Sembawang Shipyard and Kakinada Seaportsare forming a joint venture company to establish and operate a marine and offshore facility catering.
Sembawang Shipyard, a wholly-owned subsidiary of Sembcorp Marine, and Kakinada Seaports Limited (Kakinada Seaports), are forming a joint venture company, Sembmarine Kakinada Ltd (SKL), to establish and operate a marine and offshore facility catering to offshore drilling units and merchant vessels trading or operating in Indian waters.
SKL is strategically located in the East Coast of India between Vishakhapatnam and Chennai Port.
"The East Coast of India is one of the world"s key oil and gas exploration areas. The investment in this facility is a strategic fit and is in line with Sembcorp Marine"s Indian hub strategy to cater to the growing needs of customers operating in India. Well supported by the Indian government and the oil and gas industry, SKL will boost the business of Sembcorp Marine and further promote the Kakinada Port area," the Singaporean company said in a release.
Sembcorp Marine through Sembawang Shipyard will hold 19.9% share of the JV"s initial investment of US$50 million, with an option to increase to 40%. The joint venture partner, Kakinada Seaports is the first private port to operate in the East Coast of India and it is currently one of India"s busiest ports. Kakinada Seaports serves more than 3,500 ship-calls annually and plays an important role in the efficient turnaround of vessels requiring replenishment, bunkering and ancillary services.
SKL will initially provide riser/equipment repairs, afloat repairs and modules fabrication. Within 3 to 5 years, SKL will become a one-stop integrated offshore service facility catering to offshore vessels and merchant ships including the repairs and servicing of offshore vessels and ships, new-building of offshore vessels and ships, riser/equipment repairs and modules fabrication.
Sembmarine Kakinada will commence operations immediately by using the available pier at the Kakinada port.