SCI to double capacity to 10 mn DWT by 2015, FPO by end-fiscal

Shipping Corporation of India (SCI) plans to double its capacity to 10-million DTW (dead weight tonnage) by 2015 and is eyeing a follow-on public offer (FPO) by end-this fiscal, a top company official said.

The state-run shipping major's current fleet size is 74 and capacity around 5.1-million DWT, the official said.

"Our plan is to expand our fleet capacity over the next five-years to 10-million DWT," SCI's Chairman and Managing Director S Hajara told reporters on the sidelines of the Indian Shipping Summit here today.

The company's total capital outlay for the next four- years is $4.3 billion.

Hajara said the company has already placed orders for 27 vessels weighing 1.6 million DWT worth $1.3 billion. The delivery of these vessels will be done by 2012.

The company also plans to place an order for another 30 vessels worth $3 billion by 2012 and these deliveries would be made by 2014, Hajara said.

Asked how the company plans to fund its expansion, Hajara said the company has Rs 2,500 crore of cash reserves and plans to have a follow-on public offer (FPO) by end-this fiscal.