MARITIME NEWSLETTER FOR THE WEEK ENDED SEPTEMBER 27, 2003

   

Additional clause may delay Nhava Sheva’s third container terminal

Dead line for submitting financial bids is extended to November 30 from earlier September 30, on JNPT’s decision of introducing new clauses in request for participation document such as Minimum Guaranteed Throughput (MGT)clause and clause curtailing restrictive trade practices.

Anxiety over New Port Security Norms

There is a lot of anxiety over new ISPS (International Ships & Port Security) norms issued by IMO, which are supposed to come into force from July 2004. The major motive behind this law is to prevent terrorist attack and to prevent any mishap from happening. ISPS will result in increased cost for ship companies, as they have to provide for additional Security guards and officers on board.

DG Shipping has initiated process of ISPS code compliance

Director General of Shipping has started initiating the process of compliance with International Ships and Port Security (ISPS) code, which came in existence after Sept 11, 2001 attack and is an International.

GE Shipping bags IOCs contract in consortium

In response to, bids invited for hiring 4 small and one Large Aframax Crude tanker, for lighterage operation for imported Crude on East coast, GE Shipping bags the contract for large vessel at $18450/ day, followed by Mercator Lines grabbing the contract for two vessels at $1770 & $16310 / day and SCI grabbing the remaining two at $13320 & $13260/ day. It was second time for Mercator Line to celebrate, as they grabbed second big contract after the one earlier with MRPL for transporting Crude from Moddle East to Manglore.

GE Shipping sold Jag Priya, A Product Tanker

GE Shipping sold its 44128 DWT Product tanker Vessel at Hong Kong, which was inchartered for five years. Company, after a recent acquisition of Magellan Spirit, 1985 built 9500 DWT Aframax vessel, is planning to acquire one more crude/ Product Tanker.

Government to seek private participation for development of Inland Water Transport (IWT)

Government is looking for proactive private role for IWT, which is being developed under Sagarmala Project. Under this project government is looking to raise 85% of the total estimated cost of 100,000 crores from private sector. Government is also thinking of giving private sector free rein in the management and operations of IWT and wants to restrict itself to the role of a regulator only. Shipping ministry is seriously mooting a plan to move to Union Cabinet for framing policies and other regulations and guidelines for development of IWT. Government is also keen on developing and strengthening river ties with Bangladesh for mutual benefits.

Government to Set up Single Buoy Mooring (SBM) at major ports

Government is planning to set up SBM at deep sea within the jurisdiction of major ports so as to help large crude carriers of 2-3 Lakhs Dwt unload without coming to berths. It will be both cost effective and time effective. For enticing players to use this facility government is also thinking of giving some cost benefits to intended parties. One of the reasons behind it is the loss of IOC account by Kandala port to Mundara port operated by Adani group as Kandala had no SBM facility and large players are increasingly using large crude carriers for economy of scale. The major beneficiary of installing SBM will be Paradip port, as it will augment the capacity of Paradip by 10 to 12 million tones.

JNPT agrees to allow 5th gate at NSICT

Permission of additional gate near premises of NSICT will solve Box congestion caused inside. JNPT board has also appointed three transport service providers on expiration of previous contract for operating 30 tractor trailers each.

Kandla Port achieves 4.45 Percent growth during April - August

Total tonnage handled by Kandla port during April – August, 03 rose by 4.45 % at 16.6 mn MT up from 15.92 mn MT, during the same period of previous year.

Kochi Transshipment Project to be postponed further

Kochi port’s proposed International Container Transshipment Terminal (ICTI) project supposed to cost Rs.2000 crores is likely to be delayed further due to work on appropriate model being going on. The reason being non-submission of price bids by the bidders CSX of UK and Maersk India respectively. Besides trustees felt the concessions demanded by bidders to be unreasonable. The bidders did not submit bids on 12th September the stipulated time within which bids were supposed to be submitted.

Nhava Sheva gets notice from Supreme Court (SC)

 

Notice was issued by SC to Nhava Sheva for clarification on keeping 150 containers containing waste oil in the garb of lubricating oil, out of which 47 were found to be containing hazardous oil, which according to Basel norms no Port is allowed to Import or Export.

Process of ISPS code compliance has been initiated by DG Shipping

Director General of Shipping has started initiating the process of compliance with International Ships and Port Security (ISPS) code, which came in existence after Sept 11, 2001 attack and is an International Ship security certificate mooted by IMO, at 12 major Ports, 36 Minor Ports and 10 Shipyards.

Shipping Ministry Considering to Adopt Hybrid Model for Development of JNPT

Ministry of Shipping is considering of adopting a new model for development of JNPT comprising of both the revenue sharing and minimum guaranteed throughput (MGT) model for development of third container terminal at JNPT expected to cost Rs. 800 crores. For this there is a consideration being going on where trustees of JNPT are thinking of allotting the bid to the party, which agrees to share highest percentage of revenue along with some MGT. This will entail minimum risk for Government. For this the bidder is supposed to operate a minimum of 1.4 Lakhs twenty-foot equivalent unit (TEU) in the first year and 1.3 million TEUs by the end of decade. If the party is unable to meet the targets of cargo handled as mentioned in MGT there will be a fine of 100% on the shortfall.  Players in the race for this container terminal are Maersk, West Port, NYK Line, and Stevedore etc. 

Tariff Authority for Major Ports (TAMP) allows Port trusts to levy reduced rates

To boost the competition in Ports & Terminals, TAMP, in its recent gazette notification of September 2nd , has given Port Trusts freedom to charge reduced rates, within a range of tariff ceiling and floor rates, getting decided by TAMP for each individual Port.

Traffic Authority for Major Ports (TAMP) to decide on its stand on revised norms

 

TAMP has decided to clear its stand on revised norms by mid October or November. In the first two discussions where the port authorities of Eastern & Southern region concerned over the view that there should be continuation of cross subsidization of tariffs. The meeting where the ports authorities of Eastern region were present was not well attended and it was a cause of concern as there was no representative from Industry, shipping interests.

VLCC: The New Attraction for Shipping Companies


Due to extraordinary good conditions prevailing in world tanker market Indian shipping companies are keen to add VLCC in their fleet. SCI has ordered 2 VLCCs while GE shipping is adding one VLCC I by Mid- November. The main reason behind it being resurgence in world tanker freight rate with average rate for tankers shooting from $23, 875 in 22nd August to $43,288 by the end of 12th September.

 

 

 

 
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