22-12-2017

HMM CEO looks to 22,000 TEU boxship order

SOUTH Korea's Hyundai Merchant Marine (HMM) plans to join the 22,000 TEU ownership club as the company's CEO has revealed plans to order these megaships in 2018.

HMM president and CEO C K Yoo said in the recent 2018 Sales Strategy meeting that the 22,000 TEU newbuilding construction project will be in accordance with the national expectation for "being a leading shipping nation".

"HMM is now located in the good position to be a world-class leading shipping company by overcoming new environmental regulations starting from 2020," Mr Yoo said.

"During the last year, HMM has faced many changes such as regaining customer trust, recovering profitability, and ranking number one in service reliability etc," he added.

HMM identified education of its manpower and achieving innovative growth through Blockchain technology, as key strategic objectives for next year.

In addition, securing profitability based on the overseas terminal belt US West Coast - Pusan - Kaohsiung - Algeciras - Rotterdam, was discussed as well, together with the deployment of new vessels, the opening of new services, expanding business network and cutting operating costs.

The 22,000 TEU order has been rumoured for quite some time on the market, however, this is the first time that the plans have been officially confirmed, according to media reports.

Meanwhile, the South Korean shipping line, accoding to Singapore's Splash 24/7, will be splitting the KRW600 billion (US$554 million) it has raised from a rights issue this month in three equal portions: on new ships, terminals and paying back existing debts.

The new ships are likely to include a series of 22,000 TEU vessels, with an order on home soil due in the first weeks of 2018.

Investments in new container terminal are also being eyed domestically as well as in the US, Vietnam and Singapore, according to the company's prospectus.

HMM came through a massive restructuring last year and has since inked a pact with the members of 2M - Maersk and MSC - to work with them on the main east-west trades.

Source: Schednet

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