HMM, one of the world’s largest shipping and logistics companies, announced a new ambitious investment plan to cement its position in global markets. Besides that, by 2030, the company will be investing KRW 23.5 trillion, approximately USD 18 billion, in the expansion of container, bulk, and integrated logistics businesses while strengthening overall competitiveness. Another big part of this investment involves sustainable management, whereby HMM is targeting to achieve Net Zero in carbon emissions no later than 2045.
KRW 23.5 Trillion Investment Breakdown
In conclusion, this strategic investment by HMM is part of its long-term view for further diversification of its business while strengthening the fleet to reach global standards on sustainability. This investment, accordingly, looks like this:
Container business: KRW 12.7 trillion
Bulk business: KRW 5.6 trillion
Integrated logistics business: KRW 4.2 trillion
Competitiveness enhancement: KRW 1 trillion
This large investment not only underlines HMM’s commitment to maintaining its market leader position in shipping and logistics but also demonstrates a move of the company towards greener shipping, as the environmental laws are becoming increasingly binding around the globe.
Container Transportation Business
The largest investment, at KRW 12.7 trillion, will go toward strengthening the container transport business. It intends to invest KRW 11 trillion in developing a fleet of 1.55 million TEU and 130 ships by 2030. This development is associated with the shifting trend of global shipping alliances, ensuring HMM consolidates a place as a major player within the container shipping industry.
Of this, an additional KRW 1.7 trillion will be spent on the acquisition of container boxes to further streamline operational efficiency in global operations. In all, the company intends to expand its fleet to about 70 green vessels by 2030 that will be built to operate on much-reduced carbon emissions. This will position the company well on its journey toward the goal of carbon neutrality no later than 2045.
Bulk Transportation Business
It will invest KRW 5.6 trillion in its bulk transportation business, and it will expand the fleet from 36 vessels at present to 110 vessels, with a total capacity of 12.56 million DWT. This investment will give HMM significant diversity in its bulk transportation portfolio to avoid overdependence on any particular market segment, either tankers or dry cargo.
Besides traditional bulk transportation, HMM aims to enter the eco-friendly energy transportation business. In this regard, through early market participation in such an emergent industry, active contribution by HMM is desired toward the transition of the world into cleaner sources of energy. In its strategy for the bulk transportation business, the company focuses on securing a balanced and resilient portfolio in the highly competitive global shipping industry.
Integrated Logistics Business
It also intends to invest KRW 4.2 trillion in the integrated logistics business in its plan to offer a full range of shipping and logistics services. It aims at improving the shipping and logistics infrastructure of the company with the acquisition of port terminals in additional ports and ODCY business expansion.
This investment is targeted at building end-to-end services to meet the growing demand for integrated logistic services. This way, the expansion of the network and infrastructure will put HMM in a better position to offer seamless services right from the point of origin up to the final destination and, therefore, be able to further add value to customers.
Increasing Competitiveness
The last investment area will be KRW 1 trillion to reinforce the company’s competitiveness by technological development and response to sustainable use. It will serve, among other things, for the retrofitting of ships’ main engines that have already been built to enhance energy efficiency and for investing in the supply of green fuels that would result in a reduction of total emissions.
Another critical attribute of this investment is that the company will digitize its operations and work out better efficiency and lower costs along its global network. This encompasses advanced digital tools for the management of fleets, route optimization, and predictive maintenance that would enable HMM to compete in a world of shipping and logistics that keeps changing every now and then.
Commitment to Sustainability and Regulatory Compliance
Sustainability will be at the core of HMM’s strategic investment plan. It has committed to an investment of KRW 14.4 trillion in its ambition for Net Zero carbon emissions by 2045 for low-carbon ship construction and the buildup of green shipping facilities that comply with relevant national and international environmental regulations.
Along with the plans for a green fleet, HMM will seek further ways of cutting its carbon footprint through the development of alternative fuels and deployment of advanced energy-efficient technologies. This shows the company-wide strategy of not only adaptation to changing environmental legislation but also leading from the front within the shipping industry regarding sustainable developments.
Preparing for the Future
The HMM investment plan of KRW 23.5 trillion presents the company’s vision of long-term leadership in eco-friendly shipping and logistics at the global level. The further strengthening of its fleet, logistics network expansion, and investment in green technologies will further brace HMM to meet the future challenges and opportunities.
With ever-stricter environmental regulations, customer demand is increasing for greener business practices. By reacting ahead of time to sustainability and innovation, HMM can stay competitive in the global shipping and logistics markets. This corporate leader’s pledge to achieve Net Zero emissions no later than 2045 speaks to its responsibility to do its part in the fight against climate change.
Conclusion
This bold investment plan attests to HMM’s commitment to sustainability, innovation, and operational excellence. By 2030, the company will be in a better place to expand its business globally and make shipping and logistics services more competitive. With the aim of reaching Net Zero in 2045, HMM spearheads a new era for greener global shipping.
Source: HMM