Bhandarkar Shipping News, 20 August, 2018

n Price: Rs. 5/-

JNPT celebrates 72nd Independence Day The Chairman urged all officers and employees to pay tribute to the freedom fighters by working with integrity and maintaining the leadership position of JNPT in the coming years.

3

FFFAI to organize Young Logistics Programme

- aims to provide youth a global perspective of the Industry

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Vol. XVII-No. 41 n Mumbai, Monday, 20 August 2018 to 26 August 2018 www.bhandarkarpublications.com

Ports register positive growth

- Kamarajar Port registers highest growth at 12.18% On pg. 5

Hapag-Lloyd invests in growing East African market

n Agencies Kenya as a driver of growth in the East Africa region // Serving nearly 900 export and import customers // HapagLloyd with weekly service to and from Mombasa Hapag-Lloyd is continuing to focus on the growing market in East Africa. With annual growth rates of approximately six percent, the region tops the list on the African continent. Kenya, in particular, is developing with significantly rising import and export figures as well as massive investments in public

infrastructure.

In April 2018 HapagLloyd launched the East Africa Service (EAS), its first dedicated service to East Africa. The weekly service sails from Jeddah to Mombasa, and from there to Dar es Salaam, in Tanzania, and directly back to Jeddah. After a successful start this service will be expanded in September with a weekly connection to and from Nhava Sheva, Mundra, Khor Fakkan, Jebel Ali, Mombasa and Dar es Salaam.

Contd. on page 6

Atal Bihari Vajpayee

1924 - 2018 Bhandarkar Publications pays its humble tribute to our former Prime Minister, Shri Atal Bihari Vajpayee.

Atalji was an affable and endearing personality and a much loved and revered statesman who will remain in our hearts for ever.

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Mumbai, Monday, 20 August 2018 to 26 August 2018

BHANDARKAR SHIPPING NEWS

Country has lost one of our Great leaders and Statesman : President FIEO ---Mr Ganesh Kumar Gupta

GREEN SHOOTS Ocean shipping rates into both US coasts are on the rise going into peak season demand.

Along with ongoing import growth due to a strong US economy, market watchers also cite tighter regional trade shifts, tighter vessel supply, fuel prices and tariff threats keeping shipping rates strong.

Spot container rates from Asia-to-US West Coast are over $2000 per forty foot equivalent unit (feu), up from $1,140 per feu at the beginning of July, according to Freightwaves’ SONAR data.

The Asia-to-US East Coast rates also breached $3,000 per feu from mid-August, up from $2,200 per feu at July’s start.

Speaking of the rate gains, Simon Heaney, a manager of container research with Drewry Maritime, says “it’s a combination of all those factors,” including strong import activity, tariff threats, and better operating discipline from carriers.

Heaney says US East and Gulf Coast ports recorded 10% volume growth by the end of the second quarter.

Recent import data showed the strength continued into the third quarter. The Georgia Ports Authority reported 13% growth in throughput at the Port of Savannah to 378,767 twenty foot equivalent unit (teu), its second busiest month on record. Nearby the Port of Charleston saw a 10% year-on-year rise in volume, reaching 200,594 teu for July.

US East Coast ports, in particular, are being helped by shifting trade patterns due to the wider Panama Canal locks, Heaney says. The result is that US East Coast gateways are lodging better growth than their West Coast peers.

Asia-to-US East Coast trade lanes are seeing capacity utilization of around 95% compared to an under 85% utilization level seen on containerships on the Asia-to-US West Coast trade, Heaney says.

“The US West Coast is still by far the largest gateway into the US for Asian imports,” Heaney said. “But the demand growth is in the US East Coast.”

Despite the demand growth, carriers are being cautious in adding more capacity along the US East Coast, further underpinning the rate rise.

Of the 19 Asia-US East Coast container service offerings, only three have weekly shipping capacity of 10,000 teu or more, says Paul Richardson, director of container analytics firm PR News Service. While the wider Panama Canal locks promised to allow larger ships to transit to the US East Coast, the capacity is only coming on slowly.

“All these ports along the US East Coast Newark, Savannah, Charleston - got ready for larger ships,” Richardson said. But carriers are still content to run ships in the 6,000 to 9,000-teu range for their US East Coast service “because the market demand is not there yet,” Richardson said.

US East Coast service also saw some further rationalization as Israel’s Zim Shipping Services announced it would align service offerings with the 2M Alliance, effectively reducing sailings to the US East Coast from seven to five.

The Country has lost one of our great leaders and statesman with the sad demise of Hon’ble Shri Atal Bihari Vajpayee, Former Prime Minister and truly a ‘Bharat Ratna’.

One of our tallest leaders, he always impressed and made a mark with his dedication and commitment to

India’s growth and development.

With this an era has ended and the whole trade & commerce fraternity, specially the exporting community is in deep sorrow and grief. May his Soul Rest in Peace: Mr Ganesh Kumar Gupta, President, FIEO.

July exports shows double-digit growth. n BSN Network / New Delhi Responding to the July, 2018 trade data, FIEO President, Mr Ganesh Kumar Gupta said that consecutively for third month in a row exports have shown double-digit growth, however the rate of growth has declined.

MSME units particularly labour-intensive sectors such as marine products, RMG of all textiles, cotton yarn/fabs/made-ups, agri products, leather & leather products and Handicrafts are into negative territory.

Though some of the labourintensive sectors including gems & jewellery, carpets and jute manufacturing including floor covering etc. have either shown impressive growth or have improved. The main reason behind the impressive growth shown by gems and jewellery exports have been the increased import of gold and pearls, precious & semi-precious stones.

SME sectors of exports are still reeling under pressure because of the liquidity crunch as banks and financial institutions have continuously been tightening their lending norms and ITC refund for exports still poses a challenge, said President FIEO.

FIEO Chief, Mr Ganesh Kumar Gupta added that significant contribution in the growth was made by petroleum, gems & jewellery and engineering sector of On the US West Coast, the transPacific container trades have seen deeper capacity cuts going into the current quarter, which has helped rates in the third quarter. The Ocean Alliance, which includes China’s Cosco and France’s CMA CGM, ceased one weekly trans-Pacific sailing that took out 10,000 teu of capacity.

The scene is getting less cloudy.

Hoping for the best and as traders say bracing for the worst.

exports, as they not only outperformed all other sectors of exports but has also helped the exports sector to continue on its double-digit growth trajectory in these difficult times.

21 out of 30 major product groups were in positive territory during July, 2018.

Besides petroleum, gems & jewellery, and engineering goods, organic & inorganic chemicals, electronic goods, plastic & linoleum and drugs & pharmaceuticals etc. have also shown positive exports growth during the month.

FIEO President again reiterated his concern on the rising trade deficit, primarily on account of swelling of crude imports bill due to rising global oil prices, which have further added to inflationary conditions and the current account deficit thereby adding to the woes of the government on the fiscal deficit front.

This is also adding pressure on Indian Rupee coupled with huge withdrawal by FIIs from the Indian debt & equity market.

Mr Gupta said that on domestic front, key issues like depreciating rupee, access & cost of credit especially for MSMEs should be looked immediately as global challenges and increasing protectionism, have already added to the problems of the exporters. FIEO also urges the government to soon come out with WTO compliant export strategy to give a boost to country’s exports sector.

The Rupee depreciation would definitely provide some edge to Indian exports as Rupee is the worst performing currency in Asia in the current fiscal, yet its impact will vary from sector to sector. However, the textile industry may be at a disadvantage with sharp depreciation in Turkish Lira as Turkey is one of the competitors. Same is true for commodities as Argentinian and Brazilian currencies have depreciated at a steeper pace, added FIEO Chief.

BHANDARKAR SHIPPING NEWS

Mumbai, Monday, 20 August 2018 to 26 August 2018

JNPT celebrates 72nd Independence Day The Chairman urged all officers and employees to pay tribute to the freedom fighters by working with integrity and maintaining the leadership position of JNPT in the coming years.

Jawaharlal Nehru Port Trust (JNPT), India’s No.1 Container Port celebrated 72nd Independence Day with great enthusiasm. Sharing the recent success of JNPT, Shri Bansal observed that JNPT handled the highest ever volume at 4.83 million TEUs

Shri Neeraj Bansal Chairman-in-Charge addressing the gathering on the occasion of 72nd Independence day celebrations at JNPT

Shri.Neeraj Bansal,Chairman-in-Charge, trophy to JNPT school

JNPT

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for the year ended March 2018.

JNPT is poised to handle up to 10 million TEUs in the next few years with the addition of 4th terminal where the first phase is already operational. JNPT is also striving hard to run its own terminal-JNPCT with best facilities and efficiency.

Contd. on page 4

distributes CISF of JNPT

4 Mumbai, Monday, 20 August 2018 to 26 August 2018 Mazgaon Dock gets nod for floating IPO

BHANDARKAR SHIPPING NEWS

JNPT celebrates 72nd Independence Day

Contd. from page 3 n BSN Network / Mumbai Mumbai-based warship maker Mazagon Dock Ltd has received regulatory nod to float an initial public offering (IPO).

The Securities and Exchange Board of India (SEBI) issued final observations to Mazagon Dock’s IPO on 10 August, according to the website of the capital markets regulator.

Mazagon Dock is the 38th company to receive SEBI approval for an IPO in 2018.

As many as 46 companies had received clearance for IPOs in 2017, according to SEBI’s website.

The company had filed its draft proposal on 28 March.

The IPO size is estimated at Rs 1,500 crore.

The government will sell 22.41 million shares, excluding shares reserved for employees, to the public.

This will result in a stake dilution of a little more than 10%. The government will get three years from the date of listing to trim its stake to 75% or below as part of SEBI’s minimum public float norms.

The company will not receive any proceeds from the offer. The money will go in the government’s kitty.

Yes Securities (India), Axis Capital, Edelweiss Financial Services, IDFC Bank and JM Financial are the merchant bankers managing Mazagon Dock’s IPO. Mazagon Dock operated as

a small dry dock in Mazagaon village in Mumbai to service the ships of the British East India Company in 1774. The dock was subsequently developed into a ship repair yard and later a ship building yard over the course of two centuries.

The company was incorporated as a private firm in 1934, and was acquired by the government in 1960 to expand its warship development programme.

The company constructs and repairs warships and submarines for use by the Indian Navy and other vessels for commercial clients. It has a maximum shipbuilding and submarine capacity of 40,000 dead weight tonnage (DWT).

Mazagon Dock is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy, besides being one of the initial shipyards to manufacture corvettes.

The company operates under two verticals: One is shipbuilding, under which it builds and repairs naval ships, and second is submarine and heavy engineering, which includes building and repairing diesel electric submarines.

Mazagon Dock is currently building four P-15 B destroyers and four P-17A stealth frigates for the Ministry of Defence for use by the Indian Navy. It is also building five Scorpene class submarines under a transfer of technology agreement with Naval Group.

JNPT is also working on the road expansion project to reduce road congestion and facilitate faster movement of cargo.

Shri Neeraj Bansal, Chairman-in-Charge was the Chief Guest of the function and hoisted the national flag in the presence of all the dignitaries and employees.

Paying rich tributes to the freedom fighters who laid down their lives for the country, Shri Neeraj Bansal, Chairman-inCharge, JNPT said “This is the day when we celebrate the spirit of freedom and democracy of this great country. This is also the time to pay our homages to all freedom fighters who sacrificed their lives to free India from foreign rule. We also celebrate the great

success of JNPT in the last 29 years and stand committed to achieve more growth for the benefit of all stakeholders and country”.

JNPT is committed to provide all benefits to their employees as they have been responsible for ports growth. He also highlighted the progress made on the various development projects like SEZ which will create job opportunities for locals and PAP’s. Shri Bansal mentioned about the various prestigious awards JNPT has won in the current year. JNPT is also developing a multi skill training centre to impart skill training for the local people so that they become employable in the infrastructure growth that is taking place around the local areas.

Shri Bansal handed over prizes and trophy to children of IES JNPT Vidyalaya, St. Mary’s School, JNPT and CISF personnel.

DGS Circular advises Implementation of OSV Chemical Code n BSN Network / Mumbai International Maritime Organisation (IMO) in recognition of the need for standards which provide an alternative to the International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk (IBC Code) and the International Code for the Construction and Equipment

of Ships Carrying Liquefied Gases in Bulk (IGC Code) for Offshore Support Vessels (OSV Vessels), has developed “Code for the Transport and Handling of Hazardous and Noxious Liquid Substances in Bulk on Offshore Support Vessels (OSV Chemical Code)” vide Resolution A.1122(30) which supersedes Resolution A.673(16).

Contd. on page 17

BHANDARKAR SHIPPING NEWS

POSITIVE GROWTH

Mumbai, Monday, 20 August 2018 to 26 August 2018

Exports in July ’18 grow at 21.84 % in rupee terms n BSN Network / New Delhi Exports during July 2018 were valued at US $ 25.77 Billion as compared to US $ 22.54 Billion during July 2017 exhibiting a positive growth of 14.32 per cent. In Rupee terms, exports were valued at Rs. 1,77,041.47 crore in July 2018 as compared to Rs. 1,45,308.10 crore during July 2017, registering a positive growth of 21.84 per cent.

Cumulative value of exports for the period April-July 201819 was US$108.24 Billion (Rs 7,29,823.08 crore) as against US $94.76 Billion (Rs 6,10,780.14 crore) registering a positive growth of 14.23 per cent in Dollar terms and 19.49 per cent in Rupee terms over the same period last year.

Non-petroleum and Non Gems and Jewellery exports during July 2018 were valued at US $ 18.68 Billion as compared to US $ 16.98 Billion during July 2017 exhibiting a positive growth of 9.98 per cent.

Non-petroleum and Non Gems andJewellery exports during April-July2018-19 were valued at US$ 78.54 Billion as compared to US$ 69.70 Billion for the corresponding period in 2017-18, an increase of 12.69 %.

Imports during July 2018 were valued at US$ 43.79 Billion (Rs3,00,784.72 crore) which was 28.81 per cent higher in Dollar terms and 37.28 per cent higher in Rupee terms over the level of imports valued at US$ 33.99 Billion (Rs. 2,19,108.89 crore) in July 2017.

Cumulative value of imports for the period April-July2018-19 was US$ 171.20 Billion (Rs. 11,54,881.70 crore) as against US$ 146.26 Billion (Rs. 9,42,740.00 crore) registering a positive growth of 17.05 per cent in Dollar terms and 22.50 per cent in Rupee terms over the same period last year.

Oil imports during July 2018 were valued at US$ 12.35Billion(Rs. 84,828.57 crore) which was 57.41 percent higher in Dollar terms and 67.76 percent higher in Rupee terms compared to US$ 7.84 Billion (Rs. 50,565.29

crore) in July 2017.Oil imports

during April-July2018-19 were valued at US$ 46.98 Billion (Rs. 3,17,097.71 crore) which was 51.45 per cent higher in Dollar terms and 58.58 percent higher in Rupee terms compared to US$ 31.02 Billion (Rs. 1,99,961.19 crore) in the corresponding period last year.

In this connection it is mentioned that the global Brent price ($/bbl) has increased by 53.16% in July 2018 vis-à-vis July 2017 as per data available from US Energy Information Administration (EIA).

Non-oil imports during July 2018 were estimated at US$ 31.44Billion (Rs.2,15,956.15 crore) which was 20.23 per cent higher in Dollar terms and 28.13 percent higher in Rupee terms compared to US$ 26.15 Billion (Rs. 1,68,543.60 crore) in July 2017.

Non-oil imports during April-July2018-19 were valued at US$ 124.21 Billion (Rs.8,37,783.99 crore) which was 7.79 per cent higher in Dollar terms and 12.79 percent higher in Rupee terms compared to US$ 115.23 Billion (Rs. 7,42,778.81 crore in AprilJuly, 2017-18.

Non-Oil and Non-Gold imports in July 2018 valued at US $ 28.47 billion has recorded a positive growth of 18.42 % as compared to NonOil and Non-Gold import in July 2017.

Non-Oil and Non-Gold imports in April-July 2018 valued at US $ 112.80 billion has recorded a positive growth of 10.74 % as compared to Non-Oil and Non-Gold import in April-July 2017.

Taking merchandise and services together, overall trade deficit for April-July2018-19 is estimated at US$ 43.77Billion as compared to US$ 34.07 Billion during April-July2017-18.

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INSV TARINI

EXIM Bank & NMML felicitate INSV Tarini crew n Agencies Export-Import Bank of India (Exim Bank) and the Nehru Memorial Museum and Library (NMML) jointly organised a felicitation ceremony for the all-women crew of INSV Tarini in New Delhi.

The six-member crew of INSV Tarini had undertaken a voyage to circumnavigate the globe which began from Goa in the first week of September last year and culminated in May this year. During the 254-daylong voyage, the team covered about 22,000 nautical miles, stopping in five countries — Australia, New Zealand, Falkland Islands (U.K.), South Africa and Mauritius. The six member team comprised of Lt. Cdr.Vartika Joshi (Skipper), Lt.Cdr. Pratibha Jamwal, Lt. Cdr. B. Aishwarya, Lt. Cdr. P. Swathi, Lt. Cdr. Vijaya Devi and Lt. Payal Gupta.

This is the first-ever Indian circumnavigation of the globe by an all-women crew.

Lt.Cdr. Joshi spoke about the challenges faced during the voyage and the team-spirit and determination displayed by every crew member to complete the circumnavigation.

Mr. David Rasquinha, Managing Director, Exim Bank, said, “Exim Bank as the promoter of India’s

international trade is proud to celebrate the success of the officers who went around the globe on a sail boat.

Since times immemorial, India’s trade has happened through waterways and sea routes across the world. Sailing has been a harbinger of trade. From ancient times, ships have set sail from India, to faraway lands.

The achievement by these women officers has once again proved that nothing is impossible for our determined youth. They did not just circumnavigate the globe but made India proud.”

Mr. Shakti Sinha, Director, NMML, lauded the courageous officers in facing the daunting challenges during their voyage. “Their amazing feat showcases that no problem is insurmountable. We only have to look for solutions.

These women have showed great courage and team spirit while encountering rough seas, high stormy conditions and severely cold temperatures. We are really inspired by their courage and indomitable spirit,” he said.

Ports register positive growth n BSN Network / Chennai The major ports in India have recorded a growth of 4.13% and together handled 231.48 Million Tonnes of cargo during the period April to July, 2018 as against 222.29 Million Tonnes handled during the corresponding period of previous year.

During this period nine Major Ports - Kolkata (incl. Haldia), Paradip, Visakhapatnam, Kamarajar, Chennai, Cochin, New Mangalore, JNPT and Deendayal have registered positive growth in traffic.

The highest growth was registered by Kamarajar Port (12.18%), followed by Cochin (10.30%), Paradip (8.31%), New Mangalore ( 7.88%) and Kolkata [inc. Haldia] (7.74%) Kamarajar Port growth was mainly due to increase in Other Liquids by 20%, Other Misc.

Cargo by 13.30%, POL by 11.30%. and Thermal & Steam Coal by 4.44 % .

In Kolkata Port, overall

growth was 7.74%. Kolkata Dock System (KDS) registered traffic growth of 5.13%. Whereas Haldia Dock Complex (HDC) registered a growth of 8.89%.

Deendayal (Kandla) Port handled the highest volume of traffic i.e. 38.76 Million tonnes (16.74% share), followed by Paradip with 35.68 Million Tonnes (15.41% share), JNPT with 23.25 Million Tonnes (10.05% share), Visakhapatnam with 21.52 Million Tonnes (9.30% share) and Mumbai with 19.57 Million Tonnes (8.45%).

Together, these five ports handled around 60% of Major Port Traffic.

Commodity-wise percentage share of POL was maximum i.e. 32.53%, followed

by Container (20.86%), Thermal & Steam Coal (15.78%), Other Misc. Cargo (10.68%), Coking & Other Coal (7.61%), Iron Ore & Pellets (6.17%), Other Liquid (4.09%), Finished Fertilizer (1.36%) and FRM (0.92%).

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Mumbai, Monday, 20 August 2018 to 26 August 2018

BHANDARKAR SHIPPING NEWS

Capt. Mukund Kumar, Chairman of the Chapter thanks MMD Kolkata for all the support

n BSN Network / Mumbai he 3rd Annual General Meeting of the Company of Master Mariners of India’s Kolkata Chapter (for the financial year ending 31st March, 2018) was held on 03rd August, 2018 at Princeton Club, Kolkata. The AGM was chaired

by Capt. Mukund Kumar, Chairman of the Chapter.

In his opening speech, the Chairman welcomed the members to the AGM and made the following points: l He highlighted that member strength of the Chapter has reached 150. l He informed that Rs. Twenty Eight Lakhs had been invested as Fixed Deposit in the CMMI Kolkata Chapter Bank Account at Syndicate Bank. l He apprised the members that the CMMI Kolkata Chapter has been affiliated with the Bengal Chamber of Commerce and the Indian Chamber of Commerce.

T

n BSN Network / New Delhi

l He informed the members that the online payment of candidate fees for DCE, WKC and AB-COP of the Facilitation Centre has been started in the CMMI Kolkata Chapter Website. l Finally the Chairman expressed gratitude to a) P.O. MMD Kolkata and other officers of MMD, Kolkata, who had always been so supportive of CMMI. Contd. on page 17

FFFAI to organize Young Logistics Programme - aims to provide youth a global perspective of the Industry

FFFAI will be organizing Young Logistics Programme on September 24 during FWC-2018 in New Delhi.

Of late, the logistics industry in India, which is the potential sunrise sector, has been successful to draw attention of the government as well as common mass. Accordingly, young entrepreneurs and startup companies are apparently becoming inquisitive about this lucrative sector.

However, one of the

biggest challenges in today’s logistics industry is the shortage of skilled manpower. The industry is fragmented and looks unattractive in wooing young professionals because of its poor image.

In view of the above scenario, the Federation of Freight Forwarders’ Associations in India (FFFAI) will organize a “Young Logistics Program (YLP)” on September 24 on the occasion of the FIATA World Congress 2018 which is being held from September 2629, at Pullman Hotel, Aerocity, New Delhi. Elaborating on YLP, Tej Contractor, Executive Committee Member, FFFAI and who is spearheading the programme said, “The

objective of YLP is to provide our youth with a global perspective of our Industry at present and where it’s going to. Currently, disruption is the name of the game. At the YLP we will showcase the disruptive technologies that have changed and will change our industry in the “Battle of the Startups” by presenting three leading startups in various fields.

According to Tej, learning is the necessity of life. “We learn something new every day and will continue to do so. After an energetic morning with the disruptions with startups, what better way than to introduce the newest way of learning the Logistics Business by playing

a game,” added Tej. At the special Young Logistics Programme FFFAI will excel the process of learning the logistics business “With Business on the Move” perception.

Elaborating on the logistics game Tej maintained that this is an innovation in itself moving from the Screen back to the era of the Board Game, where one learns about Transporting Freight, Making Profit, Buying and maintaining Assets and most importantly understand the value chain.

The game will run with 128 individuals divided into 64 teams, who will play a round of 16 followed by a round of 4 and then the Finalists for the Grand Finale.

“We request you to please Pre-register for the game which can be participated by maximum 128 participants,” Tej appealed.

Online registration is available at FWC-2018 website: www. fiata2018.org.

Hapag-Lloyd invests in growing East African market Contd. from page 1 The so called EAS2 will replace the current EAS service and directly link the Arabian Gulf and the West Coast of India with East Africa.

Hapag-Lloyd also offers inland transportation to and from East African hinterland locations of Bujumbura (Burundi), Kigali (Rwanda), Lubumbashi

(Democratic Republic of Congo), Lusaka (Zambia) and Kampala (Uganda).

“I am delighted that our East Africa Service from and to Kenya is developing so positively. After only four months in operation, we have significantly expanded our business with overall vessel utilization beyond our expectations,” said

Dheeraj Bhatia, Managing Director Africa, Middle East and Indian Subcontinent for Hapag-Lloyd AG. “With our upcoming new EAS2 service we will be able to offer even better connections from and to East Africa.

All in all we are experiencing growing client demand which demonstrates the economic potential of

Kenya.”

The GDP of Kenya has grown significantly in the last two years, rising by an average of approximately six percent. Kenya primarily exports coffee and tea, but also vegetables, fruits and textiles. The main imports are vehicles, spare parts, yarns, machines and electronic goods.

BHANDARKAR SHIPPING NEWS

Mumbai, Monday, 20 August 2018 to 26 August 2018

DGS Circular advises Implementation of OSV Chemical Code Contd. from page 4 The Code covers the design, construction and operation of offshore support vessels which transport hazardous and noxious liquid substances in bulk for the servicing and resupplying of offshore platforms, mobile offshore drilling units and other offshore installations, including those employed in the search for and recovery of hydrocarbons from the sea-bed.

Directorate General of Shipping, GOI, vide Engineering Circular No. 3 of 2018, dated 03 August 2018 has advised implementation of OSV Chemical Code on Indian flagged vessels with immediate effect.

The requirements of OSV Chemical Code applies to – a. OSVs, the keel of which are laid on or after 1 July 2018, or which are at the stage where: 1. C o n s t r u c t i o n identifiable with the vessel begins; and 2. Assembly has commenced comprising at least 50 tons or 1% of the estimated mass of all structural material, whichever is less. b. Existing OSVs, the keel of which were laid or which were at a similar stage of construction on or after 19 April 1990 but before 1 July 2018 are permitted to carry products as assigned for carriage

on a type 2 ship in the IBC Code, provided that these OSVs comply with the OSV Chemical Code, except for the amended stability provisions in chapter 2 of the OSV Chemical Code.

The first onboard initial survey and certification as per the provisions of OSV Chemical Code for existing ships is to be carried out at the next Annual/ Intermediate /Renewal – Safety Construction survey falling due after 1 September 2018 and the validity of the certificate of fitness issued under OSV Chemical Code will be aligned with the validity of Safety Construction Certificate in order to maintain harmonized survey system.

Owners and managers of existing offshore support vessels and intending to carry products as assigned for carriage on a type 2 ship in the IBC Code, may contact IRS Plan Approval Center in advance for necessary verification/ approval of plans in this regard so that subsequent on board survey as above can be undertaken for implementation of OSV Chemical Code.

Owners and managers of offshore support vessels are advised to be guided by above and the attached DGS Engineering Circular No. 03 of 2018.

RAIL SAFETY

Japan to cooperate with India to enhance rail safety n BSN Network / New Delhi Record of Discussion (ROD) for the project on Capacity Development on Rail Safety was signed between Ministry of Railways and Japan International Cooperation Agency by Shri S. K. Mishra, Principal Executive Director, Railway Board and Mr. Katsuo Matsumoto, Chief Representative, Japan International Cooperation

Agency in the presence of officials of Railway Board, Department of Economic Affairs and Japan International Cooperation. The ROD is formalization of the agreement reached between Ministry of Railways, India with Ministry of Land, Infrastructure, Transport and Tourism (MLIT), Japan through an Memorandum of Cooperation (MOC) signed on 17th February, 2017 to

17

Capt. Mukund Kumar, Chairman of the Chapter thanks MMD Kolkata for all the support Contd. from page 6 b) The Shipping Corporation of India, Kolkata, for accommodating CMMI for some of its Monthly Lecture Meetings in their Board Room. c) P.O. MMD Kolkata, Shri S. Barik, for allowing CMMI to hold most of its Monthly Lecture Meetings in the Board Room at Marine House, and also for allowing the use of the Marine House Annexe Building for the work of the Facilitation Centre and the Kolkata Chapter Office for a nominal charge. d) Capt.

Kaustuv Dutta, Secretary of the Chapter and Sailing Master of M/s The Shipping Corporation of India Ltd., Kolkata, for his valuable contribution in the CMMI Diamond Jubilee Celebrations of the Kolkata Chapter. e) All the sponsors who had always been so supportive of CMMI. The minutes of the last AGM held on 14th July 2017, which was circulated to members along with the Agenda, were

taken on record.

The Report of the CMMI Kolkata Chapter for the year ended 31.03.2018 was read out and taken on record.

The Auditor’s Report and Audited Statement of Accounts for the Chapter for the year ended 31.03.2018 was considered, and the same was adopted unanimously, without any query.

The auditors for the Chapter, M/s D. Bandyopadhyay & Co. were reappointed for the financial year 2018-19, for an agreed annual remuneration of Rs 7,500/- plus GST as applicable.

The present Chapter Committee Members were reelected for the term 2018-2020.

There being no other matter, the meeting ended with a vote of thanks to the chair, by the Secretary of the Chapter, Capt.

Kaustuv Dutta.

The meeting was followed by a short presentation on “Alternative Dispute Resolution” by Capt.

Arijit Mukherjee, FICS, FCILT, ACIARB, Director, Safe Passage Shipping LLP. Kolkata.

work jointly and cooperate on improving railway safety on Indian Railways. The ROD sets out the activities to be undertaken under the programme with a clear focus on maintenance of track (welding, rail inspection, track circuit etc) and rolling stock.

A great deal of meticulous work was put in by both sides to finalize the programme. ToR Missions from Japan comprising representatives of Japan’s MLIT, Railway Technical Research Institute, East Japan Railway Company (JR East), West Japan Railway Company (JR West) and Indian Railway Freight (IR Freight) visited India thrice between August and November, 2017 for this purpose. It was agreed that Northern Railway and Dedicated Freight Corridor Corporation of India Limited

(DFCCIL) shall be the recipients under the cooperation programme. The Japanese team would work closely with DFCCIL and Northern Railway’s safety, civil engineering and rolling stock teams. Thereafter, 60 technical personnel from India would receive first-hand training in Japan. DFCCIL has been included in the safety project so that the company can use the know-how right from the inception of its operation which is targeted in current year and next.

The programme will continue for two years and is expected to yield tangible benefits in the areas of safety management and upgradation of technical skills of Indian Railways front line maintenance staff.

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Mumbai, Monday, 20 August 2018 to 26 August 2018

BHANDARKAR SHIPPING NEWS

A.P. Møller - Mærsk A/S delivers revenue growth in a challenged market n Agencies

A.P. Møller - Mærsk A/S showed good progress in the second quarter of 2018, strategic business transformation, reporting revenue growth at the same time as realising synergies through further business integration.

Revenue grew 24% to USD 9.5bn across segments, 5.7% excluding the effect from Hamburg Süd. Revenue growth was seen in key areas such as Logistics & Services, which among others was positively affected by increase in service of our customers supply chain management and in Gateway & Towage.

At the same time, the company realised synergies from the integration of Hamburg Süd and from the increased collaboration across existing transport, logistics and ports

businesses, contributing positively to the profitability.

“With revenue up 24% in Q2, we continued to deliver strong growth. The acquisition of Hamburg Süd of course was a positive contributor to growth in our Ocean segment, and we are pleased with the organic growth in non-Ocean. We expect revenue of around USD 40bn in 2018, up almost 50% since 2016,” says SørenSkou, CEO of A.P. Møller - Mærsk A/S and continues: “We also delivered a sharp improvement in unit cost in Ocean, after a Q1 that was negatively impacted by inflow of capacity from the acquisition of HamburgSüd and network issues.

Profitability was significantly impacted by higher bunker prices in Q2 and remained at unsatisfactory levels.

For the rest of the year we expect improvements in our

profitability driven by lower unit cost and higher freight rates.”

Lower unit costs were mainly driven by a reduction in network costs in Ocean, comprising network changes and increase in loaded volume.

Furthermore, in Q2 the revenue in Ocean grew 25% to USD 7bn, 0.6% excluding Hamburg Süd, and volumes grew 26%, 4.3% excluding Hamburg Süd, which is in line with estimated market growth of around 4%.

Guidance for 2018 including sensitivities As reported on 7 August 2018, the underlying profit after financial items and tax amounted to earnings before interests, tax, depreciations and amortisations (EBITDA) in A.P. Møller - Mærsk A/S of USD 883m was negatively impacted by increased bunker costs in Ocean. Combined with the development in freight

rates and uncertainties related to trade tensions it led to an adjustment in the expectation for EBITDA for the full-year 2018 to reach in the range of USD 3.5 4.2bn.

The organic volume growth in Ocean for the full year is still expected slightly below the estimated average market growth of 2-4% for 2018. Further, guidance is maintained on gross capital expenditures (capex) around USD 3bn and a high cash conversion (cash flow from operations compared with EBITDA).

The guidance continues to be subject to uncertainties due to the current risk of further restrictions on global trade and other factors impacting container freight rates, bunker prices and rate of exchange.

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.