State-owned Shipping Corp of India (SCI) has scrapped plans to order three containerships at Cochin Shipyard.

    The owner had lined up a deal for the 3,500-teu vessels earlier this year.

    Liner director JN Das told the LiveMint website: “Our ship acquisition committee decided not to pursue the purchase of three containerships from Cochin Shipyard because of the high price quoted by the yard."

    This is the first concrete evidence that the owner is becoming more cautious after the shipping ministry put pressure on it to curtail its huge newbuilding programme in troubled markets.

    SCI ordered a similar ship from Rongcheng Shenfei Shipbuilding in China in July for $48m.

    Das said: “Cochin Shipyard was asking for about $15m more for each ship, plus value added tax (VAT). Why should I take it?” Das said.

    “Nobody can match the Chinese on prices,” said a spokesperson for Cochin Shipyard. “We are collaborating with a Japanese firm on technology to build the containerships; this requires import of lots of equipment. Naturally, the ship prices will be higher.”

?source:asiasis?