The Indian maritime sector offers a plethora of opportunities for dredging. Major ports are expected to deepen and widen their navigational channels in order to attract deep draft vessels. The Dredging Guidelines 2021 envisages dredging to the tune of 3 billion cubic metres (bcm) (1.6 bcm capital dredging and 2.4 bcm maintenance dredging) over the next 10 years, presenting significant dredging prospects. The development of greenfield ports by the major port trusts and maritime states also offers considerable dredging opportunities. As an example, Andhra Pradesh is coming up with three greenfield ports, which would require a significant amount of dredging work.
Given capacity augmentation plans at existing ports, upcoming greenfield ports, increased need for land reclamation and the government’s ambitions to develop inland waterways as an alternative mode of transportation, dredging demand is projected to remain strong. Due to their large capacity expansion plans, ports are likely to account for the majority of dredging demand. Thus, ample opportunities exist for private players, as the Dredging Corporation of India alone will not be able to meet the huge demand.
As of August 2021, 802 projects entailing an investment of Rs 5.52 trillion have been identified for implementation across the four pillars of the Sagarmala programme – port modernisation and new port development, port connectivity enhancement, port-linked industrialisation and coastal community development. Of this, 172 projects worth Rs 882.35 billion have been completed, 235 projects worth Rs 2.16 trillion are under implementation, while the remaining 395 projects worth Rs 2.48 trillion are at various stages of development. Besides, greenfield port development has also been identified under the programme, offering a significant amount of capital dredging. Meanwhile, the declaration of 106 new NWs also presents a huge opportunity. As with other industries, the Covid-19 outbreak impacted the dredging industry. However, the impact was felt more in capital dredging projects, which came to a complete halt due to the restrictions imposed to stem the spread of the virus. Maintenance dredging works at ports continued despite the pandemic.
As of February 2021, India Infrastructure Research estimates that dredging works to the tune of over Rs 30 billion will be/are being implemented under the Sagarmala programme. Further, the deepening and widening of ports under brownfield development; development of waterways; and restoration of waterbodies, floodplains, dams and reservoirs offer considerable opportunities to dredging contractors. At the same time, there will be an increase in the demand for new dredgers. Significant scope exists for indigenous manufacturing of dredgers due to their cost competitiveness.