Week ending April 01, 2001


News on Ports

The Adani Group and the Orissa government have tied up to develop the Gopalpur fair weather port into an all weather port under BOOT scheme at a cost of Rs.27 billion. The development of the port would be taken up in three phases over the next ten-year period. The first phase would involve an investment cost of Rs.0.5 billion for repairing the existing jetty and construction of a jetty of around 200 metre long to handle the vessels of 30,000 to 35,000 DWT. The next phase of development would require an investment of Rs.6.5 billion to handle cargo of around 6.5 million tonne annually. It would involve construction of four berths and a protecting breakwater along with the required back-up storage and handling facilities. The Adani Export Limited is also planning to rope in Al-manhal International Group of United Arab Emirates for the development of the port.

River draft hike in Calcutta Port Trust fails to influence the shipping liners
as the improvement is yet to meet the requirements and the operators have decided to continue with the draft surcharge on CDS (Calcutta Dock System) bound vessels for the time being. As a result, CDS is losing traffic to the Haldia Dock Complex (HDC) due to the lower draft surcharge on HDC. Thus, constant traffic erosion has made CDS more unacceptable in comparison to HDC.

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News on Shipping

Mitsui O.S.K Lines, NYK Line-K Line- SCI consortium has bagged the first competitive bid LNG shipping project in the country of Petronet LNG Limited. The consortium will acquire two LNG tankers of 1,38,000 cubic metre capacity each from Korea�s Daewoo Shipbuilding yard at an estimated cost of $370 million for transporting 5 million tonnes per annum of LNG cargo from Qatar, for Petronet LNG Ltd. The consortium is looking at a debt-equity ratio of 3:1 to finance the acquisition of two LNG tankers. The Shipping Corporation of India is expected to contribute about $32 million as security for holding a 34.21% stake in the consortium.

The Indian Maritime Association (IMA), London, the Indian National Shipowners' Association (INSA) and the Union Ministry of Shipping are jointly supporting the first conference "Indian shipping : Opportunities and issues in the new millennium" to be held in London on May 28 and 29, 2001. The conference would promote the Indian Maritime sector and provide a forum where the domestic and international shipping communities can discuss key issues ranging from policy, privatisation and liberalisation, infrastructure, foreign investor perspective, world trade and economic factors, bulk, liner and LNG shipping, offshore industry, finance, shipbuilding, ports-private and public and manning and training. 

The Ministry of Shipping has formed a high-powered committee with representatives from the Ministry, Directorate-General of Shipping , the Shipping Corporation of India and Inland Waterways Authority of India to work out the modalities for integrating inland water transportation with coastal shipping.

Diamond Shipping plans to increase exports
of agro-products, textiles, engineering goods and machinery products during next fiscal. The company has also set a sales target of Rs.0.4 billion by the end of the current fiscal. The company, which currently operates container feeder vessels from Kolkata and Mumbai to Singapore and Colombo, has started operations in the eastern block and Scandinavian countries and is also eyeing at China and South-East Asian nations.

The Sheths have increased their stake in Great Eastern Company from 14.5% to 17.23% through the buyback. The company had set aside Rs.1.5 billion at maximum of Rs.42 a share for the buyback. The buyback has led to a reduction at Rs.2.15 billion from Rs.2.58 billion in the paid-up capital of the company. 

The Save Shipping Corporation of India Forum
has expressed agitation against the Union Government�s decision to privatise the Indian shipping major SCI, sacrificing the national interest. The proposed strike is likely to cripple the movement of maritime vehicles on the Indian shores. The secretary of SCI Officer�s Association has clearly stated that in spite of being one of the most profitable government undertakings and one of the few PSUs to serve the country in national disasters, it is going to private hands. Furthermore, it would destroy the country�s self-reliance and would not get any socio-economic services, like passenger services in the unprofitable routes and emergency services.

Shipping Corporation plans to launch direct container services to the Far East by the end of May 2001
. SCI has already entered into a consortium with some leading shipping lines such as Kline, Yang Ming, Pacific International Lines and Dong Nama for this Far East venture. With the introduction of the new direct container service, SCI expects to enhance market share to 25%.

Essar group is likely to withdraw from the Rs.23 billion Hazira LNG terminal project due to "over crowding" of gas projects on the western coast as the region may not be able to absorb the amount of gas coming by way of proposed projects. Besides, the five million tonne Essar-Shell LNG terminal, LNG import facilities of more than 12.5 million tonne by various consortias are being put up in Gujarat. British Gas is putting up 2.5 million tonne LNG terminal at Pipavav while Petronet LNG plans to set up a 5 million tonne import facility at Dahej.

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News on Shipyards

Cochin Shipyard Limited laid the keel for the Chennai Port Trust's ocean going trailing suction hopper dredger. The dredger, equipped with two trailing suctions and having a capacity of over 1,700 cubic metres, will be built at a cost of Rs. 530 million. The self-propelled vessel will be powered by two diesel engines with a speed of 12 knots.

News on Logistics

The Inland Waterways Authority of India (IWAI) is planning to acquire from Raymond a jetty on the Hooghly river front as part of its overall plan to develop cargo handling and warehousing facilities at Shalimar in the Howrah district. IWAI is waiting for a formal clearance from the Railway Board.

NHAI has signed a $181.6 million road project with Malaysian Consortium
for the upgradation of 158 kms of National Highway in Andhra Pradesh. The agreement involves widening of NH-5 to four lanes from Tada and Nellore and is likely to be completed in three years.

The Indian Railways has tied up with Gujarat Pipavav Port Ltd. (GPPL) to provide port connectivity consisting of a gauge conversion of a 250-km-long section from Surendranagar to Rajula city and a 14-km-long new line from Rajula to the port. The project cost has been estimated at Rs.2.9 billion and is expected to be completed in a year�s time. The project will be implemented with a debt-equity ratio of 1:2 with Railways and GPPL both holding 26 per cent equity stake each.

Container Corporation is likely to negotiate with Eastern Railway and South-Eastern Railway to explore the possibility of running fixed time container trains between its ICDs at Shalimar/Cossipore and the Haldia dock under the Calcutta Port Trust to boost international traffic. Concor has also initiated several other steps to boost international traffic from the eastern region.

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Visakhapatnam Port Trust has invited sealed tenders under two-cover system. Tender for: long term lease of VPT land measuring acres 11.50 cts at north of Fly Over Bridge in Zone VIII for "SETTING UP, DEVELOPMENT AND MANAGEMENT OF PORT SIDE CONTAINER TERMINAL" 
Tender Notice Number
: EE(ESTATES)/TC/38/655, DATE-19-03-2001
: Rs. 1,15,000
Last date of issue of tender papers
: 18-04-2001

Visakhapatnam Port Trust has invited sealed tenders from the reputed manufacturers/contractor. Tender for: Supply, installation and testing of safe load indicators for EC-26 and EC-27 ELL Wharf Cranes of M/s. Mukund make.
Tender Notice Number: QCME/MOF/MOFL/EIT/121 DATED- 27.3.2001.
Estimated Cost
: Rs. 6,89,800/-
: Rs.13,800/-
Date of issue of tender papers
: 04.04.2001 to 16.04.2001.

Tuticorin Port Trust has invited 
Tender for: Work of loading dredged spilt coal, conveying and dumping in a place north of cooling water channel inside security wall.
Estimated Cost: Rs. 8.98/- lakh
Contract period: Six months
Contact Address:
The Chief Engineer, Tuticorin Port Trust, Engg Dept (Civil), Tuticorin - 4
Last date for submission of tenders
: April 7, 2001 upto 15.00 hours.


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