Maersk Places $5 Billion Bet on India’s Port and Shipbuilding Boom

Maersk is throwing substantial capital into India’s seaports and shipbuilding industry as the country hits the gas on its maritime expansion plans.

The Danish container shipping giant is committing $5 billion to India’s ports and terminals, as well as landside infrastructure development. The commitment came a week before India’s ministry of ports, shipping and waterways outlined a goal to complete 150 maritime projects by September.

India’s government-spearheaded projects include the launch of a new dedicated Indian ocean carrier, Bharat Container Shipping Line, which is expected to host a fleet of 100 vessels.

According to the ministry, the government aims to boost the global cargo share of India-flagged ships to 20 percent by 2047 and reduce reliance on foreign-owned vessels.

Maersk made its own announcement in Mumbai’s Jawaharlal Nehru Port on Feb. 28 during a name-giving celebration for it newest dual-fuel methanol container vessel, now called the Albert Maersk. The ship, one of 18 methanol-powered vessels delivered to Maersk in 2024 and 2025, can carry 16,592 20-foot-equivalent units (TEUs).

“With the demand for green vessels rising, India has the potential to become a major producer and supplier of green methanol, ammonia and hydrogen-based fuels,” said Sarbananda Sonowal, India’s minister of ports, shipping and waterways, during the event. “Maersk’s decision to focus on green fuel production in India is a welcome step that will accelerate our journey towards a sustainable maritime future.”

Maersk’s statement did not specify where the $5 billion would be invested, but Keith Svendsen, CEO of subsidiary terminal operator APM Terminals, told Indian publication The Economic Times that roughly half would go to the expansion of the 1.35-million-TEU Pipavav Port it operates.

Another large swath of the funds is expected to be dedicated to the development of a container terminal at India’s largest port project, the $9.1 billion Vadvhan Port. That port will include nine terminals and is expected to handle 23.2 million TEUs per year by 2040, which would make it one of the 10 largest in the world.

Last year, APM Terminals signed a non-binding memorandum of understanding with the Jawaharlal Nehru Port Authority (JNPA) to develop the new terminal at Vadvhan. While Maersk has already earmarked funds for the project, the investment is still contingent upon the company winning a bid to develop the terminal.

Container shipping competitors HMM, CMA CGM and Ocean Network Express (ONE) have also signed memorandums with the JNPA to invest in areas within the megaport.

Maersk’s footprint in India includes two APM Terminals operations in Mumbai and Pipavav that facilitate the throughput of over 3 million containers every year, as well as 26 warehouses spread across 3.8 million square feet. In total, that distribution network reaches more than 80 percent of India’s PIN codes—the country’s equivalent to a U.S. ZIP code.

Chris Cook, Maersk’s managing director for South Asia, told the Economic Times that the company would explore the potential and feasibility of investing in dedicated air freighters and partnerships in the green fuel segment in India.

Over the past year, India’s Prime Minister Narendra Modi has made it a point to catapult the country’s maritime logistics and shipbuilding capabilities as part of larger ambitions for India to become a developed economy by 2047.

The country has set a goal to become a top 10 shipbuilding nation by 2030, with an even loftier expectation to crack the top five upon reaching “developed” status. According to KPMG, India’s potential commercial shipbuilding market could reach $62 billion by 2047.

To generate the capital to realize this vision, India is setting up a 250-billion-rupee ($2.9-billion) maritime development fund for the long-term financing of the country’s shipbuilding and repair industry.

The government will contribute up to 49 percent of the fund, while the rest is expected to come from major port authorities, the private sector, pension funds and other foreign investors.

In line with the maritime fund and the Vadhvan expansion, India is seeking to scale its other national ports.

While Jawaharlal Nehru Port, also known as Nhava Sheva Port, handled container volume of 7.05 million TEUs in 2024, the gateway is looking to expand to handle 10 million TEUs by 2027.

Multiple construction projects are currently taking place at Nhava Sheva, including the second phase of the port’s Bharat Mumbai container terminal. That expansion is expected to add another 2.4 million TEUs to the port’s total capacity. The JNPA is also building out capacity at the Nhava Sheva Freeport Terminal.

And India’s largest container handling hub, Mundra Port, got regulatory approval in June to double capacity to 514 million metric tons. Mundra now has capacity to handle 9.5 million TEUs annually.

The privately owned port’s operator, Adani Ports and Special Economic Zone Limited (APSEZ), is injecting $5.2 billion into the project.