South Korea’s leading container shipping company HMM said Wednesday it plans to expand Total Terminal International Algeciras, its semi-automated facility in southern Spain.
On Monday, HMM submitted a letter of intent to the Port of Algeciras Bay Authority to initiate the first phase of expansion on the southern section of TTA.
The proposed investment totals 150 million euros ($176.6 million), with HMM contributing 35 million euros.
The remaining funds will be sourced through co-investor CMA CGM, the terminal’s second-largest shareholder, and external financing.
Previously, HMM acquired full ownership of TTIA in 2017 and sold 50 percent minus one share to CMA CGM in 2020 for a strategic partnership.
Following the first-phase expansion, the terminal’s capacity will increase to 2.1 million twenty-foot equivalent units annually by 2028 from the current 1.6 million TEUs. The site will be expanded to 460,000 square meters from 300,000 square meters.
Upon completion of the second phase, the facility will be capable of processing up to 2.8 million TEUs per year.
To ensure smooth long-term operations, the terminal concession period will be extended by 22 years, from 2043 to 2065.
“Algeciras serves as a key transshipment hub in Southern Europe and a vital export and import gateway for Spain,” said an HMM official.
“This expansion will enhance our service competitiveness in Europe and contribute to terminal profitability overseas.”
Source: TheKoreaHerald