Cochin Shipyard sets sights on green shipping market in Europe
Cochin Shipyard Ltd, the country’s largest shipbuilding facility, sees green vessel construction becoming a major source of non-defence earnings in the coming years
- Apr 16, 2024,
- Updated Apr 16, 2024 12:45 PM IST
India’s leading shipbuilder, Cochin Shipyard Limited (CSL), in February carried out the steel cutting of the first zero-emission feeder container vessel in the world using green hydrogen as the fuel for Samskip, a leading logistics company headquartered in the Netherlands.
The feeder container project is among the latest bagged by the CSL as part of its plan to turn green vessel construction into a key earning source in the next couple of years.
Europe is set to become a major market for green vessels and CSL is already flooded with queries from companies primarily from Western Europe looking to transition to green shipping as part of their commitment to reduce carbon emissions.
Madhu S Nair, CMD of CSL, sees two types of demand—one from European short sea vessels, which are various type of cargo, multipurpose vessels plying largely within Europe; and the second from Commissioning Service Operation Vessel (CSOV) for offshore wind farms.
“Average age of the fleet of these vessels (around 2,500 in numbers) could be getting close to 20 years. And naturally, they would need replacement. And when they are getting replaced, they will get replaced by newer technologies and lower emission vessels—what we call green or hybrid vessels. Right now, there are various agencies that feel that this is the right time to start investing in this segment. And we are getting into that circuit,” said Nair in a recent investor call.
In the third quarter of FY24, the company witnessed a 62% increase in turnover, reaching Rs 1,021.45 crore, compared with Rs 631 crore in Q3FY23. The profit after tax for Q3FY24 stood at Rs 248 crore, a 109% increase from Rs 118 crore in Q3FY23.
In a report, ICICI Direct last month said CSL has “strong capabilities in ship-building and ship repair; execution pick-up of strong order-backlog to drive growth and order inflows opportunity remains robust” as investment rationale.”
The company has also delivered two autonomous electric barges for ASKO Maritime in Norway. This, along with the Kochi Metro vessels, has burnished Cochin Shipyard’s credentials in the West European green shipping circuit.
In January, CSL secured orders from a European client for the design and construction of a Hybrid Service Operation Vessel, with the project cost estimated at Rs 500 crore for the vessel scheduled to be delivered in 2026.
Back home, CSL recently delivered the 13th Electric Hybrid 100 Pax Water Metro Ferry to Kochi Water Metro. It is equipped with electric hybrid technology, ensuring reduced emissions. It has also received orders for delivery of vessels to Varanasi and Ayodhya.
India’s leading shipbuilder, Cochin Shipyard Limited (CSL), in February carried out the steel cutting of the first zero-emission feeder container vessel in the world using green hydrogen as the fuel for Samskip, a leading logistics company headquartered in the Netherlands.
The feeder container project is among the latest bagged by the CSL as part of its plan to turn green vessel construction into a key earning source in the next couple of years.
Europe is set to become a major market for green vessels and CSL is already flooded with queries from companies primarily from Western Europe looking to transition to green shipping as part of their commitment to reduce carbon emissions.
Madhu S Nair, CMD of CSL, sees two types of demand—one from European short sea vessels, which are various type of cargo, multipurpose vessels plying largely within Europe; and the second from Commissioning Service Operation Vessel (CSOV) for offshore wind farms.
“Average age of the fleet of these vessels (around 2,500 in numbers) could be getting close to 20 years. And naturally, they would need replacement. And when they are getting replaced, they will get replaced by newer technologies and lower emission vessels—what we call green or hybrid vessels. Right now, there are various agencies that feel that this is the right time to start investing in this segment. And we are getting into that circuit,” said Nair in a recent investor call.
In the third quarter of FY24, the company witnessed a 62% increase in turnover, reaching Rs 1,021.45 crore, compared with Rs 631 crore in Q3FY23. The profit after tax for Q3FY24 stood at Rs 248 crore, a 109% increase from Rs 118 crore in Q3FY23.
In a report, ICICI Direct last month said CSL has “strong capabilities in ship-building and ship repair; execution pick-up of strong order-backlog to drive growth and order inflows opportunity remains robust” as investment rationale.”
The company has also delivered two autonomous electric barges for ASKO Maritime in Norway. This, along with the Kochi Metro vessels, has burnished Cochin Shipyard’s credentials in the West European green shipping circuit.
In January, CSL secured orders from a European client for the design and construction of a Hybrid Service Operation Vessel, with the project cost estimated at Rs 500 crore for the vessel scheduled to be delivered in 2026.
Back home, CSL recently delivered the 13th Electric Hybrid 100 Pax Water Metro Ferry to Kochi Water Metro. It is equipped with electric hybrid technology, ensuring reduced emissions. It has also received orders for delivery of vessels to Varanasi and Ayodhya.