Latest news with #ShippingCorporationofIndia
New Indian Express
4 days ago
- General
- New Indian Express
How a Keralite chief engineer clung to life after shipwreck off Japanese coast
KOCHI: As the state is slowly coming to terms with the capsizing of a Liberian-flagged container vessel MSC ELSA 3, retired Merchant Navy chief engineer Joseph Malcolm Oliver recalls how he had a miraculous escape after his container ship split into two off the Japanese coast after being caught in a typhoon and he was left floating in the rough sea for hours before being washed ashore in an island. 'Container ships are the most vulnerable in rough weather. It (the incident) happened in July 2002. I was then the chief engineer of the vessel M/V Co-op Venture, a Panamanian-registered cargo vessel. We were unloading cargo at the port. Then the authorities suddenly gave a tropical storm warning and asked us to take the vessel a little away from the port. We soon anchored near to the bay and there was no time and fuel to move to other safer locations,' recalled 68-year-old Joseph, who had worked in large container ships, including those in the 20,000 TEU. The typhoon 'Fengsten', that ran aground off Shibushi Bay, located off the south west main island of Kyushu, 985 kms south west of Tokyo, soon began to lash the area. There were strong winds from 4 pm onwards. Then the unthinkable happened. The ship was caught in huge waves and split into two by 8 pm. 'As per the captain's direction, we ran to the LifeBoat station and got into it. As the boat was being downed using two cable wires, it began to swing harshly in the high-speed winds, blowing at 165 kmp. It hit the ship hull with a thud several times. I felt like my bones were cracking and was in extreme pain. But then the face of my younger son, who was only one-year-old then, popped up in my mind and I decided to fight till my last breath,' Joseph, who earlier had a stint with the Shipping Corporation of India (SCI) for 13 long years, added. There were 21 crew in the ship, of which 16 were Filipinos. 'I was the only Malayali. I saw the Filipinos jumping into the sea and I followed suit. We'd all worn life jackets. There was virtually no scope of saving lives as the lifeboat was swinging wildly and repeatedly hitting against the broken ship hull with terrific force.'
India Today
26-05-2025
- Business
- India Today
How India's plan to build 112 crude oil tankers is a bold move for energy security, self-reliance
When the Indian government unveiled its Rs 85,000 crore ($10 billion) plan to build 112 crude oil tankers domestically, it marked a bold foray into industrial renewal, strategic autonomy and maritime ambition. Announced as part of the broader Make in India push, the plan aims to sharply reduce the country's dependence on foreign-owned vessels to transport its most vital import: crude numbers are striking. India imports more than 85 per cent of its crude oil, yet over 95 per cent of it is ferried by foreign-owned ships. The state-run Shipping Corporation of India (SCI) and a few private operators maintain a limited fleet of tankers—most of them old, foreign-built and increasingly uneconomical to run. As India's refining capacity is projected to expand from 250 million tonnes to 450 million tonnes by 2030, the gap between energy demand and logistical sovereignty has become response, the government is embarking on a generational project. The first 10 tankers are expected to be ordered shortly. By 2047, the centenary of Indian independence, the goal is for 69 per cent of the country's crude oil fleet to be both Indian-built and Indian-owned. That target, reported in internal planning documents and quoted in the media, reflects a sharp alignment with the government's Viksit Bharat vision. But beyond the strategic clarity lies a hard question: can India build a globally competitive shipping industry from the ground up—on time and on budget?THE CHINESE SHADOWS To understand the scale of the challenge, one must look east. The global shipbuilding industry is almost entirely monopolised by three countries—China, South Korea and Japan—which together account for over 90 per cent of all commercial ship deliveries. These nations don't just build ships; they command the entire ecosystem: design, materials, propulsion systems, financing and post-delivery servicing. China alone built more than 1,000 ships in 2023 and is doubling down on dual-fuel, low-emission designs that will soon be global regulatory comparison, Indian yards, as such as Cochin Shipyard, L&T's Kattupalli facility and Mazagon Dock, have limited experience with large crude tankers. Most lack the dry-dock depth, assembly automation and robotic welding infrastructure needed to build Very Large Crude Carriers (VLCCs) at scale. Building one or two prototypes is possible; building over 100 over two decades is a different Indian shipbuilders are still heavily reliant on imported components: marine-grade steel, turbocharged diesel engines, navigation electronics, and even anchor chains. Much of this is sourced from Chinese suppliers or from Western firms embedded in Chinese supply chains. Unless India establishes a parallel industrial base for marine components—possibly through targeted Production Linked Incentive (PLI) schemes—the ships built here may be 'assembled' rather than truly 'made' in there's the matter of cost. Indian-built tankers are expected to be 15-25 per cent more expensive than those from China or South Korea. For cash-conscious oil refiners such as Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL) or Reliance, that cost differential is significant. The government is reportedly working on freight subsidies, tax incentives and guaranteed long-term contracts to make Indian-built vessels commercially viable. Without these, shipyards may build tankers that find no STRATEGIC WATERSYet the rationale behind this initiative isn't just economic—it's strategic. India's experience with global freight volatility during the Covid-19 pandemic, the Suez and Red Sea disruptions and tensions in the Strait of Hormuz has underscored a stark truth: logistics is leverage. For a country that depends so heavily on imported oil, not owning the ships that carry it is a structural government's plan attempts to plug this gap while also reviving the long-dormant commercial shipbuilding sector. If executed well, the project could create 150,000 to 200,000 skilled jobs and catalyse downstream industries worth Rs 2-3 lakh crore. The larger objective is to build a marine industrial ecosystem that spans shipyards, ports, steel plants, electronic component makers and logistics is, in theory, room to leverage emerging international partnerships. Japan and South Korea, though competitors in shipbuilding, have expressed interest in collaborating on marine technology and skill development under Indo-Pacific cooperation frameworks. The UAE and Saudi Arabia, India's largest crude suppliers, may be willing to co-finance Indian-built tankers or underwrite long-term leases, ensuring steady demand. The India-Middle East-Europe Economic Corridor (IMEEC) and QUAD maritime initiatives offer further possibilities for technology transfers and export credit the window may be narrow. China is already transitioning to green shipping technologies—methanol-fueled engines, autonomous navigation systems and carbon-neutral supply chains. Korea is investing in mega yards that produce LNG (liquefied natural gas) and hydrogen-powered ships. India must not only catch up—it must leap key risk is execution drift. For this initiative to succeed, India must move beyond procurement headlines and lay the foundation for a modern, resilient and innovation-driven shipbuilding sector. That means building deeper dry docks, introducing robotic production lines, integrating design software from global leaders, and creating world-class training academies for naval architects and marine important is financing. Building a ship is only half the battle—operating and maintaining it profitably requires a mature shipping finance ecosystem. India lacks a dedicated maritime financing institution, unlike Korea's Exim-backed ship lease model or Japan's structured maritime investment banks. Without accessible, low-interest capital and sovereign-backed guarantees, Indian ship-owners may still prefer the low-risk route of foreign FOR SWADESHI FLEETIf India's $10 billion crude tanker programme succeeds, it will mark the return of a strategic capability that was allowed to languish for decades. It would restore confidence in Indian manufacturing, provide maritime muscle to the country's energy security policy, and signal to the world that India is ready to shape—rather than merely sail through—global trade government has launched a shipbuilding renaissance anchored in strategic partnerships and industrial ecosystem building. South Korean shipbuilding giants such as HD Hyundai are investing in Indian infrastructure, including a Rs 10,000 crore mega shipyard in Tamil Nadu, poised to build large crude tankers with cutting-edge technology. Hanwha Ocean is also exploring collaborations, while Japan offers expertise in precision engineering and green technologies through attractive policy alliances bring technology transfer, specialised skill development and capital investments that can help Indian shipyards leapfrog initial hurdles. Additionally, states such as Tamil Nadu, Gujarat, and Maharashtra are emerging as maritime industrial hubs, leveraging coastal infrastructure and pro-industry success depends on converting ambition into engineering capability, policy intent into industrial ecosystems, and geopolitical alignment into technological partnerships. It means creating deep dry docks, robotic welding lines, and world-class naval architecture institutes. It means expanding domestic manufacturing of marine-grade steel, engines, and electronics, reducing costly must also innovate in green shipbuilding, embracing LNG and hydrogen-powered vessels to meet global emission norms. The growing demand for eco-friendly shipping offers an opportunity to future-proof the fleet and capture emerging the same time, developing a robust maritime financing ecosystem is critical. Government-backed maritime investment banks, low-interest credit lines, and long-term charter contracts will be vital to make Indian-built tankers commercially viable and attractive to crude oil tanker initiative is not just about ships—it is about reclaiming control over the physical architecture of its 21st-century economic sovereignty. It is about ensuring that the oil powering India's growth moves not just across oceans, but under the executed with discipline, innovation and strategic foresight, this flagship initiative will revive a dormant shipbuilding sector, create hundreds of thousands of skilled jobs, reduce external vulnerabilities and add a new dimension to India's energy road ahead is fraught with challenges, but the prize—a modern, self-reliant and resilient maritime fleet—could transform India's place in the global energy and shipping order. The question is not just whether India can build these tankers, but whether it can build the vision, partnerships and ecosystems to sustain this fleet through decades of turbulent now, the government has launched its shipbuilding renaissance with confidence. Whether this fleet will sail or be stranded in the dry docks of missed potential will depend on what comes to India Today Magazine
Business Standard
19-05-2025
- Business
- Business Standard
Shipping Corp Q4 PAT drops 40% YoY to Rs 185 cr
Shipping Corporation of India reported 39.74% decline in consolidated net profit of Rs 185.14 crore in Q4 FY25 as against Rs 307.28 crore posted in Q4 FY24. Revenue from operations declined 6.18% YoY to Rs 1,325.19 crore in the quarter ended 31 March 2025. Profit before tax (PBT) stood at Rs 171.34 crore in Q4 FY25, down 28.32%, compared to Rs 239.05 crore recorded in Q4 FY24. Total expenses decreased 3.45% YoY to Rs 1,242.05 crore in Q4 FY25. The cost of service rendered stood at Rs 713.23 crore (down 10.82% YoY), employee benefit expense was at Rs 163.41 crore (up 12.64% YoY) and finance cost stood at Rs 38.81 crore (down 4.05% YoY) during the period under review. On segmental front, revenue from Liner stood at Rs 238.62 crore (up 32.16% YoY), revenue from bulk carriers stood at Rs 99.89 crore (down 45.85% YoY), revenue from tankers stood at Rs 927.51 crore (down 5.25% YoY) and revenue from technical & offshore stood at Rs 65.05 crore (down 19.21% YoY), during the quarter. On full year basis, the company's consolidated net profit jumped 24.24% to Rs 843.58 crore on 11.08% increase in revenue from operations to Rs 5,605.83 crore in FY25 over FY24. Meanwhile, the companys board has recommended a dividend of Rs 6.59 per equity share, subject to the approval of shareholders at the forthcoming Annual General Meeting (AGM). If approved, the dividend will be paid within 30 days from the date of approval at the AGM. The Shipping Corporation of India (SCIL) is a national carrier, with the Government of India (GoI) holding 63.75% of the equity as on 31 March 2025. SCIL is the largest Indian shipping company in terms of capacity with a diversified fleet profile. The company is diversified in terms of its business segments, namely, crude oil/product tankers, dry bulk, offshore services, and container operations. The company also has a presence in passenger vessels, chemicals and gas transportation. The counter declined 1.14% to Rs 186.70 on the BSE.
Business Standard
17-05-2025
- Business
- Business Standard
Shipping Corporation of India consolidated net profit declines 39.75% in the March 2025 quarter
Sales decline 6.18% to Rs 1325.19 crore Net profit of Shipping Corporation of India declined 39.75% to Rs 185.14 crore in the quarter ended March 2025 as against Rs 307.28 crore during the previous quarter ended March 2024. Sales declined 6.18% to Rs 1325.19 crore in the quarter ended March 2025 as against Rs 1412.54 crore during the previous quarter ended March 2024. For the full year,net profit rose 24.24% to Rs 843.58 crore in the year ended March 2025 as against Rs 678.97 crore during the previous year ended March 2024. Sales rose 11.08% to Rs 5605.83 crore in the year ended March 2025 as against Rs 5046.53 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 1325.191412.54 -6 5605.835046.53 11 OPM % 27.5228.82 - 31.4728.19 - PBDT 414.03479.73 -14 1803.111534.68 17 PBT 171.34239.05 -28 851.79645.30 32 NP 185.14307.28 -40 843.58678.97 24
Hindustan Times
10-05-2025
- Business
- Hindustan Times
India steps up maritime security after review
Union minister Sarbananda Sonowal on Friday reviewed security measures at ports as the country raised alertness to the so-called MARSEC-2 level to keep shipping lines protected and operational amid escalating tensions with Pakistan, an official said. The ports, shipping and waterways minister, who visited Mumbai during the day, met representatives from key state-run maritime organisations, including the Shipping Corporation of India (SCI), Jawaharlal Nehru Port Authority (JNPA), Indian Port Rail and Ropeway Corporation Ltd (IPRCL), Indian Port Global Ltd (IPGL), directorate general of shipping and the Mumbai Port Authority. 'The minister carried out an in-depth review of port security and assessed all ongoing infrastructure projects, and asked officials to ensure business as usual,' the official said, asking not to be named. The directorate-general of shipping has ordered all ports, terminals and shipyards to elevate maritime security measures to the International Ship and Port Facility Security Code (ISPS) level 2, also known as MARSEC-2, the official said. Enhanced protective measures are required not just for all functional ports but also for those under construction against all threats, the official said. Nearly 95% of India's trade and 80% of its crude oil supply is shipped through the oceans. 'This directive is issued in the national maritime security interests and must be treated with utmost urgency and priority,' the advisory issued by directorate-general of shipping said. Those who attended the review meeting included secretary, ports, TK Ramachandran. 'All Indian flagged vessels operating in and near to the India sub-continent and neighbouring countries are required to elevate the security Level to 2 and implement the applicable security measures as per Ship Security Plan (SSP),' a notification by the shipping regulator stated.
