Felbermayr Group, Haeger & Schmidt Logistics and PSA Antwerp entered into a joint venture on July 14, 2021, for the joint operation of PSA Breakbulk in Antwerp. Dennis Verbeeck, Managing Director of PSA Breakbulk, and HSL CEO Heiko Brückner talk about goals, the business concept and investments in an interview in our magazine Insight.
The PSA Breakbulk joint venture is four months young. What has happened since then?
Dennis Verbeeck: After a very quiet year 2020 due to the Covid-19 pandemic situation, steel volumes at our terminal in Antwerp are growing rapidly. We are expecting an increase of roughly 60 percent for 2021. Apart from the challenging day-to-day business, we have been developing our commercial and infrastructure strategy together with our joint venture partners Felbermayr and HSL. Personally, I am very happy to be a member of the Felbermayr/HSL family and looking forward to work more closely together with the other companies of the Felbermayr group.
How did you experience the start of the joint venture?
Heiko Brückner: Our greatest asset is the common values that we all bring to the joint venture. Our cooperation is based on trust, strength and the high level of experience of the shareholders involved. We have all known each other for a long time and value the companies’ respective expertise in complementary business areas. Our partners can rely on us to drive the joint venture forward together with the strong management of PSA Breakbulk.
What goals have you set for the joint venture?
Verbeeck: PSA Breakbulk historically is based at the north side of the Churchill dock on the Antwerp right-bank, where it operates the Steel Terminal and the former Coil Terminal, both entities absorbed into the joint venture. Both terminals have traditionally been heavily focused on exporting steel, which made the business model vulnerable to global market changes and political influences. The joint venture enables us to diversify cargo, our customer base and develop integrated freight solutions. By combining seaport handling capabilities, strong hinterland presence and heavy lift handling equipment, we will be able to build holistic transportation concepts for project cargo, which we plan to market under the product name “Project Cargo Ecosystem.”
What were the reasons for Felbermayr/HSL to participate in the PSA Breakbulk joint venture?
Brückner: We already managed the Coil terminal together. From this experience, we have seen for some time the possibilities of synergies that we can achieve by bundling the activities of the Coil terminal and Steel terminal. Through the joint venture, we are leveraging this potential, making us one of the leading steel hubs in Antwerp. Each of the partners contributes with his know-how, enabling us to map out interesting and forward-looking solutions for shippers. It’s a win-win-win situation: through PSA Antwerp, we gain direct access to an international seaport. In return, together with the Felbermayr Engineered Solutions division, we will further expand our position in the project cargo and heavy lift market in the port of Antwerp and furthermore we make our hinterland network available for integrated cargo solutions.
What capacity does the joint venture have and what volume is handled at the terminals?
Verbeeck: Our steel terminal at the north of the Churchill dock covers an area of 26 ha and a quay length of 1.5 kilometers. There, we expect to handle more than 2.3 million tons on the water side in 2021. As part of the joint venture, we have acquired an additional concession area of 14 ha and approximately 600 m quay length on the south side of the Churchill dock, primarily for project and heavy lift cargo.
You have invested in equipment and in the organization of Churchill Dock, where PSA Breakbulk is located. What does that mean in concrete terms?
Verbeeck: In recent years, we have already invested in the full top-lifting concept to automate the handling of steel coils as much as possible in order to further increase quality and productivity. For the new heavy cargo terminal at the Churchill dock South terminal, we are planning to invest approximately EUR 11 million in the “Project Cargo Ecosystem” concept. This includes a heavy lift crane with a capacity of 750 tons, 20,000 m² of warehouses and a heavy lift enforced surface, as well as capex spendings on safety and sustainable energy.
How do you assess the Antwerp location for the steel business in perspective?
Brückner: Antwerp is the leading location for the steel business in Europe. It is clear that the Belgian seaport is further expanding and consolidating this position. In the coming years, Antwerp will continue to develop its business with its customers and partners. That’s why we see this commitment as a joint investment in the future.