Cochin Shipyard Limited (CSL), the largest shipbuilding and maintenance facility in India, has secured its first-ever international order for ocean-going container ships.

The French shipping giant CMA CGM, the world’s third-largest container carrier, has signed a Letter of Intent (LoI) with CSL to construct six liquefied natural gas (LNG)-powered feeder container vessels, each with a capacity of 1,700 TEUs. The order is valued at approximately $300 million.

This is the first time a global mainline operator has placed a container ship order in India, showing the country’s growing capabilities in commercial shipbuilding.

CMA CGM has previously built larger vessels primarily in China and South Korea but now sees India as a hub for smaller LNG-powered ships. The newly ordered vessels are also expected to be registered under the Indian flag.

The deal follows a series of high-level interactions between CMA CGM and Indian authorities. Earlier this year, the company’s chairman and CEO, Rodolphe Saadé, met with French President Emmanuel Macron and Indian Prime Minister Narendra Modi.

Following these discussions, CMA CGM reflagged four of its container ships under the Indian flag, showing its commitment to India’s maritime sector.

Cochin Shipyard Limited, has a strong record in defence and specialised vessels, including the indigenous aircraft carrier INS Vikrant. The shipyard is also executing international contracts for Service Operation Vessels with North Star and Pelagic Wind Services.

Recently, CSL signed a strategic cooperation agreement with South Korea’s HD Hyundai to enhance its commercial shipbuilding capabilities.

India currently ranks 16th globally in shipbuilding but aims to reach the top 10 by 2030 and the top 5 by 2047. The Ministry of Ports, Shipping and Waterways has introduced policies and incentives to support domestic shipbuilding and repair clusters.

Experts believe the CMA CGM order could lead to more international deals and larger orders for India.

References: TOI, Money Control