Tata NYK to acquire 10 more bulkers

Singapore-based Tata NYK Shipping Pte Ltd, the 50:50 joint venture shipping firm set up by India???s largest and the world???s sixth biggest crude steel maker, Tata Steel Ltd, and Japanese shipping major NYK Line, will expand its fleet by inducting 10 more bulk carriers to meet rising demand for shipping cargo into and out of India.

The joint venture started commercial operations in May and currently operates a fleet of six vessels, including four Handymax carriers and two Panamax vessels. ???We will induct 10 more vessels by 2009. We have placed orders for building a few Supramax and Panamax carriers at various yards, including those in Japan, while some others will be taken on lease,?? said John Konno, chief executive officer of Tata NYK Shipping. He declined to reveal the value of the orders the company has placed or the name of the shipyards where the ships are being built.

The joint venture was set up to ship bulk cargo such as coal, iron ore, bauxite and steel arriving in and departing from Indian shores. Konno said the shipping firm would cater to the needs of Tata Steel for moving raw materials and finished steel. Tata Steel is boosting its capacity locally by more than 15 million tonnes.

The shipping company will also service other customers, Konno said. The ships operated by Tata NYK are registered in Panama or Singapore, and fly the flags of these countries where the tax regime is conducive for shipowners.