Mumbai: Great Eastern Shipping Company Ltd has decided to go for a massive ship acquisition programme with a capital investment of Rs 880 crore.

The company has already placed orders with various shipbuilding yards and the delivery of these ships is expected between January 2004 and April 2005.

Says a senior GE Shipping official: "The freight market is doing well. The crude tanker market is expected to continue at current levels and a strong product tanker market would be subject to only seasonal impacts. The dry bulk freight rates might stay at healthy levels for the balance part of the year. The total investments for these acquisitions will be around Rs 880 crore. The orders have been placed with various shipbuilding yards."

GE Shipping has already entered into a contract with Bharati Shipyard Ltd to build the anchor-handling tug supply vessels. These vessels are scheduled to be delivered in early 2005 and are capable of providing support for deep-water drilling activities, the official adds.

GE Shipping''s current fleet of 62 vessels comprises 32 ships (an aggregate tonnage of 1.59 mn dwt with an average age of 12.6 years) and 30 offshore units. The company has four tankers (aggregating 0.47 mn dwt).

During the current year, GE Shipping had acquired a 66,203-dwt second-hand panamax product carrier and took delivery of a new building 1,05,716 dwt. The company also acquired one Aframax crude carrier and a 46,273-dwt MR product carrier.

The official says with the government''s continuous emphasis on the growth of the exploration and production sector and with an increased number of discoveries, India is being talked about as a destination for many international exploration and production (E&P) operators. The Indian oil field sector is expected to witness increased activities.