| Chennai, 16 August 2007: Sical Logistics Ltd, India’s leading provider of integrated multi-modal logistics solutions for bulk and containerized cargo and offshore logistics, today, announced its foray into the dredging market, with the acquisition of Sical PortoFino, a cutter suction dredger, at a consideration of USD 24.92 mn. The acquisition is the latest step in Sical’s expansion strategy into the global offshore logistics market. The acquisition was funded by Sical’s foreign currency convertible bonds issue in 2006 and is estimated to earn a revenue of USD 9.8 mn annually.
Sical will deploy its newly acquired dredger in the lucrative Chinese dredging market. The company plans to acquire more cutter suction and trailer suction hopper dredgers, to serve the needs of the booming Indian and Asian dredging market.
Sical acquired the newly built dredger through Norsea Offshore Pte Ltd, a wholly owned subsidiary, from a Chinese dredging organization - Shanghai Duo Jun Dredging Co. Ltd (SDJDCL). The dredger was built at the Nan Tong Ganzha Shipyard, China in 2006 and was engaged in a reclamation project in East China Sea since May ‘06 by SDJDCL.
The dredger is classified as a China Classification Society with a length of 107 m and an average draft of 3.37m. It can dredge upto a depth of 25m and has a production capacity of 3000 cu m per hour. The main pump has enhanced efficiency because of positive pressure from the ladder pump. Its low suction lift enables it to dredge easily even at very great depths. It has a complete spares package sufficient for maintaining high work efficiency. It comes with a 24 m (79-foot) 750 kW (1006-horsepower) anchor handling tender boat.
Comment by Sical Chairman Ashwin Muthiah
Sical Chairman Ashwin Muthiah said that the acquisition of the cutter suction dredger is a stepping stone for Sical to enter the booming USD 14bn dredging market.
“It is an exciting time for us to enter the lucrative international dredging market. The market has seen tremendous growth due to increasing sea trade, growing tourism opportunities and reconstruction of marine and port infrastructure. With few companies possessing the required expertise and infrastructure to undertake international dredging operations, the market is facing a supply constraint. The acquisition of the cutter suction dredger will enable Sical to tap the booming opportunity in the dredging market.” he said.
About Sical
Sical Logistics Ltd is India’s leading integrated multi-modal bulk and containerized logistics solutions provider handling around 22mn tones of bulk cargo as well as over 5,00,000 TEUs of containerized cargo. Headquartered in Chennai in the south of India, Sical (formerly South India Corporation Agencies Limited) is listed on the Mumbai Stock Exchange and the National Stock Exchange.
The services of the company are segmented as:
- Bulk- Stevedoring/ Port terminals/ Customs and agency services/ trucking/ railroad/ warehousing
- Container- Container terminals/ ICDs/CFS
- Offshore- O&M of Platform Supply Vessels for ONGC/ owning PSV
Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; a container terminal at Tuticorin, 4.5 lakh square feet of storage across over 92 warehouses; owned and regularly contracted fleet of over 2500 transport vehicles, and container freight stations at 4 locations across India. Sical's FY2006-07 revenue was Rs 9.90 billion on Rs 301.9 million equity capital. |
