HSBC wins "CMA CGM" mandate
HSBC has won the mandate for providing cash management services in Asia to CMA CGM the world's third largest container shipping company which is headquartered in Marseilles.
The initial scope of the project covers nine countries and territories including China, Hong Kong, Taiwan, Korea, Indonesia, Malaysia, Singapore, Thailand and Vietnam, with Japan and Bangladesh to follow later in 2008.
HSBC's global payments and cash management won the business after CMA CGM issued a request for proposals (RFP). Prior to awarding their business to HSBC, CMA CGM had been using 21 local banks for cash services. HSBC's solution allows for a single point of contact in France and Hong Kong as well as full visibility across the company's cash positions.
Also included in the solution are liquidity management, collections and payments. The solution allows all banking activities to be consolidated with HSBC via the bankâ's internet-based electronic banking platform, HSBCnet, integrating CMA CGM's Oracle enterprise resource and planning (ERP) platform. According to Robert Haddad, deputy vice president of credit management and treasury at CMA CGM, says: The key to the solution provided by HSBC was the ability to provide a true end-of-day US dollar sweep from Hong Kong, Singapore and Indonesia back to our head office in France. Through this Asia cash pooling project, we will be able to achieve substantial time and interest savings through faster and automated repatriation. The application of a consistent electronic banking platform across Asia for processing payments and account enquiries also facilitated our goal to enhance internal control and achieve a paperless environment as much as possible.
HSBC's solution also enabled the integration of CMA CGM's Oracle ERP system for payment and reporting, the conversion of paper-based payments to secured electronic payments, payment process outsourcing for optimal efficiency and control, and a competitive in-country banking tariff. Led by its founder Jacques R Saad, CMA CGM is currently the world's third largest container shipping group and is ranked number one in France. Operating a fleet of 350 vessels, including 110 owned by the company, the group serves 400 ports around the globe. In 2006, it carried six million TEUs (twenty-foot equivalent units). With a presence on all continents and in 150 countries through its network of 600 agencies, the group employs 15,000 people worldwide, including 4,000 in France.