News / CMA CGM eyes shipbuilding deal and coastal operations in India

Computer render of CMA CGM methanol vessel. Credit Hyundai Samho Heavy Industries

French container line CMA CGM is reportedly in the final stages of a market evaluation before committing to a shipbuilding investment deal in India.

According to industry insiders, the carrier has shortlisted Cochin Shipyard (CSL) – the largest shipbuilding and maintenance facility in India – for a mid-size tonnage building contract.

Sources expect an announcement in the next couple of months.

“Several global shipping lines are in talks with us,” a CSL source told The Loadstar, but declined to comment further.

The move comes on the heels of CMA CGM re-registering some of its ships in India and opening a local seafarer recruitment unit, all part of a broader trade profile development programme for the emerging economy.

Indeed, this week, the CMA CGM Manaus became its second bx ship to convert to an Indian flag, following CMA CGM Vitoria last month. And two more ships – CMA CGM India and CMA CGM Mediterranea – are next, with all four already operating on the BIGEX 2 string connecting to the Gulf and Red Sea.

The liner said the tonnage presence “underscored its commitment to India and its ambition to further develop its presence in the country.”

Meanwhile, it is also considering Indian coastal shipping operations, multiple sources recently told The Loadstar.

CMA CGM offers 19 weekly container services out of Indian ports, covering all global trades and the group has also cemented its infrastructure footprint with container terminal operations at Mundra and Nhava Sheva ports, and an expansive warehousing network through the acquisition of Ceva Logistics – 105 sites across 31 Indian cities totalling around 90,000 sq metres.

The Indian government recently liberalised policies and introduced tax incentives to drive investor interest in the development of shipbuilding yards and allied industries, and other global container carriers are also diversifying their operations in India.

Maersk has set up a memorandum of understanding (MoU) with Cochin Shipyard for partnerships for ship repair and newbuilding projects. And, according to reports, South Korea’s HD Hyundai Heavy Industries is “exploring market opportunities” to establish a large shipyard in India, most likely through a joint-venture with CSL.

Indian authorities are said to have identified one or two coastal locations in the southern belt for the project, involving an estimated capital outlay of some $1.2bn.

Shipbuilding development is now high on India’s economic growth agenda. To that end, the government, in its latest federal budget for fiscal year 2025-26, approved a $3bn “maritime development fund” (MDF).

“India’s maritime sector has witnessed significant progress since 2014 and. with the latest announcements, we are confident that the shipbuilding industry will serve as a catalyst for economic growth,” commented India’s shipping minister, Sarbananda Sonowal.