Posted on September 11, 2024
HMM maps out a mid-to-long-term strategy to expand its business portfolio for future growth and drive itself to be a global green shipping and logistics carrier.
Under the sustainable growth plan, HMM will invest a total of KRW 23.5 trillion by 2030 ; △Container business (KRW 12.7 tn), △ Bulk business (KRW 5.6 tn), △Integrated logistics business (KRW 4.2 tn), △ Competitiveness enhancement (KRW 1 tn).
HMM will enhance its capacity to deal promptly with global environmental regulations. It is considering an effort to accelerate achieving Net Zero carbon emissions by the target year 2045. HMM announced that it will allocate KRW 14.4 trillion over 60% of the total investment(KRW 23.5 tn) to sustainable management initiatives, including low-carbon ships and green facilities.
① Container transportation business
HMM plans to inject KRW 11 trillion to secure an operational fleet of 1.55 million TEU (130 vessels) to prepare for the reorganization of global shipping alliances and strengthen the core business’s competitiveness. Considering the increasing fleet size, HMM will also invest KRW 1.7 trillion in container boxes to enhance operational efficiency.
To meet the market’s demand for eco-friendly transportation, HMM aims to acquire around 70 green vessels by 2030 and establish a carbon-neutral ecosystem across all transportation segments by 2045.
② Bulk transportation business
HMM aligns its plans to put KRW 5.6 trillion to expand its bulk business by extending its fleet to 110 vessels (12.56 million DWT) from the current 36 vessels. Strengthen profitability by constructing a stable portfolio that is not biased to a particular bulk market(Tanker/Dry). HMM intends to diversify its business by establishing a presence in the eco-friendly energy transportation sector and gaining a significant market share at an early stage.
③Integrated logistics business
HMM plans to allocate KRW 4.2 trillion to enhance its shipping and logistics infrastructure. To improve customer service, HMM will extend terminals and acquire additional port terminals for important bases to accommodate the growing capacity. Furthermore, HMM aims to expand its Off Dock Container Yard(ODCY) business and integrated logistics business to provide end-to-end services.
④Competitiveness enhancement
HMM is actively moving toward Net Zero 2045 to strengthen its response to environmental regulations and achieve carbon neutrality. To reach this goal, HMM will spend KRW 1 trillion on retrofitting ship engines, securing a supply chain for green fuels, and improving operational stability and efficiency through digitalization. Moreover, HMM plans to develop new sustainable businesses and strengthen the organization and human resources that will execute the 2030 mid-to-long-term strategy.
Kim Kyung Bae, HMM President & CEO, commented, “By strengthening partnerships founded on trust, we are enhancing the quality of service we deliver to our customers.”, “We remain committed to developing a resilient business portfolio and positioning ourselves as a global leader in eco-friendly shipping for the future.”
