CNC, the Intra-Asia short sea specialist of the CMA CGM Group, has started domestic shipping operations in the country with the launch of three weekly port calls between, Manila, Cebu and Cagayan de Oro.
Following the government’s expanded regulation permitting foreign shipping lines to venture into domestic shipping, CNC officially launched last Friday, a new legal entity named CMA CGM Philippines Shipping which deployed a Philippines-flagged vessel CNC PILIPINAS, a 1,037 twenty-foot equivalent unit (TEU) vessel.
“We are here to address the demand for the local customers and we are here to serve the market. We are confident we can make this service successful and expand our coverage network in this market in the future” Bo Wegener, CEO of CMA CGM Asia-Pacific told reporters in the press briefings last Friday.
CMA CGM Group has been operating in the Philippines since 2019, for international cargo services in nine ports in the country which include Manila, Subic, Cebu, Cagayan de Oro, Davao, General Santos, Iloilo, Batangas and Zamboanga.
The company is expected to expand its domestic operation in those ports in the future.
“We look at how we continue to grow and to expand to those (9) ports,” Wegener said.
For domestic operations, initially, the company deployed a single vessel and expected to add more in the future to address the anticipated demand. “We do expect more in the future in the market development, as we gradually expand in the market,” he added.
Steven Zhu, CNC CEO, is optimistic about the growth in the Philippine market.
“We are very optimistic on behalf of the Philippine government where there is a young population and we are optimistic about development in domestic trade. The Philippines holds promising potential for maritime growth and innovation given its dynamic domestic and international trade. We are thrilled to be the first foreign company to establish our own entity here, and together with the Philippine government, will strive to bring the best of our global knowledge, technologies, and infrastructure to the domestic market,” Zhu added.
The CNC PILIPINAS started operation on September 22, with weekly port calls rotating between Manila, Cagayan de Oro, Cebu, and back to Manila. The service will support the establishment of new maritime routes, improving connectivity between major ports in the Philippines to the Group’s global network. This in turn reduces transit times, lowers logistics costs, and fosters stronger economic ties and trade flows across the region.
The new CNC domestic service offers opportunities for Filipino seafarers to be exposed to international-standard operations and training. It also enhances the efficiency of cargo handling within the Philippines by utilizing the same containers for both international and domestic shipping, which effectively minimizes the need for additional handling and thus reduces overall transportation costs.
This will be particularly beneficial for the importation of essential goods, such as food and rice, where cost-effectiveness is paramount.
For the government part, Department of Transportation undersecretary for Maritime, Elmer Sarmiento, said in a statement, “We are very excited that CNC has chosen to launch its first domestic service in the Philippines. It is a testament to the Philippines’ commitment to fostering a competitive and dynamic maritime industry that will continue to attract international investments. This initiative will not only enhance our domestic shipping capabilities but also create valuable job opportunities for our seafarers, further strengthening our maritime sector.”
The CNC domestic service will also enhance the efficiency of cargo handling within the Philippines by utilizing the same containers for both international and domestic shipping, which effectively minimizes the need for additional handling and thus reduces overall transportation costs.