Shipping Corp to invest $3 bn on 16 vessels
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.
Resources for the acquisition will be raised through a blend of debt and equity. The company is looking at a debt-equity ratio of 80:20 or 75:25, S Hajara, CMD, SCI said. SCI has taken a loan of $103 million from State Bank of India to buy one of the two very large crude carriers 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 dead-weight tonnage (DWT). It also manages 53 vessels totalling 63,000 DWT on behalf of various government departments and other organisations. It provides liner and passenger services, bulk carrier and tanker services.
The government is also mulling a mega dredging alliance between SCI, Mazgaon 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.
Resources for vessel acquisition will be a blend of debt and equity which could be in the ratio of 80:20 or 75:25.
Govt mulls an alliance of SCI, Mazgaon Dock, Mumbai Port Trust, JNPT and oil PSUs for a slice of the world’s dredging pie
“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.
The ministry of shipping is expected to discuss the issue with oil majors to confirm their participation in the alliance, as they will be the biggest beneficiaries. Hajara said a preliminary study had already been conducted and the government would soon finalise its plans for a consultant. Dredging is done to scour out mud and silt to increase the depth at a port or channel.
Resources for the acquisition will be raised through a blend of debt and equity. The company is looking at a debt-equity ratio of 80:20 or 75:25, S Hajara, CMD, SCI said. SCI has taken a loan of $103 million from State Bank of India to buy one of the two very large crude carriers 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 dead-weight tonnage (DWT). It also manages 53 vessels totalling 63,000 DWT on behalf of various government departments and other organisations. It provides liner and passenger services, bulk carrier and tanker services.
The government is also mulling a mega dredging alliance between SCI, Mazgaon 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.
Resources for vessel acquisition will be a blend of debt and equity which could be in the ratio of 80:20 or 75:25.
Govt mulls an alliance of SCI, Mazgaon Dock, Mumbai Port Trust, JNPT and oil PSUs for a slice of the world’s dredging pie
“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.
The ministry of shipping is expected to discuss the issue with oil majors to confirm their participation in the alliance, as they will be the biggest beneficiaries. Hajara said a preliminary study had already been conducted and the government would soon finalise its plans for a consultant. Dredging is done to scour out mud and silt to increase the depth at a port or channel.
