A.P. Moller-Maersk plans to get sizeable number of ships repaired in India and is in talks with local companies to source methanol giving a push to its energy transition and business expansion plans in the country.
Last week, Maersk signed an agreement with Cochin Shipyard for ship repair and on Friday it named a 350 metre long container vessel at an event in Jawaharlal Nehru Port symbolising its India commitment and green energy goals.
The ship, christened ‘Albert Maersk’, has been built by Hyundai Heavy Industries and runs on both methanol and conventional fuel. It can carry over 16,500 twenty foot long containers. Incidentally, this is the first ever ship naming ceremony by a foreign company in India. On the occasion, the company also announced an investment opportunity pipeline of $5 billion in ports, terminals and landside infrastructure in India.
- Also read: Maersk, Cochin Shipyard ink MoU to explore ship repairs, shipbuilding activities
Each year, Marsek repairs around 60-90 ships in China, Turkey and Bahrain. The idea behind the Cochin Shipyard tie-up is to diversify repair facilities and the first vessel will be docked for repairs in India this year. “Hopefully, a sizeable portion could be docked (for repairs) in India,” said Leonardo Sonzio, head of fleet management and technology, Maersk.
The Danish shipping giant has long term offtake agreements with Chinese companies for methanol. By 2030, it hopes to meet 20 per cent of its fuel demand from green sources. Conversations are ongoing with Indian companies for sourcing of methanol, said Prashant Widge, Maersk’s head of public affairs in South Asia. The company is also a part of Danish government’s green transition alliance that seeks to support green fuel adoption in India.
India well-positioned
Responding to queries on the US government’s decision to impose tariffs on steel, aluminium and key trade partners, Keith Svendsen, CEO of APM Terminals, said that challenges could present opportunities too including potential for recycling of more steel from shipbreaking yards. “It seems to me India is well positioned to navigate (the challenges). The world is a better place because of free trade and we hope that will continue,” he said.
Maersk’s India Managing Director Chris Cook over time businesses are adopting China plus one strategy. The company is seeing growth in India especially from retail and FMCG sectors and is investing in capacity and technologies to help customers and build resilience, he added.