A view of Cochin Shipyard in Kerala.

Cochin Shipyard Ltd, a public sector undertaking engaged in shipbuilding and repair, is exploring the possibility of setting up a shipyard at Tuna region of Kandla Port in Gujarat. The company recently invited a global Expression of Interest from consulting firms for conducting a techno-economic feasibility study of the project. Firms that respond to the EoI and subsequently get prequalified and shortlisted will become eligible to participate in the competitive tendering process for selection of consultant.

The Kandla Port Trust, an autonomous body under the Ministry of Shipping, had recently invited global EoI for setting up industries directly requiring waterfront at the port-based multi-product special economic zone in Tuna.

Kandla Port is located in Kandla creek, 90 nautical miles from the mouth of Gulf of Kutch. It accounts for the highest traffic share among major ports of India. The port has also been handling the maximum cargo volume consistently over the past decade compared to other major ports of the country.

KPT has already received formal approval from the Ministry of Commerce and Industries for setting up the port-based multi-product SEZ at Kandla and Tuna covering an area of 5,000 hectares (3,600 hectares at Kandla and 1,400 hectares at Tuna). The SEZ is expected to become one of India’s largest MPSEZ with world class infrastructure. The units and industry operating inside the port-based multi-product SEZ will procure and produce while promoting industrial development and supporting the government’s ‘Make in India’ initiative.

As per the KPT Master plan 2015-2020, 310 hectares of land having waterfront out of the total 1,400 hectares available at Tuna is earmarked for ship manufacturing facilities with ancillary industries, ship repair facilities along with ancillary industries, jetties, wharves, quays, slipways, storage of non-hazardous cargo such as edible oil, fertilisers and food grain with a Free Trade Warehousing Zone, desalination plant and any other activity that directly requires waterfront of foreshore facilities.

Presently, CSL is in the process of checking the technical feasibility and economic viability of setting up the shipyard at the 310 hectares of land area available in intertidal region of Tuna. The company proposes to construct dry docks and allied facilities for catering to the building and repair demands of vessels up to Very Large Crude Carriers size. Setting up of ancillary industries in connection with ship building and repair, ship breaking facility and possibility of accommodating Ultra Large Crude Carriers will also be explored.

Given that the proposed site is located in the intertidal region of Tuna, a number of factors including suitability of the location, adequacy of land available, quantity of dredging/reclamation required, availability of water and power and rail and road connectivity will have to be assessed prior to setting up the shipyard. Also, the site has mangrove cover in vicinity.

The TEFS report that the selected consultant prepares in liaison with CSL will include an executive summary, the methodology adopted for the study, list of assumptions, the ship building and repair market scenario, broad details of major infrastructure requirements, block cost estimates, project feasibility and technical viability, economic analysis, funding options and proposed business model, project risks, project implementation schedule, possibility of setting up ancillary industries, ship breaking yard and increasing dock size to accommodate ULCC vessels, requirement of additional studies and investigations, if any, statutory clearances required and drawings and sketches as required.

Consulting firms meeting the prequalification criteria mentioned in the EoI document need to submit their original proposal along with required documents latest by 1500 hrs on May 8, 2015. The EoI document can be accessed at the CSL website or the Indian government tenders information system:

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