Mitsui O.S.K. Lines (MOL), Japan’s shipping giant and one of the world’s largest shipping companies, is preparing to place new shipbuilding orders in India. The company has begun talks with the Indian government and Cochin Shipyard Ltd, officials confirmed this week.

MOL, which operates a fleet of 935 vessels worldwide, is the second-largest shipping company globally and currently the fourth-largest in India, with 13 Indian-flagged ships (10 under MOL India and three under IFSC). The company aims to expand further in the country and eventually become the second-largest shipowner in India.

According to MOL’s South Asia and Middle East Regional Executive Officer, Captain Anand Jayaraman, the company intends to start by ordering medium-range (MR) product tankers from Indian shipyards. MR carriers, with a capacity of around 50,000 deadweight tonnes (DWT), are widely used to transport refined oil products over both intercontinental and regional routes.

Jayaraman added that the plan is to begin with simpler vessels like product tankers and, over time, build more complex ships such as ethane carriers in India. MOL hopes to achieve this within the next decade.

Industry estimates suggest the construction cost of an MR tanker in China is around $50 million, while in Korea it is approximately $52 million, both with delivery timelines of about 18 months. In comparison, the cost of building the same tanker in India could be around $70 million with delivery times of nearly 24 months.

India currently accounts for less than 1 percent of global shipbuilding, compared with China at 40 percent, Korea at 30 percent, and Japan at 20 percent. However, the Indian government has been expanding its presence in the sector.

Plans have already been announced to establish three major shipbuilding clusters, with discussions in progress with major global carriers including CMA CGM, Maersk, and MSC Mediterranean Shipping Company. Initial talks with these companies have focused on repair projects as a first step toward building new ships in India.

Cochin Shipyard, one of the country’s leading state-run facilities, has also signed agreements with international players like HD Korea Shipbuilding & Offshore Engineering to share expertise and technology.

As part of its expansion in India, MOL has already re-registered 13 of its ships under the Indian flag. The company aims not only to grow its fleet locally but also to support India’s green shipping ambitions.

Reference: thehindubusinessline

Source: www.marineinsight.com