News on Ports

Haldia dock to handle its first car carrier

Haldia dock is all set to join the league of docks, handling car carriers. In addition to this event, the consignees in the North part of the India will have a cheaper option to road in the form of Railways for evacuating imported Palm Oil. Haldia also scores over other docks in handling imported Palm Oil in terms of cost. Tankage cost at Haldia is Rs.75/ton against Rs.150/ton and Rs. 200/ton at JNPT and Mumbai Port Trust respectively. The Dock is also concentrating on generating LPG traffic along with the present edible oil handling capacity. IOC and Petronas of Malaysia are setting up a LPG terminal jointly as a part of the initiative.

No bidders for MbPT terminals

Mumbai Port Trust (MbPT) has failed to receive any bids for licensing of the five terminals at Victoria dock as multipurpose berths for cargo operations. In total 14 parties had evinced interest initially however, none of them applied for the final tender. MbPT is promulgating extension of date for receiving the tender.

News on Shippings

GE turns in sterling 1st quarter performance

GE Shipping has achieved its highest ever quarterly sales and net profit in the first quarter. The company has posted a net profit of Rs 61.7 crore for the quarter ended June 30th, 01 as against Rs 48.5 crores for the corresponding period last year. Total income for the quarter ended June 30th, 01 is at Rs 342.8 crore as against Rs 268.3 crore for the quarter ended June 30th, '00.

As regards the future, the tanker boom may almost be over, with charter rates falling to realistic levels over the past couple of months. As KM Sheth, Chairman of Great Eastern Shipping said at the company's Annual General Body Meeting, the revenue outlook for the shipping business for the next quarter is weaker. GE itself, though, is likely to maintain its performance in the next quarter by virtue of having entered into long term commitments for chartering its tankers. Mr Sheth, however, did not rule out the possibility, of the tanker market recovering during the second half of the year, contingent on the OPEC's response to the oil situation. According to him, an increase in crude oil demand and the International Maritime Organisation's stipulation to phase out single hull vessels (around 3,000 tankers would be scrapped worldwide) would lead to a good demand supply situation.

Meanwhile, the company is close to finalising a deal with an international air logistics provider for a joint venture and has already secured board approval for the same. The company also plans to acquire more helicopters for leasing to oil exploration companies for their offshore drilling services. The company is also in advanced talks to rope in a joint venture partner to bid for floating storage operations (FSO) at Haldia.

Essar Shipping posts profit

Essar shipping Ltd has posted a 140.69 percent rise in the net profit at Rs 25.2 crore for the quarter ended June 30, 2001 aginst rs 10.47 crore in the same period last fisical. Essar Shipping has made gains in moving towards floating an international subsidiary, Energy Transportation International (ETL), as it got ICICI congruence to set up the tanker firm. ICICI, financier of ESL's Vandinar Oil Terminal (VOTL), has given green signal for the ETI project, provided guarantees are placed for the FI's investment in VOTL.

SCI to acquire SBMs

Shipping Corporation of India (SCI) has signed a memorandum of understanding(MoU) with Single Buoy Mooring Inc (SBM) for floating storage and offloading facility. SCI has also secured green signal from the Public Investment Board to buy two new Long Range 11 (LR 11) crude oil tankers from Daewoo Shipbuliding & Marine Engineering Company of Korea at a cost of $51 million per vessel.

Meanwhile, SCI's joint venture for LNG shipping with Japanese consortium of Mitsui O.S.K.Lines (MOL), NYKK Line and KKK line for the $ 370- million deal will be considered by the Cabinet Committee on Economic affairs

Aban Lloyd, Hitech merger cleared

The board of directors of Aban Lloyd Chiles Offshore Ltd has approved the merger of Hitech Drilling Services India Ltd, an erstwhile Tata group company, with the company. The decision was taken by the Aban Lloyd board in its meeting held last week. As per the deal, the for every five fully paid up equity shares of Rs 10 each of Hitech Drilling Services India Ltd, two fully paid equity shares of Rs 10 each of Aban Lloyd Chiles Offshore Ltd would be allotted.

The acquisition was advised by DSP Merrill Lynch and financed by ICICI and is the largest ever merger and acquisition deal in the Indian offshore drilling industry.

News on Logistics

Priority study for NHAI to sent for Government approval

Priority study for NHAI to sent for Government approval The National Highways Authority of India (NHAI) will be putting up prioritisation studies for the North-South East-West (NS-EW) corridors for government approval soon. The highway authority has already worked out a draft study and is likely to finalise it within two months. The study will spell out which highway stretches within the corridor programme are to be taken, on priority basis, for construction