CMA CGM Will Double Logistics Operation in Turkey with Acquisition
CMA CGM through its subsidiary CEVA Logistics is continuing the efforts to expand its logistics portfolio with the acquisition of Turkish logistics firm, Borusan Tedarik. The deal which is valued at approximately $440 million will double CEVA’s footprint in a key strategic market and provide new opportunities in other regions.
Borusan Tedarik has been in operation for more than 50 years, providing comprehensive logistics solutions in Turkey. This includes contract logistics, finished vehicle logistics (FVL), full truckload (FTL), and less than truckload (LTL) ground transport, as well as air and ocean freight and customs. In 2024, Borusan Tedarik had a gross revenue of $567 million and approximately 4,000 employees.
CEVA said the acquisition would nearly double the size of its warehousing and distribution operations in Turkey, adding approximately 570,000 square meters to its existing 620,000 square meters of warehouse space. Further, the combined ground transport activities would execute nearly one million transports per year in Turkey.
The deal also includes the transfer of Borusan Tedarik subsidiaries in Germany, Bulgaria, Hong Kong and China. Borusan Limani, another logistics company in the Borusan group that manages operations at the Borusan port on Gemlik Gulf in the Sea of Marmara, however, will remain with the Turkish group.
“As a top 5 global logistics player, we have identified Turkey as one of our strategic geographies where we expect to grow significantly. Complementing our existing presence in Turkey with
reputable experts and operations of Borusan Tedarik would put us in a position to offer even greater value to our combined customers,” said Mathieu Friedberg, CEO CEVA Logistics.
CEVA reports it will emerge in the top 3 with the automotive industry in finished vehicle handling, Its ocean capacity will be increased by 25 percent, while its air capabilities will rank among the top 5 in Turkey.
As the logistics arm of the CMA CGM Group, CEVA is integrating other large logistics players recently acquired by the ocean carrier. These include Ingram Micro’s CLS Division, GEFCO and Bollore Logistics.
Under the terms of the agreement with Borusan, CEVA will acquire 100 percent of Borusan Tedarik, including 69.47 percent of the shares held by the private Borusan Holdings and the remaining 30.53 percent which is held by the publicly traded Borusan Yatlrlm. Closing the deal is subject to regulatory approvals.
CMA CGM Becomes First Large Carrier to Register Containership in India
Supporting the Indian government’s ambitions to build the country’s role in international shipping, CMA CGM Group today marked the transfer of one of its ships to the Indian register. India which is already home to many seafarers wants to develop its shipping operations and expand its shipbuilding industry to more international shipping.
CMA CGM was one of several major shipping companies including also Maersk and MSC Mediterranean Shipping to express interest in India. The company hosted Indian Prime Minister Narendra Modi at its headquarters in February and said it would explore registering ships in India. The company is also looking at India’s shipbuilding and repair operations and already has investments in terminals located at Nhava Sheva Freeport, near Mumbai, and Mundra Port.
Today, April 28, the CMA CGM Vitoria was officially entered into the India registry while the ship was docked at the Nhava Sheva Free Port terminal. Built in 2008 and acquired by CMA CGM in 2022, the 33,434 dwt vessel was previously registered in Malta. Entering the Indian registry requires the ship to be crewed by Indian nationals and be classed by the Indian Registry of Shipping.
The vessel, which has a capacity of 2,592 TEU is deployed on a route between India, the Persian Gulf region, and the Red Sea. India’s Economic Times highlights that Indian ships pay a tonnage tax instead of corporate taxes and the country is considered “lender and regulatory unfriendly for fleet owners.” However, the news outlet says CMA CGM will soon transfer a second vessel CMA CGM Manaus (built in 2009 and 2,592 teu) from the flag of Malta to India. CMA CGM in its announcement said three more vessels after the CMA CGM Vitoria will be transferred in the coming months to the Indian flag.
India’s Directorate General of Shipping was credited with helping to facilitate the transfer. Officials said CMA CGM is “testing the waters.” They predicted more ships would follow.
The vessel is required to have an Indian crew and be classed by the Indian registry of Shipping (CMA CGM)
CMA CGM highlights it is part of its 34-year presence in India noting that it currently operates 19 weekly maritime services that call in Indian ports. The company also recently opened a crew management office in Mumbai for its fleet. To facilitate the transfer, it set up an Indian subsidiary.
The Economic Times highlights that CMA CGM follows several other large shipping companies. BW LPG is the largest owner/operator of Indian-flagged VLGCs with nine LPG carriers and Mitsui O.S.K. Lines is the nation’s fourth-biggest fleet operator with nine oil, product, and gas carriers, reports the Economic Times.
India’s state-run Shipping Corporation of India is the only operator of Indian-flagged containerships. It has three smaller vessels and a fourth under charter.
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