India container volume rises 4%

Throughput in April-August period increased by 3.1 million TEUs year-over-year

Container throughput at major ports in India increased 4.4 percent year-over-year in the April-August period, the Indian Ports Association said Friday.

Total volume for the first five months of fiscal 2011-12 was estimated at 3.22 million 20-foot equivalent units, up from 3.1 million TEUs a year earlier.
The tonnage of container traffic surged almost 10 percent to 49.4 million tons from 45.3 million tons.

The volume of containers handled by Jawaharlal Nehru (Nhava Sheva), the country’s largest container port, grew 2 percent to 1.78 million TEUs from 1.75 million TEUs.

Traffic at Chennai rose 6.5 percent to 672,000 TEUs from 631,000 TEUs a year earlier.

The latest IPA figures indicate recent congestion problems, following crane replacement at Nehru and truckers’ strike at Chennai, adversely impacted traffic growth at the two busiest container hubs, which cumulatively account for almost 75 percent of India’s total containerized cargo movements.

Kolkata handled 226,000 TEUs, up from 216,000 TEUs. Tuticorin moved 196,000 TEUs compared with 189,000 TEUs.

Major ports suffering marginal declines in container volume included Mumbai and Cochin.
According to the IPA, total tonnage at the 13 publicly-owned ports from April through August was up 4.6 percent to 237 million tons.

Kandla emerged as the top cargo handler with throughput of 35.9 million tons, followed by Visakhatpatnam, at 30.5 million tons; Nehru, at 26.7 million tons; and Chennai, at 24.7 million tons.

Stake sale in Ennore Port put on hold

New Delhi, Sept 9: 

The Government’s plans for a stake sale in Ennore Port Ltd has been put on the backburner as the Ministry of Shipping is of the view that the proposal is “unviable” at the moment.

“We have asked the Department of Disinvestment to wait for two years, let the projects at the port take off, then it (disinvestment) would be a viable option,” a Shipping Ministry official told PTI.

Rail connectivity and container terminal projects at the Ennore Port are underway and are likely to be completed in about two years. These projects have been taken up on a public-private partnership (PPP) basis.

The Ennore Port was originally conceived to handle thermal coal to meet the requirement of the Tamil Nadu Electricity Board (TNEB). The scope was expanded later, taking into account subsequent developments such as the Tamil Nadu Government plans to set up a power project.

Earlier this year, the Minister of Shipping, Mr G.K. Vasan, had said the Government was looking at divesting a part of its stake in Ennore Port Ltd.

Currently, there are 12 major and 176 minor ports in the country. The 12 existing major ports are Mumbai, the Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatnam, Kochi, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin and Kandla.

Meanwhile, the Ministry plans to award 24 port expansion and capacity creation projects in the current financial year (2011-12) at an estimated investment of over Rs 16,900 crore, leading to additional capacity creation of 232.43 million tonnes.

Out of the 24 projects, 12 are new projects, while the rest are carry-forward projects from the last two years.

‘Vallarpadam [ICTT] must match Colombo rates to attract cargo

Vallarpadam International Container Transhipment Terminal (ICTT) at Kochi port will struggle to attract cargo unless it becomes cost-competitive vis-à-vis Colombo port, Indian shipping industry sources say.

A comparison shows that a container vessel of GRT 11,998 capacity will attract port charge of $16,936.63 at Vallarpadam, against $3,517.20 at Colombo.

Breakups show port dues and pilotage at Vallarpadam at $4,295.30 and $9,346.44 respectively, as compared to $546 each at Colombo.

Several other cost components too place the ICTT at a disadvantageous position.

Dismissing suggestions that there was dearth of coastal shipping tonnage for feedering transhipped cargo between Vallarpadam ICTT and other Indian ports, the industry sources contend that “Ships will always rush to a port where there is cargo”.

There is no pendency at Vallarpadam, they point out.

throughfare

While there is no dearth of coastal cargo from ports such as Kandla, Mundra, Pipavav, JNPT, Mormugao and New Mangalore to Vallarpadam, cargo inducement in the opposite direction is virtually non-existent.

The sources say that the problems facing Vallarpadam ICTT are far more complex than they appear to be, and mere relaxation of Cabotage restriction will not help attract traffic.

Stevedores at New Mangalore port seek Ministry intervention on port rentals

Mangalore, Aug. 30: 

Stevedores at the New Mangalore Port have sought the Shipping Ministry intervention to withdraw the TAMP order increasing the port rentals with retrospective effect from 2007.

In a memorandum sent to the Shipping Ministry, Mr S. Shekhar Pujari, President of New Mangalore Port Stevedores, said that the association is surprised and hurt by the order which increased rentals from 50 per cent to 84 per cent on paved, unpaved and covered areas on long-term and short-term basis.

Timebound contracts

It said that the order of TAMP (Tariff Authority for Major Ports) has been effective from February 20, 2007. It will not be possible for the port users to recover increased rentals from importer/exporter since many of the work orders and contracts are time-bound.

While some of them closed their businesses, some other users are not using the NMPT. “This would only be a heavy burden on handling agent/ stevedores,” the memorandum said.

It said that the port submitted its request for increase in rates with TAMP in March 2007 and the port submitted its valuation report on July 17, 2009. The TAMP order, which expired on February 20, 2007, has been continuously extended till September 30, 2010.

The memorandum said that the TAMP issued the new order no. G-184 dated July 23, 2010 giving the highest ceiling rates.

“When we approached TAMP, we were informed that it is the port which has the full power to reduce the exorbitant rentals/suitable charges to make it prospective. Till date the port has not taken any decision on this issue. But have insisted us to pay the rentals retrospectively w.e.f February 20, 2007,” it said.

The memorandum said that the delay in fixation of port rental was mainly due to the delay on the part of the port and TAMP.

Since no decision was taken by the port authorities, one of the members of the association filed a plea in the Karnataka High Court.

The memorandum said: “The honourable High Court has stayed the demand for payment of rentals retrospectively and ordered to pay it on prospective basis and port users have complied with the same.”

It requested the Shipping Ministry to instruct the NMPT to withdraw the retrospective demand, and collect it prospectively.

Port sources told Business Line that because it is in the Court, the matter is sub-judice, and did not comment on it.

Business Linie

New Mangalore Port stevedores seek MoS’ help on rental issue

NEW Mangalore Port's stevedores have made a plea to the Ministry of Shipping (MoS) to help withdraw the Tariff Authority for Major Ports (TAMP) order augmenting port rentals with retrospective effect from February 2007.

In this regard, Mr S. Shekhar Pujari, President of New Mangalore Port Stevedores (NMPS), told MoS that his Association was surprised by the order, which hiked rentals from 50 per cent to 84 per cent on paved, unpaved and covered areas on long-term and short-term basis.

While elucidating that it would not be possible for the Port users to recover increased rentals from importers/exporters since many of the work orders and contracts were time-bound, the NMPS pointed out that the resultant decision by some Port users to shut shop and others not to use NMPT, would lead to a heavy burden on handling agents/stevedores.

The memorandum contends that even though the Port submitted its request for hiking rates to TAMP in March 2007, it only submitted its valuation report on July 17, 2009. Apprising that TAMP issued the new order dated July 23, 2010 giving the highest ceiling rates, the memorandum pointed out that the order was given a continuous extension till September 30, 2010 after its expiry on February 20, 2007.

The memorandum claimed that TAMP had informed NMPS that only the Port had the authority to cut the exorbitant rentals/suitable charges. However, till date, it had not taken any decision on the issue and instead was insisting the Association pay the rentals retrospectively w.e.f. February 20, 2007, it alleged.

The memorandum laid the blame for the delay in fixing the rentals on the Port and TAMP for dragging their feet on the issue.

Source : Exim News Service - MANGALORE, Sept. 8

APM Terminals Mumbai celebrates productivity record on Wan Hai vessel

In keeping with its status as the country’s leading container handling terminal, JN Port’s APM Terminals Mumbai (GTI) recently handled a record parcel size of 6,243 TEUs in 30 hours 51 minutes from the vessel m.v. Wan Hai 509. The total number of 4,878 moves entailed a berth productivity of 158 moves per hour and gross crane rate of 33.09.

To commemorate this world class benchmark in operations, a function was orga-nised at GTI on September 7 to felicitate Wan Hai, the operational teams that facilitated this national record as well as JN Port for its support. It was graced by Mr L. Radhakrishnan, Chairman of Jawaharlal Nehru Port Trust (JNPT), Mr N. N. Kumar, Deputy Chairman, senior JNPT officials, Mr Edward Ang, Owner’s Representative of Wan Hai Lines, Mr Arvind Bhatnagar, Executive Director-Western Region, CONCOR, and key APM Terminals Mumbai officials, including Mr P. K. Agarwal, Chief Executive Officer, Mr Rajieve Krishnan, Chief Operating Officer and Capt. Praveen Agnihotri, Deputy Chief Commercial Officer.

Among the highlights of the event was the cutting of a cake by the GTI workforce to celebrate this success and the presentation of a specially designed T-shirt to Mr Radhakrishnan.

In his address, Mr Radhakrishnan congratulated the terminal’s workforce, made up of people from the nearby region, for this stupendous success. This will further consolidate the Port’s standing, he stressed, in the process giving the employees and their children more opportunities for success, better education, as well as benefits to the region in the form of improved facilities, increased price for land, etc. He hoped that the success would rub off on the Port's other terminals as well.

The Chairman was hopeful of commencing the critical project to dredge the Port’s channels by October-November, which would facilitate the calling of more such vessels with large parcel-sizes. The initial phase of dredging would increase draught to 14 m. A long-term plan envisages draught up to 17 m, he disclosed.

One of the important facilitators of this record, JNPT’s Marine Department, was being modernised, he said. To save on the steep energy costs, JNPT was trying to ensure captive power within the Port through generation of non-conventional energy and by buying non-conventional energy from outside sources, Mr Radhakrishnan revealed.

Mr P. K. Agarwal attributed the record to the synchronised team effort of all stakeholders, including, importantly, the terminal’s workforce. More such records will follow, he said.

Mr Edward Ang complimented the workers for the achievement, which was achieved surmounting challenges such as monsoon rains, strong winds, etc. "You have created history," he emphasised, adding that records were meant to be broken.

Mr Praveen Agnihotri, in his vote of thanks, expressed confidence that GTI would soon better this record. He asserted that India has the potential to be the second-biggest box handling country after China.

Source : Exim News Service - NAVI MUMBAI, Sept. 8

GIPL to commission its MbPT BY end of 2012

Gammon Infrastructure Projects (GIPL) hopes to commission its offshore container terminal port project at the Mumbai Port Trust (MbPT)by the end of next year, managing director of the infrastructure company, KK Mohanty, said.
The Rs1,016 crore Indira Container Terminal (ICT) was to be completed this year. “There has been no delay from our side. In fact, our work is ahead of schedule but the port authorities delayed dredging activities,” Mohanty said.
Though ICT is presently a 50:50 joint venture between GIPL and Spain’s Dragados-SPL, GIPL is in the process of raising its stake to 74%. According to the agreement between the two companies signed in early 2010, GIPL will buy the remaining 26% from Dragados three years after the commercial operations begin.
ICT will have a capacity of 1.2 million TEUs (twenty-foot equivalent units).
A TEU, used to measure a ship’s cargo-carrying capacity and a terminal’s cargo-handling capacity, is one container 20-foot long, which is the standard size of a container. In case the container is 40-foot long the cargo lifted is around 2 TEU.
ICT is one of GIPL’s three port projects. While the Vizag port has been operational since 2004, GIPL recently got the forest clearance from the environment ministry for the Rs518 crore iron ore terminal at Paradip, Orissa, in which it holds 31%. Other partners include Minerals & Metals Trading Corporation (MMTC) and Hong Kong’s Noble group.
The companies in July financially closed the project, which is expected to be operational by 2013.
Besides the three ports, GIPL has eight road projects, of which four are operational. Mohanty said two will be commissioned this fiscal and the last two in 2012-13. He said the company has emerged as the preferred bidder for a national highway project and is the only bidder for another project. He did not divulge more details about the projects since the National Highways Authority of India is yet to award the projects.
An August 17 report by IDFC Securities said the operations of GIPL’s commissioned projects have steadily improved resulting in higher cash flows.
“Although the company will need Rs220 crore in fiscal 2012 and Rs380 crore in fiscal 2013 to fulfill equity funding requirement in various BOT (build-operate-transfer) projects, we expect the company to raise funds via options such as rights issue, stake dilution in operational projects or securitisation of operational cash flows,” Shirish Rane, Salil Desai, Ashish Shah and Nikhil Salvi wrote in the report.
GIPL is also developing two hydel projects, one co-generation project and biomass plants in Punjab and Haryana

Mumbai offshore terminal delayed [GIPL]

Gammon Infrastructure Projects Ltd (GIPL) says the opening of its offshore container terminal at India’s Mumbai port has been put back to the end of next year.
The US$225M Indira Container Terminal (ICT) was scheduled to be completed this year, but according to GIPL managing director KK Mohanty, the project has been held up by delays to dredging work being undertaken by the Mumbai Port Trust (MbPT).
ICT is currently a 50:50 joint venture between GIPL and Spain’s Dragados-SPL (NOATUM), but GIPL is in the process of raising its stake to 74%. Under an agreement signed between the two companies in early 2010, GIPL will buy the remaining 26% from Dragados three years after commercial operations.
The new facility is being developed on a build-operate-transfer basis under a 30-year concession, including the construction period. With a handling capacity of 1.2M TEU/year across two 350m berths, it will be able to accommodate ships of up to 6,000 TEU that are currently unable to call at Mumbai.

Shanghai expects to remain top box port

Shanghai, the world’s busiest container port, expects its throughput to grow 10% annually for the next five years as manufacturers open plants in western and central China in search of cheaper labour.

Blocking of duty refunds: Timber trade to boycott Kochi port

The Central Committee of the All Kerala Timber Import Association has said that its members have decided to stop import of timber through the Kochi port in protest against the authorities blocking duty refunds.

Timber importers are now stipulated to pay 9.4 per cent of the value of the timber imported as advance Customs duty. As the imported items are sold, the trade gets back four per cent of the amount as duty refunds.

Though timber merchants in Kerala used other ports in the country for import till about five years ago, the business shifted to Kochi for the convenience of small-time traders.

The timber traders said in a press release that they were in serious trouble as duty refunds for the whole of last financial year have been blocked.

The Association also alleged that duty refunds were being made on time in other States.

Business Standard 7, August

JN Port enhances maximum permissible LOA

With the placing of 2 Laser Range Finders on long vessels, the restrictions for turning around vessels over 270 m LOA in the night were removed recently at JN Port. With the experience gained from using these Laser Range Finders and following the hiring of a 60T Bollard Pull Tug, the Port has decided to handle vessels of up to 320 m LOA with effect from October 1.
However, the maximum draughts and displacements will continue to be as per the existing practice. Based on the experience, this will be reviewed for handling of such vessels during the 2012 monsoon, according to an official release.

Source : Exim News Service - NAVI MUMBAI, Sept. 6

Shipping Ministry awarding 23 PPP port sector projects this fiscal: Vasan

The Union Minister of Shipping, Mr G. K. Vasan, informed the Lok Sabha recently that as per the current policy, port sector projects are awarded on public-private partnership (PPP) basis on build, operate and transfer (BOT) mode under the two stages bidding system. The private sector is allowed to participate in the competitive bidding process or BOT projects, and the projects are awarded to the highest bidder, he disclosed.
Currently, 29 private sector projects have been sanctioned and are in operation across the Major Ports. Twenty more private sector projects are currently under various stages of construction. In the current financial year, a target of 23 PPP projects has been fixed to be awarded on PPP basis, which are at different stages of planning and bidding, he said.
The Minister pointed out that private sector participation is allowed under the guidelines issued by the Ministry in October 1996, as amended from time to time, which allows foreign investors too, subject to necessary clearances of concerned authorities.
The Minister informed that the guidelines allow and encourage private sector participation in enhancing port capacities, modernisation of port equipment, etc. Hundred per cent FDI is allowed in the port sector, he added.

Source : Exim News Service - NEW DELHI, Sept. 5

It's a poor-performing private monopoly at Mumbai Airport's air cargo complex, says trade

Call for government intervention so that MIAL is held to account
The Mumbai International Airport Ltd (MIAL) has created an inefficient private monopoly at the air cargo complex. This was the general view expressed at a media interaction called here recently by the Air Cargo Agents Association of India (ACAAI) along with a host of other trade bodies, including Bombay Custom House Agents’ Association (BCHAA), AMTOI, IMC, WISA, CII, Fieo, etc., to highlight what they said was the deplorable state of cargo handling at one of the country’s most important hubs.
The cargo sector has run out of patience with the state of affairs at the air cargo complex at Mumbai Airport and for waiting for things to improve, they stressed, and called for government intervention to assess the private operator’s (GVK) performance since it was not taking any interest in "improving the national asset".
The meet was addressed by, among others, Mr Bharat Thakkar, Vice-President of ACAAI, Mr Nailesh Gandhi, President of BCHAA, Mr Firdos Fanibanda, Chairman of ACAAI Western Region, Mr Mark Fernandes of IMC, Mr R. Radhakrishnan of WISA, Mr Anand Sheth of AMTOI and Mr Amit Goyal of Fieo.
They lamented the fact that instead of improved handling, enhanced infrastructure, and reduced dwell time and transaction costs the trade had hoped for from privatisation when the GVK Group took over operations at Mumbai Airport in 2006 (forming MIAL as a consortium with partners), what they have got is huge delays in cargo despatch and delivery resulting in 100 per cent growth in demurrage, no improvement in infrastructure, lack of adequate equipment, no protection/safety for cargo, systematic pilferage, lack of hazardous cargo/dangerous goods management ("explosives stored with general cargo"), no time-frame for cargo segregation leading to penalties for over-staying the free storage period, improper storing/stacking etc.
There has been no improvement in even the basic infrastructure though cargo volumes have almost doubled in the last four years, it was pointed out, with the result that the trade is literally paying the price through demurrage ("Rs 1 crore in 6 months"), blocked working capital, increased transaction costs, missed connections, and delayed delivery of essential cargo to consignees. "The increase in demurrage is an indicator of poor service levels. The operator is making money by being inefficient. It if clears cargo within 24 hours, there is probably less money to be made. Despite this, one hears the Ministry is considering further reducing the free time from 72 to 48 hours".
"Today there is systematic pilferage due to this inefficiency. No CCTVs have been installed at the air cargo complex despite our repeated requests. Why? We fail to understand."
It was highlighted that it took 12 hours for a truck to even enter the gates, followed by another 3-4 hours to reach the docking station, where lack of adequate facilities and equipment resulted in further delays. "MIAL says that volumes are high. But then why take more business?"
According to the trade, what MIAL has created is a high-cost ("we pay one of the highest tariffs in the world), low efficiency, exploitative private monopoly that has not benefited the trade in any way. "We are completely at the mercy of MIAL. It is high time there is more accountability. The government wants us to increase the country’s international trade, but facilities at an important cargo hub are not up to the mark. How can we then be competitive in the international market?"
There was even a suggestion that MIAL should be brought under RTI since the government is a shareholder.

Source : Exim News Service - Mumbai, Sept. 5

Landlord port model chosen for Vizhinjam ICTT

WITH the Kerala government now focusing on the Landlord Port Model (LPM), the Rs 9,000-crore Vizhinjam International Container Transhipment Terminal (ICTT) is finally beginning to find its feet on the infrastructure front after hanging fire for a decade.
Proposed as one of the world's deepest ports with a natural depth of 24 metres, the Vizhinjam port looks likely at the moment to emerge as a force to reckon with in the global maritime trade.
Under the LPM, the basic infrastructure will be set up through an EPC (engineering, procurement and construction) contract. The technical bids submitted by a consortium of several companies will be scrutinised within 10 days for responsiveness and compliance with the qualifications. On completion of the technical evaluation, the Vizhinjam ICTT will go ahead with the financial bids.
The LPM puts a great deal of responsibility on the operator, by including the breakwater, quay wall, dredging and reclamation, and external connectivity (road, rail and utilities) in the infrastructure development of the project. The private partner would develop the massive structure for the port operations and the terminal, and would be allowed to operate and maintain the facility for 30 years.
Throwing light on the development, Mr K. Babu, Kerala Port Minister, apprised that the details of this plan were yet to be decided. He added that the private partner’s inputs would be considered while making the master plan and detailing the EPC construction.
To be set up at Vizhinjam, near Thiruvananthapuram, with a quay length of 2,000 metres in three phases, the deepsea port will be designed to cater primarily to container transhipment, besides multi-purpose and break-bulk cargo. In addition to minimising dredging expenses because of its natural draught, the port also has the advantage of being located close to busy global shipping routes. It is learnt that the facility is envisaged to handle 4.1 million containers annually in the initial phase.

Source : Exim News Service - Thiruvananthapuram, Sept. 5

Private Investor in port construction

Union Minister of Shipping, Shri G.K. Vasan informed the Lok Sabha in a written reply to a question that as per the current Policy, Port Sector Projects are awarded on Public Private Partnership (PPP) basis on Built, Operate and Transfer (BOT) mode under the two stages bidding system.

The private sector is allowed to participate in the competitive bidding process or BOT Projects and the Projects are awarded to the highest bidder. At present 29 Private Sector Projects have been sanctioned and in are operation across the Major Ports.

20 more private sector projects are currently under various stages of construction. In the current financial year a target of 23 PPP Projects has been fixed to be awarded on PPP basis which are at different stages of planning and bidding.

The Minister said that Private sector participation is allowed under the guidelines issued by the Ministry in October, 1996, as amended from time to time, which allows foreign investors also subject to necessary clearances of concerned authorities.

The Minister further informed that the guidelines for private sector participation in the Major Ports issued in October, 1996 allows and encourage private sector participation in enhancing port capacities and modernization of Port equipments etc. 100% FDI is allowed in Port Sector, he added.

Source: PIB

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