### **1. Overview** The Shipping Corporation of India Ltd. (SCI) is India’s largest and most diversified shipping company, with over six decades of operational history and a strategic role in the country’s maritime economy. As of 2025, SCI operates a modern and varied fleet across multiple sectors, including crude and product tankers, LNG carriers, dry bulk carriers, offshore support vessels (OSVs), container ships, and passenger vessels. The company plays a critical role in supporting India’s EXIM trade, coastal shipping, and energy security. SCI is the **only Indian shipping company** offering both **coastal and international container liner services** and the **sole operator of LNG carriers** in India through joint ventures. It maintains deep-rooted relationships with major Indian public sector undertakings such as IOCL, HPCL, BPCL, and ONGC, and is actively aligning with national initiatives like **'Make in India'**, **'Sagarmala'**, and the development of **inland waterways**. --- ### **2. Key Strategic Segments & Operations** #### **A. Offshore Support Vessels (OSVs)** - **Fleet Composition**: SCI operates a diversified offshore fleet comprising: - 2 units of 80T AHTSVs - 4 units of 120T AHTSVs (2 upgraded from DP1 to DP2, 2 in process) - 2 PSVs - 2 MPSVs - **Client Base**: Majority of vessels deployed under long-term charters with **ONGC**, particularly in Mumbai High, Bassein, and the Krishna Godavari Basin. - **Market Dynamics**: While the Indian OSV market is driven by ONGC's E&P and IMR (Inspection, Maintenance, Repair) needs, **SCI's fleet size is limited**, allowing private competitors with lower-cost assets to capture additional demand. - **Strategic Move**: SCI is proactively reducing client concentration risk by pursuing contracts with other **public and private E&P operators**. - **Fleet Modernization**: Upgrades to **DP2 standards and UKOOA ‘B’ compliance** ensure adherence to evolving E&P operator requirements. #### **B. LNG Shipping (via Joint Ventures)** - SCI is the **pioneer and sole Indian operator** in the LNG shipping sector through four joint ventures: - **India LNG Transport Co. No. 1, 2, 3, and 4 Ltd.** – In partnership with Japanese firms (MOL, NYK, K Line), Qatari entities, and Petronet LNG. - **Fleet & Charters**: - **Three LNG carriers** under long-term charter to **Petronet LNG**, transporting LNG from **Qatar**. - **One LNG carrier** under long-term charter to **ExxonMobil LNG Services B.V.**, Netherlands, for transport from **Gorgon, Australia** (1.44 MMT/year). - **Strategic Expansion**: - Exploring **small-scale LNG carriers** and **coastal LNG shipping**. - Actively involved in **FSRU operations** – SCI officers have taken delivery of **Vasant 1 FSRU** for Swan Energy’s Jaffrabad Terminal. - Training collaboration with Japanese partners on **FSRU construction and operations**. - **Internal Capability**: SCI has developed an **in-house pool of trained LNG officers** and provides **independent technical and commercial ship management services**. #### **C. Dry Bulk Fleet** - **Fleet Profile**: - 8 modern **Supramax vessels** (~57,000 dwt) - 7 **Panamax/Kamsarmax vessels** (80,000–82,000 dwt) - **Average Age**: 13.1 years (relatively young and modern). - **Chartering Strategy**: Mix of **spot voyages, time charters (index-linked), and COAs**, deployed across international, coastal, and cross-trade routes. - **Risk Mitigation**: Coastal deployment helps hedge against geopolitical and market volatility. Coastal earnings are competitive with international rates. - **Market Outlook**: Supply constraints in the Capesize segment are expected to **support freight rates in 2025** despite moderate demand growth. #### **D. Liner Division & Coastal Shipping** - **Container Operations**: - SCI operates under its **SMILE (SCI Middle East India Liner Express)** and **CCG (Chennai Colombo Gulf)** services, forming a **pan-Indian coastal shipping network** connecting West, East, and Southern ports (e.g., Vizag, Kattupalli, Krishnapatnam). - Fixed-day, fixed-window schedules ensure **high reliability and improved transit times**. - **Fleet & Capacity**: SCI operates **only two liner vessels**, representing a negligible share of global capacity. However, it remains **chartered strategically** (e.g., 7,500 TEU vessel). - **Competitive Edge**: - Long-standing expertise in **liner trade**. - **Global agent network** enables localized logistics support. - Partnerships with **major international container carriers** through consortia to enhance route coverage. - **Strategic Goals**: - Expand in **coastal shipping** and **inland waterways transport (IWT)** through subsidiary **ICSL**. - Pursue **multi-modal logistics integration** with CONCOR, CWC, and Balmer Lawrie. - Explore **feasibility of new routes** to Maldives, Myanmar, Bangladesh, East Africa, and Iranian ports (Chabahar, Bandar Abbas). #### **E. Tanker Operations** - SCI operates across **VLCCs, Suezmax, and MR tankers**, with vessels employed under **time charters and voyage charters**. - **VLGC Nanda Devi** was fully chartered to an Indian PSU energy firm in FY 2023. - **Tanker Market Conditions**: Affected by global factors such as **Red Sea disruptions**, **Panama Canal droughts**, and **US-Asia arbitrage**, which boosted VLGC rates. - **COA Relationships**: Long-standing contracts with **Indian oil refineries** ensure stable cargo and fleet utilization. --- ### **3. Strategic Subsidiaries & Joint Ventures** - **Inland & Coastal Shipping Ltd. (ICSL)**: - Focused on developing commercial operations on **National Waterways 1 and 2**. - Operates vessels **mv Rabindranath Tagore** and **mv Lal Bahadur Shastri**. - Aims to integrate **high-sea, coastal, and inland water transport** under a unified business model. - **SCI Land and Assets Ltd.**: Manages land holdings and real estate assets. - **Joint Ventures**: - Four **LNG carrier JVs** with Japanese and Qatari partners. - Technical and commercial manager for all LNG vessels. --- ### **4. Government Alignment & National Role** - **Sagarmala Initiative**: SCI’s coastal and inland waterway projects directly support the government’s goal of **modal shift and sustainable logistics**. - **Make in India**: Expansion in fleet ownership and service networks aligns with domestic industrial growth. - **National Missions**: Supported **ISRO’s Mars Orbiter Mission** and **DRDO defense projects**. - **India-Maldives Relations**: Operational services to **Male, Kulhuduffushi, HoliMale, Thilafushi**, and bilateral transport links. - **Andaman & Nicobar Operations**: - Dedicated service between Kolkata/Chennai and **Port Blair** (currently suspended, awaiting revival). - Deploys 3 vessels for mainland-island cargo and 6 for inter-island operations. - Participated in **50 MW LNG power project** proposal in South Andaman (delayed due to pandemic). --- ### **5. Leadership & Governance** - **Capt. Som Raj** – **Director (Personnel & Administration)**, effective July 15, 2025. Over 35 years of maritime experience; previously Master, Marine Superintendent, Principal of SCI’s Maritime Training Institute. - **Shri Atul Ubale** – **Director (Bulk Carrier & Tanker Division and Finance)** and **Additional Director (Finance)**. Over 30 years of experience in chartering, commercial operations, and vessel acquisitions. Led development of **COAs, pool arrangements**, and LNG JVs. - **Capt. B.K. Tyagi** – Senior executive with 30+ years in ship operations, technical management, and personnel, having transitioned from seagoing roles to shore-based leadership. --- ### **6. Strengths** - **Diversified fleet** across all major shipping segments, mitigating market volatility. - **Young fleet average age** (~13.1 years for dry bulk; entire fleet at ~15.2 years), enhancing operational efficiency. - **Long-term COAs** with Indian oil majors ensuring **cargo security**. - Only Indian company operating **LNG carriers and coastal container services**. - **National strategic importance** and government alignment. - **Trained technical workforce** and independent ship management capabilities. - Strong **agent network and 3PL** services (Freight Forwarding, MTO license). --- ### **7. Challenges & Risks** - **Limited fleet size** in offshore and liner segments constrains full market capture. - **High dependence on ONGC** in offshore segment; efforts underway to diversify. - **Volatile global freight markets**, oversupply of container ships, and geopolitical tensions. - **Delayed project timelines** (e.g., Andaman LNG) due to external disruptions. - Competition from private players acquiring distressed OSV assets at low cost. - Dry bulk segment sensitive to commodity cycles and absence of long-term COAs.