The Shipping Corporation of India (SCI) is seeking to expand its fleet by acquiring six used container ships and building four platform supply vessels and one high-speed passenger craft domestically. This move aims to strengthen India’s container shipping capacity, where the country currently relies heavily on foreign shipping lines for its import and export needs, reports the Economic Times.
Second-Hand Vessels
The Shipping Corporation of India has announced a ship purchase plan that includes one firm and one optional resale/second-hand container vessel (12,000-18,000 TEU capacity), and two firm and two optional resale/second-hand container vessels (1,500-2,500 TEU capacity).
The state-owned carrier has also issued tenders for the construction of two firms and two optional platform supply vessels and one 150-passenger high-speed craft, exclusively open to Indian shipyards.
This marks the second attempt by the Shipping Corporation since January 2024 to acquire second-hand container ships. A previous attempt to purchase a 15-year-old container ship (9,000-12,000 TEU capacity) was unsuccessful due to high freight rates driven by the Red Sea crisis.
With the recent cooling of container shipping rates and the ceasefire between Israel and Hamas, the Shipping Corporation hopes to receive favorable offers this time. The ceasefire raises the possibility of resumed Red Sea transits.
The Shipping Corporation currently operates three owned container ships (‘SCI Delhi’, ‘SCI Mumbai’, and ‘SCI Chennai’) and one chartered vessel (‘Alexandria’).
Overseas Orders
In September 2024, the Shipping Corporation chartered a 9,000 TEU capacity ship (‘SCI Delhi’) for three years and deployed it on the weekly IPAK service, a partnership with the Mediterranean Shipping Company (MSC) on the India-Europe route.
However, tenders for two firm and two optional platform supply vessels and a 150-passenger high-speed craft, intended for construction at Indian shipyards, have been extended twice due to a lack of interest from shipbuilders.
An official noted the absence of interest from Indian shipyards, speculating that they might be content with building and repairing ships for the Indian Navy and Coast Guard, which offer lucrative contracts and less pressure on timelines. The official also suggested that local yards, currently busy with overseas orders for specialized vessels, might be prioritizing those contracts over the Shipping Corporation’s tenders due to stricter timelines.
Shipyard executives, however, argue that the Shipping Corporation’s tendering process differs from standard government and private practices. They prefer a process where technical and financial bids are submitted simultaneously, followed by technical evaluation and immediate opening of price bids for qualified firms.
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Source: The Economic Times
