KMEW gets first complete-port mandate in Rs 303.17 crore award

Knowledge Marine & Engineering Works Limited has received a Rs 303.17 crore, tax-inclusive work order from New Mangalore Port Authority for three years of maintenance dredging covering 15.9 million cubic metres. KMEW says the FY 2026-27 to FY 2028-29 mandate is its first responsibility for maintaining the complete premises of a port rather than a section.

What does KMEW’s New Mangalore contract cover?

KMEW’s contract covers post-monsoon maintenance dredging at New Mangalore Port in FY 2026-27, FY 2027-28 and FY 2028-29. The Rs 303.17 crore consideration includes taxes, and the filing identifies New Mangalore Port Authority as a domestic awarding entity. KMEW’s October 30, 2026 announcement describes the award as a work order, while its press release refers to a Letter of Acceptance.

The planned work totals 15.9 million cubic metres over the three years, equivalent to an average of 5.3 million cubic metres annually. First-year operations are scheduled to begin on November 15, 2026, and dredging is to be completed within 150 days in each year. KMEW stated an annual base contract value of approximately Rs 101.07 crore, including taxes.

KMEW said it emerged as the lowest bidder, with its bid approximately 10.16% below that submitted by the competition. The filing does not disclose the competing bid amount, number of bidders or payment schedule. It also states that KMEW’s promoter group and group companies have no interest in New Mangalore Port Authority, and that the order is not a related-party transaction.

Why is this KMEW’s first complete-port maintenance mandate?

KMEW says this is the first occasion on which maintenance dredging for entire port premises has been assigned to it. Chief Executive Officer Sujay Kewalramani contrasted the three-year programme with past assignments in which KMEW maintained depths in a section of a port area. This comparison underpins management’s description of the Rs 303.17 crore award as a progression to larger-volume work.

The scope covers a 7.5-kilometre outer approach channel, lagoon, oil dock arm, dock areas, turning circle, designated berth faces and pump-house areas. The outer channel is to be dredged to as much as 15.40 metres below Chart Datum, or CD. Specified lagoon, oil dock arm and turning-circle areas are to reach 15.10 metres below CD.

The contract also includes 180,000 cubic metres of specified berth-face dredging and 18,000 cubic metres in pump-house areas over three years. Berth-specific depths range from 8.00 metres to 15.10 metres below CD, while Pump Houses 1 and 2 are specified at 6.00 metres below CD and Pump House 3 at 10.00 metres below CD. These components form part of the wider 15.9 million-cubic-metre maintenance programme.

How does the contract change KMEW’s dredging strategy?

KMEW says the award takes it from comparatively smaller-volume assignments towards sustained, large-volume maintenance dredging. Management said the three-year engagement supports a “Full-Spectrum” or dual-market business model that includes smaller and larger dredgers. That is management’s strategic characterisation, rather than a revenue forecast beyond the Rs 303.17 crore work order.

KMEW specifically called the award an inflection point for owning and operating a mid-size trailing suction hopper dredger, or TSHD. The contract requires a suitable TSHD for the principal maintenance work, alongside specialised equipment for berth-face and pump-house dredging. The announcement does not identify a vessel size, purchase cost, acquisition date, financing method or commitment to a particular mid-size TSHD.

Management linked the annual average of 5.3 million cubic metres to sustained asset utilisation and larger-scale port-infrastructure projects. It also said the order adds a substantial maintenance-dredging assignment to KMEW’s order book and provides multi-year revenue visibility through FY 2028-29. The filing gives no prior order-book value, so the addition cannot be compared with a disclosed total.

What work will KMEW perform at New Mangalore Port?

KMEW will deploy a suitable TSHD for the main maintenance programme and specialised equipment for berth faces and pump-house areas. The outer approach channel has the longest stated span at 7.5 kilometres and a maximum specified depth of 15.40 metres below CD. The KIO Berth Extension Lagoon is specified to 14.00 metres below CD, compared with 15.10 metres in other named lagoon areas.

The Old Dock Arm and Eastern Dock have no fixed depths in the announcement, as they are to be dredged to depths specified by the Engineer or Marine Department. This differs from the stated 6.00-metre and 10.00-metre requirements for the three pump houses. Part of KMEW’s execution requirements will therefore be set by the port’s engineering or marine function during the three-year period.

The 150-day completion requirement applies to maintenance dredging in each contract year after the post-monsoon period. KMEW gives a November 15, 2026 start date only for the first year and does not disclose start dates for FY 2027-28 or FY 2028-29. It also does not provide annual volume allocations among the channel, dock areas, berths, lagoons and pump-house locations.

Conclusion

The Rs 303.17 crore New Mangalore award gives KMEW a three-year, 15.9 million-cubic-metre maintenance programme and, according to management, its first mandate spanning complete port premises. Compared with KMEW’s previously cited partial-port assignments, the scope combines a 7.5-kilometre approach channel, berth faces and pump-house work, with depths reaching 15.40 metres below CD.

The next disclosed milestone is the scheduled November 15, 2026 start of first-year operations, followed by completion within 150 days in each contract year. KMEW’s stated plan to own and operate a mid-size TSHD is also a development to watch, because the filing identifies the intention but does not disclose a vessel specification, investment amount or timetable.