HMM to invest US$11Bn in long-term growth strategy
July 24, 2022 Maritime Safety News
he strategy includes expanding the fleet capacity of its container ships to 1.2M TEU (up from the current 820,000 TEU) by 2026 and extending its bulk business by growing the fleet to 55 ships from the current 29 ships in the same period.
In addition to expanding its fleet, HMM also plans to secure logistics infrastructure such as terminals in key locations to reinforce its profit structure. The line will investigate ordering ships using alternative fuels in the future.
In addition to its efforts towards the container and bulk shipping business and an environmental strategy, it will focus on digitalisation, improving effectiveness and areas of investment.
Regarding the digital transformation, the line said it recently launched Hi Quote, an online sales platform based on its own technological capabilities. Further, it plans to integrate its inland logistics network into Hi Quote and apply A-powered freight rate services at a later date.
HMM president and chief executive Kim Kyung Bae said, “Our strategy is to ensure perpetual growth of HMM under the new vision – a global leading company generating sustainable value for the world,” and added, “We will continue to drive efforts to contribute to the global community.”
In all, HMM is expected to invest ₩15Tn (US$11.3Bn) in a range of incentives between 2022 and 2026. The operator said the future strategy was established to respond to “growing uncertainty arising from ever-changing business circumstances and lay a solid foundation for sustainable growth.”
₩10Tn (US$7.5Bn) will be allocated to securing core assets such as ships, terminals, and logistics facilities. ₩5Tn (US$3.7Bn) will be allocated to future strategic projects to diversify HMM’s business.
A further ₩150Bn (US$113M) will go towards digitalisation by improving its e-platform and accelerating enterprise resource planning upgrades.
Source: https://www.rivieramm.com/news-content-hub/hmm-to-invest-us113bn-as-part-of-long-term-growth-strategy-72026
