The CMA CGM Group is expanding its air cargo capacity in the U.S. with the announcement of its plans to open an air cargo hub in Chicago for its cargo airline division.
The US$1 billion for the new hub is part of the CMA CGM Group's US$20 billion investment plan on U.S. shipping, port, and logistics over the next four years.
"As part of this investment, CMA CGM Group will expand American air cargo capacity," the world's third-largest container shipping line, said.
"Anchored by a new hub in Chicago, the Group will deploy five new Boeing 777 freighters, operated by American pilots, to strengthen U.S. trade and connectivity and ensure the reliable transport of critical and time-sensitive goods."
CMA CGM Air Cargo operates a fleet of four aircraft, consisting of three Boeing 777 freighters and one Airbus freighter. Two of the 777s, along with the Airbus, are utilized in the Europe-Asia trade route. Additionally, the company initiated trans-Pacific services last fall using one Boeing 777, which is operated by Atlas Air.
CMA CGM Group noted its 35-year presence in the U.S., operating in 40 states. It said that CMA CGM transports over 5 million shipping containers to and from the country each year.
"I am proud to build on our long-standing relationship with the United States through this commitment of $20 billion to the country’s maritime future and logistics capabilities. Over the next four years, we will significantly grow our U.S.-flagged fleet, expand the capacity of key container ports on both coasts, develop state-of-the-art warehousing across the country, and establish a significant air cargo hub in Chicago," said Rodolphe Saadé, chairman and CEO of CMA CGM Group.
As part of the investment, CMA CGM said it would develop port infrastructure in key locations across the U.S., including New York, Los Angeles, Dutch Harbor, Houston, and Miami, to contribute to efficient operations and supply chains, accelerated digitization, and improved connectivity, and increased safety for port workers and cargo.
It will also open state-of-the-art warehousing and automotive logistics platforms across the country.
To remain at the forefront of innovation, CMA CGM will also open a new logistics R&D hub in Boston, focusing on advanced robotics and automation solutions.