India’s Swan Defense Shipyard Revives Old Projects as it Develops Yard
Efforts continue to show progress at reviving India’s shipbuilding industry at the yard in Pipavav, formerly operated by the Reliance Group. Relaunched as Swan Defence and Heavy Industries Limited, the yard reports it has received a contract to finish five ships ordered in 2009 and sitting idle for nearly a decade due to the collapse of the operations. It is the second deal recently announced by SDHI to revive old projects.
SDHI reports it completed a deal to sell the hulls of five incomplete offshore supply vessels (OSV) and has now received a contract to finish the construction of the vessels. The ships were originally part of an order placed in 2009 to build a dozen OSVs for India’s Oil and Natural Gas Corporation while the yard operated as Reliance Naval and Engineering. The first seven were completed and delivered before Reliance’s financial troubles, which delayed the next five ships. Work was stalled by 2017, and the yard later went into bankruptcy.
When the new owners bought the yard and began the efforts to relaunch the operations, the deal included a number of incomplete projects. SDHI reports it sold the five incomplete OSVs to San Maritime India, an offshore operator with more than 40 vessels. San Maritime acquired the ships on an “as is, where is” basis and has now contracted with SDHI to complete the construction of the vessels.
The OSV order came in the same month as SDHI also reported a defense export order from the Government of Oman. The Indian news outlet ETInfra writes that this order is also part of the efforts to “clear the baggage from the past.” It reports that the prior operators had received an order from the Indian Coast Guard for a training ship, which was also partially constructed before the bankruptcy.
SDHI reports the vessel is expected to be delivered within 18 months to the Royal Navy of Oman. It measures 104 meters (341 feet) and will have a displacement of approximately 3,500 tons. It will feature modern classrooms, training offices, and accommodations for up to 70 officer cadets. It will be outfitted with state-of-the-art navigation systems and communications and be capable of conducting helicopter operations.
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Under the new leadership, the yard seeks to be a significant part of India’s efforts to expand its shipbuilding to become a key player in the global market. SDHI in January booked India’s first chemical tanker order and one of the largest deals for the Indian industry. It was contracted to build six 18,000 dwt chemical tankers for Rederiet Stenersen valued at $227 million. Each of the tankers will measure 150 meters (492 feet) and will be built to Ice Class 1A and feature advanced dual-fuel LNG-ready hybrid propulsion.
The company says these orders “reinforce India’s indigenous shipbuilding capabilities and its growing stature as a global maritime hub.” The Government of India recently rolled out targeted financial assistance and incentive schemes to help support the expansion of the shipbuilding industry. SDHI highlights that it is creating a shipbuilding ecosystem that will support local vendors and service providers.