Gujarat NRE Coke to jointly acquire two cargo vessels

Mumbai, Jun 11 (UNI) Low ash metallurgical coke manufacturer, Gujarat NRE Coke Ltd today said they have signed a strategic agreement with first class Scandinavian owners to jointly acquire two vessels of 60,000 dwt each on a time charter basis, which will be delivered from Japanese Yards in 2011 and 2012 for ten year charters with purchase options.

The ships incorporate futuristic designs and are expected to substantially aid the company's cargo movements between India, Australia and other destinations. Considering the unique features of the contract that has been entered into, the company will also benefit against the fluctuations in the freight rates, in the medium term apart from giving them an option to get all the benefits that accrue to a ship owner moving bulk cargoes on a regular basis.

As part of this ongoing process of innovation and investment in infrastructure, they are also setting up for captive use, a railway siding in Dharwad apart from constructing its own jetty in Belekeri, Karnataka.

These moves too will result in better logistical efficiencies and further reduction of operating costs. It will be pertinent to point out here that the company is currently riding the wave of a global tightening of LAMC prices, which are resulting in very good price realisations. This coupled with the fact that an energy hungry nation is increasingly demanding more and more high quality, low ash metallurgical coke for firing its furnaces of progress portends well for the company.

In a communique to the Bombay Stock Exchange (BSE) Gujarat NRE Coke today said its long term outlook and the management's desire to act according to well laid strategies that keep future contingencies while taking strategic decisions, are necessitating its move into ship acquisition.

UNI