Shipowner and businessman Pratap Shirke made his first shipping investment in the 1980s against the candid advice of a close family member.
“Don’t buy ships,” he can remember his father-in-law telling him when he was running the family construction business in Dubai at the time.
Shirke ignored the advice and bought a 6,000-dwt single-decker cargoship to transport materials.
“He was right, I lost my shirt on that ship,” he recalls with a smile.
The 72-year-old is in a mood to reflect. He has scaled down his shipping interests, which at one time involved the management of 80 ships. He is also stepping down as chairman of the North P&I Club, where he has been a board member for nearly 30 years.
No regrets
Despite the troubled first investment, Shirke has no regrets. Over the next two decades, he went on to build a substantial shipping and ship-management empire.
“Shipping is an emotional business and you can get addicted,” he told TradeWinds.
Not long after his first shipping investment, he was back buying a capesize and two panamax bulkers from a Hong Kong company, acquired Seahorse Ship Management and established Panoceanic Bulk Carriers. He was later to acquire ASP Ship Management from Australia National Line and manage a fleet of more than 80 vessels.
His venture into shipping was also the start of a long-standing relationship with the North P&I.
Shirke joined the board of Newcastle P&I Club in 1992 at the invitation of the then chairman, Greek shipowner Spyros Polemis — a man he described as his mentor.
He joined the North P&I board in 1998 when it merged with Newcastle P&I and, after three years as vice chairman, became chairman in 2012.
His tenure is closely aligned with the dramatic growth of the North P&I book from around 20 gt at the time of the merger to more than 200m gt today, representing the second-largest book of P&I business in the world.
Shirke is quick to credit the growth to the club’s business ethos. As a shipowner, he is well placed to attest to the value of its services.
“The most important reason I have been there for so long is the people at the North,” he said.
A pleasure doing business
“You get the feeling that there isn’t any other agenda than to help the members in the best way we can and, of course, make sure we don’t do anything that is financially damaging to the club. That atmosphere is a pleasure to be part of.”
Shirke remembers when he realised the value of P&I firsthand. A vessel he had sold broke down on Christmas Eve near Hong Kong. It had a cargo to deliver to China, before being handed over to the buyer. With the help of North P&I, he was able to complete the deal.
“We transshipped the cargo in three days flat over Christmastime,” he said. “Without the help of the North, the ship would have missed the laycan.
“The P&I system just cannot be replicated in any other way.”
But it has not always been easy for P&I clubs to find shipowners with Shrike’s obvious passion for the business, or the time, to join the board.
He believes it is vital that shipowners' interests are strongly represented: “I am very keen to make sure we have shipowners on this board.”
James Tyrrell of Arklow Shipping will succeed Shirke as chairman and Ioanna Procopiou of Sea Traders becomes vice chair.
As chairman, Shirke has backed the expansion of the North P&I’s membership.
He has also given the thumbs up to a diversification strategy into hull and machinery, aquaculture and fixed premium, which he points out has not brought at any financial risk to the club.
Shirke is not quite calling it a day. North P&I chief executive Paul Jennings said he has “gently persuaded Pratap to continue” on the board for a while to lend his experience.
Shirke has sold off ASP Ship Management in a management buyout but still operates two newly built MR tankers around New Zealand. He said he needs the ships to keep up his connection with the North P&I.
