German shipping company Hapag-Lloyd has announced a plan to invest Rs 200 billion (Rs 200 bn) in India, targeting ship recycling, reflagging of vessels and infrastructure at the proposed Vadhavan Port. The chief executive said the proposed investment would be split evenly between developing ship recycling capacity and port infrastructure. The company has already invested about $800 million (USD 800 mn) and over Rs 73.5 billion (Rs 73.5 bn) in India to date.

The company is assessing facilities in India that align with European regulatory standards and expects the recycling ecosystem to support recycling of up to 100 vessels. It is considering reflagging up to four vessels under the Indian flag, with an initial focus on smaller ships. Discussions are under way to build compliant capacity and options on vessel sizes are being evaluated.

Hapag-Lloyd holds a 50 per cent stake in J M Baxi Ports and Logistics, which operates terminals and inland transport services, and the company said this supports its expansion plans in India. Under its Strategy 2030 the company aims to increase volumes handled in India to about three million (three mn) twenty-foot equivalent units by 2030. The firm operates at major Indian ports and runs six dedicated liner services connecting the country to global trade routes.

On disruptions in West Asia the chief executive indicated that the company has incurred additional freight costs of 40–50 mn dollars per week and that these costs have been absorbed in the short term but cannot be sustained indefinitely. He indicated contractual commitments with customers will be honoured while future cost pass-throughs may be necessary. Around six of the company's ships are among roughly 3,000 vessels affected at sea and about 25,000 shipments have been impacted, with slightly less than half linked to India. The containers are equipped with tracking systems to monitor movement.