SCI need 18 newbuildings

Shipping Corporation of India (SCI), the country?s largest shipping company, has announced plans to buy 18 new ships at a cost of nearly $1.5 billion, company?s chairman and managing director P K Srivastava said. The new ships would be acquired over the next few years.

The newbuilding plans include two VLCCs, six handy size bulk carriers, six LR-I product tankers, two container ships and two Aframax tankers. SCI board has already given its approval to buy 16 ships (excluding two Aframax) and the proposal is now being submitted to the government for final approval. For the remaining two Aframax costing nearly $110 million, the board approval would be sought in the next meeting.

SCI has already floated global tenders for some of these ships and Srivastava agreed that the company was unable to rapidly grow its fleet as other private companies as it does not go for second-hand ship purchases which has checked growth of SCI. As a result, in 2005-06, SCI will only have one new addition to its 89 ship fleet, a VLCC. Last year SCI added one VLCC, two Suezmax carriers and one LNG carrier to its fleet.