Shipping | Bharati Shipyard sees some delays, no defaults

Shipping | Bharati Shipyard sees some delays, no defaults
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First Published: Tue, Mar 17 2009. 10 31 PM IST
Updated: Tue, Mar 17 2009. 10 31 PM IST
Mumbai: The second largest private sector shipbuilding firm in the country, Bharati Shipyard Ltd, is witnessing some slowdown and delay in payments from clients but so far there have been no defaults, said managing director Vijay Kumar.
“Yes, there is some slowdown and payments are coming late, but so far none of the clients have defaulted,” said Kumar on the sidelines of a conference on ports and shipping organized by the Bombay Chamber of Commerce and Industry on Tuesday.
He added that no client has cancelled orders or approached for renegotiation of rates either. Despite the slowdown, Bharati Shipyard has not cancelled or postponed any of its greenfield expansion projects. However, projects have been delayed due to procedural issues and unavailability of land. Bharati Shipyard is planning to set up three shipyards—one each in West Bengal, Orissa, and Gujarat.
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Govt looking to hasten expansion at big ports
Mumbai: The government is considering ways to put expansion and modernization projects at major ports in the country on the fast track to take advantage of low commodity prices, A.P.V.N. Sarma, secretary, ministry of shipping, said on Tuesday.
The government has finalized 50 projects to be implemented at 12 major ports in the country on a public-private partnership basis. As many as nine of these projects were sanctioned earlier this year. The projects include setting up new berths for iron ore, and coal handling and container terminals at various major ports by 2012.
“We believe that we should not wait for these projects to be carried out in phases, but to be taken up as soon as possible. Right now, costs of inputs like steel and cement are very low and we should take the opportunity to benefit from them,” Sarma said.
NewsWire 18
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Shipping Corp to defer $1 bn order for vessels
Mumbai: The country’s largest sea carrier, Shipping Corp. of India Ltd, said it will postpone new orders for vessels worth about $1 billion to the next fiscal year as the global financial crisis chokes access to credit.
The Mumbai-based carrier had planned to place orders for as many as eight vessels in the fiscal year ending 31 March, chairman S. Hajara said on Tuesday. Local and foreign banks are unwilling to give loans to shipping lines, he said.
Shipping Corp. fell 2.4% to close at Rs73.6 rupees in Mumbai trading, the most since 26 Feb. The stock has fallen 7.5% this year, compared with an 8.1% drop in the benchmark Sensitive Index.
Bloomberg
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First Published: Tue, Mar 17 2009. 10 31 PM IST