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. The Trump administration wants to revive shipbuilding in the United States and weaken China’s grip on the sector. The president’s team is preparing an executive order […]
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Trump hails $20 billion investment by shipping firm CMA CGM
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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.
The Trump administration wants to revive shipbuilding in the United States and weaken China’s grip on the sector. The president’s team is preparing an executive order that would impose a levy on ships linked to China when they call at U.S. ports, and wants U.S. allies to do the same.
CMA CGM is the world’s third-largest container shipping line and is part of a vessel-sharing alliance with companies including China’s COSCO. CMA CGM said last week that U.S. port fees on China-built ships would have a big impact on all shipping firms.
Trump said on Thursday he would announce a new program for building ships in the United States next week or the following week, including incentives.
CMA CGM CEO Rodolphe Saade, who joined Trump in the Oval Office, confirmed the $20 billion investment and said it would create 10,000 jobs.
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 looking at supporting the building of container ships and would make an announcement “in the coming weeks”.
The company also plans to raise the number of its vessels flying the U.S. flag to 30 from 10 currently, he added. Trump’s administration wants to increase the number of vessels on the U.S. flag registry.
CMA CGM operates port terminals in New York and Los Angeles. The Marseille-based firm is the biggest cargo carrier for U.S. retail giant Walmart.
(Reporting by Trevor Hunnicutt, Andrea Shalal, Gus Trompiz and Lisa Baertlein; editing by Simon Webb, Susan Heavey, Ingrid Melander and Shri Navaratnam)