The Shipping Corporation of India Ltd (SCI) has launched a series of strategic initiatives aimed at bolstering its fleet and enhancing its operational capacity. These efforts reflect SCI’s determination to adapt to dynamic market conditions and address logistical challenges.
Key Initiatives and Developments
- Second-Hand Container Ship Acquisition
- SCI is pursuing bids for the purchase of six second-hand container ships with the following details:
- One firm and one optional resale/second-hand container ship (up to 15 years old) with capacity for 12,000 – 18,000 TEUs.
- Two firm and two optional resale/second-hand container ships with capacity for 1,500 – 2,500 TEUs.
- SCI is pursuing bids for the purchase of six second-hand container ships with the following details:
- Tender for New Vessel Construction
- Tenders issued for:
- Four platform supply vessels.
- One 150-passenger high-speed craft.
- Participation limited to Indian shipyards to support domestic industry.
- Tenders issued for:
- Previous Attempt and Market Realignment
- A prior effort in January 2024 failed due to adverse freight market conditions, but cooling container shipping rates and geopolitical stability are now favorable for procurement.
- Current Fleet Overview
- SCI operates three container ships: SCI Delhi, SCI Mumbai, SCI Chennai, and a chartered ship, Alexandria.
- Challenges with Domestic Shipyards
- Limited interest in tenders from Indian shipyards due to existing commitments with the Indian Navy and Coast Guard, which are perceived to offer more favorable terms.
- Criticism over SCI’s tendering process being non-competitive and lengthy, discouraging MSME participation.
- Recent Market Activity
- Despite challenges, SCI received interest in a recent tender for a 15-year-old Very Large Gas Carrier (VLGC), signaling engagement in other vessel segments.
- Market Conditions
- Stabilizing container shipping rates and a ceasefire between Israel and Hamas are expected to support route stability and improve acquisition conditions.
Data Summary Table
| Category | Details |
|---|---|
| Second-Hand Ships Purchase | – 12,000-18,000 TEUs: 1 firm + 1 optional – 1,500-2,500 TEUs: 2 firm + 2 optional |
| New Vessel Tenders | – 4 platform supply vessels – 1 high-speed craft (150-passenger capacity) |
| Current Fleet | – Container Ships: SCI Delhi, SCI Mumbai, SCI Chennai – Chartered: Alexandria |
| Previous Efforts | January 2024 attempt failed due to freight market challenges |
| Market Dynamics | Cooling shipping rates; ceasefire stabilizing shipping routes |
| Domestic Shipyard Issues | – Focus on Indian Navy/Coast Guard contracts – Criticism of SCI’s lengthy tender process |
| Recent Engagement | Interest received for a 15-year-old VLGC |
Conclusion
The Shipping Corporation of India is undertaking significant steps to modernize and expand its fleet amidst evolving market conditions. While challenges persist, particularly with domestic shipyard participation, SCI’s proactive measures indicate its commitment to remaining competitive in the shipping industry.
Glottis Limited 
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