CMA CGM and the Port of Shanghai accelerate their decarbonisation journey

The CMA CGM Group, a global player in sea, land, air and logistics solutions, and Shanghai International Port (Group) Co., Ltd. (“SIPG”) signed today a long-term strategic collaboration to develop the mass scale use of “cold ironing” technology, the use of onshore power supply for containerships at the Port of Shanghai. From today all fully-fitted CMA CGM containerships calling at the port of Shanghai will systematically use the onshore power connection. By allowing ships to shut down auxiliary engines and use an onshore power supply while at berth, “cold ironing” eliminates sulfur oxide, particulate matter, and nitrogen oxide emissions, significantly improving air quality while also reducing noise pollution.

In late November 2022, the CMA CGM Group and SIPG successfully completed the technical trial of the “cold ironing” facilities of Yangshan Terminal in the port of Shanghai, which involved the CMA CGM Group’s 13 982 TEU containership APL FULLERTON and several other vessels.

For newbuild and retrofitted vessels – an ambitious deployment

The Group’s newbuild, most recent vessels are now equipped with the technology required to use “cold ironing”, and CMA CGM is conducting an extensive retrofitting program so other containerships can also use an onshore power supply. By the end of 2022, 13 CMA CGM vessels calling at the port of Shanghai will connect to the onshore power supply, and by mid-2023, this number will increase to reach 50.

Shipping and logistics’ decarbonization as part of CMA CGM and SIPG’s long term strategic partnership

Beyond significantly improving air quality and reducing CO2 emissions and noise pollution, this cooperation follows the successful pioneering of LNG simultaneous operation (SIMOPS) bunkering achieved in March 2022 in Shanghai, and represents yet another major milestone as part of CMA CGM and SIPG’s strategic partnership to accelerate the shipping and logistics industry’s decarbonization.

The CMA CGM Group is committed to achieving Net Zero Carbon by 2050 and intends to accelerate the energy transition in shipping and logistics, led by an enhanced energy mix.

By the end of 2026, the CMA CGM Group will have a fleet of 77 LNG powered vessels of various sizes. 32 “ bio and e -methane ready” vessels equipped with dual-fuel engines and LNG-powered are already in service. The engines deployed on these vessels already have the technical capability of using bio and e -methane, a source of carbon-neutral fuels.

In September, the CMA CGM Group announced the creation of a Fund for Energies, backed by a five-year, €1.5 billion budget, to accelerate its energy transition and achieve Net Zero Carbon emissions by 2050. The Fund is dedicated to increasing the pace of decarbonization across the Group’s worldwide ocean, ground and air freight shipping activity, as well as its logistics business.

In particular, the Fund for Energies will support the development and industrial-scale production of renewable energies (biofuels, biomethane, e-methane, green methanol, etc.), while accelerating the decarbonization of port terminals, warehouses, and land vehicle fleets.

Ludovic RENOU, CEO of CMA CGM China, commented: “CMA CGM is steadfastly committed to installing more environmentally responsible solutions on board our vessels, the Group supports cold ironing and we will continue to equip our fleet accordingly. We are breaking new ground by partnering with SIPG, our strategic partner, to collaborate on the mass scale cold ironing, another landmark in our partnership after the historic China’s first LNG SIMOPS bunkering jointly completed by us in March this year. Looking ahead, we will continue to join hands and drive forward more meaningful transformations to pioneer the energy transition together.”

Wenbin Luo, General Manager of Engineering and Equipment Department of SIPG, commented:

“SIPG has always been committed to the development of green ports and has always supported the energy transformation and decarbonization of shipping. This year, SIPG and CMA CGM jointly established the LNG bunkering Center at Shanghai Port. Today, SIPG and CMA CGM have confirmed the long-term strategic cooperation of cold ironing, and SIPG will continue to provide onshore power supply services for CMA CGM vessels at Shanghai Port. We firmly believe that enhanced cooperation between ports and shipping companies will accelerate the journey of decarbonization.”