OTL Group plans to modernise terminals in Gdynia and Świnoujście

2024/04/29 at 7:00 AM

The OTL Group plans to modernise and expand its terminals in the ports of Gdynia and Świnoujście. In 2023, the consolidated revenues of the OTL Group amounted to 592.3 million zlotys in 2023 (+30.09 per cent year-to-year), net profit amounted to 158.12 million zlotys (+13.5 per cent y/y), and EBITDA – as a result of the increase in the results of port and forwarding activities – amounted to 191.63 million zlotys (+32.25 per cent y/y).

“Ports must become more and more modern and ecological. Therefore, over the next three to five years, we plan to allocate significant amounts of money to modernise and expand our terminals, increasing their reloading capacity, improving their efficiency, and adapting them to handle new commodity groups. Last year, we transhipped a total of 7.1 million tonnes of bulk and general cargo, and we ended the 2023 year, which was exceptionally demanding and changeable, with double-digit increases in sales and profits,” says Kamil Jedynak, president of OT Logistics.

“In March 2023, we completed the several-year internal restructuring process, including repayment of all bond obligations, thereby reducing the interest debt of the OTL Group to zero. We also sold the package of shares held by OT Logistics in Luka Rijeka d.d., which, apart from ending all legal disputes and obligations related to the involvement of OT Logistics in Croatia, enabled the Group to fully concentrate on the Polish market and develop its operations in the country to the extent that allows us to fully use our current potential,” adds Kamil Jedynak.

In 2023, OTL Group’s revenues increased in all business segments. Due to the handling of maritime freight and rail forwarding (a derivative of the transhipment of bulk goods), revenues from forwarding activities increased the most, by as much as 62 million zlotys (almost 39 per cent year-to-year), which accounted for nearly 37 per cent of all revenues. The group’s dominant port activity (59 per cent of total revenues) increased by almost 26 per cent year-to-year. In addition to transhipment, revenues from storage and other additional services also contributed to this. In turn, revenues from railway activities increased by 26.45 per cent year-to-year and from hydrotechnical activities by 15.54 per cent year-to-year. The results were positively influenced by, among other things, a surplus of grain in the Polish market, also from Ukraine, which with favourable sales markets resulted in a significant increase in grain exports from Poland.

“After a strong increase in demand for transhipment of coal and iron ore at OT Port Świnoujście in 2022, which was the result of the outbreak of the war in Ukraine and changes in supply chains, 2023 brought lower transhipment of bulk goods in this terminal by 23 per cent y/y. In turn, in 2023, the transhipment of bulk goods at OT Port Gdynia increased by 51 per cent y/y, mainly due to agro products, and the transhipment of general cargo decreased by 19 per cent y/y, as a result of trade union strikes in Finland and the reduction of ferry calls. However, despite the decline in some volumes, the OTL Group improved its financial results and liquidity. We implement investments in accordance with our plans, i.e. we modernise and invest in new transhipment equipment, which improves our competitive position,” says Grzegorz Zubrzycki, vice president of OT Logistics.

The market factors negatively impacting the industry included: significantly lower demand for coal imports, a decline in fertiliser imports and a reduction in steel production in our country due to rising energy costs. Poland’s GDP increased by only 0.2 per cent last year.

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