The South Korean shipping company HMM plans to invest almost US$17.5bn in the expansion of its fleet by the end of the decade.
Almost half of this sum will be spent on container shipping. Alphaliner currently has 130 ships with a capacity of around 870,000 TEU for South Korea’s largest shipping company. This makes it No. 8 in the industry. According to the plans, the fleet is set to almost double to 1.55 million TEU by 2030. HMM plans to acquire around 70 environmentally friendly ships by 2030.
However, investments are also to be made in other sectors. The number of bulkers and tankers is to almost triple from 36 to 110 ships with a carrying capacity of 12.56 million dwt. Further terminal investments are also planned, it is said.
HMM aims for climate neutrality by 2045
At the same time, the Koreans are clearly steering a “green” course. The shipping company wants to be climate-neutral by 2045. “We remain committed to developing a resilient business portfolio and positioning ourselves as a global leader in green shipping for the future,” says Kim Kyung Bae, President and CEO of HMM.
HMM reported an 18.6% increase in revenue to KRW 4.99bn in the first half of the year, an 88% increase in net profit to KRW 1.15bn and an operating margin of 21.1%, which is among the highest of any global shipping company.
The Korean shipping company is one of three members of the “Premier Alliance” announced the previous day, the successor to “THE Alliance”, which previously also included Hapag-Lloyd. MSC, the No. 1 in the industry, is on board as a partner on some routes.
The long-planned privatisation of South Korea’s flagship failed in February of this year. The Harim Group, whose bid had been selected by the state banks together with a local private equity firm, withdrew its offer. HMM was placed under state control in 2016 following a financial crisis.
