India: Kandla, Paradip Ports Negotiate with SCI and DCI

Kandla and Paradip ports are in negotiations with the Shipping Corporation of India (SCI) and Dredging Corporation of India (DCI) to develop a new dredging strategy, reports thehindubusinessline.com.

This new plan will include the new joint ventures between the mentioned sides and also doing business together in the dredging sector.

Regarding this very important plan, P. K. Sinha, the Shipping Secretary, stated: “Such a strategy could be a win-win for all parties involved and our country as a whole, as the dredging capacity of Indian firms will go up.”

According to the International Association of Dredging Companies, 43 pct of the total dredging market worldwide is not open for international tenders.

Sudhanshu Shekhar Mishra, Chairman, Paradip Port Trust, commented: “Our dredging requirement is set to double next year. As a port, we would like to focus on core activity of attracting cargo and efficient functioning. Our Board members are enthusiastic about the proposal.”

As recently reported, DCI has already achieved financial closure for two other dredgers and one of them has even been installed. Each dredger costs Rs.550 crore.

After these dredgers, the company plans to buy another two dredgers for Rs.1,200 crore.

“We have asked SCI to consider diversification into dredging space so that it can be protected from the cyclical nature of the shipping market. To tide over the fund crunch that SCI is facing now, a tie-up between SCI and a port such as Kandla that has regular demand for dredging is being looked at,” concluded Sinha.

[mappress]

Dredging Today Staff, March 21, 2013