Germany: Exports Fuel Logistics Success
Two major German container port operators in Hamburg and Bremerhaven plan to jointly build a deepwater port on the North Sea.
By Dagmar Trepins -- Logistics Management, 2/1/2001
Exports are playing an especially important part in Germany's current economic upswing. In the first eight months of 2000, Germany's exports reached a value of DM 752 million (approximately $365 billion), making it the world's second largest export economy after the United States. Sustained export success also has stimulated domestic trade and industry, boosting employment and general economic growth. Germany's main export commodities by value were vehicles, machinery, chemical products, and industrial plant.
Ports Profit From Export Growth
Also profiting from rising export volumes were Germany's leading seaports, Hamburg and Bremen/ Bremerhaven, which reported double-digit increases in throughput. In order to handle growing traffic flows, both ports are increasing their terminals' capacities.
German ports have other reasons to grow. Although they are currently able to serve containerships that already are in service or are now under construction, container lines could in future deploy larger ships with deeper drafts. Two major German container port operators in Hamburg and Bremerhaven, therefore, plan to jointly build a deepwater port on the North Sea. Bremen-based BLG/Eurogate favors JadeWeserPort Wilhelmshaven, but Hamburg's HHLA and partner Rhenus-Midgard would like to develop port facilities in Cuxhaven. Sometime this spring the governments of the federal states of Hamburg, Bremen, and Lower Saxony will make a decision on the location of the jointly operated deepwater port.
Large investments in port and logistics facilities have also been made by Germany's biggest inland port, Duisburg. The port has been promoting its two locations, 'Duisport' and 'Logport,' to national and international investors. With the recruitment of the P&O Group, the NYK subsidiary New Wave Logistics, and forwarding company Kühne & Nagel, three global leaders in transport and logistics have now moved into the Logport site. To strengthen links with other ocean and inland ports, Duisburg has entered into several cooperative agreements, including pacts with the inland ports of Memphis, Tenn., and Pittsburgh, Pa., in the United States.
Germany's strong economic performance also has led to double-digit growth in the air-cargo business. Frankfurt airport handled 1.3 million metric tons of freight between January and October 2000, an increase of 12.2 percent over the corresponding period in 1999.
New Alliances
For some German companies, 2000 was the year for strategic alliances and reorganizations. Lufthansa Cargo, for example, announced that it would be splitting its activities into three global business areas: 'Global Cargo Net,' 'Global Cargo Handling Services,' and 'Global Freighter Operations,' effective January 1, 2001. The cargo carrier's object is to restructure the company into a customer- and value-driven organization six years after becoming an independent subsidiary of parent Lufthansa AG.
In April, Lufthansa Cargo launched a close strategic alliance with Deutsche Post. The two companies founded Aerologic GmbH, a new company that will pool their interests in the global express-service provider DHL International. In addition, the two partners also established a second joint venture company, called e-logic to develop new business in the areas of e-commerce and supply chain management.
Another major announcement came from German logistics provider Schenker, which said it would merge Schenker-BTL (Deutschland) and Schenker International Deutschland. From January 1st, the Frankfurt-based company will operate its logistics business under the name of "Schenker Deutschland."
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