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Transport Corporation of India (TCI) is accelerating its presence in India’s coastal shipping sector through a strategic fleet expansion plan aimed at strengthening multimodal logistics capabilities and capturing growing demand for domestic seaborne cargo movement.
The integrated logistics and supply chain company has initiated the acquisition of new cargo vessels to enhance its coastal seaway operations; a segment increasingly viewed as a cost-effective and sustainable alternative to road transportation. The move aligns with the broader industry trend of leveraging India’s extensive coastline to improve freight efficiency and reduce logistics costs.
According to company executives, TCI has placed orders for two cellular container vessels with a capacity of approximately 7,300 deadweight tonnes (DWT) each. The vessels are expected to be deployed along key routes connecting ports on India’s eastern and western coasts. The company is also exploring opportunities to acquire a second-hand vessel to boost capacity in the near term while awaiting delivery of the new ships.
Industry observers note that coastal shipping in India remains significantly underutilized despite the country’s 7,500-kilometre coastline. A relatively small share of domestic cargo currently moves through coastal waterways, creating substantial room for growth as businesses seek more economical and environmentally friendly transportation solutions.
The fleet expansion comes at a time when demand for coastal cargo movement is gaining momentum, supported by government initiatives promoting multimodal logistics and port-led development. Rising road congestion, increasing fuel costs and the need for lower carbon emissions are encouraging shippers to consider sea transport for long-haul domestic freight.
For TCI, the investment represents a long-term commitment to expanding its marine logistics portfolio. The company already operates a fleet serving coastal container transportation and expects additional vessel capacity to strengthen service reliability and network reach. The new ships are expected to enhance cargo movement between major industrial and consumption centres, supporting sectors such as manufacturing, engineering, consumer goods and automotive logistics.
The company’s seaways business has emerged as an important component of its multimodal strategy, complementing its road, rail and warehousing operations. By increasing fleet capacity, TCI aims to capitalize on the growing shift toward integrated logistics solutions while improving operational efficiencies for customers.
As India pursues its goal of lowering logistics costs and enhancing supply chain resilience, investments in coastal shipping infrastructure and fleet modernization are expected to play a crucial role. TCI’s latest vessel acquisition plan reflects growing confidence in the sector’s long-term potential and underscores the increasing importance of maritime transport in the country’s evolving logistics landscape.
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Gujarat government has introduced a shipbuilding subsidy of up to ₹50 crore for shipyards operating within the state. The initiative is designed to complement the Centre’s Shipbuilding Financial Assistance Scheme and enhance Gujarat’s position as a leading maritime and shipbuilding destination. Under the newly announced incentive framework, shipyards can claim financial assistance equivalent to 8% of eligible project costs or ₹50 crore, whichever is lower, for the construction of small and large vessels. For specialised vessels, the subsidy has been enhanced to 10% of eligible costs, capped at ₹50 crore. The support is expected to improve project viability and encourage greater investment in domestic shipbuilding activities. The policy aligns with India’s broader ambition of developing a globally competitive maritime industry and reducing dependence on imported vessels. By offering an additional layer of financial support, Gujarat aims to attract both private and institutional investments into shipbuilding and ship repair infrastructure. Industry stakeholders believe the move could help improve order inflows, increase production capacity, and create new employment opportunities across the maritime value chain. Gujarat already plays a pivotal role in India’s maritime economy, supported by an extensive coastline, established port infrastructure, and a strong industrial base. The state has also been actively promoting the development of shipbuilding and repair clusters in strategic locations such as the Gulf of Kutch and Pipavav. The latest subsidy is expected to accelerate the creation of modern shipyard facilities, including dry docks, fabrication units, jetties, cranes, dredging infrastructure, and research and training centres. The announcement comes at a time when both the central and state governments are intensifying efforts to expand India’s maritime capabilities. Recent national initiatives have focused on increasing shipbuilding capacity, enhancing technological competitiveness, and supporting long-term growth in the sector. Gujarat’s latest intervention is expected to complement these efforts while strengthening the state’s position as a preferred destination for maritime investments. As global supply chains continue to diversify and demand for maritime assets grows, the subsidy could provide a timely boost to India’s shipbuilding industry. Analysts believe the policy will not only support local manufacturing but also contribute to the country’s ambition of emerging as a major global maritime hub in the coming decades. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
India’s maritime regulator has outlined an eight-pillar roadmap aimed at steering the country’s shipping sector toward net-zero emissions, with a focus on cleaner fuels, sustainable port operations, green financing, workforce development and environmentally responsible ship recycling. Speaking on World Ocean Day, Director General of Shipping Shyam Jagannathan said the framework is designed to support the decarbonisation of a sector that handles the vast majority of India’s international trade while aligning with the country’s long-term economic and environmental objectives. The roadmap forms part of the Directorate General of Shipping’s National Maritime Decarbonisation Policy Framework and centres on five broad themes: green shipping and ports, sustainable ship recycling, green finance and technology, human capital development, and waste management. On ship recycling, India intends to align its practices with the standards of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Authorities also plan to expand the use of digital platforms and improve access to capital for green maritime projects. The roadmap places significant emphasis on workforce development. India currently accounts for around 16.5% of the global seafaring workforce, and policymakers aim to increase that share beyond 20% over time through training and skill development initiatives. Jagannathan linked the maritime transition agenda to the government’s broader Viksit Bharat 2047 vision, highlighting the growing importance of the blue economy. He noted that maritime and ocean-based sectors contribute roughly 4% of India’s GDP and are expected to play a larger role in supporting long-term economic growth. Beyond shipping, the strategy identifies opportunities in cruise tourism, coastal shipping, aquaculture, marine biotechnology and deep-sea resource development. India’s coastline, stretching approximately 11,000 kilometres, is expected to remain central to these growth plans. The policy push is also accompanied by a wider legislative agenda. Proposed reforms include amendments to the Merchant Shipping Act, a new Coastal Shipping Act focused on domestic maritime transport and feeder services, and changes to the Indian Ports Act aimed at encouraging greater private-sector participation and modern port governance models. Addressing environmental concerns, Jagannathan stressed the need to tackle pollution entering marine ecosystems through rivers, including microplastics, untreated sewage and industrial discharge. He reiterated India’s commitment to global climate and ocean sustainability goals while calling for transparent international funding mechanisms that support developing economies during the maritime energy transition. Follow CARGOCONNECT for more such updates.
Kerala is positioning itself to become a major maritime and logistics gateway for India by accelerating investments in ports, coastal shipping, fisheries, logistics infrastructure and other ocean-linked industries under its blue economy strategy. The state government believes its extensive coastline, port network and maritime assets can support long-term economic growth while creating new opportunities in trade, transportation and employment. Kerala has nearly 600 kilometres of coastline, one major port at Kochi and 17 non-major ports, providing a foundation for expanding maritime activity across the state. A key focus of the strategy is strengthening port-led development through the modernization of existing facilities and the operationalisation of smaller ports, including Kollam, Beypore and Azhikkal. Authorities are also working to improve customs and cargo-handling capabilities to facilitate export-import (EXIM) trade and enhance coastal shipping connectivity. The initiative extends beyond ports and shipping. The state has identified sectors such as fisheries, aquaculture, seafood processing, marine research, shipbuilding, cold-chain logistics and coastal tourism as growth areas capable of attracting investment and generating employment. Recent efforts to attract international participation have also supported the state's maritime ambitions. The Kerala-European Union Blue Economy Conclave attracted investment proposals worth ₹7,288 crore from 28 European investors through expressions of interest, reflecting growing interest in Kerala's ocean-based industries and maritime infrastructure projects. Industry observers view the development of coastal shipping and integrated port infrastructure as critical to reducing logistics costs, improving cargo movement efficiency and strengthening Kerala's role in regional and international maritime trade. With continued investment in maritime infrastructure and ocean-based industries, Kerala is seeking to transform its coastline into a key driver of economic growth and establish itself as a strategic gateway for India's expanding blue economy. Follow CARGOCONNECT for more such updates.
