By
Cdr G P Pande
&
Cdr G P Pande
&
Cdr Mohit Goel
SYNOPSIS : WMTC 2009
The objective of this paper is to present the concept: ‘Use India’s edge in competitive pricing to make it the hub in Indian Ocean region of Naval Ship Repairs’ (henceforth referred to as retro fitment i.e.:-complete change of propulsion /machinery/sensors). The advantages of a vast skill pool and competitive pricing can greatly leverage the Indian Navy’s footprint among Navies of IOR and become a tool for international diplomacy. As a spinoff of such a policy, the players in the defense ship building market will become more competitive and ship repairers will find a bigger foothold in the international defense industry.
The objective of this paper is to present the concept: ‘Use India’s edge in competitive pricing to make it the hub in Indian Ocean region of Naval Ship Repairs’ (henceforth referred to as retro fitment i.e.:-complete change of propulsion /machinery/sensors). The advantages of a vast skill pool and competitive pricing can greatly leverage the Indian Navy’s footprint among Navies of IOR and become a tool for international diplomacy. As a spinoff of such a policy, the players in the defense ship building market will become more competitive and ship repairers will find a bigger foothold in the international defense industry.
ABSTRACT: An important element of synergy between industry and armed forces towards achieving a common strategic goal calls for pooling of national resources, human manpower and material, which are required to implement its strategic concept. The realisation of these three-elements-concept are in dissoluble linked in a democracy because, “to secure those resources it is necessary for society to channelise these resources. Thus, the resource which shipbuilding and repair is able to obtain is also a function of the institutional/sovereign support of that service. This inherent advantage of Indian maritime industrial in skill pool as well as pricing can be a tool for diplomacy as well as augment the Indian naval footprint in IOR / littoral navies. The spin-off to this approach is the increase in competitive environment for naval ship repairs and concurrent growth of Indian ship building industry for diversification into specialized vessels that are more complex and intricate in ship building process.Today India’s strategic concept exceeds a preoccupation with regional political tensions. India’s maritime security requirements within the regional and global playfield, seeks competition for markets as well as resources (especially with China). In short, we are a modern industrial nation by definition, a natural corollary to it being a vibrant maritime nation too. Hence the expansion of the Indian Navy’s shipbuilding and ship-repair capability is the material expression of that strategic priority. The warship shopping list is a strategy, and so is the decision which ships to scrap and which ship to resurrect. The major cost that go into ship building program are the three factors known as first of class unit cost of production and through life cost. What drives retro fitment of the complete ship is the third factor i.e: of through life cost. Wherein when the cost of maintenance of an older generation platform outweighs even the cost of buying a new propulsion package along with it’s through life cycle cost. Retro fitment is driven by the need to bridge capability gap for benign / constabulary role of navy. So a technology demonstrator vessel of over two decade era gets used for retro fitment of obsolete equipment. The use of a solution led (bottom up approach) instead of requirement led (top down) approach causes drastic shrinkage in budget and time scale of a new warship platform.
1. Why Has the Cost of Navy Ships Risen? by MV Arena, I Blickstein, O Younossi and CA Grammich, in Naval Engineers Journal Spring 2006, pp 49-57.
2. The Affordable Warship – A Design to Cost Approach Based in the Concept Phase, by RF Lamerton, in The Royal Institute of Naval Architects, International Conference Warship 2007, pp 2-20.
3. Survivability and The Affordable Warship, by AA Martin, in The Royal Institute of Naval Architects, International Conference Warship 2007, pp 51-58
4. Global Shipbuilding Industrial Base Benchmarking Study Part I: Major Shipyards May 2005, http://www.acq.osd.mil/ip
2. The Affordable Warship – A Design to Cost Approach Based in the Concept Phase, by RF Lamerton, in The Royal Institute of Naval Architects, International Conference Warship 2007, pp 2-20.
3. Survivability and The Affordable Warship, by AA Martin, in The Royal Institute of Naval Architects, International Conference Warship 2007, pp 51-58
4. Global Shipbuilding Industrial Base Benchmarking Study Part I: Major Shipyards May 2005, http://www.acq.osd.mil/ip
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2 Samuel Huntington in National Policy and the Transoceanic Navy, Proceedings, May 1954,
3Affordable Warships – Understanding the Possible, by M Courts, B Durant and M Tiernan, in The Royal Institute of Naval Architects, International Conference Warship 2007, pp 1-14.
4 Affordable Warships – Understanding the Possible, by M Courts,B Durant and M Tiernan,
5 Report of Working Group for Shipbuilding and Ship repair Industry for the Eleventh Five Year Plan (2007-2012) Government Of India Ministry Of Shipping, Road Transport & Highways March, 2007.
6 New Yardsticks, by NC Bipindra, in Force December 2007, pp 34-37.
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Forecasting 19th Annual Conference Dec 2002 http://www.scaf.org.uk/
13 The Way We Design Ships Today Has Undergone a Sea Change, by Rear Adm. MK Badhwar VSM, in Force December 2007, pp 38-39.
14 Environment-Based Strategic Management Model for Indonesia's Medium-Sized Shipyards, by B Ma'ruf, Y Okumoto and S Widjaja, in Journal of Ship Production, Vol. 22, No. 4, November 2006, pp 195-202
15 Report of Working Group for Shipbuilding and Ship repair Industry for the Eleventh Five Year Plan (2007-2012)
16 World Yard News letter October 2007, http://.www.worldyards.com/
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19 P. Manoj, livemint, Nov 18, 2007, http://www.livemint.com/2007/11/18234852/Mark-to-market--Shipbuilding.html .
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21 Reality Check, by Adm Arun Prakash (Retd.), in Force December 2007, pp 8-14.
22 U.S. Maritime Administration, 2000, http://.www.marad.dot.gov/ .
23 Military and Commercial Shipbuilding Implications for the United Kingdom’s Ministry of Defence report by RAND Corporation 2005.
24 Indian Shipbuilding Industry – Present and Future, by MK Mukherjee, in Journal of Indian Ocean Studies Vol 14, No. 2, August 2006, pp 219-224.
25 Warship Building : Cost and Time Overruns, by Vice Adm. R Nath (Retd.), in Indian Defence Review 22.4 Oct/Dec 07, pp 59-62.
26 India’s Maritime Diplomacy And International Security, by Adm S Mehta CNS, at International Institute Of Strategic Studies (UK) ON 21 Jun 07.
10 The strength of Shipbuilding by M W Toner in USNI proceeding Feb 2006 pp 21 -23
11 Bureau of Labour Statistics, Relative Cost of U.S. Shipbuilding Labour, http://www.coltoncompany.com/index/shipbldg/wages.htm.
12 Comparing Apples & Oranges use of Compensated Gross Tonnage to provide a method for comparing naval shipbuilding productivity by B Tanner in Society for Cost Analysis and
Forecasting 19th Annual Conference Dec 2002 http://www.scaf.org.uk/
13 The Way We Design Ships Today Has Undergone a Sea Change, by Rear Adm. MK Badhwar VSM, in Force December 2007, pp 38-39.
14 Environment-Based Strategic Management Model for Indonesia's Medium-Sized Shipyards, by B Ma'ruf, Y Okumoto and S Widjaja, in Journal of Ship Production, Vol. 22, No. 4, November 2006, pp 195-202
15 Report of Working Group for Shipbuilding and Ship repair Industry for the Eleventh Five Year Plan (2007-2012)
16 World Yard News letter October 2007, http://.www.worldyards.com/
17 Indigenous Warship Design and Construction – Meeting Navy's Aspirations, by Cmde KN VAidyanathan NM, in Seminar on Warship Building Nov 2006, pp 55-64.
18 ASNE Day 2006 Keynote Address, by Rear Adm SJ Locklear, III, USN, in Naval Engineers Journal Spring 2006, pp 41-48.
19 P. Manoj, livemint, Nov 18, 2007, http://www.livemint.com/2007/11/18234852/Mark-to-market--Shipbuilding.html .
20 New Players in Shipbuilding Boom, by S Nadkarni, in The Naval Architect, March 2008, pp 72-77.
21 Reality Check, by Adm Arun Prakash (Retd.), in Force December 2007, pp 8-14.
22 U.S. Maritime Administration, 2000, http://.www.marad.dot.gov/ .
23 Military and Commercial Shipbuilding Implications for the United Kingdom’s Ministry of Defence report by RAND Corporation 2005.
24 Indian Shipbuilding Industry – Present and Future, by MK Mukherjee, in Journal of Indian Ocean Studies Vol 14, No. 2, August 2006, pp 219-224.
25 Warship Building : Cost and Time Overruns, by Vice Adm. R Nath (Retd.), in Indian Defence Review 22.4 Oct/Dec 07, pp 59-62.
26 India’s Maritime Diplomacy And International Security, by Adm S Mehta CNS, at International Institute Of Strategic Studies (UK) ON 21 Jun 07.

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