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RNI NO: TELENG/2009/30633 POSTAL REGISTRATION NO: HD/1137/2019-2021 DATE OF PUBLICATION: 01/08/2021 DATE OF POSTING: 05/08/2021 RIDING THE LCL BOOM VAISHNAV SHETTY EXECUTIVE DIRECTOR, ECU WORLDWIDE

LOGISTICS IN THE COMBAT AGAINST COVID-19 Logistics service providers have braved the pandemic and maintained the supply chain against all the odds, while exercising necessary precautions to ensure both medical supplies and essentials of life are delivered in-time Grain Pneumatic Ship Un-loader TCI Supply Chain Solutions Negative pressure conveying, small clearance volume fully enclosed conveying, no pollution ....enabling your Logistics Strategy from Design to Execution

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ARE INDIAN SEAFARERS BEING TARGETED?

India had recently launched an aggressive programme in the country to counter Covid pandemic and the impending third wave, with three of its own developed , , Covishield and . Most of the seafarers in India have been given Covaxin, a two-shot developed by , which is however, not yet approved by the World Health Organization (WHO). Citing this as the reason some of the shipping companies have denied permission for Indian seafarers who have received Covaxin. Of late, the All India Seafarer & General Workers Union has written a letter to the Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal alleging that China has not been allowing entry of ships to its ports with Indian crew on board since March 2021. The workers union has sought the central government’s help in resolving the ‘unofficial ban’ The unofficial imposed by China on vessels entering its ports with Indian seafarers. This is not the first instance as some Indian sailors faced a similar issue earlier in 2021 when China did not allow ban imposed two foreign ships with them onboard to berth at its port. by China has The unofficial ban imposed by China has affected about 20,000 Indian seafarers facing threat of affected about job loss, as companies are not recruiting them for the China-bound ships. 20,000 Indian China has clarified that the restrictions are not targeted on ships crewed by Indian seafarers, but seafarers. said that some measures are directed only to control the impending third wave of pandemic, and to ease the supply chain disruptions. The Chinese Ministry of Transportation confirmed recently that it was blocking crew changes for at least 30 days from certain crewing agencies and management companies, after positive cases of the virus were discovered among crewmembers coming ashore. However, the Maritime Association of Shipowners, Shipmanagers and Agents (MASSA), is in regular touch with the Indian Shipping Ministry regarding crew change challenges faced by Indian seafarers and is in dialogue with the concerned states to find a resolution to this stalemate. Abhijeet Sangle, Working President of the All India Seafarer and General Workers Union, claimed it to be China’s tactic to isolate Indian seafarers in order to provide better prospects to its sailors. The central government and the Director General of Shipping of India must deal with the issue seriously and sort it out with the Chinese counterparts, as 80 per cent of seafarers on various ships come from India and without them the shipping industry which is already witnessing several supply chain disruptions may get into troubled waters.

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Liebherr maritime cranes CONTENTS VOLUME 13 | ISSUE 05 | JULY-SEPTEMBER 2021

LOGISTICS IN THE COMBAT AGAINST COVID-19 12 Cover Story Logistics service providers have braved the 10 23 pandemic and maintained the supply chain MAJOR PORT AUTHORITY BILL 2020 LOGISTICS against all the odds, while exercising necessary Will it change the culture of Picking up the precautions to ensure both medical supplies and major ports? Gauntlet essentials of life are delivered in-time The new legislation is completely We have faced two waves of the Interviews silent about the operational pandemic, while in the first wave and financial efficiency and the entire country was caught the accountability of the board off-guard, but in the second wave members towards the performance. the response was stronger, wise There are no provisions for the and effective. accountability part.

25 Vaishnav Shetty Executive Director, ECU Worldwide

30 21 DEMURRAGE AND DETENTION SEAFARERS CHARGES Seafarers - A drag on the shippers The front line warriors The current supply chain disruption In spite of offering yeoman services is resulting in high detention and 29 during the pandemic to ensure the demurrage charges, which is an Amit Gupta supply chain remains unbroken, offshoot of a sudden surge in Managing Director, Suraj Informatics seafarers have been severely demand and port congestion. strained while performing their Others duties 27 NORTHEAST INDIA: Opening up trade and connectivity 32 CHITTAGONG PORT: Emerging out of congestion 34 EDIBLE OIL: Edible oil imports on slippery ground 36 FUTURE FUELS: Decarbonising ocean trade 39 PORTS: Shielding against natural calamities 41 TERMINALS: Terminals tussle for cargo

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 6

POINTNUMBERS BLANK & GRAPHS

“The positive externalities of GST “Given their huge potential such as unified market, removal advantages, there is a need for of cascading and improved Maharashtra to focus on biofuels competitiveness of goods and and alternate fuels. Their strategic services has helped spur economic use will enable domestic industry to growth taking us further on the enhance its competitiveness.” path to prosperity.” - Nitin Jairam Gadkari - Union Minister for Road Transport & Highways and Union Minister of Finance Micro, Small and Medium Enterprises Government of India

“Not unexpectedly – and as in freight markets – when there is a shortage the cost goes up and we now see shipping companies offering salaries 10-20% higher than the average market levels or providing a high joining bonus to seafarers.” - Henrik Jensen Managing Director, Danica Crewing Service “The Government aims at an export of 400 billion dollars in the current fiscal. This looks a little ambitious but certainly achievable. Industry and government should partner together to reach this “We have sufficient export orders and milestone.” so our utilisation levels will remain - Dr A Sakthivel close to 95% in the July-September President, FIEO period. We are waiting for domestic demand to pick up and see no reason for sluggishness in the coming months.” - V R Sharma Managing Director, Jindal Steel & Power

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Contact Us [email protected] .com/surajinformatics 91-22-40309800 www.surajinformatics.comJULY-SEPTEMBERtwitter.com/SurajSh69673290 2021 ∙ MARITIME GATEWAY MAJOR PORT AUTHORITY BILL 2020

WILL IT CHANGE THE CULTURE OF MAJOR PORTS?

The new legislation is completely silent about the operational and financial efficiency and the accountability of the board members towards the performance. There are no provisions for the accountability part. Clearly the new legislation needs to focus at this important aspect of the Major Port working

BY MILIND KULKARNI PH. D SCALAR, INDIAN MARITIME UNIVERSITY

Major Port, independent of any local or officers come from a background of The President of India gave his assent to State government. running a government department. Running a port and running any other the Major Port Authorities Bill 2020 on More autonomy 17th February 2021, and it became the government department is not the Major Port Authorities Act 2021. It has More autonomy is also given to these same. The role of an administrator of a repealed the Major Port Trust Act, 1963. members to enter in to contracts port is not only to control the port but necessary for the performance of its development. Often these officers Objectives of the new law its functions under the proposed lack the urge to develop the Major Port. For a dynamic industry like ports, legislation. They can make necessary There focus is more on administration, a legislation served for more than rule and regulations for the smooth ensuring recovery of revenue and 5 decades is in itself a surprise. The operation, development and planning of safe custody of the Major Port assets. objective of the new legislation is to give the Major Port. Another major deviation The appointment of these officers more autonomy to the major ports in is that the board has the authority to fix is normally for a short period of say India, decentralize the decision making the tariff for the port and it is no more 2-3 years. These officers do not have process, make it more professionally required to obtain approval from the shipping or commercial background. managed body. Besides the reduction in Central Government for the same. They lack the vision. number of sections from 134 to merely As per my opinion, the efforts made The government nominated 76 sections, the new act has reduced the to bring autonomy to the Major Ports is representatives ambiguity and overlapping provisions. commendable, in the today’s dynamic port culture, still the new regulations The other appointed members on the Master plan are inadequate to improve the working board are usually political appointees. The new Act has reduced the number of of the Major Port. They serve the board till the party appointing them is in power. The trade members of the board from 17-19 to 11-14. Constitution of board member These board members are entrusted representation on the board is also with the responsibilities such as to Though the number of board members myopic in their vision and usually utilize the lands, property and funds have been reduced by 5-6, still if one ensures their interests are safeguarded. as they may deem fit for the benefit of looks at the constitution of the board, What the government should have the Major port. They are also entrusted it is dominated by the officers from done in the new legislation is to bring with a job to create a master plan for the Central and State governments. These in more talent from the shipping and

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 10 port industry that are held responsible provisions for the accountability part. will also ensure some cargo movement for the improvement of the Major Ports. Clearly the new legislation has failed for the port. Thus the deal is a win-win Government should have looked at the to look at this important aspect of the situation for the port and the users. functioning of the some of the private Major port working. On similar lines the Kolkata Port, ports in India. About the commercial utilization because it deals with pulses and Competition between Government of the Major Port lands, it is pertinent food grain stuff, it had at least 6 to & Private ports to state that majority of the port land 8 old sheds, out of which, 2 the port is illegally occupied by squatters. authority repaired themselves. And in Usually the ports are required to look Evacuation of these squatters is legally a the remaining 2 they did an experiment after the ‘larger public interest’. Unlike big challenge. It is feared that whatever by floating an expression of interest, if the good old days when there were clear land is available with Major Ports somebody would take them, repair them limited ports and the demand for port that will land in the hands of people and use them for 5 years and pays the services was very high, the current having political Influence. rent. Surprisingly Glencore has taken scenario is exactly other way round. Syamaprasad Mookerjee Port has it and they have repaired the sheds Instead of ‘cargo looking for port’ it is taken some innovative initiatives for completely at their cost. They are paying Ports who are looking for cargo. There using the real estate available with the the port trust rent as they use the sheds. is a fierce competition of private ports. port trust. The port has a lot of space Thus, I believe that unless the The hinterlands are getting overlapped. in Haldia and it has been developing Central Government looks at the Major Due to rail and road network, often the around 1,50,000 sqm of area for Ports as commercial organizations and hinterland is shared by more than one commercial use. But in the meanwhile, runs them with commercial acumen, port. The days of monopoly of ports is a the port management realised that it any amount of legislative changes would thing of past. The ports are required to will be better if they could rope in their not change the culture of the Major be more ‘customer centric’; The most trade partners in the development ports. This is the very reason that the efficient port only will survive. process. So, they have allotted land private ports had started functioning Unfortunately, the new legislation is for 5 years lease and have given some long after the major ports had become completely silent about the operational discounts on the rent and have asked operational, but today the minor ports and financial efficiency and the the users to develop and use it. Around are overtaking the government ports accountability of the board members 30,000 sqm of space has already been in terms of throughput, operational towards the performance. There are no taken over by the users. Further, this efficiency and technology usage.

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 11 COVER STORY

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 12 LOGISTICS IN THE COMBAT AGAINST COVID-19

Logistics service providers have braved the pandemic and maintained the supply chain against all the odds, while exercising necessary precautions to ensure both medical supplies and essentials of life are delivered in-time

he global financial crisis during 2008 / 2009 saw the shipping industry go through a major crisis, driven by over capacity, low freight rates & persistent low returns on investment. This resulted in eight major carriers undergoing mergers & acquisitions and one going bankrupt, in a span of just four years between 2014 & 2017. Since 2018, the industry finally started recovering slowly while still witnessing a lot of volatility. Supply & demand was more balanced with a low new building order book. The situation had barely stabilised when the pandemic hit the globe during the T end of 2019 / beginning of 2020 & created unprecedented circumstances for the trade across the world. The shipping lines, on their part, kept servicing the trade with vessel calls, despite Indian exports being practically non-existent during the lockdown in the first half of 2020. Besides, the lines also independently offered extended free time on import containers and did all they could to keep the supply chains moving. From the end of June / beginning of July 2020 though, the situation changed all of a sudden. After months of lockdown, the US & Europe went on a buying spree and started importing big time from India, China & the Far East. At the same time, Indian imports dropped due to low consumer demand locally and certain restrictions on Imports from China. This created a major equipment imbalance as export demand for containers far outweighed the import supply. The pandemic thus distorted the demand & supply situation. The Indian trade which was always dominated by imports, saw a sudden surge in exports and a reduction in imports. During the third quarter of 2020 for instance, India’s exports in terms of volumes grew by 24 per cent while its imports reduced by 28 per cent compared to the same period in 2019. The excess of exports over imports continued thereafter too. As a result, the shipping lines, which earlier used to ship out empty containers from India, had to start repositioning empty containers into the country and move them inland to demand locations at a huge cost.

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 13 COVER STORY

This distortion in demand & supply, with its resultant impact on costs & rates, did not happen just in the case of India but in the case of the rest of the world too. Besides, this was unique not just to container shipping but to air freight as well. In fact, unlike in the case of sailings of container shipping lines, the number of international flights plunged due to the virus & air travel restrictions, thereby pushing some of the air freight business like i-phones, leather goods, etc., to sea freight, thus putting additional pressure on container shipping. Congestion at transhipment ports like Colombo & Singapore and in some of the major ports in China, Europe and the key gateway ports on the US West Coast like Los Angeles & Long Beach, further aggravated the situation some of the lines have also introduced facilitated by Maersk India were done on by increasing the turnaround time of new services while some of the others a zero-profit basis. vessels & containers, which eventually have made ad hoc calls to help Indian Similarly, HYUNDAI MERCHANT impacted the availability of boxes exports. New orders have also been MARINE (HMM) brought in 23 TEUs in Asian countries, including India. placed with the shipyards to help carrying Oxygen generators & Oxygen Hundreds of ships across the globe further beef up the fleet. Currently, just Cylinders from China into India at just were waiting for a week or even longer 0.8 pct of the container shipping fleet USD 1 per container. before they could berth. Currently is idle and that too due to the ships WAN HAI (India) donated around about 300 vessels are waiting to berth that have met with accidents or those 30,000 sets of PPE kits as well as 5 litres at approximately 100 ports all over the that have been undergoing repairs & of 75 qty of Oxygen concentrators to world. In view of the increased volumes maintenance. In other words, practically government hospitals and Covid centres coupled with Covid protocols, labour & all available vessels have been pressed across several Indian cities. trailer shortages, the terminals across into service. All this has therefore helped OCEAN NETWORK EXPRESS (ONE) the globe have been struggling to keep in significantly improving the space made "Free of Freight" transportation of the momentum going. North America & equipment situation and enabled empty ISO tank containers from Taiwan for instance, continues to face a 40 pct the Indian trade to meet its export & to Mundra for further usage towards equipment imbalance. In other words, import commitments. During the first supply of Oxygen. out of every 100 containers entering quarter of the current financial year for The NYK Group has procured 988 North America, just 40 move out. instance, India's merchandise exports oxygen cylinders and provided them Currently, about 55 pct of the container jumped by 16 pct to USD 82 billion, over free of charge to Tata Steel Rural fleet is either on water or stuck at the same period in the normal fiscal Development Society, a CSR arm of Tata various ports, as against the normal 2019-20 which preceded the Covid in Steel. The cylinders, which were flown average of approximately 30 pct. All this 2020-21. The previous record was USD to India were delivered to the state has resulted in the slower turnaround 90 billion in the fourth quarter of 2020- governments for distribution to various of boxes. The issue therefore has to do 21. The country's merchandise imports medical institutions. more with the limitations at terminals during April / June 2021 were USD 126 Eight Oxygen production units globally which has resulted in the billion, an increase of 108 pct over were transported free of charge by slow turnaround of ships & containers USD 60 billion in April / June 2020 & a CMA-CGM Air Cargo from Paris to New rather than any real shortage of ships decrease of 3 pct over USD 130 billion in Delhi. Containers of liquefied Oxygen & containers. Despite all this, the April / June 2019. were shipped from Qatar to India by shipping lines on their part though, have In the meanwhile, the shipping CMA-CGM. The Group also supported been continuing to reposition empty lines have also been assisting with the free shipment of 1,120 units of Oxygen containers into India at a huge cost to supply of medical aid into India. More cylinders from Indonesia to India which help meet the export demand. than 6,000 Oxygen concentrators, 500 were received by the Indian Red Cross At the same time, the lines have oxygen cylinders, 60 cryogenic oxygen Society for distribution to local hospitals not only deployed all the vessels at tanks and several medical supplies and communities in need. This was their disposal but have also chartered and ventilators were transported into followed a shipment of masks that CMA- additional tonnage from the market at the country by AP Moller – Maersk at CGM delivered to India from Singapore. exorbitantly high charter hire to make a nominal rate of USD 1 per container. KMTC too has taken the initiative them available to the trade. Besides, All commercial air freight shipments for the distribution of Korean masks

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 14 First Private party handled CFS in Kolkata @ SONAI & JJP. Strategically located near to Kolkata port to reduce the cost of transportation. 22096 Sq Mts. (SONAI) & 78150 Sq Mts. (JJP) of land to ease of the congestion. To provide hassle free and single window clearance service to Importers/Exporters.

Infrastructure Services Reach Stackers – 6 Nos. Import Handling Fork lift – 14 Nos of different handling capacity Export Handling Trailers – 115 Nos. LCL Shipment Flood lights/ High mast towers for round General Warehouse the clock operations Bonded Warehouse (Open & Closed) Hard stand field with Paver Blocked for Transportation uninterrupted operations even during Specialized Cargo handling heavy monsoons. Maintenance & Repair of Dry / Canteen facility & CC TV surveillance Reefer containers Fire fighting equipments Reefer Monitoring Service Hydra Crane of (12 Ton & 14 Ton respectively) Reefer plug points

Facilities

24 Hours and 365 Days uninterrupted Services Customs with EDI systems providing "Single window operating concept". Public & staff convenience/amenities like toilets, well equipped canteen, drinking water etc. available within premises. Round the Clock Security provided by Group 4 (G4S) Weighment facility. 24/7 Dock Office open for Dock operation. 48 Reefer container plug points. Ample Parking area for vehicles using facility. Hazardous Cargo Handling.

Accreditations :

Century Plyboards (I) Ltd. Logistics Office : Container Freight Station : Sonai Container Freight Station : JJP Address : Block 'B' & 'C', Sonai Yard, Address : 3, Hide Road, Besides FCI Godown, Address : P-15/1, Taratala Road, Jain Kunj, Hide Road, Khidderpore, Near Brace Bridge Rly Station, Khidderpore, Kolkata - 700088, West Bengal. Kolkata - 700088, West Bengal. Kolkata - 700088, West Bengal. Phone No. : (91) (33) 30217900 Phone No. : (91) (33) 71453100 Phone No. : (91) (33) 71453200 Email : [email protected] Email : [email protected] Email : [email protected] JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY COVER STORY

into India. These are just some of the port area and CFSs, Empty Yards. the several initiatives taken by JN Port is also distributing specially the shipping lines to assist in the made meals to the truck drivers who transportation of commercial cargo have been working tirelessly to keep & medical supplies for the country the operations going at the Centralized during these challenging times. Parking Plaza, GTI Holding Yard, NSICT Ports and terminals Holding Yard & Parking No.1. Also, keeping in view of the spread of novel JNPT moves medical supplies Coronavirus, JNPort converted its Multi Skill Training Centre at Bokadvira into The port joined the fight against a 120 bed COVID CARE Hospital and COVID-19 pandemic by contributing ambulance service and handed it over `16.40 Crore from its CSR fund along to the state authorities temporarily for with one day's salary to the ‘Prime the protection of the local community. The shipping lines have Minister’s Citizen Assistance and Relief JNPT also started a dedicated COVID continued to reposition in Emergency Situations Fund’ (PM Health Centre (DCHC) at JNPT Hospital CARES Fund) which was created to to cater to JNPT beneficiaries and the empty containers into India provide relief to Coronavirus (COVID-19) local community. JNPT was carrying at a huge cost to help meet pandemic affected people. out extensive community disinfectant During the lockdown period, the spraying and sanitation drive in all the export demand. They port took various measures to limit its nearby villages and also handed have been at the forefront in the impact of the outbreak while also over infra-red temperature guns to protecting the trade channel from any moving commercial cargo the Sarpanchs of these villages as disruption. The ‘Extended Gate Facility’ preventive measure. & medical supplies for commenced from 13th April 2020 COVID vaccination centre at JNPT resulting in a fundamental change in the country during these Hospital started functioning on 9th of the role of seaports in global supply March 2021. By noon of 12th of March challenging times. chains. Extended Port gate facility has 2021, in less than three days of its been made available for DPD containers operationalization, 275 beneficiaries - Sunil Vaswani at Mulund and Boisar. An additional including healthcare workers, frontline storage capacity has also been created Executive Director, Container Shipping workers, senior citizens and persons at CWC, Dronagiri node where cargo Lines Association (India) with co-morbidities, have already is being moved through En-block taken the vaccine at the centre. To movement. This further enhanced prioritize vaccination to seafarers, the seamless trade experience for efforts are being made to get the the traders at JNPort. JNP Container seafarers vaccinated before joining their Terminal (JNPCT) started a new initiative of sending rakes loaded with empty scheduled duties on board. containers to ICD Dahej for bringing Also during the month of May 2021, export cargo of from marshalling efforts in the fight against COVID-19, JNPT successfully executed the Hazira in return trip. ensured quick clearance of cargo. The The port carried out extensive handling of 327.632 MT of liquid medical port, on May 21st, handled the vessel 'MV Oxygen and medical accessories. The community disinfectant spraying and Lebu' loaded with 19.32 MT medical O2 sanitation drive in all its nearby villages port has been ensuring the movement from UAE. On May 28th, JNPT handled too to help put a strong fight against of vessels carrying Oxygen remains 3 containers brought in by Emirates COVID 19. JNPT has been regularly unhindered and is giving utmost shipping Agencies India Pvt Ltd from deploying all sanitary guidelines priority to such consignments. On May Ningbo, China with medical accessories issued for the safety of its workforce 10th, the port handled four containers which consisted of 2448 empty oxygen with regular fogging and spraying of carrying 80 metric tonnes of medical cylinders with a total weight of 49.36MT. all buses. Also the port has provided Oxygen in the cryogenic state in the This month, JNP-BMC Terminal handled Personal Protective Equipment (PPE) vessel MV GSF GISELLE of AXS service three medical grade liquid Oxygen filled to the pilots and has been carrying sent by the United Arab Emirates. On in cryogenic containers in the vessel out regular fogging and disinfecting of May 15th, the port handled 150.23 MT MV GULF BARAKAH of IEX service with all JNPT terminals. The port authority medical O2 consignment in 'MV Nagoya total quantity 60MT. JNPT has handled has provided accommodation for the Tower' brought from Kuwait via Jebel total 430.404 MT COVID related medical staff of terminals, drivers etc in the Ali, UAE. Despite the powerful tropical supplies (359.872 MT Medical grade Port township, started free Bus shuttle cyclone Tauktae in the Arabian Sea, on Oxygen & 70.532MT Medical accessories) services for the staff of essential May 18th the port handled 28.72 MTs of till date for distribution to hospitals for services stakeholders for movement in O2 consignment loaded from UAE and COVID treatment.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 16

COVER STORY

NMPT – controlling the impact Facilities made available for Covid In early 2020, Allcargo contributed Patients to the PM-CARES Fund to boost India’s The traffic throughput at New fight against the covid-19 pandemic. Mangalore Port Trust (NMPT) has The port has set up Covid-19 Help Desk Collaborated with Khushiyaan registered a decline of 6.76% during and Covid-19 wards at port hospital, Foundation in Delhi for distributing the current year 2020-21 by handling modified existing training centre as food in Bhiwandi, Thane and Navi 36.50 million tonnes as against 39.14 Covid-19 quarantine ward, donated 30 Mumbai to the underprivileged. In million tonnes handled during the Oxygen Dura Cylinders (Jumbo cylinders) a similar initiative, Allcargo made a corresponding period of last year. The to the district administration, handled monetary contribution to the ISKCON Port is exposed to the transmission of liquid medical Oxygen cylinders in 5 for food distribution to migrant COVID-19 at 2 points - either by Cruise Naval vessels on priority basis, opened labours from different locations Vessels (Passengers and crew members) a separate gate for fishermen and their outside Delhi. Avashya Foundation and the Cargo Vessels (crew members). vehicles from June 2021 till completion of monsoon season, massive RAT/RTPCR has been active in procuring medical Since March 7th 2020, the cruise vessels supplies and equipment for treating calling at the port have been suspended. test camps are being conducted, free vaccination camp is in progress. covid-19 patients. It provided PPE kits Although the movement of cargo vessels to healthcare workers in Sion and continues, precautionary measures Visakhapatnam Port Trust COVID Poddar Hospitals, Mumbai. are diligently taken to prevent the care center importation of the disease. K Rama Mohana Rao, Chairman, The port officials have identified 3 Visakhapatnam Port Trust inaugurated different points of contact where the a COVID Care Centre at Rajiv Gandhi disease can potentially spread to the Indoor Stadium. It initially has 63 beds inlanders. First, through the pilotage capacity. activity, where the pilot boards the inbound vessel at the anchorage. Strict Logistics service providers guidelines have been formulated and mandated upon the pilots to minimize Allcargo Logistics moves to meet the risk of transmission. Second, Oxygen shortage through the PHO survey, where the Allcargo and its group companies medical officer is susceptible to catch ECU Worldwide and Gati stepped up the disease during the survey. The efforts to expedite the distribution PHO is also undertaking precautionary of essential medical equipment like measures in this regard. Third, through Oxygen concentrators across India. the shore-pass availed by the crew Allcargo Chairman Shashi Kiran Shetty members. responded to a distress call from The port is providing thermal Maharashtra Health Minister Rajesh screening of workers, disinfecting Tope as the state was grappling with floors and hand railings with sodium oxygen shortage. To meet the rising hypochloride solution, indoor demand in the state, Allcargo shipped in sanitization with alcohol based sanitizers 500 Oxygen concentrators by flight from at work stations is ensured, disinfectant Singapore to Maharashtra on a not-for- tunnels are installed at the entrance of profit basis. The company also arranged the Port and hospital, regular fogging is for two million masks to be flown in done at Port colony and office premises, from Singapore for the Maharashtra Covid-19 Help Desk and Covid-19 wards at government with the provision for Port Hospital is set up, existing training shipping another one million masks centre is modified as Covid-19 hospital. arranged for Maharashtra from USA, China and other countries. Handling of cruise vessels Allcargo and its subsidiary ECU Around 5000 cruise passengers on 2 Worldwide responded to requests vessels were screened in the first week from the Delhi government and had of March 2020, even before release of 6,000 Oxygen cylinders flown in eight the SOP to handle COVID-19 outbreak chartered flights from Shanghai to for the international ships at the Major ease the oxygen supply situation in the Ports. The port managed to serve NCR region. An emergency response the cruise vessels, while successfully team was set up to arrange the charter de-risking COVID-19 exposure to aircraft and mobilise customs at origin personnel from various cruise to transport the Oxygen cylinders on a stakeholders as well as local population. purely not-for-profit basis.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 18 containers carrying oxygen cylinders from Pipavav port to ICD Khodiyar. Several Oxygen express trains through green corridor were moved across the country. In May-21, 147 Oxygen express (620 teus) completed their journey in service to the nation. Container terminal at Okhla was declared as Oxygen Rail Hub. Transport Corporation of India TCI is the only organization to have a strong and integrated multimodal network of road (12000 trucks), rail (1200+ full trails loaded last year ) and sea (6 own coastal shipping vessels). Thus far, 2 lakh tons of daily need items such as poultry, fruits, vegetables, grains, agro products, salt, cotton and timber have been carried in over 5000 containers through 12000+ trucks on the road. Likewise TCI coastal ships carried food grains, pulses, and medicines, vegetables to ports in Cochin, Mangalore, Tuticorin and Port Blair. A location like Andaman's is being majorly serviced by TCI ships. TCI Seaways and TCI Foundation has contributed 150 Oxygen Concentrators of 10 litres capacity to the people of Andaman & Nicobar Islands. Jasjit Sethi, CEO, TCI Supply Chain Solutions said, “It took 30 years for work from home to become an overnight CONCOR moves medical supplies across the country. In April-2020 MMLP sensation. Yet the basics and essentials needed the logistics team to work CONCOR has been supplying essential Visakhapatnam and DCT –Nagulapally from warehouses and hubs and on the commodities across the country keeping (CMCN) handled essential commodities vehicles and for deliveries. And the the supply chain operational during first like wheat during the lockdown. During supply chain stood strong throughout and second wave of the pandemic. The the same period it also moved essential supporting life and livelihoods.” Navratna PSU specially created health medical supplies (Medical Examination During the second wave of COVID-19, safety and environment department to Gloves& other medical equipment’s) TCI handled around 10,000 tonnes of enforce safety measures. from Mundra port to ICD Tughlakabad, Liquid Medical Oxygen (LMO) from the CONCOR helped the farmers around & ICD Kanakpura, Jaipur. source to its destination with total the country by sending gunny bags to To reduce physical contact customers visibility following all safety guidelines. different states so that post-harvesting were allowed to file their documents Movement of LMO is done in customized procurement was done smoothly. and make online payments. The GMS- vehicles with an oxygen bullet/capsule CONCOR also helped in delivering Cust (CONCOR) App enabled customers on it, equipped to store liquefied gases pulses and other food grains for helping to resolve grievances through instant at very low temperatures – as low as -183 people of Bihar. It contributed `30Cr alert/sms. to PM care Fund to help nation to fight To cater to exports and overcome degrees Celsius – hence accommodating Covid-19 Pandemic and CONCOR Air ltd the shortage of containers for exports more oxygen. These vehicles have been contributed `49.85 Cr to PM Care Fund. due to Covid-19 pandemic, CONCOR running round-the-clock during this CONCOR in May-2020 transported has reduced the rail freight charges crisis and some of these vehicles have approximately 70,800 MT Food grains for empty containers movement from been airlifted too. TCI is also delivering from Haryana & Punjab to various various gateway ports to CONCOR ICD’s/ vaccines through a national cold parts of the country thus playing an CFS/ Private sidings/CRT by 50% w.e.f chain network. It has reached out to important role in maintaining the 01/04/2021 to 31/03/2022. businesses and enabled the movement supply chain of essential commodities In April-21 CONCOR moved import of oxygen cylinders and concentrators.

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 19 COVER STORY

DB Schenker a smooth journey. Also, sharing information. It's now the responsibility of the logistics industries to eliminate DB Schenker in India is working with advance information by triggering EDI messages,” informs blind spots i.e. minimize the delay in an NGO to set up an oxygen plant in a Amar More, CEO, . information transfer from a few hours hospital in Delhi, having a total of 700 Kale Logistics Solutions to real-time. Economical IOT devices, beds. The capacity of the plant would be Om Logistics’ mission Oxygen API enabled data transfer, basic AI for 1200 liters per minute which will assist Om Logistics has helped Democracy analytics are all enablers of this real- to increase the ICU beds from 50 to 150, India Foundation deliver 5,000 Oxygen time information transfer. Oxygen beds from present 370 to 620, Concentrators to hospitals across India While information alone is the thereby freeing up Oxygen for additional till date and aims to systematically basis of decision making for different 250 beds. Recently, DB Schenker in the address the on-ground issues related to stakeholders, the logistics professionals UK supported India with an urgent the supply of oxygen under the Mission have an opportunity to own free-of-cost shipment of 375 Oxygen Oxygen initiative. Under this initiative, responsibility to enable these decisions concentrator units to the Indian Red so far 55,000 Oximeters have been faster. An example: if a bank currently Cross in Delhi. donated and `55 Crore funds were raised releases funds conditional to receipt of “At DB Schenker in India, the safety by Democracy Foundation India. They the original Shipping Bill from exporters, of employees is of utmost importance by are also working towards setting up logistics firms now have an opportunity taking care of their mental and physical oxygen generation plants. to become the 'guarantor' to banks and well-being in these unprecedented make banks release funds purely basis times. Our COVID taskforce with over BVC Ventures: Information flow a message from the Customs Broker, 60 volunteers are working relentlessly makes decision making faster suggests Bhavik Chinai, Group CEO, BVC to support the employees and their Covid-19 made shipper's value hierarchy Ventures. families with medical assistance & expectations from logistics evolved including the availability of beds, NICDC Logistics Data Services rapidly. From setting cost minimization Oxygen, diagnostics test including as a KPI for logistics, the KPI has Information on the movement and RTPCR, Oxygen concentrators for evolved to stability maximization location of cargo has always been a those in need and ambulance. COVID even at a higher cost. The role of crucial tool for exim community, be it insurance policy for employees has been logistics fundamentally remains the about trade commodities or medical implemented,” informs Vishal Sharma, same, excellent transfer of goods and supplies. During these unprecedented CEO – Cluster India and Indian Sub- times, NICDC Logistics Data Services, Continent, DB Schenker. NLDS team has been relentlessly Kale Logistics expedites tracking and tracing the EXIM digitization container movement. Movement of medical supplies has been pouring Kale Logistics through its community CONCOR helped the into India from across the globe, platforms and enterprise automation especially during the second wave systems extended all support to the farmers around the when the country was grappling with industry by way of free PoCs and trials. It country by sending gunny acute Oxygen shortage. Tracking of also championed the cause of paperless these medical consignments has trade through end-to-end digitization. bags to different states ensured they were delivered in-time e-services like electronic documentation so that post-harvesting to the people in need. Going forward, for freight forwarders and ground LDB is planning to extend its services handlers, electronic delivery order, procurement was done to non-containerised and domestic e-certificate of origin, e-manifest and smoothly. CONCOR also logistics in near future along with other e-services for advanced shipment providing solutions related to process information are supporting the industry helped in delivering automation and digitalization. by promoting e-trade. pulses and other food During a short span of 5 years, the “Vaccines and Medical supplies like grains for helping people LDB services are providing container PPE kits, needed to be transported in visibility services for complete 100% the shortest time possible. Vaccines of Bihar. of India's Container Volume and as on need temperature control and date has provided container tracking monitoring to ensure the efficacy, services for more than 39 million EXIM cargo community systems from Kale containers of India through a single ensure the temperatures are tracked window. and data is shared with the data loggers The role of logistics and an so that the end user is ensured the efficient, transparent supply chain has vaccine in the right condition. Real- once again been underscored in these time tracking and well-orchestrated unprecedented times of calamity, be it supply chain warranted these essential for moving essentials or medical aid.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 20 SEAFARERS

SEAFARERS – THE FRONT LINE S WARRIORS ince the onset of the pandemic last year the entire global society has been concerned about one thing - the supply chain should function seamlessly. While ashore the workers at the ports, CFS/ In spite of offering yeoman services during the pandemic to ICDs and the truck drivers were very much visible performing their duties, but ensure the supply chain remains unbroken, seafarers have faraway on the high seas the seafarers been severely strained while performing their duties remained the forgotten heroes, in spite of bearing all the hardships at the sea, slogging beyond their contract seafarers are routinely forced to work Many have been barred from entering tenures and many a times being denied over-contract. Some have worked ports due to virus restrictions, causing permission to sign-off at certain ports, on-board for over 17 months, far major disruption to international and even their entitlements. In fact, exceeding the 11-month limit mandated shipping lanes and the wellbeing of The International Transport Workers’ by international treaties. In 2020, the sea workers. COVID-19 and subsequent Federation (ITF) is reported to have ITF also reported a record number of restrictions on international borders helped seafarers recover nearly $45 abandonment cases to the International have made the process of switching million in owed wages (pay, bonuses) last Labour Organization, with the number crewmembers challenging. For instance, year while cases of ship abandonments of vessels listed on the international authorities in Singapore, Hong Kong and nearly doubled to a record high. abandonment database hitting a record Dubai had placed heavier restrictions The cost of repatriation flights high of 85 in 2020, up from 40 in 2019 on ships entering their ports following and governments’ travel and transit and 34 in 2018. spikes of COVID-19 in countries like India. restrictions introduced to combat As reported in various media, over The International Maritime the spread of Covid-19 resulted in the 200,000 seafarers worldwide remain Organisation (IMO), the maritime on-going ‘crew change crisis,’ where trapped on ships or are waiting for work. labour arm of the United Nations, has

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 21 SEAFARERS

announced that advanced seafarer India is the only country to conduct wellness centres will be provided at all online exams for seafarers the ports. In the Maritime Vision 2030, To ensure grooming of Indian seafarers the government has planned for raising continues unhampered, Former Union the number of seafarers from 2,40,000 Minister of State for Shipping (I/C) Shri to above five Lakh in the next 10 years. Mansukh Mandaviya launched online The share of the women seafarers will exit examination for the seafarers also be increased. last year. Seafarers, who are getting The Ministry of Ports, Shipping and training in different Maritime Training Waterways (PS&W) also coordinated Institutes under Directorate General of actively with the Ministry of Health Shipping, can now appear in the exam & Family Welfare to give priority to from the comfort of their homes in seafarers in COVID vaccination. this unprecedented time of COVID-19 Due to the recent intervention by pandemic. The Minister further the Ministry, Major Ports have started added that India is the only country Vaccination Centers. Six Major Ports in the world, which has started online which includes Mumbai Port Trust, examination for the seafarers and we Cochin Port Trust, Chennai Port Trust, are the only nation globally to have Visakhapatnam Port Trust, Kolkata developed facial biometric data-based Port Trust and Tuticorin Port Trust seafarer identity document (SID). have started vaccinating seafarers at raised red flags over the prolonged The new facial biometric technology their port hospital. Moreover, a private stress and fatigue of seafarers. Kitack is a marked improvement over the two hospital in Kerala has also been roped in Lim, Secretary General, IMO urged finger or iris-based biometric data, for vaccinating seafarers. governments to recognise seafarers as with modern security features. It will Seafaring Unions/Associations like key workers and resolve crew change make the identification of the SID MASSA, FOSMA and NUSI have also predicaments, which include travel and holder more reliable and efficient, while successfully organized special camps for visa restrictions, flights availability to protecting their dignity and privacy. vaccination. Apart from these measures, the port of calls and vaccination priority. India had made a presentation on this Ministry of PS&W has been making Indian seafarers have watched on technology at International Labour as many other nations have prioritised efforts to take State Governments on board for including seafarers in their Organization (ILO). The new card will vaccinating sea-going professionals, give a fool-proof identification to India’s most notably in China. Indian crewing State ‘priority’ list, and Kerala, Tamil Nadu and Goa has already provided such seafarers, which will facilitate their experts have been urging New Delhi movement, provide ease of getting jobs to get the nation’s seafarers jabbed status. India, one of the world’s largest and help in identifying them from any quicker or else risk losing their status location in the world. The new card is as one of the world’s top providers of source of maritime workers, supplies 15 in confirmation of the Convention No. crew to the international merchant percent or some 240,000 of the world’s 185 of the ILO on BSID. India ratified the fleet. Another reason to push for priority 1.6 million seafarers. “About 14 percent of Convention in October 2015. A record vaccination of Indian sailors is that Indian seafarers have been vaccinated of each SID issued will be maintained shipping employers opt to hire Filipino with at least a first dose. About one in a national database and its related and Indonesian crew over Indians. On percent have been fully vaccinated,” information will be internationally May 31, India’s Maritime Association of according to various reports. accessible. Shipowners Shipmanagers and Agents Extending a helping hand, in July The issuance of SID involves the (MASSA) announced a nationwide 2020, India’s Directorate General of collection of biometric and demographic vaccination drive for Indian seafarers. Shipping announced to allow foreign details of the seafarers, their verification Responding to the call, the then seafarers to sign off at Indian ports and Union Minister of State for Ports, then take flights out of the country. and then issuance of the card to them. Shipping and Waterways (I/C) and The ruling relates to cargo ships, not Nine data collection centres have been Chemicals & Fertilizers Shri Mansukh cruise vessels. “This move will not only set up in Mumbai, Kolkata, Chennai, Mandaviya announced that the seafaring help India in meeting its international Noida, Goa, New Mangalore, Kochi, Vizag industry should not get hampered due obligation to facilitate movement of and Kandla for issue of BSID. The total to non-vaccination and emphasized ship crew, but would also create job number of existing Indian seafarers that all efforts should be made to get the opportunities for Indian seafarers who will be required to be issued BSIDs seafarers vaccinated before joining their awaiting to join a vessel,” Satinder Pal is around 3,50,000. All the existing scheduled duties on board. Singh, Joint Secretary in the Shipping seafarers will be given BSID within the On the occasion of ‘Day of the Ministry said. Indian seafarers have next 2 years. After this, it is estimated Seafarer-2021,’ the minister of State been able to sign off at local ports since that around 15,000 new seafarers will be for Ports, Shipping and Waterways late April, 2020. issued BSIDs annually.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 22 LOGISTICS

PICKING UP THE

GAUNTLET spiking of rates to unprecedented levels. Rates to the US rose 175% and to Europe by 260 percent. Container shortage was 25 percent less than the normal capacity. There was no letting up in We have faced two waves of the pandemic, while in the first consumer demand. The SMEs have come wave the entire country was caught off-guard, but in the unstuck. Congestion in the supply chain second wave the response was stronger, wise and effective is expected to last till the end of this year. BY VIJAY KURUP In the meantime the Government has initiated a plethora of several measures to mitigate the disruption were taken to surmount the myriad engendered by Covid. problems that leapt, to impede the The GST council has reduced the economy? taxation on Covid relief materials. Logistics, the engine of the economy, The levy on oxygen generators, pulse too almost stalled, but crawled its oximeters, ventilators and other items way back. protocols has been lowered to 5% from 12% or 18%. amongst dockworkers meant slower Included in this list are Remdesivir and shipment processing times, rampant other drugs recommended by the health COVID-19 (Covid) had juddered economies congestion at the ports, delays in ministry. The council also decided of countries around the world to a pace shipment, skyrocketing freight rates, to waive the GST for black fungus rarely ever encountered before. People non-availability of empty containers, medicine, PPE kits and masks. were caught off guard, which disrupted vessels skipping port calls were now The government is in the process lives completely or nearly so. The supply topics in the office cafeteria. of formulating appropriate measures chain, which was already taut, was The Chennai Port is facing a 25 to boost services exports, which will stretched even more. How did India fare percent shortage of containers due be part of the upcoming foreign trade on the logistics front? What measures to supply and demand gap triggering policy. It would be a much needed succor

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 23 LOGISTICS

Airlifting of empty tankers to plants is being done to reduce the turnaround time. A Web and App based Oxygen Digital Tracking System (ODTS) has been launched to enable real time tracking of Oxygen movement in the country for real-time tracking of Oxygen movement The levy on oxygen in the country, from Plants to states. generators, pulse National Skill Development oximeters, ventilators Corporation (NSDC) and Logistics Sector Skill Council (LSSC) are training 2,500 and other items has additional drivers to drive oxygen been lowered to 5% tankers. Availability of skilled drivers is from 12% or 18%. essential to ensure uninterrupted and safe transportation of oxygen. In May, JNPT handled 327.632 MT of liquid medical oxygen and medical accessories. The port had ensured uninterrupted movement of vessels carrying oxygen by giving priority to such consignments. A total of 278.272 MT liquid oxygen and 49.36 MT medical accessories have been handled at the port for distribution to hospitals for COVID treatment. Port Chairpersons for the exporters who were looking for Corporation of India Limited (DFCCIL) have been asked to personally supervise some boost from the government, for has set up an oxygen generation plant logistic operations in coordination FY20 and FY21 under the Service Exports with a capacity of 500 liters per minute with Customs and other authorities from India Scheme (SEIS). (LPM) in the Northern Railway hospital. for expeditious movement of these In view of the pandemic situation, DFCCIL is also offering telemedicine shipments. the Directorate General of Foreign facilities for workers at its sites. The Ministry of Ports, Shipping Trade (DGFT) has decided that Regional The Railways Ministry is gearing and Waterways has directed all Major Authorities of DGFT will not insist up to transport Liquid Medical Oxygen Ports of India, including the Kamarajar on valid RCMC (Registration Cum (LMO) and oxygen cylinders across the Port Limited, to waive-off all charges Membership Certificate), where it key corridors. To ensure expeditious levied by Major Port Trusts (including has expired on or before 31st March, movement of oxygen across the country, vessel related charges, storage charges 2021, till 30th September, 2021. RCMC a green corridor was created for etc.) and accord highest priority in (Registration Cum Membership movement of oxygen express trains. the berthing sequence to the vessels Certificate) in DGFT is a membership Railways are being used for long carrying oxygen related consignments. certificate issued for 5 years by Export distance transport of tankers through The movement of the vessels from Promotion Councils or Commodity Roll on – Roll off service. So far, Indian berthing to departure is being Boards of India. This certificate is issued Railways have delivered in excess of monitored. The dispatch of cargo rom as a proof that a particular exporter is 4200 MT of LMO in more than 268 the port is also being scanned. registered with the council. tankers to various states across the The Suez incident was not Covid The Office of the Principal country. More than 68 Oxygen Expresses related, but Yantian was. The proportion Commissioner of Customs (Imports) have already completed their journey. of vessels affected because of the permitted filing of amendments and Container Corporation of India Yantian terminal closure, would far waiver of late fee in a bill of entry, by Ltd (Concor) had extended the 50 per exceed the Suez incident. Can one sending email to the specified officer in cent rebate in rail freight tariff for discount such incidents from happening charge. The permission was to minimize movement of empty dry and reefer in future? The answer, perhaps, is ‘no’. physical contact in this period. containers between gateway ports However what is definite is that the The logistics fraternity too was not and the firm’s inland container depots, Indian logistics response to the calamity to be left behind. It collectively rose to container rail terminals and private would be stronger, wiser and more the occasion in their battle against the sidings till 31 March 2022. The rebate effective. Shashi Kiran Shetty, Founder pandemic. They closed ranks against a for inland haulage movements would and Chairman of Allcargo Logistics, had merciless foe to assuage the threatened be a substantial relief in face of soaring reportedly stated, that the pandemic disruption in the supply chain. ocean freight charged by the shipping had enhanced their operational The Dedicated Freight Corridor lines. efficiencies.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 24 INTERVIEW

You have been instrumental in developing proprietary tech- RIDING THE tools at ECU Worldwide. What technologies have you developed and what efficiencies did they bring LCL BOOM into the system? We develop our proprietary digital tools, such as ECU360, by strictly adhering to The LCL movements across the globe have grown in the pandemic the core ethos of our group - customer- phase as a result of vessel space crunch and e-com boom. We centricity. Agile compliant software feel we’re in one of the most exciting businesses today, shares development enables us to innovate new features based on an in-depth Vaishnav Shetty, Executive Director, ECU Worldwide understanding of evolving customer demands. Moreover, customers across the globe trust the digital platform's What is the significance of ECU backbone, ECU Worldwide's decades-old Worldwide in the portfolio of logistics experience and infrastructure, Allcargo Logistics? It has also been the company that for superior visibility and service ECU Worldwide is the wholly owned pushed the envelope in terms of digital efficiency. Our focus from these projects subsidiary of Allcargo, present in innovation within Allcargo portfolio. is how can we give even the smallest over 160 countries. It contributes to Starting with our proprietary ERP customer the best possible customer a large portion of Allcargo’s revenue that we built with TCS which is now service through enhanced visibility, and also makes Allcargo India’s most present in more than 80 countries, intelligence & efficiency- which in the geographically diverse company. The the company now is investing heavily past may have been reserved for the company has been a true turn around into automation, data science and our biggest clients. This helps enable the success story from the time it was customer applications like our flagship productivity for the customers and acquired in 2005 to now being the 360 product - keeping in mind the ourselves, and allows us to be a more world’s largest LCL player and one of goal of driving utmost reliability in strategic partner to our clients. In some the world’s top 20 NVOs in terms of service and gold-standard customer of our most advanced markets we have a container volumes. satisfaction. digital adoption rate of well over 60%.

VAISHNAV SHETTY EXECUTIVE DIRECTOR, ECU WORLDWIDE

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 25 INTERVIEW

most exciting businesses today. The LCL volume has increased mainly in the China-to-south-Asia pacific route. LCL movement from Europe to the US continues despite a huge increase in the freight rate. The trend will sustain, as the stakeholders in ocean freight have accepted the new normal scenario. Why is it important for the logistics industry to adopt digitization and what do you foresee in the near future? Reducing inefficiencies and instilling much-needed agility in the logistics industry are key methods of increasing value for businesses. To unlock this value, the adoption of systemic digitization is critical, and we’ve observed the pandemic as being the catalyst in integrating digital By digitally enabling processes framework to facilitate efficient service technologies into the supply chain, using platforms such as ECU360 and delivery. Leveraging advanced digital facilitating the seamless movement enhanced integration capabilities such tools, we are aggressively boosting of cargo with improved visibility. The as APIs, we can offer customers reduced our competencies in offering superior way ECU360 is helping us offer our turnaround times and boost customer customer satisfaction. customers transparency in tariffs satisfaction. A digital-first approach The roll-out of ECU360 is aimed at and shipping schedules as well as helps us analyze data with precision, helping our mid and small-sized freight unparalleled service efficiency, it's enabling us to take smarter and more forwarders in India to leverage the evident that digitization will create a effective decisions for the benefit of end to end global infrastructure and strong foundation for achieving superb our customers. Customers are then achieve speed, agility, cost-effectiveness customer centricity even in these empowered to grow their business and business growth with instant challenging times. and optimize operational efficiency quotation and real-time pricing. With Digitization also adds to the by leveraging the innovative features several beneficial features such as resiliency of a supply chain. Lessons of ECU360. Our customer satisfaction door-to-door rates in over 57 countries, learned by businesses from the survey scores are over 90%. .SB file automation, cross trade & KPI pandemic include the need to heavily As we started with the customer functionalities, etc. Considering the invest in digitization in order to shield facing projects we also realized impact of the pandemic, companies their supply chain operations from the immense potential of enabling across the globe are increasingly any adverse impact in future. In fact, operational efficiency - therefore we switching to digitally enabled service if we look at things from a nation-wide took on the projects of automation & offerings. The Indian logistics industry perspective, investment into digitization data science that will help enhance our is also gradually transitioning to a can help India bolster its position as a operational productivity, turnaround digitalized operational framework. global logistics and manufacturing hub. ECU360 also enables the use of APIs times & quality of service. These projects The current empty container across all our key products like quote, are showing very positive outcomes - as shortage for exports and rising booking, tracking, sailing & invoices. The we believe data centricity & seamless freight rates – how are these power of APIs is yet to be seen in a big communication is very core to the things impacting the exporters and future of our industry. way in logistics but it has transformed how are you dealing with these industries across the world and we see it How will ECU360 help restructure issues? as a big opportunity. digitization and automation in the One of the fundamental benefits of Indian logistics space? And how As a global LCL cargo consolidation working with ECU Worldwide is its will it be instrumental in the global leader, going forward, what are the decades long legacy as a prominent trade scenario? trends that will drive the demand freight forwarder and LCL consolidator. for LCL/FCL cargo movement? Being a technology-inspired globally Therefore, we maintain long-term renowned multi-modal logistics The LCL movements across the globe contracts with trusted carriers that, solutions provider, we are focused have grown in the pandemic phase despite container shortages and rising on embedding advanced digital as a result of vessel space crunch and freight rates, ensure space for our technologies into the operational e-com boom. We feel we’re in one of the clients.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 26 NORTHEAST INDIA

OPENING UP TRADE AND CONNECTIVITY

The logistics cost of north-eastern states has been 5-6% more than other states having access to the ocean, due to poor infrastructure.

international market preventing us and indirectly affected agriculture from going for capacity expansion. It is and its allied sector in the Northeast. increasingly becoming difficult for us The tourism sector is one of the most to penetrate new markets," said Arun underutilized sectors of the region, and Shukla, a functionary of Engineering poor connectivity has been one of the Having been under developed for Export Promotion Council India from main reasons. decades due to lack of infrastructure, Himachal Pradesh. The Export Preparedness Index-2020 north-east India has now become the The exports from the north-eastern released recently by NITI Aayog fulcrum of India’s act east policy as the States of India during the year 2018-19 indicates that the north-eastern states government is going full throttle to was to the tune of `1323.39 crores over are among the least prepared states in improve connectivity and reduce the the previous year which can be further India to expand their export footprint. logistics cost for the region. Industries increased with the help of focused The index ranks the states and Union in the region have been seeking freight export promotion programmes, said Territories on a range of parameters subsidies from the government as the Director General of EPCH (Export that are crucial for evaluation of the logistics cost for the landlocked states Promotional Council for Handicrafts), strength and weaknesses of their like Uttaranchal, Himachal or Assam is Rakesh Kumar. existing export ecosystem. Assam ranks 5-6% higher as compared to other states The agriculture sector alone ninth among the eleven 'Landlocked in the country. is employing 70% of the region’s States' with export preparedness score "Being away from the sea ports we population. However, the total of 22.81 while Rajasthan tops the list in are competing with companies in the production constitutes just 1.5% of this category with a score of 62.59. coastal states. The high freight cost the country’s food grain production. Among the 'Himalayan States' lowers our overall profit margins in the The lack of connectivity has directly Uttrakhand is the best performing State

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 27 NORTHEAST INDIA

with an overall score of 48.11 followed by The minister added that currently Tripura with 40.79. Manipur is the least only pineapple and jackfruit have been performing state with a score of 19.40. Industries in the region sent in view of the pandemic. "But, Even though the region is showcased to paddy, lemon, cashew nut, dragon be at the centre of India's Act East Policy have been seeking freight fruit and Kashmiri Apple Ber are the poor indices of export performance subsidies from the also produced in the state and their of the States in the region show that government as the logistics popularity is also good outside. So, there is complete disconnect of the cost for the landlocked special focus will be given to the export policy with ground realities. of such produce next time. states like Uttaranchal, In a major step towards harnessing Connectivity challenges Himachal or Assam is 5-6% the export potential of agricultural The biggest problem the region is facing higher as compared to and processed food products from in developing infrastructure is the north-eastern region, a shipment of 1.2 absence of proper land records. It makes other states in the country. metric tonne (MT) of fresh jackfruit was land acquisition difficult for authority, exported from Tripura to London in May thus creating unnecessary hurdles in 2021. developing infrastructure. The poor Recently, the first consignment land records allow anyone to claim The smooth connectivity in the of ‘red rice’ was sent to the USA from compensation and becomes a source of region will allow north-eastern states Assam. Iron rich ‘red rice’ is grown in corruption. This increases the cost many to export orchids, flowers, fruits, Brahmaputra valley of Assam, without folds. The best example is the Kaladan spices, herbs, and oil to countries like the use of any chemical fertilizer. The Multimodal project. Started more than Bangladesh, Myanmar, and beyond. rice variety is referred to as ‘Bao-dhaan’, a decade ago in 2008, the project is The north-eastern region, known for its which is an integral part of Assamese still far away from completion. Apart natural herbs, organic spices, and tea, food. from the ongoing Covid-19 pandemic, has a vast international market. In April 2020, 30.02 metric tonnes other factors like hilly terrain, land Tripura has a huge potential in of grapes, 12.006 metric tonnes of acquisition, and militancy have organic spices, biofuel, eco-tourism, pomegranates, 6.004 metric tonnes of contributed to the delay. rubber, tea and is known for its food oranges and 36.023 metric tonnes of Bridging connectivity processing and sericulture industries. ginger were exported by India, via the Tripura is blessed with the best climate Sutarkandi land customs station (LCS) in The Maitri-Setu over River Feni connects for aquaculture and has immense Karimganj district. Sabroom district of Tripura to Ramgarh fisheries’ potential, yet to be utilized. The Agricultural and Processed Food in Bangladesh. It is one of the fastest It will enhance north-eastern states’ Products Export Development Authority land routes to connect the landlocked economic cooperation with southeast (APEDA) has shown interest in taking northeast region to Chittagong Port nations and ASEAN. Currently, the goods on a number of market development via Sabroom. It makes Agartala one of from Agartala travel 1600 km through initiatives in the region. The the cities closest to the International the Siliguri corridor to reach Kolkata initiatives will stress on infrastructure seaport of Chittagong. The bridge is in instead of 450 km through Bangladesh. development, capacity building, line with the ‘HIRA’ (highway, Internet, Kisan Rail strengthening supply chain as well as railway, and airway) developmental improving quality. model for the North East. Providing the much needed connectivity, APEDA Chairman Dr M Angamuthu Recently, Bangladesh Inland Water the first Kisan Rail from the North- said, the practice of organic farming Transport Authority (BIWTA) has eastern region, carrying consignments which comes as a tradition is an added permitted the ferrying of goods vessels of fruits produced by the farmers of benefit to the region. As the demand for by waterway between Sonamura in Tripura, was flagged off from Agartala organic products is rapidly increasing in Tripura to Daudkand in Bangladesh. railway station by Chief Minister Biplab the international market, North-eastern The development of integrated check Kumar Deb in June. The train carried region can definitely be considered as posts (ICPs) at Agartala, Srimantapur, 8,990 kg of pineapple to Adarshanagar an organic hub for exports. Another and Sabroom will further increase of Delhi and 1,145 kg of pineapple and important feature highlighted by Dr. the scope for improving livelihood jackfruits to Guwahati. Angamuthu is the scope of Geographical and create opportunities to promote "With the inauguration of the Kisan Indication (GI) products such as Assam multi-modal connectivity in the region. Rail, the transport cost for agricultural lemon, Karbi Anglong ginger, black The Agartala (Tripura) – Akhaura products will now come down to a great rice, joha rice and Naga Chilli which is (Bangladesh) rail link, which is on the extent. Earlier, the transportation cost immense in the export market. verge of completion, will also boost the for sending these products by air was Improved in-land logistics and better connectivity of Tripura to Bangladesh. `20 to 50 per kg. Now, it will come down access to seaports will surely bring down The 10km railway link will be the first rail to `2.25 per kg for Delhi and 88 paise for the export cost for the north-eastern link between Bangladesh and northeast Guwahati," Deb said after flagging off states making them more competitive in India. the train. the global markets.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 28 Q&A

After port automation manual work of logistics movement and unskilled AI AND BIG DATA physical labour has become obsolete. Because of sophisticated automation SOLUTIONS ARE IN system which requires technical skill set to manage workers having technological DEMAND knowledge and ability to work on technology are in demand. Classroom and practical training can be given to workers on new automation The pandemic has seen a rise in demand for AI and Big Data system. Since our systems are very user solutions. E-learning and technologies that aid in safe work friendly, re-skilled workers can easily environment are gaining popularity, opines Amit Gupta, Managing operate and manage the automated Director, Suraj Informatics systems and can be more productive. Are you currently working on We have been through two waves any new projects for ports and of the pandemic which have given terminals? (Are there any new more thrust to digitalisation and projects in the pipeline?) adoption of technology. Have you There are various projects in pipeline witnessed any increase in the in port segment related to: demand for your products? If so, across which industries/sectors? y IT Infrastructure y Automation Initially in this pandemic most of the y RTLS major industries have put their buying y Digitisation decisions on hold. We have seen demand for some new solutions like Corona The current trend is towards safe work environment- Hydroxyl reducing the ecological impact of Radical generating UV air purifying port operations and making them devices to kill COVID-19 viruses from more eco-friendly. How do your air and surface, thermal screening, technologies help in this regard? contact tracing. E-learning and digital Through efficient material movement classroom solutions are also gaining we are reducing operations and demand. There is increase in AI and We have to bring container owners, turnaround time, which in turn reduces Big Data related solutions. Businesses shipping liners, exporter and importers the fuel consumption by trucks, reduces are adopting technology to minimise on a single platform. the emission and in turn reduces the human effort and presence. pollution. Paper works are minimised, More demand is seen across supply How do your port automation less paper consumption saves trees. We chain, healthcare, education and systems change the operational adhere to ROHS complied products for government verticals. landscape of the port? Which automation solutions. We also provide aspects of the operational The global trade community is green energy alternatives and energy efficiencies are increased? witnessing an acute shortage efficient systems. of containers. Do your solutions Optimal logistics movement, increased What is the current status of help in tracking and repositioning safety and security, reduced operational automation at Indian ports of empty containers? Please cost are some of the important (major & private)? On which elaborate? aspects of port automation. Through aspects of technology adaption automation we can track, control, Our solutions do help in tracking and and automation do they need to reduce congestion, remove labour repositioning of empty containers improve? challenges, improve yard planning and At Local Level: This empty container optimise the movement of containers Most of the major ports have adopted tracking will be done through RFID/GPS and trucks, which increases the partial automation. Automation is still device. RFID/GPS tags will be attached operational efficiencies. at initial stage. There are a lot of areas with the empty vessel, on specific paths in technology where improvement is RFID readers will be installed and data With port automation which of the required, as listed below: will be sent to specific AI based software skillsets have become obsolete y AI designed for that purpose. and which skillsets are gaining y OCR At Global Level: We can develop AI demand? How can the port workers y IoT related software through gathering the be re-skilled to be more productive y UAV & UWV information on specific requirement. after port automation? y Video Analytics

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 29 DEMURRAGE AND DETENTION CHARGES

A DRAG ON THE SHIPPERS

The shipping industry has been in troubled waters ever The current supply chain disruption is since the outbreak of Covid-19 pandemic in early 2020. The resulting in high detention and demurrage pandemic has been throwing several challenges to the charges, which is an offshoot of a sudden industry initially with shutdowns and subsequently with sudden demand boom, port congestion, and equipment surge in demand and port congestion. shortage. As a result of these supply chain disruptions higher Easing the supply chain disruptions can fix demurrage and detention (D&D) fees have been troubling the the problem, say experts. shippers, freight forwarders, and importers. In fact, the D&D charges have doubled during the pandemic times. Container xChange, an online firm, in its recently conducted survey disclosed in March 2021 has thrown light on the increasing D&D charges. It has collected more than 20,000 data points from publicly available sources to publish its report on how much the 10 biggest shipping lines charge across the world’s top-20 ports. The survey has revealed that recently there is an average increase in D&D charges by 104 per cent over the past year. Moreover, the lack of transparency when it comes to D&D charges are at the core of the discussion, as the users of the equipment are put at a significant disadvantage of not knowing precise pricing. Of late, there is a lot of discussion and demand again over the need for bringing in transparency in the industry over the way D&D charges are levied.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 30 Corrective measures taken against the skyline. According to the Drewry's of a competitive ocean freight market, increasing D&D charges Shanghai-to-LA index, a new record with the new entrants, new services Recently, the Biden administration was set at nearly $10,000 for a 40-ft box and massive vessel orders to increase in the US has urged the Federal recently. Some reports also suggest that supply, said WSC. Maritime Commission (FMC) to use its some shippers are even paying around According to WSC the current enforcement powers to crack down on $15,000 or more to get their cargo on supply chain disruptions are happening excessive detention and demurrage board with a prompt loading at Chinese because of the historic rush in charges under broad executive ports. demand by Americans for goods from order targeting anticompetitive On the other hand, the increasing overseas, and therefore, the punitive business practices. FMC initiated D&D rates are drawing attention in actions based on incorrect economic the investigation on these charges Europe also. The shippers there are assumptions won’t solve the congestion even before the advent of the present now paying more than $12,000 per FEU problems. According to the shipping administration. FMC has given signals for containers from Asia. According to liners, the liner shipping remains highly that it intends to enforce action over the a forecast by Drewry a spike to nearly competitive, and lack of competition is increasing D&D charges. $20,000 in some lanes is expected not the cause of the cargo congestion. during the peak season. The European Shipping liner companies have Normalised demand can fix the Commission (EC) is also reported to be received another backlash in recent problem times in the form of the White House’s monitoring the shipping industry and order that has considered the ocean mooting for the intervention to facilitate The increase in D&D rates are an freight industry as an extremely return to normal operations. offshoot of a combination of the concentrated, anticompetitive sector. Liners opposing the punitive extreme demand coupled with huge The fact sheet revealed by the White actions operational disruptions across supply House noted that top ten shipping lines chains globally after the outbreak of held about 12 per cent of global market However, the World Shipping Council Covid-19. With the increase in demand share in 2000, but the composition of the (WSC), a representative of the ocean new carriers have entered the market. group has changed over the years, and freight industry, has asked to postpone Currently, the amount of vessel orders so also the level of the concentration. the White House order as it feels that in the first half of the year surpasses According to the fact sheet, currently, the rate spike is somehow connected 2019 and 2020 combined. Though the top ten shipping lines handle about to concentrated market share. WSC the deployed capacity of the vessels 80 per cent of the world's containerised further said that all the available currently is all-time high, the huge and cargo, leaving domestic manufacturers vessel capacity is deployed and US constant increase in US imports has who need to export goods at these large seaports are saturated with cargo and overwhelmed the available capacity and foreign companies' mercy. importers are struggling to unload has caused increasing vessels waiting This White House order has come and turn around containers. All this is time at anchor to discharge imports, at a time when the freight rates on core because of sustained increase in the and containers sitting longer at ports Asia-US routes are spiralling to touch US imports and indicates functioning and therefore leading to racking up larger detention and demurrage bills. According to some experts, the current supply chain disruptions How D&D charges have increased in the recent times resulting in detention and demurrage charges are an offshoot of an historic surge in demand, and port congestion. • Both demurrage and detention increased in 2021 compared to 2020. Therefore, only normalisation in Across the world’s 20 biggest ports, the average demurrage and operations would fix the problem by detention charge doubled, going up +104% after two weeks. That’s easing the supply chain disruptions, and equivalent to $666 for each container across ports, shipping lines and there is no need for any punitive actions demurrage & detention combined. against ocean carriers, say the experts. Recently, there is an increase in the • On average, demurrage and detention charges reached $1,219 vaccination drives across the countries per container across container types after two weeks in 2021. The worldwide, and the pandemic caseloads cheapest is COSCO in Port of Busan, and the most expensive is CMA are certainly showing a downward CGM in both Long Beach and Los Angeles. trend. This is one positive factor that • The ten leading Chinese ports experienced the biggest increase of can bring normalcy in demand, and the demurrage and detention charges from 2020 to 2021. The costs of problem of spiralling D&D charges too demurrage and detention went up by +126%. can automatically get resolved over a period of time, when normalcy returns to the pandemic-hit supply chain Source: Container xChange mechanism in the shipping industry.

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 31 CHITTAGONG PORT

The situation was unprecedented and the disruption widespread. The Chittagong port in Bangladesh was saddled with congestion problems of gargantuan proportion. The long tentacles of Covid -19 had crippled the port operations and supply chain activities. The port was whipsawed by a number of incidents, force majeure or otherwise, that affected port operations and had a domino effect along the stretch of the chain. How did the conditions deteriorate? What steps were being taken to ameliorate the situation? EMERGING OUT The pandemic notwithstanding, globally, there was no dip in demand OF CONGESTION for cargo. According to UNCTAD report, “changes in consumption and shopping patterns triggered by the pandemic, including a surge in electronic commerce, as well as lockdown measures, have in fact led to increased Feeder service at Chittagong Port has been increased. As majority import demand for manufactured of the export loaded containers are bound for Colombo, the consumer goods, a large part of which is Colombo-bound feeder vessels are allowed priority berthing moved in shipping containers.” The Chittagong port, a riverine port always constrained for capacity, BY VIJAY KURUP was always delicately poised in its operations. A glitch, however small, tended to jeopardize the movement of the container boxes. The repercussions would radiate out to the ICDs in traffic of 46% in containers and 27% period, resulting in increase of turn the hinterland locations and to the in bulk cargo. On February 2021, there around time of the vessels from 10 to 14 transshipment ports. was deterioration in the congestion days. The port handles nearly 90 percent situation, due to a sudden spike in The vessel turnaround time for of Bangladesh’s maritime trade. With imports. The clearance of the cargo was the Chittagong - Colombo string, an annual cargo (container and bulk) slow due to a number of reasons. almost doubled from 14 to 25 days. handling growth of more than 10 The vessels coming from Mainland The vessels' waiting time at the outer percent, congestion at the Chittagong China, with whom Bangladesh had anchorage had reached 16 days, a level port has been a perennial problem; a significant trade, were imposed a not seen in recent times. Other vessels there has been no respite from it. mandatory quarantine period of 14 arriving at the port were required to go The traffic through Chittagong days. Vessels, whose last port of call through lengthy procedures of health Port started declining in January 2020; was a Chinese Port, were also required declarations, specifically created for the Chittagong Port registered a drop in to undergo the mandatory quarantine pandemic.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 32 to around 10 days. The truck detention time in the ICDs was 4 to 6 days.” The congestion had also begun to threaten the staple item of export for Bangladesh - Ready-Made Garments (RMG). Started off in the 1070s, the RMG is today a multi billion-dollar industry, threatening even the Chinese giants. The RMG constitutes almost 84% of the country’s exports. The pandemic had triggered order reductions, cancellations, payment delays, and renegotiation of terms, severely jeopardizing the country's export target. Was the situation improving? The spokesperson, for A.P. Moller – Maersk, speaking to Maritime Gateway, felt that the peak had been reached and they should start to see improvement in the situation. Sikder believes so. “The number of container feeder vessels taking berths at Chittagong Port has been increased. As majority of the export loaded containers are of Maersk Line…and bound for Colombo, the number of Colombo-bound feeder vessels has been increased allowing them priority berthing.” He further added that overall the feeder vessels with greater export inducement will get priority berthing. The Maersk spokesperson further The chartering and bunkering containers for stuffing of export cargo. stated that new service, from Ennore costs, scaled up. With the government On a day, when normally 5000 (Chennai) directly to North Europe, imposing the lockdown, the pilotage, vehicles take delivery of shipments, the which they would be starting in August, towage and berthing services were number was reduced to less than 1000 would give the Bangladesh exporters an crippled, severely affecting intra-port vehicles, with truck drivers staying away alternate route to export their goods. movement. Despite the staggered out of fear of contracting the disease. Further, additional feeder vessels were working conditions, the fear factor and Likewise the customs and banking being pressed into service to clear the the intervening Eid holidays, kept many activities operated on a limited scale. backlog. port workers away. Mohd. Ruhul Amin Sikder, Secretary, RMG export is in recovery mode. All these untoward incidents slowed Bangladesh Inland Container Depots Manufacturers are sanguine about down the port activities, which led Association (BICDA), in an email recovering lost ground by October right up to the ICDs in the hinterland response to Maritime Gateway said, this year. According to reports, RMG locations. “there were currently 19 ICDs in exports from Bangladesh increased by Feeder operators had temporarily operation. Against a total storage 11.1 per cent to US$28.561 billion in the suspended/reduced vessel operations, capacity of 77,700 TEUs in all the ICDs, first eleven months of fiscal 2020-21 as from transshipment ports of Singapore, the total stock of containers in the compared to US$25.708 billion in the Colombo and Tanjung Pelepas. The second week of July was 54931 TEUs.” corresponding period last year. shortage of jetties at the Chittagong port Out of which, he added, “the empty The pandemic situation was only increased the waiting period at the container stock was 28391, export loaded unprecedented and its consequences in port. With a monthly call of 80 vessels a container stock was 16491 and import the maritime sector were unforeseeable. month, the number of ships calling the loaded container stock was 10049 The Chittagong port is crawling back Chittagong port was reduced to 60. respectively. The normal export loaded to normalcy. Backlog is being cleared. The import shipments were stranded container in all ICDs was around 6000 Safety and precautionary measures at the various transshipment ports. TEUs, which registered a two-fold rise are now in place. If and when the third The reduction in import containers and of 15314 TEUs. The time taken for export wave strikes, the pernicious impact of the temporary moratorium of feeder shipments from carting to stuffing, the pandemic would perhaps, not be so vessels, led to severe crunch of empty registered a 3-fold jump from 2/3 days ruinous.

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 33 EDIBLE OIL

EDIBLE OIL IMPORTS ON SLIPPERY GROUND

The Solvent Extractors’ Association of India claims that the unrestricted import of edible oil was not only threatening the survival of the vegetable oil refining industry in eastern and northern India but had proliferated to markets as far as the southern part of India. as originating in the FTA exporting BY VIJAY KURUP country. The document Certificate of Origin establishes the country of origin oil to India was in conformance with of the commodity. Among other the Rules of Origin and in accordance information contained in the certificate with all the regulation of the Free Trade are information on the product, its Agreement (FTA). destination and the country of export. If so, then why is there a discord? The document also specifies that the If a Free Trade Agreement (FTA) product being exported by an FTA exists between the two nations, country to a partner country has The import of edible oil from Nepal is on then products can be exported with undergone 20% processing. slippery ground. The Solvent Extractors’ preferential treatment with regard India is a member of South Asian Association of India (SEA), formed to to customs duty in the importing FTA Free Trade Area (SAFTA) wherein a free foster the development and growth partner country. The customs Duty can trade arrangement exists between the of the Solvent Extraction Industry, be eliminated altogether. signatory countries. The signatories are has asked the government to take This concession is also extended to the SAARC countries viz, Afghanistan, immediate steps to curb excess import products where an FTA country which Bangladesh, Bhutan, India, Maldives, of zero duty refined soybean oil from has imported a product from a non Nepal, Pakistan and Sri Lanka. Under Nepal by flouting Rules of Origin and in FTA country can export it to a partner SAFTA, edible oil imports from these the process, seriously hurting domestic FTA country, provided the product has countries are fully exempt from customs refiners and farmers. The Nepal undergone 20% processing by way of duty. government however, has reportedly value addition. The final manufactured Dr B V Mehta, Executive Director of stated that the export of refined soybean product can then legitimately be called Solvent Extractors’ Association of India,

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 34 Which Counties Produce The Most Palm Oil? Edible oil imports Amount of Palm Oil Produced in Selected Countries in 2019 India spends $10 billion on edible oil (in million metric tonnes) import, out of which 70% goes for Production Share of global production palm import – mostly from Malaysia Indonesia 42.50 58% and Indonesia. Almost 50 per cent Malaysia 19.00 26% of the products in our supermarkets Thailand 2.80 4% currently have palm oil in some form Colombia 1.53 2% or another whether it is biscuits, chips, soaps, shampoos, toothpaste Nigeria 1.02 1% or even bakery items. In fact, the Guatemala 0.85 1% consumption of palm oil in India, Honduras 0.58 1% Papua New 0.55 which is already the world’s biggest Guinea 1% importer of palm oil, would have gone Source: United States Department of Agriculture up further had it not been for the COVID-19 pandemic disrupting the trend. through Nepal or Bangladesh by flouting Had it not been for COVID-19, the Rules of Origin for getting the duty India would have touched almost 10 million metric tonnes in palm exemption for such imports. oil consumption. India has been He felt that the edible oil imports the world’s largest importer of into India should be regulated through speaking to Maritime Gateway, clarified palm oil for many years now. In the a Public Sector Undertaking (PSU) such that the issue was not about Nepal year of 2018-19, it touched almost as NAFED. PSU would not only be able fulfilling 20% criterion of value addition, 9.3 to 9.5 million metric tonnes to regulate the quantity of refined but of unregulated import of edible of consumption. In 2019-20 and oil coming into India but they would oil into India. Palm oil is everywhere 2020-21, which happens to be the COVID-19 year, the consumption fell also be able to regulate the quantity today in the Indian market because it is to nearly 8 million metric tonnes,” to be distributed across India. Further comparatively cheaper and its imports informs Kamal Prakash Seth, Deputy the product can be distributed to the are quicker. For instance, one can get Director, Market Transformation vulnerable sections of the society. palm oil from Malaysia and Indonesia (Global), Roundtable on Sustainable Another option that could be in 10 days compared to about 40 days Palm Oil. considered is to fix the quota for import to get soya oil from Argentina. India is of refined oils from Nepal and distribute dependent on Malaysia and Indonesia month-wise / regional-wise to have for palm oil and data shows that these Palm oil consumption by sector minimum impact on the domestic two countries supply over 90 percent of refinery industry. the annual palm oil import. For instance, Sector % consumption Finance Minister Nirmala in 2019, of over 10 million tons imported Sitharaman, in her Budget speech had Hotel, restaurants and by India, over nine million came from stated that the government would catering industries 30 Malaysia and Indonesia. Indonesia review 'Rules of Origin' requirements, and Malaysia are the world’s biggest Food processing industry 20 particularly for certain sensitive items, producers of palm oil, accounting for a Soap, shampoo, detergents 10 "so as to ensure that FTAs are aligned combined 90 percent of global supply. to the conscious direction of our The current unrestricted import Blended palm oil for cooking 40 policy". The Government was cognizant of edible oil at zero duty under SAFTA of the fact that imports under FTAs agreement has not only reached were on the rise and undue claims of Northern and Eastern India but has now FTA benefits have posed threat to the proliferated to markets in Southern SEA was of the opinion that domestic industry and such imports India. What had started as a trickle, Nepal and Bangladesh were taking required stringent checks. has apparently assumed alarming advantage of this exemption, and were Secretary Food & Public Distribution proportions. SEA claims that this exporting palm oil and soybean oil in said that mission "Atmanirbhar Bharat" unrestricted imports was not only substantial quantities to India. Nepal required the country to be self-sufficient threatening the survival of the vegetable does not produce soybeans of its own. It in edible oils. Dependency of almost 60% oil Refining Industry in Eastern and reportedly has a very small capacity for on imports was not appropriate to the Northern India but had proliferated to crushing imported soybeans. Nepal does growth of the edible oil industry in India. markets as far as the Southern part of not produce any palm oil either. Where there's smoke there's fire. If India. The unrestricted flow of vegetable He said that the palm oil being there is unrestricted flow of edible oil oil was not only “distorting the market”, imported from Nepal is of Indonesian into the country, it needs to be checked. but also resulting in huge revenue loss and Malaysian origin and soybean oil There is an aberration here that needs to the Government of India. is of South American origin, routed to be corrected.

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 35 FUTURE FUELS

from it as a possible fuel source. DECARBONISING A growing number of shipping companies in different parts of the industry are continuing to experiment OCEAN TRADE with the use of biofuels as a near-term means of improving the environmental performance of their operations. Fuels made from reused oil, biofuel also provides the benefit of recycling an A number of options from Alcohols to Biomethane and otherwise waste product. biofuels are in various stages of trials by shipping lines that Among the companies reporting are desperate to figure out the ultimate low emission fuel recent tests of the alternative fuel product were two of Japan’s largest shipping companies, Mitsui O.S.K. Lines (MOL) and NYK. Anglo American as charterer of the NYK vessel also 2020s will be a vital time for piloting demonstrated the involvement of other and prototyping new fuels and hybrid parts of the supply chain. In the U.K., propulsion arrangements. Vessels will both crewing vessels serving an offshore need to transition from fossil-based wind field and tugs on the Thames also fuels to zero carbon energy sources joined the broader effort to test biofuels. and technologies, while simultaneously The companies are exploring different increasing efficiency. forms of the sustainable product. hipping produces about 2.9% of the MOL working through its subsidiary S Ocean carriers banks on biofuels world’s man-made emissions of carbon Euro Marine Logistics headquartered dioxide and shipping emissions rose For more than a year now, MSC is in Belgium started sea trials in June for by 10% between 2012 and 2018. Lloyds using biofuel in its vessels calling in one of its car carriers. The 11-year-old Register says, ships will have to reduce Rotterdam Port. The shipping line is vessel City of Oslo (5,432 dwt) loaded their output of carbon dioxide by 85% using 30% blends of biofuel and expects approximately 370 tons of biofuel from

per nautical mile, to take account 15-20% reduction in absolute CO2 supplier GoodFuels while at the Dutch of increasing numbers of ships, and emissions. It is further exploring the port of Flushing. MOL highlighted the more activity over coming years. The viability of hydrogen and fuels derived benefits that the fuel can be used on

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 36 established the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. In fact, Maersk in collaboration with the Lloyds Register is studying possible zero emission fuels. Based on market projections, the best positioned fuels for research and development into net zero fuels at this point are alcohol, biomethane and ammonia. Alcohols (ethanol & methanol) are not highly toxic and have various possible production pathways directly from biomass and/or via renewable hydrogen combined with carbon from either biomass or carbon capture. Existing solutions for handling the low flash point and for burning alcohols are well proven. Ethanol and methanol are fully mixable in the vessel’s bunker tanks, creating bunkering flexibility. However, the transition of the industry towards alcohol-based solutions is yet to be defined. Biomethane on the other hand has a potential smooth transition given existing technology and infrastructure. The challenge however is ‘methane slip’ vessels without changing the engine operating for mining company BHP used – the emission of unburned methane specifications. The test is ongoing for biofuel made from waste oils such as along the entire supply chain. the car carrier. used cooking oil loaded in Rotterdam Ammonia is truly carbon free At the same time in the Far East, in conjunction with GoodFuels. NYK and can be produced from renewable NYK working in conjunction with mining also reported that it used blockchain electricity. The energy conversion rate company Anglo American, which was technology to enhance the traceability of this system is higher than that of the charterer of their vessel, conducted of the fuel to establish a clear chain of biomaterial-based systems, but the a biodiesel test. The 10-year-old capsize custody for better quality assurance in production pathway cannot tap into bulker Frontier Jacaranda (182,757 dwt) the bunker fuel supply chain. potential energy sources as e.g. waste loaded biodiesel in Singapore before The use of biofuels has also spread biomass. The main challenge for a voyage to the Saldanha Bay in South to tugboats moving waste barges on the ammonia is that it is highly toxic and Africa. In this instance, Toyota Tsusho River Thames in London. Cory Group, even small accidents can create major Petroleum supplied a biodiesel blend which transports a million tons of waste risks to the crew and the environment. consisting of seven percent biofuel and in barges on the river annually to its The transition to future application 93 percent standard marine diesel. recycling and waste from energy facility, remains a huge challenge. According to Anglo American, the recently completed a test of biofuel The three fuel pathways all have mix reduces CO2 emissions by around made from cooking oil and waste fats. relatively similar costs, but present five percent. Among the elements they The company is now converting its fleet different challenges and opportunities. were exploring was the stability of the of tugs to biofuel. Based on these findings with Lloyd’s biofuel in storage and its performance While biofuel does not provide Register, Maersk now has more clarity as a fuel. Data gathered was expected to a comprehensive solution to the over the pathways to reach zero provide new insights into wider efforts reduction of GHG emissions, it provides emissions and will therefore increase to introduce biofuel to the maritime a near-term alternative for shipping its focus on developing these pathways sector. They were also exploring ways companies seeking to make incremental and affecting real change in the years to of improving the cost-effectiveness improvements from their operations come – reducing emissions to net zero. and they plan to use higher percentage while other options in carbon capture blends in future trials. and alternative fuels continue under Abu Dhabi goes for green Ammonia It was the second large-scale trial development. The Abu Dhabi National Energy that NYK has conducted with one of Other possibilities: Alcohol, Company PJSC (TAQA) and Abu Dhabi its vessels. In January 2019, the NYK Biomethane and Ammmonia Ports are exploring the development, dry bulk carrier Frontier Sky loaded storage, bunkering and export of green biofuel in Europe. In that trial, the vessel Last year, the A.P. Møller Foundation ammonia at the Khalifa Industrial Zone.

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 37 FUTURE FUELS

The new facility would be fuelled by CARBON CARBON ZERO green hydrogenFUTURE produced from a 2GW FUELS NEUTRAL CARBON solar photovoltaic plant. The green hydrogenMAR wouldIN beE turned Liquefied Natural Gas Biofuels / Biomethane Hydrogen (LNG) into liquid ammonia to supply ships Safe to High Long-term Increased High FUELS handle fuel cost solution CAPEX fuel cost converted to using ammonia bunker Established Long-term Global fuel infrastructure solution availability fuel and for export from Abu Dhabi Increasingly Sustainable Low energy Storage used as marine scaling up density per challenges, fuel, can be used needed volume and flammable Ports via specializedPAT gasHWAYS carriers. TO The Safe to Increased favorable specific handle CAPEX as drop-in fuel project will also featureDECAR aBONIZATIO storage facilityN density by mass Clean fuel, Methane at Khalifa Port, seeking to become a rapidly developing slip Synthetic methane / SNG IMO has develop e d infrastructure Ammonia hub for exportingt hegreen ambit ammoniaious targe tto of a minimum 50% reduction Safe to High international markets including Europe Liquefied Petroleum Gas handle fuel cost Long-term Increased High in greenhouse gas (GHG) (LPG) solution CAPEX fuel cost and the East Asia. Easily Large-scale emissions by 2050. adapted to LNG production Solution for Limited infrastructure, challenges, internal combustion bunkering, The solar farm, electrolyzer and the Global fuel Safe to can be used as requires engines and Shipowners have availability handle drop-in fuel renewable fuel cells on human ammonia production plant will all be energy source health alternative fuel options CO emissions situated in the Khalifato help Industrial them meet Zone IMO’s and have pipelineam connectionsbitions, each directly wit h Methanol / Ethanol to the Khalifa Portits storage own advantages facility. Increased High and challenges. CAPEX fuel cost CMA CGM favours biomethane Easy-to-handle, Refueling well developed challenges, The CMA CGM Group in its efforts to be terminal network flammable carbon-neutral by 2050, Advantages is supporting the production of 12,000 Challenges tonnes of biomethane which is enough to COURTETY: BUREAU VERITAS MARINE & OFFSHORWE fuel the equivalent of two 1,400-TEU LNG-powered ships operating on the Northern European Balt3 line between St Petersburg and Rotterdam for a whole By reducing the amount of fuel year. The shipping line also plans to burned, air lubrication will have a direct power 26 of its containerships using LNG effect on greenhouse gas emissions. In by 2022, and seven of these are already Based on market addition, it will provide critical fuel cost in service. CMA CGM was also the first savings for shipowners, who need to shipping group to successfully use projections, the best offset the expense of rapidly shrinking biofuel generated from used cooking oil positioned fuels their environmental footprint. The on its containerships. for research and patented FluidicAL technology requires Biomethane is a renewable green gas no structural modifications or vessel produced in part by the methanation development into net recertification, which makes it ideal for of European-sourced organic and plant zero fuels at this point retrofitting as well as for new-builds. waste. This energy source represents are alcohol, biomethane a fine example of how the circular ClassNK develops energy economy can work while benefiting the and ammonia. efficiency calculator agricultural sector. CMA CGM intends The EEXI Simplified Planner is an to push ahead with the development assessment tool for the Energy of this energy source by investing in Efficiency Existing Ship Index (EEXI), biomethane production facilities and which will apply from 2023. EEXI studying the viability of liquefaction emissions is by reducing fuel Simplified Planner provides the processes so that biomethane can be consumption. Air lubrication for marine approximated calculation of a ship’s rolled out as a shipping fuel. vessels is a developing solution that EEXI by inputting DWT and MCR, and Guarantee-of-Origin Biomethane, will radically reduce fuel consumption identifies whether the value complies coupled with CMA CGM’s dual-fuel gas- and environmental impact. Alfa Laval, a with the regulation. If it does not meet power technology, can reduce well-to- Rotterdam-based maritime technology the requirement, the tool suggests the wake (entire value chain) greenhouse company, is working to make this extent of engine power limitations (EPL) gas emissions (including CO2) by at least long-sought technology a commercial for compliance, and supports decision 67%. On a tank-to-wake basis (at ship reality. Alfa Laval is investing in Marine making on how to comply with EEXI level), the reduction in greenhouse gas Performance Systems, whose unique regulations. EEXI Simplified Planner, emissions reaches 88% (including CO2). method of producing bubbles with covering bulk carriers, gas carriers, fluidics is a breakthrough that will Reducing fuel consumption tankers, container ships and RO-RO reduce fuel consumption by 8–12% at a cargo ships, is available on the EEXI page Another possibility for reducing vessel’s normal service speed. of ClassNK’s website.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 38 PORTS

to withstand its impact. According to RMSI, a technology company, Kerala, SHIELDING Karnataka, Goa, Maharashtra, Gujarat and Daman Diu lost `15,000 crore due to AGAINST NATURAL the storm. Jawaharlal Nehru Port Terminal (JNPT), a major port in the west coast CALAMITIES of India, had set up a control room and deputed officers to collect all weather data in real time from the Indian Meteorological Department (IMD) to The impact of a natural calamity on a port carries take countermeasures. The port took more socio-economic consequences apart from various measures to minimise any damages to property and life which causing logistical distress included suspending passenger ferry services, securing the port equipment, initiating a 24 x7 hours control room. According to Sanjay Sethi, Chairman, lines, port authorities, individual JNPT, “These timely measures helped terminal operators to freight forwarders, mitigate the impact of the cyclone on the inland logistics agencies and shippers. port property and ships in JNPT waters.” The impact of a natural calamity on In order to withstand inclement a port carries more socio-economic weather arisen out of Tauktae cyclone consequences apart from causing all Terminals were advised to secure logistical distress. Therefore, a port’s their cargo handling gear and other The impact of a natural calamity on reliability thus depends on how well it related equipment and comply with the a port carries more socio-economic can cope with disasters and how soon it heavy weather contingency plan. Tie- consequences apart from causing can restore normalcy in its functioning down anchors secured the cranes at all logistical distress. Therefore, a port’s in the aftermath of a disaster. the terminals. reliability thus depends on how well it Immediately a week after Tauktae The impact of cyclones Tauktae & can cope with disasters and how soon it cyclone Yaas battered the coast of Yaas can restore normalcy in its functioning the eastern states of Odisha and West in the aftermath of a disaster Recently, cyclone Tauktae hit the Bengal, causing extensive damage to India, having a long coastline western coast of India affecting Kerala, livelihoods and property. Cyclone Yass spanning around 7,500 km is often Karnataka, Goa, Maharashtra and is estimated to have resulted in `200 vulnerable to extreme weather events Gujarat along with two Union Territories billion ($2,800 mn) losses to the West like cyclones. Ports play a pivotal role in (UTs) Lakshadweep and Daman & Diu. Bengal state, according to a report the convergence of numerous competing It wreaked havoc on the western coast submitted by that State to the Prime business interests Including shipping and major ports have halted operations Minister of India.

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 39 PORTS

In a notification released disaster management. With the immediately after the announcement enactment of Disaster Management of cyclone Yaas, Paradip, a leading port Act 2005 and adoption of National located in the east coast in the eastern Policy on Disaster Management 2009, state of Odisha, has asked for all loading Government of India has established and unloading equipment, cranes and improved institutional arrangements machines to be secured. All the vessels and Disaster Risk Reduction (DRR) at the port anchorage were asked to pick JNPT took various mechanisms to deal with any up anchor and move to sea, equipment measures to minimise threatening disaster situation or and machineries at under construction any damages to property disaster. areas to be secured. and life which included India has set up an apex body for Disaster preparedness at ports disaster management in the country suspending passenger - the National Disaster Management These natural calamities economically ferry services, securing Authority (NDMA), with the Prime impact several businesses including the port equipment, Minister as its head. NDMA has been performance at ports, which are lifeline set up under the Disaster Management for foreign trade in the country. initiating a 24 x7 hours Act, 2005, and it’s created for enabling “To mitigate the adverse effects of control room. the environment for institutional the cyclones in the future, JNPT has an mechanisms at the State and District approved Disaster Management Plan levels. It is mandated to lay down (DMP) in place which lists out various the policies, plans and guidelines for set of measures which include liaising disaster management. India envisions with all local authorities like the District the development of an ethos of Tehsildar, local police authorities , all prevention, mitigation, preparedness tank farms, NDRF , ONGC Uran, etc for and response. NDMA runs various pooling of all available resources. Regular programmes for mitigation and mock drills are carried out to check the responsiveness for specific situations. (IMD), an agency working under the status of emergency generators, pumps, These include the national cyclone risk and setting up of a crisis management Ministry of Earth Sciences of the management project, school safety control room with the core response Government of India. It is the nodal project, decision support system and team”, said Sanjay Sethi. agency in the country responsible for others. “There currently no gaps in DMP meteorological observations, weather In order to lessen loss due to the at JNPT, apart from preparation and forecasting and seismology in the severe cyclones, a national disaster better planning ports also disseminate country. management plan (NDMP) was IMD weather reports and port warning The role of meteorological prepared in November 2019 revising messages are dispersed quickly to all information by IMD is of paramount and enhancing the existing National stakeholders including local fishing importance when it comes to Plan of 2016 to considerably improve the associations”, Sanjay Sethi said. implementing the Disaster Risk approach and adding new dimensions. While reacting to the disaster Reduction (DRR) measures. The These institutional arrangements preparedness measures taken at the information is used in many ways for have been set up consistent with the Paradip port, Chairman Vinit Kumar DRR in India. The information is used paradigm shift from the relief-centric said, “Four teams of Paradip Port Trust for hazard monitoring and assessment, approach of the past to a proactive, (PPT) with chainsaws and Pay loader early warning and mitigation, technical holistic and integrated approach kept ready to function round-the-clock support in vulnerability analysis, for DRR by way of strengthening during the cyclone Yaas to clear the mapping, and risk assessment, technical roads due to possible uprooting of trees.” support in preparedness & planning, disaster preparedness, mitigation, and Even though there are no standard technical support in management of emergency response. and tangible disaster preparedness natural resources from disasters. In spite of the most competent mechanisms currently in place at The weather forecasts provided by disaster relief measures adopted in Indian ports. But the way the authorities IMD during recent cyclones Tauktae and the country, the frequent natural have been reacting to the natural Yaas have helped Indian ports to take calamities pose diverse threats and calamities with concerted effort to precautionary measures and thereby leave behind many scars like loss of avert major damages at ports by avoiding major damages to the port lives and property. The recent cyclones taking precautionary measures is infrastructure. like Tauktae and Yaas however, keep reminding us of the shortcomings in the commendable. Disaster preparedness measures way we deal with natural disasters and taken by the government The role of IMD in disaster to make us learn more lessons of how to management The government on its part has act with more caution for avoiding risks The India Meteorological Department implemented several measures for associated with them.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 40 TERMINALS

TERMINALS TUSSLE FOR CARGO The discontent has been brewing and it has been simmering for a while now. Vizag General Cargo Berth Pvt Ltd has been incurring average losses of `26 crore per annum. Adani Ports and Special Economic Zone Ltd Coal Terminal served a IPPTA opines that a multiple cargo handling facility termination notice to the Port Trust. Insolvency would help private terminals sustain profits and prevent proceedings have been instituted against Tuticorin them from sliding into non-performing assets. They Coal Terminal Pvt Ltd. The consistent decline in claim that it would not only maximize the capacity volumes has not augured well with the respective utilization of port assets, but also increase efficiencies. Port Trusts- the Concessioning Authorities. As India embraces Atma Nirbhar Bharat Abhiyan, there has been a significant drop in coal imports, BY VIJAY KURUP compelling Indian Private Ports and Terminals

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 41 TERMINALS

Total Actual Coal Import and Projections 572.87 of coal traffic. The 12 major port trusts 600.00 handled a combined volume of 105.88 550.00 million tons (mt) in FY 19, 92.276 mt in 500.00 467.09 FY20 and 78.024 mt in FY21; the decline 450.00 over the years has been steady and 400.00 380.18 sharp. The increase in coal production 350.00 has been successful in containing 309.45 300.00 import of coal. 251.87 It is projected that the coal demand 250.00 205.00 will grow from 955.26 MT in 2019-20 200.00 217.78 203.95 248.55 to 1.27 BT in 2023-24. To meet this 150.00 235.24 166.86 208.27 growing demand, a coal production plan 145.79 100.00 190.95 prepared CIL has a target of producing 1 102.85 50.00 73.23 BT coal by 2023-24. 49.79 59.00 68.92 0.00 The investment of `44,000 crore by 2007- 08 2008- 09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016- 17 2017- 18 2018- 19 2019- 20 the Coal Companies for coal evacuation Total Coal Import Actual Quality Total Coal Import Projected infrastructure is likely to be channeled into the development of coal handling plants, and improving transportation chain. With all these developments, the viability of private coal terminals at the 12 major ports appears bleak. Association (IPPTA) to seek permission The private coal terminals at the from the government to handle multiple 12 major ports were governed by the commodities in their terminals. Model concession Agreement (MCA) However the Federation of Association signed with the government through the of Stevedores (FAS) has, vehemently public-private-partnership (PPP) route, opposed the suggestion mooted by based on a revenue share model for a IPPTA, fearing, that the move would cut time period of 30 years. The 30-year into their revenue earnings. period has brought to the forefront the The Government has taken several pitfalls of handling a single commodity steps to augment coal production over an extended period of time. The IPPTA fears that capacity in the country, in an effort The IPPTA fear that the government’s the government’s focus to promote import substitution. focus on self-reliance in coal production on self-reliance in coal Single Window Clearance System, would reduce coal imports to a trickle in simplification of guidelines for the next three to four years. A multiple production would reduce procedure and approval of mining cargo handling facility would help coal imports to a trickle plan, commencement of auctioning them sustain profits and prevent the in the next three to of coalmines for commercial sale of terminals’ slide into non-performing coal etc, are some of the initiatives. assets. They claim that it would not only four years. A multiple Various formats of e-auctions have been maximize the capacity utilization of port cargo handling facility organized to enhance sale of coalmines. assets, but also increase efficiencies. would help them sustain Coal India Limited (CIL) is giving On the other hand the stevedores profits and prevent the incentives to coastal thermal power from the non-mechanized berths at plants to encourage import substitution. the 12 major ports too have approached terminals’ slide into The graph above is a depiction of how the government to stall any move that non-performing assets. enhanced production has been able to would dilute their share of cargo. FAS, contain imports to a large extent. who have substantial investments at Coal imports from 2015 have stake in manpower and equipment registered a significant decline as machines, contend that any sharing the government focuses on reducing of the cargo would be at the expense imports. In 2019-20 the coal import of their revenue earnings. Reportedly, was projected to be 574 million metric Ishwar Achanta, President of the tons whereas the actual import was Federation of Association of Stevedores, only around 249 million metric tonnes is of the view that IPPTA’s demand to - a steep fall of 130%. The fall has been allow single commodity terminals to ascribed to market disruptions from become multi-commodity terminals was policy changes retarding the import not legally tenable.

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 42 Federation of Association of Stevedores, who have substantial investments at stake in manpower and equipment machines, contend that any sharing of the cargo would be at the expense of their revenue earnings.

Stevedores are granted licenses from of Major Ports in India. It would invest the port authorities after payment of the administration, with control and an annual fee. Unlike the PPP operators, management. The Act will provide they are not required to share revenue autonomy to the 12 major ports and with the port trusts. The stevedores are boost their decision-making powers. engaged directly by the trade for the An official from the industry, handling operations of the cargo, in the speaking to Maritime Gateway, has port premises. stated that the Government was trying A stalemate appears to have ensued. to find a way where both parties stand Should the status quo be allowed to Milind Kulkarni (Retd.), to benefit. If the terminals were to remain or was it time to remodel? Ph.D Scalar, Indian Maritime turn sick, it would not bode well for the Milind Kulkarni (Retd.), Ph.D Scalar, University, said that JNPT Government, to have foreign investors Indian Maritime University, said that started in 1989 as a container becoming diffident about investing JNPT started in 1989 as a container as as well as bulk port. However in Indian maritime industry. The well as bulk port. However just after just after commencement government was willing to go along commencement there was a huge there was a huge drop in with the stevedores for a while, but drop in bulk cargo and eventually they bulk cargo and eventually eventually they would have to find their entirely switched over to only container they entirely switched over own feet, he clarified. The assistance operations. This was mainly due to to only container operations. from the Government would be there, the reduction in dry bulk imports and This was mainly due to the but for a limited time. They would need competition from ports in Gujarat. Since to find their own revenue stream. It was reduction in dry bulk imports it was government owned port, they time to remodel, he said. and competition from ports could switch over to containers and Nothing bides forever. To quote a in Gujarat. Since it was liquid bulk. This kind of choice is not motto of a major shipping company, government owned port, they with the private operators. They must ‘Change is permanent’. The bandwidth could switch over to containers be given a chance to explore handling of for cargo volume is sufficiently broad and liquid bulk. This kind of other commodities. enough to accommodate both entities. The Major Port Authorities Act choice is not with the private New methods of subsisting need to be received the assent of the President on operators. They must be given devised for both entities to exist – draw February 17, 2021, replacing the Major a chance to explore handling of up a perfect symbiotic relationship for Port Trusts Act, 1963. It would provide other commodities. both parties to exist. The way forward is for regulation, operation and planning to change and adapt.

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 43 WEBINAR REVIEW

PREPARING THE GROUND FOR DOMESTIC CONTAINERS

India need not produce containers for just domestic purpose rather it should produce them for Middle East and Asian markets. India should start promoting containerisation. If India can divert about 15 per cent of its road transport which is currently about 64 per cent share to railways there would be a huge demand for domestic containers in the country.

for containers is projected to grow in In the opening India with the rise in exports. remarks Vikas Chaube, Should India foray into container IRTS Officer on manufacturing? How will the industry Special Duty Logistics manage sourcing of raw material Division, Ministry of A and production while keeping the Commerce & Industry, bout 55 per cent of the container fleet cost competitive? What is the size of Government of is currently sitting in various ports or investment? Is it sustainable and how India said that the on water, as against a normal average should the government support? These core issue that we are dealing with is of approximately 30 per cent, leading to are some of the intriguing questions container shortage, which is definitely less availability of containers globally over which a group of industry leaders not a good thing to have, but there is and troubling exporters, including those brainstormed in a recent webinar a silver lining for this problem too, as in India, according to the Container organised by Maritime Gateway. this is an indicator for the increasing Shipping Lines Association (India) (CSLA). Mooting the discussion on the exports in the country. It is in fact the “From the beginning of July 2020, agenda, Ravi Ramprasad, Editor-in- opportunity for the government to after months of lockdown, the US and Chief, Maritime Gateway magazine, said reach a target of $400 billion in terms Europe went on a buying spree and that the Ministry of Ports Shipping and of exports in the country this year. In started importing big time from India, Waterways, Govt. of India has recently the month of May itself the country’s China and the Far East. At the same announced that India would become exports have increased by 67.39 per cent time, Indian imports dropped due to low Atmanirbhar (Self-reliant) in container during the adverse times. In the month consumer demand locally and certain manufacturing place, a lot of excitement of March also the exports of the country restrictions placed by the government and discussion has started taking were better than that of the previous on imports from China. This created a place after this announcement. In fact, year and even better than 2019 also. major equipment imbalance as export some of the companies have already He further said that the availability of demand for containers far outweighed announced their plans to start container containers can be addressed in several the import supply,” informed Sunil manufacturing. CONCOR already has ways. As containers move in global Vaswani, Executive Director CSLA. started taking orders for Container circuits, we need to look at this as While the equipment imbalance manufacturing. In this background circulation problem and not just as one may get sorted out in due course, but the panellists discussed and what this time availability problem. Container being dependent on a single source for initiative means for India in terms of manufacturing therefore won’t solve manufacturing containers may not be investment, capacities, raw materials, the immediate problem of container prudent, especially when the demand and international competition, etc. availability as the containers that we

MARITIME GATEWAY ∙ JULY-SEPTEMBER 2021 44 containers at ports, at CSFL, hinterland, and ICDs, etc. The objective of the portal is to help in reducing the turnaround time and thereby making the containers available to the exporters and to meet their projected demand. CONCOR has already placed developmental orders for 2,000 containers to BHEL and Braithwaite for domestic use in the country. Moreover they will be made with ISO standard, and therefore the domestic containers will also serve international purpose also. The global demand for containers will be 2 million TEUs for this year and next year also due to pandemic. But the demand would come down to 1.5 million TEUs after two years. Largely this demand is now met by China and in some small part by South Korea. Major cost involved in the container manufacturing is raw materials, and about 55 per cent of raw material used in its manufacturing is Corten Steel, but this is not manufactured by the steel industry in our country. The steel industry companies when contacted manufacture and put into circulation He further said that before stepping say that the technology to manufacture won’t come back for our use instantly into manufacturing containers in India Corten Steel grade for container again. But India as a big country in the a lot of factors need to be understood. manufacturing is not an issue, but world with growing exports needs to The current shortage of containers the only thing they need for this is a have a container manufacturing facility. availability is because of the congestion minimum quantity order (of about 300 As the Minister of Commerce and that happened over the ports due to the million tonnes). Industries recently felt that it is essential pandemic and it won’t be a permanent The key problem for container to have container manufacturing in the problem that will last for long time. manufacturing however is competitive country as the country is aspiring to Moreover, the container shortage is a pricing in the international market. The move on to export-oriented growth. The circulation problem. So any container competitive price for a 20 ft 2.5 tonne call by CIM for container manufacturing manufacturing business assessment ISO container is around $2,800 in bulk has been well received by some of the must take into account all these factors order and $2,100 in small orders. In agencies. Besides this some shipping into consideration. order to manufacture containers for companies have also approached the The ministry of commerce’s logistics that price in India Corten Steel should be govt saying that in the last one year department along with Container made available for a price of around they have experienced very dependent Shipping Lines Association (CSLA), Indian `45-50 a kg, instead of the typical situation on some companies and one Railways, and CONCOR has taken several expected price of `75 a kg. Some kind particular country for the availability of steps to reduce shortage of containers of price cut has to be shared by the containers. In fact it is their experience arisen due to container circulation container manufacturers and steel that they need not put all their eggs problems during the pandemic, by industry for the optimum price of the in one basket, they felt that there facilitating repositioning of the empty containers. needs to be a fair play in the container containers through many initiatives. There is definitely a lot of manufacturing space. Moreover, it is not As far as improving the efficiency opportunity to take container Indian shipping companies but foreign in container logistics movement is manufacturing forward in the country, companies who have felt that there is concerned, the National Industrial as the govt. and the arbitrariness in terms of allocation of Corridor Development Corporation shipping lines too these container companies. So that is (NICDC) Logistics Data Bank, which is a are eager to develop one of the factors that led to thinking portal developed to track and trace the multiple container about container manufacturing in movement of containers in the country, manufacturing India as they approached us and said the portal is currently in an advanced facilities. that they would purchase containers shape and with the help of this it is Sunil Vaswani, manufactured in the country. possible to monitor the dwell time of Executive Director

JULY-SEPTEMBER 2021 ∙ MARITIME GATEWAY 45 CONTAINER MANUFACTURING

raw material is problem in India that After two years In order to we are facing. If India has to do well the demand manufacture like China in container manufacturing Indian steel is expected to The containers for then the issue raw materials needs to be companies can come down to competitive that price in addressed properly. Global demand 1.5 million manufacture price for a India, Corten Bijoy Paulose, Chairman & Managing for containers Corten steel, teus 20 ft 2.5 Steel should will be 2 provided Director, VS & B Containers Group, said 55% of raw tonne ISO be made million teus they have that self-reliance is different from global material container available for a for 2021 & a minimum manufacturing. We used in is around price of around 2022 due to quantity order manufacturing $2,800 in `45-50 a can become self- the pandemic of about containers is bulk order and kg, instead reliant in container 300 million Corten steel, $2,100 in of the typical manufacturing by tonnes. which is not small orders. expected price using whatever boxes produced in of `75 a kg. that we make in India India. itself for the domestic use in the country. The container prices announced by CONCOR are internationally competitive. Prices Container Shipping Lines Association technical and financial viability criteria. for 20 ft container in China are $3,900 (India), said that the merchandise CONCOR has issued a tender last week to $4,000, so $3,800 per container exports have shot up from India in the for the development of 6,000 containers, by CONCOR without GST is definitely latest April-May 2021 it was $62.84 billion and foreign companies have been competitive. This year in the first four which was an increase of 112.29 per cent excluded from the process. This is in Months China has already produced 1.8 over previous year. All this could not addition to the tender that CONCOR has million containers, in that way it would have happened without the support given to BHEL and Braithwaite for the produce about 4 or 4.5 million containers of shipping lines which have made development of 1,000 containers each. in a year. India can very soon definitely containers available to the exports. For The estimated price for the produce raw materials like concocting every 100 containers that go into the US manufacturing of 6,000 containers is and Corten steel for container ports only 40 are coming back due to about `196 crore, and this boils down heavy congestion at ports, but shipping a price of `2.77 Lakhs per container. manufacturing and the opportunities lines have made containers available for The price of steel is fixed at` 70 per kg. for container manufacturing in the exports in spite of the containers getting The steel manufacturing companies country are plenty. stuck at transshipment ports. like SAIL, Tata Steel, and JSW have Capt V K Santosh Sinha, shown positive signs to develop high Rajakrishnan, Chief IRSME, Executive resistant Corten steel for container Executive Officer, Director (P&S), manufacturing. Tristar Container Container Corporation Participating Services (Asia) Pvt Ltd of India, said that in the discussion said that this problem the shortage in Rudra Shriram, has arisen because container availability Joint President, DCM of non-availability will be overcome in Shriram Industries, containers rather than shortage of a short period from six months to one said that Steel is containers. We have around 43 million year. CONCOR has received a very good the crux of raw containers in the world and if we response for the 50 per cent discount material for container consider that a container is a 15 year old it has given for empty containers manufacturing. The steel prices asset, it stands to reason that every year for the inland transport from port recently have increased by 20 per cent, about 7 per cent of the containers which to hinterland. After seeing the great moreover Indian companies till date is about 3.5 million containers disappear. response CONCOR has extended the don’t manufacture Corten grade steel. Therefore, we need manufacturing of dates for the initiative. They manufacture a similar grade called that scale to fit into that cycle. India He further said that CONCOR has IRSF-4197. Even if there are companies needs not produce containers for just been purchasing containers from which produce Corten grade steel domestic purpose rather it should China for the last five years. But in spite they take a minimum of six months to produce them for Middle East and Asian of reducing the eligibility criteria for deliver. Even in Corten grade steel also markets. India should start promoting containers very few India companies there are different thicknesses available. containerisation. If India can divert have been able to meet the eligibility The prices of the Corten steel is not fixed about 15 per cent of its road transport criteria and they have not qualified. one they keep changing. Corten steel which is currently has about 64 per cent So this time we have an EoI where we as a raw material is used in 75 per cent share to railways there would be a huge requested probable manufacturers to in the manufacturing of a container. So demand for domestic containers in the give their suggestions on eligibility both as a manufacturer basic availability of country.

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