HMM Moves Forward with Algeciras Port Expansion Plan

HMM container ship (Photo: Marinetraffic/Phaata)

South Korean shipping company HMM has submitted a letter of intent to expand its port in Algeciras, Spain.

The plan, submitted to the Algeciras Port Authority, outlines a EUR150 million ($177 million) expansion project. HMM itself will invest EUR35 million, with the remainder to be funded by CMA CGM, the port's second-largest shareholder, along with external financing.

The terminal, called TTIA, is a semi-automated facility that HMM acquired fully in 2017. It currently covers an area of ​​300,000 m² with an annual throughput capacity of 1.6 million TEU. Phase 1 of the expansion project will increase the area to 460,000 m² and increase capacity to 2.1 million TEU by 2028.

A Phase 2 development plan is also being prepared, which is expected to further increase capacity to 2.8 million TEU. To support this long-term vision, HMM will extend the terminal’s operating rights from 2043 to 2065, equivalent to a 22-year lease extension.

The port currently handles HMM’s largest vessels, megamax vessels with a capacity of 24,000 TEU, including the HMM Algeciras (pictured).

A key transshipment hub in southern Europe, Algeciras is located at the crossroads of the Mediterranean and Atlantic trade routes, making it important for both Asia-Europe services and the North-South feeder network.

The expansion of the Algeciras terminal comes as HMM demonstrates greater ambitions to develop its global terminal network. The company is actively seeking investment opportunities abroad as part of a long-term strategy to diversify its revenues and increase its control over its logistics infrastructure.

HMM acquired 100% of TTIA in 2017, then sold nearly half of its stake to CMA CGM in 2020.

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Source: Phaata.com (According to Reuters)

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