HMM to invest $7.64 billion in ships, ports and logistics facilities
Korean shipping company HMM has set out a plan to invest more than 15 million KRW ($11.47 billion) until 2026 with two-thirds devoted to ships, terminals and logistics facilities.
HMM CEO and Chairman Kim, Kyung Bae and managers announced the vision at HMM headquarters (Image: HMM)
HMM revealed its medium and long-term strategy, saying it will expand the capacity of its container shipping fleet to 1.2 million TEU by 2026 from 820,000 TEU today.
The Korean shipping company also aims to expand its dry bulk shipping fleet to 55 ships from 29 at the moment.
“HMM also plans to secure logistics infrastructure such as terminals in key locations to reinforce its profit structure,” the company said. Of the planned investment of 15 million KRW over five years, 10 million KRW ($7.64 billion) will be for ships, ports and logistics facilities.
Kim, Kyung Bae, President & CEO of HMM, said: "Our strategy is to ensure perpetual growth of HMM under the new vision - a global leading company generating sustainable value for the world."
In addition to the container and bulk shipping businesses, HMM is investing in strategic areas such as digital and the environment.
With an eye on the environment, the company will order ships capable of using alternative fuels in the future and contribute to R&D efforts to develop carbon-neutral fuels.
On the digital side, HMM plans to further develop the recently launched “Hi Quote” platform and add AI technology. The company plans to invest KRW 150 billion in digitalization technology by improving the online 'e-platform' and accelerating the upgrade of the ERP system.
HMM also aims to strengthen its business organization and establish dedicated teams for strategic projects and to explore new business opportunities.
Like its competitors and partners in the container shipping industry, HMM has had a major financial turnaround and success over the past two years as freight rates hit all-time highs. As a result, the Korean shipping company has a large amount of cash to invest in future business expansion.
Read more:
- HMM, SM Line and Pan Ocean launch first service under K-Alliance
- Rising freight rates help HMM reach a profit of $4.4 billion in 2021
Source: Phaata.com (According to HMM, SeatradeMaritime)
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