Cochin Shipyard plans Rs 20 Bn expansion at Cochin Port

KOCHI : Cochin Shipyard Ltd, India’s largest shipbuilder by dock capacity, is planning to establish a new shipbuilding facility at Cochin Port with foreign collaboration. The initiative aligns with the broader industry push for capacity expansion following Budget proposals aimed at boosting the sector. 

Cochin Shipyard recently operationalized a Rs 9.7 Bn international ship repair facility at Willingdon Island, within Cochin Port, to enhance India’s ship repair capabilities and position Kochi as a regional maritime hub. The port authority, which has 150 acres of high-value land, intends to lease a portion to Cochin Shipyard for this expansion. 

According to government officials, the proposed shipbuilding facility will be owned by Cochin Shipyard but developed with foreign collaboration. This expansion follows the shipyard’s commissioning of a Rs 1,799 crore dry dock, its third, enabling it to construct large vessels, including LNG carriers, Capesize and Suezmax ships, oil rigs, and semi-submersibles. 

Industry analysts highlight the urgency for India to expand its shipbuilding capacity, as leading global players in China, South Korea, and Japan are fully booked until at least 2028. Indian yards are currently focused on defense contracts and niche green vessels for global fleet owners. To meet the Maritime India Vision 2030, domestic shipbuilding capacity must increase from 0.072 million gross tons (GT) to 0.33 million GT by 2030 and further to 11.31 million GT by 2047, according to KPMG. 

Antony Prince, President & amp; CEO of G T R Campbell Marine Consultants Ltd, emphasized the need for immediate capacity enhancement, calling for new facilities and increased productivity at existing yards. The Ministry of Ports, Shipping, and Waterways’ strategy to develop maritime clusters in three states is seen as a positive step toward this goal. 

The government is leveraging land at major and non-major ports to fast-track shipyard development and circumvent land acquisition hurdles. Deendayal Port Authority in Gujarat has floated a tender for leasing 2,000 acres to develop an integrated shipbuilding cluster under the public-private partnership (PPP) model. Andhra Pradesh is also planning shipbuilding facilities at its greenfield and private ports. 

Cochin Port’s new shipbuilding facility would provide strategic advantages, including easier import of raw materials and streamlined supply chains. The government’s efforts to revitalize the sector have attracted high-level delegations from major shipbuilders in South Korea and Japan, who are exploring investment opportunities.