Adani Doubles Down on Tug Fleet Renewal

 

The Indian government’s ambition to promote domestic shipbuilding has received a major boost from the private sector. Last week, the Adani Ports and Special Economic Zone Ltd. (APSEZ) placed an order for eight 70-ton bollard pull harbor tugs at Kerala’s Cochin Shipyard. This is one of APSEZ’s largest orders in an Indian shipyard. The contract is estimated at $52 million, with delivery expected to begin in December 2026 and continue until May 2028.

The order for the eight tugs will expand APSEZ’s fleet to 152. Previously, APSEZ contracted the construction of two 62-ton bollard pull ASD (Azimuthing Stern Drive) tugs for its subsidiary Ocean Sparkle Ltd. Both tugs have already been delivered and are now deployed at Paradeep Port and New Mangalore Port. In addition, APSEZ placed an order for three additional ASD tugs in June. The construction for this earlier order is ongoing at the Udupi Cochin Shipyard (UCSL).

The new tugs are aimed at improving efficiency and safety of vessel operations in Indian ports. “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 leveraging local manufacturing capabilities, which are world-class, we aim to contribute to the ‘Make in India’ initiative,” said APSEZ CEO Ashwani Gupta.

The construction of new tugs comes at a time that Adani Group is planning massive port investments in India. Recently, APSEZ announced it would invest around $1.2 billion to fast-track completion of India’s transshipment port, Vizhinjam based in the southern state of Kerala. While the first phase of the port was operationalized in July, APSEZ has committed to complete the second phase by 2028, ahead of the original 2045 deadline. Once completed, Vizhinjam Port will have capacity for three million TEUs.

Adani Group has been under scrutiny since U.S. prosecutors brought criminal charges against founder Gautam Adani, who is alleged to have paid or promised about $265 million in bribes to Indian officials in order to sell them costly power from India’s largest solar project.