Cochin Shipyard Limited (CSL), the largest greenfield shipyard in the country, expects to deliver its orders of 17 offshore supply vessels and anchor handling tug supply vessels for the international owners by 2011.
CSL aimed to deliver the orders for vessels on schedule despite the prevailing economic recession which has slackened the demand for vessels, especially bulk carriers and tankers. Fleet owners worldwide were canceling orders, renegotiating orders or delaying construction schedules owing to lack of adequate funds, softening freight rates and falling prices of vessels.
“Despite the economic downturn, CSL expects to deliver all its orders on schedule by 2011. The downturn has mainly impacted the bulker and tanker segments of vessels and CSL exited both these segments in 2007”, a company official told Business Standard. Asked on the new orders bagged by the company, the official said that CSL is in the process of negotiations with its international customers for the new orders. The shipyard aims to tide over the prevailing economic downturn by building its core strengths and concentrating on emerging opportunities like coastal security, fishing, dredging and warship building.
CSL has reached 100 per cent capacity utilization in shipbuilding in the last few years and it plans to augment its capacity by adding a small ship division by October this year. This new facility would enable the shipyard to continue construction of commercial vessels along with the aircraft carrier project.
The small ship division complex of CSL was inaugurated by TR Baalu, the Union minister for shipping, road transport and highways in February this year. The complex consists of the design, planning and logistics wings.
The shipyard is also moving up the value chain in the offshore supply vessel category by going in for vessels with diesel electric propulsion and clean design technology. CSL has already presented a proposal to the Shipping Corporation of India (SCI) for construction of these vessels and these vessels are expected to be delivered by the middle of 2010. CSL spread over 170 acres and located close to the Port of Cochin and the shipyard can build ships upto 1,10,000 dwt (dead weight tonnage) and repair ships upto 1,25,000 dwt.