Essar inducts first vessel under $1 bn expansion programme

Ruias-owned Essar Shipping (ESL) today said it has inducted the first vessel, MV Kamlesh, under a $1 billion capacity expansion programme that envisages the addition of 12 new vessels and two jack-up rigs into its fleet.

ESL said its deadweight tonnage (DWT) will go up to 2.6 million tonnes (MT) from 1.71 MT after acquiring all 12 vessels, making it one of the top two private sector shipping companies in India.

"This newest addition to Essar Shipping's growing fleet, MV Kamlesh, is a bulk carrier, 253 metres long, 43 metres wide vessel and has a cargo capacity of 105,000 DWT," ESL said in a statement.

Essar Shipping has a total capex plan of $1 billion for induction of new vessels, out of which $600 million is for acquiring 12 vessels and approximately $450 million is for acquiring two jack-up rigs, the statement added.

MV Kamlesh "is the first vessel in a series of six vessels that ESL will be taking delivery of... By mid-2012," it said.

These six state-of-the-art vessels built at STX Dalian Shipyard are specially designed shallow-drafted vessels that will provide substantially higher cargo-carrying capacity suited to draft conditions at Indian ports.

"Essar Shipping is in the process of enhancing its fleet capacity... With the addition, ESL continues to serve its customers efficiently with a fleet comprising very large crude carrier tankers, capesize vessels, supramaxes, mini bulk carriers and other lighterage & transshipment assets," said ESL Managing Director A R Ramakrishnan.

With its shallow draft and high cargo carrying capacity, ESL is confident the vessels will make trade along the Indian coastline more economical and cost-effective for clients in the power, steel and other core sectors, he added.

ESL has a diversified fleet of 23 vessels and the company has placed orders for 12 new ships, which are expected to join the fleet over the next 24 months.