News / CMA CGM targets auto sector via Ceva ro-ro transhipment services

Photo: Alibaba

Transporting finished vehicles appears to have become a new growth bet for cash-rich mega-container lines trying to diversify beyond container logistics in an increasingly competitive environment.

CMA CGM is the latest to join that push, having recently acquired four pure car-carrier newbuilds from a Chinese yard, all dual-fuel, capable of operating on liquified natural gas (LNG).

Their operations are managed through the Marseille-based carrier’s sister unit Ceva Logistics, according to available information.

Hambantota International Port (HIP), a ro-ro trade hub in Sri Lanka, last week saw a call from car-carrier CMA CGM Silverstone, marking what could become a regular call in South Asia for the carrier. HIP, built by China Merchants Port Holdings under a 99-lease deal with the Sri Lankan port authority, has 13 berths, with expansions lined up.

“CMA CGM bringing its first pure car-carrier vessel to Sri Lanka is a significant moment,” said Kingsley Abeywickrama, director of CMA CGM Lanka. “While this is a one-off trial call, it provides an opportunity for us to assess HIP’s potential as a future transhipment hub for car operations.”

The 200-metre ship can carry up to 7,000 cars across 12 deck levels and arrived at HIP from Singapore to pick up 333 transhipment units on behalf of South Korean automaker Hyundai, before going on to Casablanca in Morocco.

Lance Zuo, GM of commercial and marketing at HIP, added: “As CMA CGM continues to expand its ro-ro capabilities, this maiden call signals the company’s intent to explore new opportunities in vehicle transhipment, leveraging HIP’s strategic location and modern infrastructure.”

That significance is two-pronged, he noted, a first ro-ro call by the French carrier at a Sri Lankan port, and secondly, it seems to believe there is an opportunity for car-carrier vessels to fill capacity with growing transhipment volumes, including from manufacturers in India, Japan, China, and South Korea.

CMA CGM already makes 14 calls a week at Sri Lanka’s Colombo port for container shipping, and Ceva has indicated plans to transport approximately 140,000 vehicles annually between global markets, especially China and Europe.

“Ceva is strengthening its Cars in Containers solution to offer a more flexible option for shippers that need to transport small quantities of finished vehicles to strategic ports or inland locations not easily served by its own ro-ro vessels or other carrier partners,” it said.

“With lower shipping rates and limited ro-ro capacity, carmakers can take advantage of this solution for reduced lead times and increased flexibility in terms of shipping schedules.”

Last year, MSC also exhibited growth signals around the ro-ro trade with the acquisition of Gram Car Carriers, a pure car and truck carrier operator, in a $696m deal inked via its subsidiary, SAS Shipping Agencies Services.