South Korean carrier HMM will invest more than KRW 15 trillion ($11.4 billion) in various initiatives including securing critical assets such as ships, terminals and logistics facilities over the next five years , from 2022 to 2026.
“The strategy includes expanding the container fleet capacity to 1.2 million TEUs from the current 820,000 TEUs by 2026,” an official statement read.
The expansion of the bulk business is also planned by increasing its fleet to 55 vessels from the current 29 vessels during the same period, the statement added.
“Our strategy is to ensure the perpetual growth of HMM under the new vision – a leading global company generating lasting value for the world,” said Kim, Kyung Bae, Chairman and CEO of HMM. “We will continue to lead efforts to contribute to the global community.”
HMM’s strategy includes five priority areas:
Container and bulk business
HMM will expand its service network with a 1.2 million TEU green container fleet by 2026. HMM also plans to secure logistics infrastructure such as terminals in key locations to strengthen its profit structure. In addition, the bulk fleet will be cemented with a fleet of 55 vessels, significantly increased by 90% compared to the current 29 vessels.
HMM will continue to improve environmentally friendly services for carbon neutrality in 2050 and explore the likelihood of ordering vessels using alternative fuels in the future. HMM will also carry out company-wide R&D efforts on 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 later apply freight rate solutions powered by artificial intelligence.
HMM will invest KRW 150 billion ($114 million) in digitization to improve the electronic platform and accelerate ERP upgrades.
HMM aims to strengthen its businesses by developing a client portfolio, leveraging its commercial power and know-how and training its employees. He will organize dedicated teams to accomplish strategic projects and explore new business opportunities.
Investment and finance
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 securing critical assets such as ships, terminals and logistics facilities, while KRW 5 trillion ($3. $.8 billion) should be allocated to future strategic projects aimed at diversifying HMM’s business. .