Interview/ Dhruv Kotak, managing director, JM Baxi
PORTS AND ALLIED infrastructure development are at the heart of India's ambitions to become a maritime heavyweight. JM Baxi, one of the leading providers of marine services and ports and logistics, is a driving force behind this change. In an exclusive interview, Dhruv Kotak, managing director of JM Baxi, talks about the future of shipping, the Chinese challenge and how technology is becoming a change agent. Excerpts:
Q/ Shipping is already one of the greenest ways to transport goods. When we talk about making it greener, what are the kind of changes we are looking at?
A/ Shipping is one of the most environmentally efficient modes of transportation because of its low carbon emission per unit of cargo. But it still contributes about 3 per cent of global greenhouse gas emissions. In the last decade, there has been an increase of 20 per cent [in emissions] and projections show that it could increase by up to 130 per cent from the 2008 levels by 2050. So, while it may be the most efficient option for moving goods, calling it “green” doesn’t fully capture the scale of its environmental impact.
From a regulatory perspective, shipping is already undergoing major changes. There is a strong drive towards adopting green fuels, including hydrogen-based fuels like ammonia, direct hydrogen, and even lower-carbon fuels like LNG. Shipping is doing its part with strict IMO regulations, stringent emission norms, eco-focused engine designs and advances in fuel standards, all contributing to a greener industry.
India, for instance, is stepping up by building green hydrogen hubs at various ports. These hubs will play a key role in supporting the global green bunker fuel programme, preparing India to be a major contributor when this shift accelerates globally.
But greening the industry isn’t just about what happens on the ocean―it’s about the entire supply chain, including the first mile and the last mile, which rely heavily on road and rail. By shifting more of these legs to greener energy, like electric rail or low-emission road transport, and focusing on green corridors, we can create significant savings across the whole chain. Warehousing powered by renewable energy, ports using green power sources, and electric road and rail options all contribute to this goal.
Q/ China has become a dominant force in the shipping sector. You have been making a strong case for India becoming an alternative. What are the specific measures we should take to achieve that potential?
A/ To understand China’s dominance in shipping, it is crucial to recognise why it holds that position. China, the world’s factory, is producing and exporting a massive share of global goods. It is also one of the largest consumers of raw materials, whether in the dry bulk, tanker or container trades. It is at the heart of these sectors, largely due to the sheer volume of cargo flows originating there.
China has also invested strategically in highly efficient, forward-looking ports with seamless connectivity―by sea and land―backed by extensive infrastructure. Beyond ports, it has developed a strong ecosystem around shipbuilding, ship repair and container manufacturing, creating an efficient supply chain and logistics network that supports its port operations.
For India to emerge as a competitive alternative, we need a holistic approach. The first step is to focus on developing port-led industrial hubs across various regions. By clustering manufacturing capabilities around ports, India can attract industries that are shifting their supply chains from China. With a well-planned approach, we have an opportunity to establish these hubs with green infrastructure that meets the carbon regulations increasingly required by markets like the US and Europe.
The second key measure is building a strong maritime ecosystem. India should develop capabilities in marine services, shipbuilding, container manufacturing, and ship repair. While we have made strides in port development, scaling this ecosystem is essential to form true maritime clusters. These clusters would allow India to operate at scale and become a robust alternative to China, not only in terms of supply but also in long-term competitiveness and sustainability.
Q/ India is one of the biggest providers in manpower to the shipping industry. It is still an untapped employment opportunity for a country trying to get out of the low-income bracket. What more can we do to make use of this opportunity?
A/ To fully tap into India’s potential in maritime employment, the first step is building strong awareness among young people about the wide range of opportunities in the maritime logistics and supply chain sectors. Many of these careers offer national and international prospects, significant growth potential, and diverse pathways, so creating early exposure to this industry can inspire interest and ambition.
The next step is to develop specialised training programmes beyond those currently available for mariners. We should establish apprenticeship programmes across various disciplines―such as port management, warehouse management and even skilled positions like vehicle operation. Many countries, especially developed ones, face driver shortages. So training Indian drivers for international work could be a valuable solution. Similarly, roles in engineering, mechanical repair and maintenance offer viable entry points and require tailored programmes.
For this, we need robust vocational training initiatives. Entry-level, engineering-focused courses at Industrial Training Institutes could focus on areas like operating, repair and maintenance, while advanced programmes could include specialised marine engineering courses, management training through institutions like the IIMs, and graduate-level programmes in supply chain and trade management. The goal is to create a broad-based system that includes pathways for every skill level.
To succeed, this effort requires close collaboration across various government bodies, including the ministries of labour and employment, education, skill development and entrepreneurship, as well as institutions like Indian Maritime University and DG Shipping. Bringing stakeholders from the private sector to participate in these initiatives―perhaps through advisory roles at educational institutions―will also help align training with industry needs and improve programme relevance. In addition, we need to promote interoperability between disciplines to encourage career flexibility.
Q/ Geopolitical issues apart, what are the big challenges before shipping?
A/ The shipping industry, like many others, faces two significant challenges: the energy transition and the rise of AI.
The ongoing shift to greener fuels and sustainable supply chains is crucial. Shipping is under intense scrutiny to reduce its environmental impact, which makes this transition both a challenge and an opportunity. Companies that adapt swiftly to new, cleaner technologies will gain a long-term competitive edge.
Secondly, AI is poised to transform maritime logistics, which is traditionally documentation- and process-heavy. By streamlining and automating numerous operations, AI offers the potential for major efficiency gains. However, this shift could also lead to significant workforce disruptions. Organisations and individuals that engage with AI early on can avoid redundancy risks and even create new opportunities within the industry. Thus, while AI presents challenges, it also opens doors for those ready to innovate.
Together, the energy transition and AI are reshaping the shipping landscape, urging the industry to adopt forward-looking strategies to stay resilient.