KOCHI: The construction of the proposed international ship repair facility, an expansion project of the Cochin Shipyard Ltd (CSL) will commence on Friday. Union Minister of Shipping Nitin Gadkari will inaugurate the construction of the facility. To sustain the momentum of growth, the shipyard has been looking to expand its operations. One of the areas of potential growth identified is ship repair where CSL holds a premier position in the country. CSL had earned `550 crore last year through ship repairing work.
The proposed yard is coming up on the 42-acre land of the Cochin Port Trust (CPT) allotted on lease to the CSL. With the facility becoming operational, the capacity of the shipyard to repair vessels will be augmented to 80 more ships, besides its existing facility of 100 ships.
As per the land agreement CSL and CPT had signed in December 2012, 42 acres with 850-m waterfront will be leased to the CSL for 30 years. The Port Trust will get the upfront premium, the value of the assets handed over, the guaranteed yearly revenue quoted by the CSL for the 30 year period and the lease rental for the land and water area allotted to them at the TAMP (Tariff Authority for Major Ports) notified rates. In addition, 243 employees currently working in the dry dock and the workshop area will be deputed to the CSL.
With ship lift and six transfer stations, the upcoming yard will have the facility to dock more than one ship at a time. The ship lift will have the capacity to lift up to 6,000 tonnes. A consortium comprising Inros Lackner and Tata Consulting Engineers are the consultants for the project. Funds mobilised by the CSL through its recent IPO will be utilised to construct the ship repair yard.
The construction of the proposed international ship repair facility, an expansion project of the Cochin Shipyard Ltd (CSL) will commence on Friday.