Maersk Plans Repairs at India’s Cochin Shipyard Supporting Government Goals

 

Maersk and India’s Cochin Shipyard have entered into a memorandum of understanding to explore ship repair, maintenance, and shipbuilding in India. The Danish company becomes the first major carrier to plan regular maintenance activities in India which will be in support of the government’s goals to develop shipbuilding into one of India’s leading industries.

“The first Maersk vessel repair at Cochin, planned already for 2025, will mark the beginning of what we envisage as a long-term collaborative relationship,” said Leonardo Sonzio, Head of Fleet Management & Technology for A.P. Moller – Maersk. The collaboration the companies reported will initially focus on vessels up to 7,000 TEU for afloat repairs and up to 4,000 TEU for dry-docking, with capabilities expected to expand over time.

Cochin Shipyard, which was incorporated in 1972 as a fully owned Government of India company, is India’s largest shipbuilder both for the navy and private projects. Last year, the company invested more than $100 million to open a new ship repair facility encompassing more than 42 acres in Cochin Port. Media reports indicate that the company is currently repairing four to five ships at a time in the yard while it also has orders for 65 newbuilds.

Located on the southwest coast of India, the yard is close to major shipping lanes and can offer advantages in technology and low-cost labor. The agreement with Maersk will explore ship repair, dry docking, and new building opportunities as well as sharing technical expertise. The companies plan to work together on joint training programs and skill development.

India is reported to have 32 shipyards but a report cited inadequate policy support, limited private investment, and inefficiencies in the operations which are holding back the growth of the industry. The government however in 2024 outlined an aggressive plan to expand the shipbuilding industry. 

The Ministry of Ports, Shipping and Waterways (MoPSW) is developing a new shipbuilding support program that will incentivize Indian shipyards to grow. Detailing the plan the ministry said the aim is to propel India into the top ranks of global shipbuilding nations, targeting a position among the top 10 by 2030 and the top five by 2047, from its current 22nd place. The government projected that the business could be worth $62 billion by 2047. It would also drive growth in related industries which would add $37 billion to the economy and create around 12 million jobs.

Media reports in India and South Korea noted recent activities designed to support the shipbuilding industry. The Indian government organized and led a delegation to meet with Korea’s shipbuilders. In a reciprocal visit, Hanwha Ocean is reported to have toured the shipbuilders including Swan Engineering, Cochin Shipyard, Hindustan Shipyard, and L&T Shipyard. Media reports in South Korea indicate that Hanwha Ocean is exploring an agreement with India’s shipbuilders.

Korean shipbuilders are currently handicapped by a lack of capacity with all the building slots booked years in advance. The industry is also focused on rising costs and competition from Chinese shipyards. 

The U.S. Navy and the UK’s Royal Navy have also sought to build relationships with the Indian shipbuilders as part of a complex series of political moves to strengthen ties with India. The U.S. Navy sent an MSC vessel for the first time in 2022 for an overhaul at an Indian shipyard and now three of India’s yards are approved to bid for projects. The Royal Navy also started in 2024 sending auxiliary ships to Indian shipyards.