CEO Statement

    Focusing on growth

    For 2010 CMP reports a profit of SEK 116 million (128) on sales of SEK 675 million (733). This is an acceptable result in view of the weak market activity in the Baltic Sea region as well as internationally. It is clear that demand in those industries which affect our volumes has not yet picked up to a sufficient degree. In both Copenhagen and Malmö we have significant operations in consumer goods for the local markets, but activity in this segment is still relatively weak.

    Positive signals.

    Yet we have also seen clear turning-points in several business areas. Perhaps the clearest example of this is car transports, where volumes grew by almost 60 per cent on 2009. Car sales have increased sharply in Scandinavia and Russia, which benefits CMP. Liquid bulk volumes also expanded, and our oil handling operation in Malmö even recorded an all-time high in 2010. In cruise traffic the number of port calls declined slightly but Copenhagen has, by a wide margin, retained its position as the leading cruise ship destination in the Baltic Sea region. We have defended our revenue in this area. This is because cruise ships are becoming ever large, and CMP’s revenues are linked to the gross register tonnage of the ships that call at our cruise ship terminals. Last, but not least I would like to highlight our combi traffic operation, where goods arrive by rail, which is growing rapidly for the second year in a row. The number of units has soared, from 12,000 in 2009 to an impressive 55,000 in 2010.

    Despite the recent signs of stronger economic momentum, which have strengthened further in early 2011, we have continued our efforts to rationalise and streamline our business. In 2010 staff levels in some of our corporate functions were reduced and the same applies to our container operation in Copenhagen. We have made changes to our organisation and created a unit for Port Terminal Operations, which includes car transports, RoRo, container and combi traffic as well as break bulk and some parts of our dry bulk operations. This merger allows us to optimise the use of our technology and machinery. Improved coordination also allows us to offer our employees more varied tasks than before.

    Aiming for growth

    In recent years CMP has established strong positions in several areas, which we now intend to consolidate. Malmö has Scandinavia’s largest logistics hub for car distribution. As mentioned, volumes here have recovered, and the opportunities for growth in this type of business remain very favourable. In 2010 we concluded partnership agreements with new companies and received several new enquiries, which are expected to result in further agreements in 2011. In 2011 we will also be freeing up new space for our car handling operation, creating a further 150,000 square metres of space.

    Cruises are another growth area, where we are investing heavily for the future. Despite a slight decline in 2010, Copenhagen remains a very popular destination. This was confirmed in 2010, when the city was voted “Best Destination Experience” in an international survey. Europe is and remains an expansive cruise market, where the big shipping companies are choosing to locate an increasing share of their ship capacity. For us the positive signals are evident. Already at the beginning of 2011 we had 369 arrivals registered for our terminals in Copenhagen – an increase of 20 per cent on the year before. Growth in cruise traffic is long-term. That is why we are now investing in a new cruise ship quay, which is scheduled to be ready for the 2013 season. Project planning began in 2010 and construction is slated to begin in the second half of 2011. The quay will be both larger and more modern than today’s facilities, and will pave the way for a continued expansion in this exciting area.

    CMP’s largest investment is the Northern Harbour in Malmö, where the building of three new freight terminals proceeded according to plan in 2010. This development is a joint project with the City of Malmö and support from the EU. The Northern Harbour will quintuple our goods capacity in Malmö, as new RoRo, container and combi terminals are taken into use in 2011. First out are the RoRo and combi terminals, which open in May, followed by the container terminal in late summer. At the same time new STS crane will also be taken into use at this terminal. The decision on this investment, which will increase productivity in CMP’s container handling operation, was taken in 2010.

    The Northern Harbour will not only raise capacity significantly. The new infrastructure will also reduce CMP’s impact on the environment. The turnaround time for RoRo ships will be cut by at least half an hour compared with before. Another benefit is that a large part of the heavy goods vehicle traffic from central Malmö will disappear as goods handling moves to the Northern Harbour, which is further from the city centre. This will reduce emissions and noise pollution.

    Boosting sales

    The investments being made in Copenhagen and Malmö will thus result increase our capacity significantly. The challenge now is to fill this capacity. That is why we are devoting considerable resources to our marketing and sales work. In 2010 CMP established new contacts in the Chinese market, where businesses and investors are looking to establish a presence in Europe. We offer excellent opportunities and already serve as a logistics hub for several international firms. Our strategic location in Öresund, at the gateway to the Baltic Sea region, is a strong competitive advantage, and we also benefit from our access to new land areas at our ports on both sides of the Sound. This puts us in a strong position to conclude new partnerships with regional and global players. We will also be strengthening our sales organisation in 2011. A new position of Commercial Manager will be introduced, with the aim of giving a boost to our sales activities, which are crucial to our long-term success.

    We are confident about the future, and enjoy the strong support of our owners as we draw up our growth targets. In 2010 we concluded a new concession agreement for our ports in Copenhagen and Malmö, which runs until 2035. I view that as clear confirmation that CMP faces a bright future. It also shows that our owners believe in us and in our ability to create growth and help improve the long-term competitiveness of the Baltic Sea region.

    Johan Röstin
    CEO, Copenhagen Malmö Port