CMA CGM, the world’s third largest shipping group, has joined forces with IBM to improve its core information technology systems. The two will set up a new 50-50 joint venture company, known as CMA CGM SYSTeMS.

CMA CGM to tap into IBM’s IT expertise

IBM will contribute its IT expertise in a move aimed at supporting and accelerating CMA CGM’s strong growth in the global shipping industry. The new company, which will be based in Marseilles from January 2007, will work exclusively for the French shipping line. It will employ 286 CMA CGM employees initially, and expects an annual turnover of around €700m over the ten-year term of the initial agreement.

Its goals, it says, are to develop innovative systems that will help CMA CGM capture a bigger share of the market globally; to accelerate implementation and deployment of major IT applications; and to leverage IBM’s business experience to achieve operating excellence.

“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. As the shipping industry becomes more competitive, flexible and responsive IT infrastructures and innovative business models are required to need customer needs,” said Dominique Cerutti, general manager, IBM Southwest Europe.