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India eyes possible shipbuilding partnership with delegation's visit to Korean shipyards

Published: 26 Dec. 2024, 16:18

LEE JAE-LIM
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A view of HD Hyundai Heavy Industries' Ulsan shipyard [HD HYUNDAI]

An Indian government delegation visited the shipyards of HD Hyundai, Hanwha Ocean and Samsung Heavy Industries in Korea earlier this month, hinting at a prospective investment or partnership with local companies to foster India’s maritime sector.

A government-led delegation including Shri T.K. Ramachandran, India’s secretary for the Ministry of Ports, Shipping and Waterways, visited Hanwha Ocean’s Geoje facility in South Gyeongsang on Nov. 29, Samsung Heavy Industries’ Geoje shipyard on Dec. 2 and HD Hyundai Heavy Industries’ Ulsan shipyard on Dec. 3, each company confirmed on Thursday.

Ramachandran was accompanied by state-run Cochin Shipyard Chairman Madhu Nair and Binesh Kumar Tyagi, chairman of the Shipping Corporation of India.

The purpose of the tour was “to discuss ways to collaborate to strengthen India’s shipbuilding capacity,” but nothing as of yet has been set in stone, according to multiple spokespeople.

Indian news outlet Economic Times Infra reported that the meetings were “very positive” with the delegation’s keen interest to forge partnerships or deals with Indian yards.

Related agreements are expected to be signed in March next year when Sarbananda Sonowal, minister of Ports, Shipping and Waterways, visits the country, according to the report.

The move is part of India’s ambitious road map to invest $1 trillion by 2047 to bolster its maritime capabilities, with an aim of becoming a key player in the global shipbuilding industry by then.

India’s global market share is currently less than 1 percent, with some 95 percent of the nation’s trade reliant on foreign vessels.

India possesses 28 shipyards but is limited in its capacity to produce large vessels such as ultra-large container ships, very large crude carriers and large car carriers.

The country also plans expand its fleet by at least 1,000 ships in the next decade from the current 1,500 vessels, and to invest in shipyard infrastructure to reach this goal.

Following the news, shares of Korean shipbuilders surged, with two HD Hyundai affiliates reaching 52-week highs.

Shares of HD Hyundai Heavy Industries spiked 9.56 percent to close at 298,000 won ($203) on Thursday, while shares of HD Korea Shipbuilding & Offshore Engineering rose 4.2 percent to 235,500 won.

Hanwha Ocean shares jumped 4.86 percent to 37,750 won, and Samsung Heavy Industries climbed 2.11 percent to 11,600 won.

BY LEE JAE-LIM [[email protected]]