India Needs Adequate Containers to Benefit From Investments

india shipping container industryThrough a number of Public Private Partnership agreements, the Indian government has secured billions in foreign investment dollars, to help the country make much-needed improvements to shipping ports and infrastructure. As a result of a number of commitments and investments in 2013, India’s container shipping industry is about to experience exponential growth, and benefit from an upward trend that will continue over the next five years. Because it can be expected that there will be an increase in the number of cargo containers needed to accommodate growth in the sector, this will have a positive effect on the container leasing industry.

Over the course of the next half a decade, India’s shipping ports and terminals will undergo and complete projects that will accommodate larger shipping vessels and introduce equipment and technology that can handle more cargo containers. To effectively utilize India’s investments and ensure the steady flow of import/export traffic in the country, there is a need to invest in shipping containers, as well. The fact of the matter is that all of the continued investment in container ships, cranes and infrastructure, rely heavily upon a dependable supply of containers, leased or otherwise; to provide benefit to the country’s struggling economy.

Aside from the fact that India’s shipping facilities must meet certain criteria (dredging, infrastructure, etc.) to host post-panamax vessels, if the Ultra Large Container Ship Mary Maersk were to arrive at one of the country’s major ports with (hypothetically) 13,000+ TEUs of imported cargo, ideally she would like to depart with at least that many exported shipping containers. This illustrates the importance of not only making shipping port investments to encourage/accommodate growth, but also maintaining an appropriately-sized pool of cargo containers (leased or otherwise) to meet the increasing demands of India’s businesses and consumers, as well as the shipping industry’s leaders.