HMM, the world’s 8th largest liner company and South Korea’s largest liner company, is accelerating its global terminal deployment, aiming to achieve revenue growth through direct acquisitions or long-term terminal leases, in coordination with vessel scheduling, cargo handling and storage, and integrated logistics services.
Recently, according to South Korean media, HMM plans to participate in the bidding for the Tecon 10 terminal project at Brazil’s Port of Santos. The Port of Santos is one of the busiest container ports in Latin America, currently handling approximately 6 million TEUs annually. With the surge in container throughput between Brazil and countries like Mexico, the port frequently experiences congestion. To alleviate this, the Brazilian government plans to construct a large container terminal near the existing port, with an annual handling capacity of about 3.5 million TEUs.
Currently, all terminals at the port are operated by private enterprises, and the Tecon 10 terminal project is expected to attract global shipping companies and terminal operators competing for the concession rights. Concession rights typically last 20 to 30 years and may be extended based on terminal performance and negotiation outcomes.
HMM currently operates terminals in 6 countries, totaling 8 terminals, fewer than other shipping companies of similar scale. In the first quarter of this year, revenue from HMM’s terminal operations and other non-shipping business segments accounted for only 1.87% of total revenue.
It is understood that among major liner companies, MSC, Maersk, CMA CGM, COSCO SHIPPING, and Hapag-Lloyd now have independent terminal companies managing their terminal operations, while ONE has also acquired some terminal assets in recent years.
Earlier this year, Choi Won-ho, a long-time logistics industry veteran, was appointed CEO of HMM. He has repeatedly emphasized expanding the company’s terminal business and mentioned that HMM has faced transshipment delays due to a lack of overseas terminals.
Recently, HMM announced a joint investment with CMA CGM to expand the TTIA terminal at the Port of Algeciras, with a total investment of €150 million, of which HMM contributed €35 million. After expansion, the terminal’s area will increase from 300,000 square meters to 460,000 square meters, and its annual handling capacity will rise from 1.6 million TEUs to 2.1 million TEUs.
