CMA CGM, the French shipping giant and the world’s third-largest container carrier, has chosen India as a promising base to build small LNG-powered container ships.

This comes after the company’s chairman and CEO, Rodolphe Saade, signed a letter of intent with Cochin Shipyard to build six vessels worth around $ 300 million, as reported by the Economic Times. The deal marks a historic moment since it is the first time a global mainline operator has placed a container ship order in India.

Sharing his thoughts on Prime Minister Narendra Modi, Saade said, "What was impressive is… I had the feeling I was talking to a business leader and not a Prime Minister because we spoke business... he said, 'You need to do more.'"

The agreement is a big boost for Indian shipbuilders who are working to build a global reputation. It also comes with support from a government package of ₹ 69,725 crore approved in September to help the industry grow and compete with leading shipbuilding nations. Each ship will have a capacity of 1,700 TEUs and will run on LNG fuel, reflecting CMA CGM’s commitment to reducing emissions and moving toward cleaner shipping.

India’s shipbuilding industry currently ranks 16th in the world with less than 1 per cent market share, but the country is aiming to be among the top 10 by 2030 and the top five by 2047. Saade said that while their larger vessels are mostly built in China and South Korea, India offers strong potential for building smaller ships.

The move follows CMA CGM’s recent step to register four of its ships under the Indian flag, keeping a promise made to Modi during his visit to the company’s Marseille headquarters on February 12. Saade also confirmed that the newly ordered ships would be registered in India.

The initiative gained momentum after the involvement of both Modi and French President Emmanuel Macron. Saade said that Modi’s push to invest in India, combined with efforts from the government, Cochin Shipyard, and CMA CGM, made this landmark vessel order possible.