HMM announces $11.4bn investment plan
Strategy includes expanding fleet capacity of containerships to 1.2 million TEU from the current 820,000 TEU by 2026.
South Korean carrier HMM will invest more than KRW 15 trillion ($11.4 billion) in various initiatives including securing core assets such as ships, terminals, and logistics facilities throughout the upcoming five years from 2022 to 2026
"The strategy includes expanding the fleet capacity of containerships to 1.2 million TEU from the current 820,000 TEU by 2026," says an official statement.
The extension of bulk business is also scheduled by increasing its fleet to 55 ships from the current 29 ships during the same time, the statement added.
"Our strategy is to ensure perpetual growth of HMM under the new vision - a global leading company generating sustainable value for the world," says Kim, Kyung Bae, President & CEO, HMM. "We will continue to drive efforts for contribution to the global community."
HMM's strategy includes five focus areas:
Container and bulk business
HMM will expand its service network with an eco-friendly container fleet of 1.2 million TEU by 2026. HMM also plans to secure logistics infrastructure such as terminals in key locations to reinforce its profit structure. Moreover, the bulk fleet will be cemented with a fleet of 55 ships, substantially increased by 90 percent from the current 29 ships.
HMM will continue to enhance environmentally-friendly services for carbon neutrality in 2050, and explore the likelihood of ordering ships using alternative fuels in the future. HMM will also make enterprise-wide R&D efforts into the use of carbon-neutral fuels in cooperation with industrial players.
HMM recently launched Hi Quote, an online sales platform based on its own technological capabilities. HMM plans to integrate its inland logistics network into Hi Quote, and apply freight rate solutions powered by Artificial Intelligence at a later date.
HMM will invest KRW 150 billion ($114 million) in digitisation to improve the e-platform and accelerate ERP upgrades.
HMM aims to strengthen its business areas by developing a customer portfolio, enhancing sales power and expertise, and training employees. It will organise dedicated teams to accomplish strategic projects and explore new business opportunities.
Investment and finances
HMM plans to invest more than KRW 15 trillion ($11.4 billion) over the next five years. Of the KRW 15 trillion, KRW 10 trillion ($7.6 billion) will be allocated to secure core assets such as ships, terminals, and logistics facilities while KRW 5 trillion ($3.8 billion) is scheduled to be assigned in future strategic projects to diversify HMM's business.