Cochin Shipyard wins Rs 550 crore order for zero emission feeder container vessels from Samskip Group

Defence PSU Cochin Shipyard Ltd. has bagged an order worth Rs 550 crore from NAVSHUTTLE 1 AS and NAVSHUTTLE 2 AS, Lysaker Norway, for the construction of two zero emission feeder container vessels.

NAVSHUTTLE 1 and 2 are part of the Samskip Group, headquartered in the Netherlands.

The first vessel is to be delivered in 28 months, while the second will be delivered within 34 months, according to the company's statement.

These ships, for which the order has been placed, can carry nearly 365, 45-feet long high cube containers and are intended to serve the European market where there is significant demand for sustainable transportation solutions.

Feeder Container vessels are medium-sized ships, which can carry between 300 to 1,000 containers on an average. These vessles mainly collect shipping containers from different ports and transport them to central container terminals or shipment hubs. It acts as a service between small ports and major ones.

Such Feeder Container Vessels are up to 3,000 TEU (Twenty-Foot Equivalent) - a unit of cargo capacity.

In an interaction with CNBC-TV18 last year post the commissioning of INS Vikrant, which was built by Cochin Shipyard, the company's CMD Madhu Nair said that the total orderbook for the defence segment stood at Rs 10,000 crore.

After a strong 2022, shares of Cochin Shipyard are down over 16 percent so far this year. Despite the correction, the stock is still up 50 percent over a 12-month period.