Category Archives: Shipping

While reviewing the development activities of Vallarpadam Terminal of Cochin Port, Mansukh Mandaviya, Minister of State for Shipping, Government of India, says, “We are developing the transshipment facility on the Indian port to ensure that the Indian cargo trans-ship through Indian port. Resolving various issues of Vallarpadam Terminal is one of the priorities of the Ministry of Shipping.” The Minister directed officials to chalk out the strategy to tackle the various challenges and actualize the vision of the transshipment hub of India and pioneer hub in South Asia. According to the statement issued by the ministry, “The Kochi International Container Transshipment Terminal (ICTT), locally known as the Vallarpadam Terminal, is located strategically on the Indian coastline. It successfully fulfills all the criteria which are needed to develop it as a transshipment hub.”

Jawaharlal Nehru Port Trust (JNPT) has achieved an another mile stone in development of SEZ by becoming the first-of-its-kind operational Port based multi-product SEZ. The port has announced that two units of its Special Economic Zone namely, OWS LLP and Krish Food Industry have completed their first phase of operational activity and are declared operational units by Development Commissioner, SEEPZ, SEZ. The port has been developing a multi-product Special Economic Zone (SEZ) in its freehold land of 277 hectares at Navi Mumbai. The SEZ aims to boost exports by enabling port-led industrialisation under the Sagarmala initiative of the Ministry of Shipping. The foundation stone of the project was laid by the Prime Minister, Narendra Modi in August 2014. Sanjay Sethi, IAS, Chairman, JNPT, said, “For JNPT, this is truly a great occasion as JNPT becomes the first port where port-led economic development is evolving successfully. JNPT is confident of attracting leading global companies for making India a manufacturing hub as the infrastructure development underway in JNPT SEZ is as per the international benchmark. The potential units investment and the employment generation will give a boost to the entire eco-system around JNPT region.”

CEVA Logistics has launched an all-in-one portal named myCEVA to enable shippers in managing their complete shipping journey online. The online tool provides a seamless customer experience by giving them greater control over every function and a larger range of options whatever the circumstances. The portal has been designed to give customers greater control over the booking process while simultaneously improving efficiency through greater process automation. Customers can instantly receive quotes, make bookings and track shipments in real time, which will enhance the customer experience.   After a successful pilot phase in the US in May 2020, myCEVA is working towards covering all transport modes in every region of the world and has been launched in a phased manner with FCL and LCL ocean freight customers using specific trade lanes from/to the US, China and India.

Maersk’s customer-oriented mobile app witnesses highest usage amongst customers in India. With over 4,000 users, India topped the charts globally amongst the countries where Maersk’s customers are actively using the mobile app. Over 1.8 million actions by customers were recorded on the app in the second quarter of 2020 (April to June). These were more than double of those recorded in the first quarter of 2020 (January to March). These include any action performed by users on the app like booking, tracking, checking schedules, live support etc. “As the pandemic spread across geography, our, as well as most of our customers’ operations, shifted bases to their employees’ homes. It then became imperative for the customers to adopt the digital tools for carrying out businesses from the comforts of their homes. Having invested in digital transformation over the last few years, we could provide this immediately to our customers,” said, Steve Felder, Managing Director – South Asia, Maersk.

Adani Logistics has moved its first-ever containerised cargo export from India to Bangladesh utilising inland waterways and it has reached its destination Pangaon International Container Terminal, Dhaka on July 12, 2020. The success of landmark container export cargo consignment has provided importers and exporters of India and Bangladesh an alternative to roadways and railways. Currently, majority of the exports and imports through West Bengal region to Bangladesh is taking place through Petrapole (India) and Benapole (Bangladesh). In fact, Petrapole is one of the largest Land Customs Station (LCS) in Asia handling a trade of more than US$ 2.5 billion. “Since last year, our team is working on offering commercially viable logistics solutions using Inland Waterways. Previously, we have successfully completed the domestic containerised movement between Haldia – Patna on NW1 and Haldia – Guwahati on NW2 (using IBPR). The success of containerised movement from Haldia to Guwahati on NW2 (using IBPR) has generated keen interest with the importers/exporters of both India and Bangladesh to extend its usage for EXIM cargo movement. One vessel movement is equivalent to 64 or more trucks. Thus inland waterways provide a competitive alternative to current road based movement of goods through Petrapole ICP. Containerised movement of sponge iron is a safer alternative as compared to carrying the cargo in bulk/break bulk which has also been appreciated by industry.” says Anil Kishore Singh, CEO – Inland Waterways, Adani Logistics.

According to Mansukh Lal Mandaviya, Union Minister of State for Shipping, “By developing strategic Chabahar Port in Iran, India will reduce logistics cost by 20 per cent in container transport to CIS countries, bypassing China or Europe.” He explains, “So far, CIS (Commonwealth of Independent States) countries could be reached only via China or Europe. There was no other connectivity with CIS countries. Chabahar port, located in the Sistan-Balochistan province at energy-rich Iran’s southern coast, lies outside the Persian Gulf and is easily accessed from India’s western coast, bypassing Pakistan.” “In a strategic development, loading and unloading of cargo has started at Chabahar Port. CIS countries include Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Uzbekistan. Now, we have developed Chabahar port and there is direct connectivity to these countries via Afghanistan,” the minister said. “Transshipment of cargo started last week at Chabahar Port,” he adds. “Chabahar Port is scaling up its operations drastically. India Ports Global terminal loaded 76 TEUs (twenty foot equivalent unit) all refrigerated for India. This is record single loading and is a milestone in growth path of Chabahar Port,” he said.

The Kolkata Port Trust, now renamed as Shyama Prasad Mookerjee Port, has decided to rejuvenate its Kidderpore Docks (KPD) at an estimated expenditure of Rs 186 crore through Public-Private-Partnership (PPP) mode. The rejuvenation programme will be implemented in KPD-I West, one of the four parts of the KPD, and it will help increase its cargo handling capacity by four to five times. The programme will work on Build-Equip-Operate- Transfer basis for a period of 30 years and the bidder who will pay the highest revenue to the port will be the new operator. “The project will be implemented in two phases. It is expected to yield 2.5 million tonne of cargo per annum in phase-1. In phase-2, three more berths shall be developed and capacity addition of 1.5 million tonne per annum is expected,” informs, Vinit Kumar, Chairman, Shyama Prasad Mookerjee Port.

Ensuring the continuity of essential supply chain amid the lockdown Angré Port has handled 1,38,000 tonnes of different types of cargo since March 2020 till date. The port currently supports over 20 large and small local businesses across the state of Maharashtra, ranging from sugar, cement, manufacturing and industry raw materials. Commenting on the development, Eshaan Lazarus, Executive Director, Angré Port, said, “We work as an end-to-end port operator for our clients, ensuring timely and safe movement of their cargo, and helping them optimize their material handling cost. Our performance in H1 2020 has been good, with handling 2,41,000 MT of cargo, and we are aiming for 4,00,000 MT cargo in H2 2020 considering post COVID-19 forecasts.” The Port is also offering its 300 acres of industrial backup land on competitive lease models to strategic businesses such as mega warehouses, port-based industries, logistics, tank terminals, and business parks.

The Indian port sector has been adversely impacted due to the Covid-19 outbreak and the subsequent lockdown introduced by India and other major economies. Although, the sector has been classified under essential services and has remained operational during the lockdown, the adverse impact on domestic economic activity as well as slowdown in global trade has resulted in steep contraction in cargo volumes at the major ports. Similar to the 22% decline in April 2020, May 2020 also saw a 22% decline in throughput. While, the decline was across major cargo categories, POL, thermal coal and container segment witnessed significant contraction. Ankit Patel, Vice President and Co-Head, ICRA Ratings, says, “The recovery in the port sector will be contingent on the pace of recovery of the domestic industrial activity and the global economy. Further, factors like changes in global supply chain pattern during the recovery phase will also have an impact on the cargo profile. Of late, anti-China sentiment has also been building up momentum, which could also be a headwind for the trade growth. The full year outlook for the sector remains negative, with volume contraction expected in FY2021. The recovery among the cargo segments should be relatively better for essential products like POL and thermal coal, which should be in line with lockdown relaxations and the pick-up in domestic economic activity, while for segments like coking coal and containers the recovery may be long drawn. ICRA expects that while general cargo throughput may witness ~5-8% contraction for full year 2020-21, the container segment may witness a decline of 12-15% during the same period.”

In order to cut India’s dependence on overseas hubs to send and receive container cargo, shipping ministry has decided to designate a port as a transshipment hub. The step has been taken under ‘Atmanirbhar Bharat’ (self-reliant India) initiative. The Ministry will pick the port based on the report submitted by a committee formed for the purpose of deciding the criteria for declaring a port and developing it as a transshipment hub. Container volumes handled at Indian ports in FY19 hit 16.5 million TEUs (twenty-foot equivalent units), with the Central government-owned major ports handling 9.8 million TEUs and private ports handling 6.7 million TEUs, according to the Ministry of Shipping.