HMM Plans Strategic Growth of Algeciras Terminal as a Key Transshipment Center

A recent publication by HMM reveals plans to enhance its terminal operations in Algeciras, Spain, with a notable investment of €150 million (approximately $177 million). This initiative has been submitted to the Algeciras Port Authority and marks a strategic move for the South Korean shipping giant.

HMM is set to contribute €35 million towards this expansion, while CMA CGM, which holds a substantial stake in the terminal, will cover the remaining costs alongside external funding sources. The terminal currently accommodates HMM’s extraordinary 24,000 TEU megamax vessels like the HMM Algeciras.

Originally acquired by HMM in 2017, this semi-automated facility spans an area of 300,000 square meters and boasts an annual capacity of handling 1.6 million TEUs. With Phase 1 of the expansion plan underway, this footprint will grow to 460,000 square meters and throughput capacity is expected to rise to 2.1 million TEUs by 2028.

Looking ahead, Phase 2 aims for an even greater increase in capacity up to 2.8 million TEUs. To support these long-term goals effectively, HMM plans to extend its operational rights at the terminal from 2043 until 2065—an extension that grants them an additional two decades of control.

Algeciras serves as a vital transshipment hub within Southern Europe due to its strategic location at the intersection of Mediterranean and Atlantic trade routes. This makes it essential not only for services connecting Asia and Europe but also for feeder networks operating between North and South regions.This expansion aligns with HMM’s broader strategy focused on diversifying revenue streams through enhanced control over logistics infrastructure while exploring international investment opportunities—a move that reflects their ambition in global shipping markets.