Maersk Places $5 Billion Bet on India’s Port and Shipbuilding Boom
Maersk Invests $5 Billion in India's Maritime Future
In a significant move to bolster India’s maritime sector, Danish shipping giant Maersk has announced a $5 billion investment aimed at enhancing the country’s ports and shipbuilding capabilities. This announcement comes just ahead of India’s ambitious plan to complete 150 maritime projects by September. The investment is expected to play a crucial role in India’s goal to increase the global cargo share of Indian-flagged ships to 20% by 2047.
Strategic Investments in Infrastructure
Maersk’s commitment to India includes substantial funding for ports, terminals, and landside infrastructure development. Although the company has not disclosed specific allocation details, Keith Svendsen, CEO of APM Terminals, indicated that approximately half of the investment will be directed towards expanding the Pipavav Port, which currently has a capacity of 1.35 million twenty-foot equivalent units (TEUs). This expansion is part of a broader strategy to enhance India’s maritime logistics and shipbuilding capabilities.
Another significant portion of the investment is expected to support the development of a new container terminal at Vadhvan Port, India’s largest port project, which has an estimated cost of $9.1 billion. This port is projected to include nine terminals and handle up to 23.2 million TEUs annually by 2040, positioning it among the world’s ten largest ports. Maersk has already signed a non-binding memorandum of understanding with the Jawaharlal Nehru Port Authority (JNPA) for this project, although the investment is contingent on winning the bid to develop the terminal.
In addition to these projects, Maersk’s operations in India include two APM Terminals facilities in Mumbai and Pipavav, which together facilitate the throughput of over 3 million containers each year. The company also operates 26 warehouses across 3.8 million square feet, reaching over 80% of India’s postal codes. This extensive network underscores Maersk’s commitment to enhancing India’s maritime infrastructure.
India’s Ambitious Maritime Goals
India’s government is actively pursuing an ambitious agenda to elevate the country’s maritime logistics and shipbuilding capabilities. Prime Minister Narendra Modi has emphasized the importance of these sectors as part of a broader vision for India to achieve developed economy status by 2047. The government aims to position India among the top ten shipbuilding nations by 2030, with aspirations to break into the top five as the country progresses towards its development goals.
To support this vision, India is establishing a 250-billion-rupee ($2.9 billion) maritime development fund, which will finance the shipbuilding and repair industry. The government plans to contribute up to 49% of this fund, with the remainder expected to come from major port authorities, private sector investments, pension funds, and foreign investors.
In line with these initiatives, India is also working to expand its existing ports. The Jawaharlal Nehru Port, also known as Nhava Sheva Port, aims to increase its container handling capacity from 7.05 million TEUs in 2024 to 10 million TEUs by 2027. Ongoing construction projects at the port include the second phase of the Bharat Mumbai container terminal, which will add 2.4 million TEUs to its capacity. Meanwhile, Mundra Port, India’s largest container handling hub, has received regulatory approval to double its capacity to 514 million metric tons, with an investment of $5.2 billion from Adani Ports and Special Economic Zone Limited.
