Mitsui OSK lines opens talks with Cochin Shipyard on vessel construction

Japan’s Mitsui OSK Lines (MOL), one of the world’s largest shipowners, has begun discussions with Indian shipyards, including Cochin Shipyard Ltd, as part of its strategy to diversify vessel sourcing beyond China, Korea, and Japan. The move comes as MOL explores India’s potential as a future shipbuilding hub.

In the initial phase, MOL is considering sourcing medium-range (MR) carriers from India. These vessels, widely used for transporting refined petroleum products, typically have a capacity of around 50,000 deadweight tonnes (DWT) and are deployed on both intercontinental and regional routes. Over time, the company may expand its sourcing to more specialised vessels as India’s ecosystem matures.

Currently, India’s contribution to global shipbuilding is under 1 per cent, compared with China’s 40 per cent, Korea’s 30 per cent, and Japan’s 20 per cent. While construction costs in India are higher—approximately $70 million with a delivery timeline of 24 months, compared to $50–52 million and 18 months in China and Korea—industry sources suggest government support could help bridge the gap.

MOL, which operates a fleet of 935 vessels across tankers, bulk carriers, and car carriers, ranks as the world’s second-largest shipping company. Of its fleet, 13 ships are Indian-flagged, making MOL the fourth-largest player in India.

On India’s role in its global strategy, Jayaraman, a senior MOL executive, noted that the company aims to hedge its supply chain by considering India as an alternative sourcing base. He added that future deployment of new vessels in the country would depend on customer demand. In parallel, MOL is also looking to expand its logistics business in India, with openness to joint ventures.