CMA CGM reflags fifth container vessel in India

MUMBAI : French container shipping line CMA CGM Group on Wednesday announced the reflagging of its fifth container vessel in India, as it looks to enhance its service efficiency for customers across key trade routes.

Reflagging is the process of changing the country of registration (flag State) of a merchant ship. The group said it has been a strong growth partner of India across maritime, logistics, and infrastructure sectors and the reflagging of the 2,592 TEUs capacity vessel, Vila do Conde, marks another significant milestone in its continued investment and long-term commitment to the country.

Reflagging of vessels is picking up pace with the government’s plan to have a larger fleet owned by India. In September last year, Prime Minister Shri Narendra Modi had called for self-sufficiency in shipping, citing India’s ₹6 trillion outgo to foreign shipping lines in maritime trade.

All five vessels of the French carrier have been reflagged since last year. In February, Modi visited the company’s headquarters in Marseille with French President Emmanuel Macron. The French company also plans to flag its sixth vessel in the country by the end of May, as part of its expansion strategy.

CMA CGM has strategic initiatives planned to support India’s maritime ecosystem, on account of India playing an increasingly important role in global trade, it said.

In February, CMA CGM became the first major international carrier to order vessels from an Indian shipyard, after it signed a $350 million deal with state-owned Cochin Shipyard for the supply of six dual-fuel vessels.

It also has significant investments planned across logistics, with a $300 million one lined up in Maharashtra, the company’s chairman Rodolphe Saade had told this paper in an interview.

It is also eyeing operations in inland waterways, but is in the process of identifying a viable business proposal.

The company has been advocating that the Indian government leverage Gujarat International Finance Tec-City (GIFT City) as a vessel registration hub, according to a senior executive.

Registering vessels under the Indian flag has been a priority for the government as it eyes a larger share of global trade. While it has commercial benefits, the West Asia crisis has also led global experts to link it to maritime security.