MARITIME NEWSLETTER FOR THE WEEK ENDED DECEMBER 27, 2003

   

ISPS code by the IMO

According to the ISPS (International Ship and Port Facility Security) Code adopted by the IMO (Intl. Maritime Organisation), it is mandatory for countries to assess security requirements for ship and port facilities and draw up risk mitigation plans that will have to be approved by the respective governments. As part of the compliance requirements, the ships and ports will have to undergo verification audits.

India likely to be ahead by a month in complying with the ISPS Code

The security plans for all the 12 major ports, 40 out of the 200 ships identified have been passed. The security schemes for the remaining ships and the 36 minor ports will be cleared by end-December and mid-January respectively. All the trained personnel and the required infrastructure is expected to be in place by June 2004.

JNPT seeks to deepen and widen the harbour

JNPT has invited EOIs for the Rs 600 crore project to deepen and widen the harbour. The draft at the entrance of the main channel (shared by Mumbai Port Trust and JNPT) is to be increased. Increasing the depth of the channel which leads to JNPT will enable the port to receive vessels with capacity of 5000-6000 TEUs as against 4000 TEUs at present.

Revival of Vallarpadam International Transhipment Terminal?

Cochin Port is ready to go easy on the terms for the Vallarpadam project and offer concessions in order to get the work started. On account of the delay in the development of this terminal, Colombo Port benefited with India's transshipped cargo. It has another competitor within the state that of Vizhinjam port.

Shipping freight market booming

The US invasion of Iraq followed by rise in Chinese imports have le to increase in the freight rates across different categories of tankers, bulk carriers and liner trade, which is likely to continue for another year, according to Mr. P.K. Srivastava, Chairman of SCI. There is likely to be an oversupply of tonnage after 2005-06 when lots of ships are being delivered. The booming Chinese and Indian economies and the tonnage tax expectations are fuelling the Indian tonnage.

CMA-CGM to be disqualified from bidding for JNPT container terminal

CMA-CGM failed to submit the bid-bond of Rs 4.5 crores along with the technical and financial bids. As it shows lack of serious commitment, it is disqualified for bidding by the tender evaluation committee. The committee has cleared the proposals submitted by Maersk-Concor, PSA Corporation Ltd.-Bombay Dyeing Group and Marubeni Corporation-Evergreen Marine Corporation, subject to clearance by the cabinet committee on security.

Indian Shipping industry looks promising

The shipping companies, G.E. Shipping, SCI, Varun Shipping and Mercator Lines have all expanded their fleet to rake in the moolah on account of increased freight movement. The introduction of tonnage tax will attract more investments in the shipping sector, which was otherwise not so attractive for foreign companies, owing to high rates of corporate taxes and other levies.

Kolkatta Port Trust cashing in on the present iron-ore exports boom

The Kolkatta Port Trust has leased out plots of land to store the mineral prior to shipment. Barge loading will take place at Netaji Subhash Dock and Kidderpore Dock for transhipment at Saugor Island, which can receive vessels with a capacity of upto 40,000 tonnes. It has reduced the wharfarge for iron traffic from Rs 120 a tonne to Rs 20 per tonne in order to compensate for the cost incurred due to multiple handling.

Mercator lines shining up

By bagging the contract for transporting crude from the Middle East to Mangalore for the ONGC subsidiary - Mangalore Refineries, Mercator Lines has a feather in its cap. The larger companies were left out and the industry saw a new major players.

Andamans to taste fruits of the mainland through Vishakhapatnam

Concor and Kolkatta Port Trust jointly are handling movement of fruits, vegetables and other perishables by reefer containers from Kolkatta Dock System to Andaman & Nicobar Islands. To boost the traffic movement in this route, KoPT has reduced the freight rates substantially for various types of cargo like cement, sand, iron & steel, bitumen, etc. This has helped it to snatch away a part of the traffic to and from Port Blair from Chennai Port.

JNPT repays high interest debt

As a part of debt restructuring, JNPT repaid a part of its high-interest loan to the extent of Rs 468.28 crore out of Rs 956 crore. It sourced its funds from short-term bond issues of Rs 225 crore, long-term bonds of Rs 125 crore and the balance of Rs 118.28 crores through internal accruals.

JNPT repays high interest debt

As a part of debt restructuring, JNPT repaid a part of its high-interest loan to the extent of Rs 468.28 crore out of Rs 956 crore. It sourced its funds from short-term bond issues of Rs 225 crore, long-term bonds of Rs 125 crore and the balance of Rs 118.28 crores through internal accruals.

Chinese feeder line at Indian Port

'Dali' the feeder vessel, belonging to Far Shipping, a Chinese shipping line began feedering between Vishakhapatnam and Colombo by unloading more than 100 boxes at Vishakhapatnam port. Orient Express Line and Samudera Shipping also have shown interest in launching their feeder services.

Vizag's port terminal sees good growth in container traffic

VCTPL, a joint venture between United Liner Agencies and Dubai port Authority is managing the container terminal at Vizag port. It is currently operating at an average of 2000 TEUs per month and is likely to reach a level of 3000 TEUs per month by July 2004. This can be attributed to new handling equipment, the railway connectivity to the terminal and the continuing pendency problem at NSICT are forcing shippers to South East Asia to look at Vizag port as an alternative.

China's 2nd busiest port, Shezhan seen to overtake South Korea's Buson Port

China's number one port, Shanghai is expected to handle 10.9 mn. TEU by the year's end. Being a key port for servicing the mainland's Pearl River Delta, Shenzen port saw its traffic volume surging booster by its 20%-30% lower cargo handling fees than Hong Kong's. Its throughput increased by a phenomenal 50% in 2002.

India Shipping Ministry for more budgetary support during 2004-05

As against Rs 313.5 crores during 2003-04, the shipping ministry plans to treble its demand to Rs 1007 crore in 2004-05. The outlay for the ports as the shipping ministry for 2004-05 is Rs 1800 crore. The expected sources are Rs 637.37 crores through internal accruals Rs 116 crores from user agencies like refineries and power plants.

Shipping Ministry to push hard in 2004-05

In 2004-05, the ministry plans to take up major projects such as Setusamudram canal project, the deepening and widening of the Mumbai harbour and the Jawarharlal Nehru Port channel, along with infrastructure projects at Cochin port as a part of the Sagarmala project. Along side, it plans to take up other activities like dredging of ports other than JNPT and Cochin, setting up basic facilities at the ports proposed to be built and contribution towards Special Purpose Vehicle (SPV).

 
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