HMM to acquire 70 green ships by 2030

South Korean shipping company HMM has unveiled a massive KRW 23.5 trillion (17.48 billion) investment in sustainable growth by 2030.

As part of a mid-to-long-term strategy, the carrier aims to expand its business portfolio for future growth and drive itself to be “a global green shipping and logistics carrier”.

HMM will enhance its capacity to deal “promptly” with global environmental regulations and is looking to accelerate achieving net zero carbon emissions by the target year 2045. The company said it will allocate KRW 14.4 trillion or over 60% of the total investment to sustainable management initiatives, including low-carbon ships and green facilities.

Specifically, the South Korean shipping major 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’ 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.

When it comes to the bulk transportation business, HMM will align 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. The company intends to strengthen profitability by constructing a stable portfolio that is not biased toward a particular bulk market (tanker/dry).

What is more, 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.

The carrier is actively moving toward net zero 2045 to strengthen its response to environmental regulations and achieve carbon neutrality. To reach this goal, HMM is to 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.