BIMCO’s latest Shipping Market Overview and Outlook

India's Free Trade Agreements (FTAs) with major partners such as Japan, Malaysia, South Korea and the ASEAN bloc have not widened trade deficit or increased export of raw materials from the country, according to initial findings of a Government study.

However, Indian exporters, too, have not been able to use the trade pacts to their full potential because of low awareness. The Government is now making efforts to disseminate information more widely.

“Though preferential imports have been increasing from the period 2009-2010 to 2013-14, they are still not significant, ranging from 3.4 per cent of total imports under FTA with Malaysia to 22.4 per cent of total imports under India-Japan FTA,” according to an official release by the Commerce Ministry.

Preferential imports are low compared to total imports from FTA partner countries because sellers find it difficult to meet the tough Rules of Origin (ROO) norms under the FTAs stipulating high value addition requirements.

“Since preferential imports have been low from FTA partner countries, there is no question of these affecting our domestic market or widening the trade deficit,” a Commerce Ministry official said. The FTAs have also not resulted in any increase in consumer goods imports and only an “insignificant”' rise in automotives imports, the Commerce Ministry study said.

On the other hand, imports of intermediate goods have increased which means that India is becoming part of the regional value chain of South Asia.

The Commerce Ministry, however, doesn’t have data on exports through the preferential route as the Customs department does not track these numbers. “We are talking to our partner countries and trying to assimilate data,” the official added. Overall export data of items covered under the FTAs show that there has been no increase in shipments of raw-material from the country, the study added.

It also shows that exporters are not exploiting the FTAs to their advantage.

“The use of these agreements by our exporters is a matter of concern. But we are making a lot of efforts to disseminate information by strengthening our outreach programme and making details on such pacts available on our website,” the official said. The ministry is also in the process of developing a comprehensive portal about FTAs.

Read More

Safarer Fatigue: The Importance of a Good Sleep

Proper sleep, is not merely a matter of personal comfort. It is vital to a persons’ physical and mental well-being and the most effective weapon against the onset of fatigue. Research experience has shown us that persons suffering from the effects of fatigue are more likely to make mistakes which can lead to accidents, injuries and loss of life.

This is particularly true on ships, where crew are engaged in both physically and mentally demanding work, at times in dangerous situations and having to fulfil work rosters that are tight and demanding for all on board. The continuously changing time – zone on an international run as well as living in a confined space for days on without family and friends, and the resultant psychological stress make the situation even more aggravating in terms of fatigue.

Pursuant to the Maritime Labour Convention (MLC) 2006, which came into force on 20^th August 2013, the standards for (A) maximum hours of work and (B) minimum hours of rest, under Title 2, are: no more than 14 hours in any 24 hours period and no more than 72 hours in any 7 day period; or at least 10 hours in any 24 hour period; and at least 77 hours in any 7 day period. There are only limited exceptions, and generally it would be a matter of the vessels’ immediate safety with respect to a justified overrun of working hours. A seafarer cannot be asked to exceed his mandated rest / work hours, nor can he be enticed to do so against payment of overtime.

It should be noted that the regulations refer only to ‘rest’ and not to ‘sleep’. Shore – side and shipboard management should bear in mind that a seafarer cannot sleep for the entire duration of their rest period. Research has shown that seafarers spend, on average, between 1 ½ and 2 hours of their daily rest periods engaged in functions such as eating, bathing, communicating with family and friends, laundry, etc. in addition to this, it is important to allow seafarers time for recreational activities such as reading and exercising.

Studies have shown that it is not merely rest that the human body requires, but the key is sleep. And again, it is not just any form of sleep over a period of time that counts. The seafarer, like everyone else needs proper continuous and uninterrupted sleep for 7 to 8 hours in order to be properly rested. When, due to watch-routines a seafarer must sleep twice in a 24 hour period, the total amount of sleep required increases to 8 – 9 hours.

Fatigue may come about after an extended period without sleep, or as a result of a person experiencing poor, interrupted or too little sleep over a number of days. It is uncommon, particularly in short-sea trades, for seafarers to follow a 6 hours on, 6 hours off watch routine, often for several days or weeks in succession.  

Guidelines for Achieving Quality Sleep:

Bedding: An uncomfortable bunk does not lend itself to good quality sleep. It is important to provide good quality mattresses and pillows.

Temperature: The best sleep will be achieved if the temperature is maintained between 18 and 22 C (65 – 72 F).

Light: Ensure cabins can be darkened effectively (Black – out blinds are inexpensive and will improve sleep quality, particularly for crew required to sleep during daylight hours).

Noise: Excessive noise will obviously affect sleep quality and continuity. Try to minimise noise in the vicinity of sleeping crew by segregating watch – keepers’ cabins and considering crew who may be sleeping when planning work in the vicinity of crew cabins.

Preparation: The contact with bright screens such as computers and televisions should be avoided for at least 60 minutes prior to sleeping. Whenever possible, a period of relaxation should be allowed between completion of a duty period and sleeping.

Nourishment: Going to sleep hungry should be avoided, but sleeping immediately after eating can also have a negative impact on the quality of sleep.

Read More

Nigeria is now Free of Ebola Virus Transmission

The lines on the tabular situation reports, sent to WHO each day by its country office in Nigeria, have now been full of zeros for 42 days. WHO officially declares that Nigeria is now free of Ebola virus transmission. This is a spectacular success story that shows that Ebola can be contained. The story of how Nigeria ended what many believed to be potentially the most explosive Ebola outbreak imaginable is worth telling in detail. Such a story can help the many other developing countries that are deeply worried by the prospect of an imported Ebola case and eager to improve their preparedness plans. Many wealthy countries, with outstanding health systems, may have something to learn as well.

The complete story also illustrates how Nigeria has come so close to the successful interruption of wild poliovirus transmission from its vast and densely-populated territory. Earlier this year, WHO confirmed that Nigeria had eradicated guinea-worm disease – another spectacular success story. When the eradication initiative was launched, Nigeria was the epicentre of this disease, with more than 6,50,000 cases reported each year.

When laboratory confirmation of the country’s first Ebola case, in Lagos, was announced on 23 July, the news rocked public health communities all around the world. Nigeria is Africa’s most populous country and its newest economic powerhouse. For a disease outbreak, it is also a powder keg. The number of people living in Lagos – around 21 million – is almost as large as the populations of Guinea, Liberia and Sierra Leone combined. Lagos, Africa’s largest city, is also characterized by a large population living in crowded and unsanitary conditions in many slums.

Thousands of people move in and out of Lagos every day, constantly looking for work or markets for their products in a busy metropolis with frequent gridlocks of vehicular traffic. With assistance from WHO, the US Centers for Disease Control and Prevention (CDC), and others, government health officials reached 100% of known contacts in Lagos and 99.8% at the second outbreak site, in Port Harcourt, Nigeria’s oil hub.

Federal and State governments in Nigeria provided ample financial and material resources, as well as well-trained and experienced national staff.  Isolation wards were immediately constructed, as were designated Ebola treatment facilities, though more slowly. Vehicles and mobile phones, with specially adapted programmes, were made available to aid real-time reporting as the investigations moved forward.

The Nigerian response to the outbreak was greatly aided by the rapid utilization of a national public institution (NCDC) and the prompt establishment of an Emergency Operations Centre, supported by the Disease Prevention and Control Cluster within the WHO country office. Another key asset was the country’s first-rate virology laboratory affiliated with the Lagos University Teaching Hospital. That laboratory was staffed and equipped to quickly and reliably diagnose a case of Ebola virus disease, which ensured that containment measures could begin with the shortest possible delay. In addition, high-quality contact tracing by experienced epidemiologists expedited the early detection of cases and their rapid movement to an isolation ward, thereby greatly diminishing opportunities for further transmission.

WHO country team of epidemiologists, clinicians, logisticians and administrators have identified a number of specific lessons that may be useful for other countries facing their first imported Ebola case or preparing for one. They have also carefully documented a large number of “best practices” for containing an Ebola outbreak quickly.

The most critical factor is leadership and engagement from the head of state and the Minister of Health. Generous allocation of government funds and their quick disbursement helped as well. Partnership with the private sector was yet another asset that brought in substantial resources to help scale up control measures that would eventually stop the Ebola virus dead in its tracks. Health and government officials fully appreciated the importance of communication with the general public. They rallied communities to support containment measures. House-to-house information campaigns and messages on local radio stations, in local dialects, were used to explain the level of risk, effective personal preventive measures and the actions being taken for control. On his part, the President reassured the country’s vast and diversified population through appearances on nationally televised newscasts. The full range of media opportunities was exploited – from social media to televised facts about the disease delivered by well-known “Nollywood” movie stars.

Nigerian government and health officials, including staff in the WHO country office, are well aware that the country will remain vulnerable to another imported case as long as intense transmission continues in other parts of West Africa. The surveillance system remains on guard, at a level of high alert.

Read More

Shenzhen, China – Green Shipping Incentive Scheme

The Shenzhen Municipal Government, China, has announced an incentive scheme to encourage vessels to switch to low sulphur fuels or to connect to shore power whilst berthed at the region's ports.

Applied on a voluntary basis, the incentive scheme will consist of rebates to vessel operators thought to be in the region of 75-100% of the cost difference between low sulphur fuel and heavy fuel oil. Vessels connecting to shore power will be charged RMB 0.7/kWh (approximately 11 US¢/kWh at today's rate), with the remainder subsidised by the government.

The incentive scheme will take effect from October 2014 and it is understood that it will run for three years. The announcement also revealed that the Shenzhen Municipal Government is working with the Guangdong Provincial Government and the Chinese Central Government with a view to establishing a sulphur emission control area covering the Pearl River Delta by 2018.

The point covered under "Green Shipping Shenzhen Declaration" can be viewed as below:

1.      Recognize the seriousness of Air pollution – fully support the national and provincial government policies to control emission from marine sectors, deploy different shipping methods to reduce air pollution.

2.      Accelerate the construction of the onshore power supply (OPS) facilities – deploy new vessels that are OPS capable to Shenzhen port and accelerate the retrofitting of the existing fleet with OPS capability so as to increase the utilization rate of OPS.

3.      Promote the use of low sulphur fuel oil by fleet – commit to using low sulphur fuel oil by auxiliary engine and boiler when vessel is at berth.

4.      Strive for new technology and construct new vessels with lower emission – reduce vessels speed in Shenzhen waters so as to reduce emission.

5.      Change in container movement in port and promote the use of intermodal “vessels to rail” transport or “vessel to vessel” transport so as to build a high efficiency and low carbon port.

6.      Optimize the pier design, handling technology, energy – saving equipment, information technology and production organisation, effectively allocate various elements and resources to create intelligent port.

Establish a green policy, search for innovation of the port development model – promote the use of clean fuels in port machineries and in the overall port strategic development plan.

Read More

North P&I Club warns of Poor Construction in Newbuilding Market.

North, part of North Group, is a leading marine mutual liability insurer providing P&I, FD&D, war risks and ancillary insurance to 130 million GT of owned tonnage and 50 million GT of chartered tonnage. It is based in Newcastle upon Tyne, UK with regional offices in Greece, Hong Kong, Japan and Singapore. The Club is a leading member of the International Group of P&I Clubs (IG), with around 13% of the IG's owned tonnage. The 13 IG clubs provide liability cover for approximately 90% of the world's ocean-going tonnage and, as a member of the IG, North protects and promotes the interests of the international shipping industry. In February 2014 North completed a merger with Sunderland Marine, which operates within North Group as an independent regulated insurer guaranteed by North. Sunderland Marine is a leading insurer of fishing vessels, small craft and aquaculture risks. It is based in Durham with offices in Australia, Canada, the Netherlands, New Zealand, South Africa and North America.

The North P&I Club has warned its Members to check their new ships very carefully before accepting delivery. In the latest issue of its loss prevention newsletter Signals, the Club says it has become aware of several of instances of poor construction that is potentially dangerous in the newbuilding market. According to Tony Baker, Head of North's Loss Prevention Department, 'We have been made aware of instances recently where newly constructed bulk carriers and general cargo ships have been delivered from the shipbuilder with partly completed or poorly constructed ladders in the cargo holds, for example.'

The Club reports that ships are being delivered with cargo hold access ladders, platforms and their cages constructed and secured to the bulkheads only by tack welds, rather than being fully welded. 'When subject to a load or any other applied stress, such as vessel movement, the tack welds have failed and resulted in an unsafe access to and from the cargo hold. This introduces a very high risk of injury to crew members, stevedores and any third parties entering or leaving the cargo hold.'

In addition to accidents, North warns that defects can also result in costly delays and port state control problems. While the cost of repairs for defects that fall within a newbuilding's warranty period will often be recoverable from the shipbuilder, the Club says any costs incurred through consequential losses, as a result of such a defect, are unlikely to be recoverable.

'Shipowners and their superintendents taking delivery of newbuilding's in the current market need to be extra vigilant to ensure that all parts of the ship - including hold access ladders - are defect free,' says Baker. 'The first few months that a vessel enters service are amongst some of the busiest, during which time hidden or previously unnoticed build defects will soon become apparent, potentially resulting in serious accidents and delays.'

Read More

Gujarat to become textile hub of India in 5 years.

Gujarat, through its focused policy for textile industry, will regain its lost glory of ‘Manchester of the East’. In the next five years, Gujarat will emerge as the country’s textile hub offering business as well as employment opportunity, as per Saurabh Patel state finance minister.

Holding the past government responsible for the plight of Gujarat’s textile industry, Patel said, “Textile industry had earned the city of Ahmedabad a name of ‘Manchester of the East’ in the pre-independence era. But due to unsuitable policies of the past government this industry has died down.”

Mr. Patel further maintained that state government has set a target to increase the share of the manufacturing sector in the Gross State Domestic Product (GSDP) from 16 per cent at present to 32 per cent in next 5-7 years. “For this textiles sector is a focus area for the state. From cotton to garment, state government will provide subsidies and incentives,” he said during the inaugural address at the Indian International Fabric Expo 2014 organised by the Power loom Development and Export Promotion Council (PDEXCIL).

He maintained that besides being the largest cotton producer state, Gujarat produces 31 per cent of the country’s total man-made fiber and 38 per cent of the yarn is produced in the state.

The state government has set a target to set up 2.5 million spindles in the next seven years. Mr. Patel maintained that state government’s new textiles policy will encourage investors and create new employment opportunities in state’s textile sector. This would be of benefit to the container trade as the above cargo would be available for export shipments onboard container vessels.

The three-day exhibition has about 100 visitors from 20 countries including Vietnam, Cambodia, Turkey, Sri Lanka, Dubai, Bangladesh, Poland, Canada, Malaysia, Ghana, Senegal, Zimbabwe, Egypt and Australia. The shipping industry would welcome the above development.

Read More

Govt finds its alternative way of DG Shipping in maritime authority

The Union Government’s plan to set up a National Maritime Authority, in tune with the global trend, is an important initiative that can provide a much needed shot in the arm to improve the maritime administration.

The shape and structure of the authority is yet to be spelt out, but the indication is that it will be on the lines of the proposed Civil Aviation Authority, a centralised agency overseeing the activities of the sector. 

This means the proposed authority will replace the Directorate General of Shipping, a department under the Shipping Ministry, which handles maritime administration under the existing regime.

The move would put India on the same page as the United States, the United Kingdom, the European Union and Australia that follow the model of independent maritime authorities.

For instance, the sector is governed by world regulations, mainly adopted by agencies such as International Maritime Organisation. Ship owners and others engaged in sea trade have to comply with these rules, and it is the responsibility of a country’s maritime administration to ensure these are implemented effectively. As more than 90 per cent of India’s trade by volume and 70 per cent trade by value moves by sea, maritime transport is crucial. It also underscores that India needs a stronger maritime administration.

For the proposed authority to handle these challenges effectively, it would need to ensure: Functional and financial autonomy, and the size and quality of human and technical expertise. While the autonomy requirement can be enshrined in the authority’s constitution, the more important factor that can make the difference depends on the skill set. The role of a maritime administration comes under three categories. In technical terms, these are called flag state, port state and coastal state controls. The first deals with registration of ships flying the country’s flag, the second covers mainly inspection of foreign ships calling at the country’s coast and the third is basic facilitation services including pollution control, navigational warning and search and rescue operations. The DG Shipping handles all the three responsibilities.

Consistent improvement in the working of the DG administration has been observed in the past years, however there are also opportunities observed. However setting up of a maritime authority would be a welcome change for the further development and growth of the Indian Shipping Industry.

Read More

Cochin Shipyard pays INR. 16.99 cr Dividend

Cochin Shipyard Limited is the largest shipbuilding and maintenance facility in India. Of the services provided by the shipyard are building platform supply vessels, double-hulled oil tankers, product carriers, passenger vessels. CSL has also managed to secure shipbuilding orders from internationally renowned companies from Europe and Middle East and is presently building the country’s first indigenous Air Defense Ship. CSL also undertakes repair operations for all types of ships including upgradation of ships, periodical layup repairs and life extension of ships. The yard has over the years developed adequate capabilities to handle complex and sophisticated repair jobs. The Shipyard also trains graduate engineers to marine engineers who later join ships both Indian and foreign as 5th Engineers. 100 are trained every year.

Cochin Shipyard Limited (CSL) has paid a dividend of INR. 16.99 crore to the Centre. It is for the 6th consecutive year, the PSU company is paying the dividend. The dividend cheque was handed over to Union Shipping Minister Nitin Gadkari by Chairman and Managing Director of CSL K Subramaniam. The dividend is of Rs 1.5 per equity share on the 11,32,80,000 fully paid equity shares of INR. 10 each. In addition, the yard has also contributed INR. 162.10 crore to the exchequer by way of VAT, Income Tax, Fringe Benefit Tax, Excise Duty, Customs Duty and Service Tax during the year 2013-14.

A statement issued here pointed out that the performance of the yard had been consistently impressive in the last several years despite a very challenging business environment in the shipbuilding/ship repair and shipping scenario.

The company’s turnover has increased five fold from INR. 373 crore in 2005-06 to INR. 1,637 crore in 2013-14. The net profit has more than doubled during the period from INR. 94 crore to INR. 194 crore.

Considering the sluggish market, the yard performed creditably by posting an increase of 5 per cent, both in turnover which increased from INR. 1,554 crore in 2012-13 to INR. 1,637 crore this year and in net profit which was up from INR. 185 crore in 2012-13 to INR. 194 crore this year.

The company is looking at enlarging its product range and is actively pursuing the construction of dredgers and LNG vessels.

Read More

Power Sector in India

When India became independent in 1947, the country had a power generating capacity of 1,362 megawatt (MW). Today, India is the sixth largest in terms of power generation and the per capita power consumption in the country is 733.54 kilowatt-hours per year (kWh/yr). It is said that power or electricity is the most critical component of infrastructure, which affects the economic growth and well-being of a nation. Presently, about 65 per cent of the electricity consumed in India is generated by thermal power plants, 22 per cent by hydroelectric power plants, three per cent by nuclear power plants and the rest 10 percent come from other alternate sources like solar, wind, biomass, etc. With major developments in the infrastructure sector and improvement in the standard of living, the demand for power in the country is expected to grow at a rate of 10-12 per cent up till 2017.

The power sector is mainly divided into three major pillars: Generation, Transmission, and Distribution. The generation is divided into also three sectors: Central Sector, State Sector, and Private Sector. Indian solar installations are forecasted to be approximately 1,000 MW in 2014, according to Mercom Capital Group, a global clean energy communications and consulting firm.

The investment climate is positive in the power sector. Due to policy of liberalisation, the sector has witnessed higher investment flows than envisaged. The Ministry of Power has  proposed for the addition of 76,000 MW of power capacity in the 12th Five Year plan (2012-17). The Ministry has set a target of adding 93,000 MW in the 13th Five Year Plan (2017-2022). The industry has attracted FDI worth INR. 43,530.99 crore (US$ 7.24 billion) during the period April 2000 to May 2014. Some of the major investments made into the Indian power sector are by Suzlon Group, Tata Power Renewable Energy Ltd – subsidy of Tata Power, Jakson Group, Bharat Heavy Electricals Ltd (BHEL), Swelect Energy Systems (SWEES).

India has emerged as one of the fastest growing economies in the world. Its current economic performance reflects a healthy trend based on increased consumption, investment and exports. Over the next five years, this growth is expected to continue. The Government of India has identified the power sector as a key sector of focus to promote sustained industrial growth.

India currently operates 19 atomic reactors which produce 4,780 MW of electricity and has set an ambitious target of generating 63,000 MW nuclear power by 2032. With many bilateral nuclear agreements in place, India is expected to become a major hub for manufacturing nuclear reactors and associated components. Market-oriented reforms, such as the target of 'Power for all' by and plans to add 88.5gigawatts (GW) of capacity by 2017 and 100 GW by 2022, provide high incentives for capacity addition in power generation, which would increase the demand for electrical machinery. Foreign participation in the development and financing of generation and transmission assets, engineering services, equipment supply and technology collaboration in nuclear and clean coal technologies is expected to increase.

Read More

OIL and GAS Industry in India

As per a recent report, the oil and gas industry in India is anticipated to be worth US$ 139,814.7 million by 2015. With India’s economic growth closely linked to energy demand, the need for oil and gas is projected to grow further, rendering the sector a fertile ground for investment. To cater to the increasing demand, the Government of India has adopted several policies, including allowing 100 per cent foreign direct investment (FDI) in many segments of the sector, such as natural gas, petroleum products, and refineries, among others. The government’s participation has made the oil and gas sector in the country a better target of investment. Today, it attracts both domestic and foreign investment, as attested by the presence of Reliance Industries Ltd (RIL) and Cairn India.

 

During FY14, the total consumption of petroleum products in India was 158.2 million tonnes (MT). The share of fuels in the country's exports surged from 5.59 per cent in 2003-04 to 20.05 per cent during 2013-14. India is the fourth-largest consumer of oil and petroleum products in the world. Its energy demand is projected to touch 1,464 million tonnes of oil equivalent (Mtoe) by 2035 from 559 Mtoe in 2011. Furthermore, the country’s share in global primary energy consumption is anticipated to double by 2035.

 

According to data released by the Department of Industrial Policy and Promotion (DIPP), the petroleum and natural gas sector attracted foreign direct investment (FDI) worth INR. 31,501.55 crore (US$ 5.13 billion) between April 2000 and July 2014. Some of the major investments and developments in the oil and gas sector in India have been observed due to companies like ONGC Ltd, Reliance Industries Ltd (RIL), ONGC Videsh Ltd (OVL), Oil India Ltd (OIL), Essar, Larsen & Toubro, Indian Oil Corporation Ltd (IOCL) and GAIL (India) Ltd.

 

Government initiatives can be noted with steps taken by the committee of Ministry of Environment and Forests - India, who has given a go ahead to IOCL’s INR. 4,320 crore (US$ 703.81 million) liquefied natural gas (LNG) terminal project at Ennore, near Chennai. The proposed facility’s capacity will be five million tonnes per annum (MTPA). The terminal is expandable to 10-15 MTPA. This is part of the corporation’s INR. 56,000 crore (US$ 9.12 billion) investment plan for the 12th Five-Year Plan (2012-17).

 

By 2015-16, India’s demand for gas is set to touch 124 MTPA against a domestic supply of 33 MTPA and higher imports of 47.2 MTPA, leaving a shortage of 44 MTPA, as per projections by the Petroleum and Natural Gas Ministry of India. Moreover, Business Monitor International (BMI) predicts that India will account for 12.4 per cent of Asia-Pacific regional oil demand by 2015.

 

Read More

Traffic at Cochin Port Rises by 17% in August 2014

Traffic across 12 major ports in the country rose by 1.4 per cent in August 2014 on a y-o-y basis. Eight ports witnessed a rise in traffic and four saw a decline, of which particularly the steep fall in traffic at the Chennai and New Mangalore port pulled down the overall traffic at the 12 major ports. On a cumulative basis, from April 2014 to August 2014, traffic at these ports was higher by three per cent y-o-y.

Cochin port registered a significant increase of 17.5 per cent y-o-y in the movement of cargo. Total traffic handled by the port rose from 1.9 million tonnes in August 2013 to 2.2 million tonnes in August 2014. Petroleum, Oil and Lubricant (POL) products primarily drove the rise in traffic. Their movement rose from 1.2 million tonnes to 1.6 million tonnes.

Chennai port reported a 6.9 per cent decline in total traffic in August 2014 vis-a-vis August 2013. This change was because of a reduction in the traffic of POL products from 1.1 million tonnes to 0.8 million tonnes. Among the other ports in Tamil Nadu, the Kamarajar (Ennore) port recorded a growth rate of 2.3 per cent in cargo movement, led by POL products. V.O. Chidambaranar port recorded a five per cent growth in cargo traffic. It was driven by a 17.5 per cent increase in the movement of thermal coal and 23.5 per cent rise in miscellaneous cargo.

Mumbai port witnessed a 5.3 per cent rise in traffic. The rise was a result of a higher traffic of POL products, iron & steel and other miscellaneous cargo. On the other hand, for August 2014, JNPT port saw a slight decline of 1.5 per cent in traffic handled. This was because of a 21.8 per cent fall in the movement of POL products to 1,639 tonnes. Cumulative growth between April and August 2014 in traffic at JNPT was, however, positive at 3.5 per cent, vis-à-vis the corresponding period last year.

Kolkata port showed strong growth of nine per cent in cargo movement. This was driven by increased traffic of vegetable oils and containerised cargo. However, Haldia port showed only a modest growth of 1.7 per cent in traffic.

Mormugao registered a y-o-y growth of 6.8 per cent in total traffic in August 2014. It also saw a cumulative growth rate of 22.7 per cent y-o-y, the highest among all major ports in the country from April to August 2014. Except for coking coal, the traffic of all other commodities rose during this period. While Mormugao registered a growth of 6.8 per cent, traffic handled at New Mangalore port declined by an almost similar figure (6.4 per cent). The decline in cargo traffic at the port was relatively less at 4.2 per cent y-o-y, during the period from April to August 2014. This fall came largely from a decline in the POL traffic at 10.4 per cent.                        

Read More

Major Ports need Single Agency for Shore Handling of Ships

Amid India's non-major ports eating into the share of 12 major ports, a government-appointed panel has recommended ensuring that shore handing of vessels be done by a single agency to improve the profitability of centre-owned ports. Unlike about 200 non-major ports, there are multiple agencies for shore handling and stevedoring at major ports presently.

"The non-Major Ports have by and large a system of having one agency looking after all the work of unloading / loading of ships and shore handling of cargo in their port. This gives a more focused approach to marketing of the port," the committee said.

The recommendations are aimed at protecting major port’s interests amid their market share nose-diving to 57 per cent in 2013-14 from 91 per cent in 1994-95.

The Committee said work could be handled efficiently by single operators providing example of PPP berths in Major Ports where the terminal operator gets to do end to end handling, unloading / loading and delivery / receipt of cargo for the ships.

"In fact only about 23 per cent of the traffic of Major Ports in 2012-13, amounting to about 124 million tonnes, which is mostly non-mechanised, gets handled by stevedores; with 54 PPP projects awarded in the last two years, this is likely to fall even more," it said.

A stevedore is the name given to an agency that transfers cargo between ship and shore.

India has about 200 non-major ports and 12 major ports - Mumbai, Jawaharlal Nehru Port, Kolkata (with Haldia), Chennai, Visakhapatanam, Cochin, Paradip, New Mangalore, Marmagao, Port Blair, Tuticorin and Kandla

The Narendra Modi led-government has also initiated steps aimed at "corporatising" major ports and has started the process for appointment of a world-class consultant to come out with a draft report for amendments in the relevant act. The move is aimed at infusing professionalism in the major ports in order to make them compete with private sector ports by empowering them with additional financial autonomy. These ports have also been asked to come up with a shelf of projects to augment their capacity to 1600 MT from the present 800 MT in next five years.

Read More

“Go Paperless” initiative by Shipping Ministry for Port Operations

As per recent decision taken by the government, ports under the shipping ministry plan to go paperless. This move will not only reduce logistics costs but also cut bureaucratic delays faced by exporters and importers.

A senior government official said that the idea is to do away with the requirement of manual stamping at each point for moving containers, which adds to delays in cargo evacuation. The new mechanism will first be tried out at the Nhava Sheva Container Terminal at Jawaharlal Nehru Port Trust over the next two months. If successful, the 'go-paperless' initiative will be extended to all the other major ports under the shipping ministry. "Congestion is a big problem. If trucks can simply drive through once Customs has given clearance, then it will solve a lot of problems," the official said.

The move will have a direct impact on efficiency of ports, which have been trying to mechanise operations for long. Once a system is put in place, evacuation time per container will go down to 15 seconds, from 4-5 minutes, which will bring down logistics costs in the long run. Besides, the automated system will ensure transparency and curb any unnecessary payments that traders might have to make to get their trucks moving

"This is a delayed but much desired decision," said Ajay Sahai, Director-General and CEO of Federation of Indian Export Organisations (FIEO). "While Customs and banks are on Electronic Data Interchange mechanism, shipping hasn't come on board yet completely." According to FIEO, the initiative will bring down transaction costs by 2-3%, which will accrue benefits of $16-24 billion.

Under the new system, a container will not require a 'gate pass' to be transferred from one point to the other. A simple electronic message by Customs will be enough for smooth passage through the remaining stops in the journey.

The shipping ministry is also in the process of upgrading software of the existing port community system to achieve seamless connectivity between different points. At present, all cargo requires dock receipt, customs clearance, mate receipt by the shipping line and finally the bill of lading, saying the goods have been put on board.

Read More