India plans new shipping venture to tap into expanding trade revenue
PORTS & SHIPPING

India plans new shipping venture to tap into expanding trade revenue

India is planning to establish a new shipping company to increase its fleet by at least 1,000 ships over the next decade, aiming to capture a larger share of revenue from growing trade. The officials mentioned that India, as Asia's third-largest economy, is investing heavily in infrastructure to enhance its manufacturing capabilities, with Prime Minister Narendra Modi envisioning it as a developed nation by 2047.

The yet-to-be-named company will be jointly owned by state-run entities in the oil, gas, and fertilizer sectors, along with the state-owned Shipping Corp of India and foreign firms. Requests for comments from India's oil and shipping ministries went unanswered.

Sources, speaking on condition of anonymity, stated that the goal is to reduce freight expenses to foreign companies by at least one-third by 2047. One of the sources, who is familiar with the matter, mentioned, "Current projections indicate that freight costs could reach $400 billion as exports and imports increase by 2047."

In the financial year 2019/20, Indian companies reportedly paid $85 billion in freight costs, with $75 billion allocated for foreign vessels. This shift towards foreign carriers is attributed to India's shipping fleet not keeping pace with its expanding trade, especially in energy imports and exports of refined oil products.

India currently has around 1,500 large vessels, including tankers, gas carriers, container ships, and dry bulk carriers. In January, India's oil and shipping ministries agreed that all state-run oil firms, along with the planned company, would collaborate. A government document revealed plans to leverage the expertise of the Shipping Corp of India in tanker acquisition, ownership, operations, and other shipping-related areas.

Additionally, on May 16, the two ministries established a joint working group comprising government and industry representatives to formulate a strategic plan, as per the document.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

India is planning to establish a new shipping company to increase its fleet by at least 1,000 ships over the next decade, aiming to capture a larger share of revenue from growing trade. The officials mentioned that India, as Asia's third-largest economy, is investing heavily in infrastructure to enhance its manufacturing capabilities, with Prime Minister Narendra Modi envisioning it as a developed nation by 2047. The yet-to-be-named company will be jointly owned by state-run entities in the oil, gas, and fertilizer sectors, along with the state-owned Shipping Corp of India and foreign firms. Requests for comments from India's oil and shipping ministries went unanswered. Sources, speaking on condition of anonymity, stated that the goal is to reduce freight expenses to foreign companies by at least one-third by 2047. One of the sources, who is familiar with the matter, mentioned, Current projections indicate that freight costs could reach $400 billion as exports and imports increase by 2047. In the financial year 2019/20, Indian companies reportedly paid $85 billion in freight costs, with $75 billion allocated for foreign vessels. This shift towards foreign carriers is attributed to India's shipping fleet not keeping pace with its expanding trade, especially in energy imports and exports of refined oil products. India currently has around 1,500 large vessels, including tankers, gas carriers, container ships, and dry bulk carriers. In January, India's oil and shipping ministries agreed that all state-run oil firms, along with the planned company, would collaborate. A government document revealed plans to leverage the expertise of the Shipping Corp of India in tanker acquisition, ownership, operations, and other shipping-related areas. Additionally, on May 16, the two ministries established a joint working group comprising government and industry representatives to formulate a strategic plan, as per the document.

Next Story
Infrastructure Urban

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Next Story
Infrastructure Transport

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Next Story
Infrastructure Transport

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement