India's Premier Maritime Business Magazine Andhra Pradesh
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India’s premier maritime business magazine `100 AUGUST 2014 WWW.MARITIMEGATEWAY.COM RNI NO: APENG/2009/30633 POSTAL REGISTRATION NO: LII/RNP/HD/1137/2013-15 ‘We expect to do well with DATE OF PUBLICATION: 26/07/2014 all the positivity around us’ Capt BVJK Sharma JMD & CEO, JSW Infrastructure andhra pradesh SUNRISE AFTER BIFURCATION,STATE THE NEWLY CARVED STATE OF ANDHRA PRADESH SAILS ON A HOPE TO BOOST THE ECONOMY BY DEVELOPING THE COAST LINE INTO A MAJOR MARITIME HUB. INDUSTRIAL CORRIDORS FROM VIZAG TO CHENNAI WILL LINK THE PORT CITIES FUELLING GROWTH. IN ADDITION, MANUFACTURING AND INDUSTRIAL CLUSTERS BEING PLANNED WILL HELP THE STATE AUGMENT EXPORTS AND IMPROVE ITS FISCAL HEALTH. 02 maritime gateway / august 2014 OPENING REMARKS Editor-in-Chief and Publisher Ramprasad [email protected] Tone is set for Reforms Assistant Editor Deepika Amirapu [email protected] When images of Arun Jaitley holding the black Assistant Editor Itishree Samal [email protected] suitcase were being flashed on national television, I bet the shipping industry did not expect as many Sr Designer Vijay Masa goodies. But Jaitley in his speech almost pulled Designer Nagaraju N S out the rabbit out of the hat announcing sops and Marketing & Sales generous outlays for the ports and the logistics National Satish Shetti, Manager – Sales sectors. [email protected] – 099207 05534 Came close on the heels of budget, some quick East Nikhil Doshi, GM – Sales policy make overs from Ministry of Shipping. From [email protected] – 098369 96293 revamping Port Trust Boards to allowing Indian South & International Vinod G, Sr Manager – MarCom [email protected] – 099498 69349 Shipping companies owning foreign flagged vessels to relaxation of cabotage norms at major ports for empties, Gadkari’s laundry list Client Relations Madhukar – Manager indicates the shape of things to come. [email protected] – 093937 68383 We welcome budget announcements because after years of being taxed and sidelined, Ashok T – Marketing Executive [email protected] – 094918 05508 this sector has been recognized as a significant contributor to the nation’s development. The beauty of this budget lies in the fact that there is a little something for everybody. Digital Edition Wesley Rajiv It is perhaps for the first time in the last ten years that all wings of infrastructure have been accorded equal importance. If you listened closely to the Minister’s speech, he Subscribe to MG spoke of fast tracking the east and west freight corridors, speeding up critical railway lines, allocated `5,000 crore for the establishing of warehouses and developing select UBSCRIPTION 12 ISSUES `1,200 ONE YEAR S expressways for faster movement of goods and people. Phone : +91 (40) 2330 0061 / 2330 0626 e-mail : [email protected] Equal thrust was given to the write to : Gateway Media Pvt. Ltd., # 407, Fifth Floor, Pavani Plaza, Khairatabad, Hyderabad – 500 004, INDIA. It is perhaps for the energy sector where a number www.maritimegateway.com of announcements were made to first time in the last ten improve the health of the country’s Maritime Gateway is printed by R Ramprasad published by years that all wings of infrastructure. And all this is certainly R Ramprasad on behalf of Gateway Media Pvt Ltd, #407, 5th Floor, good news for the ports and the vessel Pavani Plaza, Khairatabad, Hyderabad – 500 004, Telangana, India and Printed at M/s Kala Jyothi Process Pvt Ltd, 1-1-60/5, infrastructure have been owners as better connectivity and RTC Cross Roads, Musheerabad, Hyderabad - 500 020. and accorded equal importance. power will boost industrial productivity Published at Gateway Media Pvt Ltd #407, 5th Floor, Pavani Plaza, and hopefully bolster exports. Khairatabad, Hyderabad – 500 004, Telangana, India Regd. Office: H.No. 8-2-293/82/A/379 & 379/A, 2nd Floor, If the previous National Democratic Alliance or NDA regime’s motive under Plot No. 379, Road No. 10, Jubilee Hills, Hyderabad - 500 033. Atal Behari Vajpayee was ‘India Shining’, Modi’s is no different. During the first CIN: U74900AP2007PTC054344 few weeks of his administration, when Modi asked his cabinet colleagues and Editor: R Ramprasad bureaucrats to turn up on time for work, many dismissed and labeled his ways Please note of functioning as seminary. However, two months later, when the budget was Views expressed in the articles are those of the writer(s) and may not be shared by the editor or members of the editorial board. announced and many files were seen being cleared, the skeptics had to eat crow and Unsolicited material will not be returned. admit Modi was getting his way through the lethargic corridors of power in Delhi. Copyright No material published here should be reproduced in any form But that said, we have to still wait and see how these reforms on paper are translated without prior written permission from Gateway Media. in to action. Modi’s man for Shipping, Nitin Gadkari is known to be a tough task Feedback master. The budget, they say, was primarily drafted to restore India’s financial Readers are advised to send all feedback and health. But in the same breath we say infrastructure needs to be improved too. The comments to [email protected] next few years would be crucial in determining whether or not Acche Din are here. EDITORIAL ADVISORY BOARD For now, we are not complaining! Capt Deepak Tewari S S Kulkarni Chairman, Container Shipping Secretary General, Indian Private Ports & Lines Association (CSLA) Terminals’ Association B B Pattanaik Capt Ram Ramchandran MD, Central Warehousing Former President, NISAA Corporation CONNECT Capt Sanjeev Rishi Ramprasad Anil Singh Advisor, Worlds Window Infrastructure & WITH MG Sr VP & MD, DP World Logistics Pvt Ltd Editor-in-Chief and Publisher [email protected] Subcontinent Joachim von der Heydt Jasjit Sethi Chairman, Bengal Tiger Line, Singapore Now you can read your favorite CEO, TCI Supply Chain Solution Capt Subhangshu Dutt magazine on the move. A Janardhana Rao Vice President, Institute of Chartered http://www.magzter.com/publishers/ MD, Indian Ports Association Shipbrokers, Singapore follow us on @maritimegateway Gateway-Media-Private-Limited august 2014 / maritime gateway 03 AUGUST 2014 VOLUME 6 ISSUE 11 RAIL BUDGET 2014-15 Rail Budget stresses upon infrastructure building ............................................................ 21 With a major focus on strengthening infrastructure, the Railway Budget 2014-15 has proposed FDI in railway infrastructure and PPP projects for cash strapped railways. ANALYSIS: DREWRY 2M What will it mean? ................................ 28 Out went the P3 and in came the 2M alliance with another vessel sharing agreement between the Danish and the Swiss container shipping lines. Maersk and MSC have just announced a mega vessel sharing agreement that will replace their failed P3 alliance early next year. Drewry analyses what this new alliance will mean for the fraternity. COVER STORY STEEL p. 22 Steel outlook set to improve in 2014 ....... 31 After bifurcation, the newly carved state of Andhra With the recovery of the automobile, construction and manufacturing industry, ANDHRA PRADESH Pradesh sails on a hope to boost the economy by optimism returns in the steel industry. The developing the coast line into a major maritime hub. industry is expected to improve in the year Industrial corridors from Vizag to Chennai will link the 2014. SUNRISE port cities fuelling growth. In addition, manufacturing and industrial clusters being planned will help the CAPACITIES STATE state augment exports and improve its fiscal health. East Coast Ports gear up to handle iron ore imports .............................................................47 BUDGET 2014-15 TECHNOLOGY: ROLLS-ROYCE MARINE INDIA GROWTH STORY: PORT OF HAMBURG Budget brings cheers ....................................17 Propelling Indian Shipbuilding Industry ..60 Blue Chip of Europe ...................................... 48 The Union Budget 2014-15 brings new Shipbuilding, in the early 19th and 20th Container traffic flows from baltic ports keep hopes for the Indian maritime and centuries was dominated by Europe. North the life blood flowing at Port of Hamburg with America and Japan later took over the baton shipbuilding industry. It has proposed ........ from the West in the 60s. Then, riding on....... impressive throughput growth year on year INTERVIEWS DREWRY REPORT Supply and demand scenario Europe-Mid East-Indian ubcontinent ....... 54 Gearing up for further growth .......................... 40 COLD STORAGE S S Mishra 'Huge scope ahead in South India'............. 56 'We Expect to do well Chairman with all the positivity Paradip Port OUTLOOK: DRY BULK around us' ..................32 PRESSURE EASES, Capt BVJK Sharma But overall improvement is JMD & CEO quite slow ....................................................... 58 JSW Infrastructure Poor connectivity EQUIPMENT: KONE CRANES limiting growth ........... 44 Pinning hope on future demand ................ 62 P C Parida Chairman Yesteryears: TRANSPORT New Mangalore Port Land based logistics .................................... 66 Getting the port back on track .............36 OTHERS T Krishna Babu Eyeing geener News in Brief ............................................ 06 Chairman pastures ....................... 52 Visakhapatnam Port Trust Numbers .................................................. 08 Derick Dias Chief Reprasentive Officer News ........................................................ 09