The Hindu Business Line : SCI plans new container service to US

Shipping Corporation of India (SCI) plans to start a new container service to the East Coast of the US and adding another loop to its Far Eastern services being in its immediate radar.

SCI, which operates weekly mainline container services to Far East/China and UK/Continent in consortium with leading global players, is prompted to add new services in the light of the country's economic growth story.

In the feeder market, the company made a small beginning in January by chartering a 250 TEU geared vessel for one year and deploying it on the Colombo-Chittagong route.

"This is essentially a pilot project and, if successful, we hope to enter the feeder routes on the Indian sub-continent in a big way, possibly in consortium with like-minded players," a senior SCI official told Business Line.

Further, with trade between India, Indonesia and Thailand expected to increase, SCI has started accepting shipments from Indonesia and Thailand on transhipment basis. "We are considering extending the services to the Philippines and other ports very soon on transhipment basis," according to the official.

SCI, which entered fully cellular container services in early 1994 with the sailing of its first cellular vessel, m.v. Lal Bahadur Shastri on the India-UK sector, offers the Indian-Europe service, Index-I and Index-II.

Sub-continent service

The Indian sub-continent Europe (ISE) service, which was launched in January 2002, is through a consortium with ZIM, K-Line, MISC and EMC as partners.

Seven vessels of about 2,650 TEU effective capacities are deployed in this service, with a round voyage of 49 days. The ports of call under this service include Colombo, JNPT, Barcelona, Rotterdam and Hamburg.

"Each of the partner in this service has one vessel, with the seventh vessel being jointly operated by SCI and ZIM in the ratio of 70:30," the official said.

SCI has pinned significant hopes on growth in this service in 2006, especially in the light of the seven per cent growth in textile exports and high charter hire rates on long term.

"It is proposed to open up sectors like Ukraine and Black Sea ports under the ISE service to help expand the scope of business. The growth sectors in imports along this route will mostly be project cargoes, machinery and fine print," according to the SCI official.

In the Index I service, which covers the Far Eastern sector, SCI is partnering with K-Line, PIL and DNA, among other lines, for deployment of five vessels of 1,350 TEU capacity each that were upgraded to 1,800 TEU capacity. The ports of call in this service include NSICT, Colombo, Port Kelang, Singapore, Shanghai and Hong Kong.

"The factors influencing this service is the fastest transit time of 18 days from Busan to NSICT and 16 days from Shanghai to NSICT that it offers," the official said.

SCI feels there is a need to upgrade the Index I service with larger vessels to retain market share and improve marketing scope by exploring new areas.

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