CMA CGM’s project division leverages parent’s logistic reach

An interview with Stéphane Berninet, head of CMA CGM’s Project Cargo division

CMA CGM holds plenty of aces when it comes to project cargo and breakbulk capabilities, not least a fleet of around 620 ships and a network of 250 maritime lines, serving 420 ports worldwide.

Its dedicated division can handle to up to 500 tonnes in a single shipment, through a single-entry point and provide specialist teams located around the globe – Europe, China, Brazil, the US, the Middle East and Singapore – to ensure close co-operation with customers.

It can also call upon the French ocean shipping giant’s logistics arm, CEVA Logistics, albeit far from exclusively, which has recognized expertise in the segment, as well as the group’s cargo airline which operates a wide-body fleet.

All-in-all, CMA CGM’s offering amounts to a multi-modal, one-stop shop for shippers seeking transport and logistics solutions to accommodate outsized, irregularly-shaped, extra-heavy or hazardous cargo across a broad range of verticals – renewable energy, mining, oil & gas, high and heavy vehicles, transportation infrastructure and industrial plant.

In an interview, with AJOT, Stéphane Berninet, head of CMA CGM’s Project Cargo division, commented on the group’s presence and development in the segment while also providing an insight into current market conditions and identifying some of the main challenges that lie ahead.

Pushing Boundaries of Containerization Model

According to CMA CGM’s website, the division handled a total of 1,282 breakbulk projects in 2021, the latest year for which figures have been published, equating to 380,000 out of gauge TEU.

Since then, “a significant upward trajectory” in the division’s volume of business has continued, Berninet revealed. “We keep growing year on year and overall, the Out of Gauge (OOO) market segment achieved a Compound Annual Growth Rate (CAGR) of over 20% between 2020 and 2024.”

He continued: “We’ve built a strong reputation over decades in the segment, thanks to a strategy that prioritizes technical expertise and a customer-focused approach. Our skilled teams, including project sales, pricers and commercials and engineers, are capable of designing and executing customized, end-to-end logistics solutions for large-scale industrial projects.”

What distinguishes the CMA CGM project cargo/breakbulk division from its rivals is the capacity “to push the boundaries of containerization to accommodate oversized and heavy-lift cargoes, offering an alternative to the more conventional transport modes such as project carriers and ro/ro,” Berninet noted.

Dynamic Industrial Sectors

Turning to the outlook for the market, for the near-term and beyond, the expectation is for robust growth, “although the trajectory will be heavily influenced by the performance and dynamism of key industrial sectors, such as energy, infrastructure, mining, and heavy manufacturing. At the same time, oil and gas continue to be significant.”

The transition to renewable energy, particularly in wind and solar, will boost demand for specialized logistics, alongside the on-going investments being undertaken in carbon capture, hydrogen, and energy storage systems, Berninet observed.

“Large infrastructure projects, technological advancements in industries like ‘big tech’, semiconductor manufacturing and small modular reactors (SMRs), and supply chain diversification, in response to geopolitical tensions, will also drive demand for project cargo.”

Too Rigid and Costly

As for the main challenges facing the project cargo/breakbulk sector today, Berninet singles out what he describes as “the management of the increasing complexity and scale of industrial projects.”

He continued: “These projects often require large, specialized equipment and materials that are difficult to transport and face supply chain disruptions, fluctuating freight costs, and capacity constraints. In this context, traditional breakbulk and project carrier shipping is often too rigid or costly to meet the dynamic needs of these industries.”

A strategic solution, he underlined, is the use of container liner services, which offer several advantages: long-term planning, visibility, and flexibility.

Shippers can benefit from consistent shipping schedules and global reach with multiple port-pair offers, ensuring that their project timelines remain on track, Berninet explained.

These services also streamline logistics by reducing the reliance on specialized vessels that may be in short supply and help manage the risk of delays.

“To summarize, the ability to plan long-term, leverage reliable global services, and increase the efficiency and security of transport through container liner services specifically, addresses the logistical challenges of the project cargo/breakbulk segment, helping industries stay agile and competitive in an evolving marketplace.”

On the supply side, Berninet pressed the point that the market faces a shortage of specialized vessels due to slow fleet expansion and limited new orders, which sees ageing ships remaining in service, resulting in high operational costs.

“This supply-demand imbalance, combined with the pressure for sustainability and cleaner fuels, creates a prime opportunity for the container carriers. With our solid positioning, expertise, and flexibility, we will continue to advocate containerization as a reliable option for project shippers, leveraging our strengths to onboard new customers and drive future success.”

Africa’s strong Growth

Committed to expanding its geographical footprint, CMA CGM views Africa as offering significant growth potential in the project cargo/breakbulk segment.

African container terminals with lifting capacities of over 60-80 metric tons are increasingly interested in handling project cargoes, Lekki Freeport, Nigeria’s premier deep-sea port, which is managed by CMA CGM, being a prime example.

Recent projects led by Berninet’s teams include the transport of equipment for the construction of a new terminal at the port of Cotonou, in the West African state of Benin – a key transit port to land-locked states such as Niger, Burkina Faso and Mali – which will offer 20 hectares of capacity dedicated to bulk and breakbulk products.

In the energy sector, Africa is one of the most dynamic regions for hydrocarbons, LNG and hydrogen projects and the need to replace Russian oil and gas with alternative sources is set to boost demand for African energy suppliers, he said.

The CMA CGM division is also participating in the transportation of several components for the Expro/ENI LNG pre-treatment facility, currently under construction, which will enable an increase in LNG production in West Africa.

Berninet also flagged “huge” demand for agricultural and natural resources, including minerals, which in turn is driving shipments of high-sided and heavy vehicles, among them tractors and wagons from China to a number of African countries. For example, Sinotruk is supplying many dump trucks from Asia to ports in Mozambique, destined for a gold mine project in Zimbabwe.