GE Shipping lines up Rs 1,400 cr expansion

The Great Eastern Shipping Company (GE Shipping), the country's largest private sector shipping firm, has chalked out a Rs 1,400 crore expansion plan.

The plan entails acquiring 11 ships over three years. These include four MR product tankers, two Suezmax carriers and five other ships.

"The last vessel will be delivered in September 2007," GE Shipping executive chairman K M Sheth said after the company's 56th annual general meeting.

Earlier at the AGM, Sheth said the company's record net profit of Rs 471 crore (more than twice that of the previous year) for the year 2003-04 was attributable to a timely exapnsion of fleet, which increased by 87 per cent, strong freight markets particularly in the bulk sector and better utilisation of assets of the offshore division.

"The slowdown in China has impacted dry bulk earnings, with freight rates having fallen between 30 to 40 per cent. But, it is important to know that this fall is from levels that have never been witnessed before. This year's earnings are still at a substantial premium to the long-term average freight earnings. However, we believe that the strong demand for oil should be sustained, leading to higher tanker freight rates," Sheth said.

"The utilisation of the offshore division should also continue to remain high and, therefore, on balance, I believe the company is headed for another strong year of performance," he added.