HMM announces USD 17.6B investment plan for green shipping future

Published September 14, 2024

SOUTH KOREA – HMM, a South Korean shipping giant, is taking significant steps to transform its shipping operations by committing to a massive USD 17.6 billion investment by 2030, focused on sustainability and growth.

The South Korean shipping giant aims to establish itself as a leading green shipping and logistics carrier while also improving its global competitiveness.

The carrier has earmarked over 60 percent of the total investment, amounting to KRW 14.4 trillion (USD 10.8 billion), for initiatives aimed at achieving Net Zero carbon emissions by 2045.

This includes plans to acquire around 70 low-carbon ships by 2030 and invest in green shipping infrastructure.

In an official statement, HMM’s CEO Kim Kyung Bae noted, “We remain committed to developing a resilient business portfolio and positioning ourselves as a global leader in eco-friendly shipping for the future.”

In addition to the green fleet, HMM’s plan includes the construction of green facilities to reduce the environmental impact across its logistics network.

This is part of the company’s broader strategy to integrate sustainability into all aspects of its business operations.

Of the USD 17.6 billion, KRW 11 trillion (USD 8.3 billion) will be used to increase the carrier’s operational fleet to 1.55 million TEU, or 130 vessels, to help HMM maintain its position in the increasingly competitive shipping market.

This expansion is also aligned with global shipping alliances, allowing the company to stay ahead as the industry undergoes reorganization.

“We are enhancing the quality of service we deliver to our customers by strengthening partnerships founded on trust,” said Kim Kyung Bae. “By 2030, HMM will be fully equipped to handle future challenges, not only through fleet growth but also by reinforcing our logistics capabilities.”

To further improve operational efficiency, HMM will invest KRW 1.7 trillion in container boxes and allocate KRW 4.2 trillion to enhance shipping and logistics infrastructure.

Plans include acquiring additional port terminals and expanding the Off Dock Container Yard (ODCY) business to ensure end-to-end services for customers.

In addition to its investment in green shipping, HMM will continue its strategic partnership with Ocean Network Express (ONE) and Yang Ming Marine Transportation under a new name—Premier Alliance.

This partnership, which will be in effect from February 2025, will focus on providing reliable services across key East-West trade routes, including Asia-North America and Asia-Europe.

Jeremy Nixon, CEO of ONE, emphasized the importance of this collaboration: “The close network collaboration that exists between the three companies will be further strengthened under this new alliance. Together, we will offer strong, reliable, and highly dependable services to our customers on both the Transpacific and Asia-Europe trades.”