CMA CGM, the world’s third-largest container shipping company, has signed a letter of intent with Cochin Shipyard to build six LNG-powered container ships — a first for India. The $300 million deal marks the country’s entry into global container ship construction, traditionally dominated by China, South Korea, and Japan.
CMA CGM chairman and CEO Rodolphe Saadé described India as a strong “alternative” shipbuilding destination and praised Prime Minister Narendra Modi’s business-minded leadership. “It felt like speaking to a business leader, not just a Prime Minister,” Saadé said, adding that Modi encouraged the company to invest more in India.
Each vessel will have a capacity of 1,700 TEUs (twenty-foot equivalent units) and run on liquefied natural gas (LNG), reflecting CMA CGM’s focus on sustainability and decarbonisation. The company plans to flag the ships in India, further deepening its engagement with the country’s maritime sector.
For India, this deal is a milestone. It aligns with the government’s ₹69,725-crore shipbuilding initiative aimed at boosting global competitiveness and expanding market share, which currently stands at less than 1%. India targets a top-10 global ranking by 2030 and top-five by 2047.
Saadé said the company has long relied on China and South Korea for large container vessels but now wants India to become a key hub for smaller, LNG-propelled ships. “It’s only the beginning of a long success story,” he said.
The collaboration began after Modi’s visit to CMA CGM’s headquarters in Marseille earlier this year — a rare diplomatic gesture that sparked the company’s decision to invest. According to Saadé, the progress since then highlights strong cooperation between the Indian government, Cochin Shipyard, and CMA CGM.
The French carrier, already active in India’s shipping and logistics space, sees this project as a major strategic step in building ships locally — signalling confidence in India’s growing shipbuilding capabilities.
