Mazagon Dock kicks off production for Navi Merchants Denmark in $86m deal

In a significant development for the global shipping industry, Mazagon Dock Shipbuilders Ltd., a Navratna Defence Public Sector Undertaking (DPSU) based in Mumbai, has officially begun production on a new fleet of multipurpose cargo vessels. These ships are being built under a deal with Navi Merchants, Denmark, valued at approximately $86.05 million (Rs 700 crore). The project, which involves the construction of six ships with an option for four more, is a major milestone for the shipbuilder, signalling its growing international footprint in shipbuilding innovation.

The official commencement of the project was marked by the Plate Cutting Ceremony at Mazagon Dock Shipbuilders’ shipyard in Mumbai on 24 September 2024. Simon Christensen, CEO of Navi Merchants, along with Sanjeev Singhal, Chairman and Managing Director of Mazagon Dock Shipbuilders, officiated the ceremony by cutting the first steel plate for the vessel. Senior officials from both companies attended, highlighting the importance of this project to both Mazagon Dock Shipbuilders and Navi Merchants.

Six hybrid vessels to redefine cargo transport

Mazagon Dock Shipbuilders has secured a contract to design and construct six multipurpose vessels, each with a capacity of 7,500 deadweight tonnes (DWT). The ships are equipped with advanced hybrid propulsion systems, designed to meet rigorous global environmental standards. The vessels, which will be classified under Det Norske Veritas (DNV), will feature cutting-edge hybrid technology, combining conventional diesel engines with electrical energy storage systems. The ships are being built to Ice Class 1B specifications, which allows them to navigate in icy waters.

Each vessel will be powered by a medium-speed diesel engine with controllable pitch and will include battery storage systems to further reduce emissions. These ships are designed for unrestricted global operations, ensuring they meet the latest international maritime safety and environmental regulations.

Mazagon Dock Shipbuilders’ contract with Navi Merchants also highlights its growing capacity to deliver high-tech vessels that meet stringent requirements. The company has already built a reputation for manufacturing complex ships, including submarines and warships, for the Indian Navy, and now it is expanding its portfolio to meet the needs of international clients like Navi Merchants.

Versatility at sea: multipurpose cargo capabilities

The hybrid cargo vessels are not just environmentally friendly but are also designed for versatility. These ships will be able to carry a wide variety of cargo, including dry bulk, project cargo, containers, steel products, general cargo, forest products, and even dangerous goods. The flexible nature of the vessels will enable them to meet the diverse needs of the shipping industry, catering to clients in different sectors with varying cargo requirements.

The first of these hybrid vessels is scheduled for delivery in April 2026, with production activities now in full swing following the Plate Cutting Ceremony. The remaining ships are expected to follow in subsequent years, gradually enhancing Navi Merchants’ fleet of advanced cargo vessels.

Expert opinion: hybrid ships lead a green revolution

The global maritime industry is undergoing a transformation as pressure mounts to reduce emissions and adopt greener technologies. Shipping, which accounts for a significant portion of global carbon emissions, has been under increasing scrutiny by environmental regulators. Hybrid propulsion technology, like that being employed by Mazagon Dock Shipbuilders, is a key part of this revolution.

Shipbuilding expert Rajesh Nair notes that hybrid propulsion systems are not just a passing trend but a necessity for the future of shipping. “The maritime industry needs to adapt to meet global environmental standards, and hybrid vessels are the way forward. They reduce fuel consumption, lower emissions, and offer operational flexibility that traditional ships simply can’t match,” Nair explains.

The ships built for Navi Merchants will place both the shipping company and Mazagon Dock Shipbuilders at the forefront of sustainable shipping technology. These vessels will meet DNV Class notation for battery safety, marking another significant achievement for the shipyard as it embraces the challenge of sustainable development in maritime transport.

H2: The future of global shipping

This contract is a step toward a more sustainable and technologically advanced maritime industry. Mazagon Dock Shipbuilders’ ability to secure such contracts not only demonstrates its growing technical expertise but also its commitment to producing high-quality, environmentally friendly vessels. Navi Merchants, Denmark, will be one of the early adopters of this cutting-edge technology, ensuring that its fleet remains competitive in an increasingly environmentally conscious world.

The collaboration between Mazagon Dock Shipbuilders and Navi Merchants represents a forward-thinking approach to global shipping challenges, offering a glimpse into the future of cargo transportation.