Home' Ships and Shipping : January 2011 Contents CONTAINER SECTOR NEWS
January 2011 SHIPS AND SHIPPING
In December, French container shipping giant CMA CGM
announced that a final agreement had been reached between
CMA CGM shareholders and Yildirim Group of Turkey.
The agreement should enable CMA CGM to strengthen its
equity base and secure the financing of its investment plan.
Under its terms, Yildirim Group will invest US$500 million in
CMA CGM by acquiring five-year ORA equity notes giving access
to 20 percent of CMA CGM's share capital. Yildirim Group will
also be given three seats on the ten-member Board of Directors.
The original family shareholder will retain a majority interest
with 80 percent of outstanding shares and voting rights.
Yildirim Group is an international family-run holding
company established in 1963 in Samsun, Turkey. It is currently
present in chrome ore mining and trading, ferrochrome
production and trading, coal trading, fertilizer production and
trading, shipping, shipbuilding, and port management.
"This alliance with Yildirim Group will enable us to
strengthen CMA CGM's balance sheet," said Jacques R. Saadé,
Chairman of the Board of Directors of CMA CGM.
Robert Yüksel Yildirim, President and CEO of Yildirim Group
said he is confident in CMA CGM's potential.
The agreement comes in a favourable environment for
For the first nine months of 2010, revenue totalled US$10.5
billion, up 38 percent over the previous year, while freight
volumes rose by nearly 18 percent year-on-year to 6.8 million
TEU. The group achieved an operating margin (EBITDA) for the
period of 18.5 percent, one of the best performances of its sector.
"These good results are attributable to the Group's strategic
choices, reflected in its investment policy in large vessels and its
pro-active cost reduction plan, together with the resumption of
world trade and in particular, the growth in volumes on the
Asia-Europe (up 21.1 percent) and Asia-United States lines (up
15.4 percent) in the first nine months of the year," said the
company in a statement.
"After the usual seasonal decline in volumes and freight rates
this autumn, the year will end with very good results."
CMA CGM has taken delivery of 12 new ships since the
beginning of 2010, bringing the number of owned ships to a
total of 92. New ships have also been chartered in, bringing the
total fleet to 400 units. In 2011, the group expects to receive nine
new owned vessels, including six of more than 10,000TEU.
DP World-operated Pusan Newport Company (PNC) has
announced the opening of the first on-dock rail at its
The PNC facility is expected to service all existing terminals at
Newport and the nearby freight stations and free zone. The
facility, which covers an area of more than 60,000 square metres,
comprises two operational units. Each unit consists of four
600-metre sidings and adjacent stacking areas and is serviced by
two rail-mounted gantries (RMG).
"The PNC rail operation supports the shift from road to rail
greatly encouraged by the Korean Government, which has
announced significant incentives to industry to move cargo from
road to rail as part of a "green transport" policy, and we are
confident the industry will be very supportive of the PNC
facility," said Jong-ki Kim, President of PNC.
The port area is supported by an extensive rail marshalling
area at nearby Newport Station in Noksan. With 32 holding
tracks, the facility has a large surge capacity that can reduce
overall transit times to and from the port.
The Korean government has completed a dedicated freight
line from PNC and Noksan to Samrangjin Station, connecting
the port to the main rail trunk routes between Seoul and Busan,
which will reduce overall transit times compared to the current
shared passenger/freight lines servicing the older, city-based
Turkish group extends lifeline to CMA CGM
DP World opens a large rail facility at Busan Newport
The first on-dock rail at Newport, Busan
'CMA CGM Christophe Colomb', CMA CGM's newest, biggest ship
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