GCC Ports II
Port of Fujairah
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The CAG Report Card Two recent reports on India's maritime sector are a cause for concern because they raise grave questions about the arbitrary style of functioning of regulatory authorities and two major government owned shipping companies. The concerns are grave because both reports reveal the rampant corruption prevalent in the government. And of course both cases only reflect the larger picture of corruption and blatant scams that the nation is currently mired in! Once again, the CAG has lambasted the Maharashtra Maritime Board (MMB) about the arbitrary way it farmed out concessions on a BOOST basis to develop six ports in the State. It reeked of favoritism and corruption. In a flagrant violation of bidding rules, the MMB awarded concessions to port developers with a dubious track record. Two of these projects sanctioned in 2002 are yet to be commissioned. Of the remaining four projects sanctioned in 2008-09, only two projects have been commissioned, work on the other two has not even begun till now, in 2013! These dubious decisions of the MMB are costing the exchequer crores of rupees. Developers of two of these ports were allowed "concessional" wharfage charges in contravention to provisions of agreements, resulting in short receipt of Rs 10.60 crore. And non-application of prevailing market rates for land transferred to these developers caused a loss of another Rs 31.76 crore. This has been aggravated further by serious issues about environmental clearances for these projects. The other major concern is the performance of Dredging Corporation of India (DCI) and the Shipping Corporation of India (SCI), both are PSUs and flagship companies in India's maritime sector. A recent report released by the government reveals how both companies squandered crores of rupees due to inefficient operations and poor planning. The DCI failed to obtain bunkering at competitive prices and increased its fuel bill unnecessarily, losing sums more than equivalent to their PBT during those years. And SCI has lost crores of rupees as â€œunfruitful expenditure,â€? which includes a failed joint venture for chemical tanker operations. As promised, we have brought you the second part of GCC Ports in this issue. This time the focus is on Port of Fujairah which is emerging an oil logistics hub due to its strategic location and some ongoing developments happening there. The other important stories in this issue are on inland water transport and environmental reporting for ports. We also bring you a detailed analysis on what ails Indian shipping, which is another tale of neglect by government policy. And you will find important market intelligence in the port cranes feature, and enjoy reading the Port Focus, which is on Hamburg Port. Do send us your feedback so we remain attuned to what you want to read. Happy Reading!
Bipin Sinha Executive Editor
April - May 2013
SeaPorts BUSINESS CMYK
personnel and ports, charges have increased.
Increase In Port Charges Mumbai Port Latest revision
Types of charges Port dues Pilotage Berthing Charges
Rate ($) 0.2596 per gt 0.4263per gt 0.0092 per gt
Previous revision 2006
% increase 22.97 22.99 22.67
0.2111 per gt 0.3466 per gt 0.0075 per gt
Cochin Port Latest revision
Types of charges Port dues Pilotage Berthing Charges
Rate (Rs.) 9.59 per gt 20.85per gt 0.1769 per gt
Previous revision 2004
% increase 49.84 109.55 121.13
6.40 per gt 9.95 per gt 0.080 per gt
New Mangalore Port Latest revision 2012
Types of charges Port dues Pilotage (30000 gt) Berthing
Rate ($) 0.143 per gt 0.320 per gt
Previous revision 2006
0.25 cents per gt
% increase 0 0
0.143 per gt 0.320 per gt 0.21 cents per gt
Along with Still Plummeting Freight Rates Average earnings ($ per day) Type of ship
Source: Clarkson Research Services â€“ Dec. 2012 & April 2013 shipping has had to fight its own government for better and competitive operating environment, vis-Ă -vis foreign operators in India. This is amply reflected in the fact that no foreign direct investment has come into India despite 100% FDI being permitted in the sector nearly ten years ago.
What Ails Indian Shipping? That the international freight markets are depressed is a well known fact, but what is largely overlooked is the fact that all inputs costs for Indian shipping have increased. All cost heads be it fuel,
While there is no clear view on when the international shipping cycle will revive so Indian shipping gets a breather, there are speculations that this trough cannot last longer and the shipping cycle should recover soon enough now. Meanwhile the government needs to act in order to mitigate the troubles created by the rising input costs.
The Operating Costs Have Increased The operating costs have increased due to rising wages, fuel costs, port costs and other compliance costs like ballast water treatment and NOX SOX compliance. The factors primarily contributing to rising operational costs are given below; The table above details clearly the rate and pace at which freight rates have plummeted in the last five years. Given these circumstances, the Indian shipping industry is in need of pro industry and pro active policies like long term cargo contracts from government PSUs and cheaper finance for ship acquisition.
Lack Of Planning Fleet expansion is critical for India as the Indian fleet is inadequate in size compared with India's EXIM cargo trade. Further, the current fleet needs replacement with more than 50% of it being more than 18 years old. In addition to these structural and operating anomalies are the policy faux pas of the government.
Lack of Cargo Support India has a long coast, abundant
Adverse Operating Environment Render Indian Shipping Uncompetitive Operating Parameters For A Coastal Voyage Flag Safe manning rules (a) Number of seafarers (b) Nationality of seafarers Bunkers
Seafarers taxation Indian
Tonnage tax Service tax on freight
Impact On An Indian Flag Ship Higher tax rate The number of seamen to be mandatorily employed is fixed and higher per voyage
Impact On Competitive Foreign Ship Advantage Rests With Lower tax Foreign ship Not in the Foreign ship purview of these rules; lower manning scales
Purchase cost ~30% higher than the diesel costs that a competitor pays for movement of cargo on land. seafarers on Indian flag ships have to pay tax and hence cost of employees goes up Plus additional taxes payable such as MAT Applicable
Not levied, Not applicable
Land operator/ transporter
Not levied, tax free
Not levied, tax free Not levied, tax free
Foreign ship Foreign ship
Source: Indian National Shipowners' Association cargo and world recognized seafaring skills. Therefore, a long term cargo scheme proposal would go a long way in ensuring growth of India's national fleet, increased usage of Indian shipyards, as well as funds from Indian banks.
Arbitrary Tax Environment Every year the Budget gives Indian shipping a new shock that mars its
performance in the year. The 2012 budget introduced a countervailing duty (CVD) of 6% on import of ships. The 2011 budget introduced a 5% CVD on ships and increased tonnage tax rates by 50% and more. Though these charges were reversed with in a year, they did cause a lot of upheaval in the industry. Thankfully, shipping has been spared in the 2013 budget.
An Unfortunate Fallout The recent downfall of Pratibha Shipping is a case in point. A national maritime policy which would lay the path for support of Indian flag shipping companies could assist in breaking the slide. According to the DGS statement, â€œFor the past couple of months, the financial position of the company has been deteriorating which has resulted in the stranding of all the nine ships, statutory and mandatory certificates (for vessels) have also expired.â€?
And to top it all is the current disturbing trend of holding directors of shipping companies liable for criminal prosecution for incidents onboard ships. Generally, the concept of vicarious liability wherein the Master and Principal is held liable for acts or omissions' of the servants or agents, does not apply to criminal law. Therefore, in the event of an offence occurring onboard a vessel the director of a company cannot be held responsible as there was no actual commissioning of the wrongful act on his part. With respect to non-executive directors, criminal culpability will depend on the role of the said director in the acts of the company. When a particular sector of the economy is in deep turmoil it needs urgent and specific inputs. Such expertise is often availed from nonexecutive or independent directors. The negative trend of criminal culpability being a threat to them will keep specialized talent away from the shipping industry. Therefore the government should realize the strategic and economic importance of having a national flag and act to create a national flag fleet, akin to other maritime nations such as China, Australia, UK, Malaysia and a host of others. Inaction will only serve to exacerbate the difficulties faced by this sector, leading to mistaking a tsunami for what seems like a wave! + The Author is Economic Advisor with the Indian National Shipowners' Association. These views are her own and are not the views of INSA.
India Ratings has suspended the ratings assigned to troubled Pratibha Shipping in January 2013. The rating was issued to term loans from cooperative and scheduled banks. As on March 31, 2011, banks' exposure to the Mumbai-based shipping company amounted to Rs.742 crore.
30 Port Projects planned this fiscal The Shipping Ministry today said it has set a target of awarding 30 projects, entailing Rs 24,633 crore investment, for the current fiscal to add 288.48 million tonne capacity.
The Shipping Ministry today is awarding 30 projects, entailing Rs 24,633 crore investment, for the current fiscal to add 288.48 million tonne capacity. "The achievement of the Ministry during 2012-13...has been outstanding... This is the best performance for any year in the history of Major Ports... We have finalised the Action Plan for this year (2013-14) and a target of 30 Port Development Projects has been fixed," Shipping Minister G K Vasan told a Parliamentary Consultative Committee in Mumbai. A statement from the Shipping Ministry quoted Vasan as saying: "I am confident that the targets for the current year will be achieved by all the Major Ports." The ministry awarded 32 Projects last fiscal that will add a capacity of 136.75 million tonne per annum, costing Rs 6,765.63 crore. It has also decided to establish two new Major Ports, one at Sagar Island in West Bengal and another in Andhra Pradesh to add a capacity of 100 M T PA , t h e M i n i s t e r s a i d .
He also added that the Maritime Agenda aims to create port capacity of 3,200 MTPA by 2020, which is more than 3-fold ncrease over 10 years, for handling about 2,500
MTPA of projected traffic at an estimated investment of about Rs 3 akh crore. The capacity of Indian ports stands at a little over 1,000 MTPA. +
“We are dedicated to adding real value to clients and suppliers” Chapman Freeborn is an enterprise nurtured by its Chairman, Chris Chapman, over the last forty years. From a single office in London this acorn has grown into a mighty oak with branches hanging across all continents. SeaPorts Business interviewed him on the occasion of its 40th anniversary. We bring you excerpts. Chapman Freeborn is celebrating its 40th anniversary. Tell us the major milestones of this journey. Getting to 40 is a major milestone - I never thought on day one that we would celebrate 40 years. We have been involved in humanitarian charters for 40 years, including supporting the response to the Asian tsunami, earthquakes in Pakistan and Haiti, and famines in Africa. This past year the company has tackled complex air logistics challenges with two recent airdrop contracts in Sudan and the Central African Republic.
Peer recognition Chapman Freeborn has been voted Air Cargo Charter Broker of the Year at the World Air Cargo Awards for the last six consecutive years, in recognition of its work in the cargo market. Industry publication Air Cargo News also named Chapman Freeborn as its Cargo Charter Broker of the Year in 2012 and 2013. In 2010, Chris Chapman was inducted into The International Air Cargo Association's (TIACA) 'Hall of Fame' – lauding his outstanding contribution to the development and growth of the global air charter market.
We have been voted Air Cargo Charter Broker of the Year at the World Air Cargo Awards for the last six consecutive years, amongst other numerous awards. In 1987 I personally set up the charter operation to support David Bowie's Glass Spider Tour and since then the company has developed a niche expertise managing flights for high profile music tours, movie promotions and other entertainment industry clients. The Rolling Stones, U2 and Coldplay are just some household names to have worked with Chapman Freeborn over the years.
Tell us about the spectrum of services offered by you across all segments of air charter services.
We specialize in the charter and lease of fixed-wing and rotary-wing aircraft for a wide ranging client base including international organizations, NGOs, multinational corporations, governments, and a host of industries around the globe. However, in addition to cargo and passenger charters we are dedicated to adding real value to clients and suppliers. We always set out to be different, so when others were just broking we were arranging permits, selling fuel, even at time finding crew. To this day we continue to do the same but have now spun it off into different companies and also added new services such as computerized centralized load control. In 2006 we also launched an on board courier (OBC) division specializing in the worldwide handcarry delivery of time-critical shipments.
What is the most valuable asset for your company? How do you nurture that asset? One word â€“ people. They are nurtured by being treated with respect and by being listened to. The secret to our success is that after 40 years we still believe in the â€œone size does not fit all' philosophy. Our brokers are renowned for their ability to be creative and innovative and our focus has always been on
building long term relationships with both clients, and suppliers. As a result, anybody who joins Chapman Freeborn today has the ability to make a difference to how we do our business going forward.
Which was the most challenging air charter you have arranged? How were the challenges met? Nearly all charters are challenging and to pick out one would be impossible. Challenges are best met by facing them full on, involving the client and not stopping until an answer has been found.
What is your operations model to handle complex air logistics operations across all continents? Speedy communication across the Group using the full range of competencies at our disposal. When hiring staff we are always looking to widen these competencies â€“ such as language experience from loadmasters to dispatchers. Within the group we can speak 50 languages, meaning that we can reach four billion people in their native language.
What is your outlook for emerging markets, especially India. What are the challenges faced while
operating in these markets. We were the first air charter broker to open an office in Africa, South America and Australia. In India we were an early arrival as well. The challenge is to find capable personnel and to meet the differing needs of each region. For example, earlier this year we announced a new strategic private jet partnership with Drukair Royal Bhutan Airlines, the national airline of the Kingdom of Bhutan, making it more widely accessible to international private jet travellers.
What Best Practices fetched the various awards won by Chapman Freeborn? Honesty and integrity.
How do you feel about being inducted in The International Air Cargo Association's (TIACA) 'Hall of Fame.' Proud, as I believe I was the first charter broker to be inducted and it was a recognition for charter broking as an industry.
What is your message to the industry at large? Keep the faith.
Environmental Reporting There's an urgent need to track carbon emissions from ports, especially those situated in densely populated cities. Femke Boersma discusses emerging trends in emissions reporting and draws a roadmap for Reporting Standards for ports.
The fast growing ports in Asia have claimed all but one spot in the ports volume top 10 but haven't cached up yet on visibility and reporting on emissions as ports in the West have done. Pressure from customers, port area residents, governments and investors have affected Rotterdam, Antwerp and also Long Beach whilst operating in in densely populated areas. How does this pressure work in Asia and where does the request for transparent ports come from?
Qingdao and Dubai we see that only Shanghai, Singapore, Hong Kong port of Dubai provide with some information on emission or port carbon footprint. The port that has
been in the list for a long time, the port of Rotterdam, shows the most effort in reporting. The port of Rotterdam, as most ports in Europe, close to the city and therefore to
Top 10 Ports by Volume
Footprint reporting ports By looking at the top 10 of ports by volume in 2011 with Shanghai as number one, followed by Singapore, Hong Kong, Shenzhen, Busan, Ningbo -Zhoushan, Guangzhou,
Sustainability Report In Gatports
Courtesy: Port of Rotterdam
millions of people affected by its emissions, reports scope 1,2 and 3 and achieves an A+ from the Global Reporting Initiative.
Port operations' role Government incentives are only one reason to report as a port. Sharing results with people living close to the port can create goodwill when trying to reduce the impact of ships arriving and leaving the port and from other transportation activity at the port. Target setting can attract investors with similar values, and emission reduction efforts, which over time are also a cost-saving exercise, are attractive for management. Now customers of ports; the shippinglines transporting goods for corporations with sustainability programs and large corporations who own their own fleet, also look at each step in the supply-chain for determining impact reduction, including what happens at the port. Environmental policies from large corporations have traditionally been top-heavy. Policies designed at headquarters take time to drip down the supply chain where usually most carbon is emitted. Now companies have mapped their direct impacts
they move from offices and plants, to suppliers and transportation. This will speed up the development of reporting in Asia where most products are developed and will also influence reporting in ports as hubs from factory to store.
Pearl River Delta If we look at port numbers 3,4 and 7 from the top 10 ports listed by volume (Hong Kong, Shenzhen and Guangzhou) they are also in densely populated areas. The Pearl River
Delta is home to some 36 million people who live in Hong Kong, Macau or one of the nine prefectures in Guangdong. Together these three ports represent some 10 percent of global container traffic, which is about 50 million TEU of containers annually.* Whilst Hong Kong citizens bear 74% of the impact even though Hong Kong handled less than 50% of the PRD's container throughput* the port of Hong Kong is currently the only one providing with some emission information. Pressure to report in the Pearl River Delta has come from different sources mostly surrounding air quality around the port. Civic Exchange, a local NGO, who is also the initiator of the Fair Winds Charter, a voluntary, at-berth fuel switching programme for oceangoing vessels calling at Hong Kong which runs from January 2011 and has just been extended to December 2013, researched that marine sources of sulphur dioxide (So2) emissions currently account for 519 premature deaths per annum in the PRD. Interestingly in Hong Kong the industry is asking for the government for more stringent regulation to create a level playing field. Currently there are 17 participants, which
Sustainability Reporting at Ports
Courtesy: Civic Exchange
include most of the large shipping lines who berth in Hong Kong.
Reporting trends Not denying the complexity of ports, other sectors like the retail sector have taken up reporting for a long time. Ports can now step in at a more sophisticated level and jump over some of the hurdles the retail sector already has taken. Collecting data from different sources and locations can be a complex undertake especially for a marketing or communication department where the calculations traditionally takes place. The data collection from different parts of the organisation or the collection of data in Excel by sustainability managers, who should be working at strategic level, resulted in many companies correcting their numbers year after year when key players in the reporting process left or when new information came available. In order for an organisation to benefit from the data collected instead of seeing the collection as an additional burden, appropriate IT system support is necessary. Wherever a port decides to use existing tools for reporting, develop a system internally or integrate it with existing (financial) reporting sustainability reporting
becomes more a number crunching exercise. We see the professionalising of the reporting industry also in the expenditure in the Enterprise Carbon and Energy Management Solutions, ECEM market. Forrester, a research firm, has predicted that the spending on ECEM will approach 1 billion USD this year. Also in 2010 more than 200 large corporations bought ECEM software. Reporting will become more stringent, not
Sustainability Reporting at Ports
less, investing in support programs will save administrative cost in the long run. Now its up to the ports in Asia to learn from the retail sector and step in at a higher level whereby reporting does not have to be a burden, but can create opportunities for cost and emission saving. With these experiences ports will realise that reporting can bring benefits for the organisation itself and for its relationship with its stakeholders. + ____________________________ *Data from Civic Exchange report: A price worth paying: the case for controlling marine emissions in the Pearl River Delta. September 2012. The Author heads the 'Sustainability Management' department of Turnkey Group, a Hong Kong based company. She has been working with Indian firms on sustainable supply chains, and has addressed conferences in India and published articles on sustainable logistics.
Courtesy: Port of Rotterdam
Consensus reached at GreenPort Conference
Green Port conference delegates posing for a group photo after going around the JNPT Port
In all, more than 110 delegates from global ports, terminal operators, shipping lines, consultants, industry organisations, consultants, manufacturers and suppliers to the industry attended the first GreenPort South Asia Conference held in Mumbai on 20-22 March 2013. The two day technical conference brought together presentations and papers providing evidence of established best practice examples from India and other international ports in a knowledge sharing platform. Speakers included Mr Luxman Radhakrishnan, I.A.S Chairman, Jawaharlal Nehru Port Trust, Patrick Verhoeven, Secretary General,
European Sea Ports Organisation (ESPO), Olumide Omotoso, assistant general manager - Hydro & Dredging, Nigerian Ports Authority and Knut Marquart, Head of shoreto-ship Power, ABB. In order of priority, challenges to achieving sustainable development were identified as being: Financial cost, stakeholder engagement, legislation of regulation, status of the environment within the business plan and techniques and equipment. The conference covered a wide range of issues from policy to technology, from finance to community relations. Overall, delegates agreed on the positive role that the exchange of knowledge and
experience through such events can play in the promotion of sustainable development in the port and supply chain. The week started at the Welcome Reception hosted in the Malabar Room of the Trident Nariman Point Hotel where networking and discussion, which set the tone for the conference began, and continued at the Gala dinner on the evening of the first day of presentations, also at the Trident Hotel. Jawaharlal Nehru Port Trust (JNPT) hosted a port visit for the port delegates on Friday 22 March 2013, which started at the Gateway of India. JNPT is addressing green measure such as the maintenance of environmental
stability through preservation; conserving the mangroves in the coastal area and increasing the forest and tree cover substantially and is aiming to protect the community from the harmful effects of pollution whilst promoting sustainability and educating the community on the
Port's environmental programme. The visit took in the mangroves that provide habitat for a wide variety of flora and faunas, the Port Township, which has been developed since 1989 and the lake near the Shiva temple on Sheva Hill. All attendees enjoyed the visit and opportunity to
enjoy the sun and fresh air after two days of listening to presentations and participating in discussion and debate. Dates for the 2014 GreenPort South Asia Conference will be released shortly. +
SMM 2013 comes to Mumbai SMM India which is a subsidiary of leading International Maritime Trade Fair, SMM Hamburg has come to Mumbai and has become a leading international platform for maritime technology and innovations, with a comprehensive gathering of industry and government representatives from around the world. The 3rd edition of SMM recently got over in Mumbai in conjunction with the 50th National Maritime Week, a celebration of maritime activities when India welcomes the national and international maritime industry to an event-packed week in Mumbai. The second overseas offshoot of the world's premier shipbuilding event â€“ the shipbuilding, machinery & marine technology international trade fair Hamburg (Germany), which is held by Hamburg Messe und Congress (HMC) every two years, alternating with the overseas offshoots in Istanbul (Turkey) and India saw participation of delegates, visitors, various maritime industry associations, seafarer unions from all parts of the world.
A key part of the fair was an exclusive seminar, on the occasion of National Maritime Day, 2013, by National Maritime Day Celebrations (Central) Committee. The Theme for the 50th National Maritime Day, 2013 was the 'Last 50 years of Indian Shippingintrospection and way ahead'. Major international delegations from
maritime community and political representatives were seen attending the Opening Day Seminar that was held in the presence of the esteemed Chief Guest Shri Milind Deora, the Hon'ble Minister of State for Shipping, Government of India. By lighting a lamp, the event was called open. Additionally a Public Private
Partnership Summit was organized by high-ranking representatives from the Indian Navy and Indian Coast Guard to exchange views and experience of vital interest for the maritime professionals. The esteemed Chief Guest for the PPP Summit was Vice Admiral NN Kumar, AVSM, VSM, Chief of Materiel, Integrated Headquarters, Ministry of Defence (Navy), New Delhi. The conference featured several pivotal panel discussions by numerous prominent personalities from India's shipbuilding and shipping industry such as Vice Admiral (Retd) Pramod C Bhasin, PVSM, AVSM, VSM, Chairman Defence Council, ASSOCHAM who opened a discussion on avenues for constructive dialogue on the Public Private Partnership in the maritime sector. This was followed by a keynote address by Mr. J D Patil, executive Vice President, Head of Defence and Aerospace, Member of HEIC board, Larsen and Toubro
(Heavy Engineering – Mumbai). Inspector General SPS Basra, YSM, PTM,TM, Commander – Indian Coast Guard Region (West) also chaired a session on Horizon Scan coastal / Inland security – Role of Coast Guard & support agencies amongst several other interesting discussions The summit was an ideal and rare platform for the top-level experts of the Maritime Industry. A special session titled 'Technology Infusion for Future Propulsion Packages with a view to minimum maintenance of systems on board' also took place with several distinguished panelists. The session chairman for this topic w a s Vi c e A d m i r a l A s h o k Vishwanath Subhedar, AVSM, VSM, Director General Naval Projects at Mumbai. The most awaited session that was held was on “India emerges as a shipbuilding nation – will public private partnership help” with session chairman Rear Admiral (R)
Nikunj Mishra , NM, Chairman & Managing Director, Hindustan Shipyard Limited. The event showcased the entire value chain of Maritime Industry, consisting of Shipbuilding, ship repair, machinery maintenance, Defence/Marine and electronics equipment, the state-of-the-art products and new developments. Mr. Bernd Aufderheide, President & CEO, Hamburg Messe and Congress GmbH, Hamburg, Germany and Mr. Rajan Sharma, Managing Director, Inter Ads Exhibitions Pvt. Ltd. said “India's growing strength in the shipbuilding sector, coupled with the renewed drive in the industry, set the stage perfectly for SMM India 2013 to play host in Mumbai. We are sure that this will prove to be an extremely beneficial platform to bring together ship owners, industry experts, high-ranking representatives from the Indian ship building industry and shipyards as well as the Indian navy and coastguard.” +
TOC CSC to discuss supply chain challenges Freight rate instability, container equipment provision and creative supply chain collaboration on the agenda as TOC talks to Stanley Black & Decker and America Chung Nam Container freight rate volatility is seriously impacting companies' container supply chains in the short term. Meanwhile, longer term challenges include the elusiveness of true collaboration between supply chain stakeholders, and the need for
more creative solutions to manage port-hinterland connectivity.
outlook for global container supply chain operations.
These are some of the key messages delegates will take away from the 38th TOC Container Supply Chain Europe Conference, taking place in Rotterdam on June 25-27. Under the headline theme Innovation, Efficiency and Connectivity, this long-running event brings together cargo owners, 3PLs, ocean carriers, transport companies and port and terminal providers to debate the
Filip Degroote, Transportation Director EMEA for Stanley Black & Decker, says the main challenge to the successful execution of an effective container logistics chain in the current climate is the volatility in freight pricing. “What we see is that container rates are overly sensitive to demand/supply changes and not to underlying costs,” he notes.
benefit of the entire supply chain.” Both Filip Degroote and Joselin Basile participate in The Annual Big Industry Debate: a series of hot topic roundtable discussions taking place on the afternoon of 25 June. Other 'big box' shippers taking part at TOC CSC Europe include Tünde Fabri, Transport Business Developer at IKEA, Tom Tillemans, European Head of Logistics Network Development for HJ Heinz, and Jean O b e r l é , V P Tr a n s p o r t & Warehousing, Global Supply Chain for Schneider Electric. Stanley Black & Decker is the international S&P 500 supplier of industrial and DIY tools, household hardware and security products, with annual turnover of more than €10bn worldwide. The company imports about 15,000TEU into Europe each year, including 8,000TEU from Asia Pacific, where it has plants in Taiwan, China, Thailand and India, plus external suppliers in Taiwan, China and India. It also brings in around 6,000TEU from its factory in Israel and 1,000TEU from the US.
Total cost productivity “As a transportation team, we need to drive productivity on total cost from door to door and reduce total transit time,” says Mr Degroote. “We are also tasked to support the business in executing changes in supply chain models, direct carbon footprint and sourcing strategy, as well as working on the integration of new acquisitions.” Degroote sees all these issues as pieces in the larger puzzle of supply collaboration. Collaboration is happening, he believes, but businesses are still largely organised by functional specialty, whether that is sourcing, distribution, transportation, or other discipline. “Customer relationships, for example, are still mainly owned by sales, with not enough direct operational interaction.” The key
issue, he believes, is that supply chains must start with an organisation's strategy and goals; only after that can metrics be aligned across each of the specific supply chain functions.
A net exporter from Europe Scope for improving supply chain collaboration is also the message that Josselin Basile, Logistics Manager for America Chung Nam Europe, will bring to TOC CSC Europe. Mr Basile brings the interesting perspective of a large exporter of containerised product out of Europe. America Chung Nam is one of the world's largest exporters of recovered paper, sending thousands of containers from Europe to Asia every month. Mr Basile also says that his supply chain concerns extending down into equipment availability, especially the lack of visibility and information on the potential for more effective container repositioning. As an exporter of large numbers of containers from Europe, he is convinced there are great possibilities to match equipment supply and demand between different companies operating in different trades. “Everyone is working in parallel, but there is so much more we could do to combine our resources and knowledge for the
The container shippers will be joined by senior ocean carrier and 3PL representatives including Lars Mikael Jensen, Head of Asia-Europe Network at Maersk Line, Juan Pablo Richards, SVP Region Europe, CSAV Group, Nissim Yochai, VP Corporate Customer Relations for ZIM and Peder Winther, Senior Vice President, Seafreight at Kuehne + Nagel. “It is fascinating to hear these comments from these leading supply chain professionals who will be taking part in the 38th TOC conference in Europe,” said Paul Holloway, Event Director for TOC Worldwide. “By bringing cargo owners round the table with the container shipping and logistics industries, TOC will once again provide a productive platform for all stakeholders to connect and discuss innovative approaches to today's principal supply chain challenges.” TOC Container Supply Chain Europe runs from 25-27 June at the Ahoy Centre, Rotterdam. The event includes tour of Rotterdam port terminals, high-level container supply chain conference, free-toattend TECH TOC container port operations and technology c o n f e r e n c e , B U L K Po r t s & Technology seminars, a major exhibition of port and terminal services, equipment and technology, and industry networking + receptions.
GCC Ports II
Port of Fujairah
Emerging Oil Centrifuge The
There is now a nodal shift in the strategy for oil & gas logistics in the GCC region. The recently commissioned Habshan-Fujairah pipeline will make Fujairah the new logistics hub for oil & gas in the GCC region. This is reinforced by new refining capacities being planned there, and its emergence as the world's second largest bunkering port, says Satish Chavan. The Achilles' heel of all oil trade flowing out of the GCC countries is the Strait of Hormuz. Currently most of the oil flowing out of these countries has to pass through this strait which is dominated by Iran. Time and again, every time Iran has been threatened with sanctions it has threatened to close down the Hormuz Strait for all shipping traffic from the GCC region. This fact has always weighed heavily on the oil trade flowing from GCC countries to
the rest of the world. Fujairah's emerging status as the GCC's new oil centrifuge could change all that.
Strategic Location Fujairah's location on the Indian Ocean leaves it less vulnerable to a closure of the Strait of Hormuz by the Iranians. If all the GCC oil can be piped to Fujairah it can bypass the Strait of Hormuz and its attendant threats altogether. Fujairah holds a unique position in the UAE. It is the
only Emirate that lies on the eastern side of the UAE, along the Gulf of Oman, while the other six Emirates are located along the Arabian Gulf. This location has also helped the Emirate to establish itself as the world's second-largest ship refueling hub, it is steadily expanding its bunkering capacity. The most important attribute for a port is its road and rail connectivity. While the road connectivity is important only for general cargo the rail
GCC Ports II
connectivity for Fujairah Port will soon be completed by Etihad Railway.
â€œThe ideal way of continuing this low-cost logistic is rail. GCC countries are currently planning a
GCC rail network from Kuwait to Oman (and beyond at both points in a later Phase) which will pass through the other GCC countries. With the proposed GCC regional rail network entering the early phases of development in the UAE and Saudi Arabia, the road map for land-seaair connectivity is in place to drive new intra-regional opportunity. Additionally, development of next generation terminal facilities are needed to accommodate future projected demand. Presently, intraregional transportation is heavily dependent upon roads. However, most of the GCC countries are looking at alternative forms of transportation to ease the strain on roads. Rail is more energy-efficient than road transportation,â€? says Mandagolathur R. Raghu, Senior VP (Research), Kuwait Financial C e n t r e M a r ka z . Wi t h t h e completion of Phase II of Etihad Rail, all of the UAE Ports will be
The Mubadala Project Abu Dhabi based government controlled Mubadala Development Co. is working on a project in Fujairah to build a floating LNG storage terminal and a regasification unit, the first supplies are expected in the next two to three years. The project has been conceived in response to Iran's regular threats of closing down the Hormuz Strait to oil traffic from the GCC countries. The proposed Fujairah LNG terminal will be built in two phases, each having a capacity of 600 million standard cubic feet per day. The advantage of a floating LNG terminal is that such offshore facilities can be moved wherever necessary and are more costeffective than the construction of onshore sites. The floating terminal plan also follows opening of the TawleewahFujairah pipeline in 2010 which delivers gas to the emirate from Abu Dhabi. The gas originates from two offshore platforms off the north-eastern coast of Qatar where it is transported via dedicated sealiners to Ras Laffan for processing and then pumped through a sub-sea pipeline to Taweelah, Abu Dhabi on the Persian Gulf coast of the UAE. The 246 km pipeline runs overland from Taweelah and ends in Qidfa, Fujairah. The UAE already imports gas from Qatar through the Dolphin Gas pipeline (51 per cent-owned by Mubadala), a venture with Total and Occidental Petroleum Corp. The pipeline operates at about two-thirds of capacity because the UAE has been unable to buy additional fuel from Qatar, which has committed its supplies to other buyers. Dolphin Energy Ltd., already pumps about 2 billion cubic feet of gas every day from Qatar to the UAE and then on to Oman. Saudi Arabia and the UAE are projected to need additional gas supplies to make electricity and petrochemicals, and as fuel for energy-intensive facilities such as smelters.
GCC Ports II
connected together from the Western region (Al Gharbia, Khalifa Port), to Eastern region, mainly Jebel Ali and to Fujairah Port. The other important connectivity for Fujairah as a oil and gas logistics hub is the pipeline to transport the oil from UAE's western region. A pipeline connecting Fujairah Port to Abu Dhabi's onshore oil wells was completed last year. And the recently commissioned HabshanFujairah pipeline will ensure that Port of Fujairah will emerge the new logistics hub for oil and gas in the GCC region.
Coming onstream Therefore in view of Fujairah's growing stature as a hydrocarbon transit hub and the guaranteed supply of Abu Dhabi crude, the government-owned International Petroleum Investment Company (IPIC) has planned to build a 200,000 barrel per day refinery near the Emirate's port. The storage facilities of the Abu Dhabi Crude Oil Pipeline (also owned by IPIC) has alone added 1 million cbm of capacity last year to Fujairah. The refinery project is currently in the preliminary engineering phase, and will be completed by 2016 at a cost of about US$3 billion (Dh11.01bn).
The refinery will also produce about 1.9 million tonnes of naphtha per year. Also additional storage tanks are being planned by private companies, with which total capacity is forecasted to exceed 9million cubic metres by the end of 2014. This does not include the ADCOP storage. Oil storage capacity in the UAE port of Fujairah is expected to grow by two million cubic metres (mcm) this year to just over six mcm, according to Reuters. Fujairah had 4.07 mcm of oil storage capacity at the end of 2012, with Vopak Horizon Fujairah accounting for about half of it. Another two mcm is expected to come online in 2013, including capacity additions from existing companies such as the Emirates National Oil Co (Enoc), GPS Chemoil and Socar Aurora, along with new port investors such as Gulf Petrochem. R. Raghu gives an update on latest developments in oil and gas terminals in the region, â€œThe GCC countries have developed a vast network of specialized oil and gas terminals, which handle more than 1.5 billion tons of crude oil and gas exports per year. Saudi Arabia is expected to launch a second hi-tech container terminal in 2015 with capacity for 1.8 million TEUs per
annum. The north western port of Dhiba is expected to get a new $46.4 million container terminal. Two additional terminals, valued at $38.4 million, are to be constructed at King Fahd Industrial Port in Jubail while Jeddah Islamic Port is forecasting an average increase of 10.9 percent through to 2016. Qatar's new $7.1 billion mega-port project, located close to the busy Messaeid Industrial Zone and Port is aiming for a 2016 opening, with eventual capacity of six million TEU per year by 2028. In the UAE, Jebel Ali is expected to see its terminal three capacity expanded to 19 million TEU per annum, with Abu Dhabi's Khalifa Port Terminal adding a further 15 million TEU per year upon completion in 2030.â€? It is pertinent to note that according to experts once the Fujairah Port's expansion is complete there is going to be a problem of over capacity in the GCC region.
Projected demand The demand for natural gas is projected to be robust in the near future. LNG prices will surge due to new demand from Japan, which has shunned nuclear power after the disaster at its Fukushima nuclear power facility recently. A limited increase in global supply will create an "extremely tight" market. New demand this year for 16 million metric tonnes from China, India and other buyers is forecast to exceed added supply of 10 million tons from Australia and Angola. Under the circumstances most user countries across the world will look to the GCC countries to plug the gap in demand-supply. And this will only reinforce Fujairah's stature as the focal point, through which most of the oil and gas coming out of GCC countries will have to pass through! +
GCC Ports II
Poised for Expansion In a tête-à-tête with SeaPorts Business, the Port of Fujairah Spokesperson discusses the factors making it the GCC's new oil hub, progress on the refinery project and the new pipeline fuelling it, and their expansion plans in the near future. We bring you excerpts.
The Port of Fujairah is emerging a major oil & gas logistics hub in the GCC area. What is the secret of this success The strategic position of the Port and its Anchorage, outside the Straits of Hormuz is the basis of its current success and the catalyst for growing investment in Port and Emirate. However, our main attribute has been our ability to react to and cater for the needs and requirements of our customers. The reputation that the Fujairah Anchorage has gained is not based, solely, on its strategic position but also on the organisation and determination necessary to make it a successful Marine logistics Hub. The Port has, and will, develop its facilities and berths to meet the
requirements of new tankage and oil activity.
Tell us about major developments concerning
oil in the recent past. Major developments have been: • The completion of the Abu Dhabi Crude Oil Pipeline (ADCOP)
GCC Ports II
PORT OF FUJAIRAH Multi-Purpose port covering a variety of activities including: l
Maritime supply through the Fujairah Anchorage
General and Project cargo
Container (through a concession to DP World)
Bulk cargo -predominately export aggregates
Oil and Bunkering.
which will carry 1-1.5 million b/d per day via a 360 km 48” pipeline to 12 million BBL storage and thence for export through three sub sea pipelines and three single point mooring buoys for deep water loading. • The continued construction, by private companies, of additional Tank Storage. This total capacity on this front is forecasted to exceed 9million cubic metres by the end of 2014. This does not include ADCOP storage. • An increase in trading as well as on shore sourced Bunkering activity
How many oil berths does Fujairah Port currently have Currently we have: • 3 Berths (OTT1-840 mtrs, 15 mtrs draft with 8x16' MLA) were commissioned in 2006
• 4 Berths (OTT2 -1500 mtrs, 18 mtrs draft, with 4x16” and 4x12' MLA on each Berth.) We are also planning new oil berths, number 8 and 9, of total 830 m length and - 18m depth. The new facility can accommodate either two large tankers at berth's centers or four oil tankers of maximum 165 m length. The facility can handle Black & White oil products with minimum flow rate of 4000m3/hr and 2000 m3/hr respectively. An additional Matrix Manifold to serve the future cluster of northern oil storage facilities requiring connection with the tanker berths. We have identified a need for VLCC berths.
Land reclamation and Northern Breakwater A further 71,500 square metres of land will be reclaimed in addition to
the 45,000 square metres reclaimed in May this year. The northern breakwater will be built completing the confines of the New Industrial Port and providing the base for future Berth expansion of up to a total of 20 berths.
Aggregate Export Market Our “traditional” export aggregate market continues apace and we have invested in a second Bulk Loader (with a capacity of 4000 tons per hour) which became operational this year.
Fujairah Refinery A significant future development will be the Fujairah Refinery scheduled to become operational at the end of 2016. This will be designed initially to produce 200,000 barrels per day, will take its feedstock from ADCOP but will also require to import, through the Port different grades of crude. Its product will serve the local market but a significant amount may in due course be exported. We are planning for this. We will require to cater also for example for the Refinery's LPG exports, which will require particular planning.
Additional Areas New but considered “diversity” opportunities, such as LPG are under constant review. We are already, for example, speaking to chemical companies and assessing their particular requirements, LNG of course is not something we could develop within an Oil Storage and Berth Structure. However a quite separate LNG facility to the North of the Port is being developed by Mubadalla and IPIC. As for all commercial activity in Fujairah waters the Port will supply the Marine Services. +
A case of
Beneficial Ownership The Bombay High Court was recently faced with a case which questioned the applicability of the International Convention on Arrest of Ships, 1999 (Arrest Convention, 1999), and whether it was permissible to arrest a beneficially owned ship relying on the said Arrest Convention, 1999. By Harsh Pratap Facts of the case The Plaintiff who was the owner of a vessel entered into a Voyage Charter party for the said vessel with Defendant No.2 as Charterers. Defendant No. 2 failed to pay detention charges to the Plaintiff under the said voyage charter party and the Plaintiff sought to arrest the Defendant Vessel m. v. RAINBOW ACE on the ground that the vessel was in the same beneficial ownership as the voyage charterer i.e. Defendant No. 2 The Plaintiff argued that it had a maritime claim being a claim arising out of an agreement relating to the use and hire of a ship and sought to arrest the Defendant Vessel relying on Article 3(2) of the Arrest Convention, 1999. The Bombay High Court granted an ex-parte order of arrest following which the owners of the vessel entered appearance and filed an
application for vacating the ex-parte arrest on the following grounds: 1. Whether the International Convention on the Arrest of Ships 1999, can be applied to the present dispute? 2. If yes, whether by virtue of Article 3(2) there of, arrest of a ship beneficially owned by the person against whom there is a maritime claim in respect of another ship, is permissible? 3. Whether the Defendant is in the beneficial ownership of Defendant No.2? Arguments of the Plaintiff and the Applicant The Plaintiff argued its case on the Arrest Convention, 1999. The Applicant argued that the Arrest Convention, 1999, would
apply only to cases for enforcing a contract involving public law character. The Applicant sought to rely on an abstract statement contained in a Supreme Court judgment in support of its argument. On the issue of whether the arrest of a ship beneficially owned was permissible or not, the Plaintiff relied on Article 3 (2) of the Arrest Convention 1999 and argued that the words “Owned” and “Owner” contained therein included “beneficially owned” and “beneficial owner”. The Applicant argued that the Arrest Convention 1999 itself is not applicable and hence neither would Article 3 (2) and further that Article 3(2) only means registered owner and not beneficial owner. On the third issue which was whether the Defendant Vessel was in the beneficial ownership of Defendant No. 2, the Plaintiff argued that the
Defendant Vessel and Defendant No.2 are beneficially owned by a common beneficial owner and hence the Plaintiff was entitled to arrest the Defendant Vessel for its claim against Defendant No. 2. The Plaintiff relied on Article 3(2) of the Arrest Convention 1999 and on certain documents which according to the Plaintiff showedinterlia common address and common directors as evidence of beneficial ownership.
Decision of the Court The Bombay High Court disagreed with the Applicant on the applicability of the Arrest Convention, 1999, to enforcing contracts involving a public law character and held that the Arrest Convention,1999, was applicable in India and could not be restricted to the enforcement of contracts involving public law character. The Bombay High Court also held that the Court can arrest a vessel under beneficial ownership for a maritime claim under Article 3 (2) of the 1999 Arrest Convention and that it is permissible to arrest a ship beneficially owned by the person against whom there is a maritime claim in respect of another ship. The Court considered several Supreme Court judgments and judgments passed by various other High Courts in India and also several English Judgments including the Aventicumand EvpoAgnic and held that arrest of ships beneficially owned was permissible. On the issue whether the vessel was in the beneficial ownership of Defendant No.2, the Court held that on the basis of the evidence and documents before it, the Plaintiff failed to show that the Defendant Vessel was in the beneficial ownership of Defendant No. 2 and hence vacated the order of arrest.
Significance of the judgment In the writer's opinion, even prior to
the present judgment, it was possible to arrest ships beneficially owned under Indian law provided the necessary link between the beneficial owner and the ship beneficially owned could be established. Further, the Arrest Convention, 1999, has been regularly relied upon by the Bombay High Court, other High Courts in India and the Supreme Court of India. Indeed the Bombay High Court has previously held that it is possible to arrest a ship for security in aid of foreign arbitration under the Court'sAdmiralty jurisdiction relying on the Arrest Convention, 1999. To that effect, the recent judgmentdoes not alter the position but the judgment nevertheless assumes significance in as much as it supports the above position and categorically holds that the Arrest Convention, 1999, applies and further that arrest of ships beneficially owned is permitted. Turning to the issue whether in the present case, the necessary link between the beneficial owner and the ship beneficially owned was established, pertinently, although the Defendant relied on Article 3 (2) of the Arrest Convention, 1999, it wasnot the Plaintiff's case that Defendant No.2 beneficially owned the Defendant Vessel which is what its case ought to have beenbut instead that both Defendant No. 1 and Defendant No.2 were beneficially owned by a common beneficial owner and hence the Plaintiff was entitled to arrest the Defendant Vessel for a claim against Defendant No.2. In the writers opinion Article 3 (2) does not support such a proposition. The Court recognised that the Plaintiff's case was not that Defendant No.2 beneficially owned the Defendant vessel and that the Plaintiff's case involved lifting of the corporate veil to determine who is the real person liable in an action in personamor to determine the real person against whom the Plaintiff has a maritime claim.The Court observed that such an enquiry was completely
different from an enquiry as to whether a ship beneficially owned can be arrested and held that Indian as well as English cases were against lifting the corporate veil as suggested by the Plaintiff, absent a case of fraud. The Court held that fraud has to be alleged to lift the corporate veil and simply alleging beneficial ownership through common address, common signatures and common directors without supporting evidence is not enough to lift the corporate veil to ascertain the real owner.
Conclusion This judgment clarifies the position with regards to applicability of the International Convention on Arrest of Ship, 1999. Further, the judgment also allows arrest of ship under beneficial ownership for a maritime claim. What is important is that the claim should be on the premise that the party liable for the maritime claim is the beneficial owner of the vessel sough to be arrested. If the necessary link between the beneficial owner and the ship beneficially owned is established prima facie, there is every reason to believe that the + Courts will allow the arrest.
______________________ The Author is an experienced maritime lawyer and Partner at maritime legal consultancy Clasis L a w. H e h a s significant experience working with various Indian and foreign clients in the field of shipping, marine insurance and international trade law including working with various foreign law firms, ship owners, charterers, cargo interests, multimodal transport operators, freight forwarders, insurance companies and P & I Cubs.
Inland Water Transport
The Union Cabinet's plan to declare Lakhipur-Bhanga section of the Barak River as a National Waterway is a gesture come too late and a good example of the government's neglect of this sector. It means nothing considering that the five existing National Waterways are not yet fully functional and still lack funds and manpower to optimize their utilization. Recently, the Inland Waterways Authority of India (IWAI) invited 'Expression of Interest' (EoI) from private players to build infrastructure on National Waterway-2. It also called for an EoI to transport imported coal to NTPC's Bongaigaon thermal power plant via inland waterways. However most private companies have given a cold shoulder to both EoIs. This attitude is clearly a reaction to the gross
neglect of the sector by the Government. The deadline for the EoIs was 22nd April, and as of now no EoIs have been submitted. Consequently, the IWAI is now planning to extend the deadline further, according to sources. And assessing IWT projects in Maharashtra in its latest report, the CAG has lambasted, â€œSeven out of eight inland water transport projects approved under the centrally sponsored scheme at a
cost of Rs 29.83 crore during 200306 were either incomplete or had not got off the ground as of December 2012.â€?
Lack of incentives The NTPC is setting up a 3X250 MW coal fired thermal power plant at Bongaigon, and intends to transport the coal
Inland Water Transport
via inland water route. Hence the EoI stipulates major components like jetties for handling coal and general cargo, and a pipe conveyor belt at the unloading point of Jogighopa to transport the imported coal to storage silos, and cranes and hoppers to transfer the coal to rail wagons. Actually all this material handling and other infrastructure ought to have been provided by the government in the first place. According to a logistics operator in
the Eastern coal belt, “Most private players are reluctant to participate in such projects due to lack of loading and unloading infrastructure, difficulties in getting space for berths at ports, their shallow draft, and poor connectivity to the hinterland.” To make matters worse there's nothing substantial on the incentive side. Most of them are on the supply side, minor sops like concessions to vessel owners in terminal charges or light dues etc.
Five National Waterways National Waterway – 1: Ganga-Bhagirathi-Hooghly river system from Allahabad to Haldia (1,620 km), declared as National Waterway in 1986. National Waterway – 2: The Brahmaputra River from Sadiya to Dhubri (891 km), declared as National Waterway in 1988. National Waterway – 3: The West Coast Canal (205 km), declared as National Waterway in 1993. Kollam to Kottapuram: 168 km Champakara canal: 14 km Udyogmandal canal: 23 km National Waterway – 4: Kakinada-Puducherry canal along with rivers Godavari and Krishna (1,095 km) declared as National Waterway in 2008, covering states of Andhra Pradesh (888 km), Tamil Nadu (205 km) and Union Territory of Puducherry (2 km). Godavari River from Bhadrachalam to Rajahmundry – 171 km Krishna River from Wazirabad to Vijayawada – 157 km Kakinada canal from Kakinada to Rajahmundry – 50 km Eluru canal from Rajahmundry to Vijayawada – 139 km Commamur canal from Vijayawada to Peddaganjam lock – 113 km North Buckingam canal from Peddaganjam lock to Chennai – 340 km South Buckingham canal from Chennai to Mercanum – 103 km Kaluvelli tank from Mercanum to Puducherry – 22 km National Waterway – 5: East Coast Canal integrated with Brahmani and Mahanadi delta river system (623 km), declared as National Waterway in 2008, covering states of West Bengal (91 km) and Orissa (532 km). Geonkhali-Charbatia stretch of East Coast Canal: 217 km Charbatia-Dhamra stretch of River Matai: 40 km Brahmani, Kharsua & Dhamra river system: Talcher-Dhamra, 265 km Mahanadi Delta River: Mangalgadi-Paradip, 101 km Proposed National Waterway: River Barak, Lakhipur – Bhanga (121 kms).
The basic problem in developing inland water transport is the government's inability to provide adequate funds for their development. A good example of this is Odisha. Although a national waterway was declared over there in 2008, Odisha did not receive any funding in the 11th Five year Plan. Consequently the State Government is preparing a detailed project report for the Rs 5000 crore NW-5, an IWT project along the Brahmani-Kharsua river system. Although the PMO office has fast tracked several projects on NW-1, 2, 3, IWT is yet to sail full steam ahead. For that to happen it needs extra budgetary support. Most importantly it needs initiatives like tie-ups or commitments from PSU companies, as NTPC has done for hauling coal to its thermal power plants. According to IWAI , the Indian Farmers Fertilizer Corporation (IIFCO), and Tata Chemicals are doing a trial run for transporting fertilizer from their plants in Phulpur and Haldia. This will be a test case to ascertain the viability of IWT for cost effective haulage of cargo.
Economic viability A comparison of economic viability of IWT is the fact that one barge is equivalent to 15 rail wagons or 60 trucks. Add to it the green fact of lesser CO2 emissions from a single barge. The Maritime Agenda 2020 envisages IWT as a commercially viable option for providing porthinterland connectivity as India is endowed with rivers, canals and
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Inland Water Transport
Nascent Potential Inland waterways have played an important role in the Indian transport system since ancient times. However, in recent times its importance has diminished considerably with expansion of road and rail transport. In addition, diversion of river water for irrigation has also reduced the importance of inland water transport. The decline is also due to deforestation of hill ranges leading to erosion, accumulation of silt in rivers and failure to modernize the fleet to suit local conditions.
creeks. To tap its potential as a supplementary mode of transport with respect to rail and road modes, IWT needs to be developed to a level where it becomes competitive in a multimodal transport network. According to an NCAER report prepared in 2006, the operating cost of IWT per tonne per mile is 1 cent by barge, 2.5 cent by rail and 5.3 cent by truck. IWT also provides higher fuel efficiency as compared to either rail or road, as 3.8 litres of fuel can transport one tonne of freight through 827 km by barge, while it is only 325 km by rail and 95 km by truck. Fuel savings to the tune of Rs.1100 crore for every 10 btkm (3 lakh kilo litre) has also been calculated for modal shift from road to IWT at diesel price of Rs.36 per litre. In the European Union a subsidy of two Euro per 500 tonne km is provided for modal shift from road to IWT under the Marco Polo Programme. IWT compares favorably with rail and road costs and if the economic costs of less carbon dioxide emission and noise pollution are factored in, then IWT will score over rail and road transport. Promotion of IWT can also help India meet its carbon emission
reduction commitments. Also, in order to provide an impetus to the development of inland water transport mode, an 'Inland Water Tr a n s p o r t Po l i c y ' h a s b e e n announced. It includes several fiscal concessions and guidelines for encouraging private sector participation in development of infrastructure and ownership and operation of inland vessels. IWAI is also authorized for joint ventures and equity participation in BOT projects.
India has about 14,500 km of navigable waterways comprising rivers, canals, backwaters and creeks, of which over 3,600 kilometers are navigable by large vessels, although in practice only about 2,000 kilometers are used. This extensive network of rivers, lakes and canals can provide an efficient network of inland transportation. A multi-modal mix of road, rail and inland water transport can ensure efficient transport allowing mobility, flexibility, and cost effectiveness. While the thrust so far has been in developing road and rail sectors, Government recognizes the need to actively promote the IWT
The IWAI Act 1985 Section 12 of the IWAI Act 1985 empowers the Inland Waterways Authority to enter into and perform any contract necessary for the discharge of its functions under the Act. Section 14 of the IWAI Act empowers the Authority to provide or permit setting up of infrastructure facilities for national waterways. Section 17 of the IWAI Act provides for the Authority, with the previous approval of the Central Govt. to levy fees and charges at such rates as may be laid down by regulations made in this behalf for services or benefits rendered in relation to the use of the National Waterways for the purposes of shipping, navigation infrastructural facilities including facilities relating to the berthing of vessels, loading of cargo and storage of cargo. The fees and charges levied shall be collected in such manner as may be determined by regulation. (“Regulations” means regulations made by the Authority under the IWAI Act, 1985). Section 19 (1) (c) provides for crediting to the “IWAI Fund” all sums received by the Authority from such other sources as may be decided upon by the Central Govt.
Inland Water Transport
sector to increase its share in the multi-modal mix. Considering the current constraints facing IWT it is important to make it an acceptable mode of transportation. To make it so there is a need for reduction in cost and time of transportation and enhancement of safety and reliability of the cargo. To achieve this, fairway, fleet, terminals and navigational aids are pre-requisites and unless these facilities are provided, IWT will not be able to offer its inherent advantages in terms of cost of transportation and fuel saving.
Future Prospects Despite fluctuating fortunes in the past, inland there seem to be some p o s i t i v e d e v e l o p m e n t s n o w. Currently there is an urgent need to step-up the traffic on IWT so it can launch itself as an alternative mode of environment-friendly transport. It is estimated that a shift of one billion tonne kms to IWT will reduce the fuel cost by about Rs 25 crore and the cost of transportation by about Rs 45 crore. Also, being labour-intensive, the IWT can generate employment in many
The funds crunch With the PMO fast tracking several IWT projects and the current bottleneck in coal transport in the North East region from ports like Paradip and Krishnapattanam to the hinterland, the IWAI may be allocated more funds for developing IWT networks. Also with Indian Railways unable to provide adequate capacity to move coal, the Government is now shifting focus to inland waterways. The Shipping Ministry has requested a higher allocation of funds for improving inland waterways through dredging and providing navigation buoys. It has sought at least a doubling of the budgetary support for inland waterways in the next fiscal. Currently, only about Rs 100 crore is allotted for IWT each year. Also there's a new push for private investments in the sector. Private equity investment in the sector began with Jindal ITF and NTPC signing a pact with IWAI. categories of personnel; for river conservancy and river-development activities, operation and maintenance of terminals and in particular, for manning the inland vessels.
changes to make the scheme more useful for the beneficiaries." He added, "In order to achieve this, we need to make concerted efforts at the national and state level"
At the Coastal Shipping and Inland Water Transport summit held recently in Kerala, the State Government announced a subsidy-based scheme for water transport of Rs one per ton per km for cargo movement through coastal shipping. Its Chief Minister Oommen Chandy said, "We would be willing to make further necessary
Commenting on the current state of IWT, the Director General of Shipping Gautam Chatterjee said, “There was a need for looking at joint ventures between coastal shipping and land transport owners to provide cost effective solutions for movement of cargo. The coastal shipping fleet accounts for less than 10 per cent of Indian tonnage. There was a need for comprehensive policy framework and proactive role by the government for giving impetus to coastal shipping and inland transportation.”
IWT systems in Holland are among the most developed in the world
Summing up the current state of I W T, t h e C h a i r m a n I n l a n d Waterways Authority of India, Dr Vishwapati Trivedi says, “The potential of IWT as a supplementary mode of transport in meeting the transportation requirement of the country in an environmental friendly manner continues to be grossly under-harnessed. Promotion of IWT, therefore, offers a big challenge as well as a big opportunity.” +
DNV Product Certification
As reefers market heats up, TITAN makes a cool entry! The entry of TITAN reefers into the Indian market comes at a very opportune time. Just when demand for temperature controlled containers is getting buoyant. By Layland Barker.
As off shore work increases and especially as the search for off shore oil and gas accelerates more developing nations are facing the challenge of ensuring safe operating conditions in ports and not least at sea. The challenges are significant. Local economy often points towards an affordable compromise whilst common sense amongst legislators, enforcing authorities and the involved parties requires the safest possible working environment. As off shore exploration and subsequent exploitation increases it is quite common that something as simple as the supply of suitable and safe containers lags behind. Local service suppliers might be reluctant to invest in relatively expensive DNV tested containers whilst ever the users accept alternative [less expensive] products. A quality that was perhaps found acceptable in shallow water operations is permitted in deep water areas, often much further off shore, with more extreme environmental conditions including wave and swell heights. At the start of every off shore adventure it is often the local entrepreneurs who do their best to make it work. For some it is the start of a long term positive participation in the off shore industry but for others events and demand may then overtake their ability to properly purchase the required quality and quantity. This can give rise to the unlucky situation where authorities may feel a need to compromise safety legislation either to protect local businesses and/or due to the greater economic pressures from the
DNV Product Certification
A new supply of provisions being loaded landside at the supply station
enormous benefits of self supplied energy contra continued imports. This could be India or any other country with a fledgling off shore industry. The challenges are more or less the same the world over. So are the problems of successfully introducing sensible working conditions, to protect all who participate in what can be a dangerous environment! Often at the start standard ISO shipping containers are used and if 10' or other sizes are required then it is common that local companies convert 20's into shorter models. As this practise is often performed with used containers, these may already have significant material loss through rusting & corrosion, the finished products are of a dubious quality. Further, there are often no pad eyes for lifting only the top corner castings. Ensuring that the containers are structurally sound, to withstand what can be extreme conditions, at the time of construction makes a lot of sense. The design and materials used are not the same as with standard ISO containers. DNV inspection and the testing of components, including X-ray analysis of weld seams, and the testing of the finished product is an expensive process, but it is a process which, when combined with design and material strengths, almost
guarantees structural integrity not only when the container is new but also during its' entire useful working life providing always the regular inspection and repair of any damages Often, local engineering companies can improve standards to a satisfactory level to manufacture steel containers, baskets and other steel products required by the off shore supply industry. The local manufacture of high volume supplies and/or more specialized container types is often more problematical. In this case there is no economically acceptable alternative but to look to import the products required. An excellent example is with DNV 2.7-1/EN 12079-1 off shore refrigerated containers. In addition to the proven designs and the expertise in welding steel a potential manufacturer also needs to have
additional know how including; manufacturing high density sandwich insulation, working with stainless steel and aluminium to ensure internal hygiene, thermal breaks and many other issues. Refrigeration plant suitable for use at sea needs also to be provided. There is also the economic reality that it is a relatively small number of refrigerated containers that are required as a % of the total off shore container fleet. This will often prevent a long term investment plan for local manufacture. TITAN Containers cooperate with leading international (refrigerated) container and refrigeration manufacturers to supply the finished product with minimal lead time and DNV 2.7-1/EN 12079-1 compliance. Headquartered in Denmark , TITAN are already involved in supplying DNV containers, and in particular refrigerated DNV containers, to the off shore industry in several countries. New investments in rental DNV containers in 2013 are already in excess of US$ 7.5 million. TITAN Containers are expected to make an entry into the Indian market with a wide range of products during 2013 and this will include both DNV containers and landside cold storage facilities for the off shore + industry.
DNV containers are rigorously tested - this is 10' reefer before machine installation
Capt. Karkare's Blog
The Ports' Disconnect The Shipping Ministry's target to award 30 port projects entailing Rs 25 Kcr in current fiscal year to add 288.48 million tons capacity to major ports is certainly very encouraging news but has to be reviewed with caution. The quality and efficiency of road and rail connectivity to ports of India, whether they are major ports or non â€“ major ports, is rather dismal and has seriously affected the functioning of these ports.
mention a few, the major ports of the country are in well known cities and towns which are highly populated and congested. The town and city development agencies never took cognizance of port requirements for land and road and rail connectivity. The ports of Mumbai , Chennai, Vishakhapatnam, and Kandla are the best examples to cite as to what can happen to a port when its outlets are choked by development of civilian structures around it.
While the Government managed major ports with huge monopolistic support in terms of export import cargoes of public sector companies, it is rather sad that they are only handling 58% of India's seaborne trade. The unprecedented congestions seen in the past is the result of lack of peripheral infrastructure supporting a port. To
The Shipping Ministry must take these points into account while developing the new major port at Sagar Island in West Bengal, and in Andhra Pradesh. The Shipping Ministry's ambitious development plans of constructing new major ports should take into account all those problems that have affected the present 12 Major ports functioning .
The last point of this news must be appreciated, where the Ministry talks about streamlining of the Security Clearance Procedures (ISPS code)
CAG report on functioning of MMB Findings of the Controller & Auditor General on functioning of the Maharashtra Maritime Board (MMB) is not at all surprising to me, I have been their consultant for three years. The 6 port projects under scanner have been certainly allotted under political compulsions and pressures by MMB. The Board never ever considered professional merits, nor their experience in the port and shipping industry, on a fair play basis. One of the reasons that I opted out of their consultancy panel was this very reason. The BUILT , O W N , O P E R AT E , S H A R E ,TRANSFER (BOOST) basis should have encouraged the selection on merit so that non â€“ major ports would have been built on a profit sharing basis rather than at a loss of Rs 42.36 crore, as reported by the CAG. Let me add some other well known malpractices happening in connivance with the MMB; are extraction of sand from creeks and river beds on the west coast under MMB's jurisdiction, under payment
Capt. Karkare's Blog
of barge operation dues at minor ports under MMB's jurisdiction and under payment of inland passenger ferry dues from hundreds of ferries operating in back waters of MMB run ports. The question of unauthorized ship building activity on the beaches of Maharashtra coastline under MMB jurisdiction is an open secret well brought out by the news reporters Mr Tembhekar and Mr. Sen in their news item in TNN on 19th April. The crowning glory is that MMB is presently headed by a CEO of IAS cadre who himself is under scanner for various irregularities.
Unnecessary bunker costs As a Captain of the ship the first thing I had to keep control on was bunker cost of the vessel. It is baffling to note that SCI and DCI , two major Indian Shipping companies under public sector incurred unnecessarily bunker costs to the tune of Rs 165 crores in the fiscal year. These companies have Marine Superintendents who are exCaptains and Chief Engineers who have operated ships where the major cost is bunker cost. In fact in shipping economics 40% cost is of bunkers and 30% cost is manning and remaining is maintenance and other requirements. The losses are of course due to bad planning and procurement policies of bunkers. This situation has been aggravated
by internal politics between commercial and operational departments of these companies, along with suspected malpractices in signing long term bunker supply contracts etc. The SCI and DCI are two favorite milking cows of the Shipping Ministry who cater all the favors desired by the officials running the Ministry. Its corollary is found in Air India, which provides similar favors to Civil Aviation Ministry. The Indian tax payer must take these losses seriously as they will continue to happen every year till we collectively throw out corruption from our daily lives and bring the nation's interest in the fore front.
Deregulating port tariff
handled many cases of port tariff for my clients using Major ports for their cargoes. It is a big relief for all of us to note that at last the Ministry of shipping has decided to deregulate port tariff to market linked tariff. This is a a good move by the Ministry and must be appreciated by all of us in the shipping sector. This will result in healthy competition between major ports and non â€“ major ports handling similar cargoes. The through put rate will increase and the cargo handling capacity will increase at no additional cost. It will be an even playing ground with same rule of competition for all ports. The decentralization of Tariff Authority will give additional powers of discretion to Chairmen of major ports, which in turn will help these ports to be become more viable, profitable, and saleable . +
As a marine Consultant I have The writer is a reputed Consultant in the port and shipping industry for the last 15 years, and is Director at Sai Techno Consultants www sai techno.com. The green field ports of Dhamra , Kattupalli, and now Angre' Port have all been recipient of his expertise in planning and operations of the ports. He can be c o n t a c t e d o n email@example.com
A Universal Port Germany's "Gateway to the World," the historic Port of Hamburg recently celebrated its 824th anniversary. Despite the current recession in global maritime trade the port reported a total throughput of 65.8 million tons in the first six months of 2012, up 2.7 percent compared to last year. In a tĂŞte-Ă -tĂŞte with SeaPorts Business, the Port of Hamburg Marketing CEO Claudia Roller, discusses the biggest challenges facing them, the port's future development plans, and what makes it a 'Universal Port.' What are the biggest challenges currently faced by the Port of Hamburg? Environmental protection and sustainable use of natural resources is one of the biggest global challenges of our times. The Port of Hamburg is committed to making its contribution. Our handling terminals rely on future-oriented technology.
Last year Hamburg was chosen as the European Green Capital 2011: Our ambitious aim: now is by 2020 our CO2 emissions should be reduced 40 percent. Since 2003 there has been an environmental partnership in Hamburg (www.hamburg.de/umweltpartnerschaft) , a network to collate and steer all climate and environmental protection activities among Hamburg's companies, involving over 800 environmentally-conscious companies and the Hamburg Senate. It
has saved more than 100,000 tons of CO2 emissions while reducing operational costs by about 16 million euros. Hamburg Port Authority (HPA) is setting a good example for sustainability. Environmental protection is as important as economic viability and efficiency. In July 2011 HPA introduced a discount on port fees for environmentally friendlier ships. Ocean-going vessels complying to environmental standards pay 10 per cent less port fees. Calculations are based on the Environmental Ship Index (ESI). Similarly, environment friendly shunting locomotives in Hamburg port with particle filters pay lower port rail fees. Currently 16 of these locomotives are operating in the port. The railway also contributes to environmental protection by using the first geothermal point-heating system in the world. Usually these points are heated electrically or by gas-powered burners to keep them free of hail, ice and snow. Our geothermal heating system uses only natural heat from the earth, avoiding emission of any CO2 caused by external heat sources.
Tell us about high points of the port's development a f t e r G e r m a n reunification Af t e r G e r m a n r e u n i f i c a t i o n infrastructure had to be modernized and rebuilt for transport connectivity to the markets of former GDR. Performance of an international transport hub like Hamburg does not depend solely on rapid handling of ships and having sufficient terminal capacities. The smoothness of pre- and on-carriage for goods is also a decisive factor. Before German reunification most GDR sea freight was routed via the seaport Rostock. Developing an
loading of a container block train at HHLA Container Terminal Altenwerder, copyright â€œHHLAâ€?
efficient hinterland infrastructure and multimodal water and land transport was first priority after reunification. The German government planned a big development programme to improve infrastructure in Eastern Germany. Port of Hamburg marketing opened representative offices in Berlin and Dresden to develop contacts to shippers in the Eastern part of Germany. The Hamburg Senate, Hamburg Port Authority (HPA) and private enterprise use multimodal rail, feeder and inland waterway ships, as well as trucking, to provide a customized transport solution for every requirement. Inland waterway is an environmentally friendly alternative for hinterland transport. Before reunification it was not
possible to use the Elbe river in direction to Dresden because it was a borderline between West and East Germany. After reunification both bulk and liquid cargoes, as well as containers and project cargo, are increasingly being transported via Hamburg by inland waterways. Many of the Elbe river ports had to be modernized where new terminal equipment allowed swift cargo transport on the river. We are now planning expansion of upper reaches of the Elbe to ensure competitiveness of this eco friendly carrier.
To what extent are your expansion plans in Hamburg geared to cope
battery driven AGV (automated guided vehicles) for container transports on the HHLA Container Terminal Altenwerder, copyright â€œHHLAâ€?
with the ever increasing growth in cargo volumes? Our port planners have always attached great importance to continued development of Hamburg as a universal port. While other ports have concentrated on rapidly growing container traffic, we ensure that a wide range of handling capacities are available to guard against fluctuations in specific market segments. A diversified port development policy framed for the long term also offers customers and companies a stable basis for sustained planning and efficient capacities for growing cargo volumes. More than 320 berths are available in the Port of Hamburg, offering space for ships of all sizes; ultra-large containerships and bulk carriers, oil and chemicals tankers, RoRo and general cargo ships, shortsea and inland waterway craft. Cutting-edge computer-controlled cargo handling technology and specialist staff ensure fast and reliable handling of cargoes at over 50 facilities. Port of Hamburg is not simply a transhipment point but also a processing and production centre of goods for recycling and scrap,
which is cleared at steel group Arcelor-Mittal at Dradenau docks. Aurubis in Hamburg-Veddel is the world's largest copper recycler and among the most environment friendly copper smelters. Two-thirds of its copper production is based on ore concentrates supplied by copper mines, while one-third derives from recycling copper alloys, copperbearing residues from foundries and hot-rolling mills, shredded materials, as well as electroplating sludge, slags, ashes and filter dust. Ranked among the world's Top 20 container ports, PoH is also optimally equipped for handling container transport. Its annual throughput stands at 9 million TEU (20-ft standard containers). Hamburger Hafen- und Logistik AG, with its Burchardkai (CTB), Tollerort (CTT) and Altenwerder (CTA) container terminals is our largest operator. All three facilities h a v e c u t t i n g- e d g e h a n d l i n g equipment. After HHLA's CTB, Eurogate Container Terminal is Hamburg's second largest container handling facility. The terminal is currently being expanded to boost annual throughput capacity from 4 t o 6 m i l l i o n T E U. N o n -
containerizable cargo, i.e., primarily heavy cargoes, outsize crates or rolling cargo, is handled at one of our specialized multi-purpose/ RoRo facilities. Along with general cargoes and containers, handling bulk cargoes is an important element sustaining the Port of Hamburg. Around 40 million tons of bulk, suction and grab cargoes, as well as liquid cargoes, are handled here every year. Berths for ore, coal and grain mega-carriers have sufficient draft to permit loading and discharging, irrespective of the state of the tide. Rain-protected handling facilities and storage spaces guarantee safe and secure handling of goods sensitive to moisture. Hamburg is one of Europe's top hubs for suction goods, with silo storage capacity totaling around one million tons. Vessels can berth directly in front of them where specialized equipment takes over loading and discharge. In addition, numerous oil companies and other firms processing liquid raw materials are based in Hamburg, along with specialized tank farms that look after transhipment and storage of such liquid substances as oil products, palm oil, alcohol, latex or chemicals.
Among firms trading in the bulk segment are the bio-diesel specialist ADM Hamburg, G.T.H. Getreide Terminal Hamburg and Silo P. Kruse with grain silos, the Kalikai fertilizer terminal, Hansaport's gigantic iron ore and coal handling facility, and Vopak Dupeg and Oiltanking's liquid goods terminals.
Tell us about multi-modal transport facilities in your port. Over long distances, environmentally friendly rail is the most important carrier in seaport hinterland traffic. Over 220 freight trains with up to 5000 railcars are cleared through the PoH every day. All cargo terminals are connected to the German rail and motorway network. The PoH Railway enables this enormous volume of rail traffic to be handled efficiently daily. It's responsible for a 305-kilometre route network used by over 100 German and international rail transport companies. Over 12% of German goods traffic by rail originates or terminates in the PoH. With rail currently accounting for over 30 % of total cargo handled by the port,
Hamburg is far ahead of its competitors and lives up to the description 'Rail Port'. In addition to rail, inland waterways is an efficient environmentally friendly carrier for runs within the port. With its DBR Container Shuttle, apart from its inland waterway traffic along German inland waterways, Deutsche Binnenreederei also organizes waterway transport between PoH main terminals. Carl Robert Eckelmann's ContainerTaxi operates round the clock in the Port of Hamburg. A container taxi can replace up to 60 truck tours and transport up to 120 containers within the port in a single barge train. With its “Projekt Venedig” (“Venice Project”), the Eckelmann Group aims to transfer even more port traffic to environmentally friendly lighters. The plans provide for a hinterland hub near Geesthacht, on the Elbe around 20 kilometres south-east of Hamburg. A kind of Park & Ride service for trucks and barges from the East is to be created here. Containers are to be loaded on to water taxis there for the approximately two-hour voyage to container terminals in the Port of Hamburg. A comparable project is
currently being implemented at Wittenberge on the Elbe, around 150 kilometres south- east of Hamburg.
What kind of logistics and warehousing facilities Hamburg offers? We have efficient freight stations for container packing and warehouse facilities for all kind of commodities. Big distribution parks are located outside the port area offering all kind of warehouse services for import cargo. Traditional commodities as green coffee, cocoa, tea and spices are handled by special warehouses offering services as cleaning, sorting, warehousing and distribution of these products, all of which are managed by private logistics companies.
What green initiatives have you launched to protect the environment from pollution caused by port operations? A good example is our investment in battery-driven AGVs. Up to now all
costs for the AGV fleet is reduced, meaning that the higher investment costs are amortized faster.
What is your outlook for maritime trade amidst the current economic slowdown?
Champagne bottle breaks on the bow of Europa 2, launched at the anniversary celebration. “Photo Hapag-Lloyd Kreuzfahrten”.
containers at HHLA's fully automatic Container Terminal Altenwerder were transported with diesel-electric AGVs. Gradual optimization over recent years has considerably reduced diesel consumption and carbon emissions. In 2010 HHLA deployed two battery-driven AGVs (B-AGV) at CTA. In the new zero CO2 emissions vehicles a traction battery replaces the diesel engine, tank and generator. To avoid long battery loading times a fully automatic battery changing station was integrated into the system, with a retrieval device in the high rack system. The B -AGV itself determines when its power is running out and goes into the battery changing station, where the discharged battery is exchanged for a fully charged one. The AGV can leave the station after five minutes. The flat batteries are automatically connected and recharged at the loading station. The B-AGVs run smoothly in daily
business transporting up to 60 tons. There is no comparable batterydriven commercial vehicle in the world with such a loading capacity. The energy in one battery can last for more than 12 hours. Energy consumption is 19 kWh per hour of operation. Above all the environmental balance is very impressive: The B-AGVs are not only much quieter than dieselelectric AGVs but also cause no local emissions. Another ecological plus point for HHLA is that the complete power supply for Container Terminal Altenwerder is certified as green electricity. Calculations have shown that a purely B-AGV fleet in comparison to a diesel-electric AGV fleet can save approximately 5.3 million litres of diesel per year and around 13,800 tons of CO2 emissions (based on an annual turnover of three million TEU). Against this background, on the one hand the environmental balance is much improved and on the other hand annual operations
A slowdown in maritime trade gives us some time to improve our port facilities, and do dredging of the Elbe connecting our port with the North-Sea and to improve infrastructure on the landside. One of the most essential tasks is farsighted implementation of port development measures to meet future requirements of the market. The new Port Development Plan provides the basis for these decisions. This takes account the repercussions of global trends on liner services in Hamburg. At the suggestion of the Hamburg Ministry of Economics, a “Port Dialogue” was launched specifically to enable demands of business, chambers, trade associations and politicians to be embodied. In workshops the longterm strategy for the port was discussed with all port related parties and decision makers. HPA plans to invest up to three billion euros in the medium term in expansion of the Port of Hamburg. Among the priority infrastructure projects are upgrading and extension of existing terminal facilities, such as western extension of the Eurogate C o n t a i n e r Te r m i n a l , a n d development of new terminals in centre of the Freeport. Under consideration is a mix of industrial, logistics and cargo handling use, with higher added value the target. Further investments will flow into modernization of the rail infrastructure, the road network and locks and bridges. +
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Robust demand for Port Cranes The current crunch in cargo handling capacity and the focus on building new ports and developing existing ones is lifting the demand for port cranes.
The new 12th Five year Plan is focused on developing India's infrastructure to global norms. Traffic at major ports is expected to grow at a CAGR of 8 per cent and at 16 per cent for minor ports, while overall traffic at Indian ports is pegged at 2,800 million tonne (MT) by 2020. The 12th Five Year Plan has proposed to invest Rs 73,793 crore when capacity of major ports will be increased to 1,229 MTPA. The Maritime Agenda 2020 has earmarked $110 billion to develop India's ports and shipbuilding industry by 2020. With estimated capacity likely to touch 2,700 million metric tonne by 2017, Indian ports have planned capacity augmentation schemes worth about Rs 1.80 lakh crore. Ports and their cargo handling infrastructure form a major component of this infrastructure initiative. Shipping Minister G K Vasan says, â€œTo meet the projected traffic of more than 1,700 million metric tonne during the Twelfth Five Year Plan, major and minor ports have conceptualized various capacity augmentation schemes at an estimated investment of about Rs 1.80 lakh crore.â€? The bulk of cargo -handling equipment at Indian ports was commissioned a long time ago and has outlived its designed lifespan. Most of their equipment is inadequate to fulfill the requirements of modern vessels arriving at Indian ports. Furthermore, the quantity and quality of container-handling equipment, including quay gantry cranes, rubber-tired gantry cranes, rail-mounted gantry cranes etc, are inadequate for handling the growing traffic at Indian ports. Moreover, the limited capacity of wharf cranes and
Commodity wise traffic Forecast for Major Ports for 2013-14 Commodity
Annual Growth (%)
Container in Million TEUs
grabs, hampers dry bulk cargohandling productivity and equipment at ports frequently break down. Most ports follow reactive maintenance procedures instead of preventive maintenance ones. Furthermore, long response times, unavailability of spares, etc all result in more downtime for equipment. Clearly the replacement cycle has come full circle.
Indian market. Some of the major names are Liebherr, Konecranes, Terex-Gottwald, ABG Cranes, Demag, etc. Indian companies include TRF Ltd, Tecpro System Ltd, Anupam Industries etc.
“With the first LHM delivered to India in 2004, the country has had a significant influence on our portfolio, over 90% of all LHMs in India are members of the heavyweight mobile harbor crane family.”
Robust Demand In view of the current capacity crunch and the new focus on developing port infrastructure to global norms the demand for all types and capacities of port cranes is going to clock robust growth. In the last five years the market for port cranes in India clocked a CAGR of 10-12 %. The market size for port cranes was estimated to be close to $ 300 million in India. Further the market is expected to grow steadily by 15 to 20%. This reflects the growth in container traffic and the subsequent huge demand for port cranes and other material handling equipments like lift trucks and reach stackers etc. Add to this replacement market and it adds up to a huge demand. Most global OEMs are present in
“With the first LHM delivered to India in 2004, the country has had a significant influence on our portfolio in terms of developing stronger cranes, bearing in mind that over 90% of all LHMs in India are members of the heavyweight mobile harbor crane family. Today, nearly 75 LHMs load and unload cargo in India. Launched in 2006 and 2010, the types LHM 600 and LHM 550 represent very popular models for highly efficient turnover in India. The strongest mobile harbour crane, type LHM 600, has a maximum lifting capacity of 208 tons and is capable of up to 1500 tons bulk turnover per hour in standard configuration.” He adds, “Approximately 90% of all Liebherr mobile harbour cranes delivered to
Sunil Kalra, Head of Port Equipment Division at global major Liebherr (India)
In India, a majority of the customers mainly opt for strong cranes, and the maximum demand is for mobile harbor cranes. Sunil Kalra, Head of Port Equipment Division at global major Liebherr (India), says,
Indian customers are operated in the four rope configuration. This highlights the importance of bulk handling for the Indian port i n d u s t r y. ” I n Au g u s t 2 0 1 2 , Krishnapatnam Port (having a fleet
Cargo First - Augment Capacity (In million tonnes) Projected 2013-14 traffic
Capacity required for
projected traffic (@ 130%) Present capacity
Additional capacity needed
of 6 x LHM 500 & 4 x LHM 600) set a new record for unloading coal using advanced Liebherr mobile harbour cranes. The state-of-the-art machines discharged 122,247 tons of coal in just 24 hours.
Smart Cranes Among the most important technology trends in port cranes are
Port Crane Types Level luffing cranes – unit handling
Level luffing cranes – grab duty
Ship and barge unloaders / loaders
Shipyard gantry cranes
Rail mounted quay container cranes
Rail mounted gantry container cranes
Rubber tyred gantry container cranes
Special purpose cranes.
safety features like anti-sway mechanisms, advanced cargo handling options, ergonomically designed operator cabins for more operator comfort. Other options available on smart cranes are mostly telematics like GPS positioning, predictive maintenance, easy MRO etc, most of which are high-end options. Most modern cranes have state-of-the-art PLC systems with user friendly interfaces. The other important tech trends are green features like lower emissions and better fuel efficiency. Kalra says, “In India both undercarriage and portal based LHMs are in operation. Generally, Liebherr's innovative strength has resulted in a number of
special features for advanced cargo handling, like Litronic (for crane control and management system), Cycoptronic (anti- sway) and Pactronic (hybrid power booster for more turnover and less fuel consumption). In 2012, Liebherr has received the International Bulk Journal 'Innovative Technology Award' for the LHM noise-control initiative, a number of technical solutions implemented for significant noise reduction. Liebherr-Werk Nenzing alone employs more than 230 technical engineers in the fields of research and development, technical design and all fields of drive technology which are continuously developing new solutions for low-
Bigger and Better Shanghai based Zhenhua Heavy Industries Company (ZPMC), recently delivered the largest cranes ever to the UK. And Terex Port Solutions' has received an order to build the largest ever crane with a capacity of up to 8,800 TEUs and nine-high container stacks! Three new giant cranes were recently delivered to new deep-sea port in the Thames Estuary, at a site near Stanford le-Hope in Essex. Owned by the
Dubai-based DP World, these quay cranes are taller than the London Eye and weigh 1,848 tonnes each, measure 138 metres in height - two and a half times the height of Nelson's column in Trafalgar Square. “The size of the cranes futureproofs the port, allowing London Gateway to handle the next generation of ultra large container ships,” said London Gateway operations director Tim Halhead. Due to open end 2013, these cranes will lift containers from some of the world's largest cargo ships onto the shore at the new
London Gateway port. Terex Port Solutions recently received an order from longstanding customer Operadora de la Cuenca del Pacifico (OCUPA) for a Terex® Gottwald Model 8 Mobile Harbour Crane in the G HMK 8410 variant, which will be the largest of its type ever built in the world. Starting from September 2013, it will load and unload vessels with a capacity of up to 8,800 TEUs and nine-high container stacks on deck. The crane will be operational at the Port of Manzanillo on the Pacific coast of Mexico. Andreas Moeller, Sales Director at Terex Port Solutions in Düsseldorf, comments on the order: “ The Terex Gottwald G HMK 8410 for OCUPA is a special variant of our largest crane model and was designed with a special geometry required for handling containers on such large vessels, taking into consideration boom length, boom pivot point and viewing height for the crane operator. As a result, the crane is an excellent example of our modular design that allows us to select the right solution to satisfy the needs of our customers and their application requirements while accounting for changing conditions.”
having very successfully operated three Terex Gottwald cranes, we are shortly expecting delivery of a new mobile harbour crane to our terminal. We were also impressed by the design of the G HMK 8410 that we have now ordered from Terex Port Solutions. With the acquisition of the largest mobile harbour crane in the world, we are staying abreast of changing handling requirements arising because our customers are sending ever larger container vessels into our terminal. We are delighted that, in Terex Port Solutions, we have found a provider of port services who addresses the special challenges facing a container handling crane for vessels with 19 container rows and provides ideal technical solutions, also with respect to delivery times.” The Model 8 variant is based on the requirements of OCUPA, it features a boom pivot point at a height of more than 34 m and a viewing height of almost 38 m. It uses diesel-electric drive technology, a 100- tonne hoist and a ten-axle chassis. “With such large mobile harbour cranes and ship-to-shore cranes in our product portfolio, we are now superbly equipped to meet the demands of all terminal types, sizes and handling philosophies of our customers throughout the world,” Moeller explains.
OCUPA Director Carlos Olivar Perez explains, “After
emission cargo handling.” Liebherr's mobile harbour cranes are unique due to their outstanding modularity with a unique undercarriage for maximum flexibility. Alternatively, the basic undercarriage can be replaced by a portal.
Increasing Productivity Indian ports need a high level of mechanization to increase their p r o d u c t i v i t y. T h i s r e q u i r e s ; multipurpose cargo berth have at least two back-up shore
cranes(quay shore cranes) or harbor mobile cranes with a minimum capacity of 30 tonnes and above (35 tonnes for containers), with the ability to fit grabs and spreaders for containers. Harbor mobile cranes are versatile in character, and therefore, can be optimally utilized for multicommodity handling. The codal life of all equipment should be only 10 years as compared to 20 years at present. Along with lift trucks it is the cranes that are the real workhorse at any modern port. Hope fully in their drive to increase output and scaling up to global norms, Indian ports now opt for modern cranes that can interface well with modern bulk carriers for rapid loading/ unloading. +
“Committed to increase customers’ productivity” Swedish crane maker Konecranes holds many patents in crane technology. An entrenched player in the global market, the company has substantial presence in India. In a freewheeling discussion with SeaPorts Business, its India Head Saeesh Nevrekar talks about their India strategy and the cutting edge technology introduced in this market.
What is Konecranes outlook for the Indian market, considering the new focus on developing Indian infrastructure (ports) and adding material handling capacities at new ports. Indian Ports are the gateways to India's international trade by sea and are handling over 90% of foreign trade. The Indian ports sector is poised for significant growth driven by new manufacturing and power projects and higher cargo traffic at ports. Increase in containerized trade coupled with the Government's active initiatives to
develop the Indian ports sector, is expected to further boost the growth. Many private ports also came into operation to cater the increasing container traffic at Ports. Konecranes has a long history of innovations and is in the business of cranes for more than 80 years. We have a wide range of products for all material handling needs at ports. We are committed to help our customers to increase the productivity of their operations with the lowest possible total cost of ownership, and in economically sound and safe way. We have also developed a dedicated team of service professionals for service and modernization of port cranes. For lift trucks and reach stackers, we provide services for maintenance, refurbishment and modernization of all brands. Apart from this, we also conduct maintenance training programs and driver training programs for customers. Our service engineers are trained at Konecranes' Sweden factory for lift trucks business e x c l u s i v e l y. We a l s o o f f e r maintenance to complete operational contract to customers
Tell us about cutting edge technology brought into India by Konecranes. Konecranes has always believed in innovations. We have many patented innovations to our credit; to name a few are electric load sway damping, electric RTG wheel turning, active load control system for yard cranes, electro mechanical load control system for STS and many more. Recently Konecranes launched the world's first hybrid reach stacker the SMV 4531 TB5 HLT for container handling, with a lifting capacity of 45 tons. It features a hybrid diesel/electric driveline, electrified hydraulic lifting system, and a super capacitor based energy storage. This innovative lift truck will cut fuel consumption and emissions by atleast 30% while offering improved performance, acceleration and response to driver's command. Konecranes also launched the new 'Hybrid Power Pack' technology. Hybrid Power Pack turns a fully-
diesel RTG into a diesel/electric hybrid RTG. Whenever possible, the crane is operated with electrical power drawn from the energy store. Like a hybrid car, it takes the energy generated during braking and converts it into electricity to recharge the batteries. Depending on usage, this solution can significantly reduce diesel fuel costs. Put another way, the RTG can operate much longer on a tank of fuel.
Which types and capacities have maximum demand. There is a good demand for STS and RTG cranes in India and mostly all the equipment manufacturers are from Europe and China. Konecranes supply complete range of material handling equipments for ports like STS, RTG, RMG, ADG Bulk Unloader, Reach Stackers, Forklift Trucks, Straddle Carriers, and Automated Stacking Cranes etc. +
Slow steaming to escalate The freight rate war currently taking place between Asia and Europe, and between Asia and the US, and the further addition of new ships, will force carriers to resort to more slow steaming. Although slow steaming continues to be a contentious issue with shippers, more is on the way as fuel prices remain stubbornly high and ocean carriers can no longer absorb the bill due to the parlous nature of their finances.Drewry believes that ocean carriers are losing money at present due to the freight rate war taking place in the east-west trades, and they are still confronted with surplus capacity. At the end of April, there were still another 31 ships over 10,000 teu due for delivery this year, and carriers are running out of places to hide unwanted 8,000 teu vessels cascaded out of the Asia-Europe tradelane. Cargo growth between Asia and the US is insufficient, as it is between Asia the East Coast South America, which means that either more vessels will have to be laid up, or further slow steaming introduced. The latter is the most logical, particularly as it was difficult to justify throughout most of last year due to freight rates being so high. But with east-west freight rates now
plummeting to sub-economic levels again, ocean carriers can return to the view that 'shippers get the service they pay for' by further releasing pressure on their vessels' accelerators. They have a wide margin to play with, as shown in the following tables of the three fastest and slowest services from Asia to Northern Europe, and from Asia to the West Coast North America.
carrier supply pressures Attempts by carriers to tackle the capacity overhang are being undone as new orders for Ultra Large C o n t a i n e r Ve s s e l s ( U L C V s ) continue to make the headlines, according to Drewry's monthly report Sea & Air Shipper Insight. The news that China Shipping
Bunker prices in Rotterdam (IFO $/ton)
Note: *Jan-April only Source: Drewry Maritime Research
Container Lines will join Maersk in the super-size containership club following board approval for five 18,000 teu ships is further proof of the demand for these fuel-efficient ULCVs among the major lines – it is just a question of when and how
many will make the leap. However, while these latest new orders won't actually hit the water for years, their psychological impact is to keep the focus on capacity and the big question of how on earth carriers will be able to absorb it all. “Ocean carriers did a decent job over the winter months balancing supply to ensure that freight rates remained relatively firm, but the delivery of big new ships – leading to new services and upgrades of existing loops – will mean lines will find that task increasingly difficult for the remainder of 2013,” said Simon Heaney, Research Manager, Drewry. “These new orders and speculation of more to come could be having a negative impact on rates right now. Carriers cannot shift the paradigm from the supply pressure they are facing so that they can get rates moving upwards again,” added Heaney. In the here and now, ocean freight rates are tumbling with Drewry's
Drewery View Further vessel reductions between Asia and Europe and between Asia and the US, should be expected soon. It will result in longer transit times, but schedule reliability should improve due to the greater opportunity for making up lost time. East-West Index contracting by 5.6% month- on-month in March. Similarly, air freight rates fell in March following February's shortlived recovery as the traditional spring season sales rush in Northern hemisphere markets failed to materialise. Drewry's East-West Air Freight Price Index slid 5.3 points in March to 96.9 points, weighed down by sharp falls in pricing from Shanghai to both North America and Europe. Compiled from Drewery Martime Research press releases. +
IWT Gateway to the
The state of West Bengal is an excellent example of untapped potential and gross neglect of ports, both on the Bay of Bengal and inland riverine ports along the Hoogly and its tributaries.
Time was when the Kolkata Port was a focal point of sea borne trade in India in the 19th Century. Thanks to the East India Co. this port was an entry point for all their cargo destined for the northern hinterland, and Eastern and Southern regions of India. Inspite of having a major port, substantial coastline, and a river system that runs deep into the hinterland this State still doesn't have a Maritime Board. While the Central Government and the Shipping Ministry should have launched major intiatives to develop this state's maritime transport to its full potential a long time ago, part of
the responsibility and onus also lies on the State government. The Finance Minister P Chidambaram has announced a Greenfield port project at Sagar Island in the Budget 2013. However feasibility of this project needs to be looked into considering the fact that the proposed deep-draught port project has been put on hold for an indefinite period owing to the current financial situation of Kolkata Port Trust (KoPT) and the adverse technical feasibility reports on the proposed port submitted by RITES.
Major Ports Port of Kolkata is a riverine port in the city of Kolkata, it is the oldest operating port in India, having originally been constructed by the British East India Company. The Port has two distinct dock systems Kolkata Docks at Kolkata and a deep water dock at Haldia Dock Complex, Haldia. After independence its importance decreased because of factors including the Partition of Bengal (1947), reduction in size of the port hinterland and economic stagnation in eastern India. The port has a vast hinterland comprising the entire Eastern India including West Bengal, Bihar, Jharkhand, UP, MP, Assam, North East Hill States and the two landlocked neighbouring countries namely, Nepal and Bhutan.
Trouble began when experts questioned the feasibility of a port facility with jetties on the western flank that was open to stronger currents and rough seas. It was pointed out that the purpose of reclaiming land would be destroyed if an impounded dock system had to be created there by dredging through the silt that had been dumped. The experts suggested that RITES explore the possibility of setting up a port on the eastern flank where land was already available. Most importantly the Hoogly delta area has plenty of excellent sites to build revirine ports and jetties to enable use of the river systems as inland water ways to access the northern and eastern hinterland where most of the cargo arriving into Kolkata is destined for. Existing water ways are restricted to stretches of Ganga-Bhagirathi-Hooghly rivers; the Brahmaputra river into neighboring Assam. The stretch between Kolkata-Haldia and Farakka is navigable because of the lock gate system of Kolkata port and the IWAI lock gate at Farakka, which ensures water
availability downstream to Kolkata. The stretch further upstream from Farakka to Patna is navigable though the depth available is only about 4 to 4.5 m during the winter. During the summer when the Ganges is in full flow causing floods in the region, the depths are more rising upto 10-12 m. National Waterway 1 is on the GangaBhagirathi-Hooghly river system from Allahabad to Haldia (1,620 km), it was declared as National Waterway in 1986. To provide an impetus to the development of inland water transport mode, an 'Inland Water Transport Policy' which includes several fiscal concessions and guidelines for encouraging private sector participation in development of infrastructure and ownership and operation of inland vessels. IWAI is also authorized for joint ventures and equity participation in BOT projects especially for coal fired power plants along the Farakka barrage upriver all the way into Assam. However so far few private players have showed keen interest such BOT ventures.
Diamond Harbour was considered a safe resting spot for ocean going ships and offered a spectacular view of the river. It seems the East India Company built it before they could establish themselves in Kolkata. It is well connected with Kolkata by road and rail. Due to its proximity to Bay of Bengal, there is scope for development of ports and shipping activity. The Falta SEZ is also in this area. It has a container-handling jetty. The Government of West Bengal proposes to construct a minor port at Kulpi with facilities for handling containers. As large ocean going ships with full load of goods cannot enter the river ports at Kolkata and Haldia, the need for a seaport in the area has been felt for a long time. Such a future port would obviously be located south of Diamond Harbour but would enhance the importance of the place as a base for the port. The Kolkata Po r t Tr u s t i s c o n s i d e r i n g construction of cargo handling jetties at Diamond harbour. + l
â€œWe are committed to sustainable developmentâ€? India's premier port once upon a time, Kolkata Port is now struggling to compete with other ports on India's east coast. However, it continues to be a gateway to Nepal and India's NorthEastern region. Prolonged neglect by the State and Central governments has made this port almost dysfunctional now. The Chairman of Kolkata Po r t Tr u s t , R . P. S . Kahlon, I.A.S, discusses with SeaPorts Business the steps being taken to restore it to its former glory. What is your action plan for the development of Kolkata Port? A. Sixty seven years ago Kolkata Port was the premier port of the country, accounting for nearly 50% of the sea-
borne traffic of independent India. However, there is a sea-change now and rapid industrialization in western India has outstripped Eastern India. South India has also forged ahead. Many new ports have been established along the west and
east coast. Today, we find a very complex situation of competition. To meet the changing scenario, the Kolakata Port Trust (KPT) has resorted to innovative ideas including development of new port facilities at
the deep-drafted locations in the river on PPP basis for handling cargo. The most important is development of transloading facilities at Sandheads and its vicinity for midstream handling of dry-bulk cargo in an integrated manner with construction of a riverine terminal, viz. Outer Terminal-I at Haldia. We are presently awaiting decision of the A p e x C o u r t o n Te r r i t o r i a l Jurisdiction of Kolkata Port. However, as directed by the Court, steps have been taken for an amicable settlement by the parties, viz., Kolkata Port, Ministry of Shipping, Govt. of West Bengal, Govt. of Odisha, etc. and the matter is expected to be resolved shortly.
rail-cum-road bridge over Muriganga river, a Feasibility Study was entrusted to M/s. RITES Ltd., who have since submitted the final report. The initial potential of the project would be 54 million tonnes and handling of fully loaded panamax vessels is being planned. Recently a presentation on this project was made before the Finance Minister by the Ministry of Shipping. The project is presently awaiting clearance of the Central Cabinet.
Also, KPT is developing berth facilities at Haldia Dock-II (Shalukkhali) with a capacity of 23 million tonnes. RFP for this project has already been issued. A dedicated Container Terminal is going to be developed at Diamond Harbour with a capacity of 1.2 million TEUs, whose RFQ has already been published.
To maintain the navigational channel throughout the year is our major challenge. Like all riverine ports Kolkata has to endure certain perennial problems. River Hooghly is notorious for its â€œtraps and treacheriesâ€? and there is a constant struggle with nature to keep the channel from the sea to the Port open to navigation throughout the year. The Hooghly channel is plagued by 3 Bs â€“ tidal bars, the bars which come up as a result of siltation, the bends in the river and bores which create problem of silting.
For establishing port facilities at Sagar Island including rail-road connectivity and construction of a
Increasing navigable depths artificially through dredging is an unavoidable necessity of all ports.
Dredging necessity is more pronounced in case of riverine ports like Kolkata. Hardly any port in the world is saddled with the responsibility of maintaining such a 232 km long channel. The route from Kolkata to Sandheads is fraught with 17 bars and a number of crossings. Due to rationalization, man-power of Kolkata Port Trust has been reduced to 7500 from 45000 in 1960s. Still in national and international standard man-power is quite high which needs further rationalization. For considerable period of time cordial industrial relations has been maintained in Kolkata Port which is reflected by the fact that in 2012-13 not a single manday was lost at KDS & HDC which is undoubtedly a significant landmark for a labour-intensive organization like KPT. I should admit that with the cooperation from the labour unions, port users and the workers at large, remarkable improvement has been achieved in maintaining cordial industrial relations in Kolkata Port during last few years.
What is your road map for the port in the next 5 years?
quality in its neighborhood. These include:
Following the success stories of other international ports with constraints similar to Kolkata like ports of London (Tilbury & Maplin), Rotterdam (Euro Port), Bremen (Bremerhaven), Hamburg (Cuxhaven), Baltimore (Dundalh Bay), Philadelphia (Delware Bay), Shanghai (Yangshan), et al, we are going to construct new installations lower down the river or closer to deep water areas involving an investment of around Rs.12000 crores through PPP/allied partnerships. These include development of Haldia Dock-II at Salukkhali, transloading facilities at Sandheads and vicinity for midstream handling of dry bulk cargo in an integrated manner with construction of a riverine terminal (Outer Terminal-1) outside the Lock Gate at Haldia Dock and last but not the least development of a dedicated container terminal at Diamond Harbour on the east bank of Hooghly. With these facilities in place, the projected cargo as forecasted by RITES, will increase to 96 M.T. by 2019-20. Setting up of these facilities will also reduce dependence on existing low draft dock systems, thereby decreasing the expenditure on maintenance dredging.
For improved collection of shipgenerated garbage, shore bins alongside berths of KDS were modified into compartments to receive different categories of shipgenerated garbage. An oily water treatment plant is also available at KPD, which can treat oily bilge/slop water from ships visiting KDS. At Haldia a ballast water treatment plant has been installed at a cost of Rs. 8 crores. Two oil jetties are connected to this plant. This plant is comprised of two 6300 KL slop tanks with skimmers, tilted plate interceptor, dissolved air-floatation unit, centrifuge etc. It treats oil contaminated ballast water crude oil washings from tanker- ships, which otherwise may enter into the marine environment resulting in oil pollution. Both these plants not only reduce pollution but also conserve valuable petroleum. These plants were installed following the norms of MARPOL (73/78).
What green initiatives has KoPT launched to address environmental concerns? With increasing emphasis being laid on the environment, KPT has launched systematic programmes to keep the environment clean and green. Several clean technologies have been used to mitigate pollution problems within the port and measures have been taken up for improvement of environmental
Compliance of MARPOL 73/78
To ensure stoppage of liquid effluent discharge tino Hooghly river, sewerage generated from KDS area are mostly discharged to KMC Sewerage System. Wherever KMC Sewerage System is not available nearby, KDS has constructed septic tanks and soak pits for disposal of its sewerage. A sewage treatment plant is also operational at 1 NSD to treat wastewater generated from NSD and its nearby offices and colonies. An integrated sewerage system and a sewage treatment plant is in operation for the Haldia Township of HDC. No untreated sewage is allowed to be discharged from port premises into the Hooghly river. l
Cleanliness of Dock Basins
Since docks are connected to river
through lock entrance, every time lock is operated a portion of dock water gets mixed in the river. Accordingly, immense importance is given to maintaining dock water quality. Regular cleaning of flotsams including oil from dock basins are also undertaken especially at lock gates and its adjoining areas to avoid any pollutants going outside the lock gates to pollute river Hooghly. At the moment, Dock water quality of KDS is regularly monitored on a monthly basis by the regulatory authority and found to comply with relevant standards. Dock water quality of Haldia Dock is also regularly monitored. No ships, barge, boat owners etc. are allowed to use their own toilet facilities. Provisions of adequate toilet facilities within operational areas have been made for port users and with the assistance of renowned Sulabh International. l
Anti Pollution Vessel
To combat accidental spillage of oil from dock basin/river two antipollution vessels APV Dharampal and APV Pratapaditya were procured and are operational, one each at KDS and HDC. Both are fitted with oil skimmers for separation of oil from water, oil storage and spraying nozzles etc. for combating oil spillage. These vessels are also capable of removing floating debris from dock basin. Cost of each vessel is around Rs 1.5 crore. l Pollution Control at Shipbreaking Industries
Ship-breaking activities at KDS could generate environmental pollution and pose health hazards, so these activities are scrupulously monitored to mitigate environmental pollution from ship breaking activities. Different categories of hazardous wastes are generated from these activities
which are handed over to West Bengal Pollution Control Board approved agency for safe disposal. Waste and oily wastes generated from ship breaking are handed over to registered re-refiners having approval of Central Ministry of Environment & Forests. Any kinds of waste waters generated from these industries are not allowed to discharge into dock basins, as it may contaminate Hooghly water. l
Hospital Waste Management
To avoid spreading of communicable diseases, bio-medical wastes are segregated, labelled and stored in different containers as per rules and handed over to approved agency for proper treatment and disposal. l
River Front Development
With a view to improve the aesthetic value and environmental condition of the Hooghly river front, KPT had joined with KMDA for the beautification of the area covering Princep Ghat to Fairlie Place. In its portion, from Princep Ghat to Outram Ghat, KPT had beautified the area with various trees, repairing of the ghats, adequate illumination of areas etc. Apart from this, different ghats along the river Hooghly are either maintained by KPT or handed over to KMC or
KMDA to improve their environmental condition. Dakineswar Ghat- a key holy centre has also been renovated to improve its aesthetic value. l
KPT has launched a massive afforestation drive since 1990. It is pertinent to mention that Kolkata Docks and its adjoining areas are already sufficiently developed with little space available for new plantation. However, certain areas like container terminal, along side roads within the area, were utilised for plantation. To expand this green cover expert services of Forest Department have also been availed. Vacant areas in the younger dock system at Haldia has also been utilised for plantation purposes. Since 1990 our massive aforestation drive has planted over 4.2 lakh trees at Haldia. The Nayachar Island located opposite Haldia Dock within the river has been the centre of intensive river training and afforestation activities. Major mangrove, which has been planted and successfully stabilised in the area are Keora, Bain, Kakra, Passur, Garan Garrjan etc. These species has special characteristics such as viviparous germination, knee roots, salt glands
etc., which not only upgrades environment but also acts as a nourishing ground for different aquatic species, reduce soil erosion and harbours different varieties of species in the area. Thus these help to improve bio-diversity within the riverine ecosystem and also help for stabilization of river bank. These species include Jhau, Babla, Akashmoni, Tentul, Jarul, Arjun, etc. Total number of mangrove and its associate trees available on the island exceed 13 lakh. l
KoPT has taken different measures to mitigate energy wastage by taking different measures which includes engine maintenance of tugs, proper planning & use of tugs and others machineries. Electricity consumption has also got reduced by taking different measures including changing of ordinary bulbs with CFL. Different measures were taken to mitigate pilferage of electrical energy. KPT's aim is slow but steady development. Development has always planned without compromising ecology or economy of the hinterland of our port. We are always committed to sustainable development. +
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