Container shipping company Hapag-Lloyd has signed a letter of intent in the field of cooperation with the Government of India under which the company undertakes to carry out the change of flag until a of up to four own ships under the flag to collaborate in the development of a sustainable ecosystem for ship recycling and to invest in the development of infrastructure of the port of Vadhavan in cooperation with the Jawaharlal Nehru Port Authority.

As regards the reflagging of ships, the agreement does not sets specific timelines, nor ship profiles or their ability and precise that any flag transfer will be subject to further discussions, internal evaluations, Business considerations and legal and regulatory requirements applicable. When ship dismantling activities, the cooperation aims to support the development of the capacity of recycling in India in line with European Union regulation on ship recycling, which is currently considered the main international standard. According to forecasts, The envisaged ecosystem could provide the ability to recycling for up to 100 vessels.

Hapag-Lloyd currently has over 2,800 employees in India, distributed in four business units, and 17 offices at the national team. The German company is present in the market port of India through J M Baxi Ports & Logistics, in which it owns about 40% of the capital ( of 19 April 2023).