Monday, 30 November 2015

State-owned ports to turn corporate entities in two-stage reform

Live Mint
The shipping ministry has drafted a two-stage plan to convert 11 of the 12 ports owned by the Union government into corporate entities from the existing trustee setup in a much-delayed structural reform of these harbours that handle about 57% of the country’s overseas cargo shipped by sea. As a first step, these so-called major ports—Chennai, Cochin, Jawaharlal Nehru port, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, V.O. Chidambaranar and Visakhapatnam—will be brought under a new law called Major Port Authorities Act, 2015. Currently, these 11 ports function as trusts under a law framed more than five decades ago called the Major Port Trusts Act 1963. Kamarajar Port Ltd is the only exception in this regard. Kamarajar, which runs the port at Ennore near Chennai, was formed as a company under the companies law of 1956 when it was opened in 2001. The 12 ports loaded a combined 581.34 million tonnes (mt) of cargo in the year to March, clocking a year-on-year growth of 4.65%.

Walayar-Vallarpadam NH stretch to be deemed freight corridor

Business Line
In a major boost to Vallarpadam terminal, the Kerala government has proposed trade-friendly measures at Walayar checkpost. A meeting chaired by the Chief Secretary has decided to treat the NH stretch from Walayar to Vallarpadam ICTT as a deemed freight corridor. Containers cleared by the green channel at Walayar, the entry point for containerised cargo to Kerala from Tamil Nadu, would not be subject to further checks. Major grievance. It is pointed out that the move would redress a major grievance of the Exim trade. The decision is expected to attract more cargo from the entire southern region and the port is anticipating a quantum jump in container arrivals, especially from Coimbatore. The focus would be now on smoothening the flow of containers from the region, a senior official of the Kochi Port said. The port authorities had requested at the meeting to declare the NH from Walayar to ICTT as a freight corridor so that there would not be any inspections on the payload issues.

Adani in race to build port at Bhavanapadu

The Hindu
With growing thrust on ‘Look East’ policy, Adani Ports & SEZ Ltd, part of $9.4 billion conglomerate with operations in coal trading, mining, oil and gas exploration, power generation and logistics, is keen on expanding its presence on the East Coast. After acquiring Dhamra Port in Odisha and deciding to take over Katupalli port near Chennai, Adani Group has emerged as a strong contender for Greenfield port coming up at Bhavanapadu in neighbouring Srikakulam district. Adani, which is on acquisition spree after setting its target to increase cargo handling volume from 127 million tonne in 2013-14 to 200 million tonne by 2020, has submitted the Request for Qualification (RFQ) last month along with Gangavaram Port, Navayuga, Kakinada Port and UTL Technologies. Incidentally, 15 firms bought the bid documents and among them 10 submitted RFQ documents. The technical committee has declared five firms qualified.

Merchandise exports contract for 11th month

Live Mint
India’s merchandise exports contracted for the eleventh consecutive month in October, as the value of petroleum product shipments declined on lower crude oil prices and external demand remained weak amid a tepid global economic recovery. Exports contracted 17.5% from a year ago to $21.3 billion last month and imports shrank 21.2% to $31.1 billion. The trade deficit of $9.8 billion for the month was the lowest this fiscal, data released by the commerce ministry showed on Monday. In comparison, China’s October exports fell 6.9% from a year ago, down for the fourth month, while imports slipped 18.8%, leaving the country with a record high trade surplus of $61.64 billion. Perturbed by the continuous decline in exports, the finance ministry on Monday raised duty drawback rates for exporters, effective 23 November. The increase in duty drawback rates will help exporters recover higher input tax outgo that they pay during the process of making the final product.

JSW Dharamtar Port gets nod to expand jetty facility in Raigad

Business Standard
JSW Dharamtar Port has received green clearance for expansion of its jetty facility with an investment of Rs 1,550 crore at Dolvi village in Raigad district of Maharashtra. JSW Dharamtar Port Ltd (JSWDPL) is a special purpose vehicle created under the aegis of JSW Infrastructure Ltd to handle the cargo of the JSW Steel, Dolvi works. JSWDPL has proposed to expand the existing 331.5 metre jetty at village Dolvi in Raigad to 1,750 metre, which will increase the cargo handling from the current 9.69 million tonnes per annum (MTPA) to 33.95 MTPA. "Based on the recommendations of the Expert Appraisal Committee (EAC), the Environment Ministry has given environment and coastal regulation zone (CRZ) clearance to the expansion project in Raigad by JSW Dharamtar Port," a senior official said. The green clearance has been given subject to specific and general conditions, the official added.

Transporting coal via waterways can save Rs 10,000 crore annually: Nitin Gadkari

Economic Times
Inland waterways can not only boost the movement of goods and passengers across the country, but will also help in saving about Rs 10,000 crore annually in transporting coal, Shipping Minister Nitin Gadkari said today. The minister, who also holds the charge of Road Transport and Highways, added that he is hopeful of Parliament's nod on the bill to convert 111 rivers across India into National Waterways in the current Winter Session. "Inland waterways will help in saving logistics costs and boost movement of goods and passengers across the country. Besides, they will also save around Rs 10,000 crore per year while transporting coal, a crucial resource," Gadkari said at the annual session of industry chamber PHDCCI here. The waterways is a cheaper and environment friendly medium for transporting of goods, he said adding one HP moves 150 kg on road, 500 kg on rail and 4,000 kg on water besides one litre of fuel moves 24 tonne/km on road, 85 tonne/km on rail and 105 tonne/km on water.

Suresh Prabhu unveils statds's first Multi-Modal Logistics Park

Daily Pioneer
State’s first multi-model logistics park, jointly developed by State Industrial and Infrastructure Development Corporation of Uttarakhand Limited (SIIDCUL) and Container Corporation of India (CONCOR), was inaugurated by Union Railway Minister Suresh Prabhu in Pantnagar on Saturday. On this occasion, Union Minister for Women and Child Development Maneka Gandhi, Union Minister of State for Railway Manoj Kumar Sinha along with Chief Minister Harish Rawat, State finance minister Indira Hridayesh and Udham Singh Nagar MP Bhagat Singh Koshyari were present. In his address, Prabhu said that the logistics park would prove a milestone for the State, especially for its entrepreneurs, farmers and businessmen. This will decongest traffic and will boost environment protection as well, he said. To ensure that the farmers get better prices of their produce food processing units and cold storage chains must be put in place, the Union minister said.

Groundwork laid for coastal shipping between India and Bangladesh

India and Bangladesh are moving closer to allowing introduction of coastal shipping services between the two countries with the goal of boosting bilateral trade. The two governments last week signed a standard operating procedure to “operationalize” a coastal shipping deal reached in June, according to a press statement issued by India’s Ministry of Shipping. “The standard operating procedure will pave the way to promote coastal shipping between India and Bangladesh, and would enhance bilateral trade between the two countries by bringing down the cost of transportation of export-import cargo,” the ministry said. The SOP rules mandate that coastal vessels of both countries are handled no differently from mainline carriers. “India and Bangladesh shall render same treatment to the other country's vessels as it would have done to its national vessels used in international sea transportation.”

Govt gives shipyards more indirect tax sops

Live Mint
The government on Thursday widened the scope of indirect tax incentives given to the local shipbuilding industry by granting exemption from customs and central excise duties on all raw material and parts used for building vessels. However, the yards are still waiting for the comprehensive shipbuilding policy promised by finance minister Arun Jaitley in his first budget speech on 10 July 2014. Certain specified ships are exempt from basic customs duty and central excise duty. Consequently, for such vessels manufactured in export-oriented units (EOUs) and cleared to domestic tariff area (DTA), the EOUs are not eligible for exemption on raw materials or parts of such vessels. Suitable amendment is being made to provide that EOUs will be eligible for duty exemption on raw materials and parts consumed in manufacture of such vessels which are cleared to DTA, even if such ships are exempt from basic customs duty and central excise or CV duty.

We can’t export our way to growth

Business Line
Top politicians of India’s ruling coalition boast that China’s economic crisis should be viewed as an opportunity for India to capture a bigger global export share in manufacturing, and grow faster. With India being the only BRIC nation growing by 7 per cent plus, it is not long before India will overtake China economically, they argue. In 2014, China’s GDP at current prices was $10.38 trillion — roughly five times India’s GDP at $2.04 trillion. Even if India grows at CAGR of 10 per cent (best case scenario) and China at 3 per cent (worst case scenario), it won’t be able to overtake China before 2038. Yet, India can take on China, but not by blindly following the now obsolete export-led growth model that made China the world’s factory. Why? Because India is not China, and today’s world is quite different from what it was when China embarked on its export-led growth path. India is a multi-party democratic with all kinds of pulls and pressures that make effective implementation of the Chinese growth model difficult.

Logistics Chennai,International Freight Forwarders in Chennai, Custom Clearance Agents in Chennai , Checkout

Gadkari Says Indian Ports to Make Rs. 6,000 Crore Profit by 2016

Union Minister for Shipping, Road Transport and Highways Nitin Gadkari today said the profitability of the Indian port sector by the end of current year will reach around Rs. 6,000 crore. The profit would be invested for creating assets to spur up growth, he said. Addressing a session at the PHD Chamber of Commerce and Industry in New Delhi, the minister said in the next five years the contribution of highways and shipping sector to national GDP would rise to two per cent from current insignificant level. With poised growth, the roads, highways and shipping sectors would be able to create 50 lakh employment opportunities, he said. Mr Nitin Gadkari said the infrastructure sector in India would witness massive changes and transformation in next few years as by then many four-lane roads and highways would be converted into eight-lane ones as also a large number of national highways be turned into expressways.

Shipping indices, trade and what’s in store for India

Live Mint
World trade has remained subdued this year. Not surprisingly, shipping indices across the board have performed miserably. The Shanghai (Export) Containerized Freight Index (SCFI), which reflects spot rates for container transport from Shanghai to the rest of the world, has declined as much as 47% so far this year. The China Containerized Freight Index (CCFI), which is considered a broader measure as it tracks spot and contractual rates from China to the rest of the world has declined 29% this year. Trade is growing slower than world gross domestic product growth (GDP), according to Dharmakirti Joshi, chief economist, Crisil Ltd, whereas the scenario was opposite in the pre-Lehman era. For instance, in 2004-08, trade was growing nearly two times faster than world GDP growth, while in 2015, it is growing slightly slower than world GDP growth or almost at a similar rate, Joshi said. To be sure, another key reason for the weak performance of shipping indices, including the popular Baltic Dry Index, which recently hit a 30-year low,

Bigger boxships not better with current market conditions: Maersk

Sea News
The assumption that a larger containership always results in lower operating costs is being challenged by the prevailing market dynamics, according to Maersk Line. Speaking at a media briefing, global COO of Maersk Line, Soren Toft, was quoted as saying in a report by Seatrade Maritime News: "Previously the bigger the ship the lower the cost, but what we are seeing right now is a phenomenon of very depressed time charter rates and very low bunker cost. "So part of the equation of going from a 6,000 TEU vessel to a 10,000 TEU vessel in a trade is being challenged because of these dynamics." Mr Toft also pointed out that with a bigger ship you had to call more ports and make more contingencies. "So there is much more to this a bigger ship is always better," he said. One of the few bits of positive news Mr Toft was able to give in regards to where the market was headed was that the bunker price is currently in the range of US$200 to $220.

Logistics Chennai,International Freight Forwarders in Chennai, Custom Clearance Agents in Chennai , Checkout

Attorney General advises govt to scrap PSA’s Tuticorin port terminal

Live Mint
Union government-owned V.O.C Port Trust located in Tuticorin, can scrap a container terminal run by PSA International Pte Ltd from 1999 on a 30-year contract after the Singapore firm defaulted on paying the contractually-mandated royalty to the government port, according to India’s chief legal adviser, attorney general Mukul Rohatgi. “I am of the considered opinion that the querist can terminate the licence agreement and also claim compensation if it deems fit,” Rohatgi said in an advice signed on 7 August 2015. Mint has reviewed a copy of the opinion given by him. PSA-Sical Terminals Ltd, the entity that runs the container terminal at VOC port from 1999, is 62.5% owned by PSA International, a unit of Temasek Holdings Pte Ltd, the sovereign wealth fund of Singapore. The terminal has been dogged by tariff issues for many years. In June 2011, PSA secured a stay from the district court in Tuticorin, freezing the annual royalty it is contractually mandated to pay VOC Port at the level set for 2010 as part of the 30-year contract.

Investors pitch for location of Maritime Board in Vizag

The Hindu
While welcoming the State government’s policy on development of ports all along the 974-km coastline to spur maritime-based economy, many connected to port operations have sought the location of the headquarters of AP Maritime Board at Visakhapatnam. The government in the policy has spelt out its plans to set up ports in PPP mode by doling out several sops like sales tax and VAT exemption. The lease rent is also proposed to be fixed at 6 per cent of market value. Investors say the port policy and the decision to establish Maritime Board with autonomous powers to give a fillip to port-led development will make the economy in Navya Andhra Pradesh vibrant like Gujarat. “Giving clearances will become easy once rules are framed and Maritime Board is set up. While Visakhapatnam and a few other big ports will focus on container business, other ports will attract bulk cargo like iron ore, food commodities and fertilizer,” Sravan Shipping Services Managing Director G. Sambasiva Rao has told The Hindu.

Logistics Chennai,International Freight Forwarders in Chennai, Custom Clearance Agents in Chennai , Checkout

Thursday, 26 November 2015

Leased Boeing 747-8 freighters join ABC fleet:

ABC – Air Bridge Cargo Airlines has taken delivery of two leased Boeing 747-8 Freighters as part of a memorandum of understanding (MoU) signed at the Paris Air Show in June. News of the delivery comes as a surprise as it was not known that the two companies had developed the announcement beyond the MoU stage. However, a Boeing spokesperson explained that the deal was still at an MoU stage and included the leases.
"[The agreement] is still an MoU, which calls for more 747-8 freighters, and we are working together with [ABC parent] Volga-Dnepr on how to best support their business plans and fleet requirements," the Boeing spokesperson said. In total, the MoU signed in June includes 20 B747-8Fs and is aimed at transforming ABC from a niche player into a global giant.
The two aircraft delivered today will be deployed on the expanding network under winter schedule 2015/2016, between Asia and the US.
Hong Kong airport sees cargo growth in October

Hong Kong International Airport (HKIA) saw cargo growth for the second consecutive month in October, increasing by 2% over like period 2014 to 392,000 tonnes. Hong Kong, the world’s number one cargo airport by volumes in 2014 at 4.4m tonnes, had recorded a decrease in freight throughputs in six of the first ten months of this year.
The increase in cargo during October was mainly driven by imports, which were up 4% from a year ago, said HKIA, adding: “Exports and transhipments grew 1% and 2%, respectively, compared to the same month last year.”  Among the key trading regions, traffic to/from Europe, Australasia and North America “increased most significantly”.

Waterways to be Developed on 111 Rivers: Minister

New Indian Express
Union Minister of Road Transport, Highways and Shipping Nitin Gadkari on Wednesday said that his ministry was targeting to increase the pace of road construction to 100 km per day from the present 18 km per day. He was speaking at the inauguration of the 8th edition of Excon, the biggest construction equipment exposition in Asia, here on Wednesday. Road construction has been moving at a snail’s pace of 2 km per day when he assumed office, he added. Gadkari said there is ample supply of oil slag, which now goes as waste. In countries like Australia, oil slag is used to lay roads. The ministry is ready to accept the codes relating to roads and other infrastructure to bring it to the standards of developed countries, he said. On the huge capital expenditure needed for the ambitious projects, he admitted there is a dearth of funds. “We can go to the market to raise funds through bonds. There are also investors abroad ready to invest in Indian infrastructure bonds,” he added.

River Route Planned for Amaravati

New Indian Express
Taking cue from Chief Minister N Chandrababu Naidu’s penchant for inland water transport, the state government is eager to experiment moving building material and heavy machinery to Amaravati by Krishna River route from downstream of Pulichintala Project when the actual construction work begins. Even as the work is on relating to making an assessment of how much land is required and where for developing national waterways -IV project connecting Kakinada and Puducherry with an investment of Rs.2,800 crore (AP portion), the government is simultaneously working on moving heavy machinery and building material to Amaravati through the river-route. According to official sources, the project report is more or less ready and would be submitted to the Inland Water Ways Authority for further action. The officials are planning the river route as the existing road network is quite inadequate if any attempt to move the machinery by road is made.

India's largest port calls for SEZ proposals

Jawaharlal Nehru Port Trust has issued a tender calling for proposals from domestic and international firms to set up industrial units at its much-awaited special economic zone, as India’s biggest container handler looks for new avenues to grow its cargo volumes amid slowing global trade. The tender announcement comes after JNPT won a Rs. 468 crore ($72 million) grant from the federal government for the construction of basic infrastructure facilities at the SEZ site and the SEZ is critical to its plans to expand capacity to 10 million 20-foot-equivalent units over the next five years. “The project aims to ensure enhanced end-to-end port related facilities for export-based industries, including manufacturing, free-trade warehousing, value-added services like sorting, assembling, packaging and finally shipment,” the port authority said in its “express of interest” document.

Kazakhstan eyeing terminal at Mundhra to give fillip to bilateral trade

The Statesman
Kazakhstan is keen to build a terminal at Mundhra port on India’s western coast that would provide direct connectivity with Iran’s Bandar Abbas port and thereby help Indian goods get direct access to Central Asia and beyond via the Iran-Turkmenistan-Kazakhstan railway line, the country’s ambassador has said. Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), inked an MoU with SEZ Adani Ports for building a terminal at Mundhra in Gujarat during Prime Minister Narendra Modi’s visit to Astana in July. "The due diligence report for the Mundhra terminal is being done, and after that they will take a decision on completing the contract,” Kazakhstan Ambassador Bulat Sarsenbayev told. “The Mundhra project is very important. When completed it will change the whole logistics–of moving goods from India to Kazakhstan and through Kazakhstan to Central Asia, to Russia, China and Europe," Sarsenbayev said.

ISS expands launch fleet to meet growing demand

Hellenic Shipping News
Inchcape Shipping Services (ISS), the maritime and logistics service provider, has expanded its launch fleet with two more fast crew-boats, bringing its total fleet size to 18 vessels. The two newbuild 42-metre vessels have been added in response to a growing demand in the Oil and Gas sector for faster crew/supply boats to increase operational efficiencies and will assist in the safe and fast transfer of offshore personnel, cargo and liquid payloads. Custom-built to ISS’ specifications by the Grand Weld shipyard in Dubai, the FNSA 3 and FNSA 4 both have a 75-seater passenger capacity and can operate virtually anywhere in the world, according to charter demand. Each boat has been fitted with the latest navigation equipment, comprehensive satellite communication systems, engine performance and weather monitoring systems. Other features include comprehensive D-fendering, h2s monitoring systems, aircraft-type seating and a fresh water generator.

Hyundai looking for new partner to bid for building LNG ships for GAIL

Economic Times
Korean shipbuilder Hyundai Heavy Industries is scouting for a new local partner to replace L&T so that it can bid for building liquefied natural gas ships for domestic GAIL India, a key Make-in-India push in the oil sector. Hyundai has reached out to both private and state-run shipyards, people familiar with the matter said, without confirming whether any tie-up has been firmed up. If Hyundai is unable to form a consortium with a local shipyard soon, the orders for all nine or more ships might be just split between the two likely contenders, Samsung and Daewoo. This can potentially raise the delivery risk for GAIL, which is already running late in acquiring ships. Hyundai couldn't be immediately reached for comment. L&T's shipbuilding arm has broken ties with Hyundai for building LNG ships primarily due to a strategic shift towards the defence sector where prospects have brightened with the government's increased resolve to raise local production,

What’s holding up India’s farm exports?

Business Line
India’s export of agriculture and processed food products — which accounts for 12-14 per cent of the country’s total merchandise exports — had been enjoying strong growth for the last five fiscals. However, it declined by 9.8 per cent to $38.6 billion in FY 2015 from $42.8 billion in FY 2014, with export to the US declining to $ 2 billion. Is India being denied market access in the name of health and safety regulations? The latest example is mandatory inspection and audit of imported agricultural products. Are prohibitive import duties and high subsidies — a key feature of first world’s farm policy — constraining India’s farm exports? What are the other factors behind the poor performance of farm exports? Over the last few quarters, export price of basmati rice has declined from $1,295/tonne to as low as $1,050/tonne, leading to low realisation from its exports.

Export target set to be missed again

Business Standards
Sluggish global demand and falling commodity prices are set to derail India's export target of $325 billion in 2015-16 and lead to a second year of contraction in exports. Ravi Kapoor, joint secretary, department of commerce, had on Wednesday said India would miss the target and might end below $300 billion by the end of 2015-16. This admission underscores the challenges the Narendra Modi government faces in boosting export growth amid sluggish global demand and falling commodity prices. In fact, even matching last year's exports of $310 billion seems difficult. In large part, the decline is driven by falling commodity prices, oil in particular. What is worrying is that the declines are being observed across major export segments. Even after excluding petroleum and crude oil products, exports of non-petroleum products have declined roughly nine per cent from April to September, first six months of the current financial year, against the year-ago period.

Current container market dynamics challenging big ship ecomomics: Maersk Line

Seatrade Maritime
The pioneer of the ultra-large container vessel, Maersk Line, says the idea that a bigger ship always means a lower cost is being challenged by current market dynamics. Speaking at a media briefing on Wednesday Soren Toft, global coo of Maersk Line, said: Previously the bigger the ship the lower the cost, but what we are seeing right now is a phenomenon of very depressed time charter rates and very low bunker cost. So part of the equation of going from a 6,000 teu vessel to a 10,000 teu vessel in a trade is being challenged because of these dynamics.” Maersk Line has consistently been at the forefront of new large ship sizes, and was the first company to move into the 18,000 – 20,000 teu vessels, with the 18,000 teu Triple-E vessels, which have been idled on occasions recently where the line has blanked some of its sailings.

CMA CMG upgrades NEMO service adding call at La Reunion Island

Sea News
In a move to boost La Reunion Island as a hub between Europe, South East Asia, Africa and Australia in the Indian Ocean, French shipping line CMA CGM has added a new call at Pointe des Galets on its New Europe Mascarene Oceania (NEMO) service. This follows the signing of a memorandum of understanding in August last year by French shipping line to establish the island as the group's maritime hub in the Indian Ocean. The NEMO service offers a direct connection between Northern Europe, Southern Europe, India, Singapore, and Australia and starting from December 11, three new calls will be added: Pointe des Galets port in la Reunion Island, Fos in France, and Salerno in Italy. The new rotation will be: Tilbury, Hamburg, Rotterdam, Le Havre, Fos, Genova, Damietta, Pointe des Galets, Fremantle, Melbourne, Sydney, Adelaide, Singapore, Port Kelang, Chennai, Colombo, Cochin, Damietta, Malta, and Salerno.

Evergreen buys 10 more 2,800 teu container vessels

Seatrade Maritime
Taiwan’s container carrier Evergreen Marine has penned a deal to buy 10 more new 2,800 teu container vessels for up to $390m, after earlier newbuilding acquisitions just a few months ago. Taipei-listed Evergreen announced that the newbuildings will be constructed at Japan’s Imabari Shipbuilding and Taiwan’s CSBC Corp, with each yard building five units. Details of the delivery schedule were not disclosed. The latest order follows an earlier deal in September where Evergreen also booked ten 2,800 teu container vessels at Imabari. In August, Evergreen had already ordered ten similar 2,800 teu container vessels at CSBC. And in July, Evergreen booked five 2,800 teu boxships at Imabari and another five similar ships at CSBC.

Maersk to raise Asia-Europe rates US$1,000/TEU from December 1

Sea News
The world's biggest container shipping company, Maersk Line, will levy a US$1,000 per TEU Asia-Europe rate increase from December 1, the company announced. If it sticks, the hike would be a 339 per cent increase from current rates. But container rates tend to rise in large increments before slipping back in the face of overcapacity in the market.

CMA CGM buy of NOL would be container shipping's largest consolidation: Alphaliner

Sea trade Maritime
The potential acquisition of Neptune Orient Lines (NOL) by CMA CGM would the largest ever consolidation in the container sector in terms capacity according to analyst Alphaliner. NOL’s liner arm APL has 540,000 teu of slot capacity, this compares to the previous largest deal, which was when Maersk Line bought P&O Nedlloyd in 2005 that had slot capacity of 460,000 teu at the time. Adding APL to its own fleet would give CMA CGM a fleet of 2.33m teu, an 11.5% market share, Alphaliner said in its weekly newsletter. While CMA CGM and NOL have signed an exclusivity agreement with a view to striking a deal by 7 December Alphaliner still sees reaching agreement on a valuation for the Singapore-based line as potentially difficult.
Logistics Chennai,International Freight Forwarders in Chennai, Custom Clearance Agents in Chennai , Checkout

PM Modi hopes to roll out GST in 2016, woos investors in Singapore

Times of India
Promising more reforms to make India more attractive for foreign investments, Prime Minister Narendra Modi on Tuesday assured investors that he would "carefully hold" their hands and expressed hope that the Goods and Services Tax (GST) regime would be rolled out in 2016. Speaking at the India Singapore Economic Convention here, Modi said India is exploring a potential partnership with Singapore's Changi Airport for developments of two Indian airports and invited companies here to join in building smart cities. "In the last 18 months, the runways for the take-off of the economy have been made. Reforms are happening in a big way. They are now reaching to the last mile. Reform is to transform the system so that they perform. They aim at helping people realize their dreams. "It means more charm on the faces and less forms in the offices. Efforts to deepen financial markets have been made," Modi said.

Suggestions invited on Port Authority Bill

The Hindu
The Union Ministry of Shipping has invited suggestions from all stakeholders on the draft Major Port Authorities Bill 2015 and the draft has been uploaded on the ministry website with a request to stakeholders to send in their views by the first week of December. When the Bill becomes an Act, it will be applicable to the ports of Chennai, Cochin, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, VO Chidambaranar, Vishakapatnam and Jawaharlal Nehru Port. Though many of the provisions in the Major Port Trusts Act 1963 will remain intact, the core of the changes being mooted by the new legislation is the corporatisation of these ports’ operations. Part III of draft, which deals with the management restructuring of port authority, is on “conversion of Port Authority from trust to company.” The draft says: “the Port Authority of each Major Port operating as a trust may change its structure and become a company subject to prior approval of the Central government and passing of special resolution through its Board in that behalf”.

India releases new guidelines on dredging contract selection

India’s Ministry of Shipping has updated its guidelines for awarding capital and maintenance dredging contracts at major state-owned ports. The revamp is another initiative by the Narendra Modi-led government to improve port productivity levels under its much-publicized “sagar mala” project and favors dredging firms based in India. In a document titled “Guidelines on Undertaking Dredging at Major Ports,” the ministry said that the need for more ports and the improvement of India’s maritime infrastructure necessitated new guidelines for dredging works. Under the new guidelines, all dredging contracts at federal government-owned, landlord ports will be awarded through a competitive bidding process. For capital dredging contracts, the government reserves the right to appoint state-owned Dredging Corporation of India on a nomination basis without calling for bids. Most notably, the ministry has called on port trust bodies to go in for “long-term” contracts of up to five years for maintenance dredging in order to get work done faster.

Cargo Export Takes a Dip in Past Two Weeks

New Indian Express
Nearly 10 per cent of export cargo was hit due to the heavy rains that lashed the city for the last two weeks, according to a top official of National Association of Container Freight Station. Speaking to Express, M S Arun, Chairman of the Association said cargo arrival to the port had taken a dip. “The cargoes are mostly minerals and stones from neighbouring Andhra Pradesh,” he added. Officials conceded that the rains had slowed down the port operations. A Chennai Port official said container movement in the Port has come down. “Usually, a total of 2,300 containers arrive at Chennai Port but now the number has come down to 1,800,” he noted adding that this, however, could not be linked to the volume of business. Operations have slowed down for during the rains as machineries and steel would not be allowed on board as these could rust, it was explained. In his view, it was too early to estimate the losses.

Centre developing Mandovi, Zuari by keeping Goa in the dark

Navhind Times
Even as the Inland Waterways Authority of India (IWAI) has floated tenders for consultancy services to develop stretches of Mandovi and Zuari rivers and the Cumbharjua canal, the state government authorities have been kept in the dark on the matter. Sources in the state government said that Goa has not been intimated on anything regarding the bidding process for the consultancy services and nothing has been communicated with the state authorities regarding development of the river stretches. The tender floated by IWAI states, “E-tender for consultancy services for Environment Impact Assessment (EIA) and Environment Management Plan (EMP) Studies and Obtaining Environment, CRZ, Wildlife and Forest Clearances for developing the stretch of Mandovi, Zuari and Cumbharjua canal of national waterways in the state of Goa.”

CMA CGM offers direct links between La Reunion Island, Europe and Australia

A Jot
CMA CGM, a leading worldwide shipping Group, is pleased to announce its service upgrade to La Reunion Island on its NEMO line. The NEMO service offers a direct connection between Northern Europe, Southern Europe, India, Singapore, and Australia. Commencing December 11th, 3 new calls will be added: Pointe des Galets port in la Reunion Island, Fos in France, and Salerno in Italy. The new rotation will be as follows: Tilbury, Hamburg, Rotterdam, Le Havre, Fos, Genova, Damietta, Pointe des Galets, Fremantle, Melbourne, Sydney, Adelaide, Singapore, Port Kelang, Chennai, Colombo, Cochin, Damietta, Malta, and Salerno. CMA CGM will operate 7 out of the 13 4,200 TEU capacity vessels - the rest being operated by Hapag-Lloyd. The CMA CGM Group pursues its development strategy in la Reunion Island by offering a direct connection between the major North European ports – such as Le Havre, Rotterdam, Hamburg and Tilbury – and West Mediterranean ports – Genova, Fos, Malta.

ClassNK releases draft amendments to container ship rules

Seatrade Maritime
Two and a half years after the MOL Comfort split in half, burst into flames and sank, ClassNK has released its draft amendments to its containership structural requirements. The new requirements are scheduled to apply to container ships contracted for construction on or after 1 April 2016. The amendments are based on the International Association of Classification Societies (IACS) Unified Requirements S11A (‘Longitudinal strength standard for container ships’) and S34 (‘Functional requirements on load cases for strength assessment of container ships by finite element analysis’) as well as reports from Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), and ClassNK’s own report released in September 2014. “The development and implementation of more comprehensive rules demonstrates ClassNK’s commitment to building even safer ships,” said ClassNK. “The amendments will come into effect after receiving approval from ClassNK’s board of directors.

Charter ship market still looking for the bottom

Charter rates for container ships have fallen completely out of sync as owners in the most hard-pressed segments scramble to secure any short-term cover they can get. More evidence emerged last week of post-Panamax and Panamax tramp vessels fixing charters at sub-opex levels of $6,000 to 8,000 per day — less than what feeder and Handy container ship types can still achieve in various regions. The largest classes are suffering the worst overhang of tonnage looking for employment. French analyst Alphaliner counted 36 mover-Panamax ships of 5,300 to 7,500 twenty-foot-equivalent units and 27 Panamaxes of 4,000 to 5,100 TEUs in spot positions at the start of last week, most of them in Asia. New charter rate lows for very large container ships were marked by the reported fixture of the 8,411-TEU Northern Jubilee at just $8,000 per day for 2 to 3 months Far East-west coast South America trading, and by Hapag-Lloyd and Maersk’s hiring of the 7,000-TEU Northern Monument at $7,500 per day for 50 to 100 days for its Far East-Mediterranean service.

Exports may fall below $300 bn by 2015-16 end

Business Standard
India will miss its export target of $325 billion due to a slump in the global economy but the number might end up below $300 billion by the end of 2015-16, said Department of Commerce Joint Secretary Ravi Kapoor on Tuesday. Speaking at the sidelines of the India Engineering Sourcing show here, he told reporters: “India has reported exports of $312 billion against a target of $340 billion in 2014-15. The government has set a target of $325 billion for the current financial year. It will be a happy situation if the country achieves exports of $300 billion but it (exports) will end less than $300 billion.” Kapoor’s admission comes close on the heels of India’s exports contracting for the eleventh straight month in October. The joint secretary said the fall in exports was due to a fall in petroleum product exports, again a function of international oil prices. India’s merchandise exports dipped 17.6 per cent to $154.29 billion, while merchandise imports fell 15.2 per cent to $232.54 billion in April-October 2015.

CMA CGM gets first bite at APL

Hellenic Shipping News
Neptune Orient Lines (NOL), the parent company of the ocean carrier APL, has confirmed that it entered into an exclusivity agreement with the French shipping line CMA CGM to negotiate a potential acquisition of NOL. The agreement grants CMA CGM exclusivity until 7 December to complete a due diligence and negotiate a final offer for NOL. Lentor Investments, a wholly owned subsidiary of Temasek which holds a 39.5% stake in NOL, is part of the agreement with CMA CGM. Of note, Temasek Holdings, the investment company owned by the Singapore Government, holds a further 27.5% interest in NOL that is not owned by Lentor. This suggests that Temasek could be planning to dispose only part of its 67.0% stake in NOL. Under Singapore stock market rules, CMA CGM could make a ‘voluntary general offer’ for all or part of NOL’s shares. The French buyer, however, would be required to make a mandatory offer for all of NOL’s shares as soon as its obtains more than 30% of the company’s voting rights.

TSA Recommends Container Rate Hike

Maritime Executive
Member shipping lines in the Transpacific Stabilization Agreement (TSA) have announced an increase in rate and fee guidelines for 2016-17 service contracts which are intended to ensure price and service stability, TSA says. TSA lines are recommending increases in minimum rates across the board, to $950 per 40 foot equivalent unit (FEU) to the U.S. West Coast and $1700 per FEU to the East and Gulf Coasts on December 1, 2015. The price will rise to $1200 to the West Coast on January 1, 2016. The carriers say they intend to establish higher baseline levels as they begin service contract negotiations, and wish to have the guidelines in place well before the Chinese New Year in February 2016. “Transpacific lines are adjusting to a new normal of larger ships and complex alliances, necessitated by cost and environmental compliance pressures – all in the context of an uncertain global economic environment,” explained TSA Executive Administrator Brian Conrad.

15 major shipping lines to call at Iran port

Trade Arabia
A total of 15 major international shipping lines have chosen Iran’s southern Shahid Rajaei port as their port of call, an Iranian official was quoted as saying in a report. Shahid Rajaei is currently Iran's biggest commercial port, which is directly and regularly visited by major shipping lines frequenting the Gulf, Ebrahim Idani, director general of Hormuzgan Province Ports and Maritime Department, said in an Iran Daily report, citing Press TV. He added that the bulk discounts to shipping companies has reduced the final cost of entry of commodities into the Iranian port, making it more economical compared to other Gulf ports. Idani further noted that fast loading and offloading services, and bunkering services to big vessels has turned the port into a major point of entry into Iran. He stated that about 700,000 tonnes of goods have been transhipped through Shahid Rajaei to other Gulf ports since March 21.

Logistics Chennai,International Freight Forwarders in Chennai, Custom Clearance Agents in Chennai , Checkout

Tuesday, 17 November 2015

Taking stock of aggregate demand

Live Mint
Recent data on output and prices along with corporate results for the recently concluded quarter shed fresh light on demand conditions. At best, this flow of information shows that demand is not too strong. At worst, confirmation that a cyclical rebound is well and truly entrenched remains elusive. First, October’s wholesale price index (WPI) shows the slide in core inflation (which excludes food and energy) is not yet arrested. Year-on-year deflationary pressures deepened in October (minus 2.06% against September’s 1.93%). However, there is a directional change in sequential momentum (three-month moving average), which indicates abating of the deflationary impetus over September-October. But it needs to be seen if this endures beyond the Dussehra-Diwali uptick. Also, once the base effects are fully eliminated early next year, it will be clearer whether weak prices are correlated with weak output (low demand) or simply driven by commodity prices (supply-side deflation pressures).

APM Terminals Pipavav launches second weekly double stack rail service

APM Terminals Pipavav, one of western Indias fastest growing gateway ports, has commenced a new weekly double stack rail service to the industrial center in Faridabad in north India's Haryana State, near New Delhi. The dedicated double stack operations, which can efficiently carry two containers placed one on top of another in specially designed rail cars, will be operated in association with Gateway Rail and NYK India. Known as 'Sakura II', the service will operate between Pipavav Port and ICD-Faridabad (Piyala)/ICD-Garhi Harsaru, covering a distance of 1,015 km (630 miles) exclusively for Japanese NYK Shipping Line. The existing Sakura I dedicated double stack rail service, is operated by NYK exclusively for containers being imported by Maruti Suzuki India, the company said. Pipavav Port is currently moving block trains between Garhi Harsaru and Pipavav and between Ludhiana and Pipavav.

Looking for new routes to transport automobiles

Business Line
The automotive logistics companies are now keen on experimenting with coastal shipping and goods trains for transporting automobiles from factories to dealers, instead of transporting cars using road trailers. However, the logistics companies want the playing field to be levelled in terms of costs. The cost of transporting a small car from Chennai to Ahmedabad by road works out to 11,500 but if the same car is moved by a ship then the cost increases to 14,500. The companies have written to the Union Minister of Shipping and Surface Transport Nitin Gadkari seeking a subsidy linked to each vehicle delivered to the vendor, which will make the business viable. The recent Automotive Mission Plan (AMP) 2026 announced by the Centre has envisaged that in next 10 years, Indian automotive industry will grow three and a half to four times from the current value of $ 74 billion to $ 260 billion - $ 300 billion.

Essar Ports successfully delists at Rs133 per share

Live Mint
The Ruias-controlled Essar Ports Ltd will cease to exist as a publicly traded company as its promoters have successfully delisted the firm. JM Financial Institutional Ltd, manager to the delisting process, on Tuesday said that the delisting offer would be deemed to be successful. The delisting price was fixed at Rs.133 a share. Essar Ports, one of the largest private sector port companies in India by capacity and cargo traffic,had originally fixed the delisting price at Rs.90.50 and later revised it to Rs.93.50. However, that price was again revised to Rs.133 last week. Shares of Essar Ports gained 0.51% to Rs.129.20 on Tuesday on the BSE, while the benchmark Sensex gained 0.41% to close at 25,864.47 points. “The total outgo of the Essar Ports for delisting is around Rs.1,400 crore. The company has already made the necessary payments to shareholders.

Three lead Asia in port efficiency

Fiji Times
Asia's ports of Busan, Hong Kong and Ningbo have kept their lead in boxship turnaround efficiency as they required shorter waiting times at anchorages as compared with the rest of top 10 container ports from around the world for October, the latest analysis from IHS Maritime & Trade shows. The analysis was based on a review of the navigation records of 4703 full cellular container carriers, greater than 500 TEU. Even though waiting times at anchorages cannot perfectly reflect conditions of port congestion, average waiting hours per ship (AWT) serves as a useful indicator on ship turnaround efficiency at ports. In Asia-Pacific, the top four ports in September held their same positions in October in terms of the total number of sailings. Singapore remains the world's busiest port for sea-going containers. In the top 10 group, average waiting time (AWT) at Shanghai main ports, Kaohsiung and Qingdao, saw their waiting times increase that of others.

Hike in duty refund rates to help exporters: FIEO

Hike in duty refund rates would help boost shipments of sectors such as engineering and garments, exporters body FIEO said on Tuesday. The government yesterday raised duty refund rates on a host of items, including iron, steel, garments and marine products, with a view to promote exports which are on a decline for the past 11 months. "Increased customs rate of 2% to certain engineering items will help the exporters to neutralise the impact of import duty hike in steel used for export production," Federation of Indian Export Organizations (FIEO) President S C Ralhan said in a statement. Duty drawback is the refund of duties on imported inputs for export items. The increase in rates for items like frozen shrimps, prawns, perfumed agarbatti, finished leather, industrial gloves, millmade fibre yarn/fabric, readymade garments and hand-tools would also help these sectors, he said. However, he added that in the current situation of declining exports, exporters were expecting "better support".

Ship operating costs to rise over next two years

Hellenic Shipping News
The cost of operating cargo ships is forecast to rise over the next two years after falling in 2015, according to the latest Ship Operating Costs Annual Review and Forecast 2015/16 report published by global shipping consultancy Drewry. The average decline in ship operating costs across the sectors covered in the report in 2015 was 1.0%, but for ships that are big consumers of lube oils, the decline in overall costs was closer to 2%. Weak freight markets have forced ship owners to trim costs, while they have also been able to take advantage of falling commodity prices and lower insurance costs. “Operating costs are likely to rise in the future, as the scope for further cost cutting is in most cases quite limited. However, the expected increases in 2016 and 2017 are likely to be modest in nature as we anticipate only small rises in the cost of lube oils and other commodities;

Coming soon: Container shipping’s year of mergers in 2016

Seatrade Maritime
The next year will be crunch time for mergers and alliances in the liner shipping industry and a key event in that will be the imminent joining up of Cosco and China Shipping, which is “all but certain” said Odense Maritime Technology vice chairman Tom Behrens-Sorensen. He was among several speakers at the Asian Logistics and Maritime Conference in Hong Kong, which discussed the prospects for the liner shipping industry. There has traditionally been a resistance to mergers among shipping lines because of vested national interest, resulting in a still very fragmented market, Behrens-Sorensen added. However, in the case of these two China’s authorities are actually encouraging it. Behrens-Sorensen declared that “2016 will be a year for more national mergers starting with China”. Other mergers meanwhile will be driven by market forces, he said.

World's largest China-built con-ro vessel set for debut

Sea News
Atlantic Container Line's (ACL) G3 combination container/ro-ro (con-ro) vessels are being replaced by the innovative G4 generation after 30 years' service. The Chinese-built Atlantic Star, ranked as the world's largest combination (con-ro) vessel, is set for service entry this month on the North Atlantic's weekly service linking North America's eastern seaboard with northern Europe. The vessel has the added distinction of embodying a fundamentally different cargo-carrying configuration to that hitherto employed in con-ro ships. The design thinking encapsulated by the project underscores a commitment to innovation that has permeated the 50-year history of ACL, wholly-owned by Italian ro-ro specialist Grimaldi since 2007, the Motorship reported. The transatlantic operation caters for containers, project and oversized cargo, heavy equipment, all types of vehicles, block-stowed general cargo and hazardous goods.

Logistics Chennai,International Freight Forwarders in Chennai, Custom Clearance Agents in Chennai , Checkout