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India’s maritime financing landscape is poised for a significant milestone as Sagarmala Finance Corporation Limited (SMFCL) is set to launch the country’s first-ever blue bond, marking a new chapter in sustainable financing for the maritime and coastal infrastructure sectors.
The proposed issuance is expected to raise up to ₹1,000 crore, including a greenshoe option of ₹500 crore, according to company officials. The initiative is aimed at diversifying funding sources while supporting projects linked to ports, coastal infrastructure, inland waterways and other ocean-based economic activities. The move also aligns with India’s broader vision of strengthening the blue economy through environmentally responsible investments.
Blue bonds are a specialised category of debt instruments designed to finance projects that promote the sustainable use of marine and water resources. While green bonds have gained considerable traction globally in recent years, blue bonds remain a relatively niche segment of the sustainable finance market. According to World Bank estimates, global blue bond issuances crossed $15 billion by mid-2025, highlighting growing investor interest in ocean-focused development initiatives.
For SMFCL, the proposed bond issue represents more than just a fundraising exercise. The maritime-focused non-banking financial company is seeking to secure longer-tenure funding to better match the duration of the loans it extends to infrastructure projects. Industry estimates indicate that while the company’s existing borrowings carry an average tenor of around 3.5 years, the loans it disburses typically extend to nearly 12 years. The blue bond is therefore expected to help reduce asset-liability mismatches and strengthen the institution’s long-term lending capabilities.
Established under the Ministry of Ports, Shipping and Waterways, SMFCL has emerged as India’s first dedicated maritime-sector NBFC. Since commencing lending operations, the institution has focused on addressing financing gaps across strategic maritime segments, including port development, shipbuilding, logistics infrastructure and coastal connectivity projects. The company received its NBFC licence in 2025 and has since positioned itself as a key financial enabler for India’s port-led development strategy.
The upcoming blue bond issue is expected to complement the company’s broader capital-raising plans. SMFCL has previously indicated its intention to mobilise as much as ₹10,000 crore during FY27 through a combination of bonds, term loans and overseas borrowings to support the expansion of India’s maritime ecosystem. Funding will be channelled towards greenfield and brownfield port projects, shipbuilding facilities, inland waterways, multimodal logistics networks and last-mile connectivity infrastructure.
Industry experts view the proposed issuance as a potential catalyst for the development of India’s blue finance market. If successful, the bond could pave the way for other infrastructure and financial institutions to tap sustainable debt instruments dedicated to marine conservation and ocean-linked economic growth, reinforcing India’s ambitions to become a leading maritime nation while advancing environmental stewardship.
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Transport Corporation of India (TCI) is accelerating its presence in India’s coastal shipping sector through a strategic fleet expansion plan aimed at strengthening multimodal logistics capabilities and capturing growing demand for domestic seaborne cargo movement. The integrated logistics and supply chain company has initiated the acquisition of new cargo vessels to enhance its coastal seaway operations; a segment increasingly viewed as a cost-effective and sustainable alternative to road transportation. The move aligns with the broader industry trend of leveraging India’s extensive coastline to improve freight efficiency and reduce logistics costs. According to company executives, TCI has placed orders for two cellular container vessels with a capacity of approximately 7,300 deadweight tonnes (DWT) each. The vessels are expected to be deployed along key routes connecting ports on India’s eastern and western coasts. The company is also exploring opportunities to acquire a second-hand vessel to boost capacity in the near term while awaiting delivery of the new ships. Industry observers note that coastal shipping in India remains significantly underutilized despite the country’s 7,500-kilometre coastline. A relatively small share of domestic cargo currently moves through coastal waterways, creating substantial room for growth as businesses seek more economical and environmentally friendly transportation solutions. The fleet expansion comes at a time when demand for coastal cargo movement is gaining momentum, supported by government initiatives promoting multimodal logistics and port-led development. Rising road congestion, increasing fuel costs and the need for lower carbon emissions are encouraging shippers to consider sea transport for long-haul domestic freight. For TCI, the investment represents a long-term commitment to expanding its marine logistics portfolio. The company already operates a fleet serving coastal container transportation and expects additional vessel capacity to strengthen service reliability and network reach. The new ships are expected to enhance cargo movement between major industrial and consumption centres, supporting sectors such as manufacturing, engineering, consumer goods and automotive logistics. The company’s seaways business has emerged as an important component of its multimodal strategy, complementing its road, rail and warehousing operations. By increasing fleet capacity, TCI aims to capitalize on the growing shift toward integrated logistics solutions while improving operational efficiencies for customers. As India pursues its goal of lowering logistics costs and enhancing supply chain resilience, investments in coastal shipping infrastructure and fleet modernization are expected to play a crucial role. TCI’s latest vessel acquisition plan reflects growing confidence in the sector’s long-term potential and underscores the increasing importance of maritime transport in the country’s evolving logistics landscape. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 https://cargoconnect.co.in/ 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
The Jalna Dry Port in Maharashtra has received its first trial container rake, marking a key operational milestone for the inland logistics facility and strengthening hopes for improved multimodal cargo connectivity in the Marathwada region. The trial movement is seen as an important step toward commissioning full-scale rail-based cargo operations at the dry port, which has been developed as a multi-modal logistics park near the Delhi-Mumbai Industrial Corridor (DMIC). The facility is expected to serve industries across Jalna and neighbouring districts by providing direct access to containerised export-import logistics infrastructure. Developed under a joint initiative involving the Jawaharlal Nehru Port Authority (JNPA) and National Highways Logistics Management Ltd, the project is designed to reduce dependence on distant seaports for cargo aggregation and customs processing. The arrival of the first rake demonstrates readiness of the rail connectivity and container handling systems that are central to the project’s logistics model. Industry stakeholders in the region have long viewed the Jalna facility as a critical infrastructure project for sectors such as steel, agriculture and manufacturing. By enabling inland customs clearance and rail evacuation of cargo, the dry port is expected to lower transportation costs and shorten transit times for exporters from the Marathwada belt. The project had faced delays in operational rollout over the past few months due to pending approvals and administrative clearances, including issues related to taxation and regulatory documentation. However, recent developments, including customs port designation and the successful trial rake movement, indicate progress toward commercial operations. Spread across nearly 400 acres, the Jalna Dry Port has been planned as an inland cargo hub with container yards, warehousing facilities and multimodal transport infrastructure. Authorities expect the project to improve logistics efficiency for central Maharashtra while easing cargo movement toward western gateway ports such as JNPA. Follow CARGOCONNECT for more such updates.
COSCO Shipping Lines has resumed its direct SKX1 shuttle service between Singapore and Kolkata, restoring a key maritime link connecting eastern India with Southeast Asian transshipment hubs after the route was suspended last year. The revived service will operate with a 900-TEU vessel on the Singapore–Kolkata sector. In addition to deploying its own vessel, COSCO has also entered a slot-sharing arrangement with Bengal Tiger Line and X-Press Feeders on the same trade lane to increase sailing frequency and improve cargo flexibility. Both services will be marketed under the SKX1 network. The move is expected to improve connectivity for exporters and importers in eastern India, particularly those moving manufactured goods, engineering products, chemicals and consumer cargo through Kolkata. Singapore remains one of the region’s largest transshipment hubs, providing onward connections to Southeast Asia, China and global trade routes. Industry analysts say the reopening of the corridor reflects growing demand for direct feeder connectivity between Indian ports and major Asian hubs as carriers look to optimise regional networks and reduce transit delays. The service also comes at a time when ports in eastern India are reporting rising cargo volumes and increased container movement. For COSCO, the reinstatement of the SKX1 service strengthens its presence in the Bay of Bengal trade corridor and expands options for shippers seeking alternatives to longer transshipment routes through competing regional hubs. Follow CARGOCONNECT for more such updates.
