As Shipping Corporation of India’s privatisation plans get delayed, US-based Safesea, one of many bidders shortlisted to bid for the Indian-government owned vessel operator, has turned its consideration to Ceylon Shipping Corporation, a authorities of Sri Lanka-owned firm and has made a proposal to accumulate a 40% stake within the firm by coming into right into a JV, in accordance with sources.

As per the proposal of Safesea, Ceylon Shipping Corporation may very well be run in a public-private partnership mannequin.

Sources conversant in the contents of the proposal stated that Safesea has proposed that it’s going to maintain a 40% stake in Ceylon Shipping Corporation whereas the Sri Lankan authorities will maintain one other 40% stake. It has proposed that 20% stake will probably be offloaded to public buyers.

No monetary facets have been talked about within the proposal as a result of the talks are stated to be preliminary.

Safesea confirmed it has made an funding proposal to Ceylon Shipping when contacted.

“We have received Safesea’s proposal. It is in the interest of the company. But we will have to approach the relevant ministry for taking it forward,” stated WS Weeraman, chairman of Ceylon Shipping Corporation.

afesea had submitted an expression of curiosity to accumulate Shipping Corporation of India in March final yr. It was amongst shortlisted bidders for the corporate and was allowed to hold out due diligence. It is but to submit a monetary bid for the corporate as a result of the federal government of India indefinitely prolonged a January 18 deadline for submission of bids for the state-owned vessel operator.

Ceylon Shipping Corporation was established in 1971 and has been a key participant in transportation of products from Sri Lanka. As the nation has a deep and large port, it has been a favoured route for ships transporting items throughout continents. The firm is seen as a horny goal as a result of it may possibly supply feeder providers and port-related logistics providers to world delivery strains.

However, the corporate is dealing with a monetary crunch and has been in need of money to run its operations.

Source : pehalnews