DREDG­ING PORTS FOR SAFE PAS­SAGE TO PROF­ITS

HERE IS WHY

Dalal Street Investment Journal - - RECOMMENDATIONS EQUITY -

DCI preferred choice in the in­dus­try Gov­ern­ment ini­tia­tives to help DCI grow In­creas­ing growth vis­i­bil­ity

Dredg­ing Cor­po­ra­tion of India Ltd (DCI) is a Mini-ratna pub­lic sec­tor unit en­gaged in the busi­ness of dredg­ing. DCI un­der­takes dredg­ing ac­tiv­ity ex­clu­sively for In­dian sea­ports. DCI is one of the old­est play­ers in the dredg­ing in­dus­try in India. DCI is the preferred choice and un­der­takes dredg­ing re­quire­ments of ma­jor­ity of ports in India. DCI un­der­takes cap­i­tal dredg­ing as­sign­ments, de­pend­ing on avail­abil­ity of ves­sels and other lo­gis­tics re­quire­ments.

Large ves­sels in India can be berthed only by DCI. This of­fers sig­nif­i­cant op­por­tu­nity for DCI as the dredg­ing ac­tiv­ity is on the rise in In­dian mar­kets. If we go by the in­for­ma­tion pro­vided by Min­istry of Ship­ping (MOS), at least 12 ma­jor ports have pro­posed to in­crease their ca­pac­ity in the next five years, which en­tails dredg­ing mar­ket pegged at ₹20,000 crore. Set­ting up of ad­di­tional berths at ma­jor­ity of pri­vate ports, along with an­nounce­ment of new ma­jor ports, pegs the size of the dredg­ing mar­ket by vol­ume at over 1 bil­lion cu­bic me­tres in the com­ing five years. Min­istry of Ship­ping has set ini­tial tar­gets and this would lead more work or­ders for DCI. Clearly, DCI is the undis­puted leader in the main­te­nance dredg­ing busi­ness.

DE­MAND DRIV­ERS

1.

2.

3. Prospects of de­vel­op­ment and main­te­nance of ex­ist­ing ma­jor ports

Build­ing new ports

On­shore re­source ex­plo­ration

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