L&T Wins Contract
Larsen and Toubro Ltd (L&T) has won a contract valued at about $240m to build four specialized ships for Dutch company RollDock BV.
Indian companies are currently building about 245 ships worth more than Rs20,000 crore. Of this, about 70% are for overseas clients, who are placing orders at Indian yards as shipbuilding facilities in maritime strongholds such as , and are fully booked till 2011.
Each ship will cost about $60m to build. These will be built at L&T’s shipyard at Hazira in and would take the firm’s order book to 12 ships. The Mumbai-based company launched its shipbuilding venture in May 2006 with an order for building four ships valued at Rs440 crore from Rotterdam-based Zadeko Ship Management CV (now known as ). The Dutch firm placed a repeat order in August 2007 with L&T for two more ships valued at more than $70 million.
The proposed shipyard-cum-port project, which will cost more than Rs3,000 crore, will be capable of building 25 ships a year, including five very large crude carriers and 20 panamax vessels. The yard will also be able to repair 50-60 ships a year.
Very large crude carriers have a capacity to carry 300,000-350,000 tonnes of crude oil and panamax vessels can can each carry 120,000-200,000 tonnes of dry bulk commodities.
L&T ventured into shipbuilding by converting part of its heavy engineering complex at Hazira into a yard that can build three mid-size ships with a cargo carrying capacity of 15,000-20,000 tonnes in a year. Although the company is now expanding the capacity of the Hazira yard to make six ships a year, it cannot make bigger ships there.