SCI in expansion mode

Shipping Corporation of India (SCI) is planning to place a $502.90 million contract with Korean shipbuilding yards. Out of this, SCI has already signed contracts with South Korean yard STX Shipbuilding to build six 60,000 DWT new long range-I size product tankers for $371 million and scheduled for delivery in 2010.

SCI is likely to place orders with Korean shipbuilder Hyundai Heavy Industries for two container vessels of about 4,300 TEU capacity each, at a price of $65.95 million per vessel for delivery by end 2008. Last week, the cabinet committee on economic affairs gave its approval for the acquisition of these vessels and the contract for the boxships is expected to be signed within two weeks. The company is also planning to conclude acquisitions of more oil tankers by the next quarter and the corporation is also exploring opportunities at shipyards other than Korea.