Jacques Saadé Explained

Jacques Saadé
Native Name:جاك سعادة
Native Name Lang:ar
Birth Date:7 February 1937
Birth Place:Beirut, Lebanon
Nationality:French, Syrian
Alma Mater:London School of Economics
Occupation:Businessman
Spouse:Naila Rapnouil Saadé
Children:3
Known For:Founder, CMA CGM
Notable Works:Officer of the Legion of Honour

Jacques Rodolphe Saadé (Arabic: جاك سعادة; 7 February 1937 – 24 June 2018)[1] was a French-Lebanese billionaire businessman. He was the founder and chairman of the CMA CGM, a French container transportation and shipping company, the fourth largest in the world as of June 2020.

Biography

Jacques R. Saadé was born on 7 February 1937 in Beirut, Lebanon, and spent his childhood in Syria.[2] [3] His father, Rodolph, was a Syrian entrepreneur from Latakia, Syria, while his mother, Odette Nauphal, was Lebanese.[4] [5] [6] 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, cottonseed, olive oil, ice, etc."[7]

Based on his father's 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."[7]

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 of 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."

In the beginning, there was family tension between Jacques Saadé and his brother Johnny. After difficult family disputes, Jacques took the helm alone.[8]

In 1983, Saadé made the decision to cross the Suez Canal and extend 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 Saadé acquired CGM (Compagnie Générale Maritime) following privatization.

Two years later in 1998 came the 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.[9]

In 2006, Saadé concluded the acquisition of DELMAS and the CMA CGM Group became 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.

In 2009, following the 2007–2008 financial crisis, the shipping industry was badly affected.[10] Jacques R. Saadé was opposed to breaking up the Group. Supported by his son Rodolphe Saadé, and daughter Tanya Saadé, he was convinced the 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:[11] 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).[12]

In June 2013, and for the first time since 1962, it was the President of the French Republic, François Hollande, welcomed by Saadé, who inaugurated the CMA CGM Jules Verne, flagship of the CMA CGM fleet at the time.[13] [14] [15] The French President met Jacques Saadé again in 2015 for the inauguration of the CMA CGM Bougainville in Port of Le Havre.[16] [17] [18] [19]

In 2017, Saadé appointed his son Rodolphe as CEO of CMA CGM.[20] Later that year, Rodolphe Saadé became chairman too, with Saadé becoming founder chairman.[21]

In 2018, Forbes Magazine listed Saade’s net worth at 7 billion Euros, making him the 228th richest man in the world at that time.[22]

Saade died on 24 June 2018, at the age of 81.[23]

Notable achievements

Statements and actions regarding the environment

On the environment front, 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."[38]

One of the reasons he was awarded the "Containerization International Lifetime Achievement Award"[33] 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."[39]

He chose to equip his fleet with new large capacity vessels fitted with the latest green technologies.[40] [41] [42] [43] [44] 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,[45] confirming an objective set in 2007.[46]

On 1 June 2020 the master of a container ship APL England, Mohamad Zulkhaili Bin Alias, owned by CMA CGM & ANL (Singapore) lost about 50 containers overboard caused by poor cargo loading by the ships captain Mohamad Zulkhaili Bin Alias. The Australian Marine Safety Authority ordered $22 million from the ship's insurers under the Protection of the Seas Act, which must be paid before the ship will be released from detention at the Port of Brisbane. This money covers estimated clean-up and remediation costs.[47]

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."[48]

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 in 2011: "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."[48]

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 in 2013, with the proviso that the Saadé family would keep control.[8]

CMA CGM key figures

! CMA CGM 2016
Total revenueUSD 16.0 billions
Number of containers carried15.6 million teus*
Total fleet vessel489
Total fleet capacity2.208M
Staff worldwide29,000+ employees
Staff in France4,500 employees
World ranking3rd
Today, the CMA CGM Group is the world's 3rd largest container shipping company and No.1 in France. With a fleet of 489 vessels, it serves more than 420 ports worldwide and carried around 15.6 million TEUs (twenty-foot equivalent units) - estimated - in 2016. Present on all continents and in 160 countries through its 775 offices, it employs 29,000+ people including 4,500 in France. Revenue for 2016 is US$16.0 billion.[49]

External links

Notes and References

  1. Web site: Décès de Jacques Saadé. June 25, 2018. Mer et Marine.
  2. Web site: Jacques Saade & family. Forbes.
  3. Web site: Jacques Saadé Né lé 7 février 1937 à Tripoli (Liban) - Google Search. www.google.com.
  4. Web site: Quand Saadé, le tycoon des mers, se confiait au Point. lepoint.fr. 6 June 2013 .
  5. Book: Who's who in Lebanon . 1999 . Publitec Publications . 978-2-903188-16-0 . en.
  6. Web site: 2013-06-06 . Quand Saadé, le tycoon des mers, se confiait au Point . 2024-02-29 . Le Point . fr.
  7. News: BORDET. Marie. Jacques Saadé, confidences d'un tycoon des mers. 6 June 2013. Les Echos.
  8. News: COSNARD. Denis. La revanche du patriarche des mers. 1 June 2013. Le Monde. "Qu'il y ait introduction en Bourse ou non, la famille gardera le contrôle."
  9. Web site: History CMA CGM Group. www.cma-cgm.com. 2016-02-23.
  10. News: The Container Crisis: Shipping Industry Fights for Survival. Der Spiegel. 11 August 2009 . 2016-02-24. Jung . Alexander . Schulz . Thomas . Wagner . Wieland . "But now the global financial and economic crisis has stifled the boom in container shipping, and it has happened almost overnight. For the first time in its history, the industry has stopped growing and, in fact, is shrinking."
  11. Web site: Containers - CMA CGM confirms 16,000 teu upgrades for three ships on order - Lloyd's List. www.lloydslist.com. 2016-02-24.
  12. Web site: Ville de Marseille - De Delmas à CMA CGM : Un dispositif innovant d'aide à la mobilité pour des salariés. www.marseille.fr. 2016-02-24. Ville de. Marseille. 3 March 2016. https://web.archive.org/web/20160303144853/http://www.marseille.fr/newslettereco/jsp/site/Portal.jsp?document_id=277&portlet_id=20. dead.
  13. Web site: Hollande inaugure le porte-conteneurs géant Jules Verne à Marseille. Le Figaro. 2016-02-24. lefigaro.fr. 4 June 2013.
  14. Le porte-conteneurs géant. Usinenouvelle.com/. 2013-06-04. 2016-02-24. fr-FR. L'Usine. Nouvelle.
  15. Web site: Hollande in Marseille for launch of world's largest container ship. RFI. 4 June 2013 . 2016-02-24. en-US.
  16. News: The CMA CGM BOUGAINVILLE inaugurated by French President François Hollande. www.ajot.com. 2016-02-24.
  17. Web site: Le Havre Nouvelle escale du géant CMA-CGM Bougainville, au Havre, dix jours après son inauguration. Normandie-actu. 2016-02-24. fr-FR. https://web.archive.org/web/20160504051829/http://www.normandie-actu.fr/nouvelle-escale-du-geant-cma-cgm-bougainville-au-havre-dix-jours-apres-son-inauguration_161752/. 2016-05-04. dead.
  18. Web site: Baptême au Havre pour le CMA CGM Bougainville. Mer et Marine. 10 September 2015. 2016-02-24.
  19. Web site: Presidential christening for new CMA CGM flagship. www.seatrade-maritime.com. 2016-02-24. Bob. Jaques. 13 October 2015.
  20. Web site: Welcome to the Port of Hamburg. The official website of the Port of Hamburg..
  21. Web site: CMA CGM Appoints Rodolphe Saade as Chairman. November 25, 2017. Maritime Logistics Professional.
  22. Web site: Jacques Saade & family . Forbes.
  23. News: Shipping group CMA CGM's founder Jacques Saade dies at 81. Reuters . June 25, 2018. www.reuters.com.
  24. Web site: 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. 2016-02-23. PARIS, d'Elie. MASBOUNGI. 30 June 2015.
  25. Web site: Government portal :: Ukraine and France step up political and business cooperation - Anatoliy Kinakh. www.kmu.gov.ua. 2016-02-23.
  26. Web site: Archive. www.seatrade-awards.com. 2016-02-24.
  27. Web site: L'armateur Jacques Saadé honoré par l'Académie de marine. Le Figaro. 2016-02-24. lefigaro.fr. 18 October 2007.
  28. News: Les promus du 14-Juillet à la Légion d'honneur. La Croix. 2016-02-24. La-Croix.com. 14 July 2009.
  29. Web site: POLITIQUE > Légion d'honneur : les promotions du 1er janvier 2015 dans le transport. www.wk-transport-logistique.fr. 2016-02-24.
  30. Web site: Légion d'Honneur : Jacques Saadé promu Commandeur. LaProvence.com. January 2015. 2016-02-24.
  31. Web site: Version électronique authentifiée publiée au JO du 14/07/2009 Legifrance. www.legifrance.gouv.fr. 2016-02-24.
  32. Web site: Jordanian Businessmen Association - The Jordanian –French Business Council convenes its meetings in Paris. en.jba.com.jo. 2016-02-23.
  33. Web site: Roll of honour Containerisation International. www.ci-awards.com. 2016-02-24. https://web.archive.org/web/20170806061233/http://www.ci-awards.com/roll-of-honour-2/. 2017-08-06. dead.
  34. Web site: Jean-Claude GAUDIN remercie les "Grands Patrons" qui font confiance à Marseille. www.jeanclaudegaudin.net. 2016-02-24. Administrator.
  35. Web site: LAU News Class of 2014, we're proud of you. www.lau.edu.lb. 9 July 2014 . 2016-02-24.
  36. Web site: Jacques Saadé distingué par l'ASCAME. Mer et Marine. 27 November 2014. 2016-02-24.
  37. Web site: Jacques Saadé élevé au grade de commandeur dans l'ordre national de la Légion d'honneur. L'Orient-Le Jour. 11 January 2015. 2016-02-24.
  38. Web site: Environment and sustainability CMA CGM. www.cma-cgm.com. 2016-02-24.
  39. Web site: CMA CGM founder Jacques Saade wins CI Lifetime Achievement Award. www.infinitycargo.com. 2016-02-24.
  40. Web site: Welcome to the Port of Hamburg. The official website of the Port of Hamburg.. 2016-02-24.
  41. Web site: CMA CGM Hails "Latest Environmental Technologies" on New Box Ship. Ship & Bunker. 2016-02-24.
  42. Web site: CMA CGM gets new environmental friendly vessel. GREEN4SEA. 2016-02-24. en-US.
  43. Web site: CMA CGM's biggest containership ever built in a Chinese shipyard - ShipInsight. ShipInsight. 2016-02-24. en-US.
  44. Web site: CMA CGM takes delivery of 18,000 TEU giant. www.marinelog.com. 2016-02-24.
  45. Web site: Climate change and air quality CMA CGM. www.cma-cgm.com. 2016-02-23.
  46. Web site: CMA CGM confirms objective to reduce CO2 by 50% - The Loadstar. The Loadstar. 4 June 2014. 2016-02-24. en-US.
  47. Web site: Ship's master faces court over cargo spill. Cheryl. Goodenough. 1 June 2020. Brisbane Times.
  48. News: DEWIMILLE. Aymeric. Le capitalisme familial, un modèle qui traverse les crises. 25 August 2011. Les Echos.
  49. Web site: CMA CGM A leading worldwide shipping group. www.cma-cgm.com. 2016-02-23.

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