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Guiding Spirit to Shipping Industry

In association with R L Institute of Nautical Sciences, Madurai, Tamil Nadu.

RNI No. TNENG/2012/41759

Wednesday, January 8, 2014

Voyage 2 Wave 48

Trade with East & South-East Asian countries

West Bengal emerging as logical destination Due to various reasons rising wages for example many companies in Japan, Taiwan, South Korea, Malaysia, Singapore and even China are now ready to migrate

Dr. E. M. S. Natchiappan, Union Minister of State for Commerce and Industry, at the Industry Roundtable organised by the Confederation of Indian Industry (CII) Eastern Region in Kolkata on Dec. 26, 2013. MUMBAI

Sagar Sandesh News Bureau


Krishnapatnam Port creates best crane productivity record Dabhol-Bengaluru gas corridor project wins prestigious global laurels


ClassNK to survey ships in Finland


ith the economic “power centre” steadily shifting from Europe and the US to Asia Pacific, it’s time for East Indian States, especially

5 6

8&9 11

Fresh norms on warehousing tenure & Letter of Undertaking

Baltic Exchange all set to amend capesize index with new routes


It’s now time for the State to grab this opportunity West Bengal, to forge deeper business ties with East and South East Asian Countries,

said Dr. E. M. S. Natchiappan, Union Minister of State for Commerce and Industry, at the Industry Roundtable organised by the Confederation of Indian Industry (CII) Eastern Region in Kolkata on Dec. 26, 2013. Due to various reasons – rising wages for example – many companies in Japan, Taiwan, South Korea, Malaysia, Singapore and even China are now ready to migrate, he added. “In my view, West Bengal is the logical destination not only for these countries, but also for Myanmar, Laos and Cambodia. It’s now time for the State to grab this opportunity. There is a huge scope in sectors such as health, pharma and education in these countries,” he stated. Page 2


Sagar Sandesh News Bureau


r. K. Ashok Vardhan Shetty, a retired Indian Administrative Service Officer from Tamil Nadu cadre, assumed charge as the new Vice Chancellor of Indian Maritime University (IMU) on Jan. 2. According to a top Shipping Ministry official, Mr. Shetty’s appointment has been approved by the President of India, the Visitor of the Ministry of Shippingrun Maritime University, for a period of five years. His appointment culminates the lengthy process which began in August 2013 to find a new Vice Chancellor to the institution after the then V-C, Prof. Raghuram, a well-known academic- ian from the Indian Institute of ManagementAhmedabad, abruptly resigned over differences with the Union Shipping Ministry in March 2013. Capt. Mukesh Baveja, Head of Indian National Database of Seafarers (INDoS) Cell, Mumbai, & Director (incharge) of Kandla Port Campus, succeeded Prof. Raghuram to the top post. Before taking voluntary retirement from service in 2011, Mr. Shetty worked in various capacities in Tamil Nadu Government and had held a good reputation among his colleagues. However, the retired Indian Administrative Service Officer has a big task on his hand to bring back the lost glory of IMU.

Vessel Sharing Agreements

Govt. exempts liner shipping industry from competition MUMBAI

Sagar Sandesh News Bureau


he Central Government has exempted the Vessel Sharing Agreements (VSAs) of liner shipping industry from the provisions of Section 3 of the Competition Act 2002, for a period of one year from the date of publication of this notification in the official gazette. The gazette notification was issued in respect of carriers of all nationalities operating ships of any Page 5 nationality from any Indian port.


Wednesday, January 8, 2014

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Guiding Spirit to Shipping Industry

In association with R L Institute of Nautical Sciences, Madurai, Tamil Nadu.

Mumbai Office Unit No. 218, II Floor, Anjani Complex, Pareira Hill Road, Off. Andheri Kurla Road, Andheri (E), Mumbai - 400 099. Ph : 022 2823 7654 / 4023 3414 Chennai Office 6, II Floor, Nungambakkam First Lane, Chennai - 600 034. Ph : 0 720 008 4866 Admin. Office TVR Nagar, Aruppukottai Road, Madurai - 625 022. Ph : 0452 301 1050 / 391 8600 EDITOR & PUBLISHER PRINTER EXECUTIVE EDITOR CONSULTING EDITOR

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ADVISORY EDITORIAL BOARD Mr Aswin K Atre, Consultant, Shipping and Seafaring Capt. S S Jairam, Master Mariner, Director, Searland Management Services (P) Ltd. Dr B K Saxena, M.Sc., Ph.D., President, Institute of Marine Engineers (India). Mr G K Ramakrishnan, C.Eng., M.I.Mar.E., Sr. HSE Consultant, Kuwait Oil Company, Kuwait. Capt. Naveen Passey, Managing Director, Wallem Shipmanagement (India) Pvt Ltd. SAGAR SANDESH - Maritime Tabloid English Weekly Newspaper Printed by Dr R Krishnamurthy. Published by Dr R Lakshmipathy on behalf of (Owner) Professional Publications (P) Ltd, “Sriram” , 27, Sathyasai Nagar, Madurai - 625 003. Printed at Standard Press, TVR House, Dinamalar Avenue, Madurai - 625 016. Published at “Lakshmi”, 21, Sathyasai Nagar, Madurai - 625 003. RNI No. TNENG/2012/41759, Postal Registration No. MA/140/2012-2014. Licence No. TN/WPP-115/SR/2012-2014

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From Page 1 Dr. Natchiappan further stated: “Now that the West Bengal Government has decided to create MSME Clusters, things will be a lot better for the sector. We are always ready to help the State. The upcoming Amritsar-Kolkata Industrial Corridor will bring in a sea change in the industrial scenario.” Hence he called for a change of the “mindset that harbours negative perceptions and publicity. Earlier, Mr. Sumit Mazumder, Vice President, CII, underscored the need for reforms and governance and a strong focus on industry and manufacturing that will enable to generate more employment. He noted that the Indian economy is showing some positive signs of a turnaround rightly indicated by the increase in the industrial output compared to that of the previous year. India, he observed, has made major strides in its diversification of export markets, as its dependence on the EU and the US has reduced to a large extent.

“Europe currently occupies 19.5% share in India’s exports as compared to 26% in 200-01. Similarly, the share of the US has shrunk from 23% in 2000-01 to 13% in 2012-13. In contrast, the share of developing markets of Latin America, Africa and ASEAN have witnessed a significant increase. This has helped India weather the global crisis emanating from Europe and America,” the CII Vice President pointed out. He congratulated the Ministry of Commerce and Industry on the e-BRC project which has recently won the 2013 eASIA Award under Trade Facilitation category as announced by Asia Pacific Council for Trade Facilitation and Electronic Business (AFACT) in Vietnam on Nov. 29, 2013. “This reassures us that our policies are heading towards the right direction,” he felt. According to Mr. Mazumder, the States in the Eastern Region enjoy natural advantages for setting up NIMZs. “Some states

have already embarked on a clear policy of industrial parks in sectors such as apparel, leather, IT, chemicals and others. The State Government moving on this game-changing policy can lift the economic potential of the Eastern Region as a whole,” he opined. Mr. Sudhir Deoras, Chairman, CII Eastern Region, listed the initiatives CII Eastern Region has been taking to spur industrialisation in the region, including West Bengal. Mr. Sanjay Budhia, Chairman, CII National Committee on Exports and Imports and Managing Director, Patton International Limited, said that reduction of high transaction costs is crucial to achieving export competitiv eness. “Currently, transaction costs add up to 1012% extra, and taking this into account, Second Task Force on Transaction Cost in Exports has been constituted by the Ministry of Commerce and Industry, which is reviewing the current situation and will come out with a comprehensive report”, he said.

Kandla Port ignores TAMP directive

Levying labour charge on mechanised handling of cargo irks traders notional booking mandatory in the case of cargo which is handled he trade at Kandla Port is not with machines without any use of happy at the Port Trust labour force. And these charges continuing to levy its labour are recovered from the stevedores charges on mechanised handling who handle the cargo mid-sea of cargo despite direction against with the help of barges where no it by the Tariff Authority for regular port jetties are even used,’ Major Ports (TAMP) and in a he told Sagar Sandesh. letter to the Port Chairman the He expressed concern that as traders have demanded its a result their total logistic cost has immediate stoppage at least in gone up many a fold and they are coastal and mid-sea handling of not competitive with neighbouring cargo by barges. ports which are now usurping Mr. Bhagwan Mansukhani, Kandla cargo.“Kandla port has one of the oldest stevedores and lost 30 to 40% cargo on this accoowner of Rishi Shipping, has unt and the port, which used to be stated that the TAMP, while fixing congested earlier, finds its dry the labour charges for Kandla for cargo jetties empty now,” he added. the year 2013-15, had restrained He opined that the situation the Port Trust from making would drastically change with notional booking of labour gangs handling of new coastal cargo by mandatory for mechanised barges if DG Shipping allowed handlilng of cargo at the port and the use of modified sea Type-I suggested to the Port Trust to barges under the River Sea Act. share losses on this account with He noted that the trade has already written to the Shipping stevedores for idle labour force. ‘We regret that ignoring these Ministry in this regard. He clear instructions from the observed that coal and clinkers country’s highest tariff fixing are the main cargo which could be authority, the Port Trust has made moved from the border district’s BHUJ


Jakhau Port and ports of Maharashtra. He added that cape size vessels, which have started coming at Kandla, would discharge imported coal meant for Jakhau at the anchorage port and transport it by sea by barges to Jakhau, about 110 nautical miles from Kandla. Jakhau area has cement plants of many a big cement company and the barges in return would bring cement or clinkers at Kandla. The goods stored at Kandla would be exported by cape size vessels the same way mid-sea. Mr. Mansukhani pointed out that the trade at Kandla wants the Port Trust to exempt new coastal cargo from the labour charges till the Port Trust decided in the case of regular cargo handled at the port jetties or mid-sea by barges. “The move would be in the national interest and even in the interest of the Port Trust which is short of import cargo now. This will also generate new revenue for the Port Trust and work for stevedores,” he concluded.

- D. V. Maheshwari

Wednesday, January 8, 2014



Wednesday, January 8, 2014


“He who loves practice without theory is like the sailor who boards ship without a rudder and compass and never knows where he may cast.” - Leonardo da Vinci

Shipping overcapacity not likely to ease this year too NEW DELHI

Sagar Sandesh News Service


he latest report by research and strategic planning of DVB Group has expressed concern that the overcapacity problem of the global shipping market is expected to persist in 2014, limiting substantial recovery for the 3 main shipping segments of containers, bulkers and tankers. In container shipping, trade demand is projected to improve in late 2014 on the back of a strengthening global economy with the strongest growth coming from regional trades. However, the large part of the order book due for deliveries in 2014 is anticipated to keep rates under check, while pressure from supply side in 2015 is not likely to ease even after factoring in postponement, the report stated. “Meanwhile capacity discipline measures such as cascading, void sailings and slow steaming have limitations, which implies fewer options for liners to maintain the rates at profitable levels.

A large part of the order book due for deliveries in 2014 is anticipated to keep rates under check, while pressure from supply side in 2015 is not likely to ease even after postponement in newbuildings Recovery in time-charter rates are expected to be shortlived and gradual,” it added. The current container carrier fleet stands at 5,135 vessels aggregating 17.1m teu, according to data from Clarksons. The global box fleet is considered young with an average age of 11 years and approximately 70% of the fleet capacity is below 10 years. The total number of deliveries estimated for the whole of 2013 was 251 vessels with a combined capacity of 1.57m teu, the data stated pointing to stiff challenges for operators to keep the capacity under check. The dry bulk shipping segment is also predicted to witness strong demand with annual growth between 6-7% over the next 2 to 3 years. “Unfortunately for the dry

bulk markets, most of the agony is self-inflicted. During the boom years of 2007 and 2008, a large number of newbuilding orders were placed, mostly speculative, which were much higher than what the projected demand could support during this decade. As a result, fleet oversupply chronically overshadowed any demand growth and has kept the market in dire states,” the report remarked. Currently, the dry bulk fleet stands at 9, 725 vessels of 678.2 m dwt, according to data from IHS Global. The orderbook equates to about 16.6% of the current fleet with 1, 365 vessels of 105.3m dwt scheduled to be delivered until 2017. The crude tanker market, which did not have a good year both in 2012 and 2013, is expected to continue facing

pressure from fleet oversupply next year, though asset value and earnings might improve slightly going into 2015. Fleet oversupply will continue to put pressure on fleet employment even with the expected increase in demand. Scrapping on the other hand is expected to continue with vessels as young as 15 years old, the report claimed. “Despite postponements and cancellations, the imbalance between demand and supply for crude tanker sector will continue for the next two years,” it added. Meanwhile, the smaller product tanker segment is seeing “light on the horizon” as year 2013 was relatively better compared to 2012, especially for LR1 and LR2 product tankers, but the outlook is cautiously optimistic. Earnings and asset values are predicted to stabilise in the next 12 months, though a substantial increase is not likely to happen immediately. “Fleet oversupply is expected to maintain pressure on utilization rates despite the consistent increase in demand and market fundamental improvements. Thus, a further decline in utilization rate should not be ruled out,” the report concluded.

New structural rules for oil tankers & bulk carriers MUMBAI

Sagar Sandesh News Bureau


t its 68th Council session meeting on Dec. 18 and 19 in London, International Association of Classification Societies (IACS) unanimously adopted new harmonised Common Structural Rules (CSR) for oil tankers and bulk carriers. The new rules will apply to all oil tankers over 150 m and bulk carriers over 90 m in length contracted for construction on or after July 1, 2015. The CSR will The new rules will apply to all oil tankers be presented to IMO which over 150 m and bulk the will verify their carriers over 90 m in compliance length contracted for with the IMO GBS that will construction on or be compulsory

after July 1, 2015

Mr. Cazzulo

for new building contracts signed on or after July 1, 2016. Mr. Cazzulo, Chairman of the IACS Council, said: "This is a historic achievement and the culmination of many years of hard work by technical specialists from all member societies and intensive & continuing consultation with industry and authorities at every stage. Together we have invested a huge amount of time & money to develop these rules". Among the main benefits of the new CSR, ship designers will be able to work to one common standard applicable to both ship types; more comprehensive structural analyses including FEM calculations covering fore and aft parts; new rule checks including new buckling, fatigue and ultimate strength criteria; all this will enhance safety and reliability of the structure. "These harmonised rules take into account feedback from

Four modern car carriers joining K Line fleet NEW DELHI

Sagar Sandesh News Service


awasaki Kisen Kaisha (K Line) has ordered four new car carrier vessels at Shin Kurushima Dockyard and Japan Marine United Corporation. The four newbuildings add on to K Line's recent identical four-vessel shipbuilding contracts with the same Japanese shipyards. According to K Line sources, each of the shipyards will build four new K Line car carriers, with delivery starting in 2015 and continuing through the first quarter of 2017. K Line said the next generation car carriers will have cargo capacity of about 7, 500 units, compared with about 6, 200 units on the existing vessels. The new vessels will also boast wider beam of 3738 metres compared to about 32.2 metres for the earlier version. By adding this series of eight new ships with better stability of the vessel and better fuel efficiency, we continue to deliver value added efficiency and capability of handling an even wider variety of cargo mix, K Line has stated.

A historic achievement experience of the Common and culmination of Structural many years of hard Rules, work by technical introduced in specialists and 2006, and intensive & continuing very extensive input from the consultation industry," stated a Media release. At the same meeting, the Council decided to take a proac- tive approach to structural safety of containerships, following a comprehensive review of existing technical requirements for hull structural design, construction & survey. IACS decided to expand the scope of current IACS unified requirements for post-Panamax containerships. These requirements will cover 2 important areas: scope of hull girder strength assessment and specific loading cases that will provide more comprehensive safety margins. "The new IACS unified requirements should be considered as a proactive measure to ensure an acceptable level of consistency amongst all IACS Societies and will ensure that Class & Industry follow a state-of-the-art methodology for structural analysis of post-Panamax containerships."

SHIPPING ClassNK to survey ships in Finland

A sailing ship is no democracy; you don't caucus a crew as to where you'll go anymore than you inquire when they'd like to shorten sail. - Sterling Hayden

1st cruise vessel calls at Lanka’s Hambanthota Port CHENNAI Sagar Sandesh News Bureau

T MUMBAI Sagar Sandesh News Bureau

lassification society ClassNK has announced that it has received authorisation from the Finnish Transport Safety Agency to carry out surveys for Finnish flagged vessels. According to ClassNK, the agreement will allow the classification society to perform surveys for Solas, Marpol, Load Line and other international conventions, as well as perform audits and issue certificates on behalf of the Finnish Government. “With the opening of our newest office in Helsinki on Dec. 1, 2013 and the signing of this new authorisation agreement, ClassNK is now able to provide a full classification service to all owners operating vessels in Finland, including those with domestically flagged vessels,” said Mr. Noboru Ueda, Chairman and President of ClassNK. He added that ClassNK has been committed to improving its operations in Northern Europe and the Baltic region over the past several years. “In addition to new and expanded offices in St. Petersburg, Klaipeda, Hamburg and now Helsinki, our ability to work on behalf of an expanded range of regional governments mean that we can provide an even better service to our clients throughout the region,” he added. With the authorisation from Finland, ClassNK is now authorised to perform surveys and audits on behalf of 16 Flag Administrations in the EU, and a total of 110 Flag Administrations around the world.



Wednesday, January 8, 2014

he luxury cruise liner MV Voyager called at Magam Ruhunupura Mahinda Rajapaksa Port (MRMRP) in Hambanthota recently creating history as the first cruise vessel to call at the newly developed port in the Island Nation. According to a Media statement from Sri Lanka Ports Authority (SLPA), the vessel

arrived with 365 passengers and 224 crew and was under the Command of Capt. Neil Broomhall. At Hambanthota, passengers visited the port and Hambanthota city during her 11hour stay at the port and their tour was operated by M/S Raffles Leisure (PVT) Ltd. The cruise liner was en route from Dubai, Oman, India and arrived Sri Lanka where she first called the passenger terminal of Sri Lanka Ports Authority

(SLPA) in Colombo for two overnights from where sailed to Hambanthota and finally headed towards the East Coast of India. On her arrival at the MRMRP in Hambanthota, the Captain and the Chief Purser were welcomed by Capt. P.S. Dias, Deputy Harbour Master at MRMRP of SLPA; Mr. M. M. M. C. Bandara, Project Manager (Ops/Main/ Admin) at MRMRP of SLPA and Mr. Udara Cooray - Operations Executive and Mr. Robin

Govt. exempts liner... From Page 1

During the said period of one year, the MCA decision comes in the wake of P3 Director General of Shipping, Ministry of alliance - a coalition of globally major Shipping, Government of India, shall container lines Maersk Line, MSC and monitor such agreements and for CMA CGM - to form a mammoth which, the person(s) vessel sharing alliance in the MCA responsible for operations three major East-West trades. decision comes in of such ships in India P3 intends to share vessels in the Asia-Europe, shall file copies of the wake of P3 alliance and Transaexisting VSAs and/or a coalition of globally major Transpacific tlantic trades from 2Q14. VSAs to be entered into A total of 255 ships will with applicability during container lines Maersk Line, be operated in 29 loops the said period along MSC and CMA CGM - to form with a combined capacity with other relevant a mammoth vessel sharing of 2.6 million teu. documents within 30 Drewry Maritime days of the publication alliance in the 3 major Research in a note commenof this notification or East-West trades ted on the ramifications of the within 10 days of signing of liner industry consolidation as such agreement(s), whichever enormous to port industry. Each of the is later, with the Director General of Shipping, said the gazette three carrier operators already operates more notification issued by the Ministry ULCVs than anyone else, so the catering for of Corporate Affairs (MCA) on Dec. 11, their combined cargo handling requirements will be on a scale never seen before. 2013. Section 3 of the Competition Act 2002 Not surprisingly, views are divergent deals with anti-competitive agreement whether the three will consolidate their port envisaging no enterprise or association of calls, therefore, while economies of scales are enterprises or person or association of persons there for the taking, it will result in tampering shall enter into any agreement in respect of production, supply, distribution, storage, with the well-established berthing windows of acquisition or control of goods or provision of each schedule, and the feeder/intermodal services, which causes or is likely to cause an connections of each carrier, which will, appreciable adverse effect on competition presumably remain separate, added Drewry. within India. All the 3 entities have family connections

Dudely - Operations Executive of Ceyline Shipping Ltd. MV Voyager is equipped with entertainment facilities such as a night club, a swimming pool, variation of restaurants, a gymnasium and bars. All Leisure Group acts as the cruise ship operators whilst Ceyline Shipping Ltd serves as the local agents. Ceyline Shipping Ltd., as the agents for MV Voyager, stated that the agents are pleased to inform that their principals have scheduled calls at MRMRP in Hambanthota on a long term basis due to the developments in the Sri Lankan Ports Sector headed by SLPA and Tourism Industry of Sri Lanka.

to terminal operating companies, so choosing the best port and terminal will come down to the best for each job. Maersk is connected to APM Terminals, MSC to Terminal Investments Limited (TIL) and CMA CGM to Terminal Link and each has particular port preferences. For example, APM Terminals has a presence in Bremerhaven, where Maersk has more than 10 port calls a week, but not Hamburg, and MSC prefers Antwerp over Rotterdam, pointed out the maritime research agency. The other major alliance comprises Far East-Europe alliance pooling six carriers together such as NYK, Hapag-Lloyd and OOCL, APL, HMM, MOL; under the new grouping, the G6 alliance was announced in December 2011. G6 services encompass more than 90 ships covering more than 40 ports in Asia, Europe and Mediterranean including Bohai and Baltic loops. All the 3 entities The Vessel have family Sharing connections to Agreement like terminal operating P3 network is under radar of companies, so US Federal choosing the best Maritime port and terminal Commission will come down to (FMC) that had sought additionthe best for each job al information about the agreement on Dec. 5, 2013. FMC is the federal agency responsible for regulation of national and international ocean transportation for the benefit of exporters, importers and the American consumer. Media reports maintain that these grand alliances are of little significance to India.


Wednesday, January 8, 2014

IN & AROUND PORTS MANSA greets Krishnapatnam Port new JNPT Chief creates best crane Manager (Traffic)

“If the highest aim of a captain were to preserve his ship, he would keep it in port forever” - St. Thomas Aquinas

productivity record CHENNAI Sagar Sandesh News Bureau


MANSA office-bearers welcoming the newly appointed Chief Manager (Traffic), JNPT, Mr. Asish Kumar Bose (on the left), on Dec. 23 with a bouquet. CHENNAI Sagar Sandesh News Bureau


ANSA has welcomed Mr. Asish Kumar Bose, on his appointment as Chief Manager (Traffic), JNPT. After introduction at a meeting on Dec. 23, 2013, MANSA assured its full support and assistance for improving operations and productivity while extending full co-operation to the port officials. Mr. Bose appreciated the gesture, reciprocated the sentiments and expressed that he would look forward to mutual understanding and congenial working for betterment.

rishnapatnam Port Container Terminal (KPCT), a world-class container terminal operated by Krishnapatnam Port, has set a new benchmark in operational efficiency. On Dec. 24, 2013 during MSC’s weekly service to Colombo from KPCT, its vessel MV MSC SIERRRA-II became part of a historic moment when 641 TEUs were exchanged with the vessel, with a record hourly crane productivity of 48.6 containers and a berth productivity of 96.64 containers per hour. According to port sources, two super post-panamax quay cranes were used by the terminal to achieve its most efficient crane productivity record on that day. “This has been Krishnapatnam Port’s best crane performance at KPCT and probably one of the highest achieved by any container terminal in India,” a statement from the port authority revealed. Main liners such as Maersk, MSC and three feeder services - BTL, Xpress Feeder and Far Shipping - regularly call at KPCT because of faster turnaround time with average berthing time for the vessels being

90 minutes and trailer turnaround time being 50 minutes from entry to exit of the port unlike other ports in the country. The efficiency in container handling in Krishnapatnam is evident from the volumes that are increasing month-onmonth at the terminal. In FY 2012-13, KPCT handled 13, 547 TEU where as from April to December 2013 (three quarters of FY 2013 -14), KPCT has handled 42, 553 TEU. With sustained growth on the container handling front, the port is looking at exponential growth in the future. Vast area, state-of-the-art equipment, deepest draft in the county, efficient and transparent operations and unparallel road and rail connectivity are transforming KPCT into the container terminal of future on the East Coast of India. The facility is well connected by a 24km double-line rail (with an on-dock rail adjacent to container yard) and 4-lane roads to the national grid, making for swift access and evacuation of containers and cargo. Support infrastructure like covered warehouse facility to an extent of 200, 000 sq. ft is available towards stuffing and destuffing of containers at KPCT. Separate fumigation zone has been developed inside

Dhamra Port work disrupted as labourers go on agitation PARADIP Sagar Sandesh News Service


ay to day work in Odisha’s Dhamra Port was disrupted for about 12 hours on Dec.16 following strike by contractual workers and labourers. The striking workers resorted to agitation demanding fulfillment of their charter of pending demands. Prominent among the demands included bonus facility to all the employees, permanent job status to those who are working for 240 days or more every year and 8-hour daily work schedule. Mr. Bijoy Prsatap Jena, a representative of workers’ union, said: “The private port is surging ahead in terms of productivity due to hard work by ad hoc workers and

labourers. But they are being underpaid and are deprived of job security. The port authorities had earlier committed to take care of workers’ interest, but they have failed to keep up the commitment”. Chandballi Tehsildar Chiita Ranjan Sahu stated: “Bhadrak district administration is aware of workers’ problems. The District Collector would hold talks with Dhamra Port authorities for the settlement of labour dispute”. Private player Dhamra Port Company Limited (DPCL), a joint venture of L & T and Tata steels limited, is being widely regarded as eastern India’s deepest port. The port has built two fully mechanized berths

the terminal. Special facilities towards handling of hazardous and non-hazardous cargo also have been provided inside KPCT. In addition to these facilities, the terminal has a dedicated Customs facility with functional EDI (Electronic Data Interface) to process all the documents to enable faster clearance of consignments. The current cargo profile of KPCT includes barites, cement, chilly, coffee, cotton, equipment and related spares, feldspar, food products, granite, human hair, maize, mango pulp, mica, potash feldspar, packaging materials, polypropylene granules, pulses, PVC products, quartz, rice, sheet material, shredded scrap, sugar, tobacco, turmeric and waste paper. Besides main line operators, the terminal has also received good support from NVOCCs. With strategic tie-up with MLOs and feeders, freight forwarders, CHAs (customs house agents), LSPs (logistic service providers), CTOs (container train operators) and ICDs (inland container depots), KPCT is proving to be the preferred container handling destination by the world trade on the East Coast of India, say regional EXIM players.

The port is being widely regarded as eastern India’s deepest port In the second expansion phase the port has a master plan to build 11 more berths which will increase the capacity to nearly 100 million tonnes per annum with a capacity of nearly 20 million tonnes per annum. In the second expansion phase the port has a master plan to build 11 more berths which will increase port capacity to nearly 100 million tonnes per annum. A sum of Rs. 50-crore budget has been earmarked for Corporate Social Responsibility and peripheral development programme during the second phase expansion programme, port officials told this reporter.


Wednesday, January 8, 2014


“No wind serves him who addresses his voyage to no certain port.” - Michel de Montaigne

2013 a new record freight year for Port of Antwerp Sagar Sandesh News Service


Containers, break bulk

case of dry bulk there has been a significant decrease in the volume of coal compared to last year. This development is due to the closure of a number of blast furnaces in the hinterland, which will continue to affect the figures for dry bulk.”

Liquid bulk The volume of liquid bulk rose over the past 12 months by 31.9% to 59, 709, 998 tonnes. The investment policy of various large industrial players is now paying off. The volume handled by Sea-Tank Terminal helped to boost the figures, and investments by among others Antwerp Terminal Processing Company and Independent Belgian Refinery (the former BRC) also

Swan Energy to build LNG terminal at Pipavav AHMEDABAD Sagar Sandesh News Service


wan Energy Ltd (SEL), a Mumbai based green energy player, has announced that it has received environment clearance for its LNG terminal near Pipavav, Gujarat. In a statement filed to the Bombay Stock Exchange (BSE), the company informed that it has received environment and CRZ clearances from the Union Ministry of Environment and Forests (MoEF) for its Floating Storage and Re-gassification Unit (FSRU)based LNG import terminal project near Pipavav, Gujarat, on Built Own Operate Transfer (BOOT) basis. SEL is in the process of developing the first FSRU

The main driving force behind the growth in volume was liquid bulk,with the container volume being slightly down as a result of the continuing recession ports that do have one or more coal-fired power stations and so are able to achieve critical mass.


he Port of Antwerp is understood to have handled a total freight volume of 190.6 million tonnes in 2013 as a whole. This represents an increase of 3.5% compared with 2012 when the volume came to 184.1 million tonnes, making 2013 a new record year for Antwerp. The previous record dates from 2008, the last year before the global financial crisis. According to Port of Antwerp sources, the main driving force behind the growth in volume was liquid bulk, with the container volume being slightly down as a result of the continuing recession. “Liquid bulk has given our port a particularly strong boost,” declared Port Authority CEO Eddy Bruyninckx. “These freight volume results have been achieved thanks to investments by a number of large players over the past few years. They are also the best proof that conversion of former break bulk areas into tank storage facilities has paid off for our port. When it comes to containers the stagnating economy continues to weigh on the figures, but this situation applies practically throughout the Hamburg-Le Havre range. In the

Freight volume up by 3.5% to 190.6 million tonnes

project for imports of LNG in India. The FSRU project is being implemented at the existing Pipavav Port in Gujarat. SEL, a listed company on Bombay Stock Exchange, is focused on energy sector for new investments with core business value of 'Sustainable Development'. The company shares ended negative on BSE at Rs. 141.65, down by close to 3.5 per cent from previous close. State ports regulator Gujarat Maritime Board (GMB) has selected the company as a developer for Greenfield LNG Port Terminal with FSRU at Jafrabad, Gujarat, on BOOT basis. For the September quarter, Swan Energy posted a net profit of Rs. 4 crores with net sales of Rs. 81.73 crores.

helped to drive up the liquid bulk volumes. As the largest integrated petrochemical cluster in Europe the Port of Antwerp has a whole series of advantages when it comes to developing industrial activities into profitable investments. The multifunctional policy pursued by the port is a decisive argument for all sorts of investments.

Dry bulk The volume of dry bulk fell by 26.8% to 13, 984, 279 tonnes. The contraction was due mainly to coal imports, in a mirror image of the situation in the Dutch ports. The failure to build a coal-fired power station in Antwerp has acted to the disadvantage of the port, as trade has shifted to other

The container volume has dropped slightly, both in tonnes and in the number of containers. In terms of twenty-foot equivalent units the number of containers handled was down slightly (by 0.7%) to 8, 572, 345 TEU. In terms of tonnage the drop was 1.7%, with the total volume expected to be 102.2 million tonnes after 12 months. On the other hand the prospects are positive thanks to the recent announcement of the P3 Network (an alliance of the three largest container shipping companies in the world: Maersk, MSC and CMA CGM), with Antwerp winning market share in the Far East and consolidating its position as the market leader on other trade routes. In the meantime the decision by the Swiss shipping company MSC to concentrate its activities in Antwerp also offers prospects for significant growth in container handling. The ro/ro volume for its part has declined by 5.0% to 4, 557, 389 tonnes, although the number of cars actually rose by 5.1% to 1, 302, 885. Conventional break bulk also contracted during the

course of the year, by 6.8%, with the final figure expected to be 10, 150, 631 tonnes. However, the significance of conventional break bulk for the port cannot be simply reduced to the number of tonnes handled, as many break bulk players in the central and southern areas of the port have been investing in handling facilities, resulting in significant added value above and beyond the classic break bulk activities.

14, 207 ships During the last 12 months the number of seagoing ships calling at the Port of Antwerp was 14, 207, a decrease of 2.4% compared with the previous year. On the other hand the tonnage rose by 3.8% to 330, 459, 546 GT. The number of ULCS (Ultra-Large Container Ships of 10, 000 TEU or more) is expected to be 197 last year, exactly 30 more than the previous year. The growth has been particularly significant in the category of 13, 000+ TEU vessels, with no fewer than 31 of these giant container carriers calling at the port. Moreover the test trip by the Mary Maersk in mid-October demonstrated that Antwerp is perfectly accessible to vessels in the 18, 000+TEU category.

Adani begins liquid cargo operation at Hazira terminal AHMEDABAD Sagar Sandesh News Service


dani Ports & Special Economic Zone Ltd (APSEZ), India’s largest port developer and part of Adani Group, a global integrated player, on Dec. 30 said its subsidiary Adani Hazira Port Private Ltd has begun handling liquid bulk cargo and is keen to attract customers from the growing chemical industry of south Gujarat. The Adani Hazira Port, which operates all non-LNG facilities in Hazira Port, successfully handled its first liquid bulk vessel M.T. JBU OPAL. The vessel discharged 4, 699 metric tonnes of Vinyl Acetate Monomer (VAM) at a record discharge rate of 350 metric tonnes per hour. The consignment belonged to Ms. Visen Industries and Ms. Nikhil Adhesives Ltd. “We are proud to dedicate this

facility to the nation and particularly to south Gujarat chemical trade fraternity. Hazira is well positioned to cater to the needs of the liquid bulk market in South Gujarat,” stated Mr. Karan Adani, Executive Director, APSEZ. “The Hazira Liquid Terminal is a state-of-the-art facility and will offer huge benefits to the customers in terms of cost and quality service to the customers in south Gujarat like Vapi, Daman, Silvassa, Ankleshwar and Baroda amongst others and also to north India based customers, " he added. Adani Hazira Port Pvt. Ltd (AHPPL) offering to the South Gujarat Chemical trade includes 100, 000 Kl of storage capacity consisting of 50 tanks with each tank capacity ranging from 500 – 3000 Kl. The second phase of construction for next 1, 00, 000 Kl is already in progress including

separate base oil terminal of 37, 000 Kl. AHPPL has presently 5 dock pipelines for simultaneous discharge of chemicals and petroleum products which will ensure quick turnaround of the liquid tankers. These dock lines are connected to the 3 berths giving flexibility to berth liquid vessel on any vacant berth with each berth having 12 inch diametre x 4 carbon steel lines and 10 inch diametre x 1 stainless steel – 316L. APSEZ also operates ports in Mundra and Dahej in Gujarat and Visakhapatnam in Andhra Pradesh and is setting up coal handling facilities in Mormugao in Goa and at Kandla in Gujarat. Vessel owner ODFJELL Tanker, Vessel Agent Intra trade, CHAs M/S Liladhar Pasoo and M/S. D. R. Singh, Surveyor J B Boda & Co, contributed to the successful handling of the first liquid consignment at Hazira Port.


Wednesday, January 8, 2014

Chairman & Managing Director B. C. Tripathi


he launching of Rs. 4, 500-crore inter-state gas corridor project, ‘Dabhol-Bengaluru Pipeline’ connecting LNG re-gas terminal of Dabhol, Maharashtra, with Southern states quite not only marked a major milestone in development of gas corridor infrastructure of the country, but also went on to bag the prestigious Platts Global Energy Award in US on Dec. 20, 2013 for being remarkably challenging projectcompleted in record time in recent times. The gas corridor project commissioned by Public Sector Undertaking Gas Authority of India Limited (GAIL) from India competed with more than 200 nominations from 25 countries including Brazil, India, Puerto Rico, Saudi Arabia, South Africa, Spain, Russia, Switzerland, Argentina, China, Pakistan, Bangladesh, Thailand, United Kingdom and the United States to walk away with the award. Platts had empanelled OPEC Energy Ministers, national regulators, former heads of major energy companies and leading academics and legislators among its judges - past and present - and each category had key criteria against which the judges did their evaluation on each nomination. Finalists were chosen based on their performance for each category’s criteria within the designated time frame.

Dabhol-Bengal gas corridor pro prestigious glo

The 1, 000-km pipeline project had been awarded as premier project in largest construction category at Platts Global Energy Awards 2013 ceremony held in New York City. Mr. Jayanta Sinha, President-GAIL Global (USA) inc. Houston, a wholly owned subsidiary of GAIL (India)Limited, received the award on behalf of the company. GAIL got the award as the gas corridor project happens to be one of the most technically difficult pipelines laid in the highly undulated terrain of Western Ghats, where GAIL completed the construction in just 24 months. The pipeline has been laid in treacherous terrain of Western Ghats encountering several water bodies, rock strata of Deccan plateau in Karnataka, marshy areas in Goa State, restricted ROU in reserve protected forest and amidst very high traffic density in Bengaluru City. Many innovative technical methods were adopted for crossing rivers. A record lowering 41.53 km pipeline was achieved in a single day in the project. Dabhol-Bengaluru Pipeline, dedicated to the nation by Prime Minister Dr. Manmohan Sing on Dec. 3, 2013 has connected South India to the national gas grid for the first time. It has been constructed with a design capacity of 16 MMSCMD of natural gas which produces 3, 000 MW of clean energy. The dedication ceremony took place during the inaugural session of the 8th The project has bagged the prestigious AGPS which is Asia’s premier natural gas event. “India needs to increase its energy supply Platts Global Energy Award in US on by 3 to 4 times within the next two decades. It Dec. 20, 2013 for being remarkably currently ranks as the world’s seventh largest challenging project completed in energy producer, accounting for just about record time in recent times 2.5% of the world’s total annual energy production, while it is the 4th largest energy consumer. GAIL got the award as the gas corridor With oil and gas constituting project happens to be one of the most around 41% of India’s primary technically difficult pipelines laid in the energy consumption, India is highly undulated terrain of Western Ghats, expected to be the 3rd largest energy consumer by the year where GAIL completed the construction in 2020”, the Prime Minister had just 24 months then said. The Dabhol-Bengaluru The terminal would serve as a gateway for entry of Pipeline passes through natural gas to the southern and western parts of the Belgaum, Dharwad, Gadag, country Bellary, Devanagere, Chitradurga, Tumkur, Ramanagaram, Bengaluru Started as a gas transmission company during the rural and Bengaluru urban mid-80s, it has grown organically over the years by districts. It traverses through building a large network of natural gas trunk pipelines 18 National Highways, 382 other road crossings, 20 covering a length of around 10, 000 km


: : : : 39


railway crossings, 83 cased crossings, 11 major river crossings and 276 water body crossings including Asia’s largest river crossing in rocky terrain at Ghatprabha. The construction operations, which continued round-the-clock for 19 months, involved pipeline laying in some of the world’s steepest slopes of 60 to 70 degrees and sharp elevations of up to 700 metres in a 3.5 km stretch. Before the launch of Dabhol-Bengaluru Pipeline by the PM, GAIL, the owner’s engineer of the LNG re-gas block of RGPPL, successfully commissioned the Dabhol LNG terminal located at Ratnagiri, Maharashtra, around 340 km south of Mumbai on Jan. 10, 2013. Mr. B. C. Tripathi, Chairman and Managing Director, GAIL, announced the development while interacting with Media in Mumbai and New Delhi. The terminal would serve as a gateway for entry of natural gas to the southern and western parts of the country. The terminal is operated by RGPPL, a joint venture of GAIL (India) Limited and NTPC, as major share-holders and remaining equity being held by financial institutions and MSEB. GAIL, the commercial operator of the terminal, had arranged commissioning cargo for the terminal in December 2012. While emphasizing the focus to be on completion of the break water facility, he stated that the capacity of the terminal shall be expanded in a phased manner to 7.5 mmtpa and then to 10 mmtpa in the next 2-3 years. GAIL, he added, is also pursuing LNG terminal/ FSRU

opportunities along th country and will ende capacity utilisation of storage facilities by lev over 10, 000 km of network. The commissioning terminal provides access the southern and weste Goa, Karnataka and fertilizers and small indu this re-gas terminal in te alternate higher priced f fuel oil. The transport and t shall also get the opport fuel at cities and town corridor GAIL, as a com Dabhol Terminal, has u capacity of the terminal support to the project. I the re-gas from the ter demand of the customer GAIL’s Dabhol-Panvel Maharashtra regional pi The commissioning along with GAIL’s cro network is poised to i market of India from Bh to Kochi in South spa 3, 400 km. Presently, Dahej an operating LNG termina


Wednesday, January 8, 2014

luru roject wins obal laurels 6 3 1 950+

unctional Directors

the eastern coast of the ndeavor to maximize the of the terminal re-gas and everaging the line-pack of of cross country pipeline

ing of the Dabhol gas ess to natural gas supply to stern states - Maharashtra, d Tamil Nadu. Power, ndustries shall benefit from n terms of savings vis-a-vis d fuels such as naphtha and

d the household segments ortunity to utilise the clean wns en route the pipeline commercial operator of the s under-written the re-gas nal for 25 years for lending t. In the immediate future, terminal will cater to the mers in Maharashtra through vel Pipeline connected to pipeline network. ng of the Dabhol terminal cross country gas pipeline o integrate the entire gas Bhatinda/ Nangal in North spanning a gas grid over

and Hazira are the only inals catering to the LNG

demand in the country. Given the decline of domestic gas production, the current re-gas capacities are operating at maximum rate. Commissioning of Dabhol terminal at this crucial juncture shall facilitate higher volumes of LNG imports for securing energy for the country. Currently, the power block of the RGPPL has been operating on domestic gas allocated to the unit. The need of the time is to maximize utilisation of the new capacities at Dhabol and Kochi as well as the new pipelines in this south western corridor.

GAIL’S OTHER LNG INITIATIVES In addition to the existing long term LNG tieup with RasGas of Qatar, GAIL has recently signed long term agreements for 3.5 MMTPA with US-based Sabin Pass Liquefaction Company at a price benchmarked to Henry Hub gas price in USA and supply is expected to start from 2017/18. This deal, which is first of its kind, will facilitate import of LNG from the US at affordable prices. Further, in order to diversify its portfolio, GAIL has signed long term LNG deal with Gazprom for import of LNG from its Shtokman project being set up in the Arctic region. Supply from this 2.5 MMTPA deal with Gazprom will commence from 2018-19. In order to bridge the demand-supply gap during the intervening period, GAIL has executed medium term agreements with two suppliers from Europe for quantities of around 1 MMTPA to be supplied during 2013 15. This commissioning provides the impetus for more LNG tie-ups by GAIL, and some such tie-ups are under examination from potential LNG export hubs of East Africa, North America and Middle East, etc. GAIL is also keen to expand its foothold by acquiring upstream natural gas liquefaction facilities and actively pursuing potential opportunities especially in North America. Besides, GAIL is working towards concluding shipping arrangements to transport the long term volumes and the Singapore-based subsidiary of GAIL is working towards enhancing LNG volumes and the shipping tie-ups. GAIL (India) Limited is India's flagship gas transmission and marketing company under the Ministry of Petroleum and Natural Gas, Government of India. Over the years, GAIL has transformed into an integrated energy company with global footprints by means of integrating along the natural gas value chain. After having

started as a gas transmission company during the mid-eighties, it has grown organically over the years by building a large network of natural gas trunk pipelines covering a length of around 10, 000 km at present. GAIL is constructing 5, 000 km of additional pipeline network by 2014-15. In the past two decades, GAIL has created a sizeable natural gas market in the country and presently has a capacity to transport 220 MSCMD of natural gas through its transmission network. Currently, GAIL has approximately 3/4

market share in gas transmission in the country with plans to double the existing transportation capacity in the next two to three years. Apart from holding equity in Kochi and Dahej terminals, the company has presence in Egypt and China through city gas projects and

in Myanmar in E & P. GAIL has also set up wholly-owned subsidiary companies viz. GAIL Global (Singapore) Pte Ltd in Singapore and GAIL Global (USA) Inc. in Texas, USA, which are engaged in LNG trading business.


Wednesday, January 8, 2014


“The line between disorder and order lies in logistics…” - Sun Tzu

RBI Governor calls for quality infra & planned budget The success of the New Delhi Metro suggests that timeliness and cost control are not foreign to the Indian psyche Entrepreneurs tell me about boiler inspectors showing up at software outfits, asking for the location of the boiler We have too much regulations on the books and too little regulations in practice, with the worst of the regulated finding unscrupulous ways around the regulations,while the honest are stymied MUMBAI Sagar Sandesh News Bureau


uilding the quality infrastructure on time and within the planned budget should be the top priority of the country’s growth agenda, observed Dr. Raghuram G Rajan, Governor, Reserve Bank of India (RBI), at New Delhi Economics Conclave 2013 on Dec. 11. “We need to improve the quality of our infrastructure, especially the logistical support and power that industry and services need. Grand plans are on the anvil, such as the DelhiMumbai Industrial Corridor. We need to complete such projects on time and within budget. The success of the New Delhi Metro suggests that timeliness and cost control are not foreign to the Indian psyche”, he added.

Our youth need education and training for the jobs that will be created. Some of this will be higher degrees, not just Computer Science but also Design or Civil Engineering. Some of it will be appropriate vocational education that teaches them to be good plumbers and electricians rather than unemployable low-skilled engineers. In fact, teaching our citizens can be a stepping stone to teaching the world. India can be at the forefront of providing mass technology-enabled education with our professors providing appropriate human inputs to achieve the best mix of automation and customization for learning, he pointed out. The country needs better business regulation and this does not always mean less regulation but it means regulation that is appropriate to the objective and,

that is enforced. Entrepreneurs tell me about boiler inspectors showing up at software outfits, asking for the location of the boiler. The lack of change may be sheer inertia, but it may be more sinister rent-seeking. All too often, we have too much regulations on the books and too little regulations in practice, with the worst of the regulated finding unscrupulous ways around the regulations, while the honest are stymied. Even opening a business legitimately requires an enormous number of clearances and paperwork. In the same way as we have Saral form for filing income tax, could we have a Saral one page disclosure for opening a small business, with a single authority giving all the necessary permissions. Lastly we need a better

financial system, which will finance the needed infrastructure and the expansion of every producer ranging from kirana shop owner to the industrialist. But finance is not only about credit. Equally important is for households to be able to save safely with positive real returns, insure themselves against health emergencies or old age costs and borrow at low cost to finance consumption. They should be able to make remittances cheaply and pay at low cost. Importantly, the financial system should not require constant subsidies to bail it out. As a part of the development measure RBI would be clarifying and strengthening the monetary policy framework, strengthen banking structure through new entry, branch expansion, encouraging new varieties of

PMC services contract for II phase of Eastern DFC

16 international firms evince interest MUMBAI Sagar Sandesh News Bureau


nternational companies have shown very keen interest for participating in Expression of Interest (EoI) process for Project Management Consultancy (PMC) Services Contract for the second phase of Eastern Dedicated Freight Corridor project from New Bhaupur to Mughalsarai (402 km). A total of 16 international companies in joint venture with leading Indian companies submitted their application for PMC contract on Nov. 29. Some of the firms are PS DIGITECH-HR (India) Pvt. Ltd., SYSTRA SA, Bernard Ingenieure (Austria)-Obermeyer Plannen+Beraten (Germany)-Actes Bernard (Austria) in association with Bernard Engineers India, Getinsa lngenieria S.L. Spain, GEODATA ENGINEERING S.P.A., MEINHARDT

SINGHAPORE PTE. Ltd. and TUV SUD South Asia. The Project Management Consultant will assist DFCCIL for review of preliminary, definitive design, Contract Management, Construction Supervision, review of contractors’ documents, review of Quality Assurance Plan, Contractor Safety Plan, Environmental Management Plan, RAM Plan and assist in coordination with different agencies, management of interface, co-ordination with utility authorities, etc. with services respect to civil, structures and track works for Bhaupur–Khurja Section of Eastern Dedicated Freight Corridor. It may be recalled here that the World Bank has agreed in principle to part finance the Eastern Corridor project from Mughalsarai to Ludhiana, which has been divided into 3 phases. The total in principle loan commitment is US$ 2.725

Dr. Raghuram G Rajan

The entire Western Corridor is being funded by Japan International Cooperation Agency, while the Eastern Corridor from Mughalsarai to Ludhiana is being funded by the World Bank

billion, out of which the loan for the first phase to the tune of US$ 975 million was sanctioned in May, 2011 and the loan agreement was signed in October, 2011. The loan for the second phase is expected to be of the order of USD 1100 million. DFCCIL, a Special Purpose Vehicle (SPV), is engaged in planning, construction, operation and maintenance of the dedicated freight corridors and in the first phase, the two corridors, namely, Eastern Corridor from Ludhiana to Dankuni (1, 839 km) and the Western Corridor from Dadri to Jawaharlal Nehru Port (JNPT-1, 499 km) are being constructed. The entire Western Corridor is being funded by Japan International Cooperation Agency (JICA), while the Eastern Corridor from Mughalsarai to Ludhiana is being funded by the World Bank.

banks and moving foreign banks into better regulated organizational forms. RBI would attempt to broaden and deepen financial markets and increase their liquidity and resilience so that they can help allocate and absorb the risks entailed in financing India’s growth. The apex bank would expand access to finance small and medium enterprises, the unorganized sector, the poor, remote and underserved areas of the country through technology, new business practices and new organizational structures for financial inclusion – thereby improving the system’s ability to deal with corporate distress and financial institution distress by strengthening real and financial restructuring as well as debt recovery.

SKS Logistics renamed as Shahi Shipping Ltd MUMBAI Sagar Sandesh News Bureau


ogistics player, SKS Logistics Ltd has changed the name of the company from ‘SKS Logistics Limited’ to Shahi Shipping Limited with effect from Dec. 6. “Pursuant to members’ special resolution passed by postal ballot dated May 30, 2013 and subsequent accord thereto by the Central Government under Section 21 of the Companies Act, 1956 read with order dated Dec. 6, the name the company was changed”, according to a note on Dec. 10. The move to change the name was taken by the Board of Directors of the company on April 25, 2013 giving approval for initiating process of postal ballot resolution for changing the name of the company.


Wednesday, January 8, 2014


“The line between disorder and order lies in logistics…” - Sun Tzu

L & T IDPL seeks FIPB nod for Rs. 2, 000-crore FDI Primarily engaged in Public Private Partnership projects in India with business interests spread across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines Shareholders and investors are reminded to exercise caution when dealing in the company’s securities, pending definitive announcement from the company, if any

MUMBAI Sagar Sandesh News Bureau


MUMBAI Sagar Sandesh News Bureau


& T Infrastructure Development Projects (L & TIDPL) has submitted an application to the Foreign Investment Promotion Board (FIPB) seeking approval in relation to a proposed Foreign Direct Investment in L & T IDPL. The company is engaged in discussions with a large global institutional investor for a proposed acquisition of a stake in L &T IDPL. Subject to completion of due diligence processes and necessary agreement on governance and other terms of the transaction with the investor, there is a contemplation of an initial infusion of Rs. 1, 000 crores into L & T IDPL, followed by a second tranche of Rs. 1, 000 crores (or such higher amount as may be agreed between the company and the investor) after twelve months from the date of the initial investment (subject to further regulatory

Allcargo subsidiary buys major stake in Netherlands logistics company

approvals at such time where required). The company will provide further updates if necessary. The proposed transactions are subject to various factors including necessary regulatory and authority approvals and market conditions and may or may not be completed, and parties have not yet entered into any agreements. In the meantime, shareholders and any other investors are reminded to exercise caution when dealing in the company’s securities, pending definitive announcement from the company, if any. In the event of

leadership as a neutral LCL provider with network across 90 countries and 200 own offices globally, its acquisition of FCL is a step forward to consolidate its global leadership and cater to its customers’ request for a neutral FCL service through its global network and benchmark services, according to a Press release. During September of this year, ALL acquired US-based Econocaribe Consolidators for a consideration close to $50 million. The buyout was made through ALL Belgian subsidiary ECU Line that specializes in Less than a Container Load (LCL) cargo.

cuhold NV, a step down any doubt, shareholders and subsidiary of Allcargo other investors should consult Logistics Limited (ALL), has their stockbrokers, bank picked up a major stake in managers, solicitors, FCL Marine Agencies accountants or other Rotterdam for undisclosed professional advisors, stated a sums of money. FCL Marine is notification on Dec. 20, 2013. a Netherlands based logistics L &T IDPL is a company. subsidiary of L & T and is FCL is one of the leading primarily engaged in Public neutral NVO service providers in Private Partnership Full Container Load (FCL) projects in India with segment operating in Europe, USA business interests spread and Canada. With Ecu Line’s global across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines. It has experience in identifying and (major, minor and RUBs), supply and MUMBAI assessing viability of spreading of ballast and other related Sagar Sandesh News Bureau projects, achieving infrastructure works for double track financial closure, L & FS Engineering and electrified railway line in different stretches project Construction Company Limited in between Dehri-on-Sone and Mughalsarai management, joint venture with GPT Infraprojects section of Eastern Dedicated Freight operations and Limited has received a Letter of Award Corridor in the States of Bihar and Uttar maintenance of (LoA) from Dedicated Freight Corridor Pradesh on Design-Build-Lump-Sum infrastructure Corporation of India Limited (DFCCIL) basis. assets across for the work of design and construction The total value of this project is Rs. various sectors of rail flyover near Ganjkhwaja in Uttar 144.65 crores, which is to be completed in as well as Pradesh and formation in embankments/ 30 months. cuttings including blanketing, bridges divesture.

IL & FS bags Rs. 145-cr. freight corridor project


Customs’ fresh norms on warehousing tenure & Letter of Undertaking Warehousing of goods shall initially be allowed for a period up to six months, which may be further extended, subject to the verification that the goods have not deteriorated in quality MUMBAI Sagar Sandesh News Bureau


he present conditions, procedures and safeguards applicable for storage in a warehouse are replaced with a new set of guidelines by Central Board of Excise and Customs (CBEC). As per the new guidelines, warehousing of goods shall initially be allowed for a period up to six months, which may be further extended by the Assistant/ Deputy Commissioner, each extension being for a period not exceeding six months, subject to the verification that the goods have not deteriorated in quality, stated a Press a note from CBEC on Dec. 12. The maximum period, for which goods may be left in the warehouse in which they are deposited, or in any warehouse to which such goods have been removed, shall be three years from the date on which such goods were first warehoused. Excisable goods shall be deemed to be cleared for home consumption on expiry of the

CBEC received suggestions that submission of BG led to increase in transaction cost and, therefore, manufacturer-exporters who are also Status Holders may be allowed to submit LUT in the place of BG

warehousing period including the extensions granted, if any. Duty and interest at 24% per annum shall be charged on such deemed removal. If the registration of a warehouse is revoked or suspended, the excisable goods lodged therein shall either be cleared for home consumption on payment of duty and interest at 24% per annum and shall be removed to another warehouse without payment of duty. Slashing transaction cost at export warehouses: Earlier provisions required an exporter to furnish security equal to 25% of the bond amount for availing the facility of export warehousing. Opposing this, CBEC had received suggestions that submission of Bank Guarantee (BG) leads to increase in transaction cost and, therefore, manufacturer-exporters who are also Status Holders may be allowed to submit Letter of Undertaking (LUT) in the place of BG. On examination by CEBC, the problem has been found to be legitimate and, therefore, it has been decided to amend the BG norms.

A new proviso is inserted that states, provided that where the exporter is a manufacturer and a Status Holder with a clean track record, the requirement to furnish security equal to 25% of the bond amount shall be replaced by the requirement of furnishing an LUT initially for a period up to six months which may be extended by a further period not exceeding six months. Further extensions in the warehousing period in terms shall be allowed to such exporter only on furnishing security of 25% of the bond amount. There is also a need to amend the terms “Super Star Trading House” or “Star Trading House” to replace it with the current nomenclature. The exporters who have been accorded status of Super Star Trading House or Star Trading House” may be replaced with the expression “The exporters who are Status Holder under FTP-200914”. Export warehousing facility would become available to all Status Holders under FTP of 2009-14 due to this amendment.


Wednesday, January 8, 2014


“News is what somebody somewhere wants to suppress; all the rest is advertising.” - Lord Northcliffe

ICS – East India branch celebrates Annual Day

CG rescues 8 from drifting boat in Lakshadweep Search and rescue at sea can become much easier if all boats carry an operational distress alert transmitter and communication set CHENNAI Sagar Sandesh News Bureau



Sagar Sandesh News Bureau


he Institute of Chartered Shipbrokers, East India branch, celebrated its 18th Annual Day in Chennai on Dec. 14. Mr. S. S. Narayanan, Executive Committee member of the branch, welcomed Chief Guest Justice V. Ramasubramanian of Madras High Court; Guest of Honour K. R. A, Narasiah, historian; Capt. S. Bhardwaj, former Vice Chancellor of AMET University; Mr. M. Jagan, ICS Singapore, and all the members and guests. In his annual report, Capt. V.Ganeshyam, Secretary of the branch, briefed the activities of the ICS, East India branch. He congratulated the students who have passed the recent exams and became members of Institute of Chartered Shipbrokers (MICS). Addressing the audience, Capt. R. Venkat, Chairman of the branch, mentioned that due importance to the branch in the ICS international arena was made during the recent Controlling Council meet at Vancouver and

Capt. K. P. Rajagopal, Vice Chairman; Capt. S. Bhardwaj; Capt. R. Venkat, Chairman; Chief Guest Justice V. Ramasubramanian, Guest of Honour K. R. A. Narasiah, CME-VPT (retd) and Capt. V. Ganeshyam, Secretary, during the 18th Annual Day celebrations of the Institute of Chartered Shipbrokers, East India Branch, in Chennai on Dec. 14.

the efforts taken for overall improvement of the ICS, East India Branch. In his address, Justice Ramasubramanian appreciated the activities of the Institute of Chartered Shipbrokers and the efforts taken by it to bring in professionalism to shipping industry. He also spoke about the

history of Merchant Navy to till date with regard to trade, ship types, technology and environment. Besides others, Mr. Narasiah and Capt. S. Pullat, the Founder Chairman, spoke. Mr. K. P. Rajagopal, Vice Chairman of the branch, proposed a vote of thanks.

Bail granted for crew of arms‐laden US ship TUTICORIN Sagar Sandesh News Service


local court in Tuticorin on Dec. 26 granted conditional bail to 35 crew-members of the US-based floating armoury Seaman Guard Ohio. The vessel, on an anti-piracy mission, was detained and the 35 crew-members were arrested on Oct. 18 for entering Indian waters with arms and ammunition. The crew comprising 12 Indians, 14 Estonians, six British nationals and three Ukrainians were booked under the Arms Act 1959, Essential Commodities Act 1955 and Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order 1998. Granting them conditional bail, the court ordered that each of the crew should furnish surety for Rs. 10, 000 for their release, besides appearing at the Office of the Q Branch police, which is investigating the case, and sign every day. It may be noted here that the bail has come after their petitions were dismissed twice in the last 60 days, once by a court in Tuticorin and later by the Madras High Court Bench in Madurai.

Based on the direction of the court on security aspects for the foreign nationals, the ship crew members were lodged in central prisons at Puzhal in Chennai and Palayamkottai in Tirunelveli. The court granted bail on a fresh petition filed by the crew, accepting their argument that chargesheet was not filed in the case even after 60 days of their arrest. The ship owned by AdvanFort, the US-based company, was intercepted by the Indian Coast Guard off the Kanyakumari coast on Oct. 12 and was towed to Tuticorin. An FIR was registered against the ship's crew for alleged maritime violations. The arrested members first moved the Sessions Court in Tuticorin seeking bail. But the petition was dismissed on Oct. 30 as the investigating agency opposed it saying that the process was in a preliminary stage. Then the crew appealed in the Madras High Court’s Madurai bench seeking legal solace. However, the appeal was also dismissed on Dec. 18 as the police argued that the crew were yet to

ndian Coast Guard has once again proved its mettle in Lakshadweep Islands when it successfully saved the lives of eight people including one woman and two children from a distressed boat at sea on Dec. 26. According to a Media statement, the fishing boat MFB Mussafariya carrying eight people departed Kadmat Island at 0800 hours on Dec. 25 towards Bitra Island, another island about 40 miles away in Lakshadweep. Though the boat was scheduled to reach Bitra at 1600 hours the same day, it did not reach its destination. Extensive search was undertaken by local boats/ seafarers but failed to locate the boat. In the meantime, Coast Guard district headquarters (Lakshadweep) at Kavaratti received the information about the missing boat and crew at about 2000 hrs on Dec. 25. Immediately Coast Guard interceptor boat ICGS C-148 was sailed from Kavaratti for search and rescue and a Coast Guard Dornier aircraft was launched from Cochin in the early hours of Dec. 26. During the sea-air coordinated search mission around the islands, the Coast

Guard aircraft located the boat which was drifting about 20 miles north-west of Kadmat Island. The boat had developed an irreparable defect in its engine and was drifting in the open sea. After analyzing the options for successful mission, the Coast Guard interceptor boat was vectored by the aircraft to the distressed boat. Then the Coast Guard boat took all the eight persons onboard and provided them food, water and medical care. Later, the interceptor boat towed the boat MFB Mussafariya to Kadmat Island. The boat and all the eight people were handed over to the local authorities at Kadmat Island at 1630 hours on Dec. 26. Coast Guard authorities have stated that search and rescue at sea can become much easier if all boats carry an operational Distress Alert Transmitter (DATS) and communication sets in the boats. By displaying utmost professional calibre, the Coast Guard has lived up to the motto of “Vyam Rakshamah”.

Maritime Association of Ship owners, Ship managers and Agents (MASSA) honouring the faculty members of MASSA Maritime Academy (MMA) for their distinguished academic services at the MASSA and Maritime Training and Research Foundation (MTRF) Annual Social event in Mumbai.

produce documents on the source of the arms and ammunition and were not revealing the intention for entering Indian waters illegally. But when the hearing came up before Judicial Magistrate in Sessions Court in Tuticorin, advocate appearing for the US ship argued that all the 35 were eligible for bail now due to the failure of the police to file chargesheet within 60 days. The Judge accepted the contention and granted them bail.


Wednesday, January 8, 2014


“News is what somebody somewhere wants to suppress; all the rest is advertising.” - Lord Northcliffe

STCW security compliance

DGS extends grace period till June 30

MUMBAI Sagar Sandesh News Bureau


n response to representations from stakeholders concerning granting of grace period for complying with the provisions of STCW security training requirements, DG Shipping has extended the grace period up to June 30, 2014. This is applicable to all such seafarers who have commenced the approved seagoing service onboard Indian flag ships on or before Nov. 20, 2013 to adhere to the above mentioned security training requirements in accordance with STCW regulation VI/6 of STCW

78 Convention as amended in 2010. Representations from stakeholders pointed out that the major seafaring nations such as Panama, Philippines and Cyprus have already granted a grace period of one year that was taken as cue in extending the grace period by the DG Shipping. The scenario thus is though sufficient training capacity has been created all across the country, and the seafarers are attending the above courses, it has however been represented to the DG Shipping that there are considerable number of seafarers currently onboard Indian flag ships around the world who have not yet attended the security training as per the training circulars issued by the Directorate. Therefore, DG Shipping had allowed Maritime Training Institutes to impart the security training onboard of ships, says a training circular issued on Dec. 24, 2013.

MANSA conducts tournament for shipping fraternity

MANSA organisers along with tournament participants posing for a group photo. MUMBAI Sagar Sandesh News Bureau


he 5th badminton and table tennis tournament for the shipping fraternity of MANSA was organized by MANSA Sports and Cultural SubCommittee at Jawaharlal Nehru Port’s newly made table tennis court. Seventy participants from various shipping and associated companies and port and customs participated in both the events, according to a Media release.

The event was a huge attraction, arousing the curiosity and attention of a large gathering thanks to the keen interest and enthusiasm exhibited by all the members notwithstanding the results of the contest. MANSA appreciates and expresses thanks for the interest evinced by the shipping community by participating in this event and supporting MANSA’s initiative to promote sports, added the release.

Construction work of Paradip Oil Refinery Project stalled ‘The company has meted out a raw deal to the displaced families who have neither been rehabilitated nor provided employment’ ‘Permanent job recruitment would be done after commissioning of the project’

PARADIP Sagar Sandesh News Service


ocals and land-losers on Dec. 23 stalled construction work of the Rs. 30, 000-crore worth Paradip Oil Refinery Project by staging indefinite dharna, demanding employment on permanent payroll for project-affected people. “Project work has got affected as the agitating people locked up the project main gate since early morning. They stopped workers and officials from gaining entry to the project site. However, the agitation was peaceful and incidentfree. But as a precautionary measure, armed police was at the agitation spot to thwart possible breach of law and order”, said Jagatsinghpur Superintendent of Police Satyabrata Bhoi. The company has meted out a raw deal

to them. The displaced families have neither been rehabilitated nor provided employment even as the oil company is all set to commission the refinery by March next year, charged Satyananda Panda, advisor, East Odisha Industrial Development Council, an outfit espousing the cause of the displaced and land-losers. “I had to part with an acre of land for the project. Though I received the compensatory sum, the company has not provided employment to at least one of my family members. The oil company had committed to engage at least one member from each of the displaced family in the Rehabilitation and Peripheral Development Advisory Committee (RPDAC) meeting. But it has not kept up its promise”, said a land-loser, Mr. Suresh Chandra Behera. “The company had acquired 3, 344

acres of land in 2002 from landowners at throw away prices. Compensation award was hardly Rs. 1 lakh to Rs. 2 lakhs per acre. The displaced families had pinned their hopes that they would be suitably resettled and their family members would be given job in the mega refinery project. But nothing has come out as yet since over a decade. The company has let them down”, alleged Mr. Golekha Chandra Nayak, chief of the outfit. The agitation would continue till the company come out with a public announcement regarding permanent employment to 143 displaced families, he warned. The oil company officials, however, differed from the charge and reiterated that proper resettlement plan has been worked out for the affected villagers. Mr. W. R. Barbara, General Manager (HR), Paradip Oil Refinery Project, claimed: “143 displaced families have been provided with 10 decimal homestead

lands per family at Dhinkia. They have also been given cash compensation as per Orissa Rehabilitation and Resettlement Policy. So far we have engaged more than 80 people from the displaced families on contractual payroll. Permanent job recruitment would be done after commissioning of the project. The cases of the displaced families will be prioritized. Preference would be given to local candidates during permanent recruitment. Rs. 2.15-crore worth peripheral development activity of neighbouring villages has been undertaken by the oil company”. The company does not come under the purview of Rehabilitation and Resettlement Policy, 2006 as the land acquisition for the refinery project was complete in 2002 itself. However, keeping in view the larger interest of the locals, the company is committed to employ the locals once the refinery project is fully commissioned, he added.


ExIm Trend

Wednesday, January 8, 2014 Developed countries and advanced developing countries must open their markets for products from - Anna Lindh the developing world, and support in developing their export and import capacity.

Software glitch affects export of seafood & agri. cargo from Chennai

CHENNAI Sagar Sandesh News Bureau


he introduction of Risk Management System (RMS) for exports coupled with technical glitches in Customs’ software ICEGATE, which is the platform for online filing of shipping bills and other necessary documents, has badly affected the export of agricultural commodities from Chennai region. According to EXIM players engaged in exporting agricultural products like onion, groundnut, chillies, coir products & seafood items, they are facing serious trouble of failing to meet consignment obligations as the newly introduced system opts for multiple verifications of products packed inside containers meant for export. Speaking to Sagar Sandesh, one of the exporters seeking anonymity, said: “We are not opposed to the new system, which has been touted as a best method to reduce time consumed for processing export containers. However, for the past few days, more than 80% of factory-sealed containers, that too done in the watchful eyes of senior Customs or Central Excise officials, were being asked by the modified software for re-inspection.” “If we open a seafood-laden

refrigerated container (sealed after proper check-up in Customs -notified warehousing facility) based on the command of modified software at the inspection point after the implementation of RMS, it would definitely affect the quality of seafood loaded and there are high chances that the consignment may be rejected from our consignees due to poor quality,” said another exporter. Though Customs officials maintain that the primary objective of this system is to strike an optimal balance between facilitation and enforcement and to promote a culture of compliance, it is intended to improve the management of the resources of the department to enhance the efficiency and effectiveness in meeting stakeholder expectations and to bring the Customs processes on par with the best international practices. While the authorities had admitted that given the exponential growth in trade volumes over the years, the traditional approach of verifying every export document and examining every container will simply not work, the new system would help them to randomly pick consignments for re-inspection. However, technical glitch in the modified software puts up a

message that about 80 per cent of consignments, stuffed and sealed in private warehouses, should be opened for re-inspection. With the glitch in recently modified Customs software delaying consignments, a group of Custom House Agents (CHA) met the top officials and held detailed discussion to solve the crisis at the earliest. Though the Customs officials are reluctant to accept the ground reality put forth by agricultural commodity exporters of nonpossibility of re-inspecting such goods initially, they later agreed to clear those containers till a permanent solution arrived is arrived at.

What is Risk Management System? Shipping Bills filed electronically into ICES through the Service Centre or the ICEGATE will be processed by RMS. The RMS will process the data through a series of steps/ corridors and produce an electronic output for the ICES. This output from RMS will determine the flow of the shipping bill in ICES, i.e. whether the shipping bill will be taken up for Customs control (verification of self-assessment or examination or both) or to be given “Let Export Order” directly after payment of export duty (if any) without any verification of selfassessment or examination. The RMS will also provide instructions for Appraising Officer/ Superintendent, Examining Officer/ Inspector or the Let Export Order (LEO) Officer, wherever necessary. The decisions communicated by the RMS on the need for verification of selfassessment and/ or examination & the appraising and examination instructions communicated by the RMS have to be followed by the field formations.

Coffee export goes up in 2013 NEW DELHI Sagar Sandesh News Service


ndia's coffee exports rose marginally by nearly 3 per cent to 3.14 lakh tonnes in 2013 in the back drop of sharp jump in re-export of instant coffee, despite sluggish global prices, according to the Coffee Board.

The country had exported 3.05 lakh tonnes of coffee in the previous calender year, it said in its latest report. Due to re-exports, total coffee exports in value terms also remained higher at Rs. 4, 728.86 crores in 2013, as against Rs. 4, 637.87 crores in the previous year.

Total re-export of instant coffee rose significantly by 56% to 70, 833 tonnes in 2013 from 45, 457 tonnes in the previous year, according to the Board data. Much of the coffee was exported to Italy (77, 041 tonnes), followed by Germany (30, 571 tonnes), Russia (20, 703 tonnes) and Belgium (17, 431 tonnes).

NEWS IN A NUT-SHELL CMT fleet reaches double figures


hinese Maritime Transport, the Taipeilisted dry bulk owner, has ordered another 180, 000 dwt capesize at Qingdao Beihai Shipbuilding, part of Statebacked China Shipbuilding Industry Corp (CSIC). The $46.6m ship will be delivered in the third quarter of 2016. CMT ordered an identical ship at the same yard in August last year. Including its orderbook CMT’s fleet has now hit double figures.

Vard’s biggest ship orders in 6 years


ard Holdings Ltd. (VARD), a builder of offshore support vessels, has closed 2013 with its biggest annual order in six years as oil and gas companies boost spending on energy exploration. Mr. Holger Dilling, an Executive Vice President at Vard, said demand from North Sea, Brazil and West Africa and explorations in new areas such as the Arctic Sea may help boost orders for Vard’s specialized ships. Vard, based in Alesund, Norway, won contracts worth 11.9 billion kroner ($2 billion) in the first nine months of this year, 45% more than a year earlier.

China to top ship owning nations


hina is on course to overhaul the likes of Japan and Greece to become the country with the most merchant ships in the world by 2020, according to early results from The Future of Shipping Poll carried out by Maritime CEO. Roughly two thirds of the hundreds of respondents so far reckon China will leapfrog traditional power houses Greece and Japan to the number one slot in six years.

S. Korean top builders’ orders up again


outh Korea’s top 3 shipbuilders had seen their combined orders rise again to the US$ 50-billion mark, 6 years after they first soared past this level in 2007 when the industry was flourishing. Total orders placed by Hyundai Heavy Industries, Samsung Heavy Industries & Daewoo Shipbuilding & Marine Engineering stood at $52 billion in 2013. The figure peaked at $68.5 billion in 2007, but fell to $49.8 billion in 2008 and $11 billion in 2009 due to the global financial crisis. Amid high oil prices & strict regulations to protect the marine enviro nment, environmentfriendly ships are preferred to conventional vessels that consume a lot of fuel and discharge high levels of pollutants.

Shanghai Port retaining top spot


he Port of Shanghai posted a 4.3 per cent increase in container volume in November yearon-year to 2.94 million TEU, according to figures from Shanghai International Port Group (SIPG). Throughput of the entire port of Shanghai is expected to hit 33.5 million, enabling it to stay as the world's largest container port for the fourth consecutive year, according to Shipping Gazette.


Wednesday, January 8, 2014


Anyone who refuses to speak out off campus does not deserve to be listened to on campus. - Theodore Hesburgh

US rescuers, Chinese seafarer receive IMO’s Bravery Award Yang displayed truly extraordinary bravery and concern for the passengers aboard his vessel found dead by an offshore rescue team in the Yangtze River. On that fateful March night, Yang displayed truly extraordinary bravery and concern for the passengers aboard his vessel. He is a worthy recipient of the 2013 IMO Bravery Award for his actions which went far beyond the call of duty, at great risk and danger to himself, and eventually cost him the ultimate price.

NEW DELHI Sagar Sandesh News Service


merican rescuers and a Chinese seafarer have been presented with the International Maritime Organization (IMO) Award for Exceptional Bravery at Sea 2013, during a special ceremony held on Nov. 25 at IMO Headquarters in London. Aviation Survival Technician Second Class Randy J. Haba and Aviation Survival Technician Second Class Daniel J. Todd of the United States Coast Guard Air Station Elizabeth City, North Carolina, were nominated by the Government of the United States, for responding to a distress alert from HMS Bounty, during the pre-dawn hours of Oct. 29, 2012, and overcoming the effects of cold, fatigue and ingesting sea water to deliver 14 crew members of HMS Bounty to safety, during Hurricane Sandy. Yang Jinguo, a crewmember on the ferry Tong Chang Qi Du 11, was nominated posthumously by the Government of China, for sacrificing his own life while trying to rescue a person in distress on the ferry, after it had collided with the cargo ship Shun Qiang 28. The winner’s widow, Gu

CUSTOMS EXCHANGE RATES Indian Rupees equivalent to one unit of foreign currencies will be as follows : With effect from January 3, 2014

Currencies Australian Dollar Bahrain Dinar Canadian Dollar Danish Kroner EURO Hong Kong Dollar Kuwait Dinar New Zealand Dollar Norwegian Kroner Pound Sterling Singapore Dollar South African Rand Saudi Arabian Riyal Swedish Kroner Swiss Franc UAE Dirham US Dollar

Import 55.95 168.80 58.55 11.60 86.05 8.05 225.40 51.60 10.35 103.85 49.50 6.10 16.95 9.75 70.25 17.30 62.35

Export 54.45 159.55 57.50 11.25 84.20 7.90 212.95 50.30 10.05 101.55 48.40 5.70 16.05 9.45 68.55 16.40 61.35

The rate of exchange of Indian Rupees equivalent to hundred units of foreign currency are as follows : Currencies Japanese Yen Kenya Shilling

Import 59.45 73.80

Export 58.05 69.40

HABA AND TODD But then, Yang, aged 55, one of the crew members from the stricken ferry who had already YANG JINGUO been rescued & brought to safety, On March 15, 2012, the ferry decided to act. Yang jumped back Tong Chang Qi Du 11 collided onto the sinking ferry & attempted with the cargo ship Shun Qiang repeatedly to prize open the 28 on the Yangtze River. The ferry’s hull was damaged and, jammed door of the truck in order despite the assistance of two to rescue the trapped passenger. Unfortunately, the ferry lost its rescue ships, the vessel immediately began to sink. There were 33 stability and capsized. Yang was persons on board, 31 of whom unable to save the passenger’s life were subsequently saved during and, in the process of trying, tragithe search and rescue operation cally gave up his own. Although and transferred to a rescue ship. he had the opportunity to escape at But one passenger was trapped. A the last moment, he chose instead, lorry driver, whose vehicle had at the cost of his own life, to stay & been severely damaged in the spend his final moments selflessly collision, was unable to force his attempting to rescue the trapped passenger. 2 hours later, Yang was way out of his truck. Meiying, received the certificate and award on his behalf.

In October 2012, the replica sailing ship HMS Bounty was caught in the deadly path of Hurricane Sandy. Shortly before first light, the ship was sinking, but the crew managed to put out a distress call – a call that was heard by the United States Coast Guard Air Station Elizabeth City, in North Carolina. Two rescue helicopters were immediately dispatched. Aboard them were Aviation Survival Technicians Randy Haba and Daniel Todd. After flying through the outer bands of Hurricane Sandy, in strong winds and torrential rain, they found the ship, partially submerged within a large debris field, and surrounded by life rafts. AST Haba was the first to arrive at the scene. Descending

into the stormy waters, he spent an hour battling strong currents and 10 metre waves, in driving wind and rain, taking survivors from the life rafts to the waiting rescue basket. Overcoming exhaustion and fatigue, AST Haba demonstrated the utmost determination & perseverance, performing two more rescues without the use of a mask. He exhibited exceptional strength and endurance throughout the entire rescue. His colleague, AST Todd, arrived 30 minutes later and immediately deployed into the turbulent sea to begin the task of reaching another life raft. He began straight away to extract stricken survivors from the raft and deliver them to the safety of the rescue basket. His strength and ingenuity expedited the rescue of the six survivors. By acting so promptly, he saved valuable time – time which he used to reposition himself to a second life raft, containing 3 additional survivors, whom he also successfully rescued. Both men overcame the effects of cold, fatigue and ingesting sea water to deliver a total of 14 crew members of HMS Bounty to safety.

Thomas A. Mensah (Ghana) bags global Maritime Prize NEW DELHI Sagar Sandesh News Service


r. Thomas A. Mensah of Ghana, former President of the International Tribunal for the Law of the Sea and Assistant Secretary-General and Director of the Legal Affairs and External Relations Division at the International Maritime Organization (IMO), has been awarded the prestigious International Maritime Prize, for his significant contribution to the work of IMO. IMO Secretary-General Koji Sekimizu presented the award, a sculpture in the form of a dolphin, to Dr. Mensah, during a special ceremony at IMO Headquarters on Nov. 21 during the 27th extraordinary session of the IMO Council. Dr. Mensah was nominated for the prize by the Government of Ghana and has been recognized for his contribution to the aims &

Dr. Thomas Mensah receiving the International Maritime Prize for 2012, from IMO Secretary-General at IMO HQ, London.

objectives of IMO throughout a distinguished career in international maritime affairs, over many years, as a specialist in public international law, the law of treaties, shipping law, the international law of the sea and international

environmental law, a Media statement from IMO has said. The nomination highlighted Dr. Mensah’s long career at IMO (initially as head of the Organization’s newly-formed Legal Affairs Division and then

as Assistant Secretary-General) followed by his appointment as a Judge at the newly-established International Tribunal for the Law of the Sea (ITLOS), from 1996 to 2005. He was also elected as the first President of the Tribunal, from 1996 to 1999. Dr. Mensah and Mrs. Dzifa Attivor, Minister for Transport of the Republic of Ghana, also addressed the audience at the ceremony. The High Commissioner for Ghana, Prof. Kwaku Danso-Boafo, also attended the ceremony. The International Maritime Prize is awarded annually by IMO to the individual or organization judged to have made the most significant contribution to the work & objectives of the Organization. It consists of a sculpture & includes a financial award, upon submission of a paper written on a subject relevant to IMO.

Baltic Capesize 2014

Baltic Exchange all set to amend capesize index with new routes Trial reporting on the new routes and vessel description will begin in late January/early February These are significant alterations which will impact traders, owners and charterers and are designed to reflect the realities of a changed dry bulk marketplace MUMBAI

Sagar Sandesh News Bureau


n a bid to incorporate new routes in capesize category and subsequently redefine the vessel description of the same, Baltic Exchange (BE) has set out to rejig the capesize vessel index, according to a Press release. BE will be

making significant amends to the capesize index including a change to its vessel description, amends to the route weightings and addition of 3 new routes. The move follows a formal consultation process with dry bulk market which began on Oct. 11, 2013. Trial reporting on the new routes and vessel description will begin in late

January/early February with a lifting of the trial anticipated by the end of March 2014. The existing routes and new routes will be published side-by-side until there is no further open interest in either Forward Freight Agreements (FFAs) or options to be settled. This vessel will routinely be referred to as the Baltic Capesize 2014. The basis of the new BE capesize vessel description encompasses 180,000 dwt on 18.2 SSW draft with a maximum age of 10 years and 198, 000 cbm grain. The other particulars of the vessel include LOA 290 m Beam 45 m, 15 knots ballast/14 knots laden on 62 mt fuel oil (380 cst) and no diesel at sea. When considering the prevailing timecharter market rate for the Baltic Capesize 2014 vessel, panelist should assume that, if steaming at 12 knots laden or 13 knots ballast, the vessel will consume 43 mt fuel oil and no diesel at sea. The proposed new routes namely listed out are as C14, C15, C16, etc. C14: Delivery Qingdao spot or retroactive up to a maximum 15 days after sailing from Qingdao, round voyage via Brazil, redelivery ChinaJapan range, duration 80-90 days. Basis the Baltic Capesize 2014 vessel with 5% total commission. C15: Richards Bay-Guangzhou. 150,000 mt coal, 10% more or less in owner’s option, free in and out trimmed, scale load/30, 000 mt Sundays+ holidays included discharge. 18 hours turn time at loading port, 24 hour turn time at discharge port. Laydays/ cancelling 25/35 days from index date. Age max 15 years and 5% total commission. C16: Delivery north China-south Japan range, 3-10 days from index date for a trip via Australia or Indonesia or US west coast or South Africa or Brazil, redelivery UK-ContMed within Skaw-Passero range, duration to be adjusted to 65 days. Basis the Baltic Capesize 2014 vessel with 5% total commission. Principals with substantial interest in route C16 have agreed to provide detailed fixture information on a regular basis to assist with the reporting of the route. This data will be held confidentially by the Baltic.

January 8, 2014

Mr. Jeremy Penn


Postal Registration No. MA/140/2012-2014 Posted at Patrika Channel, Egmore, RMS, Chennai / BPC, Madurai. Licensed to post without prepayment - Licence No. TN/WPP-115/SR/2012-2014, Released every Saturday. Posted on Saturday / Monday / Tuesday

The time-charter average figure provided by the Baltic to facilitate both the FFA and physical market will be weighted as viz., C8_14 (Transatlantic RV@25%), C9_14 ( Fronthaul@12.5%), C10_14 (Pacific RV@25%), C14(ChinaBrazil RV@25%), C16 (Revised backhaul@12.5%)., etc. Parallel reporting of the old and new suites of the time-charter routes will continue until there is no further open interest in either Forward Freight Agreements (FFAs) or options to be settled. Once the new contract has been launched, clearing houses will not accept trades on the old contract which extend in date beyond the period for which there is existing open interest. “These are significant alterations which will impact traders, owners and charterers and are designed to reflect the realities of a changed dry bulk marketplace. We have received a large number of written comments, held open meeting with members and stakeholders in Singapore and Geneva as well as held face-to-face meetings with key market participants”, said Chief Executive Jeremy Penn of BE. “This is a significant realignment of the Baltic Exchange’s capsize information and a change which is being implemented in very close consultation with the end users of the Baltic’s information. We recognize the breadth of opinion in the market and thank the Baltic Exchange for undertaking such a comprehensive review, bringing in as many participants as possible”, said Chairman of the Dry Freight Market Information Users’ Group Philippe van den Abeele. FFA Brokers’ Association Chairman Ed Radcliffe said: “After a lengthy period of consultation with market participants the prevailing view is that the changes to the Baltic Capesize Index better reflects the underlying physical market and the FFABA will, of course, continue to work with BE and FMIUG to ease the transition to the new index”.

January 8 ,2014 e paper