Japan’s Mitsui OSK Lines (MOL), one of the largest shipowners in the world, is looking to India as a potential location for building vessels. To diversify its supply chain, which currently depends heavily on China and Korea, the company has begun discussions with Indian shipyards, including Cochin Shipyard Ltd. Initially, MOL plans to source medium-range (MR) carriers from India, which are ships of about 50,000 deadweight tonnes used for transporting cargo like refined oil products. While the cost of construction in India is higher, MOL believes there is potential and is looking to secure orders. Government support would be important to help mitigate the cost differences.
MOL is the second-largest shipping company globally with a fleet of 935 vessels. It is the fourth-largest shipowner in India and aims to become the second-largest. India’s contribution to global shipbuilding is less than 1%, while China, Korea, and Japan contribute 40%, 30%, and 20% respectively. The Indian government is working on a new shipbuilding scheme to provide incentives to Indian shipyards until 2035.