HMM to invest $7.64bn in ships, terminals and logistics

Revealing its mid-to-long term strategy HMM said it would expand the capacity of its container shipping fleet to 1.2m teu by 2026 from 820,000 teu at present.

The Korean shipping company also aims to expand its dry bulk shipping fleet to 55 vessels from 29 at the current time.

“HMM also plans to secure logistics infrastructure such as terminals in key locations to reinforce its profit structure,” the company said. Of the planned KRW15trn investment over five years KRW10trn ($7.64bn) will go to ships, terminals and logistics facilities.

Kim, Kyung Bae, HMM President & CEO, stated: "Our strategy is to ensure perpetual growth of HMM under the new vision - a global leading company generating sustainable value for the world"

Beyond the container and bulk businesses HMM is investing in areas such as environmental and digital strategy

Looking to the environment the company will explore the likelihood of ordering ships capable of using alternative fuels in the future and contribute to R&D efforts to develop carbon neutral fuels.

In terms of digitalisation HMM plans to further develop its recently launched “Hi Quote” platform and add AI capabilities. The company plans to invest KRW150bn in digitalissation by improving online-based 'e-platform' and accelerating ERP upgrades.

HMM also aims to strengthen its business organisation and set-up dedicated teams for strategic projects and explore new business opportunities.

As with its competitors and partners in container shipping HMM has enjoyed a huge reversal in its financial fortunes over the last two years as freight rates have hit unprecedented levels. As a result the Korean shipping company has large amounts of cash to invest in the future expansion of its business.

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HMM to invest $7.64 billion in ships, terminals and logistics