Home » Shipping firms may diversify into dredging sector

Shipping firms may diversify into dredging sector

Shipping firms may diversify into dredging sector
Shares

Experts suggest shipbuilding and shipping companies to diversify into dredging segment in order to cope with the slackness in cargo business.

Shipyards are not getting new orders for ships from shipping companies owing to oversupply of fleet and slowdown in the international trade. Under this condition, shipyards may diversify into construction of dredgers in order to have an alternative source of revenue.

Ports across the country would demand dredgers in order to deepen the draft in their channel and thereby enable large vessels to call at the port.

According to some analysts, Cochin Shipyard, Shipping Corporation of India (SCI) may foray into dredging business. SCI is expected to get into the dredging business and provide its services to the Kandla Port. SCI plans to buy its own dredgers and deploy it at the Kandla Port, reports indicate.

The union shipping ministry wants the Cochin Shipyard to get into manufacturing dredgers which will be bought by the Dredging Corporation of India. In a three-way partnership, DCI would buy the dredgers and deploy it for dredging work at the Paradip Port.

The shipping ministry is keen to go ahead with the project after finalizing the cost structure and taking stock of the shipyardÂ’s capacity to take up such an order.

Leave a Reply