South Korea's flagship shipping company, Hyundai Merchant Marine (HMM), is closely following the footsteps of leading shipping companies by strengthening its port infrastructure investment strategy, planning to increase its port assets through upgrades and acquisitions.

HMM plans to invest 150 million euros ($176 million) to increase the annual throughput capacity of the Algeciras terminal from the current 1.6 million TEU by 60% to 2.6 million TEU and add berths capable of accommodating 24,000 TEU ultra-large container ships. The expansion project includes setting up new container cranes and yards off the coast of the Cape Verde Islands at the Port of Algeciras and constructing a new railway network.

This investment is part of CEO Choi Won-hyok's efforts to consolidate HMM's global infrastructure strategy. Choi Won-hyok emphasized that despite operating 8 terminals globally, there is also an opportunity for HMM to participate in the bidding for Tecon Santos 10, the largest container terminal in the Port of Santos, Brazil.

In recent years, leading shipping companies have increasingly focused on port investments, becoming a noticeable trend in the global shipping industry, especially after the "super boom" in container shipping brought about by the pandemic, leading cash-rich shipping companies to enhance the synergy between ports and shipping to improve operational efficiency.

Algeciras is Spain's largest port and a vital hub connecting Europe, Africa, and the Americas.

In 2017, HMM acquired the Algeciras terminal operated by Total Terminal International Algeciras (TTIA), and in 2020, the French group CMA CGM acquired a 50% stake in TTIA. However, HMM still retains control.

Construction will be carried out in phases to minimize disruption to port operations. The Algeciras Bay Port Authority has shown keen interest in the terminal expansion, with its chairman, Gerardo Landaluce, stating, "We met with the HMM management team in Seoul and discussed the terminal expansion plan."

However, an HMM spokesperson stated, "We are currently reviewing potential investment plans for the Algeciras terminal and have not made a final decision yet."

According to the latest data from Alphaliner, in the Top 100 global shipping companies by capacity, HMM ranks 8th with 87 vessels, including 66 owned and 21 chartered vessels, with a total capacity of 944,000 TEU. Additionally, HMM has 7 newbuild orders totaling 60,740 TEU.