Port of Aalborg raises expectations after strong financial first half

Port of Aalborg experienced a promising financial start in 2021. The port’s half-year figures saw a 9 percent increase in revenue and a 20 percent rise in profit before tax compared to 2020.

Port of Aalborg’s figures for the first half of 2021 stretched beyond expectations. Therefore, the group now expects profit on ordinary activities for the year to grow from DKK 45-55 to DKK 55-60 million.

– We experienced many challenges in 2020, mainly due to coronavirus pandemic complications. However, despite these challenges, we managed to maintain our top line and even increase our bottom line. It’s extremely satisfying to know in 2021 we will not only continue to deliver on our initial goals but also perform better than expected. We believe our company has now landed in a new normal. We put the pandemic behind us but still utilize what we learned from it, such as increased digitization and work-from-home opportunities. Despite a difficult period, we managed to deliver on our ambitious goals, says Port of Aalborg’s chairman and Aalborg Municipality’s mayor, Thomas Kastrup-Larsen.

According to Thomas Kastrup-Larsen, these positive financial developments are the result of several years’ investment in the group’s business park in the eastern part of Aalborg. The business park not only offers growth opportunities to existing companies but also attracts exciting new businesses to the municipality.

– Our investments make Aalborg an attractive place to run a business. We hope to create more employment opportunities and inspire overall growth within the municipality. We’re pleased to announce existing companies in our business park continue to thrive and grow. We also have several new companies choosing to operate with us in Aalborg East, says Thomas Kastrup-Larsen, continuing:

– However, we have yet to reach our development goals. We aim to continue implementing ambitious development strategies throughout 2021 and invest DKK 2 billion by 2030. Our goal is to attract 10-15 large domestic and international companies, as well as create 5,000 jobs in Aalborg.

As part of its development strategy, Port of Aalborg invested in digitization and green transformation in the first half of 2021. More specifically, the port is developing complete digitization of its work processes and physical facilities, also referred to as a digital twin. The monitoring of its CO2 footprint in connection with all future construction and facility operations will help minimize environmental damage.

Rail freight continues to grow

Increased rail traffic continues the port’s rapid development

– We almost doubled the number of freight tonnes shipped compared to the previous year and we don’t expect it to stop here. We believe there’s still an enormous amount of untapped potential in transporting goods by rail, which is considerably greener and more sustainable than transporting goods by road. Therefore, we will continue investing in our railway infrastructure, which has already been expanded with a brand-new terminal area, says Claus Holstein, CEO at Port of Aalborg.

While progress has been made on the port’s rail transport, the number of ship calls is on par with the first half of 2020, which is well below expectations due to the cancelled cruise season.

– Additionally, the first half of 2021 continues to be characterized by lower fuel consumption as a direct result of COVID-19. This has led to decreased oil product imports, a chaotic market for smaller ships, and reduced half-year figures as a result of lower freight volumes for soil, rock, coal, grain, and feed. However, we do expect freight volumes to increase throughout the latter half of 2021, Claus Holstein explains.

Large area sales and popular leases

The half-year accounts also indicate increased activity within the port’s areas and properties. This activity is becoming increasingly important to the Port of Aalborg due to a sharpened focus on its business park in Aalborg East.

– We sold 31,869 square meters of property in the first half of 2021 and expect further area sales before year’s end. However, the available capacity for offices, warehouses, and production facilities remains low despite constantly building new ones. The current occupancy rate stands at roughly 95 to 100 percent. Our only concern regarding construction is the rising price of materials, which continues to put pressure on the entire construction industry, Claus Holstein explains.

Port of Aalborg also initiated the construction of an 1,800 square meter warehouse building alongside the development of warehousing and logistics facilities across 16,000 square meters of land. The port also purchased and leased an 8,000 square meter warehouse building and recently unveiled plans to significantly expand the transport center on the easter part of the harbour. The expansion will include 90,000 square meters of warehouse capacity and brand-new terminal areas. Expansion is set to be completed within the next three years.

For further information please contact:

• Thomas Kastrup-Larsen, mayor and chairman of the board, Port of Aalborg A/S, 99 31 15 00 and tkl-byraad@aalborg.dk
• Press service: Maja Thordahl Schou, Head of Branding & PR, Port of Aalborg A/S, tlf. 22 61 83 08 and mts@portofaalborg.com