Foreign Shipyards Look to Dock at Indian Shores

Hyundai, Mitsui, Hanwha on prowl; Cochin Shipyard may be first to ink deal

- Subhash Narayan

India is mapping a course to become a shipbuilding powerhouse, forging strategic joint ventures between its state-owned enterprises and maritime giants from South Korea and Japan. State-run enterprises are engaging companies including Hyundai Heavy Industries and Hanwha of South Korea and Mitsui of Japan, two people aware of the plans said, in an ambitious bid to secure a larger share of the global demand and reduce India's reliance on overstretched Asian shipyards.

State-owned Cochin Shipyard Ltd (CSL) may join hands with Hyundai Heavy Industries for a new facility in Kochi, the people said on the condition of anonymity. Cochin Shipyard confirmed the talks, but did not identify the future partner. A Hyundai team had visited India early this year for a preliminary survey for investing in Indian shipbuilding.

"We are close to signing a deal with an overseas shipbuilder from Korea or Japan that would be making hulls for large ships," said Madhu S. Nair, chairman and managing director, Cochin Shipyard. "We already have a large 310m dry dock that can also be used by the new joint venture for making ships of different sizes up to 300m in length. A foreign partnership will help in bringing technology and scale required for making large ship hulls using tonnes of steel. The new facility should roll out ships in double-digits to meet both domestic and overseas demand," Nair added.

Land for the new facility will be provided by the government-owned Cochin Port Trust, close to Cochin Shipyard's existing facility in Kochi, one of the two people said. The new facility will build cargo ships, container vessels, tankers, dry bulk cargo ships and multi-purpose vessels. It would, however, not make very large crude carriers (VLCCs) due to infrastructural shortcomings, but may consider it later depending on market conditions.