The CMA CGM Group, the world's third-largest ocean shipping company, and IBM on Monday announced an information technology joint venture to manage the French carrier's growth.
The new company, CMA CGM SYSTeMS, will be based in Marseille as of January, and employ 286 CMA CGM employees. The new company, which will work exclusively for CMA CGM, is expected to realize turnover of approximately 700 million euros ($890 million) over the 10-year term of the agreement.
The liner said the venture will design innovative solutions enabling it to capture a bigger share of the market; accelerate implementation and deployment of major IT applications, and leverage IBM's business expertise to optimize operations.
"Our common goal is to improve both efficiency and service performance for our current and future customers," said Farid T. Salem, CEO of the CMA CGM Group. "Ongoing search for performance and innovation is really at the core of this strategic decision"
"This agreement will lead us to combine our business consulting and IT expertise to create new, innovative methods for CMA CGM to meet business objectives, service customers, and drive bottom-line growth," said Dominique Cerutti, general manager, IBM Southwest Europe. "As the shipping industry becomes more competitive, flexible, responsive IT infrastructures and innovative business models are required to meet customer needs."
The French company has 10,000 employees and operates a fleet of 279 ships serving more than 350 ports. In 2005 it transported more than 5 million TEUs and had revenue of $7.6 billion.