Indian mining player set to bulk up fleet-Shanghai International Maritime Information and Literature website

Indian mining player set to bulk up fleet
Home - News Room
PostTime:2010-07-30 08:01:24.0 View:17
An Indian mining company is looking to expand its dry-bulk fleet in order to have greater control over shipping costs. Goa-based VM Salgaocar & Bro plans to acquire two or three modern handymaxes of between 40,000 dwt and 45,000 dwt. Senior company officials confirm the proposed plan but say a final decision is likely to be made at the end of the year. They add that the company is currently installing two cranes at its Mormugao Port facility on the west coast for cargo handling, which is expected to be completed in the next few months. They suggest that only after the cranes are installed will Salgaocar decide on whether to acquire geared or gearless handymaxes. Currently, the company uses a mix of spot and voyage charters of ships up to capesize to export about five million tonnes (MT) of ore to China. Officials expect ore exports will rise to six MT in the next year and that the acquisition of bulkers will enable the company to reduce chartering costs and give it greater control over its shipments. At present, Salgaocar is listed with two bulkers, the 60,000-dwt Sunrise (built 1974) and 28,300-dwt Swatirani (built 1962). Salgaocar was set up in 1952 and is currently one of the major ore producers and processed-ore exporters to Japanese steel mill Nippon Steel Corp (NSC) and South Korean steel mill Pohang Iron & Steel Co (Posco). But in the past six to seven years it has been exporting nearly 60% of its ore to Chinese companies.
Source:Tradewinds Author:By Pinaki Routray New Delhi