India’s PM Modi Celebrates Maritime Week as Maersk and DP World Invest $7B
India’s Prime Minister Narendra Modi marked the resurgence of the country’s maritime industries as the government continues to promise large investments in shipbuilding and shipping to place India in the global market. Plans were confirmed for India’s new domestic containership company, while both Maersk and DP World announced new logistics investments valued at $7 billion.
Attending the Maritime Leaders Conclave, Modi said a decade ago, when his government started, “India’s maritime sector was filled with outdated laws and limited capacities. This was not acceptable… Today, the sector stands transformed as a symbol of modern infrastructure, global trust, and national pride.”
The government has invested in ports and used private partnerships with Modi says port capacity has doubled from 1,400 to 2,762 MMTPA. Cargo handling has risen from 972 to 1,594 MMT, and vessel turnaround time has been reduced from 93 hours to 48 hours.
India’s goal is to expand its shipbuilding industry to be among the top five worldwide. At the same time, the government wants to decrease the amount of cargo carried by foreign-flag carriers. To that end, the Modi government has instructed the Shipping Corporation of India to launch, in partnership with the ports, a domestic-flag container carrier. Known as Bharat Container Shipping Line, it will initially focus on regional shipping routes mostly in Asia, as India has a goal to carry at least 20 percent of its cargo on its own ships.
The government has also created a finance package to encourage investment, and Modi said the goal is more than 2,500 vessels. He also outlined landmark bills for Bill of Lading and modernizing port and maritime governance. He beckoned to the industry, “Come, Invest in India.”
DP World announced five new memoranda it signed during Maritime Week, pledging to invest $5 billion. They said this is in addition to $3 billion already invested in the past three decades and that it will focus on the integrated supply chain network as well as Indian shipbuilding. It said the agreements span from green coastal shipping to shipbuilding, ship repair, skills development, and advanced freight mobility.
DP World’s Unifeeder signed an agreement with a finance company, Sagarmala Finance Corporation, to advance green coastal and short-sea shipping across India. DP World said Drydocks World would invest with Cochin Shipyard in expanding the ship repair at Kochi, and they would also work on advanced skills development. With the Cochin Port Authority, it will enhance maritime infrastructure in Kerala, and with Deendayal Port Authority, it will install a 750-meter MagRail Booster pilot track.
Maersk’s APM Terminals also outlined $2 billion in planned investments. Maersk said that it intends to significantly expand its operational footprint in India through port infrastructure investments, vessel reflagging, and partnerships.
The company confirmed the reports that two vessels were reflagged to the Indian Registry in October, and it said it is deepening collaborations with Indian shipyards to explore repair, maintenance, and newbuilding opportunities. It is also exploring the local manufacturing of containers in India.