PM Modi’s pitch helps India secure CMA CGM’s first-ever $300 million container ship order: Report

The order comes on the heels of a Rs 69,725-crore package approved by the Cabinet in September to strengthen India’s shipbuilding capabilities and help it compete with China, South Korea, and Japan. Each of the six vessels will have a capacity of 1,700 TEUs (twenty-foot equivalent units) and will run on LNG, aligning with CMA CGM’s commitment to decarbonising the global shipping industry

France-based CMA CGM, the world’s third-largest container shipping company, has identified India as an “alternative” hub for building small, liquefied natural gas (LNG)-powered container vessels, chairman and CEO Rodolphe Saadé told The Economic Times.

The company has signed a letter of intent with Cochin Shipyard Ltd to construct six LNG-fuelled box ships worth about $300 million — marking the first-ever container ship order by a global mainline operator in India and a landmark moment for the domestic shipbuilding sector.

Saadé praised Prime Minister Narendra Modi, telling ET that their meeting felt “like talking to a business leader rather than a Prime Minister.” He added, “What was impressive is… we spoke business, and he said, ‘You need to do more.’ Modi is not only a great political leader but also a great business leader.”

According to The Economic Times, the development is seen as a breakthrough for Indian shipbuilders who have been striving to establish a global presence. It comes on the heels of a Rs 69,725-crore package approved by the Cabinet in September to strengthen India’s shipbuilding capabilities and help it compete with China, South Korea, and Japan. Each of the six vessels will have a capacity of 1,700 TEUs (twenty-foot equivalent units) and will run on LNG, aligning with CMA CGM’s commitment to decarbonising the global shipping industry.

As reported by ET, India currently ranks 16th globally in shipbuilding, holding less than 1% of the global market share, but the CMA CGM deal is expected to significantly raise its profile. The government aims to propel India into the top 10 by 2030 and top five by 2047.

“In recent years, we have mostly placed our orders in China and South Korea, particularly for large vessels,” Saadé said in his interview with The Economic Times. “Now, we see India as an alternative for smaller ships. This is just the beginning of a long-term success story — India is now a country capable of building small LNG-powered ships.”

The agreement follows CMA CGM’s recent move to reflag four of its container ships under the Indian flag, fulfilling a promise Saadé made to Modi during the Prime Minister’s visit to CMA CGM’s Marseille headquarters on February 12 — a rare instance of an Indian PM visiting a global shipping major, highlighting the government’s focus on maritime infrastructure as a pillar of trade growth.

Saadé also confirmed to ET that the six new ships to be built at Cochin Shipyard will be registered under the Indian flag. While CMA CGM already has a significant footprint in India’s shipping and logistics ecosystem, the CEO said the new investment represents “a different magnitude” for the group’s engagement with India.

Recalling the origins of the deal, Saadé told The Economic Times that it began during a meeting between PM Modi and French President Emmanuel Macron. “The Prime Minister challenged me to invest in India, assuring that the government would support us,” he said. “After a few months of close coordination between the government, Cochin Shipyard, and our team, we are proud to confirm an order for six LNG-propelled container ships of 1,700 TEU capacity each.”