Investment plan

HMM rolls out cash spend vision with $11.5 billion investment plan

Hyundai Merchant Marine (HMM) presented its KRW 15 trillion ($11.45 billion) growth plan to become a leading global transportation and logistics company.

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 invest its funding in a range of initiatives, including securing critical assets such as vessels, terminals and logistics facilities over the next five years, from 2022 to 2026.

The company 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 undertake company-wide R&D efforts on the use of carbon-neutral fuels in cooperation with industrial players, the company said in its announcement.

Regarding digitalization, 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.

Kim Kyung Bae, Chairman and CEO of HMM, said, “Our strategy is to ensure the perpetual growth of HMM under the new vision – a leading global company generating lasting value for the world.

“We will continue to lead efforts to contribute to the global community.”

HMM recorded its best quarterly profits in the first quarter of 2022 thanks to higher freight rates.

The company reported revenue growth of 103% to KRW 4.9 trillion ($3.8 billion) in the first quarter of 2022.