Posted on October 30, 2024
MUMBAI: Cochin Shipyard Ltd and Deendayal Port Authority, both state-owned, will team up to build a ship repair facility capable of dry docking Capesize vessels at Vadinar in Gujarat with an investment of some Rs1,600 crores, multiple sources said.
The project will help Cochin Shipyard further establish its credentials as the country’s top ship repairer, adding to the facilities it runs at the flagship yard in Kochi, the newly opened international ship repair facility at Cochin Port as well as repair units at Mumbai Port, Syama Prasad Mookerjee Port and Port Blair.
According to plans, Deendayal Port Authority, the state-owned entity which runs the port at Kandla in Gujarat, will construct the jetty at Vadinar, one of its satellite facilities, while Cochin Shipyard will pitch in with a floating dry dock, operate and maintain the ship repair yard. Deendayal Port Authority will get a fixed share of revenue from ship repairs apart from lease rentals from the project, a government official briefed on the plan said.
“Vadinar already has environmental clearance for a dry dock and also has a deep draft. By default, a 15-18 metres draft is available without dredging at Vadinar. It is ideal for building a facility that can repair even Capesize vessels, attracting interest from Cochin Shipyard,” the government official said.
A high-level team from Cochin Shipyard, comprising its Chairman and Managing Director Madhu Nair, had visited Vadinar and evinced interest in setting up a ship repair unit there.
Currently, India does not have a ship repair facility that can dry dock Capesize vessels – the largest of the dry bulk cargo carrying ships.
The Ministry of Ports, Shipping and Waterways is scrutinising the Detailed Project Report (DPR) on the facility ahead of taking it to the cabinet for approval.
“The plan is to do it per international standards,” the government official said.
India’s strategic geographical location along major shipping routes in the Indian Ocean makes it an ideal hub for ship repair and maintenance activities. India enjoys a strategic location on the global shipping routes – around 7-9 percent of the global trade is facilitated through 300 nautical miles of the coastline and hence has huge potential for becoming a major global ship repair and maintenance hub.
The Indian ship repair and maintenance market is estimated to grow at 8-10 percent CAGR over the next decade.
Opportunities for growth in the Indian ship repair and maintenance industry are substantial, given the increasing global maritime traffic and the need for regular maintenance of aging fleets.
By leveraging its strategic location, enhancing infrastructure, and implementing supportive policies, India aims to position itself as a leading destination for ship repair and maintenance services. Except for a few major shipyards, most of the other yards have a limited ship repair and maintenance ecosystem and supporting market infrastructure to capture market potential.
Currently, it is estimated that more than 30 percent of vessels within India’s addressable market are being serviced by other global drydocks, due to constraints in infrastructure and turnaround time.
The Union government has entrusted Cochin Shipyard with the task of leading the ship repair cluster development efforts in the country.
