Good afternoon, ladies and gentlemen, and welcome to our conference call on the financial results of the first quarter 2023. As always, our CFO, Tanja, joins me today. The past year, 2020, challenged HHLA with its difficult conditions such as disrupted transport chains, port congestion, and the consequences of Russia's invasion of Ukraine. A significant weakening in demand for logistics services was already apparent at the end of 2022. Ongoing geopolitical tensions, the Russian war of aggression in Ukraine, high inflation and the corresponding decline in consumptions, as well as still the COVID wave in China. All of these are reflected worldwide in an economically weak start to the year. In line with our expectations, the first quarter of the year was quite challenging given the weak development in container throughput and transport.
As port congestion already eased in the second half of 2022, we are now facing the twin effect of lower volumes and lower storage fees. HHLA is holding its own under these difficult conditions. We expect the market to pick up in the second quarter, especially for Far East routes. Despite the adverse economic conditions, we are keeping our sights set on our strategic goals. First, in the Container segment, we are driving the implementation of our efficiency program for the Hamburg terminals and the related organizational realignment. The increase in efficiency and performance we aim to achieve here is intended to secure jobs and sites over the long term. Second, our container terminal, Odesa, remains closed for seaborne container handling. Despite the difficult situation, our employees continue to handle cargo volumes by rail and truck.
Since December 2020, the terminal has also been involved in grain transshipment and handles grain ships at the quayside whenever the situation there allows. Third, we also continued to invest in expanding our intermodal network in the first quarter of 2023. With a new location in Kazakhstan, HHLA has been offering its customers a route linking Europe, the Caucasus region, and Central Asia since February 2023. Our rail subsidiary, Metrans, acquired a stake in Adria Rail, thus extending its network to the promising southern European market. This will allow Metrans to extend its European network of inland terminals at important hubs of total of 21 terminals. These investments are an important element of the continued shift of road transport to more environmentally friendly rail transport. Last but not least, let me quickly comment on the COSCO deal.
The planned acquisition of a non-controlling interest in Container Terminal Tollerort by our long-standing customer, COSCO SHIPPING Ports Limited, continued to dominate our attention in the first quarter. All parties involved took the German government's concerns regarding security matters very seriously in the course of the investment review. It was possible to resolve these concerns together during intensive and constructive discussion. It goes without saying that given the recent approval of the Federal Ministry of Economic Affairs, we are delighted that we will soon be able to finalize the transaction together with COSCO. On that note, let me hand you over to Tanja for more details on our financial performance in Q1 2023.
Thank you, Angela, and good afternoon, everybody, also from me. Let's move directly to the reporting for our Container segment. As Angela already mentioned, container throughput at HHLA terminals decreased strongly by 18.6% to 1,416 thousand TEU in the first quarter of 2023. Throughput at our terminals in Hamburg fell by 15.9% to 1,360 thousand TEU. This development was mainly driven by lower cargo volumes from the Far East shipping region, especially China. With regard to feeder services, we saw a strong decline in traffic with Russia, Poland, and Sweden. That said, the feeder ratio of seaborne handling decreased moderately by 3.1 percentage points to 18.1%. Our Odesa terminal is operational but still closed for seaborne container handling.
Only grain ships covered by the Black Sea Grain Initiative are being handled at Container Terminal Odesa CTO since Q4 2022. The Container Terminal Estonia showed a favorable development, but was not capable to match the strong prior year volume trend, which they had, which was driven by extra calls at the terminal as an alternative to Russian ports. There was a positive volume development at our terminal in Trieste, PLT Italy. It was not capable to fully offset the overall decline in volumes, even if it shows a strong development. In total, the international terminals reported a decrease in volume of 53.9%. Segment revenue decreased accordingly by 18.8% year-on-year to EUR 175.8 million. This was mainly due to a sharp decline in volumes and a decrease in storage fees as a function of shorter dwell times at the Hamburg container terminals.
In the same period last year, storage fees had increased as a result of disrupted supply chains. The transfer of an intergroup company from the pro forma Segment Holding to the Container segment also had a negative impact on the revenue of the Container segment. EBIT costs decreased by 4.8% compared to previous year, mainly due to the volume-related decline in personal expenses. Additional factors were the ongoing CTO closure and the reversal of provisions for ship delays at the Hamburg container terminals at a small amount. The decrease in energy costs was proportionally less than the decline in volumes. EBIT costs at our terminal in Trieste increased significantly due to additional cargo volumes.
Given the drop in volume, EBIT fell by 84.9% to EUR 5.7 million, while the EBIT margin dropped by 14.2 percentage points to 3.2%. Let's now have a look at the Intermodal segment. The economic slowdown of the first three months did not stop at the quayside, although the volume effect at Intermodal was very moderate. Compared to the previous year, container transport fell moderately by 5.4% to 408,000 TEU. With regard to rail transport, all major routes were affected by the decline across all the North German seaports. Only Rotterdam traffic managed an increase, albeit at a very comparatively low level. In total, rail transport decreased by 5.6% to 340,000 TEU. Road transport also declined by 4.2%.
With an increase of 13.4% to EUR 157.3 million, revenue growth outperformed the volume development. It was driven by an adjusted pricing level during the previous year as a consequence of increased costs for the purchase of services, especially energy costs. EBIT fell by 1% to EUR 21.4 million, mainly due to lower transport volumes. The EBIT margin was still in double figures at 13.6%. Let's turn briefly to the Logistics segment, where we have pooled the vehicle Logistics and consultancy divisions, as well as business activities with which HHLA aims to tap new growth fields. In the reporting period, the consolidated companies reported revenue of EUR 21.1 million and thus exceeded the prior year figure by 9.8%. Especially vehicle Logistics contributed to this positive development.
As a result, EBIT rose to EUR 0.4 million due, in particular, to the positive results from vehicle Logistics and consulting activities. At-equity earnings amounted to EUR 0.7 million for the reported period Q1.
Ladies and gentlemen, HHLA's economic development in the first quarter of 2023 was largely in line with our expectations. However, the heterogeneous development at segment level in the first three months has led to an adjustment of the forecast for the current financial year. In view of the strong decline in throughput volumes caused by adverse macroeconomic conditions in the first three months of this year, only a slight year-on-year increase in container throughput is now predicted for the Port Logistics subgroup. In March, we still assumed a moderate increase. The situation is expected to improve in the second quarter of 2023, with a corresponding upturn in volumes, especially in the Far East shipping region. For container transport, a moderate year-on-year increase is still expected. Revenue expectations for the Port Logistics subgroup have been raised slightly and are now expected to be slightly above the prior year level.
This forecast is based on a better-than-expected strong increase in revenue in the Intermodal segment. For the Container segment, on the other hand, we had to lower our expectations and now assume a moderate decline due to the current volume trend. Our guidance for the operating result of the Port Logistics subgroup remains unchanged in the range of EUR 145 million-EUR 170 million. This is based on the assumption that the adjusted forecast for the development of volumes can be partly offset by a package of measures implemented to stabilize earnings. Within this range, a strong decline is still expected in the Container segment and a moderate increase in the respective segment EBIT in the Intermodal segment.
In order to further increase efficiency and expand capacity in the Container and Intermodal segments, the target for capital expenditure in the Port Logistics subgroup is still in the range of EUR 220 million-EUR 270 million EUR. In the Container segment, investments will focus on the efficient use of existing terminal space in the Port of Hamburg and the expansion of foreign terminals, and in the Intermodal segment on the expansion of the Group's own transport and handling capacity. Ladies and gentlemen, with this outlook, I would like to close my remarks on our financial results for the first three months, 2023. Tanja and myself, we will be happy to take your questions now.
Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If you wish to remove yourself from the question queue, you may press star followed by two. If you're using speaker equipment today, please lift the handset before making your selections. Anyone who has a question may press star followed by one at this time. One moment for the first question, please. First question is from the line of Nikolas Mauder with Kepler Cheuvreux. Your question please.
Hi, good afternoon, everybody. Four questions, please. First one, you've mentioned some measures to contain the slightly lowered volume outlook for the container throughput. Can you provide some details what those are and when they will sort of take effect? When will they become visible in the P&L? Secondly, what gives you the confidence in to reach the container volume guidance after the strong decline in the first quarter? Have you gained some services? Do you have visibility on Far East returning? What is sort of the main confidence giver here? Thirdly, can you provide some insight into the likely trajectory of the sort of sales per average container in, you know, of average container throughput?
It was flat year -on -year in the first quarter, but sequentially down, indicating still some sticky storage revenues in the first quarter. For the rest of the year, what kind of rate increases have you been able to push through with your ocean carrier clients? What is the remaining sort of stickiness of the storage fees throughout the year? Perhaps also what the exit rate might look like this year. Finally, on the Intermodal segment, the average sales per TEU here have been stable on a high level, with EBIT almost not affected. Are those additional surcharges part of this development really earnings neutral? At falling volumes and neutral surcharges, I would have expected EBIT to fall as well. Have you taken measures to control costs here as well? Thank you.
Okay, thank you, Mr. Mauder. I will start with your last questions, very well noted. We have basically put on the price level into the market our costs, additional costs that we had on, in particular, energy and personal costs. We are investing as well on the Metrans side in efficiencies, in efficiencies in the different terminals as well, into efficiencies in our own stock. Increasing our own stocks and the way we are operating the business, which basically has two significant impacts. One, that we can compensate additional cost levels coming from the energy costs and personnel increases. Second, that we can grow with our own operational model in a more efficient way. Very well noted.
These two elements are driving the solid EBIT line. In terms of the rate increases on the Container segment side waterborne, here we do expect that we see a significant volume increase, in particular in the second half. The stickiness of basically the costs from coming from storages, as it is usually if everything then comes very dense in the second half of the year. Experience-wise, you can count as well that it will be very difficult to handle volumes again. On terms of rate increases, we have long-term standing contracts with our customers, and they are affected in as well rate increases which are reflected.
You were asking, how confident are we for the second quarter, third, and fourth quarter? Let me see, let me say 6 weeks into the year, that we see slight signs of recovery. In particular, as I mentioned at the very beginning, we do see that everybody is overlooking the COVID waves that were to the end of last year, beginning of this year, still heavily running through China, with their implications on production sites, as well on logistic levels there, which we see some stabilization. Very still weak, but slight signs of improvement, which will probably we will see going further in the second half of the year.
Some proof of confidence, I can tell you that we have gained one additional call, which we materialized this year, as well as I might draw your attention to the cooperation with COSCO that we are now able to finalize, which will give us an additional different level of comfort this year. As this is meant to be the Asian hub for COSCO in the North Range, in particular here in Germany. Another sign of proof that we counting on regaining in the second half.
Thank you very much. Then finally, the measures to control cost in container, you know, to counter the volume effect.
Yeah, we have done several measures. Tanja, maybe you can comment.
Yeah. We have initiated several measures in order to improve for sure the performance management on our container terminals, including allocation of resources and flexibility in the handling of containers. We have seen positive impact already in the first quarter that our terminals were capable to offset some of the volume drop already with productivity increases. For sure, unfortunately not the whole volume drop. Actually the main results of these measures we expect in Q2 slightly more starting. The main impacts we expect in Q3 and Q4.
Many thanks.
Ladies and gentlemen, as a reminder, if you would like to ask further questions, please press star followed by one at this time. We wait some seconds for further questions. There are no further questions. I hand back to Angela Titzrath for closing comments.
Thank you very much. Ladies and gentlemen, for HHLA, it is clear that only sustainable logistics network can meet the growing demands. We will therefore continue to focus on our strategy based on sustainability and growth as we resolutely pursue our goal of making this vision a reality. Thank you very much for your interest and your ongoing support for HHLA. Please stay healthy and take care. Goodbye.