On the back of poor results for two consecutive quarters the shipping ministry has asked state-owned Shipping Corporation of India (SCI) to scrap plans to expand its fleet, diversify into shipbuilding and operate ports. Shipping minister GK Vasan has told company to operate with the existing fleet and focus on its core business of operating ships and not purchase new vessels, according to the local Financial Express.
The minister has also asked the firm to exercise caution on forging new joint ventures. SCI has a jv with state-owned steel maker Steel Authority of India for handling the latter’s coal imports, among several other jvs. Expecting greater business opportunity in Southeast Asia and Africa, the shipping line was considering joint ventures with firms in Indonesia and South Africa.
The minister has also asked the firm to exercise caution on forging new joint ventures. SCI has a jv with state-owned steel maker Steel Authority of India for handling the latter’s coal imports, among several other jvs. Expecting greater business opportunity in Southeast Asia and Africa, the shipping line was considering joint ventures with firms in Indonesia and South Africa.