Eurobridge Intermodal Terminal in Batiovo. Interview for Ukraine Investment Portal with Stephan Dohm

German Investor HHLA Bets on Wartime Ukraine, Buying 60% of Batiovo Intermodal Terminal

Foreign investors are not waiting for the war to make long-term investment decisions in Ukraine. Germany’s Hamburger Hafen und Logistik AG (HHLA) has taken a controlling stake in a key border logistics asset in Zakarpattia, framing the project as a long-term play on new trade corridors, EU connectivity, and business growth under wartime constraints.

HHLA acquired 60% of the Eurobridge Intermodal Terminal in Batiovo in June 2025 and is developing it as a joint venture, “HHLA Eurobridge Batiovo,” together with Ukrainian investment company Fortior Capital. The deal is positioned as both an infrastructure upgrade and a commercial expansion: building a foothold in a corridor that has become more important as wartime disruption reshaped traditional routes.

Strategically positioned next to the Chop border crossing at the intersection of key international rail corridors, the terminal is designed as an open-access, multimodal hub linking Ukraine with Hungary and Slovakia. It also connects shippers directly to the European rail network, combining international logistics expertise with local market knowledge.

A core advantage of the terminal is its dual-gauge infrastructure: it has both Ukrainian broad gauge (1520 mm) and European standard gauge (1435 mm) rail tracks on site, enabling efficient transfers of containers and bulk cargo between the two networks. Container operations launched in 2025, reinforcing the terminal’s role as a practical gateway for cross-border rail logistics between the EU and Ukraine.

In the first phase of expansion, the terminal is expected to handle around 100,000 TEU per year, supporting the transshipment of containers, grain, and other general cargo, with the option to increase capacity if needed. The terminal’s rail-track capacities include container handling tracks (2 × 1435 mm, total 900 m; 2 × 1520 mm, total 910 m) and bulk cargo handling tracks (2 × 1435 mm, total 880 m; 2 × 1520 mm, total 880 m).

HHLA will hold the majority stake and, together with its rail subsidiary METRANS, will be responsible for the terminal’s further development and integration into broader European intermodal services. The transaction remains subject to approval by Ukraine’s competition (antitrust) authorities.

Against this backdrop, we spoke with Stephan Dohm, Director of Strategic Development at HHLA International GmbH, about HHLA’s strategic rationale for entering the Batiovo project, the investment and modernization roadmap, priority cargo flows and customer segments, and how HHLA Eurobridge Batiovo is expected to strengthen rail connectivity between Ukraine and the EU – despite wartime risks and regulatory constraints.

– Where did your terminal story begin? How did it start?

– We were already active in Ukraine through our terminal operations in the Port of Odesa, so we were familiar with the Ukrainian logistics market. During the war, port operations became significantly limited and new trade corridors started to develop.

We therefore decided to move forward with a local partner – having a Ukrainian partner who understands the situation on the ground better than we do is essential.

– Why did this border location next to the EU become a key point for developing an intermodal hub linking Ukraine, Hungary, and Slovakia?

– The border location is critical because it links Ukraine on one side with Hungary and Slovakia on the other. It allows us to connect the Ukrainian logistics network with the European network in a practical way.

– Why did you choose Batiovo specifically, given other options (Ukraine–Romania, Ukraine–Poland, etc.)?

– We had the opportunity to get involved in the Batiovo project and assessed it versus competition. We concluded it is a good location for investment. The key advantage is that both gauges are present at the terminal: European gauge on one side and Ukrainian gauge on the other, enabling efficient transloading from one to the other.

– HHLA entered the project with around a 60% stake and a partnership holding 40%. How do you divide roles and responsibilities within the joint venture (investment, operational management, service development, etc.)?

– We have a shareholder agreement that clearly defines who takes which role. As a major European logistics company with extensive rail terminal experience, we are deeply involved in terminal operations. Investments are funded according to each shareholder’s stake.

– The terminal is undergoing a major modernization. What key investments and technological changes are you implementing now, and what will be the main differentiator in the region?

– We established two cranes spanning a total of two rail tracks – one Ukrainian gauge and one European gauge – with stacking capability. We also invested significantly in ground and infrastructure to strengthen the area for container storage. In some “train-to-train” operations you do not need much storage, but here we needed to establish a substantial storage area. In terms of differentiation, a rail terminal is not the most complicated business, so we focus on efficiency and reliable performance.

– What KPIs are you setting for the first 12 or 24 months of operation?

– It is difficult to predict the first year precisely because we are entering a new market and the situation is very fluid. We depend on the availability of locomotives on the Ukrainian side, which is not always easy because Ukrainian Railways have suffered damage due to the war.

Our priority is to establish our presence and operate as a reliable element in this corridor. We are not expecting the biggest profits in the first year; the project has been implemented during the war amid high uncertainty for Ukraine’s economy.

– The first development phase targets around 100,000 TEU per year with the option to expand. Which cargo flows and customer segments are you prioritizing first – Ukraine’s import/export, grain, general cargo, or transit between the EU and Ukraine?

– The planned capacity is around 100,000 TEU, and the terminal can handle multiple cargo types in parallel. Our main focus and our strongest expertise is container operations – import and export between the EU and Ukraine in both directions.

At the same time, we are also developing transloading activities that do not compete for capacity with container operations, because these are essentially two different areas: one focused on containers and one focused on other loading activities.

– The terminal has access to two track gauges: Ukrainian gauge – 1,520 mm and European gauge – 1,435 mm. How does this dual-gauge setup help integrate Ukrainian and European rail logistics networks?

– The most convenient solution would be to have the same gauge on both sides, but if you don’t, the next best thing is to make the switch between gauges as easy and efficient as possible.

We are trying to provide a very smooth transition from Ukrainian to European gauge and back to facilitate long-distance rail transportation between the two systems. Currently, a lot of cargo moves by truck, but in Europe we generally aim to shift long-distance transport – typically over 250-300 km – to rail because the economics are often better.

– What new routes or intermodal services do you plan to launch through the Odesa–Batiovo/Metrans network connection, and how will this affect competition with other logistics corridors?

– Different corridors serve different markets. The Poland corridor serves Poland; the Romania corridor serves Romania. In the middle, we mainly compete for westbound directions and connections into Europe, potentially including routes toward Mediterranean seaports and the Northern Adriatic.

With our European network connected to the terminal, we can improve efficiency by linking the European network to the Ukrainian network through this terminal. I would not call it direct competition – at most, some cargo at the margin may shift to our corridor if it becomes more efficient.

– Container operations were planned for the fourth quarter of 2025. What is the realistic status now, and what steps still need to be completed (technical upgrades, tests, permits)?

– The terminal was completed in the fourth quarter and is now ready for operations. All permits have been obtained, and we are in contact with customers to build up volumes.

– Which risks do you see as key for the terminal – security, energy, logistics/traction, transport constraints, or the broader economy – and how do you factor them into your financial model and long-term contracts?

– The main risk is air attacks. There have not been too many in that region, but some have happened quite close, and that is the most concerning risk. It would be easy for the enemy to destroy a critical asset, which would have a major negative impact. That is also why we balance how much we want to be publicly visible. 

The second risk is the availability of traction in Ukraine. The third major risk is the general economic situation: if production and demand are reduced, much less cargo will flow.

We have modelled various scenarios and hope that even in the worst case there will be positive development in the medium term. On energy, we can operate without grid power, so we see this risk as mitigated.

– Many investors mention Ukrainian bureaucracy and the regulatory environment. What administrative barriers have you faced so far (permits, approvals, procedures)?

– We have a local partner who takes care of regional and national bureaucracy and ensures we comply with all requirements. As a result, we have not faced major delays regarding permits.

What was more difficult for us was transferring money from Europe to Ukraine to pay the Ukrainian side when we acquired the share. That process was complicated, and we were lucky to have a bank that could support it. Also, the fact that it is currently not possible to take money out of Ukraine is not particularly inviting for foreign investors.

– You mentioned challenges, but did you also find something that worked well – especially on permits and approvals?

– We did not work on this directly, but our local partner made an effort to ensure everything was handled quickly and efficiently on the government side. That worked quite well. We have not faced major delays – certainly not more than we would typically see in Germany.

– Beyond logistics, what spillover effects do you expect for Zakarpattia – jobs, contractors, development of local logistics/service companies, and additional infrastructure investment?

– We are creating new jobs, which should have a positive impact on the regional economy through standard multiplier effects. As the corridor becomes more efficient and better known, more companies will use it. 

You may see more traffic in the region, more people coming in, and more local spending. I don’t know whether this investment alone will trigger many new companies being built, but it should create additional economic activity in the region.

– Can you estimate how many jobs will be created for local people?

– When we took over, there were around 30 employees. Depending on volume growth, we expect this to increase to 100+.

– How do you see Eurobridge’s role in the long-term logistics map of Europe and Ukraine? Could this terminal become a key link in a land corridor connecting Baltic/North Sea ports or the Black Sea with Ukraine’s industrial regions?

– In my view, this is one of the main traditional East-West corridors in Europe. It can be a key link connecting Ukraine to Southern Europe – especially the Northern Adriatic – and to Western Europe. I am less certain about very large flows toward North Sea ports; it is more likely oriented toward the Northern Adriatic.

– What about financing – given the risks, how is the investment funded?

– We have an investment guarantee from the German government and preferential funding from a German state-owned financial institution (DEG/DEGI).

– Did you try to find financing outside Germany, for instance from international financial institutions?

– No. Germany wants to support such investments and is providing strong financial instruments, so there was no need to approach international financial institutions.

– Did you try to get financing from the Ukrainian government, or consider it?

– No. Given what we know about the situation and what we see publicly, the Ukrainian government is not in a position to provide significant funding or large “gifts” at the moment.