HMM plans $17.6 billion investment for sustainable growth
Announces allocation of KRW 14.4 trillion ($10.8 billion) for sustainable initiatives including low-carbon ships
South Korean carrier HMM will invest KRW 23.5 trillion ($17.6 billion) by 2030 as it 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.
The investments will include container business (KRW 12.7 trillion), bulk business (KRW 5.6 trillion), integrated logistics business (KRW 4.2 trillion) and competitiveness enhancement (KRW 1 trillion), says an official release.
HMM is considering efforts to accelerate achieving Net Zero carbon emissions by the target year 2045, and announced an allocation of KRW 14.4 trillion ($10.8 billion) or over 60 percent of the total investment (KRW 23.5 trillion) for sustainable management initiatives, including low-carbon ships and green facilities, the release added.
"HMM plans to inject KRW 11 trillion ($8.3 billion) to secure an operational fleet of 1.55 million TEU (130 vessels) to prepare for the reorganisation 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."
HMM aims to acquire around 70 green vessels by 2030 and establish a carbon-neutral ecosystem across all transportation segments by 2045.
"HMM will 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."
Kim Kyung Bae, President & CEO, HMM says: "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."
