Jacques Saadé

Jacques Saadé
Born 1937
Beyrouth, Lebanon
Nationality French, Lebanese
Alma mater London School of Economics
Occupation CEO of CMA CGM
Known for President of the Franco-Lebanese Chamber of Commerce
Notable work Officer of France’s Ordre National de la Légion d'honneur

Jacques R. Saadé (Arabic: جاك سعادة‎‎) (born 1937) is a French-Lebanese born businessman, living in Marseille, France. He is the founder, group chairman, and chief executive officer of the CMA CGM Group, a French container transportation and shipping company, third largest in the world.[1][2]

Biography

Jacques R. Saadé was born in 1937 in Beirut, Lebanon. He graduated from the London School of Economics in 1957 and took over the family business after the death of his father. His father had “established plants in Syria, we were producing tobacco, cotton seed, olive oil, ice, etc.[3]”.

Based on his fathers advice, Saadé did an internship in New York to learn about shipping after his graduation. This is where he discovered the container (capacity: one cubic metre) used by the American army during the Vietnam war. In a Les Echos article, Saadé said: “I thought the container was an excellent idea for transporting goods as it was closed, easy and quick.[3]”

The 1978 War in Lebanon prompted him to move to Marseille. This is where he set up Compagnie maritime d’affrètement (CMA) with his brother Johnny on September 13 the same year. The company initially operated services between Marseille, Beirut and Syria. Saadé said: “I wanted the sea. Marseille is beautiful and the sea looks a little like that in Beirut.”[3]

In the beginning there was family tension between Jacques Saadé and his brother Johnny. After difficult family disputes, Jacques Saadé took the helm alone.[4]

In 1983, Saadé made the decision to cross the Suez Canal and extended the company lines to Mina-Qaboos in the Gulf of Oman. Jacques Saadé was trying to prepare the company for the "Far East" to win a competitive advantage over other carriers.

In 1986, after noticing that volumes from Asia were constantly on the rise, he decided to extend CMA's shipping lines to Asia (including Japan). He later traveled to China himself in 1992 to open the first regional office in Shanghai, entrusting the management of the company's development in Asia to John Wang, a professor at the Shanghai Maritime University.  

In 1996 Jacques Saadé acquired CGM (Compagnie Générale Maritime) following privatization.

Two years later in 1998 came acquisition by CMA of the National Australian Line ANL and in the following year 1999 merger of CMA and CGM and creation of the CMA CGM Group.[5]

In 2006, Saadé concludes the acquisition of DELMAS and the CMA CGM Group becomes the third largest shipping Group in the world. Three additional acquisitions were made in 2007: Chinese Company Cheng Lie Navigation Ltd, U.S. Lines, and COMANAV.

At the height of the crisis in 2009, the shipping industry was badly affected.[6] Jacques R. Saadé was opposed to breaking up the Group. Supported by his son Rodolphe Saadé, and daughter Tanya Saadé, he was convinced container transport sector would bounce back. In 2010, CMA CGM signed an agreement with the family-run industrial Turkish group YILDIRIM. The agreement enabled the Group to strengthen its financial structure and secure finance for its investment plans. This also later led him to invest, notably in building the Group’s first three 16,000 teu vessels:[7] the CMA CGM Marco Polo, the CMA CGM Alexander Von Humboldt, and the CMA CGM Jules Verne.

In 2011, he built the Group’s headquarters in Marseille: the CMA CGM Tower designed by Zaha Hadid, 147m in height with 33 floors. Today the CMA CGM Group is the city’s biggest employer (2,400 staff).[8]

In June 2013, and for the first time since 1962, it was the President of the French Republic, François Hollande, welcomed by Jacques Saadé, who inaugurated the CMA CGM Jules Verne, flagship of the CMA CGM fleet at the time.[9][10][11] The French President met Jacques Saadé again in 2015 for the inauguration of the CMA CGM Bougainville in Port of Le Havre.[12][13][14][15]

Notable achievements

Statements and actions regarding the environment

On the environment front, Jacques R. Saadé declared: "Our growth and a responsible attitude cannot be dissociated when facing the issues of our modern societies. CMA CGM must lead by example in terms of environmental protection, whether it be by acting against climate change or by preserving the maritime environment." [30]

One of the reasons he was awarded the "Containerization International Lifetime Achievement Award" [25] was for "being one of the first lines to use innovative technologies as a means of helping reduce emissions, thereby reducing his company's impact on the environment."[31]

He chose to equip his fleet with new large capacity vessels fitted with the latest green technologies.[32][33][34][35][36] These vessels, combined with various other actions, allowed the group to reduce by 50% its carbon emissions per shipped container per km on its owned fleet between 2007 and 2015,[37] confirming an objective set in 2007.[38]

Family business model

When writing an article about family capitalism, Aymeric Dewimille wrote: “Loyally supported by his son Rodolphe, now Executive Officer in the Group, and his daughter Tanya, head of communications and on the Board of Directors, Jacques Saadé is totally committed to human values that traditionally underpin the governance of family-run companies... While the family-run company may not necessarily be called upon to save capitalism, one thing is proven, the family spirit can save companies.” [39]

The CMA CGM attitude has garnered the attention of the Anglo-Saxon analysts at Lloyd’s List. In its 11 July 2011 edition, the British daily, a reference in the shipping industry, highlighted the fact that “with the support of a solid family network, Jacques R. Saadé fought tooth and nail during the crisis, keeping the creditors at bay, juggling the order books and deployment of his fleet, and having the courage to reject several potential investors waiting for a partner that does not interfere in the way he runs the company”.

However, according to these British analysts, his tenacity paid off – the CMA CGM Group has since returned to profit. The daily French financial newspaper Les Echos said: “Many observers thought CMA CGM would not recover from the losses suffered two years ago, while Jacques R. Saadé said he always knew his company would survive.” [39]

Inclined to vote for the family-run way of managing the business, the board is attracted by the boost to the portfolio that an IPO would bring about. The possibility has been alluded to officially, with the proviso that the Saadé family would keep control.[4]

CMA CGM key figures

Key figures (*teus : twenty-foot equivalent units)
CMA CGM 2015
Total revenue USD 15,7 billions
Number of containers carried 13 million teus*
Total fleet vessel 471
Total fleet capacity 1.900M
Staff worldwide 22,000 employees
Staff in France 4,500 employees
World ranking 3rd

Today, the CMA CGM Group is the world’s 3rd largest container shipping company and No.1 in France. With a fleet of 471 vessels, it serves more than 420 ports worldwide and carried around 13 million TEUs (twenty-foot equivalent units) - estimated - in 2015. Present on all continents and in 160 countries through its 765 agencies, it employs 22,000 people including 4,700 in France. Revenue for 2015 is US$15.7 billion.[40]

References

  1. ↑ "Alphaliner - TOP 100 - Existing fleet on February 2016". www.alphaliner.com. Retrieved 2016-02-23.
  2. ↑ "CMA CGM's Board Of Directors". CMA CGM.
  3. 1 2 3 BORDET, Marie. "Jacques Saadé, confidences d'un tycoon des mers". Les Echos. Retrieved 6 June 2013.
  4. 1 2 COSNARD, Denis. "La revanche du patriarche des mers". Le Monde. Retrieved 1 June 2013.
  5. ↑ "History | CMA CGM Group". www.cma-cgm.com. Retrieved 2016-02-23.
  6. ↑ "The Container Crisis: Shipping Industry Fights for Survival". SPIEGEL ONLINE. Retrieved 2016-02-24.
  7. ↑ "Containers - CMA CGM confirms 16,000 teu upgrades for three ships on order - Lloyd's List". www.lloydslist.com. Retrieved 2016-02-24.
  8. ↑ Marseille, Ville de. "Ville de Marseille - De Delmas à CMA CGM : Un dispositif innovant d'aide à la mobilité pour des salariés". www.marseille.fr. Retrieved 2016-02-24.
  9. ↑ lefigaro.fr. "Hollande inaugure le porte-conteneurs géant Jules Verne à Marseille". Le Figaro. Retrieved 2016-02-24.
  10. ↑ Nouvelle, L'Usine (2013-06-04). "Le porte-conteneurs géant". usinenouvelle.com (in French). Retrieved 2016-02-24.
  11. ↑ "Hollande in Marseille for launch of world's largest container ship". RFI. Retrieved 2016-02-24.
  12. ↑ "The CMA CGM BOUGAINVILLE inaugurated by French President François Hollande". www.ajot.com. Retrieved 2016-02-24.
  13. ↑ "Le Havre Nouvelle escale du géant CMA-CGM Bougainville, au Havre, dix jours après son inauguration". Normandie-actu (in French). Retrieved 2016-02-24.
  14. ↑ "Baptême au Havre pour le CMA CGM Bougainville". Mer et Marine. Retrieved 2016-02-24.
  15. ↑ Jaques, Bob. "Presidential christening for new CMA CGM flagship". www.seatrade-maritime.com. Retrieved 2016-02-24.
  16. ↑ MASBOUNGI, PARIS, d'Elie. "La Chambre de commerce franco-libanaise veut étendre son champ d'action aux Libanais d'Afrique et du M-O - PARIS, d'Elie MASBOUNGI". L'Orient-Le Jour. Retrieved 2016-02-23.
  17. ↑ "Government portal :: Ukraine and France step up political and business cooperation - Anatoliy Kinakh". www.kmu.gov.ua. Retrieved 2016-02-23.
  18. ↑ User, Super. "Archive". www.seatrade-awards.com. Retrieved 2016-02-24.
  19. ↑ lefigaro.fr. "L'armateur Jacques Saadé honoré par l'Académie de marine". Le Figaro. Retrieved 2016-02-24.
  20. ↑ La-Croix.com. "Les promus du 14-Juillet à la Légion d'honneur". La Croix. Retrieved 2016-02-24.
  21. ↑ "POLITIQUE > Légion d'honneur : les promotions du 1er janvier 2015 dans le transport". www.wk-transport-logistique.fr. Retrieved 2016-02-24.
  22. 1 2 "Légion d'Honneur : Jacques Saadé promu Commandeur". LaProvence.com. Retrieved 2016-02-24.
  23. ↑ "Version électronique authentifiée publiée au JO du 14/07/2009 | Legifrance". www.legifrance.gouv.fr. Retrieved 2016-02-24.
  24. ↑ "Jordanian Businessmen Association - The Jordanian –French Business Council convenes its meetings in Paris". en.jba.com.jo. Retrieved 2016-02-23.
  25. 1 2 "Roll of honour | Containerisation International". www.ci-awards.com. Retrieved 2016-02-24.
  26. ↑ Administrator. "Jean-Claude GAUDIN remercie les "Grands Patrons" qui font confiance à Marseille". www.jeanclaudegaudin.net. Retrieved 2016-02-24.
  27. ↑ "LAU | News | Class of 2014, we're proud of you". www.lau.edu.lb. Retrieved 2016-02-24.
  28. ↑ "Jacques Saadé distingué par l'ASCAME". Mer et Marine. Retrieved 2016-02-24.
  29. ↑ "Jacques Saadé élevé au grade de commandeur dans l'ordre national de la Légion d'honneur". L'Orient-Le Jour. Retrieved 2016-02-24.
  30. ↑ "Environment and sustainability | CMA CGM". www.cma-cgm.com. Retrieved 2016-02-24.
  31. ↑ "CMA CGM founder Jacques Saade wins CI Lifetime Achievement Award". www.infinitycargo.com. Retrieved 2016-02-24.
  32. ↑ "Welcome to the Port of Hamburg". The official website of the Port of Hamburg. Retrieved 2016-02-24.
  33. ↑ "CMA CGM Hails "Latest Environmental Technologies" on New Box Ship". Ship & Bunker. Retrieved 2016-02-24.
  34. ↑ "CMA CGM gets new environmental friendly vessel". GREEN4SEA. Retrieved 2016-02-24.
  35. ↑ "CMA CGM's biggest containership ever built in a Chinese shipyard - ShipInsight". ShipInsight. Retrieved 2016-02-24.
  36. ↑ "CMA CGM takes delivery of 18,000 TEU giant". www.marinelog.com. Retrieved 2016-02-24.
  37. ↑ "Climate change and air quality | CMA CGM". www.cma-cgm.com. Retrieved 2016-02-23.
  38. ↑ "CMA CGM confirms objective to reduce CO2 by 50% - The Loadstar". The Loadstar. Retrieved 2016-02-24.
  39. 1 2 DEWIMILLE, Aymeric. "Le capitalisme familial, un modèle qui traverse les crises". Les Echos. Retrieved 25 August 2011.
  40. ↑ "CMA CGM | A leading worldwide shipping group". www.cma-cgm.com. Retrieved 2016-02-23.
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