HMM reveals a mid-to long-term strategy to diversify its business portfolio for future growth and leap forward to be a global top-rated shipping and logistics company.
The strategy includes expanding the fleet capacity of containerships to 1.2 million TEU from the current 820,000 TEU by 2026. The extension of bulk business is also scheduled by increasing its fleet to 55 ships from the current 29 ships on the same timetable.
In particular, HMM will invest more than KRW 15 trillion in a range of initiatives, including securing core assets such as ships, terminals, and logistics facilities throughout the upcoming five years from 2022 to 2026.
HMM explained that the future strategy has been established to respond to growing uncertainty arising from ever-changing business circumstances and lay a solid foundation for sustainable growth.
More specifically, HMM's strategy covers five categories:
1. Container and Bulk business Strategy
HMM will expand its service network with an eco-friendly container fleet of 1.2 million TEU by 2026. HMM also plans to secure logistics infrastructure such as terminals in key locations to reinforce its profit structure. Moreover, the bulk fleet will be cemented with a fleet of 55 ships, substantially increased by 90% from the current 29 ships.
2. Environmental Strategy
HMM will continue to enhance environmentally-friendly services for carbon neutrality in 2050 and explore the likelihood of ordering ships using alternative fuels in the future. HMM will also make enterprise-wide R&D efforts into the use of carbon-neutral fuels in cooperation with industrial players.
3. Digital Strategy
HMM recently launched 'Hi Quote', an online sales platform based on its own technological capabilities. HMM plans to integrate its inland logistics network into Hi Quote and apply freight rate solutions powered by Artificial Intelligence at a later date. Digitization is expected to be promoted by improving online-based 'e-platform' and accelerating ERP upgrades.
4. Organization Effectiveness Strategy
HMM aims to strengthen its business areas by developing a customer portfolio, enhancing sales power and expertise, and training employees. Especially, it will organize dedicated teams to accomplish strategic projects and explore new business opportunities.
5. Investment and Financial Strategy
HMM plans to invest more than KRW 15 trillion over the next five years, from 2022 to 2026, in preparation for future competitiveness. Of the KRW 15 trillion, KRW 10 trillion will be allocated to secure core assets such as ships, terminals, and logistics facilities. KRW 5 trillion is scheduled to be assigned in future strategic projects to diversify HMM's business.
HMM will also invest KRW 150 billion in digitization by improving online-based 'e-platform' and accelerating ERP upgrades.
Kim, Kyung Bae, HMM President & CEO, said "Our strategy is to ensure perpetual growth of HMM under the new vision - a global leading company generating sustainable value for the world" and added, "We will continue to drive efforts for contribution to the global community”.