SKS to buy 4 vessels for Rs 100 cr

In a bid to augment its fleet, Mumbai-based coastal shipping company SKS (Ship) is planning to acquire four vessels wtih an investment of Rs 100 crore.

The company will acquire 3 container ships with capacity of 300-650 twenty foot equivalent units (TEUs) and medium range tanker vessel.

These vessels will be deployed into foreign operations, that will enable the company to avail tonnage tax benefits.

At present, SKS, which has 36 vessels, is not entitled to tonnage tax as it is confined to coastal operations.

Said SKS Chairman and Managing Director Sarvesh K Shahi: "We have already signed a memorandum of agreement for acquiring first container ship out of four vessels. We should take delivery of this vessel during this month."

The funding for the acquisition has been made through Dena Bank, internal accruals and promoters contribution.

Significantly, SKS Ship has secured a contract from Container Corporation of India (Concor) for transporting 2000 containers per month between Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai and Pipavav Port in Gujarat.

"This contract will add at least 30 per cent to SKS's revenue and substantial impact on its bottomline as well. SKS will be pool resources with Shreyas Shipping & Logistics to ferry containers from JNPT to Pipavav Port," Shahi said.

Industry sources opined that this would ease congestion at JN Port and enable faster movement of containers towards Northern region.

"Concor is planning to transport containers by double stacked box train from Pipavav Port to Inland Container Depot of Tukhlakabad of Delhi," a source said.