India to invest over US$6b in port and shipyard expansion

The government of India, through the Ministry of Ports, Shipping and Waterways (MoPSW), has announced a series of initiatives aimed at boosting the country's shipbuilding capacity and port capacity with a total investment of more than INR570 billion (US$6.6 billion).

The initiatives include an investment of INR300 billion (US$3.5 billion) in the construction of a new shipyard and an investment of INR270 billion (US$3.1 billion) for the development of a new cargo terminal to increase Deendayal Port's throughput from its present figure of 135 million tonnes per annum (MTPA).

The proposed shipyard will be able to build very large crude carriers (VLCCs) or other commercial ships of up to 320,000 DWT. The facility will have a projected manufacturing capacity of 32 ships per year, while the repair capacity is rated at 50 ships per year.

The new facility will also feature a marina, a fishing port, and space for ancillary services.

The MoPSW meanwhile expects that investment in the expansion of Deendayal Port will significantly increase the port's liquid cargo handling capacity. This will be accomplished through equipping one of the existing terminals with modern cargo handling equipment and a more efficient distribution system.

The MoPSW said this will significantly shorten the turnaround time of each tanker, while the proximity of the new terminal to the shipping channel will help reduce dredging requirements, thus allowing larger vessels to berth.