MARITIME NEWSLETTER FOR THE WEEK ENDED AUGUST 9, 2003

   

Cochin Shipyard interested On Cochin Port Trustís ship repair facility

Cochin Shipyard limited (CSL) and Surat-based ABG shipbuilders are among the two companies who have shown interest in the Cochin Port Trustís (CoPT) ship repair facility plan.As per the CSL official there is a market for the repair of very large container carriers (VLCC) and the yard has the potential to undertake such a project.

Export has dropped at Kochi Port

There is a significant drop of about 10,000 Tones of some major commodities being exported through Kochi ports during the month of June as compared to the previous month of May. Export has witnessed a drop from 47,564 tones in May 2003 to 36,635 tones in June as per the figures available with the Cochin Chamber of Commerce and Industry.The major commodity showing the decline during this period includes coffee, tea, cashew, coir products, cotton goods etc.

Fresh tender call expected for box terminal project at Kandla Port

The Rs.200 crore box terminal project at Kandla is going to be furthered delayed as the port authority has decided to totally realign the project and invite new tenders. There has been a considerable delay in the project right from the day one, when the successful bidder P&O, was engaged in the confrontation with the port authority in making certain alterations in the agreement.As per the sources the initial design was to convert the existing berth numbers 9 and 10 into full-fledged container terminal, but its draft of 9 to 10 m was insufficient in handling the new generation container vessels. Finally they realized that the draft of 13.5 meters at berth number 11 and 12 would better suit the requirement.The report submitted by SBI Cap who has been asked to examine the implication of this realignment recommends that the new berth proposed for the terminal would help in shoring up the rate of return as the increased draft size might bring in bigger parcel sizes.

Higher Tariff at Cochin Port invites strong protest

Cochin Steamers Association, Kochi Refineries, FACT and the various chambers of commerce were amongst the various organizations that strongly opposed the 25 % hike in all the tariff rates by the Cochin Port Trust at a hearing before the Tariff Authority of Major Ports (TAMP). The primary reasons cited for the same were that the port authorities should first concentrate on improving the infrastructure and providing better services. The other area of contention was the volume discount scheme that the port was looking to discontinue in view of the privatization. But, the users opposed the same as no privatization process has yet been initiated.

Jaisu to undertake dredging work at Iraqi ports

Jaisu shipping, a private sector dredging firm from India would be undertaking dredging work in two Iraqi ports of Umm Qasr and Az Zubayr along with Miller Dredging Inc. of US. Both these firm will work as the subcontractors to a big US multinational who has been awarded with the contract to develop both the ports.

JNPT looking for the fourth box terminal project

JNPT is planning to start the construction for its fourth box terminal, even as the bidding for the Rs. 900 crore third container terminal is still on. The project will entirely be on the BOT basis involving private participation, in order to meet the projected increase in traffic flow in the next 10 years. The length of the planned terminal would be similar to that of third box terminal, which is designed to have 712-m quay.

July 2004 would witness new code on maritime security

As per the announcement made by Minister of State for shipping Mr. Dilip Kumar Gandhi in the Parliament, all the 12 major and 30 minor ports in the country will have to comply with the new security provisions on International Code for the Security of Ships and Port facilities (ISPS) adopted by the International Maritime Organization (IMO). According to him all the foreign going merchant vessels have to undergo this security measures from July 1, 2004.This new safety measures has been adopted in the wake of September 11, 2001 terrorist attack on US.Director-General of Shipping has been given the authority to oversee its implementation.

Kandla port traffic to be boosted up by new rail project

Indian Railwayís first Build Ė Operate Ė Transfer project, envisaging gauge conversion of a rail link between Viramgam and Mahesana is likely to increase the flow of traffic from and to New Delhi from Kandla Port. The project is estimated to cost Rs. 90 crores and is expected to be complete within 18 months. The project will be completed by London based D. S. Constructions Ltd. and is expected to reduce the corridor length between New Delhi and Kandla port by 70 Kms.

Keralaís small ports keen on private participation

Looking at the success of private players bringing in new life to the minor and intermediate ports, the department of port at Kerala has started inviting tenders from the private investors. Once, being tagged as the Venice of the East the Alapuzah port hasnít drawn any attention on its revival, although a marina and recreational facilities of Rs.233 crore through public equity are to be put up for the creation of calm waters for bay activities.

MGT plan for the third box terminal has been dropped by JNPT

In order to avoid any sort of confrontation with the Ministry of Shipping, JNPT has decided sticking to its older mode of payment i.e. through the revenue sharing basis rather than the Minimum Guaranteed Throughput (MGT) formula for its third container terminal.

The MGT modes of payment assure that the bidders have to commit for minimum revenue payable to the port. Some of the major players have shown positive signs in switching over to the proposed mode. Infact, this mode of payment is even favored by the port as it ensures minimum income from the container operation. Having received positive feedback from some of the bidders the port approached to the Ministry for approval, but the officials there felt that switching over may affect the remaining bidding process. Moreover all bidders were not in favor with the proposed formula.

Thus, in order to avoid the risk the port authority has decided to adhere to its original mode of payment. In accordance with it the deadline for the final bids has been fixed for September 30, after which the port will take some three months in evaluating the bid and selecting the successful bidder.

New record set by Kolkata port in July for box traffic

The container throughput of Kolkata port in July this year was 22,593 TEUís, a rise of about 12% over the previous best of 20,208 TEUís which was achieved in March this Year. According to the Kolkata Port Trust if the same trend continues the port hopes to handle a total of 2,56,000 TEUís in the year 2003-04 as against 2,23,038 TEUís in the previous year.

Sethusamundram Project may get a go ahead

The much awaited Sethusamudram project which is going to save a distance of some 400 nauticles miles and a voyage time of about 36 hours may take off after the submission of final report of the National Environment Engineering Research .The Rs. 1,448 crore project will help the ship to move between east and the west coast. Currently the ship has to circumnavigate the entire stretch upto Sri-Lanka. The project is going to generate lot of employment opportunity as well as boost the trade and economy of this region.

Surcharge levied on coal for causing Pollution

In order to meet the pollution problem at Vasco city which is adjacent to the coal/coke handling berths, the Tariff Authority for Major Ports (TAMP) has given the green signal to the proposal submitted by the Mormugao port trust to levy a surcharge of Rs.2.15 per ton on coal/coke handled at the port in order to absorb the additional cost of installing a wet dust suppression system.The annual budget required in acquiring a wet dust suppression system amounts to Rs. 58.96 Lakhs for a traffic of 2.75 million tones which comes to around Rs.2.14 per ton.

Temporary iron ore handling facility planned at Ennore by MMTC

Faced with some severe traffic at Chennai port, which has resulted in some unnecessary delay and its consequence demurrage charges to the exporters, MMTC Ltd, a Government of India undertaking involved in trade, approached Ennore port to establish a temporary iron ore handling facility. The temporary arrangement would be carried for at least three years. The facility will require 3 to 4 months to starts its operation costing almost Rs.5 crore. The plan will involve construction of a jetty through which the iron ore will be handled using small barges. The project will help Ennore to earn Rs.10 crore annually. The plan has already attracted some iron ore exporters like Salgaocar mining Industries Ltd. and Bellary Iron ore Pvt. Ltd for using the temporary facility.

The plot rent for the bulk cargo to be reduced at Haldia Dock

In order to compete with its neighboring Paradip Port the Haldia Dock Complex (HDC) has decided to cut its plot rent. In order to make the port more competitive, the HDC officials have decided to drastically reduce the rent by around 55%. The proposal has been forwarded to the shipping ministry. As compared with its neighboring Paradip port, which is charging Rs. 6 per ton, the plot rent charged at HDC is much high at Rs. 20 per ton, but after the approval of the project the rent is likely to come down to Rs.9 per ton.

UK P&I club monitors the ships carrying hazardous chemicals

The UK P&I club has appealed its members to take precautionary measures in carrying hazardous Chemical items. The step has been taken in view with the rise in some recent incidents of container leakages. A number of Indian shipping companies including Shipping Corporation of India, Essar Shipping and Great Eastern Shipping are the members of UK P&I club. As per the recent report published by the club, the major cause concerning the leakages are the time taken in cleaning containers, time taken due to deviation in berthing & collecting the waste water.

 

 
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