Enayam Port

Tamil Research Institute
RAPID TECHNO-ECONOMIC FEASIBILITY REPORT FOR
DEVELOPMENT OF COLACHEL PORT AT TAMILNADU
FINAL REPORT
Many shipyards have been closing amid the demand glut.
• STX Finland closed the world's leading ferry builder
• 1/3rd of China's yards may close by 2018 – according to trade association for China's shipbuilding
industry
• Chinese shipbuilder Ronsheng laid off 80% of workforce in 2 years
• Number of active shipyards fell from 1168 in 2009 to 696
The situation is expected to continue as majority of current fleet would not get replaced in the next 5-10 years.
Hence, the effects of surplus tonnage are long-term.
Amongst the four main shipbuilding sub sectors, only defence looks feasible for Enayam.
4 Main Shibuilding Sectors
Key Challenges and Opportunities
Commer
-cial
• Liquid, dry bulk,
container vessels
• Dominated by China
and Korea
• Difficult to compete with China's heavy govt. subsidy and Korea's
technical sophistication
• Low labour productivity in India – 55 man days/ton versus Japan's 25
man hours /ton offsets cheap labour
• High material cost because of dependency from steel imports
Defence
• Warships, aircraft
carriers, submarines for
the Indian Navy
• Indigenous shipbuilding - 60% of Navy's acquisition budget
• Low productivity – 1.33 and 0.48 ships per year for MDL & CSL
respectively against international standard of 5.7 and build time 4
times international standard
• Indian navy's demand > capacity of public shipyards
• Make in India push to spur demand for Indian-made defence vessels
• Opportunity for new players with estimated 95 vessels due for
acquisition by Navy by 2027
Inland
and
coastal
vessels
Service
• Transport of goods
through navigable
waterways and along
coast
• Dredging vessels, offshore
supply/supportessels
• Yard must be located close to a river bank
• Lack of automation – inability to deliver large orders
• Inland water transport only 1% of transport market
• Coastal shipping – 7% domestic cargo
• Dutch monopoly on dredging vessels
• Offshore vessels dominated by Singapore, Norway, China
• Oversupply of offshore vessels => low new-build order volume
Source: Discussion with expert; media reports, report by working group, industry reports
Only feasible option
Figure 85: Main shipbuilding sub sectors
2. Ship repair
Ship repair can be broadly classified into two types – scheduled and unscheduled.
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