Mumbai, June 16 (IANS) India's largest shipping firm, Shipping Corp of India Ltd (SCI), Friday announced plans to spend Rs.63 billion ($1.37 billion) to buy 35 vessels.
The company has identified transportation of liquefied natural gas (LNG) as its thrust for growth. It plans to diversify into port operations and rail transport, said SCI chairman and managing director S. Hajara.
"LNG has been identified as the future fuel for India's power plants and as a feedstock for chemical and petrochemical industry. The SCI has identified carriage of LNG as one of its thrust and growth areas and has its presence in the Petronet LNG project," a company statement said Friday.
"We would like to be virtually in all LNG projects in the country and offshore services segment," Hajara said.
"We will continue with our two joint ventures in LNG transportation for now. But three-four years from now, we might enter LNG ourselves," he added.
"Two joint venture companies (JVCs) have been formed at Malta, with India LNG Transport Co. No.1 and No.2 Ltd. for construction, ownership and operation of two LNG tankers which are on time charter to Petronet LNG Ltd for a period of about 24 years."
The SCI and Mitsui OSK Line (MOL) have a 29.08 percent stake each in the consortium amounting to an equity participation of $27.626 million each with the remaining 41.84 percent being shared by NYK (17.89 percent), K Line (8.95 percent) and Qatar Shipping Co. (15 percent).
The company owns a fleet of 82 ships, mostly bulk carriers and tankers, and it plans to start buying second-hand vessels to meet its acquisition target.
"We will try to meet at least 50-60 percent of the target this year in the next couple of months," said Umesh Grover, SCI director in-charge of technical and offshore.
The SCI has diversified into the Indian offshore marine business and provides vital offshore support services to the Indian oil industry in its indigenous oil exploration activities.
Its 10 anchor handling towing-cum-supply vessels are on long-term charter to the Oil & Natural Gas Corp.
Over the years, the SCI has also developed expertise for successful execution of state-of-art sub-sea jobs and has earned good merit as a technically competent offshore contractor.