Dr Sarath Obeysekera

6.1 Global and Regional Perspective

Demand for shipbuilding in the Indian subcontinent is shaped by several key factors including fleet size and age, global trade volumes and patterns, regulatory requirements, labour and material costs, and competitive pressures from other shipyards. Ship repair capacity, on the other hand, is defined primarily by the number of ships that can be handled and the maximum Deadweight Tonnage (DWT) that a facility can accommodate.

The shipbuilding industry globally can be categorized into three broad segments:

• Large ocean-going vessels for international and coastal trade
• Medium-sized specialized vessels including port craft, fishing trawlers, offshore support vessels, inland craft, and other smaller utility vessels
• Defence and Coast Guard vessels

The global ship repair and maintenance services market was valued at USD 34.60 billion in 2022, and is projected to grow at a CAGR of 4.1% between 2022 and 2029. The Asia-Pacific region remains the world leader, driven by the dominance of China, South Korea, Japan, Singapore, and India in shipbuilding and ship repair activities.

India, Sri Lanka’s closest maritime neighbour, holds a potential 7.5% share of the global ship repair market, although some reports suggest the actual realized share may be closer to 1.5%. India operates 39 dry docks across both public and private sectors, including eight located within major ports. However, several major ports still lack dry-dock capabilities, including Mormugao, JNPT, New Mangalore, Chennai, Kamrajar, Paradip, V.O. Chidambaranar, and Haldia.

Despite India’s advantages—such as low labour cost, a skilled workforce, and a strategic position along major shipping routes—the country faces constraints: limited dry-dock availability, bureaucratic delays, high taxation, and competition from regional players such as Sri Lanka and Bangladesh. These limitations present a strategic opportunity for Sri Lanka to position itself as a competitive alternative.

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6.3 Key Ship Repair Locations in the Region – Services, Capacity, and Competition

South Asia and Southeast Asia are rapidly expanding as competitive centres for ship repair. Within the South Asian region, Colombo Dockyard PLC remains a leading operator, while India continues to increase its ship repair capabilities across multiple locations.

Major regional ship repair service providers include:

• India: Goa Shipyard, Cochin Shipyard, Mazagon Dock Shipbuilders (Mumbai), Garden Reach Shipbuilders & Engineers (Kolkata)
• South Korea: Hyundai Mipo Dockyard, Dae Sun Shipbuilding
• China: China Shipbuilding Corporation
• Singapore: Sembcorp Marine, Keppel Offshore & Marine
• Middle East: Dubai Drydocks (UAE), Oman Drydock Company, Arab Shipbuilding and Repair Yard (ASRY – Bahrain)

Key Market Characteristics

• Supply of global dry-dock facilities is concentrated in China, Singapore, South Korea, and Japan.
• Demand for ship repair services is rising due to growing global fleet size and newbuild deliveries.
• Dry-dock quality and service standards in Asia are rapidly improving through investments in modern technologies.
• Increased supply has intensified price competition among shipyards.
• Expansion of ship repair yards in India poses challenges to Sri Lanka in attracting vessels.
• Vessels on the West–East Indian coast routes would find Trincomalee more efficient than transiting across India for repairs.
• Ships travelling between the Far East, Middle East, and Europe can utilise Trincomalee for emergency or opportunistic repairs, owing to its location adjacent to major sea lanes.

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6.10 Why Sri Lanka Should Be Chosen as a Ship Repairing Hub

Ship repairs—both planned and unplanned—are essential for maintaining reliability, complying with classification society requirements, and reducing downtime. Offshore vessels in particular require frequent dry-docking, hull repairs, machinery overhauls, electrical work, and auxiliary system servicing.

The global ship repair market is expected to grow from USD 33.04 billion in 2022 to USD 36.65 billion in 2023, at a remarkable CGR of 10.9%, reaching USD 54.05 billion by 2027. Major ship repair countries include China, South Korea, India, Japan, Germany, Brazil, Australia, Russia, Indonesia, the UK, and the USA.

Strategic Advantages of Sri Lanka

• Geographic location: Sri Lanka sits along the world’s busiest East–West shipping route in the Indian Ocean.
• Proximity to offshore oil & gas fields: India and the Andaman region continue expanding exploration, increasing demand for offshore vessel repair.
• Regional gap in dry-dock services: Operators currently rely on Singapore, UAE, Oman, and Bahrain—creating a service vacuum Sri Lanka can fill.
• Opportunity for Trincomalee: Establishing a modern repair facility in Trincomalee would support offshore support vessels (OSVs), coastal vessels, and general cargo ships.

By capturing even 0.1% of the Asia-Pacific ship repair market—valued at USD 20.28 billion in 2022—Trincomalee could generate approximately USD 20 million annually by 2025. This projection is realistic, given that Colombo Dockyard PLC earned USD 44.19 million from ship repair alone in 2022.

Additional Benefits

• Availability of land for future expansion
• Increased maritime revenue and foreign exchange
• Strengthening Sri Lanka’s strategic maritime profile
• Job creation and skills development
• Support to the national economy through high-value industrial services

Regards

Dr Sarath Obeysekera