ISD to buy two dredging ships for Rs 100 cr

Chennai-headquartered International Seaport Dredging Limited (ISD) is set to buy two new dredging ships, which will be deployed in Indian waters. The two ships would cost around Rs 100 crore. ISD is a joint venture between engineering and construction company Larsen & Toubro (L&T) and Belgium-based Dredging International, which hold 51 per cent and 49 per cent stake respectively.

Speaking to Business Standard, Alian Bernard, chief executive officer, Dredging Environmental and Marine Engineering, the holding company of Dredging International, said the company currently had two ships, which are working in the Indian waters. The company is planning to add a CSD 6200 kW and a water injection dredger, which are expected to be delivered in April 2009.

The investment of Rs 100 crore will be funded through debt and equity, added Bert Arien, resident manager, Dredging International.

The company, which was established in India in March 2004, has executed maintenance work at ports of Mundra, Visakhapatnam, Ennore and Kakinada and capital (new ports) work at Hazira, Gangavaram and Karaikal.

It is currently working at the Dhamra port, which is a 50:50 joint venture of L&T and Tata Steel in Orissa. The company is dredging 60,000 cubit metre of soil every day and the project is expected to be completed by 2010.

According to Arien, ISD’s turnover increased to Rs 210 crore in 2007-08 from Rs 51 crore in 2004-05. The company expects to close the 2008-09 financial year with a turnover of Rs 360 crore and has set a target of Rs 500 crore in the next two years.