Lok Sabha Question No. 6383 (UNSTARRED), answered on 2018-04-05
Subject: Shipping Corporation of India
Ministry: SHIPPING
Asked by: ASHOK SHANKARRAO CHAVAN, KUNWAR HARIBANSH SINGH, GAJANAN CHANDRAKANT KIRTIKAR, VIJAY KUMAR S.R., ANWHAR RAAJHAA, T. RADHAKRISHNAN, BIDYUT BARAN MAHATO, NARANBHAI KACHHADIA, SUDHEER GUPTA

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA

## UNSTARRED  QUESTION No. 6383 TO BE ANSWERED ON sth APRIL,2018 SHIPPING  CORPORATION  OF INDIA

6383. SHRI ASHOK SHANKARRAO  CHAVAN: KLINWAR HARIBANSH SINGH: SHRI GAJANAN  KIRTIKAR: SHRI S.R. VIJAYAKUMAR: SHRI A. ANWHARRAAJHAA: SHRI T. RADHAKRISHNAN: SHRI BIDYUT BARAN MAHATO: SHRI NARANBHAI  KACHHADIYA: SHRI SUDHEER GUPTA:

Will the Minister of SHIPPING be pleased  to state:

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- (a) whether  the Shipping Corporation  of India (SCI)  has huge area of vacant land lying unutilized  and if so, the details thereol StateruT-wise;
- (b) whether the SCI has taken steps for utilization  of the vacant  land for 'Housing for All' scheme and other purposes  and if so, the details thereof;
- (c) whether the fleet of vessels  under  the SCI has become old and if so, the total number  of vessels  which  are operational,  category and age-wise;
- (d) the measures  taken/being  taken by the SCI for improvement  ofthe operational  efficiency and cost reduction;
- (e) whether the SCI proposes to focus on coastal trade, expansion  of break bulk and project cargo  business  afld optimization  of equipment  inventory and if so, the details thereof;  and
- (0 the steps taken/being  taken by the SCI to comp€te  with private shipping companies which are eaming in huge profit?

## ANSWER

## MINISTER OF STATE IN TTTE MINISTRY OF SHIPPING (SHRI PON, RADHAKRISHNAN)

(a) & (b): No, Madam.

(c):  Majority of SCI's fleet is modern and young  with an average age of 10.49 years (as on 27 .03.2018)  and all the vessels are operational.  Informatively, Indian fleet average age stands at 18.9 years.  Category-wise  fleet position of S Cl as ot 27 .03.201  8 is as under:

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| Particulars                 | No of vessels   | G.T.         | DWT          | Avg. age (years)   |
|-----------------------------|-----------------|--------------|--------------|--------------------|
| Tanker - Crude Oil Carriers | 16              | 1,128,570.00 | 2,083,215.00 | 13.60              |
| Tanker - Product Carriers   | 13              | 505,81 1.00  | 862,924.74   | 9.s0               |
| Tankers - VLCC              | 5               | 812,551.00   | 1,590,809.00 | 9.39               |
| Gas carriers                | J               | 82,062.00    | 88,705.00    | 23.56              |
| Bulk Carriers               | 16              | 603,808.00   | 1,068,088.00 | 6.55               |
| Container vessels           | J               | 109,321.00   | 144,500.00   | 14.37              |
| Off'shore Supply vessels    | l0              | 24,535.00    | 25,238.38    | s.26               |
| Passenger-cum-Cargo         | I               | 9,700.00     | 5,140.00     | 43.33              |
| Total                       | 67              | 3,276,358    | 5,868,620.12 |                    |

- (d): SCI has taken a number of steps to improve operational efficiency and cost reduction, some of which include trim optimization,  periodic hull cleaning, use of fuel additives, predictive maintenance, condition based maintenance  etc. SCI has also conducted energy audits of vessels and has implemented recommendations  to save/conserve energy. SCI has also implemented SRM (Supplier Relationship Management)  module for spares procurement and planned repairs, which ensures global participation, maximum  competition,  quality and overall cost benefits  to SCI.
- (e): SCI has always been a key player in transportation of goods on the Indian coast and is the biggest player in transportation  of refined petroleum products  and crude oil on the Indian coast. SCI's dry bulk ships are actively  involved in transporting  coal and iron ore on the lndian coast.  SCI has since inception nurtured coastal trade and played a pivotal role in diverting cargoes to coastal trade. In the Liner sector,  SCI has been making  renewed efforts for establishing its dominance in the coastal and near coastal trade. Accordingly,  SCI has increased  its presence in the container trade with a weekly service between  the East Coast and the West Coast of India, calling the Persian Gulf on the West.
- (0: Considering the prevailing market scenario and in order to capitalize  on the immediate opportunities  available  in the market,  SCI has already acquired  two second hand off shore vessels  (MPSV) viz;'SCI Sabarmati'and'SCI Saraswati'on 18.11.2016 and07.07.2017 respectively and one second hand Suezmax tanker'Desh Abhimaan'  on26.04.2017. SCI has also taken steps to strengthen  its presence in the gas carrier sector by acquiring  one second hand VLGC (Very Large Gas Carrier) 'Nanda Devi' on 14.09.2017. These newly inducted vessels in SCI fleet are expected to have an impact on SCI's top line.

On the operations front, SCI has rationalized  manning on board SCI vessels, which helps in reducing  manning  costs. SCI has secured long term cargoes in the form of various COAs (Contracts  of Affreightment)  with Indian  Oil PSUs to ensure seamless and gainful employment for its vessels.

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