Hupac cast an eye on Southeastern Europe including Turkey

Swiss combined transport operator Hupac ended the 2015 financial year with a slight increase in volume

Hupac cast an eye on Southeastern Europe including Turkey

After modest growth in recent years, Hupac AG sees great opportunities for combined transports through Switzerland again. The upcoming opening of the Gotthard base tunnel is a monumental event and will significantly improve the market opportunities on the Gotthard line in the long term.

The supplemental measures – Ceneri base tunnel, 4-meter corridor up to Italy, expansion of the terminal capacity in Italy – will be completed by 2020.

“With our new 2016-2020 strategy, we are setting the course for growth“, explained Hans-Jörg Bertschi, Chairman of the Board of Hupac Ltd., at the presentation of the company’s annual results to the media in Zurich. “In the coming years, we will prepare for the flat track via the Gotthard. With respect to the investment programme for the next five years, we have earmarked approximately CHF 280 million for terminals, rolling stock and IT systems.”

The objectives are to win back market share through Switzerland and to acquire new business, especially in the trailer transport and consumer goods segments. At the same time, the geographic developments are expected to be advanced. In the Russian market, Hupac will continue its growth strategy with its own rolling stock for the Russian broad gauge track. In early 2016 a branch was opened in Shanghai for the market in China. Other target markets are southeast Europe with transports to Turkey, the Iberian Peninsula and France.

The Company Shuttle business unit, established in early 2015, has achieved initial success with several new trains. For 2016 Hupac expects significant growth in this segment. The port to hinterland connections with containers is an interesting growth market where Hupac intends to position itself in the years ahead to use synergies with the core markets.

In the 2015 financial year, Hupac was able to slightly expand its market position with a 0.2 percent increase in volume to 662,000 road consignments. The volume in transalpine transports through Switzerland stagnated (down by 0.6 percent), while the volume in non-transalpine traffic increased by 5.9 percent. Hupac operates 100 daily trains between Europe’s biggest economic regions, and Russia and the Far East.

The Hupac Group’s profit for the year fell by 19.7 percent to just under CHF 6.1 million. The development of the CHF/EUR exchange rate and its serious effects on Swiss companies engaged in exports should be noted in relation to this. The Hupac Group’s income from supplies and services declined by 10.3 percent, while the costsof the services decreased by 11.8 percent. This resulted in gross profits of CHF 100 million, representing a 4.2 percent decrease from the prior year. The cash flow of the Hupac Group remained virtually unchanged at CHF 41.3 million, while capital expenditures in fixed assets rose by 47.3 percent to CHF 24.6 million.