Kerala to get new PPP shipyard? What we know so far

The upcoming shipyard is now planned on the western side of the Ponnani Fishing Harbour in Malappuram district, under the Kerala Maritime Board

Ponnani Fishing Harbour - Manorama File photo of Ponnani Fishing Harbour | Fahad Muneer/Manorama

Kerala is reportedly set to get its second major shipbuilding hub, with a large yard coming up at Ponnani port in Malappuram district under the public-private partnership (PPP) model.

Officials, as per agencies, said that the project is expected to give a strong push to industrial growth and jobs in the Malabar region.

PPP shipyard in Ponnani

According to the project details, the shipyard will be developed on about 29 acres of coastal land on the western side of the Ponnani Fishing Harbour, under the Kerala Maritime Board. Once completed, it will be the state’s second shipyard after Kochi and is envisaged as a major maritime infrastructure project for North Kerala, agencies reported.

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The tender process for selecting the private partner has already been completed, and authorities expect to sign the agreement within the next two weeks. The plan also includes setting up a shipbuilding-related training institute to create a skilled local workforce for the yard and allied industries.

Two-phase investment plan

In the first phase, the shipyard will reportedly focus on building small vessels, supported by a new wharf to be constructed alongside the breakwater at the estuary. This phase is expected to see an investment of around Rs 200 crore.

The second phase will scale up operations to build larger vessels, with an estimated investment of about Rs 1,000 crore over the next seven to ten years. The long-term goal is to develop Ponnani into the biggest shipbuilding yard in Kerala after Kochi, handling a wider range of maritime construction and repair activities.

Jobs and local impact

Officials estimate that the yard could directly generate employment for around 1,000 people, apart from indirect opportunities in ancillary services and logistics. To minimise disruption, it has been decided to provide alternative facilities on the eastern side of the harbour for fish-drying units currently operating at the proposed shipyard site, based on a decision taken at a meeting chaired by the district collector.

MLA P Nandakumar described the project as a major boost for Ponnani’s development and has urged the community to cooperate so that construction and commissioning progress smoothly, reported local media.