Shipyards: left high and dry
Corporate Bureau
India’s international trade, a majority of which is handled by sea ports and shipping, has seen a rapid growth over last few years, resulting in a substantial rise in total cargo handled by the major ports of the country.
However, a large percentage of India’s overseas trade is carried by foreign companies. The shipbuilding industry, once a proof-of-concept for national self-reliance, has long since slipped off its position and is now sputtering due to lack of shipyards in the country.
At present, there are 32 shipyards, including seven government-owned companies, engaged in shipbuilding and ship repairs in India. The Cochin Shipyard is the only yard in the country that has the capacity to build and repair large ocean-going ships.
However, the capacity will also be increased to handle VLCCs with the smaller Aframax tankers constituting only a minor proportion of the demand.
Looking at the prospects of the Indian shipbuilding industry, analysts say cost competitiveness remains a significant advantage for the domestic shipbuilding industry considering the two major parameters like steel fabrication and labour.
The government has also extended the shipbuilding subsidy scheme for Central Public Sector Shipyards till 2007. On the other hand, the government identified the areas for building new areas with private parties for shipbuilding and ship repair. The government is also going to set up ship repair facility at the existing port areas for building and repairing hi-tech vessels of oil tankers and container-cum-cargo vessels.
Meanwhile, to build more shipyards in the country, the government has also decided to provide facilities at par with 100% export oriented units for ship repairing industry along with 30% subsidy for Indian shipyards from governments for both domestic and exports orders on ocean going vessels.
On the other hand, private companies think that the public sector is low on profits and volumes and subsidies have been extended to the private sector in 2002 but that’s more on paper.
The shipping ministry, under its national maritime development programme, estimated that an outlay of Rs 2,800 crore would be required for upgrading the existing shipyards in the public sector over the next 10 years, while the private shipyards would need an investment of Rs 1,200 crore.
India's Shipping Sector
Other articles, besides the two posted immediately above from Financial Express' FE Special of Oct 25 2006 on the Shipping Sector :
Fleet expansion could raise the anchor on struggling industry
LNG business set to tame breakers
Industry facing manpower crunch, tax disparities
Fleet expansion could raise the anchor on struggling industry
LNG business set to tame breakers
Industry facing manpower crunch, tax disparities
India plans transhipment port at Great Nicobar
PORT BLAIR (Reuters) - India has shortlisted 10 firms to study the feasibility for a transhipment port in the Great Nicobar Island that will help cut down time and distance for cargo traffic headed for ports on the mainland, an official said.
Such a port would obviate the need for ships to unload at Sri Lanka's Colombo port for onward shipment and offer an alternative on Indian territory itself, Chief Engineer K. Shekar at Andaman Lakshadweep Harbour Works (ALHW) told Reuters.
It would also contribute to the rebuilding of the Andaman Archipelago hit by the Dec. 2004 tsunami, he said.
"Once it is finalised, the selected firm will conduct a techno-economic feasibility study, which is estimated to take one year," Shekar said. ALHW is the supervising authority for the project.
http://www.ndtvprofit.com/homepage/news.asp?id=271812
PORT BLAIR (Reuters) - India has shortlisted 10 firms to study the feasibility for a transhipment port in the Great Nicobar Island that will help cut down time and distance for cargo traffic headed for ports on the mainland, an official said.
Such a port would obviate the need for ships to unload at Sri Lanka's Colombo port for onward shipment and offer an alternative on Indian territory itself, Chief Engineer K. Shekar at Andaman Lakshadweep Harbour Works (ALHW) told Reuters.
It would also contribute to the rebuilding of the Andaman Archipelago hit by the Dec. 2004 tsunami, he said.
"Once it is finalised, the selected firm will conduct a techno-economic feasibility study, which is estimated to take one year," Shekar said. ALHW is the supervising authority for the project.
http://www.ndtvprofit.com/homepage/news.asp?id=271812
L&T seeks SEZ status for Kakinada unit
HYDERABAD: Having identified Kakinada as the location for its ship building unit, engineering and construction conglomerate Larsen & Toubro Limited is now pushing for Special Economic Zone (SEZ) status for its unit on the grounds that it would be also catering to the defence requirements of the country.
In this connection, L&T chairman and MD, AM Naik, met Union minister of state for defence, Pallam Raju, in New Delhi on Monday, highly placed sources told TOI. Apart from being the defence minister, Raju also represents the Kakinada Lok Sabha constituency.
The shipping giant's arguments for its Kakinada unit getting SEZ status is that the public sector Hindustan Shipyard Limited being in the red, the L&T unit would play a key role in defence production. This being so, a SEZ status would take away bureaucratic and other hurdles and ensure uninterrupted production, Naik told the minister.
Kakinada has been identified for the development of a ship building unit in the east coast under the National Maritime Development Programme which proposed to develop two international standard shipyards in the east and west coasts. "Though the principal objective would be meeting the defence requirements, the L&T unit will be a multipurpose one including building LNG and oil carriers, survey ships, and offshore and multi-support vessels," said a source in the ministry.
In addition to the SEZ status, issues ranging from acquisition of land, investment details, etc, were discussed at the meeting, he added.
"As the company is planning a fabrication facility, it needs over 600 acres of land for the project. It has submitted investment details to the Centre and state governments and the project will be wrapped up by 2010," said the source.
HYDERABAD: Having identified Kakinada as the location for its ship building unit, engineering and construction conglomerate Larsen & Toubro Limited is now pushing for Special Economic Zone (SEZ) status for its unit on the grounds that it would be also catering to the defence requirements of the country.
In this connection, L&T chairman and MD, AM Naik, met Union minister of state for defence, Pallam Raju, in New Delhi on Monday, highly placed sources told TOI. Apart from being the defence minister, Raju also represents the Kakinada Lok Sabha constituency.
The shipping giant's arguments for its Kakinada unit getting SEZ status is that the public sector Hindustan Shipyard Limited being in the red, the L&T unit would play a key role in defence production. This being so, a SEZ status would take away bureaucratic and other hurdles and ensure uninterrupted production, Naik told the minister.
Kakinada has been identified for the development of a ship building unit in the east coast under the National Maritime Development Programme which proposed to develop two international standard shipyards in the east and west coasts. "Though the principal objective would be meeting the defence requirements, the L&T unit will be a multipurpose one including building LNG and oil carriers, survey ships, and offshore and multi-support vessels," said a source in the ministry.
In addition to the SEZ status, issues ranging from acquisition of land, investment details, etc, were discussed at the meeting, he added.
"As the company is planning a fabrication facility, it needs over 600 acres of land for the project. It has submitted investment details to the Centre and state governments and the project will be wrapped up by 2010," said the source.
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International shipping bureau office in Kochi
Kochi Jan. 21 The International Shipping Bureau has opened its first office in India at Kakkanad in Kochi. The Managing Director of Kerala State Inland Navigation Corporation (KSINC), Mr K.N. Satheesh, inaugurated the Kochi office.
ISB has been operating in the diverse fields of marine survey, vessel registration, ship classification, naval architecture, quality training, marine consultancy services and seafarers' licence at the global level, a press release issued here has said.
ISB, which has its headquarters in New Orleans, USA, has offices strategically located in major maritime hubs and cities in over 140 countries across the world.
Its global network includes operations in UAE, China, Syria, Egypt, Cyprus, Greece, Panama and Russia. It imparts services to ships under various flags involved in a wide range of operations.
ISB specialises in advising and managing the tasks that ship owners, agents, shipbuilders, offshore rig operators, marine bankers, marine insurance underwriters, and shipping attorneys face in matters of buying, installing, managing, maintaining, insuring and mortgaging of ships or maritime equipment.
ISB representatives travel widely to provide needy services to its customers across the world. It also offers its services in marine insurance, cargo checking, naval ships consultancy, non-destructive experiments, ship management services, contracts and marine education.
Kochi Jan. 21 The International Shipping Bureau has opened its first office in India at Kakkanad in Kochi. The Managing Director of Kerala State Inland Navigation Corporation (KSINC), Mr K.N. Satheesh, inaugurated the Kochi office.
ISB has been operating in the diverse fields of marine survey, vessel registration, ship classification, naval architecture, quality training, marine consultancy services and seafarers' licence at the global level, a press release issued here has said.
ISB, which has its headquarters in New Orleans, USA, has offices strategically located in major maritime hubs and cities in over 140 countries across the world.
Its global network includes operations in UAE, China, Syria, Egypt, Cyprus, Greece, Panama and Russia. It imparts services to ships under various flags involved in a wide range of operations.
ISB specialises in advising and managing the tasks that ship owners, agents, shipbuilders, offshore rig operators, marine bankers, marine insurance underwriters, and shipping attorneys face in matters of buying, installing, managing, maintaining, insuring and mortgaging of ships or maritime equipment.
ISB representatives travel widely to provide needy services to its customers across the world. It also offers its services in marine insurance, cargo checking, naval ships consultancy, non-destructive experiments, ship management services, contracts and marine education.
Ship-building: India's next star industry.
India has got mu-ch of the global outsourcing business for services, but very little for labour-intensive manufacturing.
Two major culprits are inflexible labour laws and the continuing reservation of many items for manufacture by small-scale industries. However, i see signs of one major labour-intensive industry shifting from Western countries and East Asia to India. This is ship-building and ship-repair.
With little fanfare, several corporations are building huge shipyards across the coast of India, from Kutch to West Bengal. Ship-building consists mainly of riveting of steel plates to form a vessel, followed by internal fittings. This cannot be done on an assembly line by robots. It has to be done manually by skilled welders and fitters.
Ship-repairing is even more labour-intensive and skill-intensive. Every repair job requires individual analysis and customised solutions. It involves less material and far more labour than ship-building.
India is well placed to supply cheap skilled labour that can compete with the best in the world. Yet, for decades ship-building has languished despite massive subsidies.
Why? Because, historically, the big shipyards — civilian and military — were inefficient public sector monopolies. A few private sector shipyards were licensed, but only for small vessels.
However, with the abolition of industrial licensing in the 1990s, new shipbuilders like Bharti Shipyard and ABG Shipyard came up. They faced difficult times when the Asian financial crisis led to the collapse of demand for ships. But the regional and world economy recovered sharply after 2003, and the demand for ships is now booming.
This has encouraged several companies to take the plunge and embark on construction of big shipyards, some of which will be world-scale.
ABG has set up a major shipyard costing Rs 1,600 crore at Dahej, Gujarat, and is flooded with orders worth over Rs 1,300 crore. It will build up to 25 ships a year, making it a major Asian player.
Sea King, owned by Nikhil Gandhi, is setting up a shipyard at Pipavav, Gujarat, to build ships of up to 300,000 deadweight tonnage (dwt), almost thrice as large as the biggest ships built by the government's Cochin shipyard. It is far cheaper to transport oil to deep-water Indian refineries using big tankers. Gandhi claims that his Pipavav Shipyard will be among the ten biggest in the world. It has bagged two advance orders worth $720 million to manufacture ships for Z Schifenbau of Germany and B F Shipping of Cyprus.
Takeover specialist PK Ruia, who in recent years has taken over Jessops, Dunlop, and Falcon Tyres, now proposes a mammoth shipyard at Haldia costing over Rs 3,000 crore. It will be among the biggest in the world, building 12 ships a year of Panamax size (the maximum size that can go thro-ugh the Panama Canal). The project will include ship-breaking and ship-repair units, as well as a mini-steel plant and captive power plant. It will employ as many as 16,000 workers, more than major auto manufacturers such as Tata Motors and Bajaj Auto.
The Adani group is setting up a Rs 1,000-crore shipyard at Mundra in Kutch, adjacent to its new deep-water port there. This can be expanded to rival the Pipavav shipyard.
Tata Steel plans a shipyard at its new coast-based plant in Orissa. Steel sheets and plates from its steel plant can go directly by conveyor belt to the shipyard, saving time and transport costs. Tata Steel has just formed a joint shipping line with NYK of Japan, and the shipyard will be a link between its steel and shipping business.
A major new development is the decision of the ministry of defence to source the bulk of its annual spending (around Rs 13,000 crore) from the private sector. This has been the main spur for L&T to expand its shipbuilding business, which includes warships. It is already building parts of submarines and soon plans to build entire submarines (DDM ??). Other private sector defence suppliers include the Tatas and Mahindras, both of whom could conceivably get into naval vessels and equipment.
Indian business is convinced that India has a major comparative advantage in ship-building that has been masked all these years by an inefficient public sector notorious for high costs and time overruns. The labour cost per worker in India is estimated at $1,192 per year, against $10,743 and $21,317 per worker in leading shipbuilding countries like South Korea and Singapore. Apart from skilled welders and fitters, India has world-class naval engineers and architects. These, along with top-class management, can make India a global power.
Ship-building was dominated by Europe and North America in the 19th and early 20th centuries. In the '60s Japan's cheap skills enabled it to become the top ship-builder. Soon afterwards South Korea , Taiwan and Singapore emerged as major builders. However, all these have now become high-income countries. So, ship-building is shifting to China.
Logically, it should shift to India too. China and India have the skills and cheap steel to make the best, cheapest ships.
India has got mu-ch of the global outsourcing business for services, but very little for labour-intensive manufacturing.
Two major culprits are inflexible labour laws and the continuing reservation of many items for manufacture by small-scale industries. However, i see signs of one major labour-intensive industry shifting from Western countries and East Asia to India. This is ship-building and ship-repair.
With little fanfare, several corporations are building huge shipyards across the coast of India, from Kutch to West Bengal. Ship-building consists mainly of riveting of steel plates to form a vessel, followed by internal fittings. This cannot be done on an assembly line by robots. It has to be done manually by skilled welders and fitters.
Ship-repairing is even more labour-intensive and skill-intensive. Every repair job requires individual analysis and customised solutions. It involves less material and far more labour than ship-building.
India is well placed to supply cheap skilled labour that can compete with the best in the world. Yet, for decades ship-building has languished despite massive subsidies.
Why? Because, historically, the big shipyards — civilian and military — were inefficient public sector monopolies. A few private sector shipyards were licensed, but only for small vessels.
However, with the abolition of industrial licensing in the 1990s, new shipbuilders like Bharti Shipyard and ABG Shipyard came up. They faced difficult times when the Asian financial crisis led to the collapse of demand for ships. But the regional and world economy recovered sharply after 2003, and the demand for ships is now booming.
This has encouraged several companies to take the plunge and embark on construction of big shipyards, some of which will be world-scale.
ABG has set up a major shipyard costing Rs 1,600 crore at Dahej, Gujarat, and is flooded with orders worth over Rs 1,300 crore. It will build up to 25 ships a year, making it a major Asian player.
Sea King, owned by Nikhil Gandhi, is setting up a shipyard at Pipavav, Gujarat, to build ships of up to 300,000 deadweight tonnage (dwt), almost thrice as large as the biggest ships built by the government's Cochin shipyard. It is far cheaper to transport oil to deep-water Indian refineries using big tankers. Gandhi claims that his Pipavav Shipyard will be among the ten biggest in the world. It has bagged two advance orders worth $720 million to manufacture ships for Z Schifenbau of Germany and B F Shipping of Cyprus.
Takeover specialist PK Ruia, who in recent years has taken over Jessops, Dunlop, and Falcon Tyres, now proposes a mammoth shipyard at Haldia costing over Rs 3,000 crore. It will be among the biggest in the world, building 12 ships a year of Panamax size (the maximum size that can go thro-ugh the Panama Canal). The project will include ship-breaking and ship-repair units, as well as a mini-steel plant and captive power plant. It will employ as many as 16,000 workers, more than major auto manufacturers such as Tata Motors and Bajaj Auto.
The Adani group is setting up a Rs 1,000-crore shipyard at Mundra in Kutch, adjacent to its new deep-water port there. This can be expanded to rival the Pipavav shipyard.
Tata Steel plans a shipyard at its new coast-based plant in Orissa. Steel sheets and plates from its steel plant can go directly by conveyor belt to the shipyard, saving time and transport costs. Tata Steel has just formed a joint shipping line with NYK of Japan, and the shipyard will be a link between its steel and shipping business.
A major new development is the decision of the ministry of defence to source the bulk of its annual spending (around Rs 13,000 crore) from the private sector. This has been the main spur for L&T to expand its shipbuilding business, which includes warships. It is already building parts of submarines and soon plans to build entire submarines (DDM ??). Other private sector defence suppliers include the Tatas and Mahindras, both of whom could conceivably get into naval vessels and equipment.
Indian business is convinced that India has a major comparative advantage in ship-building that has been masked all these years by an inefficient public sector notorious for high costs and time overruns. The labour cost per worker in India is estimated at $1,192 per year, against $10,743 and $21,317 per worker in leading shipbuilding countries like South Korea and Singapore. Apart from skilled welders and fitters, India has world-class naval engineers and architects. These, along with top-class management, can make India a global power.
Ship-building was dominated by Europe and North America in the 19th and early 20th centuries. In the '60s Japan's cheap skills enabled it to become the top ship-builder. Soon afterwards South Korea , Taiwan and Singapore emerged as major builders. However, all these have now become high-income countries. So, ship-building is shifting to China.
Logically, it should shift to India too. China and India have the skills and cheap steel to make the best, cheapest ships.
Major news in the sector
Bharati buys out UK shipyard major Swan
[quote]Bharati Shipyard, the country’s second-largest private sector ship-builder, is understood to have acquired the UK-based Swan Hunter Shipyard for an undisclosed amount.
“The entire machinery and equipment from Swan Hunter will be dismantled and brought to India over six months to be re-built at Bharati’s shipyards,â€
Bharati buys out UK shipyard major Swan
[quote]Bharati Shipyard, the country’s second-largest private sector ship-builder, is understood to have acquired the UK-based Swan Hunter Shipyard for an undisclosed amount.
“The entire machinery and equipment from Swan Hunter will be dismantled and brought to India over six months to be re-built at Bharati’s shipyards,â€
L&T plans Rs 1,500cr hi-tech shipyard
Press Trust of India / Mumbai April 11, 2007
Larsen & Toubro plans to set up a major state-of-the-art ship building yard at a cost of Rs 1,500 crore.
The new greenfield ship building yard would come up on a 1,000-acre area and have capability to make all types of ships, including high tech designs like CNG, LNG carriers and containers upto 3 lakh dead weight tonnes (DWT), MV Kotwal, senior vice-president, L&T said.
"We will announce the details of the project in one or two months," a top company official told PTI, adding the company has identified three locations in Tamil Nadu, Andhra Pradesh and Gujarat, of which one would be selected.
L&T is already into ship building at Hazira, Gujarat, but the area there is not adequate for expansion and for making large ships.
Though India has 28 ship building yards, none of them have the capability to manufacture high tech or sophisticated ships. The largest ships built in the country are of 45,000 DWT.
The L&T shipyard would have the capability of manufacturing any type of ship, including frigates and destroyers for the Navy and Coast Guard.
The three locations identified are Chennai, Kakinada and Mundhra and the project, once finalised in the next few weeks, will be commissioned by 2009-2010.
L&T has chosen the right person for the job!shyamd wrote: The new greenfield ship building yard would come up on a 1,000-acre area and have capability to make all types of ships, including high tech designs like CNG, LNG carriers and containers upto 3 lakh dead weight tonnes (DWT), MV Kotwal, senior vice-president, L&T said.
I am sure L&T's spokesman for their submarine building venture would be Inder Neel Singh Chakra.[quote="shyamd"][url=http://www.business-standard.com/common ... tono=22284]L&T plans Rs 1,500cr hi-tech shipyard[/url]
[quote]Press Trust of India / Mumbai April 11, 2007
Larsen & Toubro plans to set up a major state-of-the-art ship building yard at a cost of Rs 1,500 crore.
The new greenfield ship building yard would come up on a 1,000-acre area and have capability to make all types of ships, including high tech designs like CNG, LNG carriers and containers upto 3 lakh dead weight tonnes (DWT), MV Kotwal, senior vice-president, L&T said.
[/quote][/quote]
What is CNG?
As for LNG, only a few countries have the technology to build this kind of ship, S Korea, Japan, China which is building her first LNG now and will be delivered late this year, plus one or two European countries.
[quote]Press Trust of India / Mumbai April 11, 2007
Larsen & Toubro plans to set up a major state-of-the-art ship building yard at a cost of Rs 1,500 crore.
The new greenfield ship building yard would come up on a 1,000-acre area and have capability to make all types of ships, including high tech designs like CNG, LNG carriers and containers upto 3 lakh dead weight tonnes (DWT), MV Kotwal, senior vice-president, L&T said.
[/quote][/quote]
What is CNG?
As for LNG, only a few countries have the technology to build this kind of ship, S Korea, Japan, China which is building her first LNG now and will be delivered late this year, plus one or two European countries.
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Rishirishi
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[url=http://www.thehindubusinessline.com/bus ... 111501.htm]L&T to set up Rs 1,500 cr high-tech ship building yard/url]
MUMBAI: Engineering firm Larsen & Toubro (L&T) will be the first company to set up a major state-of-the-art ship building yard at a cost of Rs 1,500 crore.
"We will announce the details of the project in one or two months,'' a top company official told PTI, adding that the company has identified three locations in Tamil Nadu, Andhra Pradesh and Gujarat, of which one would be selected.
L&T is already into shipbuilding at Hazira, Gujarat, but the area there is not adequate for expansion and for making large ships.
The new greenfield Rs 1,500-crore ship building yard would come up on a 1,000-acre area and have capability to make all types of ships, including high tech such as CNG, LNG carriers and containers up to 3 lakh dead weight tonnes (DWT), L&T Senior Vice-Pr esident, Mr MV Kotwal said.
Though India has 28 ship building yards, the largest ship built in the country are 45,000 DWT in Kochi Shipyard and none of them have the capability to manufacture high tech or sophisticated ships.
The L&T shipyard would have the capability of manufacturing any type of ship, including Frigates and Destroyers for Navy and Coast Guard.
The three locations identified are Chennai, Kakinada and Mundhra and the project, once finalised in the next few weeks, will be commissioned by 2009-2010. - PTI
MUMBAI: Engineering firm Larsen & Toubro (L&T) will be the first company to set up a major state-of-the-art ship building yard at a cost of Rs 1,500 crore.
"We will announce the details of the project in one or two months,'' a top company official told PTI, adding that the company has identified three locations in Tamil Nadu, Andhra Pradesh and Gujarat, of which one would be selected.
L&T is already into shipbuilding at Hazira, Gujarat, but the area there is not adequate for expansion and for making large ships.
The new greenfield Rs 1,500-crore ship building yard would come up on a 1,000-acre area and have capability to make all types of ships, including high tech such as CNG, LNG carriers and containers up to 3 lakh dead weight tonnes (DWT), L&T Senior Vice-Pr esident, Mr MV Kotwal said.
Though India has 28 ship building yards, the largest ship built in the country are 45,000 DWT in Kochi Shipyard and none of them have the capability to manufacture high tech or sophisticated ships.
The L&T shipyard would have the capability of manufacturing any type of ship, including Frigates and Destroyers for Navy and Coast Guard.
The three locations identified are Chennai, Kakinada and Mundhra and the project, once finalised in the next few weeks, will be commissioned by 2009-2010. - PTI
Not DDM. There have been persistent rumours that the Amurs (or whichever other sub is selected for the second submarine line) will be built by L&T. Makes sense as Mazgaon already has its hands full manufacturing Scorpenes.Vipul wrote:Ship-building: India's next star industry.
This has been the main spur for L&T to expand its shipbuilding business, which includes warships. It is already building parts of submarines and soon plans to build entire submarines (DDM ??).
Re. L&T's greenfield shipbuilding project for defense shipbuilding, I think it is a bad idea to locate it in Gujarat, so close to the Paki border. Chennai and Kakinada are far more suitable from this POV. It is not that Gujarat will lose out much as several big shipyards for commercial vessels are coming up on Gujarat coast.
JMHO
Yup, let it be Kakinada.Re. L&T's greenfield shipbuilding project for defense shipbuilding, I think it is a bad idea to locate it in Gujarat, so close to the Paki border. Chennai and Kakinada are far more suitable from this POV. It is not that Gujarat will lose out much as several big shipyards for commercial vessels are coming up on Gujarat coast.
Coupled with Reliance's gas finds close by and hence its gas terminals as well, Kakinada can become a viable, large urban industrial hub.
Jai Andhra!
Bloody DDM's. Cochin Shipyard can make ships upto 110000 DWT and has built a few 95K tonne ships. While HSL can built upto 70000 DWT.Vipul wrote:
Though India has 28 ship building yards, the largest ship built in the country are 45,000 DWT in Kochi Shipyard and none of them have the capability to manufacture high tech or sophisticated ships.
India can be shipyard to the world
Steel, main engine and major equipment together account for over 60 per cent of the cost of a vessel and for ships built for India, almost all of these have to be imported.
Bharati Shipyard plans to build bigger ships
Link
Link
MUMBAI: Bharati Shipyard, now under construction at Mangalore, proposed to create facility for building ships upto one lakh tonnes capacity instead of the original plan for fabricating upto 60,000 tonnes capacity ships.
"We have asked our consultants to do the feasibility study whether it is possible to build 1 lakh DWT (deadweight tonne) of ships there," Bharati Shipyard Managing Director PC Kapoor told media.
The company had raised Rs 450 crore through FCCBs for the shipyard. If its consultants say it is possible to build a bigger shipyard, then its investments would go up by 40 per cent. The proposed shipbuilding yard is in an SEZ in which Karnataka government is also a partner. The yard is being built in 90 acres of land.
As per the plan, the shipyard is expected to be ready by the middle of 2009. However the production would begin by 2008, Kapoor said.
Having a shipyard in a SEZ is beneficial to the company in many ways. First the input that are being bought in are not taxed. Second for the first five years, the company would get a tax holiday. In the next five years only 50 per cent of the income is taxable, he said.
Bharati would bring in the plants and machinery of UK-based Swan Hunter, which it acquired recently for an undiclosed amount. The assets of Swan Hunter is being moved to India and the majority of them would go to the Managalore shipbuilding yard of Bharati.
"We expect at least two years to integrate Swan Hunter into our businesses," Kapoor said. Swan Hunter officials decided to sell the plant because of the high cost of labour in the UK, Kapoor said. Giving an idea about the cost of labour in UK, Kapoor said Bharati is paying lots of money to foreign workers to help it to dismantle the equipment of Swan Hunter to bring it to India.
"We are paying between 25-27 pounds per hour for a lower grade worker. Whereas in India, the same worker would get 6 pounds for eight hours," he said. The Bharati officials also know that their proposal to increase the capacity at Mangalore may run into difficulty.
"There are limitations of area and draft. The water level comes to five and a half metres at high tide," Kapoor said. Second, though the government is sympathetic towards shipbuilding industry nothing has materialised so far.
The government announced the policy of giving 30 per cent subsidy to shipbuilding yards in August 2002, but it is yet to be cleared. "Indian ship building cannot progress without government subsidy or incentives," he said.
Bharati Shipyard was started in 1973 by two IITians. Now it has three yards - Ratnagiri, Ghod Bunder (Thane) and Zorinho (Goa). Ratnagiri yard specialises in the making of offshore supply vessels. The hull (body) for these offshore vessels are made at Ghod Bunder. At Zorinho, 15,000 DWT vessels are made.
Mercator Lines mulls new shipyard in Palghar.
After a mega deal for acquiring four dry bulk vessels with an investment of Rs 1,000 crore in the dry bulk shipping vessels sector last month, Mercator Lines Ltd is likely to build up a shipyard in Palghar in Maharashtra.
According to sources close to the development, the company recently bought 400 acre of land in Palghar to build a shipyard mostly banking on foreign orders. Sources also added that the company is likely to invest around Rs 1,000 crore to build this shipyard.
When contacted, HK Miittal, chairman and managing director, Mercator Lines Ltd said that the company is yet to look into into any such plans. However, the company successfully raised $51 million by way of issue of convertible bonds, which were listed on the Singapore Stock Exchange last month.
During the past 12 months, the Mercator group has committed to invest about Rs 2,750 crore in the expansion of its fleet and offshore business with a consolidated fleet of 27 vessels with total capacity of about 2.45 million tonne.
According to a Mumbai based shipping analyst, “Companies are focusing on the potential for the offshore business market including OSVs and Jack up rigs. In this tight situation, any new shipyard in the country would be in a favourable position.â€
After a mega deal for acquiring four dry bulk vessels with an investment of Rs 1,000 crore in the dry bulk shipping vessels sector last month, Mercator Lines Ltd is likely to build up a shipyard in Palghar in Maharashtra.
According to sources close to the development, the company recently bought 400 acre of land in Palghar to build a shipyard mostly banking on foreign orders. Sources also added that the company is likely to invest around Rs 1,000 crore to build this shipyard.
When contacted, HK Miittal, chairman and managing director, Mercator Lines Ltd said that the company is yet to look into into any such plans. However, the company successfully raised $51 million by way of issue of convertible bonds, which were listed on the Singapore Stock Exchange last month.
During the past 12 months, the Mercator group has committed to invest about Rs 2,750 crore in the expansion of its fleet and offshore business with a consolidated fleet of 27 vessels with total capacity of about 2.45 million tonne.
According to a Mumbai based shipping analyst, “Companies are focusing on the potential for the offshore business market including OSVs and Jack up rigs. In this tight situation, any new shipyard in the country would be in a favourable position.â€
Shipyard cranes to move to India
The shipyard cranes famous for mapping the skyline along the River Tyne in Newcastle are being dismantled and sent to India
Videocon to set up 1600 Cr Port.
The Videocon group, which is into consumer electronics and oil and gas, is planning to foray into port development.
Videocon, which is developing two special economic zones (SEZs) in Pune and Aurangabad, has firmed up plans to develop a minor port in Alewadi in Thane for Rs 1,600 crore. Sources said Videocon was in talks with the Maharashtra government in this regard.
Videocon Industries Chairman and Managing Director Venugopal Dhoot said, “As of now, there are no such plans and we are not bidding for Alewadi port.â€
The Videocon group, which is into consumer electronics and oil and gas, is planning to foray into port development.
Videocon, which is developing two special economic zones (SEZs) in Pune and Aurangabad, has firmed up plans to develop a minor port in Alewadi in Thane for Rs 1,600 crore. Sources said Videocon was in talks with the Maharashtra government in this regard.
Videocon Industries Chairman and Managing Director Venugopal Dhoot said, “As of now, there are no such plans and we are not bidding for Alewadi port.â€
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pradeepe
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Just saw this.vsudhir wrote:Yup, let it be Kakinada.Re. L&T's greenfield shipbuilding project for defense shipbuilding, I think it is a bad idea to locate it in Gujarat, so close to the Paki border. Chennai and Kakinada are far more suitable from this POV. It is not that Gujarat will lose out much as several big shipyards for commercial vessels are coming up on Gujarat coast.
Coupled with Reliance's gas finds close by and hence its gas terminals as well, Kakinada can become a viable, large urban industrial hub.
Jai Andhra!
I think there is a gas pipeline running all the way from Kakinada/Rajahmundry in AP to Gujarat. Possibly for the Godavari basin ONGC terminals to Gujarat.
Also heard about a LNG terminal proposal for Kakinada a while ago.
Smooth-sailing minor ports veering towards major league (IE)
I know, just semantics but giving an accurate drill-down picture is Writing 101 for journos, I thought.
Here's how the DDM lens distorts the field of vision. Sample this.NEW DELHI, JULY 11: India's key ports like JNPT, Vishakapatnam and Kandla have for long been the mainstay of the country’s sea-borne trade, but smaller ports are now rapidly emerging as their toughest rivals. Over the last 10 years, the share of total cargo handled by minor and intermediate (non-major) ports in India has jumped from a modest 10 per cent to 25 per cent, indicating fundamental changes in the way marine trade is conducted. Of the approximately 240 million tonnes of marine cargo handled in 1995-96, non-major ports managed barely 10 per cent. By 2005-06, these ports handled 145 million tonnes or over a quarter of total Indian sea-borne traffic. And the first six months of 2006-07 indicate that the share has gone up even further to 26 per cent.
The impression conveyed is that there is broad based minor port activity happening all along the coastline, eh? Then follows the next gemThe increasing draw of non-major ports is a product of the aggressive shipping policies being pursued by states like Gujarat, Andhra Pradesh, Maharashtra, Karnataka and Kerala. Since non-major ports are a state subject, the respective governments have the freedom to facilitate fast-track clearance and establishment of ports, particularly through private participation.
IOW, if nonmajor ports are doing 26% of total cargo handling and Gujrat along accounts for 20% of that figure (17% probably, they might've mixed up Kandla inside?), why isn't the article titled 'Gujrat's non-major ports lead the charge' or something?!?!Gujarat is a case in point. The state, with its 1,600 km coastline, has 41 non-major ports that come under the jurisdiction of the Gujarat Maritime Board. These ports together handled 74 per cent of the total non-major port cargo in the country in 2005-06, or about a fifth of total cargo passing through all Indian ports. In a move that is certain to increase the pace of shipping growth, the state has now identified several more greenfield ports to be executed in various phases.
I know, just semantics but giving an accurate drill-down picture is Writing 101 for journos, I thought.
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vina
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CNG Compressed Natural Gas..wuhan wrote:What is CNG?
As for LNG, only a few countries have the technology to build this kind of ship, S Korea, Japan, China which is building her first LNG now and will be delivered late this year, plus one or two European countries.
As for only the "few" countries stuff, please notice one big fact.. there are only TWO main LNG tank technology containment suppliers in the world. One by Kaevner (the spherical container tanks) or the French Membrane type containment system.. This is the heart of the LNG system and the rest of it is just plain vanilla stuff.
ALL the guys license /source stuff from these TWO vendors only. So, depending on which way you look at it, only TWO players have a commercially viable technology for this. All others including China are licencees only.
[quote="vina"][quote="wuhan"]What is CNG?
As for LNG, only a few countries have the technology to build this kind of ship, S Korea, Japan, China which is building her first LNG now and will be delivered late this year, plus one or two European countries.[/quote]
CNG Compressed Natural Gas..
As for only the "few" countries stuff, please notice one big fact.. there are only TWO main LNG tank technology containment suppliers in the world. One by Kaevner (the spherical container tanks) or the French Membrane type containment system.. This is the heart of the LNG system and the rest of it is just plain vanilla stuff.
ALL the guys license /source stuff from these TWO vendors only. So, depending on which way you look at it, only TWO players have a commercially viable technology for this. All others including China are licencees only.[/quote]
Thanks for the reply, more links.
for more info about the "Containment systems" of LNG:
http://en.wikipedia.org/wiki/LNG_carrier
in case of China's first LNG carrier:
http://english.people.com.cn/200507/18/ ... 96714.html
"We imported the patent for the cryogenics from a French company," ...
Dubbed as "a pearl of the shipbuilding industry," an LNG ship, with a price tag larger than that of a Boeing 747...
from ABS:
http://www.eagle.org/news/absspeeches/v ... .cfm?id=22
LNG carrier, widely considered to be one of the most sophisticated ship types
As for LNG, only a few countries have the technology to build this kind of ship, S Korea, Japan, China which is building her first LNG now and will be delivered late this year, plus one or two European countries.[/quote]
CNG Compressed Natural Gas..
As for only the "few" countries stuff, please notice one big fact.. there are only TWO main LNG tank technology containment suppliers in the world. One by Kaevner (the spherical container tanks) or the French Membrane type containment system.. This is the heart of the LNG system and the rest of it is just plain vanilla stuff.
ALL the guys license /source stuff from these TWO vendors only. So, depending on which way you look at it, only TWO players have a commercially viable technology for this. All others including China are licencees only.[/quote]
Thanks for the reply, more links.
for more info about the "Containment systems" of LNG:
http://en.wikipedia.org/wiki/LNG_carrier
in case of China's first LNG carrier:
http://english.people.com.cn/200507/18/ ... 96714.html
"We imported the patent for the cryogenics from a French company," ...
Dubbed as "a pearl of the shipbuilding industry," an LNG ship, with a price tag larger than that of a Boeing 747...
from ABS:
http://www.eagle.org/news/absspeeches/v ... .cfm?id=22
LNG carrier, widely considered to be one of the most sophisticated ship types
SKorea has used an innovative new method for building large ships on land, without the need for a drydock:
http://english.chosun.com/w21data/html/ ... 60020.html
http://www.shippingtimes.co.uk/item786_lpg.htm
http://www.shippingtimes.co.uk/item489_HHI.htm
link to some blog article
Seems like something that India should also look into.
http://english.chosun.com/w21data/html/ ... 60020.html
http://www.shippingtimes.co.uk/item786_lpg.htm
http://www.shippingtimes.co.uk/item489_HHI.htm
link to some blog article
Seems like something that India should also look into.
SCI to buy 31 vessels for approximately Rs 1,281 crore.
NEW DELHI: Shipping Corporation of India is planning to place order for 31 vessels at an estimated cost of Rs 1,280.71 crore in the current fiscal, while domestic and foreign firms are interested in bidding for two international shipyards in east and west coast, Lok Sabha was told on Wednesday.
In written reply to a query, Shipping Minister T R Baalu said SCI has so far placed orders for construction of six vessels in this fiscal which will be delivered between 2010-11 and the 12 vessels ordered in 2005-06 will be delivered between 2008-10.
The shipping giant had floated global tenders for the acquisition of 16 vessels, of which tenders for six vessels have been finalised.
Baalu said nine firms have evinced interest in constructing an international size shipyard in the east coast of the country while three have shown interest for building one in the west coast.
NEW DELHI: Shipping Corporation of India is planning to place order for 31 vessels at an estimated cost of Rs 1,280.71 crore in the current fiscal, while domestic and foreign firms are interested in bidding for two international shipyards in east and west coast, Lok Sabha was told on Wednesday.
In written reply to a query, Shipping Minister T R Baalu said SCI has so far placed orders for construction of six vessels in this fiscal which will be delivered between 2010-11 and the 12 vessels ordered in 2005-06 will be delivered between 2008-10.
The shipping giant had floated global tenders for the acquisition of 16 vessels, of which tenders for six vessels have been finalised.
Baalu said nine firms have evinced interest in constructing an international size shipyard in the east coast of the country while three have shown interest for building one in the west coast.
Reliance to pump $2 bn into shipbuilding, dredging.
The Mukesh Ambani-owned Reliance Group is set to make a splash in shipbuilding and dredging with two separate companies. Sources said the petroleum-to-retail giant is expected to invest around $1 billion each in two companies and has begun talks with international majors for a strategic tie-up for the dredging business. This $2-billion investment is over and above the $1.3-billion investment committed for the Rewas Port, off Navi Mumbai.
The shipyard will come up at Rewas, where Reliance is setting up a mega port and a special economic zone (SEZ). The company is also looking at a ship repair yard at Kakinada for servicing offshore/platform vessels and rigs. This facility is expected to be the hub for all its offshore activities in the KG basin, where Reliance Industries (RIL) has struck oil and gas in abundance.
The group will spend around $1 billion to build dredgers at its own shipyard and other yards. Plans are also afoot to set up a mega dredging company, which will compete with international giants such as Van Oord and Dredging International. Sources said Reliance wants to cash in on the two booming sectors of shipbuilding and dredging.
As a majority of existing foreign shipyards are full with orders, shipbuilding prices are expected to remain firm for another couple of years. On the dredging side, almost all Indian ports are trying to deepen their berths and approach channels in order to accommodate larger ships. This has increased the demand for dredgers, pushing up charter rates to new highs, while the supply remains sluggish.
Sources said around 80% of the world’s dredging market is serviced by a handful of European majors — mostly from Holland and Belgium — such as Royal Boskalis, Dredging International, Van Oord and the Jan de Nul Group. Sources said Reliance wanted to start building dredgers at the yard initially, and later expand the capacity to build other ocean-going vessels.
“Talks are currently on, and it is likely to take a final shape in a month or two,â€
The Mukesh Ambani-owned Reliance Group is set to make a splash in shipbuilding and dredging with two separate companies. Sources said the petroleum-to-retail giant is expected to invest around $1 billion each in two companies and has begun talks with international majors for a strategic tie-up for the dredging business. This $2-billion investment is over and above the $1.3-billion investment committed for the Rewas Port, off Navi Mumbai.
The shipyard will come up at Rewas, where Reliance is setting up a mega port and a special economic zone (SEZ). The company is also looking at a ship repair yard at Kakinada for servicing offshore/platform vessels and rigs. This facility is expected to be the hub for all its offshore activities in the KG basin, where Reliance Industries (RIL) has struck oil and gas in abundance.
The group will spend around $1 billion to build dredgers at its own shipyard and other yards. Plans are also afoot to set up a mega dredging company, which will compete with international giants such as Van Oord and Dredging International. Sources said Reliance wants to cash in on the two booming sectors of shipbuilding and dredging.
As a majority of existing foreign shipyards are full with orders, shipbuilding prices are expected to remain firm for another couple of years. On the dredging side, almost all Indian ports are trying to deepen their berths and approach channels in order to accommodate larger ships. This has increased the demand for dredgers, pushing up charter rates to new highs, while the supply remains sluggish.
Sources said around 80% of the world’s dredging market is serviced by a handful of European majors — mostly from Holland and Belgium — such as Royal Boskalis, Dredging International, Van Oord and the Jan de Nul Group. Sources said Reliance wanted to start building dredgers at the yard initially, and later expand the capacity to build other ocean-going vessels.
“Talks are currently on, and it is likely to take a final shape in a month or two,â€
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emsin
I don't know how many here actually understand the worst run industry in the world? There are historical compulsions why this sector can be rightly called as the worst run industry in the world.
It's extremely inefficient, it has a overburden of controls and enforcementt regulations take the brunt of emloyees than ship owners registed in Timbuktu and bahamas or panama.
This industry is responsible for environmentally polluting this planet like no other in the business today. Yet it requires so much sophistication in it's running that to get people to do so becomes a huge task in these booming times.
India has of course lagged so much that we don't have space and time for ships waiting to unload or load cargo. Ships are kept waiting 20 days outside port for their turn to load/ unload again in 5 days or so. 25 days translates at 20k USD/ day to huge money. That is passed on to consumers in India each day every port, every load of cargo.
Meanwhile China does the same in 1-2 days. No delays.
It's extremely inefficient, it has a overburden of controls and enforcementt regulations take the brunt of emloyees than ship owners registed in Timbuktu and bahamas or panama.
This industry is responsible for environmentally polluting this planet like no other in the business today. Yet it requires so much sophistication in it's running that to get people to do so becomes a huge task in these booming times.
India has of course lagged so much that we don't have space and time for ships waiting to unload or load cargo. Ships are kept waiting 20 days outside port for their turn to load/ unload again in 5 days or so. 25 days translates at 20k USD/ day to huge money. That is passed on to consumers in India each day every port, every load of cargo.
Meanwhile China does the same in 1-2 days. No delays.
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pradeepe
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I remember those days. As kids you would see the same vessels in the outerharbor and see them there for a month or so. But that was such a long time ago, its no way as bad as that now. Its a few days at most (atleast for VPT).Ships are kept waiting 20 days outside port for their turn to load/ unload again in 5 days or so. 25 days translates at 20k USD/ day to huge money.
http://www.vizagport.com/Port%20Stat.HTML
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emsin
I'm well awate of VPT. Firstly not very big ships come to VPT. MEdium size ones come there. Draft restrictions prevent ships entering into VPT. 2 or 3 coal berths at it's immediate entrance allows only for jetty dumping. So you'll see 2 or max 3 bigs ships at the entrance. Rest the ones either lighten up ouside to go in, or are not too big in tonnage once in.I remember those days. As kids you would see the same vessels in the outerharbor and see them there for a month or so. But that was such a long time ago, its no way as bad as that now. Its a few days at most (atleast for VPT).
Unloading usually requires using ships gear because of which charter rates are higher.
These are not good ports Pradeep. You must see Port operations in Japan, China, South Korea, US..Port operations in India are crap.
are there any ports in India capable of taking the largest 300m container ships (20,000 TEU?) and draught need of 14m ?
or do they all transfer indian market containers in Jebel Ali or Colombo only?
It is very urgent that Guj, MH, TN, Vizag, Kolkata, Kochi as the "outlets"
of this nation get such large scale ports capable of unloading 15-20 ships
in parallel each.
or do they all transfer indian market containers in Jebel Ali or Colombo only?
It is very urgent that Guj, MH, TN, Vizag, Kolkata, Kochi as the "outlets"
of this nation get such large scale ports capable of unloading 15-20 ships
in parallel each.
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emsin
20,000 TEU..never heard that big. I thought biggest was around 9000.are there any ports in India capable of taking the largest 300m container ships (20,000 TEU?) and draught need of 14m ?
But coal ships around 300m many berths can take. Paradip and Vizag too i think in the jetties just adjacent to the sea.
But India has hardly and deep water ports. Haldia for example is only operational due to year round dredging. Most of the bigger ships have to lighten up at Paradip and then proceed to Haldia.
Most ports don't have their own gear for either loading or discharging operations. Compare that with say Australia..they load 250,000 tons of coal in flat 18 hours. They only reduce load rates so that stresses don't cause ships to break into 2.
India has to invest billions of USD to revamp it's port infrastructure. Without doing so consumers will pay extra because of inefficiencies.
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emsin
Kolkata is finished. I don't thinks of any size go there. Maybe 5-10,000 tonners max. Even Haldia's future looks bleak. Paradip is a bright spot. With some infrastructural activity happening.
Gujarat waters are shallow and muddy. I think reliance etc have their own LNG and LPG jetties which have fairly quick turnarounds.
Gujarat waters are shallow and muddy. I think reliance etc have their own LNG and LPG jetties which have fairly quick turnarounds.