The Hindu Business Line : Sical building iron ore terminal at Chennai

Chennai, Feb. 5 Sical Logistics operates berths at Tuticorin and Ennore ports and is building an iron ore terminal at Chennai port. It is also in the race for berths in other ports that are opening up for private sector.

But that is not enough, says Mr Sudhir Ragnekar, Managing Director and group CEO, Sical Logistics.

Mr Ragnekar, a former Chairman and Managing Director of Shipping Corporation of India, says that for growth, it is necessary for the company to have a port of its own.

Various locations are being considered and the construction of a port will be done by a joint venture company.

An MoU has been signed with “a major international port” for the joint venture, Mr Ragnekar told Business Line recently.

The port would most probably be linked with an SEZ, he said.

Sical is watching the port privatisation scenario with keen interest.

The company wants to prepare itself for opportunities in building/owning berths at Visakhapatnam, Mangalore and Goa.

At Paradip, Sical is not in the shortlist for building and operating the iron ore terminal.

But the company is still hopeful of getting a stake in the company that would be set up for the project.

Sical’s revenues from port handling have been on the rise.

Performance

For the nine months to December 2007, the company’s revenues from port handling were Rs 249 crore compared with Rs 261 crore for the whole of 2006-07.

Turnover (including ‘other income’) for the third quarter (standalone basis) was Rs 152 crore against Rs 149 crore previously.

Net profit for the period was Rs 10.25 crore against Rs 12.81 crore. But the figures for the third quarter of last year include proceeds from the sale of certain non-core businesses.

Mr Ragnekar said the outlook for the fourth quarter, on a consolidated basis, looks better.

This is because while coal handling volumes at Ennore are picking up, the company’s dredger, now operating in coastal China, is getting into a new contract at better rates.

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