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2018

Annual report

The landbased segment

Wallenius Wilhelmsen’s ambition is to substantially grow the landbased segment by expanding the core offering and transforming to full life cycle logistics.

Summary of 2018

Total income from the landbased segment for the full year of 2018 was USD 914 million, representing an increase of 14% compared with 2017 (proforma). The increase in landbased revenues were driven by full operations at the Melbourne terminal and the acquisitions of Keen and Syngin. For 2018, EBITDA was USD 90 million, down about 10% from 2017 (proforma). The results were positively impacted by the Melbourne terminal being fully operational and the acquisition of Keen Transport (‘Keen’). On the other hand, results were negatively affected by increased SG&A cost allocations of about USD 12 million (offset by a similar reduction in ocean), and a less optimal customer and service mix for Solutions Americas – Auto (VSA).

Solutions Americas – Auto (VSA) continued to experience high volumes and activity levels throughout 2018. However, EBITDA ended at USD 40 million, down 27% compared to 2017, due to increased SG&A cost allocations combined with less profitable customer and service mix, i.e. less accessory fitting and content, and more yard management work. This was partly offset by positive contribution from Syngin which was acquired on 5 July 2018 (see note 5 for more information).

The terminal business delivered solid results in 2018 and EBITDA ended at USD 33 million, up 25% compared to 2017. The improved results were driven by the Melbourne terminal being fully operational, whereas results for the other terminals on average were in line with 2017. Towards the end of the year, it was decided to close the Kotka terminal due to low volumes and a weak outlook with Russian bound volumes moving directly to Russian ports.

Solutions Americas – H&H developed positively in 2018 delivered USD 12 million in EBITDA, up from about USD million in 2017. The improved results were driven by the acquisition of Keen Transport in December 2017.

Network development

Wallenius Wilhelmsen has a clear ambition to continue to grow and expand the landbased footprint. In 2018, WW Solutions continued its expansion through M&A and investments.

In early 2018, WW Solutions signed an agreement with the local port authorities (MBZ) in Zeebrugge to gradually expand the footprint in the terminal to cater for increased volumes and growth. The estimated investment is about USD 20 million over the next few years.

In July 2018, WW Solutions acquired 70% of the membership interest in Syngin for USD 29 million on a cash and debt-free basis. The acquisition of Syngin marked the entry into the full life cycle logistics space.

In late 2018, the construction of the Tacoma Vehicle Processing Centre in the US was completed, and the first units were processed through the facility in December 2018, with a total investment of USD 12 million.