Tata Power plans to foray into shipping. The company will invest $500 million through its Singapore-based special purpose vehicle, TPC Energy Asia, to prepare a fleet of nine vessels to transport coal from Indonesia to its plants located in the western coast of India.The company has already signed charter agreements for three ships.
Analysts said the India-bound freight rates are expected to be firm as companies such as Vedanta, Reliance Power and other ultra mega power projects begin shipment of coal. It is not just the prospect of high rates that is weighing on the minds of power producers, but also the possibility that ships too may not be available.Tata Power may consider commercial use of spare ship capacity later
Reliance Power, which is developing two ultra mega power projects, is reportedly considering a foray into the shipping business to cut the transport cost.
Read more in The Business Standard article.
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