World Trade - January 2009 - (Page 43)

REGION: EUROZONE Port of Hamburg Grows as Distribution Point to Eastern Europe The ‘hinterland’ of Poland and beyond beckons as trade opportunities expand. BY NEIL SHISTER H amburg ranks among Europe’s historic ports, tracing its prominence to the Middle Ages—some 820 years ago—and the Hanseatic League alliance of North Sea cities. Back then it was agricultural produce—crops like flax, wheat and rye—from the east that flowed through the port, bound for Flanders and England in exchange for cloth and, later, manufactured goods. Five centuries later it is still eastern trade—Georgia, Ukraine, Russia and particularly Poland—that animates Europe’s second-largest container port, but this time it’s largely inbound as the revitalized ex-Iron Curtain countries become growing customers for western products. The importance of Eastern Europe in the global economy continues to grow. Increased purchasing power has accompanied a shift eastward in the continent’s center of economic gravity, making ‘the hinterland’ attractive for both direct investment and supply chain sourcing. Ukraine’s GDP grew at close to 7 percent the last few years; Georgia’s growth was even more robust. Poland is a great success story of the transitioning economies, now a member of the European Union, thereby eliminating the customs border that had existed between Germany and Poland. Which, in turn, allows goods to ﬂow more easily into and out of that market and to Port of Hamburg reach further east into Russia. Playing a central role as Europe’s most important port of entry to the eastern region, Hamburg is emerging as the logistics hub into the hinterland. In addition, intermodal service provided by Polzug Intermodal runs through Poland as far east as Kazakhstan, further solidifying the strategic positioning of the port. As a universal port offering a full range of transportation services, the Port of Hamburg, just off the North Sea on the River Elbe, is regarded as one of the most important cargo handling centers in the world (and Europe’s second-largest container port). With 320 berths and around 200 container gantries and cranes, the Port can accommodate any type of vessel. In addition, its well-situated geographical position facilitates fast, convenient access via canal to the Baltic Sea. A distinct advantage to the growth of the Port vis-à-vis its competitors is the large amount of cargo directly servicing Hamburg itself, affording the Port substantial economic foundations within the region with an immediate population of 3 million. With some 156,000 jobs in the region depending directly or indirectly on the Port, it exercises strong claims to public and private resources needed to fully exploit growth potential. Some 1 billion euros are expected to be invested in the Port over the next half-dozen years by the citystate of Hamburg, supplemented by billions of euros from the private sector. Container trafﬁc has been the main motor for growth, expanding annually at rates approaching double digits. Asian transshipment ﬁgures prominently in the mix; China is the Port’s most important trade partner. South Korea and Malaysia are also signiﬁcant. The Baltic Sea connection to the Russian Federation and Poland continues to build. The cyclical downswing associated with the global ﬁnancial crisis is understandably heavily impacting the growth trajectory. With Germany and the wider euro zone in recession (economists see no prospects for growth until late 2009 at best), volumes at Hamburg have ‘slacked’ to single-digit growth this year (after 7 consecutive years of double-digit growth). Four container terminals have a collective capacity of nearly 9 million TEUs per year, with a handling capacity of over 2,500 TEUs every 24 hours. Port infrastructure is strong. Eurogate Container Terminal Hamburg, already able to accomWWW.WORLDTRADEMAG.COM 43 http://WWW.WORLDTRADEMAG.COM

Table of Contents Feed for the Digital Edition of World Trade - January 2009

World Trade - January 2009 Contents Supply Chain Finance Conference: The Right Stuff at the Right Time! Is the Dollar's 'Exorbitant Privelege' as the Global Standard at Risk? Supply Chain Watch Tradewinds The Rise of the 4PL An Evolving Tech Backbone Makes 4PL Service More Effective The Changing Landscape of U.S. Railroads Intermodal Grows Up Port of Hamburg Grows as Distribution Point to Eastern Europe Outsourcing Without Fear Measuring the Carbon Footprint

World Trade - January 2009

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