Executives of the shipping line, Hapag-Lloyd, and representatives of India’s Ministry of Ports, Shipping and Waterways (MoPSW), have signed a Letter of Intent (LOI) to deepen maritime cooperation and support the continued development of India’s shipping and logistics sector. The agreement, signed on Thursday 20MAR26, outlines areas of potential cooperation including ship reflagging, the development of sustainable ship recycling capacity, and strategic collaboration related to the enlargement of Vadhavan Port.
Starting with the harbor: Vadhavan Port’s website underlines that it is the only deep-water port on India’s west coast. It has a draft of over 20 meters and is designed to handle super-large cargo ships, making it a key player in boosting India’s trade competitiveness. Nineteen months ago, on 30AUG24, the Nehru Port Authority, in the presence of Prime Minister Narendra Modi, unveiled a massive expansion program. According to the scheme, the port, located north of Mumbai, is expected to handle 23.2 million TEU annually by 2040. Official figures forecast the creation of 1.2 million new jobs and the involvement of private investors, who are expected to finance about half of the multi-billion-euro project.
Fast development of the infrastructure
“India’s port and logistics infrastructure is developing at remarkable speed and scale,” said Dheeraj Bhatia, CEO of Hanseatic Global Terminals and member of the Hapag-Lloyd Executive Board, during his stay in Vadhavan. “Projects such as Vadhavan Port have the potential to significantly strengthen India’s role in global supply chains. We look forward to helping develop an efficient, future-ready port infrastructure in India.”
A key aspect of the LOI is the establishment and operation of a ship recycling ecosystemwith a capacity of 100 vessels. The scheme is aligned with the EU Ship Recycling Regulation (SRR), which is regarded as the leading global standard. The agreement also emphasizes the commitment to working closely together on the further expansion of the Port of Vadhavan.
Reflagging vessels
In addition, according to the LOI, there are plans – though the timing has not yet been determined – to reflag up to four Hapag-Lloyd vessels under the Indian registry. However, any reflagging remains subject to further discussions, internal assessments, commercial considerations and applicable legal and regulatory requirements.
“India is one of the most important growth markets in global trade and a key strategic partner for Hapag-Lloyd,” Rolf Habben Jansen, CEO of Hapag-Lloyd, emphasized during his stay. “Through this Letter of Intent, 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.”
Long-standing business relations
In an overview, Hapag-Lloyd stresses the company’s close ties with India for many decades, connecting the country to global markets through dedicated liner services across a widespread worldwide network. Currently, it operates six dedicated liner services to and from India. There, the box carrier employs 2,800 people in 17 stations nationwide. Furthermore, Indians are one of the largest nationalities within Hapag-Lloyd. Also, since early 2023, Hapag-Lloyd holds a 40% stake in J M Baxi Ports & Logistics Limited (JMBPL), a leading private terminal and inland transport service provider in India. With the recently announced investment in Vadhavan Port, the Hamburg-headquartered shipping company is further solidifying its position as a key investor and partner in India’s maritime economy.
