shipping corporation of india
TRANSCRIPT
SUBMITTED BY:-
RAHUL KUMAR RATHORE (09MBA099)
RAJESH BHATT (09MBA100)
Mission
To serve India`s overseas and coastal seaborne trades as its primary flag carrier and be an important player in the field of global maritime transportation as also in diverse fields like Offshore and other marine transport infrastructure.
Vision
To emerge as a team of inspired performers in the field of Maritime Transportation serving Indian and Global trades with focus on:
Maintaining its "Numero Uno" position in Indian Shipping Establishing a major global presence in Energy - related, Dry Bulk and niche container
shipping markets.
Safety of people and property and protection of Environment.
Objectives1. To provide its clientele safe, reliable, efficient and economic shipping services.2. To be an optimally profitable, viable, commercial organization and contribute to the
national economy by securing a reasonable return on capital.
3. To own or acquire through options like leasing, demise charter, joint ventures and other innovative financial measures an adequate fleet to cater to a significant portion of India's overseas trade, particularly in items of strategic importance like crude oil and petroleum products.
4. To increasingly participate in India's offshore and other marine activities, and to continue to explore opportunities for diversification to ensure overall and steady growth of the Company.
5. To develop internal Human Resource with a view to achieving higher productivity
About SCI
Shipping Corporation of India
Type:- Government Owned (BSE:SCI)
Founded Mumbai, 1961 Headquarters Corporate Centre,Madame Cama Road,Mumbai 400 021 India
Key people S Hajara (Chairman and Managing Director) Industry Shipping
Website:- www.shipindia.com
The Shipping Corporation of India Ltd., (SCI) was incorporated on 02.10.1961 by amalgamation of Eastern Shipping Corporation and Western Shipping Corporation, with an Authorized Capital of Rs. 35.00 Crore and Paid-Up Capital of Rs. 23.45 Crore.
On the day of amalgamation, the SCI's fleet stood at 19 vessels of 1.39 Lakh GT and 1.92 Lakh DWT. Subsequently two more Shipping Companies viz. Jayanti Shipping Company and Mogul Line Ltd. were merged with the SCI in 1973 and 1986 respectively. The status of the SCI has changed from Private Limited Company to Public Limited Company with effect from 18.09.1992.
To fortify and grow is a character with which SCI is very conversant. This defined its earlier growth path and catapulted SCI into a specialist category; the 1960s recognized SCI as a complete liner services company. In fact, as much as 90% of its entire tonnage was a consequence of liner ships regularly plying coastlines.
Thereafter, quick expansions of its fleet were undertaken, in sync with its progress plans. The fleet structure thus developed, distinguished SCI as the most diversified fleet-owner in India.
Even by international standards, SCI employed a remarkably diversified ship line-up; liners, bulk carriers and tankers, and offshore services that transport everything, from iron-ore to fertilizers, crude oil to petroleum products and critical materials used in offshore installations, and even tow rigs.
Representing India to the extent of 40% of its entire tonnage! Other critical points too, like a presence in almost every major sea route in the world, have been instrumental in classifying SCI as a global player, slotting it in the world’s top 15 league.
Sailing through for nearly five decades, the SCI today has a significant presence on the global maritime map and is undoubtedly the country’s premier shipping line. It owns and operates about 33% of the Indian tonnage servicing both national and international trades. PLACES IN INDIA WHERE SHIPPING CORPORATION OF INDIA IS LOCATED
Keeping in view the demands of the nation’s trade, the SCI over the years has diversified into a large number of areas, and is today the only Indian shipping company providing overseas break-bulk and container services to Indian trade.
Through its owned and managed fleets, the SCI operates shipping services in various segments viz. container, break-bulk, crude oil & products, dry bulk, LPG / Ammonia, Phosphoric Acid / Chemicals, LNG, coastal passenger transportation, offshore logistic support services and other coastal services.
SCI mans / manages vessels on behalf of India LNG Transport Companies (Joint Venture Companies), Andaman & Nicobar Administration, Union Territory of Lakshadweep Administration, Geological Survey of India (Ministry of Mines), Ministry of Earth Sciences (Department of Ocean Development), Oil and Natural Gas Corporation (PSU).
The SCI has contributed immensely to the growth of India’s EXIM trade as well as contributing to the Nation’s exchequer by being a net earner / saver of valuable foreign exchange. Over the years, SCI has assumed the role of a lifeline for the country during times of emergency and distress by ensuring continued and uninterrupted supply of crude oil, the fuel, which drives the country’s economy.
The liberalization and globalization of Indian economy has presented the SCI with a whole lot of opportunities to grow and diversify and the SCI is ideally positioned to avail of these opportunities due to the presence of a modern, young and diversified fleet coupled with the presence of a large pool of well trained and experienced manpower both ashore and afloat to operate it.
The SCI is a profitable commercial venture of Government of India and has an excellent track record of earning profits since its inception barring a few years in the late 1970s and early 1980s when the shipping industry worldwide was under depression.
The SCI’s annual performance has been consistently rated ‘Excellent’ for more than a decade and a half under the MOU signed with the Ministry of Shipping, Government of India.
The Government of India, mindful of the excellent track record, conferred “Navratna” status to SCI on 01.08.2008, leading to further enhanced autonomy and delegation of powers to the Company towards capital expenditure, formation of Joint Ventures, mergers, etc.
The continued profitability of the SCI has been due to the innovative and timely strategies and measures adopted by the SCI Management which included, inter alia, judicious and optimal utilization of available tonnage by deploying it in the most remunerative sectors, commencement of new services in niche markets, phasing out of older tonnage, forging alliances with the significant players in the market to enhance cargo availability and apportion expenses, administrative cost cutting, etc.
The SCI takes pride in the fact that it is a responsible and socially committed ship-owner, placing greater emphasis on the safety of life, vessels, cargo and the environment it operates in; and has evolved into a highly quality and safety conscious organization.
The SCI has also received numerous awards and accolades from various national and international organizations for achieving excellence in customer satisfaction, operational efficiencies, Human Resource training, emergency preparedness etc.
SCI is now certified as ISO 9001-2000 compliant by Indian Register of Quality Services (IRQS) from 08.05.2007. The certificate is valid up to 09.05.2010 subject to surveillance audit at intervals of one year.
In tune with the worldwide trend of specializations and the premium placed on core-competencies, the SCI has charted a definitive course of action for the future. The thrust areas for growth and diversification focus on energy transportation including the sunrise segment of LNG transportation.
The SCI has heralded India’s entry into the specialized field of LNG transportation by acquiring a stake in the three Indian LNG transportation agreements contracted till date that too after a global bidding process. SCI’s presence in the three LNG joint venture companies would go a long way in establishing itself as a major LNG transportation player in the world.
The SCI possesses all the ingredients essential for emerging as a truly world class international shipping company and the endeavor of the Management is to facilitate the release of the boundless streams of energy and initiatives and channeling it for the future growth and prosperity of the Company and the Nation.
SCI`s basic operating and earning unit is the ship, charting all the oceans of the world. SCI`s interface viz. clients, vendors, service providers, etc are spread worldwide. The global nature of SCI`s business network puts a greater onus on the organization to reach both its operating units and interface with speed and efficiency with no room for any doubts or delay.
SCI initiated the process of integrating IT with its business functions almost two and a half decades back and always ensured that the organization remains abreast with the latest in all fields.
Organization
SCI is organized into 3 operating divisions supported by 2 service divisions. Each division headed at the corporate level by a full time Director forming a Corporate Group.
The Corporate Group works under the overall direction and control of the Chairman and the Managing Director. The Corporate Group has ensured a closer teamwork leading to better and efficient administration of fleet and in turn a better and more efficient service.
The SCI Board is headed by the Chairman and Managing Director, 5 full time directors heading the divisions and 10 part time directors (2 official and 8 non-official) nominated by Government of India.
FUTURE PLANS
In the future, SCI plans to diversify into shipbuilding, dredging and land logistics (viz. container freight stations, container terminal operations and inland container depots). It has also signed an agreement with Mediterranean Shipping Company, PSUs Container Corp. of India (Concor), and Central Warehousing Corporation (CWC) for setting up container terminals.
The government recently conferred the navratna status on SCI. This will enable the company to take quick decisions with respect to fleet expansion without getting into lengthy procedures to obtain permission from the government.
PROJECTS ON HAND
Project Name Location Cost (Rs. Crore)
Product Capacity Unit Status
Shipping Corporation's Purchase of VesselsMulti Locations Multi Region MR 5,773 Fleet Expansion Plan 58 Numbers
Under Implementation
Six LR-I Product Tankers Purchase ProjectMulti Locations Multi Region MR 1,658
Six LR-I Product Tankers 73000 Dwt
Under Implementation
Four Capesize Ships Procurement ProjectMulti Locations Multi Region MR 1,600 Four Capesize ships 100000 MTPA
Announced and Stalled
Four Aframax Bulk Carriers Purchase Project
Multi Locations Multi Region MR 1,168
Aframax Bulk Carriers 115000 Dwt
Under Implementation
Six Handymax Bulk Carriers Purchase Project
Multi Locations Multi Region MR 1,061
Handymax Bulk Carriers 57000 Dwt
Under Implementation
Two Panamax Bulk Carriers Purchase Project
Multi Locations Multi Region MR 968
Panamax Bulk Carriers 80655 Dwt
Under Implementation
Two LR-II Crude Tanker Acquisition Project
Multi Locations Multi Region MR 586 LR-II Crude Tankers 105000 Dwt
Under Implementation
Two MR Product Tankers Procurement Project
Multi Locations Multi Region MR 411 MR Product Tanker II 47000 Dwt
Under Implementation
Four AHTS Vessels (80 T) Purchase ProjectMulti Locations Multi Region MR 359 AHTS Vessels 80 Tonnes
Under Implementation
Two AHTS Vessels Procurement ProjectMulti Locations Multi Region MR AHTS Vessels 120 Tonnes
Under Implementation
Two PSVs Acquisition ProjectMulti Locations Multi Region MR PSVs 3100 Dwt
Under Implementation
Equity holding by type of investors
(% to total)
Jun 2008
Sep 2008
Dec 2008
Mar 2009
Jun 2009
Sep 2009
Total Shares 100 100 100 100 100 100 Promoters 80.12 80.12 80.12 80.12 80.12 80.12 Indian 80.12 80.12 80.12 80.12 80.12 80.12 Individuals & HUF Central & State Govt. 80.12 80.12 80.12 80.12 80.12 80.12 Corporate Bodies FIs & Banks Others Foreign Non-promoters 19.88 19.88 19.88 19.88 19.88 19.88
Institutions 15.91 15.08 14.8 14.38 13.46 13.91 Mutual Funds/UTI 0.97 0.92 0.64 0.5 0.7 0.47 Banks, FIs,Insurance Cos. 8.74 9.01 9.32 10.23 10.41 11.28 Insurance Companies 8.53 8.77 8.98 9.92 9.54 11.16 Financial Institutions & Banks 0.21 0.24 0.34 0.31 0.87 0.12 Central & State Government FIIs 6.2 5.14 4.84 3.64 2.35 2.16 Others Non-institutions 3.97 4.8 5.08 5.5 6.42 5.97 Corporate Bodies 1.08 1.42 1.39 1.81 2.2 1.97 Individuals 2.76 3.24 3.51 3.52 4.03 3.79 Others 0.14 0.14 0.17 0.18 0.2 0.2
Present Status
Physical Vessel Deliveries
During 2008-09 SCI took delivery of 3 vessels viz. 2 new built cellular container vessels (mv SCI Chennai and SCI Mumbai of 4400 TEU capacity each on 22nd and 28th October 2008) and 1 new built very large crude carrier (VLCC - mt Desh Viraat of 1, 62,416 GT and 3, 20,412 DWT on 29th October 2008).
During 2009-10 SCI took delivery of 2 vessels viz. 1 newbuilt VLCC (Desh Vishal of 1, 62, 412 GT and 3, 21,137 DWT on 25th June 2009) and 1 newbuilt Product Tanker (mt Swarna Kalash of 29,845 GT and 47,878 DWT on 10th October 2009). Fleet Strength:
Sailing through for nearly five decades, the SCI today has a significant presence on the global maritime map. SCI is the country’s premier Shipping Line, presently owning a fleet of 76 vessels of 29.24 Lakh tonnes GT i.e. 51.33 Lakh tonnes DWT (as on 24.11.2009) with a share of nearly 33% of the total Indian tonnage.
SCI’s owned fleet includes Bulk carriers, Crude oil tankers, Product tankers, Container vessels and Passenger-cum-Cargo vessels, Phosphoric Acid / Chemical carriers, LPG / Ammonia carriers and Offshore Supply Vessels. The highly diversified fleet of the SCI includes modern and fuel-efficient ships giving it a qualitative status as also a distinct competitive edge over other fleet owners.
In addition, SCI mans / manages 60 vessels of 3.1 Lakh tonnes GT and 2.1 lakh tonnes DWT on behalf of: India LNG Transport Companies (JVCs), Andaman & Nicobar Administration, Union Territory of Lakshadweep Administration, Geological Survey of India (Ministry of Mines), Ministry of Earth Sciences (Department of Ocean Development), and Oil and Natural Gas Corporation (PSU).
SCI’s managed fleet includes LNG Tankers, Passenger–cum–Cargo Vessels, Passenger Vessels, Oil Barge, Research Vessels, Ocean Research Vessel, Fishery Oriented Research Vessel, Offshore Supply Vessels, Multipurpose Support Vessel, Diving Support Vessel, Well Stimulation Vessel, Seismic Survey Vessel and Geotechnical Vessel. Unlike conventional cargo carrying vessels, these managed vessels perform specialized functions and require expert skills for their operations.
Financial
SCI’s authorized capital and paid-up capital have been increased over the years in stages. In November 2008, SCI issued bonus shares, prior to which its paid-up capital was Rs.282.30 Crores. At present, SCI’s authorized capital is Rs.450 Crores and paid-up capital is Rs.423.45 Crores.
SCI’s shares are listed on the five stock exchanges viz. NSE, BSE, Chennai, Delhi and Kolkata and are traded regularly. The Equity Capital disinvested by the Government of India is 19.88%.For the financial year 2007-08, SCI recorded a Turnover of Rs. 4,084 Crores and a Net Profit after Tax of Rs. 814 Crores. The Company paid a total Dividend of 85%.
For the financial year 2008-2009, SCI recorded a “Total Income” of Rs. 4564.5 Crores and a “Net Profit after Tax” of Rs. 940.7 Crores. The Company paid a dividend of 65% on the increased paid-up share capital after issue of bonus shares.
MOU Signing PSE
SCI has been signing Memorandum of Understanding with the Ministry of Shipping, Government of India. It has been performing exceptionally well under the MOU evaluation system, and has received “Excellent” rating consistently for more than a decade and a half.
SCI has signed the MOU with the Ministry of Shipping for the financial year 2009-10.
Competitors
Market Cap.(Rs. cr.)
SalesTurnover
Net Profit Total Assets
Shipping Corp 7,334.22 4,166.64 940.67 8,680.12
Essar Shipping 5,051.68 1,050.85 107.66 9,592.35
GE Shipping 4,854.23 3,083.47 1,374.69 7,994.77
Pipavav 3,775.08 - - -
Great Offshore 1,779.32 950.65 211.10 2,635.98
ABG Shipyard 1,601.75 1,412.20 172.77 2,686.42
Mercator Lines 1,587.05 1,179.99 181.10 2,524.16
BharatiShipyard 882.63 934.10 124.99 1,704.97
Varun Shipping 866.29 992.68 122.81 3,658.58
Seamec 780.55 268.59 47.12 321.76
So, the above chart reflects that Shipping Corporation of India is not the only entity which is serving India. There are many other companies also who are in the same business from a considerable time period.
This so that Shipping Corporation of India is not having MONOPOLY kind of market in India.
Scope of the Shipping Corporation of India:
The Shipping Corporation of India falls under the category of commercial venture of the Indian government and it has grown the capability to posses as well as manages a major share of the Indian tonnage. The company has extended its scope to supervise and service the water crafts owned by the Indian Government.
In addition to it The Shipping Corporation of India offers liquid bulk facility and international container facility. The significant contribution of The Shipping Corporation of India lies in the circulation of crude oil. The company has been recently honored with Mini Ratna title that has authorized it to take crucial decisions regarding capital investment and enter into joint ventures.
The Shipping Corporation of India has also embarked into energy transit and is therefore concerned with the sunrise division within LNG transportation.
Accomplishments of the Shipping Corporation of India:
The Shipping Corporation of India was recognized with the Star Performers' Award which was presented by M/S. Freightliner, U.K. in association with Lloyds London Press, U.K. In the year 1999, on account of the excellent quality container service provided by The Shipping Corporation of India between India and U.K. ONGCL presented The Shipping Corporation of India with the letter of appreciation for mending their pipeline called Hira Uran trunk, that was partly destroyed due to the uneven circumstances created in 1996 cyclone.
The Shipping Corporation of India has been awarded with Automated Mutual Assistance Vessel Rescue for the rescue operations carried on by approximately 19 water crafts of the company. These water crafts have been awarded in the form of Blue Pennant, Gold Pennant, Purple Pennant as well as Certificate of Merit. Some of the prominent water crafts that received the award are:
M.T. Jawaharlal Nehru
M.V. Mandakini
M.V. Dev Prayag
M.V. Maharashtra
M.T. Guru Gobind Singh
M.V. Pataliputra
M.T. Palanimalai
M.T. Ankleshwar
M.T. Sabarimala
M.T. Motilal Nehru
M.T. Tirumalai
AWARDS & RECOGINITION
The award–winning ships for 2001 :
TYPE GROUP SAFETY SHIELD SAFEST SHIP
Specialised Vessels SVC LPG/C Nanga Parbat LPG/C Nanga Parbat
Tankers T1 M.T. Maharaja Agrasen M.T. Maharaja Agrasen
T2A M.T. Bankim Chandra Chatterjee
T2B M.T. Sampurna Swarajya
Bulk Carriers BC M.V. Alaknanda M.V. Alaknanda
ISMG M.V. Hardwar
Passenger Ships PS M.V. Nicobar T.S.S. Yerewa
The award-winning ships for 2002 :
TYPE GROUP SAFETY SHIELD SAFEST SHIP
Specialised Vessels SVC M.T. Tirumalai M.T. Tirumalai
Tankers T1 M.T. Ankleshwar M.T. Netaji Subhas Bose
T2A M.T. Subedar Joginder Singh PVC
T2B M.T. Netaji Subhas Bose
Bulk Carriers BC M.V. Varanasi M.V. Varanasi
SCI conferred with ‘Safest Indian Shipping Company’ & ‘Most Compassionate Employer’ Awards during the year 2002
Year 2001 – 2002
• The Shipping Corporation of India (SCI) was awarded “SHIP EMERGENCY RESPONSE SERVICE (SERS)” Awards for outstanding commitment to emergency preparedness in November, 2001 by the Lloyds Register of Shipping. This was evaluated on the basis of performance in number and variety of exercises demonstrated with the Lloyds Register of Shipping Emergency Response Service.
Year 1999-2000:
• Star Performers' Award for 1999, which is jointly instituted by the Lloyds London Press of U.K. and M/s. Freightliner, U.K. and is presented to a shipping line that achieves the best service reliability and fastest transit times on the different trade routes from Europe. The SCI was given this award for its India-UKC Container Service.
Year 1998-99:
• The Shipping Corporation of India Ltd., (SCI) received on 17th July' 1999, the Prime Minister's Memorandum Of Understanding (MOU) Award for excellence in overall corporate performance
for the year 1997-98 at a function organized by Department of Public Enterprises (DPE), Ministry of Heavy Industries and & Public Enterprises, Government of India in collaboration with Standing Committee On Public Enterprise (SCOPE).
• The SCI was awarded the prestigious "Golden Peacock National Training Award" for the year 1997 for excellence in the field of training. The SCI was chosen from amongst 45 entries consisting of various training institutes from all over the country.
• Star Performers' Award for 1998-99, which is jointly instituted by the Lloyds London Press of U.K. and M/s. Freight Liners, U.K.
Year 1997-98:
• Letter of Appreciation received from M/s. ONGCL for performing the very difficult job (by the vessel MSV Samudra Suraksha) of effecting repairs (by cropping the damaged section and renewing the same) to their Heera Uran Trunk (HUT) Pipeline, a major oil supplying arteries of ONGCL which was damaged by an uncontrolled semi-submersible Rig during the 1996 cyclone.
Year 1996-97:
• Star Performers' Award for 1996 - 2nd time in succession for the fastest transit time on the South East Asia (Mumbai) route. This award, which is sponsored by Lloyds of London Press and the Port of London Authority, is presented to a shipping line for schedule reliability and fast transit time with selection done by Lloyds on the basis of a monthly survey of operations in various long haul trade routes.
• Highest throughput award for Bulk / Container Cargo at Jawaharlal Nehru Port Trust.
Year 1995-96:
• 1995 Star Performers' Award for achieving the fastest transit time on the South East Asia (Mumbai) route. The award sponsored by Lloyds of London Press and the Port of London Authority, is presented to a shipping line for schedule reliability and fast transit time with selection done by Lloyds on the basis of a monthly survey of operations in various long haul trade routes.
• Cash award and citation for meritorious meteorological work done by the vessels m.v. Sagar Kanya, m.v. Kabirdas and m.t. Chatrapati Shivaji
• Certificate of Merit awarded to 28 vessels for transmitting useful meteorological observations to coastal radio stations as members of the Indian Meteorological Department voluntary observing fleet.
• Rated first for its performance by Express Investment Week for the Year 1994-95.
Fleet Position during the Year During the year under report there was no addition or scrapping of tonnage. Thus, the overall fleet position remained at 79 ships at the end of the year as shown in the following table: FLEET PROFILE DURING THE YEAR Particulars As on 01.04.2008 As on 31.03.2009
No. DWT No. DWT 1.(a) Crude Oil Tankers 30 33, 13,876 30 33, 11,723(b) Product Tankers 9 3, 67,240 9 3, 67,240(c) Chemical Tankers 3 99,174 3 99,174
No. DWT No. DWT (d) Gas Carriers 2 35,202 2 35,2022. Bulk Carriers 20 8, 34,955 20 8, 34,9553. Liner Ships 3 86,815 3 86,8154. Offshore Supply Vsls. 10 17,904 10 17,9045. Passenger-cum-Cargo 2 5,303 2 5,303Vessels
Total 79 47, 60,469 79 47, 58,326** Due to conversion of 2 Single Hull tankers to Double Hull, there is a minor change in DWT.
VESSELS ON ORDER AT THE END OF THE YEAR
Type No.
Very Large Crude Oil Tankers (VLCCs) 2LR-I Product Tankers 6 Cellular ContainerYessels of 4,400 2TEUs eachMR Product Tankers 2LR-II Product Tanker 2Aframax Crude 4Oil CarrierAnchor Handling,Towing & Supply 4
Vessel (AHTSV)Handymax Bulk Carrier 6
Shipyard Total DWT
Daewoo Shipbuilding and MarineEngineering Co. Ltd., S. Korea 6, 38,000STX Shipbuilding Co. Ltd., S. Korea 4, 34, 000Hyundai Samho Heavy Industries, South Korea 116,000Jinling Shipyard, China 94,000Hyundai Heavy Industries Co. Ltd. S.Korea 210,000Hyundai Heavy Industries Co. Ltd. S.Korea 460,000Bharati Shipyard Ltd. 8,000STX (Dalian) Shipbuilding Co. Ltd. 342,000
SEGMENTWISE PERFORMANCE Crude Oil Tankers
The Company has been competing with other players in the Global competitive market as a number of tankers including two VLCCs are employed gainfully on cross trades. M/s. Hindustan Petroleum Corporation Ltd. (HPCL) and M/s Bharat Petroleum Corporation Ltd. (BPCL) continues to have CoA arrangements with SCI for their crude transportation.
During the year 2007-08, the total quantity of crude oil transported by the Company’s tanker fleet was about 35.08 mmt, which includes 10.49 mmt. in cross trades, 11.43 mmt. of imported crude for Indian Oil Industry and 13.17 mmt. coastal movement.
In addition, through in-chartered vessels, SCI transported about 4.18 mmt. of imported crude for Indian Oil Industry. Hence, the total quantity transported by SCI (both owned vessels and in-chartered vessels) during the year under review was 39.26 mmt.
Of the total of 15.61 mmt. of crude oil transported by SCI for Indian PSU refineries, 73% were carried by owned vessels and 27% carried by in-chartered vessels.
SCI, as an integrated service provider, has also handled lighterage operations during the year 2007-08 at various locations along the Indian coast and lightened liquid and dry bulk cargo of 15.375 mmt.
Ship-to-Ship (STS) Lighterage operations
During this period, 448 lighterage operations were carried out for STS transfer of 12.018 mmt. of crude oil (both imported and indigenous) and 56 lighterage operations for STS transfer of 3.357 mmt. of bulk iron ore.
During the year 2007-08, the Company performed six complete tanker handling operations of product tankers at SBM facility at Dabhol on account of IOC.
Contract of Affreightment (CoA) During the year 2007-08, the Company successfully performed CoA with HPCL and BPCL for 10.94 mmt. of imported crude plus 1.3 mmt.Of indigenous crude and for 6 mmt. of imported crude plus 2.35 mmt. indigenous crude, respectively. Employment pattern MR Tankers The tanker, Homi Bhaba performed lighterage operation at Vadinar, Mumbai High and at PY3. Another tanker, m.t. C.V.Raman was on time charter with IOC for lighterage operation at Sandheads and at Panna fields. LR-1 Tankers As a result of revision of regulation 13G and addition of new regulation 13H of MARPOL Annex. 1, SCIs LR -1 tankers were unable to load HGO (Heavy Grade Oils) i.e crude oil and fuel oil cargoes having density greater than 900 kg/m3 @ 15°C. Hence, these vessels were not workable for cross-trade shipments. However, the Company managed to employ all these LR-1 tankers mainly for carriage of BH/ Ravva crude along the coast and lighterage operations under the CoA. Besides, LR-1 tankers were also operated for transportation of crude oil from Iraq from time to time for the Indian Oil Industry.
CSL tankers These tankers performed mix of CoA and open market cross-trade voyages. The tanker, A.K. Azad, was on time charter with BPCL. Aframax tankers These tankers performed mix of CoA and open market cross-trade voyages both in time charter and voyage basis. The tanker, Desh Prem, was on cross-trade voyages for some time and thereafter, employed on time-charter basis a/c. Norden. The tanker, Desh Bhakt, has beenemployed on time charter basis a/ c. Norden during the period under review. Suezmax tankers Suezmax tankers performed a mix of CoA and open market cross-trade voyages. The tanker, Desh Shakti, was successfully employed on voyage charter basis in cross trade for some time and thereafter employed on time charter basis. VLCCs Two VLCCs viz. m.t. Desh Ujaala and m.t. Desh Vaibhav were successfully employed in the open market on time charter basis as also cross-trade voyages. The Company took advantage of the premium charter rates for its double hull tankers in the tanker freight market and earned additional revenue by deploying them on cross trade from time to time. Storage Duty During the year under review, the Company regularly deployed LR-I tankers and m.t. Maharshi Karve for storage of crude oil for Oil & Natural Gas Corporation (ONGC) under the time charter agreement. The company is transporting Mumbai high crude to various coastal refineries viz MRPL, HPCL, BPCL, IOC and CPCL. Product Carriers During the year, 7 vessels viz. m.t. Bhartidasan, Suvarna Swarajya, Sampurna Swarajya, Lance Naik Albert Ekka PVC, Flying Officer Nirmaljit Sekhon PVC, Arun Khetrapal and Major Hoshiar Singh PVC were gainfully employed with the Indian Oil Industry on time charter basis ending on 31st March 2008. Vessel m.t. Rabindranath Tagore has been employed with Dorado Tanker Pool. Vessel, m.t. B.C.Chatterjee was on time charter for the whole year.
Specialized Vessels The Company’s LPG / Ammonia carriers were operated for carriage of both LPG and Ammonia. While one tanker serviced HPCL on time-charter for transportation of LPG from WAG, Malaysia to India as well as coastal movement of LPG from Indian refineries up to mid January 2008 and thereafter with IOCL, the second tanker was deployed on time-charter with Malaysia International Shipping Corporation (MISC), Malaysia for transportation of Ammonia on cross-trade in the international market at attractive rates. Three chemical tankers continue to be deployed under a long-term CoA with Maroc Phosphor / IMACID. During the year, 3 tankers carried about 0.50 mmt. of phosphoric acid which included two parcels of 20000 mt. to Bin Qasim, Pakistan.
References
www.shipindia.com
www.corporateinformation.com
www.wikipedia.com
www.businessmarketreports.com
Department of commerce
www.google.com
