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Reporting 2022

Company Profile

BLG LOGISTICS GROUP AG & Co. KG (BLG KG), headquartered in Bremen, is a seaport and logistics service provider with an international network. We offer extensive logistics system services in automobile, contract and container logistics along the entire supply chain, and devise sustainable logistics solutions. Our customers include the leading German automakers as well as companies in retailing and industry. Today, BLG LOGISTICS is represented in all the world’s growth markets, with almost 100 locations and offices in Europe, America, Africa and Asia. www.blg-logistics.com/en/

Our company is run by a management company organized as a private enterprise, BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877- (BLG AG). The Free Hanseatic City of Bremen (municipality) is the main shareholder. The Board of Management of the listed joint stock corporation manages the business of BLG KG on its own responsibility. There was one change in the composition of the Board of Management in the reporting year. Andrea Eck, responsible since 2017 for the AUTOMOBILE Division, left the company at the end of the year. By resolution of the Supervisory Board, the new position of Chief Operating Officer was created and the two Board of Management divisions AUTOMOBILE and CONTRACT were merged. Matthias Magnor, who had previously headed up the CONTRACT Division, was appointed to this function with effect from December 1, 2022 and is thus now responsible for overseeing all operating business at Board of Management level. The 16-member Supervisory Board, in which employees and shareholders are equally represented, oversees and advises the Board of Management in its work. For more information about the composition of this governing body, the selection process and the skills and expertise its members possess, please refer to the Governance section.

The Group’s sales revenue in financial year 2022 totaled EUR 1.12 billion. Detailed financial key figures are presented in our Financial Report 2022. reporting.blg-logistics.com/en

Our ownership structure

As of December 31, 2022, the Free Hanseatic City of Bremen (municipality) was the main shareholder of BLG AG with a share of 50.4 percent. Other large institutional investors are Finanzholding der Sparkasse in Bremen and Panta Re AG, Bremen, each with a share of 12.6 percent, and the Waldemar Koch Foundation, Bremen, with a share of 5.9 percent. Free float shares account for 18.5 percent. Information on the legal group structure is presented in our Financial Report 2022.

Services at a glance

Dienstleistungen

Production logistics

Supplying final assembly through optimum preparation of parts and components.

Procurement logistics

Ensuring availability of stocks via management and monitoring of procurement processes.

Reverse logistics

All logistics processes for returning goods or materials into the product cycle.

Supply chain management

Organization of integrated logistics chains in project and process management, technology, IT, and quality.

Value-added services

Value-creating activities such as technical processing, cleaning or surface treatment for finished vehicles.

Distribution logistics

Distribution of goods from production plants or central warehouses to the customers.

Cargo handling logistics

Extensive network of seaport and inland terminals.

Transport logistics

Secure transport of finished vehicles and other goods via road and rail, by sea and air.

AUTOMOBILE: Intelligent vehicle logistics from A to Z

BLG’s AUTOMOBILE Division is a leading technical and logistics service provider for the international automotive industry. In this business area, we offer multimodal transport concepts with global logistics reach and dovetail individualized and innovative technical service packages. Distribution takes place by road, rail and inland waterway. In addition to the seaport terminals in Bremen, Bremerhaven, Cuxhaven, Hamburg (Germany) and Gdansk (Poland), the AUTOMOBILE Division also operates several inland terminals on the Rhine and the Danube rivers. Our modern truck fleet with over 500 car transporters ensures a seamless logistics chain both nationally and internationally. BLG AutoRail is a special provider of vehicle transport by rail. It owns a wagon fleet of close to 1,500 open railroad cars, including 200 flat wagons, and thus has Europe's most modern and versatile rolling stock at its disposal. With this, it operates in the German and Austrian rail network using green electricity every kilometer of the way. Thus, with our comprehensive range of services, we fully cover the logistics supply chain from the vehicle manufacturers to the end customer. We consistently supplement our logistics network with smart digital solutions and sustainable concepts for climate-friendly transport, making us one of Europe's leading automobile logistics companies. However, after the coronavirus pandemic subsided in the reporting year, the international automotive market was beset by new crises – first and foremost Russia’s war in Ukraine. As before, the gaps in parts availability were reflected in longer downtimes and therefore higher utilization of our space coupled with lower productivity. Added to this were reduced volumes overall, due in some cases to isolated plant closures and a general shortage of transport capacity by rail and road. Business in the AUTOMOBILE Division therefore remained strained in the reporting year on the back of the multiple global crises. In 2022, our global AUTOMOBILE network handled, transported or technically processed around 4.7 million vehicles. Elsewhere, we benefited from reduced container capacities, while the increased share of RoRo cargo strengthened the high & heavy segment. Thus, at 1.1 million metric tons, the volume of rolling cargo handled at AutoTerminal Bremerhaven remained stable. At Neustädter Hafen, BLG Cargo Logistics reported a volume increase of around 20 percent over 2021.

Having entered into a strategic partnership in December 2021 with one of the world’s largest RoRo shipping companies, Hyundai GLOVIS, to handle car transshipments in Bremerhaven, the BLG GLOVIS BHV GmbH joint venture went into operation in May 2022. Hyundai GLOVIS will in the coming years develop BLG AutoTerminal Bremerhaven as a European hub for its automobile transports between Asia and Europe.

We are continuously expanding our expertise in the field of e-mobility and are now also a strong partner for our customers in this area. At the terminals, BLG LOGISTICS provides services such as handling, technical processing, quality inspection, and even customs clearance for electric vehicles on behalf of various manufacturers, and in this way contributes to the energy transition. At the end of 2022 and in the first few weeks of 2023, three new brands reached our car terminal in Bremerhaven, including two from our new customer Great Wall Motor, before going on to conquer the European market.

CONTRACT: Tailormade logistics solutions

In the CONTRACT Division, we manage complex logistics projects and offer our customers in industry and retailing reliable upstream and downstream distribution solutions. The focus of our know-how and experience lies in procurement, production and distribution logistics, reverse and spare parts logistics, as well as freight forwarding services. We offer storage, transport, packing and unpacking services, handle conventional orders, e-commerce issues as well as a variety of value-added services. As a logistics architect, we also plan, design and implement customized logistics solutions – whether highly automated logistics centers or manual in-house processing. Professional project management is our core competence, and sustainability plus agreed, reliable quality are our top priorities. Our customers are strong brands from industry and retailing, medium-sized companies and the major German and international car manufacturers. At over 40 locations in Europe and overseas, our teams of experts devise bespoke service packages for a wide variety of goods, ranging from automotive parts, railroad components, sneakers, printers, fashion, furniture, cookies to bathroom fittings through our own logistics centers and our customers’ production facilities and warehouses. In the second half-year of 2022, we reorganized this business segment to enable us to remain as forward-looking and competitive as we have traditionally been. In view of the major challenge the negative effects of the multiple crises also pose for this business segment, we feel this reorganization came at the right time, and new demands and initial successes are proving that the strategic realignment in this area was the right way to go.

Since fall 2021, we have operated an import warehouse for a leading food retailer on an area of around 60,000 square meters at our location in Verden. In addition to palletizing and storage of the goods, our service includes random testing and shipping samples to laboratories or customers as well as redistribution to 40 decentralized warehouses in Germany and Austria.

Also in October 2021, the foundation stone was laid for the new C3 Bremen logistics center, which covers approximately 80,000 square meters and combines state-of-the-art technology, effective climate protection and excellent working conditions for our employees. As little as one year later, in fall 2022, we moved into the new facility and C3 went into operation. We now consolidate the production supply for the global assembly plants of a leading automotive manufacturer, which was previously carried out from several locations in Bremen, at a new forward-looking logistics center.

In the reporting year, we also became a new logistics partner to Deutz AG and have been managing an external warehouse of around 20,000 square meters for engine shipping at the Cologne site since November 1, 2022. Currently, 53 colleagues are already working here, and further new hires are planned for 2023.

We opened a new logistics center in Magdeburg in the second half of the year. On an area of around 63,000 square meters, 71 employees in a team that is continuing to grow handle the entire logistics process for a renowned retail customer, from incoming goods to order picking and outgoing goods. Millions of articles are stored here in pallet and shelf-type racking systems, with a picking tower with over 120,000 spaces on three levels forming the centerpiece.

CONTAINER: Box services

In the CONTAINER Division, the EUROGATE Group, in which we have a 50 percent shareholding, is one of Europe’s leading shipping line–independent container terminal groups. The Group’s core business is container handling at seaports at nine terminal locations. Secondary services include seaworthy packaging or container depot, maintenance and repair services as well as intermodal transport. EUROGATE GmbH & Co. KGaA, KG is a company consolidated using the equity method of accounting and managed separately from BLG in all CSR-relevant areas. The information in this report relates to the fully consolidated companies of the AUTOMOBILE and CONTRACT Divisions, including BLG AG and BLG KG (central departments). Information relating to the non-financial report of EUROGATE is presented separately.

Over 11,000 employees shape logistics together

Our employees assume responsibility for smooth logistics of high-quality products day in and day out. In 2022, in its fully consolidated companies plus the CONTAINER Division (50 percent shareholding), BLG LOGISTICS had an average 11,492 employees globally (calculated according to Section 267 (5) of the German Commercial Code (HGB)). On the reporting date of December 31, 2022, there were 9,407 employees at more than 70 German locations in the AUTOMOBILE and CONTRACT Divisions as well as at the central departments, plus a further 850 employees at the international locations of our fully consolidated companies. Further information about personnel statistics and development is provided in detail in the SOCIAL section.

The map provides an overview of the distribution of our fully consolidated companies as well as other countries with activities of the AUTOMOBILE and CONTRACT Divisions.

Automobile and contract logistics

BLG Standorte

* Representative office

** Since February 2022, business operations have been restricted or suspended due to the current conflict.

Implementation of the Sustainable Development Goals

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