Record handling volumes, expanding the project and heavy-lift cargo business, flanked by numerous investments – this aptly summarises PSA Breakbulk’s development a year down the line from the joint venture between the Felbermayr Group, Haeger & Schmidt Logistics (HSL) and PSA Antwerp. Dennis Verbeeck, PSA Breakbulk General Manager, and Stefan Hütten, HSL’s CDO, showcase the development and prospects of the company in an Insight interview.
Interviewpartner: Dennis Verbeeck (left) & Stefan Hütten (right) Image source: privat
How did PSA Breakbulk’s business go in the first year of the joint venture?
Dennis Verbeeck: In the first year of our cooperation, PSA Breakbulk handled record volumes of almost five million tons in the steel business. Our warehouse capacities were also maxed out. Neither of these successes can be taken for granted, particularly against the backdrop of the supply chain disruptions and labour shortages we have to deal with. In this environment, we were nevertheless able to keep our service model running smoothly for our customers and even expand it.
Stefan Hütten: We have made use of the new possibilities, particularly with regard to integrating HSL’s hinterland network, including inland waterway transport and the steel logistics hub in Duisburg. Apart from steel, we succeeded in taking new cargo streams under contract, importing organic rubber to serve Europe’s tyre producers, for instance. Switching to Breakbulk shipping assisted these producers in securing supplies for their production facilities at reasonable price despite soaring container rates.
Could you give us an example of a flagship project handled through the terminal in 2022?
Verbeeck: Chemicals company Ineos is currently in the process of building Europe’s most sustainable ethylene cracker facility which goes by the name of “Project One”, with investments totalling around four billion euros. Since September of this year, PSA Breakbulk has provided an exclusive marshalling and consolidation yard for the new Ineos project site. The building site will be supplied just in time with the requisite materials from our terminal over a period of a good four years.
A new crane can be admired on the terminal since November. Could you give us some key data, and what added value does this bring to the terminal?
Hütten:
Installing the new crane in Antwerp closes a gap in handling heavy lifts and out of gauge cargo weighing between 200 and 750 tons. Investments of more than €1.5 million were initially made in reinforcing the floor base (ground pressure capacity 95t/m²) so as to create the preconditions for hosting this giant. The project was implemented together with our shareholder the Felbermayr Group which is specialised in installing and operating heavy cranes.
This investment forms an integral part of our “Project Cargo Ecosystem” marketing concept for the project business. The aim of this project is to offer integrated transport concepts by bundling handling competencies in the seaport, strong presence in the hinterland and equipment for heavy-lift cargo handling.
What investments are on the cards for 2023?
Verbeeck: We have reinforced the physical split between our two core businesses of project cargo and steel transport. The Churchill South Terminal is dedicated to project cargo while steel logistics is handled in the Churchill North Terminal. With a view to rolling out the Project Cargo Ecosystem on the Churchill South Terminal, we will be investing more than two million euros in buildings and equipment in order to accommodate sensitive, high-value freight. So, value added, also for the Felbermayr Group: Along with its inland terminals, the shareholder now has direct access to a specialised deep sea project and heavy cargo terminal.
Furthermore, a 20,000 square metres warehouse will be built together with external partners on an asset-light basis next to the already existing industrial goods packaging services. Apart from this, the company is investing in a new TOS system to bring itself up to speed in digitalising the supply chain. On the Churchill North Terminal, capex of around €1.5 million has been budgeted for repair and maintenance work and relocating the admin gate.
How does expanding the terminal generate new business for PSA Breakbulk?
Verbeeck: Strategically speaking, we are focusing on diversifying the cargo we handle, which will make PSA Breakbulk more resilient in the face of macroeconomic change. Steel will remain our core business but we also see growth opportunities in the project business, in the energy and petrochemical sector and in handling other cargo streams, for instance. To put it another way: we have the capability of meeting a wide range of requirements with our high-performance equipment.
What role does the takeover of American logistics provider BDP play for PSA Breakbulk?
Verbeeck: BDP’s global footprint, with a presence in more than 130 countries and a workforce of 5,000 employees, strengthens the position of our terminal. At the same, I believe it is a great partnership for the entire group.
Hütten: Multimodal hinterland connectivity in Germany is HSL’s core competence, while the international BDP network overseas is the key to offering integrated door-to-door concept solutions. When talking about a global network for heavy lift and project cargo, Felbermayr inland terminals in Linz, Duisburg and Krefeld are also an integral part of the overall strategy.