India set to get mega shipyards

In 2010 a milestone will be completed by the Indian maritime industry when it is expected to join a league of nations that possess the expertise to build and repair ships up to 300,000 dwt. Currently, Indian yards can build up to 110,000 dwt vessels.

The shipping ministry has received ‘Expressions of Interest’ (EOI) from nine companies, both Indian and foreign, to set up a shipyard of international standards on the eastern coast. A similar yard is planned on the western coast for which Mumbai Port Trust has been appointed as the nodal agency. According to officials from the Ennore Port, which is the nodal agency for the proposed yard on the eastern coast, two foreign companies and seven Indian firms have evinced interest in constructing the yard which may cost anywhere between $730 million and $2.4 billion.

The foreign companies include STH shipyard from Korea and McNulty Offshore Construction company of UK. From India, Larsen & Toubro (L&T), Afcons, Essar Construction, Apeejay group, Goodearth Maritime, ABG Shipyard and IMC are in the race. Most of the local companies are planning to rope in partners for the yard. For instance Essar Constructions is planning to partner with a Russian company, Apeejay Shipping is joining hands with Bharati Shipyard and IMC is talking to its Singapore and Dubai partners.

With a coastline that stretches over 7,000 kilometres, barely 10% of the ships owned by Indian companies are built in India. As against this, China has 60 shipyards and is currently building the world’s largest one near Shanghai.