With aggressive growth plans, Great Eastern Shipping has outlined a capital expenditure of $1.5 billion on fleet expansion in the next three years. The investment would be equally distributed on the shipping division and the offshore subsidiary Greatship India, and would be funded by a mix of debt and internal accruals. With an outlay of $780 million for shipping division, the company has six product tankers and eight dry bulk vessels on order. The tankers will be delivered by 2009, while the bulk vessels are expected to join the fleet between 2010 and 2011.
This expansion would grow the dry bulk fleet for GE Shipping to 21. The addition of tankers would also stabilise the company's tanker fleet, which had diminished after the company sold off five single-hull tankers.
The offshore subsidiary, meanwhile, would see an addition of 18 offshore vessels and one jack-up drilling rig for $725 million. The company has already invested $200 million of this.
Ravi Sheth, executive director, GE Shipping, said, "There is a huge shortage of offshore vessels globally, leading to higher charter rates and we are growing our offshore fleet fast to take advantage of this opportunity."
This expansion would grow the dry bulk fleet for GE Shipping to 21. The addition of tankers would also stabilise the company's tanker fleet, which had diminished after the company sold off five single-hull tankers.
The offshore subsidiary, meanwhile, would see an addition of 18 offshore vessels and one jack-up drilling rig for $725 million. The company has already invested $200 million of this.
Ravi Sheth, executive director, GE Shipping, said, "There is a huge shortage of offshore vessels globally, leading to higher charter rates and we are growing our offshore fleet fast to take advantage of this opportunity."