HMM announced on the 2nd that it has submitted a letter of intent for the phase 1 expansion development of the Spain Algeciras Container Terminal (TTIA) currently in operation.
The letter of intent was submitted to the Spain Algeciras Port Authority through TTIA on the 30th of last month. HMM plans to develop the site south of TTIA for the expansion.
The total investment amount is about 240 billion won (150 million euros), of which HMM plans to invest approximately 56 billion won (35 million euros). The remaining amount will be funded by CMA CGM, the second-largest shareholder, and external borrowing.
TTIA is a modern semi-automated terminal with a total area of 300,000㎡ and an annual throughput of 1.6 million TEU (1 TEU = 1 twenty-foot container).
HMM plans to complete this phase 1 expansion development by 2028, increasing the total area of TTIA to 460,000㎡ and boosting the annual throughput to 2.1 million TEU.
Once phase 2 development is completed in the future, TTIA's annual throughput will increase to 2.8 million TEU. To facilitate smooth development, HMM will extend the terminal operation period from 2043 to 2065, an additional 22 years.
A representative from HMM said, "The Algeciras terminal is a major transshipment hub in Southern Europe and a gateway for imports and exports in Spain, which will play a significant role in generating terminal revenue as well as enhancing the competitiveness of European routes. We also plan to actively invest in and develop overseas terminals in the future."
After acquiring 100% equity of TTIA in 2017, HMM sold a portion of its equity—half of the total issued shares minus one share—to the French shipping company CMA CGM in 2020.