India has signed an agreement to set up the Bharat Container Shipping Line (BCSL), a new government-backed container carrier aimed at reducing dependence on foreign shipping lines and improving the country’s trade logistics.

The memorandum of understanding (MoU) was signed on February 3 in the presence of Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Union Minister for Railways, Information and Broadcasting, and Electronics and IT Ashwini Vaishnaw.

The MoU involves the Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), Jawaharlal Nehru Port Authority, V.O. Chidambaranar Port Authority (VOCPA), Chennai Port Authority, and Sagarmala Finance Corporation Limited (SMFCL), under the Ministry of Ports, Shipping and Waterways.

According to the government, the formation of BCSL aligns with the ₹10,000-crore Container Manufacturing Assistance Scheme (CMAS) announced in the Union Budget 2026–27.

The scheme, planned over five years, aims to build a globally competitive container manufacturing ecosystem in India.

Containerised cargo accounts for nearly two-thirds of the value of India’s international trade, highlighting the need for strong domestic capacity.

India has set a target of achieving an annual domestic container manufacturing capacity of around one million TEUs over the next decade.

Officials have noted that the absence of a national container carrier in the past has exposed Indian exporters and importers to volatile freight rates and global supply chain disruptions.

At the same event, a separate tripartite MoU was signed between VOCPA, Indian Railway Finance Corporation Limited (IRFC) and SMFCL to finance the Outer Harbour Project at V.O. Chidambaranar Port, Tuticorin.

The agreement provides for joint funding of up to ₹15,000 crore for eligible port capacity expansion projects under the Sagarmala Programme and the PM Gati Shakti National Master Plan.

The financing framework focuses on debt funding for breakwater construction and related onshore and offshore facilities, mainly through a Hybrid Annuity Model (HAM).

Government representatives said the initiatives are intended to strengthen India’s shipping and port infrastructure and support the goals of Atmanirbhar Bharat and Maritime Amrit Kaal 2047.

Mr Sonowal said the new container shipping line would help keep India’s container trade in Indian hands and strengthen the country’s presence in global maritime trade.

India has been working towards establishing a national container carrier as part of an effort to expand Indian-flag shipping.

Per media reports, the government plans to order 15 domestically built container ships in FY 2026–27, with a first phase targeting 51 vessels within five years.

Initial services are expected to focus on Asia, West Asia and the Red Sea, with later expansion to Europe, Africa and the Americas.

Reference: thehindubusinessline