HMM To Expand Its Algeciras Terminal As Transhipment Hub

South Korean Carrier HMM submitted plans to expand its terminal in Algeciras, Spain. The plan, which was lodged with the Algeciras Port Authority, outlines €150m ($177m) expansion project.

HMM will invest €35m, and the rest will be funded by CMA CGM, the second-largest shareholder of the terminal, along with external financing.

The facility handles HMM’s flagship 24,000 TEU megamax vessels, including the HMM Algeciras.

It is a semi-automated terminal acquired by HMM in 2017 and spans 300,000 sq m with an annual throughput capacity of 1.6 million TEU.

Phase 1 of the expansion will push the footprint to 460,000 sq m and lift throughput capacity to 2.1 million TEU by 2028.

A phase 2 development will increase the capacity to 2.8 million TEU, and for this long-term vision, HMM will extend its terminal operation rights from 2043 to 2065, giving it a 22-year lease extension.

A key transhipment hub in Southern Europe, Algeciras lies at the crossroads of the Mediterranean and Atlantic Trade lanes, making it crucial for Asia-Europe services and North-South feeder networks.

The expansion comes as HMM is aiming to broaden its terminal development and is seeking overseas investment opportunities as part of its strategy to diversify revenue and enhance its control over the logistics infrastructure.

Source: Maritime Shipping News