Week ending January 28, 2002



MoD shortlists players for the SCI advisor role Ministry of Disinvestment (MoD) has short listed about a dozen players, for final selection of global advisors for offloading 51 per cent stake in Shipping Corporation of India (SCI). The list includes; ICICI Securities, IDBI-Sumitomo Bank-Care consortium, Price Waterhousecoopers, DSP Merrill Lynch and Deolitte Touche Tochmatsu, Rabo India Finance-Deutshce Verkehrs Bank, Fieldstone Capital Services-IDFCI, ANZ Investment Bank and ABN Amro Asia. Ernst and Young have tied, up with Moore Stephens, Lazard has joined hands with SBI Caps and KPMG has partnered American Marine Advisors. The short listed firms will be making presentations before the department of disinvestment on February 1, 2002. The bid­ders would also be asked to quote a drop dead, fee payable in case government decided to cancel the contract. The bid­ders would also be required to give a detailed presentation of its global expe­rience in privatisation along with details of similar transactions (government, quasi-government and private sector) executed by them.

Essar Shipping’s Q3 net profit dips by 27 % Essar Shipping Ltd has reported a 27 per cent drop net profit to Rs 14.51 crore, for the third quarter ended December 31, 2001. The company had made a net profit of Rs 20.03 crore in the same quarter in the last fiscal year. Income from opera­tions for Q3 is up 2.43 per cent to Rs 117.37 crore, as against Rs 114.58 crore same quarter last year. Other income for the quarter stood at Rs 1.51 crore as against Rs 2.11 crore in Q3 of the previous fiscal. Interest cost for the quarter has fallen to Rs 12.23 crore as compared to Rs 18.98 crore in the same period last year. The increase in other expenditure in the quarter is mainly because of dry-docking expenses, a company release has explained. Other expenditure for Q3 stood at Rs 56.56 crore, as against Rs 42.91 crore in the same period of the previous fiscal. The company has registered stable net profit for the nine-month period ended December 31, 2001, at Rs 52.36 crore as compared to Rs 50.54 crore for the nine months of the previous fiscal. Total income at Rs 367.75 crore for the nine months is higher by 18 per cent compared to Rs 311.63 crore for the corresponding period of the previous year.

CONCOR seeks agents for consolidating LCL cargo Container Corporation of India (CONCOR) is reportedly planning to appoint logistics providers and transporters as agents for consolidating less than container load (LCL) cargo for the eastern corridor, connecting Chennai and Kolkata and the northern corridor connecting Delhi and Chennai simultaneously. The company has conducted a market survey, which found that there is tremendous business potential on the Chennai and Kolkata sector. Currently, Concor runs two trains per week in the eastern corridor, each carrying about 70 TEUs. In the New Delhi- Chennai sector, Concor runs three trains.

Private sector role in minor port development bright According to a paper submitted at a recent seminar on port development in Cochin, potential for privatization of minor ports in the country are bright, given the significant growth in traffic in recent years. The share of the minor ports traffic has increased from 10 per cent to 25 per cent of the total traffic handled at all the Indian ports in the recent period, the paper has stated. It has projected that traffic would grow to 100 per cent provided improvements were made in infrastructure facilities such as berths, dredging and communications. Among the ports that have registered significant increase in traffic include Mundra, Pipavav, Dahej and Jamnagar.

P&O Ports seeks removal of exclusivity clause in Kandla project P& O Ports in a communication sent to the Union Shipping Ministry, has argued that the changes made by the board of trustees of Kandla port, while clearing the draft concession pact signed on September 29 2001, for developing container terminal were not acceptable. The P&O Ports in its letter has also argued that decision of the board asking private operator to take over all the labour employed at the Berth No 7 (which is proposed to be converted into a private container terminal) was not agreeable. The original terms set by the bid document had assured exclusivity to the private operator in handling containers at the port. However, the board opposed the monopoly over container handling by the private operator, when the draft pact was put up for consideration of the board.

Gartner survey on storage purchases A recent Gartner Dataquest Survey has found that nearly 74.5 of corporates out of the 850 companies surveyed have no plans to invest in storage purchases. The survey points out that while there was an increase in storage shipments over the past few years companies have reported under-utilization and over-adoption of storage capacities.



Back to top