SCI to ink contract with Korean shipbuilding firm

National flag carrier Shipping Corporation of India (SCI) is planning to place $502.90 million contract with Korean shipbuilding yards.

Out of this, SCI has already signed contracts with South Korean yard STX Shipbuilding Co for building six new Long Range-I size product tankers for $371 million.

This is the largest shipbuilding contract in terms of value, signed by SCI since its inception. This is also the largest contract ever signed by STX Shipyard.

The last mega acquisition deal was of $258.2 million for acquiring two very large crude carriers (VLCCs) from Daewoo Shipbuilding & Marine Engineering (DSME).

"Shipping Corporation is likely to place orders with Korean shipbuilding yard Hyudai Heavy Industries for two container vessels of about 4,300 twenty foot equivalent units (TEU) capacity each at a price of $65.95 million per vessel," Umesh Grover, director, SCI, said.

Last week, the Cabinet Committee on Economic Affairs gave its approval for the acquisition of these vessels.

"The contract for container vessels is expected to be signed within two weeks. The vessels will be delivered by the end of 2008. These vessels will be deployed on SCI's India-UK service," Grover added.

Grover also said that SCI is planning to conclude acquisitions of more tanker vessels by the next quarter and the corporation is also exploring opportunities at shipyards other than Korea.

The six tankers, ordered at STX, would join SCI's fleet from first half of 2010. The product tankers would have a design deadweight of about 60,000 tonne at the design draft of 12.50 metre.

The tankers would be built to the latest and most stringent international regulations and would be classed with the LR and IRS Classification Societies.

The SCI's present fleet stands at 80 vessels aggregating about 2.75 million gross tonne (GT) comprising cellular container vessels, crude oil tankers (including combination carrier), product tankers, bulk carriers, LPG/Ammonia carriers, acid carriers, passenger vessels and offshore supply vessels.