Adani Hazira Port Anotheranother Aceace Inin Thethe Packpack
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India’s premier maritime business magazine `100 DECEMBER 2015 WWW.MARITIMEGATEWAY.COM RNI NO: TELENG/2009/30633 POSTAL REGISTRATION NO: LII/RNP/HD/1137/2013-15 FUTURE SMELLS GOOD DATE OF PUBLICATION: 26/11/2015 DATE OF POSTING: 28/11/2015 – Leena Nair, Chairman, Coffee Board ADANI HAZIRA PORT ANOTHERANOTHER ACEACE ININ THETHE PACKPACK Hazira is one of the few ports where all the big three shipping lines – Maersk, MSC and CMA CGM have made a bee line. With rich hinterland and cargo movement growing by the day Hazira is on its way to occupy number two position among Adani ports 02 MARITIME GATEWAY / DECEMBER 2015 FROM THE EDITOR Waiting for reforms push The maritime industry continues to face slowing global trade. Though private serious challenges with weak global ports were able to increase their net demand. Though some bright spots income, it happened at a slower rate than appear here and there, majority of the last year. With slowing ocean volumes, sectors are struggling amid a wave of many ports appear unlikely to meet their Amidst all this new pressures combining with familiar targets for fiscal 2015-16. It is a different ones. story that terminal capacities continue to mayhem, Indian grow despite slowing cargo growth. The oil price collapse over the past maritime industry year is hitting the offshore vessel sector Amidst this gloomy business scenario, seriously needs a hard as demand falls for its services. some policy changes have begun to Dry bulk shipping continues to struggle take shape. Though it is too early to shake up along the bottom. Weak global trade assess the impact they may have on the pulls down container volumes. Some of industry, these proposed changes have the leading shipping lines released their certainly caused a stir. While decision results and they are not good. On top of like cabotage relaxation to ro-ro vessels, this, global economic growth remains ODC carriers and LNG vessels and sluggish and uncertain. Freight rates cargo support to Indian ships have are under constant pressure and major brought cheer to some, the idea of re- containerised freight indices continue to bidding the existing terminals is causing see sequential declines. furore. The government appears to be launching a series of policy reforms after Exports, which have declined for 11 the recent Bihar elections, signalling its months in a row, are a major policy intent to get moving again on economic worry, although the government has so changes. It appears that the government far done little beyond offering benefits is not going to wait till the Budget to a few industry segments. Exports to kick in reforms in various sectors. contracted 17.53 per cent to $21.35 Reforms must be meaningful to step billion in October, against $25.89 billion up investment in infrastructure, boost in October 2014. The decline in non-oil productivity and make the economy imports is more worrisome. What this more efficient. means is weaker economic activity and falling investments, putting a question Amidst all this mayhem, Indian mark on economic recovery. A proposal maritime industry seriously needs a to provide interest subsidy to exporters shake up – new business opportunities has been pending and the commerce and right policy measures – to lead it ministry has virtually no action plan to out of choppy waters. bolster trade in medium term. 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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 03 | DECEMBER 2015 CARGO RESERVATION: INDIAN SHIPPING 23 24 ADANI HAZIRA PORT MG POLL: Is this workable? cover STORY: Improve connectivity There are mixed responses on ANOTHER ACE and Infra the proposed rule on cargo Hazira is one of the Time and again the industry reservation to Indian flagged few ports where all IN THE PACK has voiced their concern about vessels. While Indian shipping the big three shipping poor hinterland connectivity and firms are hailing the move, lines – Maersk, MSC infrastructure at dry ports. international shipping firms are and CMA CGM – crying foul. have made a bee line. With rich hinterland and cargo movement growing by the day, 28 40 Hazira is on its way to POLICY: TARIFF CARGO: TEXTILES occupy number two T ariff remains bone of Respite in coastal shipping position among Adani ports. contention High road transport costs have The idea to deregulate tariff made the textile sector in Tamil regime by re-bidding existing Nadu uncompetitive not only terminals is creating a lot of in the domestic but also in the furore in the shipping industry. global market. The departure to INTERVIEWS coastal shipping as an economical mode of transport has helped the 32 industry stay afloat. 44 REGULATIONS: CABOTAGE LEENA NAIR, CHAIRMAN, COFFEE Board Partially Relaxed Future smells good The government makes Rising value added exports and domestic amendments to cabotage law consumption signals good growth. for special vehicles to encourage coastal shipping 46 RAMESH MahapaTRA, PRESIDENT, UTKAL 34 CHAMBER OF COMMErcE & INDUSTRY EXIM ‘Odisha is seeing a 20% growth in exports’ Stable government and new proactive industrial Are shipping costs policy make this state join the growth race. exorbitant? Exporters protest about exorbitant extra charges being 58 taken by shipping lines. 43 KOH CHONG HIN, GM-P ASIA ACIFIC (MARINE). E XPORT: coffee ZF ASIA PACIFIC PTE LTD Stagnant for long Skilled and Speedy Support 36 In spite of being the sixth largest ZF provides a complete line of heavy-duty ENNORE PORT: RO RO coffee producer in the world, transmissions for all kinds of commercial vessels. Betting to become a Ro-Ro India contributes only 4 per hub cent to global exports. India's contribution to the global market 64 Ennore Port seemed to be striking can be improved with suitable Praveen SOMANI, DOR IRECT , INLAND GROUP the iron while it is hot. Along government policies. “Demand for logistics parks is set to increase” with the cabotage relaxation on Inland Group’s Director Praveen Somani talks in costal Ro-Ro movement, the port length about the growing opportunities he sees in the has also introduced schemes that Indian logistics sector, especially in the maritime sector will incentivise car makers in and around the city to move even their local shipment via sea, hoping to PROFILE make a good business 38 48 Nafeesa MoloobhoY, managing partnER OF A.S. MoloobhoY & SONS Nafeesa sails her way to success Nafeesa Moloobhoy successfully anchored herself as an entrepreneur to reckon with.