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RNI NO: TELENG/2009/30633 POSTAL REGISTRATION NO: LII/RNP/HD/1137/2013-15 SURPRISE TURNAROUND DATE OF PUBLICATION: 26/10/2015 DATE OF POSTING: 28/10/2015 – RPS KAHLON, Chairman, KoPT

NO MAJORMORE DRIFTING The promise of a spur in manufacturing activity in has led the government to reconsider the role of the major ports as enhancers of export-import trade. The recent improvement in their performance has led the government to reform the ports run by the government. 02 MARITIME GATEWAY / NOVEMBER 2015 from the editor

Is there a better trade off?

As the Prime Minister touts the Make be counterproductive. This is because in India programme to his counterparts the government has relaxed cabotage and entrepreneurs worldwide, his cabinet restrictions partially for some cargo on and band of officer are also working the east coast of the country for foreign Improving the overtime to popularise and implement vessels to carry cargo and on the other the domestic manufacturing campaign hand it is promoting the Indian flagged environment for just in all sectors possible. And taking the vessels. How then can this bring about lead in the shipping sector is none other a level playing field in the country for Indian players alone than the Minister for Shipping and Road international and Indian shipping lines does not constitute Transport, Nitin Gadkari himself. to ply along the coast? The government must keep in mind the interest of the ease of business. For the uninitiated, a fresh slew of industry than any single party for the directives have emerged from the country’s sea ports to do well and Transport Bhavan in . First, flourish. While it is imperative for the navratna public sector companies India to pay attention to its vessels and such as SAIL, NMDC and NTPC improve their share in the EXIM trade have been asked to support the Indian of the country, the decision should not flagged vessels by moving their cargo deter others players from introducing within the coastal route using the new vessels in the country. vessels. More clearly, the government intends to mandate the state owned The shipping sector being global in companies to allot 50 per cent of their nature, the performance of both sets of import orders to ensure there is enough vessels is dependent on external factors cargo support for vessels that register of demand and supply than cargo themselves with the Indian Register of capacity created by the public sector Ships. Alongside, more reforms are on companies. The government should look the cards to perk up the performance of at improving operating conditions in the major ports and a comprehensive plan country by reducing the tax burden on under the Sagar Mala Development all carriers, sea farers and the duty on Company incorporating both aspects of bunkers to make the ports attract fresh -led development port-led indirect investment from within the country development. The decision to reduce the and investors overseas. Improving the overreach of the tariff authority is also a environment for just Indian players alone welcome move. does not constitute ease of business. These moves by the ministry indicate the nature of things to come and they augur well for the industry. No doubt the government has the progress of the industry in its mind while it prepares to R Ramprasad roll of these plans. However, the industry Editor and Publisher reckons some of these measures may [email protected] Automate, connect and control with Cavotec’s inspired engineering.

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Maritime Gateway is printed by R Ramprasad Published at Gateway Media published by R Ramprasad on behalf of Pvt Ltd #407, 5th Floor, Pavani Plaza follow us on @maritimegateway Gateway Media Pvt Ltd, #407, Khairatabad, Hyderabad – 500 004 5th Floor, Pavani Plaza, , India Khairatabad, Hyderabad – 500 004, Telangana, India Regd. Office: H.No. 8-2-293/82/A/379 & 379/A, 2nd Floor, Plot No. 379, Road No. 10, Printed at M/s Kala Jyothi Process Pvt Ltd, Jubilee Hills, Hyderabad – 500 033. 1-1-60/5, RTC Cross Roads, Musheerabad, Hyderabad – 500 020. CIN: U74900AP2007PTC054344 Editor: R Ramprasad Editorial Advisory Board Views expressed in the articles are those of the writer(s) and may not be shared by the S abyasachi Hajara Anil Yendluri A Janardhana Rao editor or members of the editorial board. Former Chairman, SCI, Director & CEO, Krishnapatnam Port MD, Indian Ports Association Unsolicited material will not be returned. Chairman Editorial Advisory Board Company Ltd Jasjit Sethi Joachim von der Heydt Adarsh Hegde CEO, TCI Supply Chain Solution Copyright Chairman, Bengal Tiger Line, Singapore Executive Director, Allcargo Logistics Capt Dinesh Gautama No material published here should be re- Julian Michael Bevis President Senior Director, Group Relations, South Asia P Jairaj Kumar Navkar Corporation Limited produced in any form without prior written Chairman & MD, Ocean Sparkle Limited A.P.Moller-Maersk Capt Sanjeev Rishi permission from Gateway Media. S hardul Thacker Advisor Capt Deepak Tewari Partner Worlds Window Infrastructure & Logistics Pvt Ltd Feedback Chairman, Container Shipping Lines Association (CSLA) Mulla & Mulla & Craigie Blunt & Caroe Navin Passey Readers are advised to send all feedback and Anil Singh Dhruv Kotak Managing Director Sr VP & MD, DP World Subcontinent Director, JM Baxi Group Wallem Shipmanagement (India) Pvt Ltd comments to [email protected] contents volume 8 | issue 02 | november 2015

23 24 MG POLL: 36 cargo : cover story: Sagarmala popular, exports | GRANITE but sceptical about The promise of a spur Major Ports waterways Too stoned to move in manufacturing activity in India has Maritime Gateway has started Despite being a huge foreign led the government NO MORE a new feature “MG Poll” under exchange earner, India's granite to reconsider the role DRIFTING the purview of our research industry faces huge logistics of the major ports as division “Gateway Research” to hurdles enhancers of export- disseminate the views of maritime import trade. The recent professionals on most sought improvement in their after projects initiated by the performance has led the Indian government to expedite government to reform the growth of maritime business the major ports. and trade. 28 INFRASTRUCTURE: INTERVIEWs TERMINALS | jnpt 40 Finally, a milestone logistics : STEEL achieved! Long shopping list with The Bharat Mumbai Container growth strategy 34 Terminal will more than R P S Kahlon, chairman, KOPT double the capacity at JNPT RINL vows to enhance its with addition of an extra productivity further to broaden Surprise Turnaround 4.8 million teu. its market share with a well “We are one of the few ports in which turnaround knit logistics and supply chain time and pre-berthing detention has improved.” system in place. 44 46 Capt Umesh Grover, Secretary General, CFSAI Operations: port | vgcb Guided by experts: Committed to support Need more room to grow “CFSAI have been able to address some of the Three years since pain areas by making adequate representation with commencement of operations, concerned authorities.” the general cargo berth at Vizag Port is pleading for greater yard space and higher frequency of 50 30 DEVENDRA GUPTA, C EO, Ecozen Solutions CARGO: rake allocation. Cold storage goes green IMPORTS | APPLES The drive to improve energy efficiency in cold Upsetting the apple cart 48 storage solutions has led Devendra Gupta and his Though DGFT's restriction on in inno vaTION: WAREHOUSING firm to introduce EcoFrost Technologies. bound apples is to support local apple trade, it triggered steep H ot idea for cold storage increase in logistics costs. A solar powered farm level cold storage device can go a long 54 way in improving the logistics S A Mohan, COO, Maini Materials movement chain of agri-produce. Betting big on Indian market In this interview SA Mohan talks in length about the 64 company’s business verticals and its future plans kpcl : golf championship Sportsmanship and 58 camaraderie C apt Vivek S Anand, President, MANSA 32 Enthusiastic golfers played their Time to open up the market region : nepal best shot at the first edition of “Indian shipping should be brought to the level of Krishnapatnam Golden Eagles international shipping. Once that is achieved, the Cargo stranded Golf Championship. markets should be opened up.” Cargo movement to the country has come to a standstill followed by political unrest and protests at Others major customs points in Nepal- 10 News in Brief Indo border. Thousands of Nepal-bound cargo laden trucks 12 Point Blank are stranded on the Indian side 14 News of the border for more than three weeks. 66 Infographics Doesn't that all add up to good reasons why JNPT is No. 1? brief NEWS

Rails Bruderheim hotel to be built from shipping containers dispatched containers. The hotel is for freight being constructed by corridor Ladacor, a Calgary-based Jindal Steel and manufacturer of advanced Power Limited has modular structures. The flagged off In- containers are being dia’s longest ever imported from China rails measuring and will be cut apart and 260 metres to the reshaped into 40 modular Dedicated Freight units – 10 for each floor. Corridor Corpora- Each module will include tion of India, for two complete rooms and construction of the a section of hallway. Last eastern corridor of year, Ladacor completed a the landmark 350- Days Inn for Sioux km dedicated freight Lookout, Ontario, Canada railway network. hen it opens next the Industrial Heartland using 120 surplus shipping Two rakes laden Wyear, the four-story, region. The $6-million hotel containers. Traditional with 1,880 tonnes 63-room Suite 6 Extended project is the first of its kind wood-frame construction of rails of 87-metre Stay hotel will provide being developed in North was used for the reception length have already much-needed accom- America to be built almost area and other common been dispatched in modation for workers in entirely from shipping spaces. August out of the total order size of 90,175 tonnes of rails. JSPL received this order for around Container CMA CGM Bougainville inaugurated 350-km long double terminal at CMA CGM Group inaugu- track from Khurja to Kakinada rated its new flagship, CMA Bhaupur. CGM Bougainville at Port PSA International Pte Ltd of Le Havre. This is the plans to set up a container world’s biggest container Low piracy loading facility at Kakinada vessel under French flag. risk at west Port as it looks to expand She is 400 metres long and coast its presence in India. PSA is 54 metres broad. She can European Union said to have signed an MoU carry up to 18,000 containers. CMA CGM Bougainville will call Chair of the Contact with Kakinada Seaports Ltd every 88 days at the port of Le Havre. Group of Piracy off in this regard. This will be the Coast of Somalia PSA’s first facility at a port (CGPCS) has ex- outside the control of the Funds for SEZ at JNPT cluded India’s west Union government. coast from piracy High Risk Area, The Union shipping ministry following a revision Tax rationalisation has approved `468 crore for the of the high risk area. on exports development of basic infrastruc- Indian shipowners ture for a multi-product SEZ at are likely to benefit The Commerce Ministry JNPT. The project is expected significantly on ac- has adviced the Finance to become fully functional by count of savings on Minister to rationalise taxes 2018. As many as 18 firms have insurance and associ- on exports and extend the shown interest in the project in ated operating costs. interest subvention scheme the pre-bid stage. It has been India’s maritime to support the export indus- planned as a self-sustainable security concerns try. Exports contracted 20.7 integrated development with a good mix of processing and like floating armou- per cent to $21.2 billion and non-processing area. The processing area is envisaged to be ries and proliferation imports shrank 9.95 per around 200 hectares while the non-processing area spans of private security cent to $33.7 billion during over 77 hectares. Once developed, the economic zone could are likely to be August, leaving a trade attract an investment of more than `3,500 crore. addressed with the deficit of $12.5 billion. revision of the HRA.

10 maritime gateway / november 2015 Bulk terminal at Sahibgunj DICT crosses 3,000-teu mark Delhi International Cargo Terminal (DICT) has achieved a milestone by crossing 3,000-teu in throughput in September 2015, which includes dry, liquid, ODC as well as temperature- controlled cargo. DICT has set an ambitious target to triple its volume over the next financial year through organic growth across existing and new businesses, and exploring greenfield opportuni- ties in bulk, liquid and specialised containers.

IWAI is now gearing Waterway-1. NTPC’s up to tap domestic coal power plants at Farakka Green ship recycling at Alang traffic. Plans are afoot and Kahalgaon in Bihar, RL Kalthia Ship Breaking Pvt for taking steps for safer and to build a bulk cargo ter- in addition to Sagar- Ltd and Priya Blue Industries greener ship recycling. The minal on the Ganga at dighi unit of the West Pvt Ltd in are the facilities are in line with the Sahibgunj in , Bengal State generation first ship recycling facilities in Hong Kong International close to Ltd’s utility can be fed from entire South Asia to be issued Convention for Safe and Envi- coalfield. It the proposed Sahibgunj Statements of Compliance ronmentally Sound Recycling will decongest railways terminal. As part of its (SoC) by Japan’s leading clas- of Ships, 2009 (HKC). and create return traffic agenda to reach output sification society, ClassNK, for barges to be engaged of 1 billion tonnes in in carrying imported five years, CIL is look- coal. This is part of ing to expand the mine’s the `4,200-crore World capacity significantly Focus on goods safety Bank project to promote offering more business navigation through to the terminal. Maersk Line and Hapag-Lloyd together with the Hapag-Lloyd the 1,620-km National have teamed up in increasing Freight Information System the safety of dangerous goods. is continuously examining Maersk Line will implement cargo data to identify anything a tracing system into their conspicuous. It has a database Credit for shipbuilders business processes similar of more than 6,000 keywords EXIM bank is providing to Hapag-Lloyd’s watchdog that is constantly being added buyer’s credit to Indian programme. This watchdog to and refined. shipbuilding companies. This will help them bid for international contracts. Adani inks pact with L&T For such projects the ship- Adani Ports and yards have received credit Larsen & Toubro at a low coupon rate of (L&T) have inked 4-5 per cent. The bank is also providing working a pact to oversee capital and term loans for projects under implemen- operations of Kat- tation. Indian shipyards, in spite of having good tupalli Port. Both products and engineering skills, could not compete the parties have with China, South Korea and Japan because they inked an MoU lacked finance arrangements for the buyers. for evaluating the operations of the port for a period of one month Shipbreaking hit by Chinese from October onwards. Adani shall be responsible for EBITDA steel gains and losses arising from the port operation for this period. More than half of the shipbreaking yards at Alang The development is in line with Adani Group's plan to take over have shut in the past two years and the future of the operational and management control of L&T Kattupalli the trade in India and neighbours Bangladesh and International Container Terminal to strengthen its presence on the Pakistan is bleak due to flooding of cheap Chinese east cost. steel. Further new EU environmental rules due later this year threaten to push business to more modern yards in places like China and Turkey. The number V OC port’s north cargo berth II of vessels beached at Alang also dropped to a six- year low of 275 last year and was only 54 in the last Construction of north cargo berth – II at VOC Port to handle three months. coal will start in 2016 at an estimated cost of `400 crore.

november 2015 / maritime gateway 11 POINT BLANK

Even though Indian cotton textile products Ports will play huge role in were competitive in the double digit GDP target and world markets, preferential port, shipping and highways access given to Bangladesh, sector will very soon add 2 per Cambodia, Pakistan, cent to the countrys GDP. South Korea by importing Nitin Gadkari countries, besides import Minister for Road Transport Highways and Shipping duties on Indian textiles in China and Canada, are severely affecting exports. RK Dalmia Chairman, TEXPROCIL

Transloading at high seas assures higher risk-free returns and gels with the idea of smart ports and ports beyond land. Massive infusion of IT and automation could reduce the risk of human casualties and eliminate human interface and unethical practices. Dr Vishwapati Trivedi Chairman, National Shipping Board We have relaxed cabotage restrictions selectively, but in the interests of the growth of the domestic merchant shipping fleet, coastal As the huge number cargo must be reserved for of ships get delivered, national tonnage. the freight rates Deepak Shetty will still continue to Director General of Shipping decline. We expect testing times in the dry bulk segment to prevail. A K Gupta Chairman and Managing Director, Shipping Corporation of India

12 maritime gateway / november 2015

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wings of the Ministry. Nitin Bhutan, will soon fix a fee structure for transit facilities Adani's Australian SHIPPING Gadkari received the CMD of Indian Register Qual- and water transit services, coal project ity Systems (IRQS). The which the users have to pay Pioneer shipping ministry is the first accordingly. Discussions cleared Generation Award largest ministry in India are ongoing among the The Australian govern- to achieve this feat. After four countries to fix the fee ment has re-issued environ- to David Chin the internal audit by the structure for transit facili- ment clearance for Adani Ministry, the certificating ties. While India provides David Chin, Group’s proposal to build body appointed by Quality duty-free access to all goods Executive one of the world’s largest Council of India conducted from Bangladesh save for Direc- coal mines, but with 59 two-stage audit and found two items, the goods are tor of the stiff caveats that meet the the quality management still subjected to counter- Singapore highest environmental stan- system of the Ministry vailing duties upwards of 12 Maritime dards. Adani Mining Pty for performing its services percent in the neighbouring Foundation has been Ltd intends to invest $16 bil- to the citizens of India in country. honoured with the Pioneer lion in an integrated project accordance with the ISO Generation Award at the to develop the Carmichael standards. Lloyd’s List Asia Awards coal mine near Queensland 2015 in Singapore. David COSCO expands with allied infrastructure of Chin, whose service to Sin- Iran expands fleet service a rail link and Port at Abbot gapore’s maritime sectors to transport coal to India. spans 53 years, is currently Adani plans to ship 40 mil- spearheading the aims lion tonnes of coal a year and objectives of the SMF in the first phase of mine which include serving as the development. link between public and pri- vate sectors in the maritime industry, driving initiatives General Motors to attract and nurture talent ships from in Singapore’s maritime sector, and pursuing all op- Mumbai Port portunities to help maintain Post sanctions, Iran is all Singapore a leading interna- set to expand its fleet that tional maritime centre. will include 579,000 teu of containerships, 2 million “Mr Chin has been a key dwt of dry bulk vessels and COSCO Container Line contributor to Singapore’s 1.6 million dwt of tank- is all set to commence a stature as a global maritime ers, all to be operational by direct service to Jeddah hub. Perhaps no one else in 2020. This fleet moderni- and Port Said (Red Sea) Singapore has had positive sation and expansion will and a full range of Mediter- influence over time across be financed through funds ranean ports. Participating all sectors crucial to mari- purported to exceed $120 in the MINA service using time development. He is a billion, currently frozen a deployment of 11 vessels maritime national treasure,” internationally due to sanc- of 6,500 teu capacity, this said Tom Leander, Asia tions. Islamic Republic of is a fixed-day, direct weekly General Motors India has Editor of Lloyd’s List. Iran Shipping Lines is also service from the Middle shipped the first batch of looking forward to strategic East to the Mediterranean 3,000 Chevrolet Beats pro- alliances and is already in destinations servicing the duced at its Talegaon plant Shipping Ministry talks with Shipping Corpo- Indian market, e.g. Nhava to Mexico from Mumbai acquires ISO ration of India. It will be Sheva and Mundra. It has Port. This is part of GM's mostly ordering panamax Certification the following port rotation: strategy to make India vessels, of 14,000 teu and Khorfakkan-Jebel Ali- an export hub for global The Ministry of Road even 18,000 teu tonnage, to Mohammad Bin Qasim- markets. The consignment Transport and Highways take on the top players. Nhava Sheva-Mundra- will take eight weeks to has acquired ISO 9001:2008 Jeddah-Port Said East-La reach Mexico. The com- certificate for monitoring, Water transit fee Spezia-Livorno-Genoa-La pany plans to export 20,000 planning, development and to be charged Spezia-Fos-Barcelona- vehicles this year, compared maintenance of highway Valencia-Algeciras-(USEC)- to just 1,000 vehicles last infrastructure and road The Commerce Minister of Algeciras-Valencia- year, and this number will transport throughout the Bangladesh, Tofail Ahmed, Barcelona-Livorno- further increase to approxi- country. The certificate has said that his country Genoa-Marsaxlokk-Port mately 50,000 vehicles in will be applicable to all the and India, Nepal and Said- Jeddah-Khorfakkan. 2016.

14 maritime gateway / november 2015 Coastal freight mercial feasibility. IWAI The new AME itinerary Cargo support for will deploy two barges will be as follows: Xia- Indian ships rates drop with a capacity of around men, Xingang, Qingdao, India's cabinet will soon 30 small cars for the test Ningbo, Shanghai and Da make it mandatory for sessions. The cars will be Chan Bay, China: Port state-owned oil, steel, brought by road to Varanasi Klang, Malaysia; Cochin, coal and fertiliser import- and shipped to Kolkata. JNPT and Mundra, India; ers to route at least half However, full-fledged com- Haifa and Ashdod, Israel; of their cargoes through mercial operations can only Alexandria, Egypt; Mer- local shippers as part of a begin once the IWAI con- sin, Turkey; and returning broader agenda to protect structs multimodal termi- to Xiamen. the ailing sector. It is being nals with permanent Ro-Ro proposed that importers facilities. IWAI barges are Rewards at sign 5-year contracts with not designed to carry au- Freight rates for shipping ports linked to local shipping firms and tomobiles and customised containers along the nation’s help boost fleet compa- vessels with a higher carry- productivity coast are expected to drop nies like Shipping Corp of ing capacity will be required The Union Cabinet has 12-15 per cent as the Central India, Mercator Ltd, Great for commercial viability. given its approval for government has decided to Eastern Shipping Company extending the existing exempt domestic cargo on and Essar Shipping. A key Productivity Linked Re- Indian flagged ships along part of the new proposal ward (PLR) scheme for the coast from Customs and Zim upgrades is to link the freight rates port and dock employees excise duty. The Centre has charged under the contracts Asia- from the year 2014-15 to also decided to extend the to global benchmarks such 2015-16. The payment period of such exemption Mediterranean as Clarksons and World of PLR would be made offered only to export- Scale in order to bring loops after adjusting the ad-hoc greater transparency to rate import and empty containers amount already paid for setting and avoid local ship- along the coast. the year 2014-15. The pers setting up cartels. Freight rates are already expenditure of PLR shall down 30 per cent as the be met by the major port Huge dredging government had removed trusts and dock labour duty on bunkers for export- boards from their own opportunities import cargo along the resources without any Indian coast last year. Now, budgetary support from even for pure domestic the government. container movement, there will be a drop in freight India: attractive rates. investment Zim Integrated Shipping destination Services is upgrading Massive dredging works on Maruti to use India has been ranked its Asia-Mediterranean an unprecedented scale is as the most attractive inland waterways service network compris- on the cards as the govern- investment destination ing the East Med-Black Sea ment proceeds with the in the world for the next Express, or EMX, and the Sagarmala project. The pro- three years, according to Asia-India Subcontinent posed integration of coastal a survey by EY released East Med, or AME, by and inland waterways for recently. 32 per cent adding new port calls and movement of cargo along of the business leaders upsizing tonnage deploy- India's sea and river ports from global corporations ment. will open up huge op- polled for the survey said portunities for dredging. The revised EMX rotation India is the most attrac- The government is keen to will be as follows: Busan, tive investment destina- include private and foreign Maruti Suzuki is planning South Korea; Shanghai, tion, followed by China, partners for the project, for to transport cars produced Ningbo and Da Chan Bay, Southeast Asia and which annual expenditure at its plants in Gurgaon China; Ashdod and Haifa, Brazil. Among India's for the first phase for the and Manesar to Kolkata Israel; Istanbul, Turkey; most attractive features year ending March 2016 is through rivers. Currently Novorossiysk, Russia; for doing business, its estimated to be close to `7 these cars are transported Odessa, Ukraine; Istanbul; vast domestic market billion. The objective is to by road. The project will be Haifa; JNPT, India; Port and availability of labour provide a draft of 3 m for carried out on a pilot basis Klang, Malaysia; Da Chan have been rated as most all 101 waterways by 2020. to gauge its long-term com- Bay and back to Busan. appealing.

november 2015 / maritime gateway 15 NEWS

is part of 319 packages Port to cater to the needs of Mangalore Port’s weighing 840 tonnes trans- iron ore, fertilizer and ancil- PORTS focus on Cashew ported to CPCL facility on lary industrial units around a joint two bedded trailer. the port. MRPL has inked New Mangalore Port Trust an MoU with the port trust Haldia Dock faces has asked the cashew Longest ship in this regard. The study industry from Karnataka to uncertainty will check the possibility of make use of the facilities at The Singapore flagged a fixed landbased LNG ter- the port. Cashew container M V Maersk Serangoon with minal or a floating receipt traffic at the port increased a length of 319 metres and on high seas off the port. from 8,006 teu in 2013-14 capacity of 5,228 teu is the The terminal will bring to 13,258 teu in 2014- longest ever vessel to call at cleaner energy fuel option 15. The port gets feeder DP World Chennai. to the entire region and can container vessels every four replace naphtha used as an days, which will help move Cochin Port pins expensive feedstock. the cargo faster. hope on upcoming New Chairman at projects JNPT ICD Auditors have identified Mormugao Port pendency drops Cochin Port Trust is pin- financial mismanagement The ICD pendency had I Jeyaku- ning hopes on upcoming in the company that has reached 12,000 in Au- mar, an projects to increase cargo been roped in via the tender gust resulting in a major IRTS throughput and revenue. route for onshore opera- backlog of import contain- officer of Completion of the Inte- tions of berths 2 and 8 at ers for clearance. Various 1997 batch, grated Refinery Expansion Haldia Dock. The state- measures like increase in took over as Project of BPCL-KR will ment of accounts of EC average number of rakes Chairman of Mormugao attract additional 8 million Bose & Co have a number from 12-13 to 17, placement Port Trust. Earlier he was tonne of cargo, thereby of discrepancies and in of dedicated 5-6 rakes for Deputy Chairman at Chen- fetching revenue of `70 many cases not compliant Tughlakabad ICD were nai Port Trust and Kolkata crore. The new 4.5-million with the provisions of the implemented. The team Port Trust. He was also tonnes capacity multi-utility New Companies Act. The also coordinated for the holding Additional charge liquid terminal at Puthu- company has been a service proper and timely place- of Chairman-cum-Man- vypeen by IOC and the tax defaulter for the last sev- ment of the rakes for faster aging Director of Central commissioning of cement eral years and has income turnaround. As a result of Inland Water Transport handling/bagging facili- tax liabilities. these measures, the port Corporation of India Ltd, ties by Malabar Cements, cleared up much of the The balance sheet as on and Hooghly Dock & Port Zuari etc and the project container backlog and the March 2014 shows a Engineers Ltd. He also of HPCL are expected to pendency dropped to 5,479 combined share holding of served as Director (POL) in generate both cargo traffic teus in September. 2,271 shares between the Ministry of Railways. and revenue. two directors, P S Bose and The ICD team strived to D S Bose, whereas in the Chennai Port further reduce the pendency annual return as on Septem- and reach a level of average ber 2014, the holding has handles largest LNG terminal at pendency of 3000-4000 teus been shown at 2,219 shares. cargo Mangalore Port per day. The overall Port pendency currently is 3,425 teus for all the three termi- Revenue nals put together, which is collection centre an acceptable level under normal ICD operations at in Gandhidham the port. Kandla Port Trust (KPT) On October 13, JNPCT has started a revenue collec- also handled Tughlakabad tion centre at the AO Build- Chennai Port rewrote its bound rake in 50 minutes ing, Gandhidham for the history on September 28, which equalled the record benefit of port users, who when the port handled two set at JNPCT itself last will now be able to deposit packages of 45 m long proj- month. Handling of TKD the Port charges here in ad- ect cargo successfully from Mangalore Refinery and rake in fastest possible time dition to Kandla. The port the vessel MV Rickmers New Petrochemicals, MRPL, is crucial in reduction of further plans to improve Orleans, reached here from will conduct feasibility stud- the pendency, as it handles services to enable users pay Port of Houston, USA. The ies for setting up a LNG around 40-45 per cent of charges online. cargo “Coke Bridge Crane” terminal at New Mangalore cargo.

16 maritime gateway / november 2015

NEWS

to release cargo and return technology, steel and containers to shipping hotels/tourism. India Indo-Iran relations EXIM liners in timely manner. is eyeing investments in Shipping Corporation of The charges have exceeded Iranian Ports. India plans India has revealed that Import duty on `125.93 million per day. to invest almost `2 lakh following the lifting of wheat 900 containers are ready crore at Chabahar Port sanctions on Iran, Irano to be dispatched via road, in various infrastructure Hind Shipping Company 1,123 containers via rail projects. could be revived. It is a joint and about 150,000 tonnes venture between SCI and of bulk cargo of MS billet, Iran Shipping Lines, and coal and chemical fertilisers Sugar export was partly dissolved due to in 7,500 containers continue quota fixed the sanctions on Iran. to be stranded. Likewise, importers also need to pay On a separate note, Nitin $80 to $120 every day to the Gadkari announced an shipping liners. investment of `2 lakh crore at Chabahar SEZ in various infrastructure projects. The Sinotruk enters investments will depend on India the outcome of the negotia- The Centre may raise tions on gas price as Iran import duty on wheat to 25 has offered to supply natu- per cent from the current 10 ral gas at $2.95 while India per cent to restrict overseas wants rates to be low. purchases when domestic stocks are surplus. The government in September Telangana to imposed a 10 per cent im- Government has fixed an increase exports port duty on wheat for the export quota of 10,000 first time since 2006 after tonnes of white sugar to private flour millers started Chinese truck maker the EU and 8,424 tonnes of importing from Australia Sinotruk has joined hands raw sugar to the US under amid sluggish supply of with Hyderabad firm Over- the existing CXL and TRQ high protein wheat variet- land Trucking Pvt Ltd. for provisions, for this year. ies used to make pasta and its India foray, a journey The concessions for sugar pizzas. that also envisages setting exports would be subject up of an assembly plant to the presentation of a Already, 5,00,000 tonnes of next year. Overland Truck- certificate of origin issued premium Australian wheat ing is weighing options pri- by the competent authority. The TRS government has has landed in the country. marily between Telangana More imports are likely to unveiled a new export and Maharashtra for the strategy, which aims to take place as private firms plant. It is also looking at India and South are keen to purchase even achieve `1,50,000 crore Tamil Nadu for the facility exports by 2019-20 from paying 10 per cent import that is expected to entail an Korea become duty taking advantage of the estimated present investment of `100 crore to AEO share of around `1,00,000 fall in global prices. `150 crore. The final deci- India and South Korea crore. Setting up of large sion will depend on what have inked an Authorised projects such as pharma the governments offer by Detention charges Economic Operator Mutual city, medical devices park, way of incentives. Twenty Recognition Agreement automobile, textile, plastic, costing importers acres would be required for (AEO-MRA). Indian AEO spices and seed parks the plant. exporters who enter Korea etc., as well as framing of will be given extensive bene- conducive policies are part Iran accords fits in terms of speedy clear- of the strategy. The state ance lesser examination and government aims to create priority to India checks. Similarly, a business an ecosystem in which Iran has accorded India which is recognised by the the ease of doing business priority status for trade Korean customs adminis- matches and even exceeds and investment. Iran wants tration as being compliant the best global standards. Nepali importers have been to collaborate with India, will be extended benefits in Every exporter will be made compelled to pay unimagi- China and Turkey in seven India. It will boost bilateral fully acquainted with the nable detention charges sectors including mining, trade and strengthen and global export market trends levied by the shipping liners petrochemicals, food, maintain security of inter- and policies of the various and Kolkata Port for failing agroprocessing, information national supply chains. trade partners.

18 maritime gateway / november 2015 Aegis Logistics capital spending for the Workforce Preferential tariff year to March 31 to its core for SAARC gets more land fields, including the largest, demand in India is ready to give pref- Mangala, in . logistics erential duty concessions on all products to SAARC Kaladan project members to give a boost to free trade in the region, moves forward announced Union Minister The Union Cabinet has Nirmala Sitharaman. At approved the Revised Cost present, India gives zero- Estimate of `2,904.04 crore duty access for least devel- for the Kaladan Multimodal According to a report by oped countries of SAARC Transit Transport Project for 100 per cent of tariff National Skill Development Aegis Logistics received in Myanmar. It connects lines, except for alcohol and Corporation India will need additional 15 acre land at Sittwe Port in Myanmar to tobacco. around 28.4 million work- Kandla Port to build storage the India-Myanmar border ers by 2020 in its booming For non-LDCs also, India terminal. This is in addition and benefits the north- transportation, logistics, has allowed preferential to existing 5 acres of land eastern states of India, by warehousing and packag- opening up the sea route for trade access for 90 per cent already allotted in April ing sector. This sector will the products. It also reduces to the total tariff lines. India 2015. The land is offered on have one of the highest pressure on the Siliguri is willing to go to 100 per lease for 30 years by Kandla incremental human re- corridor. cent level in terms of the Port Trust. Kandla Port source requirement of 11.7 SAFTA (South Asia Free Terminal is an important million from 2013-2022. Trade Agreement). The re- part of the company's Container yard Key growth drivers are the gional trade among SAARC strategy to build a necklace near Nanjangud logistics activities, which members is well below the of terminals around India's are currently outsourced potential even as the mem- coastline which will enable and are growing rapidly at bers signed the SAFTA pact it to offer comprehensive a rate of 52 per cent. The in 2004 and trade liberalisa- facilities at every gateway sector clearly sees poor tion started from 2006. into and out of India for a working conditions and low large number of cargoes to pay scales in comparison to its customers. other career options because LOGISTICS of poor or non-existent manpower policies. Sohan Lal raises More oil from equity funding Rajasthan AMTOI inks MoU Sohan Lal Commodity Concor will establish an with NMIS Management has raised inland container yard at `100 crore in the fourth Kadakola near Nanjangud Association of Multimodal round of private equity which will give a boost Transport Operators of funding led by Creation to exports from Mysore India (AMTOI) and Narot- Investments Capital and help local industries tam Morarjee Institute of Management, and exist- in moving freight to ports, Shipping (NMIS), have ing investor Everstone saving on cost and time. come together to pro- Capital. The company Fifteen acres of land has vide skill development plans to utilise funds for its Ltd is target- been allocated for the project for the shipping industry. NBFC, Kissandhan eyeing ing an 18 per cent increase and the work for laying The MOU will develop a three-fold growth in loans in output from its wells in railway track will commence skill based academic and disbursement by the end of Rajasthan in January as it soon. Initial cost of the educational cooperation as- this fiscal and its expansion revives older fields in its project is pegged at `15 sociated with shipping and to global markets. SCLM largest producing block. crore and the facilities will logistics related functions Group’s agri-financing arm, The company’s crude equiv- be upgraded depending on of multimodal transport Kissandhan, has already alent output from the region the usage. About two rakes operators and to promote achieved a total disburse- may climb to an average of freight traffic is being mutual understanding and ment figure of about `250 200,000 barrels a day by generated from the region growth of the two organisa- crore in just 15 months of January from about 170,000 every week. The depot tions. This programme will existence. The Group has barrels a day now as the will function as a single be based on the concept of plans to expand the ware- enhanced recovery project window agency providing an Open University and will house management network yields results. The company custom clearance and other facilitate capacity building, from current 760 to 1,500 has allocated 45 per cent formalities that are normally job retention, growth of warehouses pan-India. of its $500 million planned undertaken at the port. employees at workplace.

november 2015 / maritime gateway 19 NEWS

reach 70 per cent of its such as Nigeria and China. taxes and lower transac- Snapdeal invests customers in South India While Nigeria, one of the tion costs to help deal with in Gojavas in a single day. Flipkart is large buyers of the Indian the crisis of continuously looking to invest `2,000- cereal, has stopped official falling exports. In a meeting 2,500 crore in the next imports for about a year with commerce secretary 4-5 years to strengthen its now due to their domestic Rita Teotia, the exporters supply chain. crisis and currency-related stressed on early refund of issues, China – a potential the duty drawback amounts, large market – is yet to open credit of interest subven- up its borders for the non- tion, increase in the incen- India’s basmati rice. tives under the existing Snapdeal has invested $20 comeptitiveness schemes and agreements million in logistics firm Go- rises Cuddalore Port with specific countries to Javas to further enhance its planned promote exports of certain India has climbed a spec- items. supply chain and logistics. tacular 16 places to the GoJavas will use the funds 55th position among 140 Govt imports to add 100 more cities to its economies in this year’s repertoire in the next 6-12 World Economic Forum pulses months. GoJavas has been Global Competitiveness Government will import an- one of the ‘best performing’ Index, ending five years of other 2,000 tonnes of pulses last mile logistics partners, decline. The list was topped as part of its efforts to bring reducing Snapdeal’s deliv- down prices. Tenders will by Switzerland, followed by The Ministry of Shipping ery time by 24 hours in the be announced soon for the Singapore, the US, Ger- has identified Cuddalore last six months. Snapdeal same. This will be in addi- many and the Netherlands. Port as a dedicated Minor has invested $100 million in tion to 5,000 tonne lying at Among the larger emerg- Port in Tamil Nadu for pro- the last six months to im- the ports and another 2,000 ing markets, South Africa viding monetary incentives, prove delivery timelines by tonne of pulses that are in progressed seven places to with a view to encourage 70 per cent, while looking transit. The government is 49th place, while China coastal transport for cargo. to invest another $200 mil- trying to ease the prices of held steady at 28, Indone- Proposals have been sent to lion in the next 12 months pulses but globally there is sia was 37th (down three) the ministry for installing to strengthen its supply limited stock available and and Brazil was 75th. Modi buoys at Pamban Channel, chain. prices are also high. The government’s initiatives development of Kanyaku- Price Stabilisation Fund like ease of doing business, mari Port and for develop- is expected to encourage Largest make in India and port- ment of roads leading to states to lift pulses stocks warehouse in based development through non-major ports. Sagarmala are said to be the from ports. Besides imports, Telangana key factors that have rein- the government has taken forced business confidence GAIL imports several measures: It has in India. imposed restrictions on largest LNG cargo holding of pulses stocks GAIL India Ltd has beyond a ceiling and taken Rice exporters imported the largest LNG action against hoarders and shipment at Dabhol to blackmarketeers. target Nigeria and restart the terminal after it China was shut in May for mon- soon rains. The 154,000 Indo-China trade Flipkart has chosen Telan- cubic metres of LNG was grows gana over Karnataka to set purchased from BG Group up its largest and 16th ware- and two more spot cargoes Indo-China trade has the house in the country. The are expected to arrive at potential to touch $80 billion fulfillment centre will be in Dabhol this month. in 2015 from $70 billion in Hyderabad, spread over 2.2 2014. China's exports to lakh sq ft and is expected India increased by 9.8 per to ship out 1.2 lakh items Export bodies cent in the January-July every day once it becomes With a sluggish trend in seek higher 2015 period. China has fully operational. It will non-basmati rice shipments become India's largest trade have fully automated seg- amidst stiff competition incentives partner and India is China's regators, profilers to keep a from Thailand and Viet- Export organisations have seventh largest export tight check on quality, and nam, exporters are now asked the government destination. India mainly automated conveyor belts looking for government for higher export incen- imports chemicals, agri for sorting inventory. The intervention in facilitat- tives, cheaper credit, faster products, metals, electronics, facility will help Flipkart to ing access to large buyers reimbursements of input tiles, furnitures from China.

20 maritime gateway / november 2015 acres of land at Tuna’s from the Rural Infrastruc- ports, with all meat exports Tuticorin Port inter-tidal region which is ture Debt Fund managed strictly regulated by the gov- goes digital quite a chunk. But there by NABARD and was told ernment. The checks will are technical challenges, that funds will be released particularly focus on Mum- Tuticorin CFS Association which are being examined with priority. This will help bai, which is the main point (TCFSA) and Kale Logis- by the consultant. CSL is in in strengthening the logis- of exit for meat exports. tics have signed an MoU to technology partnership with tics sector in the state. deliver India’s first Con- Samsung Heavy Industries tainer Digital Exchange for building LNG carriers (CODEX), which will Textile exports Onion imports and aims to bag orders to automate the container from Egypt build carriers in India. not encouraging movement at Tuticorin Port and reduce the container dwell times considerably. It India and Germany will be a digital community platform to enable effec- boost trade tive management of cargo German Chancellor Angela information & documen- Merkel and Prime Minister tation flows such that it Narendra Modi recently eliminates/reduces manual held talks on stepping Egypt has exported 18,000 paperwork considerably. It up bilateral cooperation tonnes of onions to India will electronically connect for ramping up trade in just two months as onion CFS/ICDs, transporters, and investment during prices continue to surge Cotton Textiles Export Pro- port authority, Customs, the global slowdown. following heavy unseason- motion Council (Texprocil) port terminal operators Bilateral engagement will able rains in India’s onion has revealed that export producing states. During and security forces (Central be deepened in diverse trend in textiles is not very August and September Industrial Security Force- sectors like defence, security, encouraging and has sought 18,000 tonnes of onions CISF). education and renewable the government's support to were imported. This is the energy. The overall exchange CODEX is an EDI-based boost it. Exports of cotton first time India, which also of goods and services electronic platform through textiles during April-August imports oranges, has im- between the two countries which communication, 2015 declined by 2.16 per ported such high quantities was valued at around €15.96 information exchange, cent at $4.24 billion as of onions from Egypt. India billion in 2014, a drop of connectivity and electronic compared to same period of is Egypt’s seventh largest €1.14 billion from the level processing of key business the last year. The declin- trading partner and second of €16.10 billion registered transactions/operations ing trend may continue largest market for exports. can be facilitated between in 2013. in FY16 due to subdued all container stakeholders demand from China and Mumbai- at the port and its related NABARD invests sluggish European econo- Ahmedabad logistics value chain. in warehousing my. Over-dependence on China especially for cotton expressway soon and cotton yarn exports, A superfast highway Shipbuilding is magnifying the overall connecting Mumbai to facility at Kandla decline in exports as China Ahmedabad, on the lines Port slows down. The high cost of the Mumbai-Pune of export finance which is Expressway, will be built around 10 per cent in India soon. The Ahmedabad- compared with 3-4 per cent Baroda Expressway will in competing countries like be ready soon. With the Vietnam, Bangladesh and proposed Baroda-Mumbai Pakistan is also having an Expressway, citizens will impact. NABARD will invest `342 get a direct high-speed cor- crore in Andhra Pradesh to ridor to travel to Ahmed- create warehousing capac- Illegal beef abad by road. The project ity to store 6 lakh metric is expected to start in six Cochin Shipyard Limited tonnes of food items. The exports months and will particu- (CSL) is awaiting the out- capacity will be created in The government has an- larly benefit the movement come of a techno-economic all the 13 districts of the nounced plans to set up of goods between the states. feasibility study to gauge state to improve the food laboratories at ports to test The project will be 379 km if it is viable to set up a storage capabilities. Chief for illegal cow meat exports. long for six-laning of the shipbuilding and repair Minister N Chandrababu The laboratories would add highway, and a part of the facility at Tuna at Kandla Naidu has also sought more an extra level of checks for larger Golden Quadrilateral Port. Kandla Port has 310 funds for rural road works illegal beef passing through project.

november 2015 / maritime gateway 21 NEWS

full duty-free access of 108 the next five years, a World Dhaka and Chittagong, H igher access products to the Himalayan Bank study found. Trade the second largest city and to handicrafts nation. Of the 50 products, will soar from the current main seaport. The project Nepal agreed to reduce duty $28 billion to $100 billion exports will also connect Chit- by 3.0 per cent for products in 2020 if operational The Export Promotion tagong to the neighbouring having import-duty more connectivity is established, Council for Handicrafts countries of Bhutan, Nepal than 15 per cent. For prod- (EPCH) and Port Trade a fully functional South and the northeastern states ucts having import duty less Centre, Uruguay have en- Asia Free Trade Agreement of India. than 15 per cent, it agreed tered into an agreement to ensured, non-tariff barriers to reduce duty by 5.0 per provide Indian handicrafts tackled and intra-regional at Baddi cent. Bangladesh mainly exporters higher access to investment encouraged. exports woven garments, Latin American markets. More than 50 per cent of knitwear, agri-products, Opportunities will be cre- Bangladesh's imports are footwear, raw jute, and jute ated for Indian handicrafts from Pakistan and Nepal goods to Nepal. exporters by establishing a and are listed as sensitive, permanent Indian bonded while over 45 per cent of fair for exhibiting Indian H ighest cargo Nepal's imports from India handicrafts products. The and Sri Lanka are sensitive. exports of Indian handi- traffic at Paradip crafts to Latin America stood at $60.40 million in Baddi in Himachal Pradesh Challenges at 2014-15. The council is also got the state’s first dry port Visakhapatnam planning to set up a ware- with the inauguration of an housing facility at Monte- ICD set up by Concor. SL Port video, Uruguay. This will Thakur, Principal Com- help in facilitating export missioner, Central Excise, of handicrafts in the region flagged off a by developing the concept truck carrying industrial cargo to the Pipavav Port. of availability of ready Paradip Port has handled its Set up at a cost of 73 stock and encouraging spot ` highest traffic of 36.06 MT crore, the ICD has come orders. in first six months of this as a relief to investors. The fiscal, up from 34.35 MT services of the local truck Bangladesh to of cargo handled during union have been roped in the same period of previ- The two berths set to com- improve rail to transport the goods from ous year. This is an increase mence operations shortly BBN to Ludhiana and network of 5 per cent and the port at Visakhapatnam Port Dappar. It will provide cost- has maintained its second Trust include EQ-10 for effective and reliable logistic position among the major liquid cargo and WQ-6 for services to the Baddi- ports in the country. During handling dry bulk cargo. Barotiwala-Nalagarh hub. the April-September period, However, EQ-1A for ther- It is equipped with modern thermal coal traffic in the mal coal and EQ-7 berth for infrastructure and handling port has increased by 8.718 fertilizer cargo is likely to be equipment with fully com- per cent due to handling delayed beyond the original puterised system. It is also 14.83 MT against 13.64 MT schedule due to some finan- The Government of Ban- linked to other depots of during the corresponding cial issues. gladesh has received a loan Concor through the V-Sat period of previous year. of $135 million from the connectivity thus provid- EQ-1A, being constructed POL traffic also saw a European Investment Bank ing easier transportation of by SEW Coal Terminal growth of 6.40 per cent by (EIB) to improve the coun- cargo to various ports and Private Limited, is expected handling 9.52 MT against try's railway network. The destinations. to be commissioned only by 8.94 MT handled during the loan will be used to fund September 2016. The proj- same period last year. the construction of a sec- Duty-free access ect, taken up at a cost of ond track, upgrades to the `313.39 crore with a capac- existing track, and the in- to Nepal Removal of ity to handle around 7.36 stallation of modern signal- Bangladesh is preparing barriers to boost million tonnes, was initially ling equipment on the 72-m a fresh list of products set to be commissioned by section between Laksam seeking duty-free access to trade October 2014. Delays also and Akhaura in eastern cen- Nepal. Kathmandu has so The removal of tariff and plague the fully mechanised tral Bangladesh. By 2020, far agreed to offer nomi- non-tariff barriers and better fertilizer handling berth, the government aims to nal preferential access to connectivity will boost intra- EQ-7, which is being put up upgrade the complete 321- 50 Bangladeshi products regional trade in South Asia by Vizag Agriport Limited km rail corridor between against Dhaka's granting of more than 3.5 times over at a cost of `310 crore.

22 maritime gateway / november 2015 mg poll

Sagarmala popular, but sceptical about waterways Maritime Gateway has started a new feature “MG Poll” under the purview of our research division “Gateway Research” to disseminate the views of maritime professionals on most sought after projects initiated by the Indian government to expedite the growth of maritime business and trade. by Rakesh Oruganti

e reached out to the industry expressed ambiguities about the to know their views on outcome of this project and twenty W“Sagarmala Project” How well you understand three percent respondents are not and “Construction of 101 Inland Sagarmala project? sure about whether the project would Waterways”, the major initiatives materialize in future. taken by the Indian government to Usually, waiting time at ports in augment the maritime sector. We 33% India is significant and it hampers the are gratified with the overwhelming 57% efficiency of vessel operations. It is responses received and thankful to the 10% estimated that coastal vessels in India industry for taking their valuable time spend about seventy per cent of time out to participate and respond to our in ports and only thirty per cent in online poll. actual voyage, which makes coastal Fifty seven per cent of the Very well Very little No clue shipping less competitive. Thus, participants responded positively majority of the people are looking when asked how well versed are Will low-cost non-major ports under forward to the changes. they about the ‘Sagarmala Project’, Sagarmala boost coastal shipping? Converting 101 river stretches as it is the flagship project of the into national waterways will provide government to increase the shipping 23% the best inter-modal (rail, road industry’s contribution in Indian 33% and waterways) connectivity by economy. Thirty three per cent of reducing the dependency on road the respondents expressed very little 43% and rail as well as logistics costs and knowledge about the project. On create numerous opportunities for the flipside, a mere ten per cent of economic development. However, the respondents are not aware of the we received a mixed response Yes No May be project. Hence, majority of the people when asked about the feasibility of are aware of the initiative. developing 101 inland waterways in Is it feasible and realistic to One of the major components of develop 101 in-land water ways ? India. Thirty three per cent of the the Sagarmala Project is setting up of respondents expressed positivity, non-major ports by the government while thirty seven per cent were not which is expected to reduce the 30% 37% sure about the outcome due to the waiting time of vessels and to promote meager progress of waterways in the the coastal shipping. Forty three per recent past. Thirty per cent of the 33% cent responded optimistically when respondents think it is not feasible asked if low-cost non-major ports in the backdrop of the existing under Sagarmala will boost coastal regulatory, financial and other shipping, while thirty three percent Yes No May be deterrents.

november 2015 / maritime gateway 23 c over story port infrastructure sagarmala

NOMaj MOREor Ports DRIFTING The promise of a spur in manufacturing activity in India has led the government to reconsider the role of the major ports as enhancers of export-import trade. The recent improvement in their performance has led the government to reform the major ports. by Deepika Amirapu

24 maritime gateway / november 2015 The twelve major ports in the country set up under the Major Ports Trust Act have for long been perceived differently by India. For those administrators running the port, they are massive pieces of infrastructure handed down by the British, for its employees – an indispensable inheritance of gain, for the Centre- hapless public sector units and the larger business community views the ports as a well endowed system that does little to do well given their strengths and drawbacks.

his caused a lot of cargo to go led the consulting firm to suggest adrift from the state-sponsored a slew of measures to the ports ports to the newbies on the to improve their key parameters. block. And so, the string of new According to the Ministry, the Tports established by private players in Boston Consulting Group (BCG) the early 2000s gladly cruised ahead of has been engaged to carrying out a their older peers soliciting more cargo, benchmarking study for major ports. capital and market share because of The consulting firm has suggested their aggressive approach. For a long various initiatives for transforming time, the major ports relied on their major ports to drive sustainable profit goodwill to attract more customers, improvements. BCG was assisted but the wily customer was looking by the Indian Ports Association and for more. Better facilities, he argued. Ministry in bringing out this report. Faster turnaround time and hassle-free The firm has suggested changes in evacuation, he demanded. And when two key areas, namely operations and the shipping lines and traders saw their management. “BCG has drawn up a demands were met by the non-major port-wise plan to help them reduce ports, they happily switched loyalties their costs and increase their volumes, forsaking the Big Boys for sparkling The report has indicated the nature new set ups that promised many of commodities to be handled at each benefits. port to increase its market share also Volumes handled at major ports indicating some cost cutting measures dropped and so did their revenues. every port will have to adopt to Non-major ports started to show improve its margins,” Kulkarni adds impressive numbers handling a sizable About 100 odd projects will be taken amount of both container and bulk by the ports in the next three to four cargo. This spillage of cargo had years that will help them increase the to be stemmed and a major course collective cargo handled by 115 million correction was required for the 12 tons. The capital investment for these ports. Sensing the need for a multi- projects will be borne by the ports pronged approach, the Ministry of themselves as these initiatives do not Shipping engaged Boston Consulting allow a great outlay of money. Group to study the state of the ports It has suggested cuts in various and suggest initiatives to improve operations and maintenance expenses their performance. Atul C Kulkarni, such as salaries, security aspects and Advisor, Ministry of Shipping, says, office and administration expenses. “It was a conscious decision taken to “We have recommended that guards at help turn around the 12 ports,” he says jetties be replaced with CCTV cameras when quizzed about the timing of this as the security personnel are appointed initiative. Interestingly, only to stand there all day observing Mr Kulkarni points out that some the loading and unloading of cargo. of the government run ports have We have now relegated this job to surprised themselves by clocking the CCTVs,” Kulkarni says citing in greater volumes of cargo and how technology can help substitute impressive margins since 2014 that a number of manual procedures. has enthused the Centre to invest in About four ports have already begun the ports. After exhibiting a decline implementing the suggestions by the in profits for six years, the ports have committee and have seen a drastic suddenly begun to do well, he says. fall in expenses over the last couple This uptick and show of promise of months. To improve volumes, the

november 2015 / maritime gateway 25 c over story port infrastructure sagarmala

ports had to check factors abetting their fall. It was noticed that there was an immoderate fall in the volumes BCG has identified six functional areas every port is of coal handled at the ports. There was a 38 per cent drop in the share of expected to venture in to: Project management, business coal volumes handled at major ports because their share in 2008 from 81 development, environment, health, IT, corporate per cent fell to a disappointing 45 per cent in 2014. To stem this leakage, the functions and legal aspects. Under these heads, ports were asked at once to improve their coal handling infrastructure and concession agreements shall be re-written, manpower mechanise the berths to welcome big crises will be resolved and various legal hurdles plaguing vessels and greater amount of cargo. “These exercises were conducted with the port’s growth shall be ironed out. the port administrators getting fully involved. The response from them has been exhilarating,” Kulkarni says. The three-tier system of monitoring is of additional land can be undertaken, port employees too, who have been to ensure the 100 projects suggested if required. The committee that was objecting to modernisation have now are implemented on time, helping asked to submit its report within six given full consent to the authorities the major ports bounce back to months also suggested changes or overhauling certain procedures because performing well. Other key initiatives improvements in connectivity to help they understand that if volume is lost suggested include-improvement in the evacuate cargo faster by improving to other ports, the entity’s survival is shift change process to minimise the railway rake monitoring to reduce under threat. productive loss, twin lifting to boost TRT, reduce ship change over time While the suggestions to improve crane productivity for containers and allow mechanisation of berths. every port’s efficiency do not really terminals, redesign operator incentive For cargo being transported by roads, raise an eyebrow, the suggested scheme, better yard side planning the committee suggests that the ports changes to its management functions and service based TT dispatching try reducing check point delay for are what will lead to a dramatic among other suggestions in shore container moving by road. change in the ports’ functioning. BCG side operations. The existing Iron The recommendations by BCG has identified six functional areas Ore Handling Plants (IHP) at ports and the IPA fall in line with the every port is expected to venture in may be used for export coal cargo, Prime Minister’s idea of port-led to for the first time. They are- project wherever possible and development development where ports gear up to management, business development, environment, health, information technology, corporate functions and S trONG performance in FY 15 legal aspects. Under these heads, Operating profits increased in 8 out of twelve ports concession agreements shall be re-written, manpower crises will be resolved and various legal hurdles Significant jump in Margins in FY15 Margin increase in 8 out of 12 ports plaguing the port’s growth shall be FY 14 FY 15 Operating Margin FY 14 FY 15 ironed out. “Since the ports do not have sufficient people to handle these Operating Profit 2,518 3,268 Mormugao -14% 14% functions, they will be adopting a (`Crs) lateral system of hiring experts in these Cochin -6% 5% fields. They will come aboard and be Operating part of the Chairman’s Secretariat, Margin 28% 33% Mumbai 14% 20% reporting to the Chairman directly (%) Chennai 1% 19% overseeing all the important functions,” Kulkarni says. These professionals Net Profit Kolkata 18% 22% 1,026 1,483 will draw up specific timelines for (`Crs) the projects, discuss solutions and Paradip 40% 40% train existing staff; also helping the Total Margin 9% 13% Kandla 25% 30% Chairman attract good talent in to the (%) sector. These sector experts are also Tuticorin 39% 51% responsible for ensuring every project is completed without cost of time New Mangalore 35% 36% overruns. The Chairman and his team, in J.N.P.T 55% 54% turn, will report to the Indian Ports Ennore 70% 68% Authority which will be overseen by the Ministry of Shipping. This Visakhapatnam 34% 29%

26 maritime gateway / november 2015 Development Company (SDC) to facilitate Foreign Direct Investment Key Takeaways from the BCG Report (FDI). While reviewing the progress • Set up new business capacity shore cranes. productivity norms for development team liquid bulk. made in taking this national initiative • Introduce navigational forward, Gadkari stated that a • Reconfigure cargo aids, automated • Reduction in Non- platform for central, state governments handling volumes of fertilizer rake loading working time and local authorities has been existing customers plant • Consolidation and established in order to work in tandem • Install quick release • Shift time change for improvement of spare under the established principles of systems on berths workers capacity. “cooperative federalism”, in order to achieve the objectives of the • Installation of higher • Institute berth Sagarmala Programme and ensure port-led development. NSAC approved handle increased manufacturing output different from other port development the approach and methodology of in the country. project as it is looking at "port-led the preparation of the NPP and the Sagarmala Apex Body Meeting development". "Till now the ministry identification of “Early Bird” projects. The Ministry called for an apex has never worked on connectivity The state governments have expressed body meeting of port chairmen and from ports to the hinterland and their full support in collaborating with chief ministers of maritime states to what's happening beyond ports. Under the central government in planning provide direction to the Sagarmala Sagarmala, this will all change," said and execution of this critical project. Project. The much touted Sagarmala Srivastava. Some of the development The committee also deliberated Project has finally gathered some projects that could be undertaken on emerging opportunities from steam with the Minister for Shipping in Sagarmala include port-led a benchmarking study which has and Road Transport, Nitin Gadkari industrialization and coastal tourism, been conducted for improving the convening a first meeting of the Development of Inland Waterways, operational efficiency of major ports. National Sagarmala Apex Committee enhancement of ship building, ship The potential benefits from the above (NSAC), in October. One of the key repair and ship recycling, development opportunities include freeing up of decisions mooted was to undertake a of logistics parks, setting up of approximately 100 MMT port capacity comprehensive and integrated planning offshore renewable energy projects from existing infrastructure, generating for Sagarmala, named the National with base ports for installations and `1000 crore additional operating Perspective Plan (NPP). This shall be modernization of the existing ports surplus and avoiding `1,100 crore of prepared soon and will be responsible and development of new ports. "This capital expenditure through improved to identify the potential geographical strategy incorporates both aspects of port efficiency. For achieving these regions to be called Coastal Economic port-led development and port-led 104 initiatives, a three year period Zones (CEZs). "We are planning to indirect development," adds Srivastava. has been earmarked. The Minister finalize the NPP by January 2016. The Central government plans for Environment and Forests Prakash While preparing the plan, synergy and to spend `70,000 crore on 12 major Javadekar has suggested that SDC integration with the planned Industrial projects under Sagarmala. The can start getting necessary clearances Corridors, Dedicated Freight Corridors, fund requirement for starting the for setting up of industries and allied National Highway Development implementation of projects in the facilities along the coast before the Programme, Industrial Clusters and initial phase of Sagarmala Project works are awarded. This suggestion SEZs would be ensured. Master Plans is projected at `692 crores for the has been accepted by the group of will be prepared for the identified CEZs FY 2015-16. Further requirement ministers from the Centre and states. leading to identification of projects and of funds will be finalized after ‘To reach a port we must sail, preparation of detailed project reports," completion of detailed master plan sometimes with the wind, and said Alok Srivastava, additional for Coastal Economic Zones for sometimes against it. But we must not secretary, Union shipping ministry. future years. These funds will be drift or lie at anchor,’ said American According to him, Sagarmala is used for implementation of projects Poet and Business Author Oliver by line ministries Wendell Holmes Sr This, broadly, in accordance seems to be the motive behind with approvals the Ministry investing in bettering by the Sagarmala the performance of major ports. Coordination and Given their legacy and location Steering Committee. disadvantages, some of the measures During the meeting, suggested by the firm might require Andhra Pradesh the port managements to swim against chief minister N the current in order to achieve good Chandrababu Naidu results lest they go adrift and fall by also suggested the way of their young, aggressive the setting up private peers. of Sagarmala (with inputs from Ritu Gupta)

november 2015 / maritime gateway 27 INFRASTRUCTURE TERMINALS jnpt

Finally, a milestone achieved! The Bharat Mumbai Container Terminal will more than double the capacity at JNPT with addition of an extra 4.8 million teu by Omer Ahmed Siddiqui

At the stone laying ceremony Narendra Modi emphasised on port-led development. He said, in any prosperous country it is the port sector that is vibrant and it is this sector along the expansive coastline that make the cities successful. “There is a need not just to strengthen, but expand, develop and modernise our port sector,” he said. Pointing at the need for complete end-to- end infrastructure development, Modi said, port-led development should include the best infrastructure with optimum road and rail connectivity to the ndia’s largest container port JNPT each will be constructed in each phase hinterland along with cold storage and is gearing up to more than double with minimal land acquisition – just warehousing facilities. To facilitate Iits capacity in the next two years 70 hectares of land will be reclaimed this, the government has also opened by adding another terminal. The from the sea for each of the berths. doors for 100 per cent FDI in railways, project is expected to be carried out The current overall container handling and entities from all over the world are in two phases at a cost of `7,900 capacity of JNPT is 4.5 million teu looking to invest. crore, for which the foundation stone which will more than double to 10 JNPT aspires to number among was recently laid by Prime Minister million units upon the addition of the top 15 ports in the world in Narendra Modi at Bharat Mumbai the terminal. The fourth terminal will the days to come and the projects Container Terminals Private Ltd have a quay length of 2,000 m, 24 initiated by the government such (BMCT). Also present at the occasion quay cranes and will add a container as mechanisation of major ports, were of Maharashtra, C handling capacity of 4.8 million teu setting up of SEZ, upgrading road Vidyasagar Rao; Chief Minister of (2.4 million teu in each phase). infrastructure and addition of Maharashtra, Devendra Fadnavis; The project is being executed by terminals will play a key role in this Union Minister for Road Transport, Bharat Mumbai Container Terminal, process. Currently the major port Highways and Shipping, Nitin a subsidiary of Port of Singapore, numbers at 31 in the global ranking. Gadkari; Anil Diggikar, Chairman, on a design, built, fund, operate and Tan Chong Meng, Group CEO JNPT and Tan Chong Meng, Group transfer basis for a concession period of PSA International said, “The CEO of PSA International. of 30 years, under which JNPT will Indian government has identified The first phase involves an get a 35.9 per cent share in revenues. sustainable economic growth as a key investment of `4,719 crore and `3,196 A consortium of Egis International pillar in the country’s ‘Vision 2022 crore will be spent in the second phase S.A, Egis India and HIPL has been and the development of BMCT, PSA’s that is expected to be completed by appointed as independent engineer for latest port project in India, will help the end of 2017. Two berths of 1 km the project. facilitate that.”

28 maritime gateway / november 2015

CARGO imports apples

inbound shipment of apple only through Nhava Sheva Port would affect the revenue of Chennai Port and upsetting the impact the large network of wholesale and retail traders. For a trader, the cost of importing apple cart apples from Nhava Sheva in Mumbai will be much higher compared to Though DGFT's restriction on in bound apples is to importing the fruit from the Chennai Port. According to Abdul Asif, support local apple trade, it triggered steep increase Managing Director of Rich Fruits in logistics costs Private Limited, a Bengaluru-based fruit importer, “Importing via Nhava by Itishree Samal Sheva costs us around `100,000 more compared to importing the same fruit he recent move by Director to the Agricultural and Processed via Chennai Port.” General of Foreign Trade Food Products Export Development “When you import via Nhava (DGFT), an office of the Authority (APEDA) data on import Sheva, the consignment goes directly T to the CFS designated by the shipping commerce ministry, restricting imports of fresh apples, India imported of apple to a single port on the about 1.75 lakh metric tonnes of lines due to space crunch in port, west coast, i.e. Nhava Sheva Port in fresh apples valued at `1,176 crore in whereas the imported consignment Mumbai, has kicked up a storm among 2013-14, which increased to 1.97 lakh gets cleared or is kept at the port when the traders across the country, mostly tonnes in 2014-15 fiscal and valued it reaches the Chennai Port,” he added among the traders on the east coast. at `1,388 crore. The major importing saying that it costs around `225,000 The recent notification issued destinations include US, China, Chile, to import via Nhava Sheva Port in by DGFT on September 14, 2015 New Zealand, Italy, Iran, France, Mumbai. doesn't explain any specific reason for Afghanistan, Belgium and Turkey, “We import about 60-100 imposing the restriction on ports other among others. containers every year. And this is than Nhava Sheva. However, the move Of the total apple imports, our third year into apple imports, we is being interpreted as to protect the Chennai Port is reportedly the largest had set higher targets. However, the domestic apple trade. apple import ports in India. It handles current scenario paints a different The move came at a time when the around 7,000-8,000 refrigerated picture until the government lifts the domestically produced apples meet containers (reefers) per annum, ban,” he added. only 40 per cent of India’s demand, equal or even higher compared to Logistics-wise, transporting while the rest of the country hugely the volume handled at Nhava Sheva. apple from Mumbai to Chennai or depends upon imports to meet its Despite Chennai Port leading the Bengaluru is highly expensive as it domestic requirements. According pack, the recent notification allowing requires specialised reefer trucks to

30 maritime gateway / november 2015 five days and will push retail prices. largest orchard grower in India has Apart from the traders, the move only around 100 acres. Most of the will also affect the end-customers apple varieties grown in India are as they have to pay double the price almost a century old, which makes it for the preferred variety of imported difficult to compete with the superior apples. It will mostly affect consumers imported stuff that has longer shelf mostly in south India and some life. Even Indian apple growers have parts of the eastern states. “In just a a higher cost of production compared month’s time, the price of domestic with their global counterparts. apples has zoomed. Last month, Additionally, the home-grown 30 kg apple was priced at `1,400, apples are no longer delivering similar whereas it has increased to more than returns, making the business unviable. `2,000 in a month’s time,” Sivakumar Quality of Himachal Pradesh's apples said. Currently, imported apples are has deteriorated over the years, partly available anywhere between `250 and due to the poor quality of subsidised `350 per kg in some places, whereas fertilizers and absence of new plants. the domestic variety costs around `80 Also, the government has failed to to 120 per kg. change the first generation orchards The recent move has already that are running on old trees and started showing its impact. “More are highly susceptible to disease. than 100 importers at Chennai Port For instance, the `2,500-crore apple are already affected by the ban and the industry in Himachal Pradesh, which trade has almost stopped at Chennai, accounts for more than 6 per cent leading whopping price rise of apples of the state's GDP, is facing stiff in the markets,” he said. challenge from better-quality and transport. It costs around `160,000 for What led to the rise of imports? competitively-priced imports. a reefer truck (`320,000 for a reefer At present India is the third-largest Though previous governments have container) to transport apple from producer of apples in the world. realised the importance to improve the Mumbai to Chennai and takes around However, its production is only limited quality of domestic apple produce, they 3-4 days. Whereas the transportation to a very few states including Jammu have failed to implement or lay out in a normal truck (non-reefer truck) & Kashmir, Himachal Pradesh and any concrete policy to help the apple from the Chennai Port costs around and the the domestic growers modernise their production. In `12,000 to anywhere in Chennai produce is only available for four the absence of a consistent policy and and around `40,000 to transport to to five months in a year, leading to infrastructure, dependence on imports Bengaluru, and takes less than 24 dependence on imports of apple has increased manyfold over the years hours, S Sivakumar, Proprietor, Om throughout the year. to meet the demand of the heavily Logistics, told Maritime Gateway. Compared to some leading apple consumed imported fruit in India. If traders are to import apple producing regions in the world, Conclusion consignments only via Nhava Sheva, an average Indian grower falls flat Considering the large number of they will have to transport the fruit in terms of scale. For instance, apple shipments India imports every in refrigerated containers trucks to Washington State, which is known year, the infrastructure at Nhava Sheva other parts of the country, as non-refer for producing high quality apples, has wouldn’t offer much help. “Mostly, containers will affect the quality. Also, been seeing an increase in production the peak apple importing period is importing via Nhava Sheva is time- of new varieties of apples and an from November to April. The port taking and a lengthy process as the average grower has about 20,000-plus congestion at Nhava Sheva is inevitable transportation takes around three to acres under production, whereas the once all the traders start importing from the port, which can range upto to 14,000 containers a year,” Sivakumar of Om Logistics said. APPLE IMPORTS IN INDIA Anticipating the bleak future, several associations of importers and traders of the fruit have expressed Key Import Destinations their concerns to state chambers. In the meanwhile, the Tamil Chamber US Iran of Commerce has urged Commerce 1.75 1.97 China France Minister Nirmala Seetharaman to lakh MT lakh MT allow import of apples through the Chile Afghanistan Chennai Port by issuing a fresh DGFT `1,176 `1,388 New Zealand Belgium notification, pointing out that it would crore crore otherwise involve huge rise in freight Italy Turkey charges to transport the containers to 2013-14 2014-15 southern states.

november 2015 / maritime gateway 31 region nepal Cargo stranded Cargo movement to the country has come to a standstill followed by political unrest and protests at major customs points in Nepal-Indo border. Thousands of Nepal-bound cargo laden trucks are stranded on the Indian side of the border for more than three weeks. by Mohammed Shareef MP

Freight Forwarder Association (NFFA), told Maritime Gateway that by October 15, 853 containers were ready to be dispatched via road and 1,123 containers via rail. There were about 150,000 tonnes of bulk cargo of MS billet, coal and chemical fertiser in 7,500 containers, which continue to be stranded and cargo has still been arriving at the Kolkata port. Likewise, 830 containers that needed to be sent to Kolkata were stuck at ICD Birgunj. Around 1100 trucks, waiting to enter Nepal, have been stranded at the border, the lines of laden trucks, waiting for customs clearance would stretch of 28 to 30 kilometers. “Situation in Nepal has gone from bad to worst. Life in Nepal has come to a grinding halt, factories are shut because of no raw material supply and people are going penniless as essential commodities price have gone up like anything. While export is zero, import, fter the deadly earthquake hit due to no raw material inflow like coal both third country and bilateral trade in April this year, landlocked from Kolkata Port. with India is miniscule percentage ANepal has once again been The trade sector has been affected compare to the normal time,” says plunged into a deep crisis, as cargo the most due to the obstruction in weary Sharma movement to the country has come to movement of vehicles from India to While Indian traders were also a standstill followed by political unrest Nepal. Nepal-bound cargo needs to be affected by the crisis, according Rajan and protests at major customs points evacuated within 10 and 20 days after Sharma, Indian freight forwarders are in Nepal-Indo border. Thousands of arrival of freight in Kolkata, ferried not affected as they have doubled the Nepal-bound cargo laden trucks are via road and rail, respectively. Due to logistics charges. “The truck logistics stranded on the Indian side of the obstruction in movement of vehicles, cost has been raised to double. For border for more than three weeks. importers have been compelled to example, in the normal time, from While the situation has brought the pay high detention charges to the port Kolkata to Nepal, per truck, it used to traders a giant hole in their pockets, and shipping liners. Transport logistic cost `80,000 and now it has gone up to the life of ordinary people throughout charges have gone upto double from `1,50,000,” says Rajan Sharma. Nepal has severely been affected owing Kolkata to Nepal boarder. Importers Apart from this, Nepali importers to the stoppage of cargo vehicles, and exporters have been hit hard due have been facing a huge loss as the carrying necessary commodities, to this. detention charge imposed by shipping including POL products, medicines Updating about the situation, liners and Kolkata port is increasing and foods. Factories have been shut Rajan Sharma, President, Nepal by the day. It has been reported that

32 maritime gateway / november 2015 detention charge being levied by the shipping liners and the port authority has exceeded `125 million a day as the Bilateral trade with India has also been hugely affected volume of freight stuck at port and the border points has been increasing. due to the unrest especially at Raxaul check point. Almost According to traders, on an average, a box costs `10,000 to `15,000 65 percent to 70 percent of Nepal’s import depended on on the account of detention charges to be paid to shipping liners. the bilateral trade between India and Nepal. According Rajan Sharma, the detention charge being borne by the importers can be minimised only through managing smooth movement As the situation in Nepal gets better hardly any space in the yard. It is been of goods from India to Nepal. things would fall into normalcy,” said a month, a rake carried Nepal bound Though the Indian government has Goutam Gupta. coal cargo from Haldia. Against daily raised security issues in sending goods On the import front Nepal gets a rake for fertilizers, so far only five to Nepal, none of the stakeholders at around 60,000 teus of containerized rake carried fertilizers to Nepal,” says the port has halted work – customs cargo at Kolkata port annually. SK Sharai, General Manager Traffic, house agents are declaring the This cargo comprises industrial raw Haldia Dock System. customs transit declaration of Nepal- materials, machineries, automobile Since there is no coal available to bound cargo, shipping liners have spare parts, electronic items, run the furnaces, factories have been been sending containers to Nepal, medicines, processed food items etc. shut for the last one month, according and truckers have been loading their On the export front, Nepal accounts to reports from Nepal. vehicles to ferry goods to Nepal. only for a miniscule percentage of Bilateral trade with India has As many as 351 containers cargo, this would come only around also been hugely affected due to have been booked with Container 500 boxes a year and with mostly the unrest especially at Raxaul Corporation of India, which ferries textile products, carpet, handicrafts etc. check point. Almost 65 percent freight to Nepal via rail. Nepal Nepal imports around six lakh to 70 percent of Nepal’s import government has been repeatedly tonnes of bulk cargo, predominantly depended on the bilateral trade saying that they have fully arranged coal and fertilizers. While they import between India and Nepal. The life the security to escort transporters on 5 lakh tonnes of coal, meant for ordinary people throughout Nepal highways, and none of the transporters cement factories and one lakh tonnes have severely been affected owing have complained about security of fertilizers meant for farming. to stoppage of cargo vehicles borne problem in Nepal. According to officials from Haldia with necessary commodities like food Meanwhile Indian officials are Dock Complex of KoPT, where grains, vegetables, POL products and hopeful about the situation getting Nepal gets its imported bulk cargo, medicines. better in Nepal so that smooth cargo evacuation is almost nil for the last one Updating about the situation, movement from India could take place. month due to the crisis in Nepal. Deputy Consul General, Surendra Goutam Gupta, Traffic Manager, “Evacuation of Nepal bound cargo Tapa told MG that there has been Kolkata Port told MG that situation at is almost zero as there are hardly any sharp decline in the number vehicles the port side was getting better, from a rakes coming here to take the cargo. entering Nepal since 23 September. situation where no rakes were loading, An almost 1 lakh tonne of bulk cargo Only handful of vehicle could enter they could manage to load nine rakes is laying in the port to be sent to Nepal Nepal via Biratnagar, so far during the last three weeks. and due to which we are facing huge Birgunj and Krishnanagar “Situation is getting better and we congestion issues here. There are about checkpoints and entry from other are on the job to evacuate the Nepal three to four vessels waiting in the checkpoints is also negligible. bound cargo as quickly as possible. port to discharge the cargo but there is According to a statement from Nepal authorities, there are reports that the agitators are using no man’s land as well as the Indian side of the Impact of the crisis border for staging demonstrations to stop the cargo vehicles from entering • Thousands of Nepal- detention charges to the and Krishnanagar Nepal. They are time and again bound cargo laden port and shipping liners, checkpoints and entry pelting stone on the Nepalese security trucks were stranded which exceeded `125 from other checkpoints personnel from across the border. This for more than three million a day. is also negligible. is the reason from Indian side, stated weeks. • The truck logistics cost • Almost 1 lakh tonne of as security concerns to Indian cargo • Factories have been has been raised to bulk cargo is lying in the vehicles to enter Nepal. shut due to no raw double. port to be sent to Nepal However, Surendra Tapa, in a material inflow. and due to which Haldia • Only few vehicles last update told MG that situation is Dock is facing huge getting better and they are hopeful to • Importers have been could enter Nepal via congestion issues compelled to pay high Biratnagar, Birgunj bring normalcy as soon as possible.

november 2015 / maritime gateway 33 q&A Ron P S Kahl ,chairman kopt

Surprise Turnaround

that are advising us so that “We are one of the few ports in which most of the we can maximise our effort capacity addition projects have been materialised. and make dredging more effective within the subsidy As a result our turnaround time and pre-berthing available. detention has improved.” Does this effectively translate into avoiding MG Bureau delays in cargo handling? Yes definitely, our turnaround time and pre- Kolkata Port has not container and others, so we Secondly, we have been berthing detention that been doing well for quite give them priority. We have increasing our capacity. We are the key performance some time and now we see got strategic alliances with are one of the few ports in indicators have improved there is growth in cargo organisations like SAIL which most of the capacity over the last two to three volumes handled. So what because they are giving us addition projects have been years. Once the turnaround has gone in this makeover assured business. We give materialised and that is time is reduced the shipping and how have things them priority so they stick recognised by the ministry cost comes down because actually shaped up? to us rather than going else as well. there is so much leverage. Basically I would say two where. Third is the increasing Since you have to three things: One is that Similarly, Nepal mechanisation. Recently mentioned about the we are doing our marketing and Bhutan have been our image suffered a parameters, I believe the very aggressively. My traffic traditionally with us and bit at second and eight ministry has engaged managers are going to the at one point of time they terminal as ABG left it, Boston Consulting Group hinterland and telling people were thinking of going to but we have been able to to give some parameters to about the advantages of other ports on the east coast rationalise both ship and benchmark the efficiency Kolkata and Haldia Port, and after having done their shore handling. Draft has of the ports. What have which have very good survey they have come back always been a constant they come up with? availability of railway rakes, to us seing our productivity. problem with us and we They have studied and the railway tariff is low We are friendly to them and have tried to overcome that both Kolkata and Haldia, as compared to Paradip and help them resolve logistic by having enhanced version and for Haldia they have Dhamra. We are also giving issues. At times we have of our VTMS system. Our basically said it is capacity them timely concessions; for dynamic pricing of plots dredging has become more constrained port. The example, we have got ECT and other services we give effective as we have roped capacity to handle cargo clients – people who bring them concession to attract in HR Wallingford along inside the impounded dock in bulk shipments, both in cargo. with Pune-based CWPRS system is limited, because

34 maritime gateway / november 2015 Mumbai and Kolkata are us. We definitely foresee two ports in which we have an increase in container impounded dock system traffic, because at Kolkata We foresee increase in container traffic. We as they are riverine ports. about 70-80 per cent of So the dock basin has to be our volume is container expect Haldia to attract more containers. maintained at par with the and we expect Haldia to level of the river for ships to start attracting more and J M Baxi will have more synergy in move. BCG has suggested more. Since JM Baxi have how we can increase our come so they will have operations as they have container handling capacity inside the dock more synergy because they system in various ways have a container handling facility at Vizag. which we are implementing. facility in Vizag. So we are They have also suggested expecting they can top-up in how we can reduce our Vizag and Haldia can be the non-working time and last port in which they can that can improve the be unloaded, similarly on ship chandling because business of Concast is steel turnaround time in Haldia. the reverse journey. it was left into private which is going through a bad They have advised on The other big thing is hands. Kolkata being the phase due to which they had increasing mechanisation the transloading facility at oldest port, would charge run into financial difficulties and making more space Konica sands for which only for cargo and vessel and were not able to take it for storage and handling the ITF Jindal has signed related charges but not the forward. cargo. They have also an agreement with us and shore handling charges. Second setback that we suggested we operationalise they are going to invest But for the first time we have had is - we wanted to have Eden channel more and 250 crore for bringing ` are getting about `40 per Diamond Harbour Container we have already started two to three transloaders. tonne through this system. Terminus. Because Kolkata that in conjunction with As the basic problem of We invited tenders and capacity has to increase seeing our existing channel. We Haldia is the draft, we have all those holding valid the rise in cargo traffic ten just want to see what kind developed this strategy – licences and shore handling years down the line. So we of results it will produce – there is a point in the sea infrastructure have been wanted to tender the Diamond dredging will be cheaper 2 nautical miles radius listed and we have put up Harbour Container Terminal and we can bring a bigger that comes to the east of the rates on our website which did not happen as we parcel size ships. both Dhamra and Paradip. and the client need not pay did not get any bidders. The As far as Kolkata is A transloader Panamax anything more than that. issue there was the connectivity concerned, our supply side size full ship can come Now the other ports are because even if the containers is growing, so to maintain there it will be unloaded also going to implement the do come, their movement by sufficient capacity to handle into daughter vessels and same thing. rail and road is constrained. that they have suggested few brought to Kolkata port. We A lot happened in the The NH-117 that comes from steps like having additional are expecting this will bring past one year. Are there Diamond Harbour to Kolkata mobile harbour cranes, additional cargo, atleast things that have not gone is very small and busy. Also converting certain berths 6 million MT in one year as planned? the railway connectivity for the handling breakbulk/drybulk and to receive that we have There is one project freight corridor also needs to into container berths given contracts. A floating which has not taken off at come up. and improving customer barge jetty is given to Haldia, where we find that What do you look forward interface by having 24x7 Bothra and similarly OSL the cargo throughput is to in the next few months? Customs clearance to and Bothra have opted for increasing every year. We I look forward to remove congestion. These one each berth at 2 and 8. wanted to have a second transloading getting suggestions have a timeline KoPT has suggested facility, Haldia Dock-2 operationalised. On December for implementing. radical changes to on a PPP basis because 1, 2015, ITF Jindal will be PSA started its stevedoring system which that is the emphasis right able to start their operations operations and everybody ministry also endorsed. now by the ministry as the and that will be the biggest started feeling the What is the status on that? government is constrained acheivement I would say improvements in We are the first port by lack of funds and the Kolkata and Haldia efficiency. United Liner is to implement it and the the basic feeling is that Dock Systems can show. operating at Haldia and in ministry after looking at the ports by themselves Traditionally the problem of the recent auction couple the Haldia model opined should not be carrying out Kolkata Port has been that of big companies were that this model can be operations but they should ships had to go to Paradip also planning to set up implemented in rest of be providing basic facilities download half of their cargo their allied infrastructure the ports. The idea is that and supervising. We had and come to Kolkata, but facilities, so how does this there should be a fixed awarded that to Concast now they can directly come translate to the port and ceiling for ship chandling Hyundai because it would to Konica sands which is the the customer? and so far the port was not have added 11 MMT to our transloading zone for us and This will definitely help earning any money from capacity, but the primary come to Haldia.

november 2015 / maritime gateway 35 CRA GO exports GRANITE too stONED to move Despite being a huge foreign exchange earner, India's granite industry face huge logistics hurdles by Ritu Gupta

ranite is known as ‘king of vast resources of granite with about turn. Today, granite has emerged as a stones’ because of its inherent 1,120 varieties of different colours and major foreign exchange earner. India’s Gcharacteristics such as extra- textures. The industry is producing a export of granite and granite-based fine mirror polish, scratch-free glossy wide range of granite-based products products have witnessed a phenomenal surface and durability. Indian granite such as granite tiles, slabs, tombstones, growth by reaching a level of `11,000 has become the most sought after and tabletops and several handicraft items crore last year as against `2562.26 extensively used stone material in like jewellery, boxes, ashtrays, pen crore in 2004-05. Over the recent building constructions and massive stands and paper weights. years, the demand for Indian granite structural works throughout the world The granite industry in India is both in the domestic and foreign and is well known in the international concentrated mainly in Karnataka, markets has been continuously going market not only for its elegance Andhra Pradesh, Tamil Nadu up. Though India exports granite of and aesthetic quality but also for its and Rajasthan. Realising the huge varying colours, black granite known durability. India accounts for 30 per potential of granite, many others states popularly as ‘Indian black’ is in great cent of the world’s export of high- have also set up granite units. These demand. quality natural stones like granite, include Orissa, , Granite is exported either as raw marble and sandstone. The country , Gujarat, Maharashtra and blocks or after cutting and polishing. has emerged as one of the leading Bihar. Ever since the government The key ports of export are Chennai, countries in production and export announced granite as a thrust sector Karwar, Mumbai, Visakhapatnam, of granite and other stones. It has in 1990, the industry has taken a new and Krishnapatnam. The logistics chain of granite transportation is simple – the blocks need to be transported from the factory/quarry to agents' stockyard and from there to the ports. However, the cost of this transportation is quite high as granite is very heavy – weighing about 2,600 kg per cu m. According to the industry players, there have been numerous problems in granite logistics, especially due to the fact that it is very bulky in nature. The first and foremost is the unavailability of railway rakes. "Railways is not able to cater to our needs and therefore we have to depend on roadways. But roads are not good enough for heavy commodities like granite," says Satyender Madan of Aravali India Marbles and Granites. Other industry players agree with him. "The roads connecting the quarries which are located at remote places are very bad. Most roads are not capable of bearing the weight of such heavy cargo. There are also several old and weak bridges on the way to the highway, and they have been declared unsafe for heavy loads. The latest trend is that most

36 maritime gateway / november 2015 of the granite processing factories are being set up near the quarries, so that the transportation costs can Key challenges be reduced. But that is leading to • Unavailability of railway granite blocks have hinterland and vice problems while carrying the cargo rakes to be transported to a versa. in containers. Therefore the road long distance at times. infrastructure needs to be improved • Roads connecting to Congestion at ports • Inconsistent and at the earliest to ensure smooth quarries are very bad adds to it. contradictory leasing policies movement of goods," says S Krishna • Old and weak bridges • Logistics cost is the Prasad, vice president, Federation of are unsafe to carry key differential and • Absence of export- Indian Granite and Stone Industry heavy loads exporters can either oriented policies by the (FIGSI). Ramesh Sharma of S K gain or lose their Centre prevents setting • Only a few ports up of large number of International, Bengaluru, who is also have the facilities to competitive advantage one of the vice presidents of FIGSI, in transporting the EOUs near the quarries handle granite, and and ports. agrees with Prasad. "Better roads can this implies that heavy cargo from port to reduce transportation cost to a certain extent. Another problem is that only the government should take steps to leasing policies followed by the state a few ports in the country had the ensure that a better transportation governments and also due to absence facilities to handle granite, and this system is available to an industry of export-oriented policies by the implies that heavy granite blocks have which is emerging as a major foreign Centre that prevent setting up of to be transported to a long distance at exchange earner," says Madan. Apart large number of EOUs for granites, times," he avers. from transportation, there are other marble, slates and sandstones near Indeed, logistics costs make the issues that need to be ironed out. the quarries and as well as closer to final price different for buyers of These entail congestion at the ports the ports. "India is the seventh largest different regions, and in order to cater and ensuring that shipping agents take exporter after China, Italy, Turkey, to the ever growing and complex care of all minute details of shipment. Egypt, Greece and Brazil. We have demands of the granite industry, "Many a times novice shipping agents one of the largest resources of granite comprehensive and economical are handling the consignment and and natural stones. If the right policies logistics support is very important. they do not put the necessary labels/ are introduced we can become the top According to experts, exporters of stamps. For instance, some of my exporter," says FIGSI president bulk cargo like granite can either gain consignments were returned from R Sekar. Indeed, given the right or lose their competitive advantage Europe as they did not have the impetus this industry has a long in transporting the cargo from fumigation stamp. Such incidences do way to go. The government needs to port to hinterland and vice versa. dampen the spirit of the exporters," ensure that if nothing else, this sunrise "Surface transportation is much says Madan. According to experts, industry gets the basic infrastructure costlier as compared to water or rail the Indian industry also faces hurdles such as good roads for it to develop transportation. It is imperative that due to inconsistent and contradictory further.

NVOCC operations management system

Highlights tion hence no data entry • Dedicated application required on import side for NVOCC business • Intermodal • Highly configurable • equipment maintenance • User defined workflow and repair management and approval processes • Container activity • Tightly integrated updates in a single go through bulk upload • Multi-currency, multi eveloped by iInter- challenges of the business. agents and multi- • empty repositioning and change iNOVA is It is a comprehensive solu- D location SOC movements an NVOCC operations tion that addresses pricing, management software exports, imports, trans- • Rate filing and customer • Full control of receiv- tailored to meet the needs shipment, billing, container contracts ables and payables of containerised cargo tracking, consignment • Automatic cost • Automated agency shipments. It has evolved tracking along with equip- calculation based each commission calculation from continual study of the ment control and contract container activity industry which makes it a management. • Automated customer solution to handle real-time • Seamless data integra- commission/brokerage

november 2015 / maritime gateway 37 containers icd

Cashing on empties Large shipping lines, are finding Indian container yards to keep their empties, which are idling because of lack of cargo. by Mohammed Shareef MP

ICD, around 300 boxes can be stored and which can now fetch nearly `1 lakh per month. Numerous private ICDs which are located near ports like Tuticorin, Chennai, Kattuppalli, Mangaluru, Visakhapatnam etc. have already started benefiting from the emerging situation. This trend is on the raise as the handling cost of empties in these major ports are very cheap. According to David Raja especially in Tuticorin charges are low and they are making use of the favourable business environment. However, some container yard operators are of the opinion that though there is an increase in demand for space, the margins are low. This is hile the global dip in the because the charges presently levied overseas shipping has been are minimal. There is a potential for Wcumbersome for most of S t. John's ICD at Tuticorin increasing revenue through repairs the stakeholders from shipping line of import containers. According to to traders in the industry, it seems to has around 14 acres of David Raja with an integrated unit be a surprising windfall for the Indian stack yard for only keeping of Maintenance and Repair (M&R) container yards as owners of the boxes, units model one ICD can make better mainly large shipping lines, are finding empties which can stack revenue than just levying the charges Indian container yards to keep their for keeping the empties. empties, which are idling because of around 9,000 to 10,000 According to reports, the economic lack of cargo. downturn in the western markets, Slowdown in exports from China teu of containers. In an especially in Europe and China, has has impacted container markets acre of stack area around resulted in idling of ships, cancellation worldwide and this has forced of export orders and new contracts etc. container shipping operators to 300 boxes can be stored Today, vessels are running light and surrender boxes back to lessees. Many many carriers are forced to idle their container owners now prefer Indian which can fetch `1 lakh per vessels. Several services are getting ports for keeping their empty boxes, month. reduced or even cancelled due to poor according to private ICD operators in performance. the country. Though it has affected the entire It is interesting to note that as the trade from South-East Asia, the wind takes it reverse course, shipping demand for high value commodities, lines are approaching container yards major ports has now become cheaper especially coir and marine foods from for space as against the earlier practice for shipping lines. Because of this India, is expected to perk up in the where private container yard owners cost advantage, they preferred to park short term. had to offer discounts to shipping lines the boxes here rather than moving The current situation, according to to keep empties in their yards. to foreign ports. St.John, which is experts, has also led to steep reduction Cheaper for shipping lines operating an ICD at Tuticorin has in container freight rates, forcing David Raja. J, Senior Vice around 14 acres of stack yard for shipping lines to look at new avenues President, ICD Division St.John, only keeping empties which can for revenue generation. However, the operating an ICD at Tuticorin points stack around 9,000 to 10,000 teu of drop in oil prices has enabled lines to out that stacking empties in India’s containers. An acre of stack area in an manage their schedules.

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Long shopping list with growth strategy

RINL vows to enhance its productivity further to broaden its market share with a well knit logistics and supply chain system in place. by Mohammed Shareef MP

lobal players like China, Brazil 25,000 acres, excellent infrastructure level, several issues are needed to be and Russia continue to dump the and logistics, deep draft ports of addressed to keep the firm to a smooth Gsurplus steel in the country and Visakhapatnam and Gangavaram, and pedestal, according to Executive the market at present is looking very being market leader in long products, Director, Marketing, R Shankar, bleak and sluggish. The oversupply RINL is one of the major suppliers who spoke at length with MG, on continues following the depreciation of steel to the construction, automobile operation, logistics, market, growth of the import countries currencies and manufacturing sectors. At etc. RINL’s financial performances and a general trend of a global crash present, with a capacity of 6.3 million hinges critically on input costs as it is in steel prices. However, this has been tonnes, RINL produces wire rods for the only main steel producer in India the case, the public sector company’s wire drawing, bright bar, fasteners without captive mines for its major like Rashtriya Ispat Nigam Limited and rebars for construction for raw materials, iron ore and coal. While (RINL), the corporate entity of reinforcement, squares for bright bar, the company is depending on NMDC Visakhapatnam Steel Plant, vows forging and re-rolling application and for its complete requirement of iron to enhance its productivity further structurals for construction, fabrication ore, 90 per cent of coal required is still to broaden its market share with a and making leaf springs. The plant being imported from abroad. well knit logistics and supply chain is again in the mode of expansion to In order to have a continuous system in place. It has also drawn up achieve the target of 12 million tonnes supply of major raw materials and a directional plan to expand to 20 and plans to expand further to 20 also keeping in view the requirement million tonnes to become the largest million tonnes later. of expansion units, RINL has made single location integrated steel plant. However the plans are set to long-term agreements for continuous Gifted with a land bank of stabilize the growth to its optimum supply of raw materials. While these

40 maritime gateway / november 2015 agreements would suffice the raw material in flow to the plant, the firm is also exploring numerous other options in the logistical front which would RINL is also exploring coastal shipping for movement of in turn bring a balance in the overall financial activity of the company, its finished goods ot its regional offices which are located despite the constrains of not having its own captive mines for raw material in different parts of the country. For the appointment supply. It is planning for a long slurry pipeline to source iron ore directly of an Intermodal Transportation Agency for Costal from the faraway source point, have its own jetty to handle coal and venture Movement, a composite global tender was called by the into coastal shipping for the end product supply. steel firm a month ago. Raw material sourcing Iron ore The steel firm has made Long For handling its coal imports, the Term Agreement (LTA) with National plant depends on the deep draft port Mineral Development Corporation, of Gangavaram and coal is directly NMDC for supply of 12.5 million transfered from the port to the plant tonnes of iron ore to meet the yard on conveyor belts. It has a total requirement upto 6.3 million tonnes. capacity of 12 million tonnes of Efforts are also being made to develop conveyor belts for the purposes of a other sources of supply like supply hassle-free coal transfer from the port. from OMDC, a subsidiary of RINL, RINL has captive mines for minor according to ED, Marketing, raw materials like limestone, dolomite R Shankar. and manganese ore in the State of RINL has been continuously taking Andhra Pradesh at Jaggayapeta, up the matter of allocation of mines Madharam and Garbham respectively. with concerned state governments and Visakhapatnam, an MOU has been Eastern Investment Ltd, a central government. As a result of its signed with NMDC for this Joint subsidiary of RINL, has two mining continuous efforts, during this financial Venture project. Once this project is companies – OMDC for iron ore and year, it could enter into an agreement materialised, the firm could easily sort BSLC for limestone and dolomite. Also with Government of Rajasthan for out most of the issues related to iron MoUs are forged with allotment of Jahazpur iron ore block sourcing and logistics bottlenecks. The for setting up forged wheel plant and in Bhilwara, Rajasthan. As of now MOU is also is a part of a plan to set axle plant. This initiative would help sourcing of iron ore from this block up 4 MTPA capacity Pellet plant at RINL in widening its geographical hasn’t started. Visakhapatnam. spread and diversify product portfolio At present the plant gets 7.3 Coking coal with assured off-take at 7.3 Mt stage. million tonnes of iron ore from RINL sources 90 per cent of its In the 6.3 Mtpa expansion phase, latest NMDC’s Bailadial Iron Ore Mine in required coal annually from abroad, technologies are being adopted which Chhattishgarh. It is transported to the mostly from Australia. However a will further strengthen the product plant by rail through the Kothavalasa- miniscule share, it sources from New portfolio with entry into high end value Kirandul railway line. On an average, Zealand and USA too. The rest of added steels. RINL gets four to five rakes per day the 10 per cent coal it sources from Planning to have own Jetty? for iron ore alone and it gets tippled central coal fields of Bihar. It also gets In order to make a huge saving on directly at the yard connected to the almost one million tonnes of coal from its freight costs, RINL had a plan to integrated supply iron ore feeders Thalchiar mines of , a Coal have its own captive jetty near its plant connected to the furnace. Due to delay India concern. At present, the steal and the firm had sought the support in doubling of KK rail route works and firm imports around 14-15 million of VPT in this regard. Later an idea constant route rationalisation issues, tonnes of coking coal from abroad of has been conceived to construct a port the supply of iron to the plant couldn't which a lion share is from Australia. with support of VPT as it would be attain the optimum level. The plant For an uninterrupted supply of the satellite port of the Major port. needs at least eight rakes per day in the coking coal requirement, LTA has However, the project has been shelved order to keep the productivity to the been formulated with reputed suppliers based on the feasibility study report. maximum and in the expansion stage like BHP Billiton Anglo, Peabody of Even this has been the case, RINL it may require more rakes. Australia, Logan & Kanahwa and Alfa officials are still hopeful in having a In order to mitigate the issues Coal of USA, Solid Energy of New jetty of their own once the hurdles concerning the logistics of iron ore Zealand. Besides this, one standing are cleared. “If the jetty materialises, sourcing, RINL is also planning to Expression of Interest (EOI) has been whenever it is, it will fetch us a install a 336 km long slurry pipe line placed on the company's website for substantial savings on our freight cost from Jagdalpur of to exploring new sources of coal supply. and we would take full advantage of

november 2015 / maritime gateway 41 logistics steel

material logistics,” said an official who doesn’t wanted to be quoted on this. Finished goods and Market Served RINL, with its exclusive product mix of longs is the largest producer of long products in the country and has a market share of 8 per cent, as per the 2014-15 records. The principal products of RINL include rounds, structurals, bars, wire rods, blooms, billets and pig iron, and the company also markets the resulting byproducts like coal chemicals (Ammonium Sulphate, Benzol products etc.) and slag. RINL is a registered vendor for supply of special steel products to various customers like DNV for ship building, Meritor Troy-USA, Tata Motors and Caterpillar in Automobile sector and Indian Railways for Elastic a revenue of around `600 crore from The Executive Director Marketing, Rail Clips. In 2013-14, RINL products exports alone. R Shankar said VSP had targeted were certified by IBR for Boiler Coastal shipping for a better logistics `15,000 crore sales turnover in 2014- applications. Troubled with the various 15, but could not reach even last The firm has a network of 23 constrains in rail freight, RINL is year's mark mainly due to low-cost branch offices, 22 stockyards and also exploring coastal shipping for steel imports from China and Russia. 5 Customer Sales Associates that movement of its finished goods to Besides, the sluggish domestic steel caters to the delivery requirements its regional offices which are located market also affected its sales, he told. across the country, which is further in different parts of the country. For On the export front, the company complemented by the mechanism of the appointment of an Intermodal registered a 16 per cent growth. DLDS and RDS to ensure availability Transportation Agency for Costal "In the current fiscal, it is targeting of quality steel in rural areas at Movement, a composite global tender sales turnover of `18,000 crore, affordable prices. was called by the steel firm a month including exports of `1,000 crore," Market and logistics ago. Once this plan materialises, RINL he said, adding domestic steel Of the total finished goods and the could as well use coastal shipping consumption was expected to grow byproducts, almost 95 per cent goes to for movement of its goods and save a because of government's initiatives in the domestic market, which is being substantial amount in freight charges infrastructure projects. marketed through its five regional as coastal shipping is expected to be He said the ongoing `12,500-crore offices spread across the country. cheaper and viable option. As a result, expansion project was nearing The regional offices are located at it could be relieved from depending completion, and with this the Chennai, Mumbai, Delhi, Kolkata and solely on rail for its transport company was targeting to produce Visakhapatnam. The products reach 4.3 million tonne saleable steel. It has requirements. stock yards of these regional offices simultaneously taken up modernisation Financial Performance through rail and roads. While 90 per of its existing plant with `1,200-1,300 “Slowdown in economic cent of freight movement is done by crore investment. All these would raise growth, execution delays in many rail, the firm also depends on road the production capacity to 7.3 million infrastructure and construction logistics for transportation of rest of tonnes by 2017-18. goods. Around three rakes are being projects have translated to lower Over the next three years, the used for the transportation of the demand for steel. This in turn has led company plans to invest about `2,000 goods and daily around 200 trucks take to sluggish volume growth for major crore in joint venture projects as the goods directly from the plant. In steel manufacturers during 2014-15. part of its diversification, he said. the export front it ships 5 per cent of RINL also faced the brunt of the These include setting up of a 500- its product to countries like Sri Lanka, sluggish market conditions,” says MW power plant in association with Myanmar, Thailand, Taiwan, South Shankar, talking about the financial NTPC, a 10- mgd desalinisation plant Korea and South Africa. The goods are performance of the firm. As an impact with an investment of `450 crore exported from both Gangavaram and of the new market scenario, the to meet fresh water requirement, VPT and while in the domestic market Navaratna Public Sector Unit posted a laying of a 315-km long 13-million the goods are moved by flat wagons. decline of 13 per cent in sales turnover tonne capacity slurry pipeline from Exported goods are transported as during the 2014-15 financial year at Nagarnar to Visakhapatnam along bulk cargo as well as containers. In `11,718 crore, including exports of with NMDC, and a joint venture the financial year 2014-15 it exported `868 crore, compared with fiscal 2013- project with Power Grid Corporation 2.2 lakh tonnes of finished goods and 14. Its sales turnover stood at `13,480 for making transmission line towers at 93,000 tonnes of pig iron, resulting in crore in 2013-14. Visakhapatnam.

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45 Branches in India | 10 Overseas offices | 90+ Global partners in conversation C Gapt.UMESH rover, Secretary General CFSAI

Guided by experts: Committed to support “The biggest strength of CFSAI is its membership comprising reputed and highly experienced state-of-the-art CFSs. As a collective responsible industry forum, CFSAI have been able to address some of the pain areas by making adequate representation with concerned authorities.” MG Bureau

Can you briefly tell me about the concerned authorities. The association was initiated by the Association. We objectives of CFSAI? also creates platform to facilitate as an Association have been able to As an association of Container discussion, exchange of information, secure representation on government Freight Station operators and policy awareness, opportunities bodies like the Standing Committee owners, CFSAI comprises elected amongst its members, for the benefit on Promotion of Exports, (SCOPE members, who have the responsibility of the trade. CFSAI also collaborates Shipping and SCOPE Air), Task to liaison on behalf of the industry with other associations to represent Force on Container Freight Stations, with other stakeholders including the logistics fraternity at the state as CII National Committee on Ports & state as well as central government, well as national level. Shipping, AMTOI, IPA and various ports, Customs, transport operators The Association from time to other forums of the Ministries of and mainly other associations of time has made suggestions for the Shipping, Commerce & Finance. the trade. The key objectives of the consideration of government. One There are some associations like association is to bring forth concerns, such suggestion was for amending the NACFS already serving the CFS challenges, grievances of the industry Container Freight Station Act and industry. How different are working in front of the government and other for adopting other related measures, principles of CFSAI?

44 maritime gateway / november 2015 NACFS as an association is As part of the industry we have created such state-of-the-art primarily focused in the southern collaborate with all association for infrastructure and invested heavily region of India, whereas CFSAI has representing the trade. For example, in the sector to support the India’s active presence in the western and we work closely with Association of EXIM containerised trade. They have northern region and is committed to Multimodal Transport Operators of shared their wealth of knowledge and serve the CFS industry pan-India. India (AMTOI), where in we are part experience with members to enhance Establishment of Mundra chapter of of their board, to represent the industry productivity and ensure that the best CFSAI is on the verge of completion to the state and central governments. global practices are adopted, for which and all 11 CFSs in this newly emerged We liaison with Brihanmumbai procedures need to be automated, mega container port will have the Customs House Agents Association digitised as being practiced in benefit of expertise of CFSAI. JNPT (BCHAA), Mumbai and Nhava developed countries and old obsolete and Mundra are the largest Container Sheva Ship Agents Association procedures need to be scrapped/ ports in the country managing over 65 (MANSA), Container Shipping modified. CFSAI team have identified per cent of EXIM cargo. Thus it plays Line Association of India (CSLA), the changes required in several areas, a crucial role in the entire logistics Federation of Freight Forwarders however there are multiple challenges value chain of our country. At the Association of India (FFAI), Nhava and continuous interaction with other same time we also work closely with Sheva Container Operators Welfare related trade bodies, governmental members who are part of NACFS. Association (NSCOWA), Maharashtra and statutory authorities is required to CFSAI has recently completed 11 Heavy Vehicle & Interstate Container bring in and implement these positive years of its existence. What has been Operator's Association (MHVICOA), changes. achieved in this period? Indian Private Ports & Terminal My role as the first Secretary The biggest strength of CFSAI Association (IPPTA) and others. In General of CFSAI requires me to has been that with its membership addition to associations, we also work closely interact with the members, base comprising of reputed and highly with ports, customs, terminal operators advisory board, the VPs and the experienced state-of-the-art CFS’s who to facilitate and most importantly President of CFSAI and with their follow best global industry practices. discuss and resolve day-to-day guidance and support take up these Sharing knowledge and expertise by challenges. issues meticulously and forcefully the members has brought in higher Does the association work in various forums as well as with productivity and safety standards. As a only to voice policy concerns ministries and statutory authorities. collective responsible industry forum, with government or does it have Secondly, my role is also to ensure CFSAI has been able to address some any objective to address ethical, CFSAI’s presence in all the key forums of the pain areas by making adequate governance issues of member so that our agenda is not inadvertently representation with concerned companies and also work on capacity missed out. Whilst, the President, VPs authorities. building in this sector? and other key members have been What are the current burning CFSAI’s role is not restricted to taking out time despite their busy issues of CFS industry and how do addressing business related issues and schedule from the core businesses you plan to take them up? policies only but also to foster ethical they handle, it is neither practical nor There are several issues which practices, social development, best-in- convenient for them to be present in need to be addressed and are being class governance, safety compliances every forum. The need was felt by continuously pursued. CFS’s being a and healthy working environment for the association to have a structured logical extension of ports are custom all. We have initiated a more focused secretariat and engage a senior notified areas wherein stuffing/ approach on handling, storage and experienced industry person who destuffing of containers, customs transportation of hazardous goods. understands the business well and examination, provisions for Bonded This is a small step forward in the would be effectively able to follow up warehousing etc. is done and a full direction to make health and safety and represent CFSAI is all such forums team of Custom officials are posted our primary concern. To ensure this is and meetings. in each CFS. All the expenses for engraved in the day-to-day operations, Based on my over four decades Custom staff are payable to the govt we have decided to form an in-house of experience in the industry and by the concerned CFS till such time a sub-committee of experts who will not having headed INSA as well as SCI’s minimum prescribed threshold limit is only impart training by visiting various container business, I am privileged reached. Thereafter the “cost recovery” facilities but would also carry out to have been offered the position is done. Delays in cost recoveries affect voluntary audits. and I would endeavour to fulfil the the cash flow of the CFSs and is a You have taken charge as expectations of CFSAI. My advantage major challenge. CFSAI along with secretary general with several is most of the key people in the other associations is working closely years of experience working with industry and the Ministry are known with various authorities and ministries a shipping company and then to me for decades and I am generally including DRI, SIIB to resolving issues leading Indian shipping companies not denied an access to them. I would and challenges. association. How does this help also make efforts to reach out to other What is the relationship CFSAI CFSAI? CFSs/ICDs pan-India basis so that will have with other stakeholders’ Since its inception CFSAI has CFSAI grows from strength to strength organisations in addressing common the privilege of having the guidance and the industry as a whole would problems? of the stalwarts in the industry who benefit from the activities of CFSAI.

november 2015 / maritime gateway 45 Operations port vgcb

Need more room to grow The functioning of the general cargo berth at ith its strategic location and Visakhapatnam Port came as a boon for the fully mechanized facility city residents and the port, moving dusty cargo Wto handle large vessels, Visakhapatnam Port’s scope to emerge away from city limits and helping the port handle as a gateway port in coal import greater volumes of coal. But three years since has brightened for the last couple of years. Vizag General Cargo Berth Pvt commencement of operations, the berth is pleading Ltd, a 74:26 joint venture of Vedanta and Leighton Welspun, started its for greater yard space and higher frequency of operation three years ago and imported rake allocation.These two steps, if taken, can grant coal is being handled for almost its optimum capacity. the port a fillip in bringing back lost volumes of The fully mechanised coal handling bulk cargo to the neighbouring ports that boast of berth was also built in addressing the fervent plea from the people of enviable numbers of coal volumes Visakhapatnam, especially those in the old city in the vicinity of the port to mitigate the pollution resulting from by Mohammed Shareef MP dry bulk cargo handling. With the state-of-the-art facility coupled with fully mechanised and automated coal handling, the port no longer faces the problem of coal dust emissions from its premises. Before VGCB came into picture, the coal handling was done in the port

46 maritime gateway / november 2015 manually, which used to cause coal dust pollution and also spilling the cargo and coal dust emanation further resulted in the loss of cargo also. With the kind of the state of the art facilities, berth is Now with fully mechanised and handling coal cargo to almost its optimum capacity and if automated cargo discharge system supported with sprinklers at every they are provided with adequate rakes and space for stack point, not a drop of coal is spilled during the discharging from the vessel yard, the berth can operate in full swing and in turn bring to loading the rakes. The conveyors are fully enclosed with sprinkler more revenue to the Port Trust. supports, in avoiding cargo spillage. The stock yard has a boundary wall with height of 40 m facing the side of the human habitation and the dust has constantly being controlled with numerous sprinklers installed in the be 910 million tonnes, according to in the piling up of the coal in the stack yard. Turnaround time for the rake Coal India statistics. This is being yard, leaving no space for further stock. loading has come down to three hours the scenario,VCGB is planning to “Our further growth is being challenged against the earlier nine hours time. make use of the favourable business due to certain constrains we are facing. A wagon is loaded in less than one environment in importing the coal and We are not provided with adequate minute time with fully automated rake at present the Vizag Port handles over rakes which create problems in the loading system in place and even in the 10.5 million tonnes of imported coal timely evacuation of the coal from the smallest gap in between the wagons, per annum. stack yard. coal is not spilled, with the highly Talking about the cargo handling According Manral, the railway is sophisticated rake loading system. and future prospective of the berth, not being able to provide with rakes as Further the berth got a shot in DK Manral, CEO, VGCB told VCGB requested. Initially it was four the arm with the recent completion Maritime Gateway that with the kind rakes provided, as against the promised of `139.88 crore dredging by the of the state-of-the-art facilities, berth ten rakes per day and later it was Visakhapatnam Port to a draft of 20 is handling coal cargo to almost its increased to six rakes. m in the outer for navigation optimum capacity and if they are While railway is on one hand of Cape Size Vessels with 2 lakh dead provided with adequate rakes and falling short of rolling stock, on the weight tonnage. With this VCGB space for stack yard, the berth can other hand modernisation of the became the deepest draft harbor in operate in full swing and in turn railway infrastructure is yet to happen. the country and Cape Size Vessel bring more revenue to the Port Trust. There is only one railway siding with started to calling the Visakapatnam VGCB is claiming to be the highest a single line which hasn’t electrified Port. Biggest Cape Size vessels like royalty paying private partner to the so far. This has been the case with NGM Sailor with a bulk cargo carrying government in the port sector, which is railway, getting more rakes is nearly capacity of 1.6 lakh million tonnes 38.2 per cent at present. impossible at this juncture and only called recently and with the fully Capacity utilisation way out is to have proportionate stack mechanised cargo discharging system The growth seems to be steady as yard space, says Manral. the cargo was discharged within a in the first year of the operation the At present VCGB is having close day. Cape Size vessels usually range berth utilised 40 per cent of its total to 23 acres of stack yard which can with a carrying capacity of 1.2 lakh capacity of 10.2 million by handling store 3.7 lakh tonnes of cargo and in tonnes to 2 lakh tonnes, i.e. three 4.7 million tonnes of cargo. In the order decongest the cargo stocking times carrying capacity of a Supramax second year the capacity utilisation and to lift the operation of the berth vessels. An estimated savings of $2 rose to 70 per cent by handling 7 to its maximum, it needs at least 30 per tonne would be made possible million tonnes of cargo and in the more acres of stack yard. “We are with the calling of Cape Size vessels. current fiscal year it is expected to negotiating our demand for more stack It is surprising to know that Cape handle 8.2 million tonnes of cargo, yard with Port Trust and we expect Size vessels are already being called at which would be 80 per cent of its our demand is met soon. If we get Minor Ports like Krishnapatnam and capacity utilisation. Comparing the that much more acres of land, that Gangavaram but in the case of a Major growth rate, there is a certain drop will be good for the port also because Port Visakapatnam is the first port to in the growth, i.e. from last year to then the port can compete with the have this facility. this year there is only 10 per cent neighbouring port as the bulk cargo With India’s primary energy growth. The drop according Manral is handling at our berth would be at demand still being heavily based because they are chocked due to a slow its full swing and since our rates are on coal, the import are expected to evacuation of the cargo. cheap, we tend to get more business. It grow double digits and for the year Challenge for growth would be kind of a win-win situation 2015-16, the country had planned The timely evacuation of cargo is as higher the tonnes of the cargo the to import 210 million tonnes while not happening as adequate rakes are not port handle, the higher the revenue the the actual coal demand is slated to provided and which in turn resulting port make,” says DK Manral.

november 2015 / maritime gateway 47 innovation WAREHOUSING

storage device, is not only ecofriendly, but also pocket-friendly. “India is the second largest producer of fruits and vegetables in the world, yet it is not able to fulfill its domestic requirements. We lose 30 to 40 per cent of the produce amounting to over `13,000 crore annually. Our product can help minimise this to a great extent if used countrywide,” says Vivek Pandey, the man behind the innovation. Other team members include Devendra Gupta and Prateek Singhal. The idea was mooted while Pandey and his friends were working for a project for improvising the energy efficiency of a cold storage. That was when they understood the cold chain landscape of the country and the issues that affected it. They did intensive research to find H ot idea for out the requirements of the customers. And that’s how they determined the configuration of the system. To understand the cold storage market, they undertook extensive research in prices around the year, with seven states including A solar powered farm level cold vegetable prices slumping , , storage device can go a long way to as little as a few rupees Maharashtra, Odisha and at harvest time and then Karnataka. Thereafter, they in improving the logistics chain of soaring manifold during the painstakingly designed the agri-produce off-season or around festival product, taking a lot of time. Build a network of time, to make it foolproof. by Ritu Gupta cold storages, the argument The product was pre- goes, and it saves the farmer launched in May 2014. his year's onion Santosh Sarangi, joint from having to sell off his The compressor of price crisis once secretary of the Union highly perishable produce the system is the main again highlighted a Commerce Ministry. at harvest time when prices point of innovation. It has T dimensions of 15 X 8 X 8 cold reality – India lacks Pitching strongly for are low. adequate cold storage creation of storage Indeed, the ability to feet for 5-metric-tonne unit. facility. This year the facilities for agriculture store the produce gives Transporting the product country faced a shortage and horticultural products farmers more leeway is also easy as it can be of 5 lakh tonnes of onion, across the country, Sarangi in choosing to sell the carried on small trucks which resulted in a sharp has sought both private produce in a controlled and cargo vans. Using a rise in retail prices that went and public investment way throughout the year. uniquely designed thermal up to `80 per kg across the for them "without any And these words can easily storage methodology that country. "Approximately, delay". Indeed, experts become a reality thanks to controls compartment 30-40 lakh tonnes of onion and policymakers have an innovation of engineers cooling in tandem with production is wasted long lamented the lack of from the Indian Institute regular cooling, the device almost each year due to cold storage capacity in of Technology, . helps increase the shelf non-availability of proper the country. They point to The innovation, a farm life of agricultural produce storage facilities," said the sharp fluctuations in level solar powered cold using solar panels of 2.5

48 maritime gateway / november 2015 KW–3.5 KW. “The power Apart from this, there is installed in Raichur, On the issue of the generated is sent directly almost zero maintenance Karnataka. The product commercial viability of on to the compressor like in a normal cold will help the whole country, the cold storage, Singhal which can run at various storage. "Any refrigeration especially those areas that adds, “This technology speeds to adjust itself to the is a major energy guzzler lack electricity supply has high commercial cooling demand. Instead of and our system runs despite many horticulture viability for existing cold batteries, the system has a without electricity. The activities being carried out storage facilities operating thermal storage unit which user-centric design ensures there. Even the warehouses on diesel and also reefer can store power for more high operational efficiency. in cities face electricity vans. Also it has good than 36 hours to provide After a 2-year breakeven, problems. Often power commercial viability for power in case there is no it leads to over 40 per cuts occur for as high as farmers as it helps them de- sun during cloudy or rainy cent increase in profits of 10 hours a day. This has risk themselves against the weather,” says Pandey. the user. This innovative led for the closing of some price fluctuations.” Besides Existing solar-powered product can be suitably facilities and some rely on selling their device directly units run on batteries which adapted for local conditions back-up diesel generators. to farmers, the team is also need to be replaced after 2-3 across the world," claims Diesel is an unclean source trying to create village-level years making the running Gupta. and cost as much as `16- entrepreneurs who will act cost very high for farmers. The first fully 20 per unit of electricity. as nodal points for cold For the solar-powered cold functional product was Their promising innovation storage in mandis where storage, no battery back- commissioned and tested has won the first prize of any farmer can store his up is used to operate the at Science and Technology `10 lakh in the national produce at a fixed cost. compressor, though it has Entrepreneurship Park university competition The engineers have provision of battery back- (STEP), IIT Kharagpur. ‘DuPont: The Power of set up their company up. The product can also be Then two units were Shunya’. called Ecozen Solutions, hybridised with an external which has a factory near power source. Pune to commercially Meant for horticulture produce the product. produce, the micro cold The name of the facility storage system has a is Ecofrost Technologies Solution – solar powered cold storage capacity of 5 metric tonnes (a subsidiary of Ecozen and a price varying between Uses uniquely designed thermal storage solutions). `5 to 6 lakh. The cost of methodology A target to manufacture the product is somewhat 20,000 cold storage units 30 to 40 per cent Can be carried on small trucks and cargo higher than a conventional agri produce vans in the next five years has cold storage of the same amounting to over Thermal storage unit provides 36 hour been set up for the Pune size. But the innovators backup unit. The innovators feel claim that the operational that the product has the `13,000cr Can be hybridised with external power cost is much lesser and it lost annually source. potential to be scaled breaks even in about two up to large warehouses, years of operation. The Has a capacity of five 5 metric tonnes transport refrigeration, only maintenance required Helps increase the shelf life of agricultural and other storage facilities, is cleaning of solar panels. produce especially as there would be additional upgrades in due course that would enhance the product. "Given the need and the demand, the innovation has a huge revenue generating potential. We are already creating strategic channels to market this product in a geography and customer- centric mode," says Pandey. He feels that the inclusion of the product in the existing National Horticulture mission and Jawaharlal Nehru National Solar mission will turn around the lives of farmers and eventually save a lot of food for the country.

november 2015 / maritime gateway 49 q&A DEVENDRA GUPTA, CEO Ecozen Solutions Cold Storage goes green The drive to improve energy efficiency in cold storage solutions has led Devendra Gupta and his firm to introduce EcoFrost Technologies to the Indian market. Its commercial success in the agricultural space will probably open the door to greater use in other segments such as large warehouses,transport refrigeration and other storage facilities. Devendra Gupta, the firm's chief executive elaborates on the product's uses and marketability in this interview with MG's Ritu Gupta

What made you design such a product? Ecozen has worked on improving energy efficiency of cold storage facilities. While working on solar pumping projects farmers asked us if we could deliver a solution for storage of their produce too. This made us think seriously on need of post- harvest management at first mile. We put the technological innovations we were doing for the cold storages and our understanding of solar to create the on-farm solar cooling systems. What has been the response to the product so far? How many of this product have you sold so far? We are getting overwhelming responses from our current customers. Our prospects are pretty excited about the innovation and the opportunity it presents. Our cumulative sales are in two digits now. We expect to move into three digits in next financial year. Did you find it problematic to market the product to the initial few customers? Even though the product was available for a select few, we have received a lot of inbound interest. Farming community feels the utility for such a product. We are just commencing our active sales and are scouting for partners who have

50 maritime gateway / november 2015 regional customer connects and deep understanding of agri-business. We are also in process of launching a lease model where in customers can take our product for lease at selected locations. A farmer can now use the product during his harvest season and just pay for that instead of paying for the whole product. We are also in process of raising our next round of funding to build the sales and marketing network and drive the lease model further. What is your market size? And who all have been your customers? There is a major thrust on building the first mile cold chain. The estimated requirement on the production side is close to 10 Lakh MT. This is just to fulfill the demand of organised perishable supply chain. The opportunity is much bigger than this. We have done pilots with a range of customers including farmers, uptime is delivered to the customers. institutions and CSRs to demonstrate Further, we see this technology the different business models and use In Kanpur the group making its headway into the reefer, cases. shipping and railways logistics How has been the response of the of farmers using the industry as well. customers so far? How do they find Onions are stored in open-air it beneficial? product has expressed storages conventionally. Often a lot The customers have expressed of onion is wasted in such storages. satisfaction. For example in Kanpur reduction in wastage of The waste may vary between 10- the group of farmers using the flowers from 30% to 2% 40 per cent from farmer to farmer. product has expressed reduction in Apart from the decrease in current wastage of flowers from 30 per cent of farm produce. It helps production due to erratic rainfall, to 2 per cent. It helps them from another reason was lack of enough selling their high value produce at them from selling their stored reserves from the previous crop throwaway prices by end of day. They to bridge the demand supply gap. The can now assess the demand and align high value produce at product can help in storing onion in better with the same. Constant source more effective manner ensuring the of power is a challenge for them throwaway prices by end of wastage is minimum. and Solar plus the thermal storage What is the cost of the product? The cost of the product price technology has helped them maintain day depends on the version and the their produce in good condition. commodity being stored. The payback Apart from India, are you trying of the product is close to 2-5 years to market the product in other depending upon the commodity being countries? 20’ container. It does not utilise the stored. We are getting lot of queries from standard energy storage technology What policy measures can help Africa, Middle East, South East Asia and prizes itself in the overall efficient market the product? and other neighbouring countries. energy management and control. Customer financing and extension We see great export potential in the The product has close to 10 patent of existing support schemes in the product. We are already shipping a pending technologies at its core. The solar and cold chain space by the unit to Vietnam and are in talks with combination of solar plus thermal government will make the product buyers from African countries. storage makes it a very attractive affordable for the small and medium What are the advantages of your solution in regions where grid size farmers. Another important product? In the wake of the recent connectivity is a challenge. There is aspect is the e-mandi which will onion price crisis, could you please a state-of-the-art mobile application enable farmers to directly sell to explain the uses of the product? which monitors and controls the the consumer or big supply chain Ecofrost is a truly portable, stand product, and when combined with companies. This will help drive alone, grid independent cooling the service model of the company demand and also help with the much device. It is the same size as that of a it ensures that exceptional system needed market linkage.

november 2015 / maritime gateway 51 cra go exports SPICES

Spice $2,440.8 million were exported in 2014–15, as against 8,17,250 tonnes p valued at $2267.67 million in 2013-14, u registering an increase of 9 per cent it in volume and 7 per cent in value. In 2014-15 the sector outperformed expectations in both volume and value terms. Target set for the period was 7,55,000 tonnes valued at $2,000 million, and the achievement is 118 The aroma of Indian spices can be traced in per cent in terms of volume and 122 per cent in Dollar terms. all parts of the world as the country leads in Even in the Q1 of the current production, consumption and export. But to financial year exports registered a 30 per cent increase in value terms to maintain the lead, stringent quality check and $626.81 million while volumes pegged at 215,215 tonnes. Thus the country incentives to exporters need to be maintained has actually achieved 28 per cent of its full year export target in Q1 at by Omer Ahmed Siddiqui $2,260 million set for the FY16. The continued upward trend in exports is said to be the result of robust market “ asala” is the most common at 4 to 5 per cent annually. Almost 75 promotion activities. Garlic, pepper, word used in Indian kitchens of the 109 varieties of spices listed small cardamom, fenugreek, nutmeg, Mthat are famous for lingering by the International Organization fennel, spice oils and oleoresins are appetizing aroma of spices. So, it is for Standardization (ISO) are grown said to be the key contributors to the no wonder that India has the largest here. Spice cultivation in India is export basket. domestic market for spices and traditionally done in small land During 2014-15, major export accounts for half of the global trade. holdings, with organic farming gaining markets for India were US, China, The country is second to none when prominence in recent times. Vietnam, the UAE, Malaysia, UK, it comes to production, consumption Commanding a formidable Germany, Saudi Arabia, Thailand and export of spices. India exports 15 position in the global trade, Indian and Sri Lanka. Exports to the US per cent of its spices produced, which exports are expected to touch $3 increased by 4.3 per cent to $410.3 contributes 48 per cent in volume billion by 2016-17. Domestic market million in 2014 – 15 from $393.3 and 42 per cent in value to the world is said to have grown annually at an million in 2013 – 14. spice trade. Processed spices account average 8.8 per cent in value terms Syrian crisis – boon to exporters for half of the total exports and their between 2009–10 and 2014–15. About Syria has been a key competitor to share in the exports has been growing 8,93,920 tonnes of spices, valued at India in export of spices, particularly

52 maritime gateway / november 2015 jeera. But due to the internal crisis Market linkages for the North East help in approving only export worthy Syria has not been able to meet the region need to be improved to increase seed spices. export market demand and Indian its reach to global markets. With these Service tax: The Spices Board exporters (most of which are from developments the Spice Board expects has increased service tax charged Gujarat) have seized this opportunity, the contribution of North East to the on testing fee from 12.36 per cent as a result Indian Jeera exports rose total export basket could be doubled in to 14 per cent and this is impacting from 50,000 tonnes in 2013-14 to five years. the bottom line of small exporters. 150,000 tonnes in 2014-15. Spices Parks are also being set up There has been an increase of `200- Spice parks at Kota in Rajasthan and Rae Barely 1000 per sample. The charge of most The Spices Board has expressed in UP. The Board has already set up expensive tests for pesticide residues plans to set up spice parks and quality Spices Park at Chhindwara in Madhya has increased from `4,000 to `4,560 testing laboratories in , Puttady in , Jodhpur and `5,000 to `5,700 for various Pradesh and to tap the in Rajasthan, Guna in Madhya categories. Further adding to it is the potential of North East region for Pradesh, Sivaganga in Tamil Nadu increased cost of production which is spice production in a big way. At and Guntur in Andhra Pradesh. ultimately pushing up the price of the present around 60,000 hectare in this Helping hand to farmers spices. On the other hand, increase part of the country is under spice The Spices Board has launched in spices production in Vietnam, cultivation and major spices available a slew of steps to promote spice Madagascar, China, Bangladesh are King Chilly (), Lakadong cultivation which include providing and Vietnam has caused a decline in turmeric (Meghalaya), ginger, garlic, financial assistance to farmers global prices, thus adversely impacting black pepper and large cardamom for irrigation, land development, India’s competitive position. ( and Assam). Logistics mechanisation, replanting, soil Incentives: Incentives for and transportation are the major conservation and organic farming exporting black pepper to developed challenges faced by the region on its of various spices. It will also give countries have been scrapped while path to become a major player in the financial aid to purchase irrigation and the same has been retained for spice export market in the country. farming equipment and tools. developing countries. The changes The Spices Board will soon set Challenges are part of the recent restructuring up a centre of excellence in large Quality control: A major of the foreign trade policy. Under the cardamom research, common facility constraint to the growth of Indian new Merchandise Export from India centre, training centre and quality spice exports is quality. For instance, Scheme (MEIS), the earlier 5 per cent testing lab in 25 acres of land in about 30 per cent of jeera exports are export incentive available for value- Arunachal Pradesh and a spice park said to be contaminated which will added pepper has been withdrawn and testing lab will be established in effect the sustained growth in exports. and replaced with 3 per cent incentive Meghalaya in 15 acres, to promote It has been reported that about 180 for raw pepper and 2 per cent benefit spice cultivation. export consignments to Europe were to value-added pepper to emerging Cardamom auction centres in rejected in 2011, however this number markets. This has resulted in increased Namsai and Kimin in Arunachal reduced to 16 consignments in 2014. exports to emerging markets like Pradesh are being planned. Study To maintain quality control the Spices Vietnam, which is the largest producer tours to farmers to South India for Board is setting up a `15 crore testing of black pepper, at the expense of exposure to primary processing of laboratory at the Kandla Port, the first consignments to major buyers like the spices will be planned. of its kind in Gujarat and seventh such US and European countries. The biggest advantage of North in the country with others located in It has been reported that since East region is that all the spices grown Mumbai, Cochin, Delhi, Chennai, the policy came into force in April, there are organic. Bulk of production Guntur and Tuticorin. It is expected to the export of pepper to Vietnam has in the area is consumed within India. be operational by December and will gone up. This is re-exported by the country after processing. In other words, Vietnam has benefited from policy change in India and could be selling the popular Malabar pepper to the US. Since the US and Europe are the largest and traditional importers Spice exports growing of spices, denial or reduction of incentives to these countries, particularly in the processed value- 2016-17 added form, will have an adverse 2013-14 2014-15 impact on the Indian spice industry. According to information provided by All India Spices Exporters' Forum, $2267.67 $817250 $2440.8 $893920 $3 around 80 items under spices category Million Tonnes Million Tonnes Billion have been affected as the incentives have been either reduced or withdrawn or raised illogically.

november 2015 / maritime gateway 53 q&A S A Mohan, COO Maini Materials movement Betting big on Indian market In this interview SA Mohan, Chief Operating Officer of Maini Materials Movement, talks in length about the company’s business verticals and its future plans by Itishree Samal environment. Being eco-friendly is Established in 1986, Maini Materials Movement (MMM), not only a social responsibility for the corporate, but has become a necessity a Maini Group company, is a leading brand in manufacturing of and also “Going Green” has been the material-handling equipments (MHE), logistics and in-campus fastest growing trends. As many are electric mobility solutions in India. The company is one of the opting for battery-operated vehicles (BOV) at their campuses, this is top-five companies in material handing equipments, and is driving the growth of this segment the only company in India to design and manufacture electric across industries from hospitality to buggies, offering eco-friendly in-campus mobility solutions to lifestyle sector. How is MMM placed in India in corporate and hospitality majors. electric buggy segment? With core competencies in precision engineering, material The market in India is highly unstructured. Players including handling, and provision of logistics, the company offers a Club car and Yamaha are present in comprehensive range of material handling equipment for golf kart segment, while in people floor transportation, loading, unloading, stacking, towing and movement segment, we are the market leaders. The only competition we face hauling, with a range consists of pallet trucks, platform trucks, is from China-manufactured buggies. dock-levelers, lift tables, scissor lifts, stackers, fork-lifts, reach We specialise in custom-make trucks, tow trucks and industrial tuggers. buggies for cargo, F&B, housekeeping, laundry, fire safety, mail transfers, etc. Maini Buggy today has more than 1,000 customers including How big is the material handling major vertical, and its contribution airports, hotels and resorts, realty, industry in India, and what growth in your overall revenue? hospitals, heritage sites, parks and prospects it has? Being one of the leading players zoos, educational, IT campuses, The material handling is a booming in material movement in the country, manufacturing facilities, SEZ’s, industry in India. Currently, the sector our material movement vertical government secretariats and defence is pegged at `1,500 crore and growing contributes majority of our revenue. institutions etc, across 25 different at a rate of 10-12 per cent year-on-year. We cater to different sectors such as markets. We offer passenger buggies The growth prospects are humongous manufacturing, logistics, ecommerce, in two, four, six, eight, 11 and 14 in the backdrop of growing pharma, automobiles etc. Around 80 seating options. construction, mining and ecommerce per cent of our revenue comes from Recently, we were awarded with sector. In India, the industry is material movement and the rest comes "Best Ancillary Services" at the dominated by players including Godrej from the electric boggy segment. India Hospitality Awards – West and Material Handling, KION Group Electric-mobility solutions is South 2015, at Kochi for outstanding and international players like Toyota considered to be the next big thing in contributions in enhancing ‘guest Material Handling, among others. In the backdrop of growing awareness of experience’ in hospitality sector. material handling, we are one of the eco-friendly mobility. What is driving What initiatives the company has top-five players in the country. the growth of “electric buggy” taken in electric-mobility division? Maini Materials has two division? For the first time in India, we major business verticals – material Zero-emission, zero-wastage and have launched “Wheel Chair Buggy movement and in-campus electric zero-pollution are the buzz words for People with Reduced Mobility" mobility solutions. Which is your when it comes to sustainability of (PRM). With a capacity for two PRM

54 maritime gateway / november 2015 with three escorts and 150 kg baggage, new products and solutions all the time. (Bommasanda & Chandapura). The this buggy is ergonomically designed In coming years, we plan to introduce units manufacture electric buggies, with special emphasis on passengers’ more solutions in the market. MHEs, and our Yale-Manini vehicles. safety, helping airports, hospitals, large Expansion-wise, we will follow a You have recently partnered with corporate and educational premises to two-pronged approach – expanding US brand Yale. How successful has be ‘disabled friendly’. our ground-support equipment been the partnership? Though electric buggies are best offerings and adding new buggies. Maini Materials has a strategic mobility option within a campus or We are venturing into comprehensive alliance with the US-based NACCO for short distances, still it has not ground support equipment (GSE) Materials Handling Group (NMHG) captured the fancy of many. What solutions for aviation sector. With for the sale of ‘Yale’ brand of challenges do you face? the need of transforming our airports counterbalance fork lift trucks, reach The challenge lies in tapping into to ‘Smart’ and ‘Green’ ones, these trucks, order pickers, very narrow aisle this latent demand which can only be solutions would facilitate airlines and equipment and the manufacture of the achieved through increased awareness airport operators in achieving higher RCF series and MR series in India. among the different users. We as a efficiency and optimum utilisation With Yale as a global partner, solution provider are focussed on of resources. We have also plans to we are powered to manufacture positioning electric vehicles as perfect introduce new Maini Buggy with European-designed forklift trucks and enhancement to hotels, resorts, zoos, futuristic features, revolutionising the warehouse equipment’s for the rapidly corporate campuses, railway stations, people movement industry. developing Indian market. Last year, government premises and many such In material-handling, we will focus we launched local manufacturing of unconventional spaces. more on fork-lift trucks and reach Yale Maini reach truck in India. This Going forward what’s your trucks segment in the coming years. is an extension to the unique offerings outlook? Is there any expansion plan How big is your manufacturing in the form of Yale – Maini range, designed in Europe and manufactured in the pipeline? facility? locally at our manufacturing units We strive to offer the right solutions We started manufacturing of here. This arrangement gives Yale and to the market and ensure that they MHE and electric buggies in the Maini the strength to offer European- work at the lowest total cost of year 1986. At present, we have two designed products to Indian customers ownership. We keep coming up with manufacturing facilities in Bengaluru at competitive price points.

november 2015 / maritime gateway 55 India’s premier maritime business magazine maritime A gateway event

LOOKING FOR THE LATEST UPDATES ON MARITIME TRADE ON THE EAST COAST OF INDIA? BLOCK YOUR DATES NOW! PRESENTING THE 4TH EDITION OF ECMBS

| THEME | EAST COAST HINTERLAND: WAITING TO BE SERVED A unique conference for people who own, move and handle cargo on the east coast of India

Business sessions will discuss policy frame work, 360 degrees of port development, manufacturing growth, present and future port / terminal infrastructure, cargo growth, corridors of growth and connectivity 350+ Attendees from India and Sub Continent

JANUARY 28-29, 2016 www.ecmbs.in HOTEL NOVOTEL VISAKHAPATNAM VARUN BEACH India’s premier maritime business magazine maritime A gateway event

LOOKING FOR THE LATEST UPDATES ON MARITIME TRADE ON THE EAST COAST OF INDIA? BLOCK YOUR DATES NOW! PRESENTING THE 4TH EDITION OF ECMBS

| THEME | EAST COAST HINTERLAND: WAITING TO BE SERVED A unique conference for people who own, move and handle cargo on the east coast of India

Business sessions will discuss policy frame work, 360 degrees of port development, manufacturing growth, present and future port / terminal infrastructure, cargo growth, corridors of growth and connectivity 350+ Attendees from India and Sub Continent

JANUARY 28-29, 2016 www.ecmbs.in HOTEL NOVOTEL VISAKHAPATNAM VARUN BEACH q&A C apt. Vivek S Anand, president MANSA

OT ime t open up the market “Indian shipping should be brought to the level of international shipping, where Indian ship owners are given the same level playing fields, whether in terms of fiscal and monetary incentives, access to domestic or international funding, taxation, regulatory limitations etc. Once that is achieved, the markets should be opened up so that competition drives quality and demand.”

by Omer Ahmed Siddiqui

How do you see shipping lines adapting to the current economic and trade scenario? Global trade has been slowing down over the last couple of quarters. The latest figure of Ministry of Commerce & Industry, has also showed a negative growth in exports and imports (17 per cent and 14 per cent respectively in Dollar terms) for the period of April-September 2015-16 compared to the same period last year. In fact, as per latest figures, last Month (September) exports have dived 24.4 per cent to $21.84 billion (down from $28.9 billion last year) & imports have shrunk by 25.4 per cent to $32.32 billion (down from $40.53 billion). With exports contracting for 10 months in a row and imports showing a similar trend has sent shipping lines scrambling to manage larger Inventory surplus and consolidate their services. The shipping industry, which has a close link with the global economy, is currently saddled with multiple pressures resulting from the slowdown of global trade. To survive, shipping companies are resorting to strategies like forging alliances, consolidation of resources, pulling out of non-profitable trade routes etc. Furthermore, they are looking to re-work their service patterns to

58 maritime gateway / november 2015 bring economies of scale and redesign future leaders for the Indian maritime our efforts. The ‘give’ is by sharing tonnage allocations across the service industry. It is a marriage between “age knowledge and the ‘take’ is by network. + international experience” on one providing materials and information You will be submitting a second hand to “young energy + domestic that our members, the stake holders white paper on the master plan for hunger to achieve and succeed” on & the trade find useful & beneficial to development of ports and terminals the other. It is to promote “out of their business. to the Shipping Ministry? Why has the box” thinking and then charting We plan to run programmes, MANSA taken up this initiative to out viable solutions for the benefit of seminars, conferences, publish submit white papers? MANSA Members and the trade in industry material and so on, to raise MANSA, being a recognised & general. It is to bring together “hands funds for our activities and endeavors. responsible trade body, has taken it on ground level working experience” What is the need for developing a upon themselves to have a holistic to “top management decision making” Standard Operating Procedure (SOP) approach and provide industry and form an invincible team that can for ports? How will it alter the way specific, professional alternatives take MANSA’s mandate forward, to port users’ function? and solutions to the trade in general. hopefully contribute in a meaningful This effort has a dual purpose, MANSA, being a non-profit manner to growth of India, in the primarily its objective is to bring all organisation, is focused towards the years to come. ports users on a common platform. needs of its members. Having an MANSA plans to partner with By detailing each process, the SOP exemplary overall knowledge base international trade bodies. Which of will simplify the day-to-day working and globally experienced professionals these bodies are on your list and how of a shipping agent or a shipping line. within their fold, it has sought to share will it benefit the industry? It can be accessed by ground level viable solutions with the government, Recently, MANSA has signed working staff to “correctly” execute from a neutral platform. MoU with APZI (Association Port their responsibilities, without having to The need for a 2nd White Paper of Zeebrugge Interests). We are wander from table to table or person arises from perceptible lack of vision also looking at other international to person, to find out what they are and planning for the maritime industry organizations, with whom synergies supposed to do in a given situation. as a whole. This paper will highlight can be chalked out to provide for This is a comprehensive document for conceivable benefits with certainty development of Indian maritime use by our members. of well thought-out, comprehensive industry. This platform is to exchange It provides transparency, common master plan for the development of thoughts, Best practices, adopt practices and above all uniformity in ports / terminals in the country, which Standard Operating Procedures, operating within a port. Each port will be viable and in synchronisation analyze data and use these tools to may have different procedures, but at with the growth of trade for the next formulate the India strategy. Whilst least every port user will “know how 50 to 100 years, instead of short term this would not only give MANSA an to do, what to do and when to do”. for 5-10 years plans which by the international profile, it will also bring Its secondary objective is to time are implemented might become in learning’s which can be applied educate the industry. This well irrelevant. The need of the hour is to the Indian model or way of doing researched SOP would help to to change from “evolving” and then business. improve the understanding of the dealing with the unprecedented This endeavor is also to provide academia, on how a shipping agent or problems to a planned approach a platform for MANSA members to shipping line or for that matter how where systematic and sustainable network, interact with international a port functions. Currently, there is a development synchronizes with the diaspora and enhance their own huge GAP between “what is taught” high growth potentials of our country. business at a global level. in shipping institutes and universities Unfortunately, because of the Among the objectives mentioned and actual procedures practiced in the sporadic / unplanned approach of at the 37th AGM was to improve the field. We AIM to share this SOP with many governments’s in the past, it financial resources of MANSA. How various academic institutions, to pass is suspected that excess maritime do you plan to go about it? on this knowledge and information to infrastructure would be created in the Well, as I mentioned earlier young students, who wish to take up country and that will lead to price MANSA is a non-profit organisation. shipping as a career option. Hopefully, war and eventually these long-term This endeavor is to basically take the returns from this would go to fund projects with huge investment will forward our mandate and for some of our other efforts. become financially unviable for the implementing our vision. In today’s As the government expands the investor/promoter. We hope to stem world, to survive with meager maritime infrastructure, do we have this waste of national resources and earnings from our annual membership qualified human resources to meet replace it with sustainable assured fee is difficult. We need to employ the upcoming demand for manpower? growth. professionals, we need to travel to Well, we may have “qualified” What is young MANSA Forum lobby, we need to research for putting human resources, but the question and who will benefit from it? our issues up to the authorities, we here is whether they are experienced The Young Mansa Forum need visibility and above all we need and have sufficient domain knowledge (YMF) is an attempt to “nurture the credibility. And so we came up with to be able to sustain in a international growth” of young Indian shipping a scheme, where we first give to the arena? For this we need the Industry professionals and produce world class, society and then ask them to fund professionals to step forward and

november 2015 / maritime gateway 59 q&A C apt. Vivek S Anand, president MANSA

take the opportunity to show case trying to implement the PCS (Port their talent and vast experience. Community System) & they have all Many of them/us do shy away from For coastal shipping to failed miserably. Were the current such responsibility and therefore, the government to just implement this one government needs to engage these flourish, for starters initiative, they would easily achieve people to have the right man in the 20 to 30 per cent improvement in the right place to do the right job. Cabottage laws must be basic transaction cost for the shippers Do you think partial relaxation abolished completely. and consignee’s, besides increasing the of cabotage is a step in the right efficiency levels by at least 40 to 50 per direction? Secondly, all regulatory cent. No, the partial relaxation is not All Indian ports should adopt going to help the shipping Industry. restrictions need to be optimised business process flow, along And just to clarify, I’m not suggesting with electronic information exchange that the maritime industry be opened removed. Thirdly, excise among stakeholders by using the to the international players, just like and Customs regulations latest IT processes. The PCS should that. What one is suggesting is that, be integrated to facilitate seamless Indian shipping should be brought to must be simplified. And last exchange of information between the level of international shipping, shipping lines/agents, shippers / where Indian ship owners are given but not the least, the Road consignee, freight forwarders / NVOs, the same level playing fields, whether Transporter’s Lobby should transporters, government agencies, in terms of fiscal and monetary banks, insurers, Customs, Excise, port incentives, access to domestic or be kept at bay. health, immigrations / police, coast international funding, taxation, guards, Indian Navy etc. regulatory limitations etc. Once that International port operators, have is achieved, the markets should be such systems in place for decades… opened up so that competition drives per cent” of their capacity. Contrary A well-integrated PCS will quality and demand. to what the general public may think improve competitive position of the It is also observed that the this is a very unhealthy situation. As ports in terms of value for money, Cabotage restrictions are also per international norms, ideally a port throughput and capacity, operational adversely affecting the growth of should not work more that 60-65 per costs, service levels, customer focus container terminals in the country. cent of its capacity. This would then and security. The Indian shipping fleet is inadequate not only reduce, but completely wipe The shipping and logistics to cater to the needs and on the out the waiting time for a ship, thus sector is still considered to be other hand international shipping allowing more international shipping male dominated. How can women is restricted, which in turn leads to companies to trade to /from India, participation be increased? limiting the growth of containerisation thereby reducing transaction costs and As a first, MANSA has taken a and the utilisation of the container promoting competition. lead in this matter of gender equality terminals. We need to get out of this For coastal shipping to flourish, and provided for participation by vicious cycle of “limiting our own for starters Cabotage laws must be women in its executive committee. natural growth” abolished completely. Secondly, all This is a changing trend and more Relaxation in Cabotage policy, for regulatory restrictions need to be and more women are participating in all cargoes and for all stake holders is removed. Thirdly, excise and Customs the shipping and logistics sector. For a key to prospective growth of trade regulations must be simplified. And last example, some of the international / to and from the country. India should but not the least, the road transporter’s multi national shipping lines have more not merely resort to liberalisation, but lobby should be kept at bay. than 10 per cent women employees we also need to liberalise our “way of EXIM bank has proposed setting and some of these women members, thinking”. up of Special Purpose Vehicles for hold a relatively strategic position in the Will setting up of non-major ship financing. Do you feel the model organization and leading their teams ports reduce waiting time for ships is feasible in the Indian scenario? effectively and efficiently. and boost coastal shipping? Apart Yes, it depends on modalities Government should relook some from the measures taken by the adopted by the EXIM Bank who has of the regulatory constraints for government what else can be done to access to such funding. the women in this sector, such as promote coastal shipping? Is there room for more restriction for women to enter the port Setting up of non-major ports automation and mechanisation areas should be removed with strict will provide additional infrastructure at Indian ports? What demands and prompt punishment for the illicit and yes, that could lead to reducing will this place on the skills of the activities. the waiting time for ships. However, workforce? Also, government and industry unless the “connectivity” to/from Well, this is one of the keys to our should take initiative to encourage ports, major or non-major, does success. women to select maritime industry not improve it will not boost trade. It is ironical, that for almost 20 as a career option by introducing Currently, many ports and terminals years now the various governments vocational training courses and other in country are working at “over 100 that have come and gone, have been such initiatives.

60 maritime gateway / november 2015 transloading kopt

deployed to move cargo to the Haldia Port,” Kahlon said at the sidelines of the conference. Two tugs, front end Boosting volumes loaders and pneumatic fenders will also be introduced once the facility is ready. The seminar on ‘Transloading as and revenues the future of bulk cargo handling in India’ was organised by the Bengal The success of implementing transloading at Kanika Chamber of Commerce to deliberate on the importance of transloading Sands and Sand Heads has benefitted both the port operations in India and its impact on the economic development of and the users by reducing congestion and enabling the country. Dr Vishwapati Trivedi, quicker movement of cargo. Chairman of the National Shipping Board, Mr Amitabh Verma, Chairman by Deepika Amirapu of the Inland Waterways Authority of India, Arup Roy Choudhury, former Chairman and Managing Director of NTPC, Dibyendu Bose, Group Director, Tata Steel were some of the speakers who highlighted on the upsides of transloading at ports that cannot boast of greater draft. Currently the power major NTPC does import fuel through Jindal for its power plant at Farakka through the Inland Waterway-1 that stretches from Haldia to Allahabad in Uttar Pradesh. Users of the Kolkata Port are favourable to experimenting with transloading as they consider it a solution to handling large bulk he Kolkata Port Trust plans to carriers at outer anchorages that could introduce and adopt a slew of bring about all round economies of measures to attract cargo to the scale. With India’s dependence on T T he port will slash its coal set to increase in the coming riverine port and arrest any diversion to the neighbouring ports in Odisha, charges by `100, bringing years, the necessity of shipping bulk Port Chairman RPS Kahlon said commodities in large vessels has during a transloading conference last down the fee per tonne to become a priority. month held in the port city. `250 from `350. A cap on A part of the facility for The port will slash its charges by transloading is expected to be ready `100, bringing down the fee per tonne transloading charges will by the end of 2015 and the port plans to `250 from `350. The other steps to utilise the facility immediately. include a cap on the transloading keep it below `1,000 per Once the facility is commissioned, charges to keep it below `1,000 per about 26,000 tonnes of cargo can tonne and mechanisation of berths to tonne and mechanisation be moved per day between Kanika improve efficiency to retain customers. of berths will improve Sands and the port. “The total cargo These measures, collectively, will from transloading will reach up to 25 help the port handle additional cargo efficiency. million tonnes in the next few years,” up to 6 million tonnes annually and Kahlon pointed. The other steps the improve its revenue collections as well. port is taking to address the bane of Come December 2015, the port will low draft is creation of floating storage begin transloading operations full time Jindal ITF to develop a transloading for mooring of POL cargo and the ferrying cargo from Kanika Sands facility for `250 crore. This will enable opening up of the Eden Channel to Haldia and Sand Heads to Haldia Panamax and Capesize vessels to that will make movement of cargo alternately every six months to ensure anchor and load cargo thereon on to easier, bringing dredging costs down round the clock movement of bulk daughter vessels. “We will press in substantially. cargo from the high seas to the docks. to service two transloaders that can KoPT is also in the process of Saddled perpetually by a low draft carry up to 7,000 tonnes of cargo constructing fully mechanised outer and silting problems, the port has each and three daughter vessels of terminals on the Hoogly river to partnered with infrastructure firm 20,000 tonnes capacity each shall be enhance transloading volume.

62 maritime gateway / november 2015 LOGISTICS MMLP AP gets its first The multimodal logistics park will have eight railway lines handling both inward and outward rakes, providing seamless connectivity to the hinterland by Mohammed Shareef MP

ontainer trade from the container handling and storage Visakhapatnam is set to surge facilities on 4 lakh sq. ft., besides a Cfurther as the Multimodal 50,000 sq. ft. temperature-controlled A t present, the MMLP Logistic Park being developed by warehouse. Container Corporation of India With the development of the 10 handles around 1,000 (CONCOR) is going to be fully acres, the Container Freight Station, operational in another one year. CFS at the MMLP was inaugurated boxes a month and it is Concor has completed the first phase in 2014, May. However the operation of the `400 crore worth project and of the same took a long time as the expected to grow double started its operation two months ago. Customs facilities were not operational At present the development on the till recently. With the inception of with the completion of the second phase is on and the entire Customs office at the park, it started project is expected to be completed the operation in July this year. second phase. It handles by the end of next year, according to At present MMLP handles around Concor. 1,000 boxes a month and it is expected commodities like steel, Once completed, the MMLP, to grow double with the completion Visakhapatnam, with its state-of-the- of the second phase. It handles cashew, agri, rice, granite, art facility would be first of its kind commodities like steel, cashew, agri, infrastructure facility available in the rice, granite etc. besides others. container trade and this is going to be The entire MMLP, once it is fully the first MMLP developed in the state completed, will have eight railway of Andhra Pradesh. lines handling both inward and according to sources from Concor. The logistics park is being built on outward rakes. As part of the first In the future, MMLP would 100 acres of land taken on lease from phase, four lines have already laid commence handling air cargo, bonded the Visakhapatnam Port Trust for and as part of the second phase, four trucking and also transshipment, three decades. In the first phase of the more lines are being added, and which according to concor officials. MMLP MMLP, Concor, developed, a terminal would give a boost to export and is located near the Visakhapatnam facility spreading around 10 acres with import trade as also domestic trade airport and which would give a better a cost of `30 crore. The facilities made by providing seamless connectivity prospect in handling air cargo. available in the first phase include for transport of cargo to hinterland, “We feel that there is a huge untapped potential at Visakhapatnam and hence this MMLP facility. Companies in the power, steel, pharma, aquaculture and agricultural sectors will be benefited significantly by this facility,” said a senior official from concor. This project also provides infrastructure and facilities for hinterland industrial units to base their warehousing. CONCOR has plans to develop many such mega Multi Modal Logistics Park across the country in the near future, he added. This is one of 13 MMLPs planned and being constructed by Concor across the country, in places like Jaipur, Raipur, and Chennai.

november 2015 / maritime gateway 63 S POrt kpcl golf championship

Sportsmanship and camaraderie Enthusiastic golfers from 12 countries played their best shot at the first edition of Krishnapatnam Golden Eagles Golf Championship.

rishnapatnam Port has embarked on a journey of excellence on Kan exciting new turf – with the Winners Krishnapatnam Port Golden Eagles Golf Championship! The port particularly narrowed Overall Winner down on Golf as it is the favourite Brijesh Parekh sport of most of the people in the Parekh Group maritime industry and offers a unique opportunity for the port to come 1st Runner Up together with its business partners and Biren Dey customers. Moreover, Asia is said to be Rawmet Commodities Pvt Ltd more connected with golf as compared to the western world. 2nd Runner Up This exclusive, by-invitation-only Aman Taragi tournament was held at Oxford Golf Global Energy Pvt Ltd and Country Club, Pune. The two day event organised on September 18 and instead of annually, 3rd Runner Up 19, kicked off with a pre-tournament during the final Takashi Fukuoka celebration that had performances by prize distribution! Mitshibishi Corporation India singer Shibani Kashyap and famed Stunning winged iPad magician Keelan Leyser from UK. trophies were Best Female Golfer At 6 am the next morning, unveiled to gasps enthusiastic golfers gathered at the Vilasini Reddy of appreciation Edifice Constructions lobby of the Hyatt Regency and and applause headed off to the golf course, which by the port’s Closest to Pin Award was the perfect setting for participants Managing Director, from 12 countries to tee-off for a Chaitanya Reddy C Sasidhar, and St Mary’s Group of Institutions memorable time of sportsmanship and Sharmila Nicollet. camaraderie! The Port’s Brand Ambassador, Sharmila Nicollet gave golfers a chance to compete against her formidable “Most of the key people in the maritime golfing skills in the “Outdrive the Pro” industry like playing Golf, so the KPCL challenge on hole – 1. “The Golden Eagles Hole” inspired Golden Eagles Golf Championship was golfers to try scoring a hole in one – a huge success and next year’s activity with the chance of driving away in a stunning BMW 3 series. could be more than a day with 200 The occasion also witnessed the guests playing for the championship!” says launch of the CVR Links golf course being developed by the port which will C Sasidhar, MD of KPCL. Excerpts from his interview. be the venue for the next years’ golf tournament. How did Krishnapatnam Port connected with the maritime industry The tournament was highly come to the decision to embrace golf liked playing golf. It is their favourite appreciated by the Port’s clients, as a sport to invest in and connect sport. That is one of the reasons we associates and partners – and they with your business activities? thought that we should invest in this called out to have it once in 6 months, We found that most of the people sport. The second reason is that this

64 maritime gateway / november 2015 links and we will have a rotational cup so that we will keep the cup as long as the tournament carries on. What further profiling of Krishnapatnam Port as an organisation that has embraced golf as part of their business will you adopt? You have already taken on board Sharmila Nicollet as your brand ambassador. Will there be any further financial support for both national and international players to promote the sport? Krishnapatnam Port is not looking at golf as the only sport. We also support volley ball and cricket. We have also conducted a small tournament for the fishermen near the port. Teams were created among the community and 140 kids were given temperature are conducive to playing proper jerseys and cricket kits. the game. In western countries when As golf is a rich man’s sport and the climate is cold it is not easy to play played by top management, it involves golf. Otherwise, in general there are a lot of networking. Sharmila Nicollet lot of benefits especially for the elderly will be our brand ambassador as she as there is no retirement age from this belongs to Bengaluru, which is our sport. So, the MDs and chairmen of hinterland. We will give preference to our maritime industry like to play players from our hinterland. this sport. And as we are on the east Will Krishnapatnam Port host coast, China and Singapore have good next year’s Krishnapatnam Port accessibility to our hinterland and Golden Eagle golf tournament at the connectivity. But it does not mean that CVR Links golf course? we do not have our focus on western Yes. We will. At our golf course, side, we do focus on it. we are planning to build a nice Now that the first Krishnapatnam marina. The course will also have Port Golden Eagle golf tournament a golf club and with yacht service. has been completed, what are Draft at the port is being designed to the next promotional golf related suit this. All these will surely make activities we can expect from our golf links as an attractive tourist Krishnapatnam Port? destination. Yes, we are very happy that What focus would you have on is one sport where one does not retire the KPCL Golden Eagles Golf the Good citizenship initiative? and can play till the age of 60s or 70s. Championship was successful. Now With the port building schools We found out that lot of key people we are forming a committee to for underprivileged children, can with 30-40 years of experience at the organize next year’s championship we expect other companies and higher echelons of marine industry on a bigger scale. As we see this as a organisations to follow your lead in are playing golf. So we introduced this year-on-year activity, we will progress this very noble initiative? golf championship. We are building a slowly and steadily. Therefore, next We are very passionate about golf course on port land, which would year’s activity could be more than Corporate Social Responsibility, be like any other private course where a day 200 guests playing for the especially with the Navaneetha Public people can come and play. championship! School, a school being shaped in a Asia has more connect with golf Krishnapatnam Port has started fantastic way for the underprivileged than the western world as a business the first real Links golf course children. We have put in criteria where tool. Does that mean Krishnapatnam in India. This course will be children of parents whose income is Port will focus its business more on initially only available to play for below `3000-4000 per month would be the Asian markets? Krishnapatnam Port team and your taken into this school. I will campaign Yes, Asians do play lot of golf as business relations. What kind of to encourage other corporates to follow one of their favourite sports. There other activities can we expect on this the same initiative, as I was inspired are a number of reasons behind golf course in the near future? from other organization. This is how it. One, there is ample availability The idea behind organizing this our country can grow by encouraging of land to build golf courses and Golden Eagle Championship is to future talent. I consider this as a noble most importantly the climate and eventually bring this golf cup to CVR initiative from KPCL.

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NOVEMBER 2015 / MARITIME GATEWAY 67