South Korea's HMM unveils US$18 billion portfolio expansion

South Korean shipping company HMM has confirmed that it will implement a mid-to-long-term strategy to expand its business portfolio for future growth.

Under its sustainable growth plan, HMM will invest a total of KRW23.5 trillion (US$18 billion) by 2030. The company's container business will receive an investment of KRW12.7 trillion (US$9.5 billion), the bulk business will receive KRW5.6 trillion (US$4.2 billion), and the integrated logistics business will receive KRW4.2 trillion (US$3.1 billion), while another KRW1 trillion (US$750 million) will be allocated for competitiveness enhancement initiatives such as retrofitting of ship engines to enable operation on green fuels.

HMM intends to invest KRW11 trillion (US$8.2 billion) to secure an operational fleet of 1.55 million TEU (distributed among 130 vessels) to prepare for the reorganisation of global shipping alliances and strengthen the core business's competitiveness. Considering the increasing fleet size, HMM will also invest KRW1.7 trillion (US$1.3 billion) in container boxes to enhance operational efficiency.

To meet the market's demand for eco-friendly transportation, HMM aims to acquire around 70 green vessels by 2030 and establish a carbon-neutral ecosystem across all transportation segments by 2045.

HMM also plans to put KRW5.6 trillion to expand its bulk business by extending its fleet to 110 vessels (12.56 million DWT total) from the current 36 vessels. The company intends to diversify its business by establishing a presence in the eco-friendly energy transportation sector and gaining a significant market share at an early stage.

HMM plans to allocate KRW4.2 trillion to enhance its shipping and logistics infrastructure. To improve customer service, HMM will extend terminals and acquire additional port terminals for important bases to accommodate the growing capacity.