Wednesday 11 November 2015


Implementation of GST is a game-changer

Economic Times
Atruck moving from Spain to Poland, both in the EU, can do the trip with hardly any time lost in border checks. The speed of moving material by truck from one state of India to another is way slower. There are instances where Indian retailers find it easier to import material from foreign suppliers rather than procure the same from another state. Foreign firms that would like to source material from Indian suppliers are often discouraged by the delays faced on the ground. Studies indicate that about 60% of freight movement within the country is by road. Close to 60% of the travel time is spent at various checkpoints. Long lead times make demand forecasts inaccurate and planning difficult. The implementation of the goods and services tax (GST) is, thus, a game-changer. It is expected to set right the aberrations in Indian supply chains and contribute to India’s economic growth, better integrate its market as well as firm up campaigns like ‘Make in India’.

Dry Port May Come Up at Damaracherla

New Indian Express
The location of two dry ports proposed by the state government are likely to be finalised in a month’s time. The state government is actively considering Damaracherla in Nalgonda district to set up one of the two dry ports. As a follow up to chief minister K Chandrasekhar Rao’s recent visit to Delhi, industries minister Jupally Krishna Rao along with senior officials held discussions with the Central government officials on Tuesday on the issue. The Centre has agreed to sanction two dry ports to the state. The state government proposed four places and the Centre may finalise any two places based on the convenience of nearest sea ports either in Andhra Pradesh or any other state. Damaracherla has a railway line to transport goods from the dry ports in Telangana to Machilipatnam seaport in AP. Around 10,000 acres has been earmarked for the thermal power plant in Damaracherla. Out of which, the state government can utilise 2,000 acres for the dry port, an official said.

Container shipping industry faces upheaval with potential wave of consolidation

Sea News
The container shipping industry is to face another period of upheaval with the recent spate of mergers and possible consolidation among top carriers which is threatening to disrupt mega alliances even as the lines settle into their relatively new vessel tie-ups. Last week, Neptune Orient Lines', owner of APL, confirmed in a Singapore Stock Exchange filing that it is in preliminary merger talks with CMA CGM and Maersk Line. This followed after the largely assumed merger of China Container Shipping Lines and Cosco was confirmed by U.S. Federal Maritime Commissioner William Doyle. For shippers already frustrated with poor reliability, the prospect of more volatility from the mergers themselves and the inevitable restructuring of major shipping alliances that became operational this year is hardly appetizing. Nor, is the long-term prospect of higher rates provided by a smaller pool of players, the IHS Media report.

New port on India's east coast gives shippers another option

JOC
Kakinada Container Terminal, a joint venture between Singapore’s PSA International and two local groups, Kakinada Infrastructure Holdings and Bothra Shipping Services, last week began operations, offering India east coast shippers another port option. KCT begins operations as terminals on India’s east coast struggle to grow volumes in the wake of a growing capacity glut and slowing cargo growth. Part of Kakinada Deep Water Port, KCT is located between Visakhapatnam and Chennai. Kakinada is a minor port project under the control of Andhra Pradesh State Authority. “KCT is well connected by national highways and rail to key cities in the region. Coupled with its proximity to the cargo centers, the terminal is the preferred choice for shippers as it allows them to achieve significant savings in transportation cost and time,” the private operator said in a trade advisory. KCT currently has a quay length of nearly 1,000 feet with a capacity of 200,000 twenty-foot-equivalent units per year.

New container design aimed at eliminating the need to ship empty boxes

Sea News
With nearly a quarter of the total container transport volume consisting of empty units, a new container has been patented which is designed to eliminate this problem. The 20-foot container developed by Juan Ureta, Jesus Garcia and Francisco Aguilar, can be joined to other "Connectainers" to form a 40-foot container, or disconnected again, by two people in 30 minutes, according to The Maritime Executive. Approximately 24 per cent of the total container transport volume consists of empty units, says Mr Aguilar, exactly 81.5 million empty TEU sailing an average of 14 days. "That means 150 latest generation vessels of 21,000 TEU sailing the whole year non-stop." Connectainer is water tight, structurally resistant, and keeps the internal and external dimensions of present containers so it is compatible with multimodal transportation.

Qatar announces new dedicated pharma routes

Air Cargo News
Qatar Airways Cargo has announced the launch of two new dedicated pharma routes from India to Doha as it looks to capitalise on industry growth in the Middle East. The first new Pharma Express route will commence on November 10 and will operate from Mumbai via Ahmedabad to Doha on Tuesdays and Fridays, while the second route will start the following day and operate from Hyderabad to Doha on Wednesdays and Saturdays. Qatar Airways chief officer cargo Ulrich Ogiermann said: “To date, we are the only airline offering this dedicated service to the pharmaceutical industry. “The Pharma Express flights will cater to the growing pharmaceutical industry in the region. Air cargo standards for handling time and temperature-sensitive commodities such as pharmaceuticals are becoming more stringent, with stricter guidelines on temperature control." The airline also offers a dedicated pharma route on Brussels-Basel-Doha.

Khalifa Port Launches New Facility

Port Technology
BRF, one of the biggest animal protein producers in the world, is announcing plans to expand its food production facility in Khalifa Industrial Zone Abu Dhabi (Kizad) – a logistics hub at Khalifa Port. The expansion of the facility was announced by Katia Abreu, Minister of Agriculture for Brazil on November 11 in the presence of the Brazilian Ambassador to the UAE, Paulo Cesar Meira de Vasconcellos and other dignitaries from the UAE and region. BRF has intensified its international expansion process in the last two years and will increase its annual production capacity in the Kizad plant from 72,000 tonnes to 100,000 tonnes by the end of 2016. Read a Technical Paper on how Khalifa Port is innovating Abu Dhabi Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said: “Kizad is home to the largest food plant of its kind in the Middle East, and the fact that BRF is planning to expand its production capacity even further is yet another testament of the dynamic platform we provide - from integrated solutions,


Profit plunges at Gateway Distriparks

JOC
Gateway Distriparks recorded a sharply lower net profit in the second fiscal quarter through the end of September, as India’s leading port-based logistics provider was hit by slowing container volumes. The company, which has been expanding its container storage infrastructure in recent months, made a consolidated net income of Rs. 29.65 crore (about $4.6 million) during July to September, down 38 percent from Rs. 47.81 crore ($7.4 million) a year earlier. Total income from operations for the second quarter fell 11 percent year-over-year to Rs. 261 crore, Gateway said in a filing to the Bombay Stock Exchange. The logistics provider’s second-quarter operating profit was down 24 percent to Rs. 43.7 crore from Rs. 57.7 crore for the same period last year. Quarterly income from Gateway’s container freight station division was down 8 percent from a year earlier to Rs. 82 crore.



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