Shreyas Shipping Lines Up Rs 200cr Fleet Expansion

Feeder vessels are used for transporting cargo to the transhipment ports. Shreyas is the only Indian shipping company exclusively engaged in feeder operations.

"We have already written to the ministry of surface transport seeking permission. The ministry has earmarked 6,000 teus of vessels of about 600 teu capacity each to be acquired in the plan period. We hope to contribute to the fulfilment of half the quota," said Anil Devli, chief executive officer of the company.

The details of funding the acquisition have as yet not been worked out. "Various factors, including the overall cap on external commercial borrowings, will be taken into account before arriving at a final decision. It will also depend on our cash flow situation," Devli added.

 

The expansion will take the number of owned vessels in the company's fleet to nine. Shreyas has already placed an order for a 925 teu vessel with ABG Shipyard. Besides, it has chartered in five vessels.

The expansion has been prompted by the fact that the company, which used to operate on only the Mumbai-UAE sector till recently, has now widened its reach to five sectors.

It now operates on the Mumbai-Colombo, Mumbai--Singapore, Tuticorin-Colombo and Madras-Colombo sectors as well.

Plans are also on the anvil to begin operations on the Cochin -Colombo sector. A service from Calcutta is also in the offing.

Shreyas is in the process of finalising an agreement with India's premier shipping line, Shipping Corporation of India (SCI), for offering a joint service on the Madras-Colombo sector.

Devli indicated that in the future the company's fleet would consist of chartered ships. It would also charter out vessels in the international trade. This would help it insulate itself from the fluctuations in the freight market.

Shreyas Shipping is promoted by Dubai-based Orient Express Lines in which the promoters have a 70 per cent stake.