The CMA CGM Group has awarded a contract to Cochin Shipyard Limited (CSL) to build six 1,700 TEU dual-fuel LNG-powered container ships, marking the first time a major global container carrier has placed such an order with an Indian shipyard. The move signals growing international confidence in India’s shipbuilding capabilities. In this interview, Rodolphe Saadé, Chairman & CEO of CMA CGM Group, discusses why CSL was selected for the project, the strategic value of its partnership, and the potential for future vessel construction in India. It also outlines its decarbonisation roadmap and how it is adapting operations to navigate evolving geopolitics and trade.
This $360 million contract for six container ships is expected to elevate India into the “big league” of shipbuilding nations. What capabilities or strategic advantages did you see in Cochin Shipyard that gave CMA CGM the confidence to place this order?
One of the key reasons was the competitive offer that Cochin Shipyard presented, which enabled us to move forward with this order. Beyond that, the shipyard’s collaboration with Hyundai Heavy Industries is particularly important for us. This partnership offers the potential to expand capacity in the future, including the possibility of building larger vessels. It gives us confidence that the shipyard can support our longer-term requirements as our fleet evolves.
The vessels will run on LNG and be registered under the Indian flag, aligning with India’s maritime ambitions. How does this partnership fit into your long-term strategy for expanding industrial and technological collaboration in India?
We are very open and flexible when it comes to opportunities in India. Our core business is shipping and logistics, and we are keen to expand our presence around this ecosystem. India is a large country with a significant population and is in the process of building new industrial capabilities. We would certainly like to be part of that journey and contribute to the development of the sector.
Are you exploring partnerships with other shipyards apart from Cochin?
At the moment, our focus is on seeing how the construction of the 1,700 TEU vessels progresses. Once we see the outcome of this project, we will evaluate the next steps. For now, we are satisfied with what Cochin Shipyard has proposed and would like to continue engaging with them.
CMA CGM has already invested billions in decarbonising its fleet and aims for net zero by 2050. How quickly can alternative fuels move from transition solutions like LNG to truly zero-carbon shipping?
The vessels we are ordering at Cochin Shipyard will be LNG-propelled, which will allow us to reduce our CO₂ emissions by roughly 20 per cent. However, achieving net zero by 2050 is not an easy task and will be a major challenge for the entire industry.
What is important is to have a clear plan of action and a roadmap that allows us to track progress every year. We believe the transition needs to happen step by step, demonstrating measurable outcomes as we move forward.
Given geopolitical volatility and shifting trade routes, how is CMA CGM building resilience into its network while maintaining cost efficiency?
Geopolitics plays a very significant role in our daily operations. For a shipping and logistics company like ours, the most important thing is the ability to adapt. We are not here to judge whether geopolitical developments are good or bad. Our priority is to adjust our operations accordingly and seize opportunities when they arise.
Adaptability is really the key to maintaining resilience in such an environment.
This is an abridged version of the interview published in the May edition of the Logistics Insider Magazine. To read the complete interaction, click here.
