Category Archives: Shipping

According to ports’ apex body IPA, India’s top-12 ports witnessed a considerable decline in cargo traffic for the tenth straight month in January to 542.13 million tonnes (MT). Cargo traffic at 12 major ports that are under the control of the Centre dropped by 7.44 per cent to 542.13 million tonnes (MT) during April-January this fiscal, compared with 585.73 MT in the year-ago period. Mansukh Mandaviya, Ports, Shipping and Waterways Minister said the cargo traffic at 12 major ports declined considerably March onwards due to the adverse impact of the COVID-19 pandemic. All ports, barring Paradip and Mormugao — which recorded 0.24 per cent and 28.12 per cent increase in cargo handling to 93.60 MT and 17.19 MT respectively, saw negative growth. Cargo handling at Kamrajar Port (Ennore) nosedived 25.94 per cent during April-January to 19.66 MT, while ports like Mumbai and Chennai saw their cargo volumes dropping by over 12 per cent during the said period. Cochin and V.O. Chidambaranar ports suffered a sharp decline of over 11 per cent. JNPT saw a decline of 9.76 per cent in cargo volumes, while Deendayal Port Trust, New Mangalore and Kolkata ports saw over 6 per cent drop in cargo volume. Cargo handling at Visakhapatnam slipped 4.36 per cent. 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), V. O. 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 …

Adani Ports and Special Economic Zone completed the acquisition of 100 per cent stake at Dighi Port (DPL) for Rs 705 crore. The company had intimated the commencement of this development to stock exchanges on March 6, 2020. DPL, the 12th port to join APSEZ’s string of economic gateways across the eastern and western coast of India would establish the company’s footprint in Maharashtra, the largest contributor to India’s GDP. This would enable APSEZ to service customers in Maharashtra which includes the highly industrial areas and development in the Mumbai & Pune regions. APSEZ plans to invest over Rs 10,000 crore to develop the port into a multi-cargo port with world class infrastructure as well as investing in the development of rail & road evacuation infrastructure for seamless and efficient cargo movement. The company will strengthen and repair existing infrastructure and invest in development of facilities for dry, container, and liquid cargo. DPL will evolve as an alternative gateway to JNPT and will invite and support the development of port-based industries on port land. The development of DPL will lead to further investments across various industries such as consumer appliances, metals, energy, petrochemicals, and chemicals business in Maharashtra and provide a tremendous fillip to the industrial development and growth in Maharashtra. These investments will contribute to employment generation and socio-economic development of the port’s hinterland. As per the terms & requirements of the Resolution Plan, the transfer of concession rights has also been approved by the Maharashtra Maritime Board (‘MMB’) and APSEZ has settled the dues of financial creditors, MMB, and other admitted costs and claims. Karan Adani, CEO and Whole Time Director of APSEZ said, “The successful acquisition of …

International Cargo Terminals (ICT), through its subsidiary Delhi International Cargo Terminal (DICT) and CMA CGM announce the start of the second weekly block train between Mundra and Sonepat. With this second weekly block train, CMA CGM and DICT assure more efficient dedicated services for their customers based in the region by helping them bring their cargo to locations on time. The two weekly trains will run between Mundra to DICT Sonepat on Tuesday/Wednesday for the first block train and Saturday/Sunday for the second block train DICT started the first block train for CMA CGM in August 2019 and to date, the two companies have jointly handled 86 block trains. This second weekly block train between Mundra port and Sonepat is one of several initiatives the CMA CGM Group has implemented to boost capacity to meet its customers’ needs and make the shipping and logistics supply chain as seamless as possible. CMA CGM is developing sustainable door-to-door solutions to allow customers to reduce the carbon footprint of transported goods significantly. Compared to cargo movement via truck, the block train option reduces CO2 emissions by up to 67%. At the start of the second block train service from Mundra to Sonepat, Atit Mahajan, General Manager, CMA CGM India, said, “CMA CGM Group is on a strategic expansion in India keeping the requirements of our customers as our prime focus. This second train service from Mundra to NCR region will allow our customers to benefit from an extended guaranteed capacity coupled to more flexibility with two departures per week.” Two major Groups are committed to providing reliable solutions for their Indian customers. Present in India for more than 30 years, the CMA CGM …

Parliament has passed the Major Port Authorities Bill, 2020 focusing on reorienting the governance model in central ports in line with the successful global practices. Mansukh Mandaviya, Minister of State (I/C) for Ports, Shipping &Waterways has moved the bill in Rajya Sabha today and it was passed. Now the Bill will go to the President of India for his assent. With a view to promote the expansion of port infrastructure and facilitate trade and commerce, the Major Port Authorities Bill 2020 bill aims at decentralizing decision making and to infuse professionalism in governance of major ports. It imparts faster and transparent decision making benefiting the stakeholders and better project execution capability. The Bill is aimed at reorienting the governance model in central ports to landlord port model in line with the successful global practice. This will also help in bringing transparency in operations of Major Ports. This will empower the Major Ports to perform with greater efficiency on account of full autonomy in decision making and by modernizing the institutional framework of Major Ports. The Bill is more compact in comparison to the Major Port Trusts Act, 1963 as the number of sections has been reduced to 76 from 134 by eliminating overlapping and obsolete Sections. The new Bill has proposed a simplified composition of the Board of Port Authority which will comprise of 11 to 13 Members from the present 17 to 19 Members representing various interests. A compact Board with professional independent Members will strengthen decision making and strategic planning. Provision has been made for inclusion of representatives of State Government in which the Major Port is situated, Ministry of Railways, Ministry of Defence and Customs, Department of …

Jawaharlal Nehru Port Trust (JNPT) has handled 465,084, twenty-foot equivalent units (TEUs) in January, clocking a growth of 9.14% percent over the same month last year, as the domestic economy rebounds with the start of the year and easing of lockdown. The total traffic handled at JNPT during the month of January 2021 was 6.50 million tonnes a growth of 9.98 per cent as against 5.91 million tonnes handled in January 2020. This month’s traffic includes 0.82 million tonnes of Bulk Cargo as against 0.59 million tonnes in the same month of last year, an increase of 38.98 per cent. During the month, 134,713 MT of coastal cement cargo was handled at shallow water Berth, surpassing the earlier highest of 113,560 MT in the month of February 2019. The Centralised parking plaza at JNPT Handled 51,163 tractor trailers in January which carried 78,840 TEUs. In another major achievement of January 2021, JNPT inducted a tug boat “Daisy Star” having Bollard Pull of 60 MT that will provide assistance in handling vessels of various sizes, thereby providing more safety during handling larger ships. Also during the month, JNPT launched Continuous Ambient Air Quality Monitoring Station (CAAQMS) at Port Operation Centre to monitor real-time Air Quality parameters. And became the First Major Port to sign Distribution Franchisee Agreement with MSEDCL. Sanjay Sethi, IAS, Chairman, JNPT said, “JNPT is trying to reach its pre-Covid performance levels and the numbers reaffirms that JNPT will maintain this growth trajectory. We have taken a number of initiatives that have helped the port in improving its numbers. JNPT is the first port where Port-led SEZ is evolving successfully and we are confident of attracting leading global companies …

CEVA Logistics has successfully completed a full RORO charter for almost 4,000 cars between South Korea and Libya, working in close cooperation with its parent company, the CMA CGM Group. The two companies chartered a specialist car-carrying RORO vessel as part of a cross-selling initiative. CEVA Logistics and CMA CGM teams worked in tandem to source and charter a specialist vessel along with contracting and loading. The January 2021 movement follows on from a similar successful charter in December 2019 where an equivalent number of cars were also moved from Incheon Port in South Korea to Misurata in Libya. For this second automotive charter, the vessel Lake Wanaka arrived at Incheon in early January where CEVA Logistics Korea teams monitored and supervised loading operations to the port. Almost 4,000 cars, SUVs and small trucks were successfully loaded over a four-day period despite difficult weather conditions including snow. In 2019, South Korea exported some 460,000 used cars overseas– primarily to the Middle East and Africa. In recent months, many exporters in Korea have expressed concern about limited transport options. Thus, CEVA Logistics and CMA CGM worked in close collaboration to offer pure car exporters in the country a specialist vessel as well as a local guarantee insurance company to eliminate any credit issues. Both teams also worked very closely with the Incheon Port Authority and those in Libya to ensure smooth port operations including vessel berthing and car loading, stowing and lashing and then timely unloading operations at destination. Do Young Kim Managing Director Korea, says CEVA Logistics, “Our extensive capabilities in the automotive industry were on full show with this RORO charter and the smooth collaboration with our colleagues at …

“It is imperative to give priority to seafarers and port & shipping personnel in the COVID-19 vaccination drive,” says, Capt Ram R Iyer, President, Maritime Association, in adding, “All waterfront workers- Shipping & logistics personnel should also be granted due priority for vaccination drive undertaken by the authorities. International Chamber of Shipping has given a clarion to governments worldwide to put seafarers and frontline maritime shore workers ahead of the vaccine queue and alleviate the Global humanitarian `crew change crisis’. Indian Government has been spearheading initiatives on this front and this presently needs the added push to facilitate and ensure India’s continued global eminence as a leading supplier of manpower in shipping & maritime industry. Ship agents and full spectrum of shipping & logistic players all across India have been providing continued, unstinting services with great agility and sincerity, despite all COVID-19 restrictions, challenges and being dangerously exposed during the pandemic to ensure continued seamless movement of India’s Maritime EXIM trade. The need to facilitate continued digital push and ensure ‘Enhanced Ease of Doing Business’ in ports, shipping & logistics arena with a committed focus on practicality and addressing real time issues. Whilst much has been done on the digitisation and in government’s continued endeavours in ‘Ease of Doing Business’ over the last few years, there is still plenty of scope and room for improvement in practical implementation of same at the Policy levels as well at grass root levels of implementation. Government authorities would need to reaffirm their change in attitudinal policy to be ‘Facilitator of legitimate trade’ as against being a ‘Trade regulator’.

According to Rajiv Agarwal, CEO and Managing Director, Essar Ports, “Our Prime Minister’s vision of making India – A Global Manufacturing Hub and becoming US$ 5 trillion economy, will be one of the key objectives of the upcoming budget. Ports will play a pivotal role in achieving this objective and the budget should also focus on increasing the contribution of Ports sector to the country’s GDP. Ports is a significant driver of EXIM trade hence it becomes necessary to keep logistics cost low to encourage exports. Indirect taxes on port services has increased to 18% GST as industries like Thermal Power Plants, Fertilizer and Refineries are needed to pay higher logistics and manufacturing cost (on account of no GST Credit) for their raw material movement like Coal, LNG and Crude Oil, POL etc. This is impacting the competitiveness of sea transport as an option as compared to rail and roads that are less environment friendly modes of transport. Hence, GST for sea transport should be reduced to 12% for more sustainable benefits.” Presently, PPP Projects and Major Port Trusts compete for cargo at Ports, which leads to conflict of interest. It is important that Major Ports should act as enablers with PPP projects driving the growth. To further strengthen the current position of the industry players, it is critical for ports to be given enough autonomy and decision making power to stay ahead in terms of modernisation and technological enhancements.Mechanized berths, sufficient stockyard and multimodal evacuation systems for fast turnaround of vessels are key enablers for productivity and efficiency of Ports & Terminals. To achieve this, investments will be required in dredging, developing adequate civil infrastructure and securing land along …

India has put one step ahead towards the aim of developing infrastructure of Shahid Beheshti Port of Chabahar; supplied a consignment of two Mobile Harbour Cranes (MHC) to Iran’s Chabahar port, with a total contract value of over US$ 25 million under a contract agreement for supply of 6 MHC. The consignment of cranes arrived from Marghera port, Italy has been unloaded successfully on January 18, 2021 at Chabahar port and presently undergoing trials run. With 140 metric tonnes lifting capacity, multipurpose equipment and accessories like Mobile Harbour Cranes (MHC) will enable India Ports Global Limited (IPGL) to provide seamless services for container, bulk and general cargo at Shahid Beheshti Port of Chabahar. The bilateral contract between the Islamic Republic of Iran and Republic of India was signed on May 23, 2016 with a total value of US$ 85 million ‎for equipping, mechanising and starting operations at Shahid Beheshti Port of Chabahar development Phase- I. To achieve this ambitious aim, an SPV namely India Ports Global Limited (IPGL) Mumbai was incorporated under the ambit of the Ministry of Ports, ‎Shipping and Waterways. Mansukh Mandaviya, Minister of Ports, Shipping and Waterways, stated, “Chabahar Port is a strategic port with great national importance. The delivery of consignment of heavy equipment, including cranes shows India’s commitment to the strategic connectivity of Chabahar port project that will provide access to markets in Central Asia. Development of Chabahar port is the anchor for the expansion of economic and mutual relations between India and Iran and it will give a further boost to the maritime trade between both the countries. The location of Chabahar Port has strategically advantage and high potential to provide connectivity among India, …

Essar Ports had clocked a cumulative revenue for 36.5 million tonnes (MT) of cargo handling for the nine months ending December 2020, led by demand in power and steel industries and as the economy finds green shoots ahead of the world’s largest ever vaccination drive to fight the C-19 pandemic. For the three months ending December 2020, the company has sustained revenues for 12.7 MT, same as the previous quarter, as it tries to overcome challenges posed due to the C-19 pandemic era. “Essar Ports’ growth trajectory has continued despite facing several challenges during the entire year. Our cargo handling performance over the nine months is a testament of how Ports play a pivotal role to keep economic engines running and their key role for an ‘Atmanirbhar Bharat’. We now look forward to a post Covid era now that India embarks upon one of the largest vaccination drives of the world. We expect a bounce back in the economy and revival of demand in next few months,” said Rajiv Agarwal, CEO & MD, Essar Ports Ltd.