Cochin Shipyard to develop dry dock in Chennai

With the private sector not participating in the ₹250-crore tender for a dry dock and ship repair facility at the Chennai port, Cochin Shipyard Ltd (CSL) is likely to be roped in for the project, according to reliable sources.

CSL, a public sector enterprise, has shown interest in developing the dry dock and ship repair facility at the Chennai port. There was no response from the private sector to participle in the tender called by the Chennai Port Trust towards the end of last year.

Even in the pre-bid meeting, only CSL and one private player, Tebma Shipyards participated, said the ChPT source who did not want to be named.

Even CSL did not submit a bid, but put in an application after the tender process ended. This could be treated as an ‘Expression of Interest’ for the project since it was PSU.

According to the source, N Muruganandam, Joint Secretary (Ports), Ministry of Shipping, suggested in a recent ChPT board meeting that CSL’s application could be considered as EoI and the project awarded after mutual agreement on the terms and conditions of the bid, the source said.

There have been instances of government sector ports entering in to agreements with other PSUs on mutually agreed terms and conditions to develop facilities and port operations.

The source said CSL has sought time to undertake a techno-commercial feasibility study before committing to take up the project.

There were also issues relating to payment of upfront tariff for the bid, payment of ₹18.91 crore for taking over assets of the port, security deposit, performance security, earnest money deposit and annual lease rent, which could be finalised only after the ChPT board’s approval.

CSL has urged the ChPT to waive the EMD as both are PSUs under the shipping ministry,, the source said.

The Chennai port handles around 2,000 ships annually but only has a slipway to repair the port’s crafts. The planned dry dock facility will cater to vessels up to 65,000 dead weight tonne.

The port’s timber pond and boat basin used for berthing small crafts and the slipway have been considered for the project.

On the East coast, Hooghly Dock and Port Engineers at Kolkata has a repair facility for small vessels, and L&T Kattupalli port at Ennore is yet to start its operations in a big way.

Large vessels now go to shipyards in Singapore for dry docking, while dredgers, tugs and cruise boats go to Colombo for repairs. Some of the vessels need to wait for a year for dry-docking in these international ports, said a source.

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