Top S.Korean shipper HMM to invest $11.5 billion over 5 years for expansion
(Corrects title of firm to HMM Co Ltd., not Hyundai Service provider Marine, in lead paragraph)
SEOUL (Reuters) -HMM Co Ltd, South Korea’s largest container delivery firm by gross sales, mentioned on Thursday it plans to take a position 15 trillion gained ($11.46 billion) over the following 5 years to sharply enhance its capability.
HMM plans to develop its delivery capability to 1.2 million 20-foot equal models (TEU) from the present 820,000 TEU by 2026 and enhance the variety of bulk carriers to 55 from 29. Investments can even be made into terminals and logistics services, the corporate, which break up from South Korean conglomerate Hyundai Group in 2016, mentioned in a press release.
The funding plan comes amid world port congestion, which, logistics executives predicted will persist till at the least early 2023, because the COVID-19 pandemic lengthens ship supply occasions and the Russia-Ukraine battle and the Shanghai lockdowns disrupt provide chains.
Delivery prices have surged 25%-30% for the reason that begin of the pandemic as a consequence of inflationary pressures which can be unlikely to subside quickly, based on Maersk, the world’s greatest container delivery firm.
($1 = 1,308.5100 gained)
(Reporting by Byungwook Kim; Enhancing by Muralikumar Anantharaman)
