Week ending February 05, 2002



Great Eastern Shipping posts 77 per cent growth in net profits in Q3 Great Eastern Shipping Company has posted impressive third quarter results with a 77 per cent growth in net profits at Rs.73.52 crore against Rs. 41.54 crore in the same corresponding quarter last year. The income at the end of the third quarter stood at Rs. 293.7 crore against Rs. 280.4 crore in the same quarter of the last financial year, showing a growth of 4.7 per cent. For the nine-month period, the company recorded total income of Rs.937.9 crore registering a higher growth rate of 17 per cent, as compared to Rs. 800.1 crore in the same corresponding period of last year. The net profit at Rs.192.2 in the same nine-month period was higher by 56.6 per cent, against Rs. 122.8 crore in the corresponding period of the previous financial year. Operating profit of the company’s shipping division stood at Rs.57.6 crore, going up by 11.7 per cent. The shipping division has contributed around 71 per cent of the revenues and 60.3 per cent of the profit. The impressive performance of the company, against the backdrop of worldwide downslide in the shipping markets, follows GE Shipping’s timely action in entering into several long-term charter agreements reducing its exposure to volatile spot markets.

Shipping Corporation of India Q3 net profits drops by 71 per cent Shipping Corporation of India (SCI), has reported a drastic 70.6 per cent fall in net profit during the third quarter ended December 2001 to Rs. 38 crore as compared to Rs.129.2 crore in the corresponding quarter of last financial year. The total income at the end of the third quarter declined by 16 per cent to Rs.726.8 crore from Rs. 869 crore in the same quarter of the previous fiscal. Of this, the bulk cargo segment accounted for revenues to the tune of Rs.489.4 crore while liner segment contributed Rs.204.1 crore with the balance Rs. 69.4 crore coming from other operations.

SAIL signs 30-year pact with ISPL for Haldia berth Steel Authority of India (SAIL) has reportedly signed a 30-year pact with International Seaports (India) Ltd. (ISPL) to use exclusively berth no 4A at the Haldia Dock Complex of the Calcutta Port Trust. ISPL is developing the berth on a build-own-operate (BOT) basis and the berth will be ready by 2003. SAIL exports around two lakh tones of steel annually through Haldia port and imports nearly three million tones of coking coal, which is about 45 per cent of its coking coal requirements. The choice of Haldia as the port of discharge for imports from Australia and New Zealand was based on railway freight from the port to steel plants in Rourkela, Bokaro and Durgapur.

JNPT calls for tender to appoint advisors for bulk terminal Jawaharlal Nehru Port (JNP), among the fastest growing ports in India, with an aggregate cargo handling capacity of about 30 million tonne per annum (mtpa), has called for bids from experienced financial advisors to assist the port in redeveloping its bulk terminal on a build-own- operate (BOT) basis. The terms for appointment as financial advisors include: services towards finalizing the bidding process, taking up financial evaluation of the re-development option, restructuring and managing the bid process, preparation and negotiation of the license agreement and providing all necessary assistance till the final selection of the terminal operator. JNPT has already invited for submission of expression of interest (EOI) for taking up the redevelopment proposal for its bulk terminal and is currently reviewing the responses.

GAIL to join consortium for Kakinada LNG project Gas Authority of India Ltd. (GAIL) is set to join the consortium of Indian Oil Corporation (IOC), British Petroleum, Petronas of Malaysia and Singapore-based Cocanada Port Ltd. for executing the five million tonne per annum (MTPA) LNG project at Kakinada. While exact details of the terms of participation are yet to be disclosed, it is likely that GAIL might pick up 20-25 per cent of the equity in the $600 million LNG project. The Kakinada LNG project is planned to be built in two phases and the 5mtpa terminal, which will be later expanded to 7 mtpa, will have facilities like liquefaction plants, terminals, tankages, and pipelines.

Work on Dahej LNG terminal to commence The work on Rs.2500 crore Dahej LNG import and storage terminal is expected pick up pace with the laying of the foundation by Union Petroleum Minister Mr. Ram Naik. The terminal built by Petronet LNG will have capacity of five million tonne and scheduled for completion by December 2003. IOC, ONGC, GAIL and BPCL, along with Rasgas of Qatar, have jointly promoted Petronet LNG for supply of LNG. So far, all the pre-project activities are completed and the EPC contract awarded to a Japanese consortium led by Ishikawajima Heavy Industries (IHI) on a turnkey basis.

TNT India to enter into logistics services TNT India is set to enter into logistics business and plans to announce its investment plans in the next three to six months. The company will focus on supply chain management (SCM) business of domestic firms. The company is currently mainly involved in the express and mail business segments. According to Mr. Kenneth McCall, chief executive officer, TNT Asia, India has a huge potential in the logistics segment, with an expected growth rate of about 40 per cent.

Panalpina ties up with Safexpress & Miebach Panalpina World Transport India Pvt. Ltd, provider of forwarding and logistics services has entered into an alliance with Safexpress and the Bangalore-based Miebach Logistics to form a cargo network logistics and supply chain consortium. The strategic alliance, which allows the three companies to function independently, would however, link the global network of Panalpina, spread across five continents with countrywide network of Safexpress. The alliance will offer third and fourth party logistics and supply chain management services, backed by Miebach Logistics.



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