Why CMA CGM is Betting on India to Build Its Next Generation of Ships
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.
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.
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.
