South Korean logistics and shipping company HMM has announced plans to expand its container terminal in the port of Algeciras (Cadiz). On 30 June, the company submitted its letter of intent to the Port Authority to initiate phase 1 of this project, with which it wants to increase its capacity from the current 1.6 million TEU to 2.1 million TEU by 2028.

The planned investment amounts to 150 million, a figure that was estimated at the time the letter of intent was submitted and which could change in the future. HMM plans to contribute 35 million euro of this sum. The terminal’s second largest shareholder, CMA CGM, will complete the investment together with external financing support.

Concession period extension
The first phase will be implemented in the southern area of the Algeciras Container Terminal (TTIA), and through this expansion it will grow from the current 300,000 square metres to 460,000 square metres. As part of the second phase, there are plans to increase its container handling capacity to 2.8 million TEU per year. To support the South Korean company’s investment, the concession period is scheduled to run from 2043 to 2065.

The TTIA is a modern semi-automated terminal that is a key transhipment hub for HMM in southern Europe. The South Korean company acquired 100% of TTIA in 2017 and sold 50% to French shipping company CMA CGM in 2020 to form a strategic partnership.

Competitiveness on European routes
A spokesman for HMM explained, “The Algeciras terminal is an important transhipment hub in southern Europe and a gateway for import and export from Spain, and it will play a key role in generating revenue for the terminal and strengthening competitiveness on European routes”.

Founded in South Korea in 1976, HMM opened its first European subsidiary in 1992. Today it operates over 100 vessels of various sizes, and has a presence in more than 110 countries. In Spain it has offices in Barcelona, Algeciras, Bilbao (Vizcaya), Madrid, Valencia and Vigo (Pontevedra).

^{Photo: HMM}