HMM eyes hub-and spoke model as it expands feeder fleet
South Korean flagship carrier HMM wants to rebuild its intra-Asia shipping business, and is expanding ...
By Alison Koo
Relocating South Korean shipping line HMM’s HQ to the port of Busan could bring $1bn of economic benefits to the city, including employment and constructing a new office building.
Recently elected President Lee Jae-myung is determined to fulfil his campaign pledge to move the flag-carrier, as well as the Ministry of Oceans and Fisheries, to Busan to boost its status as a shipping centre, despite both organisations’ staff being against relocating from Seoul.
Busan Chamber of Commerce and Industry (BCCI) research shows moving HMM and the MOF would achieve an economic ripple effect of more than KRW1.8trn ($1.3bn), including creating jobs for 4,570 people. And thousands more jobs could be indirectly generated for related industries.
BCCI chairman Yang Jae-hwa said there was a need to develop Busan into a global shipping city comparable with Rotterdam, Singapore and Shanghai.
Busan is South Korea’s largest container port and North Asia’s busiest transhipment centre, having handled 24.3m teu in 2024.
According to the eeSea liner database, HMM has a 50% stake in the port’s New/HMM PSA New-Port Terminal, with PSA holding the remaining 50%.
Besides shifting HMM and MOF to Busan, there are also plans to set up a maritime court in the city.
Mr Yang said: “Of South Korea’s 14 container lines, 13 are located in Seoul, and only SM Line is based in Busan. The relocation of HMM to Busan can persuade other shipping companies to move there.”
He believes the presence of HMM and MOF in Busan would see the development of marine industry infrastructure and related ecosystems, while balancing the country’s economic development.
Unions representing HMM and MOF staff have expressed opposition to relocation, and Mr Yang said: “Communication and the formation of a regular consultative body is needed. The staff also need support to settle down in Busan… perhaps an arrangement could be worked out to enable them to work remotely for a certain period.”
An HMM spokesperson told The Loadstar: “Our company has not yet had any formal discussions or reached any official stance on this matter.
“The union has expressed strong opposition to the relocation of the HMM HQ to Busan.”
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