SCI planning to enter offshore business

July 8th, 2011 - 7:44 pm ICT by IANS  

Kolkata, July 8 (IANS) The Shipping Corporation of India is planning to enter offshore business.

“We do not have any plan to talk about (entering the offshore business), but yes we felt that we should be in the entire gamut of offshore,” Shipping Corporation of India Chairman and Managing Director S. Hajara told reporters here Friday.

“We have never been present in the dominant segment, but we feel that it is the sunrise industry,” he said.

Stating that offshore industry was a huge potential sunrise area for India, he said offshore business was gaining more and more importance and the maritime component in the offshore was again gaining further significance.

Hajara said shipping industry in the country was going through a difficult stage.

“Shipping is passing through a difficult stage. Because though there is a demand for growth, unfortunately the supply growth is outpacing the demand growth. That is why there is supply side pressure,” he said.

He said the supply side pressure will continue to the middle of 2012.

“The year 2007 was the historic high for ship ordering and there was about four years lag in ship orders or ship delivery. Then 2009 was a historic low for ship ordering. Supply pressure will come down to middle of 2012. So equilibrium in demand and supply will take place in the middle of 2012 which will go in favour of the shipping industry,” he said.

Informing that crude oil price increase will have an impact on the shipping industry, he said there has been a substantial rise in the input cost for shipping.

“It is impacting margins,” he added.

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