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France's CMA CGM, the world's third-largest container shipping company, is set to formalise a shipbuilding contract with India's Cochin Shipyard Ltd for six liquefied natural gas (LNG)-powered container vessels worth about USD 300 million, marking the first time a global liner has placed such an order in India. Each vessel will have a capacity of about 1,700 twenty-foot equivalent units (TEUs) and be built with technical cooperation from a Korean partner. The deal follows an earlier Letter of Intent and comes amid government support for specialised shipbuilding.
France-based CMA CGM is preparing to sign a firm shipbuilding contract with state-owned Cochin Shipyard Ltd for six container ships in a pact valued at around USD 300 million. The signing is scheduled for later this week, building on a Letter of Intent the two parties agreed on in October last year. This agreement marks the first time a major global container carrier has placed a direct order for such vessels with an Indian yard. Advertisement
Each of the six ships included in the deal is expected to have a capacity of about 1,700 TEUs, a standard measure of cargo space in the industry, and will be powered by liquefied natural gas. LNG propulsion is part of CMA CGM's broader move toward lower-emission fuels and aligns with its objective to reduce carbon emissions from its fleet.
Discussions between the parties in recent months focused on finalising commercial and technical terms. Cochin Shipyard is also poised to receive financial support under the government's Shipbuilding Financial Assistance scheme because these LNG-fuelled ships are designated as specialised vessels for subsidy purposes. This state support is aimed at boosting India's shipbuilding competitiveness globally.
The vessels are expected to be built with technical cooperation from a Korean shipbuilding partner, reinforcing India's growing linkages with established global maritime firms. Deliveries of these container ships are likely to occur between 2029 and 2031, and they will be registered under the Indian flag, further integrating India into international shipping operations.
For Cochin Shipyard which has built India's first locally made aircraft carrier and a range of naval and commercial vessels this contract is a milestone. It supports the government's vision to elevate India's presence in global shipbuilding. The yard's facilities and recent partnerships with foreign firms have helped enhance its capabilities and attract international orders.
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