$300 million deal: In a first, France’s CMA CGM eyes India for LNG-powered container ships; six vessels ordered – The Times of India

CMA CGM, the French shipping giant and world’s third-largest container carrier, has identified India as a potential hub for constructing small, LNG-powered container vessels. This development follows chairman and CEO Rodolphe Saade’s signing of a letter of intent with Cochin Shipyard for six vessels, valued at approximately $300 million, as reported by Economic Times. This marks a historic moment as the first container ship order from a global mainline operator in India.Saade shared his impressions of Prime Minister Narendra Modi, saying, “What was impressive is… I had the feeling I was talking to a business leader and not a Prime Minister because we spoke business… he said, ‘You need to do more.'”The agreement represents a significant achievement for Indian shipbuilders aiming to establish themselves globally, supported by a Rs 69,725-crore government package approved in September to enhance industry capabilities and compete with established shipbuilding nations. Each vessel will accommodate 1,700 TEUs and utilise LNG propulsion, aligning with CMA CGM’s commitment to shipping decarbonisation.Currently ranked 16th globally with less than 1% market share, India’s shipbuilding industry aims to secure a position among the top 10 by 2030 and top five by 2047. Saade indicated that while their larger vessels are primarily built in China and South Korea, India presents an opportunity for smaller vessel construction.This development follows CMA CGM’s recent decision to register four container ships under the Indian flag, fulfilling a commitment made to Modi during his February 12 visit to their Marseille headquarters. Saade confirmed that the newly ordered vessels would also carry Indian registration.The initiative gained momentum following Modi’s and President Emmanuel Macron’s involvement. Saade explained that Modi’s challenge to invest in India, coupled with collaborative efforts between the government, shipyard and CMA CGM, led to this significant vessel order.