- HMM is expanding its global terminal footprint to secure long-term access and enhance logistics capabilities, with a focus on new or bidding opportunities.
- The Port of Santos in Brazil is adding the Tecon 10 terminal, expected to boost capacity by 50%, attracting competition from major carriers like HMM.
- HMM is investing €35 million in its Algeciras terminal in Spain, expanding both area and capacity, and extending the lease to 2065.
- Compared to its competitors, HMM operates only eight terminals across six countries, lagging behind MSC and Maersk in terms of terminal infrastructure scale.
South Korea’s HMM is focusing on global port terminal operations. The company is targeting terminals that offer long-term access and strong logistics infrastructure to support vessel traffic and cargo flow. According to ChosunBiz, HMM is prioritizing investments in areas where new terminals are being opened or rights to operate them are being auctioned off.
Terminal Expansion at Port of Santos
The Port of Santos, Latin America’s largest port, currently manages around 6 million TEUs annually. Growing trade activity—especially between countries like Mexico and Brazil—has led to frequent congestion. The port, home to 58 privately operated terminals, is preparing for a significant capacity boost with the development of Tecon 10. Once completed, the new terminal is expected to increase annual throughput by roughly 50%.
As expansion projects progress, competition among shipping companies, such as HMM, and specialized terminal operators is intensifying. Securing terminal operating rights is crucial for efficient container handling and long-term revenue growth. These rights typically span 20 to 30 years, with the possibility of extensions depending on operational needs. Holding such rights not only streamlines cargo flow but also strengthens a company’s competitive edge in high-traffic trade corridors.
HMM Improves Algeciras Terminal to Support Global Logistics
HMM has announced a €35 million investment to expand its container terminal in Algeciras, Spain, increasing its size from 300,000 to 460,000 square meters. The project also aims to raise the terminal’s annual processing capacity from 1.6 million TEUs to 2.1 million TEUs. As part of this move, the terminal’s operational lease has been extended from 2043 to 2065, reflecting a long-term commitment to enhancing its presence in the region.
Currently operating eight terminals across six countries, HMM stands as the world’s 8th-largest container carrier by capacity, but trails its peers in terminal infrastructure. For context, MSC runs 67 terminals in 34 countries, while Maersk manages 59 terminals across 35 countries. In HMM’s case, revenue from terminal operations and other related divisions reached only 53.4 billion won in the first quarter, representing just 1.87% of its total earnings.
Despite the high upfront investment, terminal ownership is viewed as a strategic asset that supports stable transshipment operations and improves service reliability. HMM President Choi Won-hyuk has emphasized the importance of expanding terminal infrastructure, drawing on his four decades of logistics experience, including past roles at CJ Logistics and LX Pantos. He has noted previous operational challenges caused by the lack of overseas terminals, underscoring the strategic value of this expansion.
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Source: CHOSUNBIZ
