Earlier this month, Finance Minister Nirmala Sitharaman announced a $2.9 billion maritime development fund designed to provide long-term financing for India’s shipbuilding and repair industry. The government plans to contribute 49% of this fund, while the remainder will be sourced from ports and private sector investments.

Denmark’s Maersk, the second-largest container line in the world, has already signed a memorandum of understanding with Cochin Shipyard, India’s largest shipbuilding and repair facility. This strategic partnership aims to explore opportunities in ship repair and construction, aligning with India’s ambition to rank among the top 10 maritime nations by 2030 and the top five by 2047. The first Maersk vessel is expected to undergo repairs at Cochin Shipyard as early as 2025.

Established in 1972, Cochin Shipyard is government-controlled and boasts significant capabilities, starting with repairs for vessels up to 7,000 TEU while drydocking ships up to 4,000 TEU. The collaboration with Maersk is anticipated to expand its capabilities over time.

In addition to Maersk, CMA CGM is expected to follow suit, with plans for a delegation to visit India soon. Prime Minister Modi recently met with CMA CGM’s CEO, Rodolphe Saadé, at the company’s headquarters in Marseille to discuss potential shipbuilding and repair initiatives in India.

Meanwhile, MSC’s CEO, Soren Toft, has been in India this week for discussions with Piyush Goyal, the Union Minister of Commerce and Industry. Their talks have focused on various investment opportunities, including inland container terminals, shipbuilding, maintenance, container manufacturing, and potential vessel partnerships. Goyal emphasized the need for policy reforms to bolster India’s global maritime competitiveness.

As these developments unfold, the collaboration between India and these leading shipping lines represents a significant step toward enhancing the country’s maritime capabilities and establishing a more robust presence in the global shipping industry.