WASHINGTON (Reuters) - U.S. President Donald Trump on Thursday said French-based shipping firm CMA CGM would invest $20 billion in the United States to build out shipping logistics and terminals.
Trump Announces CMA CGM's $20 Billion Investment in U.S. Shipping
WASHINGTON (Reuters) - U.S. President Donald Trump on Thursday said French-based shipping firm CMA CGM would invest $20 billion in the United States to build out shipping logistics and terminals.
Trump told reporters he would also announce a new program for building ships in the United States next week or the following week, including incentives.
CMA CGM is the world's third-largest container shipping line.
Its CEO Rodolphe Saade, who joined Trump in the Oval Office, confirmed the $20 billion investment and said it was expected to create 10,000 jobs.
The shipping line industry is faced with uncertainty as the Trump administration's plans for import tariffs and port fees on Chinese-built vessels threaten to shake up maritime trade.
The $20 billion investment over four years would include expansion of container ports and the creation of an air cargo hub in Chicago supported by five new Boeing 777 freighters flown by American pilots, CMA CGM said in a statement.
Saade, a French-Lebanese billionaire who controls CMA CGM with other family members, told Trump at the White House that his group was also looking at supporting building of container ships and would make an announcement "in the coming weeks".
The company further plans to raise its number of U.S.-flagged vessels to 30 from 10 currently, he added.
Lagging U.S. vessel capacity and shipbuilding compared with China has been a major concern for U.S. officials. A White House document seen by Reuters showed the Trump administration plans to levy fees on imports on Chinese-made ships and offer tax credits to resuscitate domestic shipbuilding.
CMA CGM operates port terminals in New York and Los Angeles that it acquired as part of multi-billion investments drawing on record profits made during a post-COVID shipping boom.
The Marseille-based firm is the biggest cargo carrier for U.S. retail giant Walmart.
CMA CGM, which is also part of a vessel-sharing alliance with Asian lines including China's COSCO, had warned last week that U.S. port fees on China-built ships would have a big impact on all shipping firms.
(Reporting by Trevor Hunnicutt, Andrea Shalal, Gus Trompiz and Lisa Baertlein; editing by Susan Heavey, Ingrid Melander)
