Mercator Lines the second largest private shipping company is planning to buy six second hand tankers this year as the company is looking to expand its fleet by taking advantage of the prevailing low prices globally.

A Mercator official said that in today's market, these six ships would cost between INR 400 crore and INR 600 crore, depending on the age of the vessel from five years to one year.

According to a company official, second hand ships are available at attractive prices. The official said that “We want to take advantage of this situation and don't want to miss this opportunity.”

When asked about the acquisition plan, Mr H K Mittal executive chairman of Mercator Lines, declined to comment.

Recently, Shipping Corporation of India too decided to buy six second hand ships, including two tankers, two bulk carriers and two offshore vessels.

Mr Rajeev Kashikar MD of Konig and Cie Asia Advisors Pvt Ltd a shipping finance firm said that “From a long term point of view, it is the best time to invest in assets as the rates have dropped drastically.”

(Sourced from BL)