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New Kid on the Hinterland With a distinct advantage of being strategically located with access to the traditional domestic market, adjacent countries and also being a vantage entry point for the South-East Asian markets, this region is now the hot zone for infrastructure, connectivity and cargo movement Block 02 MARITIME GATEWAY / MARCH 2018 Automate and electrify your terminal.

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From Hype to Reality

n recent times my inbox is flooded of trade and industry. The amount of with invitations to numerous trade and investments committed and MoUs Iinvestors summits. Being a witness to signed at these summits are astonishing. the trends in maritime trade, I try to get a This hype of MoUs is now infectious. sense of how the investments are going to Take the example of Advantage Assam, impact the growth in the manufacturing which announced signing of 200 MOUs space. While in the past the trade meets and investment proposal to the tune of were mostly organized by the trade bodies, `1,00,000 crore was committed. Similarly, The million-dollar but now it has become a regular platform Magnetic Maharashtra Summit witnessed for states to showcase opportunities and 4,106 MoUs worth `12.10 trillion. The list question is how much market themselves to the world to attract is endless. But the million-dollar question of it (MoUs signed) is investment. Years back Vibrant Gujarat is how much of it is getting translated into set the trend of shifting the goal posts for reality? How many of these enthusiastically getting translated into the trade meets and make them rather announced projects are grounded!? platforms for investors to have a firsthand reality? How many of experience of the state’s resources and The reality dawned on one of India’s most these enthusiastically conduciveness for the growth of their showcased state events Vibrant Gujarat business. Over a period of time this Summit where the word ‘investor’ was announced projects business model has been picked up by silently dropped. Reports indicate that most of the states in the country. While many of the tall investment claims made at are grounded!? there are some states with emerging these summits remain rhetoric and void of economy like West Bengal (Bengal Global action. In some cases it is to the extent of Business Summit), Odisha (Invest in recycling the MoUs year-after-year. Odisha), Uttar Pradesh (UP Investors If the manufacturing growth and job Summit 2018), Andhra Pradesh (The creation has to be a reality, states should Partnership Summit) which are scouting take a more pragmatic approach towards for investments to keep up the momentum converting the investments into reality by of economic and trade growth, other states creating a better ecosystem resolving the like Jharkhand (Momentum Jharkhand challenges of regulatory framework, land Investors Summit) and Assam (Advantage allotment and skilled manpower. Assam) with relatively smaller economic growth also joined this bandwagon with Otherwise soon the euphoria will die down lookout for fresh investments. But what and the growth momentum is unlikely to surprises me is the fact that states like sustain. Maharashtra (Magnetic Maharashtra summit), Karnataka and Tamil Nadu with fairly established manufacturing sectors still remain in the race. The positive trend about these summits is that it has made the policy makers much R Ramprasad more responsive to the changing dynamics Editor and Publisher [email protected] Editor and Publisher R Ramprasad [email protected]

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Maritime Gateway is printed by R Ramprasad Published at Gateway Media published by R Ramprasad on behalf of Pvt Ltd #407, 5th Floor, Pavani Plaza follow us on @maritimegateway Gateway Media Pvt Ltd, #407, Khairatabad, Hyderabad – 500 004 5th Floor, Pavani Plaza, Telangana, India Khairatabad, Hyderabad – 500 004, Telangana, India Regd. Office: H.No. 8-2-293/82/A/379 & 379/A, 2nd Floor, Plot No. 379, Road No. 10, Printed at M/s Kala Jyothi Process Pvt Ltd, Jubilee Hills, Hyderabad – 500 033. 1-1-60/5, RTC Cross Roads, Musheerabad, Hyderabad – 500 020. CIN: U74900TG2007PTC054344 Editor: R Ramprasad EDITORIAL ADVISORY BOARD Views expressed in the articles are those of the writer(s) and may not be shared by the Sabyasachi Hajara Anil Singh Dhruv Kotak editor or members of the editorial board. Former Chairman, SCI Former Sr VP & MD, DP World, Subcontinent Director, JM Baxi Group Chairman Editorial Advisory Board Unsolicited material will not be returned. Anil Yendluri Manish Saigal Joachim von der Heydt Director & CEO, Krishnapatnam Port MD, Alvarez & Marsal Copyright Chairman, Bengal Tiger Line, Singapore Company Ltd Jasjit Sethi CEO, TCI Supply Chain Solution No material published here should be re- A Janardhana Rao Adarsh Hegde Joint Managing Director, Managing Director, Indian Ports Association produced in any form without prior written Allcargo Logistics Capt Dinesh Gautama President, Navkar Corporation Limited permission from Gateway Media. Julian Michael Bevis P Jairaj Kumar Senior Director, Group Relations, South Asia Capt Sanjeev Rishi Chairman & MD, Ocean Sparkle Limited Feedback A.P.Moller-Maersk Advisor, Worlds Window Infrastructure & Logistics Pvt Ltd Shardul Thacker Navin Passey Readers are advised to send all feedback and Capt Deepak Tewari Partner Managing Director, Wallem Shipmanagement (India) Pvt Ltd Chairman, Container Shipping Lines Association (CSLA) Mulla & Mulla & Craigie Blunt & Caroe comments to [email protected] CONTENTS VOLUME 10 | ISSUE 06 | MARCH 2018

38 INFRASTRUCTURE DTDC in the driver's seat DTDC is getting agile as it grows. The new transshipment hub in Samalkha is equipped with state-of-the-art equipment to boost throughput efficiency, as the volume of cargo grows. 32 STATE FOCUS Sunrise state ready to shine Having notched the third position in the national logistics index within just four years of formation, the sunrise state is now chasing a larger vision to be among the top 15 states in the Global Competitiveness Index. North East 44 COLD CHAIN In pursuit of unbroken cold chain New Kid on the Agility India organized a one of its kind industry summit on Cold Chain dedicated to the pharmaceutical and life Hinterland Block sciences sector, their challenges and achieving objective solutions through collaboration, awareness, education, and implementation of technology 24 35 and best practice. COVER STORY JET CITY Changing logistics With a distinct advantage of being strategically located with access to landscape the traditional domestic market, adjacent countries and also being a 46 vantage entry point for the South-East Asian markets, this region is now Based on the concept of DIGITALISATION inclusive lifestyle and industrial the hot zone for infrastructure, connectivity and cargo movement. solution, Jakkampudi A digital platform Economic Township, one connecting all stakeholders of the 100 Economic Cities ODEX helps the maritime INTERVIEWS proposed for Andhra Pradesh industry swiftly ride the digital aims to bring together housing, wave as it connects stakeholders employment, social amenities, to manage their workflow and manufacturing and integrated collect payments. 37 logistics into one space. RELIABILITY IS WHAT CUSTOMERS 48 LOOK FOR 36 WISTA DAY BHAVIK MOTA JNPT High Five to WISTA India HEAD, TRADE AND MARKETING, MAERSK LINE INDIA PSA expands capacity on WISTA members came together to celebrate fifth anniversary of the west coast WISTA India. The event also PSA is expanding capacity reflected the visibility WISTA 40 to be future ready and has gained in the maritime THE GERMAN CONNECTION provide world class logistics industry. infrastructure on the west coast. ANDREAS BULLWINKEL MD, CONTAINER TERMINAL, WILHELMSHAVEN JADEWESERPORT MARKETING GMBH & CO. KG OTHERS 49 08 News in Brief MORE AND MORE PROCESSES 10 Point Blank NEED TO GO ON EDI 12 Numbers & Graphs PS ATREE, PRESIDENT, DELHI CUSTOMS CLEARING 14 News AGENTS ASSOCIATION (DCCAA)

BRIEF NEWS

DP World Water sports centre made from containers Intermodal adds block within provide access to div- train ing points at heights of 4 m DP World operated (13 ft) 8 m (26 ft) and 11 m Container Rail Road (36 ft). Service (CRRS) and Sweco, the architect firm has leading CHA and installed a building with toi- freight forwarder AR lets, changing room, storage Shipping together and outdoor showers. This flagged off maiden ex- is also made from shipping port block train from containers that are painted Ludhiana to Mundra. yellow but the exterior is The fully loaded train project named Water recycled shipping containers. lined with low-maintenance was flagged off by ASports Center Halsskov, The containers are painted heat-treated sustainably- HK Khatana, Deputy is located in a former ferry bright yellow and stacked sourced wood. Both the Commissioner of port in Korsør, Denmark. atop each other. Holes have facilities and diving structure Customs from ICD Its most defining feature is a been made in the containers are illuminated with low- Dhandari Kalan, diving tower made from three to aid ventilation and stairs energy LED lighting. Ludhiana. Through CRRS, DP World continuously works towards providing supply chain solu- tions that enhance Barges reliability within the Govt may allow foreign vessels in coastal trade community and to move waters work as a catalyst containers towards increasing The government rail volumes. from JNPT to is considering MbPT a proposal to permit foreign CI1 service The Ministry of Ship- vessels to operate makes maiden ping is considering in Indian coastal waters with a call at APM a plan to soon ferry view to reduce Terminals containers by barge logistics cost, Mumbai from JNPT to MbPT enhance port ef- instead of the longer ficiency and boost domestic shipping industry. The move would facili- The 4,051-teu XIN land route. The aim tate transportation of cargo between different ports along the country's NAN TONG operating is to bring down con- coastline. Currently, the Cabotage rules, which governs this activity, on COSCO’s CI1 ser- gestion in Mumbai, make it difficult for foreign flagged vessels to handle cargo between vice made its maiden call at APM Termi- Thane and Bhiwandi. two domestic ports. The move would also help cut shipping rates and transportation time. According to traders, there is a scarcity of Indian nals Mumbai, adding The plan encompasses another important developing a large size mainline vessels in the country and it impacts smooth movement of cargo and consignments. Far East service for go-down in Mumbai India’s importers to store the contain- and exporters. Far ers, the process for ONE offers extensive liner network East trade services which will begin comprise 62 per cent soon. When imple- Ocean Network Express Pte Ltd, or ONE, the new merged con- of the terminal’s tainer liner business entity of MOL, “K” Line and NYK, plans to mented, it will bring throughput. The CI1 offer an extensive liner network service portfolio covering over 100 service will call on down the total num- countries internationally. Its key focus will be on enhanced service ber of trailer trucks Pipavav, Shanghai, and innovation. Some of the salient features of ONE are a global Ningbo, Shekou, entering the city by fleet of over 250 vessels, active participation in all major global Nansha, Singapore 1,000 daily, in addi- trade lanes, deployment of the latest IT systems and an extensive and Penang. The tion to the hundreds terminal ownership portfolio. Bookings have commenced. ONE service consists of five of smaller trucks and starts operations from April 2018. COSCO vessels and tempos. one from Wan Hai.

08 MARITIME GATEWAY / MARCH 2018 APM Terminals Pipavav adds Maersk Congestion at Kolkata Dock FM3 service System The FM3 service connects India’s customers with key global markets. The recently The 9662 teu capacity Maersk Salina arrived at APM Terminals Pipa- introduced vav on January 15th representing the first call of Maersk Line’s FM3 Direct Port Service to APM Terminals Pipavav. The service links India to key Delivery markets through port calls in Tanjung Pelepas, Colombo, Nhava Sheva, that aims at Singapore and the Chinese ports of Dalian, Xingang, Qingdao, Busan, facilitating Gwangyang and Ningbo. The Maersk Salina loaded seafood, polymers, trade has chemicals, dyes, tires etc. for export. Imports handled included home led to severe appliances, auto parts, machinery, plastic items, electrical/electronic congestion at the Kolkata Container Terminal. goods and furniture. Kolkata Dock System, being one of the oldest city-based ports in the country, has considerable TCI revenues and margins looking up space constraint at the terminal, besides lack The company’s standalone revenue and net margins grew by 24.5 per of infrastructure. Moreover, the Kolkata Police cent and 65 per cent respectively in Q3 2017. Transport Corporation of authorities have imposed road restrictions of al- India’s financial results for the third quarter ended 31 December 2017 most 7 hours a day on a staggered basis since a reveals total revenue for the quarter registered a growth of 24.5 per cent year on the movement of heavy vehicles around over corresponding quarter last year while the Profit after Tax registered the port area, thus restricting the movement of a growth of 65 per cent during this period. cargoes/containers to/from the port. Vessel turnaround time continues to increase, consid- ering pre-berthing delays and period towards Indian refiners to raise capacity by 2030 berth occupancy for cargo operations. Refiners in India are planning to raise their capacity by 77 per cent to about 8.8 million barrels per day by 2030 in order to meet the country’s ODeX receives investment rising fuel demand. According to a government report released by the from Invoice Bazaar Ministry of Petroleum and Natural Gas, this expansion plan will ensure the nation’s surplus production of diesel and gasoline will last until 2035, Invoice Bazaar, a FinTech Supply Chain although it is expected that by 2040 it will turn into a deficit. The report Finance platform with presence across Asia, also recommended refiners to set up petrochemical projects and to cut announced an undisclosed investment in online their production of petcoke and fuel oil. India’s gasoline, diesel and jet document exchange platform ODeX. As part fuel demand up to 2030 is set to grow at a rate of around five per cent of ODeX’s proposition, it already works with each year. Invoice Bazaar in India for enabling payment settlements to shipping companies. ODeX along with Invoice Bazaar is working on solv- A. P. Moller-Maersk grows revenue ing the Supply Chain Finance problem in the A.P. Moller-Maersk has made a fourth shipping industry. The investment will be used quarter profit of $386 million, attribut- towards expanding ODeX’s footprint in Middle ing the rise in earnings primarily to its East as well as towards product development. container shipping business. Underlying profit for the continuing operations was New service connects Haldia $356 million, compared to a loss of $496 million in 2016. The profit consisted of and Chittagong Port $1 billion related to the transport and lo- Haldia International Container Terminal has gistics business. Highlights from 2017 include $14 billion worth of M&A achieved another milestone with the com- transactions, including welcoming Hamburg Süd to the A.P. Moller- mencement of a new Bangladesh service under Maersk family, agreement to sell Maersk Oil, sale of Maersk Tankers the Indo-Bangladesh Coastal Protocol. Located and Mercosul – the Brazilian container line – as well as the sale of the 90 km from Kolkata, the Petrapole-Benapole remaining 19 per cent stake in Dansk Supermarked Group. border handles $3.4 billion of the $6 billion bilateral trade with Bangladesh. In 2016-17, BMCT’s second service with Hapag-Lloyd Indian exports accounted for more than 70 per cent of the trade through this gate. PSA’s Bharat Mumbai Container Terminals Pvt Ltd (BMCT) is continu- ing on the growth path with the arrival of Hapag-Lloyd’s Express Rome However, due to the slow pace of border clear- at the terminal, marking BMCT’s second weekly service call and its first ance, a truck normally takes 22 days, including direct Europe service. The vessel operates on the Indian Ocean Service two weeks on the Indian side, to complete its (IOS) linking India and the Middle East directly with the North Europe- trade run. The Bangladesh trade was eagerly an ports of Antwerp, Hamburg and London. Its inaugural call at BMCT seeking an alternate efficient mode, delivered will be followed by three sister ships from Hapag-Lloyd, plus three and by a short coastal route with reliable vessel one vessel(s), respectively, from service partners Hamburg Süd and CMA service, delivering goods right up to Dhaka and CGM. Approximately 3,700 teus were handled during the call at BMCT. Chittagong ports.

MARCH 2018 / MARITIME GATEWAY 09 POINT BLANK

India is the most We are ready to sign potential country for the bilateral and trilateral logistics industry at the agreements to turn the moment. As India has transit route passing adopted GST and made through Chabahar into a the entire country as one strategic pathway serving market, Emirates Logistics the reinforcement of does not want to miss out regional ties. Chabahar’s on this ripe moment.” gateway potential has to – Johan Bergwerff be fully utilised.” MD, Emirates Logistics Global – Narendra Modi Prime Minister of India

As India begins dredging of the Brahmaputra and Barak, Dhaka too is keen on We welcome the Commerce developing its waterways. Ministry’s announcement An investment of `40,000 to evaluate new models of crore would be made to transport to reduce logistical develop the waterways up bottlenecks and high cost of to the Chittagong port.” trade in India. Together, these – Sheikh Fazle Fahim will address issues related Senior Vice President, FBCCI to cost, complexity and turnaround time.” – Julian Michael Bevis Senior Director, Group Relations South Asia, The Maersk Group.

We are all for promoting connectivity… but on the OBOR, our position is that since the so-called CPEC forms part of OBOR and it passes through Indian territory, that is where our difficulty lies.” – Gopal Baglay Spokesman, Indian External Affairs Ministry

10 MARITIME GATEWAY / MARCH 2018

NUMBERS & GRAPHS

2017 SHIP DISMANTLING RECORD

CONTAINER TRADE GAINS THE NEW GIANTS OF CONTAINER SHIPPING MOMENTUM IN 2017 Vessel types Ships Capacities Two-way volume (1000 teu) Carriers SNP NP NPP 18+ 22+ Exist Order total TEU East West trades Asia-WCNA 9,136 CAM CGM 28 28 25 3 9 74 19 1,270,000 Asia-North Europe 7,560 CoscoSL 9 39 20 28 - 67 29 1,427,000 Asia-Med 3,995 Evergreen - - 20 11 - 20 11 501,000 Asia-ECNA 3,895 Hapag-Lloyd - 28 11 6 - 45 - 618,000 North Europe-North America 2,685 Hyundai 1 18 - - - 17 2 224,000 Med-North America 1,105 IRISL - 4 - - - - 4 58,000 East-West Total 28,377 North-South trades Maersk Line 13 36 17 31 - 86 11 1,434,000 Asia-South Asia 2,659 MSC 4 43 32 20 11 90 20 1,689,000 Asia-Middle East 2,329 ONE - 11 25 6 - 29 13 580,000 Asia-Oceania 1,909 PIL - 12 - - - 3 9 143,000 Europe-South Asia 1,642 Europe-Middle East 1,548 Yang Ming 1 - 20 - - 16 5 292,000 Asia-ECSA 939 ZIM 3 1 - - - 4 - 41,000 Asia-West Africa 825 NOO 2 - 4 - - - 6 82,000 Europe-ECSA 777 Grand Total 61 220 174 105 20 451 129 8,361,000 Asia-Southern Africa 607 North-South Total 13,234 Source: DynaLiner

12 MARITIME GATEWAY / MARCH 2018

NEWS

LOGISTICS Coal India Alibaug. A 3-km elevated Gateway road and a 4-km tunnel allocates more of the corridor will pass Distriparks DHL Express coal to power through Sanjay Gandhi announces Q3 expands in sector National Park. FY18 results The multi-modal corridor Gujarat will have an eight-lane high- way and a Metro line and will be built in two phases. The 80-km first phase con- necting Navghar to Chirner near JNPT is estimated to cost `10,000 crore, with an Coal India dispatches more additional environment cost coal to the thermal power of `10 crore. The 47-km Comparing Q-3 FY 18 Vs sector. During the period second phase will con- Q-2 FY 18: revenue from between April 2017 and nect Chirner to Alibaug. operations went down 2.0 DHL Express has inaugu- January 2018, correspond- The corridor will have 34 per cent to `340.2 crore. rated its service centre in ing to the 10 first months bridges of varying sizes, 21 EBITDA (Exc. investment Rajkot. This is its fourth of the Indian fiscal year, pedestrian and 34 vehicular income) increased 2.5 per service centre in Gujarat, Coal India supplied 371.8 underpasses, and four road cent to `70.0 crore. Profit located in the Saurashtra million tonnes of coal to over bridges across railway before tax increased by region. The 2,518 sq. ft the thermal power sector, tracks. 0.8 per cent to `33.0 crore. facility will support the an increase of 6.8 percent Profit after tax went up by growing demand for inter- year-on-year. 10.0 per cent to `27.9 crore. national express services in Allcargo bags Gujarat. With Rajkot set to On that same period, the Golden Peacock CFS: Throughput was become one of the largest company sold 103.1 million down 4.7 per cent to 97,104 automobile zones in Asia, tonnes of coal to the non- Award teus. and exports from Jamnagar power sector, an increase Rail: Throughput was down and Morbi on the rise, the of 8.8 per cent. Meanwhile, 4.1 per cent to 58,720 teus. opening of this facility is Coal India has still failed its just in-time and reinforces production target by 29.2 DHL’s commitment to con- million tonnes, ending those nect Gujarat to the global 10 months with an output JNPT to launch market. of 440 million tonnes. Uber-type model Allcargo Logistics Ltd to reposition Cochin Shipyard By the end of January, the has been awarded the pithead coal stock of Coal prestigious Golden empties to construct high- India stood at 34 million Peacock HR Excellence tech vessels tonnes. In the last fortnight Award. It was presented In a bid to cut congestion of the month, offtake stayed at the 12th International and bring down logistics Taking another step ahead consistently at 300 rakes. Conference on Corpo- cost for the trade, JNPT will to realize the potential of Since then, the daily aver- rate Social Responsibil- commission an Uber-type inland waterways in the age has eased to 226 rakes ity organised by the model to evacuate empty country, Cochin Ship- in February, still higher Institute of Directors. import containers for repo- yard Limited and United than 209.8 rakes per day in sitioning. Neeraj Bansal, Shipbuilding Corporation October last year. The Golden Peacock Chairman in-Charge, JNPT signed a MoU to design and HR Excellence Awards said, "The court has given a develop contemporary ves- Multimodal are presented to or- verdict in our favour and the sels for inland and coastal corridor ganisations who have tender process has received waterways. displayed a consistent response from 13 opera- connecting Virar track record in achiev- tors and we will finalise a CSL & USC will col- to Alibaug ing excellence in their few operators shortly." The laborate for development of HR policies and people tender involves selection of high-speed vessels, river-sea The Maharashtra State management practices. large transporters who will cargo vessels, passenger Wildlife Board will be set- Allcargo has been rec- deploy tractor-trailers both vessels, dredgers, and ting up a special committee ognised for constantly owned and aggregated for other watercrafts for Indian to study the proposal for implementing newer evacuating empty contain- Waterways and coastal the 126-km multi-modal HR excellence bench- ers from a distance between shipping. corridor connecting Virar to marks. 40-1,100 km.

14 MARITIME GATEWAY / MARCH 2018 Bangladesh seeks back. Ascendas India Trust APM Terminals a clearly defined multimodal has acquired long-term GST structure. Currently access to Kolkata leasehold rights in the ware- Pipavav adds new there is no clearly defined Port houses spread over 800,000 Far East Service multimodal GST structure sq ft and leased them to where vehicle makers could Bangladesh has sought Arshiya Group's subsidiary “Cl1” hand over finished goods access to Kolkata Port to of Arshiya Lifestyle Ltd at M.V. XIN NAN TONG through a single document carry out EXIM activi- the Far East Cl1 service pre-agreed rentals. Arshiya to a third-party logistics ties. The access may help operated by COSCO and Bangladesh to attract Indian Lifestyle would operate and Wanhai made its first call service provider. investments in SEZ on the manage the warehouses to APM Terminals Pipavav. West Bengal border. A retaining the surplus income The Cl1 service links India JFC Finance to formal presentation in this from rentals and value- to key markets globally regard was placed during added services post payment and will facilitate a direct acquire Palogix Commerce Secretary-level of pre-agreed rentals. connect to Malaysia. It will Infrastructure bilateral talks in Dhaka. The also add to the liner options The deal for these ware- ICICI Bank and HDFC proposal, will contribute that serve the ever-growing houses located in the Bank have approved JFC to the BBIN (Bangladesh, markets of the Far East Arshiya Free Trade and Bhutan, India, Nepal) sub- sector. The ports of call Finance (India) Ltd's bid Warehousing Zone has regional initiative. BBIN for this line are Pipavav- to acquire the insolvent initiative can help both the been concluded at price of Penang-Shanghai-Ningbo- Palogix Infrastructure, a countries access the Chit- around `6,500 per sq ft. It Shekou-Nansha-Singapore- 20-year old firm in railways tagong and Mongla ports. also has additional develop- NhavaSheva-Pipavav. logistics. JFC Finance has Chittagong port is battling ment potential of 2.8 mil- proposed to acquire close with capacity constraints. lion sq ft and that will also In the vessel’s first call, to 80 per cent in Palogix Poor rail network and over be sold to Ascendas India APM Terminals Pipavav for `100-crore. While the dependence on road adds Trust. handled key imported com- liquidation value available modities such as polyester to logistics cost in Bangla- to the operational creditors fabric, LED tube lights, desh. As a result, industrial is zero, but JFC Finance and commercial activities E-way bill SS pipe, PVC resin & auto solar cells and loaded major has proposed to clear all are mostly centered around rollout deferred dues to the government, the Chittagong and Dhaka. By exports of castor seed meal, On the day the Union raw cotton, vinyl sulphur operational creditors and claiming access rights to employees. Kolkata port, Bangladesh is Budget 2018 was pre- ester and seafood. trying to correct the policy sented in Parliament, gap. Better connectivity and technical glitches in the Emirates Logistics access to Kolkata can add e-way bill system dis- Single GST rate expands network to the potential of Indian rupted the movement of for multimodal in India investments in Bangladesh. goods across states. The transport electronic bill system was Dubai based Emirates inaugurated on February Logistics is focusing on the Arshiya sells six 1 after undergoing trials. high-potential Indian logis- warehouses to CBEC announced that tics industry with a mission Ascendas, leases the trial phase would to be a dominant player as continue until further it expands its operation and them back network in all major busi- orders. In collaboration ness districts in India. Emir- with GST Network, the ates Logistics will focus on NIC had been conduct- both First mile and Last ing trials for e-way bill The Commerce Ministry mile logistics along with system since January has pitched for a single warehousing and supply 16. The deadline for GST rate for multimodal chain. In fact, they will be a implementation of e-way transportation of vehicles 3rd party solution for all the bill was brought forward to improve logistic services logistics needs of customers. from April 1 to Febru- and reduce the compliance Emirates Logistics comes Moving towards an asset- ary 1 after GST revenues burden on automobile man- with a proven capability of light business model, Ar- began to slide in last Oc- ufacturers. Society of Indian successful operations with shiya has monetised its six tober. GST council asked Automobile Manufactures global giants like IKEA, warehouses in Panvel near states to choose their (SIAM) had approached the Unilever, DAIKIN, Adidas, Mumbai by selling them to own deadlines for intra- logistics department of the etc. and is confident of Ascendas Property Fund for state movement of goods Ministry raising issues faced creating relationships with `534 crore and leasing them before June 1, 2018. by companies due to lack of many big brands in India.

MARCH 2018 / MARITIME GATEWAY 15 NEWS

Snapdeal sells crore for over a five year Assam Summit Samir J. Shah period, i.e. from 2017-18 to logistics arm to 2021-22. sees huge Future Group conferred “WCO investment Certificate of In addition, 48,877 km Snapdeal’s parent Jasper In- of projects under other commitments fotech has sold its logistics Merit” ongoing schemes like arm Vulcan Express to Fu- NH (O), Special Acceler- ture Group’s supply chain ated Road Development solutions subsidiary for `35 Programme in North East crore. The acquisition will (SARDP-NE), Externally help Future Group to boost Aided Projects (EAP) and its last-mile capabilities for roads projects in Left its e-commerce and retail Wing Extremism Affected Samir J Shah, Part- business. This transaction Areas (LWE) are also to ner of JBS Group of will also help Future Group be implemented during the Companies has been to work on its new vision of same period. This has an conferred the “World Retail 3.0, where the group approved additional outlay Customs Organization plans to up its e-commerce of `1,57,324 crore. game. (WCO) Certificate of Merit” representing In- dia on the occasion of National Logistics Highest ever International Customs Portal to be investment in Day 2018 for render- developed ing exceptional service Assam's investment scout- infrastructure to the International ing exposition "Advantage Customs Community. Assam" attracted series of The selections for 2018 investment proposals. In were announced by the the two day event as many International Customs as 200 MOUs were inked Division, Central Board and investment proposal to of Customs and Excise, the tune of `1,00,000 crore Ministry of Finance. were committed. Reliance The WCO Certificate Group of Industries an- of Merit was awarded nounced an investment of by Shiv Pratap Shukla, close to `2500 crore in next Union Minister of State three years. Assam Finance Infrastructure continues to for Finance, Govern- Minister, Himanta Biswa be on top of the govern- ment of India. The Finance Minister, Sarma said that `1500 crore ment’s agenda to boost Arun Jaitley, in his Budget investment is coming in investment cycle. Finance 2018-19 presentation, has tourism sector. Mahindra minister Arun Jaitley Impetus being announced that the Depart- will invest in tourism infra- proposed to raise the total given to highway ment of Commerce will structure in Assam. World allocation for the sector to be developing a National Bank is offering `1,000 `5.97 lakh crore in 2018-19, projects Logistics Portal as a single crore and Ministry of Ship- up by over `1 lakh crore in Including Bharatmala Pari- window online market ping has sanctioned `1,250 the current fiscal. This is yojana Phase-I, 83,677 km place to link all stakehold- crore, thus total of `2,250 highest ever allocation for of highway sector projects ers. It proposes to link all crore is ready for invest- the sector and the govern- are proposed to be imple- the seven different relevant ment in developing inland ment is committed to raise mented with an overall ministries, including ship- water transport in Assam it further. cost of `6,92,324 crore ping, road transport and and N.E. Terming infrastructure as over a five year period. highways, railways and civil Government of India has the growth driver of econ- The Cabinet had accorded aviation, which is expected sanctioned `250 crore for omy, he said the country approval to the investment to significantly benefit the dredging some parts of would need massive invest- proposal for the umbrella logistics industry. The Fi- Brahmaputra and Barak ment in excess of `50 lakh highway sector programme nance Minister said that to which fall in Bangladesh. crore over the coming years. Bharatmala Pariyojana carry the business reforms The government has also This will increase growth of (BMP) Phase-I on October for ease of doing business sanctioned 6 modern ports GDP, connect and integrate 24, 2017 for development/ deeper and in every state of on the bank of river Brah- the nation with a network upgradation of 34,800 km India, the government has maputra and 56 modern of roads, airports, railways, of National Highways with identified 372 specific busi- jetties which will start its ports and inland waterways. an outlay of `5,35,000 ness reform actions. service very soon.

16 MARITIME GATEWAY / MARCH 2018 PORTS istries on a case-by-case OOCL announces Montreal Port basis to seek security inputs. WM3 for Asia- Authority & The security agencies will Major Ports Europe trade Mundra Port provide the inputs in 12 weeks and price bids will handle 560.97 mt OOCL is extending its ink Cooperative not be opened till security during April 2017 Mediterranean service Agreement clearance is accorded by the to Jan. 2018 network to the Middle East Shipping Ministry. and Indian Subcontinent by introducing its new Middle East/Pakistan/India - West New IAGX direct Mediterranean Service service connects (WM3) that provides direct linkage between the Middle Upper Gulf & Iraq East, Pakistan, India, Italy, from KICT and Spain, France and Egypt, Mundra offering more competitive During its ongoing trade and reliable services than mission to India, the transhipment options. It Montreal Port Authority also provides the fastest has signed a cooperative transit time to the West agreement with Mundra Mediterranean, particularly Port. This agreement aims to the Italian market. to develop cooperation in Major ports have recorded marketing and business a growth of 4.58 per cent In addition, the strategic development while shar- and together handled hubs in Khor Al Fakkan ing information on marine 560.97 million tonnes of and Jebel Ali will allow it to operations and industry best Prime Maritime has an- cargo during the period further connect its services practices. nounced a new joint service April 2017 to January 2018, to various OOCL networks The Port of Montreal and with Tehama Shipping as against 536.41 million in the region, thus offer- Mundra Port both receive Services to operate the tonnes handled during the ing exceptional flexibility containerships, notably from India Arabian Gulf Express corresponding period of and more shipping options major international ship- (IAGX) service connecting the previous year. For the to customers. WM3 port ping lines such as MSC and Kandla International Con- period from April 2017 to rotation: Khor Al Fakkan - Hapag-Lloyd, CMA CGM, tainer Terminal and Mun- January 2018, eight ports, Jebel Ali - Karachi - Mun- OOCL and Maersk. They i.e. Kolkata, including Hal- dra directly to Upper Gulf dra - Nhava Sheva - Jeddah ensure connections between dia, Paradip, Visakhapat- and Iraq, on weekly basis. - Suez - Malta - La Spezia ports on North America’s nam, Chennai, Cochin, The IAGX service will pro- - Genova - Barcelona - East Coast and Mundra New Mangalore, JNPT and vide an optimal link with Valencia - Tangier - Fos - through transhipment ports Deendayal have registered the quickest transit time Genova - Malta - Damietta in the Mediterranean. positive growth in traffic. from Kandla and Mundra - Suez - Jeddah - Khor Al for all import volumes from Fakkan. the Indian Subcontinent, Port (Apr 2017- Traffic Security clearance South-East Asia, Far East, Jan 2018) growth (per Siemens to help for bidders valid the Mediterranean, Europe cent) Navy modernise for 5 years and North America into Cochin Port 18.36 old ships Hamad, Dammam and Paradip 16.01 Security clearance granted Umm Al Qasr. to companies bidding for Siemens Ltd has teamed The service strengths in- Kolkata [incl. 13.47 up with the Indian Navy to port projects, and those clude: accepting all kinds of Haldia] modernise its fleet of ageing taking up dredging work in cargo, including DG, ODC Kolkata Dock 1.12 diesel-mechanical turbines domestic ports, will be valid System propelled war ships. Sie- for five years, according to and reefer; regular weekly mens has set up a medium the new rules framed by sailings on fixed days; direct Haldia Dock 19.63 the government. Earlier the service with the shortest Complex voltage lab at INS Valsura, the Indian Navy's oldest clearance was valid for just transit times; weekly tran- New Mangalore 7.37 training establishment near three years. For port proj- shipment service to Shu- ects, the Shipping Ministry waikh, Shuaiba and Umm JNPT 5.95 Jamnagar, to train navy engineers and technical sea- will share the list of bidders Qasr South; accessible, Cochin (mainly 24.54 men on electric propulsion with the Home, Defence responsive and dedicated due to POL) technology engines. and External Affairs Min- customer service.

MARCH 2018 / MARITIME GATEWAY 17 NEWS

Cruise terminal at an increase of 0.65 per cent SHIPPING over last year. Lease contract Chennai Port soon agreement inked During the current fiscal up to the end of January 2018, for Phase 1 of IWAI inks project DPT has handled 909.89 Chabahar Port agreement with lakh tonnes of cargo, as World Bank against 884.70 lakh tonnes during the corresponding period of the previous year, up 25 lakh tonnes/2.85 per cent. The Port is thus set to To lure tourist opera- cross last year’s throughput tors, the Union Shipping as well as the target given Ministry has offered them by the Ministry of Shipping During the visit of Ira- special rates for a cruise of 106 million tonnes dur- nian President, Dr Has- call. Within a month, ing the current fiscal. san Rouhani, to India, construction of the cruise among many agreements Inland Waterways Author- terminal at Chennai port is signed was the lease ity of India (IWAI) signed set to be complete. A cruise JNPT introduces contract for Shahid a project agreement with liner from the US is set to PAPs policy Beheshti Port- Phase 1 the World Bank. Notably make first use of the ter- of Chabahar during the World bank has even en- minal when it arrives here interim period, between tered into a US$375-million in April. "Cruise operators Port and Maritime Or- loan agreement with the prepare schedules two years ganisation (PMO), Iran Department of Economic ahead of time. The positive and India Ports Global Affairs for the Jal Marg impact of the concessions Ltd (IPGL). Both Prime Vikas Project (JMVP). The offered to the cruise opera- Minister Narendra Modi signing of the agreement tors will be felt in two years and Dr Rouhani wel- follows the approval of the from now," said a Chen- Keeping in line with its fo- comed the lease contract. Union Cabinet Committee nai port official. Chennai cus on supporting the Proj- They further directed on Economic Affairs, Gov- port, on average, receives ect Affected People (PAPs), that the Coordination ernment of India, for the less than 10 cruise vessels JNPT has put in place a Council should meet implementation of the $800 a year. In comparison, transparent system, which within stipulated time. million JMVP for capacity Mumbai receives more than gives a clear roadmap to augmentation of navigation Iran welcomed Indian 50 vessels. concessionaire and PAPs for on National Waterway-1 recruitment. Accordingly, at investment to set up fer- (River Ganga) from Varana- least one member of each tilisers, petrochemicals si in Uttar Pradesh to Hal- Deendayal Port PAP family will get employ- and metallurgy plants in dia in West Bengal. Of the set to cross 106mt ment with JNPT and other Chabahar FTZ on terms remaining amount, US$380 this fiscal terminals. A well thought mutually beneficial. To million is to be sourced out employment policy has fully utilise the potential through the government The Deendayal Port Trust been framed: of Chabahar Port and its of India counterpart funds has handled 101.78 lakh Category A: Priority given connectivity to Afghani- from budgetary allocation tonnes of cargo (at Kandla to candidate whose fam- stan and Central Asia, and proceeds from the bond and Vadinar combined) ily members have not been India conveyed its readi- issue. Another US$45 mil- during January 2018, as given employment in JNPT, ness to support develop- lion of fund will come from against the previous best of NSICT, GTI ment of Chabahar-Za- private sector participation 98.20 lakh tonnes in July hedan rail line. IRCON, Category B: Valid multi under the public-private 2016. The traffic handled India and CDTIC, Iran PAP certificates issued to partnership mode. during the period was made were tasked to finalise one family. Once Category up of dry cargo at 30.988 technical parameters The JMVP, which is ex- lakh tonnes (30.438 lakh A is exhausted, candidate pected to be completed by who hold PAP certificates and financing for the tonnes last year), an in- project in time-bound March 2023, is being imple- crease of 2 per cent; liquid may be considered under mented with the financial this category. manner. Both leaders cargo – Kandla at 12.144 called greater efforts for and technical support of the lakh tonnes (10.584 lakh Category C: One valid PAP cooperation in railways, World Bank. The project tonnes), an increase of 15 certificate and one job has including supply of steel will enable commercial per cent; and liquid cargo been provided. They would rails, turnouts and loco- navigation of vessels with – Vadinar at 47.385 lakh be considered after Category motives. capacity of 1,500-2,000 tonnes (47.079 lakh tonnes), A and B are exhausted. tonnes on NW-I.

18 MARITIME GATEWAY / MARCH 2018 The Port of Antwerp conducts steel session

he Port of Antwerp organised a session for TIndian steel companies at the Taj Palace hotel in New Delhi on 16th February, in partnership with the Indian Steel Association. The objective was to show- case Antwerp as the gateway port for steel exports and imports between the India-Europe corridor. Antwerp logistics companies offering terminal han- dling, value added logistics and steel service centers discussed their offerings with leading steel players in the Indian industry. Luc Arnouts, Director International Relations, DeSmet, Commercial Manager, Antwerp Port Author- Antwerp Port Authority highlighted Antwerp as ity presented the positive outlook for Europe in 2018 Europe's leading steel port backed by some very im- at 1.9 per cent driven by the automotive, construction pressive figures for steel. In 2017, the Port handled and mechanical engineering sectors, thereby presenting 223.6 million tonnes of freight volumes of which Indian steel exporters with a strong market opportunity. conventional break bulk rose by 6.6 per cent to 15.3 She also highlighted Antwerp's offer for steel supply million tonnes of which steel was 8.2 million tonnes. chains by pinpointing the port's accessibility by the A significant portion of this was contributed by largest record breaking container vessels, ample choice Indian steel thereby demonstrating the confidence of multipurpose terminals handling conventional and of Indian steel traders in the Port. He outlined that containerized steel, state of the art handling and storage the port's focus is to be a reliable partner to shippers through the presence of all-weather terminal for weather offered through its regular break-bulk sailings to sensitive steel, steel service centres and multiple logistics global markets and excellent quadrimodal options service providers offering one stop shop for forwarding, available in rail, road, barge and pipeline opera- transport, logistics and warehousing, customs formali- tions connecting to the European hinterland. Ann ties and fiscal representation.

Mahindra ft. to 2lakh sq. ft. in size. Ambassador of the Russian investment of `20,000 crore Embassy Industrial Parks Federation to India, had in the state, covering parts Logistics opens plans to invest $250 million discussions on this with of the industrially backward largest multi-user to build seven industrial Devendra Fadnavis, Chief Bundelkhand region, and parks in major cities and Minister of Maharashtra, Chief Minister, Yogi Aditya- facility in Chakan has already invested in seeking the state govern- nath announcing the signing Pune, Haryana, Delhi, West ment’s support to work out of 1,045 MoUs worth Bengal & Chennai further the special facility for Rus- `4.28 lakh crore. Modi also to MOUs signed with the sian companies to set up in- launched Nivesh Mitra, an governments of Haryana & dustries in earmarked zones. entrepreneur friendly ap- West Bengal. Vijay Kalantri, President plication to enhance ease of of AIAI, stressed that trade doing business in UP. The between India and Russia, digital portal has features Russian industries which currently stands at $6 such as one payment gate- Embassy Industrial Parks billion, needs to be doubled way that will quicken digital has signed Mahindra Lo- seek special in the next three years. clearances. On the first day gistics as its client in their industrial zone in of the Summit, as many as project based in Chakan, UP Investors 25 Memorandums of Un- Pune. Mahindra Logistics Maharashtra derstanding (MoUs) worth has signed one of the largest Summit attracts `55,000 crores were signed spaces, which is now ready The Russian Federation is keen to establish a special huge response with various companies. to lease for warehousing Renewable energy sector industrial park/earmarked The Uttar Pradesh Investors purpose. Embassy Industrial has attracted the highest industrial zone for Russian Summit 2018 began with Parks invested `350 crore amount of potential invest- companies in Maharashtra Prime Minister Narendra to build a 1.1-million sq. ft. ment during the investors’ to take advantage of the Modi announcing the industrial park at Chakan. summit with entrepreneurs "Make in India" and "Ease country’s second defence The project mainly com- evincing interest in this of Doing Business" initia- equipment manufacturing prises built-to-suit facilities relatively new field. ranging from 50,000 sq. tives. Nikolay R. Kudashev, corridor with an expected

MARCH 2018 / MARITIME GATEWAY 19 NEWS

most advanced solution for Indonesian palm MOL and NCC HMM and AAL the transportation of liquids oil imports rising form alliance upgrade Asia- by controlled temperature: REEFLEX. REEFLEX is Palm oil exports from Indo- Middle East MPV developed in partnership nesia to India, the world’s service with Teconja, a German biggest buyer, will probably HMM is beginning its expert in juices, and Liqua, climb to the highest ever cooperation with Singapore- an expert in packaging this year as strong demand based carrier, Austral Asia solutions for transporting counters higher import du- Line (AAL), for a Multi- ties. Shipments of palm and liquids. REEFLEX allows Purpose Vessel (MPV) for transporting liquids in kernel oils to India climbed service. HMM and AAL 32 per cent to record 7.6 a single bag with a capac- will start joint service for 4 ity ranging from 12,000 to million metric tonnes in MPVs in HMM’s operation 2017 from a year earlier. 24,000 litres. Available on as well as newly added 2 Reefer containers of 40 feet, India, which relies on Mitsui O.S.K. Lines (MOL) AAL A-class vessels. HMM REEFLEX is installed in imports to meet about 70 and Nippon Concept will be deploying six vessels just 3 minutes. Thanks to its percent of its total vegetable Corporation (NCC) have in the Asia-Middle East external pumping system, oil requirements, doubled formed a capital and region, instead of four that the bag is filled and emptied the levy on crude palm oil business alliance agree- is deployed at the moment. in 35 minutes thanks to its to 30 percent in November ment with the objective One of AAL’s vessels will adapted design. REEFLEX and increased the duty on of developing a compre- be deployed in March, and represents an ideal alterna- refined palm oil to 40 per hensive two-way strategic the other in the second half tive to break bulk and it will cent from 25 per cent. The partnership, including both of the year. allow exporters and import- move, coupled with high partners’ group companies, ers to carry their goods by inventories in top producers With HMM & AAL’s and steadily enhancing their respective liner expertise containers, thus improving Indonesia and Malaysia, businesses. For example, the conditions of transporta- resulted in palm oil prices and industry knowledge, the agreement gives Nippon together with the increased tion and delivery. dropping 19 per cent last Concept Corporation the year. number of deployed vessels, opportunity to globally in- the service shall develop fur- Steel exports crease its name recognition ther to encompass a wider Soymeal exports and enhance its competitive- pool of cargo (including on the rise decline in 2018 ness by integrating MOL project, bulk and break- A mix of policy inputs Group companies’ overseas bulk), providing service to for promoting domestic A sudden spurt in soybean networks with its existing a wider range of customers, steel usage, rise in global prices has made Indian meal networks. For MOL, it will and for engineering, pro- steel prices and a slew of exports uncompetitive over be an opportunity to expand curement and construction efforts by Indian gov- the past one month, prompt- business in liquid chemical project cargoes. ernment to protect the ing exporters to forecast a product transport business, domestic steel market 50 per cent decline in ship- which requires considerable CMA CGM from cheap imports ments this oil year (Novem- expertise and has the poten- had helped steel export ber 2017–October 2018). tial to generate stable profits introduces growth from India to 53 for the company in the near per cent during April- According to Soybean Pro- REEFLEX future. December 2017, dur- cessors Association (SOPA), ing which period steel India’s total soymeal exports The business alliance output rose to 7.6 mt. skyrocketed to 2 million between MOL and Nip- Domestic consumption tonnes for oil year 2016-17 pon Concept Corporation from a mere 320,000 tonnes covers the following areas: has increased 5.2 per during the previous year, share overseas networks cent during the period to when its shipment was hit and business networks, 64.9 MT. Sale of finished due to crushing dispar- joint business and service steel rose 5.6 per cent ity. Soymeal has become operations, joint technology to 79.3 MT during the expensive because of rising research and development, period. India’s crude steel production grew by 6.2 soybean prices. India’s cost joint purchasing, proactive Reeflex is an ideal alterna- per cent to 101.4 MT in of soymeal production use of both companies’ tive to break bulk for the 2017 compared to 95.5 works out to $500 a tonne as services, personnel exchange transportation of liquids MT in the previous year, against exports from Argen- and other beneficial matters which optimally preserves marking a dramatic rise tina and the United States at to enhance the businesses of the product’s properties. in output. $400 a tonne. both companies. CMA CGM launched the

20 MARITIME GATEWAY / MARCH 2018 andhra pradesh india’s window to the east 2 Industrial corridors | 1 Coastal Economic Zone | 50 new industrial clusters in 9 thrust sectors 300 industrial parks spread over 121,655 acres | 300,000 acre GIS-enabled land bank

Textiles, electronics, metallurgy, Agro & food engineering & life sciences processing, chemicals SRIKAKULAM & petrochemicals, Textiles, ceramics, agro VIZIANAGARAM mineral based & food processing aquaculture industries, life sciences VISAKHAPATNAM Agro & food processing, EAST Cement, textiles, GODAVARI metallurgy, aquaculture agro & food processing WEST

GODAVARI Chemicals & petrochemicals, Mineral based industries, KRISHNA agro & food processing food processing GUNTUR Petrochemical, agro & food processing, automobiles & auto components, KURNOOL PRAKASAM life sciences, textiles & metallurgy

Textiles, granite ANANTAPUR Electronics, NELLORE textiles KADAPA Leather, agro & food processing, textiles, electronics, automobiles & auto components

Agro & food processing, CHITTOOR mineral based industries Agro & food processing, electronics, textiles, automobiles & auto components, heavy engineering

FOCUS SECTORS

Aerospace & Agro & Food Automobile & Auto Electronics Energy Life Sciences Micro Small & Mineral based Defence Processing Components & IT Medium Enterprises Industries

Petroleum, Retail Textiles & Tourism Chemicals & Apparels Petrochemicals

ANDHRA PRADESH ECONOMIC DEVELOPMENT BOARD AP CM’s Camp Office, Vijayawada, Andhra Pradesh - 520 002, India. M: +919986512321 | +919948099840 | E: [email protected] | E: [email protected] | www.apedb.gov.in INTERNATIONAL NEWS

NEPAL MYANMAR to impose trade tariff. Over SRI LANKA $5 billion worth of Afghan Rasuwagadhi dry Thilawa edges trade will be conducted Transshipment at through the Chabahar Port port construction ahead as logistics once the International Colombo Port up North-South Transport Cor- by 20.4 per cent to begin after 4 hub ridor becomes operational. Thilawa SEZ positions Trade between Pakistan and Cargo handling capacity of months the Port of Colombo has itself as the manufacturing Afghanistan has dropped Construction work for Rasu- increased significantly show- and logistics hub of Myan- by $2 billion in the current wagadhi dry port at Timure, fiscal. Bilateral trade cur- ing continuous growth in the Rasuwa, is set to kick off mar, as Daizen Myanmar, container handling opera- a SEZ-based company rently stands at around $500 within the next four months. million. tions since the fourth quarter The port will be located starts providing bonded of 2017. Against 362,451 teu warehouse services to both transshipment operations about two kilometers south BANGLADESH of the Rasuwagadhi border domestic and international in January 2017, together with the JCT, SAGT and between Nepal and China. companies. Such logistics CICT, the Colombo Port After an inspection visit of liberalisation will boost Thai-Myanmar cross-border has recorded 436,303teu the project site, Minister for transshipment operations for Commerce Bishwakarma trade and hence acceler- ate Myanmar's integration the month of January this said that the construction year marking a competitive with the regional economy. work would be carried out increase of 20.4 per cent. based on previous agree- Thilawa SEZ in southern Sri Lanka Ports Authority ments with the Chinese side. Yangon is currently the only SEZ operating in Myanmar. controlled Jaya Container After construction the Chi- Terminal (JCT) which nese government will rent The other two - Kyaukphyu UK lifts air SEZ in Rakhine and Dawei recorded 114,282 teu trans- out the port to the Govern- shipment operations in SEZ in Tanintharyi - are still cargo ban on ment of Nepal. January 2017, has recorded at the planning stage. Dai- Bangladesh 164,252 teu transshipment zen's SEZ warehouse license operations in January this INDONESIA is a combination of bonded The UK has lifted a ban on year marking an increase of warehouse and general airfreight being transported 43.7 per cent. Coal buyers warehouse. directly from Bangladesh, but there is still work to be spooked by new done before exports can MALAYSIA resume. The ban had been shipping rules AFGHANISTAN Buyers of Indonesian coal in place since March 2016 Alibaba’s digital because of concerns that are holding back orders af- Afghan cargo cargo was not properly trade zone in ter the government issued shifts from being screened. The ban new shipping rules for coal has been lifted following Malaysia and crude palm oil that Karachi to significant progress made An Alibaba-led digital trade would restrict exports to Chabahar in meeting a number of zone in Malaysia is expected Indonesian vessels. Jakarta important security condi- to boost trade between issued rules in October tions. The UK government Southeast Asia and China. 2017, requiring coal and will continue to work with The "Digital Free Trade the government of Bangla- palm oil exporters to use Zone," is designed to make Indonesian-flagged vessels desh to support ongoing improvement in standards cross-region shipments more and Indonesian insurance for all aspects of aviation affordable for Malaysian companies, to boost the security. small and medium-sized role of the archipelago’s companies. A core element Biman Bangladesh Airlines, shipping industry. Traders of the scheme is an electron- which is the main airline described the new rules as ic world trade platform de- dangerous as they could Afghanistan has shifted offering direct UK-Ban- 80 per cent its cargo traffic gladesh services, and the signed to ease trade between affect export volumes and from Karachi Port to Iran’s export cargo warehouse still Malaysian and Chinese state revenues if shipping Bandar Abbas and Cha- need to gain the Euro- firms. The platform, due contracts had to be renego- bahar Ports. Afghanistan’s pean Union's third-country to take effect in 2019, will tiated to shift to insurance decision to shift traffic to regulated agent certification connect businesses, manage and freight (CIF) contracts Iranian ports was triggered before it could offer cargo cargo authorizations and from free-on-board (FOB). in part by Pakistan’s move services to the UK. assist on customs.

22 MARITIME GATEWAY / MARCH 2018 MALDIVES THAILAND dirabad Coal Power Plant SOUTH KOREA at Sahiwal. The proposed New cargo Thailand and improvement on anvil is HMM to launch procurement of 820 high terminal at Velana Belgian Airport capacity/high speed wag- Asia-North ons to replace old and over- Europe loop airport to exchange age fleet of cargo wagons at Maldives is planning con- expertise a cost of `9516 million in HMM is set to launch a new struction of a bigger cargo next 1-2 years. During 2016- Asia-North Europe loop in April, independent of its slot terminal at the Velana In- Liege Airport in Belgium 17, the freight trains from charter and slot and swap ternational Airport. It is ex- signed a sistership agree- Karachi Port were increased from 182 trains per year to agreement with the 2M pected to open up the gate- ment with Bangkok-Suvarn- abhumi airport for exchange 3318 trains per year. Long alliance, despite the coopera- way for a re-export market tion deal having over two of expertise and knowhow, haul long term agreements in the Maldives. At a time years still to run. According with focus on cargo devel- have been signed with ma- when Maldives is fast enter- jor companies with advance to an industry source the opment. Both the airports ing into free trade agreement payment in freight deposit first sailing of HMM’s new with various countries, the are major cargo players in accounts. Asia-Europe Express (AEX) new cargo terminal will fur- their respective regions. The will be on 9 April with the ther add fillip to the growth Sistership Agreement is a VIETNAM service deploying panamax of air cargo. After addition first step towards a close containerships of around of the cargo terminal, about cooperation between all the 5,000 teu capacity. HMM First container aims to fill its standalone 120,000 tonnes of air cargo airports to develop cargo flows. A special focus is train linking vessels with higher paying is expected to be processed time-sensitive cargo and is every year at the Velana given to the development of Russia and perishable facilities and pro- believed to have tapped into International Airport. With South Korea’s giant electri- cesses, to seamlessly connect Vietnam a FTA signed with China, cal manufacturers for their Maldives can now export the Asean and the European The train carrying cosmetic support. seafood produces with zero market in both directions. products departed from percent duty, which would For the development of Vosrino station on the out- CHINA directly benefit the Maldives an e-commerce gateway, skirts of Moscow, passing economy. Bangkok-Suvarnabhumi through Zabailkalsk-Man- Airport and Liege Airport zhouli border gate of the OKH Global aim to create an internation- Russia-China border and Pi- develops IRAN al network of gateways. angxiang-Dong Dang border gate of the China-Vietnam warehousing in Border crossing border. Travel time was 23 China days, including time for cus- PAKISTAN Property developer OKH activated with toms procedures at border Global is tying up with gates. The time is only equal Turkey Rail infrastructure Ping An Industrial and to half of that by sea, while Logistics to develop Turkey is trying to activate upgrade the cost is much cheaper three of its border crossings logistics and warehous- than by air. Viacheslav with Iran and the move ing facilities in China. An Kharinov, Chief Representa- is done with the aim of MoU has been inked and a tive of the Russian Trade facilitating border transit joint venture company will Office in Vietnam, termed activities and promoting be set up. "Ping An has this an important milestone trade exchanges between the asset base. They have in the two countries’ trading the two countries. Presently, lots of warehouses and Gorbolag Border Crossing as container transportation land across the whole of is offering round-the-clock services by train will help China that we can leverage services while Kapikio facilitate the travel of goods, Pakistan Railways has add- on," OKH Global CEO Border Crossing is witness- thus contributing to increas- ed 118 locomotives in its Lock Wai Han said. OKH ing transit of passengers ing import-export turnover. and transport of cargo current fleet to replace old Global and its associated similarly. Turkish Minister and obsolete engines, aimed The train route is part of an company, Pan Asia Logis- of Customs and Trade at enhancing cargo reve- agreement between the Rus- tics Investments Holdings Bülent Tüfenkci said that nues. Around 1,405 modern sian Railways and Vietnam will provide design, devel- wagons for coal loading and Iranian side is constructing Railways. The two sides are opment, leasing and asset unloading (hopper wagons) new roads for these border working to cut travel time to management expertise. crossings. have been procured for Qa- 18 days.

MARCH 2018 / MARITIME GATEWAY 23 COVER STORY

24 MARITIME GATEWAY / MARCH 2018 t wouldn’t be despicable to agree upon the fact that development and prosperity of a region de- pends on its connectivity to the outer world and within its own Iterritory. One such region which was badly in need of an infrastructure makeover was the north eastern states of India often referred as seven sister states which pose herculean logistics challenges to move cargo even from the rest of India. But at the same time these states (Assam, Manipur, Megha- laya, Nagaland, Mizoram, Tripura and Arunachal Pradesh) also hold the key to open up greater trade opportunities with neighboring countries and with ASEAN. New Kid Topography of the North East: The only connecting point for north eastern states to the rest of the country is a narrow strip of circuitous landmass called as the Siliguri Cor- ridor or the Chicken’s Neck through which the surface transport takes place. Through this route of about on the 200-odd kms cargo movement takes place from the north eastern states to major trade hubs like Darjeeling and Jalpaiguri districts in West Bengal and to rest of India. It is the reason why Siliguri apart from Guwahati, is a hub for truckers, and plays an Hinterland important role in surface transporta- tion in the hinterland. No other region of India shares their borders with the number of countries as the seven states do, for example Meghalaya has 443 km stretch of border with Bangla- desh, Assam has 263 km border with Bangladesh, and 267 km with Bhu- Block tan, Arunachal Pradesh has 217 km border along Bhutan, 1080 km with With a distinct advantage of being China, and 520 km with Myanmar. Similarly Nagaland has 215 km border strategically located with access to the along Myanmar, Manipur has 398 km traditional domestic market, adjacent border along Myanmar, Mizoram has 318 km border along Bangladesh and countries and also being a vantage 510 km along Myanmar, and Tripura entry point for the South-East Asian has 856 km international border along Bangladesh. Hence, these states with markets, this region is now the hot zone improved connectivity hold the key to for infrastructure, connectivity and greater market access to the neighbor- hood and far east. cargo movement Transit mode, cargo mapping and future growth: by Sisir Pradhan While the hilly terrain poses a challenge to the land movement of goods, at the same time abundant river resources, particularly the mighty Brahmaputra offer alternate modes of cargo movement through river. National Waterway No. 2 (NW2) is

MARCH 2018 / MARITIME GATEWAY 25 COVER STORY

MEGHALAYA MANIPUR

Exports from the state stands roughly at $87 million. Major exports from The state shares border with the state are coal, limestone, boulder stone, agricultural produce and raw Myanmar. Major sectors are hides, among others. The state is connected through five national highways. handloom & handicraft, food The state has an Export Promotion Industrial Park at Byrnihat in Ri-Bhoi processing, minerals, bamboo district, however it caters mainly to domestic market due to demand from processing, among others. local market. Meanwhile, out of 10 LCSes in the state only 8 are functional. At present, nearest ICD is An Integrated Check Post is planned at Dawki. One of the major hurdles for Amingaon, and it may be export growth is lack of port and the nearest port is Kolkata. Border Haats extended at Moreh-Imphal and have been developed based on MoU between India and Bangladesh, and Imphal-Guwahati to ease EXIM currently the state has a border haat at Kalaichar in West Garo Hills district goods movement. Restoration and the other one is at Balat in East Khasi Hills district. Four new border of Indo-Myanmar Border haats have been approved at Bholaganj, Ryngku, Sibari and Nolikata. IWAI Trade via Moreh and the in March 2018 had commissioned a RO-RO terminal in Assam’s Dhubri Ganga Treaty with Bangladesh district and 250 DWT Ro-Ro vessel MV Gopinath Bordoloi was pressed into herald a new chapter for service to sail between Dhubri river port and Hatsingimari, a river terminal international trade through along the Assam-Meghalaya border having a total waterway length of 29km. Manipur. Moreh, a border town The new service aides to steer clear of the circuitous route of 220km to in Manipur is the official export reach Meghalaya on the opposite side. Dhubri is one of the business hubs point and a Land Custom of Assam which is connected to Meghalaya through a road bridge over Station facilitates export Brahmaputra river at Jogighopa. In December 2017, the Prime Minister had documents. Exchange of inaugurated 271-km two-lane NH connecting Tura in western Meghalaya to about 40 tradable items under Shillong, and announced `90,000 cr for improving roads and highways. Barter Trade mechanism takes place through Moreh. Major exportable items include cement, engineering goods, transport equipment, motor ASSAM cycles, iron & steels, medicine, chemicals and allied products, cotton yarn, etc. Import goods Assam is the major trade transit point to the north east and also largest from Myanmar through barter economy in the region. Assam is third-largest producer of POL and natural are betel nuts, turmeric, red gas in India. It is also a major exporter of tea. Other major industries are kidney beans, kuth roots, coal, cement, limestone, and food processing. The state has approved 5 gram, resin, dry ginger, etc. Border Trade Centers at Sutarkandi, Mankachar and Golokganj in Dhubri The volume of trade at district, Darranga in Baksa district and Jagun in Tinsukia district to facilitate Moreh-Tamu Border Point border trade. CONCOR ICD Amingaon is the only ICDs in the region. There is growing at double digit. are about 47 industrial units in Amingaon Export Promotion Industrial Park. Union finance ministry has Assam has active riverways with navigation in Brahmaputra and Barak cleared operation of normal rivers. ICD Amingaon has 2 bonded warehouses of CONCOR and a private trade through Moreh. There one. The state government has earmarked $6.64 million to develop a logistic is a Land Custom Station at hub. The World Bank is assisting Assam to modernize water transport, ferry New Checkon in Imphal East Infra, last mile connectivity, fleet modernization, and institutional capacity district which acts as the development. The state offers investment scope in development of river central processing office for port/terminals, port townships, operation of river taxis, etc. The state has export clearance. Moreh has most developed road and rail network in the region. In the recently organized a 400mt warehouse for EXIM investors summit at Guwahati, Kenichi Yokoyama, Country Director, India goods. An export oriented Resident Mission, ADB had stressed that Assam could be a potential hub for SEZ is under development trade with ASEAN due to its strategic location with multi-modal transport, in Thoubal. A cold storage and if it could develop infrastructure like Chinese trade hubs Yunnan and the chain is being developed at Greater Mekong sub-region. The state has some ambitious plans to develop Nilakuthi Food Park. A major state capital region along with development of logistics infrastructure, river initiative to promote exports transport and port township. The existing river terminal at Jogighopa is going is development of Integrated to be upgraded to a bulk cargo handling facility, and will also have MMLP. It Check Post at Moreh where all will increase container movement. The MMLP looks to tap a potential cargo necessary EXIM infrastructure to the tune of about 12mmt and currently it is growing at CAGR of 6 per cent, is planned to be installed. which is expected to touch 34mmt in the future. The MMLP also aims to tap A cargo terminal is under an estimated container volume of about 5,000 teus in the region. construstion at the Imphal airport.

2634 MARITIME GATEWAY / MARCH 2018 ARUNACHAL NAGALAND TRIPURA PRADESH Arunachal Pradesh is the largest The state is surrounded Tripura's trade with Bangladesh state in the north east. The state’s by Myanmar on the east, is about `230 cr per annum, and international borders are with Arunachal Pradesh on the largely organized trade is through China, Myanmar and Bhutan. north, Assam on the west, Akhaura. Tripura has 6 Land It has 5 river valleys, offering and Manipur on the south. Custom Stations, and Agartala immense hydropower potential Nagaland has rich reserve is major Customs station. ONGC estimated at 60,000mw or roughly of natural resources like Tripura Power and other projects 22 per cent of India’s current minerals and petroleum, in Palatana require movement power generation capacity. and there is considerable of project cargo. Future projects Till 2016, installed hydropower scope for hydropower are Urea fertiliser plant and a capacity in the state was 97.57 industry. The state has petro-chemical hub. As per treaty, mw. With a vision to produce reserve of around 600 mmt Bangladesh allows north eastern 30,000mw, the state is poised to of crude oil, and about 20mt states access to Chittagong port. be one of the largest hydro power of hydrocarbon reserves. Tripura with access to Ashugunj producers in India. There are Additionally, Nagaland also port can connect to Kolkata to about 34 hydropower projects at has more than 1,000mt reduce distance from north east. various stages of implementation, of high chemical grade Some projects underway are four- and the construction work limestone and 315 mt coal lane NH and rail from Agartala to will continue till 2030. There reserve. Nagaland Industrial Sabroom, bordering Bangladesh. are requirement of about 24 Development Corporation Sabroom and Bangladesh is million tons of cement, and 2 promoted Export Promotion separated by Feni river, and India million tons of steel. There is Industrial Park has plans to has approved construction of also need to move ODC cargo to develop SEZ spread across a bridge over the river. It will the region. The state has good 400 hectares in Dimapur. connect the region to Chittagong. production of horticulture crops Key industries in the state But there is a need for Land of about 481.76 thousand mt, with are agriculture and allied Customs Station in Sabroom total production of fruits and industries, horticulture, with facilities like warehouses, vegetables of around 9,964.03 mineral & mining, among container transshipment and thousand mt and 5,124.26 others. other freight forwarding services thousand mt, respectively. to encourage trade.

MIZORAM

Mizoram shares its international border with Bangladesh and Myanmar. Three national highways pass through the state. An Integrated Check Posts (ICPs) at Tlabung-Thekamukh sector has been planned to facilitate trade with Bangladesh. Another ICP is located at Kawrpuichhuah along with a multi-storied Trade Facilitation Centre at Tlabung. The Tlabung--Thekamukh (Bangladesh) route connects southern parts of Mizoram to Chittagong Port. There is a potential for growth of exports from the state in agriculture, horticulture and floriculture products, besides other produce like Bamboo and teak. There is also good demand of quarry stones and stone chips from Mizoram in Bangladesh. Zorinpui is the land custom station along the Myanmar border in Mizoram for the Kaladan multi- modal project, and the nearest port for Zorinpui is 287 km away at Sittwe Port. As part of the East Policy, the Kalädan Multi-Modal Transit Transport Project, Zorinpui will be India’s gateway to South East Asia. A land custom station at Zokhawthar in Mizoram was inaugurated in March 2015 which is expected to boost trade between India and Myanmar. Bairabi railway station in Mizoram, bordering Assam provides goods movement, and construction of 51-km broad- gauge line between Bairabi and Sairang, near the state capital is under construction. A survey on the proposed 272 km railroad from Sairang to Bangladesh border trade centre at Kawrpuichhuah has also been completed. There are plans to connect Kawrpuichhuah to Lawngtlai railroad, which would reach Kaladan, that would contribute in promoting trade in the state. In December, the Prime Minister had inaugurated a 60-MW Tuirial hydropower project in the state and had announced additional `10,000 crore for power sector to set up a state-of-the-art transmission system for the northeast. The development of the Rih-Tiddim road and the establishment of numerous rural ‘haat’ (markets) along the Mizoram-Myanmar border would increase trade volume in the region. The Union government has allocated `180 crore for expansion of Shillong airport to accommodate bigger aircrafts like Boeing 737 and Airbus 320.

MARCH 2018 / MARITIME GATEWAY 27 COVER STORY

located in this region. NW2 navigates SHARE OF LANE-WISE LENGTH OF NATIONAL east to Bangladesh at Dawki on Indian through the Brahmaputra River over a HIGHWAY IN NORTH EAST STATES side and Tamabil on Bangladesh side. river channel length of about 891 km AH2 connects to Bangladesh at Phul- upto the Bangladesh border and it has bari on Indian side and Banglabandha two floating terminals, Dhubri and All India on Bangladesh side. Kaladan Mul- timodal Transport projects connects Sadiya in Assam. This water chan- Tripura nel is an all weather route and acts as Mizoram to Kolkata/Haldia ports an alternate to West Bengal – Sikkim Nagaland through NH54 and Kaladan river in narrow land corridor and shortens dis- Myanmar. Land Ports Authority of tance from Tripura, Mizoram, South Mizoram India (LPAI) was formed in 2012 to Assam to Bangladesh for freight move- facilitate cross border trade. LPAI ment. IWAI maintains navigational Meghalaya develops and manages Integrated channel of about 45 meters minimum Check Posts (ICPs) along the land width, and 2.5 meters draft in NW2 Manipur borders. In the first phase, Agartala between Dhubri and Neamati. The (Tripura), Moreh (Manipur), and Assam existing river terminal at Jogighopa Dawki (Meghalaya) have been identi- is planned to be upgraded to a bulk 0% 20% 40% 60% 80% 100% fied for development of ICPs, and in cargo handling facility, primarily to the second phase Sutarkandi (Assam) handle products like Meghalaya coal Less than Two-Lane Two-Lane Four-Lane & Above and Kawrpuichhuah (Mizoram) have with rail connectivity to the terminal. been identified. Indian Customs offers One of the major trade facilitators for single entry permit system by fol- the north eastern states were the river benefit both the countries. IWAI has lowing standard operating procedure routes which connect the region to started to move 800mt of cement in by which vehicles from neighboring Kolkata. The largest expected cargo January 2018 from Pandu (a river port country can come up to Land Cus- movements in the hinterland will be near Guwahati) to Dhubri a small toms Station (LCS), however, seam- fueled by a number of power projects town-cum-river port and a transit sta- less movement at some LCSes have being implemented by various private tion between India and Bangladesh, not been possible as both countries sector companies along with the Na- and looks to move 1200mt of the com- need to have adequate hard and soft tional HPC, NEEPC, and NTPC on modity per month on a regular basis infrastructure. The Commissionerate various tributaries of the Brahmaputra on the route. Lack of facilities like of Customs (Preventive) Shillong has particularly in Arunachal Pradesh. storage, warehouse, and transporta- jurisdiction over the seven states. After These developments are expected to tion affects movement of goods to the initial hiccups, BBIN motor vehicles generate cargo movements of about outer world. NTPC is another major agreement has finally been put to 2.5 -5.0 million metric tons per year. industry which moves coal for its unit use on the ground allowing seamless Apart from which other identified at Bongaigaon. Similarly, ONGC and cross-border goods movement. In cargo movements include coal from Oil India move pipes and other cargo addition to the treaty, World Customs Meghalaya, fly ash from Farakka to the north east. FCI and department Organization mandated e-sealed to various destinations in the north of food and public distribution have containers need not require to stop or east, limestone for cement plants, requirement of a significant volume change vehicle or Customs inspection petroleum products from Numaligarh of rice and food grains for public while crossing border. Trial runs for refinery, bitumen from Haldia, and distribution in the region. North East cargo vehicles under the BBIN agree- food grains from Kolkata to various is also growing as a major producer of ment have already been conducted depots of the FCI in the region. A organic farm products which requires along the Kolkata-Dhaka-Agartala multi modal transport hub is under streamlining of logistics to reach over- and Delhi-Kolkata-Dhaka routes. development on the outskirts of seas markets. Since north east shares land border Guwahati at a location called Pandu, Surface movement: Extreme with Bangladesh, Bhutan, China, which is a river port with road and rail weather conditions, with extended Myanmar and Nepal, there have been linkage. Dhubri, Jogighopa, Biswan- monsoon of 8-9 months is a challenge agreements of overland trade with thghat and Dibrugarh river terminals for cargo movement in the region. these countries through Land Cus- on NW2 have GPS-aided channel The road condition in the region can tom Stations. India has Free Trade navigation chart, while the waterways be gauzed from the fact that about 30 Agreement (SAFTA) with Bangladesh has 12 other locations with floating per cent of all roads in the region is and Bhutan for border trade through jetties. Hence, this waterways is ready paved road whereas national average LCSes. Though there are Border for commercial cargo movement to a is about 64 per cent. Though the seven Trade Agreements with China and great extension. states have good number of national Myanmar, however, it is limited to Currently, major cargo moved highways passing through the region exchange of commodities from a between the seven states and rest of but majority are poorly maintained bi-laterally agreed list by people living India are tea, oil, cement and coal and narrow. Meanwhile, many parts along both sides of the international (on the export side), and food grains, of NH in the region is under upgrada- border. The major commodities traded fertilizers, and petroleum products tion. Another thrust area is the Asian between the north east, Myanmar and (on the import side). Since India has Highway (AH) network that will im- Bangladesh are electricity, consumer a cordial relation with Bangladesh, prove connectivity with the neighbor- goods, construction material including a multi-modal cargo transport can ing countries. The AH1 connects north steel and cement, construction equip-

28 MARITIME GATEWAY / MARCH 2018 ment, fertilizer, agricultural commodi- SEAMLESS CONNECTIVITY WITH NEIGHBORING COUNTRIES ties, spices, fruits, medicine, bamboo & bamboo products, wooden logs, oil & gas, mineral, grain, medicinal plants, textiles & garment, electronic goods, handicraft, among others. However, due to lack of infrastructure and streamlined trade facilities, a lot of trade between the north eastern states and neighboring countries takes place through informal and unofficial modes. Speaking about cargo trend in the region, Atul Kulkarni, Advisor In- ternational Projects, Indian Ports As- sociation (IPA) said, “Inbound volumes in the north east are of fertilizers, rice and other food grains, FMCG, white goods, etc. Trade is growing consistently over last few years due to increased consumption. Online shopping and E- commerce activity is also on the rise. The retail business is also booming. With the focus on converting Assam into manufacturing hub for more than 50mn population of the region, there and start looking at the region not as also a fact that currently due to various will be increased logistics activity.” a consumer market but as a gateway reasons, including lack of cargo vol- Rail: A major rail project for to the neighboring countries. With ume surety, policy obstacles and issues the region is connecting Sittwe Port existence of rivers in abundance, the with coast shipping, logistics service in Myanmar to Tirap in Arunachal region offers perfect opportunity to im- providers have not effectively explored Pradesh while passing through plement a multi-modal mode of trans- the opportunity of cargo movement Mizoram, Manipur and Nagaland, port with the mix of road, rail and from the east coast ports to the north and another will connect Dhubri to river based cargo movement. So far east, however, this obstacle to some Silchar through Meghalaya. inland waterways have not achieved extent could be addressed by the Air: Guwahati is the busiest and the desired success largely because government in terms of encouraging the only airport in the north east the rivers in the plains are fast drying multi-country coastal and land based region with international air connec- up and it requires lot of investment to cargo movement by providing policy tivity, and annually handles about 11 dredge the bed to make them viable support. Furthermore, the government million tonnes of cargo of which ma- for even barge movement. Whereas should also consider the option of vi- jority comes from Delhi and Mumbai with an extended monsoon which is ability funding for a limited period of airports. Ministry of Civil Aviation is a challenge for road construction and time to give initial thrust and incentive developing Guwahati as the regional cargo movement by road turns out to to logistics service provider. Lack of air cargo hub. The hub and spoke be a boon for river based cargo move- cargo mapping in the north eastern model with air cargo hubs in Guwa- ment. Road construction projects in states is another reason for which hati, Imphal and Agartala will be key the region are catching up pace, but logistics services providers have not to the region. it is also a fact that road projects are shown much interest for investment Outlook time consuming and in the meantime in the region. Additionally, freight The Indian government’s move to policy makers, logistics service provid- forwarders have to strategize to make ‘connect’ the region to the mainland is ers and port operators should give inroads into this market, for example to some extent driven by its ‘Act East’ a serious thought at putting coastal the trucks that move in the plains policy, but to some extent the ur- shipping to full use for cargo move- might not be suitable for the narrow gency is also driven by the underlined ment to the north east. It is high time hilly terrain of north east. With right current of political motivation and the government should look at using kind of infrastructure and policy in China’s steadily increasing activity in ports, especially on the east coast of place, the north eastern states have the region. Whatever the reason may India which are geographically closer the potential to be developed inline be but the north east is fasting catching to the region, effectively to move cargo with Duisburg Inland Container Port, up the fancy of policy makers as well through ports in Bangladesh and and can facilitate trade and commerce as investors. It is time for the logistics Myanmar to reach out for the ease of between India and its neighboring companies to cease the opportunity cargo movement in the north east. It is countries and the ASEAN.

MARCH 2018 / MARITIME GATEWAY 29 COVER STORY

Need for better border infrastructure Mahbubul Anam, MD, Expo Group and President, Bangladesh Freight Forwarders Association speaks about the infrastructure and trade facilitation measures that can help EXIM growth between north eastern India Mahbubul Anam, MD, Expo Group and President, and Bangladesh Bangladesh Freight Forwarders Association

Q What is the annual volume of Q What are the major commod- with modern warehouse facilities, EXIM cargo movement that takes ities that move between the north development of the connecting road place from the seven north eastern eastern states and Bangladesh? and bridges with India. Coordination states? Major import commodities among partner countries in terms of Inward and outward movement of from the north eastern states to development of the infrastructure merchandise in north eastern states Bangladesh are rice, coal, agarbati, facilities is also critical to addressing and rest of the states in India through bamboo, natural rubber, limestone, these issues. Trade facilitation is not rail and river for 12 months (in among others. Major exports from only important from the perspective ‘000MT) is shown in the table Bangladesh to the north east are of Bangladesh's export; but it is also below: RMG, cement, pharmaceuticals, important in reducing the costs of im- ceramic tiles, hosiery, among others. port from India which has to be borne Commodity by Bangladesh's importers. Even if North Eastern States Group import cost could be reduced by 10 per BANGLADESH’S TRADE WITH THE NORTH cent, importers will be able to make Inward Outward EAST IN MILLION USD significant savings which will benefit Rice 2,914.25 156.47 YEAR EXPORT IMPORT the country's producers, exporters and FY2012‐13 97.22 145.02 consumers, and enhance Bangladesh's Wheat 746.59 29.97 competitive strength. FY2013‐14 104.96 152.86 Oil seeds 0.83 0.00 Q What is the potential of trade FY2014‐15 112.7 160.7 growth between north eastern states Raw cotton 0.12 0.12 FY2015‐16 120.44 168.54 and Bangladesh? Fruits and veg- 526.87 0.00 A number of initiatives could be FY2016‐17 128.18 176.38 etables taken to stimulate bilateral trade be- tween the two countries. India should Oil cakes 14.16 147.38 Q What are the major challenges for be persuaded to provide duty-free Sugar 434.24 13.22 EXIM trade in the region in gen- market access for all exports originat- eral and related to infrastructure in ing from Bangladesh and Bangladesh Coal and coke 32.45 6,717.15 particular? should put renewed emphasis on Lime and lime- 175.82 141.84 Ensuring seamless movement diversification of its export basket in stone through regional connectivity and the Indian market. Attracting invest- multimodal transport facility is key ment from India that target the Indian Mineral oils (ex- 281.67 3,176.44 to resolving many of the NTB-related market will be critical to realizing cluding kerosene) disputes. There is an urgent need Bangladesh's export opportunities in Cement 1,438.77 129.80 to build the necessary border infra- India. North Eastern region of India structure to facilitate cross-border presents a unique opportunity for Fertiliser and 310.69 210.63 movement of goods between the two enhancing Bangladesh's exports. organic manure countries. Major infrastructure facili- * Mentioned statistics are based on Total 6,876.33 10,723.01 ties include development of land port trend and estimation from various sources

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SUNRISE STATE READY TO SHINE Having notched the third position in the national logistics index within just four years of formation, the sunrise state is now chasing a larger vision to be among the top 15 states in the Global Competitiveness Index by Omer Ahmed Siddiqui

an anyone expect a newly formed state in a country to post a Nara Chandrababu Naidu Cgrowth rate which is much higher Chief Minister of Andhra Pradesh than the country itself? Well, the sunrise state of Andhra Pradesh has Andhra Pradesh is growing at a sustained achieved this remarkable feat under double digit rate and has the required the visionary leadership of Chief Min- infrastructure of ports and airports to ister Chandrababu Naidu. The govern- facilitate investments. AP is among ment has set a target of achieving 15 the top three states in India to per cent CAGR in the years to come. attract most FDIs in 2016. Andhra Pradesh succeeded in achiev- ing the double-digit growth rate from 8.51 per cent in 2014-15 to 11.37 per cent during the first half of the current fiscal, 2017-18. “Compared with the ing situation with revenue and power first state to introduce single window national growth rate of 5.8 per cent, deficit. But within three to four years clearance. The government depart- A.P.’s growth rate is very impressive. of formation the state has catapult to ments ensure to award all clearances But a lot has to be done, as the CAGR number one position on various fronts within 21 days for any investment is still hovering over 12 per cent. We – ease of doing business, attracting pri- proposal through a single window. need to improve it and a lot needs to vate sector investments, infrastructure The state government has a vision be done in the industry and services reforms and e-governance and tech- to grow at 10-15 per cent every year sectors,” says N Chandrababu Naidu, nology initiatives. Andhra Pradesh is till 2029, in terms of GDP and the Chief Minister of the state. today the fastest growing state in India per capita GDP has to reach $12,000- Following the bifurcation in 2014 with 10.99 per cent GSDP growth rate 15,000 in this time frame. Since 2014 the state was left in a very challeng- in FY2015-16. Andhra Pradesh is the the state has already clocked double

32 MARITIME GATEWAY / MARCH 2018 digit growth twice and is well on track to achieve this GDP growth. The government has framed a vi- sion that aims at: • Positioning AP among the top three developed states by 2022 • Raise the GSDP to $946 billion by 2029 • Accelerate economic growth rate to 12 per cent by 2029 • To become a leading global invest- ment destination by 2050 Industrial development Out of the five industrial corridors proposed by the Indian government, two corridors pass through the state. The phase I of east coast corridor will be from Vizag to Chennai. The second corridor is from Chennai to Bengalu- ru. Development along these corridors is going to happen in a cluster based approach. The Vizag-Chennai Industrial Corridor (VCIC) is 800-km long dedi- Amaravati. Three major Indian mobile cated fright corridor passing along the KEY PROJECTS manufacturers - Celkon, Karbonn and NH-16 and along the Bay of Bengal Lava will establish units in the EMC. in Tamil Nadu and AP. VCIC is one • CEZ in Krishnapatnam with Chief Minister N Chandrababu Naidu of the key components of the East focus on electronics has allotted 113.27 acres of land for Coast Economic Corridor (ECIC) • CEZ in Vizag, Kakinada with the new cluster. A MSME cluster is being developed between Kolkata and focus on petrochemicals, food coming up near Amaravati that will Tuticorin. The 800 km long project processing, cement, apparel specialise in aerospace components, is divided into nine nodes including machine spares and home appliances. two at Nakkapalli and Atchutapuram • New pharma city in The Chennai Bengaluru Industrial in Visakhapatnam district, Kakinada Achutapuram Corridor passes through Krishnapat- in East Godavari district, Machilipat- • Exclusive cluster for veterinary nam where a full-fledged industrial nam in Krishna district and Prakasam and biopharma at Pulivendala township spread over 50 sq. kms will along the east coast. The government be established. This is the first coastal ensures that proper ecosystem is • Integrated biocity in Japanese industrial township in India. provided for these industrial clusters to Ananthapur The Kurnool Bengaluru indus- prosper, also offering immense oppor- trial corridor will see development at • Mega food park at Agiripalli tunity for logistics players to provide the Orvakal node. In addition, eight end-to-end solution. • Spices park at Guntur mega food processing parks will come The Naidupeta cluster in Nellore up in Srikakulam, Vizianagaram, district is the first major component Visakhapatnam and East Godavari of VCIC. Having close proximity to and Chittoor, Kurnool and Ananta- Krishnapatnam Port the cluster will Ibrahimpatnam in Krishna district, pur districts. Further a CEZ is being have good rail connectivity. Spread on education institutions and realty, developed in Krishnapatnam with nearly 4,200 acres the cluster will see infrastructure projects are coming up focus on electronics, while the CEZ in sizeable investment from power, auto- in east direction at Kankipadu-Machil- Vizag and Kakinada will have petro- mobile and bulk drugs sectors. ipatnam stretch and automobile chemical, food processing, cement and Automobiles, electronic manu- companies are growing in Hanuman apparel based industries. facturing, plastics, food processing, Junction - Gannavaram stretch. Man- Visakhapatnam, Kakinada, Krish- textiles and apparels, chemicals, phar- galagiri town is being developed as an napatnam, Hindupur, Srikalahasti- macy and pharmaceuticals are some IT hub in Amaravati. Yerpedu, and Gannavaram-Kanki- of the key sectors to be given priority A Korean industrial hub is coming padu are the nodes in the industrial for development along VCIC with the up near Krishnapatnam Port, wherein corridors where major industrial hubs objective of attracting minimum `1 KIA Motors will be the anchor will come up. As a result, the GDP lakh crore investment in a year. industry along with other automotive in corridor districts will increase by In addition, Vijayawada is growing ancillary industries. APEDB has inked 6 times upto $161.5 billion by 2035. in all directions with software compa- MoU with Tier-2 and Tier-3 ancillar- Manufacturing output will expand by nies setting up in the south at Man- ies of KIA Motors. The first exclusive seven times to $115 billion and an in- galagiri in Guntur district, tourism mobile and electronic manufacturing cremental employment for 14 million industry is being developed in west at cluster in India will be coming up in people will be created by 2035.

MARCH 2018 / MARITIME GATEWAY 33 STATE FOCUS

logistics infrastructure. The state has a well-established transport infrastruc- ture with a million plus acres of land bank, enabling a conducive ecosystem for industrial growth. Blessed with the second largest coastline in the country, the state has six operational seaports Cumulative investment with an existing capacity of 180 mmt in range of $145 billion and about 120 mmt of traffic handled. The state has proposed to set up eight Employment for 14.4 more seaports. Direct shipping calls Economic growth from South East Asian economies to CAGR@12% million citizens AP ports vis-à-vis ports on west coast will save transit time of around 2-3 days KEY The state has 6 airports and further six airports are proposed to be devel- PERFORMANCE HDI oped, which include the mega aer- INDICATORS otropolis coming up in Bhogapuram on 2,200 hectares of land that will Global competitiveness act as India’s gateway to Asia Pacific index to be among HDI region. To ensure seamless movement top 15 index of 9 of cargo to industrial hubs a road network of 1,23,334 km (4,302 km - NHs), 2,660 km of rail network and Pharma clusters food park. Spice processing and export 888 km of National Waterways have A new pharma city is being units will be at spice park in Guntur. been developed. To promote tourism developed at Achutapuram in Vi- Godavari Aqua Mega Food Park will industry a beach road from Ichcha- sakhapatnam. An exclusive cluster be located at Bhimavaram and will un- puram to Tada is being developed. for veterinary and biopharma will dertake aqua produce processing. Srini Beach corridors are being developed come up at Pulivendala in Kadapa. A food park in Chittoor is another multi from Bhogapuram to Bheemli and biopharma fermentation cluster will be product food park. An ultra mega food from Vizag to Addaripeta. developed at Nellore and an integrated park will come in Kurnool. Inland waterways biocity will be established in Anantha- Ease of doing business A huge potential for Inland Water pur. These locations offer the perfect To ensure industrial development Transport exists with National Wa- opportunity for setting of temperature is fast tracked, the government has terway 4 passing through the state. controlled warehouses. initiated several measures to ensure Of the 1,095 km of the waterway that Textile zones ease of doing business: stretches from Kakinada to Puduch- Having a legacy of handlooms • A single desk policy is being erry, 888 kms lie in Andhra Pradesh. and handicrafts production, it is no implemented wherein all clearances 27 locations have been identified surprise that Andhra Pradesh is the required for setting up an industry by RITES as prioritized terminals second largest producer of cotton and will be issued within 21 days under water transportation grid. The raw silk. A unique integrated apparel • Deemed approval will be issued estimated cargo traffic moving through city ‘Brandix’ is being developed in based on self-certification the waterways is projected to be about Visakhapatnam, with an innovative • Inspections are assigned to private 5 MT by 2019, 10 MT by 2029, and 20 ‘Fibre to Store’ concept. Further the technical experts MT by 2059. state has a strong presence of textile- • Processing for multiple clearances Truck terminals based industries in Guntur, Chittoor, will be done simultaneously Considering the fact that road still Kadapa, and Kurnool. Other potential • All the applicable acts, rules and remains the preferred mode of moving textile production zones in the state policies of respective competent au- cargo, Guntur, Tada, Ichchapuram include Donnagondam in Guntur, CS thorities will be reviewed for speedy and Jagayyapet have been identified Puram and Pedaganjam in Prakasam clearance as potential locations for developing and Anantapur. As the textile industry • Strengthening capacity of respec- truck terminals. Each terminal will be expands there will be huge demand tive competent authorities and spread on about 50-100 acres. for warehousing and logistics service district industry centres Having occupied the third notch providers as well. • Operations of competent au- behind Gujarat and Punjab in the Mega food parks thorities and nodal agencies will be recently released logistics performance Each district in the state will have streamlined and tracked index by the Ministry of Commerce one food processing park. There are Logistics infrastructure and Industry, the state’s leadership is four food parks already existing and With industrial clusters cropping now chasing a much larger vision to nine more will be established. Krishna across the length and breadth of the number among the top 15 states in mega food park is coming up at Agi- state, swift cargo movement will be the Global Competitiveness Index by ripalli and this will be a multi-product order of the day and requires massive 2050.

34 MARITIME GATEWAY / MARCH 2018 JET CITY

ost-bifurcation, Andhra Pradesh government has initiated numer- Pous projects to attract investment in the newly formed state, and one of its ambitious projects is Jakkampudi Economic Township. The project also known as JET City is based on the concept of ‘Walk to Work’. The township has been designed in a way to provide housing, education, employ- ment and other social amenities at one place. And one of the thrust areas in the project is to change the conven- tional way of manufacturing, storage and distribution. Project Background The state government in January 2017 issued an order for the formation of a special purpose vehicle for devel- opment of JET City projects. There are plans to develop 100 Economic Cities and 265 acres of land has been Changing logistics identified in the first phase Jakkampudi for development of the first Economic City. The project location is near Vi- landscape jayawada and close to Amravathi with rail, road and air connectivity. Some Based on the concept of inclusive lifestyle of the existing major industries in the and industrial solution, Jakkampudi Economic vicinity are Lanco Power at Kondapalli and NTPS at Ibrahimpatnam. Apart Township, one of the 100 Economic Cities proposed from 20,000 units of living space, JET for Andhra Pradesh aims to bring together housing, City has two story retail and com- munity centre in three levels, and six employment, social amenities, manufacturing and story industrial workspace. The city integrated logistics into one space will provide integrated lifestyle solu- tions such as healthcare, education and by Sisir Pradhan also opportunity for asset and identity creation opening avenues in segments has requested the state government to like education, hospital, hotel retail, revisit the plan and increase the size of recreation, and entertainment among land parcel to meet the requirement. others. JET City avails ready built In a bid to increase the land parcel, the space for MSME, service industry, V Ramnath project implementing authority is look- Executive Vice Chairman electronic industry, logistics compa- Andhra Pradesh Township & ing to add another 200-250 acres of nies, and warehouses. Infrastructure Development land that will be available for logistics Future outlook Corporation Ltd sector in Amaravati. The project has V. Ramnath, Executive Vice also generated lot of interest for invest- Chairman, Andhra Pradesh Town- The government has called ment in warehousing space, and one of ship & Infrastructure Development for expression of interest the major investors is Dubai headquar- Corporation Ltd said, “The govern- for investment from various tered Sharaf DG which has applied for ment has called for expression of sectors including logistics. The 200 acres of space to develop its ware- interest for investment from various project has received about housing facility. JET City will have sectors including logistics. The project 265 applications from various product specific clusters and in the first has received about 265 applications companies, and so far about 19 phase about 12 key categories have from various companies, and so far lakh sqft of land has been sold to been included such as printing and about 19 lakh sqft of land has been various parties. packaging. About 5 lakh sqft of land sold to various parties. The project has will be allocated to industries run by generated lot of interest among inves- women entrepreneurs. The vision for tors and the government has received the project is to leverage from econo- demand for about 400 acres of land to major company has asked for 200 mies of scale. Gradually, the focus is to set up units.” acres of land to set up operation in attract other industries like plastic, IT, Without divulging the names of the JET City. In view of the demand, engineering, electrical fan, and stain- interested parties, Ramnath said a the project implementing authority less steel-based ancillary industries.

MARCH 2018 / MARITIME GATEWAY 35 JNPT

PSA expands capacity on the west coast PSA is expanding capacity to be future ready and provide world class logistics infrastructure on the west coast

Prime Minister Narendra Modi inaugurating JNPT's 4th Terminal via video link

evelopment of world class infra- will add capacity of 24 lakh containers second weekly service call and its first structure to boost international per year in Phase-I and after comple- direct Europe service. Express Rome Dtrade and give impetus to ‘Make tion of Phase-II in 2022 the capacity operates Indian Ocean Service linking in India’ programme has been among of JNPT will be 100 lakh containers India and the Middle East directly the key focus areas of the government. per year. with the North European ports of An- On this ambitious journey, JNPT is The Fourth Container Terminal has twerp, Hamburg and London. Its in- taking every step to be future ready been developed on Design, Built, Fund, augural call at BMCT will be followed and contribute to Government of Operate and Transfer (DBFOT) basis by three sister ships from Hapag Lloyd India’s vision of Port led development for concession period of 30 years with plus three and one vessels respectively under Sagarmala Programme. Keep- an estimated cost of `7,915 crore. The from service partners Hamburg-Sud ing in line with this, JNPT is all set to project is being implemented in two and CMA-CGM. Approximately double its container handling capacity Phases. i.e. Phase –I and Phase –II. The 3,700 teus were handled during the with addition of its New 4th terminal indicative cost of the project for Phase call at BMCT. which has been completed in a record – I is `4,719 crore. The PSA terminal Earlier CMA-CGM’s “Centaurus,” time. The foundation stone for the will be able to dock mother vessels, was the first container vessel to berth same was laid by Hon’ble Prime Min- handle the biggest container ships from at BMCT. The vessel operates on the ister in Oct 2015. a quay length of 1 km, and cranes that Swahili Express Service (“SWAX”) “We deliver as we promise! As can reach 22 rows wide or greater. linking India and East Africa on a committed by Hon’ble Prime Minis- This Terminal will be linked to the fixed day weekly schedule, together ter, Narendra Modi, the first Phase dedicated rail freight corridor and will with three sister vessels from CMA- of the terminal is ready in a record be able to receive about 350 contain- CGM and one from service partner time. Logistics plays a key role in the ers per rake. The facility will also Emirates Shipping Line. development of the economy and the have provision for storing 1,600 reefer To meet the demands of expanding government is committed to provide (refrigerated) containers to handle operations three more quay cranes will world class logistics and infrastructure agricultural and horticulture produce. arrive at the terminal during first half facilities so that trade flourishes, says, On a separate note, PSA’s Bharat of 2018, followed by three more in Nitin Gadkari, Minister of Shipping, Mumbai Container Terminals 2019. The completion of Phase 2 con- Road Transport & Highways. ("BMCT") welcomed Hapag-Lloyd’s struction will bring the terminal to an The new 4th Container Terminal “Express Rome,” marking BMCT’s ultimate capacity of 4.8 million teus.

36 MARITIME GATEWAY / MARCH 2018 Q & A

Reliability is what customers look for Having the lion’s share in moving cargo on the landside, Maersk is now focusing more on digitalisation and providing end-to-end solutions that are more reliable and transparent, reveals Bhavik Mota, Head, Trade and Marketing, Maersk Line India Bhavik Mota, Head, Trade and Marketing, Maersk Line India by Omer Ahmed Siddiqui

Q How was the business in for differentiation which is already reused. Definitely there is some cost Southeast Asia last year? very commoditised, so our focus is involved but that is the cost of doing Last year we have grown 7 per now on developing and differentiating business. We are planning out how we cent in our volumes and growth has on the inland side. We have plans to can help the country balance the trade. come from all the countries in the take our inland business to the next Q Tell us in detail about your end- cluster, particularly India, Bangladesh level, wherein customers will have to-end solutions? and Sri Lanka. On the inland side, if to deal with very few actors across Currently we have the biggest you look at the CONCOR Annual the supply chain. Consolidation has inland network. We have 59 inland Report, the container volumes moved already happened on the ocean side, acceptance points and we are by rail is around 19 per cent of the now customers want us to handle their connecting to 17 ports. We have overall volumes handled. There is still shipments completely end-to-end. seen tremendous opportunity on the significant volume of cargo moving Q What is the significance of inland side given the containerisation by road between the hinterland and South Asian market for Maersk? happening in our part of geography. getting containerised at the ports. If Some markets offer you growth We are like 56 per cent in you look at our market share from the but no scale, while others give you containerisation whereas most of the hinterland it is around 20 per cent on scale but not growth. South Asia is a developed countries around the world an aggregate, making us the largest region where we are seeing both scale are 75-77 per cent. Today one of the player. Also if you look at the first and growth. If you look at the market major pain points of the customer in three quarters of the financial year, we size of 6.5 million FFEs in the global the hinterland is lack of reliability and have seen strong growth of 8-10 per scenario, India will be among top five visibility in inland cargo movement. cent on the inland rail transport and growing economies. We already have dedicated rails we expect this trend to continue. Q In Nepal traders face high running between Vizag and Birgunj, The inland markets are growing logistics cost. How is Maersk another dedicated rail connects much faster than the coastal markets. addressing this issue? Pipavav and Dadri. We also need to We operate container terminals in We are the pioneers in addressing expend these dedicated routes across Pipavav and Nhava Sheva and our this issue, because the whole the country. ICDs are in Jaipur, Dadri and Tuda. cargo movement for Nepal is very Q What are your services to We have CFS in Nhava Sheva, cumbersome and most of the Bangladesh? Chennai, Tuticorin and Mundra. customers wanted an alternative. Bangladesh is right now served Q In the south Asian market, Recently we have started a service by feeder ports from Colombo and which of the trade lanes do you see from Vizag into Nepal, it is called Tanjung Pelepas. We are evaluating cargo movement growing rapidly? Kathmandu Express. It reduces the options to see if we can route cargo via I think it is across all the trades. dwell time for customers and their one of the ports in India. If you look at consumption and cost has also come down by 10 per Q What can we expect on infrastructure development along cent. digitalisation front from Maersk? with investment, you will notice Q Nepal has a trade imbalance We are currently investing in a more growth happening towards the with lots of imports and very few state-of-art software system which can hinterland. The growth rate on GDP is exports. Does this cause any problem offer real-time visibility and tracking 7 per cent, 800 million people residing to you? to customer. To scale up our inland in the hinterland will see more growth We basically triangulate and move business we need to dispatch our first fuelled by government initiatives. the empty boxes to east India which is mile and last mile very effectively. A lot of vessel sharing is happening a very big market from where exports These aspects will be the main focus of on the ocean side leaving no room are moving out and the empties are the software.

MARCH 2018 / MARITIME GATEWAY 37 INFRASTRUCTURE

DTDC in the driver's seat DTDC is getting agile as it grows. The new transshipment hub in Samalkha is equipped with state-of-the-art equipment to boost throughput efficiency, as the volume of cargo grows by Vijay Kurup trucks would be reduced from two and a half hours to less than 45 minutes. The entire design was based on the data analytics done on previous operations statistics. Considerable investments were done on data analytics which laid the groundwork for the design of the warehouse. “We looked at all our volumes and predicted future trends and basis that we made the entire design. This gave more predictability,’ he said. More than 80 per cent of the parcels would go into the sorter obviating the need for human intervention. The sorter would not only scan the parcel but also capture the dimensions, weight and volumes of the boxes. The TDC inaugurated its largest sorter can also capture the images of each box. All this information can be integrated hub in Delhi’s DTDC WAS EXPECTING Samalkha region. In an industry conveyed to the customer. DTDC aims D AN ANNUAL GROWTH OF to offer same-day deliveries in future. where speed is an indispensable 15-20% FOR THE NEXT Its machines are E Way Bill condition for success, the inauguration 3-5 YEARS. THE DELHI of the sprawling hub that would compliant and are designed to capture AND NCR (NATIONAL any goods worth over `50,000 and then house the operation for four verticals CAPITAL REGION) IS of express delivery business i.e. air automatically generate these bills. THE BIGGEST DRIVER Carbon footprints would be reduced services, ground services, international OF GROWTH. MORE THAN 30-35 PER CENT business and B2C, pushes DTDC into by tapping solar energy. Chakraborty OF THE COUNTRY’S VOLUME CAN EITHER said that 80 per cent of all the energy a different league. ENTER OR EXIT FROM DELHI. The 100,000 sq ft transhipment used in this hub would be coming from hub is equipped with the state-of-the- renewable sources. The entire roof was covered with solar panels. Its fleet of art equipment such as automated Abhishek Chakraborty sorter, x-ray machines, hydraulic Executive Director small sized trucks runs on CNG. trolleys etc. The new hub has been DTDC Chakraborty believes that the the amalgamation of its multiple SME group in India is a thriving hubs in and around Delhi, to enhance per cent from Delhi. With all this market. DTDC is one of thee very few throughput, efficiency and meet the in mind DTDC embarked on this players that has the bandwidth and surge in volumes post GST. investment. It now has the ability reach to serve the micro, small and Abhishek Chakraborty, Executive to handle 100,000 parcels from this medium enterprises. With the Indian Director, DTDC said, the company facility on a daily basis. Government pushing for various was expecting an annual growth of 15- This facility has 20 per cent less initiatives, he saw SMEs becoming very 20 per cent for the next 3-5 years. The manpower than the combined number strong in future. With DTDC having a Delhi and NCR is the biggest driver of that DTDC had in all its facilities put network of more than 10,700 franchises growth. More than 30-35 per cent of together. Abhishek was confident that across the country, it could afford to the country’s volume can either enter or the quality would go up the costs would dream of ensuring that no SME would exit from Delhi. mark a downward trend. To expedite be more than a kilometer away from More than 35 per cent of its the flow of information, workers use its nearest franchise. Looking into total parcel volume either originated hand-held devices to transfer data the future, for the next 2 to 3 years, here or passed through this hub to directly into the system. This reduces DTDC plans similar upgrades in reach different parts of the country. manual intervention and manpower by other locations in Chennai, Mumbai. International volumes amount to 50 5-10 per cent. The turn around time of Hyderabad and Bengaluru.

38 MARITIME GATEWAY / MARCH 2018

Q & A

Q What is unique about Wilhelmshaven Port? The port of Wilhelmshaven is THE GERMAN designed for ultra large container vessels that are longer than 360 meters with a draft of 16.5 meters. We are the only port in Germany able to handle these vessels. This is no competition CONNECTION for Hamburg or Bremerhaven, because we have geographical advantage that Having the best hinterland connectivity and these big vessels can enter our port infrastructure in Germany, Wilhelmshaven without any problems. This is one of our USPs. OOCL is calling to our port Port is now looking forward to increase since mid-last year regularly so far with mainline calls and connect to more one service and the biggest container ships of the world – “OOCL Hong destinations across the globe Kong.” We are a Greenfield port directly connecting to a 160 hectares of freight village which is also very close to the terminal and this is very different compared to our competition ports in Antwerp and Rotterdam, where cargo has to move quite a long way to reach the terminal area. The fairway is 800 meters wide, it’s just 23 nautical miles - the approach from open sea to the berth is one and half hour sailing time only and this is also one of our USPs. We are extremely well connected to the hinterland, we have marshalling yards that can accommodate 6 full length cargo trains at any given time. These trains can simultaneously connect to the terminal, which means there is no stopping or waiting time for trains. We have superb road connectivity with the highway ending 900 meters in front of the port. These features make us the best connected port to the hinterland in Germany. Q Tell us about the terminal infrastructure? We have 30 hectares of terminal area, 1,725 meters pier length, currently operating eight gantry cranes. We are of the opinion that the terminal operator Eurogate has to increase the number of gantry cranes as more shipping lines are asking for it. Eurogate has a very fast operational system for swift handling of containers. They operate five lanes in the backyard and five lanes directly under the gantry crane. So our move counts are very high compared to other ports. Andreas Bullwinkel Q What is the current draft at the MD, Container Terminal terminals? Wilhelmshaven JadeWeserPort We have minimum 18 meters draft Marketing GmbH & Co. KG which is unique at the German coast

40 MARITIME GATEWAY / MARCH 2018 at low tide and at high tide we have 21 meters. Wilhelmshaven has been handling dry bulk, liquid bulk, coal, oil and chemicals. Container business is relatively new. Excluding the container business Wilhelmshaven is the third biggest port in Germany. The port has posted 12 per cent Y-O-Y growth. Q What is driving this growth and what is the container cargo handled at the port? The total capacity of this port is 2.7- 3 million teus and last year we made about 550,000 teus. Last year the number of rail connections has dramatically increased and we gained 25 new regular rail connections into the German, Australian and Switzerland hinterland. Our main planned a container repair service. from Antwerp and Rotterdam. Both customers come from agriculture, A train connection between these ports have excellent hinterland chemicals and automotive industry. Western Germany and Wilhelmshaven connections and when it comes to At Rotterdam they have some is planned to move chemicals. An barge transport via river Rhine, we advantages like the connection to River investor will develop warehouse that are lost. You cannot compete against Rhine into the hinterland, which is will be used by small companies. Small them. What we are lacking is more difficult for the German ports in total. slots of 500 sq. mts will be available shipping lines calling our port and Q Tell us about your India for them. A parking area for more than we need a much wider offer on the connection? 300 trucks is developed. We are about destinations. Then we could easily Maersk visits our port regularly and to double the area for handling reefer attract a second Indian service and we are trying to increase the number cargo. About 30 per cent of the space another service to and from the of bookings. The ME1 service of available at the port has already been western hemisphere. Our connectivity Safmarine calls on weekly basis to our booked, another 30 per cent is under to China is really good, but to India port. Effective January 2018, we also negotiation and the rest is on offer. we have one service and we could have our representative in India to Q Since you don’t have much of do another easily. Big shippers like better understand the Indian market, manufacturing hinterland, how do chemical and automotive industry making contacts. you intend to grow? when they build a warehouse, they look for a solution to all their Q What kind of cargo moves We intend to grow by making our destinations. So ports that have between India and Wilhelmshaven? land more attractive for companies multiple connectivity will be in Main exports coming from to settle down in our freight village business and this is the advantage that India are automotives, automobile by setting up production units, ports in Antwerp and Rotterdam have. accessories and imports include warehouses and distribution centres. They have the whole world on offer, chemical products. We are in talks Q Have you been able to divert while we are in the beginning and with Volkswagen to develop a cargo traffic from Hamburg or any mainly have India, China and little warehousing and consolidation centre other German Port? transhipment via Singapore to other in our port and this way they can We are not doing it actively, but Asian destinations. save a lot of money in FOB cost. The it happens because we offer better We are strengthening the existing idea is to have the warehouse close services. Further if the cargo origin or service of Safmarine, trying to attract to the terminal that will save a lot destination is closer to Wilhelmshaven our port to Safmarine. Our advantage of cost for them and the cargo will Port than any other German port, is due to the three slots on the rail move to China, their biggest market. then it’s a natural reflex that customers available so the cargo can move on The second step would be to move change their port of choice. any time requested. This facility is Indian cargo via this warehouse. This Sometimes our fellow ports in sometimes not available in other will improve our volume to India Hamburg or Bremerhaven have ports because they are too crowded. tremendously. The third step will be problems such as congestion or The rakes are heavily booked, so to increase our volumes from Mexico. infrastructure issues. This causes sometimes customers have to wait. Q What are your plans for the open the ships to divert to our port and Moving cargo through River Rhine is space at the port? here they experience their business a good alternative, but when the river A customer is planning a container happening quick and at a cheaper cost. runs shallow or too high, it is difficult storage area as shipping lines have Q Antwerp and Rotterdam to move cargo. In such scenario our been asking for it. We are also boast of excellent connectivity to volumes will increase and this is a planning storage space for chemicals, hinterland in Germany. Are you chance for us to get a grip on these dangerous goods and break bulk for getting any cargo from them? cargoes. packing and trucking. We have also We have solicited some accounts

MARCH 2018 / MARITIME GATEWAY 41 REGIONAL FOCUS

Sri Lanka’s pivotal logistics industry is at loggerheads over the Logistics at Budget 2018 move to liberalise the shipping and freight forwarding loggerheads! industry. Industry groups CASA and SLFFA are opposing the decision for potential harm to local firms, while logistics experts have hailed the move expecting a multitude of benefits

ri Lanka’s pivotal logistics industry is at loggerheads Sover the 2018 Budget move to liberalise the shipping and freight forwarding industry - which contributes around $400 million - enabling foreigners ease of entry. Viewed as one of the most contentious proposals in the Budget 2018 presented by Finance Minister Mangala Samaraweera, the measure has been widely debated previously the Budget move would destroy local at stake, CASA and SLFFA warned, for many years. None of the previous firms. adding that management positions governments, finance or shipping A host of blue chip companies would be filled by expatriate staff, ministers have been bold enough to such as Hayleys, Aitken Spence and depriving Lankan professionals of truly open up the shipping and freight Hemas Holdings have big exposure to opportunities. The move will only forwarding business to foreigners due the shipping and freight forwarding encourage foreign shipping lines to to pressure from local firms. business whilst there are several convert Sri Lanka a cost centre which The 2018 Budget move is also standalone firms of repute. will force the Government to lose tax logical since the restrictions on foreign CASA and SLFFA also met Ports revenue. ownership were implemented via the and Shipping Minister Mahinda It was also claimed that the move Exchange Control Law which is to be Samarasinghe on Saturday to express would not facilitate knowledge or replaced by the new Foreign Exchange their opposition to the move. Meetings technology transfer. Shipping agents Management Act. with President Maithripala Sirisena have also diversified into seafarer Though existing regulations and Finance Minister Samaraweera training and education, and over the (introduced under the previous are being sought to lobby for a years have produced a pool of some regime) do allow foreign firms to reversal. 35,000 employed and employable engage in logistics, the minimum They said the Budget proposal personnel for global carriers and investment of $10 million for only 80 would “not bring any significant contribute in excess of $250 million per cent stake is viewed as a non-tariff benefit to the industries and the per annum. barrier and discouraging for foreign economy and in fact will have an The groups said the restriction firms. adverse impact on the national in foreign ownership of shipping Industry groups the Ceylon interest.” agencies and freight forwarding had Shipping Agents Association and There are currently in excess of not inhibited shipping lines’ interests the Sri Lanka Logistics and Freight 750 local shipping, freight forwarding in investing in port terminal capacity Forwarders Association in a joint and clearing agents employing over in Sri Lanka as displayed in the statement emphatically stated that 12,000 direct staff and their future is expression of interest for Colombo

42 MARITIME GATEWAY / MARCH 2018 managing highly sophisticated and LIBERALISATION TUSSLE complex supply chains for their clients. The 2018 Budget move is part of • Shipping agents and freight the Government’s Vision 2025, which forwarders up in arms over has made a key policy proposal to liberalisation move make Sri Lanka an Indian Ocean hub. At the same time, port capacities • Allowing 100% foreign in Colombo, Hambantota and ownership will make shipping Trincomalee will be expanded to lines to convert SL a cost centre maintain a competitive advantage to increase transshipment activities. • Warn of serious loss of income to state, jobs and foreign “The choice of having an agency exchange or not should be the wish of the owner of the business who brings in vessels to • Concerns raised with the a port of Sri Lanka and regional cargo Shipping Minister; Plans to to Colombo. The Government does meet the President and Finance not want to restrict the global operators Minister to reverse the proposal of ownership as it may deter them • Logistics industry experts from looking at Sri Lanka seriously if say liberalisation key to truly the Government ensures agencies by becoming hub law, which amounts to a protectionist measure,” official sources said. • Choice of having an agency or The Government believes the not should be the wish of the owners and operators have the owner of the business who freedom to decide on what their cost brings in vessels to the ports of and what their operating model would Sri Lanka and regional cargo to be, that freedom will make Sri Lanka Colombo competitive. “Without the owners and operators of the global shipping industry and logistics industry in Sri Lanka, the country will not move on to the next phase of shipping and logistics (as agency business is a third party service provider only),” Government sources Port’s East Container Terminal. its potential, especially in terms of pointed out. Previously, the South Asia Gateway logistics. Therefore, it was important Sri Lanka or other regional Terminals saw investments from major to remove all constraints that are countries are not mega ship owners shipping lines. present, which prevent the country and do not have the global scale or CASA and SLFFA said if the from reaching its potential and that Sri capital to develop shipping activities as intention of this policy change was Lanka would not be able to call itself this industry is very capital intensive. based on the premise of developing a logistics hub, and attract business Therefore, it is essential to create a Colombo to be a logistics hub, the without a significant presence of conducive environment for global industry believed that there were global players in Colombo. operators in shipping and logistics more urgent and important initiatives “It is nearly impossible to think of to be given a choice and a free that should be addressed such as the any major hub which has succeeded hand to provide services to regional development of port infrastructure without substantial investments or countries as well as Sri Lankan and measures to improve ‘ease of the presence of global firms and them exporters and importers, and make Sri doing business’, thus removing being active on ground. These firms Lanka a maritime hub rather than a all bottlenecks and bureaucracy will be reluctant to put money in a transshipment location. throughout the supply chain which destination if they are only minority Officials also said the will reduce unnecessary costs and shareholders,” experts said. Government’s policy was to be the bring significant relief to the consumer According to them one of the key most liberal economy in South Asia. or trade. Other logistics experts and factors which helps attract logistics Already the two major maritime firms welcomed the Budget move, business to locations like Singapore economies of South Asia, namely calling it courageous and saying it is the presence of leading global third India and Pakistan, have fully would put Sri Lanka in the right place party logistics firms. liberalised the shipping sector, just as for maritime and aviation, bringing in “These firms also bring new the hub of Singapore and the other a multitude of benefits. technology, new knowledge regional competitor, has a very liberal They pointed out that at present about logistics and supply chain environment in the Middle East. Sri Lanka was operating far below management and are experienced in Courtesy The Daily FT

MARCH 2018 / MARITIME GATEWAY 43 COLD CHAIN

Members of the panel (left to right): Ryan Viegas, Head of Logistics (Asia Pacific), Teva Pharmaceuticals; Hemanth DP, COO (Aero Commercial, Cargo), GMR Airports; Laurence Jacobi, Cargo Manager (Andhra Pradesh & Telangana), Emirates Airline; Masanari Arai, Founder & CEO, Kii Corporation; Eric ten Kate, Vice President, Global Life Science, Agility; Shanker Iyer, Head of Cargo (Africa, Middle East & India), Swiss World Cargo India; and Dr. Ravi Mathur, Senior Director, SCM -Head of Logistics and Central Planning, Dr. Reddy’s.

IN PURSUIT OF UNBROKEN COLD CHAIN hen it comes to life saving Agility India organized a one of its kind drugs storage, temperature industry summit on Cold Chain dedicated to the Wplays a critical role in preserving the medicines. Keeping this pharmaceutical and life sciences sector, their aspect in mind Agility India conducted challenges and achieving objective solutions ‘The Un-broken Cold Chain event’ on January 31 in Hyderabad to bring through collaboration, awareness, education, and stakeholders under one platform to discuss cold chain related challenges implementation of technology and best practice for the pharmaceutical industry and by Sisir Pradhan the strategy to fix the gaps. A panel discussion was moderated by Satish pharma terminal, and it serves only 1,000 air freighter movements, and Lakkaraju, COO, Agility India. Other pharmaceutical products with facilities it looks to handle 140,000 tonnes of members of the panel were Shanker like humidity control, truck dock, cargo in the current year, and there Iyer, Head of Cargo (Africa, Middle and Customs examination within the is a master plan to increase cargo East & India), Swiss World Cargo temperature controlled area. But many handling capacity to 1 million tonne. India; Hemanth DP, COO (Aero times cargo was moved in open trucks Cargo terminal will have separate Commercial, Cargo), GMR Airports; from production unit to the airport terminals for perishables, express Ryan Viegas, Head of Logistics which doesn’t serve the purpose of cargo, pack house, and a logistics (Asia Pacific), Teva Pharmaceuticals; moving cargo in uniform temperature, park. This is the only airport in India Dr. Ravi Mathur, Senior Director, resulting in rejection of consignment. to have a FTZ. The airport also has SCM -Head of Logistics and Central In a bid to stop cargo movement in an aerospace and multi-product SEZ. Planning, Dr. Reddy’s; Masanari Arai, open truck, temperature controlled A major pharmaceutical company Founder & CEO, Kii Corporation; ULDs are on offer. Other initiatives is constructing a factory to generate Laurence Jacobi, Cargo Manager in unbroken cold chain were securing about 2,50,000 tonne of cargo from (Andhra Pradesh & Telangana), the WHO GSDP Certification for next year, to be exported to the US Emirates Airline; and Eric ten Kate, the Pharma Zone and provision of and Europe. To address large size Vice President, Global Life Science, a large tunnel X-Ray machine to parcels which can’t be fitted into Agility. screen full size ULDs. The airport scanners, shippers need to depute Excerpts from the deliberations: will have cool dollies in the near Regulated Agents at their premises Hemanth DP: The Pharma Zone future to move temperature sensitive who can certify and built large size at Rajiv Gandhi International Airport shipments and the truck dock will be units. (RGIA), Hyderabad is India’s first expanded. The airport now has over Masanari Arai: Kii provides IoT

44 MARITIME GATEWAY / MARCH 2018 platform that helps to find solutions to various problems at a much faster pace and cheaper rate. It helps to improve existing services for a user leading to better revenues. An export consignment passes through various intermediaries and the IoT platform keeps all stakeholders informed via a dashboard about critical information in real time like location of the package and the storage temperature. For example, pharmaceutical exporters face challenge of spike in temperature because many times the importance is not given to address handling staff forget to close the temperature incursion. The unbroken container doors. In such case the IoT cold chain is a myth but damage could platform can raise an alarm whenever be minimized by putting in place a container doors are left open. As a quality system that reacts and raises a result the users can find solutions on red flag when there is an anomaly in their own. It helps to collect data, prescribed temperature, identify the analyze and improve services. root cause and fix it. Agility has started using the Laurence Jacobi: There have Kii IoT platform on trial basis at been rarely any instances where Hyderabad and Mumbai to track Satish Lakkaraju, COO, Agility India, moderating the session all the stakeholders in the supply consignments. Another stake holder chain, including shipper and airport at the event was Algor Supply Chain developer collectively discuss the Solutions, which is the trucking faced by ocean freighters. He said the requirements before construction of a partner for Agility. initiative is more effective to address new infrastructure. A CAPA is much Virendra Chaudhary, Director, the issues faced by the stakeholder as it is an industry initiated event. The more comprehensive than just the Algor: Algor is more focused airline acting on the corrective and into vaccination distribution, objective was to bring together all partners in the cold supply chain to preventive actions. All stakeholder transportation of formulations, need to perk up service quality to intermediates, and APIs. The discuss challenges and ways to resolve them. Among others, Maritime achieve the goal. It should be left to company provides services at most the discretion of shipper to chose of the pharma SEZs and nearby Gateway was one of the media partners which came in support of the passive or active temperature control airports in India. It offers the option unit. to users to keep track of GPS-enabled event. Apart from which ISCM was Shankar Iyer: Typically, cargo is consignment location and temperature the education partner at the event. moved from warehouse to the staging through mobile phone. Ryan Viegas: The focus should be equally on export products and about 120 minutes before being Udit Mangal, Business loaded into the aircraft, and there Manager- Healthcare, Pluss imports. A significant volume of import cargo like active ingredients are speed limit for vehicles moving Advanced Technologies: Despite the cargo inside the airport which the advancement in technology require temperature controlled movement. But many times even result in exposing of cargo to the globally 25 per cent of medicines are outside temperature. Hence, active wasted. The available technologies in case of ingredients inside bottles and plastic packs are mishandled cooling should be preferred in case of in temperature controlled packaging critical products like pharmaceutical. are either complex or ineffective or and opened which needs to stop. It is time to give importance to provide Reduction in cargo handling expensive. The aim of the company procedures and time, and live update was to develop device which are unbroken cold chain to import goods as well. about status can help to bring down effective to attain the goal of unbroken number cargo rejection incidents. cold chain by providing about 120 Dr. Ravi Mathur: A major Pradeep Panicker, Deputy CEO, hrs of temperature controlled storage. concern for pharma exporter or GMR HIAL was the chief guest The company displayed Celsure boxes importer is temperature incursion for the event and Mohammed Esa, which are designed to operate in and excursion for a consignment SVP, Global Business Development, tropical climate condition in India. during transit. The threat of outside Agility, was the guest of honour. After the presentations, Satish temperature variation is higher as pharma products move through Some of the other key takeaways from Lakkaraju moderated a panel the event were: Need for compliances, discussion on ‘The Unbroken Cold geographies with widely varied temperature. While the passive partnership between stakeholders, Chain’. Lakkaraju informed the need for all stake holders to have an gathering that there are future plans temperature control solutions are useful but these products are more understanding of requirements of to start similar industry initiatives quality system. in Mumbai to address challenges focused on temperature excursion but

MARCH 2018 / MARITIME GATEWAY 45 DIGITALISATION

A DIGITAL PLATFORM CONNECTING ALL STAKEHOLDERS ODeX helps the maritime industry swiftly ride the digital wave as it connects stakeholders to manage their workflow and collect payments by Omer Ahmed Siddiqui

aritime industry due to its information. With seamless tracking stakeholders in ocean shipping, below complex nature has been on its portal, stakeholders right from is an account on how each stake- a late entrant to digitalisa- Custom house brokers, to importers, holder in the shipping cycle benefits at tion. The opportunities and everyone else in between can ODeX. Mclearly lie in protecting the budget manage their consignment efficiently. Exporter/Importer while increasing the efficiency, say Transparency is ensured with each Exporters use the integrated VGM industry captains. Digitalization helps consignment, so that everyone is on solution from ODeX. The platform to deliver better business results and to the same page, and everyone is up- is directly integrated with their fac- better control trading and operational dated. This is important as stakehold- tory weighbridges and ERP solutions risks in one place. Timing is, of course, ers need to know if their documents ensuring that there is one single source another opportunity as shipping and have been approved, and if it hasn’t, of electronic data. Since VGM is a trading companies need to be able to they get immediately notified on the global IMO mandated compliance – react much faster today than they did portal automatically. This saves them a the integrated solution from ODeX en- in the past. lot of time. Being a pioneer in helping sures error free submission – and they Helping the industry ride the the shipping industry with digitalisa- can rest easy knowing that compliance digital wave smoothly is ODeX - An tion, ODeX ensures to remove all has been taken care of. This is further Online Document Exchange Platform bottlenecks in the process such that all integrated with the GateIn (Form 13, to connect stakeholders, manage work- stakeholders have a smooth experience Form 6) – ensuring there is no manual flows and collect payments. during the shipping cycle. intervention required. ODeX makes sure that all its stake- Being among the first few plat- Importers use ODeX for managing holders are privy to a single source of forms in India to connect all major the complete import workflow from

46 MARITIME GATEWAY / MARCH 2018 invoice release, payments to deliv- • Email / SMS on registered email ery order release and empty return. ALONG THE WAY ODEX HAS BUILT id for critical transactions like DO Importers can manage their entire MANY FIRSTS Release, Invoice Payment, etc. process online – with transparency, Infrastructure security reduced time in release of cargo and • Real time, maker-checker • ODeX works on HTTPS with 256 completely automated, end-to-end enabled B2B payment solutions bit algorithm - It means all com- reconciliation of their transaction at • Multi-stakeholder workflow & munications between the browser any time. The whole eImports module documentation for imports and the ODeX are encrypted of ODeX reduces cargo clearing costs • Regular VAPT (Vulnerability As- and time by atleast 30 per cent. • Electronic gate-in at port sessment and Penetration Testing) Shipping lines terminals (Form 13) on ODeX server / application to Shipping lines manage their • Electronic invoice release and detect any vulnerability or security complete import workflow from IGM delivery order release for EXIM threat filing to empty return – improving the trade • Clustering / load balancing for turn around time, reducing all email high availability and phone based communication – an • VAN – a unique payment • Disaster recovery setup with rep- improvement in overall efficiencies by solution for corporates lication every 15 mins using dedi- at least 25 per cent. Exports – Ship- • Short term credit solutions for cated links from primary server to ping lines receive electronic VGM and the EXIM trade (with a partner) DR server in another city Form 13 files. They are updated by • Application / Server hosted in Tier 4 data center with eight zone security • Two layer of firewall for the server ODeX MAKES SURE THAT ALL ITS STAKEHOLDERS ARE PRIVY TO with Anti Hacking, DoS defence, A SINGLE SOURCE OF INFORMATION. WITH SEAMLESS TRACKING Malware and intrusion prevention, ON ITS PORTAL, STAKEHOLDERS RIGHT FROM CUSTOM HOUSE Ping of Death defence, etc. BROKERS, TO IMPORTERS, AND EVERYONE ELSE IN BETWEEN Server to Server integration security CAN MANAGE THEIR CONSIGNMENT EFFICIENTLY. • IP address white listing at both the ends shall avoid any unauthorised Liji Nowal access Managing Director, ODeX India Solutions Pvt Ltd. • Only secured transmission like https or SFTP • Support of cross referenced master the parties that are using their ves- online – reducing the queues at their data as applicable counters and also improving TAT for sels for various shipments, and have ISO Certification reduced or even eliminated manual their customers. ODeX has completed following ISO data entries. ODeX is connected with all lead- certifications: No manual data entry – since data ing banks to enable ePayments. This • ISO 9001:2015 Quality Manage- on Form 13 / Gate In, VGM, DO are helps the industry – and also enables ment directly integrated into their systems. banks / NBFC’s to finance the stake- • ISO 27001:2013 Information Secu- CFS is able to track which shipping holders based on accurate transaction rity Management Systems line has released Delivery Order for data. Since a lot of critical and sensi- • ISO 20000-1:2011 Information a particular customer and begin the tive data is uploaded and exchanged Technology Service Management process of CFS gate out based on this on ODeX, data security is bound to be (ITSM) information. A single dashboard saves a priority. Security is a top priority at ODeX. considerable time – since they can • Registration of company (CHAs) It has controlled viewing of various view data for all major shipping lines after KYC documents that are based only on user and customers on a single page. • Access to ODeX is User name and and organization profile. While offer- ODeX helps Customs House password protected access. ing seamless integration with shipping Agents keep their promise of prompt • Data / Documents of one com- lines, regular data sanctity and vulner- and safe delivery of their exporters pany (CHA / Line / CFS / etc.) ability audits are conducted to ensure and importers goods. They will be able cannot be viewed by any other data security. Even when it comes to to upload their documentation easily company. i.e. Invoices / DOs / etc. documentation printing, a controlled for the relevant parties to acknowledge issues to CHA 1 cannot be viewed environment helps avoid duplicity. and allow for the consignment to pass by CHA 2 Today ODeX is an online com- through as quickly and as seamlessly • Critical data are stored in encrypt- munity – where carriers, yards, port as it can. As the freight forwarders ed format in the database terminals, custom brokers, forwarders, take up the consignment on their • Audit history like create user, cre- shippers, consignees and even banks name, they have the responsibility ate time, modify user, and modify come together to get things done. A to update their various consignment time available on all transactions. community of over 15,000 businesses holders with the e-HBLs. ODeX helps Also, auditing of data change on and 22,000 users in India alone and freight forwarders endorse their HBL’s critical fields/transactions. growing fast.

MARCH 2018 / MARITIME GATEWAY 47 WISTA DAY

High Five to WISTA India WISTA members came together to celebrate fifth anniversary of WISTA India. The event also reflected the visibility WISTA has gained in the maritime industry

WISTA members come together to celebrate five years of WISTA India

he shipping and logistics sector is among the few industries where Twomen have broken the glass ceiling and are at the helm, steering the industry towards growth and pros- perity. WISTA India is a confluence of such dynamic leadership support- ing women in the maritime sector. At the 5th anniversary of WISTA India, membership of the organisation came together to celebrate the important role women play in the maritime sec- tor today. Dr Malini Shankar, Director General Shipping along with key dignitaries releasing the booklet on Gender Diversity At the outset Sanjam Sahi Gupta, President, WISTA India, dedicated Gandhi to hold this major post. TA India members for this wonderful the success of the organisation to each Capt. Anoop Sharma, CMD, accomplishment. Maritime industry is and every member. “The success of SCI, Guest of Honour at the event, among the few industries that actively WISTA India is due to the members- congratulated WISTA India members promotes diversity and more women each one of them as it is them who for successful completion of 5 years are breaking the glass ceiling to rise and makes WISTA India,” remarked and its achievements. He pointed out take the lead in this dynamic sector. Sanjam in her welcome address, as she that in Shipping Corporation of India A booklet on building and main- requested the membership to rise amid 20.8 per cent of the staff are women taining gender diversity on board a large round of applause, acknowl- and SCI takes pride in this fact. merchant ships, jointly developed by edging the contribution of women in “We are here today not only to look International Seafarers’ Welfare and the maritime industry. "It has been an back but also to look ahead,” remarked Assistance Network (ISWAN), Anglo- honour to serve as President and now Despina Panayiotou Theodosiou, Eastern Ship Management Limited look forward to having the young lead- President of WISTA International. and WISTA International, was re- ers and members take on the respon- “Our sector is faced with new realities leased by Dr Malini Shankar. sibility." due to the fast-technological develop- A panel discussion on “Digital Anil Singh, Former SVP & MD, ments and WISTA should be a part Disruption in Shipping: What happens DP World Sub Continent, among of the discussion. We are at a point next?” focused on the growing tech the guests of honour, appealed to the where our industry is modernized savy workforce that expects seamless industry to support WISTA and em- and we should encompass this change connectivity onboard. New digital en- powerment of women in the maritime and make it our own. WISTA needs trants are transforming traditional re- industry which was a cause close to to be there as a voice to be listened to. lationships in the freight and logistics his heart. He pointed out that women Change can be good for diversity and business. Their offerings built on cloud have made progress in all fields and the purpose of WISTA must be kept and connected platform technologies gave reference of Nirmala Sitharaman, relevant,” mentioned Despina. give seamless experience to consum- the current Defence Minister of India Dr Malini Shankar, Director ers, resulting in new business models who is the second woman since Indira General Shipping, congratulated WIS- evolving.

48 MARITIME GATEWAY / MARCH 2018 Q & A More and more processes need to go on EDI

latest information technology. They are upgrading their knowledge according to the need. The number of new measures introduced by the Government itself provide opportunities to grow. The CHAS will PS Atree have to be cognisant of the policies President, Delhi Customs Clearing that are being introduced by the Agents Association (DCCAA) various ministries from time to time. Q Do you think that the Ease of Doing business has been enhanced? Yes very much. The Ease of Doing Business has resulted in increase of More Customs operations should be brought on manufacturing activities in India. To be more specific, it has improved EDI and Custom House Agents need to enhance the dwell time in clearance of exim awareness of government rules and regulations goods. It has also substantially reduced transaction cost for the businesses. says Atree, as he points at the need for more Recently on International Customs shipping lines should embrace digitization Day two new technology platforms were introduced, namely ICETRAK by Vijay Kurup and and ICETAB. ICETRAK is a one-stop Portal for effective communication between the trade and the department of Customs. It is Q What are the challenges facing ‘SAKSHAM’ which will definitely an application that facilitates tracking Custom House Agents? improve the working of the system. of export /import documents, duty The most important challenge is Q How do you plan to bring calculator etc. ICETAB is a Tab with to facilitate importers and exporters transparency in Customs clearance? which an Appraiser in the warehouse for quick and timely delivery and Transparency is possible only if is able to upload the report of his export of goods. The CHAs are facing maximum processes are shifted to examination directly into the system. a few acute problems with regard to the EDI. There has to be minimum He can also take the photographs of facilitation to the industry. Firstly, at of direct interaction between the the consignment and upload them times, due to slow or breakdown of Government and the trade. directly into the system. This brings the EDI systems in the Customs, there Q What are the new trends in in certainty and accuracy to the entire is a delay in processing of Bills of Customs clearing business? process of examination. Entry/ Shipping Bills. As a result, in CBEC has recently launched Q What is your requirement from imports for example, the delivery of e-sanchit that enables registered the shipping lines? the cargo is delayed to the consignee. persons to file documents online. Any I require more transparency from Further, this delay causes an automatic document pertaining to export or them. All charges pertaining to a imposition of penalty on us which is import can be uploaded on the website. shipment should be reflected on a BL. `5000 per day. Though the penalty is This process reduces processing time The consignee or the shipper should repealable, the process of waiver is and brings in transparency. not be charged anything more than time consuming. Q Do you feel there is a lack of what is reflected on the document. Secondly the restriction of skill among CHAs, particularly in Further, their working hours should be movement of commercial vehicles, by view of the Government going digital in tandem with the Customs. If need the traffic police, in the NCR region, in a big way? be the shipping lines should work in is further adding to the delay. Vehicles No. Majority of the CHAs have shifts. A few lines have introduced carrying heavy goods can only ply managed to pick up the necessary E Delivery and E BL which I find between 11pm and 7am. However, the skills.To remain competitive it is very convenient. I would expect other department has launched their project necessary to keep abreast with the shipping lines to follow suit.

MARCH 2018 / MARITIME GATEWAY 49 NMIS - 39TH CONVOCATION

“Shipping Padhao – Shipping Badhao” is the goal The 39th convocation of NMIS saw the industry come together in support of the noble cause of the shipping institution in providing quality workforce to the sector

arottam Morarjee Institute of Shipping (NMIS) held its 39th Nconvocation and prize distri- bution ceremony in Mumbai at the Shipping House of The Shipping Cor- poration of India. Pradeep T. Rawat, Chairman, National Shipping Board, was the Chief Guest and Shashi Kiran Shetty, Founder & Chairman of Allcargo Logistics was the Guest of Honour for this auspicious event. Capt. Anoop Sharma, CMD, SCI presided over the function. This year, the institute felicitated Arvind Parikh, Chairman, LEMUIR group and Capt. P S Barve, Ex-Nau- Shashi Kiran Shetty, Chairman, Allcargo Logistics delivering guest of honour address tical Advisor to Govt. of India with the NMIS Life Time Achievement Award. Capt. Vivek Anand, President to new height. He also informed the presented gold medals, awards & MANSA; Suresh Parekh, Director, august gathering that along with Mr certificates to students who excelled in Polestar; and Atul Boda, Chairman, Kher, Ms. Sangeeta Sharma, Direc- the NMIS course. Shashi Kiran Shetty JB Boda Group were felicitated with tor (Liner & Passenger Service) SCI distributed prizes and certificates to NMIS Honorary Fellowship for their has been nominated in the Governing the meritorious students. Capt. Anoop significant contribution to Indian Council of NMIS. Sharma and Mr. Kher distributed con- Maritime industry. The Chief Guest Shashi Kiran Shetty, Founder vocation certificates. and Guest of Honour presented the & Chairman – Allcargo Logistics Pradeep T Rawat, Chairman, Na- mementos to these industry stalwarts and the Guest of Honour, in his ad- tional Shipping Board and the Chief for their special contribution. dress stressed on the need to make Guest of the event lauded NMIS for Shrikant Kher, Chairman, NMIS, institutes like NMIS more and more its educational standards. He also welcomed the industry stalwarts and popular and market it in such a pointed to the august gathering that leaders from the maritime trade in his manner wherein more people across institutes like NMIS set example address and thanked all the benevolent the maritime and logistics industry before other institutes to emulate. He donors for their generous contribu- can take advantage of it. One of the also pointed that it is for the first time tion to the institute. Capt. M M Saggi, key challenges faced by the industry that India is aspiring to focus on its Director of NMIS presented the report today is lack of professional talent. strength of being a maritime nation card of the institute. He informed that Institute like NMIS are contributing due to its vast maritime resources in the academic year 2016-17, NMIS to this cause by imparting professional with focus on port led development. had enrolled 620 students, together in knowledge of commercial shipping In conclusion he said, Sagarmala that the first and second year. Invariably, and logistics. He also requested the aspires to contribute 2 per cent to the NMIS students find good placements industry at large to come forward and overall GDP along with the capabili- during the course itself with ship own- support NMIS which is empowering ties of students of institute like NMIS ing and management companies. students professionally in various verti- can transform the country. Capt. Anoop Sharma, CMD, SCI cals of maritime trade. He also assured S B Sawant, Secretary, NMIS in his address said that he was hon- the management of NMIS, the whole delivered vote of thanks towards all oured to be at the helm of both SCI hearted support from the Allcargo the eminent dignitaries, benevolent and INSA, the founding members of Group in addition to providing faculty donors, governing council and faculty NIMS. He re-assured full support from and scholarships to deserving students. members for their gracious presence SCI and INSA in order to take NMIS Chief Guest Shri Pradeep Rawat on the auspicious occasion.

50 MARITIME GATEWAY / MARCH 2018 MARITIME GATEWAY / MARCH 2018 51