RIL to pump $2 b into shipbuilding, dredging
The group will spend aroun= d $1 billion to build dredgers at its own shipyard and other yards. Plans ar= e also afoot to set up a mega dredging company, which will compete wi= th international giants such as Van Oord and Dredging International. Sources= said Reliance wants to cash in on the two booming sectors of shipbuilding a= nd dredging.
As a majority of existing foreign s= hipyards are full with orders, shipbuilding prices are expected to remain fi= rm for another couple of years. On the dredging side, almost all Indian port= s are trying to deepen their berths and approach channels in order to accommoda= te larger ships. This has increased the demand for dredgers, pushing up char= ter rates to new highs, while the supply remains sluggish. Sources said arou= nd 80% of the world’s dredging market is serviced by a handful of European m= ajors — mostly from Holland and Belgium — such as Royal Boskalis, D= redging International, Van Oord and the Jan de Nul Group.
&nb= sp;Sources said Reliance wanted to start building dredgers at the yar= d initially, and later expand the capacity to build other ocean-going vessel= s.
$ 2billion PLANNED INVESTMENT IN SHIPBUILDING AND DREDGING
$ 1= .3billion
INVESTMENT COMMITTED FOR REWAS PORT
12 NUMBER OF MAJOR PORTS IN INDIA=
LEADING SHIPBUILDERS
PRIVATE ABG SHIPYARD BHARATI SHIPYA= RD L&T
PUBLIC
COCHIN SHIPYARD HIND SHIPYARD
RIL in talks with dredg= ing cos
TALKS are currently o= n, and it is likely to take a final shape in a month or two,” said a senior = RIL official. He said the Kakinada facility will be owned by Reliance Logist= ics while the shipyard project will be owned by Reliance Logistics Investmen= t and Jai Corp, a company belonging to Anand Jain. An RIL spokesperson refus= ed to talk about the proposed plans. An e-mail questionnaire sent to RIL wen= t unanswered.
Amma Lines, the initial promoters = of Rewas Port, is expected to join hands with the Reliance Group for the two= projects. Sources said Amma Lines, promoted by a first-generation entrepren= eur Meka Vijay Papa Rao, has already signed an agreement with the Dutch dredging maj= or IHC Holland to bring their ship designs to India. While the dredging comp= any will help Rewas Port deepen the channel and berths, it is also ho= ping to bid for other dredging contracts coming up in India and abroad.
&= nbsp; According to Rewas Ports president KV Natarajan, the= dredging project at Rewas Port will make it the largest in India, even bigg= er than the controversial Sethusamudram Ship Canal Project (SSCP) in terms o= f volume. “Over 120 million cubic metres will be dredged in the Amba river a= t Rewas at an estimated cost of Rs 1,800 crore for the first phase alone,” h= e said. This is much bigger than Sethusamudram Canal which involves dredging= of 80-90 million cubic metres, at a revised cost of around Rs 2,600 crore, = which has now on the slow track due to political opposition and a few legal cases= .
