by Lloyd's List

30 September 2024 (Lloyd's List) - CNC, a subsidiary of French shipping giant CMA CGM, will become the first 100% foreign-owned container line to operate domestically in the Philippines.

Until 2022, foreign nationals were prohibited from fully owning shipping lines that ran wholly in the Philippines. But recent law changes mean international companies can now operate domestically in the country, as long as they set up a Filipino subsidiary and apply for a franchise with the Maritime Industry Authority (Marina).

CNC said the domestic service will be launched with Philippines-flagged, 2009-built, 1,043 teu CNC Pilipinas (IMO: 9404613) on the Luzon Visayas Mindanao Express route, looping between Manila, Cagayan de Oro and Cebu.

The carrier said the new route will connect the Philippines’ biggest ports and cut transit times in the region. It will use the same containers as international shipping routes, reducing handling times and costs.

But it will also offer the chance for Filipino seafarers to be exposed to “international-standard operations and training”, CNC said.

The Philippines’ Department of Transportation maritime undersecretary Elmer Sarmiento said the launch was “testament to the Philippines’ commitment to fostering a competitive and dynamic maritime industry that will continue to attract international investments’.

“This initiative will not only enhance our domestic shipping capabilities but also create valuable job opportunities for our seafarers, further strengthening our maritime sector.”