by Lloyd's List
10 September 2024 (Lloyd's List) - SOUTH Korea’s largest container shipping line HMM has unveiled plans to invest Won23.5trn ($17.4bn) by 2030, to enhance global competitiveness and become the country’s leading integrated logistics company.
Over 60% of the total, or Won14.4trn, will fund green investments to achieve net zero emissions by 2045, five years earlier than its previous 2050 target.
Investments will focus on low-carbon ships, green businesses and facilities, with the plan adding details to the company’s long-term strategy first outlined in April. At that time, HMM announced expanding container fleet capacity from current 920,000 teu to 1.5m teu, and bulk fleet capacity from 36 vessels totalling 6.3m dwt to 110 vessels of 12.3m dwt.
In the container sector, Won11trn will be injected for fleet expansion by 2030. Separately, Won1.7trn will be used to secure container boxes to keep pace with the increasing fleet capacity.
It will inject Won11trn by 2030 for containership fleet expansion, and Won1.7trn for acquiring boxes to match increased capacity. HMM aims to secure around 70 low and zero carbon ships and achieve carbon neutrality on all routes by 2045.
Another Won4.2trn will fund new terminals and facilities supporting expanded container services. Entering the high-margin off-dock container yard business is planned to enable end-to-end services and comprehensive logistics capabilities.
In the bulker sector, it plans to build a diversified portfolio focused on profitability rather than a single market. A total of Won5.6trn will expand the fleet, while early entry into eco-friendly energy delivery will also be pursued.
To achieve its net-zero goal earlier, the company will also invest Won900bn in ship retrofits and green fuel supply chains, plus Won100bn to build a digital-based organisation.
HMM also confirmed it will stick with Ocean Network Express and Yang Ming in the new Premier Alliance announced yesterday.
With Hapag-Lloyd leaving The Alliance, the three remaining members will continue their partnership under the rebranded grouping for five years from February 2025 and have established a slot-sharing cooperation with Mediterranean Shipping Company to expand Asia-Europe trade exposure to 11 loops from eight.
HMM also plans to strengthen its sole India-Mediterranean route, establish new India-North Europe and India-South America routes, and consider joining the Atlantic trade.
