CMA CGM to acquired a c.48% stake in Santos Brasil, multi-terminal operator including South America’s largest container terminal in the Port of Santos
CMA CGM will launch a new domestic service in the Philippines, becoming the first foreign-owned international shipping line to establish this service. This is being done through CMA CGM’s intra-Asia short-sea specialist company called CNC..
Shipping market.
This new service will establish new maritime trade routes, improve connectivity between principal ports in the country, reduce transit times, lower logistics costs and foster strong economic ties and trade flows across the region.
It is noteworthy that the government of the Philippines has permitted foreign shipping companies to venture into the domestic shipping market.
Country’s shipping capacity
Philippines’ Department of Transportation Undersecretary for Maritime, Elmer Sarmiento expressed his happiness at this development. He added that it would improve the country’s shipping capacity and create job opportunities for maritime professionals, strengthening the maritime industry of the Philippines.
CNC Pilipinas
The new service will commence with the CNC Pilipinas, a 1037 TEU ship sailing under the flag of the Philippines. The ship was constructed in 2009 and has a DWT of 12500. It was earlier operated by COSMOSHIP and ANL Singapore.
Global fleet of container ships exceeded 30 million TEUs
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Luzon Visayas Mindanao Express
It will ply on the Luzon Visayas Mindanao Express shipping service, with weekly port calls which would rotate between Manila, Cagayan de Oro, Cebu, and Manila. It will use Very Low Sulfur Fuel oil, in compliance with IMO 2020 standards, even though the country has not completely implemented IMO 2020 in its maritime sector.
Filipino seafarers
Steven Zhu, CEO of CNC said that they are thrilled to be the first foreign company to establish their entity in the country and with the government’s support will bring the best knowledge, technologies and infrastructure to the domestic market.
CNC mentioned that domestic service allows Filipino seafarers to get acquainted with operations and training at par with international standards.
Bo Wegener, CEO of CMA CGM Asia-Pacific added that Asia is a major contributor to the company’s growth and the establishment of this new service is a milestone for the company as they develop its expertise and expand in the region.
CNC
CNC was founded in 1971 and is based in Singapore. CMA CGM acquired it in 2007 and in 2019 it became the only short-haul shipping name in Asia.
It provides services in many countries including Indonesia, Bangladesh, Cambodia, China, Japan, Malaysia, South Korea, Philippines, Myanmar, Thailand, Vietnam, Singapore, Hong Kong and Taiwan.
Acquira a c.48% stake in Santos Brasil
on the other hand The CMA CGM Group, global player in sea, land, air and logistics solutions, has announced the signing of a definitive and irrevocable agreement to acquire a c.48% stake in Santos Brasil Participações S/A (« Santos Brazil »), a prominent listed Brazilian multi-terminal operator, from funds managed by Opportunity.
CMA CGM intends to further develop its line calls in the various Brazilian terminals and further improve its offering to Brazilian exporters and importers, thereby responding to increasing demand and better addressing consumer needs.
The expansion potential of Tecon Santos terminal capacity and its operational excellence will be a useful support to enhance service quality.
To meet global demand, CMA CGM intends to accelerate investments in Santos Brasil terminals, with an objective to increase the combined capacity in the coming years, in line with the commitments undertaken by Santos Brasil with port authorities.
These strategic facilities will continue to operate as multi-user terminals under the leadership of the current management team and will continue to focus on improving the quality of their services to satisfy the expectations of their customers.
CMA CGM is also committed to pursuing the decarbonization plan already initiated by Santos Brasil.
Sources : CNC Line + Press – release
