HMM Plans Expansion of Algeciras Terminal as Transshipment Hub
HMM, citing the growing influence of investment companies and carriers in terminals, reports it is looking to expand its role, starting with Spain’s Algeciras. It cites the port’s role as a transshipment hub, which has increased as vessels diverted away from the Red Sea in 2024 and other European ports continue to experience congestion.
HMM acquired the Algeciras Container Terminal (TTIA) in 2017 and owned 100 percent of the operation until selling a half stake to CMA CGM in 2020. At the time, it cited the value of the strategic alliance with the French carrier.
“The Algeciras terminal is a major transshipment hub in Southern Europe and a gateway for Spain’s imports and exports and will play a major role in generating terminal revenue as well as enhancing competitiveness on European routes,” HMM said announcing its development proposal. It confirmed that it plans to “actively invest in and develop overseas terminals in the future.”
HMM submitted a letter of intent to the Port Authority of Algeciras on June 30 promoting the first phase of a planned expansion of the terminal. The plan calls for investing a total of €150 million ($177 million), with HMM providing €35 million ($41 million). The remaining amount will be contributed by CMA CGM and external borrowings.
TTIA is a modern semi-automated terminal with a total area of 300,000 square meters and an annual handling capacity of 1.6 million TEU. The Phase 1 expansion calls for increasing the total area to 460,000 square meters and an annual handling capacity of 2.1 million TEU by 2028. After the Phase 2 development is completed, TTIA will be able to handle 2.8 million TEU per year. The plan also calls for extending the terminal operation period by 22 years from 2043 to 2065.
HMM has outlined terminal investments as part of its growth strategy. Company executives told the Korean media that they are considering additional investments to secure space around the world. According to the media reports, the company is exploring investments in ports ranging from Los Angeles and Long Beach to the Port of New York and New Jersey. It also cites the planned bidding for the new terminal in Santos, Brazil, as an opportunity.
The carrier has announced a strategy to expand its core business in containers to a capacity of 1.5 million TEU with 130 vessels by 2030. Currently, it has a capacity of approximately 938,000 TEU with 86 vessels. HMM’s executives have highlighted the need to respond to the reorganization of global shipping alliances in the container business and to strengthen the competitiveness of core businesses. The company is taking an increased role in the new Premier Alliance with Ocean Network Express (ONE) and Yang Ming after Hapag-Lloyd left the former The Alliance agreement.