A sustainable future only takes shape when words are put into action. With that conviction, Steffen Bauer, CEO of the HGK Group, recently signed a cooperation agreement with the Port of Rotterdam Authority.
For Steffen Bauer, sustainability is a personal mission. ‘I want my daughter, and maybe grandchildren later, to grow up in a liveable world, and I’m doing everything I can to help shape that world. That’s why I’ve put sustainability at the heart of our business strategy. When companies only report and communicate about sustainability, or only invest if subsidies are available, it’s all about platitudes and window dressing. I don’t really see that as commitment. I am privileged to lead an organisation with sustainable assets: terminals, waterways, vessels and railways. Our truck transport is limited and has been electrified where possible. We see ourselves as architects of sustainable freight flows.’
‘If you just report and communicate about sustainability, it remains window dressing. Sustainable action and not seeing it as a professional obligation.”
Steffen Bauer, CEO, HGK Groep, Passion for logistics
As a student, Steffen Bauer never thought of a career in logistics. ‘I wanted to study law, but then I opted for a dual-study programme as a commercial administrative assistant in the industry. On the advice of a family member, I applied to a logistics company. During a job interview at Lehnkering, I discovered logistics in all its facets – from freight flows to money and information flows and customs matters. I got really excited and immediately thought: this is where I want to complete my training.’
He rose from intern to executive assistant at Lehnkering and also studied business administration part time. In the context of acquisitions, he held various management positions at Imperial Logistics and later at HGK AG. “I always found it exciting to discover new aspects of logistics again and again. That only strengthened my passion for this sector.”
Dynamics as an energy source
According to Steffen Bauer, it is in times of major change that the economy’s dependence on well-functioning logistics becomes most apparent. ‘Europe has been moving from crisis to crisis for 25 years, and since COVID-19, the war in Ukraine and rising trade tensions, one can almost speak of a permanent crisis mode. Due to the energy transition, sectors are at risk of leaving and international competitive pressure is growing. That is why infrastructure and digitalisation projects need to get off the ground quickly, and we must ensure we do not remain constrained by old, entrenched structures. Of course, it remains important to carefully weigh the risks, but we must also see dynamism as a source of energy. Europe is partly deindustrialising, meaning we will have to import more in the future. This switch from export to import also offers opportunities for sustainability and must be prepared now.’
‘The switch from export to import offers opportunities for sustainability.’
From fossils to sustainable
In 2023, as CEO of HGK Shipping, the inland shipping branch of the HGK Group and the largest inland shipping company in Europe, Steffen Bauer signed a cooperation agreement with the Port of Rotterdam Authority on sustainable transport to the hinterland, with a focus on hydrogen logistics and CO2 reduction. ‘A better world starts with less dependence on fossil fuels. Whereas we built infrastructure for oil, coal and gas a hundred years ago, we now need facilities for green energy carriers. The Port of Rotterdam Authority plays a key role in this with investments in the storage and transhipment of ammonia and other hydrogen carriers from sea-going vessels. We can transport this sustainably to the hinterland.’
Personally involved
Recently, the existing partnership was extended to the HGK Group, including rail company RheinCargo and HGK’s container terminals. This move further underlines Steffen Bauer’s personal commitment, now that he is CEO of the HGK Group. ‘For me, sustainability is an important starting point. Based on that conviction, I feel closely connected to this collaboration. Together with the Port of Rotterdam Authority, we are building a future-oriented, reliable supply to European industry. As the HGK Group, we also invest in vessels for transporting captured CO₂ and are looking at equipment and infrastructure for the circular economy. Many flows such as scrap metal, old mattresses and clothing have been transported for decades. By keeping these flows within the system and recycling them efficiently, logistics players stand to gain significant opportunities.’
Rationally sustainable
The new vessels that HGK Shipping is building are equipped with a diesel-electric drive and an energy-efficient power management system as standard. According to Steffen Bauer, the industry will decide which fuel the logistics sector will use in the long term. ‘That was marine diesel oil a hundred years ago and could be hydrogen in the future. Once sufficient hydrogen becomes available via Rotterdam, the price will fall and the switch will come naturally. Rhine navigation will follow maritime transport: if methanol or ammonia engines break through there, charging infrastructure will be created that can also be used by barges. Ammonia and methanol can also be transported easily on the Rhine. It also serves as a transport route because it directly connects the seaports with the central industrial clusters, providing quick and efficient access to new energy carriers.’ As a transition fuel, Steffen Bauer considers HVO – hydrotreated vegetable oil – as a viable solution. ‘If policy makers really want the sector to be climate neutral by 2050, the price difference with marine gas oil must be subsidised; shippers won’t pay for that. Trains and passenger cars can run on green energy, but the challenge is greater for inland shipping. The sector is too small to enforce its own engine developments. HVO is limited in availability, but it is sufficient for inland shipping. In ten years, we can always switch to a different technology.’
Future-oriented support
In the meantime, inland shipping mainly needs stability, emphasises Steffen Bauer, who is committed to this at national and European levels. ‘Inland shipping must have a future and should not be forgotten because of its limited lobbying power. The hydrogen economy, CO2 reduction and the circular economy will only work with rail and inland shipping. I recommend that politicians encourage the construction of low-water resistant ships with Stage V engines and to link subsidies for modernising existing vessels to an age limit. Scarce resources must be invested in the future, and thus in vessels that will still be sailing in 2050. Private individuals with older vessels mainly need socioeconomic security. You should not burden them with fines, higher port dues or emission charges.’
Digital transformation
To accelerate the digital transformation in inland shipping, HGK Shipping is investing in its own AI platform and is working, together with Seafar, in (semi-) autonomous shipping. ‘On the Albert Canal in Belgium, we are now allowed to sail with fewer crew members. In the Netherlands and Germany, we will complete the test phase within twelve to sixteen months. The technical feasibility has been proven; after that, it only concerns the last decisive step: legal and insurance approval. If that succeeds, we have a solution that will fundamentally help the entire sector move forward. I am convinced we can do that successfully!’
Successful together
Where there is a will, there is a way – a proverb that is tailor-made for Steffen Bauer. His enthusiasm for working with partners on forward-looking solutions is unmistakable. He expects national and European governments to have a stable compass and clear guidelines so that companies that lead the way in sustainability and innovation can stay on course. ‘After all, in these economically challenging times, it takes a lot of energy to keep the basis of your company stable and to innovate at the same time,’ explains Steffen Bauer. According to him, less bureaucracy, faster planning and licensing processes,and the protection of core sectors such as chemistry and the steel industry are essential. However, as an entrepreneur, he does not want to point a finger at the political system. ‘If you want change, you should also come up with your own ideas of what a sustainable future can look like. And who can do that better than the ports and logistics service providers along the Rhine? We are naturally connected and know from experience that we are only successful by working together. That’s why I think the partnership with the Port of Rotterdam Authority is so important. If the HGK Group can contribute to the port of Rotterdam’s aim to be CO₂ neutral by 2050, that is a profit for the entire sector and for future generations.
Source: Port of Rotterdam
