SCI to Invest $4 Billion in New Ships

State-owned Shipping Corporation of India plans to spend an estimated $4 billion on fleet expansion over the next five years.

“The plan is to double our cargo carrying capacity to 10 million deadweight tons from about 5.1 million dwt now,” said Sabyasachi Hajara, chairman and managing director, at a shipping summit in Mumbai Friday.

He said the company placed orders at a cost of around $1.3 billion for 27 new vessels, which are expected to be delivered by 2012.

Hajara also said plans are underway to order another 30 vessels worth $3 billion by 2012 with deliveries scheduled for 2014.

SCI, the country’s largest shipping line, currently operates a fleet of 74 ships and manages 69 vessels on behalf of various public-sector agencies.

The government of India recently indicated plans to sell up to 20 percent of its stake in the national carrier, as part of a divestment program announced earlier for the current fiscal year. The board of SCI later approved the proposal and initiated a process for selection of merchant banks and other key intermediaries to administer its proposed public offer and offer for sale by the government.
(Source:www.joc.com)