Dear ladies and gentlemen, dear friends of the company,
2009 was a challenging year. The global economic crisis affected the transport market and Hupac’s transport network along with it. Up to 25% falls in volume led to high overcapacities and initially tore large holes in the budget. Thanks to energetic restructuring measures, Hupac managed to break even by the end of the year and was able to show investments amounting to CHF 56 million.
Despite the difficult general conditions, this was not a lost year en route to our goal. We have shown that we can act quickly and decisively, even when faced with adverse market conditions. We have reduced the frequency of trains, adapted to demand and found solutions for appropriate utilisation of our fleet of rolling stock. Further crisis measures included flexible resource planning in cooperation with the railways, postponement of non-priority investments and the introduction of short-time working at the terminals. Thanks to support from the Swiss Federal Office of Transport, we were able to introduce a stimulus package for transalpine traffic through Switzerland.
Powerful crisis management was a decisive factor in the positive result for the 2009 financial year. I would like to thank all employees who have worked hard and with great commitment for this extraordinary teamwork.
Our most important goal is customer satisfaction – our actions in the economic crisis have also been guided by this motto. On the tightrope walk between profitability and network maintenance, Hupac decided in favour of the latter in many cases. Customers can count on a stable, high performance transport network and consistently high quality advice and service. What’s more, Hupac ventured into a number of new markets last year, such as Spain, Portugal and Romania, and also developed existing segments, such as the transport of 4-metre trailers via Lötschberg and Brenner.
Significant advances were also made in the improvement of productivity. Hupac trains today run better loaded than before the economic crisis. A large number of processes in the terminals, in fleet management and administration have been simplified and standardised. A virtue has been made out of necessity, and so Hupac is now slimmer and stronger than before the crisis.
Above all, Hupac has continued to invest in its own resources such as rolling stock and terminals. January 2010 saw the operational handover of the HTA Hupac Terminal Antwerp. The Combinant Terminal, built by Hupac in cooperation with BASF and IFB, began operations in March 2010 while the expansion of the existing terminal facilities in Busto Arsizio-Gallarate is progressing according to plan.
After all, the crisis has sharpened the focus on the essentials. Innovations have been introduced on a number of fronts - they will help to shape the future of Hupac. One important approach is the “Customer Focus” project, which is reworking organisational structures and processes to make them more customer focused. Fleet management is also innovative, with rolling stock management now brought in-house under new, open framework conditions. The “CompoFamilies” innovation project begun during the year is intended to increase the efficiency of wagon circulation by introducing homogenous composition families.
Furthermore, we will embark on new routes with our rail partners. With a range of rail companies such as SBB Cargo, DB Schenker Rail, Trenitalia, Crossrail and others, we are investigating how we can make our cooperation even closer, with greater synergies and efficiency. The possible scope ranges from planning optimisation through to possible stake-holdings, as in the case of the new SBB Cargo international traction company to be founded soon.
It’s clear to see, Hupac is looking to the future and identifying market prospects according to a clear strategy. We have a dream: rail will be the primary means of transport for goods over long distances in Europe by 2020. A significant driver is the concept of Green logistics: scarcity of resources, increasing environmental awareness among customers and government regulations have led the company to change their thinking. However, three conditions need to be met if rail freight transport is to make the jump ahead:
- Investments in rail infrastructure must be increased and linked with each other across Europe
- Real competition must enter the rail markets thanks to market liberalisation and functioning regulation
- Fair competition conditions must exist between road and rail transport.
For example, the extension of the access line to the NEAT tunnel is of central importance. The Gotthard base tunnel is being constructed to take the ever more important high profile trailers, but many access lines in Switzerland will not be ready until 2030 or later. High profile capacity is already exhausted on the Lötschberg line – particularly by Rola. Alongside the tunnel profiles, infrastructure adaptation to suit 750 metre trains is also essential if we are to be able to keep up with competition from road transport.
2010 is also likely to be a difficult year. In the first quarter we did exceed our planned target of 8% growth, but economic recovery is still likely to be slow. That is why we are going to continue the measures that have led us to success in 2009: strict cost control, selective investments, measures to increase efficiency and competitiveness. In contrast, the market will benefit from numerous product innovations. In the first few months of the year, a number of new connections were introduced, including the trains Rotterdam <=> Verona, Cologne <=> Novara, Curtici <=> Bradu de Sus, Antwerp <=> Ludwigshafen, Antwerp <=> Verona and
Busto Arsizio <=> Barcelona.
At this point I would like to take the opportunity to thank the shareholders of the Hupac Group, the customers, business partners and public institutions for their confidence and support for our plans. And once again, our thanks go to the staff who have managed to produce extraordinary results under difficult conditions over the last year. We are confident that we are well equipped to meet the challenges before us and we look forward to travelling along that route with you. |
