HMM has decided to proceed with massive investment in several initiatives aiming to diversify its business portfolio for future growth.
In the mid-to-long term strategy presentation held in the company’s headquarters in Seoul today (14 July), HMM announced it will expand its container ship fleet from 820,000 to 1.2 million TEU by 2026. Additionally, HMM is expected to enhance its bulk business increasing its fleet to 55 ships from the current 29 ships on the same timetable.
South Korea’s national flagship carrier is expected to invest more than US$11.4 billion in a range of projects, including securing core assets such as vessels, terminals, and logistics facilities throughout the upcoming five years.
HMM explained that “the future strategy has been established to respond to growing uncertainty arising from ever-changing business circumstances and lay a solid foundation for sustainable growth.”
Apart from the boost of its container and bulk sectors, HMM noted it will continue to enhance environmentally-friendly services for carbon neutrality in 2050 and explore the likelihood of ordering ships using alternative fuels in the future.
The South Korean shipping company added it will also make Research & Development (R&D) efforts into the use of carbon-neutral fuels in cooperation with industrial players.
“Our strategy is to ensure perpetual growth of HMM under the new vision – a global leading company generating sustainable value for the world,” commented Kim, Kyung Bae, HMM President & CEO.
Furthermore, the company plans to proceed with its digitalisation process by improving online-based ‘e-platform’ and accelerating Enterprise resource planning (ERP) upgrades. HMM recently launched ‘Hi Quote’, an online sales platform based on its own technological capabilities and aims to integrate its inland logistics network into Hi Quote and apply freight rate solutions powered by Artificial Intelligence.
Moreover, HMM wants to strengthen its business areas by developing a customer portfolio, enhancing sales power and expertise, and training employees. Especially, the company said it will organise teams to accomplish strategic projects and explore new business opportunities.