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Ship repair & refit
What it is
Servicing, dry-docking, overhaul and mid-life upgrade of vessels, as distinct from new construction. It requires dry docks and skilled trades but far less design capability, and turnaround is measured in weeks rather than years
India has sought to build repair capacity alongside new-build capability
Impact on industries
- Counter-cyclical to new orders and far less capital-intensive, so it stabilises yard utilisation when the newbuild cycle turns
- Margins are better than newbuild and payment cycles are far shorter, since work is completed in weeks
- India's location on major shipping lanes and low labour cost make it a natural repair hub, an opportunity largely ceded to Colombo, Dubai and Singapore
- Requires dry dock availability, which competes directly with newbuild for the same infrastructure
- Demands fast turnaround and reliable spares supply, since a ship in dock earns nothing and owners choose on schedule certainty