HMM said Tuesday it signed a 4.7 trillion won ($3.5 billion) long-term shipping contract with Vale, Brazil’s major mining company.

Under the agreement, HMM will deploy eight 210,000-ton Newcastlemax bulk carriers under 25-year contracts per vessel starting in 2030. This marks HMM’s third major deal with Vale, following two 10-year agreements signed in May and September last year.

The eco-friendly Newcastlemax vessels will feature the world’s first trifuel engines capable of running on methanol, ethanol and heavy fuel oil. They will also be built as liquified natural gas- and ammonia-ready and equipped with wind-assisted propulsion systems, dubbed “Rotor Sails” to optimize fuel efficiency and minimize carbon emissions.

“This contract reaffirms our strong partnership with a major global shipper,” an HMM official stated. “We plan to reinforce our stable revenue base and pivot toward high-profit, future-growth business segments by expanding long-term contracts and restructuring our portfolio.”

Since taking office in March last year, HMM CEO Choi Won-hyuk has focused on strengthening the key container business while streamlining fleet size to maximize profit. By shifting away from short-term charters to long-term deals with leading shippers, HMM’s bulk segment generated roughly 240 billion won in operating profit in the first half of this year.

Additionally, HMM has diversified its bulk fleet beyond traditional dry bulk and tankers into gas carriers, pure car and truck carriers and multipurpose vessels, expanding its bulk fleet from 44 vessels in March last year to 61 in the first half of this year.

By Byun Hye-jin (hyejin2@heraldcorp.com)