GE Shipping: Govt incentives can be very beneficial for Indian shipping industry: G Shivakumar, GE Shipping

G Shivakumar, Executive Director and CFO of GE Shipping, believes that the Indian shipping industry has a lot of potential for growth. Currently, India only has around 1% of the global shipping fleet, but with the right incentives and policies, the industry can expand.

There is a lot of buzz around potential reforms in the shipping sector in India, with the possibility of launching Maritime India Vision 2030. The focus is on growing the Indian shipping fleet and becoming a hub for shipbuilding and repairs. Developing ports to attract transit traffic is also seen as a good opportunity for the industry.

In terms of repair work and maintenance, India faces challenges due to the lack of a complete ecosystem for ship repair. It is crucial to have the necessary equipment manufacturers and service engineers available to execute ship repair projects efficiently.

While shipping rates have increased significantly in the container segment, rates in other sectors like bulk carriers and tankers have remained relatively stable. GE Shipping has nine ships on charters, with rates higher than previous contracts, indicating a positive trend in rate revisions.

Regarding offshore rigs, contract rates have seen an increase due to market improvements. GE Shipping’s cash flow is strong, allowing them to quickly seize opportunities to buy assets during market downturns. The company maintains a cash balance for liquidity management, investing in debt funds and bank deposits to be prepared for future investments.