ASSOCIATION OF MULTIMODAL TRANSPORT OPERATORS OF INDIA
C/o/ CKB, 1st Floor, 20 Rajabhadur Mansion, Ambalal Doshi Marg, Fort, Mumbai – 400 023.
WEEKLY UPDATES RELATED TO SHIPPING NEWS
CONCOR launches scheduled train service from DCT Turbhe
September 24, 2012
DST – Mumbai
The Container Corporation of India (CONCOR) has announced the commencement of a scheduled train service from DCT-Turbhe (Navi Mumbai) to Shalimar (Kolkata) and Amingaon (Guwahati) on the 25th of every month.
The first rake will run as per schedule and will move cargo to the eastern sector consisting of the domestic and international segments, disclosed an official release.
The rates offered by CONCOR are much lower than the rates offered by road transporters as well as those charged by private container train operators, according to the release. It is expected that the trade and economy will be majorly benefited from such initiatives taken by CONCOR.
Chennai Port to develop Dry port and logistics hub by 2015
September 24, 2012
DST – Chennai
The Chennai Port Trust is developing an Integrated Dry Port & Multi-modal Logistics Hub near Sriperumbudur at an estimated cost of INR 415 crores. It will be have components viz. Inland Container depot (ICD) / Off dock Container Freight Station (CFS), Container Yard, Connectivity, Trade Centre, warehouses for containerized cargos like leather garments, Textiles, Automotive components & Electronic hardware. To add, Off-dock CFS will have onsite Customs Clearance facility.
Government had approved the proposal for acquiring 125 acres of land allotted by State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) of GoTN and an amount of INR 100.136 crore was paid for acquiring the land on 99 years lease basis. Interestingly, the lease agreement with SIPCOT executed and the facility is to be offered for development through Public Private Partnership (PPP) mode. Also, Detailed Project Report (DPR) was approved and Transaction Advisor had been appointed while Consultant was appointed for fixation of Upfront Tariff Overall Project completion is estimated by June 2015.
Cabinet Panel seeks more focus on dredging projects
September 24, 2012
DST – New Delhi
Considering the high dredging expenditure, the Parliament Standing Committee on Transport has suggested preparation of a long-term plan for financing dredging operations in major ports.
The committee noted that execution of dredging projects has not been given due priority and this has affected the capacity addition programme of major ports. It is pointed out that modern vessels, like Panamax and Supermax cargo ships, require a draft of 14 metres and more.
The Committee observed that dredging plays an important role in solving the challenges of increased vessel sizes and handling operations of the port.
Both capital and maintenance dredging are important components for cargo handling capacity and to increase the efficiency of Indian ports. The committee added that the projects that have been taken up or are proposed to be taken up must be executed in a time-bound manner.
Centre to develop national integrated logistic policy
September 25, 2012
DST – Visakhapatnam
The Shipping Corporation of India (SCI) Chairman & Managing Director Mr. S. Hajarasaid the Centre should develop a national integrated logistic policy to augment maritime infrastructure at a function attended by over 300 delegates.He added, an integrated policy would help initiate the required policy interventions and framework to encourage investments in the maritime sector.
Predicting a bright future for maritime sector on the East Coast, Krishnapatnam Port Chief Executive Officer Mr.Anil Yendluri said it would be difficult for the Government alone to build infrastructure required for the growing trade and welcomed the Public Private Partnership (PPP) mode of investments.he said there was an urgent need to encourage eco-friendly inland transport due to freight advantage.
Dhamra Port CEO Mr. Santosh K. Mohapatra pointed out that the ports on the East Coast had the advantages of deep draft facility.
“It’s not about the number of ports but the types of ports that are coming up, which will ultimately make all the difference,’’ said J.M. Baxi Group Chairman Mr. Krishna B. Kotak.
Govt delegates more financial powers to MoS for PPP port projects
September 27, 2012
Exim News Service – New Delhi
The Cabinet Committee on Infrastructure (CCI) has approved a proposal to delegate enhanced financial powers to the Ministry of Shipping (MoS) for port projects in the public-private partnership (PPP) mode in line with NHDP projects in the road sector.Henceforth, CCI approval is required only for port projects costing more than Rs 500 crore under PPP.
Earlier, approval was required for projects costing more than Rs 300 crore.
It is hoped that the enhanced delegation of financial powers to the MoS will accelerate investment approval for PPP projects, thereby serving the public interest. Besides, cost escalation due to delays in award of projects could be avoided, highlighted an official release.
The Ministry has been facing delays in the award of PPP projects due to the time taken in completing the approval procedures. If the port sector is delegated powers on the lines of the road sector, the time taken for PPP investment approval could be reduced.This would facilitate speedy development of port capacity in the years to come, the release stressed.
Indian Ports capacity ability to double next five years
September 27, 2012
DST – Mumbai
The capacity of Indian ports will have to nearly double to 2,302 million tonnes (MT) over the next five years to be able to handle the fast growing cargo traffic, the Planning Commission has said.
"To meet the overall projected traffic of 1,758.26 MT by 2016-17, the total capacity of the port sector is envisaged to be 2,301.63 MT," the 12th Five Year Plan (2012-17) document has said.
"The traffic forecast by the end of the 12th Plan would be 943.06 MT and 815.20 MT for the major and non-major ports respectively with corresponding port capacities of 1,241.83 MT and 1,059.80 MT respectively," it added.
Total capacity of the country's ports, including 12 major and over 200 non-majors, stood at 1,247.45 MT in 2011-12 and together they handled 971 MT cargos.
Major ports had the lion's share at 601 MT and the rest was done by the non-major ports. The Plan Panel expects Jawaharlal Nehru Port Trust (JNPT) to have the maximum capacity at 155.61 MT by 2016-17 followed by Kandla Port at 145.13 MT.
Almost 95% by volume and 70% by value of India's global merchandise trade is carried through the sea route. Of 12 major ports, 11 are administered by respective Port Trusts and Ennore Port, the 12th major port, which in February 2011 started functioning, is corporatized. The projected traffic and capacity for the major ports in 11th Plan Period was 708.09 MT and 1,016.25 MT respectively.
For non-major ports, the capacity was envisaged to grow to 575 MT from 228.31 in 2006-07. However, actual capacity in the non-major ports grew to 544.65 MT by 2011-12.
"A time-bound plan should be made so that by the end of the 12th Plan, the turnaround time matches with most efficient ports. This action plan must be designed and put in place quickly," it added.
Global port operators looking at stake in Dhamra port
September 28, 2012
Exim News Service – Mumbai
Some global port operators as well as private equity funds are reportedly interested in obtaining a majority stake in Odisha’s Dhamra port, it is learnt.
Dhamra Port Company Ltd (DPCL) is an equal joint venture between L&T and Tata Steel.
According to reports, L&T is offering its 50 per cent stake in the facility, and the Tatas could sell at least 26 per cent depending on the final offer, thereby giving control to the potential new operator.
L&T is seeking an enterprise valuation in excess of Rs 4,000 crore, sources said.
Consensus eludes Indo-EU BTIA talks
September 28, 2012
Exim News Service – New Delhi
Discussions on the India-European Union bilateral trade and investment agreement (BTIA) have hit a roadblock due to both sides being unable to reach a consensus on how services trade would be eased. Further, issues pertaining to outsourcing and the movement of labour are also yet unresolved.
Commerce Ministry officials, however, are confident of clinching the agreement by the end of the year, as planned earlier.
While the EU has asked for greater market access in India's banking and insurance sectors, India wants clarity on how trade will be eased under mode-1 (outsourcing) and mode-4 (cross-border movement of persons).
Kochi Port plans long-term agreement for dredging to reduce cost
September 28, 2012
DST – Kochi
Aimed at reducing the spiralling cost in maintenance dredging, Kochi port plans to go in for long-term bond for dredging.The management has invited expressions of interest from companies and their consortiums or joint ventures for taking up dredging operations for a period of 12 years.The long-term contract is expected to make the work more attractive to dredging companies, port officials said.
Earlier, the port management used to award maintenance dredging contracts on an annual basis, and the present contract which is for three years, is being carried out by the Dredging Corporation of India. The award period is 2011-12 and 2013-14.
The dredging operations at present include work for maintaining the depth of the basins and channel for the International Container Transshipment Terminal (ICTT) at Vallarpadam. The depth requirement in the ICTT berth basins is 14.5 meters. To meet the rising expenses in dredging, the port management had even sought a one-time assistance of around INR 400 crore from the Union Shipping Ministry. However, the proposal has not been considered so far.
Singapore Port Planning Capacity of 50 Million TEU’s October 2, 2012 JOC – Singapore
Port of Singapore container facility will benefit from an investment of S$ 3.5 billion over the next decade as PSA Singapore Terminals continue to boost capacity.
Phase three and four of its Pasir Panjang Terminal development will add 15 new berths and nearly 19,700 feet of quay length at drafts of upto 59 feet, taking port capacity to morethan 50 million TEU’s per year by 2020, up from capacity of 35 million TEU’s now.
China Trucking Sector Takes New Life October 2, 2012 JOC
Chengdu, a city of 14 million people, more than 1700 kms. from the ports of Shanghai or Shenzhen, is at the heart of China’s plan to shift manufacturing higher cost east to its interior.
China Export Orders Fall at Sharpest rate Since 2009 October 2, 2012 JOC
A key manufacturing index shows Chinese export orders in September fell at their sharpest rate in 42 months, suggesting manufacturing growth is likely to be bottoming out.
Manufacturing activities remain lack luster thanks to weak new business inflows and longer than expected destocking process, said HSBC’s chief economist for Greater China and co-head of Asian Economic Research. He said Beijing should ramp up efforts to boost growth in light of decline in export orders and lingering pressures on job markets. The government’s recent efforts to boost the economy should begin to take hold in fourth quarter.
US Trade With India, 2002 – 2011 October 2, 2012 JOC
US trade with India in 2011 was a $57.7 billion market that rose 18.2 percent year – over – year, increased 32.9 percent from pre-recession 2008 and spiked 262.2 percent growth since 2002. While US trade with India remains import driven 22.4 percent year – over – year growth and 56.8 percent of 2011 trade, exports to India have grown five fold since 2002.
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