HMM refutes reports of seeking KDB US$9b funding to rival Yang Ming
SOUTH Korea's Hyundai Merchant Marine (HMM) has denied reports that it is seeking US$8.9 billion in funding from the Korea Development Bank (KDB) so it can grow to be the eighth largest global container shipping company, a spot currently held by Yang Ming Marine Transport Corporation.
According to Business Korea, management consulting company AT Kearney has been asked by HMM to estimate the funds that would be needed to expand its operations.
It reportedly stated that HMM would need $5 billion for large container ships, $2.9 billion for container boxes at $1,800 each, which would purchase 1.6 million units and $900 million for the takeover of overseas terminals.
HMM is currently in 15th place on Alphaliner's Top 100 carrier list with 344,681 TEU and a market share of 1.6 per cent. It would need an additional 239,842 TEU in vessel capacity to jump seven places and equalise with Yang Ming's fleet.
A representative from HMM is quoted as saying: "There has been no internal decision on the investment amount needed for the medium and long term, including the money for building new vessels and container ships... we have not made any request to the Korea Development Bank."
HMM used to move almost all of Korea's exports with Hanjin Shipping before it went bankrupt last year, according to Port Technology.
HMM posted a $749 million operating loss last year, but its June 2017 results have revealed that it may be recovering as its Asia-US west coast volumes increased 77 per cent year on year.