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HMM unveiled its mid-to-long-term strategy to expand its business portfolio and drive towards becoming a leading global ‘green’ shipping and logistics carrier
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Under its sustainable growth plan, the South Korean ocean carrier will invest a total of KRW 23.5 trillion by 2030
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The container shipping company aims to achieve Net Zero carbon emissions by year 2045
HMM unveiled a mid-to-long-term strategy to expand its business portfolio for future growth and drive towards becoming a leading global green shipping and logistics carrier.
Under its sustainable growth plan, the South Korean ocean carrier will invest a total of KRW 23.5 trillion (US$17.5 billion) by 2030 while enhancing its capacity to deal promptly with global environmental regulations.
Over 60% of the total investment will be allocated to sustainable management initiatives, including low-carbon ships and green facilities, HMM said in a statement.
The container shipping company aims to achieve Net Zero carbon emissions by target year 2045.
The planned KRW 23.5 trillion investment will be earmarked as follows:
– Container transportation business (Total: KRW 12.7 trillion)
- Secure an operational fleet of 130 vessels (1.55 million TEU) to prepare for the reorganization of global shipping alliances and strengthen the core business’s competitiveness (Total: KRW 11 trillion)
- Additional container boxes to enhance operational efficiency vis-à-vis the increasing fleet size (Total: KRW 1.7 trillion)
- Acquire around 70 green vessels by 2030 and establish a carbon-neutral ecosystem across all transportation segments by 2045 to meet market demand for eco-friendly transportation
– Bulk transportation business (KRW 5.6 trillion)
- Extend 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)
- Diversify into the eco-friendly energy transportation sector and gaining a significant market share at an early stage
– Integrated logistics business (KRW 4.2 trillion)
- Enhance its shipping and logistics infrastructure
- Extend terminals and acquire additional port terminals for important bases to accommodate the growing capacity for its customers
- Expand the Off Dock Container Yard and integrated logistics businesses to provide end-to-end services
– Competitiveness enhancement (KRW 1 trillion)
- Retrofit ship engines, secure a supply chain for green fuels, and improve operational stability and efficiency through digitalization
- Develop new sustainable businesses and strengthen the organization and human resources that will execute the 2030 strategy
“By strengthening partnerships founded on trust, we are enhancing the quality of service we deliver to our customers,” said HMM president and chief executive officer Kim Kyung Bae.
“We remain committed to developing a resilient business portfolio and positioning ourselves as a global leader in eco-friendly shipping for the future,” he added.
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