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Cochin Shipyard Limited has secured its first-ever global container shipbuilding order from CMA CGM for six LNG-powered feeder vessels, valued at USD 300 million. Each ship will carry 1,700 TEUs, marking India's entry into high-value international shipbuilding. The order follows CMA CGM's earlier reflagging of vessels under India and comes amid the government's Shipbuilding Financial Assistance Policy 2.0. It enhances CSL's global credibility, positions India as a future shipbuilding hub, and strengthens domestic supplier networks for engines and ship components, supporting the nation's long-term maritime ambitions.
Cochin Shipyard Limited (CSL) has received an order from CMA CGM, the world's third-largest container shipping company, to build six liquefied natural gas (LNG)-powered feeder container vessels. The contract, valued at approximately USD 300 million, was formalized earlier this week through a Letter of Intent. Each vessel will have a capacity of 1,700 twenty-foot equivalent units (TEUs), a standard measure of container capacity in the shipping industry. Advertisement
This order is historic for India, as it is the first time a global mainline shipping operator has placed a container shipbuilding order in the country. India currently ranks 16th in global shipbuilding with less than 1% of market share. The government and industry aim to elevate India into the top 10 shipbuilding nations by 2030 and the top 5 by 2047, coinciding with the centenary of independence.
Cochin Shipyard, which has previously built India's first indigenous aircraft carrier, the largest dredger, and several specialized vessels for European clients, sees this order as a defining milestone. A recent partnership with South Korea's HD Korea Shipbuilding & Offshore Engineering Co Ltd (KSOE), one of the world's leading shipbuilders, also strengthened CMA CGM's confidence in CSL, finalizing the order after months of discussions.
The CMA CGM order builds on earlier steps taken by the company, including reflagging four container ships under the Indian flag, following a commitment made by Chairman Rodolphe Saad' to Prime Minister Narendra Modi during a rare visit to CMA CGM's headquarters in Marseille. The six new ships ordered may also be registered in India. India's neutral stance in current geopolitical tensions has been considered a favorable factor in securing the order.
Discussions on the order began in February and awaited clarity on the Shipbuilding Financial Assistance Policy 2.0 (SBFA 2.0), which the Cabinet approved last month. Under the policy, CSL will receive 20-25% financial support depending on whether the LNG-powered vessels are categorized as advanced specialized ships or green ships. The policy, part of a broader INR 69,725 crore shipbuilding incentive package, provides a major boost to Indian shipyards.
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