Inland Waterways Will Guaranteed Transit Times Will Be More on Pick up Steam and More Investments Will Offer
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FROM THE EDITOR Be optimistic, but watchful on the variables his is the time of year for annual and Indonesia may be the frontlines to reckonings and predictions by benefit due to availability of cheap labour. Tindustry experts. There are many Amid a gloomy global economic outlook reasons to be optimistic about 2019. The and rising commercial trade tensions, the domestic economy will continue to do forecast for container transport demand will Southeast Asia better across the next 12 to 24 months, be reduced over the next few years. During providing conducive environment for 2019 and 2020, capacity growth in shipping will emerge as the companies to scale up operations. But the lines will be lower than demand growth, but new production depreciating Rupee will play the spoilsport carriers will face increases in costs due to making a rough impact on the businesses. stricter 2020 fuel standards. powerhouse, In India, governments at central and We may see further vessel-sharing especially for state level will be more willing to revisit agreements. Smaller and independent policies for the sake of promoting business. labour-intensive carriers will particularly be a big target for Infrastructure investments made so far will larger carriers. Shipping lines will strive start delivering results in later part of 2019. products such as to keep up with increased demand for The Indian growth story will continue to better service. Premium services, such as textiles, apparels, grow logistics sector. guaranteed loadings, faster unloadings, and footwear, and Coastal shipping and Inland waterways will guaranteed transit times will be more on pick up steam and more investments will offer. For instance, Maersk has worked on furniture. go into developing highways to improve being an end-to-end logistics provider and connectivity to the ports. Ease of doing more will follow suit. Technology will make business will be a major focus of the further inroads into the shipping industry as governments to invite foreign investments there are multiple developments underway and grow trade. by both established players and new startups. 2019 will be a turning point for Trade tensions between China and the US supply and demand balance in the tonnage. continue to escalate, slowing US GDP Still, fuel costs, trade discussions, disruptive growth to 2.75% for the year, but it will be entrants, and industry consolidation will strong enough to push oil prices higher than remain the big unknowns that can bring a current levels. China will move away from paradigm shift. being the world’s factory for goods towards being a consumption country. The ongoing To sum up, an exciting year ahead! trade war between the US and China has made importers realize that they MUST have an alternative to China. Southeast Asia will emerge as the new production R Ramprasad powerhouse, especially for labour-intensive Editor and Publisher products. 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Julian Michael Bevis Shardul Thacker Senior Director, Group Relations, South Asia Partner Navin Passey Feedback Managing Director, Wallem Shipmanagement (India) Pvt Ltd A.P.Moller-Maersk Mulla & Mulla & Craigie Blunt & Caroe Readers are advised to send all feedback and Capt Deepak Tewari Dhruv Kotak Chairman, Container Shipping Lines Association (CSLA) Director, JM Baxi Group comments to [email protected] CONTENTS VOLUME 11 | ISSUE 04 | JANUARY 2019 32 36 INLAND WATERWAYS TRANSSHIPMENT We are sailing, finally Quick passage for IWAI has revamped the inland Bangladesh exports waterways by installing ultra- Transhipment through Indian modern cranes, jetties and has ports can enable Bangladesh deployed barges that can sail in expedite its cargo movement, lesser draft, to ensure logistics provided the bottlenecks at land happens in the waterways round customs stations are resolved. the year. OUTLOOK 2019 INDUSTRY OUTLOOK 2019 POSITIVE STEVE FELDER SUNIL NAIR MD, (INDIA, SRI LANKA, CEO, SNOWMAN LOGISTICS LTD BANGLADESH, NEPAL, BHUTAN HARPREET SINGH MALHOTRA AFTER A AND MALDIVES), MAERSK LINE MANAGING DIRECTOR, TIGER CAPT. VIVEK ANAND LOGISTICS (I) PVT LTD IMMEDIATE PAST PRESIDENT OF CHALLENGING MANSA & VICE PRESIDENT, FILA CAPT SUNIL THAPAR CEO, ALLCARGO SHIPPING CO PVT LTD SHANTANU BHADKAMKAR ASHISH KUMAR GUPTA YEAR PRESIDENT, AMTOI MD, TM INTERNATIONAL RIZWAN SOOMAR LOGISTICS LTD CEO & MD FOR INDIAN 18 SUBCONTINENT REGION, NAFEESA MOLOOBHOY DP WORLD MANAGING DIRECTOR, A. S. COVER STORY MOLOOBHOY PVT. LTD. SAMIR SHAH, FORMER After a difficult and challenging 2018, industry forsees PRESIDENT, FFFAI PIROJSHAW SARKARI a further push in digitalisation, more initiatives from CEO, MAHINDRA LOGISTICS JAYYANNT LAPSIAA Government on ease-of-doing business and greater PRESIDENT, AILBIEA K SWAMINATHAN investment into logistics infrastructure. DIRECTOR -SERVICE BUSINESS, VIVEK KELE, BALMER LAWRIE & CO. LTD. DIRECTOR, TEAMGLOBAL INTERVIEWS SHAILESH GARG UMESH GROVER, MD, DREWRY MARITIME SERVICES SECRETARY GENERAL, CFSAI PRIVATE LIMITED 30 DELIVERING DEEP INTO THE HINTERLANDS SLS AMARAVATI REVIEW AJIT VENKATARAMAN, MD, APM TERMINALS 38 INLAND SERVICES SOUTH ASIA Global Logistics Hub: Destination Andhra Pradesh Initiatives being taken by formulating policies and developing infrastructure to reduce production and logistics cost for making Andhra Pradesh a logistics hub were detailed. 34 LOGISTICS SECTOR TO WITNESS GREATER GROWTH 40 S. RAMAKRISHNA, CHAIRMAN, FFFAI Building an Ecosystem for Global Logistics Hub Development of infrastructure and connectivity, formulation of logistics policies, skill development and need for promoting digitalisation was voiced by the panel members. OTHERS 44 08 Point Blank EXIM Growth, Cargo Transportation and Connectivity 10 Numbers & Graphs Shippers of major commodities from the state voiced their logistics concerns and improvements needed in infrastructure and connectivity 12 News were highlighted. 16 International News POINT BLANK Further escalation in The key challenge for trade restrictive measures Customs today is creating a by G20 nations remains a convergence of facilitation real threat. If we continue and enforcement. Leveraging along the current course, digitisation and technology the economic risks will for non-intrusive operations increase, with potential is vital for a data-empowered effects for growth, jobs and and digitally-enabled consumer prices around the Customs. WCO should be world. The WTO is doing proactive in harnessing all it can to de-escalate the Blockchain and big data.” situation.” - A B Pandey - Roberto Azevêdo Revenue Secretary Director General, WTO Import of cargo which are meant for consumption in the heartland of India, especially from the Far East, can now move in a very economical manner through waterways. This shall save cost and Kolkata Port will be an added advantage for these Maharashtra and imports.” Gujarat account