BSN Network / Mumbai
Thursday, February 25, 2010

‘When the going gets tough, the tough get going’ asserted Mr. S. Hajara, CMD, Shipping Corporation of India while addressing SCI’s World Wide Agents at a Meet organized in Mumbai. While admitting that the recent period and 2010 – 11 will be tough one for ship owners, he urged all present to make concerted efforts, adding, notwithstanding the difficult world shipping market, SCI will not only float but sail.

The meet started with keynote address by CMD, SCI, Shri S Hajara who welcomed the worldwide agents and gave a brief about the Global shipping market.

He indicated that the global demand is gradually improving in all segments of shipping with dry bulk expecting a growth of 9%. On the supply front, the growth is expected to be around 10%. Though, the tanker market had experienced contraction in the past two years, it is expected to see some growth in the coming times. He stated that in the year 2008 and 2009 many liner shipping giants have experienced contraction in demand leading to 13%-14% of the total capacity being laid up. From beginning of the current year, the container market is expected to recover gradually.

Shri Hajara informed the participants of the delivery of India's largest VLCC during last year as well as a MR tanker to SCI. He also added that one MR tanker was acquired through resale route at very competitive price. With respect to the SCI's financial performance, Shri Hajara informed that as compared to major shipping lines who had been affected severely due to the recession, SCI's performance had been better. Shri Hajara indicated that India had good business potential and every global player was looking to participate in the growth of Indian market.

Shri Hajara was pleased to appraise the gathering of the Awards and Accolades received by the SCI. To name a few - 'Safest & Most Environment Conscious Indian Shipping Company Award' on National Maritime Day, ' Tanker Operator of the Year' by Indian Maritime Gateway Awards 2009 and 'Excellent Rating' for the 17th consecutive year by DPE.

He congratulated Director-Liner & his team and Director-Personnel and his team for arranging such a significant meet. Director (Finance), Shri B K Mandal welcomed the gathering and talked about the financial crisis that hit hard on SCI's financial performance last year due to which there had been drastic fall in the Income, Sales, PAT etc. It had been a tough time and various austerity and economy measures had been undertaken to combat the recessionary effect.

Director (T&OS), Shri Umesh Grover also welcomed the guests and briefed them about the SCI's acquisition plan and progress of the SET-IT project. He also indicated that currently the markets were good for acquisition of vessels and SCI was looking forward to such opportunities. Shri Grover informed that 12 vessels were scheduled to be delivered in the current year.

Director (P&A), Shri Kailash Gupta addressed the gathering and talked about the tough time the shipping industry was passing through. He indicated that not only inhouse efficiencies were to be improved but also agents were expected to increase their efforts for better performance of the SCI.

Director (L&PS), Shri J N Das welcomed the gathering and mentioned that in view of the financial crisis many of the new business ventures did not materialize. SCI took tough decision by stopping its non profitable services like India Red Sea service and Feeder service and laying up of one of SCI vessel in SMILE service in order to reduce looses. He indicated that liner division was mostly agent driven and the fate of the principal and the agents were totally interlinked. He informed the agents that SCI's management had reviewed SCI's Liner performance for the past 10 years and found ways to do things differently. Our volumes of business had not reduced but revenues had been very dismal. He stated that loss was unacceptable to SCI in any of its business segments. Recession had given us an opportunity to learn and devise future strategies which would be discussed during the two day session. The downturn had also reduced the asset values and had given opportunity to acquire new assets at much reduced costs to start viable new services and upgradation of existing services. SCI was considering all the options and would take appropriate decision in due course.

Director (B&T), Capt K S Nair greeted all the participants and stated that this year SCI had weathered the storm of the global financial crisis. He stated that SCI had grown from being a Miniratna to Navratna company and should focus to become a Maharatna company with its continuous efforts.

SCI's Chief Vigilance Officer, Shri. M B Sagar initiated his talks by conveying his appreciation for recognition given to Vigilance Department in the worldwide agents meet 2010. He stressed upon transparent relationship between the agents and the SCI and requested agents to be diligent in their dealings with the trade. He introduced to the agents about the Integrity Pact implementation in SCI and benefits of SET-IT project implementation.

The meet will focus on improving SCI's market share, developing existing business portfolios, and evaluation of agency performance.