Yildrim vetoes CMA?CGM plan for new containerships
A proposed order by CMA CGM for up to 20 10,000teu containerships has been vetoed by Turkish businessman Robert Yildirim , who exerted his group’s voting rights on the French shipping line’s board, ifw-net reports.
The initial order was to have been for 10 vessels, to be followed by a second series of 10, built by Chinese yards and chartered to CMA CGM for 10 years.
“This effectively meant the operator would be buying the ships,” Yildirim said.
In July, CMA CGM revealed it was in talks with Chinese interests about new ships to serve emerging markets, such as South America.
But Yildirim Group, instrumental in the financial rescue of the French carrier by investing $500 million for a 20% stake, has a veto over major decisions through voting rights acquired as part of the rescue deal.
“CMA CGM cannot make major decisions without our approval,” Yildirim said.
“Our aim is to see CMA CGM emerge more strongly, and such an order at this time would not be in the interests of the company or the container market.”
Yildirim was also highly critical of recent investments by other container lines in new ships in the face of current market conditions.
He told IFW’s sister publication, Lloyd’s List: “Coming from a trading background I still regard myself as an outsider in shipping. What I see in shipping is the role of ego in driving orders to keep up with the competition. This is very dangerous.
“The container industry has made some big mistakes in ordering tonnage and competing for market share.”
Yildirim suggested Maersk Line’s recent order for a fleet of 18,000teu mega-ships and new daily service from Asia to Europe was more about beating the competition than reflecting the market.
“It is not good for the industry,” he said. “The liner sector needs more co-operation to achieve rationalisation and consolidation.”
Yildirim confirmed that although he was happy with how CMA CGM was performing, the investment was accompanied by an agreement with banks that, should CMA CGM go bankrupt, Yildirim would effectively take control, putting in further investment but then splitting the group.
He said he was encouraged that CMA CGM moved back into profit last year and the early part of this year.
But, like other container lines it is now making losses again.
“The company is making progress, but if the market does not recover, other actions might be necessary,” he said.
The initial order was to have been for 10 vessels, to be followed by a second series of 10, built by Chinese yards and chartered to CMA CGM for 10 years.
“This effectively meant the operator would be buying the ships,” Yildirim said.
In July, CMA CGM revealed it was in talks with Chinese interests about new ships to serve emerging markets, such as South America.
But Yildirim Group, instrumental in the financial rescue of the French carrier by investing $500 million for a 20% stake, has a veto over major decisions through voting rights acquired as part of the rescue deal.
“CMA CGM cannot make major decisions without our approval,” Yildirim said.
“Our aim is to see CMA CGM emerge more strongly, and such an order at this time would not be in the interests of the company or the container market.”
Yildirim was also highly critical of recent investments by other container lines in new ships in the face of current market conditions.
He told IFW’s sister publication, Lloyd’s List: “Coming from a trading background I still regard myself as an outsider in shipping. What I see in shipping is the role of ego in driving orders to keep up with the competition. This is very dangerous.
“The container industry has made some big mistakes in ordering tonnage and competing for market share.”
Yildirim suggested Maersk Line’s recent order for a fleet of 18,000teu mega-ships and new daily service from Asia to Europe was more about beating the competition than reflecting the market.
“It is not good for the industry,” he said. “The liner sector needs more co-operation to achieve rationalisation and consolidation.”
Yildirim confirmed that although he was happy with how CMA CGM was performing, the investment was accompanied by an agreement with banks that, should CMA CGM go bankrupt, Yildirim would effectively take control, putting in further investment but then splitting the group.
He said he was encouraged that CMA CGM moved back into profit last year and the early part of this year.
But, like other container lines it is now making losses again.
“The company is making progress, but if the market does not recover, other actions might be necessary,” he said.