Annual Report 2009

S h o r t Pr o f i l e

The HPA
With a total workforce of 1,900 employees, the Hamburg Port Authority (HPA), a commercially oriented institution under public law, manages all duties related to the area of the port of Hamburg. Among these duties are port planning and port development, maintenance of the port infrastructure, guaranteeing the required fairway depths as well as en suring the safety of navigation. The institution is in charge of around 300 km of rail tracks, 147 bridges, 140 km of roads and 55 km of quay walls as well as tunnels, locks and lighthouses. The HPA offers its customers an all-purpose port, located 120 km far into the inland, with competitive site advantages. It is the owner of most of the port land and leases it out to enterprises of the port industry on a long-term basis. When performing the duties, the management of the HPA takes care to strike a balance between ecology and economy. The port disposes of excellent hinterland connections, whereby the modal-split share of cargo moved by rail and inland waterway carriers is growing.

Contents
Editorial Port Development & Strategy Land Infrastructure Water Infrastructure Safety A Landmark of Hamburg Real Property Human Resources Information Technology Port Railway Sustainability Supervisory Boards Report Directors Report Annual Financial Statements Legal Notice 05 06 14 16 18 22 24 26 28 30 32 36 38 48 63

Ed i t o r i a l

2009 has brought us a lot closer to the future.

A Port that is open to new Ideas

Take a look at the world and you will notice: like everything else, a port is not all about port. It is not simply defined by cargo handling rates, its position in the network of global economic flows and the lengths of its quay walls. A global port such as Hamburg is also defined by approaches taken and goals envisioned concerning the development of its future potential. Where is it best for innovative and creative investors to cast their anchor? How do we guide interested customers into the heart of the metropolitan region? Which course should we take in view of the perilous state of the world economy? After the restructuring of the HPA, the enterprise, we have passed an important section of the way that leads the port of Hamburg into the future: based on the principle port follows market, we have marketed our strengths in new ways and quite successfully so. For the first time in the ports history, we have given fantasy a larger role within the framework of a so-called market consultation process, which was launched to collect suggestions on how to use central port sites. For the first time ever we have embraced the unconventional and initiated a contest to gather ideas. We received a plethora of attractive proposals in response. And something else emerged: the port of Hamburg is in the focus of international investors and logistics companies. That, too, shows what a jewel we are actually guarding here right in the centre of our city a jewel that is well worth polishing. In many other areas, the prerequisites to ensure the sustainable and positive development of this outstanding industrial location have also been created: crucial infrastructure projects have been commenced that contribute to smooth traffic flows on land and on water. The construction of one of the largest bascule bridges in Europe has started. The refurbishment of a Hamburg monument, the Old Elbtunnel, is in full swing. And the HPAs IT infrastructure is now well equipped to considerably accelerate projects and planning processes in future. That we have succeeded in getting all this underway despite the difficult market conditions is to a very large extent due to the en thusiasm and efforts of the HPAs employees. Its down to them that the future of the port of Hamburg is a lot closer now.

Jens Meier Chairman of the Management Board

Wolfgang Hurtienne Managing Director

P o r t D e v e l o p m e n t & S t ra t e g y

New paths in port development

We are open to the international Market

The ability of enterprises to cope with future challenges predominantly depends on their innovative powers. That applies to ports, too. Where do customers head to and what do they demand of the ports infra s tructure? Which options of usage are needed tomorrow? What does the market require? In 2009, the HPA opened a new chapter in port development and launched an open contest to gather ideas and attract investors. The international response was overwhelming.

The port of Hamburg was once consi dered a closed shop, at least in part, admits the head of the Central Terminal Steinwerder project, Iris Scheel. But that will change fundamentally. For the first time in the history of the port, a piece of land in prime location has been marketed within the framework of an international contest. With this market consultation process for the Central Ter minal Steinwerder, or in short CTS, the port has opened its gates to the ima gination of terminal operators, shipping companies, logistics services providers, investors and consultancies without predefining any kind of usage. The all important question: How would potential

investors use the 125-hectare large site in the central port area? The only conditions set: the ideas had to be port-related in a broader sense and take account of the special location of the port in the heart of the metropolitan region of Hamburg as well as legal fra mework conditions. Special emphasis had to be placed on innovation, environ mental and sustainability aspects as well as the creation of jobs. Customers as well as potential opera tors and users were positively surprised by our approach, reports Iris Scheel, who received proposals from more than

three dozens of interested parties from all over the world in just a few weeks, in spite of the fact that the internatio nal preliminary study only provided the outline conditions for a possible award procedure later on. The market consul tation process is an additional tool for us to be able to gauge the interest in deve lopment projects prior to inviting tenders for the site, explains Scheel the fore most aim of the procedure. It is our op portunity to orientate port development towards what the market demands. Cash awards to the amount of EUR 100,000 were offered for the best proposals participants submitted. The

P o r t D e v e l o p m e n t & S t ra t e g y

A lighthouse for port development: with her team of five, Iris Scheel (40), head of the Central Terminal Steinwerder project since 2008, develops new ideas to market port land and realises them. At the HPA for 13 years now, the graduate engineer has broadened her knowledge once more when she completed her studies within the framework of the work and study programme Master of Business Administration. In her leisure time, too, the Hamburg-born mother of two shows stamina: she is an enthusiastic triathlon athlete. In the photo: Stefanie Basener, Peter Ruppert, Iris Scheel and Nils Kroggel (clockwise from left).

event was promoted via advertisements, an internet portal as well as presenta tions at home and abroad. The carefully developed winning concepts, evaluated by a neutral jury at the beginning of 2010, ranged from a fully automated con tainer terminal allowing for emission-free handling operations and a process-opti mised multi-purpose terminal all the way to a transparent container terminal, housed in a port tourist visitors centre made of glass. The insights we have gained from the market consultation process for the CTS will be incorporated in the port deve lopment plan, which will be reissued in

2010, says project manager Scheel. This important strategy paper that will be approved by Hamburgs Senate [state parliament] will outline the port of Hamburgs prospects over the years to 2025. With the second project the marketing of the port plot of land Mittlerer Reiher stieg the HPA set out on a new path in 2009 with the aim to actively approach the market. Within the framework of a request for tender for the all-in-all 54,723 square metre large site, interested com panies and investors will be asked to submit their individual development con cept. Besides the cost-effectiveness of

the offer, evaluation criteria such as the number of jobs created and environmen tal protection measures will play a pivotal part in the selection process. Thinking and planning in all directions thats how the HPAs project staff, Ste fanie Basener, is experiencing the new approach in port development, which creates a lot of room for responsibility and new ideas. At 31, the construction engineer is the youngest member on Iris Scheels team. Still waving her graduate diploma, she transferred straight from the technical university of Harburg to the HPA in 2009, because as she puts it the creative leeway is incredible.

P o r t D e v e l o p m e n t & S t ra t e g y

Perfectly planned
No jams in front of the gateway to the world. Traffic moves as if someone has switched the port to smooth-flow mode. Merchandise flows to and from the terminals in perfectly timed cycles. Container giants are handled as scheduled. And commuter traffic is free of hick-ups even at rush-hour times: all that is possible because of the Port of Hamburg Road Traffic Master Plan.
150 pages of assessment of the cur rent situation, planning concept, action steps: What has to be done to ensure that traffic in Germanys largest seaport keeps on flowing smoothly in the future, too? How can competing carriers, such as road, rail and waterway be synchro nised? What impacts will the planned cross-port motorway route [Hafenquer spange] have on traffic flows? Port development as the HPA sees it is a permanent future-oriented process; a strategic necessity in view of continu ously changing outline conditions and reliable problem solving that can be planned in advance. We have to take into account at an early stage all factors that may influence the development of our port, says Jens Kristian Elvers, head of the port development division at the HPA. Not only does Elvers look at regional trends, but also at global trends and tendencies that may find their way to the quay walls of the port of Hamburg. For the first time ever, the HPA sought the assistance of an international con sultancy, McKinsey & Company, to identify the challenges posed by the global development of goods flows, economic trends and changes in indus trial structures or logistical chains and how the port of Hamburg can best cope with them, and incorporate the findings in the upcoming port development plan (HEP) that covers the years until 2025. For Elvers, opening the port plays an important role: The terms have chang ed. The HPA is taking a more targeted approach to port development and is actively searching for new markets and customers. dimen sioned alternative areas that are to serve as overflow valves for truck traffic approaching the port and help prevent tailbacks. In the event of traffic congestions or disruptions, truck driv ers can use these areas to wait until they are given the green signal by the port road management centre to drive to the terminal they are heading for. From 2010 onwards, so Wester mann, our innovative traffic manage ment system will enable us to influence the traffic situation in the port of Ham burg positively and sustainably even if traffic volumes increase substantially. Parking space management and ap proaching traffic control are the HPAs next projects in the pipeline.

Traffic on the ports roads flows according to plan

The Port of Hamburg Road Traffic Master Plan, which was completed in 2009, is the HPAs exemplary response to the transport and traffic challenges of the future. The strategic network and ITsupported traffic management system outlined in the plan combine to form an innovative control system that can be adapted flexibly to actual road con ditions, depending on traffic loads or in the event of disruptions. We used traffic simulations to deter mine the road network requirements within the port area and based on our findings, we developed the respective measures, in particular in terms of traf fic management, explains Sascha We stermann, who is in charge of the road way network within the HPA strategy/ port development division, the concept. Dynamic, fully digital variable message signs, traffic-load dependent control of the light signal systems and colour-guid ed routing supply answers to growing traffic volumes coordinated by a port road management centre that controls and guides traffic flows within the port. A tangible vision of the master plan are pregate car parks generously

P o r t D e v e l o p m e n t & S t ra t e g y

Major thoroughfares in the port of Hamburg: due to the HPAs innovative traffic management system, the traffic situation can be influenced pos itively and sustainably even if traffic volumes increase substantially.

Their strategies worked out down to the last detail ensure that landside and waterside traffic in the port of Hamburg flows smoothly: Stefanie Kullmann, Jens Kristian Elvers (centre) and Sascha Westermann from the HPAs port development division.

P o r t D e v e l o p m e n t & S t ra t e g y

He likes getting down to business and realising his projects: Martin Tenkleve (53), head of the development project engineering office. The graduate engineer from Lbbecke, North Rhine Westphalia, made Hamburg his city of choice in 1987 and joined the HPA in 1989. The piano player and runner enjoys spending his spare time with his wife and their two daughters. Shown here with Dr. Olaf Bergen, head of the development project engineering office (l.), at the Kleine Kattwyk site.

The ports structure follows the requirements: within the framework of the west expansion project (marked area), the old Petroleumhafen will disappear. The existing turning circle for giant ships will increase from a diameter of 480m to a diameter of 600m on the water area towards the Waltershof port (top left).

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A sound Foundation
They shape 2,200 tonnes of steel into storm-surge safe locks; they drive piles for quay installations more than 30m deep into the riverbed; they redesign container terminals and port rail yards; they are realising the largest railway bridge in Europe: what has been thought out strategically in conjunction with other divisions, Martin Tenkleve, head of the development project office, and his 140 staff will transform into concrete actions throughout the port of Hamburg.
Without the internal general contrac tor of the HPA not a single stone is moved in the port of Hamburg. If all strategic tasks have been ticked off, our colleagues will ask us to prepare a feasibility study. It comprises the techni cal aspects, the time frame and budget limits and not least planning staff re sources, describes Tenkleve the pro cedure prior to the start of construction works. Our project-related working groups accompany every order from the groundbreaking ceremony to the handover of the turnkey project. Of special significance is the know-how of internal and external engineers. In view of the current challenges, the HPA rec ruited twenty qualified experts last year alone. In the area of the Waltershof rail yard, milestones with an eye to the future were set. On the one hand, in accor dance with the laws relating to water, the official planning approval process for the 38-hectare large terminal site in the area of the Petroleumhafen was initi ated within the framework of the west expan sion project. On the other hand, just a few hundred metres to the west, the first construction phase to redesign the Burchardkai was ushered in. Since July 2009, construction of the first section of the new quay wall to accommodate giant container ships of the 4th and 5th generation on the waterside, in front of the existing embankment is underway. To realise the project, the HPA not only has to drive concrete piles more than 30m deep into the ground, but dig deep into its pockets, too, because quay walls are among the most expensive, time-consuming and thus cost-intensive port structures to be built. To construct just one metre of these technically high ly complicated structures costs EUR 50,000 to EUR 60,000, and a largevessel berth can easily cost more than EUR 20 million. These and other pro jects are enormously important to help ensure that we stay competitive, says Tenkleve. After all, its not a sandbox we are building here, but one of the lar gest ports in Europe.

More creative leeway

Due to the new structures within the HPA, processes have become shorter, among others in staff planning, and de cisions go through faster. As we are now directly responsible for construc tion projects, we have much more room to manoeuvre, beams Tenkleve. The project office made good use of the new leeway in planning in 2009: among others, planning for the Waltershof rail yard, the Ernst-August harbour lock and the mega-project Rethe-Klappbr cke, a bascule bridge, was completed. The operative port developers started construction in earnest at the Hohe Schaar rail yard and restructuring work at the Tollerort container terminal.

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Rethebrcke: The next Generation

How many ships, trains, cars and bicycles have passed the Rethebrcke, a bascule bridge, in the 70 years of its existence? Getting on in years, the old lady does not mind passing on her traffic-carrying duties to a successor. Right next to it, preparations are already underway to construct a new bridge and over the coming years, one of the worlds largest bascule bridges of this type will slowly take shape.

The new road and rail connection across the river Rethe is one of our most important infrastructure projects in the new decade, emphasises pro ject manager Jrg Kapusta. The trans port artery is of paramount importance: it connects the port districts of Alten werder/Moorburg and Harburg to the Mittlerer Freihafen [central free port] by road. It carries the rail track linking the two major rail yards, Hamburg-Sd and Hohe Schaar. And finally it crosses the waterway between Khlbrand and Reiherstieg that seagoing vessels take to get to the terminals and smaller ship yards.

Bridging more than water

The HPAs plan to redesign the bridge and its access area as well as to widen the fairway provides a solution that will cater for future trade needs. Given the constant increase in cargo handling rates and thus growing transport vol umes, upgrading the vital north-south link was critical. It will strengthen all transport carriers and provide planning security for the enterprises located on the Rethe and at Reiherstieg, so Jrg Kapusta.

By separating the traffic flows, the HPA will improve transport infrastructure efficiency as needed to accommodate future volumes. The new structure will have two separate movable bridge spans, each with two bridge leaves fea turing a two-lane road and an electrified railroad track.

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Familiar with huge dimensions: Rethebrcke project manager, Jrg Kapusta (37), with his colleague, construction technician Parisa Mostofi, witnessed the structural test on the Old Elbtunnel and the Khlbrandbrcke as a trainee in 1998. After he completed his course of studies in construction engineering and a subsequent civil servant training with the river and port engineering department, the Hamburg-born citizen has been active in facility management, bridge construction since 2002. The reconstruction of the Finkenwerder traffic node was the first large-scale project in his capacity as project manager. Since February 2009, he has been in charge of the project new construction of the Rethebrcke. With a span range of about 104m it is the largest railway bascule bridge and the second-longest roadway bascule bridge in Europe. Building of another roadway bridge on land to separate rail from vehicular traffic is in the planning. As a first step, the Blumensand road located on the southern banks is cur rently being rebuilt. Once completed, three rail crossings will disappear along with waiting times, and road traffic will flow smoothly there in future. Waterway traffic will also benefit from the new bridge. Right now, when lar ge bulk cargo carriers want to pass the bridge area, manoeuvring has to be accurate to within a millimetre. Mo reover, the height of ships passing un derneath the bridge is limited to MSL +53m because of the lifting technolo gy, explains Jrg Kapusta. However, due to the alignment of the new bridge abutments, the now 44m wide fairway will be wider by twenty metres.

Planning has been completed

During the construction period, the exi sting lift bridge will remain fully opera tional for shipping, road and rail traffic. To ensure that the bridge is safe for use, it was thoroughly inspected and upgraded last year. Simultaneously, planning for the new bridge was com pleted in 2009 and the request for ten der was advertised, a project and cost structure was set up and almost all pre paratory measures were put in place. The construction is expected to cost around EUR 80 million.

Hamburgs second-largest lift bridge is still in service: however, in the planning documents of project manager Jrg Kapusta, the future has four leaves.

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La n d I n f ras t r u c t u r e

In 2009, the costs to maintain the Khlbrandbrcke amounted to about EUR 3.4 million. The total roadway network operating and maintaining expenses amounted to a total of EUR 19 million.

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La n d I n f ras t r u c t u r e

The Khlbrandbrcke project is the largest of many that Christine Muruszach (46) and her 42 staff worked on in 2009. As the head of the roadway unit, the construction engineer is in charge of 130 kilometres of roads and 80 nonmovable bridges in the port of Hamburg, among others.

The Khlbrandbrcke will be completely overhauled

Newly wrapped
With its graceful and elegant shape, the Khlbrandbrcke has become a landmark of Hamburg. Equally elegant are the solutions the HPA has come up with to refurbish the bridge and to ensure smooth traffic flows across the bridge throughout the refurbishment period.
After all, the aesthetic structure is one of the most important traffic arteries of the city. Daily, approximately 35,000 cars cross the architectural piece of art that connects the eastern and western port districts. That is roughly one third of the traffic volumes its big sister in San Francisco carries. with anti-corrosion protection, however, would have prolonged the refur bishment time and traffic would have been a lot more disrupted, including lon ger periods of complete closure. We searched for other options to keep in conveniences to traffic to a minimum, so Christine Muruszach. The most economical and technically lasting protection against environmental impacts turned out to be butyl rubber ta pes wrapped around the cables. Prior to deploying this method, which is applied in Germany for the second time only, the 70m to 164m long cables will be inspected visually as well as using the magnetic induction method. A camera will be placed on and run along the ca bles to measure the coating thickness. The method allows bridge experts to make visible even tiny fissures, which cannot be detected by the naked eye. Afterwards the cables will be cleaned manually. A device will then be used to wrap two layers of cold-welding butyl rubber tapes around the cables. The tapes form a tube-like, extremely resis tant corrosion protection layer. high above the heads of the car drivers. However, the HPA has found a solu tion here, too specially constructed movable scaffolding which impacts traffic flows as little as possible. Each of the right lanes in the area of the mobile construction site will have to be closed on a length of 150m. At night the lanes will be reopened to traffic so that over weight and oversize-load transports can pass.

Economically and technically permanent

Apart from the restoration of the con crete covers at the Westrampe, work to protect the up to 11-centimetre thick steel cables against corrosion com menced in 2009. We were looking for economical solutions that could be re alised without disrupting traffic flows, describes Christine Muruszach, head of the roadway network unit, the chal lenge. The 88 steel cables suspended between two 135m high pylons that hold up the road deck make it neces sary for the work to be carried out di rectly above the road. When the bridge was originally constructed, a specially developed de vice was used to inspect the cables. The device took account of the spatial geometry of the cable harps and ran di rectly along the cable to be inspected. The very long mounting times and the traditional procedure to coat the cables

Well sought-out solution

The current work on the outer side of the bridge cannot be carried out as un noticed as the tightrope walking acts

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W a t e r I n f ras t r u c t u r e

Together with his 64 staff, he has set new standards for the port: the head of the surveying services division, Roland Hoffmann (52). The Hamburg-born citizen studied surveying, followed by civil servant training. He joined the HPA in 1984 and has held executive positions on land and on water.

They have shallow draughts which allow the state-of-the-art Deepenschriewers to navigate all port waters. Bow thrusters and trolling modes make exact manoeuvring possible. (Clockwise from left) Shipmaster Pierre Bender, the head of the surveying services, Roland Hoffmann and surveying team leader Peter Rummel.

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W a t e r I n f ras t r u c t u r e

A highly precise database: the worldwide unique electronic navigational chart system forms the basis for a safe navigation in the port and enables VTS operators to handle increasing traffic and requirements well into the future.

The electronic navigational chart system is setting new standards

World Port on a Scale 1:1000

Be it on water or on land, the experts of the surveying service were on the move daily, and in October 2009, PortECDIS a worldwide unique electronic navigational chart system was finally completed. By implementing it, the HPA has sounded out a good part of the future.
On the basis of existing nautical chart material, a working group under the direc tion of the HPAs surveying division has produced an extremely precise database for the harbour shipping industry. Created within the framework of the EU project EFFORTS (Effective Operations in Ports), this new Electronic Navigational Chart (ENC) will be the basis of an Electronic Chart Display and Information System (ECDIS). Our port has to handle ever more and ever larger ships in ever shorter time frames, explains Roland Hoffmann, head of the surveying services division. The electronic chart contains a lot more information and the geometrical resolution is considerably higher, so the chart will make navigation in the port a lot safer and we will be able to handle increasing traffic and requirements well into the future. As the system displays port-typical ob jects and the database provides continu ous position information, precise down to 10 centimetres, it is easier to safely na vigate vessels to terminal quay walls, for example. On top PortECDIS, if integrated in a ship simulator for instance, can be very useful to train and further train pilots, bridge crews and tugboat captains. For the first time, it is now possible to display three-dimensional images of the underwa ter morphology.

Gaining deep insights

Thats what the surveying experts are do ing when they Deepen op schriewen. To document the position, water level and depth, the four survey boats of the HPA are constantly on course. The collection of wet data, which 30 years ago involv ed painstaking manual work, is stored in a high-performance PC equipped with special hydrographic software using stateof-the-art, in part satellite-controlled tech nology. On land, seven surveying teams are on tour, two of them largely on behalf of the port railway. We also document beacons, radar towers and every single bollard, so Hoffmann. Very soon, the system will be applied in practice for the first time: the vessel traffic service centre will integrate the new elec tronic charts in the VTS (Vessel Traffic Ser vice) system. In the long term, PortECDIS will be used to support the manoeuvres of all ships that call the port. We are al ready able to do that, so Hoffmann, but so far ships do not have the necessary tech nology on board that meets international standards. But the Hamburg staff can be very relaxed about that they are well equipped to manoeuvre the future.

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Safety

Prepared to face stormy times

Strengthening the Defence Mechanisms

Risk prevention is another continuously growing segment of the HPAs duty portfolio. Not only does it include raised dykes but, above all, the many additional options available to handle possible extreme scenarios and the tried experience the HPA experts can fall back on. One milestone in 2009 was the modernisation of the storm surge simulation system.
Umpteen times Boris Freund, head of the risk prevention unit and his col leagues, Uwe Wix, Joachim Grage and Hendryk Scheller, have used a virtual environment, based on a digital 3D elevation model that represents the ground surface topography of the enti re port of Hamburg, to simulate various storm surge scenarios. The up-graded flood simulation system allows the HPA experts to pre-simulate or post-simu late a storm surge that is very close to the real thing.

Point-exact measures
Such, in the event of an emergency, the system is an important planning and in formation instrument for the port task force (HASTA) that provides operatio nal and administrative services within the HPA. Apart from using it, for in stance, to plan evacuations in advance, the tool enables the port task force to cope with acute or major disasters bet ter and respond promptly and as nec essary, because the system pro vides geo-referenced data that help define specified points in the port and filter the relevant information: Which com panies are located in the port area that is affected? Are any hazardous goods stored there? Where do residents have to be warned or evacuated? The sys tem can produce lists containing the relevant contact information or topical maps, which supplement existing plan ning well.

A holistic response
The introduction of the system is an other paramount step towards the de velopment of a common data basis that interlinks all partners in the event of a storm surge or other types of disaster, summarises Boris Freund. Apart from using it within the institution, the future HPA-specific location and information system will communicate with other disaster response teams of the city as required and thus enable optimum cooperation. Based on the current state of planning, the head of risk prevention is sure: Anything that can be anticipa ted will be anticipated as best as pos sible. However if something unpredict able happens, we will still have to resort to existing resources and know-how.

Thinking ahead as far as possible: Boris Freund, head of the risk prevention unit (49) shown in front of the digital 3D elevation model of the port of Hamburg joined the HPA in 1984 and since 2000, he has been active in this never boring environment. The Hamburg-born citizen keeps fit cycling and he likes roaming around with his camera or, if the breeze is fresh, flying his kites high up into the air.

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In order to be able to respond as re quired, the assistance of colleagues employed in a secondary occupation at the HPAs various disaster response or ganisations is indispensable. Apart from serving on the HASTA and its subordi nate task force teams, sufficient staff must also be available at any time and to a relatively large extent, to assist the Hamburg flood warning service WADI and Hamburgs port task force as well as to assist in defending the dykes. Among their tasks are the recruiting, briefing, instructing and directing of staff as well as holding exercises.

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Vessel and port simulation form the basis of successful port planning

Future Manoeuvring in virtual Waves

A calculating person is not well liked, except at Hamburgs Schnackenburgallee 149, where, since 2009, one of the largest and most modern ship simulators in the world is at home. The new Marine Training Centre (MTC) is one of Uwe Claassens work-places. The head of the vessel traffic service centre of the harbour masters office and his team equip the port of Hamburg to master tomorrows vessel traffic requirements. They even steer mega-liners on course, ships of a size only the display has handled so far all by simulation.
Today, vessel and port simulation has become indispensable to guarantee the navigational safety of ships and smooth as well as environmentally friendly ves sel traffic in a global port such as Ham burg, describes Claassen his main duty, which he carries out together with the roughly 50 staff of the harbour masters office and in close cooperation with the harbour pilots and all parties involved in guaranteeing smooth ship ping traffic. However, implementing the international, national and local regulations is becoming an ever more chal lenging task for the organisational unit of the HPA and it can be measured in length x width x draught. When the container first came up, container ships accommodated 3,000 TEU, remembers Claassen his time as a ship captain at sea. Nowadays a ship of that size is a feeder ship. To day, the organisational unit of the HPA deals with vessels of more than 330m in length and 45m in width. On top, continuously rising maritime traffic has to be controlled optimally and within narrow time frames on a fairway that is influenced by the tide, which is a partic ularly challenging processing and ma noeuvring task for all parties involved, including the harbour masters office. to train ship crews and harbour pilots in handling the new generation of larger vessels, which arent even afloat yet. From 2010 onwards, mega-container ships with a capacity of 13,500 TEU and a length of up to 400m will be able to call the port. Over 150 of these con tainer giants have already been orde red with the shipyards in South Korea, more than half of it by German shipping companies. studies, the HPA experts, who all hold maritime certificates of competency, are excellently prepared to meet any requirement. The harbour masters of fice and the harbour pilots have proven that during an impressive performance in mid February 2009 when they ma noeuvred the 370m long container gi ant Marit Maersk the longest ship ever to have called Hamburg safely into the port. The whole operation had been simulated successfully in advan ce in the MTC.

Interlinking all parameters intelligently

Apart from a torrent of technical data, the harbour pilots practical ex periences are also considered in the computational hydrodynamic models with computational ships. The result ing comprehensive simulation studies summarise and lay down the test re sults. They are binding on all ships that call the port of Hamburg, whereby the existing port infrastructure as well as the respective tidal and weather con ditions are taken account of. Some largeships have a surface area expos ed to wind of 10,000 square metres and in unfavourable wind conditions, they may be pushed against the quay wall, describes Claassen a scenario that hasnt happened yet, thanks to care ful precautions. In the worst case, such an accident has far-reaching con sequences for the entire processes in the port and the reputation of the port of Hamburg in the world.

The Marine Training Centre

The new MTC Hamburg is an inter nationally acknowledged institute for maritime education and further edu cation and one of the worlds most modern vessel simulation centres that can be booked for port planning. At a capacity of 14,300 man hours and with 60 different courses of stu dy to choose from, it is also one of the largest maritime training facilities of its kind. The heart of the MTC is a ship na vigation simulator with a diameter of 14m. The simulator, which con tains 40 different types of ships and nine sea areas, consists of a fully equipped bridge with 360-degree visual system as well as three small (bridges) with 120-degree LCD dis plays. Twelve beamers project the simulated port processes onto white walls from the centre of the room.

Simulating the future

True to the motto no problem, weve already anticipated that, simulation is a crucial basis to continue to guarantee the navigational safety despite increas ing vessel movements. The ship navi gation simulator can be used to create real-life conditions and situations ar tificially and represent technical pro cesses realistically. It is also possible

Excellently prepared
The simulation has a major impact on the design of the port and in particu lar on the development of fairways, turning circles and quay installations. On the basis of scientifically founded

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Their vessel and port simulations are crucial to continue to guarantee the navigational safety despite increasing vessel movements: (clockwise from right) harbour captain Jrg Pollmann, head of the vessel traffic service centre, Uwe Claassen, and harbour pilot Wolfgang Hberle.

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A La n dmar k o f Hamb u r g

Throughout the refurbishment period, the roughly 1,000 passenger cars that pass through the tunnel daily will be routed on a one-way system that will be adapted to office-hour traffic. They know the way: as the first lady tunnel supervisors, Jaqueline Neumann (l.) and Birgit Feldt have conquered a male domain.

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A La n dmar k o f Hamb u r g

After complete refurbishment of the shaft buildings of the Old Elbtunnel (1998 through 2010), preparation went ahead last year to fully overhaul the tunnel tubes, a project that is expected to last several years. The historical elements will be restored back to their original appearance, using new materials and modern safety elements will be integrated inconspicuously. Andreas Pupke (l.) and tunnel operations manager, Jrg Philipps of the movable infrastructure facility management division and their 49 colleagues make sure that safety is given priority at all times even if that means working in shifts around the clock. The Old Elbtunnel will celebrate its 100th birthday in 2010.

A little treasure in every port? Hamburg has got at least three of them. The Old Elbtunnel, the St. Pauli-Landungsbrcken [shipping piers] and the former HamburgSd dispatch office bring a piece of history back to life and give the port of Hamburg its unique appea rance. Such witnesses of time are especially dear to the HPA.

Quality Seal: Especially Valuable

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R e a l Pr o p e r t y

The HPA heads toward the future as an investor

Port Property Ideas to build on

Based on the changed structures, the HPA has been able to widen its planning horizon in real pro perty management. In charge of the estate on land and on water are Eva Stein and Kerstin Bork. The executive staff duo combines commercial expertise with technical know-how to great effect. In retrospect, how would you assess 2009?
Eva Stein and Kerstin Bork: For our divisions, it was a very dynamic and suc cessful period. By taking the step from offering real-property related services to becoming an investor, we opened up new opportunities on the customer and real property side. And we actively approach new markets and customers. framework of our future project planning, we have set in motion a detailed study on the functionality of our buildings. The foremost aim is to maintain and improve existing structures, if possible accompa nied by value addition. We always keep in mind energy efficiency, which we want to increase, for example by implementing modern insulation techniques, optimising operational technology and using renew able energies. and the Dockville festival. We made available buildings for film shooting as well as fire brigade and mobile police task force exercises. We offer our customers a wide range of services around real property.

Can you give an example?

Eva Stein: When we marketed the 54,000 square metre large site at Rei herstieg, we launched, for the first time, an international request for tenders. And as to our Internationale Gartenschau 2013 project [a flower and garden show project] we looked beyond our ports boundaries. When we designed a greenpath link from Wilhelmsburg to the event area at Reiherstiegknie, the HPA took on the role as a contractor based on the Bestellerprinzip [principle according to which a politically responsible committee (competent authority) orders the services of a company] for the first time. Such, for instance, the building complex at Peutestrae 16-32 has passed from foreign ownership into the ownership of the HPA. The site will be redesigned and a concept of use is being developed based on the new design. Another pro ject, the new construction of a building featuring office and common rooms, is being realised at Niedernfelder Ufer. The rental income will cover the costs of our investments.

Which construction sites have you been working at?

Kerstin Bork: Among others, our to-do list contained the refurbishment of the embankments on the Zollkanal, the re conversion of the building complexes at Peutestrae 38-40 as well as the design of the new leading lights and radar towers within the framework of the west expan sion project. This also includes providing architectural services to third parties. Im portant progress has been made in refur bishing the Old Elbtunnel and redesigning the St. Pauli-Landungsbrcken.

Eva Stein (43) is the head of the commercial real property management, and she has been with the HPA since 2006. The trained legal professional, is in charge of marketing, leasing out and purchasing real property as well as customer management. She highly appreciates the enormous knowledge and high motivation of her team.

These are profitable prospects, indeed...

Eva Stein: ...and thats what we want to push. If we succeed in attracting more customers by marketing real property for industrial and port-related commer cial use as well as for office use, to the gastronomy and retail industry, we are getting a lot closer to our goal the port finances the port. To achieve that, new concepts of use and fee concepts have been developed that put more empha sis on the value-creation potential of the HPAs real property. We will continue to communicate this competency to the pu blic on a well organised platform and in tensify our public relations efforts. Bearing the above in mind our division, at great expense, maintained a high profile in the public eye last year. For instance, we supported several highlights such as the harbour birthday, the christening of ships

How did you prepare yourself for these new tasks?

Kerstin Bork: Our organisation already disposed of the respective competen cy. So we have established an asset management that comprises land areas, buildings, quay walls, floating facilities and vessel berths, as well as concentrat ed and centralised competency areas. Against this background and within the

As head of the technical real property management, Kerstin Bork (48) manages new construction, maintenance and refurbishment projects for existing properties. The qualified civil engineer with special emphasis on architecture joined the HPA in 1986. Due to the HPAs very varied real estate portfolio, she considers her work and different duties directly at the property site a highly diversified job.

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R e a l Pr o p e r t y

The St. Pauli-Landungsbrcken doubtless is one of the most well known landmarks of the Free and Hanseatic City of Hamburg. When the HPA was established, the institution took over the administration of the floating pontoons and the historical buildings. Immediately following the

takeover, comprehensive damage on the outer facade was discovered and it quickly became clear that the entire facade would have to be completely overhauled. Work on the water level tower could be completed in 2009. In addition, the HPAs port property man agement division started to develop

and implement a new concept of use for the landside buildings. Currently, renovation and conversion, facadism and new construction projects are underway.

A new shine for the string of pearls right on the ports edge: HPA architect, Britta Mhlmann (l.) has tackled planning of the staircase in the area of the radar tower and the restoration of the facade up to the St. Pauli-Landungsbrcken terminal building, among others. Kim Koitka (r.) is working on a new concept to market the port property held by the HPA to win new and attractive lessees.

Planning for the former Hamburg-Sd dispatch office at Veddeler Damm 14 a/b started in 2009. The roughly 100-year-old clinker brick building is on the Hamburg list of protected monuments. We will preserve the architectonical character in the inside of the building, too, and upgrade it with energy efficiency in mind so that it can be used flexibly, says Hubert Kroll, head of the buildings unit.

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H u ma n R e s o u rc e s

From unskilled or temporary workers to executive positions: Svenja Hennlein (30) started her job at the HPA in October 2009 and she is primarily occupied with recruiting staff. We accompany in close cooperation with the respective specialist divisions the entire process from the job advertisement all the way to recruitment. In touch with her colleagues: Sandra Orth (44) has been with the HPA for 22 years and in the autumn of 2009, she became the head of the human resources division that comprises 90 employees. When she is not working, she dedicates her time to her family and diving. On land, she and her husband explore the country on his motorcycle.

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H u ma n R e s o u rc e s

Developing Expertise on an Eye-to-Eye Level

Creating competencies, transporting knowledge, securing the future: these were the key words the human resources division based on to develop concrete solution approaches with regard to staff and organisational development in 2009. At the very top of the to-do list: creating more effective structures and expanding leadership competencies. The head of the division, Sandra Orth, would very much like to tap into talent within the institution.
Last year, the HPA recruited around 170 new staff and was thus able to secure the staff resources needed in the tech nical/engineering and commercial ar eas. In addition, the organisation can fall back on 600 highly qualified, com mercial and industrial staff during peak periods and in emergencies. That is a good basis to work on, but Sandra Orth aims for higher goals, beyond classical staff management and administration. She is hunting for management and lea dership talent to anchor the HPA as a com petence carrier even deeper in the port. Together with the colleagues of all divisions we want to promote expert competence on an eye-to-eye level. A management strategy will be developed to help locate existing potential within the institution, explains Sandra Orth. Apart from that, we will keep an eye on the job market. On our wish list are, for instance, project engineers who are able to think beyond their specia list discipline and dispose of control ling abilities. Within the framework of this re cruitment process, the human resourc es division envisions, in particu lar, closer cooperation with recognised large staff recruitment agencies.

Transporting knowledge
Sandra Orth and her team want to free more potential by redesigning internal procedures. Here, too, employees of all divisions are planned to be involved a lot more than before, among others when it comes to introducing uniform job inter view standards. To improve the flow of information as well as the flow of busi ness and knowledge transfer, a uniform software system with workflow support is planned to be established in the near future with the assistance of the inter nal IT division. Among the primary goals pursued are the digitalisation of three to four sample business processes from human resources and an electronic job application management system. The HPA transfers a lot of knowledge by providing training and further training. Already, the internal further training cat alogue offers a broad range of options, ranging from the introduction into collec tive bargaining law to handling a chain saw. Commercial training is offered in nine occupational areas, ranging from surveying technician and harbour ship per to industrial mechanic. In 2009, the HPA provided training for 90 appren tices, among others at the HPAs own apprentice workshops in Harburg and Finkenwerder. Traineeships and other

educational options within the frame work of courses of studies that combine theory and practice are highly coveted. These options will be further expanded as will the subject areas of information technology and process support.

The HPA an attractive employer

The manifold educational and career opportunities are certainly components that make us attractive as an employ er, says Sandra Orth. But the HPA also scores points with job applicants becau se it offers flexible working hours, paid overtime and a family-friendly policy. On top, the port is a workplace with a high identification factor that provides an ex citing environment, especially for young engineers, knows Sandra Orth. In fu ture, we will place a lot more emphasis on these values and our strengths as an employer and promote a strong emplo yer brand by presenting positive messa ges and images about the organisation to the outside world.

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I n f o rma t i o n T e c h n o l o g y

The new intelligent IT infrastructure of the HPA and the road towards the virtual world

Free-flowing Information
To ensure that information in the port of Hamburg flows smoothly, the HPA is investing in the expansion of its IT infrastructure. The IT networks are being upgraded, applications are being integrated. A new computer centre will become the anchoring point in a sea of data. The result: projects can be realised a lot faster, processes can be accelerated, status information is available at the push of a button or at the touch of a finger.
Showdown at the conference room: within a few seconds, the front side of the room transforms into a multimedia wall. On a mega-sized touchscreen, surveying engineer Kai Wessel is nav igating the marvelling conference at tendants through the topography of the port of Hamburg. From a birds eye view, he zooms in a particular piece of port land with just a few finger taps. It takes only seconds for the size of the plot and the lessees to appear on the screen. Which buildings are located on the site? How about water depths there? And what is the diameter of the beech tree crown on the left in the pic ture? All spatial data on the port can be called up on the smart board in seconds: cur rent depths of the river Elbe, contracts and site dimensions. The geo-refe renced data make spaces and plans in the port of Hamburg transparent. The huge cinema of the geoPORTal forms part of the new virtual world of the port. It has a user-friendly surface that displays information within sec onds. Index cards and Excel sheets are a thing of the past. Instead, the planners of todays projects, such as the construction of the Rethebrcke, a bascule bridge, make use of the fast new IT infrastructure that interlinks all project participants across divisions. In 2009, the HPAs IT head, Jrgen Trieb ner, and IT strategist, Ulrich Baldauf, and their team, in close consultation with CIO, Dr. Sebastian Saxe, created the framework for an accelerated flow of information in the port of Hamburg a framework that is continuously ex panded and optimised. The new computer centre forms the basis of virtualisation architecture, ex plains Jrgen Triebner. What once need ed an array of servers in the system is today handled by intelligent software and modern hardware components: bringing together the IT resources at a central point and sharing them. Vir tualisation enormously increases the performance efficiency of computers. Their operating systems run more sta ble, they are faulttolerant and the archi tecture is scaleable to meet dynamic performance requirements. On top, they significantly save costs as the sy stems share the hardware infrastruc ture, explains Triebner. This solution needs less hardware and substantially reduces primary energy consumption (hardware, climate, electricity), which is in full conformity with the HPAs green IT strategy. In 2009, the HPA invested around EUR 1.9 million in the central piece of the system the new computer centre.

For 29 years with the HPA and as enthusiastic about the port of Hamburg as on his first day: Nothing can be compared to it, describes the 53-yearold construction engineer, Jrgen Triebner, his broad scope of duties. With 54 staff and two trainees, he has created the prerequisites to equip the port of Hamburg with the best information processing system available. The new computer centre and the modern, homogenous network are key mile stones in the implementation of new IT strategies and structures in the HPA.

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I n f o rma t i o n T e c h n o l o g y

It was the introduction of the port railways modernisation programme EVITA that triggered the investment. Outdated hardware must be replaced, modern software architectures have to be implemented, says Ulrich Baldauf. The exchange of the old system will take place live, as a kind of open-heart surgery a situation where absolutely nothing must go wrong, so Baldauf, because the rail transport sys tem is a vital element of both the HPA and the port industry.

The integration and modernisation of the HPA networks as well as the stan dardisation of around 1,200 Office workplaces will be another milestone on the HPAs way into a sustainable future. A huge step has been taken, beams IT head Jrgen Triebner. How well the system works will reveal itself when the first phase of the road traffic master plan is implemented: the plan is based on an innovative traffic management IT-supported, of course.

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P o r t R a i l wa y

Currently, more than 200 trains carrying containers and bulk goods are using the rail network of the port railway. In a few years, this figure will have grown to about 400. In order to cope with increased volumes, the train experts of the HPA have put in place measures that generate maximum efficiency, which makes them pioneers in many aspects.
A static system was no option in view of such a dynamic development, says Matthias Krger, head of the port rail way marketing unit. We looked for flex ible solutions early on that would meet the demands this dynamic development brings with it. Based on the principle success lies in movement the aim is, above all, to activate the highest poten tial possible with the infrastructure al ready in place and optimally accelerate rail operations. the network. Frank Schnwald, head of the rail network access unit, has precise figures on hand: At the beginning of 2008, only 5 per cent of all rail wagons occupied more than 40 per cent of the tracks, measured in time. If you look at the annual volume of around 1.6 million wagons, these relatively few rail cars blocked large parts of the infrastructure. Within just one year, the introduc tion of the incentive system reduced the number of long-term parkers to 1.3 per cent of all wagons and the track occu pation time to 7 per cent. Not only can the positive impacts of the service-related fees the introduction of which has assigned the Hamburg port railway a pioneering role be felt at the port railways own yards and on its tracks, but far beyond the ports bound aries, too. After an intense exchange of information with the Dutch colleagues, the anti-slow-train system has been introduced, slightly modified, in the port of Rotterdam, where it has made train processing more efficient.

Cutting processing times by half

Besides the new incentive-oriented charging system that is being continu ously further developed, leaner organisa tional structures and improved customs procedures for goods moved by rail are expected to enhance structural and volume effects. In addition, the HPA in vested in the expansion and modernisa tion of rail yards and the track network. The impact of these investments can be felt all the way into the hinterland. In 2008 and 2009, 56 km of the over 300km long port railway network and more than 130 switches were upgraded. There is still a lot of potential in opti mising the interfaces between terminal, port railway and external rail track net work, says Frank Schnwald. Every one involved in rail-related processes train-operating companies, operators, loading points, terminals and the port rail way will benefit if and when processes are optimised and synchronised further. The target aim is to cut to half proces sing times which currently amount to 30 hours, calculated from the time the train enters the port, is loaded / unloaded and departs again.

Incentives for more cost-effec tiveness

The HPA set the course to realise this goal at the beginning of 2008 already when it introduced a new innovative, incentive-oriented charging system. Last year, some key adjusting screws were reset, and now all train-operating companies that use the track network of the HPA are offered equal, optimum operational conditions. However, the new system also requires anyone who occupies the tracks longer than is con sidered reasonable to pay extra. The incentive to optimise track utilisa tion is the port railways response to long-term parkers that put too much strain on the availability and efficiency of

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P o r t R a i l wa y

A clear Track ahead

Large-scale project EVITA

Flexible information technology solu tions are also in the pipeline. Today, we at the network allocation centre control the synchronisation of rail processes for more than 75 train-operating compa nies, says Matthias Krger. Though the rather inflexible port railway informa tion system HABIS currently in use has considerably accelerated processes in the port of Hamburg, it does not provide the options we need to interlink all par ties involved in the rail process as plan ned. In future, modern IT technology will be deployed to improve the control of all processes and use the railway net work more intelligently.

The large-scale project to implement these targets is called EVITA, the port railways operating & information sys tem. At the heart of the system is an integration platform (business process engine). On a user-friendly surface, the client-capable system combines all relevant functions to smoothly control the entire railway operations, taking ac count of the port specifics. This includes order processing, loading and unloading processes, infrastructure management, wagon-precise allocation for train and shunting trips as well as the coordina tion of different rail radar, IT and tele phone networks. And as a side effect, the system increases transparency for all users.

The railway will be the ports growth engine, of this, Matthias Krger and Frank Schnwald are both sure. In 2009 hinterland connections, and in partic ular rail links, represented the port of Hamburgs most stable market compo nent. According to a recent market ob servation study, published in April 2010 by the Bundesamt fr Gterverkehr [Federal Rail Freight Agency] Hamburg gained market share in rail-bound trans ports in Europe in 2010. Our package of measures is geared towards the fu ture and has created the basis for effi cient performance and increased pro ductivity. That includes environmental targets, such as the reduction of CO2 and noise emissions, especially in view of the fact that Hamburg will hold the title Green Capital 2011 next year.

Together with their 180 colleagues, they moved about 1.6 million containers (TEU) on the HPAs own tracks last year alone: (clockwise from left) Frank Schnwald (head of the rail network access unit), Gregor Ptz (marketing), Elizabeth Nelson (rail network access) and Matthias Krger (head of the port railway marketing unit).

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S u s t a i n ab i l i t y

HPA strategies for sustainable development

We create more Room for the Tidal Elbe

Large ships and tour ist steamboats, leisure captains and Elbe fishermen, shipyards and orchards, beach fun and habitat for plants and animals: in many ways, the tidal Elbe is the vital artery of the metropolitan region of Hamburg. Reason enough for the HPA to focus on implementing a sustainable concept to develop the tidal Elbe. Striking a fair balance between the conflicting economic and ecological interests is the delicate task of Manfred Meine, who is in charge of the management of the tidal Elbe within the strategy division. What is the basis you have estab lished for such a compre hensive task?
Meine: In 2006 already, the HPA in conjunction with the Wasser- und Schifffahrtsverwaltung des Bundes [Waterways and Shipping Administra tion of the Federal Government] pre pared a strategy paper and proposed an action plan. In 2009, a huge step was taken towards the implementa tion of this tidal Elbe concept when the first concrete river-engineering measures were developed. In additi on, a broad stakeholder process was initiated when the integrated transnati onal tidal Elbe management plan was drafted. This plan, which also contains major components of the tidal Elbe concept, is to form the basis for the implementation of the European na ture conservation policy within the Natura2000 network.

Which key targets have been defined in the tidal Elbe concept?
Meine: Apart from optimising the sed iment management, one of our fore most aims is to take river-engineering measures to reduce the incoming tidal energy. Because of the stronger tidal action, the most visible characteristic of which is the increase of the tidal range, the branch areas and side arms of the river Elbe have silted up considerably over the past decades and se dimentation in the area of the port of Hamburg has increased. This higher sediment dynamics had the effect that the sediment volumes, that had to be moved by maintenance dredging, rose significantly in the port of Hamburg, in particular in 2004 / 2005.

Where within these dynamic processes do you begin?

Meine: Our biggest challenge is to reduce increased upstream sediment transport rates from the mouth of the river Elbe. Due to decreasing mean low tide levels, observed over the past 50 years in particular in Hamburg by more than 80 centimetres the flood current from the mouth of the Elbe towards Hamburg has increased sub stantially. Today the ebb current is not strong enough to transport the sedi ments moved upstream back into the North Sea. This effect, called tidal pumping, causes sediment volumes to increase substantially in the upper tidal Elbe, which also greatly impedes maintenance dredging carried out to keep Hamburgs shipping routes navigable. That is why we want to miti gate the tidal energy by creating new shallow-water areas. We give the tidal Elbe more room.

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S u s t a i n ab i l i t y

He likes activities where the dynamics of nature play a part: Manfred Meine (53) shown here with construction engineer Jrn Gutbrod (l.) has been committed to the tidal Elbe and hydrology since 2007. He discovered his passion for water engineering when he was still a student of construction engineering at Hanover University. In his free time, he likes playing the saxophone and grooving Hamburgs funk and jazz scene with his band, which like the tidal Elbe project fascinates him because of the constantly changing outline conditions that require a person to permanently adapt and improvise.

Then your concept will secure the future of the port?

Meine: Thats what it will, but its about a lot more than navigability of the ship ping routes and accessibility of the port. In the long term, we want to balance the tidal behaviour in the entire Elbe region. Measures beyond Hamburgs bound aries must be taken; measures which do not only benefit the port industry, but the fishing industry, agriculture, nature con servation and tourism, too.

called Tideauenlandschaft Norderelbe [Norderelbe tidal riparian landscape]. In addition, further shallow-water areas in Hamburg are being inspected, which may be integrated in the tidal Elbe concept or they may offer synergy options for urban development. With the development of these shallow-water zones, Hamburg is taking on a pioneering role and setting an example for the neighbouring countries to take similar actions that may be required. The larger flood plains serve as addition al storm tide polders. They supplement classical flood defence measures and thus help us adapt to climate change.

that is marked by mutual understand ing. The HPA will be very willing to take on a pioneering role here, too.

Which concrete projects are in the pipeline?

Meine: In 2009, we started the Spa denlander Busch/Kreetsand pilot project within the framework of the tidal Elbe con cept. Several cubic metres of earth of the roughly 40-hectare large foreshore area are being moved and the area is being re designed into an intertidal shallow-water area. At the same time, this new project, once completed, will become a valuable part of the new nature conservation site

What are your future goals?

Meine: The tidal Elbe concept has to be advanced together with the federal gov ernment and all countries involved, and we need to further develop the scientific principles. We need all partners along the river Elbe to cooperate a cooperation

Hand in hand with environmental protection: (clockwise from left) Sonja Wild-Metzko, agricultural engineer, Jrn Gutbrod, construction engi neer, Annelore Seifert, construction engi neer, Manfred Meine, Dr. Boris Hochfeld, geographer and Johanna Knppel, hydro-biologist at the Kreetsand main dyke.

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S u s t a i n ab i l i t y

The HPA is making a name for itself in environmental protection

Green Wave for a responsible Port Development

Nature on the waters edge for many that is the seagull on the railing. For Wolfgang Becker, however, the port also represents an important ecological area. The head of the environmental strategy unit wants to create an HPA-specific image when it comes to environmental protection and convey the message that, apart from important economic aspects, the port also is a cosmos in its own right with great biodiversity.
Over the past years, we have made a lot of progress in nature conservation and environmental protection, but not much of what we have achieved has been com municated to the public, says Becker, describing what the situation was like when he took over as head of the newly established HPA environmental strate gy unit at the beginning of 2009. Now, the environmental expert has switched to green wave mode in the port of Ham burg: last year he and his three colleagues took stock, joined forces, established the results of the previous commitment and started to develop an informative and comprehensive database. According to Becker, it will serve as a basis for factu al discussions because very often apples are compared to oranges. aware of our commitment, encourage discussions and anchor the strategy in every part of the port in the long term. Work to define and plan concrete tasks is already in full swing, the more so as the Hanseatic City will hold the title of European Green Capital next year and the HPA will on top host the international GreenPort 2011 conference. Those in charge certainly want to set their own accents here, on the waters edge in their home territory and promote the sustain able development of the port of Hamburg with the environment in mind.

Pointing the way for the environment

Thanks to this preparatory work, achiev ing the HPAs aim, namely to develop and establish an environmental strategy with special focus on the port and its catch ment area, has now become possible. This competence represents another important facet in our portfolio, explains Becker. We want to make the public

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S u s t a i n ab i l i t y

Enhancing the attractiveness of the port

Chances are good that the HPA will achieve just that. Apart from ever-impor tant environmental issues, such as traffic management, deploying electro or gaspowered vehicles, taking energy-saving building measures and reducing noise pollution, the HPA is actively promoting creative approaches and fresh ideas. Many people live, work and spend their spare time vis--vis reach stackers, container mountains and bucket dredgers. We want to approach the issue from a totally different angle to make the port attractive, says Becker and points to the cycle track master plan. In con junction with associations, such as the Allgemeiner Deutscher Fahrrad-Club (ADFC General German Cycling Club), a cycle track network is current ly being developed, where citizens and tourists can discover hidden natural trea sures and relaxing places that invite to sit down for a picnic and where they will be provided information that even Hamburgs water lovers may not be aware of.

The HPA a nice neighbour

On top of that, the HPA is trying to promote the dialogue with residents to accept feedback and criticism on a basis of trust. The already existing Oevelgnne/Neumhlen noise advisory board, that comprises residents living in the vicinity of the port, the terminal operator and authority representatives and that meets under the moderation of the HPA, is proof that good ideas may turn out to be highly effective: since the development of a new laser-guided and computer-assisted soft touch-down technology, noise levels at the container terminal are lower because containers are now touching down more softly.

The port of Hamburg and the environment:

Did you know that... ... the water quality of the river Elbe has improved substantially since the German reunification? ... METHA has contributed consid erably to the protection of the river Elbe and the North Sea since 1993? The large treatment plant in the port mechanically separates polluted sedi ments from non-contaminated sand so that it is possible to reuse it as construction or sealing material. ... Hamburg is among the port cities that have voluntarily agreed to signif icantly improve their environmental and climate protection efforts within the framework of the World Ports Climate Initiative (WPCI)? Out of this commitment, two international projects have arisen, which the HPA is working on jointly with other ports: The shore power for ships project analyses the whether and how of land-side energy supply with the aim to reduce emissions. The Environmental Ship Index (ESI) is a guideline to measure the environmental friendliness of a seagoing ves sel. Efforts that go beyond the limit values set by the International Maritime Organization (IMO) will be assessed and may, for example, be rewarded with a reduction in port fees.

Sustainable commitment to the development of the port of Hamburg: (clockwise from left) Hendrik Hollstein, environmental strategist, Wolfgang Becker, head of the environmental strategy unit, Dorita Hermes, environmental management systems and Heike Naumann, spatial planning.

Setting a good example on his bicycle: Wolfgang Becker (62), co-founder of the cycle track master plan, became the head of the environmental strategy unit in 2009. The trained river engineer and temporary press spokesman of the Hamburg ministry for economic and labour affairs has been with the organisation since 1974. Among others, he worked in the waterway and vessel berth planning unit and as a process manager in the port development unit.

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S u p e r v i s o r y B o ard s R e p o r t

Supervisory Boards Report

The year 2009 saw a sharp drop in global economic growth. The industrialised countries went through a recession and in the emerging countries growth rates continued to decline substantially. Though total throughput rates in the port of Hamburg in 2008 remained at approximately the same level as the year before (140.4 million t), 2009 saw total cargo volumes plunge (110.4 million t) by roughly 21%. Standing at a total of 7 million TEU, container trade in the port of Hamburg decreased by 28% in 2009 compared with the previous year. The high share in trade with Asia, which in the past helped Hamburg achieve above-average growth in container handling rates, put the port at a disadvantage in 2009 when global trade volumes declined. As a universal port offering a full range of services, the painful drop in the number of containers moved through the port of Hamburg was mitigated by positive developments in the individual handling segments. The first volume statistics for 2010 indicate that the economy seems to have hit bottom in 2009. After Hamburg showed first weak signs of recovery in the first quarter of 2010, a significantly more positive picture is emerging for the second quarter. It appears that the global economic crisis is coming to an end and the worlds trade flows will increase again over the coming months. The supervisory board supports the management of the HPA in its intense efforts to prepare the port of Hamburg well to cope with and take the appropriate measures to handle this expected rise in economic activities. Apart from the compre hensive refurbishment and optimisation programme that is al ready in place, one of these measures is to extend the HPAs existing business model. One example is the market consultation process conducted by the HPA on a global basis to gather ideas of how best to expand the future Central Terminal Steinwerder. By launching this initiative, the management entered completely new terri tory and the enthusiastic response showed that the interest in the port of Hamburg continues to be strong.

Management monitoring and control system, advising the managing directors

The HPA ARs supervisory board monitored the management board in the 2009 financial year and advised the management board on management issues. The supervisory board recei ved regular, updated and comprehensive information on the state of affairs and the going concern of the institution in the form of written and oral reports. In the 2009 financial year, four supervisory board meetings and four meetings of the financial committee formed by the supervisory board were held. In particular, the financial com mittee reviewed in detail the financial issues submitted by the management board and presented the results and recom mendations at the supervisory board meetings.

Financial statements as of December 31, 2009

The auditors appointed at the supervisory board meeting on July 9, 2009, Ernst & Young AG Wirtschaftsprfungs gesell schaft, Hamburg, audited the HPAs financial state ments as of December 31, 2009 and issued the auditors opinion expres sing their full and complete approval. In its meeting on June 23, 2010 the supervisory board review ed in detail and verified the financial statements as of Decem ber 31, 2009, the Directors Report and the proposal on the allocation of the result for the year. The members of the su pervisory board were presented the documents pertaining to the financial statements and the auditors report on time. The representatives of the auditing company, Ernst & Young AG Wirtschaftsprfungsgesellschaft, participated in the advi sory talks on the financial statements held during the supervi sory board meeting on June 23, 2010 and explained in detail the main findings of their audit.

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Changes in the composition of the supervisory board and management board

At the meeting on July 9, 2009 the supervisory board ap pointed Mr Wolfgang Hurtienne as managing director of the HPA with effect from August 1, 2009. At the same meeting Mr Jens Meier was appointed chairman of the management board of the HPA. In accordance with the resolution passed on June 30, 2009 the senate commission in charge of public institutions fare welled Dr. Rdiger Grube, who left on April 20, 2009, and appointed Mr Rolf Kirchfeld to the supervisory board of the HPA for the remaining tenure of office. The official tenure of the entire supervisory board of the HPA ended on October 3, 2009. The tenure of the representatives, Mr Heinz-Walter Fuchs and Mr Bernd Lokoschat, elected by the employees of the HPA also ended on that day. On October 4, 2009 the tenure of the representatives, Ms Sandra Orth, Ms Claudia Schick and Mr Rolf Schuberth, elected by the employees of the HPA commenced. Pursuant to 6, section (2) of the HPAG the members appoin ted by the Hamburg senate continued to be in office until the tenure of the members newly appointed by the Hamburg se nate, Mr Axel Gedaschko, Dr. Robert Heller, Mr Frank Horch, Dr. Horst-Michael Pelikahn, Mr Rolf Kirchfeld, Mr Ian K. Ka ran, started on November 11, 2009. Mr Heinz Papenhagens tenure ended on November 10, 2009.

The supervisory board would like to extend their thanks to Dr. Rdiger Grube, Heinz-Walter Fuchs, Bernd Lokoschat and Heinz Papenhagen for their contribution during their time as members of the supervisory board of the HPA. The supervisory board would like to thank all employees and the management board of the HPA for their continued commitment and professionalism. The board very much ap preciates their support and assistance shown in the previous financial year. Hamburg, 23rd June 2010 The Supervisory Board Chairman of the Supervisory Board

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Directors Report 2009 of the Hamburg Port Authority

Outline Conditions and Course of Business
The global economy takes a nosedive 2009 was marked by a sharp drop in global trade growth. The industrialised nations were in a recession and in the emerging countries growth rates continued to decline signi ficantly. Germanys economy shrank by 5% (source: Statis tisches Bundesamt [Federal Statistical Office]), which was the most severe contraction of the gross domestic product in the history of the federal republic. The first 6 months of the year in particular saw a sharp downward trend, where as in the further course of the year the economy showed early signs of a recovery. The port of Hamburgs main trad ing partner, the Peoples Republic of China, continued to suffer from the ramifications of the international economic and financial crisis in 2009, too: at roughly 9% the Chinese economy had to be content with single-digit growth figures once more. However in the last quarter of 2009 already, the Chinese gross domestic product reached double digits again rising to over 10%, which indicates that the Chinese economy is in for a quick recovery. In eastern Europe the global financial and economic crisis caused a breakdown in demand and, consequently, a substantial decrease in trade volumes compared with the previous years. Declining cargo volumes in the port of Hamburg After trade throughput in the port of Hamburg remained more or less stable in the previous year, the port had to face a steep drop in cargo traffic by about 21% in 2009, whereby break bulk volumes plunged by 25%, dry bulk shipments declined by 17% and trade of bulk liquids dipped by 8%. Individual cargo categories, however, showed positive signs of development. Such, grain throughput rose by 25%, other bulk liquids increased by 12%. At 110.4m tonnes, the total cargo volumes moved through Hamburg secured the port a market share of 15.4% (-1.7%) among the North Range ports of Antwerp, Rotterdam, Bremen/Bremerhaven and Hamburg. Compared with the previous year, Hamburgs total contain er trade indicated in TEU plummeted to 7m TEU a de crease of 28%. The high proportion of trade with Asia, which help ed Hamburg achieve above-average growth rates in con tainer trade in the past, turned out to be of disadvantage in 2009 when Hamburg was hit worse by Asias economic weakness than the competing ports along the northern ran

Anstalt des ffentlichen Rechts [Institution under Public Law], Hamburg

ge. The North Range ports of Antwerp, Rotterdam, Bre men/Bremerhaven and Hamburg handled a combined total of 28.6m TEU in 2009. In Rotterdam the number of contain ers handled in the year under review decreased by 9.7% to 9.7m TEU. Trade through Bremen/Bremerhaven was 17.4% down, amounting to a total of 4.6m TEU. Antwerp handled 7.3m TEU, a decline of 15.6%, when compared to the previous year. Among others, the comparatively moder ate decrease in container trade in Rotterdam can be attrib uted to additional feeder services which Rotterdam could win over from the port of Hamburg. Despite the decline in cargo volumes in this segment, the port of Hamburg did not have to cut the number of feeder connections offered from Hamburg. Hamburgs market share in container traffic among the North Range ports shrank by 3.5% to 24.5% in 2009. Despite a sharp decline in cargo volumes of about 24%, shipping traffic to and from Asia still represents the largest share in Hamburgs total trade volumes by far, and it ac counted for 59% of Hamburgs container traffic. The sub stantial downturn in import and export trade with eastern Europe and Scandinavia caused shipping traffic to and from Europe to drop to a market share of 27.9%. The negative trend was most evident in the first six months of 2009. As to shipping traffic to and from Asia, for instance, business picked up again in the third quarter of 2009, increas ing by 8% compared with the previous quarter. The high proportion of trade with Asia strengthens Hamburgs location as a trading hub for merchandise from the Far East, and the port of Hamburg will in future be able to benefit from growing trade with Asian countries. New financing system for the Hamburg Port Authority Anstalt des ffentlichen Rechts Until the beginning of 2009, general infrastructure invest ments and operational costs had been financed by subsidies. From 2009 onward, funding has been provided through a more flexible equity allocation. The Hamburger Brgerschaft [Hamburgs state parliament] adopted a resolution to make available to the Hamburg Port Authority Anstalt des ffent lichen Rechts, Hamburg, over the coming years the profits earned from the sale of the interest in the HHLA Hamburger Hafen und Logistik AG, Hamburg, to refinance port develop ment projects. This is to ensure that the Hamburg Port Authority

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will gradually receive money up to a total sum of over EUR 1 billion (the so-called HHLA-Milliarde [HHLA Billion]) which will be allocated to capital reserves. Furthermore a contract on the reimbursement of the costs of individual investments in the port was entered into with the Free and Hanseatic City of Hamburg in the 2009 fi nancial year. The contract stipulates that the HPA will be reimbursed a maximum annual amount of EUR 24 million. The investment volume will largely be financed from federal funds for port expenses equalisation payments from the federal government to state governments to offset dif ferences in the cost of providing certain services. The funds will be paid out of the budget of the Free and Hanseatic City of Hamburg. The introduction of the above-mentioned changes to the fi nancing system entailed the elimination of operational grants and subsidies for project-related individual measures; a fact that will cause the Hamburg Port Authority to operate at a loss during the first years of the changeover, even if, com pared with the previous years, the costs or the revenues of the Hamburg Port Authority do not change. The resulting annual loss to the amount of EUR 226.8 million primarily incurred due to non-capitalisable project costs, of which roughly EUR 97.4 million have to be attributed to standard business operations. Despite the high loss for the year, the Hamburg Port Authoritys funding is secure through the co ming years due to the promised capital allocations. The new financing situation enables the Hamburg Port Aut hority to respond to changing market conditions a lot more flexibly. At the same time the changed circumstances make it necessary to work out intelligent solutions so to ensure a sustainable business model for the institution. Hamburg Port Authority is all set to face the challenges In its young history, 2009 was the port of Hamburgs most difficult economic year that the Hamburg Port Authority has ever experienced. The decline in world trade and the port of Hamburgs loss of market share within the North Range pose new challenges to the Hamburg Port Authority. The current understanding of how to ensure the future of Ham burg as a port site successfully has to be reviewed and de veloped further in a creative way.

Furthermore, the changed financing situation of the institu tion requires a review of the Hamburg Port Authoritys cur rent business model. The Hamburg Port Authority is prepared to meet these chal lenges. In 2009 it initiated and implemented respectively a plethora of activities aimed at making the port of Hamburg structurally stronger and leading it into a bright future once the global economic crisis has been overcome. One key prerequisite to achieve the above aim was the re structuring of the institution at the beginning of 2009. After completion of a several-month long organisational review conducted with the assistance of external specialists, the Hamburg Port Authority has implemented a flexible and ef ficient organisational structure that caters to the require ments and that finally enables the organisation to take the step leading towards a sustainable modern management institution. On the basis of this internal restructuring, the Hamburg Port Authority is pursuing a variety of strategically important pro jects, whereby it is also entering completely new territory. Some major examples that reflect this new management strategy are the following key subject areas: Market consultation process For the first time in its long years of port history, the Ham burg Port Authority conducted a global market consultation process for the planned expansion of the Central Terminal Steinwerder. With the launch of the consultation process the Hamburg Port Authority has pointed the way, and not only has the response from more than 20 national and internatio nal competitors proven that there is great interest in taking part in this process but also that the HPA has set out on the right path. The proposals will be evaluated at the beginning of 2010 and the best concepts will be awarded a prize. Expansion of the existing business model The classical task of the preceding organisation predomi nantly consisted of providing sufficient infrastructure facili ties to meet the capacity demands of the ports customers adequately. This task still forms an important part of the Hamburg Port Authoritys scope of duties. The service portfolio can, on top, be broadened further because the Hamburg Port Authority, as a central port management in

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stitution, is able to create noticeable added value if it provi des one-stop services such as, e.g. in the area of train pro cessing. Here lies additional optimisation and value-adding potential for the port which, in view of the broader scope of services offered by the Hamburg Port Authority, will be utilised more effectively in future. Introduction of intelligent charging systems After an initial start-up phase, the introduction of the new port railway charging system has had the expected effect and the infrastructure is now used cost-efficiently in line with users actual requirements. Optimised traffic move ment control reduces lead times and promotes the smooth processing of trains, which saves costs when it comes to expansion requirements. In view of the positive results, the HPA is now planning to optimise the charging structures of other services. Apart from improved control and use of the infrastructure, incentive systems are in the planning which consider, for instance, load-related charging and environ mental fee components. IT infrastructure Maintaining and modernising the physical infrastructure in the port of Hamburg requires the deployment of modern and intelligent IT infrastructure, which has to be made available both to the Hamburg Port Authority and the port industry. The further development of the modern and intelligent IT infrastructure at the Hamburg Port Authority is based on an IT master plan management system specially implemented for the Hamburg Port Authority, which at first captures all IT processes within and outside of the Hamburg Port Authori ty. Based on the data collected, a target IT master plan will be developed that is to serve as a guideline for all future processes so to ensure that all IT processes are properly coordinated and interlinked. The central IT infrastructure allows the central integration of logistics data. Data transparency and direct non-stop data flows will create the basis for a successful and fast supply process chain. The Hamburg Port Authority is a very good platform to coordinate these controlling tasks centrally. Strategic reorientation (port development plan 2015) The Hamburg Port Authority, assisted by external consul tants, has processed and evaluated the megatrends ex

pected for the coming decades, whereby special attention was paid to their impact on the economy, ecology, demogra phy and technology, and conclusions for the port industry were drawn. The results of the study were presented at the end of the year, and they clearly show that the port of Ham burg needs to pursue a comprehensive and well-structured industrial location management and set the right course for water, road and rail transport modes so to enhance the strengths of the site and minimise its disadvantages. New value-adding potentials From 2011 at the latest, the Hamburg Port Authority will charge the competent authorities of the Free and Hansea tic City of Hamburg for port-unrelated obligations. The aim is that such costs will no longer have a negative effect on the result. Apart from that, the Hamburg Port Authority will make use of all options available to create more value-ad ding potential within the framework of already practised and new business activities. Among others, the Hamburg Port Authority will invite tenders for vacant port land as well as include complementary facilities, such as buildings, in lease offers. On top, first activities have commenced to provide consulting services. Expansion and replacement investments that have been implemented In the year under review, the Hamburg Port Authority com pleted and advanced respectively some pivotal projects: The upgrading of the port railway track network continued to be of top priority in the 2009 financial year. A total of 23,200 metres of tracks and 65 switches were replaced. A large part of the existing maintenance backlog left over from the years prior to the establishment of the Hamburg Port Authority could thus be cleared as planned. Due to other targeted investments in the railway infrastructure, opera tions are expected to run smoothly by the end of 2010 and the port railway will be well equipped to handle increasing traffic. In 2009 the key element of the roadway and railway bridge upgrading programme to sustainably improve the traffic sit uation within the port was the commencement of the new construction of the centrally located Niedernfelder and Mggenburger bridges. As to the new construction of the Rethebrcke, a bascule bridge, the crucial planning phase as well as preparatory building measures have been com

40

pleted so that in 2010 construction work is expected to commence. At the same time planning efforts regarding the railway bridge in the area of the Kattwykbrcke have been intensified. The development of the port land will enable regional port businesses to expand and attract new customers from the logistics area. Constructional measures carried out at Mittlerer Reiherstieg, Witternstrae or Fhrstieg, among others, will further increase the number of plots of land on offer within the port area. Work to upgrade the harbour locks was intensified. The ma jor components of this project are the Ernst-August harbour lock, work on which started in 2009 and has since been advanced significantly, as well as work to adjust the Harburg harbour lock to meet requirements. Three major quay wall expansion projects are currently un derway to strengthen the competitiveness of the container terminals. Work on them continued with undiminished inten sity in 2009. Such, berth 5 at Europakai that serves the con tainer terminal Tollerort and berth 3 at Predhlkai were both completed to an extent that operations can start in 2010 as soon as work on the supra-structure has been finalised. Expansion work at the container terminal Burchardkai was taken to the next stage, when the construction of berths 3 and 4 started. For the large-scale project called west expansion further preparatory measures to clean up contaminated land were carried out and completed. At the Blumensandhafen, a section of the port, the official planning approval process to build a new tanker discharging bridge was completed and work on it may now commence. The general planning concerning the port development in the Sderelbe area was coordinated with the planning of a southern cross-port route and further developed in 2009.

vious year were recognised as income, were granted for special individual cases only so that the development of the result for the year is entirely due to this technical adjust ment. For the year ended December 31, 2009, the balance sheet of the Hamburg Port Authority shows a loss for the year amounting to EUR 226.8 million. After the planned reversal of the capital reserves which in the 2009 financial year was increased as planned with the allocation of the HHLA-Mil liarde, a balance sheet deficit of EUR 28.6 million remains. The balance sheet deficit is for the most part due to the eli mination of the operational subsidies so that after counting out this non-recurring effect, the current result for the year is only slightly below the result achieved in the previous year. The deterioration of the result is largely due to the bad economic circumstances in the port of Hamburg as well as due to individual expenses unrelated to the accounting period, in particular compensation payments (EUR 128.1 million) and land tax (EUR 8.7 million). In the 2009 financial year, the Hamburg Port Authority gene rated income amounting to a total of EUR 217.7 million (pre vious year: EUR 297.1 million). The income is composed as follows: a turnover of EUR 134.9 million (previous year: EUR 129.6 million), subsidies from public budgets of EUR 34.6 million (previous year: EUR 126.3 million) and other income of EUR 48.2 million (previous year: EUR 41.2 million). The turnover is mainly composed of income generated from the leasing out of land held, wharves and other facilities to the amount of EUR 72.6 million (+4.9%), port fees of EUR 41.7 million (+3.0%) and from the collection of fees for the use of the port railway system amounting to EUR 11.7 mil lion (+4.5%). The annual adjustment of the port fees due to increased costs and as inflation compensation was not carried out in 2009. Rather the Hamburg Port Authority in creased the port fees by 4% with effect from March 1st, 2009 to meet its obligation to pay the Stiftung Lebensraum Elbe [Elbe habitat foundation], currently in the process of being established, the a.m. 4% of the port fees from 2009 onward until further notice. The HPA is obligated to provide further funds to the foundation over the coming years, up to a total of EUR 40 million. The payments are financed by further contributions from the port fee income and compen sation payments for constructional measures which involve

2. Earnings Situation, Financial and Net Assets Position

The changed financing situation has caused substantial changes in the statement of earnings as the subsidies re ceived for non-capitalisable project tasks, which in the pre

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the filling in of water areas, up to a total amount of EUR 7.5 million. The public subsidies consisted of regular operating subsi dies to the amount of EUR 4.5 million (previous year: EUR 23.0 million) and project-related subsidies to the amount of EUR 30.1 million (previous year: EUR 103.4 million). The subsidies granted for project-related measures include the cost reimbursements for investments within the port which could not be capitalised. For the most part, these are in vestments in the port railway (EUR 3 million), the expansion of the public flood defence facilities (EUR 13 million) and public roads (EUR 13 million). Other income is mainly composed of revenues from the re versal of the special item for investment subsidies (EUR 19.8 million), own work capitalised (EUR 9.2 million), in come unrelated to the accounting period from dredging work to maintain the sediment trap near Wedel (EUR 4.3 million), income from additional charges for land held and wharves (EUR 3.9 million) as well as income from the rever sal of provisions (EUR 3.3 million). The income is offset by operating expenses of a total of EUR 420.4 million (previous year: EUR 279.5 million) which consist of costs of materials and services received amoun ting to EUR 130.3 million (-0.2%), staff costs of EUR 99.5 million (+11.8%) as well as depreciations and amortisations to the amount of EUR 31.9 million (+4.3%) and other opera ting expenses of EUR 158.8 million (+442.0%). The goods and services purchased include regular infra structure maintenance work, the expansion of public road facilities and public flood protection facilities within the framework of the Hamburg Port Authoritys sovereign ob ligations as well as the operation of the infrastructure fa cilities. In the 2009 financial year, the other operating expenses show compensation payments to the amount of EUR 128.1 million, which arose based on contract negotiations on the relocation of companies currently located in the area of the planned Con tainer Terminal Steinwerder. Like in the previous year, the ope rating expenses mainly include rental payments and leasehold rent, IT operating costs, marketing and consultancy costs.

Compared with the previous year, the interest result rose by EUR 0.4 million from EUR -5.6 million to EUR -6.0 million. The rise is largely due to the taking up of the 3rd tranche of the framework credit of a total value of EUR 17.5 million granted by the Hamburger Sparkasse AG, Hamburg. The other taxes item primarily recognises the land tax due for the land held by the Hamburg Port Authority, amounting to EUR 17.9 million (previous year: EUR 6.9 million). After the surveying of all port plots of land had been completed in 2009, the state ministry for finance issued the first new tax assessments. The notices of tax assessment made it necessary to reassess the current land tax expenses so that in the current financial year provisions to the amount of EUR 15.5 million (previous year: EUR 5.0 million) have been made for 2005 to 2009. Only after all notices of tax assess ment are available will the data basis be reliable so that the present values are still estimated values only. The loss for the year amounts to EUR 226.8 million, which is EUR 6.0 million lower than the planned value. Besides the higher-than-planned turnover this is predominantly due to the high aperiodic income generated, which has not been eaten up by the provisions for land tax that had to be made. Capital reserves at EUR 201.8 million have been reversed, which means that the planned value is exceeded by EUR 25.8 million. The higher reversal is largely due to the early conclusion of individual relocation contracts. After setting off the loss for the year against the capital reserves, the balance sheet deficit amounts to EUR 28.6 million, which though it is lower than planned by EUR 33.8 million (55%), it has deteriorated by EUR 25.0 million com pared with the previous year. The deterioration is mostly due to the elimination of operating subsidies as well as due to compensation and additional land tax payments made. Compared with the previous year, the balance sheet total of the Hamburg Port Authority has slightly risen to EUR 1,229 million (+3.5%); the fixed assets share is 89.8% (previous year: 85.9%). The further increase of the fixed assets share in the total assets shows that the Hamburg Port Authority has continued to pursue a sustainable port infrastructure expansion and modernisation strategy, which led to a higher

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investment ratio of 10.5% (previous year: EUR 8.4%). The key investment projects in the 2009 financial year were the further extension of the quay walls and installations (EUR 39.0 million) as well as the modernisation and replacement investments in port railway facilities (EUR 29.6 million). 2009 saw the completion of the quay wall at Burchardkai 2. The quay wall installations at Burchardkai 3 and 4 as well as the expansion works at the Tollerort container terminal, berth 5 were still ongoing as of December 31, 2009. Public road expansion investments and investments in pu blic flood defence projects are not reflected in the Hamburg Port Authoritys fixed assets as these assets are the pro perty of the Free and Hanseatic City of Hamburg. EUR 12.9 million were invested in the expansion of the roadway net work and EUR 12.7 million were invested in the expansion of public flood defence facilities. Of the EUR 12.7 million, 7.3 million were allocated to the new construction of the Ernst-August harbour lock and EUR 4.1 million were alloca ted to the Harburg harbour lock. The equity capital amounts to EUR 536.6 million, which is equivalent to an equity ratio of 43.7% (previous year: 48.0%). The lower ratio is due to the loss situation of the Hamburg Port Authority which, in turn, is the consequence of the changeover to the new financing system. The use-up of the capital reserves is offset by the allocation of the first tranche of the HHLA-Milliarde (EUR 176.0 million) and the allocation of the purchase price claims of the Free and Han seatic City of Hamburg against the Hamburg Port Authority for the acquisition of several plots of land (EUR 17.0 million). Another tranche of EUR 51 million was added to the equity capital of the HPA on January 4, 2010. The special item for investment subsidies increased by EUR 8.5 million to EUR 251.2 million over the previous year. This value is offset by the relevant general infrastructure book values in the fixed assets. The combined sum of equity ca pital and special item for investment subsidies results in a slightly reduced self-financing ratio of the fixed assets of 71.4% (previous year: 79.7%). As of December 31, 2009 the Hamburg Port Authority em ployed 1,779 active staff, a plus of 83 employees compared with the end of the previous year. The appropriations to the

provisions for pensions in the 2009 financial year amounted to EUR 8.5 million (previous year: EUR 5.1 million). These appropriations are offset by entitlements to claim equalisa tion payments for pension expenses from the Free and Han seatic City of Hamburg to the amount of EUR 4.4 million. The entitlement to claim equalisation payments is based on the assurance by the Free and Hanseatic City of Hamburg, set forth in the Act on the Establishment of the Hamburg Port Authority, according to which the pension obligations owed to active employees and incurred prior to the esta blishment of the Hamburg Port Authority are to be paid for by the Free and Hanseatic City of Hamburg.

3. Employees
For the employees of the Hamburg Port Authority, 2009 was marked by the implementation of the findings of the restructuring analysis Hamburg Port Authority 2010. Apart from the changes in the organisational structures, a large number of work processes were newly defined and implemented. The employees were incorporated into the new structures according to the principle of the task de fines staff requirements. These measures were, during the course of the year, accompanied by a professionally desi gned change management to take executive staff along on the path of progress and further development as well as to increase acceptance of the new strategic orientation of the Hamburg Port Authority on the other hand. In addition to the above measures, the Hamburg Port Aut hority succeeded in professionalising the recruitment of qualified specialists. Despite, in part, considerable competitive disadvantages (salary level) a large number of new staff was employed and the backlog from 2008 could, for the most part, be cle ared. In the field of staff training and development, the foundation to cope with future challenges (a. o. demographic changes) was laid. A professional competence management system has been developed to systematically identify, monitor, maintain and further develop the competence of staff in a target-oriented manner. To groom and promote the deve lopment of junior staff, first steps to introduce dual educa

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tion courses have been taken. The HPA is now cooperating with universities, educational and training institutions, and initiatives have been launched (natural sciences and tech nology) to bind qualified junior staff to the company at an early stage in future.

4. Risk Analysis
The management of the Hamburg Port Authority considers all relevant risks and chances that may arise within the me aning of the Act on Control Mechanisms and Transparency in Business Enterprises (KonTraG). In this the management is supported by a corporate governance instrument that has been established in the institution: the risk and chance management system (RCM). The system is continuously further developed and adjusted to ensure that the multiple organisational changes of the Hamburg Port Authority are taken account of adequately. Besides the detailed report from the respective business units, subjects affecting more than one unit are evaluated in conjunction with all parties involved. The further integration of RCM aspects in the operative management reporting system, combined with risk clusters focused on permanent and temporary risks, is to ensure that this system will increasingly form an integral part of the management principles. Today risky developments are assessed and documented at an early stage in all parts of the company, which makes it possible to take the appropriate measures in a timely manner. The risk portfolio of the Hamburg Port Authority is compo sed of different individual risks that can be summarised in the following risk groups: market development risks, finan cing risks, technical risks, staff risks and natural risks. Market development risks In the first six months of 2009 in particular, the negative de velopment in international trade already evident in the pre vious year continued. Though by the end of 2009 a slight recovery seemed to be in the offing, maritime trade and cargo volumes moved through the port continue to be se verely reduced. It is currently not possible to predict the development of handling rates in Hamburg with certainty as no reliable data are available.

The quick recovery of the Asian markets as well as the as sumption that the eastern European economic areas will continue to grow (OECD), however, are sending positive signals to the port of Hamburg and its future development. As the majority of the handling and logistics services of fered in the port of Hamburg focus on shipping traffic to and from East Asia and eastern Europe, further port infrastruc ture expansions are needed to ensure that Hamburg has the capacity to meet future trade demands. Financing risks As subsidies from the public budget have been cut, the Hamburg Port Authority will generate a loss in the next ye ars, because the self-generated income of the organisation does not fully cover the costs incurred for investments in public infrastructure facilities the HPA is obligated to make. In the coming years, the anticipated losses and fund re quirements to further expand the port will be refinanced through capital injection, so there is no immediate financing risk. It is however of foremost importance that the Free and Hanseatic City of Hamburg, after the funds appropriated to equity the HHLA-Milliarde have been used up as is inherent in the system that it will ensures in time that the Hamburg Port Authority is able to develop a sustainable business model. The first steps have already been taken in the year under review and arrangements have been made to secure the funding of the Hamburg Port Authority on a permanent basis. Apart from widening the service portfolio, all services unrelated to port activities have been identified with the ultimate aim to get the competent authority to or der and pay for them. Furthermore, resolutions adopted by the Hamburger Brgerschaft [Hamburg state parliament] in the accounting period form the basis for financing that may be provided from the budget. Technical risks Extensive investments in the port infrastructure pose an ar ray of technical risks, which are difficult to predict and the ramifications of which must be assessed on a case-by-case basis. Serious risk factors that regularly affect the quality of construction sites are, for instance, unexploded ordnance, soil contamination as well as left-over building structures and their load bearing capacities. The structures/buildings usually have to carry very heavy loads, and they must be

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of stable construction and structurally sound. One of the most challenging tasks will be the building of the new Re theklappbrcke, a bascule bridge. This type of bridge the largest of its kind in Europe is the second bridge ever to be built in this size. In accordance with the Munitions Ordinance of Decem ber 13, 2005 the Hamburg Port Authority, as the owner of so-called suspected contaminated sites, has to bear the expenses incurred in connection with the surveying for unexploded ordnance and clearing of the sites. According to 1 of the ordinance, suspected contaminated sites are plots of land that, based on findings provided by the go vernment authority in charge, contain or are suspected to contain unexploded ordnance. This classification applies to the main areas in the port of Hamburg. Hence in future, the Hamburg Port Authority will have to bear the probing costs incurred for construction projects that have been applied for and approved because, as defined in the Errichtungsgesetz [Establishment Act], the Free and Hanseatic City of Ham burg will not take over the costs. An accurate estimate of the financial costs the Hamburg Port Authority will have to reckon with is not possible as the costs depend directly on the construction projects applied for and approved as well as on the condition of the relevant sites. Staff risks After its internal restructuring and the change in the finan cial framework conditions, the Hamburg Port Authority has entered a radically different path of development in its young history. The dynamic changes and the simultaneous increase in performance efficiency required in the areas of operations, facility maintenance and overall development of the port are a substantial additional burden for both the organisation and every single employee. Whether this pro cess proves successful in the end depends in large part on how comprehensively the new management culture can be implemented in an environment of dynamic changes and increased performance requirements. Furthermore, emplo ying new staff on a timely basis and as required is crucial to be able to manage upcoming projects successfully and will have considerable impact on the development of the Hamburg Port Authority. Natural risks In order for the port of Hamburg to stay competitive, ac

cess waterways must be deep enough to accommodate seagoing vessels. It is of paramount importance, therefore, to maintain todays water depths and follow through the plan ned river channel adjustment to enable ships with a draught of up to 14.5 metres to enter the port, tide-dependent. As in many large seaports, Hamburg needs to perform maintenance dredging at regular intervals to maintain the water depths. In order to optimise the sedimentation pro cesses in the river Elbe in the future and secure the water depths in Hamburg and of the seaside access routes in the long term, the Hamburg Port Authority, in conjunction with the Bundeswasserstraenverwaltung [Federal Waterways Management Authority], prepared a concept on the sustai nable development of the tidal Elbe in 2006 already, which will have to be further developed and realised in the co ming years. The Hamburg Port Authority has taken on a pi oneering role by implementing a number of pilot measures. Among others, a sediment trap was deployed near Wedel, which has helped trap sediments in this area on a regular basis since 2008 so to prevent the uncontaminated sedi ments transported upstream from the North Sea from mi xing with the more polluted sediments from the entire river Elbe catchment basin in the area of the port of Hamburg. One pivotal component that may have a significant effect upon tidal behaviour and the associated sedimentation is to create and restore respectively intertidal zones. With the redevelopment of the Spadenlander Busch Kreetsand land into a shallow-water area, the Hamburg Port Authority will create some 30 ha of new flood plains on the Norder elbe in the east of Wilhelmsburg. Not only is this the first project of its kind, but it also serves to highlight the many synergies between nature conservation, water manage ment and leisure activities. It may even encourage further such measures within and outside of Hamburg. The effects of the implementation of the tidal Elbe concept will be felt in the medium to long term only. That is why it will, over the next years, still be necessary to relocate less contaminated dredged material into the North Sea or ebbdominated sections of the river Elbe downstream of Ham burg to provide the required water depths in the port of Hamburg. The approval granted by the Schleswig-Holstein environment ministry to relocate dredged material into the North Sea, which expires at the end of 2011, defines nar

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D i r e c t o rs R e p o r t

row parameter ranges for the contamination of sediments that must be adhered to. Dredged material not meeting the approval criteria must be relocated to other places. That is why, in principal, the risk remains that it may not be possible to guarantee unrestricted access to the port of Hamburg at all times. In the 2006 financial year, the Hamburg Port Authority stop ped making provisions for the reclamation of the contami nated industrial site which formerly housed the Hamburger Aluminiumwerke [aluminium plant]. At the date of closing, no certain facts were available on how heavily the soil is contaminated. The sum provided for amounts to EUR 5.0 million. It will continue to be shown under provisions. In the 2009 financial year, all plots of land within the port area held by the HPA were completely resurveyed, which significantly improved the database used to calculate the real property acquisition tax as well as the land tax. Both types of taxes have been assessed temporarily only so that the tax provisions made adequately consider the expected future liabilities from the commercial point of view. Risks to the organisation as a going concern as well as other risks that may adversely affect the net assets positi on, financial position and earnings situation of the institution in the medium term are not recognisable at the moment.

ve outlook now. In short, in todays economic environment it is impossible to make reliable predictions about how cargo volumes will develop. In view of these outline conditions, the port of Hamburg is setting out on new paths to set the right course for the development of the port of Hamburg. On the basis of stra tegic megatrends, differentiated development scenarios are being developed and aligned with market requirements. The success of a port will in future depend on how far and how adequately the relevant trends can be incorporated in future development plans, whereby the diversification of the ser vices offered and the mix of industries as well as the extent the port is interlinked with business partners worldwide will play a decisive and important role. The Hamburg Port Aut hority takes every effort to advance the expansion and the strategic planning for the long-term further development of the port of Hamburg. Among others, work to expand the quay walls at Burchardkai and Tollerort will be completed in 2010, the roadway and railway network as well as the traffic management system will continue to be upgraded, traffic planning in Hamburgs south will be advanced and the results of the market consultation process for the expansi on of the Central Terminal Steinwerder will be implemented in a realisation concept. Furthermore, a variety of smaller plots of land will be prepared for development and marketed actively, and new business ideas on how to add value will be developed. In the end, the permanent success of these endeavours largely depends on whether the fairway adjust ment of the river Elbe will be realised in a timely manner. Should this project not go through, there is a risk that Ham burg will not be able to hold its ground in the international competition of ports. The global-oriented and market-conform positioning of the Hamburg Port Authority and its modern management struc tures make it well placed to recognise new challenges early on and take the right decisions to pave the way for a bright future. In the coming years, however, the Hamburg Port Authority will continue to generate losses as the new financing model provides for annual allocations to capital reserves, which means that a large part of the general infrastructure ex penses are not covered by the respective income. Provided sufficient sums are allocated to capital reserves, the annu

5. Forecast Report
The dramatic drop in handling volumes in the 2009 finan cial year was a development nobody could have imagined or foreseen, and the enthusiasm that arose whenever dis cussions turned to the subject of container handling rates was badly shaken. The development forecasts for the years to come had to be completely reviewed and a change in thinking has taken place. In the past years, container trade grew steadily in the double-digit percentage range and port development plans strongly focused on container shipping. These medium-term forecasts no longer provide a reliable basis for a port development strategy that would address requirements adequately. That is why nowadays, based on different basic data, the development curve, though upward, is expected to rise more slowly. Still, any projection made today is based on actual circumstances and the scenarios developed may prove too pessimistic in view of the negati

46

al losses will not threaten the existence of the Hamburg Port Authority. What will be crucial, however, is whether the Hamburg Port Authority, over the next few years, will be able to adjust todays scope of activities and make it transparent, charge the costs of commercial non-port tasks to the responsible bodies and increase the value-adding po tential by expanding todays business model. Furthermore, upon expiry of the current funding model, it will be neces sary to secure the follow-up financing of the expansion and replacement investments in the general infrastructure from the budget of the FHH.

6. Supplementary Report
No events of special importance to the state of affairs of the institution have occurred after the balance sheet closing date. Hamburg, 31st March 2010

Jens Meier Chairman of the Management Board

Wolfgang Hurtienne Managing Director

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A n n u a l F i n a n c i a l S tat e m e n t s

Hamburg Port Authority

Anstalt des ffentlichen Rechts [Institution under Public Law], Hamburg

Profit and Loss Account for 2009

The result for the year does not reflect the HPAs true economic development
The 2009 profit and loss account of the HPA closes with a balance sheet deficit to the amount of EUR 226.8 million. The high loss for the year is due to the fact that, in accordance with commercial law, from 2009 onwards financial subsidies granted to the HPA for the public duties it carries out on behalf of the Free and Hanseatic City of Hamburg, are no longer reflected as earnings, but as allocation to capital reserves. The change is due to a modified financing system, which was applied for the first time in 2009. Only after the capital reserves have been apportioned does the adjusted result re flect the real income situation. The income has deteriorated by about EUR 30 million compared with the previous year, which is due in particular to the elimination of the operational grants paid until 2008, and amounts to EUR -25 million. The balance sheet deficit is shown in accordance with the provisions of the commer cial law, adding back the result brought forward from the previous year (EUR -3.6 million) so that the result shown in the balance sheet amounts to EUR -28.6 million as of 31 December 2009. Hamburg, 26th April 2010 HPA Tino Klemm Member of the Management Board and Head of the Financial Services and Real Property Division

48

2008 EUR 1. 2. 3. 4. Turnover Other own work capitalised Other operating income Cost of materials a) Cost of raw materials and consumables b) Cost of purchased services 5. Staff costs a) Wages and salaries b) Social security, pension and other benefits of which relating to pensions: EUR 9,314,955.54 (previous year: EUR 7,404,090.98) 6. 7. 8. Amortisation and depreciation of fixed intangible and tangible assets Other operating expenses Other interest receivables and similar income of which from the Free and Hanseatic City of Hamburg: EUR 151,243.23 (previous year: EUR 324,850.61) 9. Interest payable and similar charges of which to the Free and Hanseatic City of Ham burg: EUR 22,712.26 (previous year: EUR 0.00) 10. Loss on ordinary activities 11. Other taxes 12. Loss for the year (previous year: profit for the year) 13. Loss brought forward 14. Withdrawals from capital reserves 15. Balance sheet deficit 6,424,479.61 -6,020,467.12 208,812,556.70 17,969,001.56 -226,781,558.26 -3,569,376.66 201,800,000.00 -28,550,934.92 5,936,367.74 -5,575,269.03 12,075,395.08 6,949,895.19 5,125,499.89 -8,694,876.55 0.00 -3,569,376.66 31,867,843.41 158,812,480.04 420,442,940.30 404,012.49 30,645,433.72 29,334,339.77 279,472,605.88 361,098.71 76,835,372.98 22,670,703.14 69,210,395.40 19,783,709.81 11,025,858.71 119,230,682.02 11,409,599.86 119,089,127.32 134,860,904.88 9,220,241.43 73,569,704.41 217,650,850.72 EUR EUR 129,647,729.79 8,866,539.25 158,609,000.95 297,123,269.99

49

A n n u a l F i n a n c i a l S tat e m e n t s

Hamburg Port Authority

Anstalt des ffentlichen Rechts [Institution under Public Law], Hamburg

Balance Sheet as of December 31, 2009

ASSETS EUR A FIXED ASSETS I. Intangible Assets 1. Concessions, industrial property and similar rights and assets, and licences in such rights and assets 2. Payments on account EUR 31.12.2008 EUR

2,536,256.80 9,635,228.68 12,171,485.48

1,962,985.06 7,484,444.77 9,447,429.83

II. Tangible Assets 1. Land, similar rights and buildings including buildings on third party land 2. Technical equipment and machinery 3. Other equipment, factory and office equipment 4. Payments on account and assets in the course of construction 704,011,173.79 258,259,074.45 18,002,327.01 110,785,260.54 1,091,057,835.79 III. Financial Assets Participating interests 13,553.00 1,103,242,874.27 B CURRENT ASSETS I. Stocks Raw materials and consumables II. Receivables and Other Assets 1. Trade debtors 2. Amounts owed by the Free and Hanseatic City of Hamburg and amounts owed by group undertakings 3. Other assets III. Cash in Hand and Bank Balances 17,672,148.90 96,755,132.99 7,890,005.28 122,317,287.17 39,938.78 125,049,479.66 C PREPAID EXPENSES 288,653.45 1,228,581,007.38 57,287.19 1,188,290,143.63 8,109,708.22 150,740,962.66 5,767,124.45 164,617,795.33 40,144.36 167,852,809.28 2,692,253.71 3,194,869.59 13,543.00 1,020,380,047.16 686,599,484.73 235,610,892.34 14,049,098.06 74,659,599.20 1,010,919,074.33

50

EQUITY AND LIABILITIES EUR A EQUITY I. Subscribed Capital II. Capital Reserves III. Balance Sheet Deficit 150,000,000.00 415,155,092.48 -28,550,934.92 536,604,157.56 B SPECIAL ITEM FOR INVESTMENT SUBSIDIES 251,187,783.17 C PROVISIONS 1. Provisions for pensions and similar obligations 2. Tax provisions 3. Other provisions 97,809,598.59 15,581,800.00 66,254,241.46 179,645,640.05 D LIABILITIES 1. Bank loans and overdrafts 2. Trade creditors 3. Amounts owed to the Free and Hanseatic City of Hamburg and amounts owed to group undertakings 4. Other liabilities 186,152,752.92 23,003,828.59 3,747,150.42 42,100,583.38 255,004,315.31 E DEFERRED INCOME 6,139,111.29 1,228,581,007.38 EUR

31.12.2008 EUR 150,000,000.00 423,907,512.82 -3,569,376.66 570,338,136.16

242,653,874.40

89,921,688.59 17,489,000.00 51,484,005.80 158,894,694.39

142,611,791.65 15,793,208.49 2,864,882.17 49,355,062.10 210,624,944.41

5,778,494.27 1,188,290,143.63

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A n n u a l F i n a n c i a l S tat e m e n t s

Hamburg Port Authority

Anstalt des ffentlichen Rechts [Institution under Public Law], Hamburg

Development of the Fixed Assets in

Acquisition and Production Costs 01.01.2009 EUR I. Intangible Assets 1. Concessions, industrial property and similar rights and assets, and licences in such rights and assets 2. Payments on account Additions EUR Disposals EUR Repostings EUR

4,053,485.19 7,484,444.77 11,537,929.96

557,877.22 3,114,283.25 3,672,160.47

19,228.00 0.00 19,228.00

963,499.34 -963,499.34 0.00

II.

Tangible Assets 1. Land, similar rights and buildings including buildings on third party land 2. Technical equipment and machinery 3. Other equipment, factory and office equipment 4. Payments on account and assets in the course of construction 697,621,127.73 306,820,654.49 23,298,409.04 74,659,599.20 1,102,399,790.46 19,223,235.35 14,844,434.01 5,536,456.70 72,328,214.06 111,932,340.12 818,685.17 84,156.74 444,884.60 0.00 1,347,726.51 2,493,519.88 31,893,096.51 1,815,936.33 -36,202,552.72 0.00

III.

Financial Assets Participating interests 13,543.00 1,113,951,263.42 10.00 115,604,510.59 0.00 1,366,954.51 0.00 0.00

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2009
Accumulated Depreciations 31.12.2009 EUR 01.01.2009 EUR Additions EUR Disposals EUR 31.12.2009 EUR 31.12.2009 EUR Book Values 31.12.2008 EUR

5,555,633.75 9,635,228.68 15,190,862.43

2,090,500.13 0.00 2,090,500.13

948,104.82 0.00 948,104.82

19,228.00 0.00 19,228.00

3,019,376.95 0.00 3,019,376.95

2,536,256.80 9,635,228.68 12,171,485.48

1,962,985.06 7,484,444.77 9,447,429.83

718,519,197.79 353,474,028.27 30,205,917.47 110,785,260.54 1,212,984,404.07

11,021,643.00 71,209,762.15 9,249,310.98 0.00 91,480,716.13

3,499,998.00 24,040,783.67 3,378,956.92 0.00 30,919,738.59

13,617.00 35,592.00 424,677.44 0.00 473,886.44

14,508,024.00 95,214,953.82 12,203,590.46 0.00 121,926,568.28

704,011,173.79 258,259,074.45 18,002,327.01 110,785,260.54 1,091,057,835.79

686,599,484.73 235,610,892.34 14,049,098.06 74,659,599.20 1,010,919,074.33

13,553.00 1,228,188,819.50

0.00 93,571,216.26

0.00 31,867,843.41

0.00 493,114.44

0.00 124,945,945.23

13,553.00 1,103,242,874.27

13,543.00 1,020,380,047.16

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A n n u a l F i n a n c i a l S tat e m e n t s

Hamburg Port Authority

Anstalt des ffentlichen Rechts [Institution under Public Law], Hamburg

Appendix

For the financial year from January 1, 2009 to December 31, 2009
1. General Information
The Hamburg Port Authority Anstalt des ffentlichen Rechts, Hamburg, (HPA) was established with effect from October 1, 2005. The annual financial statements for the financial year from January 1, 2009 to Decem ber 31, 2009 have been prepared in accordance with 13, section 2 of the Act on the Establishment of the Hamburg Port Authority (HPAG). The financial statements have been drawn up in accordance with the provisions as set forth in the HGB [German Commercial Code] applicable to big companies limited by shares / corporations in as far as the further provisions of the Act on the Establishment of the Hamburg Port Authority (HPAG) do not conflict with the application of the commercial law. The profit and loss account has been prepared in accordance with the type-of-expen diture format. The financial year of the HPA corresponds to the calendar year.

2. Accounting Policies
The financial statements have been prepared based on the subsequent unmodified accounting and valuation methods. Acquired intangible fixed assets are valued at acquisition costs less depreciation calculated on a straight-line basis to write off their cost over their estimated useful lives. Tangible fixed assets are always stated at acquisition and production costs and, in as far as they are subject to wear and tear, reduced by planned depreciation to write off their cost over their useful lives. Low-value assets up to an individual net value of EUR 150.00 were written off fully in the year they were acquired or recorded as expenses; their immediate disposal was implied. For reasons of simplicity, assets of an individual net value exceeding EUR 150.00 up to EUR 1,000.00, acquired after December 31, 2007, are shown in the commercial balance sheet as part of the collective item required to be set up by tax law every year. A flat rate of 20 per cent p.a. of the annual collective item, the total amount of which is of subordinate importance, is written off in accordance with the

54

valid tax regulations in the year the additions, which it was set up for, were made, and the four subsequent years. Additions to the fixed assets are otherwise written off on a pro rata temporis basis. The production costs include foreign capital interests to the amount of TEUR 1,681 (previous year: TEUR 1,188) pursuant to 255, section 3 (2) of the HGB. Land and similar rights respectively, municipal buildings and other facilities taken over from the Free and Hanseatic City of Hamburg (FHH), for which no historical residual book values could be determined, have been evaluated on the basis of capitalised earnings values and comparative values as of October 1, 2005. It is prohibited by law to use the immovable / landed property as collateral or sell it. In particular, the capitalised earnings value method has been applied to land leased out, with and without connection to quay walls, as well as to land not yet leased out which however can be leased out. All other land has been valued using the compara tive value method. Water areas have been estimated at a pro memoria value of EUR 1.00, as both the capitalised earnings value and the comparative value method cannot be applied. In the 2009 financial year, all plots of land within the port area held by the HPA were completely resurveyed. Based on the land survey results they have been included parcel-precise in the fixed assets accounting. Financial assets are measured at acquisition costs. Stocks are measured at acquisition costs or production costs or the lower current values (lower-of-cost value) respectively. Receivables and other assets are evaluated at nominal value taking into account all recognisable risks. Provisions for pensions are evaluated using the going concern value method pursu ant to 6a of the EStG [Income Tax Act] at the assumed rate of interest of 6%. The 2005 G life tables drawn up by Prof. Dr. Klaus Heubeck have been taken account of. Tax provisions and other provisions have been made in the amounts required ba sed on reasonable commercial assessment. Liabilities are shown in the balance sheet at the repayment amount.

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A n n u a l F i n a n c i a l S tat e m e n t s

3. Notes to the Balance Sheet Fixed assets

The development of the fixed assets is shown in the fixed-asset movement schedule. Overview of the fixed-asset development 31.12.2009 TEUR Intangible assets: Concessions, industrial property and similar rights and assets, and licences in such rights and assets Payments on account Tangible assets: Land, similar rights and buildings, including buildings on third party land Technical equipment and machinery Other equipment, factory and office equip ment Payments on account and assets in the course of construction Financial assets: Total 704,011 258,259 18,003 110,785 14 1,103,243 686,599 235,611 14,049 74,660 14 1,020,380 17,412 22,648 3,953 36,126 0 82,863 2.5 9.6 28.1 48.4 0.0 8.1 2,536 31.12.2008 TEUR 1,963
Deviation

TEUR 573

% 29.0

9,635

7,484

2,151

28.7

Key investments were: the expansion of the port railway (TEUR 21,696), purchases of additional plots of land, incl. buildings (TEUR 17,140), the new construction of quay walls (expansion of the Burchardkai berths 3 and 4 at TEUR 14,446, Europakai berth 5 at TEUR 12,653, Predhlkai berth 3 at TEUR 8,920) as well as the acquisition of water vehicles (TEUR 3,677).

Receivables and other assets

The following schedule contains more detailed information on the due dates of the amounts owed by debtors as well as on the other assets: Falling due: Receivables and other assets Trade and other receivables Amounts owed by the Free and Hanseatic City of Hamburg and group undertakings
Other assets Total

31.12.2009

In TEUR

Total amount
31.12.2009 17,672 96,755 7,890 122,317 31.12.2008 8,110 150,741 5,767 164,618

Of which amounts falling due >1 year

31.12.2009 0 85,903 168 86,071 31.12.2008 0 82,093 77 82,170

The amounts owed by the Free and Hanseatic City of Hamburg totalling TEUR 96,707 primarily include reimbursement claims for staff costs such as, e.g. pensions (TEUR 76,170), grants not yet paid (TEUR 4,877) as well as amounts receivable based on compensation and reimbursement measures (TEUR 4,638).

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Equity
The subscribed capital to the amount of TEUR 150,000 is equivalent to the nominal ca pital as defined in the HPAG. Due to the changes in the financing system of the HPA in 2009, the institution receives annual tranches from the proceeds of the partial initial public offering of the HHLA Hamburger Hafen und Logistik AG, Hamburg (HHLA) the so-called HHLA-Milliarde [HHLA billion] to finance the development and management of the port. These tranches will gradually be allocated to capital reserves. In the 2009 financial year, EUR 176 million were appropriated. A further increase in capital reserves is due to the contribution of a total of TEUR 17,048, which the HPA owes to the FHH in connection with the acquisition of several plots of land. The FHH paid for the plots of land and the resulting reimbursement amounts owed to the FHH have been posted to capital reser ves. TEUR 201,800 were withdrawn from capital reserves and used for ongoing project expenses. The withdrawal is related to the changes in the financing system of the HPA.

Special item for investment subsidies

The HPAs financing system underwent fundamental changes in the 2009 financial year. Until April 30, 2009 the HPA received public subsidies for investments and projects to maintain and expand the general infrastructure. These subsidies were largely replaced by the HHLA-Milliarde to be granted in annual tranches, which will be allocated to capital reserves. Insofar the amount of the special item for fixed-asset investment subsidies cor responds to the subsidised general infrastructure residual book values. The special item is reversed on a pro-rated basis in accordance with the relevant depreciation amounts.

Provisions
The provisions mainly concern: Overview of provisions Provisions for pensions and similar obligations Tax provisions Provisions for staff administration Other provisions for*) Total, provisions Of which*): Deferred maintenance Unexploded ordnance removal Unpaid suppliers invoices Risk provision regarding the Hamburger Aluminium Werke Compensation and reimbursement/replace ment measures Relocation of the Petroleumhafen [petroleum port] Additional traffic rebate Stiftung Lebensraum Elbe [Elbe Habitat Foundation] (Soil) disposal costs, Eurogate 14,627 10,019 5,829 5,000 4,638 3,500 2,500 1,544 1,300 1,300 7,098 5,162 5,000 4,638 3,050 2,000 0 1,300 31.12.2009 TEUR 97,810 15,582 15,722 50,532 179,646 31.12.2008 TEUR 89,922 17,489 13,934 37,550 158,895 In particular, the tax provisions include provisions for land tax (TEUR 15,482). The provision for deferred maintenance includes TEUR 13,500 for dredging work in the river Elbe. As the neces sary technical requirements were not met, some approvals had not been granted and weather conditions were adverse, the dredging work could not be carried out. For the first time, the HPAs balance sheet shows the item provisions for the Stiftung Lebensraum Elbe [Elbe Habitat Foundation] to the amount of TEUR 1,544. The HPA will likely be obligated to pay, from March 1, 2009 onward until further notice, 4% of the income generated from port fees to the foundation Stiftung Lebensraum Elbe, which is in the process of being established.

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A n n u a l F i n a n c i a l S tat e m e n t s

Liabilities
Falling due on: 31.12.2009 in TEUR Liabilities Of which amounts falling due <1 year Bank loans and overdrafts Trade creditors Amounts owed to the FHH and group undertakings Other liabilities Total liabilities 186,153 23,004 3,747 42,100 255,004 142,612 15,793 2,865 49,355 210,625 45,235 23,004 3,747 29,758 101,744 9,382 15,793 2,865 49,188 77,228 Of which amounts falling due >5 years 101,671 0 0 97 101,768 96,483 0 0 111 96,594

31.12.2009 31.12.2008 31.12.2009 31.12.2008 31.12.2009 31.12.2008

The amounts owed to the Free and Hanseatic City of Hamburg are mainly made up of the purchase prices paid for several plots of land. The HPA acquired the plots of land based on the law of obligations; the Free and Hanseatic City of Hamburg paid the purchase prices. The other liabilities include TEUR 41,000 for compensation payments in connection with relocation costs incurred for the western port expansion. In the financial year, all plots of land within the port area held by the HPA were com pletely resurveyed, which significantly improved the database used to calculate the real property acquisition tax as well as the land tax. Both types of taxes have been as sessed temporarily only so that the tax provisions adequately consider the expected future liabilities from the commercial point of view.

Other financial obligations

The other financial obligations of the HPA not shown in this balance sheet amount to TEUR 166,711 for 2010 (previous year: TEUR 139,610). These are contractual obli gations from tenancy, lease and maintenance agreements amounting to TEUR 8,810 and from purchase commitments at TEUR 157,901. The other financial obligations to the amount of TEUR 3,242 are owed to group under takings for 2010. They can mainly be attributed to tenancy contracts.

Derivative financial instruments

The HPA has taken up a loan at variable terms amounting to EUR 70.0 million. The loan will be called off every October 1st, in four equal annual instalments, each amounting to EUR 17.5 million. On the call-off date, EUR 52.5 million of the loan had been claimed. In order to secure the loan interest rate in the long term, an interest rate swap agree ment on the total loan sum lasting over the entire loan term has been entered into. The current market value of the interest rate swap as of December 31, 2009 amounts to TEUR -3,555. It has been determined on the basis of generally accepted valuation methods (mark to market). As the transactions based upon are closed items, there was no need for making provisions. On September 30, 2009, parallel to the interest rate swap, further loan instalments were repaid. The total loan amount due as of December 31, 2009 amounted toTEUR 50,730.

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4. Notes to the Profit and Loss Account Classification of the turnover:

Overview of the turnover development 01.01.2009-31.12.2009 TEUR Rental income from land held Rental income from quay walls Other rental income Total rental income Port fees (incl. other income from port operations) Income from the port railway Elbtunnel fees Fees Income from the supply of maintenance and other services Total turnover 56,451 12,133 4,006 72,590 41,731 11,652 272 3,093 5,523 134,861 01.01.2008-31.12.2008 TEUR 53,082 12,144 4,001 69,227 40,459 11,211 356 3,390 5,005 129,648

Reversal of / posting to special item for investment subsidies

In the 2009 financial year TEUR 29,220 (previous year: TEUR 38,268) were appropri ated to the special item for investment subsidies, while TEUR 19,831 (previous year: TEUR 20,245) were reversed and recognised as income.

Income / expenses unrelated to the accounting period

The income unrelated to the accounting period, which is of non-subordinate impor tance, amounted to TEUR 12,741 (previous year: TEUR 6,966). It is mainly income from the reimbursement for the sediment trap near Wedel to the amount of TEUR 4,282, income generated from the additional charge of land lease fees amounting to TEUR 3,778 as well as from the reversal of provisions amounting to TEUR 3,341. The expenses unrelated to the accounting period amounted to TEUR 6,151 (previous year: TEUR 924) and were for the most part due to the obligation to repay subsidies granted by the FHH that were not used up on the closing date.

Auditors Fees
The fees entered as expense in connection with the auditors for the 2009 financial year amounted to TEUR 75 for the annual audit and TEUR 25 for other auditors services.

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5. Other Information Information on the bodies of the Hamburg Port Authority AR Supervisory Board Members:
Axel Gedaschko Chairman of the Supervisory Board Prses [President] of the State Ministry for Economic and Labour Affairs, Free and Hanseatic City of Hamburg Dr. Robert Heller Deputy Chairman of the Supervisory Board Staatsrat [State Secretary] of the State Ministry for Finance, Free and Hanseatic City of Hamburg Frank Horch Prses [President] of the Hamburg Chamber of Commerce Dr. Horst-Michael Pelikahn Senate Director of the State Ministry for Urban Development and the Environment Heinz-Walter Fuchs Employee Representative of the HPA Retired as of October 3, 2009 Dr. Rdiger Grube Chairman of the Board of Directors of Deutsche Bahn AG, Berlin (as of May 1, 2009) Member of the Board of Directors of Daimler AG, Stuttgart (until April 30, 2009) Chairman of the Board of Directors of EADS (until April 30, 2009) Retired as of April 20, 2009 Bernhard Lokoschat 2nd Chairman of the Staff Council of the HPA Retired as of October 3, 2009 Sandra Orth Employee Representative of the HPA Heinz Papenhagen Merchant Retired as of November 10, 2009 Rolf Kirchfeld Former Board Member of Vereins- und Westbank AG, Hamburg Appointed June 30, 2009 Claudia Schick Employee Representative of the HPA Elected as of October 4, 2009 Rolf Schuberth Employee Representative of the HPA Elected as of October 4, 2009 Ian K. Karan Managing Director of CAPITAL Intermodal GmbH, Hamburg Appointed as of November 11, 2009

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Management Board
Mr Jens Meier Chairman of the Management Board Mr Wolfgang Hurtienne Managing Director since August 1, 2009 Total compensation of the supervisory board and management board The total compensation of the management board amounted to TEUR 376 of which TEUR 282 is a fixed and TEUR 94 is a result-oriented component. The members of the supervisory board were paid meeting attendance fees amounting to a total of TEUR 3 (previous year: TEUR 3). Transparency On December 17, 2009 the management board and the supervisory board de clared that the provisions as set forth in the Hamburg Corporate Governance Kodex (HCGK), the observation of which is the responsibility of the management board and the supervisory board (items 3 to 7 of the HCGK as well as their subitems), have been adhered to. The following items have been deviated from: 4.2. Contracts con cluded before the codex took effect continue to be valid in their original form. The financial statements including the appendix, the directors report as well as the Entsprechenserklrung [declaration of conformity] will be published on the website of the institution. Employees On average the HPA employed a total of 1,742 persons (previous year: 1,677). Of them were: 195 civil servants (previous year: 199) and 1,547 blue- and white-collar workers (previous year: 1,478). Of the total workforce 94 employees were part-time staff (previous year: 80). Group relationships The annual financial statements of the Hamburg Port Authority will be included in the consolidated financial statements of the Free and Hanseatic City of Hamburg, Hamburg. The consolidated financial statements will be published on the internet. Hamburg, 31st March 2010

Jens Meier Chairman of the Management Board

Wolfgang Hurtienne Managing Director

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A n n u a l F i n a n c i a l S tat e m e n t s

Auditors Opinion Financial Statements

We have audited the financial statements which comprise the balance sheet, the profit and loss account as well as the appendix including the accounting records and the directors report of the Hamburg Port Authority Anstalt des ffentlichen Rechts [Insti tution under Public Law], Hamburg, for the financial year from January 1st to December 31st, 2009. The accounting records as well as the preparation of the financial statements and the directors report in accordance with the applicable German commer cial law and the supplementary provisions of the Act on the Establishment of the Hamburg Port Authority of October 1, 2005 are the responsibility of the legal representatives of the Institution under Public Law. Our responsibility is to express an opinion on the financial statements, taking into account the accounting records, and on the directors report based on our audit. We conducted our audit of the financial statements in accordance with 317 of the HGB [German Commercial Code] and in accordance with the auditing standards generally accepted in Germany issued by the Institut der Wirtschaftsprfer [Institute of German Auditors, IDW]. These standards require that we plan and perform the audit so as to obtain all the information and expla nations which we consider necessary in order to provide us with sufficient evidence to give reasonable assurance about whether the financial statements are free from material misstatements and inconsistencies, whether caused by fraud or other irregularity or error, and whether the financial statements, prepared in accordance with the generally accepted accounting principles, and the statement on the net assets position, financial position and earnings situation of the institution reflected in the directors report give a true and fair view. When determining the course of our audit, we have taken into account the knowledge on the business activities and the economic and legal environment of the Institution under Public Law as well as the potential for possible errors. An audit includes the examination, mainly on a test basis, of evidence relevant to the effectiveness of the accounting principles used with regard to the system of internal controls as well as of evidence relevant to the amounts and disclosures in the ac counting records, the financial statements and the directors report. It also includes an assessment of the significant estimates and judgements made by the directors/legal representatives in the preparation of the financial statements and whether the ac counting policies are appropriate to the institutions circumstances, consistently applied and adequately disclosed. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements and the directors report. We believe that our audit provides a reasonable basis for our opinion. Based on our audit nothing has come to our attention that causes us to believe that the financial statements have not been properly prepared. In our opinion, based on the information obtained during our audit, the financial statements have been properly prepared in accordance with the relevant legal and regulatory requirements as well as the supplementary provisions of the Act on the Establishment of the Hamburg Port Authority of October 1, 2005, and they give a true and fair view of the net assets position, financial position and earnings situation of the Institution under Public Law in accordance with the generally accepted accounting principles for the year then ended. The directors report is consistent with the financial statements, gives a true and fair overall view of the state of affairs of the Institution under Public Law and adequately presents the prospects and risks of the future development. Hamburg, 28th April 2010 Ernst & Young GmbH Wirtschaftsprfungsgesellschaft [Registered Auditors] Kreninger Karowski Wirtschaftsprferin [Auditor] Wirtschaftsprfer [Auditor]

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The Hamburg Corporate Governance Kodex

The Hamburg Corporate Governance Kodex (HCGK) is a code that defines the du ties and standards relevant for the activities and interaction of members/partners, supervisory boards and the managing directors of Hamburgs public institutions. The HCGK is seen as a contribution to and impulse for the continuous management improvement in Hamburgs public institutions. Furthermore, the code has been de veloped to ensure greater transparency within these institutions and thus strengthen public trust in decisions taken by administrations and politics.

Publisher Hamburg Port Authority AR Neuer Wandrahm 4 20457 Hamburg Telephone +49 (0) 40 42847-0 Telefax +49 (0) 40 42847-2325 E-mail: info@hpa.hamburg.de Internet: www.hamburg-port-authority.de Concept, text and design 3F Kommunikation Photographs Frank Pusch Sebastian Engels Fotografie Ingenieurbro Grassl (p. 12-13) Marco Zelmer, Bildwerk 54 DB AG/Max Lautenschlger (p. 30-31) Architektenbro Oskar Lehmann, abstract (p. 52-53) HHM/Christian O. Bruch/VISUM HPA-photo library Copyright Hamburg Port Authority July 2010 This annual report has been prepared for the convenience of our English-speaking readers. It is based on the German ori ginal. In the event of any inconsistency or conflict between the German and the English version, the German version shall prevail.

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Hamburg Port Authority Neuer Wandrahm 4 20457 Hamburg Telephone +49 (0) 40 42847-0 www.hamburg-port-authority.de