Tata Steel’s step-down subsidiary - International Shipping and Logistics is likely to buy two ships for about $50 million. Earlier the company was planning to chartering vessels for its clients, but has now decided to own ships. The capacity of each Handysize bulk carrier is around 35,000 dead weight tonne (DWT).
International Shipping is evaluating shipyards in China, Japan and Korea to build the ships and expected to close the deal in six months. It annually charters nearly 150 vessels, mainly of Handysize range, for duration ranging from one month to three months.
The company was formed mainly to handle cargo for Tata Steel. However, the focus gradually shifted towards other customers so much so that last year out of the 5.3 million tonne of cargo handled, nearly 98% was handled for non-Tata Steel customers.
