Releasing its 2018 financial results, CMA CGM notes that in 2019, despite persisting geopolitical tensions, trade perspectives are positive. In addition, the company will also try to improve profitability. For this reason, it is launching a new USD 1.2 billion cost reduction plan.
For 2019, CMA CGM announced that it will implement a global plan to enhance its operational performance with a cost savings objective of USD 1.2 billion. This will be achieved by the optimization of lines and rands, and by further streamlining its processes.
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What is more, the company started a major strategic partnership with CEVA Logistics, which Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM, considers an important decision for the overall strategy of the CMA CGM Group.
Namely, CMA CGM acquired an equity stake of 24.99%, which was brought to 33% in October 2018. CMA CGM also entered into derivative contracts between October 2018 and January 2019, enabling it to increase its economic exposure to more than 50% of CEVA’s capital.
Furthermore, in early 2019, CMA CGM began a friendly Public Tender Offer on CEVA to develop a logistics offer complementary to the transport offer, enabling the company to provide its customers end-to-end solutions.
The CEVA – CMA CGM new strategic plan includes cost reduction for CMA CGM and CEVA by using pooled operations and cost synergies, such as cooperation for purchases and the implementation of shared services.
