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.

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

AP Government's Ambitious Budget for Welfare

The Andhra Pradesh government has proposed a massive Rs 2.94 lakh crore budget focused heavily on welfare initiatives and infrastructure development. Prioritizing social welfare and inclusive growth, the budget emphasizes support for sectors like education, healthcare, and social development to enhance residents' quality of life. Key allocations include substantial funds for improving public infrastructure, roads, and connectivity, which are set to boost local economic activities and employment opportunities. With a large share dedicated to welfare schemes, the budget also focuses on educatio..

Next Story
Infrastructure Transport

Delhi Metro Introduces Bike Taxi Services

Delhi Metro has launched two new bike taxi services aimed at enhancing last-mile connectivity for its users. This initiative focuses on providing a convenient and affordable option for commuters to cover the distance between metro stations and their final destinations. Available at select metro stations, these bike taxis are intended to reduce travel time and alleviate congestion, particularly in densely populated or high-traffic areas. The service offers riders a quick, accessible option for reaching their destinations, ensuring they can seamlessly integrate metro travel with efficient ground..

Next Story
Infrastructure Energy

Inox to Build Bahamas LNG Terminal

Inox has secured a significant contract to construct the Bahamas’ first mini liquefied natural gas (LNG) terminal, aimed at providing sustainable energy for cruise ships docked in the region. This terminal marks a pioneering move for the Bahamas, addressing the rising need for eco-friendly power solutions within the cruise industry. By opting for LNG as a cleaner fuel source, the project is expected to reduce emissions and align with environmental goals, particularly for cruise liners that demand substantial power at ports. The terminal represents Inox’s expansion in global LNG infrastruct..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000