South Korean shipping giant HMM has announced a major investment to expand its container terminal at Algeciras, Spain, reinforcing its commitment to increasing terminal ownership and global infrastructure control. The move signals a strategic effort to enhance HMM’s footprint in Southern Europe and secure long-term logistical capabilities.

Expansion Overview

Aspect	Details
Total Investment	€150 million ($177 million)
HMM’s Share	€35 million
Other Funding Sources	CMA CGM (co-shareholder) + external financing
Current Terminal Area	300,000 sq. meters
Current Capacity	1.6 million TEU/year
Post-Phase 1 Capacity	2.1 million TEU/year by 2028
Post-Phase 1 Area	460,000 sq. meters
Planned Phase 2 Capacity	Up to 2.8 million TEU/year
Lease Extension	From 2043 to 2065 (+22 years)
Current Operations	Supports 24,000 TEU Megamax vessels
Strategic Role	Transshipment hub for Asia-Europe and North-South trade routes

Strategic Highlights

Strengthening Global Reach

The Algeciras terminal expansion fits into HMM’s broader strategy of acquiring and expanding overseas assets to diversify revenue streams and reduce dependence on third-party terminals.

Partnership with CMA CGM

HMM’s strategic collaboration with CMA CGM, the terminal’s second-largest shareholder, not only spreads the financial risk but also strengthens alliances within the global container shipping ecosystem.

Enabling Mega Vessel Handling

The terminal already accommodates HMM’s Megamax fleet, with vessels capable of carrying 24,000 TEU. The expanded terminal will enhance operational efficiency for these ultra-large container ships.

Long-Term Commitment

Extending the terminal lease until 2065 ensures long-term planning capability and incentivizes infrastructure development with a clear timeline for return on investment.

Critical Gateway to Europe

Algeciras is a major transshipment port in Southern Europe. Its location offers swift access to Mediterranean, Atlantic, and West African trade lanes, making it vital for both Asia-Europe mainline and feeder services.

Looking Ahead

By 2028, the terminal’s first expansion phase will be complete, marking a 30% increase in handling capacity. The second phase will further boost capabilities to meet rising global demand. With geopolitical shifts, increasing vessel sizes, and supply chain realignments, owning and operating strategically placed terminals is becoming a key differentiator among major carriers.

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Conclusion

HMM’s €150 million expansion at the Algeciras terminal is more than just an infrastructure upgrade—it’s a bold step toward securing supply chain independence, increasing service reliability, and reinforcing the company’s strategic position in global trade.

As the race for port infrastructure dominance heats up, HMM’s move sets a strong precedent for ocean carriers seeking tighter control over their logistics networks in a competitive and increasingly unpredictable shipping landscape.