Week ending June 12, 2002


News on Ports

Kolkata Port to privatize five new berths at Haldia Dock Complex Kolkata Port Trust (KPT), among the first major port to show a major privatization initiative has planned to construct five berths at the Haldia Dock Complex (HDC) on a build-own-transfer (BOT) basis. Accordingly, the HDC has signed an agreement with International Seaports (India) Private Limited, for construction of berth no 4A and set up another five berths in the proposed second dock arm. The construction of new berths is aimed at increasing the annual cargo handling capacity of HDC from current 33 million tonnes to about 45 million tonnes by 2007. As a part of the increasing privatization of port-related services, Haldia Dock Complex had earlier signed a licence agreement in January this year with TM International Logistics (India) Ltd., a consortium comprising TISCO and IQ Martrade of Germany for operation, equipping, management and maintenance of berth no. 12.

Haldia Dock shiploader is commissioned A new shiploader for handling of coal has been set up at Haldia Dock Complex (HDC) and was formally commissioned on June 8 by the Union Shipping Minister Mr. Vedprakash Goyal. This is the first of two ship loaders developed by Larsen & Toubro at the cost of Rs 4 crore each. The new shiploaders will facilitate smooth coastal shipment of coal through HDC catering to thermal power stations on the Southern coast.

Kakinada Seaports signs up a deal with IOC Kakinada Seaports Ltd. (KSL) has signed a two-year contract with Indian Oil Corporation (IOC) for handling six million tones of crude per year. KSL, which operates the deep-water port in Kakinada, will handle crude oil cargo, which the IOC plans to import through very large crude carriers (VLCCs) with capacities over 250,000 tonnes. The crude oil carried by VLCCs will be unloaded into daughter vessels, through mid-sea transfers.

Plan outlay for ports not fully utilized Against an allocation of plane outlay of Rs. 960.18 crore, twelve major ports in the country have together only utilized Rs. 495 crore by end of fiscal 2000-01, as per the provisional data released by the Union Ministry of Shipping. Delays in sancntioning of new schemes, due to protracted procedures, contractual disputes and deferment of schemes are among some of the major reasons for under-utilisation of funds. Of the total amount utilized from the plan outlay, Chennai Port Trust has used Rs. 143.03 crore, Vishakapatanam Port Trust has used Rs.70 crore, Mumbai Port Trust has used Rs.64 crore, Paradip Port Trust has utilixed Rs.54 crore and Kandla Port Trust has utilized Rs. 48.83 crore. The provisional data released for the last fiscal year also showed that the total net surplus of 11 eleven major ports (excuding the corporatised major port of Ennore) stood at Rs. 291.41 crore.

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News on Shipping

War-risk insurance premium on foreign-flagged vessels Amidst uncertainties of Indo-Pak war, the London-based IPBCC Conference, a syndicate of shipping lines operating between Europe and the Sub-continent has issued the premium-notice on imposing 0.1 per cent war-risk insurance premium on all foreign-flagged vessels calling on ports located on the Western Indian coast.. The ports to be affected by this additional insurance cost included Mumbai, JN Port and Kandla, which together account for nearly 28 per cent of the total export/import traffic handled at 11 major Indian ports. The Lloyd’s Insurance Company has also included all Indian ports situated North of 18 degrees longitude and West of 73 degrees East latitude in its risky destination list.

SCI fleet to be strengthened by third quarter of 2002 The Shipping Corporation of India (SCI) currently in the disinvestments mode, will see on more vessels in its fleet by the third quarter of 2002, going by the outstanding orders it has already placed with shipyards. Cochin Shipyard Limited (CSL) is currently building one crude oil tanker of 93,000 dwt for delivery later this year. Three other 50-tonne bollard pull tugs are also expected to join the fleet by end of the year. Among other vessels, for which orders have been placed with overseas shipyards include four Aframax tankers of 1,10,000 tankers of 1,10,000 dwt each from Hyundai Heavy Industries Ltd. South Korea. Deliveries of two more vessels Suezmax vessels of 1,46,860 dwt each are expected from Daewoo Shipbuilding and Marine Engineering, South Korea.

GE Shipping board to meet on June 14 The board of directors of Great Eastern Shipping Company Ltd is meeting on June 14, 2002 to consider annual accounts for the year ended March 31,2002, recommendation of dividend on equity shares, if any to the members of the company and payment of interim dividend on 8.50 per cent cumulative preference shares aggregating to Rs. 95 crore. Meanwhile, Crisil has reportedly assigned a 'AAA' rating to the Rs 90- crore-NCD programme of GE Shipping Co. Ltd. The outstanding ratings for the NCD and preference share programmes of the com­pany have also been reaffirmed. The ratings reflect GE Ship­ping's favourable business pro­file, which emanates from its considerable international op­erations, an established client base and a diversified fleet. The Crisil report has noted that these strengths, coupled with a proactive management and a tight control on gearing levels, have helped the company to sus­tain its profitability despite freight rate volatility in the past.

Thai ship collides with an Singapore oil tanker A Thai ship - MV Hermion has collided with a Singapore-registered tanker Neptank V11 on June 12 and caused about 450 tonne of oil spill about 4.5 kms south of Singapore. The collusion caused when one of Neptank V11’s cargo tanks ruptured, following the collusion spilling about 450 tonness of marine fuel oil into the sea. Marine fuel oil is low quality fuel used to power ships. The Singapore Port Authority, which is carrying out the pollution control operations, has deployed 12 anti-pollution craft to clean up the oil spill.

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News on Shipyards

Korean yards commence building LNG ships Construction of two ships to transport natural gas in the form of LNG from West Asia to India have commenced at Daewoo Shipyard in South Korea. The Union Petroleum Minister, Mr Ram Naik, flagged off the commencement of the con­struction of the first liquefied natural gas (LNG) ship for Petronet LNG Ltd, a joint venture of public sector oil companies for import of natural gas, at the shipyard. As per schedule, Daewoo would construct two LNG ships for import of five million tonnes of LNG from Qatar beginning in the first quarter of 2004. The delivery of the first ship, named Disha', is expected in December 2003, while the second ship is scheduled for delivery in December 2004. PLL, is also setting up an LNG receiving terminal at Dahej in Gujarat with a capacity of five m.t. per annum and plans to sup­ply regassified LNG through HBJ pipeline to Gujarat, Madhya Pradesh, Rajasthan, Uttar Pradesh, Delhi and Haryana. The construction of LNG ter­minal is in full swing and the mechanical completion is scheduled for December 2003. The company has a sale purchase agreement with RasGas of Qatar for supply of five m.t. of LNG on free-on­board basis for 25 years.

News on Dredging

DCI signs contract with Kolkata Port Dredging Corporation of India (DCI) has signed a fresh maintenance-dredging contract with Kolkata Port Trust for next five years, subject to a review after two years. Under the terms of the contract, DCI will dredge 18 million cubic metres of silt every year from Hooghly river at an estimated cost of Rs.300 crore annually. To execute the contract, the DCI proposes to deploy five of its dredgers, of which four of the dredgers have been already started operations, while fifth dredger will be is due to arrive soon. The dredging work to be taken up by DCI is expected to improve the depth of the river at Jelingham to five metres to achieve a draft of more than nine metres.



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