SeaPorts Business

B U S I N E S SFACILITATING SHIPPING & MARITIME COMMERCE

SeaPorts connecting global wealth creators

Dec’ 12 - Jan’ 2013

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Amsterdam Ports Keen to Play in IndiaKrishnapatnam: Eastern Coal HubEnnore Port Explores PPP Route

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Multimodal Transport

Andhra Pradesh

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INTERVIEW

Port Focus: Andhra Pradesh

Upbeat about Long-term Prospects in Logistics Projects

Plans to Expand India Operations in a Big Way

Shipping Still in Rough Waters, but Indian VLCS & LPG Market Buoyant

Dec’12-Jan’ 201304B U S I N E S S

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B U S I N E S SSeaPorts

NEWS

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Visakhapatnam Port on a High Tide of Development

Emerging Gateway to South-East Asian Sea Trade

VCT; the harbinger of change in container shipment in the East Coast

The Coal Hub of India

28

Multimodal Transportation

Lemuir Group

Konecranes

Great Eastern Shipping

Emerging Trends

seaportsbusiness @seaportbusiness Seaports Business

Dec’ 12-Jan’ 201305B U S I N E S S

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Editorial

Promoting Green PortsThe Vizhinjam port project in Kerala is being touted as the first green port in India. The port's master plan includes several parameters to reduce carbon footprints. Vizhinjam port is also set to become India's biggest transhipment container terminal. This would mean the port will be able to handle berthing requirements of some of the largest vessels afloat today, giving it an edge over neighbouring Colombo port. The 125-page Vizhinjam port master plan was recently approved by the Directors' Board of Vizhinjam International Seaport Limited. A copy of the plan has been forwarded to the International Finance Corporation, which is currently doing the Environment Impact Assessment (EIA) study. On completion the EIA report, along with a Detailed Project Report (DPR), will be submitted to the State Pollution Control Board for public hearing. Both reports will then be submitted to the Union Ministry of Environment & Forest for final clearance.

As the project moves to the next stage of implementation one can only hope all the environmental clearances are already in place. The apprehension is because there is a critical trade-off between a fragile ecology and economic prosperity, which is very difficult to decide. Kerala is a coastal state with a rich but fragile marine ecology, and its economic prosperity is derived by overseas remittances from oil rich economies in the far away Persian Gulf. Surely this project will bring prosperity to its hinterland, it will become a classic example of port led growth and economic development in Kerala.

Among other things, this issue brings you a feature on Krishnapattanam Port's emerging status as the coal hub on india's east coast. KPCL set a new record by handling the largest parcel size of bulk cargo handled by any port in India when cape vessel 'MV. Wisdom Of The Sea 1' carrying 166,060 MTs of SA non-coking coal berthed there recently. Its neighbour Gangavaram Port is not far behind, it achieved another milestone by handling the 100th Cape-size vessel “MV Collonges” carrying 1,40,609 MT of coking coal. Cape-size vessels are the largest ships to carry dry-bulk cargo like coal. This bodes well for the maritime state, which is a gateway for cargo destined for Central and South India.

Do send us your feedback on the focus and content of our second issue. We want your suggestions to finetune SeaPorts further, so it becomes an interactive platform for discussing and debating issues affecting all stakeholders in the Ports, Shipping, and Logistics sectors.

Bipin SinhaExecutive Editor


SeaPorts

With India engaged in the development of infrastructure on a large scale involving huge investments, Pankaj Gadhia, CEO of the Lemuir Group, looks forward to many avenues opening up for project cargo handling and logistics services, in which his company specializes. In an exclusive interview with the SeaPorts Business magazine, Gadhia also talks about the bright future prospects of sea trade and the Group's competitive services such as handling high value cargo. Excerpts.

What is the outlook for sea trade the world over, both short-term and long-term, against the backdrop of the global financial meltdown in recent years?

indigenous and Chinese technologies were tapped by private sector players including Reliance Infra, Lanco, Tata Power, JSW, Essar, KSK, GMR, Adani, etc. Today most of these companies are affected due to various reasons and new projects

We are an Indian Company and have been put on hold. The global our focus is on project cargo in and financial meltdown is adding fuel out of India. My response therefore to the fire. is more relevant to India. In the

Companies in the public sector, short-term the outlook is not very including BHEL, NPCIL are also encouraging. Till a year back, on affected and there are delays in the projects front, the most

happening sector was power. With their expansions/projects.power deficiency in the country of

I do not see much improvement in more than 15 percent and with an this situation in the next two years increase in demand expected to or so, unless there is a huge boost meet growth at the rate of 8-9 given by the Government to the percent, several new power private playersprojects were announced. Both

Pankaj Gadhia, CEO,Lemuir Group

Interivew

Upbeat about Long-term Prospects in Logistics ProjectsUpbeat about Long-term Prospects in Logistics ProjectsUpbeat about Long-term Prospects in Logistics Projects

LemuirGroup

Dec’12-Jan’ 201307

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India and China trade lane was one improving services.of the most important ones for

We have gone back to the basics of project cargo transportation. Due focusing on our strengths and core to the drop in volumes and prices, services. We do not venture out in the lines in China are looking at areas which are new or where we alternate sectors to mitigate the shall not be competitive.loss of Indian traffic. Africa –China

trade lane is now taking precedence. This will result in

Fortunately for us, we have some shipping lines reducing their contracts on long term basis with capacity to and from India in the our customers which are helping short run.us. We have the support of service

In the long run, I am very upbeat providers including vessel operators about India. Our infrastructure The market which India as a with whom we have been has to be strengthened which will country provides cannot be associated for several years. In this result in new logistics ignored. The liberalization process industry relationship are very opportunities at least for the next cannot be stalled no matter who is important and my experience is two decades or so. In 2014 in power. This will attract new that investments made in same elections, if the Government's investments when global seldom go waste. dependence on coalition partners economies improve. Demand in

Adding value to the customers' new infrastructure will result in is less, we could see recovery on bottom line and being project cargo activities. Therefore, I fast track.competitive is the key. This is only feel, sea trade potentials are huge possible by rationalizing costs and for the future, provided growth in constantly finding new ways of ports and road connectivity match

arising from the ups and downs of the global economic scenario which has a direct bearing on the sea trade and the cyclical nature of the shipping industry? What is your assessment of

India's sea trade potential, with the economy showing signs of recovery and stability?

How has the Lemuir Group coped with the challenges

Dec’12-Jan’ 201308

Interivew


the demand. I am optimistic and feel that with the right policies and governance, we as a country can double our volumes by 2020.

Lemuir has been at the leading edge in providing integrated logistics services for the valuable security transportation, and This definitely provides huge cargo sector for nearly 30 years, several value added services. opportunities both in terms of since 1983. Lemuir is a reputed specialist in business (resulting in project cargo)

Jewellery Exhibitions and for us as well as for making Lemuir handles all value cargo Trade Shows. investments in new businesses verticals:

which match with our philosophy and support our core business. Lemuir Express: Diamonds

and jewellery

Lemuir Secure Logistics Pvt Ltd: Bullion, luxury goods, fine art, etc.

The logistics services we provide for valuable cargo include international transportation, customs clearance, vaulting,

Yes, the need for cold storage chains is there even today and the demand only will increase with FDI in retail. These customers will demand superior services and better infrastructure and resources. Organizations that can provide both cold storages of global standards and temperature controlled transportation will be at an advantage. This business looks very promising and are following developments very closely.

Give us details of your Group's positioning and operational cutting edge in services in the field of logistics solutions, especially in handling high value goods and commodities such as diamonds, bullion and luxury items.

Infrastructure development is one of the key activities

The government has of the government involving initiated a fresh package of huge expenditure to the economic reforms recently tune of some $150 billion, in the areas allowing FDI in especially in public-private-retail goods. Will this lead to partnership projects. What imports of huge equipment, opportunities does this give goods and setting up of cold Lee & Muirhead?storage chains across the country? Will such a development provide opportunities for your group?

�

Dec’12-Jan’ 201309BB U S I N E S S

SeaPorts

Sami Korpela, MD, Country Manager, Konecranes

Interview

Plans to Expand India Operations in a Big WayPlans to Expand India Operations in a Big WayPlans to Expand India Operations in a Big WayKonecranesKonecranes

Global lifting business major Konecranes finds India as one of the most promising markets in the world today. The Indian Shipping Ministry, which is currently implementing a massive Maritime Agenda aimed at boosting the ports and shipping sectors, offers immense scope for demand for cranes, says the the country head of Konecranes, in an interview with Nachiket Basole. excerpts.

What is the state of lifting business in India and where does Konecrane stand in it?

Has the global meltdown that hit the economies of many countries and businesses, including sea trade, affected Konecranes in any way?

road connectivity. We are lagging behind in infrastructure development. This is also an important factor that is causing lesser growth of ports. We started Over the last one decade, the Konecranes India operations in Indian crane industry has witnessed 2007 and till today we have substantial growth because of the supplied more than 35 Reach growing infrastructure and stackers, total four RTG cranes, manufacturing sectors. Economic two STS cranes and one Level trends, performance of the luffing crane. We are happy to see construction, power and the positive response and brand manufacturing sectors are major recognition from customersfactors affecting the dynamics of in India.the crane industry. The developing

economies like India hold enormous potential for the market owing to the high economic growth rates and the burgeoning industrial products and consumer goods sectors. The Indian market has seen a drastic change in container traffic in last decade, In the year 2001 the container traffic was four Not Really, the global meltdown million TEU and it has grown to has surely affected manufacturing

and at some extent sea trade seven million TEU by 2010. The business, but the future outlook of equipment market of port cranes India is promising and many new has nearly doubled in the last ports and Container Freight decade and it is expected to grow Stations are getting developed in by 15-20 percent in next two years. India, we are receiving good Better ports need better rail and

Dec’12-Jan’ 201310

Interivew


enquiries for our Port cranes in industrial crane brands, like, technology almost entirely removes India and this has not affected to us annual maintenance contacts, on any chance of accidental load drop. anyway. call repair, crane rail inspection, Even during a total loss of power,

rope inspection, crane our cranes can safely lower a load.modernization services to crane

Our nuclear cranes enjoy the full reliability survey.approval of the US Nuclear Regulatory Commission, and are 10CFR50 Appendix B and NQA-1 compliant. They follow the most stringent international safety requirements, including NUREG-0554 and NUREG-0612. Other Konecranes customers can be than polar cranes, Konecranes found across all market sectors like offers, cask crane, cask transporter, automobile, wind energy, steel,

Konecranes' nuclear polar cranes fuel handling crane and Turbine shipyards, general manufacturing, are the result of over 50 years of hall cranes for the most demanding foundries, oil refineries, etc. nuclear industry experience. Our nuclear sector. Konecranes business is arranged polar cranes are designed for safety into two divisions – Equipment & and reliability, with less Service. Business Area Equipment maintenance, a longer life cycle, offers Electric chain hoist, profile and enhanced performance. We are track cranes, standard EOT cranes, recognized as a leading supplier to process cranes, container handling the nuclear industry worldwide. cranes to shipyard cranes and Konecranes polar cranes are quite Forklift & Reach stackers.possibly the safest available on the market today. Our SupersafeTM Business Area Service offers service patented single failure proof and maintenance solutions for all We have aggressive plans for

What are the manufacturing and process industries you are serving You are also serving the other than ports and what nuclear industry, which are your services and calls for the highest solutions for them? standards in terms of safety

and quality. Tell us your operations in this area.

Since power-starved India is on a massive drive to expand capacities in nuclear power generation, what are your plans to cope with future demand for equipment?

Dec’12-Jan’ 201311

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growing power sector in India, nuclear cranes. If the customers are Indian nuclear projects at present demanding for most advanced are mostly controlled by imported cranes, then we can offer government and their buying them that too. We want to provide process is mostly tenders, after the the products to customers which fit India is very price sensitive market. acquisition of WMI cranes Ltd. In best to their requirements. Price is the key factor in the buying August 2011, we can now offer process and sometimes the features cranes as per Indian standard to and novel solutions offered by a the customers. These cranes are crane manufacturer often gets lost less expensive than our imported in the discussion. At Konecranes,

we provide the unique features which not only make the crane operation fast but even safer, thus increasing the productivity of the customer's business. Our advanced service offerings help customers keep the cranes running always and prevent sudden breakdowns which results in heavy production losses. The recently introduced Remote Monitoring solution by Konecranes helps customers to record the actual crane usage data which can be used further to prepare various reports so the maintenance can be planned well in advance, it gives the detailed information about the usage and condition of crane so, in

over other competing companies in terms of technology and services?

In general, what overall cutting edge do you enjoy

Dec’12-Jan’ 201312

Interivew


fact the complete crane life cycle We have geared up for the can be planned well. Such highly continuous growing demand for advanced cranes can be expensive port equipments in India. Our aim initially but it pays back to the is to strengthen our customer in the long run and infrastructure, sales and service provides less life cycle cost. We not support to customers. At present only provide equipment but the we have good customer references complete lifting solution, the in India and we are focusing on customers can depend on and work providing complete service to as a partners with our customers. customers than just providing India is one of the biggest and This gives us the competitive edge equipment. We can now also promising markets for Konecranes in the market. provide the maintenance service and there is a big focus and support

for the port cranes and can also from global headquarters for the execute the maintenance expansion plans here. After contracts for longer durations. For witnessing the huge demand for Reach stackers, we provide industrial cranes, company is building complete maintenance service a brand new factory at Jejuri, near right form, inspection, operation, Pune with the investment of EUR 15 training to modernisation of reach million. And yes, we will also think stackers. We want to become the about investments and plans to start complete lifting solutions manufacturing port cranes in India in provider company in port future based on the market equipment business. dynamics.

What are your plans in terms of upgrading, expansion and investment plans to meet the growing demand for cranes and allied equipment in the next five to 10 years?

India's ports and shipping sector is on a massive expansion and modernization under the Maritime Agenda 2010-2020. What role do you envisage for Konecranes as more and more business avenues open up? �

B U S I N E S SFACILITATING SHIPPING & MARITIME COMMERCE

SeaPorts


SeaPorts

Captain Prakash Correa, Assistant Vice President, Great Eastern Shipping Company, believes that mid-2013 may not bring in good tidings for the shipping industry as predicted in some quarters. In an exclusive interview with SeaPorts Business Maritime Correspondent Wilfred Moraes, Capt. Correa, however, says that the Indian VLCS and LPG markets are quite buoyant and his company is likely to take advantage of them. Talking about, Capt Correa talks about his company's plans for acquiring modern eco ships, adding that the future belongs to them. Excerpts.

Captain Prakash Correa, Assistant Vice President, Great Eastern Shipping Company

On the current shipping scenario…

You are already in the LPG segment. Right now there is nothing for LNG.

biggest expenditure we are facing today is the cost of fuelling the bunker to run the ship. So we are

It is a bad time, a real difficult time. looking at any new tonnage that we The general feeling is it has would require, especially from the bottomed out at this moment. shipyard would be on the basis of Hopefully, it may not bottom out eco ships, ships meeting the new further. Having said that, if requirements that are going to anybody says 2013 will show an come. That is how we will probably upward trend, they are being a little re-engineer the whole thing and over optimistic. I personally feel phase out the non-economical that it would take a longer period ships and bring in the eco ships. of time. Primarily, due to: one, the But regarding our immediate tonnage in the market and two, expansion plans, maybe, we will ongoing general recession hurting look at MR tankers; we are also this industry. looking at some VLCS , if we can

expand into that market. There is The years 2008 and 2009 were fairly buoyancy in the Indian scenario for buoyant. We did moderately expand VLCS, LPG markets. We are also our tonnage both wet and dry. We looking at some VLCS, LPG expanded our tonnage when we saw imports, especially from the Middle the decline taking place. East to east coast of India.

At this moment, we have started phasing out our tonnage, especially older tonnage. We not closed on expanding; we are open to it but in a more cautious manner. Our intentions are now to look at At this point of time, it is a huge acquiring more eco ships, bunker investment if a joint venture (JV) is consumption. As you are aware the involved. We have done some

Interivew

Shipping Still in Rough Waters,but Indian VLCS & LPG Market Buoyant

Shipping Still in Rough Waters, but Indian VLCS & LPG Market Buoyant

Shipping Still in Rough Waters,but Indian VLCS & LPG Market Buoyant

Great Eastern

Shipping

Dec’12-Jan’ 201315

Interivew


exercise in this regard many years grow. If the market shows some imports into the US gulf have come back; after that it was put on the buoyancy and the Indian maritime down. It is not a bright sign for the back burner. We have been in LPG segment begins to show buoyancy maritime industry.business. We have had a small we would certainly expand. As you presence. We very recently are aware, we also have an offshore acquired a VLGC, which we now shipping division called Great Ship put on time charter with Bharat India Limited, which is to day

We trade in SECA. It is quite a Petroleum. And we are looking at extremely buoyant and doing very challenge, no doubt. We have spent another VLGC, and possibly may well. Both clubbed together I see quite a bit in investing on spot her. But primarily it would be something very positive coming up modifications of our ships to meet India-centric and mainly for in times to come. SECA requirements. It is there to catering to Indian Oil and Indian stay, we all know. It is a good thing requirements. At this time, there which has happened to the are not many VLGCs available in environment. But it is not easy for the market. So the hunt is on. We the ship owners to acquire SECA will see how it works. If we get bunkers – one is availability and something at the right price and the other is pricing. As it is the

the right size, we are looking at, we As I mentioned earlier, it is not bunker prices are high. When you will definitely go for it, very really something to yap about at buy SECA bunkers they are even positively. So LPG business is this stage. We will have to wait and higher. As we have to a great something that we are focusing on; watch; nothing in the near future extent overcome the initial it's a matter of getting the right at least. Pundits keep saying by teething difficulties, our ships are vessel at the right price. We know mid-2013 it would start to rise, but regularly in and out of the SECA there is market for it. nothing is showing at least at this area. There has been no major

point in time to indicate if there impact. could be a possible rise. With the US coming up with the discovery of shell gas, I would see their imports dropping down in a big way. In fact,

On the oil front, imports are there. their imports have come down to And imports will grow, both from We have to stay and we have to quite an extent. West African

Tell us about problems with SECA at this moment.

What is the global outlook for sea trade in view of the downtrend in the US and Europe?

What about Indian Maritime Agenda? Will it What is the outlook of help boost your company's India's imports and exports?future prospects?

Dec’12-Jan’ 201316

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the oil and LPG point of view. There is bit of export going on. Exports are happening. While Indian oil majors will cater to the domestic market, Essar and Reliance will probable look at part domestic and part exports.

Certainly. The new ports' coming-up is a good sign. They are more modern. Their productivity is better and it helps the country at large to grow economically as well as ship owners benefit from increasing business. Overall, I would endorse. We have made rapid progress in port growth both in the western and eastern coasts.

companies take up this issue. At men, who will board the ships in the moment it is dominated by the times to come. Yes, piracy is a clubs in London. But I really cause for concern; because it haven't seen it taking place here. affects the shipping business hello For them to really grow in India, of a lot. We lose a lot of sailing days the national tonnage has to grow, because we are waiting for convoys correspondingly the business grows. in between, which is an And they will have to market unfortunate thing to happen Well, he has just joined. He is themselves overseas to get tonnage especially when the market is low. probably getting to know the from outside. It is not a simple task. It also adds to our costs. The cost business requirements of ship The P & I Clubs have been there of providing armed barges is high owners. And I am sure things will quite established. But I guess if and there is a lot of logistics look more positive with him being somebody is going to take initiative, involved. And the ships also are the Minster of state for surface It will happen. forced to take circuitous routes to transport. I only hope he

keep away from pirate-infested understands the difficulties we are areas. So we are doing extra undergoing and make things easier distances, extra miles, burning for us as well as seafarers. It has to extra fuel. We have been be a win-win situation for I presume you are referring to the fortunately lucky; we have been everybody. issue of piracy. The government of prudent in our vessels sailing to the

India at the moment is working on Gulf of Aden and we are training a select number of Central constantly monitoring our ships

It would be nice if Indian insurance Industrial Security Force (CISF) 24/7 when they are transiting high risk areas.

Eco ships are basically modern ships, modern engines, which are fuel efficient, which are being worked upon. They are modern ships with low steams, which mean they consume less bunkers. You have basically other methods or trimming the ships. The general mantra is very simple - economical running in speed and consumption. Any ton saved today is money earned.

New ports that are coming up will give a fillip to your business…

On young and dynamic Milind Deora becoming Minister of State for Shipping and Surface Transport…

On the issue of ship security…

On Marine insurance…

On eco ships…

�


SeaPorts

Ajeya Kallam, I.A.S. Chairman, VPT

Visakhapatnam Port on a High Tide of DevelopmentVisakhapatnam Port on a High Tide of DevelopmentVisakhapatnam Port on a High Tide of Development

Visakhapatnam Port (VPT), located strategically on India's East Coast, has undertaken wide-ranging developmental activities, from capacity expansion to modernization. In a detailed interview with SeaPorts Business, VPT Chairman Ajeya Kallam touches upon several key issues concerning the ports sector in general and the Visakhapatnam Port in particular, including efforts to turn it into a Gateway to South-East Asian sea trade and coping with competition from non-major ports in the region. Excerpts.

Emerging Gateway to South-East Asian Sea TradeEmerging Gateway to South-East Asian Sea TradeEmerging Gateway to South-East Asian Sea Trade

Agenda 2010-2020 of Ministry of Shipping, Visakhapatnam Port conceived plans for development in the thrust areas of (i) deepening of channels (ii) construction of berths (iii) mechanisation (iv) connectivity and (v) logistics. An investment to the tune of nearly Rs.14,000 crores is contemplated to enhance the port capacity from the existing level of 66 million tonnes to nearly 150 million tonnes by 2020.

The Port of Visakhapatnam is ndranked 2 among major ports of

India after Kandla in terms of cargo throughput since 2007-08. The port handled a record quantity of 68.04 million tonnes during 2010-11. Notwithstanding economic slowdown, the port handled a quantity of 67.42 million tonnes

The existing fishing harbour is during 2011-12. Gangavaram is a

proposed to be shifted keeping in minor port handling about 15

view the security concerns raised by million tonnes per annum.

the Coast Guard and the Navy In consonance with the Maritime besides environmental problems.

Till date, Vishakhapatnam Port (VPT) has retained its second position among major Indian ports for its cargo handling capacity. But Gangavaram and Kandla, with their better facilities, seem to have taken over this position in the recent past. What are VPT plans on modernizing its cargo handling capacity and other logistics?

Tell us more about the satellite port and greenfield fishing harbor at Mulakedu that VPT is developing. In what way, do you think, this extension will help ease traffic congestion at VPT?

Focus: Andhra Pradesh

PortVishakhapatnam


SeaPorts


Further, there is no scope for modernising the existing facilities business as the nation's trade with China and other East Asian significant expansion of the port which call for de-commissioning of economies is on the rise.facilities at the existing location in the berths for not less than 24

view of limitations with regard to months each. This may have an The emergence of China as India's land for storage and environmental adverse effect on the waiting time largest trading partner will boost

business for east coast ports because problems. As such a satellite port of ships requiring berthing facilities. they are closer to East Asian and green field fishing harbour are The port is however making markets. China overtook the US as planned by the port for which the alternative arrangements to meet India's largest trading partner in

process of awarding the work of the requirements. fiscal 2010, according to Commerce preparing DPR is being entrusted to Ministry data.a consultant.

With India's merchandise trade with Asian nations growing faster than that with the West, container traffic is poised to grow on the east coast. Besides rising trade with China, the demand for coal to fuel power projects in eastern India may also lead to growth in the east coast ports. Currently work on about six

developmental projects is With these prospects in the offing, progressing; of which two projects and with the developments taking Ports on India's east coast, which involve construction of new place and planned, the Port is lag behind those on the west coast facilities. The other four projects poised to lay its claim of becoming in terms of cargo movement, are involve strengthening and attracting a greater share of the the preferred gateway.

The 'Look East' policy 1990 has been a big boost for

With the current Indian ports, particularly mechanization work in those in Andhra Pradesh. progress, what kind of How far has it helped VPT challenges is the port in achieving its aim of facing? becoming the preferred

gateway point in South Asia?


SeaPorts


Under the public-private- 110 million tonnes by 2014-partnership (PPP) mode 15. Have the precautionary

thduring the 12 Five-Year steps been taken to handle Plan, the port is estimated this sensitive situation?to make an investment of about Rs 8,231 crore. Can you give us a preview of the key areas that would come under this upgradation plan?

There is a proposal of opening an airport base in Bhogapuram with an extended runway and airport timings. Considering the plan comes through, what benefits would it offer

How would deepening of to VPT?

inner harbour entrance channel and turning circle to cater to vessels of 12.5

In your opinion, how do meters draft help enhance you think the Maritime the port's cargo handling Agenda 2010-2020 will help

capacity? Indian ports, especially VPT come on par with the best ports in the world?

VPT's modernization work has recently faced public wrath for the pollution it is causing. And now VPT has signed concession agreements for developing three world-class berths to realise its dream of handling

plan of developing the SPM facility at outer harbour for import of crude oil as JV with HPCL. How is VPT's plan to handle the extra traffic that would come with this newer facility is taking shape? The port is modernising the cargo

handling facilities primarily to The SPM facility at the outer address the environmental issues harbour for import of crude oil as besides planning to enhance JV with HPCL is operationalized capacity. Cargo handling activities with effect from February 2011. are planned in such a way as to However, the work on Strategic mitigate dust emission by way of Crude Storage facility is in

th covered transportation through developmental stage. Currently As per the 12 Plan Working Group conveyors, thereby minimising crude oil requirement to the tune of Report of the Ministry of Shipping, transportation by road. This would the estimated investment under the about 9.0 MTPA is being handled. also correspond to drastic reduction PPP mode for the port is Rs.3,365 Upon completion of work on crude in vehicular movement.crores. This investment is planned cavern facility the throughput at

in the major thrust areas such as (i) the SPM is likely to increase. It is absolutely essential for the port construction of new berths and to obtain necessary clearances from strengthening of the existing berths the environment and security (iii) installation of mechanised aspects for taking up any cargo handling equipment and (iii) developmental project. As part of other logistics like development of obtaining environment clearance, storage sheds/ware houses; public hearing is held. On the development of multimodal recommendations of the APPCB, logistics hub. the Central Ministry of

Environment and Forests conveys clearance. The port is meeting all the mandatory requirements for Significant benefits to the port are implementation of port projects.not anticipated on account of the

opening of an airport base in Bhogapuram. However, the port may reap benefits in the longrun on account of improvement in connectivity in terms of trade

The port has plans to deepen the facilitation and accessibility. inner channel, turning circle and at berths to cater to vessels of 14

The Maritime Agenda 2010-2020 is meters draft in phases. Upon

a strategy of the Government completion of the project, a

towards developing world class capacity of about 4.0 million tonnes

facilities at the Indian ports. It will be added and the port will be

identifies areas of priority for much capable of handling fully laden

needed investments in the ports PANAMAX vessels at all the

and shipping sector. As already berths in the inner harbour.

stated, the Maritime Agenda There has been talk about VPT's envisages an investment of nearly


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for creating a level playing field.

The Ports Regulatory Authority Bill, provides for regulation on tariff and performance at the ports. While regulation of tariff and performance at ports is in a way essential, it may prove detrimental to the much needed inflow of private sector investment in port sector.

Rs.14,000 crore to add a capacity of nearly 85 million tonnes by 2020.

As per the strategy for development of ports which is accepted internationally, industry based development of port facilities is Some of the noteworthy CSR preferred to circumvent the

activities of the Port include:deficiencies in connectivity and logistics. Keeping in view of the Beach nourishment (Rs. 6.0 developments taking place, the Port crore per annum for dredging of has conceived developmental plans 2.5 lakh cum.)to augment its capacity and

Contribution towards various modernise the cargo handling The container terminal at the port welfare, cultural and activities for a healthy competition.is the deepest among major ports of developmental activities India. The terminal is being including provision of necessary operated by the BOT operator medical infrastructure and M/s.VCTPL satisfactorily. The facilities at the government

terminal recorded a remarkable hospitals.growth of more than 60 percent during 2011-12. There is Annual maintenance of drains considerable potential for container from the city connecting to the

seacargo in this part of the country. Keeping in view of the potential,

Annual maintenance of roads in the port is planning construction of interface with the city and roads

another terminal. The terminal used by citizensoperator M/s.VCTPL Tariff regulation in the port sector (www.vctpl.com) may be contacted Street lighting of the roads in was necessitated to ensure providing

interface with the cityregarding the incentives offered to cost effective services to the users in the trade. the wake of private sector Green belt with 4.22 lakh

participation and to prevent saplingsmonopoly. However, it may be necessary to bring the non-major Additional Port Connectivity ports also within the ambit of TAMP road to NH-5

What is your take on the proposed Ports Regulatory Authority Bill, which is opposed even by some state maritime boards?

Krishnapatnam, which posted VPT has known for record handling of coal, encouraging sports in a despite higher tariff rates?On the east coast, ports, significant way. Tell us

both major and non-major about your other CSR are competing with each activities. other for container cargo business. Tell us what incentives and facilities VPT is offering to prevent diversion of this cargo to other ports?

What is your view of the Tariff Authority for Major Ports (TAMP), which covers private terminal operators located within major ports and does not cover non-major ports? Should it be abolished to provide a level playing field for all?

Do you see any threats from non-major ports located on the east coast such as

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Give us an overview of the operations of Visakha Container Terminal Pvt Ltd (VCT) over the last decade since the company came into being in June 2003.

VCT is a joint venture of DP World and United Liner Agencies of India (Pvt) Ltd,

covering seven states within 700 kms and extending up to North and North East India. VCT is an all-weather container terminal located in the outer harbor of Visakhapatnam Port with a quay length of 450 meters and the permissible draught of 15.0 meters

Visakhapatnam is the largest port alongside.The depth of 16.5 in the Bay of Bengal and is the metres makes VCTPL the deepest mirror image of Mumbai in the container terminal in the country, East Coast. The port has ideal amongst the major ports in India.location and has natural

The port is also supported by advantage over other ports of East excellent rail and road connectivity Coast; the continental shelf is hence it is an ideal alternative near to the cost, it is deep drafted especially for shipments to and and the hill- Dolphin Nose- from Far East and South East Asian protects the port from cyclonic regions to Delhi and other nearby storms which strike the east coast ICDs (Inland Container Depots) of regularly. Apart from its natural Hyderabad, Nagpur and Raipur. advantages, the port is

strategically located on the center of the East Cost of India. These natural factors have helped VCT to cater to the vast hinterland

Captain Sriram Ravi Chander, Chief Operating Officer, Visakha Container Terminal (VCT)




In an exclusive interview with SeaPorts Business, Captain Sriram Ravi Chander, Chief Operating Officer, Visakha Container Terminal (VCT) shares his view with Divya Sharma Karmakar on growth of ports in the country and especially of Visakhapatnam post the Govt.'s look East policy and the role VCT has chalked out for itself. He also talks about operational efficiency of VCT which has played a crucial role in bringing in the transhipment cargo to Visakhapatnam.

VisakhaContainerTerminal



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the former being a world leader in container terminal operations and the latter a leading shipping services provider. What cutting-edge do you enjoy over your rivals in terms of technology, especially IT and the best operational To what extent VCT's practices that DP World is contribution has improved known for? Visakhapatnam Port's

overall performance and its image as an important major port?

VCT has imbibed the best business failures. VCT uses the latest practises of both of these futuristic Oracle11g system to manage the companies and has the capability of data base.hosting the world's largest

VCT is also 100 percent Port container ship.Community System (PCS)

Information Technology (IT) is the compliant. Visakha Container backbone of VCT and it plays a Terminal is committed to the use of crucial role in the smooth cutting edge technologies to functioning of the terminal. VCT provide superior client service.uses cutting-edge software and systems to provide safe, consistent, faster, competent and user-friendly services to all its customers and suppliers. VCT uses the most

VCT is the result of marriage advanced and successful terminal between the best in the shipping software which has fully automated world.United Liner Agencies of the container handling capability India (Pvt) Ltd has 75 percent and has also assimilated all the The only weak link of the shareholdingwhile DP World holds operational functions of the otherwise one of the efficient ports the remaining 25 percentage. DP terminal in a real-time, online of the country -Visakhapatnam Port world has huge network across the environment.

- was the absence of container globe and a lot of expertise in terms terminal. That changed after the IBM's sophisticated 'Blade Server' of business and technology come in establishment of VCT in 2003; ensures uninterrupted computer from there. United Linear is 96 year

operations and cuts down overall Visakha Container Terminal has old company which provides with business downtime due to hardware come as a silver lining for the Port. almost all kind of marine support.


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With the establishment of VCT the traffic in the port has increased manifolds.

Earlier Visakhapatnam was basically a city for Public Sector

We are aiming to handle one Undertakings. With the million TUEs by 2015 and double it The Union Shipping Ministry's establishment of VCT industries to two million by 2020.Maritime Agenda will help like pharmaceuticals, paper, and

develop Visakhapatnam Port as cashew has grown manifolds. the future hub port of the East. Visakhapatnam and its This in turn will lead to the surroundings have huge natural improvement of inland logistics resources and based on that many and more container friendly new companies and industries are terminals will be set up.being set up which use the

services provided by the port VCT aims to be the catalyst for and VCT. improving trading conditions by

improving transit times for trade and encouraging the deployment of large gearless tonnage.

Fastest port turnaround is enjoyed in Visakhapatnam and VCT is geared to handle all those futuristic large ships which are still in their docks. This ability will lead to more and more hubbing and transhipment from

influenced by this your target for 2012-13, significant development? and what did you achieve in What role have you chalked the first six months (April-out for VCT to grab the September) of the year?opportunity?

How far your operational efficiency and turnaround capability has brought in transhipment cargo to Visakhapatnam, which otherwise is meant to reach other port destinations? Are you making further efforts The Union Shipping at attracting more Ministry's Maritime Agenda transhipment cargo?(2010-2020) envisages

In 2011-12, VCT handled massive expansion of ports, an all-time high traffic of container terminals and 2,34,733 TEUs, up from shipping services, involving 1,45,000 TEUs in 2010-11 an investment of Rs. posting a remarkable growth 165,000 crore. How are rate of 58 percent. What is your operations going to be


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also looking at relaxation of cabotage for Visakhapatnam which will result in business with Bangladesh and Myanmar.

The focus in Visakhapatnam port will enable growth of warehousing, stock in trade and distribution centres.

We also plan to bring in white good distribution focusing on other consumables like fruits and vegetables.

We are confident that FDI in retail too will boost VCT as it will increase the movement of FMCGs, white goods, consumer non-

Visakhapatnam Port. As durables.Visakhapatnam is at the reef edge,

We are satisfied with what we have one ship is enough for feeder achieved in nearly a decade. We services while other ports require offer regular services to Nagpur, minimum two ships; hence VCT

has emerged as the only Raipur Balasore and towards Delhi. transhipment hub on the East We have extended operations to Coast of India for the ports of Uttar Pradesh, Bihar and even Paradip, Halida and Kolkata. Jharkhand. This has been possible

Apart from the usual CSR activities due to the excellent rail and road like performing cataract operations, connectivity. Development of organizing health camps VCT Inland Container Depots (ICDs) believes in inclusive development and strengthening of rail front and taking Visakhapatnam to next infrastructure have helped us level in Tier II city category.achieve our objectives. Earth based

minerals, process based industries Anticipating growth in port like food and agro are utilizing our capacities across the country and services. increase in requirement of skilled

personnel,VCT has sponsored the Visakha Institute of Port

395 meters of expansion is likely Management which offers diploma to happen in next two years and courses in various aspects of port by March 2013 the tender for the management.same will be issued. By 2015 VCT

VCT does not just focus in the will be able to handle one million city but also undertakes various TUEs and welcome the largest development related work in ship.collaboration with various NGOs in agency areas and villages in The country's look East policy is Visakhapatnam district. VCT has surely going to benefit VCT. By also undertaken various projects 2020 Visakhapatnam will be the in collaboration with other gateway to India for maritime trade agencies like CII, Vizag Steel Plant from the ASEAN countries as well and others.as countries of East Asia. We are

you realized it?

Tell us about your CSR activities in and around Visakhapatnam Port and your contribution to environmental safety?

Tell us about the progress of VCT's plan to develop an additional berth with a length of 350 metres to handle 350,000 TEU a year and its extension to 500 metres to accommodate two large ships?

Is India's policy of looking east and increasing trade with ASEAN countries going to help you? Are you gearing up to meet future challenges in sea trade from the east coast in this regard?

Your objective is to be the Gateway for shippers in east and central Indian states and extending facilities even up to Nepal. How far have �


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This first private green field all- coke and steam coal. Its integrated weather deep-sea port with round- real time control of cargo handling the-clock operations has currently through Automatic Vehicle 10 operational berths and a deep Location System (AVLS) and draft of 18 meters alongside the Enterprise Port Management berths which is the deepest offered System (EPMS) enables it to by any port in India. The port also handle all types of cargo apart from provides fastest turnaround time coal making the port a class apart for all types of vessels which is on the Indian east coast. Port has made possible by its 13 shore cranes the ability to handle General / with a discharge capacity of 750 to Container, Dry-bulk like Barytes, 1,000 MT per hour per crane. Its Coking Coal, Edible Oil, Fertilizers, single window clearance system Granite, Gypsum, Iron Ore, Met provides end-to-end services from Coke, Palm Kernel, Pet Coke, stevedoring to custom Quartz, Raw Sugar, Rock documentation enabling it to Phosphate, Steam Coal, Oversize optimally use its massive back up & over dimensional cargo and Agri area of 6,500 acres, which houses cargo like Maize and Rice.dedicated coal storage plots that

Krishnapatnam Port has always are well connected with dedicated strived to offer world-class services coal sidings.and facilities. In a short span it has

The throughput of the port not only matched to the standards includes coking coal, met coke, pet of the Indian maritime industry but

The Coal Hub of IndiaThe Coal Hub of IndiaThe Coal Hub of India

Situated strategically on the east coast of India in Nellore district of Andhra Pradesh. Krishnapatnam Port Company Ltd.(KPCL) is a new generation world-class port with outstanding services, facilities and state-of-art infrastructure. Its strategic location makes it a port of choice for international cargo originating from and destined for southern and central India.

Anil Yendluri, CEO, KPCL


PortKrishnapatnamKrishnapatnam


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has created a mark that is uniquely do so from so many years. has minimum pre-berthing delays different from the rest of the ports and provides minimal chance of

As an all weather port with 365 in India. demurrage. Its 3-tier security days of operations, it has capability protection guards and protects the

With the availability of empty to handle Capesize & Panamax port and its cargoes. vessels leading to significant equipment for dry and reefers at benefits in Ocean Freight. It offers Currently Phase II development is KPCT, the trade can take high discharge rates leading to under construction, with an advantage of both organic and

investment of INR 3,000 crores faster turnaround of vessels. Its strategic growth in the region. With worth of infrastructure huge hinterland comprises of the opening of the MSC service, investments, the phase II will have Andhra Pradesh, Eastern importers and exporters in AP, the following features:Karnataka, South Eastern Karnataka & North Tamil Nadu

Maharashtra & Northern Tamil will enjoy the benefits of reduced Container Berths will be Nadu can easily rely on the port's transportation cost of containers. increased and terminal capacity backup area of 2,630 hectares. Ports MSC's weekly service will especially to be increased to 4.8 Million dedicated coal storage plots are benefit exporters of tobacco, TEUsupported by dedicated coal sidings. granite, rice, cotton yarn, minerals, From end-to-end services that of Yard capacity will be increased etc. and importers of scrap, waste stevedoring to custom to 40,000 TEUpaper, pharmaceuticals, machinery, documentation, and with no and timber. Integrated logistics park will be inconvenience of multiple interfaces

within the port(CHA, Stevedores, Customs, Port), minimal dependency & risk of labor Construction of 7 additional

Krishnapatnam Port equally offers union the port provides round-the- berthsadvantanges for handling coal, clock support with customized

Dredging up to a draft of 19.5 something which the other age-old solutions. As compared to the metersports in India have not been able to nearby ports, Krishnapatnam Port

An emerging coal hub

INR 1,100 Crores worth of New Doosan Heavy Industries 8 edible oil refineries outside the infrastructure investments made Super Post-Panamax Quay port made available

Cranes installed = 5 units2 new berths are added on the Dedicate storage facilities South side of the port 2 Units of Liebherr 600 provided to customers

Tactronic Mobile Harbor Cranes Draft increased from 16.5 meters Bonding & de-bonding addedto 18 meters facilities set-up as required by 4 new bagging machines were customersYard addition - 375 acres added for fertilizers. Total 20

Mechanization of entire fertilizer Railway Line - 13 Loading / machines with automated handling (vessel to rake loading) Unloading Lines and 40 km bagging capacity of 42,000 - has reduced time, energies and track length MT/dayincreased efficiencies

Electrification of railway lines - 1 new agri commodity Hopper system for agri cargo 10 km warehouse was commissioned exports - increases the load rate taking the total to 12 covered New roads have been from 5,000 MT to 10,000 MT storage areasconstructed inside the port and per day of load rates

28 km road is constructed from Warehouse Management Electrical power connected to NH5 till port perimeter System implemented for main substation (132/33KV)smooth functioning of New Ship Unloaders Installed = warehouse related The current capacity has been 4 Units activities increased to handle 50 million

New Keppel Fels RTGs installed tons of cargoDirect pipeline from berth to all = 4 units

In the past one year following capacity has been added at the port:


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Up-gradation of the 4-lane road balanced and sustainable SEZs, Logistic parks, Cement, Steel to 6-lane development with the surrounding & Thermal Power plants.

environment. Krishnapatnam port Additional cargo-wise railway Although Krishnapatnam Port has has the potential to generate almost sidings just set sail it is already creating 150,000 jobs (direct & indirect)

ripples in shipping circles around leading to the economic and social Cargo mechanization: Ship the world. This has only been development of the region. Its final loaders & un-loaders, possible due to its skill of building plan will have a handling capacity Conveyor, Stackers & and operating the port in a very of 200 mn MTPA with 42 berths. Reclaimers, Wagon loaders & high standard giving the utmost The total quay length will be 12.5 tipplersvalue to all its customers. Its belief km with a draft of 20 meters,

Such facilities will enable the port in innovating, improving and capable of handling 200,000 DWT to become the coal hub of INDIA adapting to the needs of its super capesize vessels. It will have a as in the future it will be handling customers is the success formula in mega container terminal, ro-ro nearly 80 Mn MT of coal, of making it India's biggest terminal, liquid bulk terminal, world which about 60 Mn Mt of coal is multipurpose port with an class bunkering, rig repairing and required for 14,000 MW power infrastructure and logistic setup of offshore facilities. It will play a plant projects that are coming up catalytic role in bringing about an international caliber. Krishnapatnam around Krishnapatnam Port.

industrial revolution in its Port is already emerging among hinterland by becoming the gateway India's major ports and will drive Along with economic development for exports from and imports to economic growth of its region!Krishnapatnam Port also believes in

Systems comprising of ISO 9001- Krishnapatnam Port creates Benchmarks set by KPCL2008 Quality Management System, Port Railway record by handling ISO 14001-2004 Environment 323 total no. of rakes in August Its highest discharge rate of Met Management System, OHSAS 2012. Total coal rakes handled in Coke in 24 hrs is 14,029 MT and it 18001- 2007 Occupational Health August is 248 (Highest) and total recently loaded 3,960.38 MTs of and Safety Management System cargo handled is 1.12 million tons steam coal by conventional method and ISO 28001-2007 Supply Chain (Highest) in a monthin 59 wagons in just 30 minutes Security Management System by creating an internal record in

stExport of Wheat started. The 1 Det Norske Veritas on 22.02.2012 operational managementthvessel started loading was on 18 which very few ports in the world

KPCL set a new record by Sept with a quantity of 28,345 MThas able to receivehandling largest parcel size of bulk

Krishnapatnam Port Container KPCL discharged a record 559 cargo handled by any port in India Terminal received its first ever when cape vessel 'MV. Wisdom Of MT/Hr of crude Sunflower oil from dedicated feeder service from The The Sea 1' carrying 166,060 MTs of MT. Adfiners Sun on 24.02.2012. Bengal Tiger Line's stable on SA non-coaking coal berthed at A total of 6,983.069 MT was September 27, 2012KPCL on 14.11.2011 discharged (including tanks

squeezing) in just 12 hrs 30 mins Mediterranean Shipping Highest unloading (Containers) Company (MSC) started a fixed day – 90 containers from CONCOR On 25.04.2012; KPCL created call at Krishnapatnam Port Container train no. – TNPK1126 – in just 9 an internal record in operational Terminal (KPCT) every Monday on mins on 20.11.2011. Total time management by loading 8,518.19 a weekly basis, starting from October taken from the arrival to the MTs of granite within 24 hrs in

departure of the rake was only 27 29, 2012 with a port rotation of vessel MV. Trade Starmins Colombo-KPCT-Chennai-Colombo.

Port set a world record for With its new service at KPCT, it will On 09.01.2012, KPCL created discharging 122,247 MTs of steam cater to both export and import

an internal record by loading coal from vessel MV. Cohiba in just sectors of: Europe, North and South 3,960.38 MTs of steam coal in 59 24 hours on August 7, 2012 using America, East and South Africa, wagons in just 30 minsthe conventional unloading system North and West Africa, Red Sea and in form of advanced mobile harbor KPCL received certificates for Gulf, Far East and China, Australia

an Integrated Management cranes and New Zealand.


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Amsterdam Ports Authority is keenly looking at the Indian ports and shipping sectors for opportunities for extending tailor-made solutions to potential customers. P.B. (Peter) Overbeek Bloem, Senior Manager Business Climate, Amsterdam Ports Authority, in an exclusive interview tells Wilfred Moraes, Maritime Correspondent, SeaPorts Business, that the combined strength of the Amsterdam port community members could greatly facilitate Indian exporters and importers in reaching out to their European clients. Excerpts.

Amsterdam Ports are highly developed. You are also the original shipbuilders. Now, what kind of collaboration in terms of technology that Amsterdam ports can offer to Indian ports which are currently being modernized?

What kind of specific solutions you are talking about?

importers – to get cargoes going up to Amsterdam. We have appointed Samsara Group from Mumbai as our agents to communicate to the Indian shipping community and explain what kind of opportunities we can offer in Amsterdam as a port. For us as a Port Authority, we consider the Indian continent as the continent for opportunities for the next 10 years where we have to be and explore possibilities. One of

When we talk about development the goals and one of the strong of ports, construction of ports, points in Amsterdam is, contrary to maybe investing in the ports in the our very big brother ports in future, there are several Antwerp and Rotterdam, we are opportunities. One of them is that able to create tailor-made solutions we have a network in Amsterdam for exporters, importers and called Amsterdam Port shipping lines. Tailor-made Consultancy, where we can solutions in order to find the best combine our available strengths in and economical way to suit their the area. So when there are requirements. requests from this region about development of ports, we can react on that. Apart from that, we are very much interested to see if we can build relations with Indian companies – exporters and It depends on what kind of

Interview

Keen to Offer Tailor-Made Solutions to Indian Shippers Keen to Offer Tailor-Made Solutions to Indian Shippers Keen to Offer Tailor-Made Solutions to Indian Shippers

Amsterdam Ports

Authority


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commodities we are talking about. lines, saying, why don't you chose Now, for the container ship liners, Amsterdam? we can guide them about what regulations they have to follow and fulfil to enter the ports. Our strategy is different. We are specific We are relatively fresh in this area. Yes and it depends on who we are about what can we offer to you, for That is why, we are asking our talking to at a particular moment. the shipping line, are different partners, our agents, to come up We can create incentives. We can from each other. It is not as if we with ideas to interact with the talk about the requirements. And have a list. But if you are a local port authorities and see what apart from that, we have a very shipping line, we would like to ask we can develop. Case by case, we flexible port community. Again, you you, what would you like us as a can discuss and negotiate. One decide, what you want us to do. We port authority, as a port community thing I have learnt from doing will not say want we want to do. to do for you? That is different for business with India is, it is not You are a customer. every port. One of the enough to do it in one or two commodities that we are talking weeks. You have to invest for about, for instance, is granite from years, build relations, and I am the east coast. In the past, they absolutely sure, first of all, it will always went to Antwerp. We are be a long one, and second, the talking to the ship owners, to the business will come out. But for

business, it will be difficult to predict what it will be. But I have a positive feeling. As you know, people here are already disappointed when the economic growth fell to 5.0 percent. In Europe, actually, we are happy when it is 0.5 percent.

Yes. India has a huge volume of cargo to offer, in both directions – imports and exports. I am absolutely sure, we as a port can be of help.

ports. They were also offering to upgrade the technology and software of Are you also talking to the Indian ports. shippers?

Some port authorities, like the Italians, had a port mission scouting for collaborations with Indian

Overall, your aim is to have more cargo share, more trade from India

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Interview


Interview

‘Plan Terminals at Future Hubs, Lay Stress on inland Connectivity'



PortAllah Nawaz Qabulio, former Director General of Port Qasim Authority, Pakistan, is a maritime expert of international repute. He is Principal Port Engineer, Techno-Consult International. Qabulio's work in Port Planning is globally known as well as his expertise in the fields of Feasibility Studies, Contract Management, Contract Negotiation, Construction Management, and Master Planning Studies. Following are the excerpts from an exclusive interview that SeaPorts Business has had with Qabulio on various issues pertaining to the ports and shipping industries.

Against the background of the problems of congestion. current recessionary What kind of long-term conditions, what is the planning is required to outlook for port operators reduce this recurring across the developed world phenomenon which badly in general and the sub- effects sea trade, while continent and Asia in placing severe financial particular? burden on port users?

What is your advice in terms of planning Greenfield ports and container terminals coming up in India

Ports in the sub-continent following a massive are perennially dogged by expansion in the country's

In my opinion these conditions We don't have that situation in are not here to stay. Moreover, Pakistan. As stated above we must planning and subsequent plan a number of ports and implementation is a time terminals to address the issue consuming process. So we must besides infrastructure for not be too much influenced by the connectivity.present conditions .We should look ahead and plan the future terminals keeping in view the planning of the country's future development, including industrialization, etc.

Development

Dec’12-Jan’ 201334


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Interview

port infrastructure with planning and management private sector participation and what is required to in a big way? make them more efficient

and port user Could you elaborate the friendly?concept of Master Planning, and give an example of a study you had made for any port?As former Director-

General of Port Qasim Authority, you had s deep insight into the running of a major port. What advice do you offer to port managements which are grappling with various problems today, including

Also throw some light the growing unrest among port current practices of port and dock workers?

My advice will be, 'apply the latest tools and learn from the experience of countries where this situation does not exist.'

Having completed and made operational five Greenfield projects, I am of the opinion to go In these modern days, you have for the latest state-of- the- to locate terminals at the forecast art ones. future hubs. Provide

connectivity, inland depots, look for inland navigation if possible,

Yes. The first thing I did was have separate connectivity preparation of a 50-year strategic through dedicated rail and road, planning including Master etc. Have confidence in Public-Planning and Navigation Private Partnerships (PPP) and channel study for deepening, negotiate well agreements with

them after fair competition and widening and its improvement tendering. Once that's done through a world reputed facilitate them, treat them well as hydraulic lab. partners in progress and part of Port Authority. Apply technology! �


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The sixth edition of biennial The upcoming investment summit, this summit," said a senior official in Vibrant Gujarat Global Investors' the state industries department.Vibrant Gujarat Global Investors' Summit, 2013 will see more of Summit (VGGIS) will be held from

The port operators and authorities knowledge sharing on sustainability 11 to 13 January 2013 with the from overseas are likely to share of ports and shipping sector in the Indian ports and shipping sectors their expertise to handle large-sized state over fresh investment promises, getting investor attention. and complex vessels at the ports. informed government officials.Also, they will interact with The three-day event is expected to

“Gujarat with its inclusive, entrepreneurs and state officials to culminate in the signing of MoUs sustainable and rapid growth, is bring improvement in the promising huge investments in emerging as globally preferred place management and operations of diverse sectors in the State. The to live in and to do business. ports and port traffic. The theme biennial global investor summit is Gujarat Maritime Board has set a for the port seminar will be being organised by the Gujarat benchmark for port development in enhancing sustainability in Port-led Government. In the 2011 Summit, India by developing one of the most Development in Gujarat.

over 8,000 MoUs were signed successful and unique business promising investments of a According to the details provided models of operation, i.e. Coming whopping Rs 20 lakh crore. by the state officials, out of service mode of development

representatives of Israel Ports to landlord port development”, This year, international port Company, Port of Antwerp, Port of according to the sources.authorities and port operators Rotterdam and those from port including major players like Israel "Port operators and authorities from authorities of Russia and the US Ports Company and Port of Antwerp, Israel, Russia and other will also mark their presence this

countries will remain present at the Antwerp will share technical and Vibrant Summit.summit. Fresh investments in the management expertise with private

Ports serve as the Gateway to ports sector will be a derivative of port operators in Gujarat.

Event

Ports & Shipping in the SpotlightPorts & Shipping in the SpotlightPorts & Shipping in the Spotlight

Vibrant GujaratSummit 2013

Dec’12-Jan’ 201337


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Event

India's international trade by partners in the Summit in which Gujarat. However, since the 2011 handling over 95% of all Export business delegations from 30-odd Summit, the Government has given Import trade in terms of volume countries would participate, apart special emphasis on addressing need and 70% in terms of value. The from over 5,000 delegates from for youth development, increasing traffic in terms of cargo handled by within India. skill development and creating Indian ports recorded an impressive employment opportunities, creating

According to state officials, ports compounded annual growth rate more women entrepreneurs and and shipping sector in the state will (CAGR) of about 6.4% between giving a boost to the sunrise sectors be one of the key areas that will 2007 and 2012. During the same such as green energy, Maheshwar attract attention from global players.time, Gujarat's Port registered the Sahu, Principal Secretary

CAGR of 14.6%. Ports and (Industries), said. Events leading to "The state has a robust ports policy Shipping significantly contributes the Summit will start on January 5 that encourages private sector to the three pillars of sustainable with a series of knowledge-sharing investment. Also, a long coastline development - social, provides good potential for ports and programs, numbering over a environmental and economic. shipping industry to develop here. hundred. Industry captains from the

Tata Group, Reliance Industries, The officials from these port We expect port operators from ADA Group, Essar Group, Ford authorities will showcase strengths Europe, US and Russia visiting this Motors, Mahindra & Mahindra will of their port facilities and interact VGGIS," said a senior official at also be present.with industry and entrepreneurs in Gujarat Maritime Board (GMB).the state.

In 2011, Sunil Mittal of Bharati "We will encourage international Group and Anil Ambani, among This year's Vibrant Gujarat Summit port authorities to bring their others, had favored Gujarat's Chief will focus on forging knowledge-led expertise in the port management

Minister Narendra Modi to “lead strategic partnerships and global and technology. Sustainability will the country”.collaborations, said Modi, adding be one of the focus areas for GMB

that a series of knowledge-sharing this VGGIS," the official informed. A highlight of the Summit is the and thematic events have been lined. Vibrant Gujarat Global Trade Show Delegation from Japan, Canada, US, In the VGGIS 2011, overall ports spread across an area of more than UK and UAE, besides several Indian and shipping sector had seen 100,000 square meters with States, are expected to attend the investment promises for about Rs participation from over 1,000 event. With a view to generate more 100,000 crore.companies from more than 25 employment, the Summit will also

The previous summits focused on sectors and 14 countries. Over a focus on the MSMEs.mobilising series of investments million people are expected to visit

Japan and Canada will again be across the industry sectors of the Trade Show. �

Dec’12-Jan’ 201352 Dec’12-Jan’ 201338

www.seaportsbusiness.com

Organized by


White Paper

Multimodal TransportationMultimodal TransportationMultimodal TransportationEmergingTrends

As the logistics supply chain gets more sophisticated in India, multi-modal transport is the emerging trend. The Delhi-NCR has become a focal point for multimodal transportation networks, followed by Chennai and Pune, in the south and west respectively. Engineering industries are the biggest users of multi-modal transport, followed by pharmaceuticals. AMTOI is fostering its growth at the national level. We bring you insights from a research report by Frost&Sullivan.

Usage of multimodal transport is highest in the engineering industry- Predominantly Road + Rail

Share of Companies Using Multimodal Transportation

Share of Industry Responses (N = 150)

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Engineering

Pharmaceuticals

Retail

Automotive

Autocomponents

Electronics and Communication

64.0%

48.0%

37.9%

36.0%

32.0%

28.0%

Available Cargo Transport Modes in India and Their Share

1

1

2

3

4

Driving Factors of Multimodal Transport Usage

2

3

Dec’12-Jan’ 201340

4


SeaPorts

White Paper

Most commonly used 'multimodal combinations' for consignments

Mode of transportation is chosen based on the factors such as consignment or product type, transit time, network reach and cost effectiveness. To attain economies of scale, a combination of modes is preferred.


Retail & FMCG

Auto components

Electronics & Communication

Pharmaceutical

Automotive

Engineering

78%

68%

68%

66%

62%

56%

Share of Current Users of Multimodal Transport Using these Modes Combination

Delhi-NCR is the most important centre for multimodal transportation networks, followed by Chennai and Pune

Most Important Domestic Network Routes for Multimodal Transportation in India


5Prominent Benefits Gained or Expected to Gain from Multimodal Transportation Usage

Most Important Domestic Network Routes for Multimodal Transportation in India

6

6 Major Concerns of Non-users of Multimodal Transportation

1

2

3

4

5

Poor coordination of roads and rail loading/unloading activities in ports

Lower frequency at desired routes by multimodal operatorsInstitutional blockages to free flow of transit vehicles and cargo in the hinterland

Solution offered by LSP not matching or insufficient to own needs

Incompatible procedures and policy framework

6 Lack of confidence on LSP’s abilities

7Initiatives or Policies Favouring Multimodal Transportation in India

Multimodal Transportation of Goods Act, 1993

Association of Multimodal Transport Operators of India

(AMTOI)

• Reduce interruption in the goods movement between origin and destination through multiple modes

• Liberalize controls, simplify procedure, facilitate smooth flow of international trade

• Limitations of the Act include waivers given to only entities in business of shipping; specific functions and duties of Competent Authority not defined.

• To act as a catalyst for organizing MTOs at the national level and improving the quality of their services.

• Activities include Events, Publication, Training Programs

• Association’s representatives included on various committees of Ministry of Shipping, Road Transport & Highways

8Potential Opportunity Areas for Multimodal Transportation Services in India

Growth Opportunities

The manufacturing hubs in India located deep in the hinterland far from seaports

India’s international trade growing annually at 10-12 percent with rapid rise in containerization of goods

The Dedicated Freight Corridors, to be operational by 2015, is expected to catapult rail transportation further

15 million TEUs of annual multimodal logistics forecasted by 2015

End-user preference for a single service provider for end-to-end supply chain solutions rising

Logistics Service

providers must tap

the growth opportuniti

es and End-users must be willing to

invest with current market

dynamics

9


SeaPorts

Union Minister of State for Communication & IT Milind Deora, who has been entrusted with the additional charge of Shipping, says his top most priority, along with inviting private participation in the sector, would be to utilise the country's massive coastline by creating economic opportunities.

Soon after assuming Shipping responsibility on 31 October 2012, Deora visited Mumbai Port Trust office the very next day, where he held meeting with Rajeev Gupta, Chairman, MbPT and other senior officers.

During the meeting, Deora spoke about the future of the ports and discussed the issue with the officials. Later, addressing the media, he stressed the importance of ports and shipping in boosting India's sea trade. The Minister area of shipping there are a lot of The Government has selected two pointed out that alone JNPT opportunities like in ship building sites Sagar island (West Bengal) handled 60 percent of the country's for Indian companies." and Ramyapatnam (Andhra export-import traffic. Pradesh) for constructing two new

He said his Ministry would look at major ports in the country. There “Sea is an untapped resource, investment proposals from private are 12 major ports Kandla, specially from recreation point of companies in the sector. Another Mumbai, Jawaharlal Nehru Port, view and my priority will be to area that the Minister aims to focus, Marmagao, New Mangalore, Kochi, utilise our massive coastline, in is the safety of sailors or seafarers. Tuticorin, Chennai, Ennore, terms of employment and Vishakhapatnam, Paradip and "Other issues of concern are investment opportunities in the Kolkata-Haldia in India.protection of sea fearers, how do we sector," Deora said, adding, "We

protect them and also people who aim to use the coastline in a way S Hajara, SCI Chairman and Mr. N have invested in the shipping that allows economic N Kumar, Deputy Chairman, JNPT sector," Deora said. The Ministry of opportunities." were also present to welcome the Shipping has set a target of awarding newly appointed Shipping Minister

Expressing his gratitude to his 42 projects during the current of State. Hajara also presented a leaders for bestowing him with the financial year (2012-13) including bouquet to Deora.additional responsibility of two new major port projects. The Shipping portfolio, Deora said, total cpacity addition would be 245 The Minister said he would also "This (shipping) industry is a million tonnes involving 42 projects be visiting Shipping Corporation barometer of what we can expect at an investment of about Rs 14,000 of India and D G Shipping in from the global economy. In the crore. due course. �

News

Creating Jobs along Coastline Top Priority, says Milind Deora



Port LedDevelopment


SeaPorts

In an attempt to bring back terminal twice but received only private sector participation,” investor interest in port projects, one bid from Mundra Port and Mohandas said in the note.the Shipping ministry has released a Special Economic Zone. It is

He added, “It is something that long-term development plan for the expected to call fresh bids shortly. should be done every now and sector envisaging investment of Kandla Port also postponed its then. We have communicated our more than Rs 2.78 lakh crore by decision to award a project.investment plans for next few years year 2020.

Only one project for construction to the investors.”The plan, which covers both of fourth container terminal at

Mohandas said as the response has central and state sector projects, Jawaharlal Nehru Port at Rs been low the target for the current would leave projects worth Rs 1.09 6,700-crore has been awarded in financial year could not be met. “I lakh crore for bidding by private 2012. hope that at least 18 of the total companies in major ports alone

Noticing the lacklustre interest of 23 projects that we planned providing long-term investment private sector, Shipping Secretary K earlier should be awarded,” opportunities in the sector.Mohandas has written a note Mohandas said.

The exercise has been forced upon explaining various investment Shipping Minister G K Vasan also the Shipping Ministry given a plans. He wrote that the Ministry met Japanese Infrastructure lukewarm response to projects put would facilitate investment to Minister Takeshi Maeda to out for bidding in 2012. The increase port capacity in India by discuss plans for port Ministry had planned awarding of two billion tonnes from one billion development. Indian official 23 projects in the 2011-12 financial tonnes currently.sources said the two discussed year, ending March but managed to

“The Maritime Agenda has plans for the ports of Ennore and bid out only one till December-end estimated investment for capacity Chennai as several Japanese due to a poor response from augmentation projects in the major companies including Toyota, companies.ports at Rs 1,09,449.41 crore, a Nissan and Toshiba have made

Chennai Port had put out a major proportion of which is investment plans for the regions Rs 3,700-crore mega container expected to be funded through surrounding these ports. �

News

Govt. Plans Rs.2.76-lakh-crore Investment for Ports by 2020



PortDevelopment

Shipping Corporation of India's Ministry of Shipping that B K orders, whichever is earlier," the Director (Finance) B K Mandal will Mandal- Director (Finance) of company said in a filing to the hold the additional charge of SCI, will hold additional charge of BSE.Chairman & Managing Director of the post of the Chairman & The development comes in the the company till further orders, Managing Director of SCI with wake of the retirement of SCI according to the sources.

effect from 1 January 2013 to Chairman S Hajara on "It has been informed by the December 31.March 31, 2013 or until further �

SCI Finance DirectorMandal to Hold Additional Charge of CMD



Executive

Appointment


SeaPorts

DP World further strengthened its expected to commence operations in providing world class facilities for relationship with India's premier in 2015. India's traders.gateway port, Jawaharlal Nehru

Sultan Ahmed Bin Sulayem said, Being one of the strongest emerging Port, with the ceremonial “We are very pleased to have the economies in the world, with a presentation and formal acceptance opportunity to further develop burgeoning middle class population, of the Letter of Award by DP World Jawaharlal Nehru Port and India offers immense potential for Chairman Sultan Ahmed Bin contribute in a very direct way to growth in the maritime sector.Sulayem for the 330-metre new the growth of India's economy by terminal project and port Chairman

With the 330-metre project, DP improving the efficiency of the L Radhakrishnan, in Mumbai World will contribute even more to supply chain for importers and recently.The ceremony was also India's growth offering our exporters,” adding, “We thank the attended by other senior members customers the ability to grow and Jawaharlal Nehru Port Authority of the Jawaharlal Nehru Port expand their business in India."for the trust placed in us and we Authority and DP World.

look forward to a growing The new container terminal has Once constructed, the new cooperation." been awarded for a 17-year terminal will add 800,000 TEUs concession period. It will have 17 (twenty foot equivalent container Mohammed Sharaf, Group Chief hectares of yard and a draft of 13.5 units) of container capacity to the Executive Officer, DP World, said, metres, and will be equipped with port, and help ease congestion, as "There is a need to develop four rail mounted quay cranes and the port is currently operating infrastructure in India, and DP 12 rubber tyred gantry cranes.beyond capacity. The terminal is World is privileged to be a partner �

News

DP World & JNPT Mark Awarding of New Container Terminal Project



WesternPorts


SeaPorts

News

Shree Renuka Sugars (SRS) has sugar refinery near Kandla Port in company operates a 2,000-tonne-a-bagged a project to operate a the West coast. The capacity of day sugar refinery near Haldia port captive berth in Kandla Port with a the refinery is 3,000 tonnes a day on the East coast.capacity of 1.5 million tonne a year. and co-generation capacity is

In September, Kandla had awarded The letter of award was issued to 45 MW.a project to “Grain Bulk Handling” SRS on 27 December 2012,

The facility will help SRS handle for developing a two million tonne Shipping Ministry sources said.raw sugar, refine it to finished sugar a year capacity facility on a public-

This was after clearance by the at its Kandla refinery facility, and private partnership basis.Union Cabinet for handing over export it.

Traffic handled at Kandla Port has the requisite land at Kandla Port to The company expects to handle seen almost 14.76 percent growth SRS for operating the facility. The about one million tonne of raw sugar in April-November period of the company expects to start operating and about 2.5 lakh tonne of coal to the captive jetty in a year, Narendra current fiscal, one of the highest fuel its facilities, Murkumbi said.Murkumbi, Managing Director, growths registered across ports,

SRS, said. “The captive jetty will supported by higher handling of The capacity creation at port will help us handle larger vessels, petroleum products and other require investments of Rs 22 crore. Panamax size, and help lower the agri-products.The refinery will increase SRS' transportation costs,” he added. ______________________________port-based refining capacity to

(Source - The Hindu Business Line)In 2011, SRS had commissioned a about 18 lakh tonnes a year. The

�

Bags Captive Berth at Kandla PortBags Captive Berth at Kandla PortBags Captive Berth at Kandla Port

Shree RenukaSugars

Dec’12-Jan’ 201352 Dec’12-Jan’ 201352 Dec’12-Jan’ 201347

India's first comprehensive magazine with in-depth information and analyses, covering all aspects of ports and allied services and industries.

The bimonthly covering a wide spectrum of issues related to Indian and international ports their operations and services, port infrastructure, Inland Container Depots, Container Freight Stations, Rail Terminals, Special Port Equipment, services related to handling, maintenance and upkeep of ports and terminals, caters to shipping services operating on a global scale transporting break bulk cargo, oversized/heavy lift and project cargo.

The magazine that deliberate on issues concerning freight handling capacities and future readiness of Indian and international ports.

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The Hiranandani Group, a real estate major, is in talks with Korea-based Hyundai Engineering & Construction Co Ltd to build a liquefied natural gas (LNG) terminal at Dighi port in Maharashtra. If the talks materialise, this would mark Hyundai's foray into the LNG terminal construction space in India.

The Mumbai-based realty company will set up the eight million tonne terminal for captive use and to cater to consumers in the power and fertiliser sectors. “They (Hyundai) are the lowest bidder and we are negotiating with them,” said Darshan Hiranandani, director, The LNG terminal would be December 2014. For the remaining, Hindustan Electricity Generation Maharashtra's second after Dabhol. it is in talks with potential Company ( HEGC), a group The real estate major will also make customers in the petroleum company. its LNG foray through privately marketing, power and fertiliser

held HEGC, which spearheads its sectors.A management consultant would power plans. be appointed for the project shortly. However, the company's plan to set

The company plans to commission Of the eight mt, the group would up an LNG terminal in West the project by 2017. Saying it was keep 40 percent for its 2,500-Mw Bengal is still at a preliminary stage. too early to give investment details project in Pune, Hiranandani had “We have not decided anything on about the project, Hiranandani earlier said in a media interview. the Haldia project. It is in the said: “We are working on the HEGC is on track to commission middle of the ocean and quite project and it is a long way to go.” the Pune power project by challenging,” said Hiranandani.

Analysts say the Haldia project is not attractive because of draft issues and a silted and cyclone-prone delta.

With another terminal coming up in five years from now, India will have five LNG terminals of 126 million standard cubic meters of gas per day. At present, it has two operational LNG terminals in Gujarat, Petronet LNG at Dahej and Shell Hazira at Hazira, with a total capacity of 13.7 million tonnes per annum or 48 mscmd �

News

Hiranandani in Talks with Hyundai for LNG Terminal at Dighi Port



Liquid CargoLiquid Cargo


SeaPorts

India's second largest ship builder, the meltdown in world economy. tremendous amount of flexibility to Bharati Shipyard Limited, has construct a large number of vessels

Apart from the six shipyards, firmed up plans to set up two mega in a limited time period. Each of Bharati has the basic clearance for shipyards on the east coast of the the six shipyards are well equipped setting up two major shipyards on country through the joint venture with requisite facilities such as the east coast. (JV) route. slipways, large fabrication shop,

outfit berths & basins, gantry Apeejay Surrendra Group employs The 50 : 50 JV between Bharati cranes and mobile cranes etc.close to 42,000 people in rapidly Shipyard and Apeejay Shipping, the expanding operations in tea, latter a unit of the Kolkata based The company is currently hospitality, shipping, real estate & Apeejay Surrendra Group, will set expanding and modernizing its retail and financial services. The up the two shipyards at a cost of production facilities with plans to Group continues to guide the USD 769 million. The two yards expand nationally, in order to conglomerate as it diversifies into will be designed to undertake ship build larger vessels over 200 new initiatives like shipyards, building, ship repairs and meters in length and oil logistics & knowledge parks.maintenance activity. exploration rigs, the first of which

is already being constructed now By operating from six locations One of the two shipyards will be Bharati Shipyard has integrated at its shipyard in Dabhol.near Dhamra in Orissa's Bhadrak

district to be spread over 800 to 1,000 acres of land and would have sufficient draft to build and repair ships of 320,000 gross tonnage (GT). It is currently got bogged down to some extent due to the land acquisition problems and also

�

News

Bharati Shipyard Plans Two Projects on East Coast Bharati Shipyard Plans Two Projects on East Coast Bharati Shipyard Plans Two Projects on East Coast Shipyards


SeaPorts

The Mumbai Port's Offshore at Raoli near Wadala junction to cargo moving in and out of the port. Container Terminal project which move the cargo rakes in/out the This will bypass all the congested had faced controversies is finally set city. But over the years despite the area. by next October as all the to nearing completion. Mumbai cargo traffic increasing there was work will have got completed, ” said Port Trust (MbPT) had signed an no scope to enhance this window. an MbPT official.Agreement in December 2007 with

Now the concerned agencies Containers will also move by road ICTPL, a JV of Gammon India and including the Central Railways, to and from the port. “Another Dragados of Spain, to execute the Mumbai Metropolitan Region project underway is the elevated project on BOOT basis for setting Development Authority road corridor which is nearing up the 1.2 million TEU container (MMRDA), Brihanmumbai completion and runs from terminal project. Some of the Municipal Corporation (BMC) and Wadibunder in the vicinity of the hurdles it faced in its execution Mbpt have come up with the port all the way to Chembur in the particularly with regards to solution of laying tracks on the land far suburbs. This will be made connectivity have now been ironed much of which belongs to MbPT - available to light vehicular traffic out and the terminal is proposed to between Wadala and Kurla - which besides the port's container traffic. get commissioned in October 2013.had all along posed a bottleneck. From Chembur the traffic can find Being a city port, evacuation of From there on the rakes carrying easy access to the national containers was the main hurdle containers will connect the highways. Construction of the MbPT faced. Containers have to national railway network. elevated corridor is being executed traverse through the entire length

of the island city to finally gain by MMRDA and this is due for “After Kurla the tracks will be access of the highways or the commissioning before October diverted to join the railway network. national railway network. MbPT 2013. The link road which runs on Execution will be done by MMRDA has managed to bypass all these MbPT land from the city and and the Central Railway. MbPT impediments according to officials connecting Wadala which is being proposes to finance the project and from the traffic department. also used by city traffic will get we have asked the Railways to take

preference for container traffic.”the matter forward since they are The railway lines in the city are executing the project of laying the already saturated by trains carrying These two connectivity projects are tracks. They have been asked to let passengers in various locals in super expected to meet the demand for us know the cost involved. The crushed condition with hardly any the container traffic that will be railways will have to make the prospect for increasing the generated by the container terminal arrangement to rehabilitate the frequency of service. In order to and also cater to the future affected people. A separate line will move cargo by rail, the railway expansion project envisaged. be laid between Wadala and Kurla authorities had with difficulty which will serve as a rail corridor for (Source: Maritime Professional)agreed to offer a four-hour window

�

News

Offshore Container Terminal to be Ready by Oct 2013



MumbaiPort

Kahlon Takes Charge as KoPTChief R.P.S. Kahlon has taken Chairman, the 1984 batch IAS Secretary to departments such as charge as the new Chairman of the officer, served as the Principal transport, fisheries, sports and Kolkata Port Trust (KoPT), an Secretary to West Bengal youth services, fire and emergency official release said. Prior to his environment department. services etc.appointment as the KoPT

Kahlon also served as Principal (Source - The Hindu Business Line)

�


SeaPorts

The global economic uncertainty Ennore Port Litd (EPL), said internal rate of return (IRR) for the has put a big question mark on the recently. port will be 14.11 percent; if it was viability of a new container 5.0 percent the IRR will be 14.91

The Chennai port's mega terminal at Chennai and Ennore per cent and if it was 5.25 per cent container terminal got poor ports – together to attract the IRR will be 14.97 per cent, said response with the final bidder, investment worth over Rs 6,000 sources.Essar Ports, quoting 5.25 percent crore.

The EPL is reviving its container as revenue share. This, the port Also, the container terminal at terminal project after the earlier felt was too low. The reason cited

private terminal operator - Bay of Katupalli port built by Larsen & for the low share was the Bengal Container Terminal Toubro next to Ennore port is ready economic uncertainty. The Port consortium - had to be terminated with the entire necessary Trust Board has formed a in October over delay in finalising infrastructure, including gantry committee to seek a possible funds.cranes to handle containers. The increase in the offer.

terminal is likely to be In the earlier bid, the EPL However, sources said that if Essar commissioned any time, thus planned to have a container berth does not agree for the increase, the posing a major challenge to both of 1 km. However, this time, it has Port Trust may be forced to take a the projects at Ennore and sought suggestions from potential decision on the offer.Chennai. bidders whether to build the same 1 km berth, or build it in phases – The transaction advisor, i-However, industry sources say since starting with 300 metres. “With Maritime Consultants, has handling of cargo globally will the global situation not recommended to the Chennai Port move towards containers from conducive, we need to ascertain Trust to accept the bid and award break bulk, there will be enough the viability of having a 1 km the contract in favour of Essar. business for new container length berth,” said a port official.There has been a global economic terminals.

slowdown and container handling On receiving suggestions from The presence of container in Indian ports has been slowing potential bidders, the port will terminals on either side of the down. In such a situation the appoint a consultant to start the port (L&T Kattupalli in the north tender process. Based on the viability of the mega project and Chennai port in the south) companies' feedback, the port will appears weak, and has not

change some of the parameters to will not affect the prospects for attracted many bidders. Hence, make the project attractive. The the project at Ennore. With an the Port Trust should accept the terminal is planned for 2013-14, increase in the transport of single bidder's offers, it says. he said.containerised cargo in future,

_______________________________The consultant said that if the there will be enough business for (Source - The Hindu Business Line)royalty share was 1.5 percent, the all, M.A. Bhaskarchar, Chairman,

�

News

Doubts Over New Southern Container Terminals' ViabilityDoubts Over New Southern Container Terminals' ViabilityDoubts Over New Southern Container Terminals' Viability

SouthernPorts


SeaPorts

GAC India is now a member of India meets all their anti-bribery TRACE International, Inc., a and transparency requirements,”

says Paul Haegeman, Managing non-profit membership Director of GAC India.association that offers practical

and cost-effective anti-bribery GAC India joins a growing band of

compliance solutions for GAC offices to hold TRACE

multinational companies. certification, sending a strong

TRACE certification underlines message to clients that GAC is

GAC India's strict compliance committed to ethical business

and ethics policies implemented practices. Other GAC companies

at its 27 offices around the with TRACE certification include membership attests to our country.operations in Dubai, Indonesia, commitment to ethical compliance, Nigeria, South Africa and “In today's highly competitive and gives existing and potential the USA.business environment, TRACE customers the assurance that GAC �

News

GAC India Gets TRACE CertificationGAC India Gets TRACE CertificationGAC India Gets TRACE Certification

BusinessEthics

Maritime World, the leading entity greater value by enhancing the DMC and Jadaf offer ship lift operation and technical support to promoting maritime excellence in quality of service delivery. We vessel owners. The former has ship the region, announced the have pledged our support to the lifts capable of lifting 3,000 and reduction of tariff rates along all small boat-owners and to 6,000 tonnes and the latter, which aspects of the business at Dubai organizations such as the Dubai is located adjacent to Dubai Creek Maritime City (DMC) and Jadaf Fishermen's Cooperative and is one of the oldest shipyards in from January 2013. Association and other such the region, has ship lifts that can association which benefit small

This is in light of Drydocks World – lift 300 tonnes and 2,400 tonnes commercial fishermen. They vessel deadweight.Dubai's 30th Anniversary represent our rich maritime celebrations in 2013. The reduction heritage and are in danger of Both yards offer an extensive range by from 2012 rates is aimed at

being phased out by the great of services through contractor facilitating the growth of the technological strides taken by the companies based within the industry at the micro-level and industry. Vessel owners registered premises. There is a move to increasing the repair and with the Dubai Fishermen's increase the berthing capacity at maintenance options available to Cooperative Association will be DMC ship lifts in the near future by small to medium size vessel-owners.entitled to a further 10 percent adding five dry berths, each berth discount on certain services,” said of 150 meters and wet berths by “We are able to play our part in Khamis Juma Buamim, Chairman 200 meters. This would help the growth and development of

address increasing demand from of Drydocks World and Maritime the industry, especially the small the region.World.scale vessel owners, and offer �

Maritime World Slashes DMC Tariff RatesMaritime World Slashes DMC Tariff RatesMaritime World Slashes DMC Tariff Rates

DrydocksBusiness


SeaPorts

A container train service has commenced from North India to Cochin Port by Arshiya Rail Infrastructure Ltd. The first container train from Jodhpur with 90 twenty foot containers reached the Ernakulam Wharf of Cochin Port at 2 am on 3.4.2012 with a consignment of White Cement for distribution in various parts of Kerala and Tamil Nadu.

The train service will be initially by-weekly. The train service will facilitate movement of goods from North India at much cheaper rates than by road transit. Later, the return leg may carry import containers coming through Vallarpadam ICTT. The service opens up connectivity between Inland Container Depots in North It is also possible to move Kerala to North India at competitive India to the ICTT. consignments like raw-rubber from rates through the rail service. �

News

stArshiya's 1 Container Train from North India Reaches Cochin Port



MultiodalLogistics

CONCOR Explores Entry into Coastal ShippingCONCOR Explores Entry into Coastal ShippingCONCOR Explores Entry into Coastal Shipping

ManagementStrategy

As part of Container Corporation shipping can be easily established CONCOR is committed to by undertaking all port operations of India Ltd's (Concor) overall providing responsive, cost effective, for coastal vessels or only taking up strategy of expansion and entry into efficient and reliable logistics the rail interface for such vessels at areas of business that would solution to its customers. It strives port terminals and providing complement its position as a multi- to be the first choice for its hinterland connectivity. For getting model logistics service provider, customers. CONCOR is a customer into coastal shipping, Concor can coastal shipping is an area of focused, performance driven, result pick up equity stake in sea-going business the company is examining oriented organization, focused on vessels and identify a strategic for making an entry. providing value for money to its partner with adequate experience

customers.and resources. CONCOR interface with coastal �


SeaPorts

The Chennai Port Trust has asked the low bid and, second time, due crore, while the private partner, Essar Ports, the sole bidder for the to security clearance. who will build, own and transfer the Rs 3,683-crore container terminal project, will invest Rs 3,125 crore.

According to a senior port official, project at Chennai, to reconsider The proposed investment includes Essar Ports has offered a revenue its offer that had offered a revenue Rs 963 crore towards breakwater, share of 5.25 percent, which is share of 5.25 per cent. Rs 362.25 crore for dredging, Rs slightly higher than Adani Ports's 496.80 crore to construct berths, Rs

At a recent board meeting, it was earlier bid of 5.0 percent. The 124.20 crore for reclamation and decided to set up a negotiation official added the revenue share the rest is for others.committee to review the bid offered was too low and the Port amount, said a senior board Trust was planning to ask Essar Port Essar Ports Limited (EPL) develops member of the Chennai Port Trust. and operates ports and terminals to increase the share.“We have not come to a conclusion and is one of the largest private

Essar and Adani were the two final what the percentage should be, we sector port companies in India by contenders, while seven companies will wait for the company to come capacity and throughput. It entered the qualification stage for back,” said the board member. provides services for liquid, dry the container terminal project, bulk, break bulk and general cargo.

Chennai port is one of the 13 which will have a capacity to If the company gets the container owned by the government of India. terminal project at Chennai, this handle four million twenty-foot Adani Ports and Special Economic will be first container terminal equivalent units (TEU) per annum.Zone Limited ( APSEZ) had shown project.interest in the project twice. For Of the total project cost, Chennai

(Source: Business-Standard)the first time, it was rejected due to Port Trust's share will be Rs 561

�

News

Essar Ports asked to Review Project BidEssar Ports asked to Review Project BidEssar Ports asked to Review Project Bid

Chennai Port

In a significant policy reform that is PPP projects due to the time taken The Shipping Ministry plans to expected to spur growth in the in completing procedures for award 42 projects under public-country's infrastructure sector, the approval. The enhanced delegation private and state-funded

of financial powers to the ministry Indian Government has approved a developmental schemes during the will accelerate investment approval proposal to delegate more project current fiscal year, which ends to PPP projects,” an official approval authority to the Shipping March 31, 2013, adding an statement said. “Besides, cost Ministry. estimated capacity of about 250 escalation due to delays in award of million tons a year. There are 12

The move follows persistent delays projects could also be avoided.” major publicly-owned ports in in implementing various Public- India, equally spread over the west The new guidelines come as the Private Partnership (PPP) projects

and east coasts, which cumulatively Ministry launched a USD110 billion in the port sector, including new handled 560 million tonnes of maritime plan to expand the country's container terminals at major cargo in fiscal 2011-12, which port capacity to 3.2 billion tonnes by gateway ports.ended March 31. Container volume 2020, from about 1.0 billion tonnes at totalled 7.77 million TEUs for the “The Ministry of Shipping has been present to cope with the projected fiscal year.experiencing delays in award of growth in cargo volumes. �

More Powers for Shipping MinistryMore Powers for Shipping MinistryMore Powers for Shipping Ministry

PPP Projects


SeaPorts

The Ministry of Shipping (MoS) expected to cost Rs 3,800 crore and has said it is not feasible to develop is being proposed under the public-a major port at Tadadi in Uttara private partnership (PPP) mode.Kannada district as the required

“The Ministry of Shipping had come hinterland is still not available. The forward to develop the port earlier Ministry has told the Karnataka this year and they also visited the Government that it would develop proposed port site. After conducting the port in phases and to begin with the site visit and technical studies, build a small barge-mounted port.the Ministry told us that they would

However, the state has not build only a small barge-mounted accepted the MoS proposal and port for now. They think there is

not enough hinterland. We have instead it wants to develop a major told the Ministry that there is port there on its own.enough traffic available as per our

The state had approached the detailed project report. The Centre for assistance in developing Ministry is yet to give its final a major port at Tadadi last year. opinion on the project,” a top state The greenfield port project is government official said. �

News

Karnataka Plans to Build Tadadi Port, despite Centre Backing Out



Port Development

ABG Shipyard Limited, country's Corporation of India (SCI) for the diesel Engine Driven 2000 DWT, leading private sector ship construction of six 80 T Bollard are expected to be delivered building company has bagged a Pull AHTS Vessels. within 1 - 2 years with a gap of prestigious order amounting to Rs two months from delivery to

The six vessels, each measuring 500 crore ($ 101.40 million) from delivery. The company's total 63.4 meters with Twin Screw the state-owned Shipping order book as of date stands at

nearly Rs.16,600 crore.

Dhananjay Datar, Whole-Time Director and CFO of ABG Group said, “This is a momentous occasion for us as it shows the confidence that SCI has in ABG and its capabilities. SCI is a leading shipping company in India and we value their alliance. We hope a win-win association with SCI for years to come”. �

ABG Shipyard Bags SCI Order to Build Six VesselsABG Shipyard Bags SCI Order to Build Six VesselsABG Shipyard Bags SCI Order to Build Six VesselsShipbuilding


SeaPorts

Ennore Port Ltd is reviving the Chennai port in the south) will not extent of about 2,200 acres is development of a Container affect the prospects for the project available at present with sufficient Terminal after the earlier private at Ennore. With an increase in the waterfront. Ennore port has a

transport of containerised cargo in potential to develop 20 berths with terminal operator - Bay of Bengal future, there will be enough over 100-million-tonne capacity a Container Terminal consortium - business for all, he said. “We have year to handle a variety of dry had to be terminated in October the advantage of good rail and road bulk/liquid bulk cargo, automobile over delay in finalising funds.connectivity,” he said. The units, project cargo and

The EPL has invited expression of proposed container terminal is to containers.interest (EoI) from companies who be developed in stages on a

Ennore Port has six berths as of would like to take up the project on modular basis.now capable of serving the varied a public-private-partnership mode.

The strategy should be to develop needs of the maritime industry.Based on the companies' feedback, terminals that can accommodate at

The first phase of the port the port will change some of the least 8,000 twenty foot equivalent development with an investment of parameters to make the project unit (TEU) vessels and even 14,000 Rs1,058 crore created a protected attractive. The terminal is planned TEU in future. The development port basin, two coal wharves to for 2013-14, M.A. Bhaskarachar, and operation of the terminal will accommodate two panamax size Chairman, EPL, said recently. The be through the PPP model on BOT vessels of 280 m length each and a second step is to issue request for basis for a concession period of 30 depth of (-) 15 m alongside with qualification, he added. years according to the Model entrance/approach channel (3,775 Concession Agreement

The presence of container m length) and port basin a depth of /Government of India Guidelines.terminals on either side of the port (-) 16 m and (-) 15.5 m (L&T Kattupalli in the north and A back-up portion of land to the respectively. �

News

Ennore Port Revives Terminal Project, Invites EoIs for PPP Model



ThePPP Route

Events Domestic & InternationalDomestic & International

Domestic Event:

International Event:

Park Rotana, Abu Dhabi Transport logistic 2013www.fleminggulf.com 4 - 7 June 2013

New Munich Trade Fair Centre, Logistics 2013 7th Indian Ocean Ports and Munich, Germany15 – 17 February 2013 Logistics 2013www.transportlogistic.dePragati Maidan, Delhi, India 27 - 28 February 2013

www.ietfindia.in/logistics.aspx Rainbow Hotel, Beira, Mozambique TOC Container Supply Chain www.transportevents.comGreenPort South Asia 2013 Europe 2013

20 – 22 March 2013 25 - 27 June 2013TPM ConferenceHotel Trident, Nariman Point, Ahoy, Rotterdam, The Netherlands3 - 6 March 2013Mumbai, India Long Beach Convention Center & www.tocevents-europe.comwww.greenportasia.com Hyatt Regency Long Beach, Long

11th ASEAN Ports and Shipping Beach, CA, USACold Chain Pharmaceutical 2013www.joc.com/eventsLogistics 201311 - 12 July 20132 - 3 May 2013 Breakbulk China 2013 Windsor Plaza Hotel, Ho Chi Minh Hyderabad, India 12-15March 2013 City, Vietnamwww.nispana.com www.joc.com/events www.transportevents.com

India Transport & Logistics Show TOC Container Supply Chain Asia 10thNavalshore 20132013 12 - 14 March 2013 6 - 8 August 20132 – 4 May 2013 HKCEC, Hong Kong Sulamerica Convention Centre, Rio Pragati Maidan, Delhi, India www.tocevents-asia.com de Janeiro, Brazilwww.indiawlshow.comwww.ubmnavalshore.com.brWorld Ports & Trade Summit 2013

India Warehousing Show 2013 19 – 20 March 2013 Marine Maintenance World Expo 2 – 4 May 2013 St Regis Saadiyat Island Resort, 2013Pragati Maidan, Delhi, India Abu Dhabi 10-12 September 2013www.indiawlshow.com www.worldportsandtrade.com Brussels, BelgiumIndia Cold Chain Show 2013 www.marinemaintenanceworldexpo.11th Intermodal Africa North 201312 - 14 September 2013 com27 - 28 March 2013Bombay Convention & Exhibition King Fahd Palace Hotel Dakar, 2nd Black Sea Ports and Shipping Centre, Mumbai, India Senegal 2013www.indiacoldchainshow.com www.transportevents.com 11 - 12 September 20137th Express, Logistics,& Supply Intermodal South America 2013 The Marmara Taksim, Istanbul, Chain Conclave 2 - 4 April 2013 Turkey26 - 27 September 2013 Transamerica Expo Centre, www.transportevents.comHotel Taj Lands End, Mumbai, India Sao Paulo, Brazil

8th Southern Asia Ports, Logistics www.kamikaze.co.in www.intermodal.com.brand Shipping 2013

Breakbulk Africa Congress 2013 23 - 24 October 201315 - 18 April 2013 The Leela Kempinski Hotel Mumbai,

7th Philippine Ports and Shipping www.joc.com/events India2013 www.transportevents.com1st Med Ports 201330 - 31 January 2013

23 - 24 April 2013 11th Intermodal Africa South The Peninsula Manila, The PhilippinesHilton Alexandria Green Plaza, Egypt 2013www.transportevents.comwww.transportevents.com 28 - 29 November 2013

2nd Annual Supply Chain Middle Feather Market Convention Center, Breakbulk Europe 2013 East Strategy Summit Port Elizabeth, South Africa14 - 16 May 20135 -6 February 2013 www.transportevents.comwww.joc.com/eventsRadisson Royal Hotel, Dubai Marintec China 2013www.fleminggulf.com 9th Trans Middle East 20133 - 6 December 201329 - 30 May 2013Port Management Strategy Summit Shanghai New International Expo Phoenicia InterContinental Hotel, 2013 Centre, Shanghai, ChinaBeirut, Lebanon5 -6 February 2013 www.marintecchina.comwww.transportevents.com �

SeaPorts Business

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