Hanjin to squeeze more revenue, profits from existing container fleet

Hanjin to squeeze more revenue, profits from existing container fleet    Hanjin Shipping said that its business plan for this year includes measures to increase the company’s revenue through a higher utilization of its fleet of containerships.
   The Korean shipping line aims to increase its container carryings this year by 2 percent, to 2.63 million TEUs. After a 23-percent jump in revenue in 2003, to Won5.6 trillion (about $4.8 billion), Hanjin expects to raise its revenues 13 percent this year, to $5.2 billion.
   “Currently, Hanjin intends to augment vessel utilization ratio without (an) increase in fleet capacity,” the company said. A spokesman for Hanjin at its headquarters in Seoul said that raising ship utilization would be achieved partly though cooperation in the CKYH alliance.
   Hanjin has a modest orderbook for new containerships, and will take delivery of five 6,500-TEU ships from 2006.
   The Korean company said that it will continue to reduce costs while further strengthening its strategic alliances to enhance service quality.
   It predicts that it will increase its operating profit from Won432 billion ($370 million) in 2003 to $520 million this year, representing a profit margin of 10 percent of revenues.
   Hanjin’s two main goals for 2004 will be “to optimize corporate values through profitability and to establish (a) sustainable business structure for future,” the company said.
   The company’s target bulk transport volume this year is 54 million tons.
   Hanjin said that it revised it revised its 2004 business plan slightly upwards in January, as market conditions improved since the previous plan prepared at the end of 2003.