Government-owned Shipping Corporation of India has awarded a contract for providing port and marine services at the Dabhol LNG Terminal and is keen on more such opportunities to diversify offshore, Chairman S Hajara tells Ruchika Chitravanshi. Edited excerpts:
The shipping industry has been facing rough weather. How do you see the current year?
There will be no change at all. Supply still outstrips the demand and the rate of growth for supply is faster than that for demand. That situation is likely to improve only in 2013; from 2009, orders for vessels substantially came down. We hope the euro zone sees some signs of stabilisation, the US shows signs of recovery and China does not slow down.
What will be the main growth area for you?
Our growth area will remain energy transportation. We are also trying to increase our participation in the offshore segment, affiliated to energy transportation. We will also definitely continue our presence in the container market. If anything, it will improve.
SCI recently took over the management of Dabhol LNG terminal. Are you looking at more such opportunities?
That is a completely new area of business. Even on the offshore side, in addition to serving ONGC, we are also starting to serve others. We did serve others earlier, like storage tankers, etc, but for offshore vessels, it is the first time we have some contact with others. Hopefully, given the opportunity, we would like to expand the terminal business. There is nothing on the card as yet.
After the EU and UN sanctions on Iran, are you still fetching oil from there?
We are still getting oil because the protection and indemnity (PNI) cover is valid till July 1, as in the EU notification. Beyond that, we are working with Indian insurance companies. Hopefully, we will manage to get some cover from them. That is still being worked upon.
Is there any other solution being worked upon, for instance asking Iran to deliver the oil?
But that is not in our interest. Why should the Indian shipping line lose the business if we are importing crude oil?
What has been the impact of the Iran crisis on SCI’s joint venture with Irano-Hind?
We were asked to maintain status quo and not increase any further stake in the company. Other than that, there is no impact. Our exposure is not that much in the company.
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SCI has never gone for bunker hedging. In the current market scenario, what is your view on it?
We are still looking at it. It is an option.
What is your outlook on the freight rate scenario?
There has been a very slight improvement in freight rates in the tanker market. There is some stabilisation in the container market. But we cannot say for sure whether it is shortlived or will continue.
What are SCI’s plan for shipbuilding?
It is still on a slow burner because our internal generation is not good enough to really diversify.