Adani Doubles Down on Tug Fleet Renewal
Adani Group Boosts Indian Shipbuilding Industry
The Indian government is making strides to enhance its domestic shipbuilding capabilities, and the private sector is stepping up to support this initiative. Recently, Adani Ports and Special Economic Zone Ltd. (APSEZ) placed a significant order with Cochin Shipyard in Kerala. This order includes eight 70-ton bollard pull harbor tugs, marking one of the largest contracts for an Indian shipyard by APSEZ. Valued at approximately $52 million, the delivery of these tugs is expected to commence in December 2026 and continue until May 2028. This move not only strengthens APSEZ’s fleet but also aligns with the government’s vision to boost local manufacturing and maritime infrastructure.
Significance of the New Tug Order
The recent order for eight harbor tugs will expand APSEZ’s fleet to a total of 152 vessels. This expansion is crucial for improving operational efficiency and safety in Indian ports. Prior to this, APSEZ had already contracted two 62-ton bollard pull ASD (Azimuthing Stern Drive) tugs for its subsidiary, Ocean Sparkle Ltd. These tugs have been successfully delivered and are currently operational at Paradeep Port and New Mangalore Port. Additionally, in June, APSEZ ordered three more ASD tugs, which are currently under construction at the Udupi Cochin Shipyard (UCSL).
APSEZ CEO Ashwani Gupta emphasized the importance of this collaboration with Cochin Shipyard. He stated, “This collaboration to procure from Cochin shipyard signifies our commitment to enhancing maritime infrastructure in India and demonstrates our confidence in our nation’s government-owned corporations (PSUs).” By utilizing local manufacturing capabilities, which are recognized as world-class, APSEZ aims to contribute significantly to the ‘Make in India’ initiative. This initiative encourages domestic production and aims to reduce reliance on foreign imports, thereby strengthening the Indian economy.
Adani Group’s Broader Investment Plans
The construction of new tugs comes at a pivotal time for the Adani Group, which is planning substantial investments in port infrastructure across India. Recently, APSEZ announced a commitment of around $1.2 billion to expedite the development of Vizhinjam, India’s transshipment port located in Kerala. The first phase of this ambitious project became operational in July, and APSEZ is determined to complete the second phase by 2028, significantly ahead of the original deadline of 2045. Once fully operational, Vizhinjam Port is expected to handle a capacity of three million Twenty-foot Equivalent Units (TEUs), positioning it as a key player in global shipping and trade.
