Mumbai: The government’s efforts for a new domestic container shipping line, namely Bharat Container Shipping Line (BCSL), aims to reduce India’s dependence on foreign carriers and drive job growth and the economy, a new report has said.
The government oversaw the formal signing of agreements earlier this week, setting out the plans for Bharat Container Shipping Line (BCSL).
A report in The Maritime Executive said the government plans to order 15 domestically-built containerships in FY 2026 2027.
The report further added that Phase 1 of this project envisages 51 vessels within five years, initially serving Asia, West Asia and the Red Sea, before expanding to Europe, Africa and the Americas.
“The government is reportedly prepared to invest nearly $6.5 billion in the launch of the shipping line. Officials said it will become the backbone of India’s import and export logistics strategy,” the report said.
The memorandum of understanding of BCSL was signed by Shipping Corporation of India, Container Corporation of India, Jawaharlal Nehru Port Authority, VO Chidambaranar Port Authority, Chennai Port Authority and Sagarmala Finance Corporation Limited.
The report also highlighted that changes to cabotage rules have prompted international carriers such as CMA CGM, Maersk and MSC Mediterranean Shipping to reflag vessels in India.
“India wants to start a container manufacturing operation able to produce one million TEU annually. The government has outlined a $1 billion container manufacturing assistance scheme over the next five years,” the report further said.
Further, $1.6 billion has been set aside for port capacity expansion projects, including an outer harbour project by the VO Chidambaranar Port Authority.
It will also involve the Indian Railway Finance Corporation as part of a coordinated effort between shipping, ports, and rail-linked logistics, the report noted.
(IANS)
