Transport Corporation of India (TCI) plans to acquire two cargo ships worth USD 35-40 million in FY2025 to strengthen its coastal seaways business, marking a significant expansion of the company’s maritime operations.
Fleet Expansion Plans
The company has allocated ₹375 crore for investment in FY25, with ₹75 crore earmarked specifically for ship acquisition to support its seaways operations. TCI is exploring shipbuilding options from shipyards in China, Japan, and Korea, expecting to finalize a deal in the second half of the fiscal year.
The new vessels will join TCI’s existing fleet of six cargo ships with a total deadweight tonnage (DWT) of 77,957 tonnes. The company plans to finance the ship acquisition through a combination of internal accruals and bank credit.
Immediate Capacity Boost
To strengthen its seaway operations immediately, TCI is also actively pursuing the purchase of a large second-hand cargo vessel, as new ships typically require around three years for delivery. This approach will help bridge the capacity gap while awaiting delivery of new vessels.
TCI has experienced a setback in its previous ship acquisition attempt — the company had placed orders for two ships in the last financial year, but the Japanese shipyard cancelled the contract at the last minute. The cancellation prompted TCI to reevaluate its ocean fleet acquisition plan and explore options overseas where domestic capacity remains insufficient.
Strategic Rationale
The seaways business currently contributes approximately 15 per cent to TCI’s total revenue, and the company plans to expand this segment significantly. Three ships from the existing fleet will need replacement within the next three to four years, making the acquisition plan strategically necessary.
In FY25, TCI also plans to spend ₹100 crore each on new warehouses and offices, new trucks and automotive rakes, and other assets like containers and warehousing equipment, indicating a comprehensive capacity expansion across all logistics verticals.
