The Hindu Business Line : Ports placing global tenders for routine dredging works

DCI, which enjoys a monopoly over the Rs 800-cr Indian dredging market, plans to buy new dredgers to boost its capacity to 100 million cubic metres a year.

T.E. Raja Simhan

Chennai, April 28 With shortage of dredgers in India, major ports are chasing global companies for undertaking the routine maintenance dredging works at ports.

The maintenance projects are usually done using dredgers of Dredging Corporation of India (DCI). But since most of its dredgers (six) have been relocated for the Sethusamudram Ship Canal Project, ports are now on the trail of global companies for maintenance dredging, said an official of a port trust.

The Kandla Port Trust issued a global tender for a two-year maintenance dredging contract worth Rs 225 crore. Recently, the Cochin Port Trust discharged its bid for dredging contracts and is going for fresh bids.

Due to shortage of dredgers, the cost of dredging has shot up significantly. For instance, in the case of Cochin Port, as against the estimated cost of Rs 486 crore for dredging, the Belgium-based Dredging International NV quoted Rs 805 crore.

Huge investment

The 12 major ports and minor and intermediate ports require capital dredging and continuous maintenance dredging to keep the port’s navigational channel operational. It’s a continuous process. Sources said that major ports plan to invest over Rs 6,000 crore to deepen their channels and berths over the next five years.

This is to meet the future cargo traffic and accommodate large ships. India aims to double port capacity to 1,500 million tonnes by 2011-12.

The country’s major ports always go for a dredging tender through press advertisements and the State-owned DCI entity gets priority. But with the Sethusamudram project, development of more ports and their berthing facilities, there is a shortage of dredgers in India. All ports are looking for dredging companies, including multinationals, said an industry source.

DCI, which enjoys a monopoly over the Rs 800-crore Indian dredging market, plans to buy new dredgers to boost its dredging capacity to 100 million cubic metres year. It currently has 12 dredgers with a capacity to dredge 80 million cubic metres a year.

Kandla dredging

The Kandla Port Trust, which administers the port of Kandla — the only major port on the Gujarat coastline — has invited global tenders from domestic and foreign companies to undertake dredging in the navigational channel of the port for two years.

The dredging work consists of deepening and maintaining the navigational channel at Kandla port. In view of the limited width of the channel and restricted tidal window available, it is required to deploy ‘trailing suction hopper dredgers for execution of the dredging work.’ The dredger deployed at Kandla should be capable of dredging to a depth up to 16 metres, says the tender.