Mumbai, March 19 Union Minister Sarbananda Sonowal emphasized on Thursday that cooperation from stakeholders can help ensure minimal disruption in maritime trade amid uncertainties in the wake of the evolving situation in West Asia.
Speaking at a ceremony to sign the Letter of Intent (LoI) for maritime cooperation between the government and German shipping giant Hapag-Lloyd here, Sonowal also said that India is steadily moving towards becoming a leading maritime power due to strong policy support and infrastructure expansion.
"While we look ahead with optimism, we must also remain mindful of global challenges. The evolving situation in West Asia, particularly in the Persian Gulf region, has brought uncertainties in maritime trade, and stakeholders' cooperation can significantly contribute to ensuring that disruptions are minimized and maritime operations remain secure," Sonowal, who is the Minister of Ports, Shipping and Waterways, said.
He said in response to the developments in West Asia, the Directorate General of Shipping has issued detailed advisories focusing on enhanced vigilance, war-specific risk assessment, and strict reporting protocols and preparedness against emerging threats such as drone and asymmetric attacks.
A dedicated 24x7 quick response team has also been established to support seafarers and stakeholders in real time, the minister said.
"In such a situation, collaboration and responsible conduct by all stakeholders become extremely important. Your cooperation can significantly contribute to ensuring that disruptions are minimised and maritime operations remain secure," Sonowal said.
With strong policy direction, massive infrastructure expansion and global partnership, we are moving steadily towards becoming a leading maritime power.
Stating that India has emerged as one of the most important markets in Hapag-Lloyd's global network, with extensive connectivity across more than 70 countries and handling more than 1.9 million dues annually, and with a clear roadmap to reach 3.2 million dues by 2030, reflects the confidence that a company places in India's growth story.
The LoI 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.
As part of the LoI, 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, the company said, adding that any reflagging would remain subject to further discussions, internal assessments, commercial considerations and applicable legal and regulatory requirements.
The LoI also includes cooperation on the development of a ship recycling ecosystem in India. Hapag-Lloyd said it is committed to ensuring that end-of-life vessels are recycled safely and responsibly in facilities that meet the highest environmental and safety standards.
The intended cooperation aims to support the development of recycling capacity in India, aligned with the EU Ship Recycling Regulation (SRR), currently regarded as the leading international standard.
The envisioned ecosystem could provide capacity for recycling up to 100 vessels, it stated.
"India is one of the most important growth markets in global trade and a key strategic partner for 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," Rolf Habben Jansen, CEO of Hapag-Lloyd.
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's port and logistics infrastructure is developing at remarkable speed and scale. Projects such as Vadhavan Port have the potential to significantly strengthen India's role in global supply chains. We look forward to helping develop an efficient, future-ready port infrastructure in India," said Dheeraj Bhatia, CEO of Hanseatic Global Terminals and member of the Hapag-Lloyd Executive Board.
Hapag-Lloyd connects India with global markets through six dedicated liner services besides a strategic investment in J M Baxi Ports & Logistics Limited, which operates container terminals, inland container depots, container freight stations and rail services across the country.
As part of its Strategy 2030, Hapag-Lloyd aims to grow volumes handled in the India area to around 3-million TEU by 2030.