Thessaloniki, Greece (PortSEurope) June 20, 2019 – Thessaloniki Port Authority SA (ThPA) has provided a review of the first year of the current administration and the next development steps.
Thessaloniki Port Authority was privatised on March 23, 2018, and is now operated by South Europe Gateway Thessaloniki (SEGT) Ltd, a consortium, in turn, owned by Deutsche Invest Equity Partners GmbH (47%), Terminal Link SAS (33%) and Belterra Investments Ltd (20%).
In a presentation to management, the Chairman of the Board & CEO of ThPA, Sotirios Theophanis, referred to the strategic vision of the current management team and noted the the objectives achieved in the initial period.
Chief Financial Officer, Henrik M. Jepsen, presented the financial figures for the year 2018 and said, ” The picture of the financial data of our company clearly reflects the increase in traffic at the container terminal by 6%, the conventional port by 4%, and the significant improvement in the efficiency of the operation of the company’s facilities and equipment”.
Financial data for the use of 2018
The approach of today’s management team has been based on the development of a customer-centric culture, modernization of freight equipment and administrative reorganization of the company. The strategy chosen is deemed successful as, according to the financial data of ThPA for the year 2018, there was significantly improved profitability:
- The Company’s turnover increased by 7.9%. (€58.5 million in 2018 compared to €54.2 million in 2017)
- Operating profit, EBITDA, increased by 46.4% to €27.6m. in 2018, compared to €18.85 million. of 2017, with the relevant margin being 47.2% of turnover.
- Earnings before tax recorded a significant increase of 98.2%, as they stood at €24.7m. in 2018, against €12.5m. in 2017, with a relative margin on turnover of 42%.
- Profit after tax increased by more than 136.8% to €17.15m. in 2018, compared to €7.2 million. of 2017, with the relevant margin being 29.3% of turnover.
- Revenue per operating segment amounted to €37.9 million. for the Container Terminal (STEB) at €18.9m. for the Convention Port, at €223 thousand. for the Passenger Movement and €1.49m. for the Exploitation of Areas corresponding to 2,5% of the turnover.
- ThPA SA continues to show zero lending, supported on a particularly strong cash basis, with cash and cash equivalents at 31 December 2018 exceeding €91 million.
- The proposed dividend of earnings for the year 2018 is €0.57 per share for approval by the Annual Ordinary General Meeting.
The Deputy Managing Director & Chief Commercial Officer of THPA SA, Rui Pinto, said: “Our company continues to plan and consistent implementation of the investment program, aspiring to realize the strategic goal – to make the port of Thessaloniki a top port in terms of both service and technological equipment”, noting also that the temporary traffic data of the first quarter of 2019 show that the increase in traffic volumes follows the positive trend of 2018.
Commercial activity for use in 2018
According to the data presented, the increase in traffic at the Container Terminal is due to the increase in Greek exports and the significant presence of the company in “transit” markets of Bulgaria, the Republic of Northern Macedonia and Serbia. Similarly, there is a presence in the “transit” market of the Republic of Northern Macedonia in terms of conventional cargo, while ThPA expanded into new markets, such as Kosovo.
The management team is fully satisfied with the improvement in port efficiency indicators such as ship anchorage time and crane performance (number of movements per crane per hour).
Apart from increased traffic at the Port of Thessaloniki, lately the weekly Ro-Ro line, which connects Thessaloniki with the ports of Limassol and Haifa.
The investment plan of ThPA
In the first 14 months, the current management team, in line with the strategic choice of shareholders for immediate replacement of the company’s equipment and improvement of the services provided, has completed the following investments:
- Acquisition of 12 new Straddle Carriers (OSME). Fleet of 24 machines available today.
- Acquisition of 3 Spreaders for C / C and 2 for self-propelled cranes already in operation.
- Complete a complete rebuilding program for Stations and Straddle Carriers (OSME), significantly improving the availability of the equipment.
- Expansion of the 2.5Ha stacking area.
- Expansion of capacity of E / K refrigerators, from 300 to 400 sockets.
- Asphalting of the depositing square within the STEMP.
- Installing a new lighting system on the STEEL.
- Widen the road leading to Gate 16, from 3 to 6 lanes.
- Pre-Port Parking near Port 16 to park trucks to complete their customs procedures.
According to the investment plan of ThPA, the amount of the investments in the first 33 months after the management of the company under the new investment scheme is estimated to amount to 50 million euros.
In this context, the following investments are expected to be completed by the end of 2020:
– Acquisition of 2 new double-lift, 18 series (capable of serving ships up to 9,000 TEU). It is estimated that the equipment will be delivered in early 2021.
– Acquisition of a new self-propelled crane, capable of lifting 140 tonnes and estimated delivery time by the end of 2019. It is expected to be used at the Container Terminal and the Conventional Port Station.
– Contest and assignment for new TOS software to manage the business operation of the STEM
Sotirios Theophanis described the next steps of the company’s strategy and the upcoming development challenges he faces. More specifically, he said: “As the company has found its way, it has regained the trust of its customers and the majority of its customers, is now ready for the next step: The port of Thessaloniki to become an international transport hub Southeastern Europe and the Balkans, contributing decisively to the growth of the economy of Thessaloniki and the wider region. ThPA SA, utilizing synergies that have been developed over the past few years in the neighbouring Balkan countries, will focus on working with existing freight centres or creating new ones, consolidating the leading role of the port in Southeastern Europe and enhancing the commercial and business the value of the Port, not only for their major shareholders, but also for the whole business community that participates in activities directly or indirectly connected to the port businesses”.
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