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Nitin Gadkari, Naysayers Awaited the (In) Famous P3 Alliance to Port Automation: Terex Commence Operations India’s premier maritime business magazine `100 JULY 2014 WWW.MARITIMEGATEWAY.COM RNI NO: APENG/2009/30633 POSTAL REGISTRATION NO: LII/RNP/HD/1137/2013-15 'We aim to become a DATE OF PUBLICATION: 26/06/2014 $1 - billion company by 2015' Adarsh Hegde ED, Allcargo Logistics Project cargo movement SMOOTH ROAD AHEAD With a stable government at the Centre and an increased focus on the infrastructure segment, project cargo movement is set to gain momentum. Logistics players are looking at taking advantage of the new opportunities coming up in power and manufacturing segments. 02 maritime gateway / july 2014 OPENING REMARKS Editor-in-Chief and Publisher Ramprasad Scrapping P3, an indication of [email protected] Sr Assistant Editor Sreekala G [email protected] Chinese hegemony in world trade Assistant Editor Deepika Amirapu [email protected] Assistant Editor Itishree Samal The proposed P3 alliance between the world’s three [email protected] largest container carriers will not come into existence Sr Designers Vijay Masa, Lakshmi Dandamudi as initially planned after Chinese regulatory authorities refused to approve it. The P3 was a Designer Nagaraju N S long-term operational sharing agreement that was to Marketing & Sales operate a capacity of 2.6 million containers between National Satish Shetti, Manager – Sales Asia and Europe, across the Pacific Ocean and the [email protected] – 099207 05534 Atlantic Ocean. East Nikhil Doshi, GM – Sales [email protected] – 098369 96293 The Chinese Ministry of Commerce (MOFCOM) decided not to approve the P3 Network as it fears it South & International Vinod G, Sr Manager – MarCom [email protected] – 099498 69349 would hurt other operators. Besides, the applicants Client Relations Ashok T – Marketing Executive had failed to cite any positive aspects of the alliance that can outweigh the adverse [email protected] – 094918 05508 impacts it may have on Chinese trade. The three companies together control a Digital Edition Wesley Rajiv combined 46.7 per cent market share. Originally proposed back in June 2013, P3 has been taking a long time to come to fruition because it has had to gain regulatory approvals from Europe, the US and Subscribe to MG China. What's really surprising here is that China refused to approve the plan despite `1,200 the go-ahead from US and EU regulators, indicating a clear shift in world trade ONE YEAR SUBSCRIPTION 12 ISSUES Phone : +91 (40) 2330 0061 / 2330 0626 balance. Unfortunately, carriers too have decided not to go ahead with the plan as e-mail : [email protected] they surely cannot ignore China's disapproval. write to : Gateway Media Pvt. Ltd., # 407, Fifth Floor, Pavani Plaza, Khairatabad, Hyderabad – 500 004, INDIA. China is the world’s second-largest www.maritimegateway.com economy. According to Chinese Unfortunately, carriers government reports, shipments abroad Maritime Gateway is printed by R Ramprasad published by from China advanced 7 per cent in R Ramprasad on behalf of Gateway Media Pvt. Ltd., #407, 5th Floor, too have decided not to Pavani Plaza, Khairatabad, Hyderabad – 500 004, A.P., India May from a year earlier, with imports and Printed at M/s. Kala Jyothi Process Pvt. Ltd., 1-1-60/5, go ahead with the plan as down 1.6 per cent. China recorded a RTC Cross Roads, Musheerabad, Hyderabad - 500 020. and they surely cannot ignore $35.9 billion surplus for May. In such a Published at Gateway Media Pvt. Ltd. #407, 5th Floor, Pavani Plaza, scenario, it would have been difficult for Khairatabad, Hyderabad – 500 004, A.P., India China's disapproval. carriers to overlook Chinese disapproval. Regd. Office: H.No. 8-2-293/82/A/379 & 379/A, 2nd Floor, Plot No. 379, Road No. 10, Jubilee Hills, Hyderabad-500 033 As major countries in the world and leading carriers are now trying to realign their CIN: U74900AP2007PTC054344 strategies, India is not affected as the country was never part of the alliance. But we Editor: R Ramprasad also need to analyse the repercussions of the scrapping of the alliance as our national Please note economy is not insulated from the vagaries of world trade. Views expressed in the articles are those of the writer(s) and may not be shared by the editor or members of the editorial board. Some analysts feel the decision in some ways won't change anything because Unsolicited material will not be returned. Maersk, CMA CGM and MSC are already market leaders. However, it does raise the Copyright No material published here should be reproduced in any form question of whether each individual line of the three will have enough volume to fill without prior written permission from Gateway Media. the size of ships they have been building and ordering. Feedback Readers are advised to send all feedback and However, there is still plenty of uncertainty surrounding the issue. Analysts comments to [email protected] speculate that there are chances that two of the three lines form a kind of P2 alliance or there could be moves to involve one or both of the big Chinese lines in some EDITORIAL ADVISORY BOARD kind of alliance, in order to establish a better position with the Chinese authorities. Capt Deepak Tewari S S Kulkarni Till we find answers to these probabilities, it remains uncertain how global shipping Chairman, Container Shipping Secretary General, Indian Private Ports & Lines Association (CSLA) Terminals’ Association industry would be in the coming years. B B Pattanaik Capt Ram Ramchandran MD, Central Warehousing Former President, NISAA Corporation CONNECT Capt Sanjeev Rishi Ramprasad Anil Singh Advisor, Worlds Window Infrastructure & WITH MG Sr VP & MD, DP World Logistics Pvt Ltd Editor-in-Chief and Publisher [email protected] Subcontinent Joachim von der Heydt Jasjit Sethi Chairman, Bengal Tiger Line, Singapore Now you can read your favorite CEO, TCI Supply Chain Solution Capt Subhangshu Dutt magazine on the move. A Janardhana Rao Vice President, Institute of Chartered http://www.magzter.com/publishers/ MD, Indian Ports Association Shipbrokers, Singapore follow us on @maritimegateway Gateway-Media-Private-Limited july 2014 / maritime gateway 03 JULY 2014 VOluME 6 ISSUE 10 ANALYSIS Terminal shake-ups triggered ................... 28 As shipping lines are busy cobbling up alliances with their peers on preferred routes of trade, terminals are getting equally busy. EMERGING MARKETS Destination Kalinganagar ............................ 30 EAST COAST Advantage Adani 100m tonne dream on India’s east coast .......................................... 36 The acquisition of Dhamra Port brings many benefits for Adani Ports. PUBLIC PRIVATE PARTNERSHIP Port Railway System: a backbone ............ 38 Krishnapatnam Port was conceptualised with the Port Railway System as its backbone and mainstay. Dhruv Kotak COVER STORY Joint Managing Director, AUTOMOTIVE EXPOrtS p. 22 J M Baxi Group The logistics infrastructure PROJECT CARGO MOVEMENT: conundrum ..................................................... 40 TECHNOLOGY SMOOTH ROAD AHEAD Port Community System: Paperless efficiency .................................. 44 With a stable government at the Centre and an increased focus on infrastructure segment, project cargo movement is set to gain momentum. Logistics players are looking at taking REEFERS advantage of the new opportunities coming up in power and manufacturing segments. Flourishing Business with Perishables ..................................................... 55 KNOW YOUR MINISTER BREAKING NEWS With a booming retail and growth in pharma and Able administrator with Punctured Romance ......................................27 agri products exports, the reefer cargo industry in India is set to grow. a vision for change ........................................ 21 The stage was set and everyone including the Nitin Gadkari, naysayers awaited the (in) famous P3 alliance to POrt AUTOmatION: TEREX commence operations. Union Road Transport, Highways Flagship E-mobility Project BESIC Enters and Shipping Minister Crucial Phase ..................................................57 INTERVIEWS INLAND WATERWAYS No Infrastructure: No Investment ............60 ‘We aim to become a $1- billion Concor Eastern Region draws big plans to expand network ............................................ 52 After much goading from the industry, the company by 2015’ ........................................ 32 Ministry of Shipping inaugurated the first national Adarsh Hegde , Sharad Verma, waterway at the Hoogly River last year to enable movement of coal and other commodities. Executive Director, Chief General Manager, Concor Allcargo Logistics IMPOrtS Fertilizer imports: To decline further ...... 62 YESTERYEARS ‘Project Logistics will be our Menlo Worldwide Logistics: From Auto to Indian Maritime History: major focus area’ .......................................... 42 Food & Beverages ......................................... 58 a lost heritage ............................................... 64 Viren Sinha, Desmond Chan, Chairman & Managing Director, Managing Director, South Asia, Corrigendum Balmer Lawrie & Co. Ltd. Menlo Worldwide Logistics Rajieve Krishnan is the Chief Operating Officer of APM Terminals Mumbai. His designation was incorrectly printed in the May issue. We stand corrected and this error is deeply regretted. OTHERS ‘Mix of organic and inorganic expansion will help us achieve our vision’ .......................... 48 News in Brief ............................................ 06 Diederick de Vroet, Reiner A Allgeier, Numbers
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