The Ministry of Ports, Shipping and Waterways (MoPSW) on Thursday signed a Letter of Intent (LoI) with shipping major Hapag-Lloyd to deepen maritime collaboration.
Reflagging up to four Hapag-Lloyd vessels has been identified as one of the biggest potential outcomes of the LoI, in addition to boosting India's sustainable ship recycling capacity and developing the Vadhavan Port by means of infrastructure investments.
The collaboration is also expected to factor in Hapag-Lloyd's shipping and technical expertise in the development of the Mumbai-based port.
However, the shipping firm has said that at this stage, no specific timeline, vessel profile or capacity range has been defined.
"Any reflagging would remain subject to further discussions, internal assessments, commercial considerations and applicable legal and regulatory requirements," it noted in a statement.
“Through this LoI, we want to further strengthen our long-standing relationships with India and support the country’s ambitions to expand its maritime capabilities, enhance global connectivity and advance sustainable shipping," said Rolf Habben Jansen, CEO of Hapag-Lloyd.
On the proposed boost to India's ship recycling ecosystem, Hapag-Lloyd has said that the focus is on ensuring that end-of life vessels are recycled in facilities that are aligned with standards set by the EU Ship Recycling Regulation (SRR).
The ecosystem could potentially provide the capacity to recycle up to 100 vessels.
Hapag-Lloyd maintains a significant operational presence in terms of nearly 3,000 personnel and six liner (fixed) services connecting India to major global trade lanes.
The LoI signed on Thursday is therefore a part of its Strategy 2030, under which it aims to grow cargo volumes handled in the Indian region to around 3 million TEUs by 2030.
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