French shipping group and one of the world’s largest operators of LNG-powered vessels, CMA CGM, has agreed to make an investment in compatriot Brittany Ferries to support the firm’s post-Covid-19 recovery.
CMA CGM will make a 25 million euros ($29.5 million) investment in Brittany Ferries, including 10 million euros in quasi-equity, according to a joint statement on Tuesday.
The partnership would help to unlock synergies between the two companies in passenger and freight transport, the statement said.
“By harnessing the respective areas of expertise of the CMA CGM Group and Brittany Ferries, it will also help promote the development of cross-Channel shipping and underpin France’s position in the sector,” it said.
Under this agreement, a representative of CMA CGM will join Brittany Ferries’ supervisory board.
The agreement establishes a commercial partnership between the duo through the use of available cargo space on board Brittany Ferries’ services to the United Kingdom, Ireland and the Iberian Peninsula.
Also, the transportation of goods aboard Brittany Ferries’ roll-on roll-off ships will help expand CMA CGM’s offering in the RoRo sector for the Atlantic and northern coast of France to destinations in the UK.
Cooperation on LNG-powered vessels
CMA CGM and Brittany Ferries, both of which are investing liquefied natural gas to power their ships, will be “looking at ways of sharing their LNG knowledge and resources in areas such as training for French crews and safety procedures,” the statement said.
Two new LNG-powered ships are due to join Brittany Ferries’ fleet next year and in 2023.
The new Ro-pax vessels, Salamanca and Santona, will operate services between the UK and Spain.
Brittany Ferries chartered the two vessels from Stena. The duo recently signed a deal for two new LNG-powered ferries, boosting the total to four.
On the other side, CMA CGM is heavily investing in LNG as fuel and expects to have 44 LNG-powered containerships in its fleet by 2024.