Indian firms explore shipyard JV with Korean giants

“The initiative to own ships would help in self-sufficiency and at times of exigencies like sanctions on ships carrying Russian crude in the past few years. Indian refiners operating their own ships would ensure issues such as bans and sanctions on vessels do not have a major impact on supplies to India.”

“Taking into account running cost and depreciation, there may not be a major difference in operating costs compared to hiring these vessels. But, the major benefit would be that owning vessels would allow refiners some sort of flexibility in terms of transport.”

“Along with the consideration to procure vessels produced by these shipmakers, SCI and oil companies would join a shipbuilding entity, possibly through a joint venture as equity partners and remain dedicated buyers for ships being made in India. This would provide assured demand for the yard and make investments financially viable earlier.”

“We signed a memorandum of understanding with Cochin Shipyard earlier this year in the commercial vessel sector and have since expanded discussions into naval vessels as well. Indian officials had visited Hyundai's offices where potential future cooperation was discussed.”

“India spends billions of dollars annually to charter ships. Therefore, it makes logical sense and it's high time to evaluate charter versus build/ buy. Therefore, doing more of the build is in our economic and national interest towards energy security.”