HMM Plans To Invest $17.4 Billion To Become A Global Green Shipping Leader

South Korea’s leading shipping company, HMM, plans to invest KRW 23.5 trillion (approximately $17.48 billion) by 2030.

The investment aims to strengthen HMM’s position as a global leader in environmentally friendly shipping and logistics.

The investment will be allocated to four major areas: KRW 12.7 trillion for container shipping, KRW 5.6 trillion for bulk transportation, KRW 4.2 trillion for integrated logistics, and KRW 1 trillion for competitiveness enhancement.

A major section, KRW 14.4 trillion or over 60% of the total investment, has been allocated to sustainable management projects, including green facilities and low-carbon ships.

HMM plans to invest KRW 11 trillion to expand its container fleet to 130 vessels with a capacity of 1.55 million TEU (Twenty-foot Equivalent Units).

The expansion will help the company adapt to global shipping alliance reconfigurations. An additional KRW 1.7 trillion will be invested in container boxes to improve operational efficiency.

By 2030, HMM plans to acquire around 70 green vessels and establish a carbon-neutral ecosystem across all transportation segments by 2045.

HMM will invest KRW 5.6 trillion to expand its bulk fleet from 36 to 110 vessels, increasing its capacity to 12.56 million dwt (Dead Weight Tonnage). This expansion will diversify HMM’s portfolio and establish a presence in the eco-friendly energy transportation sector.

The company also plans to invest KRW 4.2 trillion to upgrade its shipping and logistics infrastructure. Investments will be made to expand terminals, acquire new port facilities, and expand HMM’s Off Dock Container Yard (ODCY) business to provide complete end-to-end services.

HMM plans to spend KRW 1 trillion on ship engine retrofitting, securing green fuel supply chains, and digitalization to improve operational stability. The investment also includes the development of new, sustainable businesses and enhancements of organizational and human resources.

Kim Kyung Bae, the President and CEO of HMM, reaffirmed the company’s commitment to establishing a resilient business portfolio and becoming a global leader in environmentally responsible shipping. He emphasized the necessity of strengthening partnerships and providing better service to clients.

HMM’s financial reports showed an impressive increase in revenues and net profits for the first half of the year. Revenue increased 18.6% to KRW 4.99 billion, while net profit increased 88% to KRW 1.15 billion, resulting in a 21.1% operating margin, one of the highest among global carriers.

Besides the investment, HMM has also announced the formation of the Premier Alliance with existing Asian partners Ocean Network Express (ONE) and Yang Ming, which is set to begin in February 2025.

The company’s planned privatization deal with Harim Group and a local private equity firm fell through earlier this year.

HMM, brought under state control in 2016 after experiencing severe financial issues, continues to navigate the evolving shipping landscape with an increased focus on sustainability and growth.

Reference: HMM

HMM Plans To Invest $17.4 Billion To Become A Global Green Shipping Leader appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News