Transport Corp to acquire two cargo ships worth $40 mn in FY25

livemint.com:

NEW DELHI : Logistics and supply chain management company Transport Corporation of India (TCI) plans to acquire two cargo ships worth $35-40 million in the current fiscal to bolster its seaways business. TCI is exploring options from shipbuilding operations in China, Japan, and Korea, expecting to finalize a deal in the second half of the fiscal year. “We placed orders for two ships in the last financial year but unfortunately shipyard in Japan cancelled it at the last minute.

We are looking at placing new orders somewhere else, possibly in the second half of the current fiscal," said Vineet Agarwal, managing director, TCI, in an interview with Mint. To strengthen its seaway operations immediately, TCI is also exploring the purchase of a large second-hand cargo vessel, as new ships take around three years of delivery time. "…we are also on the lookout for a second-hand ship in the market place.

I am not sure when this capacity addition will happen, but it is something that we are very actively pursuing," he said. Last October, TCI had signed a contract with Nakanishi Shipbuilding Co. Ltd., Japan, for two cellular container vessels of about 7,300 deadweight tonnes (DWT) each, totaling around $35 million.

The cancellation of this contract has led TCI to reevaluate its ocean fleet acquisition plan. “We are looking overseas for ship acquisition as there is still a gap in what is available from domestic capacities. Shipyards in China, Japan, Korea and others are being explored," Agarwal said.