SAIL plans shipping venture with SCI

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jun 2008

With ocean freight soaring due to high fuel prices, Steel Authority of India (SAIL) plans to run its own fleet of vessels in partnership with public sector as well as private players to ship imported coking coal. The public sector company is likely to form a joint venture with the country’s largest shipping firm Shipping Corporation of India (SCI) to own, operate and charter large and medium-sized dry bulk carriers. The move is expected to benefit both the public sector companies as it would help SCI increase its capacity and SAIL cut its coal import cost.
The joint venture is likely to take shape as a public-private partnership (PPP) project. While SCI and SAIL are likely to hold 25% stake each in the proposed venture, the remaining 50% is expected to be offered to private players including ship manufacturers or ship-owners. A memorandum of understanding (MoU) between the two firms is expected to be signed next week.

Source: Economic Times