CSL collaborates with DPA to establish ₹1,600 Crore capesize compliant ship repair facility at Vadinar
KOCHI : Cochin Shipyard Ltd and the Deendayal Port Authority, both state-owned entities, are set to collaborate on constructing a state-of-the-art ship repair facility capable of dry docking Capesize vessels in Vadinar, Gujarat, with an investment of approximately ₹1,600 crores.
This ambitious project aims to reinforce Cochin Shipyard’s position as India’s premier ship repairer, complementing its existing facilities at its flagship yard in Kochi, the newly launched international ship repair facility at Cochin Port, and repair units located at Mumbai Port, Syama Prasad Mookerjee Port, and Port Blair.
Under the plan, Deendayal Port Authority, which manages the port at Kandla, will construct a jetty at Vadinar, while Cochin Shipyard will provide a floating dry dock and oversee the operation and maintenance of the ship repair yard. Additionally, the port authority will receive a fixed share of revenue from ship repairs, along with lease rentals from the project, as detailed by a government official familiar with the initiative.
“Vadinar already has environmental clearance for a dry dock and boasts a natural deep draft of 15 to 18 meters, making it an ideal location for a facility capable of repairing Capesize vessels,” the official explained.
A high-level team from Cochin Shipyard, led by Chairman and Managing Director Madhu Nair, has already visited Vadinar and expressed interest in establishing the ship repair unit there. Currently, India lacks a facility that can dry dock Capesize vessels, the largest class of dry bulk carriers.
The Ministry of Ports, Shipping and Waterways is currently reviewing the Detailed Project Report (DPR) for the facility before presenting it to the cabinet for approval. “The plan is to develop the facility to international standards,” added the government official.
India’s strategic geographical position along major shipping routes in the Indian Ocean enhances its potential as a hub for ship repair and maintenance activities. Approximately 7-9 percent of global trade is conducted through India’s coastline, indicating significant growth opportunities in the ship repair and maintenance market, which is projected to expand at a CAGR of 8-10 percent over the next decade.
With increasing global maritime traffic and the necessity for regular maintenance of aging fleets, the Indian ship repair industry is poised for substantial growth. The government is committed to improving infrastructure and implementing supportive policies to position India as a leading destination for ship repair and maintenance services.
Despite the potential, over 30 percent of vessels in India’s addressable market currently rely on foreign dry docks due to limitations in local infrastructure and turnaround times. The Union government has tasked Cochin Shipyard with spearheading the development of the ship repair cluster in the country, aiming to enhance India’s capabilities in this vital sector.