TCI was exploring options from shipbuilding operations in China, Japan,
and Korea, expecting to finalize a deal in the second half of the fiscal year;
Japan has already cancelled an order from TCI at the last minute. In fact, TCI
wants to go in for a large second-hand cargo vessel since the delivery of a new
ship takes about three years.
Last October, TCI had signed a contract with Nakanishi Shipbuilding Co.
Ltd., Japan, for two cellular container vessels of about 7,300 deadweight
tonnes (DWT) each, totaling around $35 million. The cancellation of this
contract has led TCI to reevaluate its ocean fleet acquisition plan.
“We are looking overseas for ship acquisition as there is still a gap in
what is available from domestic capacities. Shipyards in China, Japan, Korea
and others are being explored,” Agarwal said.
Currently, TCI’s fleet
comprises six ships with a total DWT of 77,957 tonnes. Three of these ships
will need replacement in the next three to four years, prompting the
acquisition plan. Besides the ship acquisition, TCI is looking to expand
its overseas operations in the Middle East, where it has set up an office in
Dubai. The company also plans to add Sri Lanka to its operational map later
this year or early next year, aiming to
become a major logistics player in the South Asian region. TCI already operates
in Nepal and Bangladesh.
“Our plan is based on following the customer strategy. So, we have set
up our base in countries where our existing customers are demanding certain
services. The expansion in the Middle East will continue in the next year or
two with more business opportunities that are arising from there,” Agarwal
said.
In FY25, TCI plans to invest ₹375 crore, with ₹75 crore
allocated for ship acquisition to support its seaways operations, which
currently contribute around 15% to revenue.