SCI, SAIL JV on track; Deloitte to scout for partners

Proposed joint venture between Shipping Corporation of India (SCI) and Steel Authority of India (SAIL) is going ahead full steam despite sharp decline in dry bulk freight rates, with Deloitte Touche Tohmatsu being appointed to scout for foreign partners.

"The slump in dry bulk rates and the ongoing crisis has had no impact on the proposed joint venture with SAIL. We are moving ahead as both the partners are very keen," SCI Chairman and Managing Director S Hajara told PTI here.

He said Deloitte has been appointed consultant for scouting for foreign partners for the JV.

"We are looking at acquisition opportunity to acquire assets (dry bulk vessels) for the joint venture company," he said.

SCI and SAIL last July had announced the joint venture for carrying out dry bulk shipping trade and importing coking coal.

Hajara hoped to make the JV operational by next fiscal.

The steel major and SCI each intended to hold 25 per cent of the paid-up share capital of the proposed JV, while the remaining 50 per cent share capital would be held by strategic foreign partners.

The JV firm would primarily provide shipping related services to SAIL for importing coking coal and may also participate in worldwide dry bulk shipping trade.

In order to offer competitive rates in shipping related business and set up economically feasible coastal transportation of coal from deep draught ports, the JV company would own, operate and charter ships.