Seatrade-Maritime: India’s maritime development plans gain momentum

Published by Seatrade-Maritime

India’s economy ranks number six in the world, so it is remarkable that the country’s maritime infrastructure rarely gets a mention. But this is set to change as the Government seeks to develop a robust shipping sector that could save around $70 billion in foreign exchange every year.

Analysts from shipping consultancy, Drewry, revealed yesterday that the authorities are now throwing weight behind a series of initiatives that aim to reduce dependence on foreign shipowners, establish competitive domestic shipbuilding and repair industries, and develop several key ports and terminals to handle the country’s booming trade.

Now, nearly three years after Prime Minister Narendra Modi announced the launch of the country’s shipping blueprint, known as the Maritime Amrit Kaal Vision 2047, projects are underway. Earlier this month, the Government formally launched the Bharat Container Shipping Line (BCSL), a joint venture aimed at reducing the country’s 93% dependence on foreign tonnage.

The new company, a mixture of public and private enterprise, brings together the national line, Shipping Corporation of India, the Container Corporation of India (ConCor), and a range of port, rail, and finance entities. The Government is targeting a place for BCSL in the top 10 world container lines by 2047.

In shipbuilding, there are similarly ambitious targets. India currently ranks 20^th in the world, building less than 0.1% of the world’s tonnage. But earlier this year, the Government approved $5.4 billion in support for the shipbuilding sector, including subsidies and funds for infrastructure. The Amrit Kaal Vision targets a place in the top ten shipbuilders by 2030, and the top five by 2047.

A key initiative already in progress is the $500 million equal-stake joint venture between Cochin Shipyard Limited and HD Korea Shipbuilding & Offshore Engineering. The partners are developing a ship block fabrication facility in Kochi, Kerala.

HD Hyundai is also developing the Thoothujudi Mega-Yard Project to build large commercial vessels. The company is introducing advanced automation, AI-based design technology, and shipyard workforce training resources for Indian personnel.

The endeavours are not going unnoticed. Indian yards have traditionally built only small coastal vessels for domestic trades or naval ships for the Government. But in April, Australia’s Energy One Limited placed an order for four 92,500 dwt dual-fuel ammonia bulk carriers with Swan Defence and Heavy Industries, previously known as Reliance Naval and Engineering Limited.

The post-panamax ships, the largest to be built in India by far, will be heavily subsidised. They are due for delivery from October 2029.

Meanwhile, overseas shipowners, notably the container giants, are keen to win a slice of the action. Projects that are underway include a joint venture between Maersk and ConCor to operate an Inland Container Depot in Uttar Pradesh.

Meanwhile, CMA CGM, Hapag-Lloyd, and MSC are eyeing up the opportunities, with CMA CGM reported to have placed orders for six dual-fuel feeder container ships at Cochin Shipyard. And Mitsui OSK Lines (MOL) is understood to have entered a partnership with India’s Oil & Natural Gas Corp to set up joint ventures running very large ethane carriers (VLECs).