Port of Aalborg maintains multimillion profit expectations in 2020 despite corona

Even though the first half of 2020 was characterised by unpredictability and losses for many Danish businesses, Port of Aalborg remains optimistic.

Focus on development and investment
– The result for the first half of 2020 is a profit of DKK 23.2 million, which we consider satisfactory. Turnover was DKK 107.9 million, just DKK 0.9 million less than last year, which was an exceptionally good record year. However, because it was possible to adjust a number of expense items, the results show an increase of approximately DKK 4.5 million in operating profit compared to 2019, says Chairman and Mayor, Thomas Kastrup-Larsen.

Although the current unpredictable global situation may tempt companies to only operate from a short-term perspective, Port of Aalborg is looking to the future.

– In the first half of 2020 we initiated investments in expanding our existing Multi Terminal and a new railway terminal with a larger auxiliary site to accommodate increasing demand for storage space and freight transport by rail. Moreover, lease agreements have already been signed for both areas, says Thomas Kastrup-Larsen.

In 2020 we also commenced construction of a further four warehouses and preparation of the innovative site, Ankeret (the Anchor) which is a part of Green Hub Denmark. The first plot has been sold to the chocolate company Aalborg Chokoladen, and further building projects are expected to commence during the second half of 2020.

– Due to the streamlining of operating costs and the numerous development and construction projects, for which we are already experiencing demand, we maintain our expectations for a positive pre-tax profit of DKK 50-55 million in 2020, says Thomas Kastrup-Larsen.

Development of a digital twin
The long-term focus on development also influences the company internally. Port of Aalborg is currently developing a so-called digital twin, which entails a complete digitization of the port’s operations and physical plant, so all conditions are detailed by technical data and measurements.

– Now more than ever, we are convinced that the digitalisation of businesses is crucial in the future, and if service levels and development shall be maintained, e.g. during the coronavirus, then the digital twin will be an invaluable tool for us. We must be able to transition from the physical to the digital domain quickly and without costs or loss of efficiency and development opportunities, says Claus Holstein, CEO of Port of Aalborg.

In addition to the internal systems, Port of Aalborg is also participating in large external projects for the overall automation of shipping and freight handling. This includes collaboration with Aalborg University and the Centre for Logistics and Cooperation concerning an autonomous harbour bus. Port of Alborg is also participating in the AEGIS large EU project for the automation and digitalisation of port operations and short-sea shipping.

Social and societal responsibility
While Port of Aalborg is emerging satisfactorily from the first half of 2020, this is not the case for all the businesses in the region, and at Port of Aalborg we are aware of our responsibility in this regard.

– As one of the city’s largest industrial actors we are obliged to assume a social and societal responsibility to help promote positive development in the region, says Claus Holstein and continues:

– In 2020 we have worked tirelessly to strengthen and develop our organised CSR efforts, and based on the UN’s 17 sustainable development goals, we work with CSR as a management discipline and philosophy in both operations and development. The aim is to create a sustainable society with favourable employment opportunities, growth, partnerships, innovation, confidence and decent living conditions for everyone. We believe the path to this is through cooperation between the city, industry, research and the port. That is why partnerships is a keyword for us.

In 2020, Port of Aalborg has amongst other initiatives commenced a formal collaboration with University College of Northern Denmark and entered into a partnership for the establishment of Aalborg University Business School and the new English language news media www.MyAalborg.com.

For further information, please contact:

• Thomas Kastrup-Larsen, Mayor of Aalborg and Chairman of Port of Aalborg A/S, +45 99 31 15 00 and tkl-byraad@aalborg.dk
• Press service: Maja Thordahl Schou, Head of Branding and PR, Port of Aalborg A/S, tel. +45 22 61 83 08 and mts@portofaalborg.com