BEML and VOSTA LMG signed a cooperation agreement for the supply of dredging equipment to Indian end-users on October 10th, 2011.

In the presence of Mr. S. Reddy, First Secretary Legal of the Indian Embassy in The Netherlands, the agreement was signed by Mr. V. RS. Natarajan, Chairman and Managing Director of BEML, and Mr. R. Dietze, President and CEO of VOSTA LMG. BEML and VOSTA LMG will combine their resources and expertise for the purpose of the construction of dredges for India.

Construction of seven new ports
The Indian government expects an increase of the cargo to be handled through Indian ports by an additional capacity of 1294 million tons in the next ten years with an investment of Euro 27.37 billion. The existing ports are not in a position to manage all this additional cargo.

Therefore, the Indian government has decided to build 7 new major ports upgrade 2 non major ports and triple its exports by 2017. For the construction of these ports and for the maintenance of existing ports dredging equipment is necessary.

Deepening of five national waterways
The government of India (GOI) announced their recent maritime agenda laying vigorous emphasis on the promotion of coastal and in-land waterway shipping to de-congest the roads and to improve the environment. There are five national waterways covering about 2500 KM's of river systems.

It is the decision of the GOI to improve the navigable depths in these waterways. For deepening and maintaining these waterways dredging equipment is necessary.

Availability of dredgers
The present Indian dredging companies are unable to meet the growing demand for dredging operations due to non-availability of dredges to carry out the tasks. Due to the lack of availability of dredge equipment, demand for all types of dredges is expected to be robust for the coming years.

Earmarked dredging equipment supplier
BEML is a Mini-Ratna public sector company engaged in manufacture of earth moving, construction, rail and metro, aerospace equipment in India. BEML Limited is earmarked by the Indian Ministry of Defense to enter the dredging equipment supply market in India.

Designer of dredging equipment
The VOSTA LMG group of companies designs dredges and provides dredging components packages, supervision, project management, and after sales services for the dredging industry . VOSTA LMG deliberately does not own production facilities but teams up with co-operation partners to serve the dredging market.

Pooling their resources
BEML Limited and VOSTA LMG strive to be leading in the supply of dredges to the Indian end-users, and consider their specific strengths to be complementary. By pooling their resources, a suitable yard to design, construct and deliver various types of dredgers according to the design of VOSTA LMG and the delivery of equipment of BEML Limited, will complement the co-operation.

This cooperation agreement is considered for long-term relationship for the manufacturing and supplying of dredgers for the Indian market to fulfill the growing demand for new dredging equipment in the coming ten years.

This press release was originally published on the Vosta website.

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