A high-level Indian delegation visited HD Hyundai Heavy Industries (HD HHI)’ shipyard in Ulsan, South Korea, on Dec. 3, marking a significant step in fostering bilateral cooperation in shipbuilding. The delegation, coined the “Indian Shipbuilding Delegation,” comprised key figures including R. Lakshmanan, Joint Secretary of India’s Ministry of Ports, Shipping, and Waterways; Shri Madhu Nair, Chairman and Managing Director of Cochin Shipyard; and Binesh Kumar Tyagi, Chairman and Managing Director of the Shipping Corporation of India (SCI). They were guided by Cho Min-su, Vice President and Head of the shipbuilding business division at the shipbuilding company.
Their visit was the first of its kind in nearly a decade, following Indian Prime Minister Narendra Modi’s 2015 trip to South Korea. During the visit, the delegation toured HD HHI’s expansive docks and land yards, which have the capacity to construct up to 50 large-scale vessels annually. They also received a detailed briefing on the shipyard’s advanced technologies, including its eco-friendly shipbuilding processes. A delegation representative reportedly emphasized the urgent need for India to acquire a diverse fleet of vessels on a large scale to address its growing maritime demands.
Central to the visit was the objective of acquiring 1,000 new commercial vessels, including containerships, liquefied natural gas (LNG) carriers, ultra-large crude carriers (ULCCs), and car carriers. To further these ambitions, the delegation also visited Hanwha Ocean and Samsung Heavy Industries (SHI), completing a comprehensive tour of South Korea’s “Big Three” shipyards.
India has set ambitious goals to advance its shipbuilding industry, which currently represents less than 1% of the global market. The country has unveiled a strategic roadmap targeting a global top-10 rank in shipbuilding by 2030, with aspirations to enter the top five by 2047.
India’s efforts to bolster its maritime capabilities align with South Korea’s position as a global leader in shipbuilding. South Korea’s shipyards are recognized for their cutting-edge technology and robust infrastructure, making them key partners in India’s shipbuilding aspirations. The Modi administration’s strategy mirrors a similar initiative by U.S. President-elect Donald Trump last month, which emphasized South Korea’s leadership in ship and warship construction and called for closer collaboration.
India’s reliance on maritime trade highlights the urgency of strengthening its domestic shipbuilding sector. With 95% of its trade volume transported by sea, India spends approximately 110 trillion won ($75.4 billion) annually leasing foreign-owned ships. This figure is expected to rise sharply to 500 trillion won ($342.53 billion) by 2047 as trade volumes grow. Despite having 28 domestic shipyards, most are limited to producing small and medium-sized vessels, such as ferries, and lack the capacity to construct large-scale commercial ships.
The U.S. is grappling with a critical challenge in naval power, a key factor in its ongoing maritime dominance rivalry with China in the South China Sea and beyond. The decline of its domestic shipbuilding infrastructure has led to repair times stretching to several months for essential assets like submarines. The U.S. naval Maintenance, Repair, and Overhaul (MRO) market alone is estimated to be worth approximately 20 trillion won ($13.7 billion) annually.
South Korea, having endured a prolonged industry downturn in the 2010s, has reemerged as a global powerhouse in shipbuilding. Since its inception in the 1970s, South Korea’s shipbuilding industry has experienced rapid growth, surpassing Japanese and European competitors by the late 1990s. While China now leads in production volume, South Korea remains dominant in high-value markets, particularly LNG carriers and eco-friendly dual-fuel technologies. Strategic hubs like Busan, Ulsan, and Geoje have fostered a robust industrial ecosystem, allowing the country to maintain its technological edge. Despite challenges from China’s aggressive pricing and Japan’s restructuring efforts, South Korea’s focus on specialized, high-value ship types has solidified its competitive advantage.
South Korea’s shipbuilding expertise spans a wide range of sectors, including vessels for transporting energy resources, containerships, and naval ships. Its LNG carriers, regarded as the gold standard in the industry, have gained prominence amid heightened energy security concerns following the Russia-Ukraine war.
Source: The Chosun Daily
