146 1,957 112 4,215 

sionable age, while retaining full claims under the collective 

pay agreement. The credits were paid in by the company 

to a money and investment fund. 

Through the conclusion, in 2006, of the collective pay 

agreement “Demographic change, global competition and

company social policy”, an instrument was created to pre- 

pare for demographic change. On the basis of analyses of 

the company age structure, approaches and instruments 

were developed for an age-appropriate company social pol- 

icy in order to maintain the effectiveness of the workforce 

at a sufficiently high standard. 

In 2006, too, the HSL Hamburg School of Logistics 

was given support under a sponsorship scheme. The 

Hamburg School of Logistics specialises in management 

and logistics, offering research, teaching and training 

programmes. Sponsorships continue to be given, on an 

individual basis, to the educational center, Hamburger Aus- 

bildungszentrum II. More than 437 training measures were 

carried out in 2006 in the HHLA Group’s own technical 

college. More than 2,000 Group employees took part in 

the training measures. 

reSearCh and development In the Group 

FuRTHER DEvELOpMENT OF THE TERMINAL CONTROL 

Tougher competition in national and international markets 

and growing demands from customers in respect of pro- 

ductivity, flexibility and quality are generating consider- 

able pressure to innovate on the companies of the HHLA 

Group. Research and development activities oriented on 

this were continued in the reporting year. They contribute 

to the creation of services that are requested by cus- 


tomers and ensure that the HHLA companies will be well 

positioned in future, too, in competing to provide the most 

productive solutions. 

Hence in 2006 the HHLA Group developed further 

the technologies and services that it uses. These include, 

among others, the development of a new container op- 

erator system for the HHLA Container Terminal Tollerort. 

In collaboration with the Technical university Harburg and 

Thyssenkrupp, a module system was developed for the 

foundation of craneways for the block stores of HHLA 

Container Terminal at Burchardkai. MaTIB (Management 

for Transport und Incidents), a subsidised project for shifting 

more traffic to rail using IT-aided workflow management, 

was continued. 

other Important eventS oF the reportInG year 

ACquISITION OF FuRTHER LOGISTICS pROpERTIES 

HHLA Container Terminal Tollerort GmbH, a subsidiary, 

acquired Rosshafen Terminal GmbH with effect from 1 

January 2006. With this acquisition, the HHLA Group considerably 

expanded its stock of logistics properties and 

consolidated its position as a supplier of attractive logistics 

properties. 

75


Financial report 

Changeover of accounting to International Financial Reporting Standards (IFRS) 

The EU decision to make International Financial Repor- 

ting Standards (IFRS) binding for all listed companies as 

from 2005 has had a major effect on German accounting 

practice. IFRS has enabled annual financial statements to 

be internationally comparable and transparent, something 

that is growing in importance with globalisation and inter- 

nationalisation of the economy. 

The HHLA Group presented for the first time consoli- 

dated financial statements according to IFRS, with exem- 

ptive effect pursuant to § 315a HGB, as at 31 December 

2006. 

The consolidated financial statements were prepared in 

accordance with IFRS 1. 

principal Financial indicators 

In mILLIOn EUROS 

control oF the enterprise 

ROCE ExCEEDS THE 20 % mARk 

In 2006, too, the HHLA Group pursued successfully its 

goal of increasing the company value by strengthening its 

market position and by significant sustained growth in its 

Container, Intermodal, Logistics and Real Estate Divisions. 

The key indicator used by the HHLA Group is ROCE, return 

on capital employed. 

2006 2005 ∆ in % 

Sales revenues 1,017.4 832.9 22.2 

Cash flow from operating activity 199.7 160.7 24.3 

Group operating result (EBIT) 218.1 146.6 48.8 

2006 2005 ∆ in % points 

ROCE 24.4 % 19.3 % 5.1 

In the reporting year, ROCE was raised from 19.3 % to 

24.4%. This was supported by the operating consolidated 

result, with EBIT climbing more than the capital employed. 

In the reporting year, the operating consolidated result, 

EBIT, was EUR 218.1 million before minority shares (prior 

year EUR 146.6 million). 

In the HHLA Group, ROCE is calculated as follows: 

Earnings before tax and interest, and before minority shares (EBIT) 

ROCE = 

Average operating assets 

The numerator is composed of earnings before taxes, be- 

fore the interest result recorded in the accounts, before 

interest expense attributable to pension provisions (IC) and 

before minority shares. The denominator is determined by 

the assets side; it is computed from the net fixed assets 

(tangible and intangible assets, investment property and 

financial assets) and the net current assets (inventories 

plus trade receivables less trade payables). 

Development oF earnings 

COnSOLIDATED EARnInGS ARE wELL ABOvE THE 

GOOD RESULTS ACHIEvED In THE pRIOR yEAR 

overview of selected results 

In mILLIOn EUROS 

hhla group 2006 2005 ∆ in % 

Total operating revenues 1,024.8 839.0 22.1 

Sales revenues 1,017.4 832.9 22.2 

EBIT 218.1 146.6 48.8 

EBT 

group profit for the year 

186.8 113.7 64.3 

- after income taxes 116.9 69.4 68.4 

- after minority shares 97.1 57.2 69.8

In the financial year 2006, the HHLA Group surpassed all its 

budget figures. The steady growth in the port of Hamburg and 

the continual optimisation of the overall system contributed 

considerably to this. The total output of the HHLA Group 

reached EuR 1,024.8 million in the reporting year 2006. Hence 

the output of HHLA grew by 22.1 % over the prior year (EuR 

185.8 million). Group sales rose in the reporting year by EuR 

184.5 million to EuR 1,017.4 million, thereby passing the EuR 

1 billion mark for the first time in the Company’s history. The 

operating Group result, EBIT, achieved in the reporting year 

2006 EuR 218.1 million, 48.8 % higher than in the prior year. 

All divisions were involved in contributing to this increase in 

results. But a significant proportion was contributed by the 

Containers Division, which contributed this year, too, the most 

to Group results in absolute terms. 

The cost of materials in the reporting year 2006 rose by 

20.8 % to stand at EuR 397.2 million, in parallel with the total 

operating revenues (prior year: EuR 328.8 million). The mate- 


rial expense ratio (cost of materials/total operating revenues) 

was 38.8 % (prior year 39.2 %). 

Because of the increase in the workforce by 346 to 

4,215 (prior year: 3,869), personnel expenses (excluding the 

interest portion of the pension provision) in the reporting year 

rose by 11.7 % to stand at EuR 236.8 million (prior year: EuR 

212.0 million). The personnel expense ratio (personnel expenses 

/ total operating revenues) was 23.1 % (prior year 

25.3 %). The financial result of EuR –31.3 million was at 

the same level as in the prior year, when it was EuR –32.9 

million. 

Sales revenues of the Financial year ended 31 december 2006, 

broken down by division 

IN THOuSAND EuROS 

divisions Container Intermodal logistics 

real estate 

and holding 

Divisional sales revenues 672,378 316,011 121,533 149,998 

Revenues within the division 82,678 34,849 7,307 86 

Subtotal 589,700 281,162 114,226 149,912 

Revenues between divisions 1,843 1,645 3,083 110,993 

Consolidated sales of division 587,857 279,517 111,143 38,919 

Sales revenues of the Financial year ended 31 december 2005, 

broken down by division 

IN THOuSAND EuROS 

divisions Container Intermodal logistics 

real estate 

and holding 

Divisional sales revenues 540,450 252,189 105,121 142,362 

Revenues within the division 65,934 20,641 5,336 3 

Subtotal 474,516 231,548 99,785 142,359 

Revenues between divisions 1,279 2,566 3,185 108,238 

Consolidated sales of division 473,237 228,982 96,600 34,121 

77


net aSSetS and CapItal StruCture 

EquITy RATIO INCREASED TO 21.6 % 

development of the hhla Consolidated 

balance Sheet 

assets equity and liabilities 

1,199.6 BALANCE SHEET TOTAL 1,199.6 

977.6 

220.0 

1,045.8 

796.6 

249.2 

Group equity as at 31 December 2006 was EuR 258.7 million 

(prior year EuR 151.9 million). Group total assets (balance 

sheet total) rose in the reporting year by EuR 153.8 million to 

stand at EuR 1,199.6 million as at 31 December 2006. The 

high level of investments continued in 2006. Fixed assets, 

with a capitalisation ratio of 75.7 % (prior year 68.6 %), rose 

by 26.6 %, from EuR 717.1 million as at 31 December 2005 to 

EuR 907.9 million as at the balance sheet date. 

pension provisions fell in the reporting year by EuR 

6.6 million, to stand at EuR 377.4 million as at the balance 

sheet date. 

Fixed assets 

Curent assets 

Shareholders’ equity 

In computing the pension provision, a discount rate of 

4.25 % (prior year 4.00 %) was applied. 

pension 

provisions 

Long-term 

financial liabilities 

Other 

long-term debt 

Current debt 

258.7 

377.4 

303.7 

55.2 

204.6 

1,045.8 

151.9 

384.0 

310.0 

32.3 

167.6 

2006 2005 2006 2005 

development of Group equity, equity 

ratio, and Gearing ratio 

MILLION EuROS %/ratio 

300 

250 

200 

150 

100 

50 

0 

14.7 14.5 % 

5.5 % 

1.1.2005 

Definition of the gearing ratio: 

The net financial debt in the numerator is made up of loan 

liabilities less liquid funds. The denominator is the Group 

equity at the balance sheet date 31 December 2006. 

InveStmentS and FInanCInG 

A MuCH HIGHER INvESTMENT vOLuME WAS FINANCED 

ALMOST COMpLETELy FROM THE CASH FLOW FROM 

CuRRENT BuSINESS ACTIvITy 

2005 2006 

Group shareholder’s equity equity ratio gearing ratio 

3.9 

Net financial debt + pension provisions 

Group equity 

21.6 % 

In 2006, too, the HHLA Group continued its high level of 

investment. The biggest share went to the Containers Divi- 

sion. With spending of EuR 133.4 million, this division had 

a share of 65.2 % in the overall investment of the Group. 

The investment project of HHLA Container Terminal 

Burchardkai (CTB), which will total EuR 600 million, was 

continued in 2006 with spending of EuR 57.8 million (prior 

year: EuR 27.0 million). The railway station was recons- 

tructed and the seaward side expanded; the logistics 

software was developed further. The handling throughput 

2.5 

20 

10 

0

Investment volume by division 

IN MILLION EuROS 

of HHLA Container Terminal Altenwerder (CTA) increased 

further at the same time as the terminal was being expan- 

ded. Major elements of the third building phase for the 

expansion of capacity were implemented. 

Cash flow from operating activity was EuR 199.7 mil- 

lion (prior year EuR 160.7 million). This is mainly a reflection 

of the much higher Group profit in the financial year 2006. 

The cash flow from operating activity was almost sufficient 

this year, too, to finance the investments. Loan liabilities 

to banks amounted to EuR 320.0 million (prior year EuR 

319.8 million EuR). 


Container Intermodal logistics real estate holding total 

Intangible assets 39.5 0.8 0.6 - 0.6 41.5 

Tangible assets and investment property 92.9 26.5 15.7 1.8 23.9 160.8 

Financial assets 1.0 0.1 - - 1.3 2.4 

Fixed assets 2006 133.4 27.4 16.3 1.8 25.8 204.7 

Fixed assets 2005 81.7 13.3 7.3 2.5 12.6 117.4 

Change in % 63.3 106.0 123.3 - 28.0 104.8 74.4 

overview of Selected Financial Indicators 

IN MILLION EuROS 

hhla Group 2006 2005 ∆ in % 

EBITDA 296.4 210.2 41.0 

Cash flow from operating activity 199.7 160.7 24.3 

Investments 204.7 117.4 74.4 

79


rISk report 

the rISk manaGement SyStem 

The aim of the risk management system is to promote a 

conscious approach to corporate risks and hence to avoid 

any threat to the existence of the HHLA Group. Risk man- 

agement in this connection means the entirety of organisa- 

tional rules and measures for risk detection and active 

handling of the risks inherent in any entrepreneurial activity. 

The principal elements of the risk management system 

have been set out in a group directive that is binding for all 

companies in which HHLA Holding has a majority stake. 

key elements in the risk management system are clear 

responsibilities for early detection, control and communication 

of risks, unambiguous definitions for risk categories 

and fields, reports routines and strategic principles. Risk 

management and risk reporting are intended to promote 

entrepreneurial thinking and the assumption of responsibilities 

for actions. 

An inventory of risks is undertaken regularly as part 

of the annual planning process. Risks must generally be 

quantified if reliable and recognised methods are available 

and the quantification is economically feasible and of 

practical relevance in assessing the risk. The risk presentation 

is undertaken using Groupwide reporting formats in 

order to develop a consistent overall picture of the general 

risk position. The internal audit function is responsible for 

the systems audit of the risk management system as well 

as the external auditor. 

rISk poSItIonS 

As the management holding, HHLA Holding is exposed 

to the specific risks of the different divisions through its 

subsidiaries. These include in particular strategic, market, 

financial, personnel and other risks. 

STRATEGIC RISkS 

Significant strategic risks result for the future development 

of HHLA from: 

The necessary development of the regional transport infrastructure 

of the port of Hamburg, in order to respond 

to the steady growth in container traffic. Adjustments 

to the channels in the Elbe are of existential importance 

as ships get bigger: it is essential for the Elbe to be 

navigable for the new generation of large container ships. 

Since the planning approval process for the channel 

adjustments was initiated on 12 September 2006, the 

realisation of the project has not been seriously in question. 

None the less, considerable risks would arise in 

the event of further delays to the project. Moreover, the 

regional road and rail infrastructure must be modernised 

in order to assure container access to the hinterland. Of 

special importance for the port economy are the bridge 

across the port (the A 252 road) and an improvement in 

the rail connections with the port. It may be assumed that 

the infrastructure projects will continue to be pursued; 

the consultation process started in the middle of 2006 

by the Eu commission on future Eu ports policy. It is 

intended that the efforts at liberalisation will concentrate 

first on the introduction of transparency and subsidy 

directives, as demanded by all involved following the 

failure of the two “port package” legislative processes. 

various workshops will be held until the middle of 2007 

on the still undecided direction Eu ports policy is to take, 

and the ports industry will seek to represent its concerns 

in these workshops.

MARkET RISkS 

The main market risks of the future development of HHLA 

result from: 

The consolidation which is expected to continue in the 

container ship sector. The effects of the market concen- 

tration on consortia, services and quantities structures 

cannot at present be forecast in any detail. Generally 

speaking, consolidation will increase the market power 

of the remaining consortia and shipping companies. On 

the other hand, as the consortia and shipping companies 

become larger, so it becomes more difficult for them to 

change container terminal; 

excess handling capacity of the container terminals. All 

the operators on the Hamburg-Antwerp range are plan- 

ning to increase their handling capacity considerably. 

If the container traffic serving the Hamburg to Antwerp 

chain of ports does not achieve the forecast growth, a 

temporary oversupply of handling capacity would lead 

to sharper price competition. For this reason, the invest- 

ment programmes to expand the container terminals 

are being kept as flexible as possible, so they can be 

adjusted to the forecast demand. 

HHLA intermodal companies, too, must develop their 

capacities in response to the dynamic volume growth 

in line with demand in competition with other suppliers. 

HHLA counters the resulting danger of a lack of elasti- 

city in the costs in the event of fluctuations in capacity 

utilisation by diversification of its customer structure and 

long-term contracts. 

FINANCIAL RISkS 

Liquidity risks: 

The central tasks of HHLA Holding include the optimisation 

of the group finances and limiting financial risks. HHLA 

Holding is responsible for the financing of all the compa- 

nies. Liquidity is controlled and monitored by means of a 

Groupwide cash clearing system. The Group ensures that 

liquidity is assured at all times by medium-term liquidity 

planning, with different end-payment terms for the loans 

and finance leases as well as through existing credit lines 

and other financing approvals. 

Currency and interest risks: 


Derivative financial instruments are deployed in the HHLA 

Group to reduce interest rate risks as well as, to a small 

extent, to reduce risks arising from fluctuations in currency 

and raw materials prices. Interest rate risks are largely 

hedged by the use of interest derivatives. 

Most of the services rendered by the HHLA Group 

are performed at Hamburg. Only in the Intermodal Division 

are cross-border services rendered. Invoicing is in euros or 

by reference to the euro. The magnitude of currency and 

transfer risks is slight. 

Default risks: 

The HHLA Group enters business relationships on a credit 

basis only with third parties that are reputable and credit- 

worthy. A creditworthiness test is carried out on custom- 

ers wishing to conclude transactions with the Group on 

a credit basis. The receivables are monitored continually 

and, when risks arise, adjustments are formed so that the 

HHLA Group is not exposed to any further significant bad 

debt risk in the area of receivables. 

The bad debt risk from the derivative financial in- 

struments would arise theoretically from a default of a 

counterparty and hence corresponds to the carrying va- 

lue of the instruments. Since the HHLA Group only enters 

into derivative financial transactions with counterparties 

with premium credit standing, the actual risk of default is 

minimal. 

At present there are no significant financial risks. 

pERSONNEL RISkS 

personnel is hired and developed in liaison with the sub- 

sidiaries and other participatory investments by HHLA 

Holding with the aim of achieving an optimal balance in 

terms of age structure, qualifications and fluctuation. 

A decisive role is played within the HHLA Group 

by further training in its efforts to recruit and retain well- 

qualified personnel. The human resources policy of the 

HHLA Group involves training of new entrants to the oc- 

cupation at the HHLA technical college through to training 

measures carried out by the Hamburg School of Logistics. 

By selecting its employees carefully and then supporting 

81


them during their training period, it has been possible to 

hire all apprentices, avoid operational dismissals and to 

keep fluctuation low. Against the background of these 

measures, no specific personnel risks are discernible. 

OTHER RISkS 

All HHLA handling facilities have adopted the International 

Ship and port Facility Security Code (ISpS Code) that 

came into force on 1 July 2004, and which is designed to 

achieve a maximum of protection for ships and port facilities 

against any terrorist attacks. 

At the European level, a further toughening of the 

security regulations is being sought. The ports industry is 

unhappy about these efforts. It is expected that the rent 

for quay walls and areas will be raised in the coming years. 

At the time of reporting, nothing definite had emerged from 

the negotiations. Where uncertainty exists, appropriate 

provisions have been set up. 

In the planning resolution on the development of the 

CTB, conditions were attached that, apart from various 

environmental aspects, in particular on emissions, relate to 

flood protection and police requirements relating to the river 

and shipping. There is additionally a general risk inherent 

in further requirements in the event of the project having 

unforeseeable negative effects. This risk was accounted for 

in the reporting year by an appropriate provision. 

Apart from unpredictable natural events (flood, hail, 

lightning, fire), for which event the local and port authorities 

have extensive emergency programmes in place, no 

significant risks are detectable or, where discernible, they 

are largely covered by insurance policies. 

overall preSentatIon oF opportunItIeS and rISkS 

All in all, the risks faced by the HHLA Group take the form 

of strategic and market risks. unless the navigation channels 

in the river Elbe are improved quickly, the development 

of the container terminals will be put at risk. Further 

significant risks arise from the continuing consolidation of 

the container ship sector, any excess handling capacity at 

the container terminals on the Hamburg-Antwerp range, 

and the peril presented by natural events, in particular in 

the form of floods. The risks identified do not present any 

imperilment to the going concern. At present, there are no 

risks in sight that would pose a threat to the continuation 

of the Company. 

On the contrary, the continued growth in international 

container traffic presents opportunities for the 

HHLA Group. If the navigation channels in the Elbe are 

optimised promptly, the location enjoyed by the port of 

Hamburg offers considerable potential for growth, especially 

in the Containers Division. Apart from the planned 

organic growth of HHLA container terminals, it is possible 

that acquisition or participation opportunities will arise in 

the strategically important Baltic region, as well as an expansion 

of the container terminal at Odessa on the Black 

Sea, and these opportunities are under continual scrutiny 

by HHLA. 

The Intermodal Division will enjoy a disproportionately 

high share in the steady growth of container traffic. It 

is possible that a transfer of container traffic from road to 

rail will be accelerated by new environmental measures. 

The development possibilities in the Logistics Division 

have improved as a result of strategic partnerships. 

For example, as at 1 January 2007 the 49 % participation 

of the Grimaldi shipping line in uNIkAI Lagerei- und Speditionsgesellschaft 

mbH consolidated the market position, 

opening up further possibilities of collaboration in roll-on 

roll-off handling. 

In the light of continuing high demand for logistics 

properties in and close to the port of Hamburg, possibilities 

present themselves for the Real Estate Division, especially 

in the form of revenues.

eport on eventS aFter 

the balanCe Sheet date 

With effect from 1 January 2007, Grimaldi Compagnia di 

Navigazione SpA, Naples, assumed a 49 % participation 

in unikai Lagerei- und Speditionsgesellschaft mbH. 

The shareholder of HHLA is considering a stock 

exchange flotation of HHLA AG in 2007. About 30 % of the 

ordinary shares would be offered on the stock exchange. 

The employees of HHLA would be granted an attractive 

offer to acquire HHLA shares. The landed property and 

the commercial exploitation of the Hamburg Speicherstadt 

and Fischmarkt (an historical warehouse and fishmarket 

area) would continue under the control of HHLA. 

ForeCaSt 

The investments initiated in the financial year 2006 in the 

Containers Division will be continued in the financial year 

2007. In view of the overall positive starting position for 

all four divisions, for the financial years 2007 and 2008 a 

Hamburg, June 25th 2007 

HAMBuRGER HAFEN uND LOGISTIk AkTIENGESELLSCHAFT 

klaus-Dieter peters Dr. Stefan Behn Gerd Drossel Rolf Fritsch Dr. Roland Lappin 


In view of the special significance of these properties 

for Hamburg and HHLA, it is intended that third parties 

would be excluded from the outset from having any say 

on these matters. To this end, it is planned that special 

“Speicherstadt” shares would be issued which would be 

reserved for the Hanseatic City of Hamburg and hence 

remain unlisted. 

Otherwise, there were no occurrences after the end 

of the reporting year with any significance for the net 

assets, financial position or results of operations of the 

HHLA Group. 

positive starting position for a continuation of the good sales and results development 

corresponding situation in sales and results is expected. 

Due to a planned change in tax law, the Company expects 

deferred tax assets of about EuR 10.0 million to 

be lost. 

83


Consolidated Balance Sheet as at 31 December 2006 

Assets 

a. Fixed assets 

31.12.2006 31.12.2005 

Notes eUR ’000 eUR ’000 

I. Intangible assets 19 63,121 25,040 

II. tangible assets 20 681,746 612,098 

III. Buildings held as financial investments 21 163,068 79,977 

IV. Financial assets 22 5,982 3,495 

V. Deferred taxes 15 63,765 75,954 

B. Current assets 

977,682 796,564 

I. Inventories 23 16,362 18,006 

II. trade receivables 26 132,930 100,213 

III. Receivables from related parties 27 18,919 90,011 

IV. Other financial receivables 25 14,658 13,279 

V. Other assets 28 10,895 6,080 

VI. Claims for reimbursement of income taxes 29 2,565 3,324 

VII. Cash and cash equivalents 30 22,118 18,304 

VIII. Long-term assets held for sale 24 3,510 0 

221,957 249,217 

1,199,639 1,045,781

Consolidated Balance Sheet as at 31 December 2006 

shARehOLDeRs’ eqUIty AND LIABILItIes 

ConSoliDateD FinanCial StatementS 

31.12.2006 31.12.2005 


a. Shareholders’ equity 

I. subscribed capital 53,300 53,300 

II. Capital reserve 35,730 35,730 

III. equity generated 117,217 31,113 

IV. Comprehensive income 2,388 - 2,355 

V. Minority interests 50,069 34,116 

31 258,704 151,904 

B. long-term debt 

I. Pension provisions 33 377,366 383,993 

II. Other long-term provisions 34 38,973 29,710 

III. Financial liabilities 35 303,741 309,963 

IV. Deferred taxes 15 16,289 2,638 

736,369 726,304 

C. Current debt 

I. Current provisions 34 14,561 9,236 

II. trade liabilities 36 64,171 51,334 

III. Liabilities to related parties 40 2,276 933 

IV. Other financial liabilities 35 68,397 64,262 

V. Other liabilities 37 35,065 28,899 

VI. Payments obligations from income taxes 38 20,096 12,909 

204,566 167,573 

1,199,639 1,045,781 

85


Consolidated income Statement 

FROM 1 JANUARy tO 31 DeCeMBeR 2006 

2006 2005 


1. sales revenues 5 1,017,436 832,940 

2. Changes in inventories 6 - 1,910 3,025 

3. Own work capitalised 7 9,320 3,022 

4. Other operating income 8 22,277 13,765 

5. Cost of materials 9 397,173 328,805 

6. Personnel expenses 10 236,781 211,997 

7. Other operating expenses 12 116,735 101,800 

8. earnings before interest, taxes, depreciation and amortisation (eBItDA) 296,434 210,150 

9. Amortisation and depreciation 11 78,333 63,562 

10. earnings before interest and taxes (eBIt) 218,101 146,588 

11. Interest income 13 4,919 4,929 

12. Interest expense 13 36,233 37,148 

13. Other financial result 13 - 7 - 656 

14. earnings before taxes (eBt) 186,780 113,713 

15. taxes 15 69,832 44,314 

16. Group profit (net income) for the year 116,948 69,399 

- thereof minority shares in the net income for the year 16 19,844 12,214 

- thereof shares of the shareholders of the parent company in the net income for the year 97,104 57,185 

earnings per share (diluted and undiluted) 17 eUR 97,103.73 eUR 57,185.18 

Schedule of income and expenses 

2006 2005 

eUR ’000 eUR ’000 

Group profit (net income) for the year 116,948 69,399 

Actuarial gains/losses 7,624 - 7,259 

Cash flow hedges 1,192 308 

Currency differences 688 2,328 

Deferred taxes on changes recorded under equity - 3,575 2,909 

sundry 0 8 

income and expenses recorded under equity 5,929 - 1,706 

total income and expenses 122,877 67,693 

- thereof shares of shareholders of the parent company 101,767 54,686 

- thereof minority shares 21,110 13,007 

122,877 67,693

Cash Flow Statement 

FOR the FINANCIAL yeAR 2006 

1. Cash flow from operating activity 

ConSoliDateD FinanCial StatementS 

2006 2005 


earnings before interest and taxes (eBIt) 218,101 146,588 

Revaluation, amortisation and depreciation on non-financial long-term assets 11 78,047 63,562 

Increase in provisions - 677 - 13,421 

Gains/losses on disposal of assets - 1,883 2,665 

Increase in inventories, in trade receivables and in other 

assets not attributable to investing or financing activity - 42,598 - 11,172 

Increase in trade payables and in other 

liabilities not attributable to investing or financing activity 19,171 14,481 

Receipts of interest 4,919 4,929 

Disbursements for interest - 20,878 - 20,885 

Income taxes paid - 53,033 - 27,564 

Other effects - 1,484 1,534 

Cash flow from operating activity 199,685 160,717 

2. Cash flow from investing activity 

Receipts from disposals of tangible and intangible assets 10,833 5,838 

Disbursements for investments in tangible assets and buildings held as financial investment - 159,691 - 115,968 

Disbursements for investments in intangible assets - 9,966 - 2,102 

Disbursements for investments in long-term financial assets - 2,429 - 1,103 

Disbursements or receipts from the acquisition or sale of consolidated 

companies and other business units 4 - 87,678 12,138 

Cash flow from investing activity - 248,931 - 101,197 

3. Cash flow from financing activity 

Receipts from additions to equity 0 41,500 

sale of treasury shares 0 295 

Dividends paid to shareholders of the parent company 32 - 11,000 - 8,000 

Dividends paid to minority shareholders 32 - 5,081 - 3,145 

Redemption of lease liabilities - 4,616 - 2,123 

Receipts from the issue of bonds and the take-up of (financial) loans 15,477 5,000 

Disbursements from the redemption of bonds and (financial) loans - 14,439 - 23,731 

Cash flow from financing activity - 19,659 9,796 

4. Cash and cash equivalents at the end of the period 

Change in cash and cash equivalents (subtotals 1–3) - 68,905 69,316 

Changes in cash and cash equivalents due to changes in exchange rates 319 1,572 

Cash and cash equivalents at the beginning of the period 105,104 34,216 

Cash and cash equivalents at the end of the period 42 36,518 105,104 

87


annex to group 

financial statements 

preface 

1. Basic information about the Group 90 

2. First-time application of IFRS 91 

3. Consolidation and accounting principles 94 

4. Company purchase 104 

comments on the consolidated income 

statement 

5. Sales revenues 106 

6. Changes in inventories 106 

7. Own work capitalised 106 

8. Other operating income 106 

9. Cost of materials 107 

10. Personnel expenses 107 

11. Amortisation and depreciation 107 

12. Other operating expenses 108 

13. Financial result 108 

14. Research and development costs 109 

15. Income taxes 109 

16. Results attributable to minority shares 110 

17. Earnings per share 110 

18. Paid and proposed dividends 111

comments on the consolidated Balance 

sheet 

19. Intangible assets 112 

20. Tangible assets 114 

21. Buildings held as financial investments 116 

22. Financial assets 116 

23. Inventories 118 

24. Long-term assets held for sale 118 

25. Other financial receivables 118 

26. Trade receivables 118 

27. Receivables from related parties 118 

28. Other assets 119 

29. Claims for reimbursement of income taxes 119 

30. Cash and cash equivalents 119 

31. Shareholders’ equity 119 

32. Statement of changes in equity 120 

33. Pension provisions 122 

34. Other long-term and short-term provisions 124 

35. Short and long-term financial liabilities 125 

36. Trade liabilities 126 

37. Other liabilities 127 

38. Payments obligations from income taxes 127 

39. Leases, performance risks and 

other obligations 127 

other comments 

annex to group financial statements 

40. Disclosure on related parties 129 

41. Objectives and methods of finance 

risk management 133 

42. Comments on the consolidated cash flow statement 135 

43. Members of the corporate bodies 135 

44. Events occurring after the balance sheet date 138 

89


preface 

1. Basic information aBout the group 

The parent company of the Group is Hamburger Hafen und 

Logistik Aktiengesellschaft, Bei St. Annen 1, Hamburg (ab- 

breviated below to HHLA), which is filed at the commercial 

register of Hamburg under number HRB 1902. The ultimate 

parent company, which is senior to the HHLA Group, is 

HGV Hamburger Gesellschaft für Vermögens- und Beteili- 

gungsmanagement mbH, Hamburg. 

The consolidated financial statements of HHLA and 

its subsidiaries for the financial year 2006 were prepared 

for the first time in accordance with International Financial 

Reporting Standards (IFRS), as applicable in the European 

Union. The regulations of the ordinance (EC) No. 1606/2002 

of the European Parliament and the Council of 19 July 2002 

relating to the application of international accounting stand- 

ards in conjunction with § 315a (3) HGB as well as supple- 

mentary commercial law provisions have been observed. 

The requirements of IFRS have been met in full and lead to 

the presentation of a true and fair view of the net assets, 

financial position and results of operations of the HHLA 

Group. Further information on the reconciliation of the an- 

nual financial statements of the commercial law principles 

with accounting under IFRS under application of IFRS 1 

are given in section 2. 

The financial year of HHLA and its consolidated sub- 

sidiaries is the calendar year. The closing date of the con- 

solidated financial statements is the same as that of the 

parent company. The income statement has been drawn 

up using the type-of-expenditure format. The consolida- 

ted financial statements and the disclosures in the notes 

are denominated in euros. Unless otherwise stated, all 

amounts are in thousand euros (EUR’000). 

The consolidated financial statements have been prepared 

generally using the historical cost principle. This is with the 

exception of derivative financial instruments and financial 

investments held for sale, these being measured at fair 

value. The present consolidated financial statements of 

HHLA for the financial year ended 31 December 2006 were 

approved on 25 June 2007 by resolution of the Executive 

Board for submission to the Supervisory Board. The Su- 

pervisory Board has the task of examining the consoli- 

dated financial statements and declaring whether it ap- 

proves of them. It is planned to publish the consolidated 

financial statements on 12 July 2007. 

DIVISIONS OF THE HHLA GROUP 

HHLA is engaged in the following four fields of business: 

Container 

With its high-performing container terminals, HHLA assures 

the outstanding importance of the Port of Hamburg as a logistics 

center for bulk cargo. About two-thirds of all containers 

arriving at the Port of Hamburg are handled at the three HHLA 

terminals Altenwerder, Burchardkai and Tollerort. This business 

field (division) also includes comprehensive services connected 

with containers and loading and unloading of ships. 

Intermodal 

The Intermodal Division provides a complete trifocal offer of 

transport solutions for the hinterland of the Port of Hamburg. 

CTD Container-Transport-Deist GmbH serves the metropolitan 

area of Hamburg by road, and the HHLA rail participations 

HHLA Transfracht, METRANS and Polzug provide access to a 

comprehensive continental network of destinations in Central 

and Eastern Europe. Through its container terminal at Lübeck,

the HHLA subsidiary combisped connects the Baltic area di- 

rectly and quickly with the Port of Hamburg. HHLA transport 

companies place high importance on comprehensive ser- 

vice – from customs processing through to house-to-house 

service. 

Logistics 

Special handling, contract logistics and consultancy – the Logistics 

Division covers a large range of services that constitute 

the diversity of the Port of Hamburg. 

Real Estate 

Since the formation of HHLA, real estate in and close to the 

Port of Hamburg have belonged to the core business of HHLA. 

HHLA rents functional office buildings, warehouses and industrial 

premises. In the Speicherstadt, a historical warehouse 

area, HHLA is engaged in the structural transformation from 

historical warehousing to a modern mix of uses with offices 

and cultural facilities. 

2. first-time application of ifrs 

The consolidated financial statements as at 31 December 

2006 were prepared according to the provisions of IFRS 

1. Hence the time of changeover in the meaning of IFRS 1 

was 1 January 2005. The last published commercial law 

consolidated financial statements of HHLA were prepared 

as at 31 December 2005. IFRS 1, which governs the initial 

application of IFRS, provides generally for all standards 

that were valid as at the closing date 31 December 2006 

to be applied retrospectively. 

With regard to the retrospective application of IFRS, 

the following alleviations of IFRS 1 were utilised: 

IFRS 3 has not been applied for business combinations 

that took place prior to the changeover date. Instead, the 

goodwill recognised in the previous financial statements 

has been adopted. In the case of goodwill resulting from 

the consolidation of foreign group entities, this has been 

recognised, for purposes of currency translation, as before, 

in the functional currency of HHLA. 

In determining the acquisition or manufacturing costs of 

buildings and other assets which are subject to obliga- 


tions of restoration to original state or demolition, there 

has not been any retrospective recognition of changes 

to the provisions to meet restoration or demolition obligations 

that were incurred prior to the date of the transition 

to IFRS. Instead, the provisions were measured at 

the time of the changeover to IFRS, in accordance with 

IAS 37, and the acquisition costs of the relevant assets 

arising therefrom were computed as best as possible 

by discounting to the time of the initial incurrence of the 

obligation. The depreciation accumulated in the period 

before the changeover to IFRS was calculated using the 

useful lives and depreciation methods that apply for IFRS 

consolidated financial statements. 

In connection with pension obligations, no retrospective 

application of IAS 19 on the recognition of actuarial gains 

and losses has been made. At the time of the changeover 

to IFRS, the pension obligations were recognised 

as Defined Benefit Obligation. 

No retrospective application of IAS 21 on the translation 

of foreign companies has been made. The balancing item 

from the foreign currency translation was therefore set 

at zero at the time of changeover. 

Various adjustments are necessary for changing from accounting 

under German commercial law (HGB) to IFRS. The 

following tables show the effects of these adjustments in 

the reconciliation of the equity of the HHLA Group as at 

1 January 2005 and 31 December 2005, and of the Group 

profit for the financial year 2005 from HGB to IFRS. 

91


reconciliation of equity as at 1 January 2005 and 31 December 2005 

IN THOUSAND EUROS 

note 1 January 2005 31 December 2005 

equity according to hgB 91,343 189,284 

Ending of the scheduled amortisation of goodwill a. 0 1,852 

Adjustment of the useful lives for tangible and intangible 

assets as well as effects from capitalisation and the adjustment 

of the provisions for demolition obligations c. 38,103 37,693 

Effects from the accounting treatment of finance leases d. - 194 233 

Elimination of the expenses for start-up of a business operation b. - 14,484 - 5,286 

Ending of general adjustments on trade receivables e. 1,770 1,845 

Deferred taxes f. 76,474 66,604 

Adjustment of the pension obligations g. - 144,531 - 144,096 

Elimination of expense provisions and adjustment of the provisions h. 2,942 4,931 

Discounting of non-interest-bearing long-term liabilities i. 479 450 

Recognition of derivatives at fair value j. - 2,752 - 1,631 

Changes to the scope of consolidation k. 4,109 0 

Sundry - 276 25 

total adjustments - 38,360 - 37,380 

equity according to ifrs 52,983 151,904 

reconciliation of the result for 2005 from hgB to ifrs 


note 2005 

result for the period according to hgB 60,694 

Ending of the scheduled amortisation of goodwill a. 1,852 

Adjustment of the useful lives for tangible and intangible assets as well as effects 

from capitalisation and the adjustment of the provisions for demolition obligations c. - 410 

Effects from the accounting treatment of finance leases d. 427 

Elimination of the amortisation of expenses for start-up of a business operation b. 9,198 

Elimination of the general adjustment on trade receivables e. 75 

Deferred taxes f. - 12,779 

Adjustment of the pension obligations g. 7,694 

Elimination of expense provisions and adjustment of the provisions h. 1,989 

Discounting of non-interest-bearing long-term liabilities i. - 29 

Recognition of derivatives at fair value j. 813 

Sundry - 125 

total adjustments 8,705 

result for the period according to ifrs 69,399

ExPLANATIONS ON THE RECONCILIATION ACCOUNTS 

a. Contrary to the treatment under commercial law, under 

IFRS 3 goodwill is not amortised, but examined for impair- 

ment at least once annually in accordance with IAS 36. 

Consequently, the scheduled amortisation recorded under 

commercial law regulations must be eliminated. 

b. The option to capitalise expenses for the start-up of a 

business operation as an accounting device, which is al- 

lowed under § 269 sentence 1 HGB, was used by the HHLA 

Group. Capitalisation in this case is forbidden under IFRS. 

This made it necessary to cancel the capitalisation, there- 

fore leading to an increase in the other operating expenses 

of the reporting year. Moreover, the scheduled depreciation 

to be made under commercial law in the following financial 

years must be eliminated. 

c. The useful lives applied under HGB for tangible and 

intangible assets were previously compared with the eco- 

nomic useful lives and adjusted thereto where necessary. 

Where in prior years the option had been used to capit- 

alise interest on outside capital for the period during which 

assets were under construction, these components of the 

manufacturing costs have been eliminated as at the time 

of the changeover to IFRS. Exercising the option granted 

in IAS 23, borrowing costs are recorded in the period in 

which they are incurred. 

Contrary to the German accounting regulations, under 

IFRS the expenses for demolition obligations belong to the 

acquisition costs of the assets concerned. Whereas under 

commercial law principles, provision is made for the costs 

on a pro rata basis over the term of the relevant contracts, 

under IFRS the expected obligations are recognised as a 

liability at their present value. 

d. Under commercial law principles, all leasing and rental 

relationships were classified as operating leases. Under 

IFRS, leases in which the principal risks and opportunities 

connected with ownership in the asset are transferred to 

the Group are classified as finance leases. Consequently, 

the corresponding assets and leasing obligations are rec- 


ognised retrospectively to the commencement of the lease 

at the fair value of the leased item or, if lower, the present 

value of the minimum lease payments and adjusted to the 

time of the changeover to IFRS. 

e. In order to account for the general risk of default on 

receivables, under commercial law principles flat-rate ad- 

justments are set up on receivables. Under IFRS, flat-rate 

adjustments on the measurement of receivables cannot be 

made unless they related to concrete risks for which there 

is evidence from experience. 

f. Under IAS 12, deferred tax assets and debts are set up 

on tax loss carryforwards and on all temporary differences 

between the assets and debts in the financial balance 

sheet and the carrying values in the IFRS balance sheet. 

Deferred tax assets are only presented in the amount in 

which sufficient taxable income will be available. Under the 

accounting regulations applied previously, there was a pro- 

hibition on recognition of deferred tax assets only where 

they resulted from consolidation. The option to capitalise 

deferred taxes was never used in the HHLA Group. The 

recognition of deferred tax assets on loss carryforwards 

was not obligatory in the past. 

g. Under commercial law principles, pension obligations in 

the financial year 2005 were recognised using a discount 

rate of 6% p.a. and without consideration of the salary and 

pension development to be expected in future, i.e. in ana- 

logy with the corresponding financial regulations on “part 

value”. Under IFRS, provisions for pension obligations are 

measured using the projected unit credit method. Under this 

method, besides the pensions and vested claims known as 

at the balance sheet date, account is taken of increases 

in salaries and pensions to be expected in future, and the 

obligations are measured using a market interest rate. 

h. Under commercial law regulations, it was possible to 

set up provisions for expenses for deferred maintenance 

or expenses attributable to an earlier financial year or at- 

tributable to the reporting year if described exactly. Since 

these circumstances do not constitute an obligation to 

93


outside parties, they do not meet the recognition criteria 

of IAS 37. 

For the provisions for partial retirement and long- 

service anniversary benefits, measurement with a lower 

discount rate under IFRS leads to higher provisions than 

would be set up under commercial law. 

i. Under the accounting regulations applied previously, li- 

abilities are recognised at their repayment amount. Under 

IFRS, non-interest-bearing liabilities must be discounted 

(to present value). 

j. Derivative financial instruments were recognised at the 

time of the changeover to IFRS at their fair values. Under 

commercial law principles, provisions were only set up for 

impending losses from derivative financial instruments if 

they could not be attributed to a measurement unit. In sub- 

sequent periods, the principles for accounting for hedges 

set out in IAS 39 will be applied for derivative financial 

instruments that meet the criteria for accounting of hed- 

ging transactions at the time of the changeover to IFRS. 

Gains or losses from changes in the fair values of deriva- 

tives that, irrespective of their economic hedging effect, 

fail to meet the criteria of IAS 39 for recognition as a hedge 

are recorded in the following financial years in the income 

statement. 

k. At the time of the changeover to IFRS, SC HPC Ukraina, 

Odessa, Ukraine, METRANS (Danube) a.s., Danube, Slo- 

vakia were fully consolidated as subsidiaries. In the HGB 

consolidated financial statements as at 31 December 2004, 

these companies had not been consolidated due to their 

immaterial significance. 

ExPLANATIONS ON THE PRINCIPAL ADJUSTMENTS TO 

THE CASH FLOW STATEMENT AS AT 31 DECEMBER 2005 

The effects on the cash flow statement as at 31 December 

2005 results from the effects reported in the reconciliation. 

Whereas, under commercial law principles, finance leases 

affect only the cash flow from operating activity, account- 

ing under IFRS leads to them also affecting the cash flow 

from financing activity. 

3. consoliDation anD accounting principles 

3.1 CONSOLIDATION PRINCIPLES 

The consolidated financial statements comprise the finan- 

cial statements of HHLA and of its subsidiaries as at 31 

December of each financial year. The assets and debts of 

the domestic and foreign entities included in the consoli- 

dated financial statements, either fully or proportionately, 

are recognised according to the accounting and measure- 

ment methods that apply uniformly for the HHLA Group. 

At time of acquisition, capital consolidation is per- 

formed by offsetting the acquisition costs of the participa- 

tion with the share in the fair value of the acquired assets, 

debts and contingent liabilities of the subsidiaries at the 

time of acquisition. Intangible assets that have not previ- 

ously been recognised but which under IFRS 3 in conjunc- 

tion with IAS 38 are recognisable, as well as contingent de- 

bts are recognised at their fair values. During subsequent 

consolidation, the dormant reserves or burdens that have 

thereby come to light are adjusted, written down or relea- 

sed in accordance with the treatment of the corresponding 

assets and debts. 

A positive difference that arises on initial consolida- 

tion is capitalised as goodwill and subjected to an annual 

impairment test. After a critical perusal, any negative dif- 

ference from the offsetting of the acquisition costs against 

the proportionate fair value of the assets, debts and contin- 

gent debts at the time of acquisition is taken to income. 

Shares in equity relating to third parties outside the 

Group are recorded in the consolidated balance sheet as 

a separate item under equity. 

The effects of intragroup transactions are eliminated. 

Receivables and payables between the consolidated com- 

panies are netted (debt consolidation). Realised intragroup 

results are not eliminated from the valuation of the assets 

from intragroup trade (intragroup elimination); these as- 

sets are therefore measured at consolidated acquisition 

or consolidated manufacturing costs. Intragroup income 

is offset against the corresponding expenses (consolida- 

tion of expenses and income). Deferred taxes are set up 

on temporary differences from consolidation, as provided 

for in IAS 12.

3.2 SCOPE OF CONSOLIDATION 

All significant entities, over which HHLA has the possibility 

of control, directly or indirectly, are included in the con- 

solidated financial statements. Control in the meaning of 

IAS 27 exists if there is a possibility of determining the 

financial and business policy of an entity in order to obtain 

benefits from its activity. Inclusion in the consolidated fi- 

nancial statements is from the time at which control over 

the entity is possible. Inclusion in the scope of consoli- 

dation ends as soon as control by the parent company 

ceases. 

as follows: 

The scope of consolidation of HHLA is composed 

hhla ag and 

The initial consolidation as at 1 January 2006 relates to the 

acquisition of HHLA Rosshafen Terminal GmbH, Hamburg, 

which is allocated to the Container Division (cf. note 4). 

A schedule of the main shareholdings of the Group 

is given in these notes to the consolidated financial 

statements under section 40. A complete schedule of the 

Group’s shareholdings pursuant to § 313 (4) HGB is pre- 

pared separately. 

3.3 INTERESTS IN JOINT VENTURES 

Domestic foreign total 

fully consolidated entities 

1 January 2006 30 3 33 

Acquisitions/new companies 1 0 1 

Disposals 0 0 0 

31 December 2006 

entities consolidated 

proportionately 

31 3 34 

1 January 2006 7 1 8 

Acquisitions/new companies 0 0 0 

Disposals 0 0 0 

31 December 2006 7 1 8 

total 38 4 42 

The Group participates in joint ventures. A joint venture is 

defined as a contractual agreement by two or more parties 


to perform an economic activity that is subject to joint man- 

agement. HHLA accounts for its interests in joint ventures 

using proportionate consolidation. The Group combines 

its share in the assets, debts, income and expenses of the 

joint ventures with corresponding items in the consolidated 

financial statements. The financial statements of the joint 

ventures are drawn up using uniform accounting policies 

for the same reporting year as the Group financial state- 

ments. Any differences in accounting policies are elimi- 

nated with suitable adjustments. 

If contributions are made to the joint venture or as- 

sets sold, in recording the portion of gains or losses arising 

from this transaction, the economic substance of the trans- 

action is considered. If the Group acquires assets from a 

joint venture, the Group records its share in the profit of the 

joint venture from this transaction only if it sells the assets 

on to an independent outside party. 

The joint venture is included proportionately in the 

consolidated financial statements until such time as the 

joint management by the Group in the joint venture ends. 

The shares attributable to the Group in the assets, 

debts, income and expenses of the joint ventures as at 31 

December 2006 and 31 December 2005 are shown below: 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

Current assets 29,418 23,503 

Long-term assets 30,228 21,155 

59,646 44,658 

Current debt 24,962 22,135 

Long-term debt 18,383 11,409 

43,345 33,544 

income 155,645 133,068 

expenses 150,095 125,588 

3.4 TRANSLATION OF FOREIGN CURRENCy 

The consolidated financial statements are prepared in 

euros, which is the functional currency of HHLA and the 

presentation currency of the Group. Each entity within the 

Group determines its own functional currency. The items 

contained in the financial statements of each entity are 

95


measured using this functional currency. Currency ex- 

change transactions are translated initially using the spot 

rate, i.e. between the functional and foreign currency that 

is valid on the day of the transaction. Monetary assets and 

debts in a foreign currency are translated to the functional 

currency at the closing rate. All currency differences are 

recorded in the result for the period. An exception here is 

constituted by currency differences from loans in foreign 

currency, where they are used to secure a net investment 

in a foreign business operation. These are recorded di- 

rectly under equity until the net investment is sold, i.e. they 

are recorded in the period result only on disposal of the 

investment. Non-monetary items that were measured at 

historical acquisition or manufacturing costs in a foreign 

currency are translated at the rate in force on the day of the 

transaction. Non-monetary items that are measured at fair 

value in a foreign currency are translated at the rate that 

applied at the time the fair value was determined. 

The consolidated foreign companies prepare their fi- 

nancial statements in their respective functional currencies. 

The assets and debts of these subsidiaries are translated 

to the presentation currency of the HHLA Group (euro) 

at the closing rate. Income and expenses are translated 

at the weighted average rate of the reporting year, and 

equity components at the historic rate. The differences 

arising on translation are recorded separately under equity. 

When entities leave the scope of consolidation, the rele- 

vant currency translation difference is retired with effect 

on income. 

The exchange gains/losses on foreign currency po- 

sitions led in the reporting year to a gain of 253 EUR’000 

(2005: loss of 282 EUR’000). 

The rates applied for the translation are given in the 

table below: 

closing rate average rate 

1 euro = 31.12.06 31.12.05 31.12.06 31.12.05 

Czech Republic CZK 27.470 29.020 28.285 29.641 

Poland PLN 3.835 3.865 3.885 4.018 

Slovakia SKK 34.530 37.870 37.036 38.480 

Ukraine UAH 6.656 5.973 6.300 6.380 

3.5 PRINCIPAL DISCRETIONARy DECISIONS AND 

ESTIMATES 

The preparation of the consolidated financial statements 

in compliance with IFRS requires management to make 

estimates and use discretion with regard to individual 

matters. The estimates were made on the basis of expe- 

rience and other relevant factors on the assumption of a 

going concern. 

Significant estimates and discretionary scope applied 

in particular with regard to depreciation and amortisation 

periods (cf. section 3), the parameters for the measurement 

of the pension provisions (cf. section 33), the estimate of 

the probability and level of utilisation of certain provisions 

(cf. section 34), the realisability of deferred tax assets (cf. 

section 15), and the determination of the fair values disc- 

losed in the notes of the buildings held as financial invest- 

ments (cf. section 21). 

The Group examines goodwill for impairment at least 

once annually. This involves an estimate of the value in use 

of the cash generating units to which the goodwill applies. 

In order to estimate the value in use, the Group estimates 

the probable future cash flow from the cash generating unit 

and also chooses an appropriate discount rate in order to 

determine the present value of this cash flow. 

The amounts that actually arise may differ from the 

amounts arising from estimates and assumptions. 

3.6 ACCOUNTING PRINCIPLES 

intangible assets 

Purchased intangible assets, mainly software and patents, 

are capitalised at acquisition costs. Intangible assets with 

a determinable useful life are amortised normally straight- 

line over the economic useful life. As at each balance sheet 

date, the Group examines whether there is anything to indi- 

cate impairment of its intangible assets with a determinable 

useful life. 

In the case of intangible assets with an indeterminate 

useful life, an impairment test is performed at least once 

annually and adjusted if necessary in line with future ex- 

pectations. With the exception of derivative goodwill, there 

were no intangible assets with an indeterminate useful life 

in the period under review. 

Internally generated intangible assets are capitalised

at the costs that arose in the development phase after the 

time when the technical and commercial feasibility was 

ascertained until completion. The manufacturing costs 

comprise all directly attributable costs of the development 

phase. The capitalised amount of the development costs 

is examined once annually for impairment, if the asset is 

not yet used or if in the course of the year indications arise 

that there is impairment. 

below: 

The useful lives used for intangible assets are shown 

tangible assets 

Tangible assets are recognised at acquisition or manufac- 

turing costs less accumulated normal depreciation and ac- 

cumulated impairment charges. These costs also comprise 

the costs for the replacement of any significant portion of 

such an asset at the time the costs are incurred, if the rec- 

ognition criteria are fulfilled. Costs of current maintenance 

are charged immediately as expense. The recognition of 

the manufacturing costs is on the basis of the directly at- 

tributable specific costs as well as a proportionate share 

of the directly attributable material and production over- 

heads including depreciation. Under IAS 16, demolition 

obligations are accounted for in the amount of the present 

value of the obligation at the time the obligations arise as a 

component of the acquisition or manufacturing costs, and 

a provision is simultaneously made in the corresponding 

amount. The expense is recorded by the depreciation of 

the capitalised asset as well as by the interest added of the 

provision recorded under interest expense over the useful 

life of the asset. 

2006 2005 

Software 3 – 5 years 3 – 5 years 

Normal depreciation is straight-line over the economic 

useful life. The main useful lives applied are as follows: 

2006 2005 

Buildings 10 – 70 years 10 – 70 years 

Plant and machinery 5 – 25 years 5 – 25 years 

Other plant, operating and 

office equipment 3 – 15 years 3 – 15 years 


The carrying values of the tangible assets are examined 

for impairment as soon as there is an indication that the 

carrying value of an asset is greater than its recoverable 

amount. 

Whenever a major overhaul is performed, the costs 

are recorded in the carrying value of the tangible asset as 

replacement, if the recognition criteria are fulfilled. Subse- 

quent expenses are capitalised if these lead to a change in 

the use, or to an increase in the useful value, of the tangible 

asset. Low-value economic assets are written off in their 

year of addition. 

Borrowing costs 

Borrowing costs are recorded as expense in the period in 

which they are incurred. 

Buildings held as financial investments 

Buildings held as financial investments comprise buildings 

that are held to obtain rental income or for an increase in 

value, and are not used for the delivery of goods or the 

rendering of services, for administrative purposes or for 

sale in the normal course of business. 

Under IAS 40 buildings held as financial investments 

are recognised at acquisition or manufacturing costs less 

straight-line normal depreciation and accumulated impair- 

ment charges. These costs comprise the costs for the re- 

placement of any portion of such an asset at the time the 

costs are incurred, if the recognition criteria are fulfilled. 

Subsequent expenses are capitalised if they lead to an 

increase in the value in use of the building held as a finan- 

cial investment. The useful lives on which the depreciation 

is based correspond to those for tangible assets used by 

the Group. 

The fair values of these buildings are shown separ- 

ately in the notes to the financial statements. The fair values 

are determined using the discounted cash flow method. 

The carrying values of the buildings held as financial invest- 

ments are examined for impairment as soon as there is an 

indication that the carrying value of an asset is greater than 

its recoverable amount. Whenever a major refurbishment is 

performed, the costs are recorded in the carrying value of 

the building held as a financial investment as replacement, 

if the recognition criteria are fulfilled. 

97


impairment of assets 

At each balance sheet date the Group examines whether 

there is anything to indicate impairment of an asset. If such 

indicators are present or if, as in the case of goodwill, an 

annual examination for impairment of the asset is man- 

datory, the Group makes an estimate of the recoverable 

amount. The recoverable amount of an asset is the hig- 

her of the fair value of an asset or a cash-generating unit 

less expenses to sell, and its value in use. The recover- 

able amount must be determined for each individual asset, 

unless an asset does not generate inflows of funds that 

are largely independent of those of other assets or other 

groups of assets. In this case, the recoverable amount of 

the smallest cash generating unit must be determined. 

If the carrying value of an asset exceeds its recoverable 

amount, the asset is considered to be impaired and is writ- 

ten down to its recoverable amount. The value in use of 

the individual cash-generating unit or asset is determined 

using the discounted cash flow method. To this end, the 

estimated future cash flows are discounted to their present 

value, using a discount rate after taxes that reflects current 

market expectations with regard to the interest effect and 

the specific risks of the asset. As at 31 December 2006 the 

interest rate for the discount performed was between 7.5 

and 8.5 % p. a. (prior year 7.5 to 8.5 % p. a.). To determine 

the future cash flow, the cash flows forecast in the Group 

budget for the next five years are extrapolated. It is not 

assumed that the growth rate will be constant. In fore- 

casting the cash flows, the Group budget considers past 

experience as well as expectations as to the development 

of the market and the sector. 

As at each reporting date, an examination is made 

to determine if there is anything to indicate that an im- 

pairment expense recorded in earlier reporting periods no 

longer exists or may have lessened. If such evidence exists, 

the recoverable amount is estimated. An impairment ex- 

pense previously recorded must be reversed if, since the 

recording of the last impairment expense, there has been 

a change in the estimates that were used to determine 

the recoverable amount. If this is the case, the carrying 

value of the asset must be increased to its recoverable 

amount. This increased carrying value must not exceed 

the carrying value that would have arisen after deduction of 

normal depreciation and amortisation, if in earlier years no 

impairment had been recorded. Such revaluation must be 

recorded immediately in the period result. If a revaluation 

has been made, the depreciation (or amortisation) expense 

in future reporting periods must be adjusted in order to 

distribute the corrected carrying value of the asset, less 

any residual carrying value, systematically over its residual 

useful life. 

No revaluation is made of goodwill. 

financial assets 

Under IAS 39, financial assets are classified as financial 

assets that are measured at fair value with effect on in- 

come, as loans and receivables, as investments held until 

maturity, or as financial assets held for sale. 

On initial recognition, financial assets are measured 

at their fair value. In the case of financial investments, for 

which there is no measurement at fair value with effect 

on results, transaction costs are also included that are 

attributable directly to the acquisition of the financial as- 

set. The Group specifies the classification of its financial 

assets on initial recognition and reviews this classification 

at the end of each financial year, where this is permitted 

and reasonable. 

Financial assets are recognised at the day of fulfil- 

ment, i.e. at the time of delivery and passage of owner- 

ship. 

Financial assets measured at fair value with effect on in- 

come 

Derivative instruments are classified as held for trading, 

unless they are derivatives that have been designated as 

a hedging instrument and are effective as such. Gains or 

losses from financial assets that are held for trade are re- 

corded in the income statement. 

Financial instruments held to maturity 

Non-derivative financial assets with fixed or otherwise 

determinable payments amounts and fixed maturities are 

classified as financial assets to be held to maturity if the 

Group intends and is able to hold these assets until matu- 

rity. Financial assets that are to be held for a period which

is not defined are not included in this category. Other long- 

term financial instruments that are to be held until maturity 

(for example, loans) are measured at adjusted acquisition 

costs. This is the amount at which a financial asset was 

measured on initial recognition, less redemption payments, 

plus or minus accumulated amortisation of any difference 

between the original amount and the amount repayable 

on maturity using the effective interest method. This com- 

putation includes all fees and similar charges paid or re- 

ceived between the contractual parties, that form an inte- 

gral part of the effective interest rate, the transaction costs 

and other premiums or discounts. Gains and losses from 

financial instruments recognised at adjusted acquisition 

costs are recorded in the period result when the financial 

instruments are retired or impaired and also in connection 

with amortisation. 

Loans and receivables 

Loans and receivables are non-derivative financial assets 

with fixed or determinable payments that are not listed on 

an active market. These assets are measured at adjusted 

acquisition costs using the effective interest method. Gains 

and losses are recorded in the period result when the loans 

and receivables are retired or are impaired as well as in 

connection with amortisation. 

Financial assets held for sale 

After initial recognition, financial assets held for sale are 

measured at their fair value, with gains or losses being 

recognised in comprehensive income. At the time that the 

financial instruments are retired or an impairment for the 

financial instruments is determined, the gain or loss pre- 

viously recorded in comprehensive income is recorded in 

the income statement. 

The fair value of financial instruments that are traded 

on organised markets is determined by reference to the bid 

rate listed on the stock exchange at the balance sheet date. 

The fair value of financial instruments for which there is no 

active market is estimated using measurement methods. 

If the fair value cannot be determined reliably, especially 

in the case of non-consolidated shares in affiliated com- 

panies and other participations, the measurement is at 

acquisition cost. 

inventories 


Inventories comprise raw materials and supplies, work in 

progress as well as finished products and merchandise. In- 

itial recognition is at acquisition cost, which is determined 

on the basis of average prices, or at manufacturing cost. 

The manufacturing costs comprise all costs directly attri- 

butable to the manufacturing process as well as approp- 

riate portions of the production overheads. Measurement 

at the balance sheet date is at the lower of acquisition or 

manufacturing cost and net sales value. Work in progress 

is measured as the proportion of sales revenues matching 

the degree of completion, if the result of the service trans- 

action can be estimated reliably. The net sales value is the 

estimated proceeds from sale that can be obtained in the 

normal course of business, less the costs which it is esti- 

mated will be incurred up to completion and sale. 

trade receivables and other assets 

Trade receivables and other assets are recognised at ad- 

justed acquisition costs less any adjustments for unrecov- 

erable receivables. An adjustment is made when there is an 

objective and substantial indication that the Group will not 

be able to recover the receivables. Receivables are retired 

as soon as they are unrecoverable. 

cash and cash equivalents 

Cash and cash equivalents are cash in hand, checks, im- 

mediately available bank balances as well as short-term 

deposits whose original term was up to three months and 

that are recognised at face value. 

separately. 

Cash which is not freely disposable is disclosed 

impairment of financial assets 

The Group examines at each balance sheet date whether 

there is impairment of a financial asset or a group of financial 

assets. 

Assets that are recognised at adjusted acquisition cost 

If there is objective evidence that an impairment has occurred 

to loans and receivables recognised at adjusted 

acquisition costs, the amount of the loss is the difference 

between the carrying value of the asset and the present 

99


value of the expected future cash flows (with the exception 

of future defaults that have not yet occurred), discounted 

using the original effective interest rate of the financial as- 

sets (i.e. the interest rate calculated on initial recognition). 

The loss is charged to income. 

If in one of the following reporting periods, the amount 

of the adjustment falls and if this reduction can objectively 

be attributed to a circumstance occurring after the record- 

ing of the impairment, the adjustment that was made ear- 

lier is reversed. A subsequent revaluation is recorded in 

the income statement, if the carrying value of the asset at 

the time of the revaluation does not exceed the adjusted 

acquisition costs. 

Assets that are recognised at their acquisition cost 

If there is objective evidence of impairment of an unlisted 

equity instrument that is not recognised at fair value be- 

cause it is not possible to determine its fair value reliably, 

the amount of the adjustment is the difference between 

the carrying value of the financial asset and the present 

value of the estimated future cash flow, that is discounted 

using the current market return of a comparable financial 

asset. 

Financial assets held for sale 

If the value of an asset available for sale is diminished 

and/or impaired, an amount recorded under equity in 

the amount of the difference between the acquisition 

costs (less any redemption payments and amortisation) 

and the current fair value, less any adjustments earlier 

recorded in the income statement, are recorded in the 

income statement. Revaluations of equity instruments that 

are classified as available for sale are recorded without 

effect on income. Revaluations of debt instruments are 

recorded as income if the increase in the fair value of the 

instrument can be attributed objectively to an event that 

occurred after the recognition of the impairment in the 

income statement. 

liabilities 

On initial recognition of liabilities, they are measured at 

the fair value of the consideration received after deduc- 

tion of the transaction costs connected with the take-up 

of the credit and taking into consideration any premiums 

or discounts. 

After initial recognition, the liabilities are measured 

subsequently using the effective interest method at ad- 

justed acquisition costs. 

provisions 

A provision is set up if the Group has a present (legal or 

constructive) obligation on the grounds of a past event, an 

outflow of resources with economic benefit to fulfil the ob- 

ligation is probable, and a reliable estimate of the amount 

of the obligation is possible. The provision is set up at the 

amount of expected settlement. If the Group expects a 

reimbursement for at least a part of a provision (e.g. in the 

case of an insurance contract), the reimbursement is only 

recorded as a separate asset if the reimbursement is as 

good as certain. The expense for setting up the provision 

is presented in the income statement after deduction of the 

reimbursement. If the interest effect is material, long-term 

provisions are discounted at an interest rate after taxes 

that reflected the specific risks for the debt. In the case of 

discounting, the increase in the provisions caused by the 

passage of time is recorded as interest expense. 

pensions and other benefits after termination of a 

work relationship 

Pensions and other obligations are constituted by the 

Group’s obligations from defined benefit retirement schemes. 

Under IAS 19 provisions for pension obligations are 

measured using the projected unit credit method. For 

this, annual actuarial reports are obtained. Under this 

method, anticipated increases in salaries and pensions 

are taken into account as well as the pensions and vested 

claims existing at the balance sheet date. Actuarial gains 

and losses are recorded under equity, after due account 

has been taken of deferred taxes. The service cost is shown 

under personnel expenses, and the interest portion of the 

allocation to provisions is included in the financial result. 

leasing relationships in which the group is a lessee 

Whether or not an agreement constitutes or includes a 

lease is decided on the basis of the economic substance 

of the agreement, and requires an estimate to be made

to whether the fulfilment of the contractual agreement is 

dependent on the use of a specific asset or assets, and 

whether the agreement grants a right to the use of the 

asset. 

Finance leases 

Finance leases, i.e. those in which principally all risks and 

opportunities connected with ownership of the asset trans- 

ferred, are capitalised at the commencement of the lease 

at the fair value of the leased item or, if lower, with the 

present value of the minimum lease payments. A leasing 

liability is set up in the same amount. Lease payments are 

broken down into their constituent parts, namely financing 

expenses and redemption, such that the residual carrying 

value of the leasing liabilities bears interest at a constant 

rate. Financing expenses are charged to income in the 

period in which they are incurred. 

If transfer of ownership to the Group on maturity of 

the lease is not sufficiently certain, capitalised lease items 

are depreciated in full over the shorter of the term of the 

lease and useful life. Otherwise, the depreciation period 

corresponds to the economic useful life of the lease item. 

Operating leases 

Payments for operating leases are recorded straight-line 

over the term of the lease and charged to the income state- 

ment. 

leasing relationships in which the group is a lessor 

The HHLA Group rents buildings in and around the Port 

of Hamburg as well as office buildings, other commercial 

areas and warehouses. The rental contracts are classified 

as operating leases, since the principal risks and opportunities 

of the properties remain with the Group. The properties 

are therefore recognised at adjusted acquisition or 

manufacturing cost under properties held as financial investments. 

Rental income from properties held as financial investments 

is recorded straight-line over the term of the 

lease. 


recognition of income and expense 

Income is recorded when it has become probable that the 

economic benefit will flow to the Group and the amount of 

the income can be determined reliably. Additionally, the 

following recognition criteria must be satisfied for the income 

to be realised: 

Sale of merchandise and produce 

Income is recorded when the main risks and opportunities 

associated with ownership of the merchandise and produce 

sold has passed to the purchaser. 

Rendering of services 

Income from services are recorded in line with the progress 

of the service being rendered. The progress of the service 

being rendered is determined on the basis of the number of 

hours worked as at the balance sheet date as a percentage 

of the total hours to be worked for the project in question. 

If the result of a service transaction cannot be estimated 

reliably, income is only recorded to the extent that reimbursement 

of the expenses incurred can be enforced. 

Interest 

Revenues and expenses are recognised when the interest 

has arisen. 

Dividends 

Revenues are recorded in the income statement as soon 

as the Group obtains a legal claim to the payment. 

Operating expenses are recorded in the income 

statement when the performance is utilised or when they 

originate. Revenues and expenses relating to the same 

transaction or event are recorded in the same period. Rental 

expenses are recorded straight-line over the term of 

the lease. 

public subsidies 

Public subsidies are recorded if there is sufficient certainty 

that the subsidies will be granted and the entity will fulfil the 

conditions connected therewith. In the case of subsidies 

tied to expenses, these are recorded normally as income 

over the period of time that is necessary to offset them 

against the expenses they are intended to compensate 

101


for. If the subsidy relates to an asset, it is deducted from 

the acquisition cost of the asset and recorded straight-line 

in the form of lower depreciation over the useful life of the 

asset when it is taken to income. Only in the case of a joint 

venture that is consolidated proportionately is the subsidy 

recorded as deferred income, that is released straight-line 

over the expected useful life of the asset in question. 

taxes 

Current tax refund claims and tax debts 

The current tax refund claims and tax debts for the cur- 

rent period and for prior periods must be measured at the 

amount at which a refund is expected from the tax author- 

ities or a payment to the tax authorities is expected. The 

amount is calculated using the tax rates and laws in force 

at the balance sheet date. 

Deferred taxes 

Deferred taxes are formed using the balance-sheet ori- 

ented liability method on all temporary differences as at the 

balance sheet date between the valuation of an asset or a 

debt in the balance sheet and the fiscal valuation as well 

as on tax loss carryforwards. 

Deferred tax debts are recorded on all temporary dif- 

ferences that are subject to tax. 

Deferred tax claims are recorded for all deductible 

temporary differences and as yet unused tax loss carryfor- 

wards to the extent that it is probable that taxable income 

will be available against which the deductible temporary 

differences and the as yet unused tax loss carryforwards 

can be used. 

The carrying value of the deferred tax claims is exam- 

ined as at each balance sheet date and reduced to the 

extent that it is no longer probable that sufficient taxable 

profits will be available against which the deferred tax claim 

can be used. Deferred tax claims that have not been rec- 

ognised are examined as at each balance sheet date and 

recognised to the extent that it has become probable that 

future taxable profits will enable the deferred tax claim to 

be realised. 

Deferred tax claims and debts are measured on the 

basis of the tax rates that are expected to be valid in the 

period in which an asset is realised or a debt will be re- 

deemed. The tax rates (and tax rules) applied are those 

that have already been enacted by the legislature as at the 

balance sheet date. 

Income taxes relating to items that are recorded di- 

rectly under equity are recorded in equity and not in the 


Deferred tax claims and debts are only netted if the 

deferred taxes relate to income taxes that are levied by 

the same tax authority and the current taxes can be offset 

against each other. 

fair values of the financial instruments 

The fair values of the financial instruments are determined 

on the basis of relative market values or measurement 

methods. For liquid funds and other current original financial 

instruments, the fair values correspond to the carrying 

values recognised at the relevant closing dates. 

In the case of long-term receivables and other financial 

assets as well as long-term provisions and liabilities, 

the fair value is determined on the basis of the expected 

cash flows using the reference interest rates applying at the 

balance sheet date. The fair values of derivative financial 

instruments are calculated on the basis of the reference 

interest rates existing as at the balance sheet dates and 

forward rates. 

Derivative financial instruments and hedging transactions 

The Group uses derivative financial instruments such as interest 

swaps and forward currency deals in order to hedge 

against interest and currency risks. These derivative financial 

instruments are recognised at their fair values at the 

time at which the corresponding contract is concluded, and 

subsequently revalued to match the changed fair values. 

In the case of derivative financial instruments that 

do not meet the criteria to count as hedging transactions, 

gains and losses from changes in fair value are recorded 

in the income statement. 

For the purpose of hedge accounting, hedging instruments 

are classified as cash flow hedges if the risk being 

targeted is that of fluctuations in the cash flow that can be 

allocated to a risk connected with a recognised asset, a 

recognised debt or a predictable transaction.

A hedging of the currency risk of a firm obligation is treated 

as a hedging of the cash flow. 

At the commencement of a hedging relationship, the 

Group specified formally both the hedging relationship, 

which the Group wishes to recognise as a hedge, and the 

risk management objectives and strategies with regard to 

the hedging, and documents these. This documentation 

contains the specification of the hedging instruments, the 

underlying transaction or the secured transaction and the 

nature of the risk being hedged as well as a description of 

how the entity will determine the effectiveness of the hedg- 

ing instrument in compensating the risks from changes in 

the fair value or in the cash flow of the underlying trans- 

action. Such hedges are estimated to be very effective in 

obtaining compensation for risks arising from changes in 

fair value or in cash flow. They are continually assessed 

as to whether they were highly effective in fact during the 

entire reporting period for which the hedging relationship 

was designated. 

No hedges were made in the reporting period to se- 

cure the fair value or to secure net investments in a foreign 

business operation. Hedges to secure cash flow that fulfil 

the strict criteria for recognition of hedging relationships 

are treated as follows: 

Hedging of cash flows 

The effective portion of the gain or loss from the change in 

the fair value of a hedging instrument is recorded INITIALLy 

directly under equity, with due recognition of the deferred 

tax portion, whereas the ineffective portion is recorded in 

the income statement. 

The amounts recorded under equity are recognised 

in the income statement in the period in which the hedged 

transaction influences the result, e.g. in which hedged 

financial income or expenses are recorded in which a 

predictable sale or purchase is enacted. If the underlying 

transaction involves the acquisition costs of a non-finan- 

cial asset or debt, the amounts recorded under equity are 

added to the originally recorded carrying value of the non- 

financial asset or debt. 

If the predicted transaction is no longer expected to 

occur, the amounts previously recorded under equity are 

recorded in the period result. When the hedging instru- 


ment expires or is sold, terminated or is exercised without 

replacement or rollover of one hedging instrument to ano- 

ther, or if the Group withdraws the designation of hedging 

instrument, the amounts previously presented remain as 

a special item under equity until the predicted transaction 

has occurred. 

3.7 RECENTLy ISSUED ACCOUNTING REGULATIONS 

OF IASB 

The consolidated financial statements of HHLA and its 

subsidiaries for the financial year 2006 were prepared for 

the first time in accordance with International Financial Re- 

port-ing Standards (IFRS), as applicable in the European 

Union. All of IFRS and IFRIC mandatory as at 31 Decem- 

ber 2006 were applied. The standards and interpretations, 

which have already been adopted by the Commission of 

the European Union, have not been applied in the IFRS 

consolidated financial statements of HHLA: 

The amendments of IAS 1 require in future additional 

disclosures about the objectives, the processes and 

methods of capital control and are mandatory for finan- 

cial years beginning on or after 1 January 2007. Initial 

application will lead to more extensive disclosures in the 

notes. 

IFRS 7 “Financial Instruments: Disclosures” is mandatory 

for financial years beginning on or after 1 January 2007. 

Initial application will probably lead to more extensive 

disclosures in the notes with regard to financial instru- 

ments. 

IFRIC 7 deals with accounting in high-inflation economies 

and is not relevant to the entities of the HHLA Group. 

IFRIC 8 provides clarification on the application of IFRS 

2 for share-based remuneration where the entity grant- 

ing the remuneration does not receive any consideration 

or does not receive adequate consideration. IFRIC 8 is 

mandatory for all financial years beginning on or after 1 

May 2006. No effects are expected from the application 

of the Interpretation. 

IFRIC 9 provides a rule to determine whether a classifi- 

cation of an embedded derivative only need be made on 

expiry of the contract or whether it must be made during 

the term of the contract. No effects are expected from 

103


the application of the interpretation. IFRIC 9 is mandatory 

for all financial years beginning on or after 1 June 2006. 

IFRIC 11 addresses the issues of how Groupwide 

share-based remuneration is to be treated, what effects 

changes in employees have within a group and how 

share-based remuneration is to be treated where the 

entity issues treasury shares or must purchase shares 

from an outside party. IFRIC 11 is to be applied for finan- 

cial years beginning on or after 1 March 2007. It is not 

to be expected that IFRIC 11 will have effects on future 

consolidated financial statements of HHLA. 

The effects arising from the application of IFRIC 10 on 

the procedure to be followed for adjustments in interim 

reports as well as from the application of IFRIC 12 on 

accounting for public infrastructure performances by pri- 

vate entities on future consolidated financial statements 

are at present still being examined. 

The following IFRS and IFRIC, which IASB has issued or 

amended, will only become mandatory for the HHLA Group 

after a corresponding resolution has been passed by the 

Commission of the European Union: 

IFRS 8 provides for a change in segment reporting from 

the risk and reward approach of IAS 14 to the manage- 

ment approach with regard to the identification of seg- 

ments. The decisive information is the information that 

the most senior decision maker in the Group is regularly 

provided with for decision purposes. The HHLA Group 

is not yet obliged to issue any segment report. 

In March 2007, IAS published amendments of IAS 23 

on the treatment of the borrowing costs. The method, 

which had previously been an option, of capitalisation 

of the borrowing costs, which were to be allocated to 

the acquisition or manufacture of qualifying assets, is 

in future mandatory. The amended standard becomes 

mandatory for financial years beginning on or after 1 

January 2009. On application of the amended standard, 

financing expenses will be recorded in connection with 

future investment measures for qualifying assets of the 

Group over the useful life of the assets in the form of 

amortisation and charged to the income statement. Until 

now, these have been charged as expenses in the period 

in which they were incurred. 

4. company purchase 

On January 1st 2006, HHLA purchased 100% of the shares 

in HHLA Rosshafen Terminal GmbH, Hamburg. This 

company rents and manages buildings and land at Rosshafen 

Terminal Hamburg. At the same time, the company 

purchased under an asset deal various buildings and 

landed facilities that are located on the Rosshafen land. 

The purchase price was paid in cash. Total goodwill arose 

of 31,481 EUR’000, that is subject to an annual impairment 

test. The goodwill results mainly from additional strategic 

options to expand the handling activities of the Group on 

the land that the company rents. 

The purchase price for HHLA Rosshafen as well as 

the buildings purchased can be attributed to the assets, 

debts and contingent liabilities acquired as at the purchase 

date as follows:

In adjusting the fair values, differences are taken into ac- 

count between the residual book values determined in the 

past on the basis of German commercial law and the fair 

values at the time of acquisition. 

The purchase price includes incidental costs, namely 

land purchase tax. 

In 2006, HHLA Rosshafen Terminal GmbH contrib- 

uted 395 EUR’000 to the Group profit with sales of 9,298 

EUR’000. 

After accounting for the cash and cash equivalents 

received, the purchase led to a net outflow, presented in 

the cash flow statement, of EUR’000 87,678. 


carrying value at share deal fair values 

time of initial asset deal adjustment recognised after 

consolidation fair values fair values acquisition 

EUR ’000 EUR ’000 EUR ’000 EUR ’000 

Tangible assets 19,487 19,927 32,907 72,321 

Cash and cash equivalents 120 0 0 120 

Other provisions - 5,995 0 3,436 - 2,559 

Other liabilities - 153 0 0 - 153 

Deferred taxes 0 0 - 13,412 - 13,412 

net assets 13,459 19,927 22,931 56,317 

purchase price 87,798 

goodwill 31,481 

105


comments on the consoliDateD 

income statement 

The income statement was prepared applying the type-of- 

expenditure format. 

5. sales revenues 

The overviews below give a breakdown of the sales rev- 

enues by division. 

Sales revenues according to geographical region: 

6. changes in inventories 

The changes in inventories relate to the divisions as fol- 

lows: 

2006 2005 

EUR ’000 EUR ’000 

Containers 587,857 473,237 

Intermodal 279,517 228,982 

Logistics 111,143 96,600 

Real Estate and Holding 38,919 34,121 

1,017,436 832,940 

2006 2005 

EUR ’000 EUR ’000 

Germany 865,186 706,808 

Rest of Europe 146,233 121,235 

Outside Europe 6,017 4,897 

1,017,436 832,940 

2006 2005 

EUR ’000 EUR ’000 

Logistics - 793 1,964 

Intermodal 0 1,355 

Containers - 493 18 

Real Estate and Holding - 624 - 312 

7. own work capitaliseD 

- 1,910 3,025 

Own work capitalised result mainly from technical own 

performances which were capitalised as part of construc- 

tion measures; they relate in the amount of 8,272 EUR’000 

(2005: 1,984 EUR’000) to the Containers Division and in 

the amount of 355 EUR’000 (2005: 397 EUR’000) to the 

Intermodal Division. 

8. other operating income 

Income from the release 

The other operating income was composed of income 

from compensatory payments, insurance claims and on- 

charging of expenses both in 2006 and 2005. 

2006 2005 

EUR ’000 EUR ’000 

of provisions 2,498 2,950 

Gains from the sale 

of tangible assets 4,950 2,027 

Other operating income 14,829 8,788 

22,277 13,765

9. cost of materials 

The cost of materials of the reporting year relates to: 

Cost of raw materials 

10. personnel expenses 

The expenses incurred in the reporting year for payments 

to employees are composed as follows: 

The current service cost includes payments arising from 

defined benefit pension commitments and obligations simi- 

lar to pensions. The interest portion contained in the alloca- 

tions to the pension provisions is presented in the financial 

result. Contributions to the statutory pension scheme are 

contained under social security contributions. 

The average number of employees during the reporting 

year was as follows: 

2006 2005 

EUR ’000 EUR ’000 

and supplies 73,762 62,064 

Expenses for outside 

(agency) personnel 33,722 32,727 

Cost of purchased services 289,689 234,014 

397,173 328,805 

2006 2005 

EUR ’000 EUR ’000 

Wages and salaries 191,520 171,041 

Social security and expenses 

for benefits 36,212 34,631 

Current service cost 5,172 6,300 

Other expenses for retirement 

pensions 3,877 25 

236,781 211,997 

fully consolidated entities 


The workforce as at the balance sheet date was distributed 

among the divisions as follows: 

11. amortisation anD Depreciation 

Amortisation and depreciation in the reporting year relate to: 

The consolidated schedule of fixed assets provides a 

breakdown of the amortisation and depreciation by as- 

set category. The amortisation and depreciation include 

impairment expense of 1,957 EUR’000 (2005: 0 EUR’000); 

cf. section 24. 

2006 2005 

Wage earners 1,879 1,632 

Salaried employees 1,685 1,883 

Apprentices 89 75 

entities consolidated pro rata 

3,653 3,590 

Wage earners 77 65 

Salaried employees 131 132 

208 197 

3,861 3,787 

2006 2005 

Containers 2,630 2,435 

Intermodal 618 507 

Logistics 459 445 

Real Estate 89 86 

Holding/sundry 419 396 

4,215 3,869 

2006 2005 

EUR ’000 EUR ’000 

Intangible assets 3,332 5,185 

Tangible assets 65,323 55,474 

Buildings held as financial 

investments 7,721 2,903 

Long-term assets held for sale 1,957 0 

78,333 63,562 

107


12. other operating expenses 

The other operating expenses break down as follows: 

For explanations about the leasing expenses, see section 39. 

13. financial result 

The financial result in the reporting year is as follows: 

2006 2005 

EUR ’000 EUR ’000 

Rents and leasing 37,558 33,452 

Outside performances, maintenance 29,343 25,342 

Consultancy, services, insurance premiums, audit fees 18,136 18,518 

Losses on the disposal of items of fixed assets 3,067 4,693 

Other taxes 1,082 2,518 

Allocation to adjustments on receivables and write-downs on receivables 1,223 1,245 

Sundry 26,326 16,032 

116,735 101,800 

2006 2005 

EUR ’000 EUR ’000 

Income from participations 9 6 

Impairment of financial assets and long-term financial receivables 0 - 535 

Expenses from transfer of losses (absorption) - 16 - 127 

financial result (excluding interest result) - 7 - 656 

Interest income from non-affiliated entities 2,609 1,551 

Interest income from bank deposits 1,790 1,476 

Interest income from affiliated entities 0 1,099 

Income from interest hedges 520 803 

other interest and similar income 4,919 4,929 

Interest expense on liabilities to banks (bank borrowings) 16,250 17,141 

Interest portion contained under pension provisions 15,355 16,262 

Interest expense to non-affiliated entities 3,751 2,703 

Interest contained in leasing instalments 877 1,019 

Interest expense to affiliated entities 0 23 

interest and similar expenses 36,233 37,148 

interest result - 31,314 - 32,219 

financial result - 31,321 - 32,875

14. research anD Development costs 

In the financial year 2006, research and development costs 

of 1,410 EUR’000 (2005: 1,867 EUR’000) were recorded as 

expense. 

15. income taxes 

Taxes on income and earnings paid or owed as well as 

deferred taxes are shown under income taxes. The taxes 

on income and earnings are composed of corporation tax, 

solidarity surcharge and municipal trade tax. Corporations 

domiciled in Germany incur corporation tax of 25.0% and a 

solidarity surcharge of 5.5 % of the corporation tax owed. 

These corporations as well as subsidiaries domiciled in 

Germany that have the legal form of a partnership are 

subject to municipal trade tax, the amount of which is de- 

pendent on rates determined by the municipality. In the 

attribution of the Deferred taxes 



case of corporations, the municipal trade tax reduces the 

measurement base for the corporation tax. 

The main elements of the income tax expense for the 

financial years 2006 and 2005 are as follows: 

consolidated income statement 

Deferred taxes arising from 

2006 2005 

EUR ’000 EUR ’000 

timing differences 1,041 4,826 

Deferred taxes on loss carryforwards 7,674 8,125 

8,715 12,951 

Current income tax expense 61,117 31,363 

income tax expense shown in the 

consolidated income statement 69,832 44,314 

The deferred tax assets and liabilities arise from timing 

differences and tax loss carryforwards, as follows: 

DEFERRED TAx ASSETS DEFERRED TAx LIABILITIES 

31.12.2006 31.12.2005 31.12.2006 31.12.2005 

Intangible assets 2,457 3,316 541 159 

Tangible assets and finance leases 3,458 4,588 19,361 18,754 

Buildings held as financial investments 15,622 3,364 

Financial assets 53 87 3 3 

Inventories 4 4 

Other receivables and other assets 251 36 1,550 759 

Pension provisions and other provisions 71,944 72,557 2,300 959 

Liabilities 663 59 273 278 

Derivative financial instruments 146 738 

Loss carryforwards 8,584 16,258 

Other balance sheet items 426 43 

87,556 97,639 40,080 24,323 

adjustments - 23,791 - 21,685 - 23,791 - 21,685 

Balance sheet items 63,765 75,954 16,289 2,638 

109


The following account reconciles the income tax expense 

and the hypothetical tax expense on the basis of the IFRS 

result and the applicable tax rate of the Group for the fi- 

nancial years 2006 and 2005: 

The deferred taxes are calculated using the tax rates pres- 

ently valid under law in Germany or that are expected at 

the time of realisation. In Germany, a tax rate is applied of 

40.38 %, which is made up of the corporation tax rate of 

25.0%, the solidarity surcharge of 5.5%, and the municipal 

trade tax rate of 19.03 % which applies in Hamburg. Enti- 

ties that have the legal form of a partnership are subject to 

municipal trade tax. Due to special legal regulations, the 

companies administering landed property are not subject 

to municipal trade tax. The municipal trade tax reduces 

their own measurement base and in the case of corpor- 

ations the measurement base for corporation tax. Under 

the principle of minimum taxation, there are limits to the 

use that can be made of tax loss carryforwards in Ger- 

many. Under this principle, a positive tax measurement 

base is unrestricted up to EUR 1 million, while amounts 

in excess of this limit may be reduced by an existing loss 

carryforward by a maximum of 60%. 

2006 2005 

EUR ’000 EUR ’000 

Result before taxes 186,780 113,713 

income tax expense at the 

effective income tax rate 

of 40.38 % (2005: 40.38 %) 75,422 45,917 

Adjustment of current income taxes, 

prior years - 1,910 643 

Tax effect from permanent differences -25 986 

Tax-exempt income incl. deductions 

of municipal trade tax - 1,775 - 1,224 

Non-deductible expenses 

incl. municipal tax add-backs 3,047 2,525 

Tax rate differences - 3,716 - 3,617 

Other tax effects - 1,211 - 916 

total taxes 69,832 44,314 

Deferred tax assets on tax loss carryforwards and 

temporary differences are recognised if it seems reasonably 

certain that they can be realised in the near future. There 

are corporation tax loss carryforwards of 31,824 EUR’000 

(2005: 54,856 EUR’000) and municipal trade tax loss carry- 

forwards of 1,017 EUR’000 (2005: 12,999 EUR’000); these 

are available to the Group for an unlimited time for offset- 

ting against future taxable income of the entities that in- 

curred the losses. No deferred tax assets have been set up 

for tax loss carryforwards for purposes of corporation tax 

in the amount of 2,341 EUR’000 (2005: 754 EUR’000) and 

for purposes of municipal trade tax in the amount of 468 

EUR’000 (2005: 536 EUR’000). The present legal situation 

in Germany is that tax loss carryforwards can be carried 

forward indefinitely. 

The deferred tax liabilities of 666 EUR’000 (2005: 

-2,909 EUR’000), which are recorded under equity, relate to 

actuarial gains and losses from the measurement of pen- 

sion provisions and from cash flow hedges. 

In connection with the initial consolidation of the 

Rosshafen facility as at January 1st 2006, deferred tax 

liabilities were set up on the fair values in the amount of 

13,412 EUR’000. 

With regard to the expected effects of the reform of 

company tax law in 2008 on the measurement of deferred 

taxes, see section 44. 

16. results attriButaBle to minority shares 

The profits attributable to minority shareholders relate 

mainly to the shareholders of HHLA Container Terminal 

Altenwerder GmbH, Hamburg, METRANS a.s., Prague, 

Czech Republic and HHLA Frucht- und Kühl-Zentrum 

GmbH, Hamburg. 

17. earnings per share 

Under IAS 33, undiluted earnings per share are calculated 

by dividing the Group profit for the year, which is attrib- 

utable to the shareholders of the parent company, by the 

average number of shares; details are set out below:

Entitlement of the shareholders in the 

parent company (i. e. their share in the 

In the reporting year, as in the prior year, the diluted result 

per share was the same as the undiluted result. 

18. paiD anD proposeD DiviDenDs 

The dividends distributed to the shareholders are shown 

in the table below: 

2006 2005 

Group profit) in EUR ’000 97,104 57,185 

Number of ordinary shares 1,000 1,000 

undiluted profit per share in eur 97,103.73 57,185.18 

Resolved and distributed for the 

financial year: 

Dividends on ordinary shares: 

2006 2005 

EUR ’000 EUR ’000 

in 2006 for 2005 (in 2005 for 2004) 11,000 8,000 

Dividend per share: 11 8 

Proposed at the ordinary shareholders’ 

meeting (not recorded as a debt as 

at 31 December) 

Dividends on ordinary shares: 

in 2007 for 2006 (in 2006 for 2005) 15,000 11,000 


111


comments on the consoliDateD 

Balance sheet 

19. intangiBle assets 

The intangible assets developed in the financial years 2005 

and 2006 as follows: 

acquisition/manufacturing costs 

other intangible payments 2005 

goodwill software assets on account total 

EUR ’000 EUR ’000 EUR ’000 EUR ’000 EUR ’000 

1 January 2005 14,151 35,013 1,399 576 51,139 

Additions 1,513 589 2,102 

Disposals - 404 - 404 

Reclassification 51 - 19 32 

Effects from changes in exchange rates 60 3 63 

31 December 2005 14,151 36,233 1,399 1,149 52,932 

accumulated amortisation and impairment 

1 January 2005 0 21,661 1,399 0 23,060 

Additions 5,185 5,185 


Reclassification 2 2 

Effects from changes in exchange rates 36 36 

31 December 2005 0 26,493 1,399 0 27,892 

carrying values 

1 January 2005 14,151 13,352 0 576 28,079 

31 December 2005 14,151 9,740 0 1,149 25,040



internally gen- other intangible payments 2006 

goodwill software erated software assets on account total 

EUR ’000 EUR ’000 EUR ’000 EUR ’000 EUR ’000 EUR ’000 

1 January 2006 14,151 36,233 0 1,399 1,149 52,932 

Additions 31,481 1,443 4,027 25 4,471 41,447 

Disposals - 3,998 - 3,998 

Reclassification 13 9 - 13 9 

Effects from changes in exchange rates - 87 1 - 86 

31 December 2006 45,632 33,604 4,027 1,433 5,608 90,304 

accumulated amortisation 

and impairment 

1 January 2006 0 26,493 0 1,399 0 27,892 


Disposals - 3,997 - 3,997 

Effects from changes in exchange rates - 44 - 44 

31 December 2006 

net book (carrying) values 

0 25,784 1,399 0 27,183 

1 January 2006 14,151 9,740 0 0 1,149 25,040 

31 December 2006 45,632 7,820 4,027 34 5,608 63,121 

The internally generated software shown is still under 

development. 

113


The carrying values of the goodwill relate to the divisions 

as follows: 

20. tangiBle assets 

The tangible assets developed in the financial years 2005 

and 2006 as follows: 


other plant, payments on 

land and plant and operating and account and assets 2005 

buildings machinery office equipment under construction total 


1 January 2005 406,638 427,485 176,051 63,930 1,074,104 

Additions 14,112 19,734 39,747 46,609 120,202 

Disposals - 15,472 - 7,489 - 9,100 - 1,189 - 33,250 

Reclassification 24,108 29,055 1,971 - 55,166 - 32 

Effects from changes in exchange rates 788 538 217 53 1,596 

31 December 2005 430,174 469,323 208,886 54,237 1,162,620 

accumulated depreciation and impairment 

1 January 2005 210,991 203,332 104,825 0 519,148 

Additions 12,504 24,491 18,479 55,474 

Disposals - 10,167 - 6,396 - 7,941 - 24,504 

Reclassification 878 - 911 31 - 2 

Effects from changes in exchange rates 101 225 80 406 

31 December 2005 214,307 220,741 115,474 0 550,522 


eur ’000 

Containers (Rosshafen) 31,481 

Intermodal 7,660 

Containers (HHCT) 6,489 

Other 2 

45,632 

1 January 2005 195,647 224,153 71,226 63,930 554,956 

31 December 2005 215,867 248,582 93,412 54,237 612,098 

- thereof finance leases 141 3,753 19,571 0 23,465



other plant, payments on 

land and plant and operating and account and assets 2006 

buildings machinery office equipment under construction total 


1 January 2006 430,174 469,323 208,886 54,237 1,162,620 

Additions 30,591 30,291 33,434 47,953 142,269 

Disposals - 12,979 - 4,441 - 17,128 - 494 - 35,042 

Reclassification 24,789 20,344 4,475 - 50,714 - 1,106 

Long-term assets held for sale - 6,812 - 440 - 7,252 

Change in the scope of consolidation 843 3 1,032 1,878 

Effects from changes in exchange rates 1,095 768 992 1,194 4,049 

31 December 2006 466,858 516,688 230,662 53,208 1,267,416 


1 January 2006 214,307 220,741 115,474 0 550,522 

Additions 15,016 29,534 20,773 65,323 

Disposals - 9,945 - 2,955 - 16,454 - 29,354 

Reclassification 660 - 26 49 683 

Revaluation - 286 - 286 

Long-term assets held for sale - 1,506 - 279 - 1,785 

Effects from changes in exchange rates 163 267 137 567 

31 December 2006 218,695 247,282 119,693 0 585,670 


1 January 2006 215,867 248,582 93,412 54,237 612,098 

31 December 2006 248,163 269,406 110,969 53,208 681,746 

- thereof finance leases 116 4,582 21,046 0 25,744 

Land, buildings, reinforcements of quayside areas and mo- 

bile items of fixed assets with a carrying value of 24,510 

EUR’000 (2005: 16,697 EUR’000) serve as senior collateral 

for Group loans. 

In respect to the existing restrictions on the use of buildings 

and their use in connection with the rental of the pertinent 

land from the Free and Hanseatic City of Hamburg, see the 

comments on leases in section 39. 

115


21. BuilDings helD as financial investments 

The buildings held as financial investments have developed 

as follows: 


Properties held as financial investments are mainly ware- 

houses in the Hamburg Speicherstadt (historical warehouse 

district) which have been converted to office buildings as 

well as logistics halls and reinforced waterside areas. With 

respect to the change in the scope of consolidation, see 

section 4. 

The rental income from the properties held as finan- 

cial investments at the end of the different financial years 

were 29,972 EUR’000 (2005: 28,779 EUR’000). Direct oper- 

ating expenses of the different properties recognised at the 

ends of the financial years amounted in the reporting year 

to 10,373 EUR’000. 

2006 2005 

EUR ’000 EUR ’000 

1 January 110,333 107,717 

Additions 21,446 2,724 

Disposals - 6,155 - 108 

Reclassifications 1,097 

Change in the scope of consolidation 70,443 

31 December 197,164 110,333 

accumulated depreciation 

and impairment 

1 January 30,356 27,456 


Disposals - 3,298 - 3 

Reclassifications - 683 

31 December 34,096 30,356 

carrying value 

1 January 79,977 80,261 

31 December 163,068 79,977 

The fair values totalled 364,728 EUR’000. There are 

reports by an external expert for properties with a fair value 

of 60,400 EUR’000. The other fair values were computed, 

without external consultation, by the Group’s own property 

companies on the basis of comparable market rents. 

The fair values are determined on the basis of the forecast 

net payments flows from the management of the properties 

using the discounted cash flow method (DCF method). Un- 

der the DCF measurement, account was taken of a detailed 

planning period until the end of the useful life. 

For the detailed planning period, it is assumed that 

the contractually agreed rental income of the relevant build- 

ing will continue together with the other relevant value par- 

ameters which relate to future operating, management and 

maintenance costs. The parameters applied were derived 

from the rental contracts or the company budget. 

The cash flows were discounted using market dis- 

count rates for the same terms of 6 % p.a. An appropriate 

interest rate was determined on the basis of the relevant 

land interest rates with which the market value of land 

bears interest. 

In respect of the existing restrictions on the use of 

building and their use in connection with the rental of the 

pertinent land from the Free and Hanseatic City of Ham- 

burg, see the comments on leases in section 39. 

The properties held as financial investments with a 

residual carrying value of 72,064 EUR’000 (2005: 53,180 

EUR’000) relate to buildings in the Speicherstadt (ware- 

house district). Comprehensive refurbishment measures 

on these buildings are subject to statutory conditions due 

to their historic status. 

22. financial assets 

The financial assets developed in the financial years 2005 

and 2006 as follows:



other securities of 

shares in affiliated participatory fixed assets and 2005 

enterprises investments long-term loans total 

EUR ’000 EUR ’000 EUR ’000 EUR ’000 

1 January 2005 1,095 15,147 49 16,291 

Additions 1,034 69 1,103 

Disposals - 76 - 12,882 - 12,958 

Reclassification - 75 75 0 

Change in the scope of consolidation - 412 - 412 


31 December 2005 1,612 2,340 118 4,070 


1 January 2005 0 1,244 0 1,244 

Additions 511 0 24 535 

Disposals - 1,204 - 1,204 

31 December 2005 511 40 24 575 


1 January 2005 1,095 13,903 49 15,047 

31 December 2005 1,101 2,300 94 3,495 


other securities of 

shares in affiliated participatory fixed assets and 2006 

enterprises investments long-term loans total 

EUR ’000 EUR ’000 EUR ’000 EUR ’000 

1 January 2006 1,612 2,340 118 4,070 

Additions 16 13 2,400 2,429 



31 December 2006 1,686 2,353 2,518 6,557 


1 January 2006 511 40 24 575 

31 December 2006 511 40 24 575 


1 January 2006 1,101 2,300 94 3,495 

31 December 2006 1,175 2,313 2,494 5,982 

117


The shares in affiliated companies includes shares in Group 

companies that, in view of their immaterial significance for 

the presentation of a true and fair view of the Group, have 

not been consolidated. 

The other participations relate mainly to shares in 

Terminal Pacifico sur Valparaiso s.a., Valparaiso, Chile in 

an amount of 2,039 EUR’000 (2005: 2,039 EUR’000). The 

shares in affiliated companies and other participations are 

recognised at adjusted acquisition costs. 

balances. 

The securities relate mainly to partial retirement 

23. inventories 

The inventories break down as follows: 

Raw materials and 

The amount of impairment of inventories, which has 

been recorded as expense, is 1,063 EUR’000 (2005: 373 

EUR’000). This expense is recorded under the item “Cost 

of materials”. 

24. long-term assets helD for sale 

Long-term assets held for sale comprise land and buildings 

whose sale is expected within the coming financial year. In 

order to recognise the assets at their fair value less costs to 

sell, in the financial year 2006 non-scheduled depreciation 

was recorded of 1,957 EUR’000, which is included in the 

income statement under depreciation. 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

supplies 10,836 9,951 

Work in progress 4,939 5,974 

Finished goods and merchandise 580 2,068 

Payments on account 7 13 

16,362 18,006 

25. other financial receivaBles 

Other short-term financial 

The other short-term financial receivables include 9,074 

EUR’000 (2005: 7,583 EUR’000) in receivables from short- 

term loans to other shareholders. 

26. traDe receivaBles 

There are trade receivables of 132,930 EUR’000 (2005: 

100,213 EUR’000) from third parties; they do not bear in- 

terest and all have a residual term of less than one year. 

Default risks have been accounted for by adjustments of 

1,591 EUR’000 (2005; 1,355 EUR’000). In the financial year 

2006, adjustments were recorded of 507 EUR’000 (2005; 

259 EUR’000) and charged to the income statement. Pay- 

ments receipts on trade receivables that had already been 

adjusted were 119 EUR’000 (2005: 157 EUR’000). 

27. receivaBles from relateD parties 

The receivables from related parties are composed as fol- 

lows: 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

receivables 11,685 13,264 

Positive market values of derivatives 1,025 15 

Positive fair values of interest caps 184 0 

Short-term receivables 

from employees 440 0 

Short-term reimbursement claims 

from insurers 1,324 0 

14,658 13,279

Receivables from the Free and 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

Hanseatic City of Hamburg 571 667 

Receivables from HGV Hamburger 

Gesellschaft für Vermögens- und 

Beteiligungsmanagement mbH 15,615 89,086 

Receivables from affiliated companies 

and joint ventures 2,733 258 

18,919 90,011 

Of the receivables from HGV, 14,400 EUR’000 (2005: 86,800 

EUR’000) relate to receivables from the Group clearing 

scheme; these bear interest at the normal market rate. 

28. other assets 

Default risks of 58 EUR’000 (2005: 51 EUR’000) have been 

recorded by adjustments which have been charged to the 


The other assets presented are not subject to any 

significant restrictions on ownership or availability. 

29. claims for reimBursement of income taxes 

Claims for reimbursement of income taxes result from 

corporation tax credits and the reimbursement of tax pre- 

payments. 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

Payments on account 4,305 1,142 

Short-term receivables 

from the tax authority 3,247 2,528 

Sundry 3,343 2,410 

Claims for reimbursement 

10,895 6,080 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

of income taxes 2,565 3,324 


30. cash anD cash equivalents 

The cash and cash equivalents relates to cash in hand and 

deposits held with various banks in various currencies. 

There are no restrictions on the use of the cash, as in the 

prior year. 

As at 31 December 2006, the Group had available 

credit lines in the amount of 8,056 EUR’000 (2005: 9,056 

EUR’000), for whose utilisation all necessary conditions 

were fulfilled. 

Bank balances bear interest with variable interest 

rates for overnight deposits. Short-term deposits are for 

different periods, ranging, depending on the Group’s re- 

quirement for cash, between one day and three months. 

They bear interest at the relevant valid interest rates for 

short-term deposits. The interest rates during the repor- 

ting year were between 0.5 and 5.1%. The fair values of 

the cash and cash equivalents correspond to the carrying 

values. 

31. shareholDers’ equity 

The composition and development of the equity of HHLA 

for the financial years 2005 and 2006 is shown in the state- 

ment of changes in shareholders’ equity. 

Subscribed capital 

The subscribed capital is unchanged at 53,300 EUR’000 

and is divided into 1,000 no-par bearer shares, for which 

two global certificates have been issued. At the time of 

the preparation of the annual financial statements for the 

financial year 2006 HHLA AG had neither conditional nor 

approved capital. 

Capital reserve 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

Bank balances and cash in hand 17,378 14,157 

Current deposits 4,740 4,147 

22,118 18,304 

The capital reserve contains additional capital paid in by 

the shareholders of 30,000 EUR’000 which was resolved 

119

120 hhla annual report 2006 annex to group financial statements 121 

at the shareholders’ meeting on 27 July 2005. The capital 

reserve also includes allocations pursuant to the DMBilG 

from the years 1948, 1958 and 1959. Moreover, the capital 

reserve shown in the consolidated financial statements as 

at 31 December 2005 was increased by the adoption of a 

minority shareholder in HHLA Frucht- und Kühl-Zentrum 

GmbH by 5,552 EUR’000. 

Equity generated 

The equity generated contains results obtained in the 

past by entities included in the consolidated financial 

statements, where these results were not distributed, and 

the differences between HGB and IFRS that existed as at 

1 January 2005 (transition date); these differences are 

commented on under section 2. 

statement of changes in equity 


Comprehensive income 

Pursuant to IAS 19, that gives an option on the treatment 

of actuarial gains and losses from defined benefit pension 

schemes, the equity of the HHLA Group also includes all 

non-realised actuarial gains and losses from defined 

benefit pension schemes. Here changes in the fair value 

of financial instruments used to hedge the cash flow and 

the relevant tax effects thereof are also shown. 

The balancing item from foreign currency translation 

serves to record differences that arise from the translation 

of the financial statements of foreign subsidiaries. 

32. statement of changes in equity 

parent company 

adjustments from 

subscribed capital treasury generated foreign currency 

capital reserve shares equity conversion* 

Balance as at 1 January 2005 53,300 178 - 295 - 18,163 

Dividends paid - 8,000 

Income and expenses recorded directly 

under equity less deferred taxes 1,613 

Appropriations to equity 35,552 

Retirement of treasury shares 295 

Group profit for the year 57,185 

Other changes 91 

31 December 2005 53,300 35,730 0 31,113 1,613 

Dividends paid - 11,000 

Income and expenses recorded directly 

under equity less deferred taxes - 430 

Group profit for the year 97,104 

Other changes 

31 December 2006 53,300 35,730 0 117,217 1,183 

* Comprehensive income 

parent company minority group 

shareholders equity 

Deferred taxes 

actuarial gains on changes recorded 

cash flow hedges* and losses* directly in equity* sundry* total total total 

47 35,067 17,916 52,983 

- 8,000 - 3,145 - 11,145 

230 - 7,259 2,909 8 - 2,499 793 - 1,706 

35,552 5,948 41,500 

295 0 295 

57,185 12,214 69,399 

97 188 390 578 

230 - 7,259 2,909 152 117,788 34,116 151,904 

- 11,000 - 5,081 - 16,081 

933 7,635 - 3,475 4,663 1,266 5,929 

97,104 19,844 116,948 

80 80 - 76 4 

1,163 376 -566 232 208,635 50,069 258,704


33. pension provisions 

The Group has defined benefit pension schemes for its 

employees. There are a number of bases for the claims to 

the company retirement pension. Besides individual com- 

mitments, there are in the first place the company pension 

collective agreement (BRTV) and the framework contract 

for the ports workers (dockers) of the German seaport 

operations. 

The BRTV is a comprehensive pension. Here HHLA 

promises the qualifying employees a pension in a certain 

amount, which is composed of the statutory pension and 

the company retirement pension. The amount of the com- 

prehensive pension is governed by a percentage, depen- 

dent on years of service, of a notional net salary of the final 

wages or salary group on the basis of social insurance data 

of the year 1999. 

The amount of the so-called ports pensions is depen- 

dent on the years of service. The amount of the company 

pension is determined by the framework collective agree- 

ment of the German seaports. 

Under this defined benefit pension schemes, pro- 

visions for pensions and similar commitments have been 

set up to cover the payments (retirement and surviving 

dependants pension) to be expected in future. Using the 

projected unit credit method, the amount of this obligation 

is computed by external experts. 

With the exception of the lifetime work savings ac- 

counts introduced in the financial year 2006, the defined 

benefit pension schemes are not financed by funds. The 

following tables show the components of the expenses 

recorded for these pension payments in the consolidated 

income statement and the amounts recognised in the con- 

solidated balance sheet for the different schemes. 

Amounts recorded in the consolidated balance sheet for 

pension commitments: 

Present value of the 

The present value of the pension commitments is com- 

posed as follows: 

present value of the pension 

The following amounts were recorded in the income state- 

ment: 

2006 2005 

EUR ’000 EUR ’000 

obligations at January 1st 383,993 374,822 


Interest cost 15,355 16,262 

Actuarial gains/losses - 7,624 7,259 

Top-up financing for the ports pension - 27 25 

Pension payments - 19,792 - 20,675 

present value of the pension 

31.12. 31.12. 31.12. 

2006 2005 2004 

EUR ’000 EUR ’000 EUR ’000 

pension obligations 377,077 383,993 374,822 

Obligations from the lifetime 

work savings account scheme 289 0 0 

377,366 383,993 374,822 

obligations at December 31th 377,077 383,993 

2006 2005 

EUR ’000 EUR ’000 


Interest cost 15,355 16,262 

Top-up financing for the ports pension - 27 25 

20,500 22,587

The full present value of the pension obligations, includ- 

ing actuarial gains and losses, is shown in the balance 

sheet. The liability item in the balance sheet has changed 

as follows: 

The gains and losses recorded under equity have changed 

as follows: 

The computation of the pension provision is based on the 

following actuarial assumptions: 

2006 2005 

EUR ’000 EUR ’000 

Balance sheet values at January 1st 383,993 374,822 

Expense recorded in the 

income statement 20,500 22,587 

Pension payments - 19,792 - 20,675 

Actuarial gains/losses - 7,624 7,259 

Balance sheet values 

as at December 31th 377,077 383,993 

2006 2005 

EUR ’000 EUR ’000 

actuarial gains/losses at January 1st 7,259 0 

Changes during the reporting year - 7,624 7,259 

actuarial gains/losses 

at December 31th - 365 7,259 

2006 2005 2004 

Discount rate at December 31th 4.25 % 4.00 % 4.35 % 

Wages and salary trend 3.00 % 3.00 % 3.00 % 

Pension trend (excluding BRTV) 2.00 % 2.00 % 1.50 % 

Pension trend (monthly 

pensions under BRTV) 1.00 % 1.00 % 1.00 % 

Fluctuation 1.30 % 1.30 % 1.30 % 


For the biometric data, the guideline tables 2005 G of Prof. 

Dr. Klaus Heubeck were used. 

In the financial year 2006, in response to collective 

pay agreements, the Group companies undertook to set 

up lifetime work savings accounts. These accounts provide 

for employees to pay components paid in by the Group to 

money market or investment funds and subsequently to 

receive the accumulated balance in the form of paid leave 

prior to retirement. The remuneration entitlement of the 

employees is measured by the level of the value balance 

and the development of the value of the fund assets plus 

further contractually agreed social benefits during the 

period of leave. 

The liability item, which was first recorded in the 

balance sheet as at 31 December 2006, is composed as 

follows: 

31.12.2006 

EUR ’000 

Present value of the obligations 850 

Fair value of the plan assets (fund shares) - 561 

Balance sheet value 289 

123


34. other long-term anD short-term 

provisions 

The development of the other short-term and long-term 

provisions is shown below: 

Demolition obligations 

The provision for demolition obligations arises from obli- 

gations to be fulfilled under long-term rental contracts with 

the Free and Hanseatic City of Hamburg at the end of the 

contractual terms. At the end of the rental relationship, all 

entities of the HHLA Group in the Port of Hamburg are obli- 

ged to return the rented property with all of the fixtures and 

fittings they own removed. In determining the amount of the 

provisions, it has been assumed that the obligation will be 

called in in full for all rented properties with the exception 

of buildings that are protected from changes for historical 

reasons. The obligations from demolition costs relate to 

the Containers, Real Estate and Logistics Divisions; they 

are discounted at a rate of 4.5 % p. a. The outflow of funds 

is expected for the period 2025 to 2035. 

Pre-retirement work scheme 

The provisions for obligations arising from the partial re- 

tirement scheme (a pre-retirement working scheme) include 

the future obligations of the HHLA Group from the fulfil- 

ment arrears during the active phase of those with claims 

as well as the topping-up amount. The obligations include 

the obligations to employees who have already concluded 

a partial retirement agreement as well as, on the basis of 

an estimate on the basis of the applications submitted as 

at the balance sheet date, the number of employees who 

change in scope interest 

1.1.2006 of consolidation allocation added utilisation release 31.12.2006 

EUR ’000 EUR ’000 EUR ’000 EUR ’000 EUR ’000 EUR ’000 EUR ’000 

Demolition obligations 18,456 2,559 2,930 821 0 769 23,997 

Pre-retirement work scheme 8,728 0 5,055 645 3,875 13 10,540 

Bonuses 2,096 0 3,928 0 2,021 51 3,952 

Long-service anniversaries 2,005 0 32 83 82 0 2,038 

Sundry 7,661 0 7,993 0 982 1,665 13,007 

38,946 2,559 19,938 1,549 6,960 2,498 53,534 

will probably conclude such an agreement. An outflow of 

1,797 EUR’000 is expected within one year. 

Provision for bonuses 

For the provisions for bonuses, an outflow of 3,952 EUR’000 

is expected within one year. 

Provision for long-service anniversary benefits 

The provisions for long-service anniversary benefits relate 

to the claims of Group employees that have been con- 

tractually agreed to receive these benefits. The amount 

recognised is based on actuarial reports. A discount in- 

terest rate of 4.25 % (2005: 4.00 % p. a.) was used in the 

computation. 

Other provisions 

The other provisions relate mainly, in the amount of 2,184 

EUR’000 (2005: 537 EUR’000), to litigation; in the amount 

of 657 EUR’000 (2005: 663 EUR’000) to sabbatical days; in 

the amount of 824 EUR’000 (2005: 506 EUR’000) to dues; 

in the amount of 438 EUR’000 (2005: 507 EUR’000) to 

benefits for pensioners and other former employees; and 

in the amount of 211 EUR’000 (2005: 235 EUR’000) to com- 

missions. In all, an outflow of 8,812 EUR’000 is expected 

within one year.

35. short anD long-term financial liaBilities 

All fixed interest obligations are shown under financial li- 

abilities that existed as at the balance sheet dates. The 

details of the short-term and long-term financial liabilities 

are as follows: 

The liabilities to employees relate mainly to wages and 

salaries, and vacation obligations. 

The other financial liabilities contain in particular re- 

imbursements to customers as well as liabilities to minority 

shareholders. 


31.12.2005 in eur ’000 

up to 1 year 1 to 5 years more than 5 years total 

Loan liabilities to banks 33,087 93,928 192,833 319,848 

Liabilities to employees 10,221 0 0 10,221 

EBA loan 186 719 1,706 2,611 

Overdrafts on current accounts 27 0 0 27 

Liabilities from finance leases 2,455 10,135 10,642 23,232 

Negative fair values of derivative financial instruments 1,827 0 0 1,827 

Other financial liabilities 16,459 0 0 16,459 

64,262 104,782 205,181 374,225 

31.12.2006 in eur ’000 

up to 1 year 1 to 5 years more than 5 years total 

Loan liabilities to banks 39,615 82,644 197,747 320,006 

Liabilities to employees 11,619 0 0 11,619 

EBA loan 0 1,165 995 2,160 

Liabilities from finance leases 3,400 13,595 7,595 24,590 

Negative fair values of derivative financial instruments 360 0 0 360 

Other financial liabilities 13,403 0 0 13,403 

68,397 97,404 206,337 372,138 

125


The conditions of the loan liabilities to banks are given 

below: 

remaining carrying value 

currency interest condition lock-in period interest rate nominal value as at 31.12.2006 

The variable interest rates are EURIBOR and PRIBOR rates 

with terms of from one month to twelve months. 

The interest portion contained in the carrying values 

of the loan liabilities as at December 31st 2006 is 4,527 

EUR’000. 

The fair values of the financial liabilities where the fair 

values are different to the carrying values are shown in the 

following overview: 

The interest rates used for determining the fair values of the 

long-term fixed interest loans ranged from 4.6 to 5.1 % p. a. 

(2005: 3.45 to 5.1 % p. a.). The interest rates result from the 

risk-free interest rate depending on the term plus a mark- 

up to correspond with the credit rating; they are therefore 

market interest rates. On the subject of the debts from 

finance leases, see our comments on finance leases in 

section 39. 

As collateral for the interest-bearing loans, buildings, 

surface reinforcements and mobile items of fixed assets 

with a carrying value of 13,773 EUR’000 (2005: 5,960 

EUR’000) were assigned. 

Further liabilities to banks have been secured by land 

charges in the amount of 10,737 EUR’000 (2005: 10,737 

EUR’000). 

The variable interest rates are partly secured by in- 

terest hedges. At this point see our comments on the de- 

rivative financial instruments. 

36. traDe liaBilities 

The trade liabilities of the reporting year are exclusively to 

third parties. As in the prior year, the total amount is due 

within one year. 

EUR ’000 

EUR ’000 Fixed 2016 5.61 % 30,000 30,000 

EUR ’000 Fixed 2012 5.15 – 5.55 % 83,624 71,779 

EUR ’000 Fixed 2011 3.97 – 5.31 % 50,182 42,518 

EUR ’000 Fixed 2010 4.40 – 5.66 % 20,338 18,542 

CZK ’000 Fixed 2010 4.00 % 35,000 622 

EUR ’000 Fixed 2009 3.10 – 4.52 % 18,719 13,509 

EUR ’000 Fixed 2008 3.72 – 4.50 % 35,209 27,770 

EUR ’000 Fixed 2007 5.15 – 5.98 % 11,146 2,726 

CZK ’000 Fixed 2007 4.42 % 15,840 144 

EUR ’000 Variable 2007 Variable + margin 114,253 98,354 

CZK ’000 Variable 2007 Variable + margin 38,728 533 

SKK ’000 Variable 2007 Variable + margin 310,164 8,982 

Long-term 

interest-bearing 

31.12.2006 31.12.2005 

carrying fair carrying fair 

value value value value 

EUR ’000 EUR ’000 EUR ’000 EUR ’000 

loans 207,248 208,270 218,854 230,288 

315,479

37. other liaBilities 

The other liabilities are composed as follows: 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

Tax liabilities 9,061 5,708 

Payment received on account on orders 6,770 7,290 

Public subsidies 

Contributions paid to the employers’ 

6,180 2,400 

liability insurance association 3,414 3,617 

Customs 2,546 955 

Social security liabilities 2,012 3,329 

Port fund 1,779 1,255 

Other debts 3,303 4,345 

35,065 28,899 

All liabilities are due within one year. 

Of the public subsidies, 5,423 EUR’000 are payments 

from fund call-offs subject to reservations, which are de- 

ducted on the assets side from the acquisition costs of the 

investments being subsidised after fulfilment of the condi- 

tions has been examined. 

The other public subsidies recorded as liabilities re- 

late mainly to investment grants that have been received 

that were granted to an entity that has been consolidated 

proportionately to improve regional economic structure and 

promote intermodal transport. The deferred income will be 

released to income over the useful life of the assets being 

subsidised. Otherwise, public subsidies that relate to an 

asset are deducted from the acquisition costs of the asset 

and recorded to income straight-line by a reduction in the 

depreciation over the useful life of the asset concerned. 

38. payments oBligations from income taxes 

Where there are payments obligations from income taxes, 

these result from the tax assessments and the associated 

possible back payments of corporation tax, the solidarity 

surcharge and municipal trade tax. 

In connection with the preparation of the annual fi- 

nancial statements, appropriate provisions have been set 


up for the fiscal conditions known at the time of the finan- 

cial statements and the legal situation valid for corporation 

tax, solidarity surcharge and municipal trade tax. 

39. leases, performance risks anD other 

oBligations 

OBLIGATIONS FROm OPERATING LEASES, WHERE THE 

GROUP IS THE LESSEE 

Various contracts exist between the Free and Hanseatic 

City of Hamburg or otherwise the Hamburg Port Authority 

and the HHLA Group on the rental of areas and quayside 

walls in the Port of Hamburg as well as in the Speicher- 

stadt (warehouse quarter) by the companies of the HHLA 

Group. most of the contracts expire in the years between 

2025 and 2036. The contracts provide as a rule for the 

rents to be re-examined on a five-year basis in the light of 

the development of rents in the relevant competing ports 

or on the basis of relevant rental price indicators. As at the 

balance sheet date, the negotiations on the adjustment of 

the rents for the areas and quayside walls under the current 

re-examination of rents as at 1 July 2005 had not been 

concluded. Provisions have been set up for the expected 

increases in rents. The lease expenses from the rental of 

the areas in the Speicherstadt are in part linked to the development 

of the Group’s revenues from the rental of the 

buildings on this land. 

The areas let and the buildings of HHLA on these 

areas may not be sold or rented without the prior consent 

of the lessor. Any significant changes in the conditions in 

subletting contracts are also subject to prior consent by 

the lessor. 

Furthermore, the Group has concluded leases for 

various motorised vehicles and a technical plant. These 

leases have an average term between one and seven years, 

and as a rule do not include any option for prolongation. 

The lessee does not have any obligations when leases 

expire. 

127


As at the balance sheet date, the following minimum lease 

payments existed under irrevocable operating leases: 

Expenses from leases amounting to 37,558 EUR’000 (2005: 

33,452 EUR’000) were recorded in the reporting year. Of 

this amount 333 EUR’000 (2005: 285 EUR’000) related to 

conditional rental payments. 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

In less than one year 28,500 26,135 

Between one and five years 100,722 92,074 

more than five years 570,641 568,504 

699,863 686,713 

OPERATING LEASES, WHERE THE GROUP IS THE 

LESSOR 

The Group has concluded leases for the commercial rental 

of its buildings that it holds as financial investments. The 

buildings held as financial investments comprise offices 

and a plant that the Group does not use itself. These irrevocable 

leases have irrevocable residual rental terms of 

between 1 and 19 years. After expiry of the irrevocable basic 

rental period, some contracts give the tenants an option of 

extending the rental contract by periods of between 2 years 

and a maximum of three times for 5 years. Some leases 

contain a clause under which the rent may be adjusted 

upward on the basis of the relevant market conditions. 

The following claims for future minimum lease payments 

are expected to arise in subsequent years on the 

basis of irrevocable operating leases as at the balance 

sheet date: 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 




115,937 49,159 

In the reporting year, revenues were obtained from the 

rental of tangible assets and from buildings held as financial 

investments in the amount of 29,972 EUR’000 (2005: 

28,779 EUR’000). 

OBLIGATIONS FROm FINANCE LEASES 

The Group has concluded finance leases and hire purchase 

agreements for various technical plant, operating and office 

equipment. Among the items the contracts relate to are 

lifting and moving equipment, container carriers, a lightweight 

hall and IT hardware. The contracts mostly have 

extension options and in some cases rights of the lessor 

to demand purchase. The lessee has the extension option 

in each case; where there is such a right, the right to insist 

on purchase is held by the lessor. In the case of a lightweight 

hall there is a purchase option. No price adjustment 

clauses have been agreed. 

The present value of the future minimum lease payments 

from finance leases and hire purchase agreements 

is derived as follows: 

LITIGATION 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 




total minimum lease payments 33,169 28,504 




present value of the minimum 

lease payments 24,590 23,232 

future interest expense on 

basis of discounting 8,579 5,272 

In connection with their business activities, companies of 

the HHLA Group were involved as at 31 December 2006 in

several court and arbitration cases. As at the balance sheet 

date, there was no litigation which could have any signifi- 

cant influence over the economic situation of the Group. 

For possible financial burdens from court or arbitration 

cases, each Group company concerned has set up provi- 

sions for lawsuit risks or legal and court fees if an event is 

concerned prior to the balance sheet date, and if the legal 

representatives estimate the probability of an outflow of 

economic resources of more than 50 %. 

CONTINGENT LIABILITIES 

As at the balance sheet date, the HHLA Group saw contin- 

gent liabilities from sureties in the amount of 1,167 EUR’000 

(2005: 3,000 EUR’000) and from letters of comfort in an 

amount of 300 EUR’000 (2005: 300 EUR’000). 

Of this amount, 1,167 EUR’000 relates to joint ven- 

tures that are consolidated proportionately. 

OTHER FINANCIAL COmmITmENTS 

As at the balance sheet date, the Group had obligations 

from outstanding orders of 13,153 EUR’000 (2005: 29,653 

EUR’000) as well as sundry other obligations of 736,196 

EUR’000 (2005: 804,539 EUR’000). 

Of this amount, 51,113 EUR’000 relates to joint ventures 

that are consolidated proportionately. 

For separate details of the obligations from operating 

leases that are contained in this amount, see section 39. 

40. Disclosures on relateD parties 

The list below contains the names of the subsidiaries, associated 

companies, joint ventures and other participations 

of HHLA: 


129


schedule of shareholdings of hhla by Division as at December 31st 2006 

result in the 

share in capital equity reporting 

name and registered office of the entity direct indirect in year 2006 in 

container Division 

% % EUR ‘000 EUR ‘000 

HHLA Container Terminals Gesellschaft 

mit beschränkter Haftung, Hamburg 

HCCR Hamburger Container- und Chassis- 

1) 2) 5) 100.0 91,410 0 

Reparatur-Gesellschaft mbH, Hamburg 1) 2) 5) 100.0 1,909 0 

LZU Leercontainer Zentrum Unikai GmbH, Hamburg 1) 65.0 1,394 1,008 

HHLA Container Terminal Tollerort GmbH, Hamburg 1) 2) 5) 100.0 7,669 0 

HHLA Rosshafen Terminal GmbH, Hamburg 1) 100.0 14,297 2,200 

CTT Besitzgesellschaft mbH, Hamburg 

DHU Gesellschaft Datenverarbeitung Hamburger 

1) 100.0 87 37 

Umschlagsbetriebe mbH, Hamburg 7) 23.1 17.3 1,212 227 

UNIKAI Hafenbetrieb GmbH, Hamburg 1) 2) 5) 100.0 3,500 0 

HHLA Container Terminal Altenwerder GmbH, Hamburg 1) 74.9 63,545 35,112 

SCA Service Center Altenwerder GmbH, Hamburg 1) 2) 5) 74.9 600 0 

Kombi-Transeuropa Terminal Hamburg GmbH, Hamburg 6) 37.5 52 2 

HHLA CTA Besitzgesellschaft mbH, Hamburg 1) 74.9 5,241 5 

CuxPort GmbH, Cuxhaven 6) 25.1 3,775 1,013 

HHLA Container Terminal Burchardkai GmbH, Hamburg 1) 2) 5) 100.0 74,938 0 

Service Center Burchardkai GmbH, Hamburg 1) 2) 5) 100.0 26 0 

SC HPC Ukraina, Odessa, Ukraine 1) 3) 100.0 - - 

Cuxcargo Hafenbetrieb GmbH & Co. KG, Cuxhaven 7) 50.0 - 33 7 

Cuxcargo Hafenbetrieb Verwaltungs-GmbH, Cuxhaven 7) 50.0 29 0 

intermodal Division 

HHLA Intermodal GmbH, Hamburg 1) 2) 5) 100.0 29,039 0 

CTD Container-Transport-Dienst GmbH, Hamburg 1) 2) 5) 100.0 256 0 

combisped Hanseatische Spedition GmbH, Lübeck 1) 2) 5) 100.0 12,600 0 

CTL Container Terminal Lübeck GmbH, Lübeck 1) 2) 5) 100.0 4,755 5 

mETRANS a.s., Prague, Czech Republic 1) 3) 50.1 - - 

mETRANS (Danube) a.s., Danube, Slovakia 1) 3) 50.1 - - 

mETRANS (Deutschland) GmbH, Hamburg 1) 7) 50.1 93 37 

mETRANS (Danube) Kft., Gyor, Hungary 1) 3) 7) 50.1 - - 

mETRANS (moravia) a.s., Zlin, Czech Republic 1) 3) 7) 50.1 - - 

mETRANS Adria D.O.O., Koper, Slovakia 

TFG Transfracht Internationale Gesellschaft für kombinierten 

1) 4) 7) 50.1 - - 

Güterverkehr mbH & Co. KG, Frankfurt/main 6) 50.0 3,900 3,630 

TFG Verwaltungs GmbH, Frankfurt/main 

HHLA Intermodal Verwaltung Gesellschaft mit 

7) 50.0 114 7 

beschränkter Haftung, Hamburg 1) 7) 100.0 21 0


schedule of shareholdings of hhla by Division as at December 31st 2006 

result in the 

share in capital equity reporting 

name and registered office of the entity direct indirect in year 2006 in 

intermodal Division (continuation) 

% % EUR ’000 EUR ’000 

POLZUG Intermodal GmbH, Hamburg 6) 33.3 3,454 1,342 

POLZUG Intermodal Polska sp. zo.o., Warsaw, Poland 6) 33.3 4,525 1,131 

Silk Road Express Georgia LLC, Poti/Georgia 4) 7) 24.9 - - 

logistics Division 

HHLA Frucht- und Kühl-Zentrum GmbH, Hamburg 1) 51.0 13,248 1,115 

Ulrich Stein Gesellschaft mit beschränkter Haftung, Hamburg 1) 51.0 711 557 

UNIKAI Lagerei- und Speditionsgesellschaft mbH, Hamburg 1) 2) 5) 100.0 1,703 0 

ARS-UNIKAI GmbH, Hamburg 6) 50.0 209 24 

HPC Hamburg Port Consulting GmbH, Hamburg 1) 2) 5) 100.0 1,023 0 

HPTI Hamburg Port Training Institute GmbH, Hamburg 1) 2) 5) 100.0 102 0 

Uniconsult Universal Transport Consulting Gesellschaft 

mit beschränkter Haftung, Hamburg 1) 2) 5) 100.0 75 0 

HHLA Rhenus Logistics Altenwerder GmbH & Co. KG, Hamburg 6) 49.0 2,966 - 1,415 

HHLA Rhenus Logistics Altenwerder Verwaltungs- 

gesellschaft mbH, Hamburg 7) 49.1 49 1 

HHLA Rhenus Logistics GmbH, Hamburg 1) 51.0 1,573 564 

Hansaport Hafenbetriebsgesellschaft mit 

beschränkter Haftung, Hamburg 4) 6) 49.0 - - 

real estate Division 

Fischmarkt Hamburg-Altona Gesellschaft mit beschränkter 

Haftung, Hamburg 1) 2) 5) 100.0 2,505 0 

GHL Erste Gesellschaft für Hafen- und Lagereiimmobilien- 

Verwaltung mbH, Hamburg 1) 2) 5) 100.0 2,556 0 

GHL Zweite Gesellschaft für Hafen- und Lagereiimmobilien- 

Verwaltung mbH, Hamburg 1) 2) 5) 100.0 26 0 

GHL Gesellschaft für Hafen- und Lagereiimmobilien- 

Verwaltung Block D mbH, Hamburg 1) 2) 5) 100.0 8,184 0 


Verwaltung Bei St. Annen mbH, Hamburg 1) 100.0 6,590 10 


Verwaltung Block T mbH, Hamburg 1) 2) 5) 100.0 1,327 0 

holding 

HHLA-Personal-Service-Gesellschaft mit beschränkter 

Haftung, Hamburg 1) 2) 5) 100.0 45 0 

“CAP SAN DIEGO” Betriebsgesellschaft mbH, Hamburg 4) 7) 33.3 - - 

Egon Wenk Umschlag- und Logisticgesellschaft mbH, Hamburg 1) 7) 100.0 30 1 

1) Affiliated company. 2) In 2006, there were profit and loss adoption agreements with these companies. 3) For this entity, use was made of the exemption pursuant to § 313 (3) HGB. 4) For this entity, 

use was made of the exemption pursuant to § 313 (1) No. 4 HGB. 5) In the case of this company, use was made of the disclosure alleviation pursuant to § 264 (3) HGB. 6) Proportionately consolidated 

companies. 7) Due to their overall immaterial significance, these companies are not included in the consolidated financial statements or, as associated companies, they are not measured using the equity 

method, but instead are shown as participations. 

131


HHLA is the ultimate parent company in the HHLA Group. 

Related parties under the definition in IAS 24 are persons 

and entities that exercise control or otherwise exercise 

substantial influence over the Group, or else are controlled 

or substantially influenced by the Group. 

companies with significant influence over the group: 

2006 2005 

EUR ’000 EUR ’000 

Revenues with related parties 670 581 

Expenses with related parties 21,684 21,419 

Receivables from related parties 16,186 89,680 

Liabilities to related parties 101 42 

non-consolidated subsidiaries 


Expenses with related parties 9 8 

Receivables from related parties 1,906 0 


Joint ventures 

Revenues with related parties 3,964 3,396 


Receivables from related parties 827 157 


other transactions with related parties 


Expenses with related parties 463 332 

Receivables from related parties 0 174 


total 

Hence related parties of the HHLA Group are its 

shareholders: HGV Hamburger Gesellschaft für Vermö- 

gens- und Beteiligungsmanagement mbH, Hamburg, and 

HHLA-Beteiligungsgesellschaft mbH, Hamburg, as well as 

the Free and Hanseatic City of Hamburg in its capacity as 

their shareholder; the companies controlled or significantly 

influenced by the shareholders or the Free and Hanseatic 

City of Hamburg; the members of the Executive Board and 

the Supervisory Board of HHLA; as well as the subsidia- 

ries, associated companies and joint ventures of the HHLA 

Group. HGV Hamburger Gesellschaft für Vermögens- und 

Beteiligungsmanagement mbH, Hamburg, is the ultimate 

parent company of HHLA, that publishes consolidated fi- 

nancial statements. 

Besides the business relationships with the subsid- 

iaries that are fully consolidated in the consolidated finan- 

cial statements, the following transactions took place with 

related entities and persons in the relevant financial year: 

Revenues with related parties 4,644 4,010 


Receivables from related parties 18,919 90,011 

Liabilities to related parties 2,276 933

The receivables from companies with substantial influence 

include mainly receivables from HGV relating to the cash 

clearing scheme. The expenses with related persons in- 

clude mainly rental payments for areas and quayside walls 

in the port and the Speicherstadt warehouse district. The 

revenues from related parties are composed of rental in- 

come and earnings from services as well as interest in- 

come. 

Expenses and income paid to or by related parties 

are at normal market conditions. The outstanding items 

that exist at the end of the business year are not secured, 

nor do they bear interest, with the exception of the over- 

night deposits in connection with the clearing. 

Remuneration of persons in key management positions: 

The persons concerned are the active members of the Ex- 

ecutive Board as well as former members of the Executive 

Board and their surviving dependants. 

The total remuneration of the Executive Board of 

HHLA in 2006 was 3,646 EUR’000 (2005: 2,123 EUR’000). 

Of this amount, 1,105 EUR’000 (2005: 865 EUR’000) rela- 

ted to fixed components and 2,541 EUR’000 (2005: 1,258 

EUR’000) to variable components. 

Payments to former members of the Executive Board 

and their surviving dependants came to 531 EUR’000 

(2005: 554 EUR’000). Provisions of 7,072 EUR’000 (2005: 

6,471 EUR’000) have been set up for pension obligations 

to active and former members of the Executive Board and 

their surviving dependants. 

The Supervisory Board remuneration in the reporting 

year was 6 EUR’000 (2005: 4 EUR’000). 

41. oBJectives anD methoDs of finance risk 

management 

In connection with the financing of its business activity, 

the Group makes use of short-term, medium-term and 

long-term bank loans, finance leases as well as its cash 

and short-term deposits. The Group has various further 

financial assets and debts, such as trade receivables and 

trade payables, that arise directly in connection with its 

business activity. 

The Group also enters into derivative transactions. 


The derivative financial instruments include, in particular, 

interest hedges, such as interest swaps and interest caps, 

as well as, to a small extent, forward exchange deals and 

price hedges for raw materials. The purpose of these de- 

rivative financial instruments is risk management of interest, 

currency and raw material price risks that arise from the 

Group’s business activity and the sources of its finance. 

The use of derivative financial instruments is gov- 

erned by appropriate directives (guidelines) and may only 

proceed in order to secure existing underlying transactions 

or planned transactions, the occurrence of which is suffi- 

ciently probable. These directives specify the responsibi- 

lities, scope for action and reporting. The relevant trans- 

actions are only concluded with counterparties with first- 

rate credit standing. The Group does not hold derivative 

financial instruments for purposes of speculation. 

Besides the market risks mentioned, there are in the 

area of financial risks, liquidity risks and default risks. 

Interest risk 

In connection with outside finance, the Group is exposed 

to an interest change risk, that results mainly from medium 

and long-term financial debt with variable interest. 

Interest expense in the Group is controlled, depend- 

ing on the market, by a combination of fixed interest and 

variable interest outside capital. The Group’s policy is to 

have the greater part of its interest-bearing outside capital 

to bear fixed interest, either through agreements on fixed 

interest with the relevant lenders or by the conclusion of 

interest swaps. Furthermore, the Group limits the interest 

change risk for the remaining debt, i. e. that which bears 

variable interest, partly by the use of interest caps. 

As at the balance sheet date, taking into consider- 

ation the effect of interest swaps with a reference amount 

of 74,141 EUR’000 (2005: 80,420 EUR’000), the interest 

was locked-in for approximately 89 % (2005: 97 %) of 

the Group’s loans. Additionally, there were interest caps 

with a reference amount of 28,250 EUR’000 (2005: 500 

EUR’000). 

Currency risk 

In connection with the investments outside the euro area, 

changes in exchange rates can have an influence on the 

133


consolidated balance sheet. However, the resulting foreign 

currency risk is relatively insignificant. Foreign currency 

risks from individual transactions, such as for the sale of 

a business share, are hedged on a case-by-case basis 

with forward exchange transactions, if the market situ- 

ation is deemed to make this necessary. The correspon- 

ding hedges are denominated in the same currency as 

the underlying transactions. The Group only concluded 

forward exchange contracts when definite claims or obli- 

gations have arisen. 

As at the balance sheet date, there was one forward 

exchange deal, relating to a transaction with a nominal 

vol-ume of 738 EUR’000 and a residual term of less than 

one year. The market value as at December 31st 2006 was 

41 EUR’000. 

Raw material price risk 

The Group is exposed to raw material price risks in par- 

ticular in its procurement of fuel. Depending on the market 

situation, the Group concluded price hedges for part of its 

fuel requirement. As at the balance sheet date, there was 

a hedge on the price of a residual quantity of 500 metric 

tonnes of diesel with a residual term of less than one year; 

this was recognised as a liability with a negative market 

value of 146 EUR’000. 

Default risk 

The Group enters business relationships on a credit basis 

only with third parties that are reputable and creditworthy. 

A creditworthiness test is carried out on customers wishing 

to conclude transactions with the Group on a credit basis. 

The receivables are monitored continually and, when risks 

arise, adjustments are formed so that the Group is not ex- 

posed to any further significant bad debt risk in the area of 

receivables. The maximum default risk is, theoretically, in 

the amount of the carrying value of the receivables. The bad 

debt risk from the derivative financial instruments would 

arise theoretically from a default of a counterparty, and 

hence corresponds to the carrying value of the instruments. 

Since the Group only enters into derivative financial trans- 

actions with counterparties with premium credit standing, 

the actual risk of default is minimal. 

Liquidity risk 

The Group ensures that liquidity is assured at all times by 

medium-term liquidity planning, with different end-payment 

terms for its loans and finance leases, as well as through 

existing credit lines and other financing approvals. 

FINANCIAL INSTRUmENTS 

Fair value 

With the exception of the financial liabilities listed in section 

35 (short-term and long-term liabilities), there are no 

significant differences between the carrying values and the 

fair values of the financial instruments. 

Derivative financial instruments 

Derivative financial instruments are deployed in the HHLA 

Group to reduce interest rate risks as well as, to a small 

extent, to reduce risks arising from fluctuations in currency 

and raw materials prices. The financial derivatives in the 

consolidated financial statements are recognised at their 

fair values. Gains and losses arising therefrom are shown 

in the financial result with effect on income, unless the 

derivative financial instrument is tied to a cash flow hedge. 

If there is a cash flow hedge, the unrealised gains and 

losses are recorded under equity instead of in the income 

statement in the amount of the effective portion. 

As at the balance sheet date the following interest derivatives 

were held at terms and conditions given below: 

fair values fair values 

31.12.2006 31.12.2005 

fixed interest variable interest rate reference amount positive negative positive negative 


Interest swap 2.81 % to 6.66 % 3m to 6m EURIBOR 74,141 1,025 - 360 15 - 1,827 

Interest caps 3.75 % to 4.50 % 6m EURIBOR 28,250 184 0 0 0 

102,391 1,209 - 360 15 - 1,827

The residual terms of the interest derivatives are between 

five months and ten years. 

As at the balance sheet date, there was a hedge on 

the price of a residual quantity of 500 metric tonnes of 

diesel with a residual term of less than one year; this was 

recognised as a liability with a negative market value of 

146 EUR’000. 

The fair values of the derivatives are computed on the 

basis of market listings of the counterparties. 

The expenses and income from the underlying trans- 

actions shown in the financial results and the correspond- 

ing derivatives are shown separately. Expenses and income 

are not netted. 

Of the interest swaps presented, as at December 

31st 2006 financial instruments with a reference amount 

of 62,916 EUR’000 and a market value of 918 EUR’000 

are recognised under cash flow hedges to secure the fu- 

ture cash flows from interest-bearing liabilities (2005: refe- 

rence amount of 51,526 EUR’000 and market value of -315 

EUR’000). The cash flows hedged will probably occur in a 

period of less than 10 years. The reference amount of the 

interest swap is adjusted over the term of the derivative to 

the probable redemption of the loans. 

In the financial year 2006, gains of 1,192 EUR’000 

were recorded directly under equity for financial instru- 

ments deployed to hedge cash flows (2005: gains of 308 

EUR’000). 

42. comments on the consoliDateD cash 

flow statement 

For purposes of the consolidated cash flow account, cash 

and cash equivalents as at 31 December were as follows: 

31.12.2006 31.12.2005 

EUR ’000 EUR ’000 

Bank balances and cash in hand 17,378 14,157 

Current deposits 4,740 4,147 

Receivables from HGV 14,400 86,800 

36,518 105,104 

The receivables from HGV relate to overnight deposits. 


43. memBers of the corporate BoDies 

SUPERVISORy BOARD 

Dr. peter von foerster 

Chairman, Lawyer 

fred timm 

Deputy Chairman, member of the HHLA Works Council 

harald erven 

member of the HHLA Works Council 

rolf kirchfeld 

Graduate in Business Administration 

Dr. rainer klemmt-nissen 

Senate Director, Hamburg tax authority 

Dr. Johannes ludewig 

Executive Director, Community of European Railway and 

Infrastructure Companies (CER) 

gunther Bonz 

Privy council of Economic Affairs and Employment 

wolfgang rose 

Hamburg Area Chief Officer, ver.di trade union 

uwe schröder 

manager, Seaports Department, ver.di trade union, 

Hamburg 

walter stork 

Chairman, Executive Board, NAVIS Schiffahrts- und 

Speditions-Aktiengesellschaft, Hamburg 

manfred wilkens 

member of the HHLA Works Council 

wolfgang weskamp 

member of HHLA staff 

135


ExECUTIVE BOARD 

klaus-Dieter peters 

Chairman 

Forwarding merchant – Corporate Development, 

Logistics Division 

Dr. stefan Behn 

Business graduate – Container Division 

gerd Drossel 

Forwarding merchant – Intermodal Division 

rolf fritsch 

Graduate with degrees in economics and political science 

– Human Resources and Social Affairs 

Dr. roland lappin 

Graduate in industrial engineering – Finance, Real Estate 

Division 

44. events occurring after the Balance 

sheet Date 

The shareholder is considering a flotation of HHLA AG in 

2007. About 30 % of the ordinary shares would be offered 

on the stock exchange. Part of the flotation would be a 

special employee participation programme, with the workforce 

being given an attractive offer to purchase shares in 

HHLA. The landed property and the management of the 

Hamburg Speicherstadt and Altona Fischmarkt (historical 

warehouse and fishmarket areas) would continue under 

the control of HHLA. In view of the special significance 

of these properties for Hamburg and HHLA, it is intended 

that third parties would from the outset be excluded from 

having any say on these matters. To this end, it is planned 

that special “Speicherstadt” shares would be issued, which 

would be reserved for the Hanseatic City of Hamburg and 

hence remain unlisted. 

With effect at 1 January 2007, Grimaldi Compagnia di 

Navigazione SpA took out a 49 % participation in UNIKAI 

Lagerei- und Speditionsgesellschaft mbH. 

On may 25th 2007, the Lower House of the Federal 

Parliament passed a reform of corporate taxes to take effect 

from 2008. The Upper House of Parliament, the Bundesrat 

(or Federal Council), has not yet given its approval 

to the act. If the law comes into force, the average income 

tax charge levied on corporations will fall to below 30 %. 

The Group expects that this would give rise to expense 

from adjustment of the measurement of deferred taxes of 

about EUR 10 million. 


HAmBURGER HAFEN UND LOGISTIK 

AKTIENGESELLSCHAFT 

Klaus-Dieter Peters Dr. Stefan Behn Gerd Drossel 

Rolf Fritsch Dr. Roland Lappin

auDitors’ report 

We have audited the consolidated financial statements – 

consisting of the balance sheet, income statement, sched- 

ule of revenues and expenses, cash flow statement and 

notes – as well as the Group management report prepared 

by Hamburger Hafen und Logistik Aktiengesellschaft, Ham- 

burg, for the business year from 1 January to 31 December 

2006. The preparation of the consolidated financial state- 

ments and the Group management report in accordance 

with IFRS as applicable in the EU, and the supplementary 

commercial law provisions applicable pursuant to § 315a 

(1) HGB are the responsibility of the Executive Board of the 

Company. It is our task, on the basis of the audit conducted 

by us, to give a judgement on the consolidated financial 

statements and the Group management report. 

We conducted our audit of the consolidated financial 

statements in accordance with § 317 HGB (German Com- 

mercial Code) and the generally accepted standards for 

the audit of financial statements in Germany promulgated 

by the Institut der Wirtschaftsprüfer (IDW: Institute of 

Public Auditors in Germany). Those standards require that 

we plan and perform the audit such that misstatements 

materially affecting the presentation of the net assets, fi- 

nancial position and results of operations in the consolid- 

ated financial statements in accordance with applicable 

accounting regulations and in the Group management 

report are detected with reasonable assurance. Knowledge 

of the business activities and the economic and legal en- 

vironment of the Group and expectations as to possible 

misstatements are taken into account in the determination 

of audit procedures. The effectiveness of the accounting- 

related internal control system and the evidence supporting 

the disclosures in the books and records, the consolidated 

financial statements and the Group management report are 


examined primarily on a test basis within the framework of 

the audit. The examination comprises an assessment of the 

annual financial statements of the companies included in 

the Group financial statements, the definition of the scope 

of consolidation, the accounting and consolidation 

methods applied and the principal estimates of manage- 

ment as well as an assessment of the overall picture con- 

veyed by the Group financial statements and the Group 

management report. We believe that our audit provides a 

reasonable basis for our opinion. 

Our audit has not led to any reservations. 

In our opinion, based on the findings of our audit, 

the consolidated financial statements comply with IFRS, 

as applicable in the EU, and with the supplementary com- 

mercial law provisions pursuant to § 315a (1) HGB and give 

a true and fair view of the net assets, financial position 

and results of operations of the Group in accordance with 

these provisions. The Group management report is con- 

sistent with the consolidated financial statements and as 

a whole provides a suitable view of the Group’s position 

and suitably presents the opportunities and risks of future 

development. 


KPmG Deutsche Treuhand-Gesellschaft 

Aktiengesellschaft 

Wirtschaftsprüfungsgesellschaft 

Ditting Heckert 

Wirtschaftsprüfer Wirtschaftsprüfer 

137


annual financial 

Statement 

(parent company) 

The annual financial statement and report of Hamburger 

Hafen und Logistik Aktiengesellschaft, Hamburg, for fiscal 

2006 has been prepared according to the provisions of 

German commercial law and has been endorsed with an 

unrestricted auditor’s certificate by the auditors of KPMG 

Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirt- 

schaftsprüfungsgesellschaft. For fiscal 2006, Hamburg 

Hafen und Logistik Aktiengesellschaft has accepted the 

option of simplified disclosure for groups with many sub- 

sidaries under § 264 paragraph 3 of the German Commer- 

cial Law (HGB). Endorsement by the Annual General Mee- 

ting will be published in the German Federal Gazette and 

entered in the Commercial Register at Hamburg County 

Court under reference HRB 1902. 

The statement of income for the period January 1st to De- 

cember 31st 2006 and the balance sheet as at December 

31st 2006 will be found below.

income Statement 

FoR THE PERioD FRoM 1 JAnuARy To 31 DECEMBER 2006 

annual financial Statement (parent company) 

2006 2005 

EuR EuR EuR EuR 

1. Sales revenues 128,550,111.99 121,526,436.16 

2. Decrease (p. y. increase) in stock of 

work in progress - 620,258.00 476,138.55 

3. own work capitalised 595,007.26 375,365.75 

4. other operating income 5,019,896.37 21,708,589.92 

5. cost of materials 

a) Cost of raw materials, supplies and consumables 

and of purchased merchandise 4,679,192.52 3,450,138.15 

b) Cost of purchased services 944,615.35 5,623,807.87 631,428.24 4,081,566.39 

6. personnel expenses 

a) Wages and salaries 92,571,516.61 86,126,852.09 

b) Social security contributions and expenses for pensions 

and similar benefits 33,853,520.19 126,425,036.80 46,096,624.16 132,223,476.25 

thereof, for retirement pensions 

EuR 17,047,370.81 (p. y. EuR 29,109,293.57) 

7. amortisation of intangible fixed assets 

and depreciation of tangible assets 4,689,654.66 15,894,522.59 

8. other operating expenses 24,166,284.02 25,684,877.20 

9. income from profit and loss transfer agreements 109,079,865.64 80,804,740.98 

10. income from participations 3,156,466.15 2,316,731.94 

thereof, from affiliated companies 

EuR 809,083.24 (p. y. EuR 1,100,688.64) 

11. other interest and similar income 5,932,566.86 4,144,922.20 


EuR 5,752,677.91 (p. y. EuR 3,835,827.07) 

12. impairment of financial assets 0.00 23,333.33 

13. expenses from transfer of losses 2,191,149.19 276,884.38 

14. interest and similar expenses 2,027,214.90 2,594,785.52 


EuR 1,584,36.40 (p. y. EuR 1,528,697.98) 

15. result of ordinary income 86,590,508.83 50,573,479.84 

16. taxes on income and earnings 35,497,085.87 15,745,546.26 

17. other taxes 358,547.47 302,698.70 

18. net income (profit) for the year 50,734,875.49 34,525,234.88 

19. profit brought forward from prior year 61,066,351.28 37,541,116.40 

20. retained earnings 111,801,226.77 72,066,351.28 

139


Balance Sheet as at 31 December 2006 

ASSETS 

a. fixed assets 

i. intangible assets 

31.12.2006 31.12.2005 


Software 1,077,443.36 966,915.73 

ii. tangible assets 

1. Land, rights similar to land and buildings 

including buildings on third-party land 55,428,278.43 33,965,568.13 

2. Plant and machinery 441,347.58 494,961.13 

3. other plant, operating and office equipment 3,427,659.61 1,964,649.76 

4. Payments on account and assets under construction 1,012,765.28 60,310,050.90 6,615,975.09 43,041,154.11 

iii. financial assets 

1. Shares in affiliated companies 205,753,395.17 205,756,124.71 

2. Participations 7,136,243.71 5,812,163.71 

3. Securities of fixed assets 127,789.87 213,017,428.75 0.00 211,568,288.42 

B. current assets 

i. inventories 

274,404,923.01 255,576,358.26 

1. Raw materials and supplies 110,448.06 71,492.49 

2. Work in progress 413,083.00 523,531.06 1,033,341.00 1,104,833.49 

ii. receivables and other assets 

1. Trade receivables 1,084,967.53 630,963.61 

2. Receivables from the Free and Hanseatic 

City of Hamburg 42,818.82 83,142.82 

3. Receivables due from HGV Hamburger 

Gesellschaft für Vermögens- und Beteiligungs- 

verwaltung mbH 15,615,199.03 89,086,173.76 

4. Receivables from affiliated companies 203,439,815.93 104,305,163.95 

5. Receivables from companies with which 

there is a participatory relationship 7,189.17 86,301.81 

6. other assets 7,140,338.39 227,330,328.87 8,823,900.70 203,015,646.65 

thereof with a residual term of more than one 

year EuR 111,538.87 (p. y. EuR 795,543.96) 

iii. cash in hand, bank deposits 

and cheques 8,394,911.41 2,600,758.14 

236,248,771.34 206,721,238.28 

c. prepaid expenses 461,676.26 125,380.79 

511,115,370.61 462,422,977.33

Balance Sheet as at 31 December 2006 

SHAREHoLDERS’ EquiTy AnD LiABiLiTiES 

a. Shareholders’ equity 

annual financial Statement (parent company) 

31.12.2006 31.12.2005 


i. Subscribed capital 53,300,000.00 53,300,000.00 

ii. capital reserve 30,178,362.89 30,178,362.89 

iii. revenue reserves 

1. Statutory reserve 5,330,000.00 5,330,000.00 

2. other revenue reserves 16,303,634.31 21,633,634.31 16,303,634.31 21,633,634.31 

iV. retained earnings 111,801,226.77 72,066,351.28 

216,913,223.97 177,178,348.48 

B. Special item with an equity portion 

(untaxed special reserve) 4,500,000.00 4,500,000.00 

c. provisions 

1. Provisions for pensions 

and similar commitments 222,651,113.00 226,656,992.00 

2. Tax provisions 11,828,359.87 3,514,443.00 

3. other provisions 26,494,782.29 19,956,811.82 

D. liabilities 

260,974,255.16 250,128,246.82 

1. Liabilities to banks 0.00 90,957.59 

2. Trade payables 3,410,526.89 3,848,325.48 

3. Liabilities to the Free and Hanseatic 

City of Hamburg 2,329.00 13,186.71 

4. Liabilities to affiliated companies 15,366,037.63 17,049,702.87 

5. Liabilities to companies with which there 

is a participatory relationship 1,211,237.56 908,133.91 

6. other liabilities 7,497,410.26 7,305,801.03 

thereof taxes EuR 2,855,256.02 

(p. y. EuR 2,803,918.89) 

thereof social security 

EuR 0.00 (p. y. EuR 1,213,745.65) 

27,487,541.34 29,216,107.59 

e. Deferred income 1,240,350.14 1,400,274.44 

511,115,370.61 462,422,977.33 

141


ChRONOlOgY 

2006 

FEBRUaRY 

HHLA Container Terminal Tollerort (CTT) installs two new quay- 

side container gantry cranes. In order to handle increasing con- 

tainer volumes, CTT now operates entirely with Post-Panmax 

container gantry cranes adapted to growth in ship sizes. 

MaRCh 

For the first time at HHLA, women commence training as drivers 

of large container handling equipment. At HHLA Container Termi- 

nal Burchardkai, two of them will in future be operating container 

gantry cranes, and another two, straddle carriers. 

aPRIl 

Wolfgang Tiefensee, Federal minister of transport, building and 

urban development, visits HHLA Container Terminal Altenwerder. 

From a container gantry crane, he gains a view of the significance 

of seaports for the German logistics industry. 

aPRIl 

The “Freedom of the Seas”, the world’s largest cruise ship, calls 

at Hamburg Cruise Center in HafenCity during her inaugural 

cruise. Royal Caribbean International’s luxury liner has enough 

cabins to accommodate up to 4,370 passengers. 

MaY 

Around 500 experts and 100 exhibitors from all over the world 

gather for the Terminal Operations Conference (TOC) in Ham- 

burg. HHLA contributes to the 30th TOC Europe with lectures, 

inspection tours at its container terminals, and by staging the 

main reception. 

JUNE 

HHLA Container Terminal Altenwerder sets a new record when 

handling the “NYK Sirius” with 143 container “moves”, mean- 

ing 143 containers loaded and discharged per hour – or a total 

of 2,717 boxes within just 19 hours. 

JUlY 

“Hamburg Architecture Summer 2006” also finds a home in 

Speicherstadt. In Block V, HHLA presents an exhibition of works 

by students showing some unconventional ideas for the Zoll- 

kanal area and for the utilization of historic, listed warehouse 

buildings. 

aUgUST 

21 new vocational trainees start their careers with HHLA. Seven 

young women and fourteen young men will be training for quali- 

fications in areas such as port logistics, storage logistics, office 

management, IT and electronics.

aUgUST 

During a visit to Hamburg, Federal president Horst Köhler views 

HHLA Container Terminal Altenwerder. Here he is able to inspect 

the entire transport chain from containership through storage 

blocks to rail and the adjacent logistics center. 

SEPTEMBER 

“Flying Clouds – Flowing Water” is the title of an exhibition 

of filigree rice paper sculptures by the Chinese artist Shi Hui. 

HHLA documents its close association with East Asia with this 

cultural contribution to “China Time 2006”. 

SEPTEMBER 

HHLA Rhenus Logistics hosts a ceremony to open the new Lo- 

gistikzentrum Altenwerder. On an initial area of around 29,000 

square metres, modern sheds offer space for value-added logis- 

tics services immediately adjacent to HHLA Container Terminal 

Altenwerder. 

SEPTEMBER 

ChRONOlOgY 

A V200 locomotive hauls a container train at the ceremonial 

opening of the new on-dock rail container terminal at HHLA Con- 

tainer Terminal Burchardkai, just as at the opening of the first rail 

terminal here in 1968. The new rail facility is the first important 

milestone in the upgrading of CTB. 

OCTOBER 

Around 600 Hamburg Port Authority staff members move into 

their new offices in Block P of Speicherstadt. HHLA refurbished 

the 23,000-square-metre block especially for these tenants, 

equipping it with state-of-the-art office technology while adher- 

ing to the rules for protecting historic buildings. 

OCTOBER 

Dr. Peter von Foerster, chairman of HHLA’s Supervisory Board, 

is awarded the Federal Service Cross for his voluntary activities. 

Gunnar Uldall, Senator for Economic and Labour Affairs, pre- 

sented the medal to him at a ceremony in Hamburg City Hall. 

NOVEMBER 

Each served by two automated stacking cranes, four new stor- 

age blocks enter service at HHLA Container Terminal Altenwer- 

der (CTA). These supplement the line of 22 “colleagues” in the 

southern part of the terminal, and boost CTA capacity by provid- 

ing increased storage area in the yard. 

DECEMBER 

José Manuel Barroso, EU president, tours HHLA Container Ter- 

minal Altenwerder to gain an impression of the state of techno- 

logical development in German seaports. His time on a container 

gantry crane forms part of an official visit to Hamburg. 

143


SPECIalIST TERMINOlOGY 

aUTOMaTED GUIDED VEhIClE (aGV): Fully automated 

unmanned transport system used to move containers be- 

tween container gantry cranes and storage blocks. De- 

ployed by HHLA at Container Terminal Altenwerder. 

BlOCK STORaGE: Automated storage blocks used by 

HHLA at Container Terminal Altenwerder – and hence- 

forth also at HHLA Container Terminal Burchardkai – for 

compact stacking of containers that are handled by rail- 

mounted gantry cranes (RMG). 

CONTaINER GaNTRY CRaNE: Crane used for loading and 

discharging container ships. A distinction is made between 

Panmax-, Post-Panmax- and Super-Post-Panmax container 

gantry cranes for handling ships of the corresponding sizes. 

CONTRaCT lOGISTICS: Business model based on long-term 

cooperation and division of labour between manufacturers of 

goods and service providers and regulated by a service con- 

tract. Providers of contract logistics services provide logistics 

and logistics-related services along the value-added chain. 

FEEDER, FEEDERShIP: Regional containerships that dis- 

tribute smaller quantities of containers onwards to ports 

not served directly in the schedule of liner services by large 

containerships. From Hamburg, for example, the Baltic re- 

gion and Scandinavia are served by feeders. 

GaNTRY GRaBBING CRaNES: Unit for discharging coal 

and ore carriers. 

haMBURG-aNTWERP RaNGE: A collective term for the 

large ports of Northern Europe – Hamburg, Bremerhaven, 

Amsterdam, Rotterdam, Antwerp and Zeebrügge – that 

stand in direct competition. 

INTERMODal aND/OR INTERMODal SYSTEMS: Trans- 

port utilizing several carriers (water, rail, road) and combin- 

ing the advantages of each. 

ISPS CODE: International Ship and Port Facility Security 

Code, designed to minimize the threat of terrorist attacks. 

lOCal GOODS VOlUME: Volume of local goods manu- 

factured, processed or consumed in the immediately sur- 

rounding economic region. For the Port of Hamburg, this 

is the Hamburg metropolitan region, with over four million 

inhabitants. 

MUlTIMODal TRaNSPORTaTION >> see Intermodal. 

MUlTIPURPOSE TERMINal: Universal terminal for hand- 

ling different types of general cargo, e.g. vehicles, conven- 

tional general cargoes and containers. 

NORTh RaNGE: Overseas ports in Northern Europe. In 

a stricter sense, the term is often synonymous with the 

description “Hamburg-Antwerp Range”, while in a wider 

sense it is understood to signify all the large continental 

ports in Northern Europe, from Le Havre as far as Hamburg 

and Gothenburg. 

RFID (RaDIO FREQUENCY IDENTIFICaTION DaTa): Pro- 

cess facilitating reading and storage of data by radio iden- 

tification. 

TEU (TWENTY-FOOT EQUIValENT UNIT): Term denoting 

a normed standard container, in worldwide use as a unit 

of measure for uniform counting of container quantities. 

A 20-foot container is 20 feet (6.06 metres) in length and 

eight feet (2.44 metres) in width and height. 

STRaDDlE CaRRIER (alSO VaN CaRRIER): Usually an 

eight-wheeled vehicle used for moving containers around 

terminals. The driver of a straddle carrier is seated at the 

controls above the container, lifting it and stacking it in one 

of several layers.

FINaNCIal TERMS 

Ø OPERaTING aSSETS: Average net assets (intangible as- 

sets, fixed assets, real estate held as financial investments 

and financial investments) + average net liquid assets (in- 

ventories plus trade receivables, less trade payables). 

aDDED ValUE: Added value is calculated on the basis 

of the value of production less input (costs of materials, 

depreciation, other costs). Added value is distributed to 

different interest groups in HHLA such as staff, lenders, 

partners or the state. 

COMMERCIal DEBTS: Net financial debts + pension 

reserves. 

DBO (DEFINED BENEFIT OBlIGaTION): Performance-ori- 

ented pension obligations arising from the accrued and 

estimated pensions rights of active and former members 

of staff as at settlement day, allowing for probable future 

changes in pensions and emoluments. 

DERIVaTIVE FINaNCIal INSTRUMENTS: Financial instru- 

ments that are traditionally used to protect existing invest- 

ments or obligations. 

DVFa/SG: Deutsche Vereinigung für Finanzanalyse und An- 

lageberatung e.V. (DVFA) and Schmalenbach-Gesellschaft, 

Deutsche Gesellschaft für Betriebswirtschaft (SG). 

EBIT: Earnings before interest and tax. 

EBITDa: Earnings before tax, interest and depreciation. 

EBT: Earnings before tax. 

EQUITY RaTIO: Equity/total assets. 

FINaNCIal RESUlT: Result from holdings + interest result 

less depreciations on and losses from disposal of invest- 

ments as well as securities forming part of current assets. 

GEaRING RaTIO: Commercial debt/equity. 

IaS: International Accounting Standards. 

TERMINOlOGY 

IFRS: International Financial Reporting Standards. 

IMPaIRMENT TEST: Impairment test as defined in IFRS. 

NET FINaNCIal lIaBIlITIES: Liabilities (bank liabilities) 

– liquid funds. 

OUTPUT ValUE: Total sales revenues + other operational 

revenues +/– financial result. 

PRO RaTa TEMPORIS: Corresponding to time elapsed. 

ROCE (RETURN ON CaPITal EMPlOYED): EBIT/Ø operat- 

ing assets. 

SalES REVENUES: Revenues derived from selling, letting 

or leasing and from services provided by the corporation, 

less sales deductions and turnover tax. 

TOTal PERFORMaNCE: Sales revenues +/– inventory 

increase/decrease + own work activated. 

145

IMPRINT Hamburger Hafen und Logistik Aktiengesellschaft, Bei St. Annen 1, 20457 Hamburg, Germany. Tel. +49-40-3088-1, Fax +49-40-3088-3355, www.hhla.de

Hamburger Hafen und Logistik aktiengeseLLscHaft 

Bei St. Annen 1, 20457 Hamburg, Germany. Tel: +49-40-3088-1, Fax: +49-40-3088-3355, www.hhla.de, info@hhla.de

HAMBURGER HAFEN UND LOGISTIK ... - HHLA

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