German shipping company Hapag-Lloyd plans to invest about Rs 20,000 crore in India across ship recycling, reflagging of vessels and infrastructure development at Vadhavan Port, its chief executive officer Rolf Habben Jansen said on Thursday.
The proposed investment is split evenly, with around half earmarked for developing ship recycling capacity and the rest linked to port infrastructure at Vadhavan. The company has already invested about $800 million (over Rs 7,350 crore) in India so far.
The announcement follows a letter of intent signed with the Union government on maritime cooperation, covering ship recycling, reflagging and port development. Jansen said India is a key growth market in global trade and a strategic partner for the company, adding that the agreement is aimed at strengthening its presence and supporting India’s plans to expand maritime capacity and connectivity.
Strategic Expansion
On ship recycling, Hapag-Lloyd said it is evaluating facilities in India aligned with European regulatory standards. The proposed ecosystem could eventually support recycling of up to 100 vessels, the company said. Jansen said the company is in discussions to build capacity that meets compliance requirements under European rules.
The company is also considering reflagging up to four vessels under the Indian flag. Reflagging involves registering ships under a different national registry. Jansen said the company is assessing multiple options on vessel sizes, with an initial focus on smaller ships.
Hapag-Lloyd holds a 50% stake in J M Baxi Ports & Logistics, which operates terminals and inland transport services. Under its Strategy 2030, the company aims to increase volumes handled in India to about 3 million twenty-foot equivalent units (TEU) by 2030.
Navigating West Asia Disruptions
On the ongoing tensions in West Asia, Jansen said the company has seen additional freight costs of $40–50 million per week. “We have absorbed the additional costs in the last two weeks, but this cannot continue indefinitely. We will have to pass on the costs to customers,” he said, adding that contractual commitments with customers will be honoured.
Jansen said around six of the company’s ships are among the roughly 3,000 vessels currently affected by disruptions at sea. About 25,000 shipments have been impacted, with slightly less than half of the affected consignments linked to India. The company’s containers are equipped with tracking systems to monitor movement.
Hapag-Lloyd operates at major Indian ports and runs six dedicated liner services connecting the country to key global trade routes. Jansen said container traffic to and from India could double or triple over the next 10 to 15 years, indicating sustained growth in trade volumes.