Lok Sabha Question No. 1390 (UNSTARRED), answered on 2016-11-24
Subject: Efficiency of Shipping Corporation of India Ltd.
Ministry: SHIPPING
Asked by: RAM CHARITRA

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO.1390

TO BE ANSWERED ON 24 th NOVEMBER, 2016

EFFICIENCY OF SHIPPING CORPORATION OF INDIA LTD.

## 1390. SHRI RAM CHARITRANISHAD:

Will the Minister of SHIPPINGbe pleased to state:

## पोतप�रवहनमंत्

- (a) whether the Shipping Corporationof India Limited (SCI) proposes to buyfuel efficient ships/vessels by replacing theold stock and if so, the details andobjectives thereof;
- (b) whether it is a fact that the fleet ofvessels under SCI has become old and if so,the total number of vessels operationalunder SCI, category and age-wise;
- (c) the measures taken/being taken bySCI for improvement in operationalefficiency and cost reduction;
- (d) whether SCI proposes to focus oncoastal trade, expansion of break bulk andproject cargo business and optimization ofequipment inventory; and
- (e) if so, the details and the objectivesthereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI PON. RADHAKRISNAN)

(a)&(b): The current shipping fleet of SCI is largely fuel efficient and in compliance with recommended Energy  Efficient  Design  Index  (EEDI)  and  Ship  Energy  Efficiency  Management  Plan  (SEEMP).  The average  age  of  SCI  vessels  is  9.84  years  and  SCI  is  mindful  of  fuel  efficiency  parameters  in  its  ship acquisition plans of two offshore vessels and one each of crude oil tanker and gas carrier. The category and age-wise details of SCI's operational vessels are as follows :

| Sl. No.   | Vessel type                       |   Fleet size | Avg. Age (years)   |
|-----------|-----------------------------------|--------------|--------------------|
| 1         | Bulk Carriers                     |           16 | 5.20               |
| 2         | Crude Oil Tankers                 |           16 | 12.75              |
| 3         | Product Tankers                   |           14 | 9.20               |
| 4         | Gas Carriers                      |            2 | 25.73              |
| 5         | Very Large Crude Carriers (VLCCs) |            5 | 8.04               |
| 6         | Container vessels                 |            5 | 16.96              |
| 7         | Offshore supply vessels           |           10 | 4.48               |
| 8         | Passenger vessel                  |            1 | 41.98              |
|           | Total                             |           69 |                    |

(c)to(e):SCI  is  reducing  its  costs  by  increasing  operational  efficiency  and  reducing  breakdowns.  It  has taken  several  measures  towards  lowering  fuel  consumption  by  using  fuel  additives,  trim  optimization, slow steaming (when feasible), hull cleaning, optimization of equipment inventory, reduction of excess container inventory, vendor renegotiation to obtain lower container per-diem rate reflecting current market situation and reduction of procurement costs for lube oils. SCI is maintaining its focus on coastal trade mainly  in  coastal  crude  transportation  and  transportation  of  coal  to  meet  increased  demand  of  power generation. SCI is also concentrating on increasing its presence on coastal and near coastal trade and has commenced a weekly container service on the East coast and West coast of India connecting to Persian Gulf  besides  operating  India-Myanmar  shipping  service.  SCI  also  participates  in  the  transportation  of breakbulkand    project  cargo  especially  in  the  defence  and  power  sector.  A  wholly  owned  subsidiary 'Inland  &  Coastal  Shipping  Limited'  has  been  incorporated  for  undertaking  transportation  services through inland waterways, coastal shipping and end to end logistics.

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