DP World has acquired the Indian-flagged feeder container ship SSL Krishna from Transworld Shipping Lines Ltd for about $11.9 million (₹110 crore), in a move that signals a broader push to build an owned fleet for India’s coastal and feeder trade.
The 2,490 TEU-capacity vessel, built in 2002, is among 10 Indian-flagged feeder ships owned by the Mumbai-listed Transworld Shipping Lines (TSLL), formerly Shreyas Shipping & Logistics Ltd. Industry sources indicate that DP World, through its shipping solutions arm, is evaluating additional acquisitions of Indian-flagged vessels from Transworld and other owners.
The purchase is being executed via Avana Logistek Ltd, which has been operating Transworld’s ships under long-term charter since a 2021 transaction. In that deal, Dubai-based Transworld Group sold its stake in Avana Logistek and Transworld Feeders Pvt Ltd to DP World’s shipping solutions business (earlier known as Unifeeder), while retaining vessel ownership and bulk operations.
“Avana has been operating the Transworld ships on long-term charter after the 2021 deal. Now it is acquiring vessels one by one and will own and operate them, while also scouting for ships from other owners,” an industry official said. “It is effectively transitioning into a ship-owning company.”
A spokesperson for DP World confirmed that the acquisition aligns with its long-term fleet strategy to maintain a balanced mix of owned and chartered tonnage.
The ownership transfer of SSL Krishna is currently undergoing re-registration with India’s maritime regulator, the Directorate General of Shipping. The process has been delayed as the vessel remains at Jebel Ali Port.
Bet on India’s cabotage-driven opportunity
DP World’s move comes ahead of the government’s decision to withdraw the cabotage waiver for foreign-flagged container ships from October 21. Under India’s cabotage laws, coastal shipping is reserved for Indian-flagged vessels, with foreign ships allowed only when local capacity is unavailable.
With the waiver ending, global carriers are repositioning to capture India’s coastal and EXIM feeder markets by increasing Indian-flag presence. CMA CGM and Maersk have already re-flagged vessels to India, while Mediterranean Shipping Company has announced plans to convert a dozen ships. Hapag-Lloyd has also committed to registering four vessels in India.
DP World, already a major investor in India’s port sector with operations across key ports including Jawaharlal Nehru Port, Mundra Port, Cochin Port and Chennai Port, is now strengthening its shipping vertical to integrate port and feeder operations.
The company is also developing a 2.19 million TEU container terminal at Tuna Tekra in Deendayal Port, with an investment of ₹4,243.64 crore. Scheduled for commissioning in 2027, the facility will feature a 1,100-metre berth capable of handling next-generation vessels exceeding 18,000 TEUs.
Steady cash flows for Transworld, but risks remain
For Transworld Shipping Lines, the long-term free carrier agreement (FCA) with Avana has ensured stable revenue visibility and cash flows. According to CRISIL Ratings Ltd, the arrangement provides insulation from cargo volume risks, as Avana deploys the entire container fleet.
However, TSLL remains exposed to broader shipping cycle volatility, including fluctuations in charter rates driven by trade demand, vessel supply and container availability. CRISIL has placed the company’s long-term bank facilities under “Rating Watch with Developing Implications,” citing geopolitical risks, including ongoing tensions in the Middle East.
Three TSLL vessels—SSL Kaveri, SSL Krishna and SSL Godavari—have been deployed in the region, with SSL Kaveri currently stranded at Jebel Ali, impacting operations.
The latest acquisition underscores a structural shift in India’s maritime ecosystem, where global operators are moving beyond port ownership to fleet control, positioning themselves to capitalise on regulatory changes and the growing domestic coastal shipping market.
