CMA CGM Inks Deal with Cochin Shipyard for Six LNG-Powered Container Vessels
French shipping company CMA CGM has signed a letter of intent with Cochin Shipyard Ltd for the construction of six dual-fuel LNG container vessels, each with a capacity of 1,700 TEU. This marks the first time a major international liner has commissioned LNG-powered ships from an Indian shipyard. The vessels will be registered under the Indian flag and are scheduled for delivery between 2029 and 2031. CMA CGM is also expanding its presence in India through various initiatives, including reflagging existing vessels, recruiting Indian seafarers, and investing in terminal stakes.
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French shipping giant CMA CGM has taken a significant step towards sustainable maritime operations by signing a letter of intent with Cochin Shipyard Ltd for the construction of six dual-fuel LNG container vessels. This landmark agreement marks the first instance of a leading international liner commissioning LNG-powered ships from an Indian shipyard.
Deal Specifics
| Detail | Description |
|---|---|
| Vessel Type | Dual-fuel LNG container ships |
| Capacity | 1,700 TEU each |
| Number of Vessels | 6 |
| Registry | Indian flag |
| Delivery Schedule | Between 2029 and 2031 |
| Technical Cooperation | HD Hyundai Heavy Industries (Korea) |
The project is part of CMA CGM's fleet renewal strategy, emphasizing the company's commitment to reducing greenhouse gas emissions. The dual-fuel capability allows the ships to run on LNG and be prepared for future low-carbon fuels, aligning with global efforts to decrease the maritime industry's environmental impact.
Expansion of Indian Operations
CMA CGM is significantly bolstering its presence in India through several initiatives:
| Initiative | Details |
|---|---|
| Vessel Reflagging | 4 vessels to be registered under Indian registry |
| Recruitment Plans | 1,000 Indian seafarers by end of year, additional 500 by 2026 |
| Weekly Services | 19 services connecting India to global markets |
| Terminal Stakes | Investments in Nhava Sheva Freeport Terminal and Mundra |
| Business Services Hub | Chennai-based, employing over 9,000 people |
Additionally, CMA CGM's subsidiary CEVA Logistics has established a strong footprint in India, operating 105 sites across 31 cities and managing approximately 900,000 sq ft of warehousing space.
This comprehensive expansion strategy underscores CMA CGM's long-term commitment to the Indian market and its recognition of India's growing importance in global trade networks. The decision to build ships in India not only boosts the local shipbuilding industry but also strengthens maritime ties between France and India.
The move towards LNG-powered vessels reflects the shipping industry's broader shift towards more sustainable practices. As environmental regulations tighten globally, CMA CGM's investment in cleaner fuel technology positions it favorably for future compliance and potential competitive advantages in an increasingly eco-conscious market.
This deal between CMA CGM and Cochin Shipyard Ltd represents a significant milestone in India's shipbuilding capabilities and its growing role in the global maritime industry. It also highlights the increasing focus on sustainable shipping solutions as the industry grapples with the challenge of reducing its environmental footprint.
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