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

Larsen & Toubro Secures Contract from Defence Ministry

The Ministry of Defence, Government of India, has awarded a significant contract to Larsen & Toubro (L&T) for supplying K9 Vajra-T Artillery Platforms to the Indian Army. As per the company's project classification, the contract is valued between Rs 50 billion and Rs 100 billion. The K9 Vajra-T, a 155 mm, 52-calibre tracked self-propelled artillery platform, is an adaptation of the globally renowned South Korean K9 Thunder howitzer. It has been co-developed by L&T and Hanwha Aerospace to meet the Indian Army's specific operational needs across diverse terrains, including deserts, plains, and..

Next Story
Real Estate

Delhi-NCR Housing Market sees 25% Sales Growth

The Delhi-NCR property market has maintained its momentum during the December quarter, with housing sales and new supply estimated to grow by 25 per cent and 59 per cent, respectively, as reported by PropEquity. Data from the real estate analytics firm suggests that housing sales in Delhi-NCR are likely to rise to 12,915 units during the October-December period of this year, compared to 10,354 units in the corresponding period of the previous year. New supply in the region is expected to increase significantly, reaching 11,223 units, a 59 per cent rise from 7,072 units in the year-ago quarter..

Next Story
Infrastructure Urban

DDC Approves Five Key Projects Under Kasaragod Development Package

The District Development Committee (DDC) has approved a budget of Rs 100.08 million for five key projects under the Kasaragod Development Package. This funding is part of the Rs 700 million allocated in the State budget for the 2024-25 financial year, with administrative approval formally amended to incorporate these initiatives. The decision was made during a meeting chaired by District Collector K. Inbasekar on Saturday, December 21. The approved projects include Rs 40.99 million for constructing Udayapuram Thungal Road in Kottom Belur grama panchayat and Rs 20.56 million for setting up a ..

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