Sical Logistics acquires Chinese dredger for USD 24.92 million

Kolkata, Aug 16 (UNI) Sical Logistics Ltd, provider of integrated multi-modal logistics solutions, today announced its foray into the dredging market, with the acquisition of Sical PortoFino, a cutter suction dredger.

Chairman of Sical Logistics Ashwin Muthiah has said, ''The acquisition is the latest step in Sical's expansion strategy into the global offshore logistics market.'' The acquisition, costing USD 24.92 million, was funded by Sical's foreign currency convertible bonds issued in 2006 and was estimated to earn a revenue of USD 9.8 million 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 requirements of the booming Indian and Asian dredging market,'' Mr Muthiah said.

Sical acquired the newly built dredger through Norsea Offshore Pte Ltd, a wholly owned subsidiary, from a Chinese dredging organisation - Shanghai Duo Jun Dredging Co Ltd.

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 2006.

Mr Muthiah said, ''The acquisition of the cutter suction dredger is a stepping stone for Sical to enter the booming USD 14 billion dredging market which 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 potential of the dredging market.'' UNI