Shipyard to expand with Rs 500 crore investment

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Kochi: The Public sector Cochin Shipyard Ltd is proposing to expand its existing capacity through a shiplift system with an investment of Rs 500 crore, a top official today said.

The new system is likely to come up at the northern end of the CSL estate and would be 120 metre long and able to accommodate ships up to 6,000 tonnes, CSL Chairman and Managing Director, Commodore K Subramaniam, told reporters here.

The project is likely to be taken up by next year. The shipyard has two drydocks. One of the docks is being used for the construction of the Indigenous Aircraft carrier of the Indian Navy and the other is used for ship building and ship repair. Once the shiplift system gets completed it is likely to ease the congestion in the drydock.

At present, the yard has orders for 34 ships consisting 14 Offshore Platform vessels for domestic and international owners and 20 Fast Patrol vessels for the Coast Guard totally valued at Rs 4,000 crore.

On India's first Indigenous Aircraft carrier being built at the CSL for the Navy, he said it is to be 'floated out' in December last year. But due to various reasons, it could not take place and will be floated out this year end, he said.

CSL is hoping to get more orders from the Indian Navy very soon,he said.

Recession did have an impact on the shipyard as it did not receive any orders from 2008 to September 2010. After Sept 2010, the yard received orders for 24 ships of the 34 ships.

The effect of recession will be felt this year and the next year. "We had a very good growth in the last 5 years. That will not be there this year and the next year. But our performance would not be affected." he said.

The shipyard's shipbuilding income increased to Rs 1,012 crore in 2009-10 from Rs 222 crore in 2005-06.

CSL has been diversifying into new areas of construction and repairs over the last few years and had successfully completed two major ship conversion projects, one for a Singapore based owner and the other for National Institute for Oceanography , Goa. The former was a conversion of a fishing vessel to research vessel and the latter was a conversion of fishing vessel to a seismic survey one.

Shipyard to expand with Rs 500 crore investment - The Economic Times

 

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Does anybody knows that MDL is looking for a second naval shipyard in Gujrat for building warship ?????
Read this....

GMB accord priority to develop Marine Shipbuilding Parks at Dahej & Bhavnagar

Gujarat Maritime Board (GMB) today said it will accord priority to develop Marine Shipbuilding Parks (MSPs) at Dahej and Bhavnagar in Gujarat, out of the five identified here, a GMB official said here today.

"Gujarat aims at a share of 3 million Dead Weight Tonnage (DWT) of the national target of 5 million DWT in the shipbuilding arena. Priority will be accorded to cluster-based development of two MSPs proposed to come up at Dahej and Bhavnagar," GMB Vice Chairman and CEO Pankaj Kumar said.

Five locations were identified along the coast of Gujarat in May this year to be developed as a MSP, of which layout plans for the parks at Dahej and Bhavanagar have been prepared, he said.

As per the 11th Five Year Plan, India''s target is to build annual tonnage of 5 million DWT.

"Central PSU Mazagon Dock is likely to set up a shipyard at one of the proposed MSP's in Gujarat for building war ships, at an investment of Rs 1,000 crore," another GMB official said.

The locations for the five MSPs are North bank of Narmada river in Dahej region, Old Bhavnagar port area, coastline in Bhavnagar district in the Gulf of Cambay, coastline between Navlakhi to Jodiya in Jamnagar and area near Mandvi in the Gulf of Kutch.

The forecast for new shipbuilding requirement up to 2015 is nearly 1000 million DWT. The share of India in the global order book is close to 1.12 per cent, a GMB official said.

GMB to accord priority to develop MSPs at Dahej, Bhavnagar -  Business News - News - MSN India

 

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Cochin Shipyard forges ahead through rough weather

March 13, 2011:
The public sector Cochin Shipyard Ltd is proposing to expand capacity by setting up a ship-lift system at an investment of Rs 500 crore. The new system, to be set up at the northern end of the premises, will be 120 metres long and can accommodate ships of up to 6,000 tonnes. The project is likely to be operational by next year, Commodore K. Subramaniam, Chairman and Managing Director, Cochin Shipyard Ltd, said.

The ship lift facility will ease congestion in the shipyard's drydocks. The yard has two drydocks. One of the docks is being used for the construction of the indigenous aircraft carrier of the Navy and the other is used for shipbuilding and ship repair, he said.

Cochin Shipyard (CSL) also has orders for 34 ships ? 14 offshore platform vessels for domestic and international owners, and 20 fast-patrol vessels for the coast guard, valued at Rs 4,000 crore. Mr Subramaniam said India's first indigenous aircraft carrier was to be floated out December last year. But due to various reasons, the ship will be ready to sail only by this year-end.

Taking a hit

The Commodore pointed out that recession had an impact on the shipyard as it did not receive any orders from 2008 to September 2010. After September 2010, the yard received orders for 24 ships ? out of the 34 orders it has now. The effect of recession will be felt this year and next year. The company had good growth in the last five years, though this situation may change this year and the next. But the company's performance will not be affected, he said.

The yard, said the Managing Director, faces harsh competitive environment. Shipbuilding and ship repair orders are secured on the basis of international, competitive bidding. A disparity in the tax structure with foreign countries make it difficult for Indian yards to survive in this competitive world.

Profit

Referring to the expansion plans, Commodore Subramaniam said the yard is looking at the proposed Vizhinjam International Port project in a big way and the company has already set up a bollard pull test facility there to test the pulling capacity of anchor handling tugs of up to 500 tonnes.

The growth of CSL has been phenomenal as shipbuilding income rose to Rs 1,012 crore in 2009-10 from Rs 222 crore in 2005-06. The turnover has tripled during the same period. The net profit increased by 12 times during the period to touch Rs 223 crore.

The authorised capital and paid-up capital of the company is Rs 250 crore and Rs 192 crore respectively as of today.

The yard has reached full capacity utilisation in the last few years. In order to sustain the growth rates, the company needs to invest immediately in new facilities and to continually innovate, he said.

The vision is to emerge as a leading shipbuilding and ship-repair yard globally. CSL has been diversifying into construction and repairs over the last few years. It has completed two major ship conversion projects ? one for a Singapore-based owner and the other for National Institute for Oceanography, Goa.

The former order was for a conversion of a fishing vessel to a research ship and the latter was for conversion of a fishing vessel to a seismic survey vessel.

The main factors for CSL achieving stellar performance in the last five years was the adoption of the right product mix, catering to an international clientele and entering the Defence sector by taking up the prestigious aircraft carrier project.

Products in shipbuilding range from double hull tankers, bulk carriers to port crafts, offshore supply vessels, passenger ships, dredgers and tugs.

The yard moved into the international market in a modest way by building a barge for National Petroleum Construction Company, Abu Dhabi, in 2002. Since then, CSL has built and delivered 35 ships for owners in Bahamas, Norway, the Netherlands, Greece, the US and Saudi Arabia.

Repair expertise

The company entered into the ship repair business in 1982. It has gained expertise in complex and sophisticated repairs to various types of ships.

The company's main clients in ship repair are ONGC, Indian Navy, Coast Guard, SCI and Lakshadweep Administration.

CSL is one of the modern shipyards in India. With two drydocks ? 255x43x9 m and 270x45x12 m ? it is one among the very few yards that can build up to 1,10,000 DWT and repair vessels up to 1,25,000 DWT.

At present, only CSL is capable of undertaking repairs and maintenance of large vessels of Indian Navy such as the INS Viraat. The company has also undertaken repairs and upgrade work of ONGC's jack-up rigs and mobile offshore drilling unit ships, which are of strategic importance.

Business Line : Industry & Economy / Logistics : Cochin Shipyard forges ahead through rough weather