State-run Shipping Corporation of India (SCI) will tread cautiously at a time when the company is sailing in choppy waters, Moneycontrol reports.The company is pressed to make changes in its fleet augmentation programme post announcing net loss of Rs 141 crore during the September quarter. The company has reported losses for the third consecutive quarters.
In an interview to Moneycontrol.com, S Hajara, chairman and managing director of SCI said, "The shipping industry is going through a lean cycle due to sluggish global trade and over supply of fleet." He is not seeing any improvement immediately in terms of global trade.
According to SCI's earlier plan, it was to acquire around 62 vessels in the 11th plan period extending from 2007-2011. However, as global trade has slowed down on the back of economic problems in the US and the Eurozone along with the company’s profitability under threat due to high interest and bunker cost, the company is forced to cut corners wherever it can.
Hence, going slow on procuring new vessels will be of help believes Hajara. He feels as and when the situation demands the company will acquire re-sale vessels.
"We have been buying second hand vessels and will continue to do so provided we get a good deal, he quips.
Along with controlling cash outgo at the moment, its' industry peers Mercator Lines and GE Shipping, is keen to extend its portfolio to allied activities.
While Mercator Lines has forayed into coal mining, GE shipping has exposure to offshore support vessels. "Of course we are open to good business projects and will surely diversify into allied businesses if any opportunity comes along," he says.
In an interview to Moneycontrol.com, S Hajara, chairman and managing director of SCI said, "The shipping industry is going through a lean cycle due to sluggish global trade and over supply of fleet." He is not seeing any improvement immediately in terms of global trade.
According to SCI's earlier plan, it was to acquire around 62 vessels in the 11th plan period extending from 2007-2011. However, as global trade has slowed down on the back of economic problems in the US and the Eurozone along with the company’s profitability under threat due to high interest and bunker cost, the company is forced to cut corners wherever it can.
Hence, going slow on procuring new vessels will be of help believes Hajara. He feels as and when the situation demands the company will acquire re-sale vessels.
"We have been buying second hand vessels and will continue to do so provided we get a good deal, he quips.
Along with controlling cash outgo at the moment, its' industry peers Mercator Lines and GE Shipping, is keen to extend its portfolio to allied activities.
While Mercator Lines has forayed into coal mining, GE shipping has exposure to offshore support vessels. "Of course we are open to good business projects and will surely diversify into allied businesses if any opportunity comes along," he says.