World’s 2nd Largest Shipowner Eyes Shipbuilding, RORO Terminals & Logistics Expansion In India

The world’s second biggest ship owner by fleet size, Japan’s Mitsui OSK Lines (MOL), is exploring opportunities to build RORO Terminals, strengthen inland logistics services and build ships in the country.

President and CEO Jotaro Tamura said that MOL is ‘open and positive’ and with 13 ships sailing under the Indian flag, the company is presently the 4th biggest ship owner in India.

He added that the company needs to build confidence by understanding the needs of Indian yards and how it aligns with MOL’s interests in India.

Presently, MOL’s shipbuilding is concentrated in China, Japan and Korea and from a global viewpoint, it would be good to have another country to boost its shipbuilding capabilities.

He added that MOL would first need to understand the kind of ships which are suitable for the present stage of India’s shipbuilding sector.

He also urged Indian shipbuilding companies to move in the right direction.

Tamura also underlined that it is impractical to start with high-specification or specialised ships in India, as he does not expect Indian shipyards to compete with the high-tech ships built in other countries.

India would develop these capabilities over time, he said, while arguing that bulk carriers could be a great way to boost ties between Indian shipyards and global fleet owning companies.

MOL currently utilises port facilities at India’s Mundra, Pipavav, Mumbai, Ennore and Chennai to export cars from India, making it the biggest company in the country’s car export market.

Tamura spoke on these lines by mentioning that car manufacturing is growing in India, not only to meet the domestic needs but also for export, and MOL wants to tap into this demand.

MOL also plans to enhance inland logistics services in the country, which have a lot of scope for development.

We are planning to become more of a logistics solutions provider for our customers, and terminals and inland logistics are areas we want to enter,” he added.

He called India a priority in the company’s growth strategy and said that MOL would try to register more and more ships under the Indian flag, while acknowledging the Indian government’s subsidy scheme to promote Indian flagging.

The Indian Ministry of Ports, Shipping, and Waterways has now extended the scheme by 5 more years after it expired.