German container line Hapag-Lloyd and the Indian government signed three letters of intent (LOI) to deepen maritime cooperation and support the development of India’s shipping and logistics sector.

The agreement outlines areas of potential cooperation including ship reflagging, the development of sustainable ship recycling capacity, and strategic collaboration related to the development of Vadhavan Port.

Hapag-Lloyd intends to explore the reflagging of up to four vessels under the Indian registry. At this stage, no specific timeline, vessel profile or capacity range has been defined.

Any reflagging would remain subject to further discussions, internal assessments, commercial considerations and applicable legal and regulatory requirements, according to the company.

The letter of intent also includes cooperation on the development of a ship recycling ecosystem in India, designed to meet EU Ship Recycling Regulation (SRR) standards.

The envisioned ecosystem could provide capacity for recycling up to 100 vessels.

In addition, the LOI foresees discussions on a strategic cooperation framework related to the development of Vadhavan Port in collaboration with the Jawaharlal Nehru Port Authority.

“India is one of the most important growth markets in global trade and a key strategic partner for Hapag-Lloyd,” said Rolf Habben Jansen, CEO of Hapag-Lloyd. “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.”

Hapag-Lloyd has more than 2,800 employees in India across four business units, 17 offices nationwide, and 6 dedicated liner services connecting India to major global trade lanes. It has also invested in J M Baxi Ports & Logistics Limited, a private terminal and inland transport service provider in India.

J M Baxi operates container terminals, inland container depots, container freight stations and rail services across the country, employing around 7,000 people and handling approximately 3.2 million TEU annually.

Hapag-Lloyd aims to grow volumes handled in the India area to around 3 million TEU by 2030, as part of its Strategy 2030.