Bhandarkar Shipping News 05 July, 2018

FarEye’s Delight FarEye, a leading global digital logistics platform announced the launch of its Delivery Experience Suite – ‘Delight’ that helps businesses increase their Delivery Happiness Score – the ultimate measure of customer success.

5 Vol. XVII-No. 36 n Mumbai, Thursday, 05 July 2018

Seaspan Sails through Stormy Waters in Full Control

n BSN Network / Mumbai Mr. Erik Nielsen, Senior Vice President, Operations / DPA, Seaspan Ship Management spoke to BSN during a company Conference recently held in Mumbai.

See pg. 2

www.bhandarkarpublications.com n Price: Rs. 10/-

Karunakar Shetty Elected President of BCBA

Newly Elected Team of Brihanmumbai Custom Brokers Association See pg. 6

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Mumbai, Thursday, 05 July 2018

BHANDARKAR SHIPPING NEWS

Seaspan Sails through Stormy Waters in Full Control

Mr. Nielsen informed about the market scenario and how Seaspan was faring: he spoke about safety performance; encouraging cross cultural teamwork; managing food choices on board ships for the team of multi-cultural crew in view of its effect on performance of the seafarers; explaining how rising fuel prices have been a blessing in disguise; staying focused on operational excellence; employing ever growing number of women seafarers; working upfront to meet new IMO Rules; covering technology initiatives of Seaspan; and also informing about huge investments being made by Seaspan in training.

Here are some of the excerpts of interview.

Can you tell us about how Seaspan isdoing in the turbulent market scenario?

From our side, the market is improving a lot. We’ve been happy to see that the charter rates are improving, particularly the rates for Panamax ships.Around a year and a half ago it was down at $4000 per day, and today we’re up at $13000 plus.

We’re very happy to see that rates have increased almost four times and demand is still strong. Our customers are approaching us first as their provider of choice. We believe this is because we’re delivering a service that’s more valuable and aligned with our customers’ needs.

The seafarers are also quite happy with our standards for delivery of services. One could say we’re also very fortunate. But, it’s a planned fortune that we’re sitting with Panamax vessels at an opportune time when charterers want them. We can see revenues increasing and we’re transporting more cargo. Last year we transported 9 million TEU, the year before it was 8 million and the year before that 7 million. Every year we have seen an increase of 1 million TEUs carried by the Seaspan fleet.

We’ve transported 158,000 Reefers with only 19 cargo claims. Of course that’s 19 claims too many.(Laughs).

When you look at 9 million TEU and so many Reefers,

that’s quite remarkable. Also we haven’t lost a container overboard in more than 6 years. Transporting this many containers and having such a large operation on a global scale is pretty impressive.

I think the future for us looks very bright. We are implementingmany positive changes. We have made a $1.6 billion deal a few months ago when we bought 18 ships and acquired the remainder of GCI. We also bought 2 other small 2500 TEU ships that we have put on a 4-year long-term charter to Maersk Lines. On the financial side, we have received major long-term investment support from Fairfax Financial Holdings Limited. It’s a privately funded company, headed

by Mr. Prem Watsa, who has dedicated investments totalling $1billion to Seaspan because he can see that the plans we have for the future are very positive, very bright,and he believes in our prosperity. Of course, he also expects a good return on his investment. The plan for Seaspan is to continue to consolidate on the ship-owning side, grow our number of ships, increase our global footprint, and continue to improve on our customer satisfaction.

Is Reefers section growing faster?

The reefers section is growing faster, yes. Our ships are really being utilized with regard to reefers.

Which geography has shown more growth so far as Reefers are concerned?

It’s all over the place.We have some that are trading Oceania to Middle East, and Oceania to the States. They are being filled up quite a bit. We have some in Africa, North and South. And we just got a ship that is trading up and down and into Brazil, actually. So that’s quite interesting. She’s not carrying too many reefers but it’s quite interesting to trade that water channel.

Can you give us an update on your Lost Time Injuries Frequency (LTIF) Status?

We have fewer people getting injured and our LTIF is

improving. We have reduced that by 60% in the last 3 years.

So 60% fewer people are getting injured, which is important. No fatalities last year. Generally a lot of things are working really fine and our crew is working much more safely than in previous years.

So, have all those things that you did in the past years paid off?

We can see the benefit of all the hard work done by the crew and our colleagues in the office. We can see that’s paying off now. Of course there are also clouds on the horizon.

Not everything is going to be easy. We still have work to do in the future. Some of the areas that we want to continue to improve on are our practices on the bridge, our practices in the engine room, and then our vessel condition. We want to make sure that we’re delivering a well-maintained ship because our ships are getting older and older and we need to step up our efforts to keep them in excellent condition. Then the challenge is to take our Captains and the whole bridge team to the next level.We want to make them more professional and develop their skills, experience and confidence to a higher level.

Since, you have a multicultural team working on your bridge, engineering and the entire crew. How do you reconcile different cultures and how do you get all of them to remain on the same page?

That’s a good question.

(Laughs).

It’s always challenging to get different cultures to work together. We’re doing a lot of things, actually. At this Conference we’ve invited maritime safety consultants Green-Jakobsen to explain to our colleagues a little bit about how to work together across different cultures. At other conferences we’ve focussed on situational leadership and, for the first time ever, we held a Leadership Conference at the beginning of this year, where we invited only Captains and Chief Engineers from all regions in which we operate.

We congregated our leaders from various nationalitiesand

met in Abu Dhabi for 2 days, going through all the things that are going well, and of course spending even more time on things that were not working so well. (Laughs).

How was the response of the people?

Yeah, it was fantastic. For the first time we brought our Captains and Chief Engineers from Philippines, Ukraine,India, Sri Lanka, Romania and Bangladesh all under one roof so we could hear their views on how we are performing and generate ideas for how to improve. Great feedback overall!

Any Insights that were thrown up?

One of the main points was that we are all part of one company and so we must work together. When you are Captain or Chief Engineer onboard, it’s your ship and your job as a leader to make that work.

There are always challenges.

But, at the end of the day,the leaders need to take charge and rally the crew to keep the vessel running smoothly. When things get challenging for the ship staff, the office is there to support. We are a serviceand support function in the office, not the ones that are running the show. I always say to everyone, particularly my colleagues in the office, that I have never seen a message of praise from a customer about the work I or my shore colleagues have done.

Customers always praise the sea staff because that’s where the value is generated. All of us in the office have to recognise that we are there to help the Captain and the Chief Engineer succeed. Those were some of the insights generated. In general, just getting the leaders from various nationalities under the same roof and speaking very openly and frankly, I think that helps. There’s nothing that we can’t discuss as a team.

We give each other candid feedback on how we can keep improving.

Type of food that one consumes affects alertness, which is one of the key requirements for safety. Do you have nutritionists who outline food served on your ships?

A couple of things, first, we only have vendors who supply quality foods. We don’t have any grey vendors that provide low-quality food. The experience and training of our cooks is also good. We take experienced cooks and make sure they undergo training in different cultural cuisines.

They learn how to prepare nutritious food, respecting Contd. on page 4

BHANDARKAR SHIPPING NEWS

APM Terminals Pipavav hosts trade meet with Business operators

Mumbai, Thursday, 05 July 2018

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APM Terminals Pipavav is certified as AEO for Logistic & Terminal Operators Keld Pedersen, Managing Director, APM Terminals Pipavav said, “AEO-LO certification is the testimony of APM Terminals Pipavav’s commitment to customers. The certification has validated the company’s capabilities as a reliable partner offering safe, secure and quick turnaround of cargos at the port.”

n BSN Network / Pipavav APM Terminals Pipavavrecently hosted a trade meet for its customers and service providers in New Delhi.

The event was attended by key stakeholders in the industry including senior management personnel of Cargo owners, Shipping Lines, Container Train Operators, Dry Ports and Freight Forwarders.

The main objective of the event was to showcase Pipavav Port’s capabilities of cargo handling and to bring together its customers and partners on

the same platform to promote business networking and provide an opportunity for an interactive session amongst each other.

Mr. Keld Pedersen, Managing Director, APM Terminals Pipavav, shared his experience of working with APM Terminals globally and briefly explained about the recent developments at the Port. Mr. Pedersen reiterated about APM Terminals Pipavav adding FI3 (Maersk Line) and CI6 (Cosco and Wan Hai) services. APM Terminals Pipavav now has a direct connectivity to US West coast on the PS3 service (ONE).

They recently have received AEO LO certificate by which

their Exim customers can opt for AEO T3 certification and avail many benefits including preferential treatment by Customs, zero container scanning (except on specific intelligence), etc.

He further added - “The trade meets are an effort to come together and discuss the business needs and offer suitable solutions on a common platform. It gives us an opportunity to interact with our partners and share views on important issues. I would like to extend my gratitude to all the service providers for their continued support”.

APM Terminals Pipavav is well connected to key ICD locations like Kanpur for imports,

Modi nagar for domestic loads, ACTL Faridabad, CWCN Panipat, Piyala for exports.

The Port is now servicing 7 dedicated block container trains per week (from earlier 3 trains / week).

During the event the company announced that they are rolling out new initiatives like Newsletter and Shipping Line focussed Performance reports. For the refer season, the company highlighted that the Port will shortly commission a temperature controlled enclosure for customs examination and will also introduce a dedicated express gate in facility to refer cargo arriving by road.

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BHANDARKAR SHIPPING NEWS

Seaspan Sails through Stormy Waters in Full Control

Contd. from page 2 that we have seafarers from Indian to Chinese to South African backgrounds, and put together meals that satisfy all cultures. Then we have a Mess Committee onboard, where the crew themselves decide the budget use, menu, preparation and other aspects of the meals.

So I think there are some key things that are working well: good quality, well-trained cooks, and self-planning. It’s not the office dictating that in the morning you need to have eggs and in the evening you need to have salads. The crew decide what they want to have on their ship.

Do you provide Nutrition guidance to your crew?

I know that we did a session last year in Manila, where we actually had doctors come and explain not just about nutrition, but also drinking water and maintaining good hygiene.

When we look at the times when people get sick, they are often due to preventable things. Brushing teeth, having good teeth hygiene—things we can do ourselves. Drinking enough water daily is one of them, otherwise we would be at risk of kidney stones. This is particularly important for engineers because they are running around every day in 40 degree heat and must stay hydrated.

We did a program on different kinds of foods and the health benefits they offer, including energy and alertness.

In fact, I was just having a meeting with the wives of our colleagues and they were asking about which alcohol has the fewest calories: beer or wine.

Luckily, I was helped by one of the wives saying that she believes wine has fewer calories. I could chip in and say that the most important thing is to drink as little as possible when you are sailing.

If you can drink zero alcohol, that’s good. You’re out doing a job and it’s a high-intensity environment, so reducing alcohol as much as possible is the best

thing.

Working out is also highly beneficial.We have a gym onboard, and having a regular practice of working out on the treadmill or doing some weights and keeping fit is also very important. Actually, we started out this whole forum by being active. We were 50 people out there playing cricket the day before yesterday,running around and doing our best to enjoy the game. When you are out running in 35 degrees, it also brings a good sweat. (Laughs). That not only ensures bonding but also shows that being active is part of a good work-life balance.

That’s very important.

Also on a personal level, just being fit and healthy is the best for each individual.

Regular exercise decreases your risk of having longterm diseases that will affect you later on. Then, you look back and say ‘Oh, wish I was drinking more water 20 years ago, and wish I was more active, and wish I had fewer desserts and less alcohol.’

Nutrition is a part of the program, but proper hydration and frequent exercise make up a good formula for a healthy lifestyle.

Fuel prices have lately been on the rise. How has it affected Seaspan?

Seaspan owns the ships and charters them out to the shipping lines. The shipping lines pay the fuel bill,so we don’t suffer directly from that.

Actually it’s a benefit for us and our charterers in the sense that our ships are highly fuel efficient and our Projects team works on these improvements. So while our customers are seeing the direct impact of rising fuel prices, our vessels help alleviate some of the costs compared to older vessels, which consume more inefficiently.

One of the topics in your conference this year is operational excellence, so what’s the strategy that Seaspan has in this regard?

As far as operational excellence is concerned, we

APM Terminals Pipavav is certified as AEO for LO n BSN Network / Pipavav APM Terminals Pipavav’s effort to enhance smooth cargo movement received a major boost, with company receiving certificate for Authorized Economic Operator for Logistic & Terminal Operators (AEO-LO).

With APM Terminals Pipavav being AEO LO certified, its Exim customers can opt for AEO T3 certification and avail many benefits including preferential treatment by Customs, zero container scanning (except on specific intelligence), no

requirement of bank guarantee amongst others.

The AEO certification improves speed of the entire transaction in a transparent manner. It provides tangible benefits in the form of faster customs clearances and simplified customs procedures business entities who require a high degree of security guarantees.

With AEO being a global program, the accreditation/ certifications are standardized, enabling secure supply chains to be established,

are focusing on three key areas with our crew. The first is further improving our vessels’ condition. The second is taking our engineering competencies to the next level. The third is taking our navigational competencies to the next level.

We want to make sure we’re ahead of the game and none of our competitors will catch up to us. On top of these three key things, we focus heavily on customer satisfaction. We have two enablers: one is leadership, and the other is company culture.These support the first three. But, for operational excellence,maintaining good vessel conditions and developing our engineers and our navigators to continue being the best in the industry are the main focus areas for us.

Does Seaspan support women empowerment? Do you have more women joining your crew now?

The number of female cadets has been growing steadily, joining us from various regionslike Ukraine, South Africa and so on. I don’t think we have as many women from India and Sri Lanka joining yet, but the number is growing. That’s definitely a positive development because half of the world’s population is female. If you don’t tap into that you’re saying no to 50% of the talent. From our perspective,the women who join us add even more value to our operation and will drive greater success in our industry.

How do you see new IMO rules and regulations impacting Seaspan?

Yeah, we’re very closely following the rules and regulations, for instance the new sulphur rules coming into force in 2020. For those, we are assessing the use of scrubbers and LNG for new buildings, and potential retrofitson older ships. We have a whole team of Naval Architects, engineers and technology experts working on research and development projects, both in terms of new technology and optimizing existing technology.

We’re investing quite a lot on that front to become even better at what we do.

There are more and more rules coming and the level of complexity is increasing. We from origin to destination.

Keld Pedersen, Managing Director, APM Terminals Pipavav said, “AEO-LO certification is the testimony of APM Terminals Pipavav’s commitment to customers.

The certification has validated the company’s capabilities as a reliable partner offering safe, secure and quick turnaround of cargos at the port.”

have our internal experts with knowledge on these things.

Then we coordinate and cooperate closely with various stakeholders—the industry players, our customers, vendors and competitors—to participate in various initiatives that meet the regulation requirements.

Any latest development in technology that you’re implementing in Seaspan?

We’re running a pilot project right now regarding electronic logbooks and rounds in the engine room.This involves technicians using little tablets that can scan the location of various machinery items, recording readings from the various gauges directly into the tablet. First of all, it helps on-the-go engineers to have a mobile device in their hands that provides instructions and checklists. It simplifies the process and makes it convenient, so there’s no risk of them forgetting anything.

Secondly, it provides better trending and analysis. If an engineer takes a reading and sees that the boiler pressure today is 2 bar, but it was 5 bar over the last couple of days, thenthe tablet will give a warning to say this reading is off, indicating that something is potentially wrong.

Maybe the gauge isn’t working or there’s a leak.Whatever the cause, it immediately gives a warning so that we can then identify and solve the issues. It’s still a pilot but we believe there is a positive output from that.

We’re also investing a lot in our human resources. We have roughly 450 cadets in our system and take in more than 100 cadets every year. So we’re investing very heavily in cadets. We’re also investing around $3 million in training, making our seafarers even better.

We have seen competitors, particularly in the crisis years, cut down on this. However, we have kept it up. We believe that being number one and having a longterm commitment to continue to be the best means that you need to invest in people and talent. We are very strong on that. We’ve got our own real-life purifiers, auxiliary engines, and air compressors so that we can do our own hands-on training with our engineers, in addition to the classroom training. This way, when they are on board they’ll know exactly what to expect because they will have seen the equipment before and know how to fix and maintain it. They will have done all of this on our test equipment under guidance from our instructors, who can explain what to check and which parts are dangerous and most critical, as well as provide tips and tricks to keep the machinery running well.

So, yes, a lot of good things are also happening there!

BHANDARKAR SHIPPING NEWS

FarEye’s Delight n BSN Network / Mumbai FarEye, a leading global digital logistics platform announced the launch of its Delivery Experience Suite – ‘Delight’ that helps businesses increase their Delivery Happiness Score – the ultimate measure of customer success.

It enables businesses to provide a seamless and personalized experience to the customers.

FarEye is a leader in B2C logistics technology and is widely used by global giants like Walmart, DHL, Noon and Amway.

In the face of volatile, accelerated change and rising customer demands, supply chain and logistics companies are under extreme pressure to maintain or improve current levels of performance. 66% of shoppers buy goods from one retailer in preference to another because of more appealing delivery services offered. It is more evident than ever that with evolving customer expectations a superior delivery experience that offers live tracking, personalization, and customization of deliveries becomes imperative. The suite helps companies in transforming customer engagement and experience.

FarEye Delight provides superior delivery experience to the customers and increases the first attempt success rate for businesses. It is already in use by enterprises like Blue Dart, Amway, Future Group, Zalora, Noon and many others. The suite comprises of the following four features: Uberized tracking & realtime feedback Customers receive a tracking link along with the estimated time of delivery offering them a realtime view of the courier. Once delivery is done, they receive a link for sharing instant feedback.

Connect & Deliver Using the live tracking link of their parcel, customers can call or send text messages to the courier about preferred delivery requirements – for instance, leaving the parcel at the reception, dropping parcel with the neighbors, door-bell not working or any reason that is making the delivery stressful.

Customized delivery location & time Customers receive a message with the estimated time of arrival of their parcel, which also carries a link for rescheduling. With just a few clicks, customers can change the date, time and place of delivery.

Seamless brand experience Consistent brand logo on all the touch points with the customer irrespective of the multiple partners involved in the

parcel delivery cycle.

Commenting on the launch, Mr. Kushal Nahata, CEO & Co-founder, FarEye, says, “Delivery happiness score is a metric to measure the overall effectiveness of your deliveries. While more and more companies understand that providing a great customer experience is necessary for business growth, many have a long way to go, bringing all the parts together to make it a reality. The bottom line is that companies struggle to get a cohesive, holistic, outsidein view of their customers’ experience and that is where FarEye Delight bridges the gap.”

Lack of proper communication and interaction between the consumers and delivery personnel is the biggest reason for delivery failures. Also, there is an exponential rise in the expectations of consumers for personalization and seamless experience. Delight enables businesses to handle all these challenges easily, increase first attempt success rates, improve couriers’ efficiency, and make delivery experiences magical for their customers.

FarEye is a SaaS platform, which has two offerings: Last mile delivery (LMD) platform (for operational efficiency) and Supply chain visibility platform for creating reliable & optimized supply chains.

It is a carrier-agnostic platform that can build applications with a simple drag and drop feature, enabling organizations to reduce time to build new processes from quarter(s) to week(s).

FarEye uses data-driven optimization algorithms to help organizations champion operational efficiencies, increase their revenue streams and deliver superior customer experience.

SAIF funded FarEye is enabling digital logistics and continues to grow at an astounding 362% year on year (Deloitte reports). With a presence in more than 20+ countries, FarEye enables digital logistics for the world’s largest retailers like Walmart, Future Retail & Amway, and logistics companies like Blue Dart and eCommerce giants like Noon.

FarEye executes more than 500 million shipments annually for more than 100+ clients.

Mumbai, Thursday, 05 July 2018

APTA Update

n BSN Network / New Delhi The results of 4th Round of negotiations under the Asia Pacific Trade Agreement (APTA) (formerly Bangkok Agreement) among six countries, namely, Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka, have been implemented with effect from 1st July, 2018.

APTA is an initiative under the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) for trade expansion through exchange of tariff concessions among developing country members of the Asia Pacific Region, in place since 1975.

APTA is a Preferential Trade Agreement, under which the basket of items as well as extent of tariff concessions are enlarged during the trade negotiating rounds which are launched from time to time.

The 4th Round of trade negotiations were formally concluded and signed by the Ministers of the member countries during the meeting of the APTA Ministerial Council

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on 13th January, 2017. The decision of the Ministerial Council has now been implemented by all members with effect from 1 July 2018.

With the implementation of the Fourth Round, the coverage of preferences of total tariff lines for each member would come of 10,677 tariff lines (up from 4,270 items at the conclusion of the Third Round) and deepen the average Margin of Preference (MoP) being provided under the agreement to 31.52%. The Least Develop Country (LDC) members are entitled to greater concessions on 1,249 items with an average MoP of 81% on these items under the special and differential treatment provisions of the APTA. India has, on its part, exchanged tariff concessions on 3142 tariff lines with all member countries and special concessions on 48 tariff lines for LDCs, with Bangladesh and Lao PDR. As a founding member of APTA, India is committed to strengthening the APTA process through these concessions.

Dubai Trade World to Create Logistics Community System In Dominican Republic n Agencies A new electronic trade portal that will enable trade and make life easier for business has been launched in the Dominican Republic by Dubai Trade World (DT World).

As a subsidiary of DP World, DT World will provide its ‘Mawani’ system that connects logistics services onto one platform,as well as management and consultancy services to DR Trade – a new joint venture company formed by DP World Caucedo and the Haina International Terminal.

A recent signing ceremony in Caucedo to mark the agreement was attended by representatives of the Dominican Republic’s Ministry of Finance, General Directorate of Customs, National Council of Competitiveness, National Free Zones Council, National Council of Private Enterprise, Association of Industries of the Dominican Republic, the Dominican Association of Exporters and senior DT World officials including Chief Operating Officer Mahmood Al Bastaki.

DT World Chief Operating Officer, Mahmood Al Bastaki, said: “The new portal will offer a single online window for the Dominican Republic’s traders operating across the supply chain, using a proven and streamlined flow of services

designed around their needs.

The millions of transactions between ports, shipping lines, agencies, distributors, importers and exporters, can result in duplication of effort and will now be done through a new, paperless platform.

“Our Logistics Community System ‘Mawani’ will prompt greater intra-regional trade by reducing operating costs and cargo handling times, resulting in an improvement in logistics performance and border compliance. It will support the country’s vision to become a regional trade hub and we look forward to working with the government to further develop services such as these that will support the growth of the economy.”

DR Trade General Manager,Francisco Domínguez, said: “DR Trade’s electronic platformwill enable the intelligent and secure exchange of information between public and private agents to improve the competitive position of the Dominican Republic’s logistics community. We are excited to partner with DT World, a proven leader in trade facilitation, to assist us in our journey to transform and fuel trade in the country, leaving behind all physical documentation and turning the country into one dedicated to technology and paperless processes.”

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Mumbai, Thursday, 05 July 2018

BHANDARKAR SHIPPING NEWS

Karunakar Shetty Elected president of BCBA

n BSN Network / Mumbai Mr.Karunakar Shetty heads the newly elected Brihanmumbai Custom Brokers Association Team. BCBA Elections saw a large number of voters turning up to vote to elect 5 office bearers and 12 Managing Committee members. The election was held at three different locations for ease in voting for members, the locations were CIDCO Exhibition Centre, Navi Mumbai MIAL Conference Room, Air Cargo Complex and BCHAA Office.

President : Mr.Karunakar Shetty, Sr.Vice President : Mr.Kiran Rambhia, Vice President : Mr.Dushyanth Mulani, Vice President : Mr.Sanjeev Harale, Vice President : Mr.Vinayak Aparaj, Hon. Secretary : Mr.Paresh Thakkar, Hon. Treasurer : Mr.Hiren Ruparel Managing Committee Mr. Shankar Shinde, Mr.Ganpat Korde, Mr.KB Bhandari, Mr. Neerav Thakkar, Mr.Tej Contractor, Mr.Ashokh Saini, Mr.Kaushal Thakkar, Mr.M Jagannath Rai, Mr.Paresh Sangani,

Mr.Ketan Desai, Mr.Maruti Ghatge, Mr.Manish Shah Large number of members came forward to cast their vote.

Mr.Karunakar Shetty conveyed his sincere gratitude to the entire Custom Broker fraternity, seniors, advisors, returning officers and staff for their continuous support and guidance. The most important aspect he stressed was the deep rooted foundation of the democracy in BCBA which was be experienced by each member in free and fare manner. President Mr.Karunakar Shetty conveyed that this team which has already done great work and has achieved landmark achievements done in the past 2 terms under the leadership of past president Mr.Ashish Pednekar will continue to do so with more enthusiasm and rightful spirit with a aim of providing service to fraternity and protecting of Custom Brokers.

The other dignitaries present who wished new committe all success included Mr. Deepak Shetty IRS- Former D G Shipping, Mr. Anant Krishnan - Commissioner of Customs, Air Cargo Complex, Mr. Negi - Commissioner of Custom, Mumbai Customs, Mr. Sanjay Bhatia IRS Chairman of Mumbai Port Trust and secretary to government of India, Mr. Manoj Singh - Vice President, MIAL.

BHANDARKAR SHIPPING NEWS

THE COLOMBO SIDE This is an interesting geopolitical piece of information.

This is not just a move by Sri Lanka. Many nations are watching them. Here you go:Sri Lanka will press ahead with liberalizing the island’s shipping industry Finance Minister Mangala Samaraweera said, a move first announced last year but was opposed by a domestic shipping agency cartel, while India is also freeing the sector to make it more competitive.

“We are going ahead with the liberalisation of the shippingindustry before the next budget,” Minister Samaraweera said at the 179th annual general meeting of the Ceylon Chamber of Commerce.

Samaraweera, , said that it is the responsibility of the government to enhance competition and provide goods at lower prices to the public through liberalisation of the economy.

Samaraweera is a member of the United National Party, which is one of the two main parties in Sri Lanka’s coalition administration.

Although the proposal to liberalise foreign ownership of shipping and freight forwarding agencies was in the 2018 budget, Shipping Minister Mahinda Samarasinghe opposed the move.

Samarasinghe had said that liberalization of the shipping industry was against the policies of President Maithripala Sirisena and his Sri Lanka Freedom Party.

Meanwhile India is going ahead with liberalization of its own shipping sector.

In May, India’s Modi admininistration announced that it will allow foreign shipping lines to carry containers between domestic ports, a move that will make it cheaper to consolidate containers in major ports for transhipment to mainline

ships.

The so-calld ‘cabotage’ restrictions, which gave preference to domestic Indian feeder lines, has in part contribted to making Sri Lanka’s Colombo a major transhimpent hub for Indian cargo along with Jebel Ali in Dubai and Singapore, according to Indian interests which pushed to liberalize.

Sri Lanka also halted in mid-way an attempt to attract a major shipping line to the so-called ‘East Terminal’ in Colombo port, though MSC, the world largest shipping line, CMA-CGM and Mearsk were among the bidders (Maersk, MSC, CMA-CGM, bid for Sri Lanka terminal).

Whether the failure to get a global shipping line into Colombo, was due to coalition politics or special interest wrangling is not known.

Both MSC and CMA-CGM had recently set up jointventure terminals with India’s Adani Ports group at Mundra port. Adani group is said to be a prime mover in India’s shipping liberalization drive.

In Sri Lanka, The Ceylon Association of Shipping Agents and the Sri Lanka Logistics and Freight Forwarders Association had lobbied against liberalization, which Minister Samaraweera said will make Sri Lanka a key shipping hub like Singapore.

At the moment the shipping agency business is dominated by a few companies.

Vasudeva Nanayakkara, an opposition member, had petitioned the Court of Appeal, saying that key bureaucrats and politicians were not performing adequately to stop cartelization of the industry, which has been under the Shipping Act No. 52 of 1971, and 70 percent of the industry was now controlled by two companies.

There are more interesting aspects to this development. Stay tuned.

Mumbai, Thursday, 05 July 2018

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Suresh Prabhu Reviews Strategy for Revitalizing India’s Exports n BSN Network / New Delhi Minister for Commerce & Industry and Civil Aviation, Suresh Prabhu chaired a meeting in Delhi on 23rd June 2018, to review development of a strategy for revitalizing India’s exports. The Minister took stock of the latest export trends and expressed confidence over robust growth of total exports by 12.9% in 2017-18. He said that trade events are being organised in African, Central and South American countries to find new markets for exports and to introduce new products.

Because of these measures, exports are continuously registering growth.

The Minister reviewed

development of USD 100 Billion Additional Export Strategy focussing on Champion & Promising products and market retention. This is envisaged as a multipronged sector wise strategy focussing on traditional and new products & markets.

Commodity Specific Strategy includes products like Gems & Jewellery, Leather, Textile & Apparel, Pharmaceuticals, Electronics, Engineering Sector, Chemical & Petrochemicals, Marine Products and Agriculture & Allied Products. Territory Specific Strategy include regions like NAFTA, Europe, North East Asia, ASEAN, South Asia, Latin America, Africa& WANA, CIS, Australia and New Zealand.

Sindhudurg Airport will boost Aviation Sector in Maharashtra

Commerce Minister reviews work of Sindhudurg Airport n BSN Network / New Delhi Construction of airport building and runway for airport at Sindhudurg, Maharashtra Maharashtra will get a new airport at Parule Chipi in Sindhudurg district in 2018. Work on the project is expected to be completed in June this year, before the onset of monsoon and the Ganesh Festival, which will begin in September this year.

The airport is being constructed by IRB Sindhudurg Airport Pvt. Ltd. on a designbuild-finance-operatetransfer (DBFOT) basis for the Maharashtra Industrial Development Corporation (MIDC).

Sindhudurg airport will have a 2500-meter runway which has provision for future development. The airport will be built at an approximate cost of 520 crores.

Sindhudurg airport will have the capacity to handle 200 departing and 200 passengers arriving during peak hours with expansion facilities to serve up to 400 departing and 400 arriving passengers without additional construction. Although the airport will be serving domestic travellers

it will be equipped with facilities to serve International charter flights.

Agreement for construction of the airport has already been signed between Maharashtra Industrial Development Corporation (MIDC) and IRB Sindhudurg airport Pvt. Ltd. in 2009. The Ministry of Civil Aviation has given in-principle approval and environmental clearance has also been granted by the Ministry of Environment and Forest.

Construction of taxi way, apron and isolation bay has been completed and work on the airfield ground lighting in on. Construction of passenger terminal building, ATC tower and technical building is on in full swing. Construction of other ancillary buildings is in progress and will be completed on time.

An airport in Sindhudurg was necessary in order to provide better connectivity to the Konkan region of Maharashtra, parts of Goa, North Karnataka and Western Maharashtra. At present the state of Maharashtra has three functional international and 13 domestic airports.

Published by Vivek Bhandarkar for Bhandarkar Publications and printed at Navin Printers, 13, Krishna Kunj, 143, S. B. Marg, Matunga (W. Rly.) Mumbai-400 016.

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Mumbai, Thursday, 05 July 2018

MANSA elects Captain Amit Wason of NYK Line (India) as President

Captain Amit Wason n BSN Network / Mumbai Maritime Association of Nationwide Shipping Agencies – India (MANSA) has elected Captain Amit Wason from NYK Line (India) Pvt Ltd as President for the period 2018-20 taking charge from Captain Vivek Anand, who held the post for two consecutive terms.

Mr. Hiren Chandrakant Ved from M/s Parekh Marine Services Pvt. Ltd continues as vice-president for another term while Mr. Vijayendra Parvataneni from M/s Maxicon Shipping

Mr. Hiren Chandrakant Ved Agencies, who was also the ex-chairman of Young MANSA Forum, has been elected as the second vicepresident.

Welcoming the new President and the other office bearers and wishing them all success to take MANSA to new heights, outgoing President, Captain Vivek S. Anand said, “The months of July /August will be a period of Transition and Acclimatization. The new Executive Committee will closely work with existing Executive Committee for a smoother takeover.”

BHANDARKAR SHIPPING NEWS

The new committee has the wherewithal to scale new heights and built-up further on all the works

Mr. Vijayendra Parvataneni undertaken by the previous Committee, Captain Anand said.

Expressing pleasure and excitement to take up the challenge, the incoming President, Captain Amit Wason, said, “Aided by the significant domain expertise and experience from senior members of the Executive Committee, I am delighted to continue the good work of my predecessors.

I am hopeful that we will have smooth sailing in achieving our collective goal during the given

term that would benefit all the stakeholders and the Indian economy at large.”

Other office bearers elected for the new term include, Mr. Sanjay Sharad Dalvi of M/s Atlantic Shipping Pvt. Ltd, Mr. R. Subramaniam Swamy of M/s Sai Shipping Co. (P) Ltd, Capt. Ramchandran R. Iyer of M/s Seahorse Ship Agencies Pvt. Ltd, Mr. Rajnish Khandelwal of M/s J. M. Baxi& Co, Capt. Jasbir Singh of M/s Omega Shipping Agencies Pvt. Ltd, Ms. Mousumi Guha of M/s United Liner Shipping Services LLP, Mr. Yogesh D. Shah of M/s Seabridge Marine Agencies Pvt. Ltd. Capt. Mukund Rangamani of M/s K. Steamship Agencies Pvt. Ltd and Mr. Anshuman Baruah of M/s MSC Agency (India) Private Ltd. Among the 12 Members elected to the Executive Committee, there are 7 new Members to add fresh blood to the momentum and for the first time MANSA is proud to have a lady on its Executive Committee.

Published by Vivek Bhandarkar for Bhandarkar Publications and printed at Navin Printers, 13, Krishna Kunj, 143, S. B. Marg, Matunga (W. Rly.) Mumbai-400 016.

Editorial/Advertising/Circulation: Regd. Office: 10, Hammersmith Industrial Premises, Sitladevi Temple Road, Mahim, Mumbai - 400 016.