HMM to Expand Role in Algeciras Terminal

HMM, recognizing the growing influence of investment companies and carriers in terminals, has announced plans to enhance its role, starting with Spain’s Algeciras. The port has emerged as a crucial transshipment hub, especially with vessels diverting away from the Red Sea in 2024 and ongoing congestion at other European ports.

In 2017, HMM acquired the Algeciras Container Terminal (TTIA) and initially owned the entire operation. However, in 2020, it sold a 50 percent stake to CMA CGM, emphasizing the strategic value of the alliance with the French carrier.

Describing the Algeciras terminal as a key player in Southern Europe and a vital gateway for Spain’s imports and exports, HMM announced its development proposal. The company intends to invest significantly in overseas terminals in the future to boost revenue and competitiveness on European routes.

Recently, HMM submitted a letter of intent to the Port Authority of Algeciras outlining the first phase of an expansion project for the terminal. The plan involves a total investment of €150 million ($177 million), with HMM contributing €35 million ($41 million) and the rest financed by CMA CGM and external sources.

The TTIA is a modern semi-automated terminal with a current area of 300,000 square meters and an annual handling capacity of 1.6 million TEU. The Phase 1 expansion aims to increase the area to 460,000 square meters and raise the handling capacity to 2.1 million TEU by 2028. Following Phase 2 development, the terminal is projected to handle 2.8 million TEU annually, with the operational period extended until 2065.

As part of its growth strategy, HMM is focusing on terminal investments. The company is exploring opportunities to secure space globally, including potential investments in ports like Los Angeles, Long Beach, the Port of New York and New Jersey, and the bidding for a new terminal in Santos, Brazil.

With a goal to expand its core container business to a capacity of 1.5 million TEU and 130 vessels by 2030 (currently at 938,000 TEU and 86 vessels), HMM is adapting to the evolving landscape of global shipping alliances. The company is actively participating in the new Premier Alliance with Ocean Network Express (ONE) and Yang Ming following Hapag-Lloyd’s departure from The Alliance agreement.