In the last two months, ship leasing services in GIFT City have picked up steam with the number of ships leased from this enclave in Gujarat having doubled during the July-August 2024 period, said officials.
Ship leasing began in GIFT City in June 2023, after MV Ripley Pride, a bulk carrier, became the first ship to be leased by Ripley Shipping India IFSC Pvt Ltd. However, by the end of June 2024, only six ships were leased from GIFT City in the last one year. However, by the end of August 2024, the numbers have doubled to 12, said officials at International Financial Services Authority (IFSCA) without divulging numbers of leases made by 16 lessors that have set up ship leasing entities in GIFT City.
While Shipping Corporation of India was the latest entity to open a ship leasing entity in GIFT City, applications are now starting to pour in. According to official data, Seaquest Marine IFSC Pvt Ltd has in September sought permission to carry on business of operating leases of voyage charters. Midas Global Marine and Transworld Sea-connect IFSC Pvt Ltd are among the other entities who have either applied or are in the process of opening their respective ship leasing units in GIFT City.
This year alone, Japan’s Mitsui OSK, Poseidon Leasing IFSC Ltd and Reliance Industries Ltd are some of the companies that have opened ship leasing entities in GIFT City. “Ship leasing and aircraft leasing are two business segments that were non-existent in India four years ago. Today, these segments are growing and have started to create ripples in the global ship leasing market,” said an IFSCA official.
As of April 2024, the global ship leasing market was estimated at $15 billion. The North American region inclusive of the US , Canada and Mexico dominates the ship leasing market, occupying 38 per cent of the market share. Europe and Asia Pacific region occupies 30 and 24 per cent of the market.
Aircraft leasing
Along with shipleasing, aircraft leasing from GIFT City too has gained impetus. Compared to the 134 aircraft assets leased at the end of June 2024, the number of leased aviation assets have risen by 15 per cent to 154 which includes 37 aircraft and helicopters, 48 aircraft engines and the remaining ground support equipment. Currently, there are 30 aircraft lessors operational in GIFT City.