Cochin Shipyard Ltd Eyes Global Breakthrough after $360 Million Container Ship Order from CMA CGM S A

In his first media interaction after taking additional charge as Chairman and Managing Director on February 1, Jose V J described the order for six LNG-powered feeder container ships as a “game changer” for the Mumbai-listed state-run shipbuilder.

“Delivering the ships on time and as per quality are very important things. We have no other option but to deliver on time when we are dealing with such giant clients; their monitoring and supervision will be like that,” Jose said in an interview to ET Infra from South Korea, where he is on an official visit.

Under the contract signed in New Delhi on February 18, the first of the six vessels—each with a capacity of about 1,700 twenty-foot equivalent units (TEUs)—is scheduled for delivery within 36 months of signing. The remaining ships will be delivered at the rate of two per year thereafter.

The LNG-powered feeder vessels are expected to strengthen India’s credentials in building environmentally advanced cargo ships for global liners.

Jose noted that CMA CGM S A, ranked among the world’s top three container carriers, has indicated interest in placing orders for larger vessels at Cochin Shipyard, subject to successful execution of the current contract.

“After we gain confidence in building these six feeder container ships, they have expressed willingness to place orders for big ships at Cochin Shipyard, provided we deliver these six ships on time and quality,” he said.

The French carrier had sought the association of a South Korean shipbuilder for the project. Cochin Shipyard already has a technical tie-up with HD Korea Shipbuilding & Offshore Engineering Co Ltd (HDKSOE), one of the world’s leading shipbuilding groups.

Under the arrangement, the ships will be constructed in India with South Korean design and technical support. Major equipment will be sourced from South Korea, including systems supplied by Hyundai, while the vessels will be designed by KOMAC. The engines will be supplied by Everllence (formerly MAN Energy Solutions), manufactured in South Korea by Hyundai under licence.

Jose said even South Korean shipbuilding executives were struck by the significance of the contract signing. While CMA CGM S A is currently building multiple 24,000 TEU vessels at South Korean yards, including Hyundai, such contracts are typically signed by senior executives. For the Cochin Shipyard deal, however, CMA CGM Group Chairman Rodolphe Saade personally travelled to India to sign the agreement.

“That sent a strong signal to the global shipping industry about India’s emergence as a potential alternative shipbuilding destination,” Jose said.

Originally, CMA CGM had planned to place a firm order for four ships with options for two more. Cochin Shipyard persuaded the carrier to convert the entire package into a firm six-vessel order by offering more competitive pricing. Each ship is valued at approximately $60 million.

The yard will also benefit from financial support under the government’s Shipbuilding Financial Assistance Scheme. As LNG-powered container ships qualify as specialised vessels, Cochin Shipyard will receive state aid of 15 per cent on the first ₹100 crore and 25 per cent on the remaining value of each ship, translating into an average subsidy of about 23.1 per cent per vessel.   Steel cutting, marking the start of construction, is planned for next year due to long lead times for critical components such as engines.   Jose credited Prime Minister Narendra Modi for playing a key role in securing the landmark order and emphasised that Indian shipyards must now capitalise on the ₹69,725 crore maritime revival package approved by the Union Cabinet last year.

“We can’t expect anything more from the government. Whatever was in our wish list, they have given us everything. Now, it’s up to the shipyards to take it and grow on the global stage,” he said.   The CMA CGM contract is being viewed as a critical test case for India’s ability to deliver complex, mainline commercial vessels on schedule—an area where global fleet owners have traditionally expressed caution. Successful execution, industry observers say, could open the door for Indian yards to secure larger and more technologically advanced shipbuilding orders in the years ahead.