Kerala muses new shipyard, but not in Kochi or Thiruvananthapuram

Kerala is considering building a new shipyard, Malayala Manorama reported. The state government has tasked the Kerala Maritime Board with identifying land for the project.

The new shipyard will potentially be in the north of the state, and not in Kochi (near Cochin Shipyard) or in Thiruvananthapuram (near Vizhinjam International Seaport), according to reports.

The Kerala government’s action came on the heels of a letter from the Union Ministry of Ports, Shipping, and Waterways to chief ministers offering financial assistance for establishing ship construction and repair facilities if suitable land is found.

The requirement is for a coastal area of 2,500-3,000 acres spanning a kilometre along the sea.

Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal recently announced a Rs 69,725 crore package for the maritime sector, including ship construction.

Of this, Rs 20,000 crore is specifically allocated to enhance the country’s shipbuilding capabilities, and Kerala hopes to receive the Centre’s assistance from this fund.

 

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However, details regarding the amount and nature of the aid (grant or loan) are still awaited from the Union government. The state government is initiating efforts by focusing on land identification.

Thiruvananthapuram once again sidelined?

The Union government has suggested prioritising locations near major ports like those in Thiruvananthapuram and Kochi. However, Pinarayi Vijayan-led Kerala government has other plans.

Kochi already has a shipyard. The availability of land in Vizhinjam is limited, the report claims, despite the district of Thiruvananthapuram having ample land parcels along the coast stretching from Poovar to Perumathura and even till Varkala.

Therefore, North Kerala could be being considered as a potential location, much like the recent development of the Kannur International Airport. If securing 2,500 acres at one location proves difficult, the land may be acquired in multiple locations, the report further stated.

The shipyard could build not only ships but also barges, tugs and mini-cruises. Currently, agencies such as the Kerala Inland Navigation Corporation rely on shipyards in Goa because of the workload at Cochin Shipyard.

State’s own shipyard project

After receiving the Union government's letter, the state government inquired with Cochin Shipyard and Adani Vizhinjam Port Ltd (the operators of Vizhinjam Port) about their plans to establish a new shipyard. Both entities responded that they had no such plans.

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And now, the government is considering its own project. By independently identifying land and investments, the state government aims to retain ownership, even if the project is implemented with Union assistance. A company modelled after CIAL (Cochin International Airport Ltd) is also being considered.

This development comes on the heels of the Centre’s ambitious Maritime Amrit Kaal Vision 2047, which set a roadmap for maritime sector growth with investments of Rs 80 lakh crore and millions of jobs through Sagarmala Programme. Sagarmala includes 840 approved projects, with 272 completed and more underway.

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