DAILY SHIPPING NEWS - MONDAY FEBRUARY 06, 2017

Air Freight News :

Amazon plans Kentucky air hub.

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Amazon plans to build a "centralised air hub" at Cincinnati/Northern Kentucky Airport (CVG) to support its growing fleet of Prime Air freighters.  When the hub site opens in nearby Hebron, the giant e-tailer expects to create more than 2,000 new jobs, with an investment put at an unconfirmed $1.5bn by local sources.

Dave Clark, Amazon senior vice president of worldwide operations, said: “As we considered places for the long-term home for our air hub operations, Hebron quickly rose to the top of the list with a large, skilled workforce, centralised location with great connectivity to our nearby fulfillment locations, and an excellent quality of living for employees.

“We feel strongly that with these qualities as a place to do business, our investments will support Amazon and customers well into the future. We couldn't be more excited to add 2,000-plus Amazon employees to join the more than 10,000 who work with us today across our robust operations in Kentucky.”

Last year, Amazon entered into agreements with US aircraft lessors ATSG and Atlas Air to lease 40 dedicated cargo planes to support Prime members with "fast, free shipping".

Pony Express makes first approved Dublin drone delivery.

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A drone has made Ireland’s first Irish Aviation Authority (IAA)-approved parcel delivery, ferrying emergency supplies 200 metres to a boat at sea.

The Dublin flight, lasting two minutes from take-off to parcel drop, was performed by Pony Express Couriers, using a DJI Inspire 1 drone laden with a parcel weighing 250 grams.

The parcel contained medical supplies: an emergency thermal blanket, an Epi-pen, bandages, plasters, thermometer, first aid leaflet, gloves, wipes and burn dressings.  It also contained food and a drink in the form of a high-energy bar and water. The supplies were attached to the underside of the drone in a waterproof container.

Pony Express is not planning to offer drone parcel delivery services in Dublin or Ireland “any time soon”, but is keen to be “at the leading edge of all new developments” in its market sector.

Audrey Browne, operations manager of Pony Express, said: “The delivery of low value, urgent items such as takeaway food, especially to remote rural areas is highly likely”.

Pilots strike hits ATSG revenues.

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A fall in revenues due to a pilots' strike has seen US-based freighter lessor Air Transport Services Group (ATSG) advise that its adjusted ebitda* from continuing operations for the fourth quarter and full year 2016 will be around $7m lower than in its prior guidance.

Said ATSG: “This reduction in guidance is due to the revenue loss resulting from a brief work stoppage in mid-November 2016 by pilots of its subsidiary ABX Air.

ATSG, which last year signed a major Boeing 767 freighter deal with stakeholder Amazon, now expects 2016 adjusted EBITDA for the fourth quarter to be approximately $56m and at $211m for the full year 2016.

CHAMP implements load planning software with Kalitta.

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CHAMP Cargosystems has implemented its Weight & Balance application, used to manage load planning, with US-based cargo carrier Kalitta Air.

The all-cargo airline, with a fleet of sixteen Boeing 747 freighters, has obtained FAA approval for the usage of Luxembourg-based CHAMP’s software with its aircraft.

“Kalitta Air is delighted with its decision with CHAMP’s Weight & Balance, and is confident it will be a key benefit for the months and years to come,” said Conrad Kalitta, chief executive of Kalitta Air, adding: “Integrating this software is proof that using the most up-to-date IT solutions will reduce fuel consumption, and improve accuracy with a highly effective automated process.”

Sea Freight News :

Multi-modal transport hub policy likely soon DNA The government may come out with a new policy on multi-modal transport hubs following the Union Budget made an announcement on it, say experts. On the merger of railway Budget with the Union Budget, finance minister Arun Jaitley had said presenting the Budget on February 1 that "this decision brings the Railways to the centerstage of the government's fiscal policy and would facilitate multi-modal transport planning between railways, highways and inland waterways." The Budget said a specific programme for the development of multi-modal logistics parks, together with multi-modal transport facilities, will be drawn up and implemented. "The idea of having multi-modal logistics park or hub is not new at all. But a new colour has been given to it. There has been a policy for Inland container depot (ICD) and Container Freight Station (CFS), but there isn't any policy for multi-modal logistics hub,"

Iran, India trade charges on delay of Chabahar port Economic Times The Budget may have allotted Rs 150 crore for the development of Chabahar port in Iran, but it may not be enough to bring the long delayed project back to life as Tehran has not yet submitted a proposal for release of the fund despite several reminders, some officials say. Indian government had set aside $235 million, or about Rs 150 crore, line of credit for the project since 2015 but is unable to release the first tranche of $150 million, they said. "The funds cannot be released without paperwork and this has not yet reached the Indian government. Even reminders from EXIM Bank to Iran have not helped," a person familiar with the matter told ET. "There are apparently no reasons behind Iran's delay in submitting the proposal for the release of loan," the person alleged.

Gadkari plans to set up 27 auto industrial clusters to attract biz Daiji World The Ministry of Shipping has prepared a plan to set up 27 industrial clusters at ports in different parts of the country aimed at attracting global automobile parts manufacturers. A total of Rs 8 lakh crore will be invested for these industrial corridors in the next five to eight years, and the government expects that it will generate 40 lakh direct and another 60 lakh indirect jobs, Union Transport and Shipping Minister Nitin Gadkari said here. The government will spend another Rs 5 lakh crore to provide the road and railway connectivity to these clusters, the minister said. Old vehicles can be transported to automobile manufacturing hubs set up in ports and they can be recycled into finished products. “Besides, these hubs can also import old vehicles from other countries for scrapping and manufacturing new products.

Cochin Shipyard enters talks to buy ABG, Shapoorji backs out Live Mint State-run Cochin Shipyard Ltd has started preliminary discussions to buy a controlling stake in debt-ridden ABG Shipyard Ltd, two people close to the development said. Shapoorji Pallonji and Co. Ltd, another contender, has decided to back out of the discussions, according to one of the two people. Both persons declined to be identified. As on 30 September, lenders held a 50.46% stake in the company, according to ABG Shipyard’s latest shareholding data available on BSE. A controlling stake in ABG may be valued at Rs400-500 crore, the second of the two people said. In the March quarter of 2016, the company had posted a loss of Rs1,710 crore and had an outstanding debt of Rs16,000 crore. ABG Shipyard’s debt piled up because of a fall in freight rates and an industry slump.

15-year old commercial vehicles may soon be off the road DNA Government is keen on implementing vehicle policy that aims at scrapping 15-year old commercial vehicles in the first phase, and it will send the proposal to GST Council after Cabinet nod, Union Minister Nitin Gadkari said. Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy has proposed to push 28 million decade old vehicles off the roads. "We (Ministry) will try to bring the policy as early as possible. We will make a presentation before the Cabinet Secretary on February 9 and then before the PMO. After the Cabinet nod, a presentation will be made before GST Council," Road Transport, Highways and Shipping Minister Gadkari said.

Ignored in Budget, exporters hope for sops in foreign trade policy review Business Line Exporters, who were largely ignored in the Budget, can hope for some incentives and thrust in the mid-term foreign trade policy (FTP) review in September with the Commerce Ministry ready to begin consultations. “The Commerce Ministry will kick-off consultations with various export bodies and councils from February 9 to examine their list of demand and re-assess growth potential,” a government official told Business Line. Another chance: While the Economic Survey for 2016-17 circulated on the eve of the Union Budget made a case for more support for exporters, especially from labour-intensive sectors such as apparels, leather and footwear, the Budget had no specific sops. The FTP review would also address issues that might creep up for exporters after the Goods & Services Tax is implemented.

Goods trains travel lighter due to slow economy Maritime Gateway The slowdown in the core economy has hit the Railways hard with the national transporter lowering its freight loading target for the present fiscal (2016-17) by two million tonne (mt), as per the revised estimates. Lower loading has also led the Railways to temper its freight earnings in 2016-17, which are expected to drop to ₹1.089 lakh crore from ₹1.092 lakh crore in 2015-16. In last year’s Budget, the Railways had set a target to load an extra 50 million tonnes of cargo this year, against the previous fiscal. This projection had to be sharply revised downwards, following a drop in loading and average distance of transporting coal and other commodities in the first half. The demand for coal, which accounts for 50 per cent of total freight, had dipped following lower demand for power by industry.

Tilbury’s £1bn drive to build a global trading port on Thames Financial Times The quest to build a global Britain begins at Tilbury, close to the mouth of the Thames, where a £1bn expansion is under way to make space for container ships from around the world.Tilbury is the UK’s third-largest container terminal, serving London and the south, but now wants to increase the size of its site from 850 to 1,100 acres and build a deep-sea jetty to welcome more ships from Europe but also make space for larger ships from Africa, India and the Far East. “There will be benefits as well as drawbacks to Brexit,” said Charles Hammond, of Forth Ports, the owner of Tilbury. “We’re prepared and that’s why we’re expanding.” About 60 per cent of the port’s traffic is currently with Europe but Tilbury is also where Jaguar Land Rover ships cars to South America.

Hamad Port now a firm fixture for MSC Shipping Arabian Supplychain Mediterranean Shipping Company (MSC) has announced it will be providing a direct call at Hamad Port in Doha, Qatar in 2017. The port’s addition to the Switzerland-based firm’s New Falcon service will allow container volumes to travel west from the Far East and South East Asia, to Qatar. MSC said that customers will also benefit from a competitive transit time and better service coverage over all the major ports and inlands from Far East/Southeast Asia. The service is being operated by MSC Elma, a 299m 9,411-TUE capacity container ship. “The new facility will also serve volumes out of South and East India, via Colombo,” said MSC in a statement. “It will help to meet the growing demand of Qatar’s export market, by offering direct connections via Mundra Port to worldwide destinations.”

CMA CGM Reorganises Its Asia - West Africa Services Maritime Professional In line with the West Africa market trend, CMA CGM Group adapts its service offering while continuing to improve its service reliability and cost efficiency. Starting 1st week of March 2017, CMA CGM Group has decided to streamline its product offering from 5 to 4 direct weekly services on the Asia > West Africa market with an optimised port coverage: Withdrawal of WAX 2 service. The service was operated with 10 vessels of 4,500-5,400 TEU Reshuffle of the 3 services WAX, WAX 3 and AFEX with greater synergy effectiveness in the West Africa port rotation ASAF service, the lead product dedicated to South Range West Africa remains unchanged. WAX | Operated by CMA CGM with 12 vessels of 4,350 TEU, will discontinue South Africa and Nigeria calls.

Maersk Saudi Arabia received the Honoring certificate of Merit Port News Maersk Saudi Arabia received the Honoring certificate of Merit from the Customs authority in the 26th of January 2017 in the capital of Riyadh, the company said in its press release. Maersk Line is recognized with their high level of synergy and their full support to the Saudi Customs Authority in all their ventures to develop the logistics infrastructure of the country. Saudi Arabia is going through tremendous changes to elevate their logistics performance and to move to higher ranks on the global LPI (Logistics performance index). Maersk Line proved to be an asset not just to shippers and importers, but a also to the Customs authorities and logistics industry in the country. The authorities honored Maersk Line with a certificate of merit at an event to recognize the achievement of Maersk Professionals.

Reports: Hanjin Shipping Liquidation Set for Feb 17 World Maritime News The rehabilitation process for the former South Korean shipping giant Hanjin Shipping is set to end on February 17, Yonhap News Agency cited the Seoul Central District Court. The decision was made on Thursday by the South Korean court, some half a year after the cash-strapped carrier was put under court receivership as it succumbed to the prolonged depression in the shipping market. The company filed for court receivership in late August 2016 as its creditors, led by the state-run Korea Development Bank (KDB), said they would not provide additional financial support to Hanjin starting from September 4. In an effort to collect enough cash to pay back its creditors, the company opted to sell a number of its assets, including its entire Asia to US route network and operations on the routes, a number of containerships, as well as its overseas businesses.

DAILY SHIPPING NEWS - FRIDAY FEBRUARY 03, 2017

Air Freight News :

EAS in top gear for emergency auto spares charter.

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EAS International a member of the  X2 Critical forwarder alliance has organised an Airbus A310 freighter full charter flight to transport automotive parts from Romania to Turkey.

Marco Muggianu, development director for EAS (the alliance member responsible for France and Romania) said: “The operation was very difficult due to the very bad weather conditions in Romania including snow, ice and minus 15 degree temperatures.”

Muggianu approached fellow X2 Critical member Qualitair & Sea Istanbul (QAS). In collaboration they chartered freighter and loaded the aircraft with 25-tons of automotive parts.

The entire operation was prepared, shipped and arrived in less than 24 hours door to door.

Added Muggianu: “This was a real X2 Critical members’ success story. The network specialises in providing value added services specifically meeting the needs of the aviation, aerospace and maritime industries."

SAA Cargo races to transport Dakar rally vehicles.

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South African Airways Cargo (SAA Cargo) has transported three racing vehicles and spares for the Dakar Rally as part of a partnership deal with the Toyota Gazoo South Africa team.

The cargo division transported the three vehicles from South Africa to Argentina via Sao Paulo for the 13 day race that covers Paraguay, Bolivia and Argentina.

The racing vehicles are designed in line with size restrictions for commercial cargo holds and thus built in such a way they can be disassembled to the size of the pallet and container to be used.

It takes around three hours to disassemble each car, which weigh around 2,000 kg, and six hours to reassemble them after transport.

SAA Cargo’s general manager, Tleli Makhetha said: “We are very proud of our association with this team who achieved a top ten finish at the most gruelling international motorsport race.

Record cargo year for Singapore's Changi airport.

·         Singapore Changi Airport recorded a 6.3% rise in airfreight throughputs versus prior year to reach 1.97m tonnes in 2016.

The Asian hub, the world's 15th largest cargo hub by volumes in 2015, ended 2016 with a strong December, handling 177,360 tonnes, up by 8.4% on the same month in 2015.

Changi Airport welcomed two freighter carriers — Neptune Air and Silkway West Airlines — to its family of over 100 passenger and cargo airlines last year, while freighter airline K-Mile Air resumed operations to Singapore.

A spokesperson for the airport authority said: “In terms of airfreight throughput, growth was recorded across imports, exports and transhipments.  Perishables and pharmaceuticals were segments that performed well, contributing a significant portion of Changi’s total cargo throughput.”

The top five country markets for airfreight were China, Australia, Hong Kong, the US and India.

Dubai's DWC airport saw cargo volumes up by 0.8% in 2016.

·         Dubai World Central (DWC), the Middle East emirate’s second international hub, recorded a slight increase in 2016 airfreight volumes at 897,998 tonnes, up 0.8% versus prior year.

Owner Dubai Airports stated: “[DWC]Cargo volumes registered strong growth in the fourth quarter with 252,300 tonnes of air freight, up 10.3% compared to 228,770 tonnes recorded in Q4 2015.”

DWC in the UAE is currently served by 27 passenger carriers, operating an average of 108 flights weekly to 44 international destinations and is home to 64 scheduled cargo operators that fly to as many as 138 destinations around the world.

Sister airport Dubai International Airport (DXB), reporting its full year 2016 results last week, shrugged off a 2016 third quarter cargo lull to rebound with a 3.4% rise in volumes to just under 2.6m tonnes.

Sea Freight News :

South Korea's Hanjin Shipping on course for bankruptcy Asian Review Hanjin Shipping is heading for liquidation after a court decided Thursday to essentially pull the plug on the struggling South Korean container giant, potentially closing the curtains on the company's 40-year history. The Seoul Central District Court elected to discontinue Hanjin's rehabilitation plan due to the shipper's falling liquidation value and the lack of any turnaround sponsors. The court is set to finalize the bankruptcy decision on Feb. 17 after two weeks to give creditors or other parties a chance to appeal. The bankruptcy proceedings are able to move forward because the court managed to sell off Hanjin's stake in a U.S. terminal, a major creditor told the Nikkei on Thursday. Hanjin, once the world's seventh- or eighth-largest container shipper, applied for court receivership last August.

Refreshing approach to growth via prudent measures: Gautam Adani Indian Express Finance Minister Arun Jaitley’s focus on agriculture, rural employment and infrastructure in his Budget for 2017-18 shows Narendra Modi government’s ability to balance growth with prudence, billionaire Gautam Adani said on Thursday. The Budget provides for “growth for the rural and underprivileged – build-up of infrastructure in urban India, affordable housing, fiscal prudence and most importantly, more money in the hands of honest taxpayers. A refreshing approach towards growth through prudent budget measures,” he said. The Adani Group Chairman said he sees this year’s Budget in the backdrop of fragile global economic condition and continuing uncertainty. “Amidst this backdrop, India is considered to be a bright spot by international agencies including IMF and UNCTAD,” he said in a statement.

Budget is reasonably balanced for an inclusive growth: Adarsh Hegde Business Standard The union budget 2017 with an agenda to transform, energise and sanitise India is reasonably balanced for an inclusive growth of the Indian economy. A couple of initiatives announced in the budget presented on February 1 bring some cheer to the sector. The government has taken the onus of setting up 100 India International Skill Centres which will definitely create a larger impact to address the issue of skilled labour in India. Another good move of the government in the budget to offer tax relief to corporates is the carrying forward MAT for additional 5 years. The bold target of 2500 crore digital transactions for 2017-18 will transform the way India transacts. The implementation of end to end solutions by railways for some commodities and significant investment in development of national highways, are steps towards ensuring multimodal connectivity and better transport system.

JNPT shippers to pay higher rates JOC Shippers using India’s top container port should expect to prepare to pay more to use the gateway, but the improvements the higher rates fund should improve productivity. India’s Tariff Authority for Major Ports, or TAMP, last week approved a request from Jawaharlal Nehru Port Trust to increase cargo-related charges 16 percent and marine dues 21 percent. Cargo-related charges cover stevedoring, wharfage, and demurrage, while marine dues include berth hire and pilotage charges. “The revised scale of rates will come into force after expiry of 30 days from the date [Jan. 24] of notification of this order,” the port regulator said. The increase could ease pressure on JNPT to make up funding shortfalls for infrastructure upgrades meant to ease congestion and improve productivity levels.

Budget with long term objective to steer economy, says exporters SME Times Hailing the Union Budget limiting revenue deficit to 2.1 percent of GDP and pegging fiscal deficit for 2017-18 at 3.2 percent, while focusing on rural India and infrastructure, S C Ralhan, President of FIEO, the apex exporters body, said that the budget has drawn a road map for bringing economy back on track and accelerating it in medium term. The investment of close to Rs.4.00 lacs crore in the infrastructure encompassing road, railways, aviation would not only improve competitiveness of manufacturing and exports sector but would reduce the logistics cost of exports as well. President, FIEO said that while Trade Related Infrastructure Scheme is welcomed, it would require sufficient funding to make an impact. The MSME sector with a turnover of upto Rs.50 crore will get a boost with reduction in income tax, while SEZs may draw a consolation in carry forward of MAT from 10 years to 15 years.

India Opens Special Account in Its Annual Budget For Iranian Chabahar Port Sputnik News After much dilly dallying, India has started special allocation for development of Chabahar port in Iran in its annual budget. Indian government has allocated $22.5 Million for the development of Chabahar port in financial year starting from April this year. India had received contract to develop a multipurpose cargo terminal (600 meters length) and a container terminal (640 meters length) at Chabahar port last year in May. Indian government had agreed to equip both the terminals with equipment worth $85 Million. Last year, Indian government had allocated $15 Million for the said project. Indian has also planned major event at Chabahar port in April this year whereas it will showcase the opportunities for private players. India had pledged $500 Million investment in the project mostly from Indian private companies having business interest in Iran.

GST rollout vital for logistics sector Business Line The Finance Minister has made a number provisions for the port and logistics sector, including plans for 2,000-km coastal roads in the Union Budget but experts feel that more details about the GST roadmap and its impact on the sector should have been shared with the market. Allcargo Logistics Ltd Executive Director and COO, Prakash Tulsiani said the Finance Minister has only mentioned about IT systems for GST rollout but the GST roadmap has not been spelled out. The budget has made provision for the sector but connections between GST and budgetary provisions have not been explained, he said. Arif Patel, Vice-Chairman of Patel Roadways, said the budget provisions for logistics sector should have been synchronized with the implementation of GST. If the GST does not get implemented, it will have repercussions on the sector, he warned.

China’s ‘Silk Road’ Plans Stir Protests in Sri Lanka The Wire China signed a deal with Sri Lanka late last year to further develop the strategic port of Hambantota and build a huge industrial zone nearby, a key part of Beijing’s ambitions to create a modern-day “Silk Road” across Asia. The agreement was welcome relief for the island nation of 20 million people. As they try to reduce the country’s debts, officials in Colombo see China’s plans to include Sri Lanka on its “One Belt, One Road” initiative as an economic lifeline. China has spent almost $2 billion so far on Hambantota and a new airport and wants to spend much more. But Beijing now faces a new and unpredictable challenge to its presence in Sri Lanka and broader Silk Road project. Hundreds of Sri Lankans clashed with police at the opening last month of the industrial zone in the south, saying they would not be moved from their land.

Colombo terminal annual volume soars 28pc to two million TEU Sea News The company said ultra large containerships and very large containerships contributed 70 per cent to the volumes achieved last year. The higher volumes handled by CICT contributed to the overall throughput of the port of Colombo increasing by an estimated 11 per cent in 2016, Maritime in Sri Lanka reported. CICT general manager, commercial and marketing, Tissa Wickramasinghe, was quoted as saying: "It must be emphasized that this historic achievement of two million TEU was made possible mainly by the synergies developed through our parent company China Merchants Port Holdings (CMPH). "The ability to access the CMPH global network was the key factor in gaining and attracting new transhipment volumes to the port of Colombo.

FFFAI and JSC RZD Logistics sign agreement on North-South ITC development Maritime Gateway JSC RZD Logistics, one of the leading companies on Russian forwarding services market, and Federation of Freight Forwarders’ Associations in India (FFFAI) recently have signed an agreement on strategic partnership aimed to coordinate efforts in development of the North-South ITC (International Transport Corridor). JSC RZD Logistics and FFFAI agreed to work together to expand the number of contacts with Russian and Indian freighters in order to attract the cargos to the North-South ITC. They are planning to develop Russian-Indian logistics cooperation as well. The signing of the agreement took place during the International Rail Business Forum “1520 Strategic Partnership: The Caspian Region”. “The association with our Indian partners is essential for the successful development of the North-South ITC. The signing of the agreement is another evidence of the interest towards project.

Haifa Port – the first in Israel to enter the era of 14,000 TEU ships, with today’s call of the Maersk Elbaa Hellenic Shipping News This morning (Thursday), the Maersk Elba container ship (13,092 TEU) arrived at Haifa Port’s state-of-the-art Carmel Terminal. The Maersk Elba is the largest ship ever to dock in Israel, and its visit formally inducted Israel’s leading port into the exclusive club of ports that handle high-capacity 14,000 TEU Mega ships. This ship, part of the weekly service line operated by the 2M Alliance of Maersk and MSC, links the ports of South Korea, China and Singapore to Haifa Port, and from there continues to the Adriatic ports. It entered the Carmel Terminal, where it was operated on by 4 STS cranes with an average productivity of 136 containers per ship hour. All who familiar with the shipping industry understand that preparing Haifa Port to welcome this new generation of ships was a lengthy process that has only now come to fruition.

This is Why the Bunker Industry Needs MFMs Ship & Bunker January 1st, 2017 stands out as a landmark date for the bunker industry: the day that MFMs (mass flow meters) became mandatory for IFO deliveries in the world's largest bunkering port, Singapore. The initial feedback has been good so far. In the world outside Singapore, most port authorities are taking a wait-and-see approach regarding the prospect of compulsory MFMs, while others simply say that they have no authority to mandate their implementation. Caution is perhaps understandable, but excuses about a lack of authority are more concerning. Let's be realistic, the bunkering industry has a mixed reputation and the frequent allegations of short volumes only make it worse. It's unlikely that any port authority is unaware of this. And while some may have no legal control to mandate changes, they're all capable of working with their governments or customs authorities to adopt new standards.

DAILY SHIPPING NEWS - THURSDAY FEBRUARY 02, 2017

Air Freight News :

Lufthansa Cargo increases offering from Sharjah Airport to Hong-Kong.

·         Lufthansa Cargo and Sharjah Aviation Services have launched a twice weekly MD-11 freighter linking the Middle East hub with Hong-Kong.  The German carrier's main-deck connections will operate on Tuesdays and Saturdays from Sharjah during the 2016/17 winter schedule.

Handling agent Sharjah Aviation Services is one of the largest air service providers in the United Arab Emirates (UAE), operating a 24,000 sq m cargo terminal plus over 8,800 sq m of forwarders and agents’ warehouse floor.

It operates Road Feeder Services (RFS) in exclusive partnership with Wallenborn Transports Group, currently providing 25 owned rollerbed trucks which include monitored temperature controlled units.   The road feeders provide scheduled and ad-hoc services to the main Gulf Cooperation Council hubs, including: Amman, Dammam, Jeddah, Kuwait, Muscat, Riyadh, Abu Dhabi, Dubai and Ras Al Khaimah.

Ulf Weber to leave AeroLogic for top job at ASL Belgium.

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ASL Belgium, formerly TNT Airways, has poached Ulf Weber from AeroLogic, the Lufthansa and DHL Express. Weber, who is currently managing director and accountable manager at AeroLogic, will join ASL Belgium as chief executive.

Colin Grant, who had been acting chief executive of the airline following its acquisition by ASL last year, will assist Weber during the transition to his new role. Grant also holds the role of ASL Airlines Europe chief executive.

“Ulf is an accomplished international aviation professional and his excellent record makes him a perfect fit for us,” said ASL Aviation Group chief executive Hugh Flynn.

Malta's Maleth-Aero to add two more B737Fs.

·         Malta-based operator Maleth-Aero will take delivery of two Boeing 737-300 freighters in March and April this year for deployment in regular contract work within Europe.

The latest additions will follow the introduction of a B737-300QC in June 2016 and the planned arrival of two more freighters later this year.

Maleth-Aero chief executive Michael O’Brien said: “We are very pleased to be able to offer to the market these Boeing 737-300F aircraft which build nicely on the foundation of our existing cargo capabilities using both our managed Boeing 737-300QC and Antonov 26 aircraft.

“With our experienced cargo management team and excellent knowledge of the Boeing 737 Classic/NG product we feel this is the natural development for this particular part of our business. Our strategic business plan provides for the introduction of a further two units early in Q3/4 2017.”

Sea Freight News :

Chennai become deepest of India's major ports Maritime Standard Chennai Port, as part of its efforts to strengthen its position as a southern Indian container hub, is expending its facilities. In particular it has invested in a dredging programme that has increased the draft alongside the CCTPL Container Terminal to 15m. Reflecting on the importance of this project, on 14th January this year CCTPL handled the CMA CGM Bellini with a draft of 14.6m, and the promptly broke this record again on 21st January with the visit of CMA CGM Mozart with a draft of 14.8 m. Operated by PSA International of Singapore, CCTPL terminal welcomed an important new service in January this year, with the start of a direct Far East-Chennault connection provided by a consortium of seven lines, including CMA CGM, RCL, K Line, Simatech, TS Line and Cosco.

Jaitley’s Budget ‘Converts’ Kamarajar Port Ltd to Kamarajar Port Trust India Tradeways India’s finance ministry has ‘converted’ Kamarajar Port Ltd, India’s only union government port that is run as a company into Kamarajar Port Trust, in a gaffe, that, besides causing embarrassment, has significant policy connotations because it strikes at the very root of the current management structure of the 11 other such ports that are functioning as ‘trusts’. The ‘error’ has cropped up in the budget documents for 2017-18 under the ‘Notes on Demands for Grants’ that was presented to Parliament by finance minister Arun Jaitley on Wednesday. It comes at a time when the Narendra Modi-led government introduced a bill in the winter session of Parliament in December last year for converting these 11 port trusts that are managed under the Major Port Trusts Act 1963 into ‘authorities’ under a new law in a bid to give more autonomy and flexibility to these ports and help them take decisions faster.

Multi-modal transport hubs to ease traffic congestion: Gadkari Times of India Terming the Budget as 'revolutionary', Road Transport, Highways and Shipping Minister Nitin Gadkari today said development of multi-modal transport hubs would help ease traffic congestion and bring down pollution. Gadkari also expressed hope that tax exemption on Masala Bonds will help mobilise more investments. He also lauded the top priority accorded in the budget to the growth of agriculture and rural sectors, and to weeding out of corruption and black money. Finance Minister Arun Jaitley allocated a record Rs 3.95 lakh crore for infrastructure development and termed the sector as top priority of the government, saying the magnitude of investment in the space is bound to spur growth. The Budget 2017-18 has made a provision of Rs 2,41,381 Crores for the transport sector as a whole. This includes rail, roads and shipping.

We have the funds, the target is to change mindset: Nitin Gadkari Live Mint - Interview It is the vision of the government, but the recommendations were from my ministries. This concept of multi-modal hubs is present globally and I personally feel it is the way forward. We have launched pilots for multi-modal in Varanasi and Nagpur, and once they are completely operational, the government will eventually scale up the idea. This integrated travel approach will help in reducing traffic congestion, causing great relief to people and freight and also bring down logistics costs. It’s a nice budget. For the shipping ministry the allocation has gone up from Rs1,531 crore in BE (budget estimate) 2016-17 to Rs1,773 crore and Rs600 crore have been allocated for the Sagarmala programme. Apart from this, the cabinet has also been moved to transfer 5% from the central road fund to inland waterways so that Rs2,000 crore is available for inland waterways development.

Jaitley gives big push to multi-modal logistics Business Line The Finance Minister has stressed on the need to have an effective multi-modal logistics and transport sector, which will make the economy more competitive. “A specific programme for development of multi-modal logistics parks, together with multi-modal transport facilities, will be drawn up and implemented,” Arun Jaitley said. “For the transportation sector as a whole, including rail, roads, shipping, the Finance Ministry has proposed ₹2,41,387 crore in 2017-18. This magnitude of investment will spur a huge amount of economic activity across the country and create more job opportunities,” he added. Railways, on its part, will implement end-to-end integrated transport solutions for select commodities through partnership with logistics players, who would provide both front and back-end connectivity. Rolling stocks and practices will be customised to transport perishable goods, especially agricultural products, Jaitley added.

Fillip to port-led development The Hindu Focus on the logistics sector and emphasis laid on encouraging multi-modal logistics parks will give a fillip to the port-led development all along the 7,500-km coastline, top representatives from various industries say. Reacting to Union Finance Minister Arun Jaitley’s Budget speech on Wednesday, those in the logistics sector said that the thrust given to rural economy and port-led development by developing the Visakhapatnam-Chennai Industrial Corridor and East Coast Economic Corridor, and setting up of economic zones in the coastal areas would enhance the demand for cargo-handling. “We are very happy with the priorities attached in the Budget. We already have plans for two multi-modal logistic parks in the Visakhapatnam area and another is in the pipeline. Manufacturing regaining buoyancy will definitely encourage cargo containerisation,” Visakhapatnam Port Trust Deputy Chairman P.L. Haranadh told.

Union Budget: Encouraging to see govt committed to GST in 2017 Live Mint The Union budget was expected to make minimal changes in the customs and excise duties and service tax to send a clear signal on the government’s seriousness to implement the goods and services tax (GST) regime in 2017. Even the murmurs about a service tax rate increase to align with the GST rate structure were speculative in my personal view. So as the finance minister’s budget speech unfolded, it was great to hear that he has preferred to avoid making changes in the current excise and service tax regime since GST is around the corner. Even the temptation to raise service tax incrementally was given a pass, which is indeed welcome. Customs and excise duty standard rates have also been maintained. This now signals an intent to implement the tectonic and transformative GST in 2017. Any lingering doubts around GST are now laid to rest and it’s time for all stakeholders to take note and prepare for this journey in right earnest.

Govt to launch TIES to fund export infrastructure Business Standard A new scheme will be launched in 2017-18 to create infrastructure for exports, a move aimed at reducing transaction costs for traders. "A new and restructured central scheme with a focus on export infrastructure, namely, Trade Infrastructure for Export Scheme (TIES) will be launched in 2017-18," Finance Minister Arun Jaitley said in his Budget speech. Indian exporters face huge challenges in terms of infrastructure, particularly in states. Inadequate infrastructure pushes their transactions costs, impacting competitiveness of Indian goods in the global markets. Exporters body Federation of Indian Export Organisations (FIEO) said the scheme will help create modern infrastructure like last mile connectivity to ports, testing labs and certification centres. "This is a welcome move. The scheme will help in modernising infrastructure in states for exporters," FIEO DG Ajay Sahai said.

Goods imported via Indian ports to become dearer Kathmandu Post Foreign goods imported to Nepal via Indian sea ports are going to become expensive, as the Indian government has imposed 4.5 percent service tax on ocean freight cost, drawing criticisms from Nepali traders. Although the Indian government had introduced the tax for its importers, the provision has affected Nepali traders as well, as Nepal fully relies on Indian clearing agents to handle third-country goods that land at Indian ports. These agents have already started transferring the additional cost to Nepali importers, making third-country goods imported via Indian ports expensive. “It is illegal to impose such a tax on transit cargoes, but the Indian government simply does not care,” said Rajan Sharma, former president of the Nepal Freight Forwarders Association.

Kakinada anchorage port to get face lift Maritime Gateway The age old anchorage port here being given a face lift with development of roads at a cost of Rs 10 crore and construction of a passenger Jetty in full swing. The deep water port which is under private management is now equipped with another berth the seventh in series. While the anchorage port has handled 15 lakh metric tonnes of cargo, the deep water port handled 89 lakh metric tonnes ushering a new era in sea trade. East Godavari District Collector H.Arun Kumar said that land for the container corporation was allotted for handling container cargo at the deep water port. He said that Rajahmundry Airport was also being developed by extending the existing run way from 1750 meters to 3165 meters enabling it to operate big aircraft such as Boeing -739 and A-320.

Indian import tax raises costs, confusion JOC A new tax on logistics services for Indian imports is creating costs and confusion that threaten the steady declines in freight rates from North America and China to India, which now average around $900 per 40-foot-equivalent unit and $500 per 20-foot-equivalent unit. The Ministry of Finance on Jan. 22 introduced a service tax of 4.5 percent on “prepaid” freight and other charges for all cargo discharged at Indian ports, meaning that import deliveries booked on a “cost and freight,” or C&F, basis are subject to the new tax. “The service tax is payable by vessels arriving at any port in India to discharge import cargo, even where agreements for provision of transportation of goods into India have been entered into outside India, between foreigners,” a maritime legal expert told

Grim outlook for panamax container ships Hellenic Shipping News The beleaguered classic panamax containership sector remains under pressure despite a massive scrapping spree that has seen 130 panamax units of 4,000- 5,100 teu removed from the fleet since 2009, including 44 units scrapped in the last four months alone. The panamax fleet currently counts 563 ships, against 643 units two years ago. Two 4,250 teu panamax ships, the INDIA RICKMERS (built Feb 2009) and HAMMONIA GRENADA (built Jan 2010), became the youngest-ever containerships to be scrapped late last year, but the pace of scrapping is barely catching up with the rate at which panamaxes are being displaced by larger ships on trans-Panama routes. Since the opening of the new Panama Canal locks in June last year, 133 panamax ships have been removed from this route.

Major Ports to Go Green, to Save Rs. 75 Crore Annually Business Standard The Ministry of Shipping, as a part of its Green Port Initiative has been emphasizing on use of renewable sources of energy to power Major Ports across the nation. The Ministry aims to set up 91.50 MW of solar energy capacity at the twelve Major Ports and 45 MW of wind energy capacity by the two Major Ports of Kandla and V. O. Chidambaranar. Major Ports have started the process of setting-up renewable energy projects by investing Rs.704.52 crores (Solar Rs. 412.02 Cr and WindRs. 292.50 Cr) in these projects. When completed, these renewable energy projects will help in the reduction of carbon dioxide emission by 136,500 MT annually. These projects will also help to reduce cost of power purchased by utilization of renewable energy for power generation, resulting in estimated saving of Rs 75 crores annually, when fully commissioned.