South Korean carrier HMM has submitted a letter of intent to expand its terminal in Algeciras, Spain.

The plan, lodged with the Algeciras Port Authority, outlines an €150m ($177m) expansion project. HMM itself will invest €35m, with the remainder funded by CMA CGM, the terminal’s second-largest shareholder, along with external financing.

The terminal, TTIA, is a semi-automated facility first fully acquired by HMM in 2017. It currently spans 300,000 sq m with an annual throughput capacity of 1.6m teu. Phase 1 of the expansion will push the footprint to 460,000 sq m and lift throughput capacity to 2.1m teu by 2028.

A phase 2 development is also in the pipeline, which would further increase capacity to 2.8m teu. To support this long-term vision, HMM will extend its terminal operation rights from 2043 to 2065, giving it a 22-year lease extension.

The terminal currently handles calls from HMM’s flagship 24,000 TEU megamax vessels, including the HMM Algeciras (pictured).

A key transhipment hub in Southern Europe, Algeciras is positioned at the crossroads of Mediterranean and Atlantic trade lanes, making it vital for both Asia-Europe services and North-South feeder networks.

The Algeciras expansion comes as HMM signals broader ambitions in global terminal development. The company is actively seeking overseas investment opportunities as part of its long-term strategy to diversify revenue and enhance control over logistics infrastructure.

HMM acquired 100% of TTIA in 2017, later selling just under half of the stake to CMA CGM in 2020.