HMM Secures Stable Cargo Volume by Attracting Investment for 'Alherasis Terminal' from French CMA CGM

[Asia Economy Reporter Yu Je-hoon] HMM (formerly Hyundai Merchant Marine) has successfully attracted investment related to the Algeciras Container Terminal (TTIA) in Spain from the French shipping company CMA CGM. Through this investment attraction, HMM will be able to secure stable cargo volume at TTIA.

HMM announced on the 10th that it has signed a share purchase agreement for TTIA with CMA CGM. CMA CGM is a global shipping company ranked 4th in the world by fleet capacity. The agreement involves HMM selling 50% minus one share of its directly held TTIA shares to CMA CGM. HMM will maintain its position as the largest shareholder with 50% plus one share held through the special purpose company (SPC) HT Algeciras, while CMA CGM will become the second largest shareholder.

With this share purchase agreement, the two companies will establish a strategic partnership through the TTIA joint venture (JV), expecting a mutually beneficial "win-win" effect. HMM can secure terminal revenue through CMA CGM’s cargo volume and aim for stable operation of TTIA, while CMA CGM will secure a strategic logistics hub by acquiring shares in TTIA, an optimal transshipment port where north-south and east-west routes intersect, connecting Europe, South America, Asia, and the east coast of North America.

To finalize this transaction, both parties have agreed to jointly proceed with necessary approval procedures such as merger filings and port authority notifications, aiming to commence JV operations in the fourth quarter of this year.

An HMM official stated, "The Algeciras terminal is very close to the North African market and has high growth potential," adding, "Through cooperation with CMA CGM, which has strengths in cargo volume from the African region based in Europe, we plan to strengthen terminal competitiveness by expanding our sales network."

Meanwhile, TTIA is a modern semi-automated terminal with a total area of 357,740㎡ capable of handling 1.6 million TEUs annually (TEU refers to a 6-meter container). It is currently used by global shipping companies such as France’s CMA CGM, China’s COSCO, and Germany’s Hapag-Lloyd, and is leased from the Algeciras Port Authority until February 2039.

HMM acquired 100% of the terminal shares previously held by the former Hanjin Shipping in 2017, and this year named the first of its 24,000 TEU-class world’s largest container ships deployed on the Europe route the "HMM Algeciras," expressing high expectations for this terminal.