Integrated logistics company A.P. Moller-Maersk A/S and state-run shipbuilder Cochin Shipyard Ltd have formed a strategic partnership to explore collaboration opportunities in ship repair, maintenance, and ship building, becoming the first major global ship owner to show confidence in the nation’s capabilities days after the Budget announced a bonanza to make India a big shipbuilding hub.
On 11 December, it was reported that Maersk’s plan to build and repair ships in India. Denmark-based Maersk runs Maersk Line, the world’s second largest container carrier.
Maersk and Cochin Shipyard signed a memorandum of understanding (MoU) which, it said, aligns with the Government’s Amrit Kaal Vision 2047 maritime objectives and the Budget announcement to position India among the top five global maritime hubs.
“This partnership signifies a strategic step towards establishing India as a premier maritime service centre. Under the MoU, Maersk will leverage its expertise as an off-taker in its global fleet to strengthen Cochin Shipyard’s capabilities, primarily focusing on container ship maintenance, repair, and drydocking operations,” Maersk said in a statement.
The collaboration will initially focus on afloat repairs of ships up to 7,000 twenty-foot equivalent units (TEUs) and dry docking of vessels up to 4,000 TEUs, with capabilities expected to expand over time, it stated.
Maersk will send a ship to Cochin Shipyard for repairs in 2025, marking the beginning of “what we envisage as a long-term collaborative relationship,” Maersk said.
The collaboration comes at a crucial time when the global shipping industry is expected to face capacity constraints in ship repair yards around the world.
“As we witness unprecedented growth in global maritime trade, our collaboration with Cochin Shipyard represents our commitment to strengthening India’s maritime infrastructure,” said Leonardo Sonzio, Head of Fleet Management and Technology, A.P. Moller – Maersk.
Last year, Mumbai-listed Cochin Shipyard opened a Rs 970 crore international ship repair facility at Willingdon Island in Cochin Port spread over 42 acres of land leased from the port authority, aimed at bolstering India’s ship repair capacity and positioning Kochi – where its flagship yard is located – as a regional repair hub.
The ship repair facility is fully operational and is currently repairing 4-5 ships including naval and commercial vessels.
“Combining Maersk’s global expertise with Cochin Shipyard’s capabilities would help position ourselves to capture a larger share of the global ship repair and ship building market,” said Rajesh Gopalakrishnan, Executive Director, Cochin Shipyard Ltd.
The cooperation covers technical expertise sharing for achieving global standards in ship maintenance, exploring ship repair, dry docking, and new building opportunities, joint training programs focusing on responsible practices and skill development initiatives for both Cochin Shipyard employees and seafarers of Maersk.
In the Union Budget 2025, Finance Minister Nirmala Sitharaman, announced a Rs 25,000 crore Maritime Development Fund (MDF), a revamped shipbuilding financial assistance policy to address cost disadvantages faced by local shipbuilders, a credit note for shipbreaking in Indian yards to promote circular economy and infrastructure status to large ships above a specified size.
Shipbuilding clusters will be facilitated to increase the range, categories and capacity of ships. This will include additional infrastructure facilities, skilling and technology to develop the entire eco system, the Finance Minister said.
Further, exemption from Basic Customs Duty (BCD) on raw materials, components, consumables or parts used in the manufacture of ships as well as import of ships for shipbreaking will be extended for a further ten years beginning April 1, 2025.
“This partnership is expected to contribute significantly to India’s maritime sector growth, supporting the government’s vision of developing worldclass ship repair and building capabilities within the country,” Maersk added.
(source: ET Infra)
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