State-owned Shipping Corporation of India (SCI) will not order more than 6-7 vessels during the terminal year of the 11th plan period due to lean market conditions, leaving a chunk of its orders for 2012-17 period, PTI reports. "We have ordered 26 vessels worth USD 1.3 billion meant for deliveries within 2014. We will place orders for not more than 6-7 vessels of specific requirements during the year and the rest of the planned fleet acquisition will happen in the next plan period," SCI Chairman and Managing Director S Hajara said.
In the 11th plan period, the total fleet acquisition plan was for 62 vessels. So far, only 36 vessels have been ordered or taken in delivery.
Hajara, who was speaking on the sidelines of Golden Jubilee celebrations of IIM Calcutta, said the reason for going slow on acquisitions was that the industry was passing through a very lean period due to slack global trade and oversupply of fleet.
"Oversupply in the industry is to the tune of 30 per cent in dry bulk and container tonnage and 20-22 per cent in tankers," he said, adding that there would be no revival in the situation before the first half of next financial year.
He denied any financial issues on acquisitions, saying the SCI has a Rs. 1,900 crore in its balance sheet.
Speaking about the proposed Logistic Corporation of India by SCI, Concor and Central Warehousing Corporation of India, he said there were some meetings held in this regard but things are yet to crystallise.
However, this would not have any bearing on the proposed joint venture with Coal India Ltd. The JV company proposes to offer imported coal at the doorstep of the buyer.
In the 11th plan period, the total fleet acquisition plan was for 62 vessels. So far, only 36 vessels have been ordered or taken in delivery.
Hajara, who was speaking on the sidelines of Golden Jubilee celebrations of IIM Calcutta, said the reason for going slow on acquisitions was that the industry was passing through a very lean period due to slack global trade and oversupply of fleet.
"Oversupply in the industry is to the tune of 30 per cent in dry bulk and container tonnage and 20-22 per cent in tankers," he said, adding that there would be no revival in the situation before the first half of next financial year.
He denied any financial issues on acquisitions, saying the SCI has a Rs. 1,900 crore in its balance sheet.
Speaking about the proposed Logistic Corporation of India by SCI, Concor and Central Warehousing Corporation of India, he said there were some meetings held in this regard but things are yet to crystallise.
However, this would not have any bearing on the proposed joint venture with Coal India Ltd. The JV company proposes to offer imported coal at the doorstep of the buyer.