Global shipping giant MSC explores India for shipbuilding and repair opportunities
GENEVA : The world’s largest container shipping line, Mediterranean Shipping Company (MSC) has initiated preliminary discussions with India’s Ministry of Ports, Shipping, and Waterways to identify a suitable greenfield site for developing a shipyard. This facility would address MSC’s in-house shipbuilding and repair requirements, as a global shortage of shipbuilding slots has compelled the company to explore alternative solutions, according to multiple sources.
Following a suggestion from the Ministry, the Geneva-based shipping giant recently engaged with Swan Defence and Heavy Industries Ltd. regarding potential collaboration for shipbuilding and repair at the company’s yard in Pipavav, Gujarat, a government official familiar with the matter stated on condition of anonymity.
MSC is exploring investment opportunities to establish a greenfield shipyard in India,” a government official revealed. “The company already collaborates with a Chinese shipyard, which serves as a dedicated facility for building and repairing its ships,” the official added.
With global environmental regulations necessitating the retirement of many vessels in the coming years, MSC faces a significant challenge. The company currently operates a fleet of 860 container ships, capable of transporting 25.5 million twenty-foot equivalent units (TEUs) annually.
“MSC has an immense demand for new ships over the next five years, but the global shipbuilding industry is facing a severe capacity crunch. Leading shipyards are fully booked until at least 2028. So, where else can they go to meet their needs? This is why MSC is considering investing in a new yard in India to cater to its in-house requirements,” the official explained.
The Indian subsidiary of MSC, along with Cyprus-based MSC Shipmanagement Ltd—recognized as the world’s largest in-house ship management company exclusively managing MSC-owned vessels—is actively engaged in discussions with Ministry officials and private shipyards regarding the proposed plan.