Page 10: of Maritime Reporter Magazine (February 2011)

10 Maritime Reporter & Engineering News

According to new analysis from Frost & Sullivan, the shipbuilding and repair market in India is poised to pick up mo- mentum with the increasing penetration of Indian shipbuilding companies in the offshore vessels (OSVs) segment. Indian companies have established strong cre- dentials in the building and repair of

OSV, resulting in a spike in orders for such vessels from the Indian industry.

The limited capacities related to OSVs in leading shipbuilding nations such as

Japan and South Korea are resulting in diversion of orders to India, driving up the fortunes of the Indian shipbuilding and repair market.

The market earned revenues of $1.6b in 2010 and expects this to reach $3.5b in 2016. “About 40 percent of the India-owned fleet is more than 20 years old, and In- dian owners will need to spend about $4 billion to replace these during 2010- 2015,” said Frost & Sullivan Transporta- tion & Logistics Program Manager

Srinath Manda. “In addition, the Interna- tional Maritime Organization (IMO) has mandated the phasing out of all single- hull vessels by 2010, and single hull tankers constitute about 15.8 percent of the total vessels owned by Indian ship- ping companies.”

The future of the Indian shipbuilding and repair market looks promising and is likely to double in size in the next five to six years. The growth potential is further enhanced with the Indian Government aiming for the nation’s shipbuilding sec- tor to attain a 5 percent share in the global market by 2017.

Although the outlook for the market is bright, there are some challenges cloud- ing its landscape. “India has a vast coast- line, but there is an acute shortage of deep draft water space along the coast,” said Srinath. “This restricts the type and size of ships that can be built or repaired in India, thereby severely curbing the full growth potential of the Indian shipbuild- ing and repair market.”

The Indian Government is encouraging greater private participation in the sector and a new world-class commercial ship- yard is being built on the eastern coast.

These factors will rev up growth prospects for the market. The Govern- ment is also facilitating improvements in port and infrastructure facilities and eas- ing regulations and taxes to assist the in- dustry in addressing the challenges and overcoming its barriers. Participants in this space are striving to gain a foothold in the small and special category vehicles segment, such as offshore vessels to op- timize business traction.

NEWS

Demand for Offshore Vessels will Drive India

Incat to Build LNG-Powered

Fast RoRo

Incat won a contract to build what it reports to be world’s first high speed passenger RoRo powered by

LNG. The 99m high speed ferry, with capacity for more than 1000 passengers and 153 cars, is being built at the Incat Tasmania shipyard at Prince of Wales Bay in Hobart for delivery in 2012 to an unnamed customer. Incat and Revolution De- sign engineers are working with technical personnel from GE in Eu- rope and the U.S. on this project, which will be the first installation of

LNG powered dual fuel engines in an Incat high speed ferry, and the first high speed craft built under the

HSC code to be powered by Gas

Turbines using LNG as the primary fuel and marine distillate for standby and ancillary use. In each catamaran hull a GE Energy

LM2500 Gas Turbine will drive a

Wärtsilä LJX 1720 waterjet, a de- parture from the usual use of two engines and two jets per hull as used in the diesel powered Incat vessels. The GE Energy LM2500

Gas Turbines are to be modified to meet class requirements so that ei- ther LNG or marine distillate can be burned.

The Indian Government is encouraging greater private participation in the sector ... the Government is also facilitating improvements in port and infrastructure facilities and easing regulations and taxes to assist the industry ...