+
Shipping Corp overcomes divestment woes, eyes Rs 20 bn ship purchase
PORTS & SHIPPING

Shipping Corp overcomes divestment woes, eyes Rs 20 bn ship purchase

The State-run Shipping Corporation of India (SCI) is reportedly taking measures to acquire five ships, all second-hand and of various types, involving an investment of approximately Rs 20 billion. This suggests that the 'unofficial' halt on ship acquisitions, attributed to the ongoing privatisation process, has been lifted, as per information from multiple sources.

According to a government official, one source among them, the board of the national carrier has granted "in-principle" approval for the purchase of these ships by 31 March. The proposed acquisitions include a very large gas carrier (VLGC), a medium-range tanker (MR Tanker), a container ship with a capacity exceeding 9,000 twenty-foot equivalent units (TEUs), a platform supply vessel (PSV), and an anchor handling, towing, and supply vessel (AHTSV).

It was informed that Shipping Corporation of India last expanded its fleet in FY2017 when it acquired four vessels, namely two platform supply vessels, one VLGC, and one Suezmax tanker, all second-hand.

In December 2020, the government's asset sale department, the Department of Investment and Public Asset Management (DIPAM), initiated the privatisation process for Shipping Corporation of India, a 'navratna' public sector undertaking, intending to sell the government's 63.75 percent stake to a strategic buyer. However, the sale process has yet to reach a conclusion.

SCI, India's largest shipping company in terms of fleet size, is the only shipping company in the country that owns very large crude carriers or so-called oil super tankers, with five VLCCs in its fleet.

The carrier has refrained from acquiring new ships for over six years, resulting in a "depletion" of its fleet as older ships are sent to scrap yards. In contrast, private competitors have consistently expanded their fleets through periodic second-hand purchases.

Presently, SCI operates a fleet of 59 ships of various types, with one product tanker slated for scrapping.

The State-run Shipping Corporation of India (SCI) is reportedly taking measures to acquire five ships, all second-hand and of various types, involving an investment of approximately Rs 20 billion. This suggests that the 'unofficial' halt on ship acquisitions, attributed to the ongoing privatisation process, has been lifted, as per information from multiple sources. According to a government official, one source among them, the board of the national carrier has granted in-principle approval for the purchase of these ships by 31 March. The proposed acquisitions include a very large gas carrier (VLGC), a medium-range tanker (MR Tanker), a container ship with a capacity exceeding 9,000 twenty-foot equivalent units (TEUs), a platform supply vessel (PSV), and an anchor handling, towing, and supply vessel (AHTSV). It was informed that Shipping Corporation of India last expanded its fleet in FY2017 when it acquired four vessels, namely two platform supply vessels, one VLGC, and one Suezmax tanker, all second-hand. In December 2020, the government's asset sale department, the Department of Investment and Public Asset Management (DIPAM), initiated the privatisation process for Shipping Corporation of India, a 'navratna' public sector undertaking, intending to sell the government's 63.75 percent stake to a strategic buyer. However, the sale process has yet to reach a conclusion. SCI, India's largest shipping company in terms of fleet size, is the only shipping company in the country that owns very large crude carriers or so-called oil super tankers, with five VLCCs in its fleet. The carrier has refrained from acquiring new ships for over six years, resulting in a depletion of its fleet as older ships are sent to scrap yards. In contrast, private competitors have consistently expanded their fleets through periodic second-hand purchases. Presently, SCI operates a fleet of 59 ships of various types, with one product tanker slated for scrapping.

Next Story
Technology

Six ways a smarter workflow leads to faster, more accurate bids

In today’s fast-paced civil construction environment, estimators need more than just solid numbers. They need smart, streamlined processes. This article explores six key ways connected workflows can transform the estimated approach, help in minimising risk, move faster, and improve accuracy. By integrating tools, data, and teams, one can produce stronger bids with less rework, fewer surprises, and more confidence. As an estimator, the job goes beyond producing numbers. They are responsible for delivering bids that are fast, accurate, and built to win. In today’s civil construction ind..

Next Story
Real Estate

Experion Launches Women-Only Co-Living Project in Greater Noida

Experion, part of Singapore-based AT Capital Group, has launched its first co-living space under its managed rental housing brand, VLIV, in Greater Noida. The all-women residence features 730 twin-sharing beds with a strong focus on safety, comfort, and well-being. VLIV has committed a $300 million investment to create a structured, service-led rental housing ecosystem in India. The brand aims to scale up to 20,000 beds in the next few years, with a long-term target of 100,000 beds nationwide. “India’s rental housing is fragmented. VLIV is our way of building long-term, dependabl..

Next Story
Infrastructure Urban

Officine Maccaferri Acquires CPT to Bolster Tunnelling Tech

Ambienta’s platform company, Officine Maccaferri S.p.A., has acquired CPT Group, a leading Italian developer of robotic prefabrication systems and digital control technologies for mechanised tunnelling. The move positions Maccaferri as a global player in integrated tunnelling solutions, blending traditional and advanced mechanised systems. Based in Nova Milanese, CPT serves major global contractors across Europe, Southeast Asia, and Australia. The company offers robotic prefabrication (Robofactory), productivity-monitoring software for Tunnel Boring Machines (TBMs), and eco-designed spa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?