India’s maritime sector is witnessing a strategic convergence of large‑scale public investment, private sector participation, and sustained revenue growth at its major ports—hallmarks of a concerted effort to bolster India’s shipbuilding capabilities, port infrastructure, and export competitiveness. Over the past week, three distinct developments illustrate this momentum: a ₹2‑lakh crore plan to establish eight shipbuilding clusters, JSW Infrastructure’s ₹740 crore investment in container berths at Kolkata Port, and Chennai Port Authority’s generation of over ₹500 crore in revenue from Hyundai Motor India over 15 years.

Forging India’s Shipbuilding Future with Eight Clusters

Under its Maritime India Vision 2030 and Vision 2047, the Ministry of Ports, Shipping & Waterways has green‑lit a ₹2 lakh crore (₹200,000 crore) roadmap to develop eight integrated shipbuilding clusters along India’s coastline—five greenfield sites and three brownfield upgrades. Union Shipping Secretary T.K. Ramachandran confirmed that state governments have formed special purpose vehicles (SPVs) and secured land parcels, with supporting infrastructure—roads, rail links, and port‑side facilities—already under development.

  1. Greenfield Clusters: To be established in Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra, these clusters will integrate end‑to‑end ship manufacturing capabilities, spanning hull construction, component production, insurance, leasing, and bunkering services.
  2. Brownfield Upgrades: Existing shipyards at Vadinar and Kandla in Gujarat, and near Cochin Port in Kerala, will receive modernizations to scale up capacity and adopt advanced ship‑assembly technologies.
  3. Global Partnerships: The plan envisages collaborations with leading shipbuilders from South Korea, Japan, and Scandinavia, aimed at technology transfer, joint ventures, and workforce training.
  4. Financial Incentives: The FY26 Union Budget introduced a ₹25,000 crore Maritime Development Fund, enhanced tax breaks, easier credit facilities, and a revised Shipbuilding Financial Assistance Scheme to catalyze private investments.

By targeting a top‑10 global ranking in shipbuilding capacity by 2030 and top‑5 by 2047, India aims to close the current gap where it accounts for less than 1% of global shipbuilding output against giants like China, South Korea, and Japan.

• shipbuilding
Source : wikipedia

Private Sector Momentum at Kolkata: JSW Infra’s ₹740 Crore Bet

Complementing government‑led initiatives, private players are deepening their stake in port infrastructure. JSW Infrastructure has secured a Letter of Award (LoA) from the Syama Prasad Mookerjee Port Authority (Kolkata Port) to reconstruct and mechanize key container berths under a 30‑year DBFOT (Design, Build, Finance, Operate, Transfer) concession, with a capex of ₹740 crore.

  1. Scope of Work:
    • Reconstruction of Berth 8 and mechanization of Berths 7 and 8 at Netaji Subhas Dock, including installation of rail‑mounted quay cranes (RMQCs) to accelerate container handling.
    • Development of a 25‑acre backup yard for container storage and yard management.
  2. Timeline & Concession: A two‑year construction period, with phased commencement of operations, and a 30‑year operating lease ensuring JSW Infra’s long‑term participation in Kolkata’s container throughput.
  3. Strategic Fit: The project aligns with JSW’s ambition to expand its terminal portfolio currently spanning 14 ports and terminals in India and the UAE with a combined capacity of 170 Mtpa amidst stiff competition from Adani Ports and SEZ.

Post‑completion, the upgraded berths are expected to enhance operational efficiency, reduce vessel turnaround times, and increase Kolkata Port’s container handling capacity, thereby strengthening trade linkages for eastern India and neighbouring land‑locked regions.

Chennai Port’s Long‑Term Revenue from Hyundai Exports

Meanwhile, Chennai Port Authority (ChPA) has underscored the value of durable port–industry partnerships. In the past 15 years, ChPA has grown over ₹500 crore in revenue from Hyundai Motor India Ltd (HMIL), Chennai Port’s anchor exporter of passenger vehicles.

  1. Revenue Composition: Includes vessel‑related fees and cargo handling charges such as wharfage and demurrage.
  2. Dedicated Facilities: HMIL benefits from a bespoke holding area with inspection facilities for over 4,000 vehicles, streamlining pre‑shipment procedures.
  3. Export Footprint: Since 1999, HMIL has exported more than 3.7 million “Made‑in‑India” vehicles to over 150 countries, currently servicing 60 markets with models like the Hyundai CRETA, CRETA Electric, ALCAZAR, EXTER, VENUE, AURA, VERNA, Grand i10 NIOS and i20. In FY 2024–25 alone, it shipped 163,386 units to major destinations including Saudi Arabia, South Africa, Mexico, Chile, and Peru.
  4. Growth Outlook: Hyundai projects 7–8% export volume growth in FY 2025–26, driven by rising demand in emerging markets.

Chennai Port’s success story highlights how tailored port services and reliable infrastructure can catalyze manufacturer competitiveness on global stages, while generating significant revenue streams for port trusts.

Also read : Government Invests ₹5,000 Crore to Transform Northeast Inland Waterways by 2035

Synergies and Strategic Implications

The interplay between these three developments reveals several overarching themes:

  1. Public–Private Collaboration: Large government‑backed infrastructure plans dovetail with private investments under PPP models, ensuring both scale and efficiency.
  2. Holistic Value Chain Development: From shipbuilding clusters supplying vessels to port operators, to modern container berths facilitating faster cargo flows, India is addressing bottlenecks across the maritime value chain.
  3. Export‑Led Growth: Enhanced port infrastructure and port–industry partnerships underpin India’s export ambitions whether in automobiles or broader containerized trade contributing to national economic growth and export diversification.
  4. Employment and Skill Development: Shipbuilding clusters and mechanized ports will generate skilled jobs, complementing broader initiatives like the Maritime India Vision’s focus on workforce readiness.
  5. Global Competitiveness: By upgrading domestic shipyards, mechanizing ports, and nurturing anchor clients, India is gradually shifting from a marginal player to a competitive force in global shipping and trade.
shipbuilding
Source : wikipedia

Charting the Course Ahead

As these projects unfold over the next few years, stakeholders anticipate tangible benefits:

  1. Capacity Expansion: A significant rise in domestic shipbuilding output and container throughput at ports like Kolkata and Chennai.
  2. Operational Efficiencies: Reduced vessel waiting times, faster cargo turnaround, and lower logistics costs.
  3. Economic Uplift: Direct employment in shipyards and ports, allied services growth, and enhanced regional trade corridors.
  4. Environmental Gains: Modern shipyards and mechanized handling can adopt green technologies, contributing to cleaner, more sustainable maritime operations.

India’s ₹2 lakh crore investment in shipbuilding clusters lays the foundation for an indigenous maritime manufacturing ecosystem. JSW Infrastructure’s ₹740 crore commitment at Kolkata Port exemplifies private sector dynamism in port modernization. Chennai Port’s ₹500 crore revenue haul from Hyundai underlines the dividends of long‑term, collaborative infrastructure partnerships. Together, these milestones signal India’s readiness to become a pivotal maritime hub crafting ships, handling global cargo, and exporting Indian‑made goods with world‑class efficiency. As implementation progresses, the synergy of public vision and private capability will be crucial to navigating the waves of 21st‑century maritime commerce.

Source : (shippingtribune.com)