In the first four months of the year, the Hupac Group recorded extraordinary traffic growth of 28 per cent. This positive development is mainly attributable to the volumes of ERS Railways, which joined the Hupac Group in June 2018. The traffic development of Hupac Intermodal remained slightly below expectations with a growth of 3 per cent.
Overall, Hupac expects traffic demand to stabilise in 2019 as a result of the economic slowdown. “Despite the emerging economic stagnation, we assume that we will achieve traffic growth in a high single-digit percentage range and thus touch the one million mark “, says Beni Kunz, CEO of the Hupac Group.
In financial year 2018, the Hupac Group increased its sales by 19.4% to CHF 579.7 million (EUR 502.1 million) compared with the previous year. The main factors for the extraordinary growth were the positive development in the core business of combined transport through Switzerland, the acquisition of the maritime operator ERS Railways and the discontinuation of the negative effect from the Rastatt disruption in the prior year.
Despite the challenging market environment regarding the quality of the railway infrastructure and the performance of single large railways, Hupac was able to generate a result of CHF 7.9 million (EUR 6.8 million). This represents a decline of 29.1% compared with the previous year, but it is in line with expectations, as the result is characterized by one-time special effects – above all goodwill amortization on acquisitions.
For the first time, the Maritime Logistics business unit was able to make a significant contribution to the business result of the Hupac Group. In June, Hupac took over the combined transport operator ERS Railways BV based in Rotterdam and Hamburg, including a 47%-stake in the Hamburg-based railway undertaking boxXpress. With this takeover, the Hupac Group strengthens its position in maritime hinterland transport – a segment that has recorded significant growth in recent years and has a secure potential in the future, as globalisation continues to require strong networks between the ports and the hinterland.
ERS Railways is gradually being developed into the brand of the Hupac Group for maritime transport. While the company today focuses on connections within Germany, the range of services will be extended to the western ports with connections between Rotterdam and southern Germany from the middle of the current year onwards. Already in the 2018, ERS Railways contributed with 190,000 TEUs or 92,000 road consignments to the total volume of the Hupac Group and generated a pleasing result.
Hupac consistently invests in the further growth of its business activities. Investments in fixed assets increased significantly to CHF 71.3 million in 2018. The wagon fleet was increased by 16% to 6,891 modules. The purchases focused on 48-foot flat wagons and on type T3000 pocket wagons to meet the rising demand with respect to megatrailers.
Transhipment terminals are a key factor for the development of intermodal transport. Hupac is responsible for the operation of a dozen terminals in Switzerland, Italy, Germany, Belgium, and the Netherlands either via own operating companies or holdings. In order to secure capacities for further growth, Hupac together with partners is pursuing the terminal projects Milano Smistamento, Piacenza and Brescia in Italy, Gateway Basel Nord in Switzerland and Brwinów/Warsaw in Poland with completion by 2023. In summer 2019, the Italian subsidiary Hupac SpA will start operating the Pordenone terminal in north-eastern Italy.
Substantial resources are also flowing into the digital transformation of the company. “By the end of 2019, we will make the ‘Hupac Train Radar’ available to all customers for tracking their shipments,” announces Beni Kunz, CEO of the Hupac Group. Based on train data from GPS and other sources, reliable arrival forecasts will be developed and dynamically made available to customers. Other results of Hupac’s digitalisation agenda are OCR gates in the terminals, reliable capacity management for loading the trains and an integrated booking-to-billing platform.
Hupac Ltd was founded in 1967 in Chiasso/Switzerland and is Europe’s leading intermodal network operator. The offer comprises 130 daily trains with connections between the major European economic areas and to Russia and the Far East. The Group employs 526 people and consists of 19 companies with locations in Switzerland, Italy, Germany, the Netherlands, Belgium, Poland, Russia and China.
