Greenfield Shipyard in India by MSC to Address Global Shipbuilding Shortage

Mediterranean Shipping Company SA (MSC) is in talks with the Ministry of Ports, Shipping, and Waterways to establish a greenfield shipyard in India to address its shipbuilding and repair needs. This initiative comes in response to a global shortage of shipbuilding space, leading MSC to explore alternative options. In discussions with Swan Defense and Heavy Industries, MSC is considering utilizing a shipyard in Pipavav, Gujarat for ship construction and repair activities.

With a fleet of 860 container ships and a total annual capacity of 25.5 million TEU, MSC anticipates the need to retire several ships in the near future to comply with evolving environmental regulations. Facing high demand for new ships over the next five years, the company is exploring the possibility of setting up its own shipyard in India due to the lack of capacity at existing shipyards globally.

The Indian government’s efforts to promote the shipbuilding sector through fiscal and tax incentives have further piqued MSC’s interest in expanding its operations in the country. India’s proposed shipbuilding policy includes subsidies for shipyards over a ten-year period, with rates varying based on ship type. The policy also features a ship recycling credit system and a maritime development fund to support shipyard projects. These initiatives have attracted interest from global players like MSC, signaling potential benefits for India in terms of infrastructure enhancement, job creation, and economic growth.

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