Defense stock, Cochin shipyard hits 5 high, securing largest ASTDS tug order
Adani Ports & SEZ has made a significant move in the maritime industry by placing an order for eight 70-ton Bollard Pull Azimuthing Stern Drive (ASD) tugs. This order was placed through its subsidiary, Ocean Sparkle Limited, with Udupi Cochin Shipyard Limited, a prominent shipyard in India. The announcement has had an immediate impact on the stock market, causing the stock circuit to hit a 5% high. This article delves into the details of the order, the specifications of the tugs, and the broader implications for the shipbuilding industry in India.
Details of the Tug Order
The recent order for eight tugs adds to the three tugs already under construction at Udupi Cochin Shipyard Limited (Udupi-CSL) for Ocean Sparkle Limited. This brings the total number of tugs ordered to eleven. Each tug will measure 33 meters in length, 12.2 meters in beam, and have a draft of 4.2 meters. The vessels will be powered by two main engines, each producing 1838 kW, and will feature 2.7-meter propellers sourced from Niigata IHI Power Systems Co. Ltd. Additionally, the deck equipment will be provided by W-Rig Limited. The design of these tugs comes from Robert Allan Limited, a globally recognized design house for harbor tugs.
These tugs are built to meet the Approved Standard Tug Design and Specifications (ASTDS) set forth by the Government of India. This initiative aims to promote self-reliance in the maritime sector, aligning with the Atma Nirbhar Bharat campaign. Udupi-CSL has been at the forefront of this initiative, having already delivered two 62-ton Bollard Pull tugs for Ocean Sparkle Limited in 2023 and two 70-ton tugs for Polestar Maritime Limited in 2024. The shipyard’s commitment to quality and timely delivery has positioned it as a key player in the Indian shipbuilding landscape.
Udupi Cochin Shipyard’s Growth and Future Plans
Since its revival in 2020 by Cochin Shipyard Limited, Udupi-CSL has experienced remarkable growth. The shipyard’s order book has now surpassed INR 2000 crores, reflecting its increasing prominence in the industry. In addition to the tugs for Ocean Sparkle Limited, Udupi-CSL has secured contracts for constructing six 3800 deadweight general cargo vessels and eight 6300 deadweight dry cargo vessels for Wilson ASA, a Norwegian company. The first of these general cargo vessels was launched in December 2024.
Udupi-CSL is also working on a 70-ton Bollard Pull tug for Polestar Maritime Limited. The shipyard’s ability to deliver high-quality vessels on time has set a benchmark in the industry. Mr. Madhu Nair, the Chairman and Managing Director of Cochin Shipyard Limited, emphasized the commitment to transforming the maritime sector. He mentioned plans to introduce Battery Electric Tugs through the upcoming Green Tug Transition Programme (GTTP) announced by the Government of India. This initiative aims to enhance sustainability in the shipping industry, aligning with global trends toward greener technologies.
The order for new tugs by Adani Ports & SEZ not only signifies a boost for the company but also highlights the growing capabilities of Udupi Cochin Shipyard Limited in the Indian maritime sector. As the industry evolves, Udupi-CSL is poised to play a crucial role in meeting the demands of modern shipping while adhering to sustainability goals.
