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Oct-Nov 2012

SeaPorts BUSINESS

connecting global wealth creators

Vol. 1 Issue 1

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FACILITATING SHIPPING & MARITIME COMMERCE

Capacity Addition Best Solution to Meet Rising Demand - JNPT Chairman L. Radhakrishnan

Shipping Industry Heading for Better Times - Shipping Corporation of India, CMD S. Hajara

a us Foc rashtr ha Ma ts Por

INSIDE IPPTA - PPP a Success in Port Sector Italian Ports - Future Partners US Trade Mission - Offering Services GeNext Tech - Global Terminal Software

India on Mission Mode‌

Ports & Shipping Get Massive Makeover


Issue n This

COVER STORY

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JNPT Capacity Addition Best Solution to Meet Rising Demand

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SCI Shipping Industry Heading for Better Times

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Tuscany Team Arriving in Sept for Talks & Tie-Ups

Italian Ports Future Partners of Indian Port Sector !

Distributed by: New Media Communication Pvt. Ltd. Managing Editor: Satya Swaroop Directors: B.K. Sinha, Kamaljit S. Group Editor: Dev Varam Executive Editor & COO: Bipin Kumar Sinha Maritime Correspondent: Wilfred Moraes Brand Manager: Nachiket Basole

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INSIGHT

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Founder Chairman Late Shri R.K. Prasad

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COVER STORY

Interview

SeaPorts BUSINESS

IPPTA PPP a Success in Indian Port Sector

Pune: Jagdish Khaladkar, Regional Director, Mobile: 098230 38315 Email: pune@newmediacomm.biz j.khaladkar@gmail.com

FOCUS

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US Trade Mission Maritime Firms Keen to Offer Tech & Services

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PRESENTATION

GeNext Tech Future of Container Terminal Software – 2012 & Beyond…

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SeaPorts BUSINESS


Editorial

Dear Reader, Greetings and welcome to the inaugural issue of 'SeaPorts Business, India's first comprehensive magazine offering in-depth information and analyses covering all aspects of the ports and shipping sectors and allied services. The bimonthly magazine is brought out by New Media, India's largest bilateral trade magazine publishing house, to meet the growing demand for information in the key sectors of ports and shipping which are being expanded and modernized on a massive scale, involving huge domestic and foreign investment. The cover story provides a wide canvass of the government's policy initiatives spelt out under a 10-year Maritime Agenda involving a $110-billion package to promote public-private-partnership (PPP) ventures in ports and shipping sectors in a bid to corporatize them to improve their efficiency and services. In an exclusive interview Jawaharlal Nehru Port Trust Chairman L. Radhakrishnan talks about various on-going projects and says that capacity addition is the solution to rising demand. The shipping industry the world over is still sailing in rough waters due to continuing recessionary conditions. But, in a face-to-face talk, S. Hajara, Chairman and Managing Director of the Shipping Corporation of India says, is hopeful the tide will turn for the better from mid-2013 onwards. The PPP initiative has been more successful in the port sector than anywhere else, says S. Kulkarni, Secretary-General of the Indian Private Ports & Terminals Association (IPPTA), in an interview. India's port sector reforms have prompted the US Government to send its first-ever Port and Maritime Technologies Trade Mission, headed by Under Secretary of Commerce for International Trade Francisco Sanchez to this country to explore opportunities for joint ventures. We carry an interview. The Italians are already in India looking for avenues and a team of experts from the Port Authorities of Tuscany is arriving in India shortly to discuss potential joint ventures. Marco Bennici of Toscana Promozione gives details. Richard Butcher, a port technology expert, makes a presentation on the future of container terminal software 2012 and beyond. Mark Miller provides an analysis of the container markets, especially those in India and Asia. We have a special section on Maharashtra ports and the issues affecting them. The magazine carries curtain raisers on forthcoming events, both local and global in the ports and shipping sectors. We trust the rich and varied fare that the inaugural issue of SeaPorts Business offers lives up to your high expectations. Wish you happy reading

Bipin Sinha Executive Editor

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SeaPorts BUSINESS


Set up in 2003, as a non-profit industry association, under the Indian Societies Act, for development of the port sector.

Message I am glad to note that New Media is launching its bimonthly magazine, ‘SeaPorts Business’. For the past few years, the port sector in India has been witnessing two parallel developments. While more and more terminals at the 12 Major ports, under the Central Government's control, are being privatised through the PPP mode, the nine coastal States have drawn up ambitious programmes for developing greenfield/brownfield ports and jetties (typically called minor ports) under their jurisdiction. A lot of activities are simultaneously happening all around the coast as well as in the hinterland, where large CFSs are being set up. Unfortunately, authentic information on a 'real-time basis' is hard to come regarding all these developments. All the players connected with the maritime sector are continuously on the lookout for correct source of information. A publication from the New Media stable is expected to fill in this gap. Any nation's economy cannot flourish without a robust transport infrastructure. Likewise every industry constantly needs information on the various modes available for their cargo movement. It is hoped Sea Ports Business magazine will be able to provide all such data about the shipping sector. I convey my warm greetings and best wishes to the New Media team. Happy reading! Shashank Kulkarni Secretary General


Cover Story

Indian Ports

By Dev Varam Group Editor

India, an ancient maritime nation is redefining its 21st Century priorities through a massive multibillion-dollar makeover of the country's ports, dotting a coastline stretching up to an incredible 7,517 km and strategically located on the world's shipping routes. A nation whose sea trading traditions could be traced back to thousands of years, has now thrown open its floodgates to foreign and domestic private investment to modernize and expand infrastructure at its major and minor ports, involving at an estimated cost of $ 110 billion.

Onto Massive Maritime Makeover Policy-makers in the Government are aware that in a trade-driven, globalized world, ports play a massive role in a nation's overall economic development; today as much as 95 percent of India's international trade in terms of volume and 70 percent in terms of value is carried out through maritime transport. Trade by sea is likely to grow exponentially in the years to come and port infrastructure has to be improved to match international standards. A 10-year perspective plan, known as Maritime Agenda 2010-2020, intends to develop the Indian ports' annual capacity to 3,200 MT by 2020, up from 1.500 MT in 2012. The port sector under the new plan would invest US$66 billion, the bulk of which is expected to come from private investors. The main features of the new plan are:

• To increase India's share in global ship building to 5 per cent from the present 1 per cent • To increase the share of Indian seafarers from 6 - 7 per cent to at least 9 percent in the global shipping industry by 2015. The Maritime Agenda envisages construction of two new ports, one on each on the east and west coast and substantial upgradation of four of the 13 existing major ports; these will be Nhava Sheva, Cochin, Chennai and Visakhapatnam. Union Minister for Shipping G.K. Vasan said recently that the Ministry of Shipping, alongside the development of major ports, has advised all the Maritime States to set up Maritime Boards as part of the Government's initiative to give a fillip to non-major ports. India has as many as 176 nonmajor ports located in the country's

• To create a port capacity of around 3,200 MT to handle the expected traffic of about 2,500 MT by 2020 • To bring ports at par with the best international ports in terms of performance and capacity • To increase the tonnage under the Indian flag and Indian control and also the share of Indian ships in our EXIM trade • To promote coastal shipping as it will help in decongesting our roads and is environment friendly G.K. Vasan, Minister for Shipping

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SeaPorts BUSINESS


Cover Story nine maritime states. According to Vasan, the governments of all coastal States in the country have been requested to explore the possibility of setting up of a new major port or new ship building yard or as a composite port-cum-ship building yard and submit a comprehensive proposal. So far, proposals have been received from the State governments of Andhra Pradesh, Karnataka, Kerala and Gujarat, Vasan told Parliament. Vasan said that at various meetings of the Maritime State Development Council, held under the auspices of the Union Shipping Ministry, the governments of maritime States have also been advised to set up State Maritime Boards as they facilitate development of the maritime sector. Gujarat, Maharashtra and Tamil Nadu have already set up State Maritime Boards. The Maritime Agenda envisages private sector participation and foreign direct investment (FDI) in the country's port infrastructure development. For instance, a 100percent FDI (foreign direct investment) is allowed under the automatic route for: • Leasing of existing assets of ports • Construction/ creation and maintenance of assets such ascontainer terminals bulk/ break bulk/ multi-purpose and specialised cargo berths, warehousing, container freight stations, storage facilities and tank farms, cranage/ handling equipment, setting up of captive power plants, dry docking and ship repair facilities • Leasing of equipment for port handling and leasing of floating crafts

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• Captive facilities for port based industries All the 12 major ports have given out terminals for privatization, in a paradigm shift in the policy governing the maritime industry and the Shipping Ministry has begun corporatization of the country's major port trusts. Mumbai's Jawaharlal Nehru Port Trust (JNPT) is among the first to be corporatized. The move is expected to vastly improve the efficiency of port management, through removal of bureaucratic hurdles. An efficiently managed sea port reflects a nation's business ethos. It deploys, high-tech, state-of-the-art equipment to handle export-import cargo traffic. It employs well-trained manpower, supported by an infrastructure that expedites the movement of goods. Overall, India's maritime industry aims to move in that direction. Under the Maritime Agenda, the Government expects the private sector, both Indian and foreign to play a far bigger role in the country's maritime infrastructure building. Already private players managing the non-major ports have made a significant contribution to cargo handling. In 2009-10, nearly 34 percent of the total Indian cargo was handled by non-governmental terminals, up from 27 percent in the previous year. The government expects the private sector non-major ports to handle 50 percent of the nation's cargo by 2015, as compared to a mere 5.0 percent a decade ago, a huge 10-fold increase.

S. Kulkarni, Secretary General, IPPTA to 40. He expects the ratio to reverse to 40:60 in due course. JNPT Chairman L. Radhakrishnan, says that the non-major ports are envisaged to grow much faster than major ports so that they can create a capacity of around 2/3rd of the total Indian capacity by 2020. However, though the major ports may grow at a slower rate, this rate will be very much higher than the rate of growth of ports internationally, he told SeaPorts Business in an interview. No doubt, the existing port facilities and infrastructure are overstretched and struggling to cope with the country's growing cargo traffic. Radhakrishnan, who manages India's most modern Jawaharlal Nehru Port, says that despite

According to Shashank Kulkarni, Secretary General of Indian Private Ports and Terminals Association (IPPTA), cargo handling by the state owned 12 major ports and the non-major ports is in the ratio of 60 L. Radhakrishnan, Chairman, JNPT

SeaPorts BUSINESS


Cover Story recessionary conditions in shipping affecting port operations in general, the demand, as far as JNPT is concerned, still far outstrips its capacity.“Therefore, adding of additional capacity is the solution,” he says. Even as the port development is getting serious attention from the government and private players, there is an urgent need to augment the national shipping tonnage to cope with the country's growing international trade. Currently, India has one of the largest merchant shipping fleet and is ranked 16th among the maritime countries. According to S. Hajara, Chairman and Managing Director of the state-owned Shipping Corporation of India, the national tonnage, at around 17 million DWT, is just about one percent of the world tonnage. “I would say definitely, India as a country, should aspire to have much bigger tonnage. Now that the prices are at the rock bottom, it is the best time for acquisition,” Hajara told SeaPorts Business in an interview. Bulk of the private domestic investment and foreign direct investment (FDI) has flown into the port infrastructure projects being built on the public-private-

S. Hajara, CMD, Director, SCI partnership mode. According to the Department of Industrial Policy and Promotion (DIPP), Foreign direct investments (FDI) flows into Ports in April 2000 - January 2012 stood at US$ 1,635.08 million, In 2010-11, the Ministry of Shipping fixed a target of 21 projects under PPP (Private- Public-Partnership) for the major ports out of which two projects have been awarded so far at Tuticorin Port and Ennore Port. SCI's CMD S. Hajara has welcomed port infrastructure initiatives by the Government but expressed reservations about implementing them under the PPP mode. “We welcome the infrastructure development and capacity building, in any way. The Government's stand today is that everything should happen through Public-PrivatePartnership (PPP). Even in the

major ports, all the terminals and maritime capacity addition should be through the PPP mode, which is good in a way. It is a good policy. But at the same time, PPP requires huge private investment. And sometimes, infrastructure development is far more difficult to enthuse the private promoters to invest money. If you look at China, which is not a comparable country, infrastructure could be built there in a dramatic fashion because it was done entirely on a central basis. It was totally the Chinese Government's initiative and its investment,” Hajara said. “Regarding building infrastructure through the PPP mode, we do recognize and we do appreciate the government's constraints. But at the same time, normally, capacity building, infrastructure augmentation through the mode PPP may be a much slower process than if the Government could have considered implementing it by itself,” he added. However IPPTA’s Kulkarni says that the PPP initiative has been more successful in the India's port sector than in the other areas of the country's economy. “Of all the sectors of the economy, ports have succeeded in attracting investment in the commercial infrastructure of the sea ports,” he + added.

Book Your FREE COPY!! We invite bona fide representatives/office-bearers of trade and industry associations, Government and Maritime Institutions dealing with Sea Ports, Logistics, Agents, Warehouses, ICD's, Freight Stations, etc. for their complimentary inaugural issue of SeaPorts Business Magazine You may contact: Nachiket Basole at: +91-9867312834, 022-29250690/29201999 E-mail: nachiket@newmediacomm.com

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SeaPorts BUSINESS


Cover Story

JNPT

Capacity Addition Best Solution to Meet Rising Demand • TAMP Norms Review under Govt Study • Containerization Scope Great in India • Work to Begin on SEZ in 18 Months

L Radhakrishnan, Chairman - JNPT

Despite recessionary conditions affecting the major ports the world over, India's largest and most modern port - Jawaharlal Nehru Port is in a happy position with demand outstripping supply. Adding more capacity is the only solution, says JNPT Chairman L. Radhakrishnan. In an exclusive interview with Wilfred Moraes of SeaPorts Business, Radhakrishnan talks about issues ranging from JNPT's financial performance to expansion plans, to JNPT's environmental concerns. Excerpts.

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With the shipping industry still sailing through troubled waters due to recessionary conditions, what is the overall outlook for port operators the world over and JNPT in particular? It is true that recessionary conditions have impacted ports the world over. However, in India the impact has been far less considering the high capacity utilization that was existing earlier, particularly in the major ports. Only in the case of some cargos which were stopped from export/import due to policy decisions, like iron ore (export), certain ports specializing in such cargo have been badly hit. As far as JNPT is concerned, the demand still far outstrips the capacity of JN Port. Therefore, adding of additional capacity is the solution. Also removal of the regulatory risk

being faced by the private terminal operators will motivate them to add capacity. This can be achieved at a fraction of the cost that would be needed to be spent for capacity addition through new terminal construction.

JN Port handled record cargo traffic of 65.73 million tonnes in 2011-12. Going by the performance in the first four months of the current year, what is the outlook for 2012-13 as well as targets set for the years to come, if possible? The first four months' performance has been very encouraging, despite the reductions in throughput by one of our main private partners due to downward reduction of tariffs by the tariff regulator. JNPCT, our own terminal, has

SeaPorts BUSINESS


Cover Story more than made up for the shortage on this account and overall the Port has performed better in the first four months of this year, as compared to the first four months of the last year.

Please also give us the financial performance targets you have set for 2012-13 It is very difficult to set any financial performance targets in a time of policy uncertainty as regards tariff regulation. As of now, our biggest source of income, the revenue share of M/s GTIPL, has been slashed by over 44 percent with effect from February 2011 and the other partner M/s NSICT has reduced their throughput, hit by a 28.8 percent reduction in their tariff. The Government of India is examining the feasibility of modifying the guidelines to TAMP and M/s GTIPL has also agitated this issue before the Bombay High Court. Therefore, it can only be said that if status quo ante as regards pricing in 2011 is maintained, JNPT could have obtained a net profit of over Rs.1000 crores this year. But under the current circumstances it is not possible to make a projection until clarity emerges.

JNPT handled 4.32 million TEUs of container traffic in

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2011-12 and you have set a target of 10 million TEUs of containers by 2015-16, which is more than double the performance. Would you be able to achieve the target? The target is not for performance, but for total capacity. If the 4th container terminal and 330 mtr. Extension are built without further delay, these are certainly achievable. However, that depends on how fast M/s PSA would complete the construction and on the time-line for the final outcome of the litigation in respect of the 330 mtr. berth extension project

Will expansion of container capacities the world over and containerization of more and more commodities and goods

further push up their handling by ports, including JNPT? The scope for containerization is far greater in India as compared to the other countries, since in India a lot of containerisable cargo is now being sent as general cargo. Besides, since the GDP growth in India is much higher than the world average, trade can be expected to grow at a much faster rate, leading to the generation of more exports and imports. Both of the above will ensure that the container segment will be probably the fastest growing segment in Indian ports.

The share of non-major ports is increasing at a very fast rate with analysts estimating it to grow by 40 percent in 2011-12 from 35 percent in 2010-11. Will

SeaPorts BUSINESS


Cover Story such a growth have any impact on major ports, such as JNPT in the future? The non-major ports are envisaged to grow much faster than major ports (even as per the Government of India's strategy indicated in their Maritime Agenda), so that they can create a capacity of around 2/3rd of the total Indian capacity by 2020. However, though the major ports may grow at a slower rate, this rate will be very much higher than the rate of growth of ports internationally.

Port capacity expansion is part of the Government's Maritime Agenda. Could you talk about JNPT's ongoing projects of expansion, etc. What is the progress of the JNPT project to deepen and widen its existing channel to accommodate up to 14 mtrs. draught vessels using tidal window? JN Port's projects for expansion are as follows: a.

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Extension of berth by 330 mtrs. (Rs. 800 Crores-0.8 million TEUs per annume) by 2014.

Oct-Nov 2012

b.

4th Container Terminal:- The 4th Container Terminal will be executed by M/s. PSA : • Phase I (Rs. 5200 Crores with capacity of 2.4 million TEUs per annum) by 2015. • Phase II (Rs. 3600 Crores with capacity of 2.4 million TEUs) is expected to be completed by 2017.

(After completion of the above projects, JN Port will be able to handle over 10 million containers per annum- an increased of 150 percent.) c.

Dredging of channel to 14 meters (Rs.1500 crores) will be complete by Aug 2014.

d.

Dredging to 17 meters (Rs.5000 crores) is expected to be completed by 2018.

e.

Completion of multi-purpose berths (Rs.4000 crores) by 2018.

f.

Quadrupling of liquid handling capacity to 30 million tonnes per annum(Rs.1500 crores) by 2015.

g.

Completion of development and allotment of phase-I of the port-based SEZ by 2014.

h.

Completion of Logistic Park

along with the commissioning of phase-II of dedicated freight corridor by March 2017. The project for deepening and widening of the existing channel to 14 mtrs. has been awarded and the dredging is commencing in September 2012. The project will be completed in two years. Further deepening to 17 mtrs. is expected to be complete by 2018. The detailed designs and estimates for the second phase are under preparation by M/s TCE and M/s Ernest & Young.

What is the latest on the JNPT's proposal to develop a port based SEZ on its land since the Port had already received approval from Ministry of Commerce in March 2010 for 277 hectares which is planned for a multi product SEZ as Phase-I? Only 'in principle' approval for SEZ Phase-I of 277 ha. was received in March 2010. The final notification for the same is still awaited. However, in the meantime, development estimates have been prepared by JNPT, got approved by the Board and it is pending approval by the Government of India, as the estimates are above the powers of the Board. We expect to get approval soon and complete the development work for Phase-I within 18 months.

SeaPorts BUSINESS


Cover Story one of the bidders in the Bombay High Court, after JNPT had won the case after a long litigation with another bidder in the Supreme Court.

Could you throw some light on the construction of the ambitious 'Dedicated Freight Corridor' from JN Port to New Delhi, which is to be executed by DFCCIL? And how it will boost JNPT's performance in the long run? The date for completion of both the phases of the Dedicated Freight Corridor is March 2017 as informed by M/s DFCCIL. This corridor is essential for JN Port to have faster evacuation, as double stacked container trains carrying 400 TEUs as against 90 TEUs now will be operational with a reduced time of transit from 3.5 days to 17 hrs. to the National Capital Region. JNPT being in a nodal point in the international supply chain will be benefited by the landside evacuation infrastructure efficiency as well as the waterside dredging to 17 mtrs. which would enable mother ships of up to 18,000 TEUs capacity to be handled, without transshipment of cargo in ports outside India.

What is the latest on the progress of the fourth Container Terminal to be set up in two phases on DBFOT basis after relocating the present BPCL liquid cargo terminal to an alternate location? We have asked the PSA-led consortium to sign the concession agreement at the earliest. This is under process by them for creation of a joint venture company, adjudication of stamp duty, etc., before the actual signing.

Please tell us about JNPT's modernization plans, upgradation and augmentation of equipment, replacement, etc. Give us the latest on the deliveries of RMQCs, which are expected by September 2012. We expect the RMQCs, which are already manufactured, to be erected, transported and

commissioned by the end of the year. Further, six RTGCs are also to be purchased for enhancing efficiency at the yard level. This is pending the approval of the Ministry of Shipping, Govt. of India.

What are the features of JNPT's environment management, considering the Port is in the process of obtaining ISO14001 in this regard? JNPT has already obtained ISO 14001: 2004 certification for its Environmental Management System in December 2011. We are ensuring sustainable development by targeting 50 percent of our energy needs to be met from renewable sources like wind energy for which we have engaged C-Wet under the Central Power Ministry and M/s ITCOT as advisors/consultants. The tree cover and mangroves are conserved and every year additional planting is also done. We have got the Golden Peacock Award 2012 for Sustainable Environment Management from the Institute of Directors. We also received the Greentech Award a few months ago for environment + management.

What is the progress of the project to extend the container berths towards the north by 330 m to cope with rising container traffic and to provide for faster turnaround time as planned? The project is under litigation by

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SeaPorts BUSINESS


Cover Story

SCI

Shipping Industry Heading for Better Times

Shipping Corporation of India (SCI) Chairman & Managing Director S. Hajara believes that the shipping industry, which sailing through tough times will witness better days from mid-2013 onwards. Hajara explains in detail the difficulties and the dilemma that both shipping companies and the lending banks are facing. SCI CMD says that with ship prices touching rock bottom, it is the right time for India to acquire additional tonnage. Hajara also points out that more funds needed for the most neglected coastal shipping & IWT Following is the gist of what Hajara said in an exclusive interview with Nachiket Basole of SeaPorts Business, in which he talks about a wide range of issues affecting the shipping industry in general and SCI in particular. Excerpts.

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S. Hajara, CMD - SCI I would not say we are coming out of the recession. As a matter of fact, 2011 proved to be a much worse year for the shipping industry than even 2009. While the recession in 2008 which has not been seen since the Great Depression of the 30s, affected every industry. As far as the shipping industry is concerned, in 2008, the situation was such that overall, the demand situation was better than the supply situation. Also, from 2004 to 2008 - these four years - I would say, were of unprecedented boom for the shipping. Every shipping company worth its salt was sitting on a huge amount of cash. They had all made a very, substantial profit during those years.

In 2009, while the demand did drop, it was the first year after many decades, when the global oil consumption and oil trade actually contracted. Earlier, we used to see contraction in growth. But this time it was an actual decline. Nevertheless, supply did not surpass demand. That is why 2009 was not that bad a year, particularly for the tanker business. For container and dry bulk, it was quite bad. But when it comes to, SCI, we managed quite well since 80 percent of our tonnage consists of tankers. The SCI felt the impact of course in 2009, vis a vis the previous years, but not to the extent that many others, many other companies, and many other industries suffered. But the year 2011 was very bad because 2007

SeaPorts BUSINESS


Cover Story saw a historic high for ship ordering as a result of which 2010 turned out to be historic high for deliveries. Hence, in 2011, the supply far outsurpassed demand. And by then, shipping companies were no more in that happy situation of sitting on ready cash, a large amount of cash balance. Obviously, shipping companies had taken deliveries of so many ships, in between, for which they had to contribute, in addition to the tax, their equity component. The other biggest problem was that all these ships, which were getting delivered, were all high priced assets. In shipping business, the asset price and the charter hire move in sync. When the market is booming, when the charter prices are very high, every ship owner rushes to the shipyard, and it gets completely chock-o-block, and immediately increases the asset price. So asset price and charter hire, they move in sync both when they are going up and when they are coming down. All these ships, which got delivered in 2011 and

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even in 2012, were the vessels ordered up to 2007-2008 at a very, very high price. Obviously, the high priced asset, when the income is so low, the cash inflow is so low, a recipe for disaster. And that is what has been happening to too many shipping companies. Some shipping companies, including very big ship owners, have declared bankruptcy. So the situation even now, is not good at all. In 2012 also, in most of the segments, the supply growth would still exceed the demand growth. Just to give an example, in the tanker market, the demand growth is expected grow at about 2.5 percent and the supply is expected to grow more than 4.0 percent. In the dry bulk, the demand is expected to grow by 6.5 to 7.0 percent, the supply is expected grow by 7.5 to 8.0 percent. In containers, both demand and supply is expected to be more or less the same, at 6.5 to 7.0 percent. So the supply growth is more than the demand growth, which situation will get rectified, only hopefully from 2013 onwards. However, nothing is

sacrosanct. On one side, the world economy is still very much vulnerable because of the Eurozone crisis and on the other China is slowing down. For all these years, it was China which was having a catalytic impact on the world economic growth as well as world trade growth, and consequently, the shipping growth. So, China's slowing-down is a huge bad news for the shipping industry. But that's what is happening undoubtedly. In China, inventory levels for iron ore and coal were going up and it was cutting down on its imports. Obviously, if economic growth comes down in China, crude oil imports will come down. China has emerged as one of the largest importers of crude oil after the US and Japan. India is the fourth largest importer of crude oil. So, the situation is still grim, but as I had mentioned earlier, and I still maintain, I hope that only from the middle of 2013 the situation will improve. But shipping companies will have to face at least one more quite tough year. +

SeaPorts BUSINESS


Cover Story

Financial Crunch: A Dilemma for Shipping Firms & Lending Banks

Yes, for the first time in 28 years SCI declared a loss of 428 crores. SCI declaring a loss of even Rs10 crores in 28 years would have been very painful. But then most giant global shipping lines declared losses ranging from $500 million to $1 billion during 2011. So obviously, in that context, Rs 428 crores, which is less than $80 million, is not that huge. At the same time, a loss was something which SCI has not made for 28 years. It was a painful thing. Yes, our tonnage has declined to 4.3 million tones or thereabouts, and now we are back to 5.6. million tons. And hopefully this year we may cross 6 million tones, for the first time in SCI's history. The original target is 10 million tones. It is a question of reaching the target by when. That is the only change that happens. Of course, otherwise we are determined to grow. But the fact remains that at the moment, that our internal resource generation Is stressed. And the debt market has completely changed. Earlier, the lenders were

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Oct-Nov 2012

after every shipping company offering the debt to the extent of 80 percent. So, almost all our projects were 20:80 20 percent equity and 80 percent debt. Today, because of the shipping industry situation and because of the exposure of various banks, which actually lend to the shipping industry, and because of their own difficulties with the assets mortgaged to them diminishing in value, most of the loan commitments have been breached. The 1.2 times the value of the asset more than the outstanding loan, has been breached by almost all shipping companies. The debt servicing ratio (DSR) has also been breached by most of the shipping companies. So the bankers are themselves under pressure from their auditors. So banks have severely curtailed their lending and fresh loans to shipping companies. And even if they do, to companies such as SCI, which still has a strong balance sheet, they don't lend more than 60 to 65 percent debt. They insist that the balance has to be

For the first time in 28 years, the Shipping Corporation of India (SCI) reported losses for the financial year 2011- 12, ending March 31. SCI's CMD S. Hajara says the loss, amounting to Rs 428 crores, is not huge compared to the global shipping giants, some of whom suffered losses ranging from $500 million to $1bilion. While most shipping companies have faced losses, they are also saddled with higher supply, as in the case of SCI, which is adding additional tonnage to its existing fleet.

funded by the equity. And obviously, the margin has also gone up. Having said that at least in one small respect, I would say, the shipping industry is still blessed, in the sense that the LIBOR is still very low. It has gone to 0.3 to 0. 4. May be the long term LIBOR is 0.7, but still it is very low. Last year, SCI's overall interest margin was just about 2.0 percent. So, at least that is one aspect which still somehow helps many shipping companies to survive. Since the rate of interest is still low, shipping companies they can serve the loan, even if they are unable to pay the principal. Banks are content as long as the interest gets paid. The banks are also in a difficult situation, because they cannot really easily just foreclose and try to sell the ships, since their valuation has come down. If the banks try to do that they will take a real hit. So they are also trying to give a long rope to the shipping companies so that as long as they can service the interest, they are letting them function, with the hope that once the shipping industry

SeaPorts BUSINESS


Cover Story improves, the situation will be back to normal. So because of all these constraints of raising debt, of less equity generation, we cannot definitely take an aggressive posture any more vis a vis acquisition. We are placing only those orders that will have immediate contribution to

both our topline and bottom line. The situation is so bad, in terms of rates even now, both for dry bulk and tanker, that though the second hand asset prices have gone down by 60 percent in many segments, but still, if you acquire a vessel today, at that rate, then may be for one year at least you will incur loss.

Thereafter, you will earn a profit on that. But today, when the shipping companies are incurring losses, it is very difficult for them to consider adding another asset, which will only increase their loss, albeit not to a very great extent. But still when one make s loss one always thinks of how to curtail it. +

With Ship Prices Touching Rock Bottom‌

Right Time for India to Acquire Additional Tonnage Back in 2009, SCI Chairman and Managing Director had sought a package of Rs. 10,000 crore from the government to help the Indian shipping industry in its bid to add more tonnage when the cost of the ships in the international market was quite low. Now, he talks about how India is missing an opportunity, which China is grabbing happily.

Yes, we had made a demand. Unfortunately, nothing has happened. We said China was considering extending help to its shipping companies. In fact, China did give billions of dollars to their shipping companies to acquire tonnage. We wanted the Government of India should also do that. By that time the prices had already fallen. Subsequently they had fallen even further. By the time I had mentioned it in 2009 or 2010, the prices had fallen. Now they have fallen further. In a way, if India as a country wants to really build up its tonnage, because the share of the Indian bottom in the Indian export-import trade has gone down from 40 plus percent to 8.0 percent. That, I believe, is not in the interests of the strategic interests of the country. From the point of view

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Oct-Nov 2012

SeaPorts BUSINESS


Cover Story

of India's energy security, its maritime security the country should have much, much bigger tonnage than what it has today. India has only one percent of the world tonnage. While in terms of volume, which is the more important thing for the shipping industry, and not the value, India's exim trade today is more than 8.0/9.0 percent of the world trade, in terms of tonnage , it has only one percent of the world tonnage. In terms of the value itself, India's exim trade today is more than two percent of the world trade. So, definitely, I would say, India as a country should aspire to have much bigger tonnage. Now that the prices are at the rock bottom, it is the best time for acquisition. But unfortunately, the shipping companies as commercial entities today are just unable to take advantage of the situation because of their own financial constraints.

More Funds Needed for the Most Neglected Coastal Shipping & IWT

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So this is the time I feel that the Government should come forward and do it. At one time, the Indian shipping tonnage grew on the back of the Shipping Development Fund Committee (SDFC). We should have soft loans available and they should have interest subversion, for the domestic loans vis a vis international loans because it is almost impossible to consider domestic loans, particularly the rupee loan. Unfortunately, the FCRN loans are not available. Other than the State Bank of India which has some dollars, virtually no other bank has any dollars. So, they cannot give any foreign currency loans. And the international loans, as I said, despite the margin having gone up we used to borrow at 50-60 basis points. Today we cannot consider below 200 points. Even with 200 basis points, let us say, the LIBOR being 0.74, the rate of interest is 2.74. whereas the

The Shipping Ministry's Maritime Agenda, under which a massive upgradation and expansion of port infrastructure facilities are planned, has found favour with SCI CMD S. Hajara. He, however, feels the PPP mode chosen to implement the Agenda may slow down its implementation. It should have been done through a centralized government initiative and investment as has been done successfully in China. Hajara also feels that it is not due to financial constraints that the Government is not investing money in shipping,

domestic loan comes at10 plus percentage. As it is the shipping companies are suffering so badly, they are unable to service the debts drawn at far lower rates of interest, where is the question of servicing loans at 10 plus percent? In order to make the Indian shipping companies competitive vis a vis their foreign counterparts, these are the initiatives, which the Government must take. Today, India has about 17 million tones of deadweight, just about 12 million GT. If you want to raise India's share in world tonnage to 2.0 percent, it has to be doubled so 17 million DWT has to go up to 34 million DWT. Actually, our Maritime Agenda is talking very big, a four-fold increase. But unfortunately, the situation is such, that unless some quite dramatic initiatives are taken by the Government, it will be absolutely impossible to achieve the kind of targets which have been set up by the Shipping Ministry under the Maritime Agenda 2020. +

since it is pumping hundreds of thousands of rupees into road and rail infrastructure development. Hajara also talks about how development of shipping, especially coastal shipping and inland water transport (IWT) can help reduce emissions and environmental problems. We welcome the infrastructure development and capacity building, in any way. The Government's stand today is that everything should happen through Public-PrivatePartnership (PPP). Even in the

SeaPorts BUSINESS


Cover Story major ports, all the terminals and maritime capacity addition should be through the PPP mode, which is good in a way. It is a good policy. But at the same time, PPP requires huge private investment. And sometimes, infrastructure development is far more difficult to enthuse the private promoters to invest money. If you look at China, which is not a comparable country, infrastructure could be built there in a dramatic fashion because it was done entirely on a central basis. It was totally the Chinese Government's initiative and its investment. Regarding building infrastructure through the PPP mode, we do recognize and we do appreciate the government's constraints. But at the same time, normally, capacity building, infrastructure augmentation through the mode PPP may be a much slower process than if the Government could have considered implementing it by itself. On the issue of finance, one thing I must say. If we look at the Union Budget, year after year, the budgetary contribution to rail and road have always been many times than that of shipping. Also, we all talk we are extremely concerned about the environment. Out Prime Minister says there should be 20 percent cut in emissions, 20 percent cut in carbon footprint in a time-bound manner. But how will that happen? That can happen, I would say, primarily through an intermodal shift in freight transportation from different modes to shipping, to coastal shipping and IWT; because, shipping barely consumes 45 percent of the energy spent on rail ton-mile shipment, barely 15

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percent on that of road and less than one percent that of the aviation. So the best way to address the environmental concerns, is to have policy initiatives whereby there is a shift of at least domestic freight movement from rail and road to coastal shipping and IWT. Look at Europe; about 50 percent of its domestic freight movement is by water transport; and look at India, not even 7.0 percent is done by by coastal shipping. And we have a huge coastline of 7,500 km and we have a huge inland river water network of more than 15,000 km. So, definitely, the potential is enormous. But unfortunately, the policy initiatives are not in place. Coastal shipping and IWT is not getting any boost. And we keep on spending thousands and thousands of crores to develop the road and rail infrastructure. People sometimes say that per ton-mile, considering door to door, defined coastal shipping to be more expensive. Firstly, it cannot be if it is a long haul. In a long haul, by far, shipping is the cheapest mode of transport that is proved the world over. But more than that I would say

even a comparison, to start with, is totally incorrect. Because, we have invested a hundred thousand crores of rupees in road and rail transport whereas in coastal shipping and IWT, not even two to five thousand crores of rupees have been invested. So, unless you build infrastructure, you cannot obviously take the advantage of the economy of scale. The required drafts are not there in the rivers. The river draft is not even one meter. There was also no river conservancy. So, how can you compare shipping and water transport vis a vis other modes of transport, in to which huge amounts are pumped to develop infrastructure? Many committees have gone into the issues concerning coastal shipping and IWT and their reports are available. Presently, the Rakesh Mohan committee is working on the entire transport sector, of which shipping is a part, of which coastal shipping is a part. So this is an ongoing process. Discussions are there our suggestions are there. It remains to be seen how implementation takes place. +

SeaPorts BUSINESS


Interview

Italian

Ports Italy is an ancient maritime country. So is India. While Italian ports enjoy the most upgraded state-of-the-art technological logistics and operations, the Indian port sector has just drawn up a massive modernization plan and opened up to private sector investment. Hence, there is tremendous scope for collaboration between the port sectors of both Italy and India in many areas. A team of experts from the Port Authorities of Tuscany is arriving in September 2012 to explore possibilities of partnerships with Indian ports in the areas of infrastructure development and technology transfer. Following are excerpts from an interview that SeaPorts Business had with Marco Bennici of Toscana Promozione, representing the Port Authorities of Tuscany in New Delhi.

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Tuscany Team Arriving in Sept for Talks & Tie-Ups

Future Partners of Indian Port Sector ! Could you throw some light on your operations in India? What kind of business do you seek from India and which are the activities you carry out to promote Italian ports, especially in the area of infrastructure? The Port Authorities of Tuscany, which unite the ports of Livorno, Piombino and Carrara, are increasingly developing contacts and relations with India, so they can be the reference point in the Mediterranean area for the subcontinent. We understand the opportunity India provides in terms of developing infrastructure, and we are ready to provide our knowledge and experience to help in this regard. We have an important and well-organised infrastructure which represents the ideal solution for goods coming into Europe through the Mediterranean Sea, and we would like to be an integrated partner of India's port industry. For this

reason, an important delegation of technocrats from Authorities, Chambers of Commerce and Associations of companies from Tuscany's port, shipping and terminal industry will visit India from 20 to 28 September 2012, aiming to promote our system and create the right cooperation for our mutual development.

Italian ports boast state-ofthe-art technology, which is constantly upgraded. Do you also foresee port-to-port collaboration between India and Italy? The main focus of technological development in the port and maritime sector is to make the shipping of goods and their routing towards their final destination more and more seamless. With this in mind, all initiatives from customs authorities to remove restrictions on goods that slow their progress through ports are extremely important. A potential collaboration with India could

SeaPorts BUSINESS


Interview provide for the adoption of an 'electronic seal' system (a topic to be developed through appropriate agreements with the customs authorities), which would allow the goods to clear customs at their place of departure, so that they can be sent to their destination as soon as they arrive at the port.

As you are aware, India is spending billions of dollars on setting up new port infrastructure and technology and on improving existing facilities. Are Italian companies showing any interest in this regard? If so, are there any specific areas of collaboration where Italy has an edge? We are aware of the investment plans for port infrastructure made by the Indian government, and we find the increase of the capacity of Indian ports planned in the forthcoming Five-Year Plan, particularly interesting. We understand that this will create an overall total capacity of 1,440,000,000 tonnes, and we believe that Italy can play an important role in intensifying India's commercial shipping with Europe and the Americas. In terms

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of technology, Italian companies in the logistics sector are extremely interested in signing collaboration agreements with Indian companies in the sector. This is partly in order to pass on the knowledge needed to put some of the strategic skills for which Tuscany leads the field into practice at Indian logistics sites. This applies particularly to technology connected to the chilled and cold chain, sensors and the tracking of goods.

What advantages can Italian ports provide to Indian goods exports to Europe and imports from that region to India? How well are they connected to important mainland European destinations by road and rail? Italian ports are an ideal reference point for trade from the East Southern Europe, North Africa and the Eastern Mediterranean can be reached by boat in a few days from Italy's ports. Moreover, using Italian ports for the Mediterranean market creates considerable time and cost savings compared to using the ports of Northern Europe. Through a substantial network of Freight Villages, the goods can be shipped directly to destinations in Southern

and Central Europe. For example, the port of Livorno, thanks to an agreement with the Bologna Freight Village, can provide significant opportunities for goods from India destined not only for the Italian market but also for European markets. The European policy on Multimodal Freight Corridors allows the Italian ports to be connected with the whole of Europe.

What is the role played by Italian ports in facilitating Indo-Italian bilateral trade? Italy in general, and Tuscany in particular, have a well structured logistics chain for the shipping of goods. Tuscany has three international ports (Livorno, Piombino and Carrara), two freight villages (Guasticce and Prato) and two international airports (Pisa and Florence), capable of serving the whole of Italy and the European continent. In this context, both the Tuscany Region and the national and regional port authorities are, naturally, keen to sign bilateral agreements in order to strengthen commercial shipping between Italy and India. The aim of the scouting that the regional network of Tuscan ports will carry out in India this September is to establish the level of interest and enter into similar

SeaPorts BUSINESS


Interview agreements of this nature.

The port of Piombino offers investment opportunities for manufacturing sectors, such as steel, to set up their own terminals to facilitate their operation. Are any Indian steel companies showing interest in this regard, say the Mittals, the Tatas or the Jindals? The port of Piombino plans within the next few years to increase the size of its facilities by around 1 million m2 and to extend the length of the quays by over 5 km, with total investment of â‚Ź467,606,000, of which â‚Ź90,000,000 is from private investors, in view of the potential to build the new facilities and manage them in the long term. The Port Authorities are principally focussed on shipping and logistics companies and terminal operators that intend to build their own terminal to use for their own shipping, with the potential to include handling or industrial operations in the port or dry port areas. Also of great interest are the industries that work in the steel production sector who themselves

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or in partnership with regional producers intend to integrate with, or acquire shares in the European market, and which see Piombino as a hub for finished or semi-finished products, or which intend to transform semi-finished products into finished products, taking advantage of the professional skills of the workers in a region with an ancient industrial tradition. In recent months, and following initial informal contacts, Indian steel producers have shown interest in meeting the delegation from the port of Piombino to get to know the details of the planned project and the potential investment opportunities.

The Port of Livorno has been projecting itself globally as a port for handling containerised cargo traffic. With the global economic meltdown affecting all commercial activity, including sea trade, what is the short-term and long-term outlook for containerised traffic and the Italian ports? As with all Mediterranean ports, the Italian ports have felt the

effects of the crisis. Future forecasts indicate signs of recovery, and in fact the majority of Italian ports have already recovered to pre-2009 levels. The creation of the new port and intermodal infrastructure at Livorno will guarantee a better range of services to maritime companies in the containerised sector, although a lot will depend, especially for exports, on the ability to return to being competitive at the level of production.

What is the outlook for global sea trade, both in general and for Asia, and India and China in particular? How will it help Italian ports, especially in handling containerised cargo traffic? Containerised shipping from the East represents the majority of business for Italian and Mediterranean ports - shipping from China has been well established for some time, and it is still seeing considerable growth. India, meanwhile, has enormous potential, but the areas to develop are still to be fully detected and exploited. For this reason, it is an + area of great interest.

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December 2012, Auto Cluster Exhibition Centre, Pune, India

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Media Partners

Indian Private Ports & Terminals Association


Insight

IPPTA

Public-Private-Partnership a Success in Indian Port Sector Kulkarni said investments through the PPP mode are flowing into both Brownfield, that is the existing ports and Greenfield, the new ones built from the scratch.

S. Kulkarni, Secretary General -IPPTA

Public-Private-Partnership (PPP), the much-publicized mode of attracting both domestic and foreign direct investment (FDI) has been more successful in the India's port sector than in the other areas of the country's economy. “Of all the sectors of the economy, ports have succeeded in attracting investment in the commercial infrastructure of the sea ports,” said Shashank Kulkarni, Secretary-General of the Indian Private Ports and Terminals Association (IPPTA), in an interview with the SeaPorts Business magazine.

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The following table shows that there have been as many as 82 PPP projects at various stages - from pipeline to operation – involving an investment of Rs. 42,218 crore, aimed at creating an additional capacity of 605 million tonnes annually.

Elect

In the last few years, operations of non-major ports and nongovernmental terminal have posted spectacular results. In 2009-10, nearly 34 percent of the total Indian cargo was handled by non-governmental terminals, up from 27 percent in the previous year. The government expects the private sector to handle 50 percent of the nation's cargo by 2015, as compared to a mere 5.0 percent a decade ago, a huge 10-fold increase.

Number

Cost (In Crore)

Capacity (In MTPA)

PIPELINE Construction RFP/ Under Bidding RFQ/ EOI Stage Under Operation

6 20 12 13 31

2 573 11 275 14 545 4 190 9 636

44 116 171 67 207

Total

82

42 218

605

Source: Ministry of Shipping

SeaPorts BUSINESS


Cover Story According to Kulkarni cargo handling by the state owned 12 major ports and the non-major ports is in the ratio of 60 to 40. He expects the ratio to reverse to 40:60 in due course. Kulkarni said that fixation of tariff by TAMP (Tariff Authority for Major Ports) in the case of private container terminal operators in India has become an issue of concern. While the terminal in major ports fall under the purview of TAMP, non-major ports are free to fix a higher tariff because of better facilities they offered. For instance, coal is handled by both Visakhapatnam Port and the nearby Krishnapatnam Port, but the customers preferred to go to the latter despite the tariff being

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three times higher compared to the former. TAMP was set up in 1997 as an independent statutory authority to fix tariffs to be levied and collected by Major Port Trusts as well as private operators in such Port Trusts for various services provided by them, with its role limited to fixation and revision of tariffs. The private sector participation in major ports began in 1996 and major port trusts entered into agreements with terminal operators for handling growing container traffic. Under these agreements, operators levy and collect tariffs as approved and notified by TAMP. However, the recent downward revision of tariffs has evoked sharp reactions from both the terminal operators as well as the port trusts.

the tariff should be left to the market to determine and not TAMP since drastic cuts in tariffs could make terminals economically unviable. TAMP has a dampening effect on investment, especially, FDI, which needs a win-win situation for investors as well as the ports. Private sector players participating in major ports expect to be treated as partners and not like all other port users, Kulkarni said, adding, that private terminal operators feel they are taken for granted while the ports think that the former have been given everything on a platter. “The PPP concept should be made operational in its true spirit,� + Kulkarni said.

In such a situation, Kulkarni said,

SeaPorts BUSINESS


Analysis

Container Market Outlook Shipping Bright in India & Asia The container shipping industry is facing problems similar to the 2009 global financial crisis. Too much capacity chasing not enough cargo seems to be the scenario again.

Mark Miller

The container shipping capacity across the world is growing at an alarmingly higher rate against the availability of containerized cargo in the next few years, says Mark Miller, a noted logistics consultant, comparing it to a phenomenon of too much chasing too little. In this gloomy scenario, however, the Asian markets offer hope, he says. Driven by consumer and industrial demand in China, India and other ASEAN countries, there will be a spurt in sea trade and consequently a surge in cargo movement in the intra-Asia market, Miller argues. India, with its massive expansion plan for the Ports infrastructure, will be a growth driver for the container shipping sector, he concludes.

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At a recent conference we heard that the top 10 shipping lines have a combined 2.3 million TEU of new capacity on order, this being a large part of the projected 12-15 percent per annum increase in the container shipping fleet during the next three years. At the same time we learned that the 'new norm' for containerised cargo volumes would be annual growth rates averaging just 7.0 percent. This would suggest that the excess capacity will increase by at least 5.0 percent per year through 2015. During the second half of 2011, whilst there was a softening of demand due to economic, financial and social challenges in Europe and the United States, we also saw additional capacity coming onto the market – and continuing to do so. Many of these new ships are the 10,000+ TEU vessels that primarily operate on the AsiaEurope trades, thus putting additional pressure on the prices in those particular sectors.

Shipping lines have been furiously fighting for volumes by reducing freight rates. Drewry has reported freight rate declines of as much as 30 percent year-onyear on the major trades.

In addition to lower volumes, rate reductions are further impacting profitability for shipping lines, with the majority of them expected to report large losses for 2011. One industry projection is that combined year 2011 results will show over $3 billion of losses in the global shipping sector. It seems that in many ways, recent history is repeating itself – surely one of the lessons from 2009 was that reducing the price per box does not increase the total amount of boxes to be moved! The impact of declining freight rates is such that even shipping lines that are able to capture more volume are seeing declines in revenue and profitability. For their third quarter results, Cosco container lines reported a 14 percent increase in container volumes but, due to the decline in the average revenue per TEU, their revenue declined 21 percent for the same period. Another example is OOCL, one of the world's leading container transport and logistics service providers. Parent company Orient Overseas (International) Ltd reported third-quarter volume increase of 7 percent to 1.32 million TEU whilst revenue decreased by 8 percent to $1.44 billion. For the industry to have any chance of establishing some equilibrium in the supply and demand model within a largely commoditised sector, capacity

SeaPorts BUSINESS


Analysis

needs to be removed from the market, at least for the short to medium term. In the absence of any carriers going out of business (yet), then the short-term prescription will be the idling of container ships. Initially reluctant to lay up ships for fear that competitors will capitalize and steal share of volume, the lines are now taking capacity out of the market, with almost 200 container ships currently laid up, representing over 400,000 TEU of capacity. We expect to see more vessels being idled and remaining so through the first quarter, pending some visibility into volumes for the second quarter.

Encouraging Intra-Asia Market Amongst the doom and gloom, the local markets in Asia could present some rays of sunshine. The intraAsia container trade is large, with over 22 million TEU in 2011 representing 7.0 percent growth over the previous year and expanding – during 2010 some 40 new short-sea shipping services were introduced just in East Asia alone. Consumer and industrial demand is rising throughout Asia – most

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notably in China, India and the ASEAN nations in Southeast Asia. Indian-China trade, which back in 2001 was valued at $2.3 billion, is projected to grow to $100 billion by 2015 – a 50 percent increase over current trade levels. The intra-Asia trade is very fragmented with many small-and medium-sized ports, numerous shipping lines, plenty of local players providing barging services and thousands of freight forwarders. The size of the average intra-Asia vessel is currently 1,200 TEU, but as new capacity comes onstream, larger vessels are gradually being deployed. The 2,500-3,500 TEU vessels now represent 16 percent of the intra-Asia fleet, compared to just 2.0 percent in 2006. This can create challenges for some smaller ports that may not have the appropriate infrastructure or equipment.

Indian Subcontinent Growth Driving Increased Investments As the world's second most populous country, increasing economic prosperity in India means consumption is rising along with

people's incomes. Cargo movements in and out of India's 13 federal and 187 local and private ports have been steadily increasing. In the last financial year, the Indian shipping industry recorded an increase of over 20 percent in business, which is expected to continue. India's maritime sector is set to grow to a size of $80 billion by 2020, by which time the expected volume handled would be approximately 1.7 billion tonnes of cargo. The government's latest National Maritime Agenda calls for massive investments – $66 billion in the port sector and $27 billion in the shipping sector. With these levels of port and infrastructure expansion, India will continue to be one of the biggest maritime players in the Asia region. In order to respond to India's increasing levels of import-export trade, shipping lines have increased the number of services and frequency of port calls within the Indian subcontinent. India is attracting the bigger mainline ocean vessels that carry larger volumes of cargo. The growing quantities of cargo are squeezing capacity at India's ports, putting pressure on cargo handling

SeaPorts BUSINESS


Analysis

equipment and creating bottlenecks at congested ports. To meet growing demand, increasing efforts are being made in deepening channels, widening roads, developing new terminals, upgrading existing berths and investing in state-of-the-art cargohandling equipment.

Two distinct markets Overall, the intra-Asia trade is serving two distinct markets. On one dimension it is serving global trade, with end-user final demand in North America and Europe being serviced by materials, components and semimanufactured goods that are transported around within the Asia region, until finished products are finally shipped to the developed markets. The second dimension of the intraAsia trade is servicing Asia itself – where final shipment of finished product is to destinations within the Asia region. This sector is experiencing strong and continuing growth, in line with the increasing economic prosperity in many Asia countries, particularly India and

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China – which in turn is driving demand for consumer goods. However, there is continuing debate about the extent to which intra-Asia demand remains coupled to the developed western markets. According to Dr Jonathan Beard, Managing Director of GHK Consulting, a leading expert on industry trends and infrastructure master planning, “Over the last decade, intra-Asia trade has grown to be one of the most important container flows. Nonetheless, it has yet to de-couple entirely from the more established transpacific and Europe-Asia trades – a significant portion of final demand still derives from outside the Asia region.” Whether decoupled or not, the fragmented nature of Asia's container shipping sector, combined with the infrastructure challenges typical of emerging markets, results in high levels of inefficiency. One study estimated that within the ASEAN region alone, the logistics costs of moving containers was $2.25 billion a year and that efficiency improvements could result in savings of at least $140 million.

Nevertheless, growth forecasts for Asia markets remain robust. Citigroup projects India's Gross Domestic Product (GDP) to grow by at least 7.0 percent per year through 2013. Southeast Asia consumption is projected to grow at 15 percent a year, the North Asia markets remain strong and exports from ASEAN countries to India and China have almost tripled during the last decade – all good news for container shipping within the region and reinforcing the importance of the intra-Asia market. So whilst the US and EU markets remain soft, the increasing consumer power in Asia's emerging markets has become the underlying growth driver for the container shipping sector. We truly are in the + Asia Era. ____________________________ (The author Mark Miller is Managing Partner at M Power Associates, providing supply chain and logistics consulting, education, advisory and recruitment services that empower superior performance for clients in Asia.)

SeaPorts BUSINESS


Focus

US Trade

Mission

Francisco J. Sรกnchez

US Under Secretary of Commerce for International Trade Francisco J. Sรกnchez was in India from 20 to 24 February, 2012, as head of a Port and Maritime Technologies Trade Mission. Sanchez took time off during his tight schedule to share some of his thoughts with Veerendra Bhargava of the SeaPorts Business magazine, touching upon various issues ranging from infrastructure development and maritime technology transfer to increasing bilateral trade and two-way investment between India and the United States. Excerpts.

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Maritime Firms Keen to Offer Tech & Services You are heading the firstever Port and Maritime Technologies Trade Mission to India with a team of 12 US leading companies. What is your overall agenda considering the fact that India offers huge potential in port and maritime infrastructure? We recognize the growing importance of India as a market and as part of that market, we also recognize that infrastructure development is critical. India has a lot of requirements in this sector. India absolutely needs to work on its infrastructure if it is to meet the demands that will be placed upon its economy. So, we believe that US companies in this area have a lot to offer. And this being the first-ever

trade mission we have taken to India in this sector. It won't be our last cause and we have a lot of very able companies that provide services and products in this phase. So my goal is to match up some of the areas the best companies in the port and maritime sectors with business interests here that are focused on developing maritime infrastructure.

Since you have already visited Gujarat and the mission has zeroed on some specific deal. What more are you offering to other places that you are planning to visit in India? Our delegation has a role with a wide variety of participants. We have two ports represented, the Port of Baltimore and the Port of

SeaPorts BUSINESS


Focus San Diego. We have dredging equipment companies as well as those that provide dredging services. We have technology companies that provide everything from cargo tracking to security. So there is a wide variety and my view is that all of these companies have products and services that can be useful to the infrastructure development here throughout the coastal part of India.

Is there any specific maritime technology transfer deal that you are looking at? Because, there are many Indian companies that have developed technologies for tracking. Is there any specific technology you are keen to sell in India? My job is less about doing a specific deal and more about providing the space for American companies to meet their counterparts or interested business people to do deals. So I am not looking for specific deals and technology transfer. My hope is that there are a lot of deals that will get done as a result of this trade mission.

You are an architect of the

Obama administration of export initiatives. What are the areas of mutual benefit that you see in the vast Indian market that needs high technology? I am particularly interested and fascinated by the growth of your urban sectors. In the next 20 years, India will have approximately 68-69 cities with a population of a million or more. Each one of those urban centers will have needs and power generation in waste-water treatment and smart grid technology in traffic flow technology in education and health care and I am especially interested in getting American companies to these developing urban centers. So they can offer their products and services and be a part of the growth and development and in the improvement of the quality of life in those urban centers.

Is there any significant development that has taken place in the area of clean energy which you mentioned about in your last visit? I think it is clear that India's energy needs are going to continue to grow

and that India like much our own country is going to have a diversified grouping of energy sources and so, in that there is an opportunity for American know-how to contribute to your energy strategy. I think wind and solar are areas where we can participate and add value and to that end I brought a trade mission here last fall which focused on renewable energy and we will continue to focus on that sector in the future.

You are a strong believer in boosting private businesses that could help create millions of jobs both in the US and in India through joint ventures. Are there any US policy initiatives in this regard? There are policy initiatives to attract investments in the US. One of the policy initiatives is a program that my bureau oversees which is called 'Select USA' and we particularly help international companies that want to invest in the United States and we hope that Indian companies will take advantage of this service and allow us to help them make investments in our country.

Couple of years back you talked about the US-India partnership initiative in the growth of the emerging metropolitan sector. Has there been any follow-up in this regard? To some degree in the last two missions I have taken, have included stops in what we would call geographically emerging metropolitan sectors referred to as 'next year cities'. So we are going to

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Focus continue to focus on those 'next year cities', this is what I have mentioned earlier that India has 68-69 cities; in the next 20 years these will have a million or more population. So, as we continue to bring in American companies here, we are not only going to come to New Delhi or Mumbai, but we will also go to some of these other emerging metropolitan cities as well.

US and India are strategic partners in the 21st century. What further initiatives are you expecting to be introduced jointly in the near future to extend bilateral trade ties to

enhance trade and commerce between the two countries? From the government and the private sector perspectives, I cochair the commercial dialogue here and through the commercial dialogue we are going to look for ways to develop areas of mutual interest. Recently I met with Indian Commerce Secretary Khullar and we looked at ways to co-operate in the cold-chain supply. Another interesting venue is the US-India CEO Forum that seeks to identify areas where both governments can work together to reduce barriers and facilitate more trade and investment. And I think both of these venues will continue

to work very hard to strengthen our commercial ties to reduce barriers and to encourage two-way trade and facilitate investment.

What message you would like to give to our readers? I would have two messages: One is that America is open for business and we encourage Indian companies to look at our market as a place to invest. We welcome Indian investments. And two, we believe that it is both in the US and India's interests to foster twoway trade and we will continue to look for opportunities to increase two-way trade.

‘India's $93bn Investment Plan for Port & Shipping Sectors Lucrative' The US Ports & Maritime Technology Trade Mission, which visitied India from 20 to 24 February 2012, was led by US Under Secretary of Commerce for International Trade Francisco J. SĂĄnchez and comprised representatives from 14 US firms that provide state-ofthe art cargo handling equipment, port security and maritime technology equipment. The Mission offers an attractive entry for US ports and maritime tech firms and associations given India's lucrative and fast-growing maritime market. Ahead of the Mission's visit to India, SĂĄnchez said in Washington: "As one of the world's fastest-growing economies with more than 4,600 miles of coastline, maritime transport is essential to India's external trade," Sanchez said. "This critical market presents lucrative opportunities for US companies that offer products and services in the maritime transport sector." In 2011, India announced a new shipping sector policy

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Focus that entails an investment of USD 66 billion in the port sector and USD 27 billion for the shipping sector. There are currently 200 ports across India; this new policy proposes to increase India's port capacity from 1 billion tonnes to 3.2 billion tonnes by 2020. Some of the US companies selected for participation in the trade mission are AECOM from New York, The Beckett Group from Gig Harbour, Washington State, Capacity from Longview, Texas; ContainerTrac, Inc. from Richmond, California; DSC Dredge from Reserve, Louisiana; NTELX from Vienna, Virginia. During its five-day visit to India, the Mission delegates met a number of industry leaders in the port and shipping sectors in the cities of Chennai, Mumbai and Ahmedabad. The Mission delegates held one-on-one business meetings with pre-screened potential buyers, agents, distributors, and joint venture partners; meetings with regional government officials; and networking events were also held. Defining the purpose of the visit to be to build two-way trade partnerships, develop stronger economies and create jobs in the US and India, He pointed out that infrastructure was a core interest given the opportunities expected to open up in power generation, waste water management and transportation with India estimated to have over 65 cities with a million plus population by 2030.

currently ranked 132 on the World Bank's ease of doing business index, he said. This Mission is the first in a series of events planned for 2012 designed to expand US export opportunities within India's infrastructure sectors. India's rapidly expanding ports and maritime technology market, with much government investment offers following features. • India, one of the world's fastest growing economies, presents lucrative opportunities for U.S. companies that offer products and services in the maritime transport industry. • According to an Ernst and Young report, the majority of cargohandling equipment at Indian ports was commissioned long ago and has outlived its life span. • To meet the anticipated growth in traffic the major and minor ports have formulated plans for the development of new terminals, upgrading existing berths and modernizing operations by including state of the art cargo handling equipment, tracking systems, deepening of channels, and widening of roads.

• In January 2011 the Government of India announced a new shipping sector policy that entails an investment of $66 billion in the port sector and $27 billion for the shipping sector. This new policy proposes to increase India's port capacity from 1 billion tons to 3.2 billion tons by 2020. The Mission included representatives from the following ports and maritime tech sub-sectors: • Cargo-handling • Port security • Maritime technology • Port cleaning • Refrigerated supply chain • Port engineering • Shipping agents • Warehousing and stevedoring • Port management and consulting • Bulk cargo containers • Railways, bridges, and distribution center construction • Systems for cargo and container tracking Overall, the Mission is aimed at helping participating firms gain market insights, make industry contacts, solidify business strategies, and advance specific projects, with the goal of increasing + U.S. exports to India.

Pointing out countries were increasingly creating attractive business climate to woo investors, Sanchez said India's challenge was to remain competitive and build the ideal business climate to attract Foreign Direct Investment. India

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Presentation

GeNext

Tech

An 'IT One Stop' Shopping Experience

Future of Container Terminal Software – 2012 & Beyond… Current Trends •

Richard Butcher In the following presentation, titled 'The Future of Container Terminal Software 2012 and Beyond The Next Generation Solutions and the Benefits for an “IT One Stop Shopping Experience', author Butcher highlights the changing face of the existing Technology available to the Container Terminal sector and looks at the Next Generation Solutions that will help drive greater efficiencies whilst delivering maximum financial returns and tighter asset control across the terminals operations.

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Container Terminals in today's climate are facing daunting times with Liner Operators demanding change and greater flexibility in the services they are offering Shipper clientele (exporters / Importers). Terminals have to adapt to these changes and mould new techniques to meet the changing market conditions.

Terminals are facing environmental restrictions which will have an impact on both operational activities and expansion

The Next Generation Vessels are being deployed are creating their own unique issues for the Container terminals that serve them.

The Terminals need the ability to plan for the future with growing throughputs necessitate optimal layouts to achieve future success

Container Lines are deploying the ultra large container vessels (13,000 – 18,000 teu (+) which bring significant pressures on the container terminals.

Ever Increasing Vessel Capacities

Growing pressure to maintain vessel turn-times and reduce delays for calls are driving factors in towards greater efficiencies.

Container Terminals restrictions on TEU capacities create greater demand for tighter control and better management of space as well as effective handling and processing

SeaPorts BUSINESS


Presentation

of every unit that passes through the facility.

KEY SOLUTION PROVIDERS

Container Terminals are busy places and the demand for efficiencies is paramount to the operator's bottom line results. Terminals are also under pressure to perform and provide a stable and sustainable rate of return for their Investors. Productivity and container through-puts are the name of the game. With every element of the business being measured to achieve this end goal.

ORACLE/ SAP ERP SOLUTIONS

Some existing Terminal facilities are facing potential issues with expansion with the following factors coming into play:

Current Solution Overview – Oracle SAP ERP Solutions

• Environmental Restrictions • Physical Land Restrictions • Financial Capital Restrictions • Land Side Capabilities

• Terminal Purchasing Management • Human Resource and Allocation • Financial ERP • Operations • Commercial and Contract Management

Global Carriers are looking for lower rates and better service levels from their terminal Operators. This ever increasing pressure is driving terminals to adopt newer methods for their containers operations.

Current Trends in technology • Traditional ERP Software suit • Terminal Purchasing Management • Human Resource and Allocation • Financial ERP • Operations • Commercial and Contract Management

Current Generation IT Solutions-- Key Solution Providers

Terminals Optimal Solutions Advanced Planning Modules can help terminal operators assess the layout and land utilization of a new Greenfield Site or to analyze yard configuration of existing terminal facilities. Planning Models can be presented in a 3 dimensional level which allows for the Terminal Operators to work out the best configuration and utilization of handling equipment.

3 Dimensional Planning Software Flexible Planning Software can provide the capabilities

• Terminal Design • Yard Planning • Equipment Planning • Equipment Maintenance • RFID and Real Time Tracking • Resource Allocation • Central Core

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Presentation for Managers to visualise the acreage available and thereby achieve the best terminal utilization. Terminal Operations Export and Import Cargo Processing • Vessel Operations • Commercial Agreements • Booking and Documentation Process • Financial Billing and Administration Processes Software for managing all aspects of vessels calls for commercial and financial agreements as well as every component related to the export and import cargo processing. There are a number of leading providers in this field with the best coming from California.

Advanced Terminal Planning Solutions Planning the Terminals Yard space is a critical element for any operator. The worlds leading solution provider offers vessel stowage planning solutions for the export and import cargo. Precise planning on which containers are destined for each port of call allows for the Terminal Planners to pre-allocate slots and space within the terminal as well as the ship they are destined to load. The discharge patterns have helped turn vessels and prevent potential delays. Products like Expert Decking from the world's leader have been fundamental in allowing maximum effective yard stowage of containers and load sequence are all calculated by advanced algorithms.

Terminal Equipment Planning Handling Equipment used within a terminal is the second largest capital investment after the terminal construction and associated land costs. Quay Cranes averaging US$5.0 million, average Prices of Straddle Carrier can be in the region of U$750,000 and an RTG can be close to US$1.6 million. Every mile or lift these machines make equates to a cost or revenue for the

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terminal. Software from the world's leaders can help maximize the asset utilization, reducing dead lifts /moves and maximizing effective usage of the terminals' equipment. Planning can help prepare the load sequence and optimize on the physical moves to and from the quayside. Round trip of assets preventing deadhead moves reduces Co2 emissions and provides better returns on equipment utilization.

Terminal Equipment Maintenance Following are the features: • Straddle Carriers • Front Loaders • Quay Cranes • Yard Hustlers • RTG • ATGS • Central Maintenance Software The ability for the software to track and schedule all repairs and service downtimes, this must be linked to the Terminals Planning Modules thus making certain that scheduled maintenance is performed during no critical times of the week / month. To prevent potential delays to a vessels ETA and ETD. The ability for all spare parts to be linked through to the central ERP solution for ordering and purchases. Market leaders VMC have designed a unique asset tracking software for the use of tyres on any moving equipment. 30 percent savings have been achieved through its deployment. All main manufacturers provide software for the maintenance and servicing of the equipment at the point of sale, although most

SeaPorts BUSINESS


Presentation manufacturers will provide a preventive maintenance service during the warranty period of the machinery being deployed. To enable a smooth integration with the Terminals Planning and forecasting tools it would be envisaged that interfaces be defined and integrated into the ERP and TOS Solutions

Terminals & RFID Technology Terminals use RFID in many areas of their business; the initial costs can be significant but the longer term benefits are considerable. From the Gates to the Handling equipment RFID real time tracking can help eliminate backlogs and give provide accurate details on the terminals asset utilization

teams to service clients and vessels calling at the terminal facility. Fundamental decisions have to be made in order to define work orders and schedule the effective running of the facility 24x7x365. • Pay role and Overtime Tracking • Health and Safety and Time off (Sickness / Holidays etc.) Tracking. • There are a number of leading solution providers with some of the most advanced originating from Dutch based software providers.

GEN 2 Terminal Software: The Future

Terminals & Smart Gate Technology There are many areas in which the deployment of RFID solutions can help improve the efficiencies within a container terminal facility. The traditional bottlenecks of any terminal have been at the Gates just as Containers arrive and depart. With many containers tending to arrive just at as the Terminal “cut off” for accepting cargo for a vessel is given thus creating delays and potential back logs. Having interactive RFID and camera recognition solutions much of the scanning, data collection and documentation can be performed electronically and stream line many manual processes.

So what does the future hold for Container Terminals as their Carrier Clients push forward with the deployment of the larger next generation Ultra Large Container Vessels (ULCVs). Reference has already been made of the fact that Terminals will be facing greater pressure and that at some facilities physical growth restraints might be in play. So it comes down to better utilization of the facilities current infrastructure and leaning more towards advanced Terminal Operating Solutions.

Generation 2 Solutions • MIS Systems • Dashboard Technology • Planning • Forecasting • Optimization

Terminal Resource Allocation Terminals are seeking ways to manage their personnel to enable the correct number of staff are manning the terminal during peak times and being able to process work orders and roster

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Presentation • Asset Dashboard Management • USER Configurable Solutions • SAAS based • Revenue Retention • Revenue Management

Terminal Revenue Management • Service Agreement Analysis • Contribution Analysis on containers Handled • Contract Negotiation Tool • Analysis Cargo Mix for revenue • Pricing Model • Peak and Seasonal Pricing • Advanced Mathematical Engine

Terminal Dash Board Technology The Ability to monitor and track the progress of every attribute within the Terminal and provide real time data at the Senior Managers fingertips

Terminal Configurable Solutions Highly Configurable software solutions are being created in “CLOUD environments” with large data tables that reside behind these holding all the relevant data that any marine terminal could possibly require to run and manage their terminals. This allows the Users to define their own unique set of rules, procedures and reporting functionality from the solutions provided. Terminals in previous software models would require extensive system tailoring and this used to come from extensive client –software interaction with results costing more and taking time to deliver. The next Gen solutions allow for this type of on-line adjustments to be made by the terminals Super Users and can be tweaked as often as the Users require thus creating a true bespoke solution. Terminals Gate Operations are the most comprehensive and differ considerable with each operator thus configurable gates procedures are the first logical steps in these next Generation Solutions. The Leaders in these Solutions are the Californian Based Operator Navis.

Terminal SAAS Solutions Terminals are looking at lower costs and more effective deployment and support services. The SAAS model allows for a stable web deployed platform. Reducing local support costs and improving the performance of the system being deployed while always maintaining the most current version of the application available.

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Additional support comes from secure access and database integrity. The features are: • Pc • Mini-note • Note book • Remote Desktop • Remote Server • Data base • Mobile • The Internet

The Terminals and the Future The Container Industry has seen change with the larger ships coming on stream and new challenges that the whole sector has faced with the economic downturn, environmental issues and ever increasing operational costs. Marine Terminals play a vital role in the Supply chain process – although they are faced with restrictions that they physically cannot move in the event that trade routes change or cargo volumes decrease. Operators are fickle and terminals have to adept in order to maintain and develop their on-going relationship with the Carriers and Shippers (Importers and Exporters) that utilize their facilities. By offering faster processing times from both a handling of vessels and quicker physical turn times of these ships calling will always help to offer a better mouse trap over their competitors. Having the right infrastructure and software solutions play a fundamentally important role in this process.

The End Goal Result One stop shopping for software is the answer dealing with a leader that can bring all the applications together and offer the most comprehensive state of the art Second Generation's Applications. From a Greenfield site to an existing container facility there is only one solution provider that can deliver a total turnkey solution and that is: The Navis, the true ERP provider of software and solutions they collectively have secured the best of breed technology embracing their own state of the art Second Generation Solutions and global support and infrastructure to provide a true one-stop shopping experience. +

SeaPorts BUSINESS


Focus - Maharashtra

Port

Agenda Lofty, Development Implementation Tardy

Dr. S. D. Naik

Indian planners and policy makers are aware of the critical role the ports play in promoting foreign trade and in boosting the country's economic growth. Lofty targets set for building capacities at ports and various other maritime projects planned often become unachievable due to implantation delays, says Dr. S.D. Naik, in this well-argued and hardhitting article. Avoidable congestion at ports often puts port users to great hardship and no wonder foreign ships are reluctant to call on Indian ports, Dr. Naik says.

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Ports play a vital role in the overall economic development of the country. India is a major maritime nation by virtue of its long coastline of around 7,517 kms on the western and eastern shelves of the mainland and also along the islands. The country has 13 major ports and 187 non-major ports, strategically located on the world's shipping routes. While the 13 major ports are administered by the Central Government through the Ministry of Shipping, the nonmajor ports are under the respective State governments.

About 95 percent by volume and 70 percent by value of the country's international trade is carried on through maritime transport. The Indian port sector – the major and non-major ports together - has already crossed the one billion tonne mark in terms of cargo handling capacity. Plans have been drawn up to increase it to 1.5 billion tonnes by the end of 2012. At the same time it may be noted that while the number of nonmajor ports in the country is large, only one-third of them undertake regular commercial operations at

SeaPorts BUSINESS


Focus - Maharashtra present; these are located mainly in Gujarat, Andhra Pradesh, Goa and Maharashtra.

Capacity Constraints Twelve of the 13 major ports in the country have been working at over 85 per cent capacity when 70 percent is considered ideal. Mumbai's Jawaharlal Nehru Port (JNPT), the largest in India for solid cargo, has been working at over 100 percent capacity. Similarly, Vizag, Tuticorin, and Mormugao ports have also been experiencing over 100 percent capacity utilisation. Going by international standards, a port needs to maintain a 30 percent gap between its installed capacity and the actual traffic handled so as to reduce the waiting time for ships arriving at the port and ensure regular maintenance of handling infrastructure. Not surprisingly, on both these counts, India's record has been dismal. Capacity constraints are further compounded by India's 25 percent level of containerisation, which is far below the global average of 6070 percent. It is estimated that infrastructure investment of $ 20 billion is needed to increase India's container capacity to a level sufficient to accommodate the country's ongoing economic growth. Capacity constraints have been aggravated by the prolonged delays in the implementation of projects already sanctioned. Out of a total of 276 projects with an investment of Rs.55,804 crore scheduled for completion by 2011-12, only 53 projects involving 65 million tonne capacity have been completed, with 77 still under implementation, 25

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dropped and the rest 127 yet to kick off.

Port Infrastructure Incidentally, the development of port infrastructure in India has not been on par with other ports across the world. Trade in India has to face severe challenges due to inefficient port services. International shipping lines often avoid touching Indian ports because of the unduly long waiting time. The long turnaround time at ports in India is one of the biggest handicaps the logistics services providers have to deal with. The ports in India are also plagued with problems like congestion, poor connectivity and accessibility, lack of adequate cargo handling facilities, labour disputes and even mafia problems. Not surprisingly, India ranks 83rd out of 139 nations for the quality of its port infrastructure, according to the World Economic Forum's Global Competitiveness Index 2010-11. Indian ports are in need of sophisticated infrastructure, from land-ways leading to ports. There are lots of delays and hindrances in the system, not just in logistics but also in the country's taxation system; when goods are moved from one state to another, they charge different rates of taxes. So India needs to improve its infrastructure in a big way.

Leading States The leading maritime states in the country are Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh. Among these, the state of Gujarat endowed with 1,215 km length of coastline (one-sixth of the total), has established a clear lead over other states. It has emerged as the

leading state in cargo handling. Kandla port in the state accounted for the highest share of 14 percent in major port traffic. Of the 41 non-major ports in Gujarat 20 have been handling cargo and they collectively boast maximum minor port traffic of 71 percent in the country. The cargo handling capacity of non-major ports in Gujarat has gone up from 164 million tonnes in 2005-06 to 283.64 million tones in 2010-11 while the cargo handled by these ports increased from 103.5 million tones to 230.9 million tones over the same period. Port Pipavav, located in Saurashtra in Gujarat is for containers, bulk and liquid cargo. Its lead promoter is APM Terminals, one of the largest container terminal operators in the world. The state now has four green-field non-major private sector ports with a combined installed capacity of around 100 million tonnes per annum. These are Mundra, Hazira, Pipav and Dehej ports which are doing very well. The state of Maharashtra with a coast line of around 653 km has

SeaPorts BUSINESS


Focus - Maharashtra two major ports viz. Mumbai port (MBPT), the oldest natural harbour port in the country, and the Jawaharlal Nehru Port (JNPT). MBPT has 49 berths with a capacity of 47.4 million tonnes. The cargo handled by this port is mainly crude oil, POL products and bulk chemicals. JNPT is among the top 30 global container ports and handles 60 percent of India's container traffic. Its capacity is 61 million tonnes. According to port management, JNPT capacity is being expanded and the execution of projects worth Rs.14,000 crore is expected to begin this year. The long-term plans include investment of another Rs.45,000 crore by 2020 for a fifth container terminal and a new port complex. Tamil Nadu has three major ports located at Chennai, Tuticorin and Ennore. All these ports have container handling facilities and are directly linked with East Asia and Europe. Besides this, there are 14 non-major ports managed by the Tamil Nadu Maritime Board. Chennai Port, formerly known as Madras port, is the second largest port in India after Mumbai port and the largest port in the Bay of Bengal and is 125 years old. It has three docks and 24 berths and has become a hub for containers, cars and project cargo on the east coast of India. Andhra Pradesh having 974 kms long coastline has one major port at Visakhapatnam, one of the busiest ports in India with a capacity of 63.2 million tonnes. Its capacity is being ramped up to 86 million tonnes by 2012-13. The state is seeking to build another major port and has approached the Prime Minister's office for the same.

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Besides this, the state also has 13 non-major ports. The state government is also planning to develop another 13 non-manor ports with a total capacity of 200 million tones.

Maritime Agenda 2010-20 In the Maritime Agenda 2010-20 released by the Union Ministry of Shipping in January 2011, a target of 3,130 million tonne port capacity has been set for the year 2020. More than 50 percent of this capacity is proposed to be created in the non-major ports as the traffic handled by these ports is expected to increase to 1,280 million tonnes. The Agenda also includes addition of four hub ports – two on each coast. The objective of the Maritime Agenda is not only creating more capacity but upgrading the performance of the ports on par with the best international ports. The enlarged scale of operation is expected to reduce the transaction costs considerably and make the Indian ports globally competitive. The total proposed investment in major and non-major ports over this period is expected to be around Rs.2,96,000 crore (including in 72 ongoing projects worth around Rs.18,000 crore). A major chunk of this investment has to come from the private sector, including foreign direct investment (FDI). FDI up to 100 percent under the automatic route is permitted for construction and maintenance of ports.

through induction of latest technology and better management practices. Public funds will be mainly deployed for the common use infrastructure facilities like deepening of port channels, rail and road connectivity from ports to hinterland etc. The good news on private sector participation is that India's engineering giant Larsen & Toubro plans to develop two Greenfield ports in the country, one in Gujarat and another in Orissa. It is also involved in the second phase expansion of Dharma port in Orissa, a joint venture with Tata Steel. While the Maritime Agenda appears no doubt impressive on paper, the past performance relating to port development does not inspire confidence. In fact, the Prime Minister's recent decision to ensure time-bound implementation of port projects this fiscal, has met with one-word response from the industry: Unrealistic. It is not difficult to understand the cynicism. In respect of 23 port projects planned with capacity of 226.4 million tones during the 11th Plan period, the actual achievement was just 3 projects awarded with capacity of 79.32 million tones. Both the Shipping Ministry and the private parties are bogged down by complex approval procedures involved in awarding of projects. + ____________________________ The author is eminent Economist

Private sector participation is not only expected to increase investment in the ports infrastructure but it is expected to improve operations of the ports

SeaPorts BUSINESS


Focus - Maharashtra

Dighi

Port

Single Nodal Agency Needed to Address Maritime Demands

A Catalyst to Boost Economic Growth Distinctive Features of the Dighi Port

Vijay Kalantri

Dighi Port is one of the fast developing ports in the private sector in India. Vijay Kalantri, says that the Port, which is a part of the Delhi Mumbai Industrial Corridor (DMIC) & Dedicated Freight Corridor (DFC), has a big role to play in the economic development of the region. The Marine infrastructure sector, says Kalantri, offers immense opportunity for investment in and the development of Special Economic Zones (SEZs) to sustain and increase the pace of India's economic growth. Kalantri also pleads for a single nodal agency to address the various maritime needs. Excerpts.

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Dighi Port, the first and largest Greenfield port in Maharashtra is just 160 km away from Mumbai. Dighi Port is being developed as a multipurpose, multi-cargo, allweather port with deep draught, direct berthing facilities and stateof-the-art cargo handling equipments with adequate stack yards, warehousing facilities and back up areas with an ample land bank. The unique feature of the port is its fortuitous location within a natural harbour and exclusive channel. The channel and turning circle has been dredged to 12.5m below Chart Datum (CD) and the berth pockets have been dredged to 14.5 m (CD), making it the deepest channel in Maharashtra thus allowing the port to accommodate Panamax sized vessels. The Port has the potential to handle substantial volumes of all types of cargo and plans to handle bulk, break bulk cargo such as agri products, bauxite, cement, clinker, coal, fertilizer, steel etc. and liquid cargo. Unlike other traditional ports, the

integrated infrastructure at Dighi Port is a first of its kind in Maharashtra. The Port is designed to provide multiple facilities. These facilities will be the value added components such as the Special Economic Zone (SEZ) inclusive of a Free Trade Warehousing Zone (FTWZ) and the last mile logistics such as the road and rail connectivity. Dighi Port has extensive port limits, a dedicated approach channel and efficient & effective port operations leading towards highest productivity and an integrated logistic infrastructure. In comparison with other ports, Dighi Port will ensure speedy turnaround of the vessels and substantial savings in transaction cost and time for the port users. On the South Bank, two multi purpose berths have been developed having a single linear quay length of 650m. Both berths are in operation. The port has also deployed two new multi purpose Gottwald Mobile Harbour Cranes on these berths for the efficient handling of cargo. Construction work on the three multi purpose berths on the North Bank having a total quay length of

SeaPorts BUSINESS


Focus - Maharashtra 1100 m is in progress. Piling work for the berths is already in progress and is likely to be completed by first quarter of 2013. The North Bank will primarily be used for handling clean cargo. Both banks of the port are connected to the National Highway NH 17 via five State Highways. The North Bank is connected to National Highway via State Highways (SH) 92, 96 and 90 and the South Bank is connected to National Highway via SH 97 and 98. The entire project development involves an investment of Rs. 4,000 crore; till date a total of Rs. 1,400 crore has been invested in port and port related infrastructure with an additional Rs 2,600 crore being invested only in enhancing the port logistics infrastructure. Dighi Port is in close proximity to the oil and hydrocarbon-rich Persian Gulf, the Arabian Peninsula and the African Continent and is accessible to the busiest International oil-tanker routes from the Persian Gulf to Singapore, South East Asia, Japan and Australia. The Port has entered into Port Service Agreements with various port users for the handling of Bauxite, a Cement Grinding Unit, Development of Liquid Storage

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Terminal, Steel Cargo, and an LNG Terminal, to name a few. Dighi Port Limited has received approvals from the Ministry of Railways (MoRs) to develop the railway siding at the port under the 'Private Rail Siding’ (PRS) model. The Port will be connected to the nearest Konkan Rail head, IndapurMangaon, which is at a distance of 47 km. Dighi Port is also included in the Delhi Mumbai Industrial Corridor (DMIC) & Dedicated Freight Corridor (DFC). The DMIC is being developed jointly by Government of India and Government of Japan for promotion of Industries, infrastructure and investment. Total Investment proposed in DMIC is US$ 90 Billion. Dighi Port is the final node of the DMIC and is being developed as a multi modal logistic hub. The port will compliment infrastructure development under the support of DMIC. Dighi Port will cater to a large number of Industrial clusters such as, Dighi Industrial Area, Vile Bhagad, Pune Nashik, Igatpuri, Sinar, Roha, and Chiplun Industrial Region. Industrial clusters developed under the DMIC in close proximity to Dighi Port are Vile Bhagad (Steel, Power & Project Equipment), Pune –

Chakan (Automobiles, Agriculture, Chemicals and Ancillaries ) and Nashik – Sinnar (Power, Agriculture and Ancillaries). It has also been proposed to include Dighi Port as a part of the Dedicated Freight Corridor (DFC), a Special Purpose Vehicle set up under the administrative control of the Ministry of Railways to provide rail connectivity between North India and West India. The Dighi Port Area has been identified as one of the seven Mega National Investment and Manufacturing Zones under the Government of India's new Manufacturing Policy. A total area of 230 sq. km has been allocated for the development of the Manufacturing Zone in Dighi Port Area. The NIMZs will entail an investment of US$ 5.0 billion and will include support infrastructure and services like Multi modal Logistic Hubs, Container Freight Stations (CFS), Inland Container Depots (ICDs), Warehousing, Cold Storages, Cargo Distribution, etc. The Port based multi product Special Economic Zone (SEZ) is being developed for the purpose of facilitating the setting up of manufacturing units, provisioning of services and other activities including processing, assembling, repairing and reconditioning.

SeaPorts BUSINESS


Focus - Maharashtra The SEZ at Dighi will be spread over a total land bank of over 2,000 acres to be developed in phases, thus making it one of the largest port based SEZ in Maharashtra. All the requisite regulatory permissions and licenses have been acquired for the development of the SEZ. Further, the FTWZ planned at Dighi Port will provide world class infrastructure for industrial units, warehousing of various products, state-of-the art equipment, transportation and handling facilities, commercial office-space, water, power, communication and connectivity, with a one-stop clearance for import and export to support this integrated zones as 'international trading and transshipment hub.

Role of the Private Sector in Port Development The marine infrastructure sector has huge growth potential and excellent investment opportunities in India's fast growing economy. Indian ports can play an important role in Global Marine Trade and can emerge as key facilitators and accelerators towards the country's economic development. The sector has been gearing up to meet the growing demands of cargo traffic and is all set to attain a size of USD 1.0 trillion by 2020. For instance at Dighi Port itself in

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terms of the growth potential we have invested in Rail, SEZ/FTWZ, Integrated logistics etc. Outside Dighi, the potential is enormous. India's vast coastline is not fully exploited. If India has to grow at the rate at which we all believe it should, then we need to build ports and port related infrastructure to the tune of USD 100bn. Cargo handling at non-major ports has grown from 5.0 percent in 2002 to 37 percent in 2011-12 and is expected to grow at a CAGR of 15.96 percent per annum by 2019–20. Furthermore, containerized cargo is expected to grow at 15.5 percent (CAGR) over the next seven years. A large portion of the foreign trade will be through the maritime route that is 95 percent by volume and 70 percent by value. Private investors will be the major contributors to the port sector, with private investments anticipated to be in the order of an approximate Rs 52,000 crore in the port sector during the 12th Five-Year Plan. It is also presumed that non major ports will handle at least 60 to 70 percent of the nation's cargo by 2015. To sum it up, what we need to understand is that ports and their related infrastructure is the nervous system of our economy without

which our economy cannot grow.

Policy Change Required Bureaucratic challenges related to various ministries is the major issue. A policy which can address the maritime needs through one nodal agency is urgently required, which can address issues such as Right of Way for road and rail development, land acquisition, and environment clearance. In my point of view the Ministry of Shipping should be made a nodal agency to facilitate all these issues. Corporatization and land policy for minor ports is also an issue that needs to be addressed immediately.

Anticipated Traffic On completion of Phase I that is a total of five berths, throughput shall be approximately 30 MT. On completion of the entire project that is a total number of 15 berths both on the North and South Banks, cargo handled collectively will be an estimated 90 metric tonnes of clean and dirty cargo. Container traffic anticipated for the year 2013-2014 would be + around 0.8 million TEUs. ____________________________ The Author is Chairman & Managing Director, Dighi Port

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Focus - Maharashtra

Angre A Boon for Konkan's Port Overall Development Economic prosperity closer to maritime navigational sea routes have been a normal trait of human life as trade and commerce boomed with cargo movement in a timely, cost effective and convenient manner.

Atul Kulkarni

Ports have a multiplier impact on the economy of the hinterlands to which they are connected, says By Atul Kulkarni. Maharashtra, which has not taken advantage of its 720-km long coastline for the development of its hinterlands all these years, has at last found in Angre Port, a boon for the economic growth of the Konkan region, author Kulkarni observes.

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Unfortunately, despite having 720 km of coastline, Maharashtra, unlike its neighbour Gujarat, did not attempt to explore this potential to make its industry located in the hinterland globally competitive. As a result, Maharashtra saw an exodus of industrial manufacturing base to the neighbouring Gujarat state. One of the rationale for this shift was the lower logistics cost in that state aided by a slew of minor ports across the coast of Gujarat. Historically, it has been proved that the operational cost of cargo movement by sea is one-tenth that

of road transport and one-third that of rail transport. Hence, logistics cost has the potential to make or mar an industry's prospects. Citing an instance, a UNCTAD report has said that, in Namibia, the cost of all trade-related transactions for a 20foot full container load (FCL), including inland transport from the port to the factory gate, is slightly over $3,000, while, in Germany and Sweden, these costs amount to only $813 and a little more than $500 respectively. All other factors of production remaining the same, a manufacturer in Namibia will never be able to survive competition from a manufacturer in Germany or Sweden. Fortunately for industries located in hinterland Maharashtra, the wait is now finally over as AngrĂŠ Port located at Jaigad in Ratnagiri

SeaPorts BUSINESS


Focus - Maharashtra partnership, on build, own, operate, share and transfer basis with a 50year concessional period, has close to 1 lakh square meter container yard, 20,000-odd square meter dry bulk yard and around 38,000 square meter of liquid bulk storage facility planned by the port in approximately 350 acres land available in the back up area. This area will have ancillary infrastructure such as Container Freight Station, Cold Storage, 3 PL warehouse, etc.

district commenced its operation on 24 April, 2012. It will be an alternate gateway for export import cargo and would facilitate in bringing down the logistics costs in the economy of Western Maharashtra and north Karnataka in general and industrial towns of Kolhapur and Belgaum in particular. Exim cargo from Kolhapur and Belgaum currently is handled from JN Port, which results in land transportation charges of Rs 28,000 per container returned laden from Kolhapur and Rs 35,000 for those from Belgaum. AngrÊ Port will now be a preferred port for this region and would significantly bring down their total logistics cost. With focus on clean cargo, the port – promoted under public-private

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This all weather port with four berths has one berth dedicated for liquid cargo and the balance three being for multipurpose cargo which includes containerized and dry bulk. While the logistics cost will drop down, the population located in the Konkan region and Kolhapur and Belgaum will see a rise in their purchasing power as the commodity cost dwindles down following lower cost incurred on transportation. Hence cost of edible oil, cement, fertiliser prices will come down and contribute towards empowerment of the average layman in this region. The port project would also result in Kolhapur emerging as the new manufacturing hub beyond the golden triangle of Mumbai-PuneNashik and broad base the

industrial development of the state. It will also reduce the vehicular cargo carrying traffic on the Mumbai-Goa Highway and thereby reduce the frequent road accidents and the number of casualties. According to media reports, close to 1,500 deaths have taken place on Mumbai-Goa Highway also known as NH-17 in the past six years, which means two human lives lost every three days. Overall, not only will AngrĂŠ Port result in economic growth but it will also aid in improving the human development index of the region. The port project in Konkan region through public private partnership will also instil confidence that major infra projects can be executed in the region with complete participation from the local population. To reap the benefits of the port development further, the onus is now on the government machinery to set up required road and rail infrastructure to connect the port with the hinterland and spread the + prosperity across the state. ____________________________ The Author is CEO, Chowgule Ports & Infrastructure Private Ltd.

SeaPorts BUSINESS


Focus - Maharashtra

Port

Congestion

The Crippling Effect on India's Exim Trade The slowing down of the economy can be linked to several factors, one of which is the piling up and congestion at the gateway ports, with the advent of the monsoon. The problem in the recent past was so severe that a special task force was set up to clear the mess at the country's most modern port – the Jawaharlal Nehru Port Trust (JNPT) at Nhava Sheva.

Krrishan Singhania

Dr Olav Albuquerque

Congestion at major Indian ports, especially during the months of monsoon, has a crippling effect on the country's exportimport trade, adding up to the slowdown of its economic growth. Authors Krrishan Singhania and Dr Olav Albuquerque analyze in detail the impact of congestion on port operations, shipping lines, movement of containers and the overall maritime trade.

JNPT Port, one of the 12 major ports under the Central Government, handles more than 55 percent of the total container traffic within India. Nearly 90 percent of the all-India port traffic is handled by only the major ports with 139 minor ports under the jurisdiction of the respective state governments playing a subordinate role. Dry and liquid bulk make up about 80 percent of the port traffic in volume with general cargo, including the containerised cargo, constituting the remaining traffic. Though the bulk of Indian trade is carried by sea routes, the infrastructure in the major and minor ports cannot handle trade flows effectively. The major ports together have a capacity of 215 million metric tonnes (MMT) at 1997- 98 levels. During 2001- 2002, the total cargo handled at major ports was 287.56 million tonnes against 281.10 million tonnes during 2000- 2001. The traffic for total ports in India was about 740.3 million tonnes (MT) in 2009 and this is expected to rise to 1,373.1 MT in 2015. Traffic at major ports is expected to grow at a compound annual growth rate (CAGR) of

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SeaPorts BUSINESS


Focus - Maharashtra

7.6 percent from 2010 to 2015 making it imperative to further modernize and reduce the turnover time in the major ports. Congestion can be linked to many factors – one of which is capacity shortage with an inadequate number of terminals to handle the burgeoning container and dry bulk cargo. JNPT is the most modern of the major gateway ports and containers from the north are sent through the port but the port is not able to perform at peak efficiency because the tariff rates are controlled by the Tariff Authority for Major Ports (TAMP). TAMP laid down the guidelines in 2005 which has remained unchanged for the last seven years so that some of the major terminals find it unremunerative to increase their turnover. These guidelines were not tailored to the demands of the private-public partnership model so that profitability will rise with higher levels of productivity. On the contrary, the handling capacity of the TEUs was brought down from 2.0 million to 0.6 million. Captain Dinesh Gautama met the Minister of Shipping to point out that the guidelines framed by TAMP had to be revised. However, nothing emerged from this meeting. So, to meet the challenge and stop the container traffic and dry bulk cargo from being diverted to the 42 minor ports in Gujarat, the Maharashtra Government acting through its Maharashtra Maritime Board (MMB) has tried to develop its six minor ports. These are Rewas-Aware, Dighi, Dhamamkholebap-Jaigad, Angre, Vijayadurg and Reddy. The draft available for container ships is 14.5 metres, claim sources within the

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MMB. This draft is even more than that available at the container terminals of the JNPT and NSICT, affirm these sources. However, although the draft is there, there is no road-rail connectivity with the hinterland, as the Konkan Railway line is at an average distance of 50 km from the coast. “It will be the responsibility of the port developer to build a rail link and road connectivity. He will be permitted to levy toll charges for use of the road and rail network in order to recoup his investments. As TAMP has no say in the minor ports, we are optimistic that the special purpose vehicles which have been set up for these minor ports will recoup their investments within a defined period,” said highly placed sources in the MMB. For the port of Rewas-Aware, Reliance Industries has set up its Special Purpose Vehicle (SPV) called Rewas Port Ltd, for Dight, the Balaji Group has set up its SPV called the Dighi Port Ltd while for the Dhamankholebap-Jaigad, the

Jindal Group set up its SPV known as JSW Jaigarh Port Pvt Ltd. All these SPVs will decide on the tariff to be levied after constructing roads and railway links to the Konkan Railway. Two new berths of 650 metres in length have been constructed for the Dhamankholebap port which had begun operations in August 2009 According to Captain Dinesh Gautama, advisor to CSLA, the Maharashtra Government had floated a tender to set up a port at Alewadi in Palghar district. But sources in the Maharashtra Maritime Board said the Department of Atomic Energy refused to give clearance to set up the port as it would pose a security threat to Bhabha Atomic Research Centre which was in close proximity. “It was only after this that Dighi emerged as an alternative location for a container port. But the Maharashtra Government was emphatic that the those who had applied for the tender for Alewadi port could not go ahead with the work on Dighi port because a new

SeaPorts BUSINESS


Focus - Maharashtra tender would have to be floated,” he said. The Government of India set up a special institute called TERI to study the issue of capacity utilization and congestion in the gateway ports. TERI submitted a report on 31st January 2012 which did not appeal to anybody and so the entire issue was brought to a standstill. In simple layman terms, the issue was simply this: If a major port performed well, it earned more money. But if it performed below average, it saved money. As a result, most of the gateway ports did not increase their turnover so that the congestion and bottlenecks at the gateway ports increased. Due to the congestion, the container traffic and dry bulk cargo was pushed to the 42 non-major ports in Gujarat state. JNPT continues to struggle with more containers than it can possibly handle while the nearby Nhava Sheva International Container Terminal is also struggling with a similar problem. In 2001, the Maharashtra Government floated a tender to

build a container terminal at Alewadi port in Palghar district. A committee visited the site and it was found that this was not feasible to set up a container terminal. The alternative site of Dighi port was suggested but the Maharashtra Government vetoed the idea on the ground that the tender which was taken out was for Alewadi port and not for Dighi port. While Alewadi was identified as a potential site for a container terminal in 1996, Dighi was dropped as a potential container port in post-2001. The main problem for development of a container terminal was the suitability of gantry cranes which are rubber tyred cranes used to pull the containers to and from the stacking yards. The gantry cranes are a vital piece of equipment for all container terminals and significantly, there has been corruption in awarding contracts for these cranes. What adds to the congestion is that the customs levy charges even on empty containers which are not deemed to be “cargo” either under the Customs Act or the Merchant

Shipping Act, 1958. This results in major shipping lines moving empty containers through the road network and passing on the inflated bills to the exim trade. Congestion takes a toll on all shipping lines and container traffic is the worst hit. In Chennai port, ships come in two days before their estimated time of arrival and still wait in stream to be berthed at the quay because of heavy congestion which slows down port efficiency and makes rates for stuffing and destuffing of cargo spiral, said a shipping professional on condition of anonymity. In Maharashtra alone, until the six minor ports start diverting cargo from the major ports, the 42 minor ports of Gujarat will continue to attract container, liquid and dry + bulk cargo. ____________________________ Mr. Krrishan Singhania heads the Mumbai office of Singhania & Co., Dr. Olav Albuquerque is a Senior Associate lawyer in the same firm

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Cold Transport | Refrigeration | Temperature Control | Storage & Distribution

22 23 24 November 2012 HITEX Exhibiton Centre Hyderabad, India 3rd International Exhibition & Conference on Indian Cold Chain Industry

India Cold Chain Show 2012

India Cold Chain Summit 2012

22-23-24 November 2012, HITEX, Hyderabad The event aims to bring India’s entire cold chain Industry on a common platform. This event is a professional world class exhibition focusing on bringing exhibitors of frozen, fresh & cold chain logistics - technology, equipment manufacturers, service providers and end users all at one place.

22-23 November 2012, HITEX, Hyderabad International Conference on Indian Cold Chain Industry

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Focus - Maharashtra

Wadhwan

Port

Prof. Sham Choughule

In the following article, Prof. Sham Choughule argues that there is need for developing one more major port in Maharashtra to ease congestion at JNPT. It will also prevent diversion of cargo to other ports, which adds up to the woes of the exporter- importer community of the state. Prof. Choughule points out that Wadhwan Port located near Dahanu holds great potential for developing into a major port.

One More Major Port a Must to Prevent Cargo Diversion The Indian port sector is divided into two parts. Minor portsare listed in Indian Port Act, 1908 and belong to nine maritime states and major ports controlled by the Central Government.India has 12 major ports along with its 7,517 km of coastline. There are 200 minor ports located along the same coastline. Now, the Central Government is ready to convert one minor port into a major port from each maritime state. But so far only four states have responded to the Centre's offer to develop a major port.

Background The responsibility to develop minor ports is on respective maritime states .But state governments did not have sufficient funds. Up to 1964, the Centre and the states

both were providing funds for minor ports on a 50:50 percent basis. But after 1964, the Central Government had discontinued central financial assistance to states from the 6thFive-Year Plan. The Central Government had abandoned development of “minor ports” and concentrated on its “major ports”. Consequently, major ports were developing and minor ports were languishing due to lack of funds. Therefore, the National Shipping Board had recommended that major ports have to “adapt the nearest minor port” and provide facilities like dredging. But no major port had adapted any minor port. Consequently, there was imbalance in the development of major ports and minor ports. The port of Ratnagiri (BhagwatiBander

Incomplete break water of Bhagwait Bandar –Ratnagiri

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SeaPorts BUSINESS


Focus - Maharashtra project) is a “good” example of “bad” port development. This project was inaugurated in 1964 by then Shipping Minister Raj Bahadur. But this project has never been completed till today due to lack funds and on technical grounds.

Central Comes Back to Minor Ports Now, the Shipping Ministry has proposed setting up of major ports in the East and West coasts. All maritime states have been asked to select sites for the same. The Shipping Ministry has envisaged an investment of more than Rs 22,000 crore for setting up nine new major ports in the country over the next five years. This is part of its maritime agenda. The Ministry plans to augment the capacities in all ports to 2.5 billion tonnes by 2016-17 and more than 3.2 billion tonnes by 2020. The Central Government is also trying to explore the possibility of setting up a new major port or a new shipbuilding yard or a composite port-cum-shipbuilding yard in many states. But state government haveto submit a comprehensive proposal to the Ministry of Shipping.

Karnataka, Kerala and Gujarat for establishing major ports. Teams have been sent to examine the sites. Accordingly the Shipping Ministry has constituted a group for identifying locations for developing big ports in three southern states. Other 12 major and 200 Minor ports are situated along 7515 K M Coastline of India. than this, no proposal has been MT. But the number of major ports received from states for investment has remained the same. in the development of major ports. Consequently, as per world standard, The Shipping Ministry plans to create port capacity of around 3.2 billion tonnes (MT) to handle the expected traffic of about 2,500 MT by 2020 by setting up nine major ports in nine maritime states.

State

Poor Response from State Governments The Shipping Ministry has received three proposals from Andhra Pradesh and one each from

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Oct-Nov 2012

Propose minor port to be developed as major ports

State v/s Central Government

It is understood that, Maharashtra has not 2 Karnataka Site not fixed recommended any site to the Central 3 Andhra Pradesh Nellore-Vishakhapattnam Government for & Vijawada sits for setting setting up a major up major ports port. According 4 Gujarat Sight not fixed unofficial sources, Maharashtra Maritime Board's The traffic V/s major ports stand is that the state has to provide land-water-electricity etc for the The cargo traffic has been increased port project. But once the port starts three times from 272 MT to 600

1 Kerala

Any port with two or more berths with facilities and equipment capable of handling 1,00,000 tonnes per month of cargo from ocean-going ships is categorized as a major port.

existing major ports have crossed its 75 percent utilization and heading towards congestion. Many times shipping companies impose congestion surcharge on trade.

development of port or shipyard project at Azhikal

SeaPorts BUSINESS


Focus - Maharashtra

Year 1950-51 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

No of ports 5 11 12 12 12 12 12 12 12 12 12 12 12

Cargo Handled 19.20 271.20 281.00 287.70 313.30 383.74 423.56 463.75 521.47 532.53 562.74 569.90 600.60

Gujarat Maharashtra Goa Karnataka Kerala Tamil Nadu Andhra Pradesh Orissa West Bengal Daman & Diu Lakshdeep Puducherry Andaman Nocobar Total

Major ports

Proposed No of Major Ports Minor Ports

1 2 1 1 1 3 1 1 1

12

functioning, then the state government does not have any control over major ports. Then, why will any state government reduce its power on its minor port and hand it over to the Central Government? Mumbai and JNPT both have been centralized in one place and remain on the coastline of Maharashtra. There were ship accidents in

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Oct-Nov 2012

1

1 1 1

4

Therefore, Maharashtra is in need of one more container port with a 12/14-meter draft to accommodate 4000TEU vessels. Maharashtra itself will not develop any major port. Then, this was good an opportunity to develop one minor port with cost borne by the Central Government.

Wadhwan Port Can Become a Major Port

State wise Major and Minor Ports States

their containers from Mundra to JNPT under separate contact (Bill of Lading). But this was penalty for importers

Present capacity of Minor Ports in Million Tonnes

42 48 5 10 17 15 12 13 1 2 10 2

182.00 11.07 11.76 4.00 0.14 0.85 18.5 nil nil nil nil nil

23 200

nil 228.32

Mumbai and JNPT port channel in July 2010. This channel was closed to ship traffic for a month. Consequently, container ships were diverted from JNPT to Mundra in Gujarat. Shipping companies had discharged container at MundraPort under ship owner immunities. But this was penalty for Maharashtra based importers and exporters. Later on they brought

Wadhwan near Dahanu is a suitable port location. This was abandoned due to opposition of local fishermen and NGOs. The Maharashtra Government can reconsider this port project to develop it as a major port. This will help in preventing cargo diversion to Gujarat due to congestion at JNPT. Gujarat is major hinterland of JNPT port. Adani Port and SEZ Ltd had already started its container terminal at Hazira port from 15 August 2012 .This container terminal will grab JNPT containers in future. Therefore, Maharashtra needs one more major port on its + coastline urgently. ___________________________ The author Prof: Sham Choughule MBA, (Int Business) from Indian Institute Of Foreign Trade- New Delhi and Visiting faculty-Mumbai University. He is also Ph. D student in Trade & Transport Research Centre.

SeaPorts BUSINESS


New

Product Konecranes has introduced a Hybrid (diesel/electric) power option for its Rubber Tired Gantry cranes (RTGs), which can reduce diesel fuel consumption by more than 60 percent. With the addition of this new power option, Konecranes now provides a full range of solutions for RTGs: Hybrid Power Pack, Diesel Fuel Saver, and two electric power options, the Cable Reel and Busbar. Customers can thus choose either a diesel or electric solution, depending on their business requirements. The Hybrid Power Pack and Diesel Fuel Saver provide the flexibility of diesel power, while the two electric options provide the benefits and convenience of electricity – no diesel, less maintenance, less noise and lower emissions. The Konecranes Hybrid Power

Konecranes Launches Fuel-Efficient RTG 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. The Diesel Fuel Saver provides power-on-demand, matching the RPMs of the RTG engine to the work the machine is doing. It ensures that the diesel engine is running at maximum efficiency at all operating points, without highspeed idling. Compared with conventional diesel engine

operation, the Diesel Fuel Saver can considerably reduce fuel consumption, resulting in cost savings of tens of thousands of Euros per RTG per year in typical operation. The Cable Reel and Busbar options convert the RTG to fully-electric operation, eliminating diesel exhaust emissions and ensuring quiet RTG operation. The latter is an important consideration when the container terminal is located near a residential area. There is no downtime for refuelling, so the RTG can spend more time in productive operation. The time saved by not refuelling can amount to up to one working week per year. Konecranes not only provides a full range of power options, it also provides a full range of services for RTGs, including maintenance and retrofits. When Konecranes modernizes an RTG with a power option retrofit, the company makes sure that the power system is fully integrated with the mechanical and electrical systems. This ensures that the RTG continues to work reliably and efficiently. +


Development Ecology Sustainable Vital for Ports Seaports are historic and commercial infrastructures and significant nodes in logistics and transport chains that form the backbone of national and regional economies. Seaports provide trade gateways attracting commercial infrastructure such as banks, shipping agencies, freight forwarders, stevedores, etc. They amalgamate foreign cultures and ideas that influence nations. Furthermore, ports are places where – ships converge making them vulnerable to maritime accidents, valuable cargoes can be damaged or stolen during handling, repairs and/or planned maintenance is carried out on ships, costly delays can occur, ships are surveyed, shipping services such as agents or brokers are located, cargoes originate or terminate, customs and government policies are implemented, etc. Ports can be first generation (pre1960), second generation (19601980), or third generation (post1980) ports. They can be domestic, transit, feeder, or mega-ports. They may be state- owned, autonomous, municipal- owned, or privateowned. Furthermore, port managements exist to operate with overall cost-leadership, minimize user expenses by ensuring quick ship turnover in port, minimize through transport and port costs, and maximize benefits to port owners, town, region or nation and to generate employment.

However, ports are also sites of environmental pollution originating from land-based activities, ship movements and ports' own activities that impact communities. It is, therefore, increasingly recognized that economic growth in ports must be balanced with environmental protection and social progress. This has led to enhanced appreciation of the need for sustainable development in ports. Sustainable development aims to balance economic, social and environmental growth processes. To enhance sustainable development, ports address environmental concerns in various ways. On a worldwide basis, adequate data about port environmental practices exists mainly in European and American ports. Furthermore, in-depth case analysis and critical examination of the challenges of sustainable port development is limited.


My research analyzed sustainable port policies and practices from various perspectives to understand the dilemmas, challenges and opportunities faced in attaining sustainable development in ports. The research answered questions on policy frameworks adopted by ports to attain sustainable development; specific sustainable practices utilized by ports to manage environmental aspects such as pollution, water quality, ballast water, dredging and disposal of dredged materials, solid waste, hazardous substances, and land/resource use; and, the driving and constraining forces in achieving them. Using a qualitative research strategy and multi-case study design, four port authorities were studied – Port of Long Beach (USA), Port of Rotterdam Authority (The Netherlands), Sydney Ports Corporation

(Australia), and Transnet Ltd. (owners/managers of South African ports). Document reviews of print and internet sources and publicly available materials, e.g., port annual reports and websites, toolkits, manuals, business and general news items, government documents, international organizations' reports and academic/professional books and journal articles were carried out. Findings demonstrated that sustainable development paradigm has gained momentum, albeit to differing degrees, in the functioning, organization and ethos of the case-study ports. The underlying theme of the study indicated a definite progress towards sustainable development. However, practices deemed to be sustainable need to be critically examined from the perspectives of different stakeholders including shippers, port-related businesses,

and local and global communities. Reconciling differences between stakeholders, deploying technological solutions, and capitalizing on economic opportunities, operational efficiencies and cost-savings offered by environmental-friendliness can advance port sustainable development. Public-private partnerships, multi-level governance approach, and policies negotiated by involving all stakeholders were found to foster port sustainability. Furthermore, this study found that globalization necessitates a more holistic and global analysis of port operations and environment practices in order to be truly sustainable. Although the scope of research was limited to case-study ports, the lessons drawn can be constructively applied to any port operating within an institutional system of structured sustainable development. +


Event The 2nd TOC Container Supply Chain (CSC) Middle East Conference will be held in Dubai from 1 to 3 October 2012, under the Patronage of UAE's Minister of Environment & Water, Dr. Rashid Ahmed Bin Fahad, with DP World is as Host Sponsor for the mega event, according to a TOC Worldwide press release, issued in London recently. The Conference brings together cargo owners, logistics providers, ocean carriers, port and terminal operators and other container supply chain stakeholders to examine the key issues and challenges in this fast growing region. The event is expected to assess how new trade with China, India, Africa and growth of petrochemical exports will change the game for Middle East container

Snaps of previous editions of the show

H.H. Sheikh Hasher Bin Maktoum Al Maktoum, Director General, Dubai Department of Information.

2nd TOC CSC ME Meet Dubai Oct 1-3 supply chains. Mohammed Esa, CEO, Dubai and Senior Vice President UAE, Oman & Bahrain for global logistics major Agility is among the senior industry executives confirmed to speak at the Conference. Esa will participate in the Opening Plenary Session, analysing the Middle East's growing trade with Asia and what it means for regional shippers and logistics companies. Asia-Middle East trade looks set to overtake the historically important transatlantic trade in the next few years, and is by no means the only one recording highly positive results. The Plenary Session will outline the scale of container cargo development and flows across the Middle East Gulf over the coming years.

Esa will be joined by Michel Deleuran, Executive Vice President - Maritime for MILAHA, formerly Qatar Navigation, who will explore business opportunities for ports and maritime logistics across the Middle East, and by Chander Kaul, North India Head at NYK Line, who assesses Middle East-India trade dynamics and their effect on container supply chains. Completing the line-up, Shailesh Garg, Director, Drewry Shipping Consultants, will analyse global and regional factors driving investments in port capacity and logistics infrastructure. Within the Gulf Co-operation Council (GCC) countries, massive investments are being undertaken across all sectors from telecom to healthcare as nations diversify their


formerly oil-dependent economies. Oil itself, of course, still plays a hugely important role - except today the focus is on multi-billion dollar petrochemical refining projects as sophisticated process industries migrate from their previous hubs in Western Europe. Burgeoning exports from GCC countries have been underpinned by the increased containerization of petrochemical cargo. A suggested 50 percent rise in exports by 2015 could mean an additional two million TEU volume growth. And it's not just petrochemicals – new forms of aluminium products are also playing their part to drive container exports. “TOC CSC Middle East 2012 takes place at a highly significant time for the economies of the Middle East and neighbouring regions,” said Neil Madden, Conference Editor for TOC Worldwide. “Although partially affected by the downturn in Western Europe and North America, the Middle East's and Africa's growing integration with global trading patterns means that both regions have benefited from

the still robust economic performance of other emerging markets - from China, through India and Turkey, to South America. “This all implies significant shifts in the direction and nature of trade with the rest of the world, as business with OECD countries is rapidly supplanted by emerging markets. India and China in particular are presenting the GCC with substantial opportunities, driving the region's ports to expand capacity both for their own trade needs and also to develop as regional supply chain hubs.” Day 2 of TOC CSC Middle East drills down into shipper supply chains to view how this economic transformation plays out in day-today logistics processes. Suresh Krishnan, Supply Chain Leader, DOW Chemical IMEA, joins a panel of expert speakers including Bander Boitey, Manager, Logistics& Transportation for Saudi Arabian Mining Company (Ma'aden),to discuss the major transport issues affecting logistics operations.

“This year's conference will also address prospects presented by Africa's reinsertion into the global trade arena,” added Madden. “Fuelled by BRICs demand for Africa's vast mineral resources, major investments are taking place across the continent to provide modern maritime connections with entire global economy.”Africa focus panels at TOC CSC Middle East include a debate on the changing logistics dynamics of Suez and North Africa, with new speakers including Mahmoud Ahmed Rezk, Vice Director, Suez Canal Authority, Klaus Holm Laursen, Managing Director, Suez Canal Container Terminal, and Gianluca Di Matteo, Crosstrade Manager, Tarros Lines. TOC Container Supply Chain Middle East will be held at the Dubai World Trade Centre. The event includes 2-day high-level container supply chain conference, free-to-attend port operations and technology seminars, exhibition of port and terminal services, equipment and technology, and industry networking receptions. +


Event

Indian Cold Chain Show 2012, Nov 22-23

Today Hyderabad is a pharma hub of the country and a prominent exporter of generic drugs to Africa and other countries. In addition to a dedicated pharma zone which was established near the Hyderabad International Airport, a Free Trade Zone (FTZ) is also under process. An increase in the production of temperature sensitive pharmaceuticals has notably increased over the last few years, whereas southern India's market for export of sea food, meat and poultry has multiplied threefold ‐ making Hyderabad an ideal destination to host India Cold Chain Show 2012.

Snaps of the Visitors attending the previous editions of the show

Tremendous growth has been seen in various user industries resulting in high demand for cold chain technologies and solutions. Eventually, this has resulted in immediate need for an organised and sophisticated sector. India Cold Chain Show (ICCS) 2012, organised by Reed Manch Exhibitions, will create the largest platform for cold storage, refrigeration, temperature control and distribution & storage sectors. The event will be showcasing more than 200 products, technologies and solutions, from building to running of a cold storage; it will cover all related aspects of cold from farm to form to its proper working, temperature controlled logistics and proper maintenance.

Its all about business at India Warehousing Show and India Cold Storage Show, April 2012

An edge conference discussing opportunities and threat will also be organised concurrently in favour of the sector. India Cold Chain Summit shall take place on 22 and 23 November 2012 at HITEX Exhibition Centre, Hyderabad. The show has received support from major industrial associations like the Federation of Cold Storages Andhra Pradesh, Association of Cold Storages Tamil Nadu, Hyderabad Goods Transport Association and Agra Cold Storage Owners Association. Seeing the wide spectrum of the show and its importance in today's scenario, the Federation of Cold Storages Andhra Pradesh will be organising Annual General Meeting on 24 November alongside the exhibition. Members of the Federation from all over India will be attending the meeting. The President of Federation, Subba Rao, says, “We are excited to be associated with the event and look forward to host biggest gathering of industry experts. We are inviting members of all state cold storage associations in this meeting for discussion”.

Carrier India displaying the best of cold chain solutions

Leading solution providers such as Reefer India, Metalex, Lamilux, Frick India, Kedar, Testo, Microsol and Coign Consulting, among others, are showcasing their solutions during the exhibition, hence, making ICCS a must visit event for the entire Industry. + Jindal Mectec showcasing refrigerated trucks


Event

10th Intermodal Africa 2012 Sept 6 & 7

The 10th Intermodal Africa 2012 South Africa Exhibition & Conference, the biggest annual Container Ports and Terminals Operations Exhibition and Conference on the African continent, is being held on 6 and 7 September at the International Convention Centre, Durban. The two-day Pan-African Exhibition and Conference, hosted by Transnet National Ports Authority will be attended by as many as 35 world-class conference speakers in global transport and logistics as well as 600 senior executive delegates from the world's leading shippers, cargo owners, shipping lines, freight forwarders, logistics companies, ports, terminal operating companies, railway operators, port equipment and services suppliers. There will be a concurrent two-day Trade Exhibition in which 80 companies will exhibit the latest state of the art transport related products and services to the large number of conference participants comprising Pan African, international and regional senior executive decision makers.

Event

1st Black Sea Ports & Shipping 2012, Odessa

This inaugural Black Sea Ports and Shipping 2012, being held in the maritime city of Odessa on 24 and 25 October is set to be the biggest Container Ports, Shipping and Transport Logistics Exhibition and Conference trade event in the Black Sea region.

more than 300 senior executives from the world's leading ports, shippers, cargo owners, shipping lines, freight forwarders, logistics companies, terminal operators, railway operators and port-rail equipment services suppliers.

Odessa Commercial Sea Port is delighted to host the event at the luxurious Five- Star Bristol Hotel in the modern and prosperous city in the CIS nation of Ukraine.

A concurrent two-day trade exhibition comprising more than 50 international exhibition stands will provide a valuable opportunity for companies to market products and services to the participants at this prestigious annual event.

The 1st Black Sea Ports and Shipping 2012 will comprise both a world-class Exhibition & Conference, attended by nearly 30 international business leaders responsible for global transport and logistics, besides

This regional transport and logistics exhibition and conference is designed to promote containerised transport throughout the Black Sea region.


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Event

India Warehousing & Logistics Show 2012, Dec 7-9

India Warehousing & Logistics Show 2012, an International Exhibition and Conference on warehousing, materials handling and logistics industry is being held from 7 to 9 December 2012 at Auto Cluster Exhibition Centre, Chinchwad, Pune.

Snaps of the Visitors attending the previous editions of the show

The Indian logistics market has in last decade witnessed emergence of technology-driven and custom-made warehousing and logistics solutions. The advancements in this sector have resulted in economic growth. The warehousing, logistics and supply chain sectors are slated to further witness a surge in growth in the years to come. The Indian logistics industry is presently estimated at US$ 90 billion. It is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 8.0 percent over the five years to come and a double digit growth in the next 10 years. The demand for high‐tech, ultra‐modern warehousing facilities and end‐to‐end logistics solutions has been on a rise. With soaring investments and shifting focus towards specialised services, the industry is definitely witnessing a lucrative time.

Booth of Motorola Mobility Solutions

Utilising this opportunity, Manch Communications Pvt Ltd joined forces with leading events organiser of the world, Reed Exhibitions to form – Reed Manch Exhibitions (P) Ltd. Reed Manch has a portfolio of B2B trade shows dedicated to the warehousing, cold chain, transport & logistics and materials handling industries. “Pune is a strategic hub for automobile, automotive, electronics, chemical and pharma industries and its proximity to Mumbai, one of India's major commercial hubs makes it a perfect destination to organise such an event,” says Anuj Mathur, Managing Director, Reed Manch Exhibitions Pvt. Ltd. Concurrently organised India Warehousing Conference is scheduled for 7 and 8 December 2012 at Auto Cluster, Pune, which will give industry professionals an opportunity to discuss recent developments and challenges pertaining to this sector's growth.

Booth of Godrej Material Handling and Godrej Storage Solutions

“The exhibition will be showcasing more than 250 brands and will be largely visited by several end‐users including pharma, food, glass, paper, electronics, engineering, steel, minerals and textiles. Warehousing, freight forwarding, 3PL, logistics & supply chain experts will be representing the logistics industry. IWLS with its holistic approach shall bring buyers and sellers at one platform ‐ making it a not to be missed event” concluded Mathur. + Visit www.IndiaWLshow.com for more information on event. Gathering of logistics industry professionals


Event

8th Trans Middle East 2012 Bahrain Nov 20 & 21 Snaps of previous editions of the show

The 8th Trans Middle East 2012 Exhibition and Conference, the biggest annual container ports, shipping and logistics event in the Middle East, will take place in the Kingdom of Bahrain on 20 and 21 November this year. Generously hosted by the General Organization of Seaports Bahrain at the Gulf International Convention and Exhibition Centre, Bahrain, it is expected to attract around 500 international sea freight conference delegates.

A two-day exhibition of more than 80 international companies will provide an ideal marketing platform to promote your products and services to a dedicated target audience of senior executive conference delegates from Europe, The Middle East and Africa (EMEA). The concurrent two-day Conference will feature 30 worldclass senior executive level speakers highlighting latest issues effecting the development of cargo shipping and transport logistics throughout Europe, the Middle East and Africa as well as latest developments in cargo shipping; direct connections to main and feeder air and sea ports worldwide and the application of rail and road as part of the intermodal logistics chain.


Events Domestic & International Domestic Events:

International Events:

Military Logistics India 19 - 20 September 2012 Kothari Auditorium, New Delhi, India www.shephardmedia.com

Transit Kazakhstan 2012 19-21 September 2012 Almaty, Kazakhstan www.transitkazakhstan.kz

6th Express, Logistics & Supply Chain Conclave 27 - 28 September 2012 Hotel Taj Lands End, Mumbai, India www.kamikaze.co.in

TOC Container Supply Chain Dubai 2012 1 - 3 October 2012 Sheikh Rashid Hall, DWTC, Dubai www.tocevents-me.com

India Shipping Summit 2012 8 - 10 October 2012 Trident Hotel, Nariman Point Mumbai, India www.indiashippingsummit.com

China (Shenzhen) International Logistics & Transportation 15 - 17 October 2012 Shenzhen Convention & Exhibition Center, Shenzhen, Guangdong, China www.scmfair.com

4th Gujarat Junction 2012 6 - 7 November, 2012 The Grand Bhagwati, Ahmedabad, India www.gujaratjunction.com India Cold Chain Show 2012 22 - 24 November 2012 HITEX Exhibition Centre, Hyderabad, India www.indiacoldchainshow.com India Warehousing & Logistics Show 2012 7 - 9 December 2012 Auto Cluster Exhibition Centre, Chinchwad, Pune, India www.indiawlshow.com 4th CONquest 2012 11 December 2012 Le Meridien, Janpath, New Delhi, India www.conquest.net.in CeMAT INDIA 2012 21 - 24 November 2012 India Expo Center, Delhi NCR, India www.cemat-india.com

Breakbulk Americas Transportation 8 - 11 October 2012 George R. Brown Convention Center & Hilton Americas Houston, TX, USA www.joc.com/events

TPM Asia 17 - 18 October 2012 InterContinental Shenzhen Hotel, Shenzhen, China www.tpm-asia.com 1st Black Sea Ports and Shipping 2012 24 - 25 October 2012 Bristol Hotel, Odessa, Ukraine www.transportevents.com JOC Canada Maritime 7 - 8 November 2012 Delta Meadowvale Hotel and Conference Centre, Mississauga, ON, Canada www.joc.com/events

+

Breakbulk Turkey Congress 13 - 15 November 2012 Divan Istanbul Hotel, Istanbul, Turkey www.joc.com/events


Logitrans Transport Logistics 2012 15 - 17 November 2012 9 -10 Hall, Istanbul Expo Center, Istanbul www.logitrans.com.tr 8th Trans Middle East 2012 20 - 21 November 2012 Gulf International Convention and Exhibition Centre, Kingdom of Bahrain www.transportevents.com Intermodal Europe 2012 27 – 29 November 2012 Amsterdam Rai www.intermodal-events.com Breakbulk South America Congress 4 - 5 December 2012, Renaissance Sao Paulo Hotel, Sao Paulo, Brazil www.joc.com/events TOC Container Supply Chain Americas 2012 4 - 6 December 2012 El Panama Hotel, Panama City, Panama www.tocevents-americas.com 7th Philippine Ports and Shipping 2013 30 - 31 January 2013 The Peninsula Manila, The Philippines www.transportevents.com 7th Indian Ocean Ports and Logistics 2013 27 - 28 February 2013 Rainbow Hotel, Beira, Mozambique www.transportevents.com TPM Conference 3 - 6 March 2013 Long Beach Convention Center & Hyatt Regency Long Beach, Long Beach, CA, USA www.joc.com/events

Breakbulk China 2013 12 - 15 March 2013 www.joc.com/events TOC Container Supply Chain Asia 12 - 14 March 2013 HKCEC, Hong Kong www.tocevents-asia.com 11th Intermodal Africa North 2013 27 - 28 March 2013 King Fahd Palace Hotel Dakar, Senegal www.transportevents.com Intermodal South America 2013 2 - 4 April 2013 Transamerica Expo Centre, Sao Paulo, Brazil www.intermodal.com.br Breakbulk Africa Congress 2013 15 - 18 April 2013 www.joc.com/events 1st Med Ports 2013 23 - 24 April 2013 Hilton Alexandria Green Plaza, Egypt www.transportevents.com Breakbulk Europe 2013 14 - 16 May 2013 www.joc.com/events 9th Trans Middle East 2013 29 - 30 May 2013 Phoenicia Inter Continental Hotel, Beirut, Lebanon www.transportevents.com Transport Logistic 2013 4 - 7 June 2013 New Munich Trade Fair Centre, Munich, Germany www.transportlogistic.de 11th ASEAN Ports and Shipping 2013 11 - 12 July 2013 Windsor Plaza Hotel, Ho Chi Minh City, Vietnam www.transportevents.com

TOC Container Supply Chain Europe 2013 25 - 27 June 2013 Ahoy, Rotterdam, The Netherlands www.tocevents-europe.com 10th Navalshore 2013 6 - 8 August 2013 Sulamerica Convention Centre, Rio de Janeiro, Brazil www.ubmnavalshore.com.br Marine Maintenance World Expo 2013 10 - 12 September 2013 Brussels, Belgium www.marinemaintenanceworldexp o.com 2nd Black Sea Ports and Shipping 2013 11 - 12 September 2013 The Marmara Taksim, Istanbul, Turkey www.transportevents.com 8th Southern Asia Ports, Logistics and Shipping 2013 23 - 24 October 2013 The Leela Kempinski Hotel Mumbai, India www.transportevents.com 11th Intermodal Africa South 2013 28 - 29 November 2013 Feather Market Convention Center, Port Elizabeth, South Africa www.transportevents.com Marintec China 2013 3 - 6 December 2013 Shanghai New International Expo Centre, Shanghai, China + www.marintecchina.com


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