India’s Cochin Shipyard Secures Mega Order from CMA CGM for First Boxships
India’s efforts to break into the leadership in global shipbuilding are taking a large step forward with Cochin Shipyard securing its first-ever international order for ocean-going containerships. India has been courting the major shipping companies to secure work to support the government’s plan to develop shipbuilding as a major industry and exporter.
Cochin, in a regulatory filing, announced what it terms a “mega order,” with the value being reported between $225 million to possibly over $300 million. The company said that it had signed a letter of Intent on October 14 and will proceed to a formal shipbuilding contract with “a prominent European client.”
Media reports immediately identified the client as CMA CGM. It follows meetings with the company at its headquarters in France last February, including a presentation by President Rodolphe Saadé to the Indian Prime Minister Narendra Modi and French President Emmanuel Macron. There were follow-up sessions in India, which led to CMA CGM announcing it was reflagging vessels to India for its local feeder operations. The CMA CGM Vitoria was transferred to the Indian flag in April, marking the first time a large international carrier had flagged a containership in India.
Cochin reports it will design and build six feeder container vessels. Each will have a capacity of 1,700 TEU and will be powered by liquified natural gas. No timeline has been announced for the construction. India’s Economic Times says the new vessels may also be flagged in India.
Already the country’s largest shipbuilder, the company has been busy with government work, including India’s first domestically built aircraft carrier. It has also executed contracts for niche vessels for international customers, including currently building SOVs for North Star and Pelagic Wind Services. The shipyard also recently signed a cooperation agreement with South Korea’s HD Hyundai, which is designed to expand its shipbuilding capabilities. As its work for the navy is completed, Cochin will have the capacity to expand into commercial shipbuilding.
India is currently ranked 16th in shipbuilding, but the government has committed to expanding the industry. Modi said India would break into the top 10 by 2030 and the top 5 by 2047. The government recently enacted a series of financial programs to support the shipbuilders and has a plan to develop both the existing companies as well as new yards into a series of shipbuilding clusters around India.
The government has also met with both Maersk and MSC Mediterranean Shipping to promote its shipbuilding and repair capabilities. Maersk has already said it was exploring the yards for repairs. Analysts are saying now that the first order has been received, it will open the door for Maersk, MSC, and others to follow suit.