Once again, the Port of Kolding has managed to beat its own turnover record. Despite the good result, the bottom line is still in the red. This is because the decision to close the port is already having an impact.
2018 was an eventful year for the Port of Kolding. Around 500 cargo ships and 1,255,000 tonnes of goods gave the Port of Kolding a turnover of DKK 32 million. The port was thus able to set a new turnover record for the third year in a row. In addition, the Port of Kolding celebrated its 175th anniversary, and shortly afterwards employees and companies at the port received the message that the city council had decided to close the commercial port by 2043.
– It may seem like a long time horizon, but it already has consequences now that the City Council’s decision is reflected in the financial results for 2018, says port director Anders Vangsbjerg Sørensen.
Good cooperation and focus on circular economy are the reason for progress
The main reasons for the record turnover are the good cooperation with the port’s 17 business companies, which include the three shipping agents Grau Shipping, Svane Shipping and H. Daugaard.
– The Port of Kolding owns the port areas, the cranes and provides the necessary facilities, but it is usually the three shipping agents who are responsible for the connection to the carriers and many other players. If the shipping agents do well, the Port of Kolding will do well and vice versa, explains Anders Vangsbjerg Sørensen.
In addition, the Port Authority’s focus on selected types of cargo in the circular economy and the focused strategy to create a leading specialised port have also been instrumental in the 2018 revenue record.
– At the Port of Kolding, we would have liked to continue the development for another 175 years, but given that the 17 companies that currently have their employees, assets and activities on the port’s premises will be out of business in just under 25 years, it may not make sense to continue the development we have been working on, says Anders Vangsbjerg Sørensen.
Closure plans affect the accounts
The decision to dismantle the commercial port came in November, after the port had presented an overall plan for how the port could develop in the coming years to become one of the country’s leading specialised ports with a special focus on sustainability and circular economy.
The presentation of the future plans was preceded by a political mandate to draw up a plan for how the port’s potential could continue to be fully exploited in the future and ensure growth with more jobs for the city and the port.
In 2018, the Port of Kolding therefore invested many resources in preparing a master plan and carrying out preliminary studies for a planned expansion of the port areas, including drilling tests, engineering calculations, measurements, etc.
– These costs are normally booked as investments in port facilities with ongoing depreciation, but now that the plans will not be implemented due to the decision of Kolding City Council, these costs must be transferred to operations according to the accounting law. This is a burden on the year’s accounting result in 2018, and it is the reason why we are coming out with a negative result this year,” says Anders Vangsbjerg Sørensen, who estimates that the result would otherwise have been a nice million profit.
– Now we come out of 2018 with a deficit of 700,000 DKK. The first loss in modern times, says Anders Vangsbjerg Sørensen, who still looks back on 2018 with joy and pride at another turnover record and a healthy operation.
From development to settlement
Some elements of the master plan could be used despite the City Council’s decision to close the port, but it may be difficult to maintain growth and jobs at Kolding Port in the future, acknowledges Chairman Asger Christensen.
– With the city council’s decision, the Port of Kolding’s task in the coming years will be to dismantle rather than develop the commercial port, says the chairman.
For more information:
Anders Vangsbjerg Sørensen
+45 20 60 79 66
In the photo, from left:
Peter Grau (Grau Shipping), Palle Mogensen (H. Daugaard), Jesper Hansson (Svane Shipping) and Anders Sørensen (Port of Kolding).