Maersk Invests $5 Billion in India, Sees Beacon for Global Trade

Mumbai, Feb 28 (PTI) India is not just a key market but a beacon and an opportunity for confidence in global trade, shipping giant Maersk said on Friday amid its plans to invest around USD 5 billion in ports, terminals, and land-side infrastructure development.

The Danish firm, which for the first time named one of its vessels, Albert Maersk, at an Indian port, also said that it was ready to invest more in developing ports with low emissions and great efficiency.

The name-giving ceremony of the newest dual-fuel methanol container vessel took place at the APM Terminal at Jawaharlal Nehru port as a part of the vessel's maiden voyage to India.

Albert Maersk is the eleventh vessel in Maersk's fleet capable of operating on methanol.

"India is the world's fastest-growing major economy, with a thriving manufacturing sector, a booming e-commerce industry, and expanding exports. This economic momentum stands in contrast to the stagnation of many other parts of the world, making India not just a key market, but a beacon and an opportunity for confidence in global trade," said Vincent Clerc, CEO, A.P. Moller - Maersk at the event here.

Union Ports, Shipping and Waterways Minister Sarbananda Sonowal, Raksha Khadse, Minister of state for Youth Affairs in the Maharashtra Government and Keith Svendsen, Chief Executive Officer at APM Terminals were also present at the event.

Stating that India has a 1.40-billion population and an "unmatched" geographic strength, and depends on a strong supply chain network to keep every corner of the country connected, he wondered that how the company could not be fully committed to a country that has such immense potential to shape the future of global commerce.

Over the years, Maersk has made significant investments in India, in ports, terminals, warehouses, offices, technology, and global capability centres, he said, adding recent expansion at this very important port terminal (Jawaharlal Nehru Port) here now allows us to accommodate larger vessels, while new developments at the company's APMT facility in Kerala will enhance capacity and efficiency, he said.

"Looking ahead, our commitment to India will only grow. We see an investment opportunity pipeline of around USD 5- billion in ports, terminals, and land-side infrastructure development," Clerc said.

Shipping and logistics are high on India's priorities, and Maersk looks forward to partnering with India on various aspects, such as exploring the potential sourcing of alternative fuels for low-emissions shipping and activities involving ship repairs and shipbuilding in the future that align well with the Indian Government's ambitions to promote the shipping sector, he added.

"Maersk continues to take firm steps towards decarbonising shipping with the addition of one more dual-fuel vessel to its fleet", he said.

Terming it a "privilege" for India to host the naming of a vessel and a historic first for a foreign shipping company in the country, Sonowal said, "with the demand for green vessels rising, India has the potential to become a major producer and supplier of green methanol, ammonia, and hydrogen-based fuels.".

Maersk's decision to focus on green fuel production in India is a welcome step that will accelerate our journey towards a sustainable maritime future, he said and added that the naming of the vessel in the Indian waters is more than just a tradition -- it is a symbol of trust, collaboration, and a shared vision for the future.

"As India moves towards becoming a global maritime powerhouse, we welcome Maersk's continued partnership in green shipping, green fuel production, and logistics," the Union Minister stated.

Keith Svendsen, CEO of APM Terminals, said, "We believe we can play a role in reducing the cost of logistics by ensuring that our customers access all their supply chain needs in one place -- from all modes of transportation to port handling to warehousing and distribution. As APM Terminals, we are ready to invest more in developing ports with low emissions and great efficiency that will help businesses grow and connect India with the global markets.".

Albert Maersk' is part of a series of 18 large dual-fuel methanol vessels scheduled for delivery in 2024 and 2025. Built at Hyundai Heavy Industries in Ulsan, South Korea, the vessel can carry 16,592 standard containers (TEU).

The delivery of the dual-fuel fleet is a significant component of Maersk's decarbonisation goal of achieving net-zero greenhouse gas (GHG) emissions by 2040, the company said.