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CMA CGM grows global footprint from Singapore

Logistics and transport player CMA CGM is committed to Singapore's development as an international maritime centre.

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The CMA CGM-PSA Lion Terminal (CPLT) started operations in July 2016 with two berths and a capacity of 2 million TEUs (twenty-foot equivalent units). By Jan 2017, the terminal had doubled the number of berths, and is now equipped with a total operating capacity of 4 million TEUs.
  • International Maritime Centre Award (Corporate) 2019 winner: CMA CGM

Singapore is a key regional base for global transport and logistics group CMA CGM, where it employs close to 1,000 people and offers more than 100 services per week through its network of Ocean Alliance, North-South and Short-Sea lines. The French company's Fleet Navigation Center for the Asia-Pacific region also operates from Singapore, while its shipping subsidiary APL is based here.

"As a testimony to this local commitment, CMA CGM has entered into several strategic partnerships aimed at boosting its presence and developing Singapore as an international maritime centre," said Mathieu Girardin, vice-president, CMA CGM Asia Regional Office.

These include the CMA CGM-PSA Lion Terminal (CPLT), which started operations in July 2016 with two berths and a capacity of 2 million TEUs (twenty-foot equivalent units). By Jan 2017, the terminal had doubled the number of berths, and is now equipped with a total operating capacity of 4 million TEUs.

Since then, CPLT has achieved superior service levels with an average Gross Berth Productivity of more than 160 moves per hour for the mega vessels, peaking at 220 moves. Leveraging Singapore's industry-leading port infrastructure and technologies - including state-of-the-art yard automation - CPLT is able to service the vessels of CMA CGM and other shipping companies.

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Meanwhile, in order to encourage maritime innovation in Singapore's startup scene, the CMA CGM Group and PSA International signed a Memorandum of Understanding in 2018 to drive digitalisation and innovation in the shipping and supply chain ecosystems.

This agreement paved the way for a strategic partnership between ZEBOX - CMA CGM's international incubator and accelerator for innovative startups - and PSA Unboxed, which is PSA International's external innovation and corporate venture, whereby both entities will share resources, key knowledge and expertise.

Comprehensive solutions

In 2017, CMA CGM launched its "Shipping the Future" strategy. One of the priorities identified was the development of inland solutions and logistics. This is part of the group's efforts to offer its customers comprehensive solutions combining transport and logistics. It is this mission that drove CMA CGM's decision to invest in global supply chain company CEVA Logistics in April 2018, leading to the current public tender offer for its shares. "By taking control of a global player in logistics, CMA CGM will be able to offer its customers comprehensive solutions combining transport and logistics and to complete its maritime transport business with a less volatile activity," said Mr Girardin.

Through this partnership, CMA CGM aims to realise its goal of becoming a world leader in transport and logistics, with a workforce of 100,000 people and generating more than US$30 billion in revenue. As part of the deal, CMA CGM will transfer its freight management activities to CEVA Logistics, thus strengthening the company and creating economies of scale. CMA CGM will also support additional investments in CEVA Logistics' digital and IT transformation to stimulate growth and operational efficiency.

The group also plans to leverage its operational expertise and experience in corporate transformation to help CEVA achieve its recovery plan faster and more efficiently.

Said Mr Girardin: "As a leader in the sea transport sector with an international commercial network, CMA CGM will also generate new opportunities for CEVA Logistics."