SCI to buy vessels for up to $3 bn

SCI to buy vessels for up to $3 bn
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First Published: Thu, Aug 14 2008. 04 59 PM IST
Updated: Thu, Aug 14 2008. 04 59 PM IST
By PTI
New Delhi: State-run Shipping Corporation of India (SCI) plans to purchase 40 vessels, including four very large crude containers, worth $2.5-3 billion in the next three years.
“By 2011, we will place orders for about 40 ships worth $2.5 to 3 billion,” SCI chairman and managing director S Hajara told reporters here last night.
While 20% of the cost of acquiring vessels would be met by internal accruals, the rest of the money would be raised through borrowings. “We will invest 20% on our own while the rest of the money would be raised through external commercial borrowings,” Hajara said.
The deliveries of these vessels would continue uptil 2014. SCI has already placed orders for 32 vessels worth $1.88 billion. It has 79 ships at present.
By 2014, the total cargo carrying capacity of the PSU would be about 10 million tonnes.
Also, the company, yesterday, signed a deal with South Korean shipyard STX to acquire four panamax bulk carriers for $238.2 million.
The public sector unit had recently received the Cabinet Committee on Economic Affairs (CCEA) approval for acquiring four panamax bulk carriers of about 80,000 dead weight tons (dwt) at $59.55 million each.
SCI plans to raise up to 80% of the contract price of each vessel from the domestic or international market while the balance amount would be paid from its internal accruals.
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First Published: Thu, Aug 14 2008. 04 59 PM IST