winter 13 48

C O NTENT

ED I TO R I A L
CMA CGM
GROUP MAGA ZINE
Editorial and publication director : Tanya Saadé Zeenny Editor: Thierry Conte, Marianne Lacroix Coordination:
Marianne Lacroix Graphic design : CMA CGM STUDIO – David Darmon, Damien Boulanger, Bastien Régis
JACQUES R.
WINTER 2013 Printing and distribution supervision : Christine Nunes Contributors : Isabelle Brechot, François Caulier,
Ludovic Gerard, Lars Kastrup, François Laffitte, Sabine Lemaire, François Loisel, Michael Pochtarev, Coralie
SA A DÉ
Thuillier Editing : Rachel Bennett, Thierry Conte Photo credits : CMA CGM, Thierry Dosogne, Shutterstock, Chairman and CEO
Philip Plisson, Fiji Water, Exmagina, Patrick Landmann, Christian Dresse Number of issues : 22,000 – Quarterly of CMA CGM Group
ISN : 1287-8863

Printed on paper manufactured using a minimum of 60 % recycled fibre and 40 % virgin pulp from
certified sources.

CMA CGM Marseille Head Office

4, quai d'Arenc 13235 Marseille cedex 02 France
Tél : +33 (0)4 88 91 90 00
www.cmacgm.com

04 AROUND THE WORLD Dear CMA CGM Magazine Readers, in countries with significant untapped potential and
will increase our participation in reefer trade;
CMA CGM started 2013 with two important events we will pursue the development of our intermodal
for our Group. In January, we sold a minority share services worldwide to complement service to
in Terminal Link to China Merchants Holding, customers.
a move which will give us the means to strengthen
our positions in this strategic activity and also to The 18.000 skilled professionals who work for
06 CMA CGM FLEET
CMA CGM Marco Polo
Round the world in 77 days
forge strong relationships with an important Asian CMA CGM, whether ashore or at sea, all around the
partner. globe, are all striving to meet our customers’ expecta-
tions, to reach excellence whatever the circumstances
Just a few weeks after, we also satisfactorily finalized and to make sure that we are our customers’ first
our financial restructuring, namely the closing of the choice.
agreement with our Banks pertaining to the restruc-

10 FACE-TO-FACE
turing of our debt, the signing of a binding agreement I hope you will enjoy reading this Magazine which
Bula Fiji water with the French Fonds Stratégique d’Investissement reflects the dynamism of CMA CGM and which
The next best thing to a trip to Fiji and finally the agreement with the Yildirim Group to connects our Group with its customers and partners.
further invest in our own group. All this will result
in a significantly more resilient and flexible financial I am looking forward to our continuous development
structure. and success in 2013 and beyond.

14 FOCUS
From RUSSIA
to the world
After the delivery at the end of 2012, of the largest
container vessel in the world, the 16.020 TEU
CMA CGM MARCO POLO, this year, we will receive
her two sister ships which will be deployed in our FAL
Service and I have full confidence in the ability of our
teams to successfully rise to the challenge. The 18.000 skilled professionals who
work for CMA CGM, whether ashore or at
sea, all around the globe, are all striving
18 THE EXPERTS
Baltic States
3 CMA CGM women in driving seats
CMA CGM will continue to proactively adjust
its strategy and to integrate the ever changing to meet our customers’ expectations.
parameters of World Economy; we will continue
our cost reduction program with renewed and
increased ambitions; we will bolster our positions

20 GROUP LIFE
Be at the heart of shipping with CMA CGM

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 AROUND THE WORLD

AROUND
THE WORLD
CMA CGM AND CHINA MERCHANTS SIGN AN AGREEMENT FOR THE SALE CMA CGM RECOGNISED
OF 49% OF TERMINAL LINK FOR EXCELLENCE
THE CMA CGM CORPORATE THE GROUP WINS A PLACE IN CHINA
IN THE COMPLIANCE
CMA CGM and China Merchants Holdings (International) Company Limited (“CMHI”) have FOUNDATION AWARDS SHIPPING GAZETTE’S TOP 10 LIST OF
AND SAFETY OF ITS FLEET
signed on 25th January 2013, the Share Purchase Agreement regarding the sale of 49% of ITS 2012 PRIZE MOST EFFICIENT PORT
As part of inspections carried out by AND SHIPPING COMPANIES
Terminal Link. Terminal Link, 100% subsidiary of the CMA CGM Group, operates, develops The Arts and Development Association
and invests in a global network of terminals located on the world’s key shipping routes. was awarded last December the 2012 state ports (Port State Control) aimed CMA CGM was named as one of Top 10
CMA CGM Corporate Foundation at verifying vessels’ compliance with most reliable port and shipping companies
This significant transaction is the initial cornerstone of a mutually, highly beneficial strategic international regulations regarding safety
Prize for France. “Offering children by China Shipping Gazette, one of the
partnership between CMA CGM and CMHI in operating and developing container terminals at sea, technical / regulatory compliance
from disadvantaged background an largest transport and logistics media outlets
on a global basis and extending their relationships as business partners while capitalizing on and pollution prevention, the Group-owned
initiation into artistic creation gives in China, during its annual prize giving
favorable global macro trends. CMA CGM fleet was awarded the highest
them the opportunity to change their ceremony at the beginning of January.
CMA CGM has been pioneering container shipping industry growth on the Asia – Europe and ways of looking at their environment score, according to the rating implemented
Mediterranean Basin trading routes. In the continuity of the successful partnerships created and envisage their future differently”, since 2010 by the Paris Memorandum of This prize rewards CMA CGM’s values
with world-class terminal operators through shared control of terminal assets, this important explains Mrs Naïla Saadé, President of Understanding, one of the strictest in the of Courage, Initiative, Imagination and
operation constitutes a unique opportunity to accelerate its development into and strengthen the CMA CGM Corporate Foundation. world. Integrity which have made it possible for
exposure to emerging markets-driven trade flows, and in particular inbound and outbound the company to develop and deliver these
Recognition of this performance by the
China container traffic. The Foundation also awarded the 2012 exceptional performances.
authorities proves the level of excellence
Prize for Lebanon to the Association achieved by the CMA CGM Group’s
CMHI offers port business and services, as well as port-related business in 8 ports across
“Foyer de l’Enfant Libanais” (AFEL).
China (including Tianjing, Qingdao, Shanghai, Ningbo, Zhangzhou, Shenzen, Hong Kong and vessels and teams. It is the direct result
The association has been helping for
Zhanjiang); and has, in recent years, been actively exploring capturing available opportunities of team work over several years between
over 36 years, children with social
overseas as one of the means to effectively add new growth drivers to its existing and the teams at CMA Ships and the SSE
or educational difficulties as well as
sustainably growing ports business. Department and the crews, enabling us to
abused children.
reduce the deficiency rate by around 20%
CMA CGM Chairman and Chief Executive Officer, Mr.Jacques R. Saadé comments:
between 2011 and 2012.
“CMA CGM is very confident about this partnership with CMHI, which represents a unique
opportunity to accelerate the Group development into terminals investments internationally.
Since the beginning of CMA CGM presence in China, 21 years ago, the Group has always
appreciated to work with Chinese Groups and this strong alliance confirms CMA CGM
willingness to pursue. The complementarity of CMA CGM and CMHI offers could allow
both of us to develop international businesses.”

4 5
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Okpo, South Korea, November 12th, 2012. It is an important date for both the CMA CGM Group and
the DSME Shipyard for it is today that the CMA CGM MARCO POLO, the largest container vessel in
the world, is being named and officially joins the CMA CGM fleet. A bottle of Champagne later, with
her 24 crew members on board, she leaves the yard to sail to Ningbo, her first port of call in the FAL 1
schedule, day one of a 77-day voyage which will take her to North Europe and back.
Her crew has actually been on board for the past 4 weeks, testing her at sea, fine tuning the equipment, testing the
110.000 HP engine capabilities… They were kept very busy indeed as in less than 24 hours she will berth in Ningbo to
load her first containers and everything must be shipshape. All crew members went through a thorough training course
and deck officers worked on the Marseilles navigation simulator which faithfully reproduced their future environment.
Her master, Captain Velibor Krpan told us, “I started as a 22 years old cadet on Croatia lineset vessels and joined CMA
CGM in 2002 on board the 350 TEU CMA CGM ORAN. At that time, I never dreamt of one day being the Master of the
largest container vessel in the world. Now, there is no great difference between the 13.800 TEU vessels and this 16.020
TEU vessel in spite of her additional 31 m length. Longer and broader than any other vessel in the fleet, she nevertheless
requires constant attention particularly during port operations, berthing and leaving berth.” Under deck, by the engine,
officers also went through special training to master the enormous Wartsila engine as well as high-voltage electric
installations.
6 7
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CMA CGM FLEET
Ningbo, China, November
The first container has been loaded on board and the CMA CGM MARCO POLO is now fully operative on the FAL 1
service, the Flagship of CMA CGM Services connecting Asia with Europe. The master and the crew know that this
first voyage will be different from all subsequent ones in as much as all along her itinerary, CMA CGM offices and Port
Authorities are eager to celebrate the opportunity of the CMA CGM MARCO POLO first call in their respective ports.
The harbor master offers capt. Krpan a commemorative plaque, as is customary in the merchant marine and back
to business. Less than 24 hours later, she sails off to her next port of call.
Shanghai, November
The largest container ship in the world calls the largest container terminal, Shanghai which has just succeeded in
becoming the #1 container port in the world, taking over arch-rival, Hong Kong. Gorden GUO, CMA CGM China Vice
President notes that “from January to September 2012, more than 250 vessels of the group called at Guangdong Terminal
handling 0.75 M TEU” Shanghai is the seat of CMA CGM China which celebrated its 20th anniversary in 2012.
Xiamen, November
CMA CGM MARCO POLO called at Xiamen XHDT Terminal, one of the three Asian terminals in which TERMINAL LINK,
subsidiary of the CMA CGM Group, has invested, and is strategically located on the China Coast. During her call in
Xiamen, the CMA CGM MARCO POLO will handle more than 1500 containers, a good omen for her forthcoming voyage.
Hong Kong, November
The crew is ready, dressed up in its official uniform to welcome customers onboard. The CMA CGM Regional Office
in Hong Kong which supervises CMA CGM activities in Asia from Japan to Bangladesh, had organized the first formal
event of this inaugural rotation. The vessel is impressive and the crew is proud to guide the visitors in the depths of this
giant. Claude Lebel who heads the Regional office said that “we were very proud to welcome the CMA CGM MARCO
POLO in Hong Kong, a superlative vessel… Our customers were impressed not only by her size, but also by her innovative
design and technology.”
 CM A CGM M A RCO POLO
After Hong Kong, the CMA CGM MARCO POLO called at the ports of Chiwan, the exit gate for the Pearl River Delta
and its huge Industrial area and to Yantian. After the first week of this voyage, Ante Pezelj, the chief engineer, expresses
his first impressions: “It is a great honor to be working on the biggest and most powerful engine ever built. The mechanics
on the Group’s vessels is of a very high level! Electronically controlled to optimize fuel consumption and load power,
it is specially designed for slow-steaming. The reduction in fuel consumption is significant (-3% on average). The engine
is also fitted with a system to optimize the combustion and engine settings at low load. To master all these technologies,
I had to do some specific training courses before embarking: a course on Wartsila electronic engines, a high voltage
course, as the electrical switchboard is 6,600V, and another on Resources Management (managing technical and human
resources).”
The vessel leaves Yantian and the crew can for the first time enjoy 3 days at sea in a row after the Chinese Tour which
is always very tightly scheduled.
Port Kelang, Malaysia, November
Port Kelang is key in CMA CGM strategy in Asia. It is CMA CGM # 1 port in volume, where all South East Asia and Bay
of Bengal cargo is being transshipped. With nearly 2.4 M TEU handled in Port Kelang, CMA CGM represents more than
56 % of the port volumes. 20 main Line services call weekly Port Kelang fed by a network of 12 feeder services. This
port announces the end of the Asian calls and the vessel now leaves for quite a long sailing to join the Mediterranean
Sea via the Suez Canal. 11 days at sea and the vessel will reach the mythic Suez Canal.
Sailing up the Red Sea, the CMA CGM MARCO POLO will soon join her convoy for the crossing of the Suez Canal,
the mandatory causeway to reach the Mediterranean and Europe. Contrary to the Panama Canal, the Suez Canal
offers no particular nautical constraints, no locks, but requires an expensive toll-fee which should approximate
800.000 US$ / passage for the CMA CGM MARCO POLO, an amount which weighs heavily on the bottom line
of the Line which may justify, in particular circumstances, a return voyage by the Cape of Good Hope.
Tangier, December
After Port Said, the CMA CGM MARCO POLO calls at Tangier, more precisely The EUROGATE Tanger-Med Terminal 2,
and another Terminal of which TERMINAL LINK is a shareholder. In Tangier, she will discharge local cargo but also the
DELMAS and CMA CGM boxes loaded in Asia and destined to the West Coast of Africa. The Tangier call illustrates the
synergies within the Group and the optimization of loading opportunities.
8 9
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CMA CGM FLEET
ARE YOU AWARE?
• Longer than 4 football pitches or 5.5 Airbus A380 aircraft
• Bigger than the Empire State Bulding (381m at the roof) or the Eiffel Tower (324m)
• Engine as powerful as 1.100 x 100hp cars
• A 21-knot thrust equivalent to that of jet engines in 10 Airbus A380s (3,000KN)
• Power production for a town of 16.000 inhabitants, equivalent to a dozen wind turbines (14MW)
• 16.020 TEU capacity, or 97km of containers end to end
(72.72m)
(261.5m)
The vessel lefts the Mediterranean sea and sails toward Northern Europe, where the cargo is awaited.
Southampton, December
After Tangier, The CMA CGM MARCO POLO sailed nonstop to Southampton, her first port of call in Europe, offering
record transit times to our British customers. Flying the Red Ensign, she received a particular welcome in her “Home
country”.
Hamburg, December
the giant vessel sails back up the Elbe River to reach the port of Hamburg, the Hanseatic metropolis, our gateway
to 20 ports in Scandinavia, the Baltic and Russia relayed by a network of 10 dedicated feeders. Entering and Leaving
Hamburg, in addition to the welcome flotilla organized by the Port Authorities, she received the “Wilkomm Hôft”
salute a tradition dating back to 1952 whereby every vessel approaching from the river Elbe coming from the estuary
is being ceremoniously saluted with the Hamburg flag being lowered and the national flag of the vessel being hoisted.
The welcomed vessel can in return dip her flag and blow her fog horn. For a large vessel such as the CMA CGM MARCO
POLO, the national anthem of the registration country of the vessel is being played.
Zeebrugge, December
Leaving Hamburg, she continued her itinerary, calling Bremerhaven, Rotterdam and Zeebrugge where a formal Christening
ceremony took place. Mrs. Naila Saadé, the vessel’s godmother, broke the traditional bottle of champagne and wished
all the best to the vessel and her crew.
Le Havre, December
Her last port of call in Europe, berthing at Terminal de France, another Terminal in the portfolio of TERMINAL LINK, where
she completed her loading to Asia. The vessel then left Northern Europe to sail back to the Mediterranean waters and
called Malta, Khor Fakkan and Jebel Ali, before calling again in Port Kelang on January 17th. Her call coincided with
the discharge of the 50 Millionth TEU handled at Westports Terminal since its opening in 1996, the 52 th anniversary
of Port Kelang Authority and the breaking of the 10 M TEU mark in 2012.
On January 24th, the vessel is back to Ningbo to start her second voyage...

“The next best thing to a trip to Fiji”
If you drink bottled water you have probably tasted
FIJI® Water, a natural artesian bottled water
popular with A-list celebrities, world renowned
chefs and consumers worldwide. And yes! FIJI
Water really does come from Fiji, a tropical
archipelago of over 300 islands located in a remote
corner of the South Pacific. On Viti Levu, one of
Fiji’s largest islands, is the remote Yaqara Valley.
Here, on the edge of a pristine rainforest, is the
underground source, a deep artesian aquifer which
hosts the origins of FIJI Water, and the location
of their ISO 14001-certified bottling plant.
Welcome to the world of FIJI Water.
10
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FACE TO FACE
The production process spreads across two factory floors, blowing, filling, capping, labelling,
and shrink-wrapping 24 hours a day, five days a week. The state-of-the-art bottling facility
was designed to protect the water at every step of the production process, and as part
of that strict commitment to quality, no human hands are allowed to touch it. In fact,
the facility was built directly on top of the FIJI Water aquifer, where a completely sealed
delivery system draws the water up from the protected chamber and places it directly into
FIJI Water’s iconic square bottles. From here, the bottles are shipped to the four corners
of the globe, reaching over 40 countries worldwide stretching across Asia, Northern & Latin
America, Europe, Africa and the Middle East and Australasia.
FIJI Water was acquired by Roll Global, a private holding company owned by Stewart
and Lynda Rae Resnick in 2004. Roll also own Paramount Citrus and Paramount Farms,
the world's largest growers and processors of citrus, almonds and pistachios. Appreciated
for its unparalleled taste, FIJI Water is the United States’ leading premium imported water,
outselling the next premium imported bottled water competitor by more than 1.5 times
in retail sales dollars and is purchased by 1.1 million more households than the nearest
premium water competitor.
A meteorological feature known as the South Pacific Convergence Zone means Fiji receives
some 3,000 millimeters of rain a year. The jungle-clad mountains of the interior are often
wrapped in heavy cloud and Fiji's isolation ensures rainfall is untainted. Scientists have
even dated the water to more than 450 years old. The composition of Fiji’s volcanic rock
is different from that found in other locations around the world because it is rich in colloidal
silica and it is this that contributes to FIJI Water’s soft, smooth “mouthfeel”. It is the unique
mineral profile that it picks up as the water filters down through the island’s volcanic rock that
makes the water the choice among discerning consumers and top chefs. Widely available
at fine restaurants and hotels, all major retail channels including grocery and convenience,
and through a convenient delivery service.
11
 BULA FIJI® WATER
FIJI Water is also known for its iconic square bottle available
in 330ml, 500ml, 1 litre and 1.5 litre bottles. The standardised
shape makes Fiji Water more efficient to transport and the
high-grade PET (polyethylene terephthalate) plastic used is
fully recyclable. In 2010 the company even redesigned its
packaging to use 10% less PET (17% less for its 500ml and
330ml bottles) in order to reduce the weight and promote
sustainability.
Committed to preserving the purity and biological wealth
of this virgin region, FIJI Water has partnered with
Conservation International, a leading environmental
organization, and implemented a large-scale rain forest
conservation project in Fiji. The company is also dedicated
to providing access to clean water, health care, and
education for the people of Fiji as well as preservation
of the 50,000-acre Sovi basin community and environments.
Fiji’s largest remaining unprotected rain forest.
To manage its environmental impact, FIJI Water monitors
its products’ lifecycle emissions from the manufacture
and transportation of raw materials to product consumption
and implements and promotes sustainable practices
throughout its operations and supply chain. In terms of
shipping, FIJI promotes their square bottle design as
allowing them to use 10% less trucks when transporting
their bottles. Also, their decision to ship their products to
New York via the Panama Canal instead of shipping to L.A.
and trucking across the United States means 55% less
greenhouse gas emissions.
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FACE TO FACE
INTERVIEW
FIJI Water’s strict commitment to environmental stewardship
is on par with CMA CGMs well known leadership and commitment
to sustainable transport and development. Each offers parallel
proactive and innovative products which are compatible in quality
and high performance. Both companies have enjoyed a working
relationship since 2008. We interview FIJI Water’s Ariel Winton,
Strategic Sourcing Manager based in Sydney, Australia about this
partnership. Ariel is responsible for setting procurement strategies,
packaging management and ocean transport.
What are your main challenges shipping a product produced so remotely to global
destinations?
With long lead times of 3 months or more there is a huge logistics challenge. Flexible planning
is key as forecasts can change at an instant. The use of two distribution models is used to
maximise supply channels and warehousing facilities. First, a hub model uses warehouses
throughout the globe, based in UK, Canada, Australia and East and West Coast America
contracted through 3PL’s. A second model allows for direct selling to the distributor in markets
such as Asia and the Middle East.
Another challenge is shipping a product from the hot humid climate of Fiji across the globe
to more temperate zones causes a problem with temperature fluctuations. To minimise this effect
we use an insulator known as a “thermal blanket” commonly used in the wine industry. These are
designed to deliver a sound thermal environment for freight transportation. In addition to trapping
air, insulating blankets work by reflecting radiant heat and preventing air from escaping. A single
blanket prevents product inside a shipping container from absorbing the sun’s rays in the summer
and prevents warm air from escaping a shipping container during the cold winter months.
Being so far away also means increasing carbon emissions. How do you manage that?
FIJI Water primarily transports via water. We are optimizing our logistics to keep the product
on container ships for more of the distance to market. Of the major transport modes - ocean
freight, air freight, truck, and rail - ocean freight is the most fuel-efficient and produces the fewest
emissions per ton carried and distance travelled. Transport mode decisions have a big impact on
emissions. For example sending FIJI Water to New York City, while the route through the Panama
Canal takes about three times as long to get to New York City, it results in 55% fewer greenhouse
gas emissions.
Beyond carbon emissions, FIJI Water has been committed to doing business in responsible
ways since its early days and ensuring that both the environment and society are better off as a
result of its actions. We strive to operate as a truly sustainable business and look continuously
for opportunities to do a little better by our planet and our communities. That means that we are
making investments in major environmental projects, changing the lives of tens of thousands of
people through our philanthropic work and contributions, and advancing the growth and economic
opportunities of the developing nation of Fiji by enabling its much needed participation in our
global economy.
Are there any specific requirements for transporting premium water?
The square bottle shape allows for the maximum utilisation of container space. Using slip sheets
instead of wooden pallets allows for 12% – 15% more products in material handling containers.
These sheets also significantly reduce material handling costs, decrease loading/unloading
time by up to 60% and weighs 1/20 as much as wooden pallets, thus reducing shipping costs.
As well as being reusable, recyclable and cost-effective.
As the largest containerised exporter in Fiji, FIJI Water has strict operational and quality
requirements. It is very important to us that our transport partners understand the supply chain
and the planning process. Something that we really appreciate about CMA CGM is the consistent
demonstration of an understanding of the brand’s logistical requirements and supply chain and
of course ensures its proper execution.
13

As the largest country in the world with a territory of over 17 million square kilometers, more than
twice as large as the United States and sharing borders with 14 countries both in Europe and Asia,
Russia is a country of superlatives. With considerable reserves of hydrocarbons and important raw
material resources (gold, coal, nickel...), Russia holds incredible wealth. G20 presidency for 2013,
entry into the WTO, organization of the Olympic Games in 2014 in Sochi… Russia establishes itself as
a major player on the international scene. Overview of this vast country for whom many challenges
still lie ahead.
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W I N T ER 2 013
Russia stretches from Kaliningrad, the enclave within the
EU borders, to the Sea of Japan. Its land mass touches
twenty-two bodies of water and holds twelve seas within
its borders. “It is this diversity which makes our business
so interesting but also incredibly complex with goods
often having to travel up to 8,000 km from the port along
the Trans-Siberian Rail, the world’s longest rail link,
to reach their final destination“, explains Michael Pochtarev,
CMA CGM Russia Managing Director. In terms
of economy, the Russia of today has its foundations built
on a strong market economy, an economy of enormous
ECONOMIC GROWTH AND TRADE FACILITATION
Overall, the economy expanded 4.5% in the first half of
2012 and performed well relative to other regions. GDP
will continue to grow by 2.3% in the fourth quarter of 2012
and for 2013 growth is forecast at 3.6%. Year-on-year
growth currently stands at 0.4% and the World Bank has
acknowledged progress made by Russian Government
stating that “Russia improved business regulatory climate
in 2011-2012 “.
Furthermore after 18 years of negotiations, Russia joined
the World Trade Organisation (WTO) as its 156th member
on 22 August 2012. This accession is a major step for
Russia's further integration into the world economy and
will facilitate investment and trade, help to accelerate the
modernisation of the Russian economy and offer plenty
of business opportunities for both Russian and its trading
partners. It also offers tremendous potential for growth
in the container market. As a consequence of the WTO
accession, Russia will lower its import duties, limit its
export duties, grant greater market access for services
providers and facilitate rules and procedures in many
areas affecting bilateral economic relations. Of particular
importance will be regulations on customs procedures, the
use of health and sanitary measures, technical standards
and the protection of intellectual property. In all, Russia
concluded 57 bilateral agreements on market access for
goods. According to Michael Pochtarev, “Russia's WTO
membership will give a major boost to further development
of the economic relationship worldwide and also prevent
Russia from adopting unilateral tariff hikes as has been the
case in the past“.
FOCUS
diversity and tremendous vitality. Russia is in the top ten
of the world’s biggest economies, with a wealth of natural
resources and strong growth. It is backed by a trade
surplus, mainly due to oil exports, which makes consumer
purchasing power and business investments one of the
highest in the world. While growth is stalling in Europe and
slowing in other emerging economies Russia’s economy has
performed well and as a result, in the last three quarters,
year-on-year growth exceeded those of other emerging
economies for the first time since the global financial crisis
started.
To support the economic expansion of Russia, the country
is facing an important challenge: the modernization of its
transport infrastructures. With a population of over 150
million, 90% live on the European side representing only
10% of its territory whilst the main production sites are
scattered on the Asian side off the Ural Mountains, hence
the need to have all the logistics in place ready to move
equipment. Since the Soviet Union era, railroads have been
the dominant mode of transport with over 90,000 km of
track totalling 12% of the world’s railways. In many parts
rail transportation is the only way for a container to reach
its destination. Whereas the 1,145,000 km road network,
is concentrated in the European part of Russia and
accounts for only 3% of the world’s roads. So providing
intermodal solutions is a challenging business. One
cannot write about transport in Russia without mentioning
the Trans-Siberian which is the longest railway line in the
world. The main route of the Trans-Siberian originates in
Moscow at Yaroslavsky Vokzal, runs through Yaroslavl,
Chelyabinsk, Omsk, Novosibirsk, Irkutsk, Ulan-Ude, Chita
and Khabarovsk to Vladivostok via southern Siberia, 9289
Km long, and was built from 1891 to 1916. CMA CGM
uses the Tran-Siberian for the on-carriage of its containers,
essentially those downloaded in the Russian Far East ports
of Vostochnyy and Vladivostok.
The Russian market, as a consequence of its sheer size,
benefits from three access gates with the additional feature
of one of the Trans-Siberian.
15
 FROM RUSSIA TO THE WORLD
FOCUS

THE 3 GATEWAYS
Baltic Sea - The Main Entry To Russia
St Petersburg is the most important port on the Baltic
Sea thanks to its proximity to EU countries and their
major ports. The Group started a regular service to the
port of St Petersburg in 1997 and opened an office in
2004. Our fixed-day weekly services serve the port of
St Petersburg five times a week from North Europe
(Antwerp, Rotterdam, Hamburg, Dunkirk, Zeebrugge),
offering connections to the Group’s global network of
lines; the Baltic line also offers services to destinations
in the Russian enclave of Kaliningrad and the Baltic
countries (Lithuania-Latvia-Estonia) and Finland which
also serve as entry gates to the Russian market. The
Group recently commenced weekly services to Ust
Luga and Kronstadt.
Novorossiysk - On The Shores Of The Black Sea
Novorossiysk is the main and strategic gateway to the
South of Russia and an important alternative to the
port of St Petersburg, servicing Central and Southern
INDICATORS 2011 ESTIMATES
regions of Russia. In 2008, CMA CGM was the first
carrier to establish a direct line with the Far East using
Popultation 142,517,670 (July 2012 est.)
the BOSPHORUS EXPRESS (BEX) service, showing its
keen interest in developing services on this promising
market. In October we launched a new service, the Surface area 17,098,242 sq km
CITRUS EXPRESS, connecting Novorossiysk to
Turkey and Egypt offering second to none transit time GDP (purchasing power parity) $2.383 trillion
for perishable goods, in addition to the current multi-
port Black Sea feeder with Malta being the main hub GDP - real growth rate 4.3%
connecting Novorossiysk with the rest of the world.
We also serve the Azov Sea Russian port of Taganrog GDP - per capita (PPP) $16.700
through Constanta via a connection with our BEX
service. Export $520.9 billion

Export goods Petroleum and petroleum products, natural gas,

Nakhodka/Vladivostok/Vostochnyy - The Russian Far East
metals, wood and wood products, chemicals,
Vostochnyy is in the Russian Far East at the start of the Trans-Siberian Railway which allows smooth delivery of and a wide variety of civilian and military
cargo throughout Russia and to neighbouring countries. In September 2011, CMA CGM launched its weekly RUFEX manufactures.
(Russian Far East express) service with a rotation that includes the main Chinese and Korean ports and the Sea of
Japan. Given the importance of this key region and its potential to grow, CMA CGM has made a strategic decision Main export partners Netherlands 12.3%, China 6.5%, Italy 5.6%,
to upgrade the Russian Far East coverage in partnership with FESCO, one of the biggest Russian transportation Germany 4.6%, Poland 4.3%.
groups. As from January 2013, CMA CGM operates five different services directly connecting Vladivostok and
Vostochny with all main ports in China and Korea and the rest of the world through a number of transshipment hubs. Imports
$322.5 billion

Import goods Machinery, vehicles, pharmaceutical products,

plastic, semi-finished metal products,
meat, fruits and nuts, optical and medical
THE NORTHERN ROUTE – THE NEXT HIGHWAY OF THE SEAS ? instruments, iron, steel.

Main import partners China 15.6%, Germany 10%,

The geographical position of Russia is ideal between
Europe and Asia and for several years now, with the
global warming and the melting of the pole ice, interest
has been raising about a new maritime route: the
North-East route, linking Europe to Asia via the North
of Russia. If this route remains very little used for the
moment compared to the Suez Canal (46 vessels
in 2012 compared to 50 vessel per day for the Suez
Canal), the benefits are quite huge as it shortens the
transit by 10.000 km. Opened to the international
navigation since 2010, this option is carefully studied
by many maritime companies but remains very
constraining: the vessels must be Ice-Class and
escorted by one of the Russian ice-breaker vessels
which are equipped with an onboard hospital and all the
equipment to control oil slicks. Russia believes in this
project and decided to heavily invest with brand new
nuclear ice-breaker vessels and attractive prices. But
the IMO might change it all with their “Polar Code” that
could ban the use of heavy fuel as it is already the case
in the Antarctic. Once the main questions are solved,
the North-East route might become the new maritime
revolution.
Ukraine 6.6%, Italy 4.3%.
CMA CGM Russia has 13 offices scattered across this vast Russian territory. At its center
is the CMA CGM Head Office situated in Moscow. Since our first call to St Petersburg in 1997,
the Group has walked a long and successful road. The CMA CGM Russia agency was established
in 2004 and within three years became a 100% owned subsidiary of CMA CGM and now has over
220 staff members. Today the Group offers its customers services trough all the main gateways to
Russia serving eight ports in total with the most comprehensive territorial and maritime coverage,
and unrivalled transportation solutions inland. As a result of all these factors CMA CGM is one of
the leading shipping companies ranking 3rd on the Russian market .

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 THE EXPERTS

Ladies, can you give us a brief introduction to the economics of your respective countries ?
“As a member of the European Union, “In 1990, Lithuania was the first to break “Latvia successfully completed its 3-year
Estonia is considered a high-income away from the Soviet Union and become IMF and EU-supported program this year
economy by the World Bank. The an independent capitalist economy. which places the nation within reach of
country is ranked 16th in the 2012 Index qualifying for euro adoption. Its Euro
of Economic Freedom, with the freest Lithuania soon implemented liberal pegged economy grew by 5.5% in 2011
underpinned by export growth and a
economy in Eastern Europe and the former reforms and became one of the fastest
recovery in domestic demand.
Soviet Union. growing countries in the world over the
last decade”. That growth momentum has continued
The three Baltic States, Estonia, Latvia and Lithuania were in 2011 the fastest growing Because of its rapid growth, Estonia into 2012 despite deteriorating external
economies in the European Union with, for example, Estonia at 7.6% growth giving it the has often been described as a Baltic conditions, and the economy is expected
highest growth rate within the EU... Exchanges have have taken a new dimension over Tiger. Beginning 1 January 2011, Estonia to expand by 3.5 percent this year with
the last decade backed by a free trade agreement between Estonia, Latvia and Lithuania adopted the euro and became the 17th strong growth forecasts of 4 percent for
known as the Baltic Free Trade Area (BAFTA) which existed between 1994 and 2004 as well Eurozone member state”. 2013”.
as by the strong growth of their neighbor, Russia. Today the three nations are members
of the European Union and became World Trade Organisation (WTO) members in 1999
(Estonia/Latvia) and in 2001 (Lithuania).
Can you tell us more on CMA CGM’s offer to its local customers, and beyond?
The three Baltic States are therefore strategically important for CMA CGM the more so as they are also a gateway to the
“CMA CGM offers a weekly service “Lithuania, the largest of the three Baltic “CMA CGM offers a regular dedicated
huge Russian market( Ref article on Russia). The CMA CGM Baltic States offices are managed by three women, Julia
to / from the deep-sea port of Muuga, near countries, has become a well-developed feeder service between Riga and Hamburg
Bichulova in Estonia, Larisa Maskova in Latvia, Irina Michailova in Lithuania, three “experts” to whom we asked to share
Tallinn. Muuga Harbour is one of the few transport corridor between the East and where it connects with all the main
their vision of the trade and its opportunities.
ice-free ports in the Baltic Sea and among the West. worldwide CMA CGM ocean services.
the deepest (up to 18 m).
CMA CGM offers a weekly service to With its central geographic position Riga is
The cargo volume handled accounts Klaipeda, the northern-most and ice-free the largest city of the Baltic States and an
for around 90% of the transit cargo seaport on the eastern shore of the Baltic important hanseatic seaport. The Freeport
volume passing through Estonia. This Sea. Klaipeda handles 30 million tons has seen containerized cargo increase by
multifunctional container terminal has a of cargo every year, and accepts large- 17% (445,000 tons) in the first 10 months
capacity of 450,000 TEU per annum. tonnage Panamax-type vessels. Klaipeda of 2012 compared to the same period last
is the best transshipment port for Belarus year.
In addition to being the main entry point with on carriage options by road and rail
for Estonia trade, Tallinn port is considered transport. The main traffic handled is destined
to be one of the main gateways for transit for Russia, Belarus and Central Asian
cargo to Russia thanks to its free zone In fact in 2003 Lithuanian, Ukrainian and countries. Due to its geographical location,
facility and its highly developed and well- Belarusian Railways signed an agreement transit services are highly-developed. As
organized road and rail infrastructure”. to enhance the competitiveness of the infrastructural hub of Latvia several
JULIA BICHULOVA is the General IRINA MICHAILOVA is the General LARISA MASKOVA is the General rail delivery-project based on VIKING national roads begin in Riga including
Manager of CMA CGM Estonia which Manager of CMA CGM Lietuva Manager of CMA CGM Latvia
combined train. The train carries 20 and the European route E22 and Via Baltica
was established in 2006 with its Head (Lithuania), fully owned by CMA CGM which has been a fully owned
40-foot containers as well as semitrailers and corridors are backed by a wide
Office in Tallinn and is seconded by with its Head Office in The Port city of CMA CGM office since 2011 even
and trailer-trains (contrailers) from Iljichovsk warehousing network”.
a team of ten young professionals Klaipeda and a second office in the though CMA CGM has been active
– Koliadichi (Minsk) – port of Klaipeda”.
dedicated to providing containerized Capital city of Vilnius. She is seconded in Latvia since the early 90’s. She
transport solutions to their export and by 16 dedicated and highly qualified manages a dynamic 14 strong team
import customers over Scandinavia, professionals. of professionals all striving to meet
Baltic and the CIS countries. CMA CGM customers.

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BE AT
THE HEART
OF SHIPPING
WITH CMA CGM
“But what do you exactly do at CMA CGM?” No doubt we have heard this question asked many times
and answering it is more difficult that one thinks, one reason being that there is so much to say about
what we do. Another reason is that maritime transport does not have a great visibility within the general
public. Yes, we do carry our customers’ cargo in containers loaded on a containership from one port
to another port, but we are far more than this restrictive picture and CMA CGM spectrum of activities
has grown and diversified with the Company.
Container shipping has been instrumental in the
development of globalization and CMA CGM is one of
its leading drivers. The filling ratio on our vessels is a
sure indicator of global trade health and it is one of our
responsibilities to keep world trade going! Shipping is
essentially a “Service Industry” though to provide these
services, vessels need to be deployed and each of them
is costing the price of a small or medium factory.
CMA CGM is a company of opportunities for those
who join it. Being a Global Company, it reaches far
beyond the Marseilles Head Office and its 650 strong
office network spread over 160 countries needs
to be part of the broad picture; hence, some of the jobs
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W I N T ER 2 013
GROUP LIFE
The “Line”, the backbone of CMA CGM
Initially, the CMA CGM organization was focused on the leviathans costing more than 150 M US$ and carrying
”Line”, the back bone of the company, and each line was cargo of which value also exceeds 150 M US$, a totally
a “Business Unit” responsible for its bottom line and as different ball game from what prevailed be it 10 years
such regrouped all the necessary functions to perform ago. Some seafarers, mostly officers, still opt after some
autonomously, with its commercial, operations and support years at sea to come ashore where their skills are much
functions. Lines are deciding their pricing policy, they are appreciated, to join the Lines’ operation Department.
either directly or through the network selling their services
to customers whom they have previously identified, they
which are available in the Marseilles Head Office, may also
run their Customer Service, they supervise documentation CMA CGM is also a container operator and as such
be available in one or other countries where CMA CGM has
and invoicing processes. Lines are also responsible for must buy, lease, position, maintain and repair a fleet
one or more offices or agencies as well as more specific
the operations of the vessels they have been entrusted of containers of all type and need the professionals to
jobs attached to the agency processes.
with and imbedded controllers kept the Line Management handle these tasks. Their primary task is to make sure
abreast of results. that the right type of containers are made available to the
Life at CMA CGM has significantly changed in its 35
customers where and when they have been instructed
year existence and the scope of opportunities has grown
To run the line, CMA CGM is a vessel operator but also a and ensure that these containers meet the highest quality
and diversified tremendously together with the growth
Ship-owner and as such employs engineers to conceive, standards. Containers have to move fast and most trades
of the company which very early promoted the “Spirit of
build and maintain the new vessels, crew specialists to being imbalanced, empties need to be repositioned.
imagination”. From Line operator to global shipping player,
man the vessels and manage the crews, etc. As a vessel Repositioning requires optimum coordination with lines
that’s what it’s all about.
operator, it needs to charter in vessels that best meet the integrating the fact that some times their respective
Lines’ requirements, a task which is the responsibility of priorities might diverge.
the Chartering Department. Bunkers which provide the
vessels energy exceed 50% of vessels running cost,
hence the importance of managing bunker consumption
on board as well as skills in bunker procurement. As a
Ship-Owner, CMA CGM employs Seafarers which are
obviously manning and running the vessels but their
job has also significantly evolved. They need to master
new technologies, to integrate a growing number of
environmental constraints and a growing number of
economical factors linked amongst others to the fuel
consumption of the vessel. A Master today can have the
responsibility of 186,500 Dwt, 395m long and 54m broad
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BE AT THE HEA RT OF SHIPPING
Globalization and new activities
Today, whilst the Lines remain the “raison d’être” of the
company, the business has grown and incorporate new
fields of activity, Intermodal, Supply Chain Management,
Container Terminal management, most of these activities
being managed through autonomous subsidiaries. CMA
CGM is one of the major global shipping operators to have
control over the whole logistics chain offering customers
a door-to-door service that integrates inland waterway
transport and railways, as well as port handling facilities
and logistics on land. Working in both pre and post
transportation such as barge, rail, truck as well as in sea
freight we deal daily with international sellers and shippers
based in perhaps Brazil or China throughout the logistics
chain right up to the buyer or consignee who could be as
far away as India or New Zealand.
Services which were considered as side business are
now strategic priorities such as Reefers and Project
and Special Cargo. The handling of both temperature-
controlled Cargo into Reefer containers and the handling
of Special cargo of which dimensions do not allow carriage
into closed containers, require special skills and dedicated
organizations have been put in place within Head Office
with correspondents worldwide.
Being global, CMA CGM has developed strong relationship
with the key shippers, major Corporate Brands, who,
most of them are also global and span the world with their
products. To manage these customers, a strong customer’s
satisfaction culture has been deeply ingrained in the group.
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W I N T ER 2 013
CMA CGM has set up a transversal Global Accounts
department catering for these global customers, managing
Tenders, Customer Service and Customer daily relationship
to secure their cargo on board CMA CGM vessels. This
department also runs the Marketing Department which is
analyzing market data, providing Senior Management and
Lines with decision making information; it also provides
sales enhancement tools to the sales Force and the
Network. To differentiate itself from the rest of the pack
and to remain its customers’ first choice, CMA CGM has
had to adopt an innovative approach to pricing, introducing
objective parameters in the negotiation process with our
customers aiming at securing long term partnership, a
mutual winning proposal. This in turn requires from the
sales force and the line pricing teams new skills and new
discipline. CMA CGM is also developing state-of-the-art
operation systems including an highly productive website
dedicated to eCommerce.
Growing beyond the borders of CMA CGM
Likewise, growth has also be external, CMA CGM has
acquired other Carriers, each of them being a specialist in
its own field such as DELMAS, ANL, MacAndrews, USL,
COMANAV, Cheng Lie Navigation and all of them, in a way
duplicate in their respective overseas head Office some of
the functions performed by CMA CGM.
Beyond the Lines and their attached hardware, vessels
and containers, CMA CGM provides for all the classical
supporting fields, Human Resources, Finance and
Administration, Legal, Corporate Communication,
Information Systems, Agency, etc.
Being Global, CMA CGM and its subsidiaries rely on a
worldwide structure, its 650 strong office Network covering
160 countries, employing altogether more than 18.000
Staff. Initially, a third party agency network, it has evolved
wherever it was economically or legally feasible into
a fully owned Office Network, local staff becoming
CMA CGM staff which naturally gave a new dimension
to the Human Resources department who has had to
developed a comprehensive in-house multi lingual training
program to enhance the skills of all our employees taking
into account their cultural diversity.
Evolution is the essence in career’s management but
opportunities to move upwards are not always available
when one feels like moving. The great thing about CMA
CGM is its diversity and its size, combining global business
GROUP LIFE
culture with a sustainable commitment to local business
knowledge. CMA CGM is committed to staff internal
mobility, inspired by the complexity of our business. To
continue growing and prospering, CMA CGM must see
to it that the people it employs reflects this diversity.
Geographical diversity, there are always opportunities to
increase one’s experience abroad either in an overseas
office or within a subsidiary. Functional diversity also
with plenty of opportunities to give a new direction to a
career, learn new skills through positive horizontal mobility.
Actually, Interpersonal Management is one of the most
important skill required in our business.
Hopefully, the above lines will make it easier to all of us
to better answer the opening question. To increase our
industry visibility and to better promote the CMA CGM
Brand, one should always link Ocean Transport with things
we value. The good things in our lives are brought to us by
ships. These ships give us the ability to live and enjoy life to
the full! These ships obviously are CMA CGM Group ships!
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