France-based shipping giant CMA CGM has inked a landmark contract with India's Cochin Shipyard Ltd (CSL) for the construction of six advanced 1,700 TEU container ships. Valued at approximately $300-360 million, this deal represents a pivotal moment for India's shipbuilding sector.

The vessels will feature dual-fuel LNG technology, enabling them to operate on liquefied natural gas or traditional fuels. This design choice underscores a strong commitment to decarbonisation, aligning with global efforts to reduce maritime emissions.

Scheduled for delivery starting around February 2029, the ships will enhance CMA CGM's fleet with eco-friendly capabilities. The first vessel is slated for handover by that month, with the remainder following in quick succession.

This contract marks the first major international order for container vessels secured by an Indian shipyard. It bolsters the 'Make in India' initiative, which aims to revitalise domestic manufacturing and reduce reliance on foreign shipyards.

Technical cooperation from South Korea's HD Hyundai Heavy Industries will ensure the ships meet world-class standards. This partnership transfers vital expertise to CSL, elevating India's capabilities in green shipbuilding.

The agreement fits into CMA CGM's broader strategy in India, including a pledge to hire up to 1,500 Indian seafarers by 2026. It signals growing confidence in the country's maritime workforce and infrastructure.

India's shipbuilding industry has long lagged behind global leaders like China and South Korea. However, recent government incentives and investments are spurring growth, with CSL emerging as a frontrunner.

LNG-powered ships like these offer significant environmental benefits, slashing CO2 emissions by up to 25% compared to conventional fuels. They also cut sulphur oxides by nearly 100%, addressing stringent international regulations.

For CSL, this deal diversifies its portfolio beyond tankers and offshore vessels into container ships. The yard, located in Kochi, Kerala, has already delivered over 100 ships globally, but this export order elevates its profile.

Economically, the project will generate thousands of jobs in shipbuilding, engineering, and supply chains. It supports ancillary industries like steel fabrication and LNG systems, injecting vitality into local economies.

Geopolitically, the contract strengthens Indo-French ties in the maritime domain. Amid rising tensions in the Indian Ocean, such collaborations enhance India's strategic self-reliance in critical infrastructure.

CMA CGM, the world's third-largest container shipping line, operates over 600 vessels. Its investment in India reflects a shift towards sustainable supply chains and emerging markets.

Challenges ahead include navigating supply chain disruptions for LNG components and adhering to tight timelines. Yet, CSL's track record with complex projects instils optimism.

This milestone could pave the way for more foreign orders to Indian yards. Rivals like Mazagon Dock and Garden Reach may soon follow, accelerating the sector's renaissance.

Ultimately, the deal positions India as a credible player in green maritime technology. It exemplifies how targeted policies can transform ambitions into tangible achievements.

IDN (With Agency Inputs)