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Cochin Shipyard to build two large dredgers for DCI

Monday, 21 Jun 2021
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Cochin Shipyard (CSL) will build two high-end and large-capacity dredgers for the Dredging Corporation of India (DCI) in a deal worth some Rs 2,000 crore with an option for a third dredger through a technology collaboration with a Dutch firm as part of the Make in India programme.

The plan to build high-capacity, complex dredgers for the first time locally under the Atmanirbhar Bharat initiative has been approved by the Ministry of Ports, Shipping and Waterways.

A memorandum of understanding (MoU) signed by CSL and DCI in February 2021 envisaged construction of one dredger. The two trailing suction hopper dredgers (TSHDs) will have hopper capacity of 12,000 cu mtr each. TSHDs are used to maintain the channel of ports.

CSL and DCI are discussing the vessel specifications ahead of signing an agreement soon for building the dredgers. The construction on the first dredger will start in 2021 and is expected to be completed within 24-30 months, while work on the second dredger is slated to start in 2023.

A final decision on the third dredger will be taken based on a performance analysis of the initial two dredgers.

The hopper capacity of the third dredger will be finalised based on the gap viability analysis of the market in 2025 to achieve the requirement of dredging at Indian major ports as envisaged in the Maritime India Vision 2030.

This will be the first dredgers to be built by CSL at its yard in Cochin following a MoU signed with IHC Holland BV, the world’s largest dredger builder, in November 2020 for collaboration on technology and design for high-capacity, complex dredgers.

The dredger construction will be funded through a mix of equity from Cochin Shipyard and the four major ports -- Visakhapatnam Port Trust, Paradip Port Trust, Deendayal Port Trust and Jawaharlal Nehru Port Trust — that are shareholders of DCI, and bank loan.

Dredger construction has been identified as a priority area for revenue growth in Cochin Shipyard’s strategy roadmap for 2030.

DCI’s fleet of 10 TSHDs deliver 70-75 percent of the annual dredging for major Indian ports. As the step towards meeting the increasing demand for dredgers across the country, DCI is planning to expand its fleet with construction of high-capacity hopper dredgers.

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