Mediterranean Shipping Company Eyes India as Global Shipbuilding and Repair Hub
MSC in Talks to Build Greenfield Shipyard in India Amid Global Capacity Crunch
The Mediterranean Shipping Company S.A. (MSC), the world’s largest container shipping line, is exploring India as a potential destination to establish a state-of-the-art shipbuilding and repair hub. This strategic move aligns with the global shipping giant’s long-term vision of enhancing its in-house capabilities while addressing a worldwide shortage of shipbuilding slots.
India’s Potential as a Maritime Powerhouse
According to a senior government official, MSC has initiated preliminary discussions with India’s Ministry of Ports, Shipping, and Waterways to identify a greenfield location suitable for setting up a shipyard. The yard would cater to MSC’s internal requirements, including shipbuilding and maintenance, as environmental regulations necessitate the retirement of older vessels in its fleet.
“MSC is exploring the possibility of investing in a greenfield shipyard in India. This stems from a pressing global capacity crunch in shipbuilding,” the official said. He added that MSC already collaborates with a Chinese shipyard for its shipbuilding and repair needs. However, with the growing demand for eco-friendly and technologically advanced vessels, the company seeks to diversify its operations and invest in facilities closer to key shipping routes.
India’s Strategic Location and Growing Shipbuilding Ecosystem
The Geneva-based shipping giant operates a massive fleet of 860 container ships with a combined capacity of 25.5 million twenty-foot equivalent units (TEUs). Many of its vessels already call at Indian ports, making India an attractive option for ship repairs. However, the lack of high-quality repair facilities within the country has forced MSC to rely on ports in Dubai and Colombo for maintenance work.
Recognizing this gap, MSC recently engaged in discussions with Swan Defence and Heavy Industries Ltd, which operates a shipyard in Pipavav, Gujarat. This facility could potentially meet MSC’s immediate repair requirements while broader plans for shipbuilding are evaluated.
“Shipbuilding is still in the initial stages of consideration, but ship repairs are being pursued actively,” an industry source familiar with the discussions said.
Environmental Regulations and Fleet Modernization
The global shipping industry faces increasing pressure to comply with stringent environmental norms. For MSC, this translates into the need to phase out older vessels and replace them with energy-efficient, green ships. With most leading shipyards around the world booked until at least 2028, MSC’s move to consider building its shipyard in India is both timely and strategic.
“MSC has a massive demand for new ships over the next five years. Given the global shipbuilding capacity constraints, investing in a dedicated yard in India makes sense,” the government official added.
Policy Support Driving Interest
The Indian government’s proactive approach to boosting the shipbuilding industry is a significant factor influencing MSC’s interest. To attract global players, a comprehensive policy framework, which includes fiscal and tax incentives, is being finalized.
The proposed measures include:
- Shipbuilding Subsidy: Indian shipyards would receive subsidies of up to 30% for constructing eco-friendly and technologically advanced vessels.
- Maritime Development Fund (MDF): An initial corpus of ₹25,000 crores would be allocated to support new ventures and expand existing facilities.
- Ship Recycling Credit Note Scheme: Fleet owners dismantling vessels in India would receive a credit note equivalent to 40% of a ship’s scrap value. This credit could be redeemed against the cost of building new ships at Indian yards.
These incentives aim to establish India as a competitive global hub for shipbuilding, repair, and recycling.
India’s Rising Appeal Among Global Shipping Giants
MSC is not alone in its interest in India. A.P. Moller-Maersk, the world’s second-largest container carrier, has also expressed a keen interest in investing in Indian shipyards for both shipbuilding and repairs.
“These global entities are eyeing India because of the upcoming policies. This will not only benefit the shipping industry but also spur economic growth by creating jobs and improving infrastructure,” an industry insider commented.
Green Ship Recycling: A Key Attraction
India’s ship recycling industry, particularly in Alang, Gujarat, is transforming significantly. The region is preparing to comply with the International Maritime Organisation’s (IMO) Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC), which takes effect in June 2025.
With upgraded facilities, Alang is poised to become a global hub for green ship recycling, further enhancing India’s appeal as a maritime destination. Under the proposed credit note scheme, fleet owners dismantling ships in India would gain financial benefits that could offset the cost of building new vessels locally.
Economic and Strategic Implications
If MSC proceeds with its plans, it could mark a turning point for India’s shipbuilding industry. Establishing a world-class shipyard would create thousands of jobs, foster technological innovation, and strengthen India’s position in the global maritime sector.
Additionally, this move aligns with India’s broader objectives under initiatives like “Make in India” and “Atmanirbhar Bharat” (Self-Reliant India), which aim to boost domestic manufacturing and reduce dependency on imports.
Challenges Ahead
While the prospects are promising, MSC’s plans are still in the nascent stages. The company must navigate regulatory hurdles, secure land for the greenfield project, and ensure the availability of skilled labour.
Moreover, developing a globally competitive shipyard requires significant investment and time. It will also require seamless coordination between the government and private stakeholders to address infrastructure gaps and streamline processes.
The Road Ahead
As MSC evaluates its options, the outcome of these discussions could redefine the trajectory of India’s maritime industry. The potential collaboration between MSC and Indian shipyards reflects a growing recognition of India’s capabilities and strategic importance in the global shipping landscape.
With the right mix of policy support, infrastructure development, and private investment, India could emerge as a key player in the global shipbuilding and repair industry, fulfilling the ambitions of international giants like MSC while driving economic growth at home.
As one industry expert aptly summarized, “This could begin a new chapter for India’s maritime sector, transforming it into a global hub for shipbuilding and repairs. The opportunities are immense, and the time to act is now.”
