HMM unveils plans to invest $18 bil. by 2030

HMM CEO Kim Kyung-bae, center, speaks during a press conference at the company headquarters in Seoul, Tuesday. Courtesy of HMM

HMM will invest 23.5 trillion won ($18 billion) by 2030, including 14.4 trillion won allocated for eco-friendly management, the nation’s largest shipping firm said Tuesday.

The company also aims to achieve 15 trillion won in annual sales and 43.2 trillion won in assets by that time.

However, it remained cautious about its creditors’ plan for its privatization, as the sale of the struggling shipping firm to Harim Group fell through earlier this year, due to differing views on its valuation.

A day before announcing its long-term investment plan, HMM revealed its intention to continue its partnership with Japan's ONE and Taiwan's Yang Ming until 2030 through the Premier Alliance. This alliance was recently formed after their former German partner, Hapag-Lloyd, left the alliance in February.

Mentioning a slot exchange agreement between MSC and the Premier Alliance, the Korean firm said that the European shipping firm will fill the vacancy left by Hapag-Lloyd, which joined hands with Maersk for the Gemini Cooperation.

According to HMM, the Premier Alliance will provide services on 11 European routes. THE Alliance offered services on eight European routes.

“Through a slot exchange agreement with MSC, we have been able to provide better services than any other alliances,” HMM CEO Kim Kyung-bae said during a press conference.

“Although there had been concerns over the dissolution of 2M and Hapag-Lloyd’s departure, we have been able to form a stronger alliance.”

He added that his company seeks to become a sustainable logistics firm with a diverse business portfolio, including container ships, bulk ships and land logistics services.

To this end, HMM decided to invest 11 trillion won by 2030 to increase its container fleet to 1.5 million TEU from 920,000 TEU. It will also invest 5.6 trillion won by then to expand its bulk carrier fleet to 12.5 million DWT from 6.3 million DWT.

Additionally, 4.2 trillion won will be used for the integrated logistics services, while 1 trillion won will be spent on renovation of ships, supply of eco-friendly fuel and digital transformation.

HMM explained that it will spend over 60 percent of its planned investments for eco-friendly management, so that it can achieve net-zero by 2045.

The company also said that it has invested 6.5 trillion won, since it announced in 2022 that it would invest 15 trillion won by 2026.

“We aim to increase our market share to up to 5 percent from the current 3 percent,” the HMM CEO said.