Cochin Shipyard Ltd is planning to enter the business segments of LNG carriers and dredgers in the short and medium term.
The company recently received approval from the central government for commissioning of a large dry dock to accommodate large ships like LNG carriers and aircraft carriers. The project is expected to take four years to complete.
The Ministry of Shipping has already announced a Rs. 2,700-crore financial package for development and modernisation of Cochin Shipyard. Out of the financial package announced, Rs. 1,200 crore will be spent on setting up the dry dock and Rs. 1,500 crore utilised towards building an LNG carrier at the shipyard. It is for the first time that an LNG carrier will be built in the country.
CSL has been holding talks with several global companies, including French engineering firm Gaztransport and Technigaz and South Korea’s Daewoo Shipbuilding and Marine Engineering Company, Samsung Heavy Industries and Hyundai Heavy Industries, for construction of the LNG carrier. The shipyard will also build dredgers in future.
Meanwhile, CSL has delivered the eighth of the series of 20 Fast Patrol Vessels being built for the Indian Coast Guard. With the handing over of the FPV on September 19, the shipyard has successfully delivered a total of eight FPVs to the Indian Coast Guard within a span of one year. The first FPV in the series was delivered on September 25, 2013. These vessels, having a capable speed of 33 knots, will support the Indian Coast Guard in anti-smuggling, anti-piracy, fisheries protection and monitoring operations. The superstructure of these vessels is made of aluminum.
CSL also delivered a high end Platform Support Vessel to PSV Holding, Inc. of Liberia on September 18. The vessel was the last of a series of four similar vessels built for the same client. PSVs are used as supporting platforms to rigs and oil platforms.
Cochin Shipyard Ltd delivered 40 ships during the period 1975-2000, 14 ships in the period 2001-2005 and 29 ships during 2006-2010. It is expected to deliver 16 ships during 2011-2015.
CSL’s shipbuilding income increased from Rs. 222 crore in 2005-06 to Rs. 1,409 crore in 2013-14. The profit before tax increased from Rs. 25 crore to Rs. 291 crore and net profit increased from Rs. 18 crore to Rs. 194 crore during the period.