Tuesday, October 29, 2019

Commerce Minister admits slow rise in “Starting Business” parameter of EoDB ranking, expects to improve going forward October 30 , 2019

NEW DELHI: Finance Minister Nirmala Sitharaman has critically acknowledged India’s position in the Ease of Doing Business by pointing out a slow rise in the parameter– ‘Starting Business’, while the country’s overall rank improved by 14 spots to rank 63. She highlighted that the parameter of starting a business is very critical and India has improved only one rank in this. Nirmala Sitharaman also said that Insolvency and Bankruptcy Code, NCLT, and NCLAT have together made India to substantially improve its rank in the World Bank’s Doing Business report. 
The FM announced that Kolkata and Bangalore will be added next year for Ease of Doing Business review. At present, only Delhi and Mumbai are considered by the World Bank.
 
The World Bank has praised the Country for making a substantial leap upward, raising its Ease of Doing Business ranking from 130 in Doing Business 2016.  This is the third time in a row when India made its place in the 
10 top improvers. Improvement in India’s rank can be attributed to the remarkable reform effort by the Government. The World Bank has mentioned four key areas where India has made significant improvements —  starting a business, dealing with construction permits in India, trading across borders, and resolving insolvency.

Maersk lays the foundation stone for ‘A.P. Moller – Maersk Centre of Excellence’ for maritime skill development in Tamil Nadu

MUMBAI: Maersk, a Global integrator of Container Logistics, has laid the foundation stone of its planned ‘A.P. Moller – Maersk Centre of Excellence’ facility at Thenpattinam (Tamil Nadu), to support skill development and training needs for Maersk cadets across job functions (deck, electrical and engine). Maersk signed a Memorandum of Understanding (MoU) with Academy of Maritime Education and Training (AMET) University to jointly operate this facility with an aim to maintain steady channel of Indian seafarers for its operations. 
The A. P. Moller – Maersk Centre of Excellence will be spread over 8 acres of land (32,375 sq. mt.) and will be a part of a larger 12 acre (48,500 sq. mt.) maritime campus set up by AMET. The centre will be equipped with world class facilities’ like smart classrooms, workshops, and will house approximately 160 deck & engine cadets for Bachelor’s programme in Nautical Science & Marine Engineering. Additionally, electrical cadets will be taken in as per requirement on yearly basis. 
 
 “Currently, Maersk does not have any exclusive training facility in India for its cadets. We are relying on multiple colleges for training them. The A. P. Moller – Maersk Centre of Excellence will help us focus our skill development efforts on a single location, especially in a Country like India from where we have the highest recruitment of cadets in the world. We hope to inspire our cadets to explore horizons beyond their own by synergizing AMET’s 25+ years’ experience in maritime education and our vision to train our cadets in a world class training facility building enhanced collaboration between company and Academia.” said Niels Bruus, Head of Marine Human Recourses at Maersk.
 
Dr. J. Ramachandran, Chancellor of the AMET University said “We have worked closely and cohesively with the global shipping industry and especially Maersk aligning its objectives regularly to suit the demands of the evolving maritime industry in India for almost two decades now. Forged with a mission to be the fountainhead for nurturing finest intellectual capital base for the worldwide maritime sector, education at AMET caters to the comprehensive development of all its students so as to make them better educated, more articulate and demanding. We are glad to be partnering with Maersk to set up the centre of excellence with which we will raise the bar in maritime education.”
 
Maersk and AMET are aiming to bring opportunities for aspiring seafarers to be trained in world class facilities enabled by modern teaching aids, well equipped workshops for practical training, marine workshop for hands-on training on marine auxiliaries, ship-in-campus and other such facilities backed by an overall conducive learning environment at this centre.
 
“We want to add more value to the training standards during school phase of our cadets. There is a gap between theoretical syllabus and important competency needs on our modern container vessels. This is the gap that we are looking forward to plugging at our centre” Niels Bruus added.

APM Terminals Pipavav announces financial performance of September ended quarter 2019

MUMBAI: APM Terminals Pipavav (Gujarat Pipavav Port Ltd) recently announced the financial results for the quarter ended September 30, 2019. 
 
The company reported a net profit of INR 671 million for Q2FY20 as against INR 552 million in Q2FY19. 
 
Revenue from operations for the quarter under consideration stood at INR 1,992 million as against INR 1,711 million in Q2FY19. EBIDTA for the quarter was at INR 1,267 million as against INR 975 million during the same quarter last year. EBIDTA margin stood at 64% in Q2FY20 as against 57% in Q2FY19. 
 
The container cargo business for the quarter stood at appx. 224K TEUs, Bulk business was at 674K MT and Liquid business was at appx. 235K MT, RoRo business handled appx. 20K cars for the quarter under review. 
The Board Members during their meeting held recently, announced appointment of Mr. Jakob Friis Sorensen as the Managing Director of APM Terminals Pipavav effective from 1st January, 2020.

MANSA congratulates PSA’s Bharat Mumbai Container Terminal for handling its one-millionth TEU

MUMBAI: Maritime Association of Nationwide Shipping Agencies – India (MANSA) has joined the maritime fraternity in congratulating PSA’s Bharat Mumbai Container Terminals (BMCT) at JNPT in handling its one millionth TEU.
 
 “It goes to the credit of the BMCT to achieve this milestone in a span of just 20 months since it commenced operations in February last year. 
We wish that the next milestone will continue to come up much faster than expected and our ship-agent members will also play their small but significant role in taking the terminal to great heights,” said Captain Amit Wason, President, MANSA.
 
Rising trade and cargo movement augurs well for container terminals and our fellow intermediary ship-agents as also the Indian economy at large, he said.
 
Located at India’s largest and premier container gateway – BMCT is the fourth container terminal at the port with a quay length of 1000 meters in its phase-1 development and to be extended to 2000 meters berth length on completing expansion.

Commerce Ministry holds discussions with Export Promotion Council : MEIS, Credit, IGST refund issues discussed

NEW DELHI: Exporters raised several issues such as credit and IGST refund at a meeting called by the Commerce Ministry recently amid dip in the Country's outbound shipments. Exports contracted for the consecutive second month in September.
The meeting was Chaired 
by Commerce Secretary 
Anup Wadhawan and was attended by Export Promotion Councils.
The Federation of Indian Export Organisations (FIEO) said they flagged issues related to stoppage of filing of MEIS (Merchandise Exports from India Scheme), problems being faced by exporters at credit front and list of risky exporters.
"These issues are impacting exports. We urged the Government to take action on this," FIEO Director General Ajay Sahai said.
Trade Promotion Council of India Chairman Mohit Singla, who participated in the meeting, said India's export needs strategic thrust to come out of the plateaued growth.
"We suggested harnessing GI (geographical indication) products globally for enhanced acceptability across geographies, a national trade portal to address the trade enquiries generated globally and incentivising on the degree of value addition a player in SEZ (special economic zone) brings to a product, so that they remain advantageous compared to foreign exporter," he said.
 
India's exports remained in the negative zone for the second consecutive month in September, contracting by 6.57 per cent to USD 26 billion mainly on account of significant dip in shipments of petroleum, engineering, gems and jewellery and leather products.
 
Imports also declined by 13.85 per cent to USD 36.89 billion in September, narrowing the trade deficit to a seven-month low of USD 10.86 billion, according to the government data. Out of the 30 key sectors, as many as 22 segments showed negative growth in exports in September. The country's outbound shipments have remained subdued so far this year. It may have a bearing on the overall economic growth, which fell to over six-year low of 5 per cent in the first quarter of the current financial year.
 
Industrial output declined by 1.1 per cent in August due to poor performance by manufacturing, power generation and mining sectors.
 
Ludhiana-based Exporter S C Ralhan has called for immediate release of foreign trade policy by the Government to arrest the downfall.

Prime Minister Narendra Modi to inaugurate 150th year celebrations of KoPT

NEW DELHI: Prime Minister Narendra Modi will inaugurate the sesquicentenary celebrations of the Kolkata Port Trust (KoPT), Mr. Mansukh Mandaviya, Minister of State for Shipping (Independent Charge) and Chemicals & Fertilisers, said in Kolkata recently.
 
During his visit to KoPT, the Minister inspected the CCTV control room in the dock area and port operations at Netaji Subhas Dock (NSD). He also inaugurated four important projects.
 
“The Minister inaugurated RFID operations at Kolkata Dock System (KDS) that was set up at a total cost of Rs 17 crore. Under this project, 12 gates of NSD and Kidderpore Dock (KPD) are being fitted with RFID-based PSES System. It will provide single window system to port users for obtaining permits/passes through cashless transactions. He also inaugurated CCTV operations at KDS, including at the KPD and NSD Gates and yards, Bascule Bridge, Swing Bridge and entire Rabindra Setu. Installation and commissioning of this project with four years’ annual maintenance contract has cost neatly Rs 3 crore,” a senior KoPT official said.
 
The Minister also unveiled three truck parking terminals at KDS on nearly 30,000 sq m of its own land at Sonai, Coal Dock Road and Bhut Ghat. This has cost nearly Rs 6 crore. Mr. Mandaviya also inspected the Green Wall Project at BISN extension of NSD. He visited the Indenture Memorial and probable river front development sites.
 
In the afternoon, the Minister headed a review meeting at the KoPT headquarters, during which Chairman Vinit Kumar briefed him about the performance of the Port Authority, various developmental projects being undertaken or to be handled in the near future.
The Minister emphasised that the work culture in the port sector needs to be changed to turn State-run ports more efficient. He also asked the management to encourage efficient employees. Mr. Mandaviya also gave away prizes to meritorious wards of port employees and met port users to discuss various issues.

Bahri’s Q3 Net Profit jumps 81% driven by Logistics Services Sector

RIYADH: Bahri, a global leader in logistics and transportation, announced strong financial results for the third quarter ended September 30, 2019, on the back of solid growth in the logistics services sector. The company’s net profits soared 80.52 percent to SAR 146.73 million, from SAR 81.28 million in the corresponding quarter in 2018, primarily due to an increase in returns of several operating segments. 
 
Bahri’s revenues during the three-month period between July and September jumped 6.28 percent to SAR 1.48 billion, from SAR 1.39 billion reported in the same period last year. Gross profits surged 45.24 percent year-over-year to SAR 296.11 million from SAR 203.87 million and operational profits rallied 85.51 percent to SAR 259 million from SAR 139.61 million in the year-ago quarter.
 
As compared to the second quarter of 2019, net profits for the quarter under review saw a staggering increase of 221.98 percent and revenues improved 2.86 percent. 
 
Commenting on the results, Mr. Abdullah Aldubaikhi, CEO of Bahri, said: “Bahri’s superior performance with sustained revenue growth and profitability expansion illustrates the robustness of our long-term business strategy and signifies the strength of our market position. Resulting from solid growth in the maritime logistics sector and higher transportation rates underpinned by a thriving oil sector, our business units delivered substantial returns giving us the competitive advantage to continue to outperform. We expect the market to keep up the momentum in the remainder of 2019 and into 2020 and are well-positioned to capitalize on opportunities arising from strong client demand for our industry-leading services worldwide."
 
For the first nine months of the year, Bahri posted total revenues of SAR 4.63 billion, up 6.4 percent from SAR 4.35 billion recorded in the same period of the previous year. Net profits for the January-September period stood at SAR 371.62 million. Gross profits rose 14.29 percent year-over-year to SAR 962.42 million from SAR 842.12 million and operational profits went up 19.73 percent for the first three quarters to SAR 840.47 million from SAR 701.97 million of the year-ago period.

A.P. Møller – Mærsk A/S upgrades EBITDA expectation for 2019

COPENHAGEN: Based on the financials for the third quarter and the updated outlook for freight rates, volumes and bunker fuel prices for the rest of the year, A.P. Møller – Mærsk A/S (APMM) has upgraded its expectation for the 2019 result.
 
APMM’s new expectation for earnings before interest, taxes, depreciation and amortisation (EBITDA) is in the range of USD 5.4-5.8bn. The previous expectation for EBITDA was around USD 5bn. The remaining part of the guidance is unchanged.
 
APMM has in the third quarter, despite slower global demand growth and lower freight rates, recognized better than expected performance in Ocean driven by strong reliability and capacity management combined with lower fuel prices and continued margin improvements in Terminal & Towage, which has resulted in stronger than expected financial performance in the quarter.
 
Revenue was USD 10,055 mill. for APMM in Q3 2019 and EBITDA was USD 1,656 mill. and for the first nine-months revenue was USD 29,222 mill. and EBITDA USD 4,249 mill.
 
APMM will detail its revised full year outlook in the interim report for Q3 2019 that will be published on 15 November 2019.

Portall Infosystems launching PortalleVGM

MUMBAI: Portall Infosystems Pvt. Ltd., is set to launch PortalleVGM, a cloud-based application which would provide easy solutions to daily VGM activities as per guidelines of VERMAS and abide by the SOLAS regulations. 
 
PortalleVGM enables all stakeholders to carry out eVGM process seamlessly right from placing Weighment request at weighbridges to approval from shipping line.
Portall will simplify the process of VGM electronically with single window access thereby helping reduce turnaround time for export shipments and give better user experience.
 
For more information please call toll free 1800 11 5055 or write to – info@portall.in, contact SPOC: vinitp@portall.in.

Monday, August 12, 2019

NEW DELHI: The strong will and action of the Government under the dynamic leadership of Prime Minister Shri Narendra Modi and Home Minister Shri Amit Shah to scrap Article 370 has paved a new era of growth both for the people of Jammu & Kashmir and Ladakh region said FIEO President, Mr Sharad Kumar Saraf. Scrapping Article 370 will not only bring in huge trade and business opportunities for both the regions but will also help get the troubled region to stand on its feet added Mr Saraf. FIEO Chief said that this bold step taken by the Government at the Centre would allow flow of investments into the state in sectors like tourism, real estate, carpets, handicrafts, sports goods, horticulture and food processing and will also help in promoting trade and commerce specially exports of these products and services from the region. Jammu and Kashmir including Ladakh region are an area of strong potential for development as it enjoys a range of natural resources and immense talent. Strong and dedicated efforts from the Government, trade and industry including handholding of local businesses is the need of the hour today to further help to push its growth rate and create new jobs and livelihoods in the region said Mr Sharad Kumar Saraf. This multiplier effect would increase the employment opportunities and contribute to India's overall prosperity and growth & development of the country. FIEO President further adds that opportunities, which exists in the other key sectors also includes pharmaceuticals, IT/ITeS, electronics and leather. Shortcomings with regard to post-harvest food processing of apples, saffron, almond, walnut and other fruits and dry fruits, as well as the acute lack of health care and educational facilities in the state mainly due to lack of private sector participation will soon be overcome by this bold step taken by the Government. With this FIEO also plans to provide handholding to cater to the needs of the exporting community of both the region of J&K and Ladakh. Mr Sharad Kumar Saraf further says that now with both Article 370 and 35A gone, J&K will be governed by the same rules as the rest of the Country, which means any Indian citizen can buy property in the State, take up a job and most importantly, invest in industry and trade initiatives in the State. Truly a historic decision as it opens the gateway for development and peace in Jammu and Kashmir, said a FIEO release.

WASHINGTON: As a result of their ongoing trade, China is no longer the top trading partner of the United States and has been replaced by America's neighbours Mexico and Canada, according to a media report.
In the first half of the year, Mexico was the top trading partner of the United States followed by Canada, the latest official data reveals, according to The Wall Street Journal.
As a result of the ongoing trade war between the US and China, imports from China to the US dropped by 12 per cent and America's export to China fell by 19 per cent, the daily said.
After coming to power, Trump has imposed 25 per cent import tariff on Chinese products worth USD 250 billion. Another 10 per cent tarrif on products worth USD 300 billion will come into effect on September 1. Trump has so far maintained that China has been unfair to the US.
China has also taken several retaliatory steps. According to a Commerce Department report, the total value of bilateral goods exchanged with China fell 14 per cent in the first half of the year to USD 271.04 billion, The Wall Street Journal said.
"After holding the top spot among US trading partners from 2015 to 2018, China now sits at No. 3 and now smaller than Mexico for the first time since 2005," it said.
 

Gateway of opportunities opens up for Trade and Investment in J&K and Ladakh post revoking of Article 370: FIEO President

NEW DELHI: The strong will and action of the Government under the dynamic leadership of Prime Minister Shri Narendra Modi and Home Minister Shri Amit Shah to scrap Article 370 has paved a new era of growth both for the people of Jammu & Kashmir and Ladakh region said FIEO President, Mr Sharad Kumar Saraf. Scrapping Article 370 will not only bring in huge trade and business opportunities for both the regions but will also help get the troubled region  to stand on its feet added Mr Saraf.
FIEO Chief said that this bold step taken by the Government at the Centre would allow flow of investments into the state in sectors like tourism, real estate, carpets, handicrafts, sports goods, horticulture and food processing and will also help in promoting trade and commerce specially exports of these products and services from the region. Jammu and Kashmir including Ladakh region are an area of strong potential for development as it enjoys a range of natural resources and immense talent. Strong and dedicated efforts from the Government, trade and industry including handholding of local businesses is the need of the hour today to further help to push its growth rate and create new jobs and livelihoods in the region said Mr Sharad Kumar Saraf. This multiplier effect would increase the employment opportunities and contribute to India's overall prosperity and growth & development of the country.
FIEO President further adds that opportunities, which exists in the other key sectors also includes pharmaceuticals, IT/ITeS, electronics and leather. Shortcomings with regard to post-harvest food processing of apples, saffron, almond, walnut and other fruits and dry fruits, as well as the acute lack of health care and educational facilities in the state mainly due to lack of private sector participation will soon be overcome by this bold step taken by the Government.
With this FIEO also plans to provide handholding to cater to the needs of the exporting community of both the region of J&K and Ladakh.
Mr Sharad Kumar Saraf further says that now with both Article 370 and 35A gone, J&K will be governed by the same rules as the rest of the Country, which means any Indian citizen can buy property in the State, take up a job and most importantly, invest in industry and trade initiatives in the State. Truly a historic decision as it opens the gateway for development and peace in Jammu and Kashmir, said a FIEO release.

APM Terminals Pipavav (Gujarat Pipavav Port Ltd) financial performance for the quarter ended June 30, 2019

MUMBAI: APM Terminals Pipavav (Gujarat Pipavav Port Ltd) announced the financial results for the quarter ended June 30, 2019.
The company reported a net profit of INR 564 million for Q1FY20 as against INR 471 million in Q1FY19. Revenue from operations for the quarter under consideration stood at INR 1,776 million as against INR 1,760 million in Q1FY19.
EBIDTA for the quarter was at INR 1,024 million as against INR 914 million during the same quarter last year. EBIDTA margin stood at 58% in Q1FY20 as against 52% in Q1FY19.
The container cargo business for the quarter stood at appx. 221K TEUs, Bulk business was
at 0.51 MMT and Liquid business was at appx. 0.2 MMT. RoRo business handled appx. 15K cars for the quarter under review.
Business highlights and developments at APM Terminals Pipavav for the quarter:
•             Trade meets were organized in Mumbai and Delhi
•             CMA CGM started weekly scheduled block train from Port Pipavav.

Shipping Ministry floats new plan to settle past surplus of PPP Cargo Terminals

NEW DELHI: The Shipping Ministry has floated a proposal to sort out the past surplus, worth over 2,500 crore, earned by some of the earliest private cargo handling terminals at Major Port Trusts whose mandatory rate revisions of every three years have been delayed by more than seven years. This was due to court cases filed against tariff cuts ordered by the port regulator.
The move comes after the Ministry issued new rate setting guidelines in March this year for terminals governed by the 2005 rate norms, rectifying many of the contentious issues that were at the centre of a confrontation between them, the Ministry and the Tariff Authority for Major Ports (TAMP).
The new rules, though, would be applied for future rate revisions of 14 older terminals such as the Nhava Sheva International Container Terminal (NSICT), Gateway Terminals India (GTI), Chennai International Terminals (CITPL), Chennai Container Terminal (CCTL), among others.
The new rate norms say that the surplus/ deficit over and above the admissible costs and permissible return, if any, arising during the period of litigation will be subject to the orders of the respective courts. “Alternatively, the Shipping Ministry, Major Port Trusts and BOT operators concerned and TAMP may decide on the treatment of past period surplus arising during the period of litigation,” it said.
The surplus, according to the Ministry’s proposal, will be worked out by scrutinising the audited accounts of the individual terminals since 2012, considering parameters such as actual revenue earned, less the operating expenditure, admissible royalty to be paid to the Government-owned port authority and 16 per cent return on capital employed (ROCE) on the net block of assets.
 

Industry 4.0: Making India smart and intelligent manufacturing hub : EEPC India

NEW DELHI: India has to move from manufacturing outfits of Industry 1.0 and 2.0 to Industry 4.0 and beyond. EEPC India in association of Department of Heavy industries (DHI) is raising awareness on the 4th Industrial Revolution to drive the Indian manufacturing to a ‘Smart and intelligent Manufacturing’ Hub said Mr Ravi Sehgal at a Industry 4.0 session.
Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) - Udyog Bharat 4.0 is an Industry 4.0 initiative of Department of Heavy Industry, Government of India under its scheme on Enhancement of Competitiveness in Indian Capital Goods Sector. The initiative aims to raise awareness about Industry 4.0 among the Indian manufacturing industry through demonstration centres. Currently there are four centres which include Center for Industry 4.0 (C4i4) Lab Pune; IITD-AIA Foundation for Smart Manufacturing; I4.0 India at IISc Factory R & D Platform; Smart Manufacturing Demo & Development Cell at CMTI.
Indian Engineering Exports have been growing at a rate of 10% with variation, but the Engineering Exports as a percentage of ASEAN and World Exports is stagnating at 0.8-1 % over the last 10-15 years. This is because majority of engineering goods originated from low or middle level products. Department of Commerce, Ministry of Commerce and Industry has given to this apex engineering body a mandate to incarnate a Technology Centre to enable MSMEs to benefit from various new technologies. India also needs to close a quality gap faced with the best in class, and leapfrogging to newer technologies, will enable quality export products, hence EEPC India Technology Centre gains ground.
EEPC India Technology Centre in Bengaluru and also the one would be opened shortly in Kolkata , with a view to develop export product by providing a forum for Industry and Academia discussion and learning'' Mr Sehgal said at the seminar. It was a day long productive session where eminent speakers from DHI, IIT Kharagpur, ISI-Kolkata; CMERI- Durgapur; CMTI, C4i4 Pune motivated the stakeholders on the theme.

Wednesday, August 7, 2019

UNCTAD: Consolidation in Container Shipping May Lead to Oligopoly

Increased consolidation among carriers driven by a continued oversupply of vessels could bring some order to the market, however, the recent mergers and mega alliances may lead to oligopolistic structures, UNCTAD warned in its latest report on maritime transport.
“A slower demand than earlier projected, coupled with a large influx of vessels, has led to a continued oversupply of shipping capacity,” said UNCTAD Secretary-General Mukhisa Kituyi.
The consolidation and pooling of cargo could improve economies of scale and reduce operating costs, UNCTAD said, stressing that the transition is posing certain risks.
Namely, shipping lines may exert market power, limit supply and raise prices in the long run and once the industry reaches stability. Furthermore, the growing concentration of the market has increased the risk that fair competition may become distorted which might impact freight rates and shippers.
“The risk is that growing market concentration in container shipping may lead to oligopolistic structures,” says Shamika N. Sirimanne, Director of the UNCTAD Division on Technology and Logistics. “In many developing countries’ markets, there are now only three or even fewer suppliers left. Regulators will need to monitor developments in container shipping mergers and alliances to ensure there is competition in the market.”
It has been pointed out that, as a result, revisiting the rules governing consortiums and alliances may be necessary to determine whether these require new regulations to prevent market power abuse and to balance the interests of shippers, ports and carriers.
The report further indicates that world container ports face mounting pressure from ever-larger ships. In addition, they must cope with the cascade of vessels from main trade routes to secondary routes, as well as growing cybersecurity threats.
“Although investment is key for ports to improve, the amount needed to accommodate ever larger ships may not be worth the extra cost, unless the bigger vessels guarantee more cargo. Otherwise, ports will have invested in larger yards and additional equipment to handle the same total volume,” the report adds.
Between 2000 and 2016, a total of USD 68.8 billion in private investment was committed across 292 port projects aimed at improving port infrastructure and superstructures.
What is more, the Review of Maritime Transport 2017 says that, on average, transport and insurance costs account for about 15% of the value of imports, but that this is much higher for smaller and more vulnerable economies; on average 22% for small island developing states, 21% for the least developed countries and 19% for landlocked developing countries.
The persistent transport cost burden on many developing countries stems from lower efficiency in ports, inadequate infrastructure, limited economies of scale and less competitive transport markets, UNCTAD noted.
“Helping developing countries improve the factors behind high transport costs is therefore key for economic development. This can be done through soft measures, such as providing training and facilitating reforms, or hard measures, such as upgrading infrastructure and improving equipment,” the report concludes.

Samudera Shipping Sells Supramax Duo

Singapore-based Samudera Shipping has reached an agreement to sell two of its loss-making bulk carriers.
Namely, the company’s subsidiary Foremost Maritime Pte sold the Supramax bulkers Sinar Kutai and Sinar Kapuas to two separate buyers.
The 2011-built 57,334 dwt sister vessels were disposed for a total ofUSD 20.2 million and are scheduled for delivery to their new owners in September 2019.
Samudera Shipping explained that Sinar Kutai and Sinar Kapuas “have contributed losses to the group for the past few years and do not fit into the planned future operations of the group.”
The company added that the transaction would enable it to redeploy its capital “for more suitable ships and other commercial activities.”
The proceeds from the sale would be used to fund a potential investment in an Indonesian company which provides shipping services for a domestic route, and for working capital and business expansion.

Indian container traffic growth continues

Container traffic handled at the major Indian ports in the first three months of the current financial year, from April to June, totalled 2.57 million teu. This represents a 6.99% increase compared with the 2.41 million teu handled in the equivalent months of last year.
JNPT remains the country’s biggest container gateway, handling 1.31 million teu, up from 1.24 million in the first quarter of the 2018/19 financial year, an upturn of over 7%. Both Kolkata and Chennai ports, however, saw a slight decline their container volumes during this period, while there were gains for Vizag and Chidambaranar ports. The fastest growing major Indian container port in this quarter, though, was Deendayal, which handled 117,000 teu, up from just 56,000 teu in the same period of the previous year.
Overall, the major Indian ports handled 176.8 million tons of cargo in the first quarter of 2019/20, which was 1.52% higher than in the same period of 2018. The fastest growing commodity types were coking coal, with volumes up 16.88%, and iron ore, which rose by 15.33%.
Deendayal was the fastest growing major container port in India in the first quarter of the financial year

Friday, August 2, 2019

Sharda Prasad, Advisor, MoS visits Allcargo Logistics PMKK JNPT Centre

Lauds Allcargo Logistics’ efforts to build skill competencies of youth for logistics sector
MUMBAI: Shri Sharda Prasad, Advisor Sagarmala Project, Ministry of Shipping, visited the Allcargo Logistics Pradhan Mantri Kaushal Kendra (PMKK) at JNPT on July 30, 2019.
Shri Prasad praised the efforts of Allcargo Logistics in conducting skill development programs for underprivileged youth and boosting their employability opportunities in India’s rapidly expanding logistics sector.
 Shri Prasad during his a visit to the Allcargo Multi Skill Development Center at Bokadvira, Uran on July 30, also flagged off the new Pradhan Mantri Kaushal Kendra (PMKK) batch of Consignment Tracking executive, graced the convocation ceremony of two passed-out batches and felicitated working students on the occasion. Among other dignitaries present at the occasion were Mrs. Manisha Jadhav, Manager, Personnel andindustrial Relations, JNPT, Mr. Brijmohan Raturi, Assistant Manager HR, JNPT, Mr. Suhas Mangle, Assistant Engineer, CIDCO, Dronagiri, Dr. Nilratan Shende, DGM CSR, Allcargo and Mr. Chandrakant Patil, Manager, Skill Development. The dignitaries also visited all the facilities in the centre such as classroom, reception, counselling room, placement cell, training laboratories, smart Labs, pantry, kitchen, etc. “The Logistics sector will play a key role in positioning India as a $ 3 trillion economy over the next 5 years. Trained personnel with sector-specific skills will play a key role in sustaining the exponential growth of Indian logistics.  Allcargo Logistics is playing a commendable role in raising the skill quotient of underprivileged youth by conducting structured training programs and learning courses under the PMKK initiative. I would like to urge the students to pursue such courses and grab the employment opportunities available in this sector,” said Shri Sharda Prasad, Advisor - Sagarmala Project, Ministry of Shipping, “Allcargo remains committed to making Indian logistics a skill-driven industry. We aim to bolster the job prospects of the youth by providing them industry-specific training and building skill proficiencies across key functional areas of the supply chain,” stated Dr. Nilratan Shende DGM CSR, Allcargo
JNPT and CIDCO signed an MoU with Allcargo Logistics Limited in November 2018 for skilling youth in Logistics and allied sectors. The Allcargo Multi Skill development Center imparts skill training in six logistics courses such as Heavy Vehicle Driver, Consignment Booking Assistant, Consignment Tracking Executive, Documentation Assistant, Inventory Clerk and Warehouse Picker.
 

India’s exports must contribute $ 1 trillion to economy: Piyush Goyal August 02 , 2019

Lauds Allcargo Logistics’ efforts to build skill competencies of youth for logistics sector
MUMBAI: Shri Sharda Prasad, Advisor Sagarmala Project, Ministry of Shipping, visited the Allcargo Logistics Pradhan Mantri Kaushal Kendra (PMKK) at JNPT on July 30, 2019.
Shri Prasad praised the efforts of Allcargo Logistics in conducting skill development programs for underprivileged youth and boosting their employability opportunities in India’s rapidly expanding logistics sector.
 Shri Prasad during his a visit to the Allcargo Multi Skill Development Center at Bokadvira, Uran on July 30, also flagged off the new Pradhan Mantri Kaushal Kendra (PMKK) batch of Consignment Tracking executive, graced the convocation ceremony of two passed-out batches and felicitated working students on the occasion. Among other dignitaries present at the occasion were Mrs. Manisha Jadhav, Manager, Personnel and industrial Relations, JNPT, Mr. Brijmohan Raturi, Assistant Manager HR, JNPT, Mr. Suhas Mangle, Assistant Engineer, CIDCO, Dronagiri, Dr. Nilratan Shende, DGM CSR, Allcargo and Mr. Chandrakant Patil, Manager, Skill Development. The dignitaries also visited all the facilities in the centre such as classroom, reception, counselling room, placement cell, training laboratories, smart Labs, pantry, kitchen, etc.
“The Logistics sector will play a key role in positioning India as a $ 3 trillion economy over the next 5 years. Trained personnel with sector-specific skills will play a key role in sustaining the exponential growth of Indian logistics.  Allcargo Logistics is playing a commendable role in raising the skill quotient of underprivileged youth by conducting structured training programs and learning courses under the PMKK initiative. I would like to urge the students to pursue such courses and grab the employment opportunities available in this sector,” said Shri Sharda Prasad, Advisor - Sagarmala Project, Ministry of Shipping, “Allcargo remains committed to making Indian logistics a skill-driven industry. We aim to bolster the job prospects of the youth by providing them industry-specific training and building skill proficiencies across key functtional areas of the supply chain,” stated Dr. Nilratan Shende DGM CSR, Allcargo JNPT and CIDCO signed an MoU with Allcargo Logistics Limited in November 2018 for skilling youth in Logistics and allied sectors. The Allcargo Multi Skill development Center imparts skill training in six logistics courses such as Heavy Vehicle Driver, Consignment Booking Assistant, Consignment Tracking Executive, Documentation Assistant, Inventory Clerk and Warehouse Picker.
Union Minister of Commerce and Industry & Railways, Piyush Goyal, reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy prepared by the Department of Logistics, Ministry of Commerce and Industry. The draft National Logistics Policy has been prepared in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation. Forty-six Partnering Government Agencies (PGAs) inputs were analysed in detail for

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//economictimes.indiatimes.com/articleshow/69972501.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppstV
Union Minister of Commerce and Industry & Railways, Piyush Goyal, reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy prepared by the Department of Logistics, Ministry of Commerce and Industry. The draft National Logistics Policy has been prepared in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation. Forty-six Partnering Government Agencies (PGAs) inputs were analysed in detail for

Read more at:
//economictimes.indiatimes.com/articleshow/69972501.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Union Minister of Commerce and Industry & Railways, Piyush Goyal, reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy prepared by the Department of Logistics, Ministry of Commerce and Industry. The draft National Logistics Policy has been prepared in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation. Forty-six Partnering Government Agencies (PGAs) inputs were analysed in detail for

Read more at:
//economictimes.indiatimes.com/articleshow/69972501.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Union Minister of Commerce and Industry & Railways, Piyush Goyal, reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy prepared by the Department of Logistics, Ministry of Commerce and Industry. The draft National Logistics Policy has been prepared in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation. Forty-six Partnering Government Agencies (PGAs) inputs were analysed in detail for

Read more at:
//economictimes.indiatimes.com/articleshow/69972501.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Union Minister of Commerce and Industry & Railways, Piyush Goyal, reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy prepared by the Department of Logistics, Ministry of Commerce and Industry. The draft National Logistics Policy has been prepared in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation. Forty-six Partnering Government Agencies (PGAs) inputs were analysed in detail for

Read more at:
//economictimes.indiatimes.com/articleshow/69972501.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Union Minister of Commerce and Industry & Railways, Piyush Goyal, reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy prepared by the Department of Logistics, Ministry of Commerce and Industry. The draft National Logistics Policy has been prepared in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation. Forty-six Partnering Government Agencies (PGAs) inputs were analysed in detail for

Read more at:
//economictimes.indiatimes.com/articleshow/69972501.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Union Minister of Commerce and Industry & Railways, Piyush Goyal, reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy prepared by the Department of Logistics, Ministry of Commerce and Industry. The draft National Logistics Policy has been prepared in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation. Forty-six Partnering Government Agencies (PGAs) inputs were analysed in detail for





Thursday, August 1, 2019

JNPT, MbPT, IPA along with Portall holds Road Show on PCS 1x

MUMBAI: Mumbai Port Trust, JNPT, Indian Port Association (IPA) along with Portall jointly organised PCS 1x road show in Mumbai on 24th July in Mumbai Port’s Premises to sensitise all the major stakeholders of the benefits offered by upgraded version Port Community System (PCS) 1x.
Mr Sanjay Sethi, IAS, Chairman, JNPT, inaugurated the event in the presence of Mr Rohit Singla, IRS, Joint Commissioner, JNCH, Mr Manish Jaiswal, Group CTO, Portall, Mr Sudhir Kanvinde, Executive Director, IT, IPA, alongwith Senior Officials of Mumbai Ports, JNPT, IPA and Portall.
Port Community System (PCS) is intended to integrate the electronic flow of trade related document/information and function as the centralized hub for the ports of India and other stakeholders like Shipping Lines/Agents, Surveyors, Stevedores, Banks, Container Freight Stations, Customs House agents, Importers, Exporters, Railways/CONCOR, Government regulatory agencies, etc. for exchanging electronic messages in secure manner.
Mr. Sanjay Sethi, IAS, Chairman JNPT in his opening remarks pointed the benefits for the stakeholders of using PCS 1x as PCS is a comprehensive, highly secure extensible and scalable solution that meets the requirements of the trade community, Ports, Banks and Government Agencies and seamlessly integrates them over the internet coordinating all the activities in and around Port and beyond.
The Primary outcome of the PCS is to achieve excellent level of enterprise integration for different players across different ports, thereby increasing the business value for all the players in the Port Community and improve the Ease of Doing Business.
He also pointed that in all around 27 major stakeholders are already onboard and the talks are already in advance stages for adding another 2-3 important stakeholders. He also added that long pending demand of payment aggregator to be added on PCS 1x has been finalised with an agreement with Razorpay.
ome of the main objectives of the PCS highlighted during the event were as follows -
1.            A Centralized Web-Based Application, which act as single window, for the Port Community Members/Stakeholders to exchange messages electronically in secure fashion.
2.            Reduce transaction time & cost in Port Business
3.            Achieve paperless regime in Port Sector
4.            Implement an e-commerce portal for Port Community
5.            Data respository for Research and Analysis
To summarize, the implementation of PCS in India transforms Indian Ports from antiquated Ports to modern Ports by bringing in a paperless regime.
It minimises transaction time and cost to Indian export-import trade. Contribution of PCS to Indian trade, though not quantifiable in exact terms, will definitely herald new chapter in India by way of e-trade. However, it is expected to reduce a transaction cost at ports and empowered Indian Ports to join the premier league of international technology advanced e-ports.
The Road show was well attended by the cross section of trade and it was also informed that the road show in Mumbai evoked highest response from the trade with over 160 attendees.

Wednesday, July 31, 2019

Shipping Ministry appoints committee to promote coastal shipping

The Ministry of Shipping has appointed a committee under the Chairmanship of the Additional Secretary (Shipping) to examine ways and means to promote coastal shipping in India, it is learnt. 

As per a communiqué, the committee will have as members the Director-General, DGS; Joint Secretary (Shipping), Joint Secretary (Sagarmala); Representative of INSA; Representative of CSLA; Representative of ICCSA; Managing Director, IPA; Representative of IPPTA and Representative of ADB.

The terms of reference of the committee will be to identify the issues impacting the competitiveness of coastal shipping, identify the commodities and routes where coastal shipping can be efficient and cost-effective, identify infrastructural problems at ports, suggest policy interventions, and finalise an action plan to boost coastal shipping. 

The committee has been asked to submit its report within three months of its constitution, said the communiqué.

MPEDA bets big on exports of live seafood by Air August 01 , 2019

NEW DELHI: Realising the export potential of chilled and live marine foods, the Marine Products Exports Development Authority (MPEDA) is looking at the possibility of sending such shipments by air.
The agency has sought the Civil Aviation Ministry's intervention to facilitate logistical requirement for such consignments through the airports.
“Considering the higher unit value realisation of such cargoes, we are hopeful that the Ministry's involvement will be quite helpful in boosting exports of seafood in fresh and live forms, thereby enhancing the share of live and chilled marine products in the country's seafood export basket,” said KS Srinivas, Chairman, MPEDA.
To discuss the proposal, the Ministry has convened a meeting with major airports, airline operators and other stakeholders and has also formed a task force to steer forward actionable points that would be helpful to propel the export of live and chilled marine products to different destinations.
The export trade of live and chilled marine products -world over contributes around 20 per cent of the total seafood exports. However, the share of live and chilled marine products in India's total marine products exports is just 2 per cent.
As per the provisional figure 2018-19, India exported 27,253 tonnes of live and chilled items valued at 996.62 crore ($143.85 million).

Sea Cargo Manifest and Transshipment (Amendment) Regulations, 2019 effective from Today August 01 , 2019

NEW DELHI: The Sea Cargo Manifest and Transshipment (Amendment) Regulations, (SCMT) 2019, with the draft amendments to the regulations, have been published by the Director of Customs recently which comes into effect from today.
The details of the draft are as follows.
1. The implementation date of the SCMT remains 01st August 2019.
2. The SCMT regulation is applicable for all cargo to be discharged, loaded or transhipped at any India port & also for cargo transiting via any Indian port (FROB – Foreign cargo remaining on board).
3. It is expected that there would be a leeway of 45 days from the commencement of the SCMT to adopt to the new manifest filing requirements.
4. The current manifest filing forms IGM (Import General Manifest) & EGM (Export General Manifest) need to be continued for a period of three months from the date of commencement of the SCMT.
5. It is expected that the timelines to be adhered for (4) will be as per the new SCMT regulation requirements:
 Arrival Manifest - Import Manifest is now required to be submitted to India customs prior to the departure of the vessel from the last port of call.
Departure Manifest - Export manifest is now required to be submitted to customs prior to the departure/sailing of the vessel from any Port of Loading in India

Shipping Ministry appoints committee to promote coastal shipping

The Ministry of Shipping has appointed a committee under the Chairmanship of the Additional Secretary (Shipping) to examine ways and means to promote coastal shipping in India, it is learnt. 

As per a communiqué, the committee will have as members the Director-General, DGS; Joint Secretary (Shipping), Joint Secretary (Sagarmala); Representative of INSA; Representative of CSLA; Representative of ICCSA; Managing Director, IPA; Representative of IPPTA and Representative of ADB.

The terms of reference of the committee will be to identify the issues impacting the competitiveness of coastal shipping, identify the commodities and routes where coastal shipping can be efficient and cost-effective, identify infrastructural problems at ports, suggest policy interventions, and finalise an action plan to boost coastal shipping. 

The committee has been asked to submit its report within three months of its constitution, said the communiqué.

Monday, July 29, 2019

Container Lines

At a time when the container shipping landscape is constantly evolving, and market dynamics present increasingly complex challenges for the shipping industry, the JOC provides up-to-the-minute news, analysis and business intelligence about the container lines that transport most of the world's trade including Maersk, COSCO, Hapag-Lloyd, CMA CGM, MOL, Yang Ming, Zim Integrated Shipping Services, and many others.
JOC’s comprehensive coverage ranges from the latest information about new shipping lines to major changes in company leadership, to in-depth analysis of the pricing and volume trends that directly impact shippers' bottom lines and supply chains. The consolidation of the container shipping sector has resulted in increasingly divergent strategies, with some firms focusing solely on ocean transport while others opt for a more "end-to-end" approach. The JOC’s comprehensive, in-depth coverage probes the consequences of these various strategies for shipping lines, shippers, and other stakeholders of container lines.

Sunday, July 28, 2019

Cargo Vessel Suffers Explosion, Fire off Kolkata

The 13,814 dwt general cargo vessel SSL Kolkata ignited on June 13 due to an explosion on the vessel’s deck, according to a statement from Shreyas Shipping and Logistics.
There were no reports of an oil spill in the area, according to the Indian Coast Guard, however, relevant parties are on stand-by in case an oil slick is spotted.
The incident did not result in any injuries to the ship’s crewmembers, who were safely evacuated from the vessel, the coast guard confirmed.

PM Modi plans Bhutan trip to boost regional link .

Bhutan is India’s closest neighbor and the PM’s visit is expected to give fillip to sub-regional cooperation, including connectivity. 
NEW DELHI: PM Modi is planning to visit Bhutan as part of his ‘neighbourhood first’ policy, with an eye on boosting regional connectivity through multi-modal transport system. 

Neighborhood continues to be a priority for Modi as he visited the Maldives and Sri Lanka on his maiden and second trip abroad, respectively, within two weeks of taking charge in his second term. Bhutan was his maiden destination after he was elected as the PM for the first time in 2014. 

Bhutan is India’ .. closest neighbour and the PM’s visit is expected to give fillip to sub-regional cooperation, including connectivity. 

Last week, Bhutan’s cargo was shipped for Bangladesh via an Indian river for the first time. One thousand metric tons of stones from Bhutan are being transported to Bangladesh using the Brahmaputra by ship MV AAI, which set sail from Dhubri in Assam on Friday. The Inland Waterways Authority of India’s ship will reach Narayanganj in Bangladesh with the Bhutanese cargo. The .. stones were transported by trucks from Phuentsholing in Bhutan to Dhubri. 

Transport of cargo through this route will cut short travel time by 8-10 days and reduce transportation cost 30%. 

India will seek to operationalise the Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement that also feeds into seven-member BIMSTEC grouping. Bhutan on its part has fended off Chinese pressure and desires status quo in Dokalam. 

Meanwhile, West Bengal CM Mamata Banerjee has suggested that India launch a dialogue with Bangladesh to discuss challenges posed by cross-border rivers. The West Bengal government is of the opinion that barrages on some common rivers in Bangladesh are impacting water flow in a drought season and it wants the Modi government to raise this issue with the Sheikh Hasina government. 







Thursday, July 25, 2019

BSCS Welcomes Indian Cruise Ship into Its Management

Bernhard Schulte Cruise Services (BSCS), part of Bernhard Schulte Shipmanagement, has been awarded technical management of Jalesh Cruises’ new vessel, MS Karnika, for India’s first dedicated domestic cruise operation.

The 70,285-ton, 2,000-passenger Crown Princess-class cruise ship, formerly known as Pacific Jewel, is currently undergoing refurbishment at Sembcorp Marine Admiralty Yard in Singapore.
Following the refurbishment, the 1990-built ship will enter service from Mumbai, India in mid-April 2019.

The Bahamas-flagged MS Karnika will operate cruises from India and Dubai for the duration of 2019, according to BSCS.

“We are very proud and excited to welcome this fine vessel into BSCS’ management, and being part of the first dedicated, domestic cruise operation on the Indian sub-continent and the Middle East,” Les Royle, BSCS Managing Director and Martin Springer, Deputy Managing Director, commented.
Jalesh Cruises, a brand of Jalesh Cruises Mauritius, is promoted by Amit Goenka of Essel Group, a multi-billion-dollar Indian conglomerate company, and has recently received a USD 10 million investment from a wholly-owned subsidiary of Delta Corp Limited.

Established in 2017, Bernhard Schulte Cruise Services expands the Schulte Group’s service offerings to the cruise industry.

About Contact Report your news Advertising Learn more volume is gedempt Sri Lanka, Japan, India to Jointly Develop Colombo South Port

Sri Lanka, Japan, and India have reached an agreement to cooperate on the development of Colombo South Port’s East Container Terminal (ECT) in Sri Lanka.

The governments of the respective countries signed a Memorandum of Cooperation (MoC) on the matter on May 28, reflecting the longstanding good will and cooperation among the parties.
Japan has provided cooperation for the development of the Jaya Container Terminal since the 1980’s, while around 70% of Colombo Port’s transshipment business is India-related.

Sunday, July 21, 2019

Shipping Industry & Ports in India


Last Updated: May, 2019
India has 12 major ports and about 200 non-major ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. In FY19 traffic has increased 2.90 per cent year-on-year to 699.05 million tonnes.  Cargo traffic at non-major ports was estimated at 281.0 million tonnes FY19P*.

Since ports handle almost 95 per cent of trade volumes in India, the rising trade has contributed significantly to the country’s cargo traffic. Capacity at major Indian ports reached 1,477 million tonnes by FY19P. Capacity at non-major ports is expected to reach 968 MMT in 2019 from 750 MMT in 2016. Given the positive outlook, proposed investments in major ports are expected to total US$ 18.6 billion by 2020, while those in non-major ports would be US$ 28.5 billion.
India’s total external trade1 grew to US$ 838.46 billion in FY19, implying a CAGR of 5.53 per cent since FY09. Merchandise exports during the year were US$ 331.02 billion while imports reached US$ 507.44 billion.

In November 2016, Ministry of Shipping has sanctioned sum of US$ 1.49 million to Gujarat Maritime Board for capacity building and safety training of workers involved in ship recycling activities under Sagarmala. The Government of India has finalised master plans for 142 capacity expansion projects worth Rs 91,434 crore (US$ 14.19 billion) under the Sagarmala programme. As of March 2018, projects worth Rs 1.85 lakh crore (US$ 28.70 billion) had been awarded under Sagarmala programme.

The Government of India has allowed foreign direct investment (FDI) of up to 100 per cent under the automatic route for projects related to the construction and maintenance of ports and harbours.  Ports sector in India has received a cumulative FDI of US$ 1.64 billion between April 2000 and December 2018. A 10-year tax holiday is extended to enterprises engaged in the business of developing, maintaining, and operating ports, inland waterways, and inland ports. The government has also initiated National Maritime Development Programme (NMDP), an initiative to develop the maritime sector with a planned outlay of US$ 11.8 billion.

Note 1 - Merchandise trade


‘It appears shipping is an unwanted industry in India’, says Great Eastern’s Bharat Sheth

The local shipping industry was caught off guard when the government recently amended the right of first refusal (RoFR) policy, giving top priority to ships built in India to avail the benefit in moving cargo for state-owned entities and removing the preference given to Indian flag vessels. Bharat Sheth, Deputy Chairman and Managing Director of Great Eastern Shipping, India’s biggest private ocean carrier, explains why he believes the change will not help the cause of Indian shipbuilding in a conversation with BusinessLine.
Has the policy change granting top priority to Indian-built ships while exercising the right of first refusal (RoFR) in public tenders rattled the industry?
This policy has come straight out of the blue.
It says that Indian built ships would get first priority in moving cargo for state-owned entities. I don’t think anybody in the local shipping industry has an issue with that except that it should be applied prospectively.
Why is prospective application of the policy so important?
The preamble of the policy is with a view to enhance future employment, income generation, etc. If the government now say that it wants to give preference to a ship which was built in India ten years ago, how is that going to help Indian shipbuilding?
Are there ships built in India that are still operational and can participate in tenders?
There are some smaller vessels, mainly in the offshore and dredging segments. There are even some bigger ships, but they are very few. You are coming out with a policy because the government says we want to support Make in India. Nobody is against that, but Make in India by definition is prospective, it can’t be retrospective. If you have built ten years ago, how is it going to create future generation of income or employment.
The way they have worded the policy of February 13, it does not say prospectively. Hence, ships that were built in India in the past would get priority, If you have built a ship ten years ago and it is trading in India or anywhere else in the world, it would be given top priority. You may not even have placed the order originally, but just happened to buy the ship in the second-hand market. How does that encourage future Make in India?
That aside, what is the big picture emerging from this policy change?
I think, first you have to ask yourself the question: in a world where there is significant surplus shipbuilding capacity, is this the right policy to follow?
India must play to its competitive strengths, what’s the point of playing to non-competitive strengths. Nobody seems to understand this fundamental point.
In an industry where top nations in the world have huge surplus capacity and that surplus capacity has led to some of the most prominent yards in the world going belly-up and the government has had to come in and bail them out.
Do you think that the intent is flawed?
People have got to think through. I’m sure there are certain areas where Make in India may make a lot of sense. When they brought in 5 per cent IGST on import of ships, the idea was to give a level-playing field and make it attractive to build ships in India. Has anybody built ships in India after that?
But, let us say the government in its wisdom still wants to do it; then do it prospectively. Nobody in the industry will say a ship built in India under such a policy should not get a level of priority.
As it is proposed with retrospective effect, the new policy will impair the shipping industry without helping the shipbuilding industry. So, net-net you are a loser. No benefit for yards, while destroying value in shipping.
Looks like Indian shipping is not a priority for the government…
To say that we don’t need an Indian shipping industry is just shocking. I can’t think of a single maritime nation with this volume of trade - we have got a billion tonne of trade a year roughly- taking such a position. Security is one big argument why every nation should have its own national fleet, but we are a trading nation and we don’t need to own ships? Countries like China, Korea and Japan are going all out to control more of their cargo through Free-on-Board (FOB) policy in order to build a national fleet.
It is often said that RoFR has led to higher freight rates?
By definition, RoFR is a Right of First Refusal. It means the Indian ship has to match the lowest rate quoted by a foreign owner in a tender. In matching, the Indian ship cannot be even one Cent more expensive. How can this result in higher freight rates? This is again a policy which helps the industry in India, at no extra cost to the customers. Who benefits from the removal of such a policy? No one. In fact, we have data to show that whenever there is no Indian ship participating in a tender, the foreign ship charged a higher rate.
And remember that when the Indian ship matches the RoFR, it is despite all the operational and regulatory disadvantages of the Indian flag.
The new policy also treats ships owned by Indians and those in-chartered by Indians equally…
You own a ship, employ Indians, pay taxes in India and somebody has in-chartered a foreign ship and both are treated equally. This is a ridiculous situation. You cannot treat ownership equal to in-chartering.
It will encourage foreign employment at the cost of Indian employment.
Every other country is tightening its regulations on foreign tonnage deployed on the coast. I can’t deploy my ship on the Chinese coast, China does about 800-900 mt of trade on the coast; our total trade is equivalent to China’s coastal trade, I can’t trade on the Chinese coast. However, any foreign flag ship can carry cargo on the Indian coast.
That’s how they build fleets. India is just not bothered. Everybody else is trying to bring in greater and greater restrictions. Instead of asking for reciprocity, we are going in the opposite direction – we are opening-up while other economies are shutting down market access.

Saturday, July 20, 2019

CMA CGM, Cosco and Hapag-Lloyd sign digital collaboration

Three of the world's biggest liner companies, along with a number of terminal operators, officially commit to Tradelens competitor GSBN. The collaboration is expected to take off next year.

Cosco is considering joining digital alliance

Cosco, the world's third-largest container liner, is considering joining the Digital Container Shipping Association, which was founded by Maersk, among others. The alliance is working to create common standards for the industry.

Slump in shipping industry leaves merchant navy officers rudderless

Merchant navy officers have been cast adrift is the result of the current slump in the shipping industry.

Kamal Wadhawan, 26, is a thin-faced lad from Delhi who can be seen most evenings at the Seaman's club in Bombay's salt-sprayed Ballard Estate playing billiards on the club's rundown table.
Three years ago, after graduating from Rajendra, the training ship for merchant navy officers, he served as a cadet on board a ship belonging to a reputed shipping company, passed his second mate's examination, and sailed with the company. After a year at sea, he asked for leave to get married.
On his return, however, he was told that his services had been terminated. Wadhawan took a loan from his wife to acquire a moped agency, hoping to pay it back with the Rs 50,000 his company owed him in arrears. But even after 17 reminders, the company failed to pay his dues. Wadhawan's marriage, barely half a year old, was on the rocks and the pair finally separated.
"The day I decided to join the merchant navy was the beginning of my troubles and there is no end to them."
Kamal Wadhawan, 26 unemployed
Today, Wadhawan is unemployed and cannot get a decent job because he is not a graduate and lives a hand to mouth existence on money borrowed from others. Says he bitterly: "The day I decided to join th

 

Thursday, July 18, 2019

New South-East India & Europe service announced


COSCO SHIPPING Lines has announced the launch of the IEX service between East India and North Europe from Vizag on October 26, 2019. The service, connecting four other ports in South-East India, will be operated in collaboration with Yang Ming (IEX), ONE (IO3), OOCL and Hapag-Lloyd, informed a release.

This service will provide direct callings between East India and North Europe and especially opens up new development opportunities for customers located in Vizag, Krishnapatnam and Tuticorin. Meanwhile, COSCO SHIPPING Lines will leverage the major hub of Piraeus to offer comprehensive coverage of the Black Sea and Adriatic, along with swift transit to Central Europe and the Balkans by Land-Sea Express service, the release said.

The service will comprise 9 x 6,500-TEU vessels operating on a fixed-day weekly rotation, as follows: Vizag – Krishnapatnam – Chennai – Tuticorin – Colombo – Cochin – Damietta – Piraeus – Rotterdam – London Gateway – Hamburg – Antwerp – Le Havre – Damietta – Jeddah – Colombo – Vizag

With this new launch, COSCO SHIPPING Lines will be able to significantly reinforce its East India and Europe offer, providing more unique coverage and diversified network to its valued customers, the release added.


Source : Exim News Service - Shanghai, July 18

Stranded Indian Ship 'Malaviya Twenty' Bankrupt, Put Up For Sale

Stranded Indian Ship 'Malaviya Twenty' Bankrupt, Put Up For Sale

Captain Nikesh Rastogi yesterday expressed relief at prospect of being able to return to his home and family in Mumbai once the sale process is completed.

India - Maldives Ferry Services Soon

The Indian Cabinet gave its approval ex post facto to the pact signed between India and the Maldives to start passenger and cargo services through the sea route.

The memorandum of understanding (MoU) was signed between India and Maldives on June 8, during the visit of Prime Minister Narendra Modi to the island country.

The MoU will pave the way for ferry services between the Maldives and India, said a statement from the ministry of shipping, India. The proposed ferry service would contribute in a big way to promote people to people contact and to boost bilateral trade.

Male, the capital of the Maldives and most populous city and Kulhudhuffushi, the third most populous city of Maldives are good prospects for introduction of ferry service from Kochi (India) for both tourists as well as cargo.

While Male is situated at a distance of 708 Kms from Kochi, Kulhudhuffushi is 509 Kms away. Kulhudhuffushi and the islands around are a major population center in the northern part of Maldives and have a large number of resorts which could be possible tourist destinations for Indians.

Present connectivity involves flights to Male and sea planes to the resorts, which is an expensive option. On the other hand, connectivity with Kochi through sea could promote inbound tourism, particularly health and wellness tourism for India. A large number of Maldivians also travel to Kerala and other South Indian cities for educational purposes.

With a view to harness the potential opportunity that lies in passenger and cargo transportation by sea between the two countries, this MoU with Maldives has been signed. The proposed ferry service would contribute in a big way to promote people to people contact and to boost bilateral trade.

MACN's Port Integrity Campaign in India

he Maritime Anti-Corruption Network (MACN) has announced the launch of a groundbreaking Port Integrity Campaign in India, with the support of the Government of India.

The global business network of over 110 companies working together to tackle corruption in the maritime industry said that the campaign, which aims to reduce and (in the long term) eliminate integrity issues and bottlenecks to trade during operations in Indian ports, is a collective action of MACN, the Government of India, international organizations, and local industry stakeholders.

The pilot of the campaign will take place in Mumbai ports (MbPT and JNPT) and will run until October this year.

 Key activities of the campaign include the implementation of integrity training for port officials and the establishment of clear escalation and reporting processes. Following the pilot, MACN aims to expand the program to other Indian ports.

Cecilia Müller Torbrand, Executive Director, MACN, says: “MACN’s experiences in locations including Nigeria, the Suez Canal, and Argentina show us that real change is possible when all parties are engaged. That’s why we are delighted to have the support of so many key stakeholders for this Campaign to improve the operating environment in Indian ports.”

The Port Integrity Campaign has been made possible by strong commitment from the Indian Government to work with the private sector and to address integrity issues in Indian ports.

The Ministry of Shipping, India, stated: “We are committed to ensuring that vessels calling port in India do not face unnecessary obstacles or illicit demands. Tackling these issues is good for the shipping industry, for port workers, and for India as a trade destination. We are pleased to be joining forces with MACN and other stakeholders to implement concrete actions with the potential for real impact.”

India Develops 111 Inland Waterways

The government of India has informed that 111 waterways are being developed in phased manner as National Waterways (NWs) in the country for the purpose of shipping and navigation.

The Minister of State for Shipping Mansukh Mandaviya that various initiatives have been taken by the Government to increase the use of Inland Waterways and Coastal Shipping for greater cargo shipment.

These include providing assured depth of water in the channels, navigation aids like GPS and River Information System, terminals at regular intervals, facilities for mechanized handling of cargo handling etc.

The Minister also informed that cargo transportation on waterways rose to 72.31 Million Tonnes in the year 2018-19, from 55.20 MT in 2016-17 and 55.03 MT in 2017-18.

According to government agencies, National Waterways are the cheapest mode of transporting goods as compared to other ways of freight transportation.

A minimum 40 % discount and priority in berthing is being given to coastal vessels at major ports. Ministry of Fertilizers and Department of Promotion of Industry and Internal Trade have respectively agreed to provide subsidy for transportation of fertilizers and for transportation of  raw materials and finished goods for new industrial units in North Eastern Region through IWT mode.

Licensing relaxations have been made under section 406 and 407 of the Merchant Shipping Act 1958 for fertilizers, agricultural products, fisheries, horticultural, and animal husbandry products, empty containers and containers being transshipped from another Indian port, special vessels such as Ro-Ro, Ro-Pax, Project cargo/ODC.

Allowing carriage of coastal containers through the territorial waters of Sri Lanka, Bangladesh and Myanmar and streamlining of mechanism for freight subsidy reimbursement for fertilizers are other steps taken in this direction.

Freight rates rise for oil refiners as insurers up cover on Hormuz route

Impact could be as high as $300,000 a day

India’s oil refiners sourcing crude from West Asia are facing freight increases of as much as $300,000 per day. This comes after global marine insurers imposed an additional war risk premium of 0.35-4 per cent of the value of the ship for every transit through the Strait of Hormuz — the world’s busiest oil shipping lane and the only channel for vessels to enter and exit the Persian Gulf — in the wake of the recent attacks on oil tankers.
The freight rates for an Arabian Gulf-to-India run for a modern Suezmaz tanker or a very large gas carrier (VLGC) have gone up by $150,000 to $300,000 per day because of the additional war risk premium on the ship’s hull and machinery levied by underwriters, said an executive with an Indian shipping company.
The extra premium for a modern very large crude carrier (VLCC) will be much more, and the freight rates will be higher to that extent, he added.
The additional premium is levied on ships by insurers for every transit through the Strait of Hormuz carrying crude oil for global refiners.
India imported 84 per cent of its crude requirement in FY19 and two of every three barrels were sourced from suppliers in West Asia, according to government data.
For a spot voyage, the ship-owner can choose to absorb the extra spend or pass it on to the customer, depending on the demand-and-supply scenario.
“Oil refiners have started asking ship-owners to quote an all-inclusive rate while finalising spot charters,” said an executive with another shipping firm. “Why should we absorb (the extra spend)? Besides, it’s a global impact,” he observed.
For a time-charter contract that is already running, the ship-owner will have to pay the extra premium and then get it reimbursed from the charterer.

Chevron war risk clause

“There is a Chevron war risk clause in every charter party, which says that any additional war risk premium during the currency of the voyage is to be borne by the charterer. At the time of chartering, it is on the ship-owner’s account, but during the currency of the voyage, the charterers are liable to pay any increase in premium,” he said.
Oil refiners are likely to reimburse the extra premium to ship-owners on submission of documentary evidence, an official with one of the state-run refiners said.
The freight rates for an Arabian Gulf-to-India run for a modern Suezmaz tanker have gone up by up to $300,000 a day

Ship design and testing facility to come up at IIT-Kharagpur in 3 years

IIT Kharagpur will have a ship design and testing facility which will enable India to test vessels within the country. At present, Indian shipyards go to Germany, the Netherlands, Russia and Belgium to test ships.
The full facility will be ready in three years and the investment can be recovered in the subsequent two years, Partha P Chakrabarti, Director, IIT-Kharagpur, said at a conference here on Wednesday.
The facility, set up in collaboration with the Shipping Ministry at a cost of 70 crore, will also design ships for shallow waters that can be powered by LNG and electricity. IIT-Kharagpur will be providing the space next to its present centre. After five years, the project will be self-sustaining, Chakrabarti said.
“The facility can be used not just by Indian shipyards, but also by shipyards outside India as well,” Mansukhlal Mandaviya, Minister of Shipping (Independent Charge), said.
The cost will be saved and recouped in several areas, explained Chakrabarti. For instance, the amount of money India spends in testing ships abroad — paid in dollars — is saved.
Revenue will be generated by providing the testing services, said Chakrabarti, adding that they expect IIT Kharagpur to develop an ecosystem for entrepreneurs.
Globally, European companies have also approached IIT-Kharagpur for collaboration. “We are speaking to German companies as they have the river Rhine which has similar characteristics like the Ganga in terms of depth,” he said, adding this can also be used to design autonomous ships.