HYUNDAI TO TREBLE REVENUE, DOUBLE FLEET BY 2010
Hyundai Merchant Marine has announced plans to triple its annual revenues by 2010 by expanding its fleet and diversifying into non-shipping activities.
According to the company’s “New Vision For the 21st Century” strategic plan, group revenue will rise from $4 billion in 1999 to $4.3 billion in 2000, $7 billion in 2005 and $12 billion in 2010.
At a recent strategy meeting in Onjung-ri, Korea, executives of Hyundai Merchant Marine “presented a management blueprint to become the world’s top multimodal transportation company by aiming to reach a sales figure of U.S.$12 billion and build its fleet to 250 vessels by the year 2010,” the shipping group said. It currently operates 122 vessels.
Hyundai said that it “will place more emphasis on profits through diversification and expand the business in sectors such as e-business (marine logistics information business), vessel management business, flight cargo transportation and ocean resources exploitation.”
Hyundai plans to increase the share of group revenues generated by businesses other than container and bulk shipping. Cruise shipping would provide 11 percent of group revenues in 2010, as compared to 2 percent in 2000. Terminal and logistics activities would represent 12 percent of revenues in 2010, instead 5 percent in 2000. New related activities would generate 11 percent of revenues in 2010.
By contrast, the percentage of revenues attributable to container shipping would decrease to 40 percent in 2010 from 49 percent in 2000. Bulk shipping would decrease to 27 percent in 2010 from 44 percent in 2000.
Hyundai said that it aims to become “the most profitable top-ranking company” by earning a return on equity of over 10 percent in all sectors until 2010, as compared to the current return of 5 percent.
In container shipping, the carrier said that it will:
* Deploy more vessels, including those in the 6,500-TEU and 8,000-TEU range;
* Continuously diversify its trade lanes;
* Complete the customer satisfaction system;
* And provide “top quality service” through continuous terminal development and investment in new terminals.
Hyundai plans to operate over 30 inland logistics bases and exclusive terminals by 2010, and make the terminals a new source of profit.
In the car carrier business, Hyundai aims to increase its car carrier fleet to 100 ships in the next 10 years.