Category Archives: Shipping

FFFAI meet Shipping Minister to discuss reduction in transaction cost and dwell time

With a view to improve the ease of doing business at grass root level enabling reduction in dwell time in EXIM trade and to discuss strategic and operational issues currently faced by customs broking industry. The office bearers of the Federation of Freight Forwarders Association in India (FFFAI) headed by its Chairman, AV Vijaykumar met with Mansukh Mandaviya, Minister of State (Independent Charge) Ministry of Shipping and various other ministry officials in New Delhi. The association presented the issues of customs brokers and freight forwarders before the minister for reduction in transaction cost and dwell time by improving infrastructure at various ports and Inland Container Depots (ICDs); increasing connectivity with ICDs and gateway ports and enhancing costal cargo movement.

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Gateway Distriparks to sell Chandra CFS & Terminal Operators in Chennai

Gateway Distriparks (GDL) has entered into a share purchase agreement to sell its second CFS in Chennai, held in its wholly owned subsidiary – Chandra CFS & Terminal Operators (Chandra CFS) to Team Global Logistics (TeamGlobal), for a consideration of Rs 47 crore and an amount equal to earnings before depreciation and amortisation for a period of April 1, 2019 to closing date. Further, TeamGlobal will also be placing Rs2 crore in an escrow account as a commitment fee, which will be adjusted as part of the purchase consideration on closing. The transaction is expected to close in 45 days. Chandra CFS is strategically located between Chennai & Ennore ports. For FY 2018-19, Chandra handled around 12,000 TEUs last year. The company posted a Total Income of Rs9 crore, EBITDA of Rs1.33 crore and loss before tax of Rs0.62 crore. GDL will continue to operate its first CFS in Chennai where it handled over 87,000 TEUs last year.

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US-China trade war helps India gain US$ 775 million in additional exports: UNCTAD

Due to the trade diversion effects of Washington’s tariff war with China, India gained about $755 million in additional exports, mainly of chemicals, metals and ore, to the US, in the first half of 2019 , says a study called ‘Trade and trade diversion effects of United States tariffs on China’ by UNCTAD, the UN trade and investment body. It shows that the ongoing US-China trade war has resulted in a sharp decline in bilateral trade, higher prices for consumers and trade diversion effects and increased imports from countries not directly involved in the trade war. The US tariffs on China resulted in India gaining $ 755 million in additional exports to the US by selling more chemicals (US$ 243 million), metals and ore (US$181 million), electrical machinery (US$ 83 million) and various machinery (US$ 68 million), as well as increased exports in areas such as agri-food, furniture, office machinery, precision instruments, textiles and apparel, and transport equipment, UNCTAD said.

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Two new services introduced at DP World terminals

DP World announced the two new weekly services that have been introduced at its terminals to connect with African and European market. The new services are jointly operated by global shipping line – Hapag Llyod, Ocean Network Express (ONE), Orient Overseas Container Line (OOCL), YANG MING Line (YML) and COSCO, it said. DP World welcomes two new services at its terminals in Nhava Sheva, Chennai and cochin. The new weekly services, Middle East-India-Africa Express (MIAX), will connect DP World operated Nhava Sheva International Container Terminal (NSICT) with West and South Africa while the South India Europe Express (IEX) will connect Chennai Container Terminal (CCT) and India Gateway Terminal (IGT) with European markets. Rizwan Soomar, CEO & MD, DP World Subcontinent, said, ” We are delighted to welcome two new services at three of our terminals in India. The launch of IEX and MIAX- will create stronger opportunities for EXIM cargo and for Indian manufacturers to cater to the global market.

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First-ever containerised cargo on Haldia-Guwahati flagged off

Inland Waterways Authority of India (IWAI) set sail the first container cargo from Haldia Dock Complex to Pandu in Guwahati via India Bangladesh Protocol (IBP) route, in line with the Centre’s focus on improving connectivity to Northeast. Gopal Krishna, Shipping Secretary, Government of India flagged off the vessel, MV Maheshwari, carrying 53 containers of petrochemicals, edible oil and beverage. The 12-15 days voyage will be an integrated IWT movement via National Waterway-1 (river Ganga), NW-97 (Sunderbans), Indo-Bangladesh Protocol (IBP) route and NW-2 (river Brahmaputra). This is the first ever containerised cargo movement on this Inland Water Transport (IWT) route. The 1425 km long movement is expected to establish the technical and commercial viability of IWT mode using these multiple waterways even as a series of pilot movements are planned on the stretch. The latest IWT movement is aimed at providing a fillip to North East Region’s industrial development by opening up an alternate route for transportation of raw material and finished goods.

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National Grid for Ports to be developed: Mandaviya

The Ministry of Shipping is working on a plan to develop a National Grid for Ports based on synergy between the Major and non-major ports in the country that can bring port-led development in the country. Mansukh Mandaviya, Minister for Shipping and Chemical & Fertilizers, Government of India, said, “The development plan for ports and the National Grid for ports will be ready in six months. An extensive study in identifying the specific cargo linked to the ports and the downstream industry will be done for the revival of each port.” According to him, there are 204 non-major ports in the country, of which only 44 are currently functional.

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Hyderabad to be the domestic cargo hub for DP World

DP World plans to make Container Multimodal Terminals (CMTL), its Hyderabad Private Freight Terminal (PFT), as a multi-modal distribution hub for South India cargo. The company has already established private freight terminals and rail-road linkages connecting the city with other trading hubs across the country. The global trade enabler will leverage its rail-road transport connectivity and warehouses. The announcement was made during the conference themed ‘India’s Logistics Sector on the Path of Transformation’ in Hyderabad. The company said Hyderabad will act as the catalyst to drive more trade in the state of Telangana. CMTL houses a Multi-Modal Logistics Park (MMLP) at Thimmapur (near Hyderabad in Telangana state) with proximity to National Highway 7. The MMLP is equipped with a railway siding and over 250,000 sq ft. of warehousing to cater to the needs of both domestic and EXIM trade.

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PM inaugurates multi-modal terminal at Sahibganj in Jharkhand

The Prime Minister inaugurated the state-of-the-art terminal through a two -way digital communication system at an event in Ranchi, Jharkhand. This is the second of the three multi modal terminals being constructed on river Ganga under Jal Marg Vikas Project (JMVP). The new secretariat building in the state capital will come up at an estimated cost of Rs 1238.92 crore. The cargo terminal, which was inaugurated online by the prime minister from here, has been built by Inland Waterways Authority of India on River Ganga at Sahibganj. It will have a cargo storing capacity of 30 lakh tonne per year, a stockyard and parking and berthing space for two vessels. It will also have offices of 32 departments.

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CMA CGM Logistics Park Dadri begins block train service from ICD Dadri to Mundra

CMA CGM Logistics Park Dadri has started planning and running dedicated block train services, with all-export containers booked by its CFS, from ICD Dadri to Mundra in association with CONCOR Dadri. Capt. V. M. Bawa, CEO, CMA CGM Logistics Park Dadri, informs, “The services would be on regular/weekly basis and this initiative will benefit the export trade at ICD Dadri in offering direct train services to Mundra with average transit time of approx. 72 hours.” The first dedicated block train service, comprising 45 FEUs to Mundra, was flagged off on the night of September 2, 2019 from ICD Dadri by Capt. Bawa in the presence of CONCOR staff and the Station Superintendent of Dadri station. The second dedicated block train from ICD Dadri departed soon after, on September 4 for Mundra with another 45 FEUs booked by the CFS.

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CBIC to identify what is slowing cargo movement

The Union Government is conducting a nationwide survey to identify delay points in the cargo movement. The survey is being conducted simultaneously across 15 ports — sea, air, land and dry — that account for 81 per cent of bills of entries for import and 67 per cent of shipping bills for export. From August 1-7, surveys were conducted for seaport and inland container depots and for air cargo, the survey is getting conducted in the first week of September. The exercise to identify bottlenecks and their removal is supposed to expedite the cargo movement and escalate the trade. The Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, is carrying out the survey. The nationwide survey will look at causes of delays in movement of consignment caused by regulatory constraints, logistical issues in supply chains, or lack of infrastructure.

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