MUMBAI: Transworld group’s Shreyas Shipping and Logistics Ltd (SSLL) has  proposed to buy one container vessel M.V. OEL BHARAT (2959 TEUs) from Orient Express Lines Inc., Panama for a price of USD 7 million subject to shareholders’ approval, says a release. This particular acquisition is the first out of the four proposed acquisitions and the proposed vessel shall be the biggest vessel acquired by the company ever, adds the release. The company has been trying to acquire vessels for the past two months.

 

Orient Express Lines has recently acquired a larger vessel of 3600 TEUs to meet their additional business requirement and wanted to sell off the proposed vessel OEL BHARAT.

 

The proposed vessel suits the business of Shreyas and is keen to acquire the same.

 

Strategic acquisition - The company has taken a strategic decision to sell its older vessel and replace it with younger and more fuel efficient vessels. Recently it acquired the vessel ‘SSL Mumbai’ in June 2014 and ‘SSL Gujarat’ in January 2015.

 

The above strategic decisions have helped the company to improve its performance substantially in the year 2014-2015.

 

The surplus funds from business need to be deployed back for business expansion by acquiring Capital Assets (vessels) so that company can continue to improve its performance YOY. The company has obtained approval for acquisition of 4 container vessels ranging between 1700 TEUs to approx 3000 TEUs from its Board of Directors.

 

In order to make the service efficient and customer friendly, it is imperative that the service should be made a weekly service. With the acquisition of this vessel, the long haul services can at least be made a ten day service.

 

Also the company intends to expand its business on different routes and further the opportunities available for containerised coastal shipping in India.