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Commerce Ministry mulls extension of interest equalisation for exporters to boost shipment

NEW DELHI: The Commerce Ministry is likely to seek further extension of the interest equalisation scheme on pre- and post-shipment rupee export credit for another five years to promote the country's outbound shipments, an official has said.

The scheme will end on June 30 this year.

"The Ministry will do revamping of some schemes like interest equalisation scheme. We would propose an extension of the scheme for five years. The scheme is doing

Long pending reforms to boost shipping industry, promises BJP manifesto

NEW DELHI: Ahead of the Lok Sabha elections, the ruling Bharatiya Janata Party (BJP) has promised to encourage the growth of the Indian maritime sector through legislative changes, according to its election manifesto released on Sunday, 14th April.

“We will revamp the legal framework to enable faster growth of our shipping industry to become globally competitive,” the party said in its manifesto.

The additional outlay of Rs 2,500 crore, over and above the current outlay of Rs 9,538 crore under the scheme, was made available to bridge the funding gap to continue the plan up to June 2024.

good, and it is helping the exporters," the official said.

On December 8, 2023, the Union Cabinet approved an additional allocation of Rs 2,500 crore for the continuation of the scheme up to June 30. The scheme helps exporters from identified sectors and all MSME manufacturer exporters to avail of rupee export credit at competitive rates at a time when the global economy is facing headwinds Exporters get subsidies under the 'Interest Equalisation Scheme for pre and post-shipment rupee export credit

Cont’d Pg. 15

Despite Global challenges, overall exports estimated to surpass last year’s highest record : Commerce Secretary

March witnessed the highest monthly merchandise exports : Commerce Secretary Cont’d Pg. 15

NEW DELHI: India's merchandise exports in March stood at USD 41 68 billion, while for the entire 2023-24 it dipped 3 11 per cent to USD USD 437 06 billion, as geopolitical issues continued to hamper global shipments Imports, too, declined 5 98 per cent to USD 57 28 billion in March, taking the trade deficit to 15.6 billion during the month.

There will be No Issue of Daily Shipping Times on Wednesday, 17thApril, 2024 on account of Ram Navmi. Cont’d Pg. 6

Long pending reforms to boost shipping industry, promises BJP manifesto

Cont’d from Pg. 3

While no specific legal or policy changes have been mentioned in the document, according to experts, changes in the Merchant Shipping Act could be one of the key areas of focus to enable faster growth of India-flagged ships.

India currently has an old Merchant Shipping Act, which has outlived its need, a sector analyst said. An amendment to the Act was tabled in the Parliament, which was subsequently referred to the parliamentary standing committee.

“I understand it (the poll commitment) as the government committing to put the merchant shipping amendment forth,” Mr. Samir Kanabar, Partner at EY India, told.

The draft Merchant Shipping (Amendment) Bill, 2022, which seeks to amend the Merchant Shipping Act, 1958, has provisions to decriminalise or provide leniency for some offences. It proposes to do away with imprisonment for multiple offences and allows non-resident Indian and Overseas Citizens of India to own Indian ships.

According to Kanabar, current cabotage laws, which refer to the right to operate ships in coastal waters, have restrictions for foreign-owned vessels The Shipping Ministry had reportedly floated a proposal to do away with cabotage laws in 2023.

India mandates vessels operating out of its territory to fly the Indian flag, while countries like Singapore and the Netherlands allow for ‘flag of convenience’ provisions. Expanding waterways

The ruling party, over the past 10 years, has aimed to increase the share of inland waterways in national logistics.

“We will integrate inter-ministry initiatives like the National Waterway Project, Namami Gange, the National River Conservation Plan, Jal Marg Vikas Project and Arth Ganga, among others, to double the share of Inland Water Transport in transportation,” reads the BJP document.

Some of the Centre’s national waterway projects have been criticised over environmental concerns, while the industry at large is still testing the waters on the feasibility of movement of goods through rivers.

According to the NITI Aayog, the share of inland waterways in national logistics is 2 per cent, and the Centre aims to increase it to to 5-6 per cent.

Analysts believe that building a homegrown shipping industry is also in the national interest as escalated geopolitical tensions, such as the latest attacks by Iran on Israel, can have the potential to disrupt supply chains and adversely impact Indian trade.

Meanwhile, the Centre has also been examining proposals to include ships in the Finance Ministry’s harmonised list of infrastructure sectors to push for easy availability of credit for shipowners.

This was in the aftermath of Finance Minister Smt. Nirmala Sitharaman’s announcement to promote coastal shipping in public private partnership (PPP) mode during her 2023-24 budget address.

The BJP also committed to expanding water transport corridors for passengers should it be voted to power in the Lok Sabha elections. “We will expand water metro services across all feasible regions, enhancing water-based public transportation networks and improving connectivity,” the party’s manifesto said

Iran-Israel conflict: Aviation, shipping sectors brace for disruption

NEW DELHI: The ongoing conflict between Iran and Israel could disrupt the aviation and shipping industries, sparking concerns over air travel safety and maritime security worldwide, besides a potential rise in airfares, increased war-risk premium for vessels operating in the area, as well as risks to agriculture trade.

Following Iran’s recent attack on Israel with drones and missiles, several countries in the region, including Iran, Jordan, Iraq, Lebanon, and Israel, temporarily closed their airspaces on 12 April as a precautionary measure, before reopening on 14 April, albeit with restrictions.

The mounting tensions prompted airlines to reconsider alternative routes to avoid potential risks associated with flying over conflict zones Flight tracking websites reported diversions of air traffic away from Iranian airspace, towards Kazakhstan,Tajikistan,SaudiArabiaandEgypt However,even with these changes in routes, the specter of GPS jamming and spoofingloomslarge,furthercomplicatingnavigationsafety.

The recent escalation in tensions was in response to a suspected Israeli airstrike earlier in the month on an Iranian consular building in Syria, resulting in the loss of 12 lives. In fact, the US and Israel were bracing for an attack for days after Iran vowed to retaliate.

Air India, the largest group airline for international air traffic to and from India, said it is closely monitoring the

evolving situation in the Middle East, and is operating its fleet on alternative flight paths.

Tata Group airline, Vistara, too, has adjusted flight routes for destinations, such as Paris, London and Frankfurt, among others, and is using contingency routes. This may result in longer flight times on certain routes and associated delays, a Vistara spokesperson said.

IndiGo is also rerouting flights to Baku, Tblisi, and Kuwait, and has urged its codeshare partner Turkish Airlines to avoid Iranian airspace for now.

War Risk Premiums are additional charges imposed by insurance companies for coverage in conflict zones Supramax vessels are medium-sized ships transporting bulk cargo, but not containerised goods.

Freight rates for transiting through the Red Sea and Suez Canal—a key corridor for trade between Asia and Europe have skyrocketed since the Israel-Palestine conflict erupted six to seven months ago. Shipping lines now face steep war risk premiums, or opt for the longer Cape of Good Hope route to reach Europe from Asia.

Consequently, the average cost of shipping for a standard 20-foot container from Mumbai to Rotterdam has surged from $500-650 to over $3,000. Similarly, shipping costs to Bandar Abbas in Iran have more than doubled from $300-350 to $700-750.

EAM discusses release of 17 Indians aboard MSC Aries with Iranian counterpart

N E W D E L H I : E x t e r n a l A f f a i r s M i n i s t e r

Shri S Jaishankar engaged in a conversation with H. Amirabdollahian, the Minister of Foreign Affairs of the Islamic Republic of Iran on April 14 regarding the release of 17 Indian crew members from the MSC Aries.

The EAM wrote on X to share the news.

“Spoke to Iranian FM

@Amirabdolahian this evening.

Took up the release of 17 Indian crew members of

MSC Aries,” stated Shri Jaishankar

Additionally, he also stated that they had discussions about the present regional circumstances, emphasising the significance of de-escalation, practicing moderation, and reverting to diplomatic solutions.

“Discussed the current situation in the region. Stressed the importance of avoiding escalation, exercising restraint and returningtodiplomacy Agreedtoremainintouch,”he wrote

China remains top merchandise exporter in 2023 for 7th straight year

BEIJING: China remained the top merchandise exporter in 2023 for the seventh straight year with its share in world exports at 14.2 percent, almost the same as the level in 2022, the China’s Ministry of Commerce said.

The Ministry made the remarks in response to the latest edition of World Trade Organization’s (WTO) “Global Trade Outlook and Statistics,” which foresees a gradual recovery in world merchandise trade volume in 2024 and 2025, following a contraction

in2023. China stayed as the second top merchandise importer in 2023 with a share of 10 6 percent, basically the same with the level in 2022, the ministry said.

Despite the difficult recovery of the world economy, China has maintained steady performances in world merchandise trade, showing strong growth resilience, the Ministry noted.

T h i s s h o w e d t h a t C h i n a ’ s quality products are welcomed by

the global market and imports into China’s large domestic market have helped drive the economic g r o w t h o f o t h e r c o u n t r i e s , the Ministry said

The WTO report also cautioned that there is a high degree of uncertainty associated with the current forecast due to the large number of risk factors present in the global economy, including regional conflicts, geopolitical tensions, and rising protectionism.

RED SEA & MED. PORTS from NSIGT

Indial Indial Shpg. U.K., North Cont., Scandinavian, Red Sea & Med. Ports.

Seahorse Ship U.K., North Continent, Scandinavian Ports & Riga, Klaipede, Tallim, St.Petersburg, Genoa, Valencia, Fos.

Globelink Globelink WW U.K., North Continent, Scandinavian Ports & Ashdod, Piraeus, Thessaloniki, Athens.

TSS L'Global Ag. U.K., North Continent & Scandinavian Ports. Dronagiri-2

AMI Intl. AMI Global U.K., North Cont., Scandinavian, Red Sea & Med. Ports. Dronagiri-3

Kalko Faredeal U.K., North Continent & Scandinavian Ports. Dronagiri-3

Team Leader Team Leader Felixstowe, Rotterdam, Antwerp, Hamburg, Barcelona, JWR CFS

Le Havre, Istanbul, Genova.

Safewater Safewater Lines U.K., North Continent, Red Sea & Med. Ports.

Team Global Team Global Log. U.K., North Continent & Scandinavian Ports. Pun.Conware

Shpg. Jebel Ali, Sohar.

Feeders Sea Consortium Jebel Ali,

Commerce Ministry mulls extension of interest equalisation for exporters to boost shipment

Cont’d from Pg. 3

The scheme was started on April 1, 2015, and was initially valid for five years up to March 31, 2020. It has been continued thereafter, including a oneyear extension during COVID-19, and with further extensions and fund allocations.

Currently, the scheme provides an interest equalisation benefit at the rate of 2 per cent on pre and postshipment rupee export credit to m e r c h a n t a n d m a n u f a c t u r e r exporters of 410 identified tariff lines at 4 digit level and 3 per cent to all MSME manufacturer exporters These sectors include handicrafts, leather, certain fabrics, carpets and readymade garments.

The scheme has now been made fund-limited, and benefits to individual exportersarecappedatRs10croreper annumperIEC(ImportExportCode)

According to a statement of the Commerce Ministry, the banks that lend to exporters at an average rate of more than Repo +4 per cent would be debarred under the scheme.

The scheme is implemented by the RBI through various public and non-public sector banks that provide pre and post-shipment credit to the exporters. It is jointly monitored by the Directorate General of Foreign Trade (DGFT) and RBI through a consultative mechanism.

From April 2023 - November 30, 2024, the government has disbursed Rs 2,641.28 crore against the allocated budget of Rs 2,932 under the scheme. Rs 3,118 crore was disbursed in 2022-23 and Rs 3,488 crore in 2021-22.

Exporters said that the scheme is helping them in the current turbulent times.

Federation of Indian Export

Organisation (FIEO) President Ashwani Kumar said the support measures under the scheme help in increasing the competitiveness of Indian exporters in the international markets.

"In China, the rate of interest is 2 - 3 p e r c e n t a n d t h a t h e l p s t h e i r e x p o r t e r s i m m e n s e l y. The gover nment here should positively consider extending the scheme," Kumar said.

India recorded the highest monthly exports in Febr uar y, registering an 11.9 per cent growth to USD 41 4 billion, mainly driven by increased shipments of engineering g o o d s , e l e c t r o n i c i t e m s a n d pharma products

During April-February 2023-24, exports have declined to USD 395 billion compared to 409.11 billion in the same period of 2022-23.

Despite Global challenges, overall exports estimated to surpass last year’s highest record : Commerce Secretary

March witnessed the highest monthly merchandise exports : Commerce Secretary Cont’d from Pg. 3

According to Commerce Ministry data released on Monday, 15th April the imports during 2023-24 stood at 677.24 billion, down 5.41 per cent from USD 715.97 billion in the preceding year

GANDHINAGAR: Adani Ports and Special Economic Zone Ltd (APSEZ) has proposed a significant investment o f R s . 1 , 6 8 9 c r o r e f o r t h e establishment of Poseidon Leasing IFSC Ltd, a step-down subsidiary company, to operate within the GIFT SEZ in Gujarat. This strategic move marks their venture into ship leasing activities, encompassing both operating and financial leases of ships, ocean-going vessels, and related components.

Poseidon Leasing IFSC Ltd has been set up under the umbrella of another APSEZ subsidiary, Shanti

The overall exports (merchandise + services) are estimated to surpass last year's highest record, the Secretary said. It is estimated to reach USD 776.68 billion in 2023-24 as compared to USD 776.40 billion in 2022-23. Barthwal said March witnessed the highest monthly merchandise exports during 2023-24 at USD 41.68 billion.

Main drivers of merchandise export growth in 2023-24 include electronic goods, drugs and pharmaceuticals, engineering goods, iron ore, cotton y a r n / f a b s / m a d e - u p s , h a n d l o o m

The trade deficit or gap between imports and exports worked to be USD 240.17 billion. Replying to a query on escalation of the crisis in the Middle East, Commerce Secretary Sunil Barthwal, who was briefing about the trade data, said the Ministry was monitoring the situation and will take "appropriate action". However, he did not elaborate due to the Model Code of Conduct in the wake of the ongoing Lok Sabha election.

products and ceramic products and glassware Electronic goods exports increased 23.64 per cent from USD 23.55 billion in 2022-23 to USD 29.12 billion in 2023-24 Drugs and pharmaceuticals exports increased 9.67 per cent from USD 25.39 billion in 2022-23 to USD 27.85 billion during the fiscal year Data showed that engineering goods exports increased 2.13 per cent to USD 109.32 billion in 2023-24 The Commerce Ministry also said the overall trade deficit is estimated to significantly improve 35.77 per cent from USD 121.62 billion in 2022-23 to USD 78.12 billion in 2023-24.

Sagar International Dredging Ltd

(SSIDL)

, which will hold full ownership of Poseidon The newly formed entity will boast an authorized and paid-up capital of Rs. 2.5 crore, divided into Rs. 25,00,000 equity shares of Rs 10 each While the company is yet to formally respond to queries, sources familiar with the matter revealed that three director names have been proposed for the venture

This move by the Adani Group signifies their active expansion w i t h i n t h e m a r i t i m e s e c t o r, particularly in ports and terminals

across India

Establishing a ship leasing entity within Gift City holds strategic significance as it enables I n d i a n f i r m s t o c o n d u c t transactions in foreign currency, thus attracting companies that previously operated overseas due t o r e g u l a t o r y a n d t a x considerations The decision to set up ship leasing operations at Gift City aligns with the broader trend o f I n d i a n e n t i t i e s s e e k i n g r e g u l a t o r y c l a r i t y a n d t a x incentives domestically, rather than opting for offshore locations like Dubai or Singapore.

VESSELS DUE AT MUMBAI FOR EXPORT LOADING

28. DTW0338157

Consignees are requested to obtain the DELIVERY ORDERS on presentation of ORIGINAL BILLS OF LADING and on payment of relative charges as applicable within 5 days or else Detention Charges will be applicable.

If there is any delay in CY-CFS movement due to port congestion Line/Agent are not responsible for the same.

Consignees will please note that the Carriers and/or their Agents are not bound to send individual notifications regarding the arrival of the vessel or the goods. For detailed information on cargo availability please contact our office. For any charges enquiries, Please contact on our Import Hotline No. : 4252 4444

m.v. “XIN BEIJING” V-144 (XBJ -113/E)

The above vessel is arriving

Consignees are requested to obtain DELIVERY ORDERS on presentation of ORIGINAL BILLS of LADING and on payment of relative charges as applicable within 5 days or else Detention Charges will be applicable.

If there is any delay in CY-CFS movement due to port congestion Line/Agent are not responsible for the same.

Consignees will please note that the Carriers and/or their Agents are not bound to send Individual Notifications regarding the arrival of the vessel or the goods.

For detailed information on cargo availability please contact our office.

For any charges enquiries, Please contact on our Import Hotline No. : 4252 4444

India’s exports to Europe may be affected due to Iran-Israel conict

NEW DELHI: Exporters are in a wait-and-watch mode as they expect air freight volume to Europe to rise 1015%, logistics and insurance costs to rise and engineering exports demand to Europe to get impacted following Iran’s attack on Israel. Already, the unfolding crisis in the Red Sea region is leading to shifting of large amount of cargo traffic to air mode such as l e a t h e r g o o d s , w h i c h w e r e

traditionally sent by ships, pushing up air freight volume. This has led to a surge in air cargo cost to Europe to about Rs. 140 per kg from Rs. 35 just three months ago.

“Air freight from India to Europe will rise 10-15%. Flying time will rise because you can’t fly over Iran,” said Ajay Sahai, Director General, FIEO Longer routes have inflated shipping costs by 40-60% besides

causing delays of around 20 days due to re-routing, higher insurance premiums of 15-20%, and potential cargo loss from piracy and attacks. “Exports to the European market will be affected. While 40% engineering exports are for maintenance, 60% exports are for new projects that will get impacted We expect a 30-35% reduction in new project exports,” said a Kolkata-based exporter

Payment mechanism for traders importing pulses from Myanmar simplied: Govt

NEW DELHI: The Government h a s s a i d t h a t t h e p a y m e n t mechanism for traders importing pulses from Myanmar has been eased and simplified. The importers have been asked to utilise Rupee/ Kyat direct payment system using Special Rupee Vostro Account (SRVA) through Punjab National Bank, the Consumer Affairs Ministry said in a statement

India depends on imports of pulses to meet the domestic shortage The country imports tur and urad dals from Myanmar Consumer Affairs Secretary Nidhi Khare discussed with Indian Mission in Yangon issues relating to pulses imports from Myanmar such as import prices in the

wake of revised exchange rates and stocks held by importers in Myanmar, it said.

The Ministry said that the Indian Mission informed the secretary that t h e R u p e e / Ky a t S e t t l e m e n t Mechanism has been operationalised from January 25 this year to simplify trade transactions and to make them more efficient.

The Central Bank of Myanmar released guidelines for payment procedures under SRVA on January 26, 2024.

“Adoption of the mechanism by traders will reduce costs associated with currency conversions and eliminate complexities related to exchange rates by eliminating the

n e e d f o r m u l t i p l e c u r r e n c y c o n v e r s a t i o n s , ” t h e M i n i s t r y statement said.

It said “dissemination about the operationalisation of this mechanism a m o n g t r a d i n g c o m m u n i t i e s especially pulses importers is being separately done wherein they are being requested to utilise Rupee/ Kyat direct payment system using SRVA through Punjab National Bank.”

Meanwhile, the Government has asked importers and other industry players like millers, stockists, retailers etc to honestly declare their stock of pulses, including imported yellow peas, on a weekly basis on portal https://fcainfoweb.nic.in/psp/ from April 15.

Petregaz India commissions Rs. 600 crore LPG Import & Storage terminal at Krishnapatnam

HYDERABAD: Petregaz India, a s u b s i d i a r y o f Pe t r e d e c G r o u p , inaugurated its new LPG Import and Storage Terminal at Krishnapatnam, Andhra Pradesh.

The newly commissioned facility, with an investment of Rs. 600 crore, e n a b l e s P e t r e g a z t o d e l i v e r “cost-effective and dependable solutions” to LPG marketers as well as residential, commercial, industrial and a u t o m o t i v e c u s t o m e r s The Terminal is located within the Adani Krishnapatnam Private Port at Krishnapatnam, 25 km from Nellore “Government-run oil companies can utilise our Terminal’s capacity to improve LPG supplies in the hinterland,

optimising logistics and strengthening India’s LPG landscape This new facility will also benefit private marketers and bottlers by improving access to LPG in an area of the country historically underdeveloped in terms of LPG infrastructure,’‘ Susheel Raina, CEO, of Petregaz India said in a release

“With the launch of the new Terminal, we look forward to working with a host of new customers and p a r t n e r s , l a r g e a n d s m a l l a n d supporting India’s energy transition away from heavier, higher polluting hydrocarbons to cleaner burning, affordable and accessible LPG,’‘ he added

Petredec is an integrated LPG

company that trades, transports and distributes LPG around the world Petredec owns and operates a large and modern fleet of 35 LPG carriers, mainly VLGCs Petredec has a g r o w i n g p r e s e n c e i n t h e L P G downstream sector with three LPG import terminals in the Indian Ocean

Petregaz is the Petredec Group’s downstream subsidiary, specialising in L P G i m p o r t , s t o r a g e a n d large-scale distribution of LPG. In India, Petregaz Krishnapatnam Private Limited is located on the premises of the Adani Krishnapatnam Port Private Limited on the East Coast of India

Automobile exports from India dip 5.5% in FY24

NEW DELHI: Automobile exports from India declined 5.5 per cent in FY24 due to the monetary crisis in various overseas markets, according to the latest data shared by industry body SIAM. Overall exports stood at 45,00,492 units in the last fiscal compared to 47,61,299 units in FY23.

C o m m e n t i n g o n t h e d r o p i n overseas shipments last fiscal, SIAM President Vinod Aggarwal said the

situation remains volatile in various overseas markets.

"Some of the countries, where we are very strong with commercial vehicle and two-wheeler exports, have been facing foreign exchange-related issues," he noted The last fiscal saw a sizeable drop in commercial vehicle, two-wheeler and three-wheeler shipments, although passengervehiclesgrewmarginally

However, in the January-March

quarter this year, we have seen good recovery, especially for two-wheelers, indicating better potential for the rest of the year, he said.

"We are very hopeful that going forward, the situation will improve," Aggarwal added.

In the passenger vehicle segment, exports increased 1 4 per cent to 6,72,105 units in FY24 from 6,62,703 units in FY23.

TODAY’S TIDE 16/04/2024

CJ-III VACANT

CJ-IV VACANT

CJ-V

VESSELS IN PORT & DUE FOR

OJ-I Kruibeke ISS Shpg. 20,000 T. Propane/Butane

Lisbon GAC Shpg. 20,015 T Phos Acid 2024041144

17/04 Lotus 6 Wilhelmsen Sohar 5,534 T Ammonia Stream Marigold Wilhelmsen Dumai 3,000 T. CPO In Bulk 2024041061

OJ-IV Orlando Interocean Taman 15,000 T. CSFO/CDSBO In Bulk 2024031336

Stream Pacific Gold Interocean

DP WORLD MUNDRA

PORTS & AUSTRALIAN PORTS

VESSELS DUE / IN PORT FOR IMPORT DISCHARGE

NSIGT

GTI

12-04-2024 Hazira

MSC Bremen (V-IV415A) 13-04-2024 Mundra

Navios Constellation (V-4115) 15-04-2024 ACMTPL

Sofia Express (V-4311W) 16-04-2024 ACMTPL

Clemens Schulte (V-031E) 11-04-2024 Colombo

Maersk Guatemala (V-414W) 12-04-2024 Salalah

SC Mara (V-24014) 13-04-2024 Jebel Ali

Wan Hai 501 (V-E246) 13-04-2024 Cochin

Tonsberg (V-OYS12E1) 15-04-2024 Port Kelang

Ever Unity (V-E198) 15-04-2024 Port Kelang

Zhong Gu Ji Nan (V-024002E) 10-04-2024 AICT

MSC Melatilde (V-XA414A) 10-04-2024 Colombo

Monaco (V-204W) 10-04-2024 Mundra

Majd (V-24007W) 10-04-2024 MICT

Hyundai Hongkong (V-0115W) 10-04-2024 AICT

Kota Layang (V-094W) 11-04-2024 AICT

Wan Hai 317 (V-E218) 11-04-2024 MICT

Sprinter (V-051W)

´´ ´ We are not responsible for any mistake. ALL RATES ARE PROVISIONAL. The rates in this column are only meant for guidance. NAME

Dedicated Freight Corridor nears completion, scales up ambition

NEW DELHI: Maruti Suzuki’s automotive parts travel the 659 km between New Rewari in Haryana to Palanpur in Gujarat on the truck-on-train service (ToT) provided by the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL), in 12-odd hours — about half the time it takes by road.

Vinsum Axpress, a logistics company, which handles the consignment, shifted to the ToT service in February, using 6-8 wagons. “We are more than willing to expand operations along the dedicated freight corridor Our initial experience in transporting automotive parts has been very good,” Mr. Vinod Sharma, Chairman and MD, Vinsum Axpress was quoted as saying recently

Eighteen-odd years after it was first proposed, over 90 per cent of the 2,843 km of railway corridors dedicated to freight transport — built at a cost of Rs. 1.24-lakh crore — is operational.

DFCCIL, a special purpose vehicle of Indian Railways, operates both arms of the corridor the 1,337-km Eastern Dedicated Freight Corridor (EDFC) from Ludhiana in Punjab to Sonnagar in Bihar, which is fully operational; and the 1,506-km Western Dedicated Freight Corridor (WDFC) f r o m J a w a h a r l a l N e h r u P o r t Te r m i n a l i n Navi Mumbai, Maharashtra, to Dadri in Uttar Pradesh, of which 88 per cent (around 1,300 km) is operational And with nearly 140 km more being commissioned and ready for o p e r a t i o n s b y A p r i l - e n d , p o s t i n s p e c t i o n , over96percentof the networkwillbe completed,makingita significantmilestoneinIndia’sfreightmovementhistory. Dedicated freight corridor looks to ramp-up truck-ontrain services

The first train on the dedicated freight corridor was flagged off by Prime Minister Narendra Modi in December 2020, between New Bhaupur and New Khurja in Uttar Pradesh. More than 1.7 lakh trains have since traversed the dedicated freight corridors.

The 110-km connectivity between JNPT and Vaitarna in Maharashtra, on the WDFC, is expected to be completed within a year

Cost saving

Vinsum’s Sharma says the freight corridor saves the company nearly Rs. 12,000 per truck per trip, which it would otherwise pay as road toll on the Haryana –Ahmedabad route, not to mention the savings on time and fuel.

“My overall cost savings, after switching to the rail network, is nearly 50 per cent,” he says.

The ToT service began in February with transporting milk and other perishables between Gujarat and Uttar Pradesh before adding non-perishables, including automotive parts and cement.

There are plans to add even more items, given the cost savings. For instance, the transport cost per kg per km on roadways is Rs. 4 (on average across categories), while through railway it is Rs 1 36 for foodgrains, Rs 2 47 for iron ore, and Rs 2 13 for petroleum products

DFCCIL is in talks with e-commerce players like Amazon, Flipkart and Meesho for the use of WDFC for their transport needs, especially leveraging the corridor’s proposed connectivity to JNPT port. “Talks are also on with other logistics players who rely on e-commerce orders,” says an official, who declines to be named.

Interestingly, Amazon is already piloting the use of the Rewari–Palanpur section of the dedicated freight corridor for the movement of goods along the Haryana–Gujarat industrial corridor A single coach with 18-tonne capacity is being run daily for the e-commerce major

Optimal operation

Against the dedicated freight corridor’s optimum capacity of 480 trains per day on both arms together, there are 300-320 running currently (200 on EDFC and 100 on WDFC); the average speed is 55-60 km per hr (maximum is 100 kmph), compared with 20 kmph on the Indian Railways freight service.

“The idea is to bring down logistics costs with faster movement of freight trains, as compared to road movement. The corridor is already running at 63-odd per cent capacity and the time saved is around 40 per cent,” a senior DFCCIL official says.

According to an environmental assessment by E&Y, the dedicated freight corridor can cut carbon dioxide emissions by around 457 million tonnes over the next 30 years.

The halts along the corridor are spaced at around 40 km, against 5 km on other tracks, leading to faster movement of goods.

The organisation also uses modified general sleeper (NMGS) wagons — that is, coaches that were previously used in older passenger trains and phased out over the last few years are being modified to run parcel services.

DBGT registered an imperative growth for FY 2023-24

TUTICORIN: Dakshin Bharat Gateway Terminal (DBGT) has ended the FY 2023-24 in a very confident note by handling 602,969 TEU’s with Y-o-Y growth rate of 6%, surpassing the operational capacity of 0.6m TEUs. DBGT has handled 412 vessels to achieve the feat of 602,969 TEU’s despite facing most vulnerable global trade challenges, sectoral challenges, and negative trade balance during FY 2023-24

The Terminal Management expresses satisfaction with overall performance and stated that “DBGT’s achievement is rewarding and reflects the results of our relentless workforce and the commitments assured to the customers.”

Highlights - Efciency Benchmarks during FY 2023-24:

• Number of vessels handled during FY: 412 Vessels.

• Highest Monthly Throughput: 63773/March’2024

• Highest Parcel Size/Vessel: 2480 Units

• Highest Gate Moves/Day: 1697 Units

• Highest GCR: 48 Moves/Crane.

• Average Dwell Time (Days):

• Imports: 1.43 Days

• Exports: 2.69 Days

Others Remarkable Achievements during FY 2023-24:

• Certified ISO 14001:2015 by BUREAU VERITAS.

• Handled MV. MSC SAMANTHA with highest parcel size of 2480 units with total port stay of 30 hours.

• DBGT received the highest accolade during “ G l o b a l M a r i t i m e I n d i a S u m m i t – 2 0 2 3 ” a s “Maritime Excellence in Global ESG initiatives”.

• 63 x 40’ of OOG shipments been safely handled in one single vessel voyage with a remarkable outturn @ 12 minutes / unit.

• Introduction of China-India Service 7 (CI7) that directly connects Ports in Malaysia, Vietnam, Thailand, China, and Singapore.

• Introduction of Pan-India Coastal Service I (PIC-1), a direct service to Mundra.

• Achieved best productivity of 48 moves/crane ( G C R ) o n M V S TA R B R I G H T b e r t h e d o n 09 11 2023

• Continuous process improvements at various levels across Operations / Safety / Engineering / IT Depts.

• Various industrial participations across hinterlands.

• Commendable customer support during natural calamity situations.

The Management conveyed sincere gratitude to everyone working relentlessly and professionally to keep the Terminal at par The Management further lauded VOC Port Authority, Tuticorin Trade Fraternity and Export-Import Industry for being encouraging and reliable to achieve this feat.