South Korean shipping giant HMM is seeking to expand its role at the Port of Algeciras in Spain, as investment companies and carriers gain increasing influence over terminal operations. The company stated that, with vessels rerouting from the Red Sea in 2024 and continued congestion at other European ports, Algeciras has become an increasingly critical transshipment hub.

HMM originally acquired full operational control of the Algeciras Terminal (TTIA) in 2017. In 2020, it sold a 50% stake to CMA CGM, citing the strategic value of an alliance with the French shipping company.

"Algeciras Terminal is a key transshipment hub in Southern Europe and a gateway for Spanish imports and exports. It will play an essential role in generating terminal revenue and enhancing competitiveness on European routes," HMM stated in its development announcement. The company confirmed its intention to “actively invest in and develop overseas terminals going forward.”

On June 30, HMM submitted a letter of intent to the Port Authority of Algeciras to initiate the first phase of a terminal expansion project. The proposed plan includes a total investment of €150 million (approximately $177 million), with HMM contributing €35 million (about $41 million). The remaining funds will be provided by CMA CGM and through external financing.

TTIA is a modern semi-automated terminal spanning 300,000 square meters, with an annual handling capacity of 1.6 million TEUs. The first phase of the expansion aims to increase the terminal’s area to 460,000 square meters and boost its capacity to 2.1 million TEUs by 2028. Upon completion of the second phase, the terminal will have a total capacity of 2.8 million TEUs annually. The plan also proposes extending the concession period from 2043 to 2065.

HMM views terminal investments as a key part of its growth strategy. Company executives told South Korean media that they are considering additional investments to secure global terminal space. According to reports, HMM is exploring opportunities in ports such as Los Angeles, Long Beach, New York, and New Jersey. The upcoming tender for a new terminal in Santos, Brazil, is also seen as a potential opportunity.

The company has announced a strategic plan to expand the capacity of its core container shipping business to 1.5 million TEUs and operate 130 vessels by 2030. HMM currently owns 86 ships with a total capacity of approximately 938,000 TEUs. Senior executives emphasized the need to respond to the ongoing reshuffling of global shipping alliances and to strengthen the competitiveness of its core container operations. Following Hapag-Lloyd’s exit from a previous alliance, HMM is playing an increasingly significant role in a new alliance with Ocean Network Express (ONE) and Yang Ming.