CEO Statement

CMP going against the current in 2012

During 2012 CMP increased freight volumes by just under three per cent or approximately 400,000 tonnes. This makes us one of a small number of port operators in Scandinavia to display rising volumes. The fact that CMP is going against the current in times of recession and global financial uncertainty is a sign of strength. It confirms that we have a breath in the operation that makes us persistent and competitive even when there is weak development in the market. The areas that increased most in 2012 include transit oil, new cars, cruises and RoRo. Volumes within transit oil rose by around half a million tonnes. We unloaded 457,000 cars at the same time as RoRo traffic increased by 5%.

Besides freight volumes, cruise traffic also increased in Copenhagen by 3% to 840,000 passengers. A total of 372 arrivals were handled, thereby consolidating Copenhagen’s position as the Nordic region’s leading cruise destination. This position was otherwise confirmed in that Copenhagen was also commended for its cruise operation in 2012 and once again voted ”Europe’s Leading Cruise Port” at the World Travel Awards trade event.

Continued investments

CMP is continuing to focus on its cruise operation. With its three permanent terminal buildings, the new cruise ship quay in Nordhavn in Copenhagen will be completed during 2013/2014. This substantially increases the capacity and enables us to receive a total of 500 arrivals per year from the start of the 2014 season. Cruise traffic is also now being established in Malmö. The initiative includes a new cruise terminal in Frihamnen which will be completed for the 2013 season. Cruise traffic in Malmö during this first year will comprise 40,000 passengers and 7,000 crew.

We are also continuing to grow in relation to new cars. Volumes in 2012 increased by nine per cent compared with last year and we established a service for new makes of car including Subaru and Mercedes. In addition, since 2011 CMP has freed up new areas for car terminals – approximately 85,000 square metres – which will ensure that we can continue to expand the operation – both in relation to new and existing customers. We are also receiving increasing numbers of enquiries from new customers who recognise the benefits of the capacity and high degree of specialisation that we offer. We consequently anticipate establishing further collaborations in the car handling operation as early as the first half of 2013.

We also feel that the establishments at Prøvestenen in Copenhagen are beginning to pay off. During 2012 the first tenant moved into the new UPS areas, where we are now anticipating attracting more dry bulk customers during 2013.

The emphasis on growth should be viewed in the light of the investments CMP is making during the period 2010 – 2014. A total of some SEK 2.5 billion is being invested in new freight and passenger terminals, quay installations and machinery, cranes and other technical infrastructure in both Copenhagen and Malmö. Naturally, the investments are aimed at increased freight volumes within our business areas. In the somewhat longer term, our growth is also linked to the development of Malmö Northern Harbour Business Park – the 900,000 square metre industrial area in the immediate vicinity of the port where CMP and Malmö City Council are together inviting companies to establish themselves. It is estimated that the area will be fully developed in 10 – 15 years, by which time it will be home to a large number of companies that will be able to derive benefit from CMP’s wide-ranging transport and logistics services. During 2012 we were able to observe an increase in enquiries and a gradually growing interest in new establishments.

Visions for the future also include the discussions with Port of Helsingborg that commenced in 2012 with the aim of examining the potential to set up a joint operating company. These discussions are proceeding during 2013.

Active marketing

CMP’s marketing is increasingly being directed towards China, where we perceive great potential for new collaborations. Today many Chinese companies want to establish themselves in Europe in order to reach new markets with their products. With this in mind, we want to offer attractive collaborations, where our large range of logistics services and our strategic location in Öresund
 – on the threshold of the Baltic region – constitute strong competitive advantages. Northern Harbour in Malmö, which was put into operation in 2011, has substantially increased CMP’s freight capacity. As mentioned, Malmö’s Northern Harbour Business Park enables us to offer attractive industrial sites where companies can store and refine their products in the immediate vicinity of the port. Our sales initiatives are targeted in part at companies that work with vehicles, work machines or environmental engineering and that need to establish a distribution hub in Northern Europe, i.e. a logistics hub of the same type as Toyota and the Spanish steel company Acerinox have already created via CMP. Marketing work has been underway in China for a couple of years and largely entails gradually building up relationships and mutual trust in relation to potential customers and collaborative partners. We are meeting companies, politicians and representatives from chambers of commerce and local development companies that are helping Chinese companies with new establishments abroad. During 2012 we moved our positions forward in important areas. For example, we signed a collaborative agreement making us a sister port to Shenzhen – a city in South Eastern China with the world’s fourth largest port. CMP is one of only ten companies in the world to have signed this type of agreement, which opens up opportunities for us in this expansive part of China.

Investments and internal improvements

During 2012 extensive investments were made in machinery, primarily in the container operation in Copenhagen. Ultramodern machines are increasing our productivity, but the investments are also contributing to reducing CMP’s environmental impact. The new engines consume less fuel and additionally have lower emissions, particularly as – in line with CMP’s environmental policy – we have fitted them with particle filters. During the year we also launched “Main Sail”, our new Terminal Operating System. This IT tool – which was implemented first in Malmö and subsequently in Copenhagen – will improve both productivity and reliability in the everyday goods handling operation. M/S Progress, our internal management and development programme has also enabled us to further reduce both damage rates and workshop costs. Even though we already have very few personal injuries and damage to equipment, M/S Progress means that we are now measuring and following up both health and safety and quality assurance more effectively. A concrete example of this is that costs for machine damage have decreased by 29% compared with 2011. This reduction has been achieved in close cooperation with our production unit and through better follow-up of the damage statistics. In addition, during the autumn our ISO certificates for both the quality and environmental management systems were extended to 2015.

Better infrastructure – both locally and internationally

The results of the study concerning future infrastructure that CMP has produced together with Region Skåne, Malmö City Council and the Swedish Transport Administration were presented in the autumn. The aim of the enquiry is to address how the entire traffic system in and around Malmö needs to be developed during the next 20 years. The focus is on rail traffic, and also on how the capacity can be expanded and ”bottlenecks” can be built out. As goods traffic by rail is expected to increase by four per cent per year up to 2030, these types of joint analyses are significant. They facilitate decision-making and planning and link together national objectives with the ambitions at EU level.

CMP has previously been designated an EU Core Port, which means that we are a part of the infrastructure on which the EU is placing the most focus as the major transport nodes of the future. Of 1,800 or so ports in the Union, 80 have been designated Core Ports and our facilities in Copenhagen and Malmö are included in this group. This is positive for CMP and facilitates our continued work to develop the infrastructure, influencing our logistics flows and thereby also our competitiveness in the future.

Johan Röstin
CEO, Copenhagen Malmö Port