A self-reliant DCIL will be ready to meet goals of Maritime Vision-2030

After Visakhapatnam Port Trust (VPT)-led consortium comprising four major ports picking up 73.47 per cent (Rs1,056cr) of GoI in Visakhapatnam-headquartered Dredging Corporation of India Ltd (DCIL), DCIL is showing good results. DCIL embarked on an ambitious plan to remain globally-competitive by laying emphasis on quality and adhering to delivery schedule.

Prof George Yesu Vedha Victor, Managing Director of the company, has rich experience in Indian marine and dredging industry. A commissioned officer of the sixth batch of All India Dredging Cadre, a C-suite executive, he has earned recognition in marine, ports and dredging sector. In an exclusive interview to Bizz Buzz, Prof Victor said notwithstanding the challenging environment, DCIL is poised to have a bright future ahead by becoming self-reliant to meet the goals of Maritime Vision 2030.

How is Dredging Corporation of India Limited (DCIL) doing during the pandemic?

DCIL is slowly bouncing back to normal operations after the cascading effect of pandemic coupled with imposition of lockdown although the ports being essential services are fully operational with certain limitations. The pandemic has an impact on the service sector including the dredging industry due to disrupted running and planned repair, prolonged dry dock repairs, transfer of crew to the dredgers from their home towns resulting in reduced efficiency of operation. Dredging industry is not an exception to the pandemic impact both on its revenue and its operations. Therefore, as a service industry, the dredging industry too had to face its fallout.

You have already decided to order the building of a new dredger from the Cochin Shipyard Limited. When will it be delivered?

The Ministry of Ports, Shipping and Waterways accorded approval for building a Trailing Suction Hopper Dredger of 12,000 m3 capacity by Cochin Shipyard Limited. This will be the first time we shall be building TSHD in an Indian shipyard. Otherwise, all these specialized dredgers were built by IHC in the Netherlands. DCIL shall build this dredger under make in India-Atma Nirbhar mission. The dredger will be delivered within 30 months of placing its work order.

How is the financial position of DCIL? How much turnover is expected during 2021-22?

Our financial position shall be positive in FY 2021-22 with a top line close to Rs 8 billion and we shall be transiting from negative number due to Covid effect to positive region. We shall also increase revenue from our overseas projects by emerging as the most competitive bidder with high quality delivery assurance.

What is your plan to augment the existing fleet by phasing out aging vessels?

Aging of dredgers need not necessarily be opted to replace, unlike in Asia. In European countries, dredgers of 40 to 50 years are in operation and the extended period of operations depends on its seaworthiness to operate that shall be certified by the Classification Society and Port State Authority. DCIL is undertaking extensive exercise to work out the cost benefit analysis to establish the residual age of the dredgers and depending on the economics and viability of cost analysis, we can determine the operation-ability of the dredgers. However, as a way forward, the Ministry of Ports, Shipping and Waterways approved the building of two more dredgers in 2024 and 2026 based on the first dredger technical and operational capability, thereby by 2029 we shall be self-reliant to meet the goals of Maritime Vision 2030.

After four major ports picked up a majority stake in DCIL, it seems your brand value has gone up and you have started getting fresh orders. Could you please elaborate?

It was a strategic plan of the Ministry of Ports, Shipping and Waterways to transfer government-owned shares to major ports under its administration, so that DCIL shall function under the administration of the ministry and cater to the requirements of all the major ports. Few ports have nominated the dredging projects to DCIL to save money on other projects that were awarded through a tender process. Dredging guidelines 2021 promulgate nomination of work to DCIL by the major ports after market price discovery. Guidelines also stipulate a fair and transparent process of nomination and cost of the project based on CIRIA cost calculation. With the ministry guidelines and the assistance of major ports, we are convinced that we shall transform into a 'Preferred Contractor.'

You have already earned a good name in Bangladesh. Is there any plan to offer overseas consultation and to undertake dredging contracts abroad?

Yes, we already submitted our expression of interest for project development consultancy work, port operations and for dredging work. We shall also enter into MoU with our foreign partners to secure work overseas. We shall be expanding to our neighbouring countries to commence our works.

What are the challenges posed to the dredging industry?

Major challenge is competition with contractors operating very old dredgers or Chinese-built dredgers, wherein their overheads and operating cost is minimal thereby crashing dredging cost. Secondly inadequate substrata and soil information that are seldom adequate for soil modelling for realistic estimate and cost preparation pose a challenge to the dredging industry.

You have specialisation in reclamation of land. Do you have plans to offer consultancy/undertake such projects mainly in the Middle East and other areas?

We have specialised in all spheres of marine dredging works as contractors and as project management consultants. DCIL is transforming from contractor to a status of preferred contractor by our clients. DCIL has earned its name as a reliable contractor to complete the works to the satisfaction of the clients. With our reliability and transformation, we have plans to expand to neighbouring countries as both a dredging contractor and an EPC contractor. To undertake project management consultancy, we are in discussion with reputed overseas dredging and civil contractors to form a consortium for bidding for projects. We have established ourselves as reliable project management consultants and have bagged big consultancy projects..