Chennai: The Chennai-based integrated logistics player Sical Logistics Limited (Sical) has bagged the operations and maintenance of ONGC''s 17 Samudrika category vessels.

This is Sical''s fifth successive winning bid since 1995 when the company began providing offshore logistics service to ONGC. The three-year contract is valued at Rs126.5 crore. After the first three years the contract is extendable twice for durations of six months each.

Karthik Menon, VP, finance, Sical Logistics, said the current agreement with ONGC was for 15 vessels over the past four years. "With the new tender, we now have a 17 vessels contract which will add Rs120-130 crore to our top line for the next three years, excluding the two extensions of six months each," he added.

Under this contract Sical''s responsibility include conveyance of men and material from shore to ONGC''s offshore assets and between off shore assets; fire fighting support to offshore assets; emergency assistance; rescue operations; anchor handling jobs for off shore assets; shifting and relocation of off shore assets; hydrographic surveys; supply of food and provisions in bulk to various off shore assets and assistance in diving activities.

Sical has been one of the key agencies managing a large number of ONGC vessels operating off the Mumbai coast and serving Bombay High. During the previous contract Sical had managed 15 vessels for ONGC.

The technical management of these vessels consists of providing competent, experienced manpower, carrying out planned maintenance of all equipment and machineries onboard, rendering all repair activities and timely dry docking. It also includes import and supply of spares, compliance of all relevant international/ local maritime rules and regulations, maintenance of international safety management and carrying out all required surveys / audits as required by the Classification Society or the mercantile marine department.

Sical has fully qualified and well experienced seafarers in its team along with five master mariners and five marine chief engineers.

According to Ashwin C Muthiah, chairman, Sical, the ONGC contract coupled with one from PSV Sical Torino, which is owned by a wholly owned subsidiary, deployed with Peterson Oil in the North Sea would enable the company to get around 30 per cent turnover form offshore logistics during FY08.

For 2008, the company is looking at a topline of Rs600 crore. "Before the exit of the logistic business, we did about Rs900 crore. With the exit, we hope to be in region of Rs500-Rs600 crore" he added.

The company has a lot of plans for which capital is needed. "We did an FCCB fund raising equity exercise in April 2006 for about $50 million. We also raised $26 million in private equity from IDFC, which came in April," Menon said. At present, they are evaluating the second round of funding of $25 million.

Sical Logistics is in the process of building a new container terminal in Chennai, which has a gestation period of 24-30 months. "The other project is the container freight station, which we are building in Nagpur. For that we have 80 per cent land in our possession," he said. It intends to buy two rakes for its freight train operations for which the inspection and R&D is on, Menon said.

The company has raised close to Rs89 crore by exiting the palm oil and real estate asset business.