Shipping Corp of India has postponed its 50-billion rupees expansion plans by at least six months and is eyeing the second-hand ship market as prices have fallen almost 70 percent, the DNA newspaper reported on Tuesday. The plan to acquire four capesize vessels - ships that can sail through the Cape of Good Hope on the Horn of Africa - for $600 million has been put on hold, the paper said. Besides, the company is going slow on the tender it had issued for the purchase of four very large crude carriers for $320 million, it said.
"We are looking at the secondhand market for our Capesize purchase, as we might get some good deals," Director Umesh Grover was quoted by the paper as saying.
"Besides, the new-built prices are also expected to come down and we want to take advantage of that," he added.
The Indian shipping major is also exploring the possibility of acquiring an ailing shipping company with good assets, Grover told the paper.
The company had looked at the assets of Hong Kong-based CIDO Shipping, which had put up its tanker fleet of 49 vessels for sale, he added.
"We are looking at the secondhand market for our Capesize purchase, as we might get some good deals," Director Umesh Grover was quoted by the paper as saying.
"Besides, the new-built prices are also expected to come down and we want to take advantage of that," he added.
The Indian shipping major is also exploring the possibility of acquiring an ailing shipping company with good assets, Grover told the paper.
The company had looked at the assets of Hong Kong-based CIDO Shipping, which had put up its tanker fleet of 49 vessels for sale, he added.