Category Archives: Shipping

MMC partners with Ramco Systems to digitally transform five ports in Malaysia

MMC Corportation Berhad (MMC) has embarked on a major digital transformation of five ports, in partnership with global software solutions leader, Ramco System. The digital transformation will consolidate and standardise processes of MMC’s ports, which include Pelabuhan Tanjung Pelepas Sdn Bhd (PTP), Johor Port Berhad, Northport (Malaysia) Bhd, Penang Port Sdn Bhd and Tanjung Bruas Port Sdn Bhd. The group-wide transformation was awarded based on the successful implementation of Ramco integrated Enterprise Resource Planning (ERP) system at one of Malaysia’s most advanced container terminal – PTP. This technological transformation programme will propel Malaysia to the forefront of global best-in-class ports – which plays a crucial role in mitigating supply chain challenges, including recent disruptions due to COVID-19. Building on an earlier implementation by Ramco Systems of an ERP system for PTP where about 90 per cent of the system has achieved Go-Live in phases over the past 10 months, the enhanced rollout will digitalise processes, while providing real-time business information. MMC will also be able to consolidate various business support functions (namely Finance, Human Resource, Enterprise Asset Management, Supply Chain Management, and Logistics Management) across ports into a single integrated ERP system – all accessible on an integrated dashboard. Over 8,000 MMC employees across the ports will be plugged into the platform on their computers/mobile devices which now eliminates duplication errors and other bottlenecks, allowing efficient business processes and enhanced data visibility. The system will also include smart features such as Artificial Intelligence and Machine Learning (AI/ML), which will provide employees with greater insight as well as predictive alerts and chatbots which can reduce human error and save time. This will lay the foundation for MMC’s broader strategy to enhance …

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DP World Mundra Terminal handles over 13 million TEUs & 10mn containers since 2003, sets record

DP World operated Mundra International Container Terminal (MICT) has set yet another record for being the first container terminal in Gujarat to successfully handle more than 13 million TEUs (twenty-foot equivalent units), and 10 mn Containers, since its inception. This milestone comes with the terminal achieving its all-time highest monthly throughput of 123,611 TEUs by handling 70 vessels in March 2021. MICT has registered a remarkable 60 per cent year-on-year growth on Origin Destination (OD) volumes over March 2020, surpassing overall India’s OD growth of 29.8 per cent for the same period. MICT is the first terminal at Mundra, the largest Port on western coast of India. From handling 20,000 TEUs in its first year of operations in 2003, the terminal has emerged as the gateway for the North and the North West regions of the country while pioneering the container revolution in the Kutch Region. MICT has achieved this breakthrough by handling more than 10,000 container vessels while serving international trade routes and contributing to the growth of India’s container trade and economic development. MICT continues to excel in areas of operations efficiency and deploying best-in-class infrastructure and technology, thereby, putting MICT in the top quartile of the best performing container terminals globally. The terminal’s proximity to North India market and excellent rail connectivity to the key ICDs and hinterland has made Mundra a strong first choice for Exporters and Importers. In the last quarter of 2020, MICT added two new mainline services to the Far East, providing direct and cost-effective connections. The terminal offers six mainline vessels and a vast network of feeder services which provide customers with faster and reliable connections to global markets. Capt. Sujeet Singh, …

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CMA CGM Group & HPCSL launch first block train between Mundra and ICD Sanand, serving India’s hinterland

The CMA CGM Group and Hasti Petro Chemical & Shipping (HPCSL), known as The Thar Dry Port also, have jointly received their first ever Block Train from Mundra to the Thar Dry Port (ICD) at Sanand, Gujarat. This new service is the first block train by a shipping line between Mundra and ICD Sanand. The fully loaded 90-TEU train was flagged off from Mundra port on April 2nd and was received at ICD Sanand on April 3rd in the presence of representatives from The Thar Dry Port (A unit of Hasti Petro Chemical & Shipping) and CMA CGM India. The new weekly block train service is the first and only block train service by any shipping line, for Ahmedabad, Ex- Mundra. The train provides fixed window and dedicated service for customer import shipments ensuring a reliable departure schedule. The schedule departure of train from Mundra Port will be on every Saturday/Sunday. This new service from Mundra to Sanand offers customers effective cargo handling and provides priority loading for urgent import shipments with no additional cost. Another key feature of the service is to have no partial loading from Mundra, as all the containers will arrive together as per bill of lading (BL). Going forward, the CMA CGM Group is planning on streamlining the service even more to have a priority connection with the Group’s Indamex and EPIC services, two major services of CMA CGM India, calling the Gujarat region. The company is developing sustainable door-to-door solutions to allow its customers to significantly reduce the carbon footprint of their transported goods. Compared to cargo movement via truck, the block train option reduces CO2 emissions by up to 67%.

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Adani Ports increases its stake in Krishnapatnam Port to 100%, invests Rs 2,800 crore

Adani Ports and Special Economic Zone (APSEZ) is announcing the acquisition of the residual 25 per cent stake in Adani Krishnapatnam Port (Krishnapatnam Port) for Rs 2,800 crore. This will result in APSEZ increasing its stake from 75 per cent to 100 per cent in Krishnapatnam Port. Together with the 75 per cent ownership acquired in October 2020, the acquisition implies an enterprise value of Rs 13,675 crore implying an EV/ FY21 EBITDA multiple of 10.3x. Krishnapatnam Port is located on the east coast of India in Nellore district of Andhra Pradesh (~180 km from Chennai Ports) close to the border between Andhra Pradesh and Tamil Nadu. Krishnapatnam Port is an all-weather, deep water port has multi-cargo facility with a current capacity of 64 MMTPA. With a waterfront of 20 km and 6,800 acres of land, Krishnapatnam Port has a master plan capacity of 300 MMTPA and a 50-year concession. The port is expected to have volumes of 38 MMT, revenues of Rs. 1,840 cr and EBITDA of Rs. 1,325 Cr in FY21. Since the acquisition, Krishnapatnam Port has focused on business process re-engineering which has resulted in EBITDA margins improving from 57% in FY20 to 72% in FY21. Karan Adani, Chief Executive Officer and Whole Time Director, APSEZ said, “The consolidation of our ownership in Krishnapatnam Port reinforces APSEZ’s stride towards 500 MMT by 2025 and achieving our broader strategy of cargo parity between west and east coasts of India. Krishnapatnam Port is on track to handle double the traffic by 2025 and will deliver high growth through a multi-product and cargo enhancement strategy while enhancing return on capital employed. We are confident that we will be able to …

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JNPT handles highest container volume of 527,792 TEUs during March 2021

Jawaharlal Nehru Port Trust (JNPT) has registered a throughput of over 4.7 million twenty-foot equivalent units (TEUs) in container handling as against 5.03 million TEUs during FY 2020. The total traffic handled at JNPT during the Financial Year 2020-21 is 64.81 million tons as against 68.45 million tonnes in FY 2019-20. The total container traffic handled in March 2021 stood at 527,792 TEUs, which is the highest container volume handled in a month, since inception. The total traffic handled at JNPT during the month of March-2021 is 7.33 million tonnes as against 5.93 million tonnes in March 2020, which is 23.53 per cent higher than the total traffic over the same month of last year. Major improvement in average turnaround time of all vessels by 2.62 per cent i.e from 29.42 hrs to 28.64 hrs as well as for container vessels by 2.01 per cent i.e from 25.82 hrs to 25.30 hrs from Pilot Boarding to De-boarding in FY 2020-21 in comparison with FY 2019-20. JNPT has five container terminals, taking an overview of the numbers terminal wise, APM Terminals Mumbai (GTI) handled 1.66 million TEUs, DP World NSIGT with 0.78 million TEUs, DP World NSICT with 0.75 million TEUs and the Port owned JNPCT with 0.54 million TEUs. The Newly developed BMCT handled around 0.93 million TEUs during the FY 2021. NSICT and BMCTPL have recorded 41.33% and 15.36% growth in FY 2020-21 in comparison with FY 2019-20 respectively. JNPT BPCL Liquid Cargo Terminal handled highest LPG during FY 2020-21 of 1.04 million tonnes from 70 vessels which is 22.35% higher as compared previous highest of 0.85 million tonnes from 57 vessels in FY 2019-20. JNPT also handled 6,097 …

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Chairman-Elect, FFFAI urges for smooth connectivity and logistics infrastructure to strengthen trade among BBIN

In view of tremendous potential of cross border trade between Bangladesh, Bhutan, India and Nepal (BBIN) Shankar Shinde, Chairman Elect, the Federation of Freight Forwarders Associations in India (FFFAI) has recommended for seamless multimodal connectivity and strong logistics infrastructure in each of the above countries. Speaking at a webinar on ‘UN TIR System and its benefits of expansion to Bangladesh and other BBIN countries’, which was organised by FICCI in association with IRU Geneva, ICC Bangladesh and FFFAI, Shinde observed that accession to TIR Carnet would be immensely beneficial for the hassle-free cross border trade in this region. It would be pertinent to mention that FFFAI is one of the associates of TIR Carnet and have been working with the Government of India for International North South Transport Corridor (INSTC) project, under TIR Carnet. He also emphasised on well-defined policies to be framed up by the respective governments and well-trained officers including Customs and allied agencies engaged at the border check posts. Based on the INSTC route experience, where FFFAI had launched a trial run of containers, Shinde stated that point to point vehicle movement would be the pragmatic solution instead of re-working of unloading and reloading transshipment, to save cost and reduce dwell time. Accordingly, accession to TIR would expedite the process in this regard. He, however, highlighted various other challenges as regard to cross border cargo transportation, as witnessed in INSTC route. Shinde further suggested that the governments will have to provide more impetus on private logistics companies, NVOCC or multimodal logistics operators’ participation in the BBIN project and also important would be to create a BBIN website portal with complete information for trade participation and addressing issues. …

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JNPT inaugurates Inter Terminal Route, reducing the container movement distance from 5 kms to 2.5 kms in one direction

In a major push and with a vision to achieve seamless trade, new Inter Terminal Route connecting BMCT Terminal with all the other four Container Terminals of JNPT was inaugurated at Jawaharlal Nehru Port Trust (JNPT). The newly inaugurated route will reduce the container movement distance between BMCT and the other JN Port Terminals from the existing 5 kms to 2.5 kms in one direction. This route will be used exclusively for the movement of TP (Transhipment) & ITRHO (Inter Terminal Rail Handling Operation) containers between BMCT and other terminals of JN Port offering a smooth and continuous flow of ITRHO and TP containers. The Inter Terminal Route was inaugurated by Sanjay Sethi, IAS, Chairman, JNPT in the presence of Unmesh Sharad Wagh, IRS, Deputy Chairman, JNPT and HODs, JNPT Terminal Operators and other stakeholders. Sethi said, “The inauguration of Internal Terminal Route will help in smoothening the overall trade cycle and further enhance our efficiency. It will further streamline the movement of rail containers between BMCT with all the other four Container Terminals at the port. JNPT has also taken various other initiatives under ‘Ease of Doing Business’ that has helped save significant amount of time and cost for the EXIM community.” ITRHO aims to maximise train placement, track productivity, efficiency, cost effective handling, reduce dwell time of import ICD boxes, connecting export ICD boxes to respective terminals in time and also increase rail quotient at JNPT. Trade will be benefitted, as the new route would ensure timely connection of export containers arriving by trains in mixed condition to the particular vessel in any of the terminals and also enhance the train handling time at JN Port. Overall the …

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Adani Ports to acquire controlling interest of 58.1% in Gangavaram Port for Rs 3,604 crore

The Adani Ports and Special Economic Zone (APSEZ) is acquiring the 58.1% stake held by DVS Raju and family in Gangavaram Port (GPL). The acquisition is valued at Rs. 3,604 crore and subject to regulatory approvals. APSEZ had announced acquisition of Warburg Pincus’s 31.5 per cent stake in GPL on March 3, 2021 and together with this acquisition, APSEZ would have 89.6 per cent stake in GPL. GPL is located in the northern part of Andhra Pradesh next to Vizag Port. It is the second largest non-major port in Andhra Pradesh with a 64 MMT capacity established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059. It is an all-weather, deep water, multipurpose port capable of handling fully laden super cape size vessels of up to 200,000 DWT. Currently, GPL operates 9 berths and has free hold land of ~1,800 acres. With a master plan capacity for 250 MMTPA with 31 berths, GPL has sufficient headroom to support future growth. The Port handles a diverse mix of dry and bulk commodities including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Sugar, Alumina, and Steel. GPL is the gateway port for a hinterland spread over 8 states across eastern, southern and central India. GPL will benefit from APSEZ’s pan-India footprint, logistics integration, customer centric philosophy, operational efficiencies and strong balance sheet to deliver a combination of high growth by enhancing market share and add additional cargo types and improved margins and returns. In FY20, GPL had a cargo volume of 34.5 MMT, revenue of Rs. 1,082 crore, EBITDA of Rs. 634 crore (59% margin) and PAT of Rs. 516 crore GPL is debt free with a cash balance of over …

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India Ratings gives logistics stable outlook in FY22, sees demand growing

Mentioning the commissioning of a dedicated freight corridor, India Ratings and Research (Ind-Ra), reports that India’s logistics sector looks stable in financial year 2021-22 as a recovering economy builds demand. Adani Ports and Special Economic Zone was among ports that reported resilient volumes in FY21. Ind-Ra estimates an 8 per cent year-on-year improvement in volumes for Indian ports in FY22, compared to an estimated 4 per cent year-on-year decline in FY21. The 8 per cent year-on-year rise will be led by private ports, which in five years have displayed a median multiplier (vs real GDP growth rate) of 1.4x, thus outperforming growth from major ports. India’s ports volumes closely follow the country’s GDP growth, with container growth coming in 2x of overall cargo volumes. For inland container depot/container freight station operators, Ind-Ra forecasts a healthy pickup in volumes though competition remains intense and realisations remain soft. The reduced dwell time after the commissioning of Dedicated Freight Corridor and increased double stacking volume will support higher operating efficiencies, which is likely to support EBITDA margins in FY22-FY23. For warehouses, Goods and Services Tax led consolidation and rationalisation of occupancy rates could continue in FY22.

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Cargo traffic at 12 major ports falls for the 11th consecutive month in February this year

According to ports’ apex body the Indian Ports Association (IPA), India’s top-12 ports witnessed considerable decline in cargo traffic for the 11th straight month in February to 600.62 million tonnes (MT). Cargo traffic at 12 major ports that are under the control of the Centre dropped by 6.61 per cent to 600.62 million tonnes (MT) during April-February this fiscal, compared with 643.10 MT in the year-ago period, IPA said in its latest report. All ports, barring Paradip and Mormugao — which recorded 0.27 per cent and 30.93 per cent increase in cargo handling to 102.90 MT and 19.28 MT respectively, saw negative growth. Cargo handling at Kamrajar Port (Ennore) nosedived 23.29 per cent during April-February to 22.23 MT, while ports like Mumbai and VO Chidambaranar saw their cargo volumes dropping by over 12 per cent during the said period. Cochin and Chennai ports suffered a sharp decline of about 10 per cent. JNPT saw a decline of 8.06 per cent in cargo volumes, while Deendayal Port Trust and Kolkata ports logged an over 6 per cent drop in cargo volume. Cargo handling at New Mangalore and Visakhapatnam slipped 5.30 per cent and 4.87 per cent, respectively. India has 12 major ports under the control of the central government — Deendayal (erstwhile Kandla), Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (earlier Ennore), VO Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia). In the wake of the Covid-19 pandemic, sharp declines were witnessed in the handling of containers, coal and POL (petroleum, oil and lubricant), among other commodities. These ports handle about 61 per cent of the country’s total cargo traffic. They handled 705 MT of cargo last fiscal. Ports, Shipping and …

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