GE Shipping Consortium Bags IndianOil Lighterage Contract

Mumbai, Sept 25: | Updated: Sep 26 2003, 05:30am hrs
Great Eastern Shipping Company (GE Shipping) along with Mercator Lines and Shipping Corporation of India (SCI), has bagged the lighterage contract from Indian Oil Corporation (IOC) to move crude on the East coast.

GE Shipping has offered only one tanker, which being the L-1 bidder, will be deployed at $18,450 per day followed by Mercator Lines, which has offered two tankers at $17,770 and $16,310 per day respectively. SCI has offered five tankers, but only two were accepted at $13,320 and $13,260, IOC sources said.

This will add around Rs 31 crore to the revenue of GE Shipping, while Mercator Lines will garner around Rs 57 crore on an yearly basis. This is the second big contract for Mercator Lines, after it bagged a contract from Mangalore Refineries (MRL) early this year for transporting crude from the Middle East to the Mangalore port valued at Rs 100 crore. SCI officials said that the prices realised is, more or less, at the same levels as last year. However, SCI was able to deploy four out of the five tankers in the previous year. The remaining one tanker was subsequently deployed by GE Shipping. The contract price was arrived on four considerations, which included the port cost, the bunker cost, the cargo capacity and the charter hire, which every bidder had to quote, sources said.

IOC had issued a tender for hiring four small (85,000 to 95,000 dwt) and one big (95,000 to 110,000 dwt) Aframax crude carriers for lighterage operations for crude imported on the east coast.