COVER STORY - ROADMAP TO SUCCESS

MONEY interviews EDWARD HILI, executive director of Hili Company, on the company’s roots and the various sectors it operates in today both locally and internationally.

Hili Company has been operating since 1923. What explains its longevity?

The company’s roots do indeed date back to 1923 when my father’s uncle, Carmelo Caruana, set up his namesake company in commodity trading before venturing into ship brokering and chartering. He was intent from the start on rooting the business in a solid reputation with enough flexibility to explore opportunities.

Much has changed in the century since then. The company has evolved with the opportunities it embraced, both in Malta and overseas, as well as the challenges that came about.

What remained constant throughout were the key principles. And I believe that this was key for us to build an organisation for the long-term. We remain steadfast in our belief that reputation and credibility take years to build but can be lost in an instant. We put a lot of energy and thinking into the trust we nurture in our relationships with clients and stakeholders. This is what makes our clients come back to us again and again.

We are also true to our heritage of remaining nimble and flexible, ensuring that we give timely responses to an ever-changing environment. To do so we have crafted, and maintain, lean structures with a hands-on approach.

Baltic Container Terminal, Latvia, is the only dedicated container terminal in Riga

Your shipping terminals and logistics operations have now spread to various parts of Europe. How have you kept up with the advances in this sector?

Despite the shipping industry’s long history, the sector is by no means immune to change and, particularly, technological advances. In the terminals and logistics business, technology is a key driver of our competitive advantage. It increases the efficiency of our operations and facilitates the quality of service that clients have come to expect from us. For these reasons, we have a vision and a rolling plan in place which guides our longterm technology strategy at all levels of our operations.

We have invested heavily in order to ensure that our operating companies are leaders in the regions where they operate. At BCT in

Latvia, for instance, we were the first container terminal in EMEA to implement the latest Navis terminal operating system. We are now in the final stages of implementing that same system at our terminal in Venice and plan to go live in the next couple of months.

One way local companies look for new beginnings is to venture beyond our shores. Although a few succeed to some extent, their core business remains in the local market. Hili Company, on the other hand, has become truly global. What's your secret?

When the baton was passed on to my father and his brothers in the 1970s they soon recognised the need to expand beyond Malta’s shores. The firm gradually diversified, developing a portfolio of businesses in port and logistics activities, casual dining with the McDonald’s franchise, engineering, real estate and others.

In 2012, Hili Company was restructured, divesting it of certain businesses in order to sharpen the strategic focus on the port terminals and logistics business, and to develop the energy and real estate arms of the business. That was the turning point which made Hili Company what it is today.

WE BELIEVE THAT THE REDEVELOPMENT OF STRICKLAND HOUSE, THE FORMER TIMES BUILDING, IN VALLETTA, IS A TRULY UNIQUE OPPORTUNITY TO CREATE SOMETHING SPECIAL IN OUR HISTORICAL CAPITAL CITY

I believe that the key to our international success lies in our hard-earned competence and know-how. The port terminal business, for instance, is a fairly niche area and one in which we have developed deep expertise which is globally recognised by the industry.

Our ability to learn and adapt is also important. Wherever we operate, we make the necessary investments, in monetary terms and time put in, to ensure a proper understanding of each country and region. This entails developing the necessary networks and physical presence that are vital to success. We also work closely with trustworthy and capable local partners. This is an important element to develop a local presence, particularly in the early stages of a new venture.

Hili Company is venturing into the sustainable energy sector. Why and which specific projects are on the cards?

We recognise that in order to preserve the delicate balance of our planet’s ecology, societies must transition away from fossil fuels to sustainable and clean energy. If we are to achieve sustainable growth which does not compromise future generations, renewables are the most socially and economically attractive proposition. We are committed to becoming a significant player in this transition and have thus initiated our move into the renewable energy sector.

Currently, we have set two projects in motion, one in Malta and another in Croatia. Locally, we have commenced works on the development of a 2.4 MW solar farm. This project is on track to becoming one of the country’s first solar farms approved under Malta’s National Renewable Energy Plan.

In the next couple of months we will complete works in Croatia on the first of what has the potential to become a series of biomass gasification cogeneration plants using woodchips. Croatia enjoys an abundant supply of this natural energy source thanks to its involvement in the paper industry. It is therefore logical to make use of this raw material as a source of bioenergy.

2.4MW solar farm being developed with its joint venture partners in Malta

Another substantial new beginning for the company is taking over of the former Times building in Valletta and its conversion into upmarket residential apartments. Can you elaborate on this venture?

We believe that the redevelopment of Strickland House, the former Times building, in Valletta, is a truly unique opportunity to create something special in our historical capital city. We will be developing residences of the highest specifications, with all the amenities one would expect of such a development, including facilities such as concierge service and underground parking. Being located at the city’s highest point, the apartments will overlook the Upper Barrakka Gardens and the Grand Harbour. At the same time, we are of course sensitive to the surroundings and will build in a style that befits the idiosyncrasies of Valletta’s architecture.

Is your company looking at opportunities beyond Europe?

We believe there are exciting times ahead for the company and are constantly on the lookout for opportunities throughout Europe and beyond. Specifically, we are assessing a number of prospects in the terminals and logistics sector where we will be able to deploy our core and long-standing expertise. There are a number of particularly promising markets in which we are pursuing opportunities. At the same time, we continue to invest in our existing markets, our recent acquisition of a distribution centre in Latvia being an example.

We are also keen to grow our energy business segment, focusing on a number of investments in renewable energy production. Whether in Europe or beyond, we approach our projects with the same strategic mindset, drawing on our company’s know-how and moving forward with the drive and ambition necessary to continue to grow our business. M