CMA CGM Signs Deal with Cochin Shipyard for Six LNG Ships

France-based CMA CGM has signed a letter of intent with Cochin Shipyard Ltd (CSL) to construct six LNG-powered feeder containerships -  marking the first time a global shipping line has placed an order at an Indian shipyard.

The six vessels, each with a capacity of 1,700 TEUs, are collectively valued at around $300 million. Cochin Shipyard confirmed in a stock exchange filing that a detailed shipbuilding contract covering technical and commercial aspects will be finalized in the coming months.

“This is a mega order from a prominent European client,” CSL said in a statement. Though the company did not disclose the buyer, industry sources have identified CMA CGM — led by Rodolphe Saadé and ranked as the world’s third-largest container carrier — as the client.

Insiders close to the deal indicated that the vessel design will likely be based on an existing HD Hyundai Heavy Industries model, following Cochin’s partnership agreement signed earlier this year with the South Korean shipbuilder.

The order represents a landmark achievement for India’s shipbuilding industry, which has long aimed to attract major international shipping contracts. It follows the Indian government’s recent approval of a multi-billion-dollar support package intended to boost the nation’s shipbuilding capabilities and modernize its facilities.

CMA CGM first announced its intention to order vessels in India back in May as part of its regional expansion strategy. The company has maintained a strong presence in India for 34 years, employing roughly 17,000 people, and continues to invest in terminal operations and logistics infrastructure.

In recent months, the Marseille-headquartered liner has reflagged four containerships under the Indian flag and increased its investments in ports, including the Nhava Sheva Freeport Terminal (NSFT) near Mumbai and Mundra Port.

For Cochin Shipyard — founded in 1972 and majority-owned by the Indian government — the deal strengthens its ambition to emerge as a global shipbuilding leader. The yard entered the container vessel segment in 2023 after securing an order from Samskip and is now collaborating with Maersk, the world’s second-largest containerline, on potential ship repair and construction projects.

India’s broader maritime roadmap envisions the nation becoming one of the top 10 shipbuilding powers by 2030 and one of the top five by 2047. Currently, India accounts for roughly 1% of the global shipbuilding market.