HMM set for sales of 5.9 trillion won this year

Hyundai Merchant Marine (HMM) disclosed that it is going to achieve 5.9 trillion won ($4.76 billion) in sales for this year, up 15.5 percent compared to last year and will run profit-oriented management for a whole year.

HMM confirmed these business plans during a 2001 strategic business administration meeting from Feb. 5 to 8 at its headquarters in Chokson-dong, downtown Seoul, attended by 100 people including president Kim Choong-shik, domestic officials, and representatives from 70 overseas corporations.

These plans laid out how container ships, which take the lion's share of their business, will post 2.93 trillion won, up 17.9 percent above last year, and non-container business, including car carriers, LNG vessels, cruise ship business, and port logistic services, will post 2.96 trillion won, a 13.1 percent rise, totaling 5.9 trillion won.

By category, container business will maximize its market share most. It will also raise its service competitiveness by deploying five 6,500 TEU vessels, the largest container vessels in trade between Asia and the West Coast of North America, its biggest market. In addition, as it renewed its strategic New World Alliance until 2007 with its members, MOL and APL, at the end of last year, HMM estimates this will set up a foundation for more stable services.

It also showed an aggressive will to strengthen sales power for Chinese and Mediterranean Sea markets, which show vast potential, and to develop other unexplored fields, the South American and African markets.

According to these plans, it plans to carry 10 percent more cargoes this year, 1.86 million TEU over last year. HMM will also raise productivity in port logistics to improve its facilities, such as cranes, in domestic and overseas terminals, and post more profit in terminal operation with the help of port sales to attract foreign vessels.

Besides these things, HMM will transport 2 million cars, gaining 8 percent compared with 2000, operating 62 car carriers, and will engage in moving high-value cargoes such as construction equipment and project cargoes.

Meanwhile, last year HMM showed around 5.2 trillion won in sales output for the first time in the domestic shipping industry.