Week ending September 03, 2002


News on Shipping

MISC seeks Japan Bank loan for financing its vessel acquisition The Malaysia International Shipping Corporation (MISC) is negotiating with the Japan Bank for International Cooperation to finance the construction of its six ships. The company needs US $830.00 for the construction of six new ships.

ISS to include five more carriers to its fleet The Indian Steamship Company (ISS) will soon acquire five specialized vessels, which include one gas carrier, and four chemical carriers. These specialized vessels will be used to carry ammonia and phosphoric acid for fertilizer companies in Paradip and Goa. The gas and chemical carriers are expected to provide the companies with experience in new field and an assured business by the way of captive cargo. The financing of the ammonia carrier, which is estimated to cost Rs 75.0 crore would be done partly by taking loan and partly by way of equity. The capacity of the vessel is expected to be between 20,000 dwt to 24000 dwt.

SCI talking to British Gas & Shell for LNG joint venture Shipping Corporation of India (SCI) is in talks with British Gas and Royal Dutch Shell for LNG transportation. The LNG transportation contracts are of 15 to 20 years duration and assure continuous revenue during that period. Industry sources say that if SCI signs the deal with Shell, it may incorporate a new joint venture company, which could take over two of the Anglo-Dutch company's existing ships.

Centre to start a ferry service between Tuticorin and Colombo The Indian government is to sign a MOU with the Sri Lankan Government to start a ferry service between Tuticorin and Colombo. The service would start once an agreement is signed between both the governments.

Shahi Shipping develops time bound services Shahi Shipping Ltd, has developed time-bound services for its customers. By achieving better coordination with the port officials and by employing efficient people, the company hopes to guarantee delivery of containers within 48 hours. Shahi Shipping discharges about 12 to 14 containers, per hour on an average at the Mumbai Port Trust.

Vallarpadam project has just one bidder The Union Shipping Ministry appears to be concerned as there is only one bidder for the Vallarpadam Transshipment Terminal project. The Ministry has hence sought fresh clarifications from the Cochin Port Trust in this regard. The board had cleared the proposal for the project in September 2000 itself but since the matter is referred to the port back the implementation of the project is likely to be delayed further.

A new feeder service between Haldia and Chittagong The Transworld group in partnership with the Container Corporation of India (Concor) has started a new feeder service between Haldia and Chittagong. Concor would look after the road/ rail movements and Transworld the ocean leg. The restriction imposed by the Bangladesh authorities on the road movement of yarn from India to Bangladesh is believed to have prompted the shippers to opt for a different route. This new feeder service is expected to replace multiple agencies involved in the trade and eliminate railway bottlenecks.

IMO plans stringent laws for ships calling on ports To curb terrorism the United Nations is considering new laws to regulate ships arriving at the various ports. Once the proposed laws are introduced ships can be turned back from the ports, if they do not meet the new specifications. The IMO is also planning to implement new regulations that include port establishments and shipping companies to have security officers and international security certificates.

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News on Shipyard

HSL builds a new tug for NMPT The Hindustan Shipyard Limited (HSL) has built a new tug "Kabini" for the New Mangalore Port Trust (NMPT). The tug has a bollard pull of 50.0 tonnes and is designed for use as a shipping tug to be used by NMPT in its the inner and outer harbours. The tug is also capable of withstanding rough weather conditions.

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News on Ports

NMPT sets a record in handling furnace oil The New Mangalore Port Trust has set a new record by handling the highest parcel size of furnace oil exported from Mangalore Refinery and Petro Chemicals Ltd. (MRPL) to Sumitomo Corporation in Singapore. It is the largest volume of crude oil exported by the MRPL since February 2001.

MbPT to privatize general cargo terminal The board of Mumbai Port trust (MbPT) has given its general cargo terminal on lease to the ACT consortium which comprises of ACT Shipping, ACT international and KRBL. The ACT consortium was the only bidder for the general cargo terminal. The consortium would share the gross revenues up to 39.0%, during concession period of 20 years. The port expects the port's capacity to increase to 1.04 tonnes after privatization. The new terminal is expected to be operational within three months from the date of approval from the ministry.

Maharashtra plans to float SPV for Dronagiri project The Maharashtra government is considering a proposal over the decision of floating a special purpose vehicle (SPV) for the Dronagiri project. The government decided to hand over the entire land under SEZ to CIDCO but the finance department of the state has raised objections as they feel that CIDCO has evaluated the value of the land much lower than the prevailing market rate.

Adani bags Dahej multi-purpose terminal project The Adani group has bagged the project to construct a four million per annum multi-purpose port terminal at Dahej. The Adani group is to set up a special purpose vehicle (SPV) and invest Rs. 300.00 crore for first phase project. The Petronet LNG Ltd (PLL), which awarded the letter of Intent (LOI) to the Adani Group, would hold 26.0 percent equity, and rest of the equity would be with Adani group and their strategic partners. The project which is being built on a build operate transfer (BOT) basis would cater primarily to the hinterland of south and central Gujarat, including western Madhya Pradesh.

Measures to control unnecessary expenditure benefits Vizag port Vizag port has unveiled a new programme to increase its net surplus by controlling wasteful and operational expenditure. The program, which was implemented on a small measure, has yielded significant results. The port achieved a net surplus of Rs 43.4 crore last fiscal year and expects more this year. The Ore Handling Complex OHC alone helped to save an amount of Rs 2.3 crore during the last four years. The operational expenditure was also reduced significantly from Rs 407.0 crore to 279.0 crore during the last two years. Minimizing the idle use of floating craft, deployment of tug power, daily monitoring of consumption of fuel and power has resulted in reduction in the water consumption by about 22.0%.

Tuticorin to joint venture with private parties The Tuticorin Port Trust (TPT) is considering a proposal for setting up of a joint venture with the private parties to generate more cargo traffic and also to utilize the surplus land to meet its requirements. The proposal is being considered to promote industrial development in the hinterland of the port, which would help in generating more cargo traffic for the port.

CII team to study ports in China and Hong Kong A delegation from the Confederation of Indian Industry, Southern region is visiting China and Hong Kong to study the competitiveness of the ports there. The delegation will visit the Maritime department, ATL Logistics Center of Hong Kong, the Shanghai port of China and also the Indian companies having operations in China.

Surcharge on US container imports from Asia extended With constant increase in the cargo volumes, the major container shipping lines have decided to extend the US$300.0 peak surcharge till October 31. According to the shipping line source, this surcharge is a premium, designed over the extra costs associated with the peak. The extended surcharge follows a general rate increase announced on May 1, and another US$300.0 hike on August 19.

China plans to link Shanghai to the interior regions China is planning to link its largest port Shanghai with other vital economic centers and the less-developed interior regions of the country. Port Nigbo Plans to contribute 90.0% of the funds for the project as this new link would reduce the distance from Nigbo to Shanghai by about 120.0 km.

KDWP to come under SEZ The Kakinada Deep Water Port (KDWP) will soon come under the Special Economic Zone (SPZ) when the zone starts functioning. According to the sources the state government has made arrangements for developing Vishakapatnam and Kakinada as a major industrial sector.

TPT measures to attract main liners The Tuticorin Port Trust (TPT) plans to reintroduce its conventional package marine charges of US$ 15000.0 per call to attract the main liners with high GRT (gross registered tonnage. To avail this offer the marine operator should make 50 calls in a year to the port. However the package is yet to be approved by the Tariff Authority for Major Ports (TAMP).

Three Korean yards in race for SCI's order for VLCCs Samsung, Hyundai and Daewoo shipbuilding yards are among the yards selected by the Shipping Corporation of India (SCI) to bid for construction of its proposed two new very large crude carriers (VLCC). The SCI's plan to buy VLCCs comes in wake of a decision by the Indian Oil Corporation (IOC) to bring a major portion of its crude cargo from the Persian Gulf on VLCCs from this year onwards. Hence the national oil refineries would then be free to buy and transport crude without going through the earlier nodal agency system.

KoPT sets record in box handling The Kolkata Port Trust (KoPT) has registered a 17.91% growth in its container handling in August, which is a record growth in 22 years of the port history. With multi-dimensional user-friendly measures such as better service, improved facilities and cost-effective customer friendly charges, the port expects to increase its handling volume considerably by the end of this fiscal year.

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News on Logistics

Low product value and hike in ocean freight charges delays TN's textile transshipments The textile exporters from Tamil Nadu are facing delays in transshipment of their cargo as most of the mother vessels from Far East have bee skipping Colombo port, due to increase in ocean freight charges and low value realization from voluminous textile cargo. Most of the textile shippers use the ports of Tuticorin, Chennai or Kochi for transshipment of their cargo through the Colombo route but according to the sources the inordinate delay in transshipments has now caused some of the garment shippers to divert their cargo to Mumbai port, instead of sending them to the nearby ports.

Concor to set up an ICD in Vizag The Container Corporation of India is setting up an inland container depot (ICD) at Vizag shortly. The ICD is likely to be opened and made operational within the next two months. The commissioning of the terminal at Vizag is expected to boost Concor's international container traffic. The berth is expected to handle about 1,00,000 TEUs annually in five-years' time.

EMC launches new services TEvergreen Marine Corporation Ltd (EMC) has started a network of new services covering East Asia and between East Asia and the Middle East. The firm plans to take steps to achieve greater synergy between the new services and its existing global services.

Continental Carriers and Hellmann Worldwide join hands The Continental Carriers Limited, a transport company and Hellmann Worldwide Logistics, have joined hands together to provide the logistics solutions to its customers. Hellmann Worldwide operates from 134 countries and is a 130-year company.


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