SCI to expand fleet

SCI has outlined a capital expenditure plan of US$ 4 billion to expand its fleet of vessels by 2012. Earlier, the company had put on hold its vessel acquisition plan expecting correction in the shipbuilding prices.

The current order book position of the Shipping Corporation of India stands at 32 vessels of about 1.9 million DWT. According to sources, SCI now plans to place orders for another 36 vessels in anticipation of improved demand for shipping services beginning 2011. The total cost of 32 vessels is about US$ 1.6 billion, while the 36 new vessels are expected to cost US$ 2.4 billion. These vessels will help the company to modernise its fleet as well as create additional capacity in the tanker and bulk segment. A few vessels may be acquired from the second-hand market. As per estimates, while prices of new buildings are down by 30 per cent, second-hand vessels have witnessed a price drop of 50-70 per cent.

Final dividend paid: SCI paid Rs 220.53 crore to the government as final dividend for the financial year 2008-09. The dividend amount reflects the earnings on 80.12 per cent shareholding of the government in the company, an official statement said. For 2008-09, SCI earned a net profit of Rs 940.7 crore on a turnover of Rs 4,564.5 crore. SCI is the largest shipping company in the country, owning a fleet of 80 vessels of deadweight of 5.4 million tonnes, including 30 crude oil tankers, 10 product tankers and 18 bulk carriers.

Source: Maritime Gateway