The Shipping Corporation of India (SCI) has issued its most substantial global shipbuilding tender to date, seeking the construction of six cellular container ships in a deal estimated at $720 million (₹6,858 crore). According to an ET Infra report, the procurement covers two firm orders and four optional vessels, each boasting a cargo capacity of 8,000 twenty-foot equivalent units (TEUs).

Designed exclusively for standardized cargo operations, cellular container ships utilize vertical guide rails and slots to systematically stack 20-foot and 40-foot containers. Under the new tender’s stipulations, domestic shipbuilders will receive priority via a Right of First Refusal (RoFR) mechanism. This allows the lowest evaluated eligible Indian yard to match the lowest bid submitted by a foreign competitor. If the premier domestic bidder declines, the opportunity passes to the next eligible Indian yard—a move designed to stimulate local manufacturing while keeping domestic yards competitive internationally.

To further encourage local industry growth, Indian shipyards lacking prior experience in building cellular container vessels can participate by forming technical alliances with established foreign firms. These international partners must have delivered a minimum of two active cellular container ships with a capacity of 5,000 TEUs or greater over the past 10 years. Additionally, the foreign entity must supply basic and detailed design support during the project and possess expertise in designing or delivering operational dual-fuel vessels.

The ET Infra report suggests that a contract clause permitting changes to the involved parties implies the fleet could ultimately be owned by the Bharat Container Shipping Line (BCSL) consortium. Alongside SCI, this maritime coalition includes the Container Corporation of India (CONCOR), Jawaharlal Nehru Port Authority (JNPA), V.O. Chidambaranar Port Authority (VOCPA), Chennai Port Authority, and Sagarmala Finance Corporation Limited (SMFCL).

Domestic shipbuilders can also leverage the central government’s Shipbuilding Financial Assistance Scheme (SBFAS) to strengthen their bids against international yards. This ₹24,736 crore initiative, part of a broader ₹69,725 crore maritime package slated for 2025, offers a financial subsidy ranging from 15% to 25% per vessel.

Strict conditions govern the manufacturing process: bidders must construct the ships at their own facilities, as full or partial subcontracting is strictly prohibited. Financial proposals must be fixed-price based on a 100% cash payment structure distributed in installments. Furthermore, any foreign technical partner is mandated to provide continuous design assistance throughout the construction phase.

This monumental procurement follows an earlier SCI tender for six methanol dual-fuel-ready feeder container ships. Valued at approximately $360 million, that preceding project similarly encompassed two firm orders and four optional vessels, each with a 1,700 TEU capacity. (References: The Week, ET Infra).