Cochin Shipyard, Deendayal Port to develop ship repair facility at Vadinar

29 Oct 2024 CW Team

The project involves Deendayal Port Authority constructing the jetty at Vadinar, while Cochin Shipyard will provide a floating dry dock and oversee the operation and maintenance of the ship repair yard. In return, Deendayal Port Authority will receive a fixed share of the revenue from ship repairs, in addition to lease rentals.

Vadinar boasts an environmental clearance for a dry dock and has a natural deep draft of 15-18 m, making it ideal for repairing Capesize vessels, the largest dry bulk carriers. A high-level delegation from Cochin Shipyard, including Chairman and Managing Director Madhu Nair, has expressed interest in the project.

Currently, India lacks a facility capable of dry docking Capesize vessels, a gap that this project aims to fill. The Ministry of Ports, Shipping and Waterways is currently reviewing the Detailed Project Report (DPR) before submitting it to the cabinet for approval, with plans to meet international standards.

India's strategic position along key shipping routes in the Indian Ocean enhances its potential as a hub for ship repair and maintenance. Approximately 7-9% of global trade passes through its coastline, indicating significant opportunities in the ship repair market, projected to grow at an 8-10% CAGR over the next decade.

With increasing global maritime traffic and a need for maintenance of aging fleets, the Indian ship repair and maintenance sector stands to benefit greatly. By improving infrastructure and implementing supportive policies, India aims to establish itself as a major destination for these services. Currently, over 30% of vessels in India's addressable market are serviced by global drydocks due to existing infrastructure limitations.

The Union government has tasked Cochin Shipyard with leading efforts to develop the ship repair cluster in the country.

Cochin Shipyard and Deendayal Port Authority are joining forces to establish a ship repair facility capable of dry docking Capesize vessels at Vadinar, Gujarat, with an investment of approximately Rs 1,600 crore. This collaboration aims to strengthen Cochin Shipyard's position as India’s leading ship repairer, complementing its existing facilities in Kochi, Mumbai, Syama Prasad Mookerjee Port, and Port Blair. The project involves Deendayal Port Authority constructing the jetty at Vadinar, while Cochin Shipyard will provide a floating dry dock and oversee the operation and maintenance of the ship repair yard. In return, Deendayal Port Authority will receive a fixed share of the revenue from ship repairs, in addition to lease rentals. Vadinar boasts an environmental clearance for a dry dock and has a natural deep draft of 15-18 m, making it ideal for repairing Capesize vessels, the largest dry bulk carriers. A high-level delegation from Cochin Shipyard, including Chairman and Managing Director Madhu Nair, has expressed interest in the project. Currently, India lacks a facility capable of dry docking Capesize vessels, a gap that this project aims to fill. The Ministry of Ports, Shipping and Waterways is currently reviewing the Detailed Project Report (DPR) before submitting it to the cabinet for approval, with plans to meet international standards. India's strategic position along key shipping routes in the Indian Ocean enhances its potential as a hub for ship repair and maintenance. Approximately 7-9% of global trade passes through its coastline, indicating significant opportunities in the ship repair market, projected to grow at an 8-10% CAGR over the next decade. With increasing global maritime traffic and a need for maintenance of aging fleets, the Indian ship repair and maintenance sector stands to benefit greatly. By improving infrastructure and implementing supportive policies, India aims to establish itself as a major destination for these services. Currently, over 30% of vessels in India's addressable market are serviced by global drydocks due to existing infrastructure limitations. The Union government has tasked Cochin Shipyard with leading efforts to develop the ship repair cluster in the country.

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