Varun Shipping looks overseas for growth

Private sector shipping company Varun Shipping today said it is focusing on the offshore space and is in talks to lease out two vessels in the Caspian Sea.

"As far as offshore is concerned, our priority is to primarily charter our offshore ships into long-term contracts.

We have three contracts in Brazil and are trying to get two more in the Caspian Sea," Vice Chairman and Managing Director Yudhishthir Khatau told reporters here.

At a time when the shipping sector is affected globally, it is better to get into offshore contracts as they are long-term in nature, he said.

Varun Shipping, which has a fleet of 21 vessels, recently acquired a very large gas carrier by investing USD 24 million, but does not have any immediate plan of acquiring new assets, he said.

The problem of piracy in the Gulf of Aden has resulted in insurance costs for voyages going up, Khatau said, adding insurance companies are also insisting on having armed guards aboard ships.