SCI to expand fleet

In what may be the biggest vessel acquisition plan by an Indian shipping company, state-owned Shipping Corporation of India (SCI) will invest around $3 billion over the next four years to acquire 16 vessels. SCI is already spending $1 billion to buy 12 vessels, which will be delivered between 2008 and 2010.

SCI has taken a loan of $103 million from State Bank of India to buy one of the two VLCCs from South Korean Hyundai Heavy Industries at a cost of $65.2 million per vessel.

SCI operates a fleet of 84 vessels totalling 4.93 million DWT and it also manages 53 vessels totalling 63,000 DWT on behalf of various government departments and other organisations.

The government is also mulling a mega dredging alliance between SCI, Mazagon Dock, Mumbai Port Trust and JNPT and some oil PSUs to ensure that India gets a share of the dredging pie, dominated by Dutch and Belgian companies. “A PSU is likely to be set up soon to start the mega alliance,” Hajara said. Dredging Corporation of India has very little “financial muscle” and this is its biggest constraint to take on the global majors, he added. The mega alliance will be set up to supplement the efforts of DCI.