HMM (Hyundai Merchant Marine), one of the largest shipping companies in South Korea, continues its fleet expansion plan with the confirmation of a $1.62 billion investment to purchase 12 container ships. This decision was made during the company's board meeting in Seoul and includes an order for the construction of eight new ships with a capacity of 13,000 TEU and the purchase of four smaller vessels.
Details of HMM's Investment
According to a statement released on the stock exchange, HMM's board of directors has approved the allocation of 2.168 trillion won (equivalent to $1.617 billion) for this project. This investment includes orders for new ships as well as the purchase of existing ships through sales transactions. Among these, HMM has ordered eight ships with a capacity of 13,000 TEU and additionally will purchase three ships with a capacity of 2,800 TEU and one ship with a capacity of 1,700 TEU through previous transactions.
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With the addition of these 12 ships, HMM's total fleet capacity will increase to 114,100 TEU. The delivery of these ships is scheduled for December 2029. HMM has not yet identified the shipbuilders responsible for constructing the eight larger ships or the sellers of the four smaller vessels. The specifications of the engines for these ships have also not been announced.
HMM's Future Plans
This new investment aligns with HMM's business plan through 2030. The company aims to increase its fleet of container ships to 166 vessels with a total capacity of 1.47 million TEU by the end of the decade. Additionally, HMM plans to add 110 cargo ships with a total capacity of 13.52 million DWT to its fleet.
HMM's investment last year amounted to 4 trillion won (equivalent to $2.8 billion) for the order of 12 dual-fuel LNG container ships and two VLCCs. Contracts for these ships have been awarded to HD Hyundai and Hanwha Ocean. Given the growing demand for shipping services and the increasing need for cargo transport, HMM is looking to strengthen its position in the global market.
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