India is striving to enhance its container transport infrastructure with the support of foreign investment, and A.P. Moller-Maersk has responded by committing five billion dollars to ports, terminals, and logistics platforms. This decision followed discussions between Maersk’s senior executives and Prime Minister Narendra Modi. Central to the plan is the development of container traffic at Pipavav and Vadhavan, aligning with India's goal to rank among the world's top ten maritime nations by 2030 and the top five by 2047.
Maersk has outlined its intention to establish an integrated system encompassing transport, port operations, storage, and distribution. Approximately half of the investment will be allocated to the Pipavav terminal and logistics sector. The facility, located in Gujarat, is set to receive two billion dollars to accommodate next-generation container vessels. However, this portion of the investment is subject to the extension of Maersk’s existing thirty-year port concession, which is due to expire in September 2028.
Apm Terminals, a subsidiary of Maersk, holds a 43.01% stake in Gujarat Pipavav Port and has reaffirmed its commitment by signing a memorandum of understanding with the Gujarat Maritime Board during the Vibrant Gujarat Global Summit. This agreement secures an investment of approximately 400 million dollars for handling capacity expansion. The plan includes the construction of a liquid cargo berth, a container berth, a yard, container handling equipment, and marine infrastructure enhancements.
Another key component of Maersk’s investment plan is the development of a container terminal at the proposed port of Vadhavan in Maharashtra. Located around 150 kilometres north of Mumbai, this government-backed project boasts significant advantages, including a natural twenty-metre draft and direct links to the national highway network and the Dedicated Freight Corridor railway system. Maersk has already signed a memorandum of understanding with the Jawaharlal Nehru Port Authority to develop a container terminal at the new port. While the actual investment will depend on a government bidding process, Maersk has set aside funds for the project and has expressed strong interest in competing for its development.
Beyond port infrastructure, Maersk is expanding its presence in India's logistics sector. The company currently operates 26 logistics hubs covering more than 300,000 square metres and conducts 7,000 weekly rail movements. Christopher Cook, Maersk’s managing director for South Asia, highlighted that logistics has become a key growth segment for the company, with its market presence having significantly increased over the past three to four years, making it one of the top seven service providers.
"We are now looking at expansion into second- and third-tier cities in the coming years," Cook added, outlining a strategy aimed at strengthening Maersk’s presence in underserved regions. The company is also exploring the feasibility of dedicated air freight carriers and partnerships in green fuels in India, although no immediate plans have been announced.
Maersk has also signed agreements in other parts of India, including a memorandum of understanding with the Tamil Nadu government to explore opportunities that support local trade growth. Tamil Nadu is already part of the company’s container transport network through calls at Chennai Port, where Maersk operates warehouses for perishable goods. As part of this agreement, Maersk has committed to investing in an electric truck fleet to reduce the environmental impact of its distribution network.
Alongside investments in port and logistics infrastructure, Maersk is expanding its involvement in India’s shipbuilding industry. The company recently signed a memorandum of understanding with Cochin Shipyard for the repair and construction of its smaller vessels. This agreement aims to assess repair, maintenance, and shipbuilding activities in India, making Maersk the first major shipping company to plan regular maintenance operations in the country.
Maersk’s investments are taking place against a backdrop of strong government support for India’s maritime sector. Finance Minister Nirmala Sitharaman recently announced a 2.9-billion-dollar maritime development fund to provide long-term financing for shipbuilding and repair projects. The government will contribute 49% of the funding, with the remainder coming from ports and private investors. This initiative has attracted not only Maersk but also other major global shipping companies such as MSC and CMA CGM, which are strengthening their presence in India.
Maersk already has a significant footprint in India. Through its terminals in Pipavav and Mumbai, the company handles over three million containers annually, serving as a key gateway for India’s international trade. The Danish firm’s latest investment is set to have a profound impact not only on its own operations but also on India’s broader maritime and logistics sector. By improving efficiency and reducing logistics costs, these investments could enhance India's export competitiveness in global markets while facilitating the import of essential raw materials and finished products to support the country’s rapidly growing economy.
