Mumbai: National carrier Shipping Corporation of India (SCI) has joined hands with another state-run enterprise, Steel Authority of India Ltd (SAIL) in the setting up of a joint venture that will provide shipping-related services.
"We are making good progress on working out the nitty-gritty in the partnership," said SCI chairman and managing director Sabyasachi Hajara.
The two companies had signed a memorandum of understanding (MoU) in March 2008 to establish a joint venture (JV) that would render shipping-related services to the steelmaker, particularly importing the coking coal required for its plants.
The scope of the MoU also provided that the JV firm could also participate in the international shipping trade.
"We expect to double our current fleet strength of 79 vessels over the next five to seven years at an investment of $3.5 billion," said Mr Hajara. "We would like some of these vessels to have captive employment; and the JV with SAIL would provide just such an opportunity."
Rival steel firm Tata Steel has been closening its shipping ties with Japanese giant NYK, forming a Singaporean jv to move iron ore to its mills. [09/03/10]
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