The Hindu Business Line : Cochin Shipyard lays the keel for small vessel unit

Given the increasing demand the world over, public sector Cochin Shipyard Ltd has mooted a small ship division to cater to the high-value small commercial vessel segment. The project has been received in principle approval from the Shipping Ministry and the Planning Commission and the detailed project report is being submitted to the Ministry. "We expect an early approval for the small ship division (SSD) as the Shipping Minister has given whole-hearted support for the project," Commodore M. Jitendran, Chairman and Managing Director, Cochin Shipyard Ltd, said.

The number of ships to be constructed by the division would be four in 2009-10, and progressively increase to eight per year by 2014-15. The turnover expected from the SSD would be around Rs 700 crore per year, at the fully stabilised position in 2014-15, he said.

Mr Jitendran said the SSD would be located at the existing CSL premises. Civil works, in the form of construction of roads, drains, assembly shops, fabrication and sub-assembly shops, pipe shop, paint coating shop, are to be set up.

The SSD can develop as the stature of Cochin Shipyard grows in international market. The yard is emerging as a major ship building centre and this would give fillip to employment and economic growth of Kochi. It is expected that an additional labour force of 1,200 would be required for the new division over 10 years.

According to Mr Jitendran, the execution of a series of global orders earned CSL a recognition as a ship-builder of repute and transformed it into a global operator. Most important, `Cochin Shipyard' has become a brand. Three years ago, the shipyard was a non-entity in the international market. However, the timely completion of series of orders for the Saudi Arabia Seaports Authority; Deep Sea Supply, Norway; and the Clipper Group, Denmark has changed all that, he said. With a trebling of turnover expected this year, to Rs 600 crore, from Rs 200 crore in 2003-04, the yard aims to cross Rs 1,000-crore turnover mark by 2009-10. With the prestigious Air Defence Ship project for the Indian Navy on the verge of take off, CSL is moving at top gear, Mr Jitendran said.

Referring to the order position, he said 2007 has started on a busy note. Just on one day, January 5, there had been one ship delivery, two launchings and one keel laying. The ships launched included a bulk carrier and a Platform Supply Ship. Subsequently another bulk carrier was delivered and the keel laid for one more vessel. These ships were in the series of six 30000 DWT bulk carriers being built for the Clipper Group and the eight Platform Supply Vessel for Deep Sea Supply.

Popular design

The current products of the yard in shipbuilding and ship repair have considerable potential for promotion. The Platform Supply Vessel being constructed for the Norwegian owners are of the popular UT- 755-L design.

The vessel is designed specifically for the offshore industry for transport of deck cargo, pipes, liquid cargo, cement, etc, and unloading onto rigs and production platforms, pipe-laying barges, and so on.

On the ship repair front, Mr Jitendran said CSL had achieved a record of four major upgradations this year for ONGC's offshore drilling units and jack-up rigs. Considering that all these vessels are engaged in India, CSL has become a partner in achieving India's objective on energy security. The yard's repair turnover till December 6, he said, was Rs 160 crore, exceeding the target of Rs 150 crore.