India Shipping Industry

Shipping Industry Updates

In this issue:
Effects of Recession: Global slump strikes jarring note in Major Ports growth symphony Downturn stalls Port Pipavavs LNG terminal plan by a year Growth, Expansion and Developments: Krishnapatnam port on a record-breaking spree Tuticorin Port sets new loading records Mundra Port focuses on greenfield projects KASEZ issuing Form-I for developers to avail of CST waiver All-weather deep-water port coming up in Nagapattinam Real-time data likely to facilitate the shipping sector in India Pipavav Shipyards IPO cast-off on 16th September SICL sets new national 1day record in loading thermal coal at Vizag Port KPT to decide on price bids for 4 new berths today Suttons Group develops chemical drumming facility for global customers Gopalpur port waiting for the word go Allcargo Chennai handles 204 TEUs of LCL imports in August

Issue No 9 September 2009

Effects of Recession: Global slump strikes jarring note in Major Ports growth symphony Major Ports are still in the doldrums although the volume of cargo handled by them increased by some 1.2 per cent during April-July 2009-10, as per Indian Ports Association (IPA) figures for the period. This confirms the continued slump in export-import activities. Fiscal 2008-09 had posted a 2.1 per cent increase in cargo traffic and the peak increase of about 35 per cent was recorded in 2005-06. More Downturn stalls Port Pipavavs LNG terminal plan by a year The economic downturn has prompted Gujarat Pipavav Port Ltd (GPPL), a part of APM Terminals, to defer the proposed liquefied natural gas (LNG) terminal, it is learnt. The Company had signed an agreement earlier this year with the Mumbai-based Swan Energy to set up the terminal by 2012. Now, it may be delayed by a year, sources said. More

Growth, Expansion and Developments:

Krishnapatnam port on a record-breaking spree Krishnapatnam port sets new national record in single-day loading and vessel turnaround times despite not being fully-developed Krishnapatnam port, the private sector mega port coming up in the Nellore district in Andhra Pradesh, is already hitting the headlines. Even as it is still being developed in phases,

Mundra Port becomes 1st gateway in India to receive Panamax tanker Bharati Shipyard hikes stake in Great Offshore to 22.5% Alpha Vinimay wins contract to develop four new dry cargo berths at Kandla Port UKs 3i Group keen to invest in more port projects India to invest $18 bn. in ports over next 5-7-years Mundra Port consortium to build mechanical coal handling terminal at Mormugao Port Bharati seeks nod to raise borrowing limit Private port operators likely to be authorised to fix tariffs

this port on the East Coast is setting operational benchmarks. More Tuticorin Port sets new loading records Tuticorin Port has set a new record by handling 14,407 tonnes of ilmenite ore at Berth Number 8 on August 30, thereby surpassing the previous record of 11,907 tonnes handled by it on May 17, 2003, a Tuticorin Port Trust (TPT) release said. More Mundra Port focuses on greenfield projects Private port companies in India are keen on setting up greenfield projects in the country, which are eco-friendly, receives financial assistance from the government and are able to attract substantial foreign investments. More KASEZ issuing Form-I for developers to avail of CST waiver Kandla Special Economic Zone (KASEZ) has taken an important step in the implementation of a single-window mechanism by which developers will be issued Form-I to avail of the Central sales tax (CST) exemption. This is required under Section 26 (g) of SEZ Act, 2005 and Rule 32 of SEZ Rules, 2006. More All-weather deep-water port coming up in Nagapattinam The TN government has reportedly approved the development of a captive port and an all-weather deep-water port in Nagapattinam to be constructed by

International Updates: Baltic Dry Index sinks to 10-month nadir with Chinese ore demand dwindling Sharaf Shipping Agency joins hands with SEAL Security to provide unique cover against piracy Chinas reduction in iron ore import pulls down BDI Now, long sea voyages wont spoil refrigerated perishables! Ozone molecules deployed to rid mould, yeasts & bacteria APM TERMINALS bags global Port Operator of Year award 2 major AHTSV orders won by Colombo Dockyard MOL completes concept for series of newgeneration vessels NYK & Nippon Oil Corporation joint project MOL, Weathernews introduce real-time display system to monitor ship voyages

Tridem Port and Power Company, thereby opening up business opportunities for small players in the region. More

Real-time data likely to facilitate the shipping sector in India Shipping of cargoes and other essential commodities is going to become a smooth process for ship-owners and vessel companies in India with easy accessibility to continuous and real-time data, which was earlier not available in the country. More

Government and Actions:

Supports

Pipavav Shipyards IPO cast-off on 16th September Pipavav Shipyard, a private shipbuilding company, promoted by SKIL Infrastructure and Punj Lloyd, is aiming to raise up to Rs. 513 crore through an initial public offering (IPO). It has set the price band of its IPO at Rs. 55-60 per share. More SICL sets new national 1-day record in loading thermal coal at Vizag Port South India Corporation Ltd (SICL) established a national single-day stevedoring record at Visakhapatnam Port on September 10 by loading 28,008 tonnes of thermal coal on to the vessel Tamil Anna in west quay berth.

Govt. promoting e-linking of ports MoS permits commencement of Cochin-Colombo ferry service TAMP notification to benefit the maritime industry Shipping Ministry focusing on divestment and PPPs MoS to ensure non-stop dredging at Haldia Dock

Others: Shipping cos. preferring long-term deals despite better returns in spot markets Operational laxity frustrates ship-owners at KoPT KoPT cancels 20-year land lease deal with Navy Indian ports to face challenging year ahead, says report With surplus seen on shipowners dwindling rates capacity horizon, fear

More KPT to decide on price bids for 4 new berths today The Kandla Port Trust (KPT) Board will on Tuesday (September 15) decide on the price bids for the four new dry cargo berths to be constructed at an estimated cost of Rs. 755 crore. Three bidders have submitted price bids IMC Ltd, Alpha Vinimay and Mundra Export Ltd, an Adani group company. More Suttons Group develops chemical drumming facility for global customers Suttons Group has broadened the range of services available to its customers with the successful implementation of a chemical drumming facility at St.

MPSEZs AAT lifts the bar on car loading rate

ABGKCTL chosen for regular coastal box service by Jindal Vector Subdued crude prices pull down OSV rates VPT cuts wharfage charges by 10-20 pc Three Cheers for JNPT! Indian shippers seeking govt. protection in territorial waters New port projects remain at Environment Ministrys mercy Implementation of GST may trigger more outsourcing to 3PLs Sethusamudram Ship

Helens in UK. The facility, developed with an investment of 1.5 million to provide drumming, warehousing and despatch services for various

customers, will handle around 90,000 tonnes of products using the latest drum filling and handling technology to provide safe and effective operations round-the-year. More Gopalpur port waiting for the word go Gopalpur Ports Ltd (GPL) is confident of converting the small port in southern Orissa into an all-weather deepwater facility within 24 months, provided the environmental clearance is given this month, two years ahead of the stipulated timeframe. More

Canal project dredging hurdle

faces

Allcargo Chennai handles 204 TEUs of LCL imports in August Allcargo Global Logistics Ltd, one of the leading freight forwarders and the largest non-vessel operating common carriers (NVOCCs), handled 204 TEUs of import LCL consol boxes here during August. More Mundra Port becomes 1st gateway in India to receive Panamax tanker In a first for any exim gateway in the country, Mundra Port accommodated a Panamax-size tanker, m.t. Theresa Mediterranean, on September 11. The vessel has a DWT of 77,788, LOA of 229 metres and a draught of 14.8 metres. More Bharati Shipyard hikes stake in Great Offshore to 22.5% Bharati Shipyard raised its stake in Great Offshore to 22.5% by picking up 3% shares from the market, inching closer to the crucial 26% figure that will give the company a clear edge over rival ABG Shipyard ahead of their competing open offers, which are expected to open this month-end. More

Alpha Vinimay wins contract to develop four new dry cargo berths at Kandla Port The Kandla Port Trust (KPT) has reportedly decided to award the contract for constructing 4 new dry cargo berths at Tuna port to Alpha Vinimay, which is to be developed at an estimated cost of Rs. 755 crore. More UKs 3i Group keen to invest in more port projects Noticing immense opportunities in the cargo logistics in the country, the London-based private equity investor, 3i Group Plc, which has a $ 1.2-billion infrastructure fund for India, is planning to More invest in more port projects.

India to invest $18 bn. in ports over next 5-7-years India is likely to invest $18 billion in ports and over $4 billion in its shipbuilding industry in the next five-to-seven years, shipping industry players said at a meet here. Shipping Corporation of India's Chairman and Managing Director, S. Hajara, who spoke at the meet, said that shipping should be brought under the infrastructure ambit. More Mundra Port consortium to build mechanical coal handling terminal at Mormugao Port The Mormugao Port Trust (MPT) has signed a concession agreement with the Ahmedabad-based Mundra Port consortium for the development of a mechanised coal handling terminal at Berth No. 7 under the public-private partnership (PPP) model. More Bharati seeks nod to raise borrowing limit Private shipbuilder Bharati Shipyard is topping up its war chest in the battle to gain control of Great Offshore, Indias largest integrated offshore services provider. Bharati, which already has the approval to raise Rs. 5,000 crore through various instruments, is planning to seek shareholders nod to raise the borrowing limit to Rs. 7,000 crore. More

Private port operators likely to be authorised to fix tariffs The Indian Shipping Ministry has recommended the Union Government to give private port operators the liberty to fix tariff in 12 major ports in India, since it is aimed at bringing down port tariffs in the country. Private port operators in the country are in high spirits with the Government of India (GoI) mulling to grant them the permission to fix tariffs independently in 12 major ports. More

International Updates: Baltic Dry Index sinks to 10-month nadir with Chinese ore demand dwindling The Baltic Dry Index, a measure of shipping costs for commodities, posted its biggest monthly slide since October on plunging rentals for iron ore carriers. The drop is attributed to Chinas reluctance to import more iron ore following overcapacity in steel, cement and other industries. More Sharaf Shipping Agency joins hands with SEAL Security to provide unique cover against piracy Maritime piracy and terrorism has emerged as a formidable threat in the world, impacting negatively on the seaborne trade and commerce. With the modern-day grid-locking of international markets and the great dependence of global economies on steady supplies of energy, goods and merchandise, the recent upsurge in acts of piracy against commercial shipping off the Somalia coast is a matter of grave concern. More Chinas reduction in iron ore import pulls down BDI BDI has plunged by 28% in August, this financial year, which is the biggest monthly slide since October of the last financial year. Causing a major setback for the shipping companies in South-East Asia and the rest of the world, the Baltic Dry Index (BDI), an indicator of the cost of shipping of key commodities, has plunged terribly. More Now, long sea voyages wont spoil refrigerated perishables! Ozone molecules deployed to rid mould, yeasts & bacteria Purfresh - a provider of clean technologies that purify, protect and preserve food and waterhas unveiled a solution that it says makes ocean transit a more viable option than air freight for highly-sensitive produce shipped worldwide. More

APM TERMINALS bags global Port Operator of Year award APM Terminals worldwide has been acclaimed Port Operator of the Year by Lloyds List, an international magazine of repute in the maritime sector, at its Global Awards held here on September 8. "It is a very proud day for all of us who are part of APM Terminals," said Group CCO, Mr. Dick Mitchell, who accepted the award. More

2 major AHTSV orders won by Colombo Dockyard Colombo Dockyard PLC has secured a major contract to construct two 130 T BP anchor handling tug-cum-supply vessels (AHTSVs) priced at around Rs 7 billion, with the option for two more similar vessels. More

MOL completes concept for series of new-generation vessels Mitsui O.S.K. Lines (MOL) President, Mr Akimitsu Ashida, has announced that the company has formed the concept for its next-generation vessels, which will be a technically practical in the near future, by building on and refining technologies it has already developed and adopted. More NYK & Nippon Oil Corporation joint project The solar power-assisted vessel Auriga Leader (gross tonnage: 60,213 tons), which was jointly developed by NYK and Nippon Oil Corporation has completed seven months of voyages in its scheduled two-year experiment into how solar power can be used to assist with powering a vessel.

More

MOL, Weathernews introduce real-time display system to monitor ship voyages Mitsui O.S.K. Lines Ltd (MOL) President, Mr. Akimitsu Ashida, and Weathernews Inc. CEO, Mr. Chihito Kusabiraki, have announced the development of FMS Globe, a system that displays vessels operational status as well as marine and terrestrial weather, in real time. More

Governement Supports and Actions: Govt. promoting e-linking of ports The governments plan to increase the number of e-linked ports to 70 by end-2010 is likely to benefit exporters by bringing down transaction costs and improving communication between ports. A planned move by the Union government is likely to give the Indian exporters a huge boost. More

MoS permits commencement of Cochin-Colombo ferry service The Shipping Ministry gives a green signal to the passenger ferry service from Cochin to Colombo, thereby opening up business opportunities for private players at the Cochin port. The Ministry of Shipping (MoS) has given its nod to the proposal for commencing a ferry service between India and Sri Lanka, which was recently recommended at the South Asian Association for Regional Cooperation (SAARC) Transport Ministers conference. More

TAMP notification to benefit the maritime industry TAMP notifies sugar and pulses importers to vacate the godowns at major ports within 3 days of arrival to prevent hoarding of commodities, the failure of which will lead to imposition of heavy penalties. A recent notification issued by the Tariff Authority for Major Ports (TAMP) is expected to provide a respite to the 12 major ports in the country and the logistics service providers (LSPs) operating from these ports. More

Shipping Ministry focusing on divestment and PPPs Apart from signing 20 PPP port building projects, the Indian Shipping Ministry has recently approved DEAs recommendation to divest

government shares in Cochin Shipyard. The Indian Shipping Ministry is scouting all possible routes to raise money for developing the port and shipping sector in the country. More

MoS to ensure non-stop dredging at Haldia Dock The Shipping Ministry is making all efforts to ensure continuous dredging to maintain the draught at Haldia Dock, asserted the Shipping Minister, Mr. G.K. Vasan. "We are aware of the fact and are taking action on a warfooting. More

Others: Shipping cos. preferring long-term deals despite better returns in spot markets Despite signs of recovery in the tanker segment, the overall freight market continues to be volatile and shipping companies are preferring to deploy their vessels in the long-term contract market instead of the spot market. Earnings from shipping remain uncertain, as global economies are still grappling with the crisis.

More

Operational laxity frustrates ship-owners at KoPT Lack of proper coordination at the Kolkata Port Trust and HDC, coupled with complexities in the vessel logjam system, compel shipping companies to bear heavy demurrage price. Lack of proper coordination and laxity in cargo unloading operations at the Kolkata Port Trust (KoPT), the oldest port in India, and the Haldia Dock Complex (HDC) is jeopardising the cargo-handling business of several shipping firms.

More

KoPT cancels 20-year land lease deal with Navy The Kolkata Port Trust (KoPT) wants the Naval authorities to return about 50 acres of land at Haldia Dock which it had leased out some 20 years ago. KoPT contends the land has not been used so far for the purpose for which it was leased. It wants to create back-up facilities for its proposed riverfront jetty. More

Indian ports to face challenging year ahead, says report For a majority of Indian ports 2009-10 is going to be yet another challenging year, much like 2008-09. And if the situation continues the way it is, the cargo volumes anticipated in the XI Plan estimates may not materialise by 2011-12.

More

With surplus capacity seen on horizon, shipowners fear dwindling rates Several shipowners are reportedly anticipating shrinkage in freight rates over 12-18 months with surplus tonnage entering the market, and the dismal trade situation. Despite fears of huge cancellations, most shipyards went ahead constructing newbuildings because they were already at an advanced stage and wanted to complete the exercise.

More MPSEZs AAT lifts the bar on car loading rate Adani Automobile Terminal (AAT) at Mundra Port and Special Economic Zone (MPSEZ) has achieved a performance high by loading at the rate of 150 cars per hour on the vessel m.v. Hoegh Tokyo which sailed from the Port on September 5. More

ABGKCTL chosen for regular coastal box service by Jindal Vector The ABG Kandla Container Terminal Ltd (ABGKCTL), operated by ABG Group at Kandla Port, has once again proved to be a preferred facility for coastal movement, with Jindal Waterways Ltd. commencing a regular container service.

More

Subdued crude prices pull down OSV rates With global crude prices ruling low because of the meltdown, the charter rates of the offshore support vessels (OSVs) have plummetted by 50-60 per cent in the last 6-8 months. Oil exploration is the first area to be hit by falling prices

and demand due to the high costs and risks involved.

More

VPT cuts wharfage charges by 10-20 pc The Visakhapatnam Port Trust (VPT) has pruned its wharfage charges by 1020 per cent to attract cargo, which has of late started shifting to the nearby Gangavaram port. This charge is paid for using a wharf for handling goods.

More

Three Cheers for JNPT! The Jawaharlal Nehru Port Trust (JNPT), the premier container handling Port (which is also ranked 25th among the Top 30 World Container Ports), has bagged the coveted Indira Gandhi Rajbhasha Puraskar (2nd prize) for 200708.

More

Indian shippers seeking govt. protection in territorial waters Absence of any stringent rule by the Shipping Ministry is allowing foreign shippers to enter into Indian coasts, thereby posing stiff competition to their Indian counterparts. Chiefs of a number of Indian shipping companies recently met the Shipping Secretary APVN Sarma, requesting the Government of India (GoI) to provide them protection in the countrys territorial waters.

More New port projects remain at Environment Ministrys mercy The Environment Ministry has virtually blocked the Shipping Ministrys plan to modernise and expand 20 ports across the country by imposing a temporary freeze on all of them. The Shipping Minister, Mr. G. K.Vasan, had promised to award six projects under the National Maritime Development Programme (NMDP) within 100 days of taking charge.

More

Implementation of GST may trigger more outsourcing to 3PLs Even though more than 30% of logistics services in foreign nations are outsourced to third-party logistics (3PL) providers, the picture is quite different in India. At present, less than 10% of companies have outsourced their logistics services to 3PL providers.

More

Sethusamudram Ship Canal project faces dredging hurdle With DCI pulling out dredgers from the controversial Sethusamudram Ship Canal Project, several mid-sized vessel and ship operators are worried that their hope of reducing cost of operation for ferrying cargoes between eastern and western coasts in the country will not materialise.

More

Effects of Recession:

Global slump strikes jarring note in Major Ports growth symphony Exim News Service - 08 September, 2009

NEW DELHI: Major Ports are still in the doldrums although the volume of cargo handled by them increased by some 1.2 per cent during April-July 2009-10, as per Indian Ports Association (IPA) figures for the period. This confirms the continued slump in export-import activities. Fiscal 2008-09 had posted a 2.1 per cent increase in cargo traffic and the peak increase of about 35 per cent was recorded in 2005-06. The slow growth in traffic may hit the Ports capacity utilisation, which has been growing to 34 million tonnes, 24 million tonnes and 23 million tonnes capacity in the last three years. Containerised cargo traffic, which accounts for close to a fifth of total cargo handled, declined by 2.9 per cent and iron ore, which accounts for 17 per cent, dipped by 2 per cent. Other products that registered a fall include coking coal (-24.3 per cent) and finished fertiliser (-3.7 per cent), whose share in total trade was 5 per cent and 2 per cent, respectively.

However, petroleum, oil and lubricants (POL) products, accounting for close to a third of the total traffic, went up. While POL traffic rose by 2 per cent, raw fertilisers increased by 3 per cent, thermal coal by 20.4 per cent and other cargo by 8.9 per cent. The slump in cargo handled at Major Ports was not uniform. Traffic picked up in 6 of the 13 Major Ports, which together handled a little more than half the total. Three of the six Ports are on the East CoastKolkata, Paradip and Tuticorin and the remaining three on the West CoastNew Mangalore, Mormugao and Kandla. Paradip Port, which handles a tenth of all cargo, saw tonnage increase by almost 22.2 per cent. Kolkata Port also saw traffic pick up by 18.9 per cent. The Port registering the third-largest gain was Mormugao, which handles about 7 per cent of the national traffic, where volumes grew by 19 per cent. Tuticorin Port, accounting for less than 5 per cent of national cargo, saw volumes go up by a robust 11.8 per cent. Kandla, the numero uno Port, handling around 14 per cent of the national cargo, also saw volumes pick up by 4 per cent in the AprilJuly period. Paradip Ports sharp increase was mainly due to a rise in POL traffic, which increased almost six-fold.

Top Downturn stalls Port Pipavavs LNG terminal plan by a year Exim News Service - 24 September, 2009

MUMBAI: The economic downturn has prompted Gujarat Pipavav Port Ltd (GPPL), a part of APM Terminals, to defer the proposed liquefied natural gas (LNG) terminal, it is learnt. The Company had signed an agreement earlier this year with the Mumbai-based Swan Energy to set up the terminal by 2012. Now, it may be delayed by a year, sources said. The Company has 400 hectares of land and a considerable part of it has been reserved for the LNG project. According to an analyst, the country

needs about 170 mmscmd of gas, double the supply available. LNG is primarily used to transport natural gas. Once the terminal is set up, the company proposes to carry out the regasification and sell it to fertiliser and petrochemical companies in Gujarat through an extended pipeline.

Investments for the terminal are proposed to be made by Swan Energy, while Port Pipavav will be earning from the various charges it proposes to levy, including marine and handling fees. The company has not disclosed the investments required for the terminal. A total investment of Rs. 13,000 crore has been made in Port Pipavav so far. The country has two LNG terminals of about 8 mbtu capacity. These are in operation at Dahej and Hazira, both in Gujarat. Dahej has been set up by Petronet LNG and the Hazira terminal by Shell. A third LNG terminal is expected to be commissioned this year at Dabhol in Maharashtra. One more terminal is expected to come up at Kochi. These facilities are expected to benefit the fertiliser and petrochemical companies, which are primarily on the West Coast.

Top Growth, Expansion and Developments:

Krishnapatnam port on a record-breaking spree Shippingbiz360.com 01 September, 2009

KRISHNAPATNAM: Krishnapatnam port sets new national record in single-day loading and vessel turnaround times despite not being fully-developed Krishnapatnam port, the private sector mega port coming up in the Nellore district in Andhra Pradesh, is already hitting the headlines. Even as it is still being developed in phases, this port on the East Coast is setting operational benchmarks. It has already set a national record in single-day loading and crossed another milestone by turning around a Capesize vessel in just 48 hours. The port achieved both the landmarks during August 2009, when Capesize vessel MV Cape Santa Alegria berthed at the port. A record 50,380 tonne of iron ore was loaded into the vessel in about 24 hours by using the traditional handling system of shore cranes, breaking the earlier single-day loading record of 48,889 tonne. However, the new record was broken on the following day, when 50,870 tonne of iron ore was loaded. The port succeeded to turn around the vessel by loading 101,250 tonne of cargoes in just 48 hours. This is certainly a remarkable feat, especially because the port is still in a developing stage. With the port showing its capability of handling Capesize vessels, several exporters and importers are likely to be interested in availing the services provided by the Krishnapatnam port, said J Jacob, Executive Director of Century Shipyard, a mid-sized ships parts manufacturer in Cochin. Small and mid-sized logistics and shipping services companies operating from Krishnapatnam port are also optimistic of a bright future, in view of the record turnaround times achieved by the port. The prospects of the port look good. If it can continue to turn around vessels at such breakneck speed, it will be able to reduce freight costs, which will be highly beneficial for exporters and importers.

Therefore, the port can procure plenty of consignments in the coming days, which will consequently give a leg-up to the business of small entities like ours, said VS Murthy, Proprietor of Mercury Industrial and Investment Consultants, a small-scale shipping services consultancy firm in Hyderabad. After the expected completion of the ports construction by 2015-16, it will have an annual capacity of handling 200 million tonne (mt.) of cargoes.

Top

Tuticorin Port sets new loading records Exim News Service - 06 September, 2009

TUTICORIN: Tuticorin Port has set a new record by handling 14,407 tonnes of ilmenite ore at Berth Number 8 on August 30, thereby surpassing the previous record of 11,907 tonnes handled by it on May 17, 2003, a Tuticorin Port Trust (TPT) release said. Similarly, 15,890 tonnes of muriate of potash was handled in a single day, surpassing the previous record of 14,570 tonnes handled in December 2007.

Top

Mundra Port focuses on greenfield projects Shippingbiz360.com 09 September, 2009

Private port companies in India are keen on setting up greenfield projects in the country, which are ecofriendly, receives financial assistance from the government and are able to attract substantial foreign investments. Today when global port companies are adopting various measures to prevent the rapid pace of climate change, the Indian private port companies are also not keen to stay behind. Increasing number of leading private port players in the country are now focussing on setting up greenfield projects in the country. Industry experts believe that this is a new wave that has hit India, which is definitely going to build a positive image of the Indian port sector before the global companies.

Recently, Mundra Port and Special Economic Zone Ltd (MPSEZL), the Rs 39000 crore worth Adani Group-promoted company, has announced its plans to set up greenfield projects in the country. As a part of its plan, MPSEZL at the moment is evaluating the prospect of constructing such projects on the eastern coast along the Bay of Bengal. D. Sukumaran, MD of Masterstroke Freight Forwarders Private Limited, a mid-sized freight forwarding company in Chennai, says, Although very few private port companies are taking up greenfield projects in the country, in near future more and more companies would participate in such projects in a much broader scale. At present, only companies with huge financial strength are investing in such futuristic and eco-friendly projects.

According to Sanjay Malhotra, Director of BMS Shipping (India) Pvt. Ltd., a mid-sized shipping and forwarding company in New Delhi, Today greenfield projects are on the rise, almost in every sector. Since these projects follow environmental management system and environment impact assessment

(EIA), they receive special assistance from the government. Moreover, such projects attract global players, who are keen to invest in greenfield projects in India. Currently, MPSEZL is concentrating on building cargo-handling facilities and greenfield projects in the coastal areas of Orissa, Andhra Pradesh and Tamil Nadu under the under the Government of Indias public-private partnership (PPP) model.

Top

KASEZ issuing Form-I for developers to avail of CST waiver Exim News Service - 09 September, 2009

GANDHIDHAM: Kandla Special Economic Zone (KASEZ) has taken an important step in the implementation of a single-window mechanism by which developers will be issued Form-I to avail of the Central sales tax (CST) exemption. This is required under Section 26 (g) of SEZ Act, 2005 and Rule 32 of SEZ Rules, 2006. Form-I is being issued from KASEZ for the whole of Gujarat, in the absence of which developers of units in SEZs had to approach state government authorities to provide the necessary exemption. Another notable export promotion measure that KASEZ has implemented is the setting up of a grievance redressal committee, to facilitate speedy disposal of long-pending disputes. This forum will also provide suggestions on policy matters wherever necessary.

According to Dr. Maya Kem, Development Commissioner of KASEZ, this committee is expected to meet every fortnight and find solutions to the problems faced by entrepreneurs. Exports from KASEZ in the current fiscal up to August 31 were valued at Rs. 811 crore, which is lower than the corresponding period of 2008-09. This can be attributed to the economic slowdown, explains a KASEZ release. The eight functional SEZs in Gujarat have together contributed about Rs 34,000 crore to exports till August 2009, which are more than what were registered in the whole of 2008-09. Given the worldwide recession, these figures are remarkable, emphasises the release.

And with 14 more formally approved SEZs in various stages of development, exports from zones in Gujarat are all set to witness a massive surge in future. The success story of SEZs in Gujarat has not only given a boost to the national economy, but also improved the lives of people in the state, underscores the release.

Top

All-weather deep-water port coming up in Nagapattinam Shippingbiz360.com 09 September, 2009

The TN government has reportedly approved the development of a captive port and an all-weather deep-water port in Nagapattinam to be constructed by Tridem Port and Power Company, thereby opening up business opportunities for small players in the region. The private port sector in Tamil Nadu is set to receive a boost, with the state government reportedly having approved the development of a

captive port at Vettaikaran Iruppu village in Nagapattinam and a seafront limit of 3.2 km to establish an all-weather deep-water port in the same district. Construction works for both the projects are likely to commence in September 2009. The projects will be handled by Tridem Port and Power Company, which was incorporated as a special purpose vehicle (SPV) a couple of years ago. Tridem, which also proposes to develop a power plant in Tamil Nadu, intends to invest Rs 1,500 crore for the port project. The requisite amount will be raised through 30% equity and 70% debt. Considering that both the port and power project sites are well-connected by road and broad-gauge railway, it is likely to attract a number of investors, said CS Kumar, Proprietor of Akash Uni-Safe Equipment, a mid-sized fire extinguisher manufacturing firm in Chennai. Therefore, raising funds for the project should not be difficult, he added. The proposed all-weather deep-water port will have an annual cargo-handling capacity of 20 million tonne (mt) in the initial phase. This includes a daily coal-handling capacity of 40,000 tonne. Initially, 40,000 deadweight tonnage (DWT) coal vessels will be able to call at the port, which is expected to increase to 1,00,000 DWT vessels after completion of the second phase of the project. Private shipping and logistics service operators (LSPs), which are mostly small or midsized players, are looking forward to the development of the proposed port at Nagapattinam. This will come as a good business opportunity for us, which we look to capitalise upon. Small players like us need business on a regular basis to sustain ourselves, and this upcoming port may play a key role in doing that, said P Prabhu, Proprietor of Sealine Logistics India, a small-sized LSP in Tuticorin. However, some industry players are concerned by the fact that Nagapattinam was one of the places that was severely affected by the devastating tsunami in 2004.

Top

Real-time data likely to facilitate the shipping sector in India Shippingbiz360.com 11 September, 2009

Shipping of cargoes and other essential commodities is going to become a smooth process for shipowners and vessel companies in India with easy accessibility to continuous and real-time data, which was earlier not available in the country. With the help of these data, large as well as comparatively small-sized vessels, barges and ships can move safely near the ports without the constant fear of collision with other floating objects. Research analysts and marine scientists in the Indian National Centre for Ocean Information Service (INCOIS), which is an autonomous institute under the Ministry of Earth Sciences in Hyderabad, has made a major breakthrough by developing a hi-tech navigation system, which can provide crucial information to oil tankers, shipping companies and even fishermen about other moving and floating objects near the entry point of the port.

According to D. Sukumaran, MD of Masterstroke Freight Forwarders Private Limited, a mid-sized freight forwarding company in Chennai, Not only shipping companies, but also fishermen can take the advantage of INCOIS data to boost their business. Especially, the mid-sized shipping firms are likely to

benefit from this data immensely, since it is not always economically possible for such firms to implement such highly sophisticated navigation systems that come at a high price range. The latest innovation has already received accolades from the Maritime Boards of Gujarat, Maharashtra and Andaman & Nicobar Islands. These Maritime Boards have benefited immensely after using the wave height data by regulating vessel navigation. At the moment, INCOIS data is being used by shipping companies and fishermen in and around 80 minor port harbours along various coastlines within the country.

M. Suresh, Senior Manager of Eagle Maritime Private Limited, a mid-sized shipping company based in Chennai, says, Previously, large vessels were not given the permission to enter the minor ports, since the minor port authorities were not keen to take the risk that large vessels posed while entering such small ports. INCOIS has also set up a wave rider buoy network in collaboration with the National Institute of Oceanography (NIO) in Goa for real-time monitoring of wave and swell conditions.

Top Pipavav Shipyards IPO cast-off on 16th September Exim News Service - 13 September, 2009

MUMBAI: Pipavav Shipyard, a private shipbuilding company, promoted by SKIL Infrastructure and Punj Lloyd, is aiming to raise up to Rs. 513 crore through an initial public offering (IPO). It has set the price band of its IPO at Rs. 55-60 per share. Its issue to sell 85.5 million shares to investors opens on September 16 and closes three days later. Pipavav Shipyard has an order book of $ 920 million (Rs. 4,462 crore), including 12 offshore supply vessels from government-owned ONGC and an order for 22 dry bulk carriers from three European shipping companies.

"The company is renegotiating with the European clients for its bulk carrier orders and the value of the order book is likely to be rationalised according to the changed market conditions," the Vice-President, Mr. Bhavesh Gandhi, had said last week. The shipyard is being built with an investment of Rs. 3,000 crore in Gujarat. Of this, Rs. 2,086 crore has already been invested, with a part of the operation under way at the yard. The company proposes to use the IPO proceeds for construction of facilities for shipbuilding, etc.

Top

SICL sets new national 1-day record in loading thermal coal at Vizag Port Exim News Service - 13 September, 2009

VISAKHAPATNAM: South India Corporation Ltd (SICL) established a national single-day stevedoring record at Visakhapatnam Port on September 10 by loading 28,008 tonnes of thermal coal on to the vessel Tamil Anna in west quay berth. This surpasses the Ports earlier record of 24,098 tonnes of

thermal coal loaded on to m.v. APJ Akhil in January 2008. Incidentally, the loading was done manually. In 2008-09, SICL handled 3.44 million tonnes of thermal coal at this Port. In 2009-10, it expects to handle more than 3.5 million tonnes. Mr. Seeralan of SICL thanked the Port authorities, the shipping agent J.M. Baxi & Co., and others for extending their co-operation in achieving this national record.

Top

KPT to decide on price bids for 4 new berths today Exim News Service - 14 September, 2009

GANDHIDHAM: The Kandla Port Trust (KPT) Board will on Tuesday (September 15) decide on the price bids for the four new dry cargo berths to be constructed at an estimated cost of Rs. 755 crore. Three bidders have submitted price bidsIMC Ltd, Alpha Vinimay and Mundra Export Ltd, an Adani group company. These bids were opened on September 9, officials of KPT said. According to them, four new dry cargo berths will be constructed on build, operate and transfer (BOT) and revenue-sharing basis. These berths are expected to start operations by September 2011.

"We opened the price bids two days ago and the highest bidder is Alpha Vinimay. However, the Board will meet on September 15 to take a final decision on the matter and, subsequently, the contract will be awarded," a senior official of KPT said. Alpha Vinimay has proposed a revenue share of 31 per cent to KPT, while IMC and Mundra Export have offered 10 per cent and 8.7 per cent, respectively, it is learnt. "At present, there are 12 berths, and with four more, KPTs capacity will go up significantly," the official added. KPT had invited global tenders and shortlisted 10 firms after the Union government cleared the move to develop new berths. Nine of the 10 firms received request for qualification (RFQ) and later three companies finally submitted their price bids.

Top

Suttons Group develops chemical drumming facility for global customers Exim News Service - 15 September, 2009

MUMBAI: Suttons Group has broadened the range of services available to its customers with the successful implementation of a chemical drumming facility at St. Helens in UK. The facility, developed with an investment of 1.5 million to provide drumming, warehousing and despatch services for various customers, will handle around 90,000 tonnes of products using the latest drum filling and handling technology to provide safe and effective operations round-the-year. As with all Suttons operations, safety is of paramount importance and the installation uses the latest drum handling technology to reduce manual handling risks. Safety is further enhanced using dedicated extraction systems and enclosed automatic and semi-automatic drum filling operations.

The installation has an empty drum storage magazine capable of simultaneously handling 6 different

drum types and a total capacity of 1,584 drums. Two fully-automatic drum filling machines have been installed, each capable of filling 60 drums an hour, with an additional pallet filler capable of filling different size drums and intermediate bulk containers (IBCs). The Suttons operation currently handles 5 different product streams, which are delivered into the plant by dedicated Suttons road tankers. The majority of drums are exported to customers in Asia and in America. Filled drums can either be loaded directly into containers or diverted to an automatic palletiser for storage and subsequent despatch.

The operation has been designed to provide a "just-in-time" service to Ineos Chlor, minimising the need to hold large stocks whilst ensuring the high quality of the finished product. Commenting on this achievement of Suttons International, Mr. Sukumar Mehta, global Group President of Amfico Agencies Pvt. Ltd. (a K. B. Cooper Group company), which is the sole agent for Suttons International, and which has been handling all the ISO tank containers since 2001, said, "The combination of Suttons investment, drumming operation expertise and our excellent relationship with Indian chemical shippers will deliver a successful, high quality, safe and effective operation. In addition, we are also now looking at developing our drumming activities in other international markets." Suttons has 80 years of global experience in transport, storage and bulk logistics and is one of the UKs largest privately-owned specialist logistics companies. Its group headquarters is in Widnes. Suttons International has invested over 3.2 million in the current year by taking delivery of 200 (26,000-litre) baffled tanks, which will increase its share of business in China and India.

Top Gopalpur port waiting for the word go Exim News Service - 15 September, 2009

BHUBANESHWAR: Gopalpur Ports Ltd (GPL) is confident of converting the small port in southern Orissa into an all-weather deepwater facility within 24 months, provided the environmental clearance is given this month, two years ahead of the stipulated timeframe. The phase-II development of the port at Gopalpur will begin immediately thereafter, the GPL Managing Director, Mr. Mahimananda Mishra, said here. Mr. Mishra pointed out that GPL, consortium of Orissa Stevedores Ltd and Sara International Ltd, was able to start operations of the seasonal port within three months of getting clearance, as against the concessional agreement of 12 months. Though the expert committee of the Union Ministry of Environment and Forests recommended the issuance of environmental clearance in April 2009, a formal clearance is pending with the Orissa State Coastal Zone Managing Authority, he explained. Seventeen consultants of international repute were engaged to conduct studies and all statutory studies, investigations and engineering, duly vetted by IIT-Madras, were also completed, he added.

Top

Allcargo Chennai handles 204 TEUs of LCL imports in August Exim News Service - 16 September, 2009

CHENNAI: Allcargo Global Logistics Ltd, one of the leading freight forwarders and the largest nonvessel operating common carriers (NVOCCs), handled 204 TEUs of import LCL consol boxes here during August. With operations in 11 major centres in the South, viz., Chennai, Tuticorin, Cochin, Bangalore, Hyderabad, Tirupur, Karur, Salem, Coimbatore, Pondicherry and Vizag, Allcargo has carved out a niche for itself by providing better services to the trade. Allcargo is capable of handling the entire chain in the supply process, right from collecting the cargo from the shippers doorstep, aggregating LCL cargo, transporting it under bond, re-working it at cargo hubs and arranging its carriage to the final destination.

As for importers, the company caters to the delivery needs of its clients at various ICD locations through multi-city consolidation. Ms. Shantha Martin, All India CEO of Allcargo Global, expressed her gratitude to the trade and well-wishers for their support, which had enabled the company to face challenges with ease. Mr. Hareram, Regional Manager, Allcargo, South & East India, thanked the trade for its unstinted support and congratulated the Allcargo team for its unfailing efforts. Allcargo has emerged as a colossal entity offering various logistics services, cargo consolidation, export and import, LCL and FCL forwarding, terminal handling of over-dimensional cargo, container transportation logistics and equipment.

Top

Mundra Port becomes 1st gateway in India to receive Panamax tanker Exim News Service - 16 September, 2009

MUNDRA: In a first for any exim gateway in the country, Mundra Port accommodated a Panamax-size tanker, m.t. Theresa Mediterranean, on September 11. The vessel has a DWT of 77,788, LOA of 229 metres and a draught of 14.8 metres. This is yet another first for Mundra Port and a feather in its cap. m.t. Theresa Mediterranean carried a cargo of 36,202 tonnes of crude palm oil, 1,500 tonnes of RBD palmolein and 770 tonnes of crude palm kernel oil. The vessel loaded the oil cargo at Panjang in Indonesia on August 30. The receiver of the cargo was Adani Wilmar Ltd. (AWL). Unloading was done at rates up to 656 tonnes per hour. With the oilseed crop affected by lack of rains, imports are expected to increase. Strategists at AWL believe that they can achieve economies of scale by bringing in large parcels of vegetable oil. This was a trial shipment and certainly was well implemented. Mundra Port may be the only gateway to have the capability to handle such massive vessels, which are fully loaded, at least in the foreseeable future.

Port officials feel that bigger vessels laden with vegetable oil may call in the future. They expect to handle vegetable oils at over 1,000 tonnes per hour. Besides having adequate tank capacities, the Port also has a railway siding, which makes it convenient to transport the liquid cargo by BTVN rakes, or

tank containers, to other parts of the country.

Top

Bharati Shipyard hikes stake in Great Offshore to 22.5% The Economic Times - 17 September, 2009

MUMBAI: Bharati Shipyard raised its stake in Great Offshore to 22.5% by picking up 3% shares from the market, inching closer to the crucial 26% figure that will give the company a clear edge over rival ABG Shipyard ahead of their competing open offers, which are expected to open this month-end. Bharati Shipyard managing director PC Kapoor confirmed the development. The Mumbai-based ship builder acquired these shares at an average price of Rs. 558.8 per share, the highest price being Rs. 560. With this, the companys offer price for Great Offshore went up to Rs. 560, because if a company buys shares of the target company at a higher price during an open offer, the offer price will automatically go up to the new price.

The new offer price is 8% higher than the Rs. 520 a share offer by ABG Shipyard, which currently owns 8.28% in Great Offshore. The applications for open offers of Bharati and ABG are currently pending with market regulator Sebi. Bharati bought 11.2 lakh shares, including 2.23 lakh from Videocon Industries, for nearly Rs. 63 crore. Mr. Kapoor did not confirm the identity of the sellers. The transaction consolidates Bharatis position as its shareholding moved closer to the crucial 26% mark. Under the Indian laws, a shareholder with a 26% stake enjoys some important veto powers. Both ABG and Bharati make dry bulk carriers and offshore rigs and a controlling stake in Great Offshore will help them become integrated marine services companies offering services ranging from ship building to offshore drilling and logistics.

Bharati and ABG have been involved in a takeover battle since June this year to acquire Great Offshore. In June, ABG launched a hostile bid to acquire Great Offshore at Rs. 373 per share to outbid Bharatis offer at Rs. 344. Since then, both the parties have revised their offers several times. Great Offshore scrip closed at Rs. 565 on BSE on Wednesday, up almost 5% over the previous close. ABG Shipyard closed up at Rs. 265.15.

Top

Alpha Vinimay wins contract to develop four new dry cargo berths at Kandla Port Exim News Service - 17 September, 2009

GANDHIDHAM: The Kandla Port Trust (KPT) has reportedly decided to award the contract for constructing 4 new dry cargo berths at Tuna port to Alpha Vinimay, which is to be developed at an estimated cost of Rs. 755 crore. Three bidders were in the fray when the price bids were opened on September 9. The highest bidder was Alpha Vinimay which quoted Rs. 1,000 crore to develop the

jetties on a public-private partnership (PPP) basis. KPT is also understood to have decided to install two harbour cranes of 60 tonnes at an estimated cost of Rs. 40 crore at the berth. These 4 berths are expected to start operations by September 2011. At present, KPT has 12 berths and the new berths are expected to considerably boost the Ports handling capacity.

Top UKs 3i Group keen to invest in more port projects Exim News Service - 23 September, 2009

NEW DELHI: Noticing immense opportunities in the cargo logistics in the country, the London-based private equity investor, 3i Group Plc, which has a $ 1.2-billion infrastructure fund for India, is planning to invest in more port projects. Mr. Anil Ahuja, Managing Director of 3is India business and co-head of 3i Asia, however, declined to identify any port. "India is amazingly short on port capacity," he observed. 3i reportedly has already invested in the high-potential Krishnapatnam Port Co. on the East Coast and Mundra Port & Special Economic Zone Ltd in the West Coast. The government has forecast cargo traffic at seaports to almost double to one billion tonnes by March 2012. As much as 95 per cent of Indias global trade is routed by sea and the ports require $20 billion in five years, according to the Planning Commission. "Weve done two ports and our experience in both has been very good," Mr. Ahuja said. The 12 Major Ports in the country handled 530.4 million tonnes in 2008-09. He explained that 3i would make its next investment in a company that may be in the power, airports or roads business.

Top

India to invest $18 bn. in ports over next 5-7-years The Economic Times 24 September, 2009

MUMBAI: India is likely to invest $18 billion in ports and over $4 billion in its shipbuilding industry in the next five-to-seven years, shipping industry players said at a meet here. Shipping Corporation of India's Chairman and Managing Director, S. Hajara, who spoke at the meet, said that shipping should be brought under the infrastructure ambit. He called for a relaxation in the present cabotage law to allow shipping into the infrastructure sector. Cabotage is the transport of goods or passengers between two points in the same country. Originally starting with shipping, cabotage now also covers aviation, railways and road transport. Cabotage is described as trade or navigation in coastal waters, or, the exclusive right of a country to operate the air traffic within its territory. The national tonnage should be encouraged so as to increase exports, he said, adding that there should be support from the Government in making available funds at low interest rates in order to encourage the Indian shipbuilding industry. Presently, international players are given loans at lower interest rates in their countries whereas for Indian firms here, the rates are between 8-13 per cent, he said. There was a need to

provide incentives to Indian ship-builders, he added.

Top

Mundra Port consortium to build mechanical coal handling terminal at Mormugao Port Exim News Service - 24 September, 2009

MORMUGAO: The Mormugao Port Trust (MPT) has signed a concession agreement with the Ahmedabad-based Mundra Port consortium for the development of a mechanised coal handling terminal at Berth No. 7 under the public-private partnership (PPP) model. This was disclosed by the MPT Chairman, Mr. Praveen Agarwal, in a press release. The agreement was signed by Mr. Agarwal and the Director of MPSEZ Ltd and Adani Mormugao Port Terminal Ltd (AMPTL), Mr. R. R. Sinha, at the MPT Office, Headland, Goa, in the presence of the Deputy Chairman of MPT, Mr. P. C. Parida, the Chief Mechanical Engineer, Mr K.C. Kuncheria and the CEO (Projects), AMPTL, Mr. A.M. Uplenchwar. The project, to be developed on a design, build, finance, operate and transfer (DBFOT) basis under PPP model, will give MPT a revenue share of 20 per cent, which works out to roughly Rs. 40 crore a year. MPT has kept its commitment by awarding the contract as announced by the Union Minister of Shipping in his 100-day UPA agenda. IL&FS Maritime Infrastructure Company Ltd, Mumbai, and Punj Lloyd Ltd., Gurgaon, had offered the second-highest revenue share of 14.7 per cent.

Mr. Agarwal said the new terminal, which would be able to accommodate vessels of up to 1,20,000DWT, would double the Ports coal handling capacity. MPT handles 5.5 million tonnes of coal imports at present from South Africa, Australia and Indonesia, 4.5 to 5 million tonnes of which go to Karnataka, .5 million tonnes are consumed in Goa and the balance 5 million tonnes are despatched to Maharashtra. There have been inquiries to enhance the Ports coal imports from a new mega thermal power plant planned for the Bijapur area and steel industries in Sindhdurg, which makes MPT confident of garnering big business for the new coal terminal, Mr. Agarwal said. The problem of pollution due to manual handling of coal at Berth Nos. 10 and 11 was a source of serious concern for the citizens of Vasco, Mr. Agarwal said. The terminal at Berth No. 7 had been devised to minimise the pollution and would be designed to the highest environmental standards with state-of-the-art dust suppression systems, Mr. Agarwal explained.

Mormugao Port has already obtained environmental clearance from the Union Ministry of Environment and Forests and a no objection certificate (NoC) from the Goa State Pollution Control Board. Now, 96,000 sq. metres of land and water area would be handed over to the Mundra-Adani consortium for development. The Rs. 252-crore project, the construction of which will begin in early 2010, would become operational by March 2013, the MPT Chairman added. MPT is also spending Rs. 52 crore to revamp its internal rail network, and South Western Railway has finalised the project for doubling the Hospet-Vasco line which would serve the Karnataka hinterland. The Konkan Railways Cansaulim-

Majorda bypass in Goa will give the KRC line access to Vasco and serve port connectivity to Maharashtra and possibly Gujarat as well, Mr. Agarwal revealed.

Top

Bharati seeks nod to raise borrowing limit The Economic Times - 28 September, 2009

MUMBAI: Private shipbuilder Bharati Shipyard is topping up its war chest in the battle to gain control of Great Offshore, Indias largest integrated offshore services provider. Bharati, which already has the approval to raise Rs. 5,000 crore through various instruments, is planning to seek shareholders nod to raise the borrowing limit to Rs. 7,000 crore. Bharati is locked in a takeover battle with Indias largest private shipbuilder ABG Shipyard to get control of Great Offshore. The growing financial requirements of the company necessitate an upward revision of this limit of Rs. 5,000 crore. The board thought it prudent to raise this limit up to Rs. 7,000 crore, Bharati Shipyard said in a note to its shareholders. Bharati had Rs. 1000 crore debt in its book at the end of March 31, 2009 while its net worth during the period was Rs. 702 crore. This translates into a debt equity ratio of 1.5, which is considered moderate. On the asset side, the company reported total current assets of Rs. 2000 crore at the end of FY09.

Top

Private port operators likely to be authorised to fix tariffs Shippingbiz360.com 29 September, 2009

The Indian Shipping Ministry has recommended the Union Government to give private port operators the liberty to fix tariff in 12 major ports in India, since it is aimed at bringing down port tariffs in the country. Private port operators in the country are in high spirits with the Government of India (GoI) mulling to grant them the permission to fix tariffs independently in 12 major ports. While considering a recent proposal from the Indian Shipping Ministry, the government has said that if private port operators are allowed to decide tariffs in the major ports, it would help in bringing down the overall tariff. If the Shipping Ministrys proposal gets the final approval from GoI, it would give the private operators the liberty to fix tariffs in various port-related activities such as cargo and container handling and documentation based on the demand and supply factors.

At present, the Tariff Authority for Major Ports (TAMP), the chief port regulatory body in India, is endowed with the task to fix tariffs for all activities in all the 12 major ports in India. According to Sanjay Malhotra, Director of BMS Shipping (India) Pvt. Ltd., a mid-sized shipping and forwarding company in New Delhi, Keeping in mind the current condition prevailing in the port and shipping industry, this is a right decision taken by GoI. This will intensify competition among port operators, which in turn will help to reduce tariff and benefit shipping companies. In this context, it needs to be mentioned that GoI is planning to de-link TAMP from port tariff in the future. Since in most other countries, tariff is fixed

considering the market dynamics, GoI should also walk in the same path to ensure that shipping companies do not feel the pressure of paying different tariff in different ports within the country, says, Vishal Patel, Proprietor of Xpress Shipping & Logistics, a small-scale logistics company in Ahmedabad. Apart from recommending private port operators the right to fix tariff, the Shipping Ministry is also expected to propose the government to restructure and strengthen the port regulator.

Top International Updates:

Baltic Dry Index sinks to 10-month nadir with Chinese ore demand dwindling Exim News Service - 01 September, 2009

LONDON: The Baltic Dry Index, a measure of shipping costs for commodities, posted its biggest monthly slide since October on plunging rentals for iron ore carriers. The drop is attributed to Chinas reluctance to import more iron ore following overcapacity in steel, cement and other industries. Iron ore to make steel is the biggest single dry bulk commodity hauled at sea, accounting for 25 per cent of the total in the second quarter of 2009, according to Drewry Shipping Consultants. "The Chinese are trying to reduce stockpiles," said one observer. The index tracking transport costs on international trade routes fell by 4 points, or 0.2 per cent, to 2,421 points on August 28, for a 1.9 per cent retreat, according to the Baltic Exchange. It dropped by 28 per cent in August, the biggest monthly decline in 10 months. Vessels are being delivered into the fleet, the observer noted. A greater ship supply would force rates down without any increase in demand.

The global dry bulk fleet will expand by 14 per cent to 492.8 million DWT this year, according to Drewry estimates that exclude scrapping, cancelled orders and delays. Daily rents for Capesize ships that typically haul iron ore and coal slid by 35 per cent to $37,865 a day in August. Smaller Panamaxes that compete for the cargoes and also carry grains dropped 32 per cent to $17,303 a day. In a related development, the cost of shipping oil from Middle East to Asia, the worlds busiest route for supertankers, slumped for a seventh consecutive session in London as too many vessels competed for cargoes. Rental income on the benchmark Saudi Arabia-to-Japan route fell by 3 per cent to 30.78 Worldscale points, according to the Baltic Exchange. Thats a 20 per cent drop for the week. Income from the voyage after fuel costs slid 45 per cent to $1,302 a day, the lowest for data going back to July 16, 2008.

Top

Sharaf Shipping Agency joins hands with SEAL Security to provide unique cover against piracy Exim News Service - 06 September, 2009

DUBAI: Maritime piracy and terrorism has emerged as a formidable threat in the world, impacting

negatively on the seaborne trade and commerce. With the modern-day grid-locking of international markets and the great dependence of global economies on steady supplies of energy, goods and merchandise, the recent upsurge in acts of piracy against commercial shipping off the Somalia coast is a matter of grave concern. Continuing with the Sharaf Shipping Agency (SSA) tradition of providing proactive and cost-efficient services to the maritime community for more than 3 decades, SSA has joined hands with SEAL Security Solutions to provide professional and protective security solutions for vessels transiting through the Gulf of Aden. The alliance between Sharaf Shipping and SEAL Security brings together the resources, expertise and reach of Sharaf Shipping with SEAL Security, a US-based company which provides customised security solutions to a broad spectrum of industries working in hostile and difficult environments.

The core features of the service are: a highly-trained security team comprising 6 men and 4 assault dogs, round-the-clock observers (1 HIGH and 1 LOW) using advanced optics and technology, 24-hour patrol team on deck and a tactical leader in radio communication with all personnel. The emphasis is on avoidance and prevention of boarding by pirates. The services include training of the crew on safety and lock-down procedures in the event of an attack, full co-ordination with the Master of the vessel to take preventive measures on sighting of pirates and coordination with international and Coalition Maritime Task Forces. The security teams are available for embarking/disembarking at the strategic locations of Fujairah, Salalah, Djibouti, Red Sea ports and Egypt. Ensuring complete peace of mind and instilling in its principals the confidence required to carry out any logistics operation through the piracyaffected areas are the main objectives of this unique service.

Top Chinas reduction in iron ore import pulls down BDI Shippingbiz360.com 07 September, 2009

BDI has plunged by 28% in August, this financial year, which is the biggest monthly slide since October of the last financial year. Causing a major setback for the shipping companies in South-East Asia and the rest of the world, the Baltic Dry Index (BDI), an indicator of the cost of shipping of key commodities, has plunged terribly. The BDI has crashed by 28% in August 2009, thereby once again dismantling the slowly growing confidence in South-East Asia. The current fall in BDI is expected to be the biggest monthly slide since October of the last financial year. According to analysts and leaders in the shipping industry, this fall is attributed to Chinas sudden decision to reduce the import of iron ore. However, China has said in a declaration that it had to stop the import of iron ore because some of its core industries such as steel and cement have no demand for the same at present. In the recent past, China had imported substantial amount of iron ore, which had given a decisive push to the BDI.

According to Drewry Shipping Consultants, a London-based independent port and shipping consulting and publishing firm, iron ore used for making steel has accounted for 25% of the total single dry bulk commodity transported via sea in the second quarter of 2009. On this issue, Anand Paranjape, MD of

Exim Management Services, a Pune-based export import consultancy firm, comments, Influential maritime nations in South-East Asia should understand the vulnerability of the current situation before taking any drastic decisions that may have a tumultuous effect on the maritime business and also on the economy of this region. On a similar note, M. Suresh, Senior Manager in a Chennai-based midsized shipping company, Eagle Maritime Private Limited, says, In this current economic scenario, the global leaders of maritime nations in Asia or across the world has to play a defining role in taking decisions that is beneficial for all industries, including shipping. According to the BDI, the index tracking transport costs on global trade routes fell by 4 points to 2,421 points on August 28, 2009.

Top Now, long sea voyages wont spoil refrigerated perishables! Ozone molecules deployed to rid mould, yeasts & bacteria Exim News Service - 08 September, 2009

CALIFORNIA: Purfresh - a provider of clean technologies that purify, protect and preserve food and waterhas unveiled a solution that it says makes ocean transit a more viable option than air freight for highly-sensitive produce shipped worldwide. Purfresh Transport, based in Fremont here, provides ripening control with 100 per cent residue-free decay prevention. The key is deploying ozone molecules that kill mould, yeasts and bacteria without affecting the natural characteristics of the produce, explained a company statement. The company claimed studies and trial results on mangoes, papayas, ginger and cherries "show significant decreases in mould and decay and an overall increase in quality, including fruit pressure, weight and sugar content." The company says it monitors and manages the environment inside a refrigerated container throughout long ocean voyages to enable fruit and vegetables to arrive fresh at the destination.

"Shippers used to have to rely on costly high-speed liners and air transport to maintain freshness over long distances. Now, they can avoid rigid delivery timelines and expensive transport while ensuring safety and quality," explained Purfreshs CEO, Mr. David Cope.

Top APM TERMINALS bags global Port Operator of Year award Exim News Service - 10 September, 2009 LONDON: APM Terminals worldwide has been acclaimed Port Operator of the Year by Lloyds List, an international magazine of repute in the maritime sector, at its Global Awards held here on September 8. "It is a very proud day for all of us who are part of APM Terminals," said Group CCO, Mr. Dick Mitchell, who accepted the award. "In a very difficult global economic environment which has affected our industry quite harshly, we are still able to provide our customers with the highest calibre of service. That is a true testimony of the teamwork and dedication of every member of our organisation", he said. The

APM Terminals senior management executives received the award at a glittering ceremony in the presence of customers, financial institutions and industry journalists. The Lloyds List judges selected APM Terminals based on how it continued to expand its portfolio of terminals at a time of tough economic conditions. Other nominees in contention for the Port Operator of the Year award were Philippine-based terminal operator International Container Terminal Service, Inc. (ICTSI), the Port of Valencia and VISET Malta. This is the second time that APM Terminals has bagged this award. Group company Maersk Line was the winner of the Safety at Sea award and Captain of the Year award went to Captain Richard Philips for his bravery on the Maersk Alabama. Port Pipavav is a subsidiary of APM Terminals in India. APM Terminals took over the management and operations of the Port in 2005. It has 54 per cent shareholding in the company and has invested Rs 1,100 crore to modernise the Port. The Port has been growing steadily in terms of output, customer reach and service capability. It is poised to become an important gateway port in North-West India.

Top

2 major AHTSV orders won by Colombo Dockyard Exim News Service - 15 September, 2009

COLOMBO: Colombo Dockyard PLC has secured a major contract to construct two 130 T BP anchor handling tug-cum-supply vessels (AHTSVs) priced at around Rs 7 billion, with the option for two more similar vessels. These vessels will be built for Singapore-based owners. The contract was signed here on September 2. This is the largest capacity vessel (bollard pull) that the Dockyard has contracted in its 35-year history. The vessel design has been developed by Moss Maritime AS of Norway, which has expertise and experience in designing vessels, platforms and floaters used by the offshore industry. The vessels are scheduled to be delivered at the end of June and September-end in 2011.

Top

MOL completes concept for series of new-generation vessels Exim News Service - 23 September, 2009 TOKYO: Mitsui O.S.K. Lines (MOL) President, Mr Akimitsu Ashida, has announced that the company has formed the concept for its next-generation vessels, which will be a technically practical in the near future, by building on and refining technologies it has already developed and adopted. The first is a next-generation, environment-friendly car carrier. MOL continues to work on concepts for other nextgeneration vessels such as ferries, bulkships, tankers and containerships. MOL has named the first concept car carrier ishin one, which stands for Innovations in Sustainability backed by Historically proven, integrated technologies. The features are as follows: While in port, and during loading and unloading: Achieve zero carbon dioxide (CO2) emissions. Further develops the use of renewable energy for conventional car carriers. Realises zero

emission goal by adopting large-capacity solar-power panels and rechargeable batteries. Under way: Reduce CO2 emissions by 50 per cent (Note) Adopts multiple new technologies to greatly reduce the vessel's burden on the environment. Note: The ship achieves a 41 per cent reduction, in comparison (per unit) to conventional vessels (PCTC with a capacity of 6,400 standard passenger cars). When needs for larger vessels arise in the future, CO2 emissions can be reduced by 50 per cent on that assumption.

Top

NYK & Nippon Oil Corporation joint project Exim News Service - 23 September, 2009

TOKYO: The solar power-assisted vessel Auriga Leader (gross tonnage: 60,213 tons), which was jointly developed by NYK and Nippon Oil Corporation has completed seven months of voyages in its scheduled two-year experiment into how solar power can be used to assist with powering a vessel. Auriga Leader set out on its maiden voyage on December 19, 2008, and completed its fourth voyage on July 13, 2009, a total of 207 days. By the end of the fourth voyage, the solar-panel system had been operated for a total of 2,600 hours and had generated 32,300 kilowatt-hours of electricity, equivalent to seven months of electricity used by 17 households in Japan. The amount generated surprisingly turned out to be about 1.4 times more than that generated on land in Tokyo. Further research is needed to determine the exact reason, but the stronger sunlight caused by the high sun altitude and more daylight are thought to have played a part. Moreover, the wind the vessel encountered cooled the system, thus improving generating efficiency. As initially anticipated, solar power was able to provide 0.05 per cent of the ships propulsion power and 1 per cent of the electricity used on the vessel, such as for pumps and lights. This change will reduce fuel per year by an estimated 13 tons (14 kiloliters) and the carbon dioxide resultantly produced by approximately 40 tons. Another purpose of this project is to verify the endurance of solar panels in the harsh conditions of actual navigation. Through the four voyages, the vessel encountered rough conditionssuch as three straight hours of rain and lightning, 20 straight hours of strong wind (about 20 metres/second), and 48 straight hours of waves 3-4 metres highbut the system continued to operate well.

Top

MOL, Weathernews introduce real-time display system to monitor ship voyages Exim News Service - 29 September, 2009

TOKYO: Mitsui O.S.K. Lines Ltd (MOL) President, Mr. Akimitsu Ashida, and Weathernews Inc. CEO, Mr. Chihito Kusabiraki, have announced the development of FMS Globe, a system that displays

vessels operational status as well as marine and terrestrial weather, in real time. FMS Globe stands for Fleet Management System (ship management system), and Globe (the earth). Weathernews cooperates fully with MOL to ensure the safe management of MOL-operated vessels. The FMS Globe is placed in the reception area on the seventh floor of the MOL Head Office at Minato-ku here. This is the first such comprehensive system introduced in Japan. It stands as a symbol of MOLs commitment to safe operation which is the highest priority for the entire MOL Group, and visually conveys a message of both companies approach to safety management.

The FMS Globe takes various data from the FMS.SAFETY, the system used to manage the operation of all vessels at MOLs Safe Operation Support Centre. It provides real-time displays of the positions of all vessels and the latest global weather information that can affect ship operation, including atmospheric pressure, typhoons, tidal currents, seawater temperature, and clouds. The Safety Operation Support Centre was set up to provide 24/7 support for MOL-operated vessels in February 2007. Weathernews has supported MOL vessel operation over the years, and assisted in the startup and operation of the center with the Total Fleet Management Service (TFMS) to support safe vessel operation of all vessels at sea and in port.

Top

Government Supports and Actions:

Govt. promoting e-linking of ports Shippingbiz360.com 02 September, 2009 The governments plan to increase the number of e-linked ports to 70 by end-2010 is likely to benefit exporters by bringing down transaction costs and improving communication between ports. A planned move by the Union government is likely to give the Indian exporters a huge boost. The government intends to increase the number of electronically linked ports in the country from the current 34 to 70 by the end of 2010. This move is expected to help exporters bring down transaction costs and thereby increase their profits. The electronic linking will ensure setting up of electronic systems such as electronic data interchange (EDI) at ports and electronic message exchange (EME) between Customs and the Directorate-General of Foreign Trade (DGFT). The DGFT is in the process of connecting ports and various coastal locations to make them EDI-enabled and thereby facilitate e-trade. To be globally competitive, there is a need for more technological upgradation. The governments plans are in the right direction, as the move will not only ease communication between ports, but also make transactions smoother and more cost-effective for exporters, said RBA Kumar, GM of PL Shipping and Logistics, a mid-sized shipping and logistics solutions provider in New Delhi. Usually, exporters have to deal with various agencies while delivering their goods to foreign shores. In this process, their consignments are always at the risk of being delayed. Besides, it involves substantial transaction costs.

If more ports are e-linked, there would be multiple benefits for exporters. It will ensure faster movement of cargoes, simplified procedures for documentation and online approvals. These factors will collectively help reduce transaction costs of exporters. Given the prospective benefits of ports being e-linked, more exporters are expected to avail the port services in the coming days, which will consequently help small logistics firms engaged in cargo-handling like us to get more consignments, said S Singh, Proprietor of Geologistics, a small-sized logistics services company in Ahmedabad. A step-up in the number of consignments will ensure more revenue generation for the logistics players, which is particularly a prime requirement for small players in this segment.

Top

MoS permits commencement of Cochin-Colombo ferry service Shippingbiz360.com 03 September, 2009

The Shipping Ministry gives a green signal to the passenger ferry service from Cochin to Colombo, thereby opening up business opportunities for private players at the Cochin port. The Ministry of Shipping (MoS) has given its nod to the proposal for commencing a ferry service between India and Sri Lanka, which was recently recommended at the South Asian Association for Regional Cooperation (SAARC) Transport Ministers conference. The proposed ferry service will connect Cochin in India with Colombo in Sri Lanka. The Ministry is keen to see this service start at the earliest, and has been enquiring about the facilities provided at the Cochin port, such as immigration and Customs. The proposal for the ferry service has been accepted by the Ministry of Home Affairs, but it will give its green signal for the service to start only after examining the security arrangements at the port.

The proposed service is meant for ferrying passengers only. Since the Shipping Corporation of India (SCI) does not operate vessels for this purpose, it is likely to invite expressions of interest (EoIs) from private players to assume responsibility for the service. The commencement of the Cochin-Colombo ferry service is expected to come as a huge boost to the water transport operators in Cochin. We expect that the service will draw heavy public demand. Therefore, the requirement for ferries will also be high. In such an event, small players like us providing boat and ferry services can hope to make substantial profit out of this venture, said HN Nikesh, Proprietor of KVP Shipping Agencies, a smallsized shipping services company in Cochin. Considering that majority of the water transport operators functioning from the Cochin port are small or mid-sized entities, a step-up in margins will be immensely helpful for them. If more revenues come in, we will be able to consolidate our business and also look to expand it, said KV Sandeep, Proprietor of Aaron Shipping, a small-sized marine transport company in Cochin. Given that the government is planning to start a ferry service from Tuticorin as well, the small water transport operators prospects of expanding business look bright.

Top

TAMP notification to benefit the maritime industry Shippingbiz360.com 15 September, 2009

TAMP notifies sugar and pulses importers to vacate the godowns at major ports within 3 days of arrival to prevent hoarding of commodities, the failure of which will lead to imposition of heavy penalties. A recent notification issued by the Tariff Authority for Major Ports (TAMP) is expected to provide a respite to the 12 major ports in the country and the logistics service providers (LSPs) operating from these ports. In a bid to prevent hoarding of essential commodities at major ports, the TAMP has asked sugar and pulses importers to vacate the godowns at these ports within 3 days of their arrival. The tariff regulators notification further specifies that importers who fail to empty the godowns within the maximum permissible time will have to pay a high storage fee. If it extends for 4-10 days, the charges to be levied for the first 3 days will become double. Further, the charges will become treble for 11-20 days and four times for 21-30 days. If the goods are not removed within 30 days, it will be ceased, even after the payment of fines. This tough stance undertaken by the TAMP was essential for the maritime industry. With several importers keeping their goods in the ports godowns, the operations of the ports get hampered. When fresh cargoes arrive, ports are left with a space crunch to accommodate the goods, said RD Bhargawa, CMD of Avignon Shipping Company, a mid-sized custom house agent in Pune. With importers unwilling to remove their goods from the ports, LSPs engaged in cargo-handling are also suffering. They are unable to take up fresh consignments, as the lack of space at the port premises affects their operations as well. In the absence of new consignments, our business is suffering. Our revenue generation has slowed down, which is hurting small players like us in particular, said M. Jayachandran, Proprietor of Movar International, a small-scale LSP in Indore. Considering that the small logistics firms operate on paper-thin margins, even a slight dip in business can hit them badly. Therefore, the TAMPs decision is especially significant from the perspective of the small LSPs.

Top

Shipping Ministry focusing on divestment and PPPs Shippingbiz360.com 22 September, 2009

Apart from signing 20 PPP port building projects, the Indian Shipping Ministry has recently approved DEAs recommendation to divest government shares in Cochin Shipyard. The Indian Shipping Ministry is scouting all possible routes to raise money for developing the port and shipping sector in the country. It is believed that the Ministry is aiming to revamp the existing state of infrastructure and mode of operations in the countrys maritime sector. To achieve these plans, the Ministry is looking towards divestment of government shares and undertake projects through public-private partnership (PPP) mode. In its latest drive to raise funds, the Shipping Ministry has approved Department of Economic

Affairs (DEAs) proposal to divest government shares in the in state-run Cochin Shipyard. Cochin Shipyard, which is the largest ship repair yard in India, had been awarded with Category -1 Miniratna status in July 2008. Backed by bulk ship building and ship repairing orders from private as well as public shipping companies, its net profit has jumped by 70% to reach Rs. 160 crore during 2008-09.

According to PV Thomas, Managing Partner of PT Varghese and Co, a mid-sized shipping firm in Cochin, Kerala, opines, It is highly commendable that even in this trying times, Cochin Shipyard has emerged as one of the biggest revenue generating ship yard of the Indian Government. Shipping Secretary, APVN Sarma has recently announced that the Shipping Ministry has given its full support to the recommendations forwarded by DEA. It is expected that the DEA will very soon propose government for 10% disinvestment in Public Sector Undertaking Units (PSUs). Mr. Sarma also said that the Shipping Ministry has decided to sign 20 PPP schemes in port projects this year. Shajan Joshi, Manager of PL Shipping & Logistics, a small-scale shipping firm in Cochin, says, The cash-starved Shipping Ministry is taking the right approach at this point to undertake port projects through PPP schemes without taking the financial pressure solely on its own shoulder. In a bid to boost maritime trade and encourage shipping companies, the Shipping Ministry has already started working on formulating a flexible taxation regime.

Top

MoS to ensure non-stop dredging at Haldia Dock Exim News Service - 24 September, 2009

CHENNAI: The Shipping Ministry is making all efforts to ensure continuous dredging to maintain the draught at Haldia Dock, asserted the Shipping Minister, Mr. G.K. Vasan. "We are aware of the fact and are taking action on a war-footing. We are sending more dredgers to Haldia, which is an important and efficient Port," he told newsmen here. There was a sudden drop in the depth of the Hooghly at Auckland. The draught at Haldia Dock fell by 0.3 metre, and between October 1 and 15 by another 0.4 metre.

Top

Others: Shipping cos. preferring long-term deals despite better returns in spot markets Exim News Service - 01 September, 2009

HYDERABAD: Despite signs of recovery in the tanker segment, the overall freight market continues to be volatile and shipping companies are preferring to deploy their vessels in the long-term contract market instead of the spot market. Earnings from shipping remain uncertain, as global economies are

still grappling with the crisis. The outlook for 12-18 months is also not very bullish, said an industry source. Analysts say that India and China are the current key growth drivers and the freight market movement will largely hinge on how these two countries handle their economies. Overall, freight rates for tankers (ships that carry crude oil and liquids) have sunk by about 40-60 per cent over last year, while dry bulk carriers earn about 70 per cent less than last year, an analyst calculated. In order to hedge themselves from the risk of a volatile freight market, shipping companies are now deploying more ships in the long-term market, although the spot market is usually known to yield better returns.

Top

Operational laxity frustrates ship-owners at KoPT Shippingbiz360.com 04 September, 2009

Lack of proper coordination at the Kolkata Port Trust and HDC, coupled with complexities in the vessel logjam system, compel shipping companies to bear heavy demurrage price. Lack of proper coordination and laxity in cargo unloading operations at the Kolkata Port Trust (KoPT), the oldest port in India, and the Haldia Dock Complex (HDC) is jeopardising the cargo-handling business of several shipping firms. Since almost 20 days, around 40 shipping vessels, carrying different kinds of essential commodities worth crore of rupees, are marooned at the KoPT and Haldia port due to complications in the vessel logjam system. Under such circumstances, D. Mukherjee, Executive Director of Tara Marine Syndicate, a mid-sized container management company in Haldia, says, This is unacceptable for a port authority that dates back to 139 years ago. The concerned port authorities should realise that being trapped in this situation, each shipping line is compelled to bear an additional financial burden of US$10,000 per day as demurrage.

Shipping firms, importers, clearing agents, ship-owners and stevedores are complaining that KoPT is plagued by several problems and the most notable among them are incessant strikes and improper utilisation of port facilities. According to Amit Ghosh, VP (Logistics) of TKM Global Logistics Ltd., a midsized shipping and logistics company in Kolkata, Incidentally, this is happening at a time when shipping companies are already struggling to maintain their profit margin due to the declining freight rates and global financial slowdown. Mr. Mukherjee, further adds, It should be kept in mind that the amount of cargo traffic has declined considerably in the recent years due to silt deposition in the Hoogly River belt. Now if the port authorities are taking a lack-lustre approach towards operational drawbacks then it would cost the business of these ports significantly. Considering the current developments, it has been predicted that the Haldia dock would witness a decline in cargo traffic to nearly 6 million tonne by end of the current financial year.

Top

KoPT cancels 20-year land lease deal with Navy Exim News Service - 06 September, 2009

KOLKATA: The Kolkata Port Trust (KoPT) wants the Naval authorities to return about 50 acres of land at Haldia Dock which it had leased out some 20 years ago. KoPT contends the land has not been used so far for the purpose for which it was leased. It wants to create back-up facilities for its proposed riverfront jetty. When the Defence authorities failed to respond to KoPTs pleas, the latter served it a notice terminating the lease agreement. According to the agreement, six months notice is required for the lease termination to come into force. At the last meeting of the Board of Trustees of KoPT, the Naval Office-in-charge, also a member of the Board, took strong exception to KoPTs action, it is learnt. KoPT is, nevertheless, ready to provide an alternative site on the riverfront to the Navy. It has offered 10 acres at Jellingham immediately and the balance of 40 acres at some other place. However, the Navys response to KoPTs offer is understood to be lukewarm. The Navys reluctance to return the Haldia Dock land has led to uncertainties about one of the two riverfront jetties proposed to be developed at the Dock.

Top

Indian ports to face challenging year ahead, says report The Economic Times 07 September, 2009

For a majority of Indian ports 2009-10 is going to be yet another challenging year, much like 2008-09. And if the situation continues the way it is, the cargo volumes anticipated in the XI Plan estimates may not materialise by 2011-12. These are the findings of ICRA, a leading credit rating agency, in its recent report on 'Challenges in Private Sector Participation in Port Projects'. "Fiscal 2009-10 will be another challenging year for domestic ports ..., because of the continuing slowdown being experienced by key end-user industries, especially the steel sector, although there have been some improvements of late. Consequently, ports with their cargo mix showing concentration of iron ore, coking coal and coke could see muted growth (in cargo)," the report said.

"A few private sector ports could nonetheless achieve higher growth on the strength of their superior infrastructure and gain of market share from Major Ports nearby," it added. Given the uncertainties in the near term, it noted, missing the 11th plan cargo figures could mean significant overcapacity in case all the proposed projects come up. More importantly, ICRA believes that the actual capacity addition will be lower than anticipated because of the likely delays in the awarding of projects under National Maritime Development Programme (NMDP), in attaining financial closure by private sector players, and in project execution. "The capacity addition should nevertheless improve service standards for endusers who now have to cope with near 100% berth occupancy in the Major Ports," it said. Talking about the port privatization programme, the report said that private participation in the Indian port sector has

been on the increase during the past decade, thanks to the initiatives of central and state governments. "Notwithstanding the initiatives, private players continue to face several challenges, including a protracted approval process, stiff bidder selection criteria, and certain issues associated with the Model Concession Agreement (MCA) and with tariff setting.

Despite the near-term challenges, it expects the outlook to be favourable for cargo in the medium to long term for domestic ports. The key drivers for growth will be the commissioning of power projects based on imported coal, expansion of refinery capacity, setting up of steel projects, imports of raw materials and fertilizers, increase in containerisation, and offshore E&P projects.

Top

With surplus capacity seen on horizon, shipowners fear dwindling rates Exim News Service - 10 September, 2009

MUMBAI: Several shipowners are reportedly anticipating a shrinkage in freight rates over 12-18 months with surplus tonnage entering the market, and the dismal trade situation. Despite fears of huge cancellations, most shipyards went ahead constructing newbuildings because they were already at an advanced stage and wanted to complete the exercise. "The ships likely to be delivered in 12-18 months, whether in the dry bulk or wet side, will put further pressure on the freight rates," opined Mr. A. R. Ramakrishnan, Director, Essar Shipping Ports & Logistics. The governments of China and Korea are bailing out their shipbuilding industries through financial stimulus packages and banks there are providing special credit lines for shipbuilders. Hence, there could be even more tonnage in a market that is already witnessing excess capacity.

The dwindling freight rates have impacted domestic shipping companies which is reflected in their first quarter earnings. While the Shipping Corporation of Indias (SCI) net profit fell by 57 per cent to Rs. 119.92 crore, that of Varun Shipping fell by 91.8 per cent to Rs. 1.84 crore. Essar Shipping, however, reported a net profit of Rs. 29 crore, as against a net loss of Rs. 12 crore in the same quarter of 2008, although total income fell by 26.2 per cent to Rs. 209.6 crore.

Top MPSEZs AAT lifts the bar on car loading rate Exim News Service - 10 September, 2009

MUMDRA: Adani Automobile Terminal (AAT) at Mundra Port and Special Economic Zone (MPSEZ) has achieved a performance high by loading at the rate of 150 cars per hour on the vessel m.v. Hoegh Tokyo which sailed from the Port on September 5. The vessel loaded a total of 2,089 Nissan Pixo cars. The Captain and Chief Officer of the vessel praised the stevedoring operations, saying that they were at par with the best auto terminals globally, according to a release. Capt. Ramnath, General Manager of

AAT, reiterated the commitment of the terminal to serve the automobile industry and provide excellent service levels to customers.

AAT is the first terminal in South Asia to use a floating pontoon and link span facility to provide roundthe-clock uninterrupted loading operations for Pure Car Carrier (PCC) vessels. The terminal has, since the commencement of operations in January 2009, handled more than 60,000 Maruti Suzuki and Nissan cars. The highlight of this period was in August, during which AAT berthed 9 PCC vessels and handled a volume of 13,379 units. MPSEZ has a long-term agreement with Maruti Suzuki India Ltd to export cars from Mundra Port. MPSEZ has provided a PDI area near the Port, which can accommodate 8,000 vehicles at any given time, as well as a back-up area inside the Port for parking vehicles. PCC vessels of NYK Line, "K" Line, Hoegh Autoliners and Nissan Motor Car Carriers regularly call at AAT.

Top

ABGKCTL chosen for regular coastal box service by Jindal Vector Exim News Service - 10 September, 2009

GANDHIDHAM: The ABG Kandla Container Terminal Ltd (ABGKCTL), operated by ABG Group at Kandla Port, has once again proved to be a preferred facility for coastal movement, with Jindal Waterways Ltd. commencing a regular container service. Jindal Waterways, through Jindal Vector, had launched liner services in February 2008 and has already emerged as a major coastal carrier. The company provides total logistics solutions with a high-frequency, high reliability service, port-to-port and door-to-door in container and bulk. The coastal service from Kandla serves domestic cargo movement between Kandla and Cochin so as to attract cargo from Northern India to South Indian destinations. The vessel under this service, m.v. Jindal Kamakshi, made her maiden call at ABGKCT on September 4.

Jindal Vector has deployed 3 vessels in this service with the port rotation Kandla, Cochin, Tuticorin, Kandla. The service frequency to Kandla is once every 5 days. Jindal Vector owns and operates shortsea shipping container and break-bulk vessels along the coast and the Subcontinent. Plying between the ports of Gujarat and South India, Jindal Vector operates modern containerships sized right for the Indian coastline, providing high-frequency and high-reliability container services between the ports of Kandla, Pipavav, Cochin and Tuticorin. In order to commemorate the maiden call of m.v. Jindal Kamakshi, a brief function was arranged on board the vessel at the terminal, during which a memento was presented to the Master of vessel by the chief guest, Mr. M. A. Bhaskarachar, Deputy Chairman of Kandla Port Trust.

In a brief address, Mr. Bhaskarachar said that Kandla Port was "very happy to receive such new services and the Port is very well equipped to provide good service to all customers. I also take this opportunity to wish Jindal, ABGKCTL team and the vessel agent, Seabridge Maritime Agencies, all the very best." Among the others present on the occasion were, from Jindal Waterways, Capt. Ashwin Advani, VP-Business Development, Mr. Kiran Nandre, DGM-Business Development; from Seabridge

Maritime Agencies, Mr. Dharamshi Mitesh, General Manager, Mr. Vijay Patel, Operations Manager, Mr. Manoj Mishra, Senior Executive-Marketing, Mr. V. Prakash Rao, Senior Executive, Operations; and from ABGKCTL, Mr. S. Senthilkumar, Terminal Manager, Capt. Manish Kumar Mittal, Senior Manager (Operations), Mr. Anil A. Kumar, Executive (Marketing), Mr. Paras Vyas, Officer (Marketing), Mr. Vijay Selvan, Planning Superintendent, and Mr. Subramanian, Deputy Manager (Planning). A total of 133 TEUs were handled during the call.

According to the ABGKCTL management, the terminal has been positioned as the most preferred facility for coastal, Middle East and Karachi destinations. It is confident that by attracting more such services, the terminal will continue on its steady growth path and exponentially increase its volumes in the time to come. The management has expressed a deep sense of gratitude to the Jindal Vector team for extending its wholehearted support to the terminal and has assured it of continued excellent services.

Top

Subdued crude prices pull down OSV rates Exim News Service - 13 September, 2009

MUMBAI: With global crude prices ruling low because of the meltdown, the charter rates of the offshore support vessels (OSVs) have plummetted by 50-60 per cent in the last 6-8 months. Oil exploration is the first area to be hit by falling prices and demand due to the high costs and risks involved. It is no wonder then that several oil companies put on hold the riskier explorations projected for the second half of last year when the price of oil tumbled from an all-time high of $ 140 a barrel in July, to around $ 33 in December.

They are no longer considering oil exploration as a viable option and this has, in turn, hit the offshore industry. "Due to the market conditions, companies are not going in for oil exploration, due to which the offshore rates have gone down," commented an analyst. "The offshore sector has different segments like rigs, OSVs and others. However, on a wider term, the rates in the offshore segment have gone down by at least 50-60 per cent in the last 6-8 months," he added. Since the offshore segment is directly related to the oil and gas sector, chances of it bouncing back is the bleakest. Some industry experts, nevertheless, believe that the downturn is temporary. "The offshore segment has come down, but it is not as badly hit like the other segments like dry bulk tankers," commented one player.

Top

VPT cuts wharfage charges by 10-20 pc Exim News Service - 13 September, 2009

VISAKHAPATNAM: The Visakhapatnam Port Trust (VPT) has pruned its wharfage charges by 10-20

per cent to attract cargo, which has of late started shifting to the nearby Gangavaram port. This charge is paid for using a wharf for handling goods. "After the commencement of Gangavaram port, bulk cargoes like coking coal, thermal coal, iron ore have started shifting from Vizag Port. If the situation continues, the Port will lose more cargo volumes in the coming days," Mr. Krishna Kumar, President of the Visakhapatnam Stevedores Association, feared.

Top

Three Cheers for JNPT! ...bags coveted Indira Gandhi Rajbhasha Puraskar award for 3rd year in a row Exim News Service - 15 September, 2009

NAVI MUMBAI: The Jawaharlal Nehru Port Trust (JNPT), the premier container handling Port (which is also ranked 25th among the Top 30 World Container Ports), has bagged the coveted Indira Gandhi Rajbhasha Puraskar (2nd prize) for 2007-08. This award was received, on behalf of JNPT, by its Chairman, Mr. S. Shahzad Hussain, IAS, at the hands of the President, Ms. Pratibha Devisingh Patil, at a glittering function organised by the Department of Official Language, Ministry of Home Affairs, at Vigyan Bhavan in New Delhi on September 14, as part of the Hindi Day celebrations.

The Union Home Minister, Mr. P. Chidambaram, presided over the function. Pertinently, the Port was last year awarded the first prize for the same reason for 2006-07 and the second prize for 2005-06. The Port has also been awarded five times by the Union Ministry of Shipping and thrice by the Town Official Language Implementation Committee (Undertakings), Mumbai, for its excellent implementation of the official language. Apart from serving the international trade and commerce of the country by handling more than 60 per cent of the containerised cargo, the Port has also been doing excellent work in fulfilling its Corporate Social Responsibility (CSR), protecting and upgrading the Ports environment and implementing the nations Official Language Policy.

Top

Indian shippers seeking govt. protection in territorial waters Shippingbiz360.com 16 September, 2009

Absence of any stringent rule by the Shipping Ministry is allowing foreign shippers to enter into Indian coasts, thereby posing stiff competition to their Indian counterparts. Chiefs of a number of Indian shipping companies recently met the Shipping Secretary APVN Sarma, requesting the Government of India (GoI) to provide them protection in the countrys territorial waters. The chiefs urged the government to enforce stringent rules that would ward off competition posed by foreign players in Indian waters. According to the chiefs, countries such as Indonesia and China have rules that allow only their respective domestic firms to move coastal cargo on their territorial waters. These rules have been particularly framed to overcome the impact of the global demand slump, which has severely hit the

shipping players across the globe. Shipping firms in India have also suffered badly due to the turmoil in the financial markets. However, the Indian Shipping Ministry have not taken any such measures that were taken by Indonesia and China, said P Jain, Proprietor of Kushal Corporation, a mid-sized shipping services firm in Ahmedabad. Although the countrys coastal trade is reserved for India-registered ships, foreign ships can move cargo along the coast when Indian ships are not present, after taking permission from the Directorate General of Shipping. However, of late it is being increasingly noticed that global ship owners are looking at potential regions on Indian coasts to stay afloat, which is hurting the business of domestic fleet owners.

With business of Indian shippers coming under threat from foreign competitors, small and mid-sized logistics service providers (LSPs) are also concerned about their prospects. If foreign shipping firms are allowed to trade on Indian coasts, the number of consignments domestic shippers procure may gradually reduce. This will adversely impact our business, as we would be receiving fewer orders in such an event, said M. Amit, Proprietor of Delight Agencies, a small-sized LSP in Indore. Shipping and logistics companies are hoping that the Shipping Ministry will take some step in their favour in this regard in the coming days.

Top New port projects remain at Environment Ministrys mercy Exim News Service - 16 September, 2009 NEW DELHI: The Environment Ministry has virtually blocked the Shipping Ministrys plan to modernise and expand 20 ports across the country by imposing a temporary freeze on all of them. The Shipping Minister, Mr. G. K.Vasan, had promised to award six projects under the National Maritime Development Programme (NMDP) within 100 days of taking charge. With investments estimated at Rs 3,320 crore, the projects were to be taken up in 2009-10. But before work orders for any of these could be awarded, the Environment Ministry imposed its three-month moratorium on August 21. The Environment Ministrys move follows the recommendation of a committee headed by Dr. M.S. Swaminathan.

The Shipping Secretary, Mr. A.P.V.N. Sarma, held a high-level meeting and has decided to take up the matter with the Environment Ministry. The Environment Ministry has taken the stand that liberal approvals of port capacity expansions have damaged the coastline and a cautious approach is needed for granting approvals. It had conducted a satellite image survey of the entire country and is now analysing the images. While the Shipping Ministry has agreed to apprise the Environment Ministry of all expansion projects in future, it wants the moratorium to be lifted for projects already at an advanced stage of clearance. The government is planning to increase the capacity of all ports by 1.5 billion tonnes.

Top

Implementation of GST may trigger more outsourcing to 3PLs Shippingbiz.com360.com 24 September, 2009

Even though more than 30% of logistics services in foreign nations are outsourced to third-party logistics (3PL) providers, the picture is quite different in India. At present, less than 10% of companies have outsourced their logistics services to 3PL providers. However, the scenario is likely to change after the implementation of the goods and services tax (GST) in the country from April 2010. The proposed tax is expected to have a positive impact on the manufacturing and logistics sectors, particularly in the execution of activities such as manufacturing, distribution and warehousing. According to industry experts, if a uniform tax structure is drafted and implemented for all states, there will not only be parity in the functioning of manufacturing and logistics companies, but also help manufacturers base their logistics decisions on operational efficiency instead of tax optimisation. Once manufacturers start taking decisions on the basis of their operations, they will be more inclined to outsource their logistics services to 3PL providers to ensure that they provide quality service. In this way demand for 3PL service will increase in the coming days, said VS Murthy, Proprietor of Mercury Industrial and Investment Consultants, a mid-sized shipping services consultancy firm in Hyderabad. If 3PL providers procure more orders in the near future, their business will get a huge boost. Small players engaged in providing 3PL services will be greatly benefited if more and more companies outsource their logistics services. This will not only ensure them of more business, but also make logistics operations hassle-free for manufacturing companies, said DS Sen, DGM at Esskay Shipping, Kolkata branch, a mid-sized shipping services company based in Visakhapatnam. Not surprisingly, manufacturers and logistics companies are happy to outsource their tasks to 3PL providers, which is likely to streamline their work process. Although 3PLs generally focus on a large network of sub-scale warehouses instead of fewer, larger and mechanised warehouses, the implementation of GST will no longer limit their boundaries.

Top

Sethusamudram Ship Canal project faces dredging hurdle Shippingbiz360.com 24 September, 2009

With DCI pulling out dredgers from the controversial Sethusamudram Ship Canal Project, several midsized vessel and ship operators are worried that their hope of reducing cost of operation for ferrying cargoes between eastern and western coasts in the country will not materialise. A decision by the staterun Dredging Corporation of India Ltd (DCI) has put a major hurdle before the controversial Sethusamudram Ship Canal Project. Following DCIs move to pull out the last dredger used for digging the channel, the project has come to an unprecedented halt.

According to the DCI authority, they had employed a specialised ship to deepen the channels of ports and harbours under a 4-year contract with the Sethusamudram Corporation Ltd. The dateline of the contract came to an end on July 27, following which, the DCI has pulled out its dredger from the project. Needles to say, with the absence of the DCI dredger the project would be delayed. Moreover, it would also hamper the work that has already been done. The project had to be completed within a stipulated timeframe, which did not happen in this case, thereby leading to a delay in the process further. Now when the dredging work has come to a halt, silt deposition will take place rapidly even in the areas where dredging was done earlier, thereby marring the whole process, comments, Ram Suresh, Senior Manager of Eagle Maritime Private Limited, a mid-sized shipping firm in Chennai.

The decision has not only left the Sethusamudram Corporation frowning, but it has also dashed the hope of several mid-sized vessel and ship operators in the region. The purpose of the canal was to shorten the shipping route between the countrys eastern and western coasts. In this context, Marcia Ellens, Manager of Viking Shipping Chennai Private Limited, a mid-sized shipping company in Chennai, Tamil Nadu, rues, With the completion of this project the operation cost of small and mid-sized shipping companies were expected to come down. If the maritime distance between Indias eastern and western coasts was reduced it would have significantly benefited the shipping companies financially, especially in this difficult time of an economic slowdown. According to the project plan, boring of a new shipping channel was to be done, which would connect the Gulf of Mannar and Bay of Bengal through the Palk Straits and Palk Bay.

Top

Home | Security | Legal | Privacy 12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate, Worli, Mumbai 400 018 India Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Deloitte provides audit, tax, consulting and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in 140 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloittes 165,000 professionals are committed to becoming the standard of excellence. Deloittes professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and clients, commitment to each other, and strength from cultural diversity. They enjoy an environment of continuous learning, challenging experiences, and enriching career opportunities. Deloittes professionals are dedicated to strengthening corporate responsibility, building public trust, and making a positive impact in their communities. These materials and the information contained herein are provided by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) and are intended to provide general information on a particular subject or subjects and are not an exhaustive treatment of such subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal, investment, consulting, or other professional advice or services. The information is not intended to be relied upon

as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. None of Deloitte Touche Tohmatsu, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on these materials and the information contained therein. These materials and the information contained therein are provided as is, and DTTIPL makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, DTTIPL does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality. DTTIPL expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy. Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk of loss resulting from the use thereof. Deloitte Touche Tohmatsu, its member firms, or its and their respective affiliates will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials or the information contained therein. If any of the foregoing is not fully enforceable for any reason, the remainder shall nonetheless continue to apply. 2009 Deloitte Touche Tohmatsu India Private Limited.