Today, Wednesday 4 September 2019, ThPA SA and the Consortium  “HILL INTERNATIONAL N.V. - ROGAN ASSOCIATES S.A.” - signed the Contract for the “Update Study and Project Management (Project Management) for the Expansion of the Marine Works Infrastructure of Pier 6”, which is part of the Mandatory Enhancements, has a total cost of €180,000,000, was undertaken by ThPA SA and includes the construction of:

• Construction of a new additional quay wall 460m long with an effective depth of at least -17,6m.
• Construction of an additional yard area, at least 300 m wide, alongside the above new quay wall.
• All the additional infrastructure work that is required for ensuring full operability of the new quay wall and the yard area.

According to the Contract, the overall duration of the project is set at 46 months and the Consortium will provide, under the supervision and final approval of THPA SA the following services:

a) Preparation and compilation of the Draft Detailed Design for the “Expansion of the Marine Works Infrastructure of Pier 6”, including the tender documents for the award of the construction of the project.

b) Project management and supervision of the construction of the above project.

The Chairman of the BoD & Managing Director of ThPA SA, Mr. Sotirios Theofanis, who signed the contract on behalf of ThPA SA stated: “ThPA SA proceeds in a rapid pace to the implementation of the Mandatory Enhancements Programme, with the major project being the expansion of Pier 6. Our goal is to launch the construction works as soon as possible in order for the Port of Thessaloniki to obtain the infrastructure required to become an international transport hub for South-eastern Europe and the Balkans thus contributing decisively to the economic growth of Thessaloniki and the broader area.  At the same time, a strategic objective of ThPA SA is a programme which is currently in progress and aims at upgrading the company equipment and improving the quality and level of services provided”.

In his turn, the Vice-President of Hill and Managing Director for Southern Europe, Mr. Manolis Sigalas, stressed: “Upgrading the port infrastructure of Thessaloniki is an investment of major importance for the city of Thessaloniki which also encourages cross-border synergies in South-eastern Europe thus enhancing significantly the growth prospects in the broader area”. It's a particular honour for all of us at Hill International to participate in such an ambitious project, and, together with the other members of the consortium, we are ready to work hard, in cooperation with ThPA SA executives and all stakeholders for its successful implementation”.

Photo 1: The Chairman of the BoD & Managing Director of ThPA SA, Mr. Sotirios Theofanis

Photo 2: The Vice-President of Hill and Managing Director for Southern Europe, Mr.  Manolis Sigalas.

Photo 3:  The Managing Director and Vice-President of the Board of Directors of Rogan Associates SA, Mr.  Antonis Mpoutatis.

The Annual General Meeting of ThPA S.A. convened today, Thursday June 26, 2019 in Thessaloniki and approved the Annual Financial Report for the Fiscal Year 2018 and the distribution of Dividend of € 0.57 per share. In the General Meeting, the 79.44% of the Shareholding Capital was represented and the activities and the Financial Results for the Fiscal Year 2018 were presented. According to the financial results, the Company’s turnover for the Year 2018 reached an amount of € 58.5 million as compared to € 54.2 million in the Year 2017, showing an increase of 7.9%. Earnings before Tax reached € 24.5-7 million as compared to € 12.5 million in the Year 2017, showing an increase of 98.2%, while Earnings after Tax reached € 17.15 million as compared to € 7.2 million in the Year 2017, showing an increase of 136.8%. The company’s financial data clearly reflect the increase in throughput at the Container Terminal by 6%, the Conventional Cargo by 4%, as well as the significant improvement in the efficiency of the company’s facilities and equipment.

An extensive review of the activities of ThPA SA during the first year of the new management, as well as the next steps for strategic development, were presented by the executives of ThPA SA, at a Press Conference, which was held on Wednesday 19 June at the facilities of the Port of Thessaloniki.

The Chairman of the BoD & CEO of ThPA SA, Mr. Sotirios Theofanis, during his introductory presentation, referred to the strategic vision of the current management team that has been a driving force during all these months and clearly mentioned the achievement of the goals of the initial period.

Then, the Chief Financial Officer of the company, Mr. Henrik Μ. Jepsen, took the floor and presented the financial data for 2018. Mr. Jepsen highlighted, inter alia, that: “Our company's financial data clearly reflect the increase in throughput at the Container Terminal by 6%, the Conventional Cargo by 4%, as well as the significant improvement in the efficiency of the company's facilities and equipment”.

Financial data for 2018

The approach of the current management team has been based on the development of a customer-centric mindset, the modernization of cargo handling equipment and the administrative reorganization of the company. The strategy that was chosen is deemed successful as, according to the financial data of ThPA SA for 2018, there was a significantly improved profitability:

• The Company's turnover increased by 7.9% (€ 58.5 million in 2018 compared to 54.2 million in 2017);
• Operating profit, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased by 46.4% to € 27.6 million in 2018, compared to € 18.85 million in 2017, with the related margin on turnover being 47.2%;
• Profits before tax recorded a significant increase of 98.2%, as they reached € 24.7 million in 2018, versus € 12.5 million in 2017, with a related margin on turnover of 42%;
• Profits after tax were more than doubled and increased by more than 136.8% to € 17.15 million in 2018, compared to € 7.2 million in 2017, with the related margin on turnover being 29.3%;
• Revenue per operational segment amounted to € 37.9 million for the Container Terminal (C.T.), € 18.9 million for the Conventional Cargo Terminal, € 223 thousand for the Passenger Terminal and € 1.49 million for the Exploitation of Spaces, the latter corresponding to 2.5% of the turnover.
• ThPA SA continues to have zero borrowing, supported on a very strong cash basis, with cash and cash equivalents on 31 December 2018 exceeding € 91 million.
• The proposed dividend for 2018 is € 0.57 per share, to be approved by the Annual Ordinary General Meeting.

The Deputy CEO & Chief Commercial Officer of ThPA SA, Mr. Rui Pinto, during his presentation, mentioned the following: “Our company continues to implement its investment program by having a plan and being consistent in its implementation, aspiring to realize its strategic goal. This goal is to make the Port of Thessaloniki a top port in terms of both service and technological equipment”, also noting that the preliminary throughput data of the first quarter of 2019 show that the increase in throughput volumes follows the positive trend of 2018.

 

Commercial activity for 2018

According to the data presented, the increase in throughput at the Container Terminal is due to the increase in Greek exports and the significant presence of the company in the "transit" markets of Bulgaria, the Republic of North Macedonia and Serbia. Equally important is the presence on the "transit" market of the Republic of North Macedonia when it comes to conventional cargo, while ThPA SA has also expanded into new markets such as Kosovo.

The executives of the management team are fully satisfied with the improvement in Port efficiency indicators, such as vessel waiting time at anchor and crane productivity (number of moves per crane/hour).

In addition to the increase in throughput at the Port of Thessaloniki, there is a weekly Ro-Ro service linking Thessaloniki with the ports of Limassol and Haifa.

The investment plan of ThPA SA

In the first 14 months, the current management team, in line with the strategic choice of shareholders for immediate replacement of the company's equipment and improvement of the services provided, has completed the following investments:

-           Purchase of 12 new Straddle Carriers. Fleet of 24 units today available;

-           Purchase of 3 spreaders for STS and 2 for MHC already in operation;

-           Comprehensive refurbishment program of STS & SCs already completed, leading to improved equipment availability;

-           Extension of stacking yard by 2.5Ha;

-           Extension of reefer capacity, from 300 to 400 plugs;

-           Re-pavement of yard areas inside Container Terminal;

-           Installation of new lighting system at the Container Terminal;

-           Enlargement of road leading to Gate 16, from 3 to 6 lanes;

-           Creation of Pre-Port Parking area near Gate 16 for parking of trucks that need to perform customs clearance.

According to the investment plan of ThPA SA, the amount of investments in the first 33 months after the take-over by the new management is estimated to reach 50 million euros.

In this context, the following investments are expected to be completed by the end of 2020:

-           Purchase of two new Gantry Cranes, twin-lift, 18 rows (able to operate vessels up to 9.000 TEUs capacity). Expected delivery by early 2021.

-           Purchase of new Mobile Harbour crane, to be delivered by the end of 2019 with lifting capacity of 140tons. To be used for the handling of containers and conventional cargo;

-           Tender & award of new TOS software for the management of container terminal operations.

Then, Mr. Sotirios Theofanis, during his basic presentation, outlined the next steps of the company's strategy and the upcoming development challenges. Specifically, he mentioned the following: “As the company has gathered momentum, it has regained the trust of the Port’s customers, as well as most of its clientele and is now ready for the next step: To make the Port of Thessaloniki an international transport hub for Southeastern Europe and the Balkans, contributing decisively to the development of the economy of Thessaloniki and the wider region” and he added: “By building on the synergies that have been developed over the past few years in the neighboring Balkan countries, ThPA SA will focus on working with existing dry ports or creating new ones, consolidating the leading role of the port in Southeastern Europe, while enhancing the commercial and business value of the Port, not only for the majority shareholders, but also for the entire business community involved in business activities directly or indirectly connected to the port”.

In the context of presentation of the strategy of ThPA SA, Mr. Theofanis announced that Mr. Franco Cupolo undertakes the position of Chief Executive Officer with duties related to the operations of ThPA SA, while Mr. Theofanis, as the Chairman of the BoD & Managing Director, maintain the duties for the sectors related to the strategy, growth, commercial policy and investment plan, including related activities in the Balkans and Southeastern Europe.

Mr. Franco Cupolo said that he is particularly happy for his new duties at the port of Thessaloniki and that his main priority is to get in touch with and work with the employees of ThPA SA, as the human capital is the most important asset of any company. "The success of a company can only be based on the success of its people," he said. With regard to the management model that he is about to implement, he mentioned that it relies on three main principles:

• safety, as the safety of both workers and transactors is of vital importance in the port industry;
• honesty that leads to transparency;
• a spirit of cooperation;

In the following link you will find relevant photographic material:

https://download.thpa.gr/thpapc/

On April 30, 2019 the Board of Directors of ThPA S.A. approved the Annual Financial Report for the Fiscal Year 2018.

The Annual Financial Report for 2018 is the first full-year Report issued subsequent to the privatization transaction, which was executed in March 2018.

The Annual Financial Report 2018 shows the following highlights:

(€ '000)	2018	2017	Variation (%)
Financials
Total Revenue, hereof:	58.535	54.232	7.9%
Container Terminal	37.930	35.395	7.2%
Conventional Cargo Terminal	18.896	16.937	11.6%
Facilities Rentals	1.485	1.690	-12.1%
Passenger Traffic	223	210	6.2%
Gross Profit	27.132	21.809	24.4%
Gross Profit Ratio (%)	46.4%	40.2%
EBITDA	27.605	18.850	46.4%
EBITDA Ratio (%)	47.2%	34.8%
Net Profit	17.152	7.243	136.8%
Profit Ratio (%)	29.3%	13.4%

 

The 2018 financial performance of ThPA S.A was based on the following activity levels:

	2018	2017	Variation (%)
Volumes
Container Terminal (TEUs)	424.500	401.947	5.6%
Conventional Cargo Terminal (Tons)	3.755.102	3.598.371	4.4%
Vessel calls, hereof:	1.404	1.417	-0.9%
Container vessels	492	523	-5.9%
Conventional cargo vessels	752	726	3.6%
Passenger vessels	160	168	-4.8%

In 2018 the overall activity level of the Port increased considerably over 2017, leading to increased revenues. 

The Container Terminal Revenue increased by 7.2% over the previous year, a result primarily driven by increase in import/export volumes from 348,503 TEUs in 2017 to 363.109 TEUs in 2018, representing an increase of +4.2% and in transit volumes from 52.495 TEUs in 2017 to 60.637 TEUs in 2018, representing a relative increase of 15.5%. The container mix improved in 2018, resulting in Container Terminal revenues increasing relatively more than overall volumes (7.2% vs 5.6% respectively.)

The Conventional Port volumes increased by 4.4% over the previous year, with an improved cargo mix lifting the Container Port revenues by 11.6% from €16.9 million in 2017 to €18.9 million in 2018. 

Revenues from rental of facilities and passenger traffic remained largely at the same levels as in the previous year.

The Gross Profit increased from €21.8 million in 2017 to €27.1 million in 2018, representing a total increase of 24.4%.  The increase is not only due to increased activity levels, but also due to an improvement of operational efficiencies in both the Container Terminal and the Conventional Port, which has resulted in an increase of the Gross Profit Ratio from 40.2% in 2017 to 46.4% in 2018.

In 2017 the Net Profit was negatively impacted by impairment of specific assets and provisions for anticipated losses.  In 2018 such impacts have been largely eliminated, which, together with the increased financial performance from improvements in operations, has led to an overall increase in Net Profit of  around €10,0 million in 2018, lifting the Net Profit Ratio from 13.4% in 2017 to 29.3% in 2018.

Statement of the Chairman of the BoD and CEO of ThPA S.A.

On the occasion of the announcement of the financial results, the Chairman of the BoD and CEO of ThPA S.A., Sotirios Theofanis, stated: “Following to the privatization of the Company in March 2018, the new Management Team has put in significant efforts to improve the operational efficiency and productivity of the port; improve reliability and quality of service to our customers; and unlock the great market potential that we foresee for the Company. The increased activity level and improved financial performance in 2018 shows that we are on the right path, but we still have ahead of us significant efforts to further release the potential of the Port. These efforts include strategic investments to increase the capacity of the Port; unlocking the commercial opportunities that exist in the existing and prospective markets; and continuously improving the productivity and efficiency of the Port, with the aim to further justify the trust of our shareholders; the economic community of the City of Thessaloniki, Northern Greece; and further of the Balkans and South East Europe”

The Port of Thessaloniki was honored to see its Chairman of the BoD and CEO of ThPA S.A., Mr. Sotirios Theofanis, being nominated as Port Professional of the Month, for the month of April, by the European Sea Ports Organization (ESPO).

The European Sea Ports Organization (ESPO), based in Brussels, was established in 1993 and is the representative body of the seaports of the Member States of the European Union and Norway.

The nomination "Port Professional of the Month” by ESPO aims to promote executives of European ports having an important track record in port management and to present the key points of the strategic development and modernization of the ports they have undertaken.

The Port of Thessaloniki is the main Gateway Port to the Balkans and Southeastern Europe due to its location, its facilities, its spectrum of services and its significant clientele both in Northern Greece and the neighboring countries, stated Mr. Theofanis in an interview that he gave, on the occasion of his nomination as Port Professional of the Month. The interview is available on the website of the European Sea Ports Organization (https://www.espo.be/news/port-pro-of-the-month-sotirios-theofanis).

In the same interview, he mentioned that, according to the traffic of the first quarter, in 2019, container traffic throughput is expected to increase around 450,000 TEUs and conventional cargo throughput is expected to reach 4,500,000 tons, while in 2018 the throughput was 425,000 TEUs and 3,850,000 tons respectively.

With regard to the privatization process of the port of Thessaloniki, which was completed after an international tender and the acquisition of the majority stake of the Company (67%) by a Special Purpose Vehicle (SPV) company South East Gateway Thessaloniki (SEGT) he pointed out that it is, to a certain extent, similar to the model used in a similar case at the port of Singapore. He also highlighted the international and profoundly renewed way of managing and developing the port, which stems from the international experience and the excellent knowledge of business conditions in the Balkans and Southeastern Europe that the new executives of the company have. The company's strategy has three main components:

• The Port Bound Strategy, focusing on new infrastructure, serving larger ships and implementing a new business philosophy and procedures.
• The Beyond the Port Strategy, focusing on the development of intermodal transport to and from Southeast Europe and the creation of freight centers in strategic areas.
• The Management Strategy, aiming at implementing a lean and effective management model.

He referred to the complexity created by the different regulatory authorities involved in ports and he pointed out that the existence of a separate regulatory authority is necessary not because of the magnitude of the port industry in Greece but because of the multitude number of small ports, especially in the country’s Island Complex.

With regard to future investments, Mr. Theofanis highlighted that the focal point is the expansion of the Container Terminal by 460 meters and with an effective depth of -17.6m. This project is included in the Obligatory Investments undertaken by ThPA S.A. and its completion, which is expected by the end of 2022, will allow the servicing of Super Post New Panamax ships of a capacity of 180,000 TEUs and will increase the capacity of the Container Terminal to 1,300,000 TEUs, thus providing a significant comparative advantage to the Port of Thessaloniki.

Besides these Obligatory Investments, ThPA S.A. is planning to implement two major investments in the Conventional Cargo Terminal, amounting to a total of 120,000,000 euros. These investments concern: The expansion of Quay 24 by 410m (depth -16.5m.), enabling the servicing of Panamax ships and the unification of the 4th and 5th Piers, creating a new deeper Quay of 600m. Completion of these projects is expected to increase the capacity of the Conventional Cargo Terminal to 4,000,000 tons.

The port of Thessaloniki belongs to the Orient-East Med Core Network Corridor of the Trans-European Transport Network (TEN-T) and, according to Mr. Theofanis, a Mini Land Bridge can be developed towards the port of Burgas at the Black Sea, as well as access to Central Europe. All of the above are within the same spirit that the company has regarding the creation of dry ports in neighboring countries, creating the conditions for the port gate to be open to the new target markets.

Mr. Theofanis referred to the importance, at a global level, for the port industry, but also to the perspective that exists within the framework of the historic project on New Silk Roads, marine and terrestrial, i.e. the well-known "Belt and Road Initiative”. He considers this project to be important for the port of Thessaloniki, since he believes that the location of the port of Thessaloniki is strategic and the investments that will be made will greatly enhance the port's role in the new conditions that are being shaped.

With regard to the challenges in the sectors of cruise and passenger traffic, Mr. Theofanis referred to the company's strategy of attracting cruise companies to the port of Thessaloniki, to the cooperation that has begun with the local authorities at local and regional level, but also with the involved professionals in order to develop a "cruise product" that would be appealing to companies. According to him, the key points will be the exploitation of the emblematic building of the Old Customs Office and the development of non-port activities within the harbor.

Mr. Theofanis pointed out that the new investment scheme has a long-term strategic goal to reduce the environmental footprint of the company's port activities and, in this context, he referred to the unanimous decision of the shareholders to participate in the Green Award Network as an Incentive Provider, offering a 15% discount on port charges to Green Award-certified ships visiting the Port of Thessaloniki.

Finally, he mentioned the implementation of new technologies at the port of Thessaloniki, noting that the executives of ThPA S.A. are following the trends in the field of digitization at global level, while at the same time ThPA S.A. participates in many research projects, regarding the application of new technologies, funded by the European Union. A plan to implement new technologies at the Container Terminal is expected to be drafted in the near future and the company's immediate plans include the creation of an Innovation Hub for Ports, Freight Transport, and Logistics inside the Port of Thessaloniki. 

Over the past few days, the Chairman of the BoD and CEO of ThPA S.A., Mr. Sotirios Theofanis and the Chief Investment Officer and Executive Member of the Board of Directors of ThPA S.A., Mr. Arthur Davidian, met with the Deputy Prime Minister of the Republic of North Macedonia, Mr. Koco Angjushev, responsible for economic affairs and coordination with the economic sectors.

The main topic of the discussion was the Development Plan of ThPA S.A. in the Balkan area and, in this context, the potential investment for the creation of a Dry Port in the neighboring country. The meeting was held in a very good spirit and both sides agreed to continue contacts for the further maturity of this prospect.

It is noted that most of the imports and exports of the neighboring country, using containers, are made through the port of Thessaloniki. At the same time, for ThPA S.A., the major industries of the Republic of North Macedonia are key customers of the Conventional Cargo sector of the Port, as the raw materials and the final products are transported through the port to these industries.

The Administration of ThPA SA, following the strategic objectives of the investment group that acquired the majority percentage of 67% of the company’s shares in March 2018, implements the company’s Investment Plan to upgrade the port infrastructure and equipment and, at the same time, continuously explores the possibilities for cooperation in the Balkan countries, with the aim of making the port of Thessaloniki a major shipping and logistics hub in the Balkans and Southeastern Europe.