No impact of US-China trade war on India: Chief Economic Advisor August 28 , 2019

HYDERABAD: The ongoing trade war between United States of America and China will not have any impact on Indian export which is just below 2 per cent of the global trade, Chief Economic Advisor Krishnamurthy Subramanian said recently. 

Speaking to reporters on the sidelines of a programme here, he said the slew of measures announced by the Centre for the revival of muted growth in the economy were in the right direction, though it was necessary to focus on the 'structural reforms.' 

"Our exports share is still very small. Our share of global export trade itself is about 2%. Therefore, we still have enormous opportunity to grow. Even if there is actually some shrinkage in the pie of the global trade, still we can grow our pie. Exports cannot grow unless actually we emphasise on productivity, he said when asked about the impact of the tariff war between US and China on India.

Customs & Post move forward with exchange of Electronic Advance Data

BRUSSELS: Under the auspices of the SECUREX Project, the WCO and the UPU conducted a joint national technical assistance mission to India recently to review the progress and provide them further assistance with the implementation of electronic advance data (EAD) between Customs and Post.

This joint WCO-UPU technical assistance mission was aimed at strengthening the existing cooperative relationship between India Customs and Post and further enhancing digital solutions for information exchange between them for effective risk-management and improved Customs-postal clearance processes.

Based on the current national situation, experts from the WCO and the UPU guided the participants through all the steps and associated processes for the initiation, establishment, testing and launch of the EAD exchange mechanism. In this context, legal and regulatory frameworks, cooperation arrangements, business processes, technical specifications and IT systems, as well as associated WCO and UPU instruments, standards, and tools were examined and discussed. Over 50 participants from India Customs and Post benefited from the mission.

During the mission, the WCO and UPU experts, through detailed face-to-face interactions with Postal and Customs officials, as well as field studies, carried out a thorough diagnostics of the current situation with regard to the progress under the project and reviewed ongoing preparedness, in particular the IT preparedness for the electronic interface between Customs Declaration Systems (CDS) currently being tested by India Post and Customs EDI system.

Additionally, participants deepened their knowledge on practical aspects of the data capture, processing, transmission and use for effective risk management and service delivery, along with related best practices and case studies. Key issues relating to the establishment of Data Sharing Agreements (DSAs) with other designated operators were also discussed.

India Post has already been accredited as an Authorized Economic Operator (AEO). Indian Customs and Post acknowledged the need for enhancing postal chain security through a harmonized implementation of the WCO SAFE Framework of Standards and the UPU Security Standards (S58 and S59), as well as taking tangible steps for enhancing compliance to AEO requirements and enjoying AEO benefits.

Currently, India is testing the CDS and exploring its interface with Customs EDI system and eventually with Single Window Interface for Facilitating Trade (SWIFT) - Indian Customs Single Window. Based on the standards, tools and best practices, India Post and Customs have outlined a broad action plan 2020
to exchange advance electronic data on inbound and outbound postal items, once the CDS goes into the full production phase and they start receiving advance electronic data from origin posts, said a WCO release.

India to import more from US : Prime Minister Narendra Modi

BIARRITZ: Prime Minister Narendra Modi recently informed President Donald Trump that India plans to further step up imports, including oil, from the US and that USD 4 billion worth of imports were already "in the pipeline", as the two countries sought to overcome their differences on tariffs and market access. 

The Modi-Trump meeting assumes significance in the wake of the strain that has popped up in the bilateral relationship on a host of trade and economic issues. 

Meeting on the sidelines of the G7 Summit in the French city of Biarritz, where India was a special invitee, Modi and Trump agreed that preferably before the Prime Minister visits US next month, there will be an interaction between their Trade Ministers at which "the whole range of trade issues will be discussed," Foreign Secretary Vijay Gokhale said. India's exports to the US in 2017-18 stood at USD 47.9 billion, while imports were at USD 26.7 billion. 

The trade balance is in favour of India.  The Foreign Secretary described the bilateral meeting between Modi and Trump as a very positive one.

DP World, UAE Region and Jafza unlocking potential in New Markets for Indian Exports

DUBAI: DP World, UAE Region, the leading trade enabler, and Jebel Ali Free Zone (Jafza) showcased their capabilities and offerings at the FoodPro exhibition and conference organised by the Confederation of Indian Industry (CII) in Chennai to support and facilitate Indian Food & Beverage (F&B) exports.

 

The DP World team engaged with F&B companies looking to expand their businesses outside of India and familiarised them with strategic solutions on offer, including plug-and-play platforms, end-to-end supply chain solutions, value-added services, and an investment platform.

With bilateral trade between India and the UAE surpassing $60 billion in 2018 and poised to grow exponentially, the economic relationship between the countries has strengthened. India is now the second-largest trading partner of the UAE behind China. In support of this activity, Jebel Ali Port and Jafza provide a Multimodal trade, logistics, and industrial hub that further enhances the facility’s role as India’s gateway to the world by facilitating F&B exports and opening new markets for Indian traders. The Jebel Ali hub is the preferred commercial gateway to a region of 3.5 billion people. This access sustains Dubai’s position as the largest re-export centre for food products, catering to a vast import-dependent region from the GCC to the Middle East and North Africa (MENA), East Africa and Subcontinent markets.

 

Complementing the port facility is Jafza’s dedicated food and beverage cluster, spreading over 1.2 million square metres, and including 467 businesses from 66 countries, employing more than 5,880 people. Jafza also offers industry-specific value-added services, including packaging, storage, bagging and sorting, stuffing, palletising, and transportation.

The Free Zone also provides bonded and non-bonded zones supporting farm-to-shelf supply chain activities, common user facilities for tea and coffee trading and processing as well as sugar, grains, pulses, meat, edible oil, seeds, and other ready-to-consume food items. It is also home to the world’s largest port-based sugar refinery.

 

Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region and CEO of Jafza, said: “We aim to reach out to Indian businesses seeking new markets internationally, especially from the F&B sector. The India-UAE Bridge synergies between DP World, UAE Region and India and the ports and logistics capabilities in both countries enable us to offer integrated supply chain solutions to businesses through our unique end-to-end solutions. 

 

We deliver the most productive, efficient and safe trading solutions by thinking ahead, foreseeing change and innovation.

“The India-UAE Bridge is a mutually beneficial initiative. India is the UAE’s second-largest trade partner, and as the region’s leading trade enabler, we are keen to sustain and build on our excellent partnership and create a relationship that will allow both our countries to prosper. Our flagship facilities, Jebel Ali Port and Jafza, are well-positioned to integrate our assets, providing the best-in-class business and logistics support to Indian companies operating in Jafza.”

APL to enhance Asia Australia Express 1 & 2 Services

SINGAPORE: APL, part of the CMA CGM Group, has announced enhancements to its existing Asia Australia Express 1 (AAX1) and Asia Australia Express 2 (AAX2) services, which will be effective from the 23rd and 24th of October.

 

The revised weekly services will further strengthen connectivity between Southeast Asia and Australia. AAX1 will add two port calls at Laem Chabang and Tanjung Pelapas to facilitate the movement of shipments from Thailand and Malaysia to the Australian main ports. AAX2 will offer extended market coverage across Australia through additional port calls at Melbourne, Adelaide and Fremantle.

 

The first sailing of the enhanced AAX1 service will depart from Laem Chabang on 24 October with the following port rotation: Laem Chabang – Tanjung Pelapas – Singapore – Port Klang – Fremantle – Adelaide – Melbourne – Sydney – Brisbane – Singapore – Port Klang – Tanjung Pelapas – Laem Chabang.

 

The revised AAX2 service will begin sailing from Tanjung Pelepas on 23 October with the following port rotation: Tanjung Pelapas – Port Klang – Singapore – Brisbane – Sydney – Melbourne – Adelaide – Fremantle – Jarkarta – Tanjung Pelapas.

xports should be 1/3rd of USD 5-trillion economy: Pranab Mukherjee August 28 , 2019

NEW DELHI: Former President Pranab Mukherjee recently said exports should constitute one-third of the Government’s ambitious USD five-trillion economy aim. 

 

Mukherjee also said the ongoing trade war between the US and China should give Indian exporters a chance to increase volumes.

“One third of that (USD five-trillion economy target) must come from International Trade. The fight between the two giants (US and China) does give Indian exporters a ray of hope. But, that will be for a short while,” the Bharat Ratna said at a Federation of Indian Export Organisations event.

 

Mukherjee, however, said the increase in exports from India should come from the inherent strength of the economy, not from external circumstances.

 

The Former Finance Minister said that India had long followed the policy of import substitution, which was later “correctly” transformed into that of export promotion. This shift led to higher exports, he said.

 

Commenting on Eastern India, Mukherjee said it will have to be the growth engine of the Country, and called for higher contribution of the manufacturing sector in the overall GDP. Earlier he had said the Government’s target of becoming a USD 5-trillion economy by 2024-25 is possible through prudent fiscal management.

FIEO welcomes initiatives taken by Finance Minister to propel economy

NEW DELHI: Welcoming the slew of measures announced by the Hon'ble Finance Minister, Ms Nirmala Sitharaman; Mr Sharad Kumar Saraf said that announcements made by the Government is aimed at investment stimulus, demand stimulus, Ease of Doing Business and recognition to wealth creators. Besides the roll back of the higher tax on foreign investors and the release of funds to recapitalise public sector banks will go a long-way in easing liquidity and further giving a much needed boost to the economy in such challenging times added Mr Saraf.

Further simplifying the GST system, the Government announced that all pending GST returns for MSME till now will be sorted out in 30 days with future refunds in 60 days. 

This initiative of the Government will further help the trade and industry to overcome their problem of liquidity and capital requirements said Mr Sharad Kumar Saraf.

FIEO President added that recapitalising of banks by Rs 70,000 crore upfront as additional lending and liquidity along with banks being asked to pass on rate cuts through MCLR reduction to further make Rs 5 lakh crore available for credit expansion will further help in creation of liquidity into the system.

The reforms and measures to revive economic growth in such challenging times shows the commitment of the Government under the dynamic leadership of the Prime Minister on a road map for New India based on inclusive growth.

FIEO sees strong flow of exports from Eastern India August 27 , 2019

NEW DELHI: The Federation of Indian Export Organisations (FIEO) has said it is expecting a strong flow of exports from Eastern India, especially in the iron and steel sector.

Gems and jewellery, iron and steel, petroleum and marine products occupied some of the top segments with regards to exports from West Bengal, said a statement from the exporters' body.

"We are continuing to endeavour to seek fresh contacts with newer and upcoming markets with import demand so that it can boost export prospects of our members and others to add to the country's foreign exchange", FIEO Eastern Region Chairman Sushil Patwari said.

In the Indian economy, the exports contribute substantially to the country's GDP, he said.

India's GDP in 2018-19 stood at USD 2.7 trillion and during the year, the Country's export of goods touched an all time high of USD 331 billion and USD 204 billion in services, the statement said. On an average, the exports contributed about 20 per cent to India's GDP for the financial year 2018-19, it said

PIL’s fleet attains Environmental Ship Index (ESI) Certification August 27 , 2019

SINGAPORE: Pacific International Lines (PIL), Singapore’s leading containership operator, has successfully attained Environmental Ship Index (ESI) certification for its fleet comprising of half a million TEUs.

This is a major milestone for the Singaporean shipowner ahead of the transition towards the Global Sulphur Cap 2020 from 1 January next year.

ESI certification is an on-going initiative by the World Ports Sustainability Program (WPSP) and it is a voluntary program for ship owners to enroll their vessels – attesting that their vessels exceed the basic standard set by the International Maritime Organization (IMO).

To qualify for certification, vessels have to demonstrate that their emission level of Nitrogen Oxide (NOx) and Sulphur Oxide (SOx) and Carbon Oxide (CO2) is well below what is allowed by the IMO. This is a perfect indicator of the environmental performance of the ocean-going vessels and will encourage the adoption of green vessels. 

Many leading shipping lines have since participated in this program and this effort is well-recognised by many leading ports in the world including US, Europe and Asia.

The International Association for Ports and Harbours (IAPH) set up the WPSP in 2017, with the aim of enhancing and coordinating future sustainability efforts of ports worldwide as well as fostering international cooperation with partners in the supply chain.

Mr Teo Siong Seng, Executive Chairman and MD of PIL said: “Sustainability will remain a key part of how we conduct our business and we take protecting our maritime and port environment very seriously. We are doing this not just for ourselves but for the next generation who will be inheriting this earth from us. PIL is proud to be part of the program and we will continue to engage with business, governmental and societal stakeholders to create sustainable value-add to the local communities and beyond.”

 

Mansukh Mandaviya inaugurates various projects at VOC Port August 27 , 2019

TUTICORIN: An Export-Import Industrial Park, which can provide employment to a few thousand people, will come up on 702 acres of land close to the VOC Port, Union Minister of State for Shipping Mansukh L. Mandaviya said recently.

The Union Minister was inaugurating new projects completed with an outlay of Rs. 193 crore and laying the foundation stone for several new projects to be taken up with an outlay of Rs. 13.87 crore, here.

Mr. Mandaviya said the proposed Export-Import Industrial Park would be established on 702 acres of land close to the harbour  employees’ quarters. It would house garment manufacturing units, automobile components manufacturing and oil refinery units and the “master plan” for the project had been prepared.

Besides generating employment to a few thousand people, the Export-Import Industrial Park would ensure increased cargo handling at the VOC Port, he said.

Steps had been taken to deepen and widen the entry point of VOC Port to receive bigger vessels with more number of containers, which were now being shipped from Colombo International Container Transhipment Terminal that handles 2.50 million containers a year. Once the deepening and widening works were completed, the bigger “mother vessels” could take the containers directly from VOC Port to international destinations, the Minister said.

Mr. Mandaviya boarded a tugboat for inspecting the ongoing development works off the VOC Port.

He inaugurated a rail track laid between Hare Island and Marshalling Yard at the cost of Rs. 58.30 crore, coal jetty I upgraded on an outlay of Rs. 50.12 crore and North Cargo Berth established at the cost of Rs. 36.52 crore.

The Minister laid the foundation stone for widening entry point of the seaport from 153 metres to 230 metres at a cost of Rs. 13.11 crore and installation of 140 KW solar power panels at the cost of Rs. 76 lakh.

Chairman of VOC Port T.K. Ramachandran, Vice-Chairman N. Vaiyapuri, former Union Minister of State for Shipping Pon. Radhakrishnan, Traffic Manager Prabhakar and senior officials of the seaport were present.

CMA CGM will not use the Northern Sea Route

MARSEILLE: CMA CGM has decided that none of its 500 vessels will use the Northern Sea Route along Siberia, which is now open due to climate change.

Additionally, the company said it would give priority to liquefied natural gas (LNG) to power its future ships in order to further protect the environment.

“With this decision, CMA CGM makes the resolute choice to protect the environment and the planet’s biodiversity despite the major competitive advantage this route represents for shipping companies,” Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said.

The Northern Sea Route, which runs the length of the Siberian Coast, connects Asia to Europe today. The route has been made navigable due to the effects of global warming.

“The use of the Northern Sea Route will represent a significant danger to the unique natural ecosystems of this part of the world, mainly due to the numerous threats posed by accidents, oil pollution or collisions with marine wildlife,” according to CMA CGM.

Furthermore, the company explained that today LNG offers the best proven solution available to significantly reduce the environmental footprint of maritime transport. The use of LNG reduces emissions of sulphur and fine particles by 99%, nitrogen oxides emissions by 85% and carbon dioxide emissions by up to 20%.

CMA CGM would use LNG to power its ultra-large ships that are designed to carry up to 23,000 containers. The first ship in this fleet of nine container vessels are scheduled for delivery as early as 2020. By 2022, the company will have 20 LNG-powered vessels in its fleet.

The shipowner added that it continues research into other energy sources after a successful test of biofuel oil at port of Rotterdam aboard the 5,095 TEU containership CMA CGM White Shark in March 2019. CMA CGM is also establishing research partnerships to develop hydrogen as a potential long-term energy solution.

During the meeting, Saadé is to deliver to the President of France, Emmanuel Macron, on behalf of the maritime industry, the SAILS (Sustainable Actions for Innovative and Low-impact Shipping) Charter, formalized on the initiative of the Ministry for the Ecological and Inclusive Transition.

Through this charter, ten French signatory shipping companies, including Brittany Ferries, CMA CGM, Corsica ferries, Corsica Linea, Express des îles, Jifmar, La Méridionale, LDA, Orange Marine, PONANT, all members of Armateurs de France, commit to implementing specific actions in the reduction of emissions of air pollutants and greenhouse gases, whale protection, vessel energy optimization and performance, and strengthening of relations with the scientific community.

Between 2005 and 2015, the group reduced its CO2 emissions per container transported by 50% and has a target to further reduce these emissions by a further 30% by 2025.

“We make these decisions for the future, to leave our children a cleaner planet,” Saadé said, inviting the entire industry, competitors, partners and customers, “to join us.”

 

India's GDP expansion much higher than Global growth: Finance Minister August 27 , 2019

NEW DELHI: Seeking to dispel doubts over the economy and Government's growth agenda, Finance Minister Nirmala Sitharaman has recently said the India's GDP continues to grow at a faster pace than the global economy and any other major economy. 

Addressing a press conference, she said reform is a continuous process for her Government and it tops the agenda. Global GDP growth may be revised downwards from the current estimate of 3.2 per cent, she said adding that globally the demand was going to be weak. 

But the Indian economy was growing faster than the global average and all other major economies, Sitharaman added. 

As a result of US-China trade war and currency devaluation, very volatile situation has developed in global trade, she said.

Commerce Ministry to soon come out with new Foreign Trade Policy August 26 , 2019

NEW DELHI: The Commerce Ministry will soon come out with a new Foreign Trade Policy, which provides guidelines and incentives for increasing exports for the next five financial years 2020-25, an official said.
The Ministry is giving final touches to the new policy as the validity for the old one will end on March 31, 2020.
“We have taken views of all stakeholders. The new policy is likely to be announced by September-end or early-October,” the official said.
The Ministry’s arm Directorate General of Foreign Trade (DGFT) is formulating the policy.
Recasting incentives
The new policy would focus on simplifying procedures for exporters and importers, besides providing incentives to boost outbound shipments.
At present, tax benefits are provided under the ‘merchandise export from India’ scheme (MEIS) for goods and ‘services export from India’ scheme (SEIS).
In the new policy, changes are expected in the incentives given to goods as the current export promotion schemes are challenged by the US in the dispute resolution mechanism of the World Trade Organisation (WTO).
In this backdrop, the Government is recasting the incentives to make them compliant with global trade rules.
The Commerce Ministry has also floated a cabinet note for a new export incentives scheme — Rebate of State and Central Taxes and Levies (RoSCTL) — that would be compliant with the WTO norms.
The RoSCTL scheme is available for exports of garments and made-ups.
It would now be proposed to extend it to all exports in a phased manner.
The new scheme would replace the existing MEIS, which was challenged by the US last year in the WTO. It would ensure refund of all un-rebated Central and State Levies and taxes imposed on inputs that are consumed in exports of all sectors.
Major un-rebated levies are: State VAT/ Central excise duty on fuel used in transportation, captive power, farm sector, mandi tax, duty of electricity, stamp duty on export documents, purchases from unregistered dealers, embedded CGST and compensation cess coal used in the production of electricity.
Promoting R&D
Exporters are demanding incentives based on research and development, and product-specific clusters under the new policy.
Ludhiana-based Hand Tools Association President SC Ralhan said the new policy should have provisions for refund of indirect taxes like on oil and power, and state levies such as mandi tax. “Sectors like engineering should be promoted as they create huge number of jobs. There should be relaxation for obtaining licence under Export Promotion Capital Goods for modernisation of industry,” Ralhan said.
Assistant Professor and expert on agriculture economics Chirala Shankar Rao said the policy should look at ways to promote agri-exports as it holds huge opportunities.
During April-July 2019-20, the Country’s exports dipped 0.37 per cent to USD 107.41 billion.
Since 2011-12, India’s exports have been hovering at around USD 300 billion. During 2018-19, overseas shipments grew 9 per cent to USD 331 billion.
The Government is targeting to increase the exports to USD one trillion in the coming years.
 

FreightBro and JOC.com hosted their 1st India Logistics Technology Summit

MUMBAI: FreightBro, India’s first freight forwarder facing platform, associated with Journal of Commerce (https://www.joc.com), a go-to portal providing information on international container shipping & logistics hosted their first ‘India Logistics Technology Summit’ at the Centre of Incubation and Business Acceleration, Navi Mumbai.
The summit witnessed sessions on how software can make key ocean freight processes and capabilities more efficient and less costly, potentially positioning India as the key growth market for world trade in the coming years.
Mr. Raghavendran Viswanathan, CEO & Co-founder, FreightBro, said, “The acceptance curve of the freight forwarding industry for digitization will be gradual and eventually inevitable. There will come a point when the freight forwarder will make decisions looking at dashboards rather than just using it as a price comparison tool. We are glad to contribute to the logistics industry by co-hosting industry led events with the presence of a rich mix of professionals who are working towards digitizing freight forwarding.”
Mr. Eric Johnson, Senior Editor - Technology, JOC.com, said, “It is an interesting phase as we witness logistics networks moving towards supply chain networks with front end and back end technology working seamlessly. We are glad to partner for our first event in India with FreightBro, a key enabler in using cutting edge technology to scale up operation management for the freight forwarding community.”
The panel discussion brought up interesting conversations and observations; plug and play software start-ups offer a layer of flexibility and standardization to the freight forwarding community, the technology platforms act as salespersons reducing customer acquisition costs and older players are opening up to technology once they realize that it is enabling them in all possible ways.
The event showcased the potential of technology to completely change the landscape of international freight movement by reducing reliance on manual processes and paper-based documentation for freight forwarders.

Alphaliner: HMM to add 34 Ships to THE Alliance’s Network in 2020

LONDON: South Korean Container shipping major Hyundai Merchant Marine (HMM) is expected to add some 34 ships to THE Alliance’s network in 2020, according to data provided by Alphaliner.
Citing deployment plans revealed earlier by HMM, the shipping analyst said that the company would add up to 519,000 TEU to the network once it joins THE Alliance as a full member on April 1, 2020.
Although the alliance members have not yet disclosed their new network plans for the next year, Alphaliner noted that the Korean carrier’s ships are expected to be deployed on the following routes:
– Asia – North Europe route, where twelve 23,000 TEU newbuildings are scheduled for deployment from the second quarter of 2020;
– Asia – Med or Asia – US East Coast route would feature ten of the company’s 13,000 TEU ships, including three vessels currently chartered out to the 2M Alliance;
– Asia – Pacific Southwest (USWC) route, where HMM would send six 10,000 TEU units, all of which are currently chartered out to the 2M;
– Asia – Pacific Northwest (USWC) route, where the company would deploy eight of its 8,600 TEU vessels.
Additionally, another eight HMM 15,000 TEU newbuildings are expected to be deployed on the Asia – US East Coast route from the second quarter of 2021.
Alphaliner further said that HMM is expected to cooperate with THE Alliance partners on the Far East – Middle East routes, although its participation in the trade is to be downgraded from the 13,000 TEU scale to tonnage of 5,000 to 6,600 TEU.
Apart from the newbuildings that the South Korean major would receive in 2020 and 2021, its fleet will be strengthened in April 2020 by redeliveries of nine 10,000 – 13,000 TEU ships currently (sub-)chartered out to Maersk and MSC. The charters were among  the conditions set for the 2M-HMM agreement that was signed in March 2017. It resulted in the withdrawal of HMM tonnage from the Far East – North Europe, Far East – Med and Far East – USEC routes.
The new arrangement with THE Alliance will allow HMM ships to return to the Far East – Med and Far East – USEC routes. At the same time, the carrier will be able to gradually replace the 5,000 TEU classic Panamax ships that it started to send onto the Far East – North Europe route in 2018, with 23,000 TEU giants as of April 2020.

DP World announces strong results for first 6 months of fiscal year

DUBAI: Global trade enabler DP World PLC on 22 August 2019 announced strong financial results for the six months ending 30 June 2019 with reported adjusted EBITDA and attributable earnings growth of 21.9% and 26.8% respectively.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem credited the company’s strategy of developing innovative new products and services and prudent management for DP World’s impressive half-year results.
Bin Sulayem added that DP World’s excellent performance against the backdrop of challenging global economic conditions is a testament to the company’s resilience, sound growth strategy and the diversification of its global investment portfolio across energy, maritime and sustainable mobility amongst others.
Bin Sulayem stated: “Our half-year financial results have been in line with our expectations, Mr Bin Sulayem said. He highlighted that DP World continues to be guided by deep market understanding, innovation and operational excellence across 45 Countries Worldwide. Despite uncertainty from the trade war and challenging regional geopolitical realities, DP World has been able to deliver and excel a broadly impressive performance in the first half of 2019.”
“DP World is pleased to report like-for-like earnings growth of 22% in the first half of 2019 and attributable earnings of $753 million. This strong financial performance has been delivered in an uncertain trade environment, once again highlighting the strength of our portfolio. We have continued to make progress on our strategy to become a trade enabler and solutions provider as we look to participate across a wider part of the supply chain. We have invested significantly across our Ports, Logistics & Maritime Services businesses.
The aim is to connect directly with customers to offer logistics solutions and remove inefficiencies in the supply chain to accelerate trade. We are seeing positive signs of progress in our new businesses that give us encouragement for the future,” he added.
“Our balance sheet remains strong, and we continue to generate high levels of cash flow, which gives us the ability to invest in the future growth of our current portfolio. Going forward, we aim to integrate our new acquisitions and deliver synergies with the objective of providing smart end-to-end solutions, which will improve the quality of our earnings and drive returns. While the near-term trade outlook remains uncertain with global trade disputes and regional geopolitics causing uncertainty to the container market, the strong financial performance of the first six months also leaves us well placed to deliver full-year results slightly ahead of market expectations,” he further added.

Reduction in Logistics cost by 10% can increase exports by 5-8% : FIEO

NEW DELHI: The critical role played by India's logistics sector in the country's economic growth story could not be understated. Instrumental in moving goods across its huge length and breadth (about 3.287 million square km), Indian roads are the lifeline of the logistics sector. However, the logistics sector itself is highly unorganised, fragmented and currently mired in multiple challenges leading to operational inefficiency on several fronts.
In India, the logistics cost as a percentage of its GDP stands at 14%. This cost is pretty high compared to the similar cost in the US (9.5%), Germany (8%) and Japan (11%). Nevertheless, the Country aims to bring down this cost to less than 10% by 2022.
Considering the critical role of logistics in propelling India's exports, Federation of Indian Export Organisations (FIEO) believes a reduction in logistics cost by 10% could increase the Country's exports by about 5-8%.
The all-important last mile
Stemming from the same concept is another of its byproduct -called the 'last mile' - a term used in supply chain management to refer to the last leg of the supply chain, denoting the transportation of goods from a transportation hub to its final destination. This final destination could be the location of an end customer or inland container depots (ICDs), container freight stations (CFSs), ports or airports where goods are to be delivered for their eventual exports.
Given the vast expanse of the country's sheer size, a varied and uneven topography, coupled with the fact that a large number of the Country's Industrial Clusters (dominated mainly by MSMEs) are based out of its tier 2 cities, and not in its large metros, the last mile connect has historically been said to be throttling the growth of Indian MSMEs.
While in recent times the Government has taken many steps to minimise last mile woes, a lot is left to be desired. Various studies have shown that Indian logistics landscape, typically comprises of isolated entities, with a skewed modal mix that depends heavily (about 60%) on the already congested Indian roads.
The Indian coastline and river network have historically remained underused, even though such models
are more energy-efficient, eco-friendly and comes with reduced logistics costs, highlights a recent Deloitte-Assocham study. The same study notes that the cost for Coastal Shipping is Rs 0.15-0.2 per tonne-km compared to Rs 1.5 for railways and Rs 2.5 for the road. Addressing these anomalies could alone provide a huge potential to lower logistics cost in the economy by Rs 21,000-27,000 crore by 2025, the report adds. So, what do industry leaders feel about this critical bottleneck?
Anil Bhardwaj, Secretary-General of the Federation of Indian Micro, Small & Medium Enterprises (FISME), believes, "Availability and efficiency of logistics have a direct bearing on firms' competitiveness."
Highlighting how disparities in locational advantage results in a downside to North India based industries, he says, "Industries in North Indian States have a natural disadvantage against Coastal States of Tamil Nadu, Andhra Pradesh, Maharashtra and Gujarat as those can import raw materials at better international prices and export to." According to the industry expert, being handicapped by location weighs down smaller firms more, because compared to their larger counterparts, they cannot relocate to States which have a more efficient infrastructure network.
Putting the last mile in the fast lane Experts assert that to have an integrated end-to-end logistics network, the need of the hour is that all relevant policymakers, logistics service providers (LSPs), transport and terminal infrastructure service providers come together to formulate a cohesive and integrated logistics policy.
The Indian Government, to this effect, has recently reviewed the draft National Logistics Policy (NLP).
The mega policy blueprint, with inputs taken from four relevant Ministries, i.e, the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation and 46 Partnering Government Agencies (PGAs), hints at the broad scope of the soon-to-be-introduced policy framework.
With a view to develop a Multi-Modal infrastructure, the policy envisages optimising the current modal mix (road-60%, rail-31%, waterways-9%) to bring them at par with international benchmarks (road--25-30%, railways--50-55%, waterways--20-25%).
To bring down the Country's logistics cost from the present 14% of GDP to less than 10% by 2022 that the Government envisions, industry leaders underline that India needs to play to its strength, which is put to use its proven prowess in domains such as IT capabilities and digital technologies. As per them, any logistics-centric roadmap, aimed at tackling last-mile woes, must thus focus on leveraging on India's capabilities in technologies such as cloud computing, blockchain technology, internet of things, among others.

Sanjay Sethi led JNPT delegation visits Antwerp Port to further enhance co-operation between APEC & JNPT

ANTWERP: The Antwerp / Flanders Port Training Center (APEC) and Port of Antwerp welcomed a delegation from its partner JNPT led by Chairman Mr. Sanjay Sethi, IAS, recently to discuss its joint training centre in Mumbai, India. Senior officials from Port of Antwerp, APEC and JNPT discussed about the mutual co-operation in making JNPT - Antwerp Port Training Centre a world class Maritime Training Institute.

 

 “We look forward to further develop the training institution as a world class centre of excellence,” said a communiqué from APEC.  

 

The JNPT – Antwerp Port Training and Consultancy Foundation is a cooperation between JNPT (Jawaharlal Nehru Port Trust), APEC the Antwerp/Flanders Port Training Centre and the Port of Antwerp. Registrations are open to participants from Major Port Trusts, Private Ports and Terminals in India and from ports and terminals abroad. Apart from the key aspects of port operations, the underlying focus is to enhance and develop skills for Business development Strategies and Marketing and also instilling behavioural changes to lead effectively in the fast-changing business environment.

 

Visakhapatnam Port aims to lower cargo clearance time August 20 , 2019

VISAKHAPATNAM: In a bid to facilitate the movement of imports and exports at Visakhapatnam Port and reduce the clearance time for commodities from an average of seven to three days, Visakhapatnam customs is set to initiate a mechanism under which document checks and physical inspections will be carried out only for goods of exporters and importers with a ‘dubious’ background.
All other goods and commodities will be cleared through an online submission process.
“Although World Customs Organisation recommends that the average clearance time for a port should be below three days, last year we maintained an average clearance time of seven days. This year we had improved our performance and maintained an average clearance time of four days. Hopefully, with this mechanism in place we would improve our average clearance timing to three days by the end of the fiscal year,” said DK Srinivas, Principal Commissioner, Visakhapatnam Customs.
Customs officials said that this mechanism will be introduced under the Turant Customs scheme introduced by the Union Government for speedy clearance of goods at air and sea ports.
“A critical component of the World Bank’s Ease of Doing Business (EoDB) index rankings is the ‘trading across borders’ category in which India is ranked 80 (in 2019), compared with 146 in 2018. India is keen on entering the top 50 rankings and to realise the goal, the Turant Customs scheme has been introduced,” a Customs Official added. Officials are hopeful that if manual checks of documents and physical inspections of every imported or exported consignment is stopped, the clearance time can be significantly reduced. In fact, they claimed that Visakhapatnam customs might reach the WTO recommendation of below three days for average clearance timings by the end of the financial year.
“We would undertake the risk management solution on the basis of our trust and faith in the exporters and importers. However, agencies with a dubious background won’t be spared. Their consignments would undergo a rigid inspection and verification,” added Srinivas.
Visakhapatnam customs has earlier initiated reforms such as single window interface for facilitating trade, e-Sanchit and direct port delivery.

Shipping Minister Mansukh L. Mandaviya visits New Mangalore Port August 20 , 2019

MANGALORE: Shri Mansukh L Mandaviya, Minister of State (Independent Charge), Shipping & Minister of State for Chemicals & Fertilizers visited New Mangalore Port (NMPT) on 16 August 2019. The Minister was accompanied by Shri Nalin Kumar Kateel, MP.
The Minister reviewed the performance of the Port and was briefed by Shri A.V Ramana, Chairman, NMPT on the infrastructure projects and other proposals for enhancing the productivity of the Port and sustaining the status as Numero Uno in being the cleanest Port in the Country.
The Minster interacted with the key members of the major captive users of the Port, namely the MRPL, KIOCL, MCF, IOCl, UPCL and Chettinad Mangalore Coal Private Ltd.
While addressing the members of the Stevedoring agents, freight forwarders as well as the key associated Government bodies such as Customs, Immigration Departments, the Minster urged for smooth transactions to promote Ease of Doing Business by further streamlining procedures.  He also assured them all assistants to boost growth of business through the Port.
The Minister was particularly appreciative of the CSR activities of the Port towards uplifting the standards of hygiene in schools and also towards water table rejuvenation schemes, especially since they benefit the society directly and are also the key project of the Union Government.

OOCL’s total volume increased by 3.2% in first six months of 2019

HONG KONG: For the second quarter of 2019 (ended 30th June 2019), total volumes were 4.6% up from the same period last year. 

Total revenues increased by 7.1% to US Dollars 1,566.4 million. Loadable capacity increased by 6.4%. 

 

The overall load factor was 1.4% lower than the same period in 2018. Overall average revenue per TEU increased by 2.4% compared to the second quarter of last year.

 

For the first six months of 2019 (ended 30th June 2019), total volumes increased by 3.2% over the same period last year and total revenues recorded a 6.5% growth. Loadable capacity increased by 4.3%. The overall load factor was 0.9% lower than the same period in 2018. Overall average revenue per TEU increased by 3.3% compared to the same period last year.

Cosco plans New Pier to expand Piraeus capacity to over 10 mn TEU

BEIJING: Cosco, the operator of Greece’s Piraeus Port Authority (PPA), plans to build a fourth container pier, expanding the port’s capacity to over 10 mn TEU and making it comparable to the biggest Northern European ports.
The port’s management has already communicated its plan to Greece’s recently elected Prime Minister Kyriakos Mitsotakis, and is a key component of a new master plan.
Mistotakis has made the more private investment in the country’s ports, a Government policy priority.
In the PPA’s new master plan, construction of a fourth pier will increase the port’s capacity by 2.8 mn TEU and expand total investment in the port by $224m to just short of $900 mn.
Piraeus is already the largest container handler in the Mediterranean and is the sixth largest in Europe, while the recently released UNCTAD ranking of the world’s best-connected ports reveals investments by Cosco has benefited Piraeus to make the best-connected port in the Mediterranean in 2019.
“A container port’s performance is a critical factor that can determine transport costs and, by extension, trade competitiveness,” said UNCTAD’s Director of Technology and Logistics, Shamika N. Sirimanne.
Container traffic at Piraeus port reached 4.9 mn TEU in 2018, 18.4% higher than the previous year, and over 700% higher than when the Chinese company was first awarded the operation of Pier II. Since then, it has built Pier III. In 2019, traffic is estimated to rise to 5.5-5.6 mn TEU. With the planned completion of the western part of Pier III, capacity will reach 7.5 mn TEU and the new pier IV will add another 2.8 mn TEU.

Bhavani Foundation helps rain affected people in Maharashtra August 20 , 2019

MUMBAI: Bhavani foundation has come forward to help the villagers in the areas of Western Maharashtra that got severely impacted by heavy rains. Life is slowly inching back to normalcy in flood-ravaged Kolhapur and Sangli as flood waters have receded in these districts of Maharashtra.
Bhavani foundation reached these districts to help the people with water bottles, food, clothes, medicines and other basic needs. The situations in Shirol & Karveer tehsil were severely affected by floods.
Bhavani Foundation came forward to the remote areas in Shirol & Karveer Tehsil like Ambewadi, Savlemal, Masubamal, Haringanmal, Chikli, etc, and started distributing water and food in the flood-affected area.
Bhavani Foundation never fails to contribute for various social activities for the welfare of the community.
Founder President - Bhavani Foundation & Managing Director - Bhavani Group, Mr. K. D. Shetty assured that the people from these districts can contact Bhavani foundation for any help as Bhavani Foundation has always stepped in for helping farmers, students & deprived people and will continue to help others every time.

Trade War can remove 0.5% Container demand in 2019 & 2020 : Maersk

COPENHAGEN: AP Moller-Maersk has warned that the ongoing US-China trade war is impacting growth, and it could “in isolation remove up to 0.5% of global container demand” in 2019 and 2020. While global container trade grew by around 2% in the second quarter of 2019 compared to the year-ago period, there has been a broad-based slowdown in all major economies with negative effects from escalating trade restrictions also weighing on trade growth.
In April, the US raised tariffs on Chinese imports from 10% to 25% on goods with value equivalent to 2-3% of globally traded goods. Later in early August, US tariffs of 10% on additional $300bn was announced to take effect by 1 September 2019.
 “So far, US importers have shifted imports away from China to other countries such as Vietnam, Korea, Thailand, India and Mexico,” Maersk stated in its latest second quarter results report.
“The impact of the newly imposed tariff hike is expected to be significant for the US-China bilateral trade and could in isolation remove up to 0.5% of global container demand in 2019 and 2020, and when US tariffs on additional $300bn is implemented later in the year, it could result in a reduction of up to 1% in 2020,” Maersk stated.
The Shipping Group’s CEO Soren Skou warned that the low growth scenario is not expected to end soon, and there is a possibility of a recession, though it is unlikely to happen in the US in 2019 or 2020.
For the full year 2019, global container trade is projected to increase by 1-3%. Uncertainties relating to the strength of container demand in 2019 pose a downside risk to freight rates in general, Maersk added.

Trading with World : Export Promotion Schemes provided by Govt to boost exports from India

MUMBAI: After the "Make in India" initiative by the Modi Government, Indian exports have increased manifold. There are numerous export schemes, financial aids and other benefits provided by the Government of India to exporters which have led to this increase in exports.
The following are the various export schemes provided by the Government of India so that the Indian economy grows with a corresponding increase in foreign exchange reserves:
• Advance authorization scheme: This scheme allows businesses to import inputs within the Country without paying any duty. However, such inputs should be utilized further for the production of an export item.
•             Advance authorization for annual requirement: This scheme is for those exporters who have had excellent export performance for the last two years. Such exporters can benefit from the Advance Authorization for Annual requirement scheme.
•             Customs, Central excise, and export duty drawback scheme:
In this scheme, the exporters can get a refund of all duty and taxes which were paid for the inputs against the exported products. The Duty Drawback is nothing but the refund that is received by the exporter. If the export schedule does not have the details of the duty drawback scheme, the exporter can speak to the tax authorities to get a brand rate as per the duty drawback scheme.
•             GST tax rebate: The Government of India also offers rebates on GST to exporters, if such output services for the export goods are specified.
•             Duty-free import authorization: This scheme, which is provided by the Government of India, is clubbed with the Duty Exemption Entitlement Certificate (DEEC) (Advance License) and Duty Free Replenishment Certificate (DFRC) so that the exporters can get free imports on certain products.
•             Export Promotion Capital Goods' (EPCG) zero duty scheme: This scheme applies to all the exporters who are into electronic goods. Zero percent customs duty is to be paid by the exporter in case the export value is at least six times that of the duty saved on imports of capital goods for production, pre-production, and post-production. The exporter must confirm the value which is an export duty, within six years of the issue date.
•             Post Export EPCG duty credit scrip scheme: As per this scheme, exporters can get an EPCG license and directly pay to the Customs Officials if they are not sure about paying the export obligation. The Government can refund the exporter taxes which were paid earlier and which satisfy export obligations.
•             Towns of Export Excellence (TEE): The towns of export status are such towns which produce and export goods which are above a particular value in some of the identified sectors. Such statuses given to the towns are based on their performance and potentiality of exports so that they can enter new markets.
•             Market Access Initiative (MAI) scheme: This scheme provides financial advice to such agencies who directly or indirectly are involved with marketing activities like market research, capacity building, branding, and compliances in importing markets.
•             Marketing Development Assistance (MDA) scheme: The main motive of this scheme is to encourage export activities abroad, help the Export Promotion Councils to promote their products and to take such other measures to market internationally.
•             Scheme related to Merchandise Exports: This scheme applies to the export of certain goods to some particular markets. Benefits for exports under this scheme are payable as a percentage of the realized Freight on Board (FOB) value.
•             Rebate of State Levies: This scheme allows the exporters to claim refunds from the center for all such levies and duties which are paid by the exporters at the state level.
•             Freight Assistance to Exporters: The Government has introduced Transport and Marketing Assistance (TMA) scheme to enhance the exports of agricultural products by providing a definite amount of freight charges as reimbursement and to provide help to the exporters for the marketing of agricultural products.
Considering that the Indian economy is one of the fastest growing economies in the World, the Government of India has created various economic policies which can enhance India’s economic
progress. Improving Indian exports is one such plan of the Government. Thus, the Government has taken a quite a few steps towards enhancing the exports of India by introducing the export benefit schemes as mentioned above. The main objective of these export benefit schemes is to simplify the entire export process and make it easier.
Authored by - Abhishek Gupta - Founder of Starters’ CFO - a virtual CFO service for small businesses in India.

TEA urges Govt for an alternative scheme after MEIS removal August 16 , 2019

TIRUPUR: Tirupur Exporters’ Association (TEA) has urged the Government to come out with an alternative scheme with the same benefits of the Merchandise Exports from India Scheme (MEIS) for the growth of the readymade garments industry.
In its appeal to the Centre, TEA said that MEIS, a lifeline support given to exports including readymade garments, was removed from August 1, 2019 onwards due to more pressure coming from the WTO, further to a complaint lodged by the US with the WTO dispute settlement body. Actually the scheme (MEIS) was introduced for offsetting the infrastructural inefficiencies faced by exports of specified goods including readymade garments to provide a level playing field. It is a fact that the enhanced competitiveness is mainly needed to sustain in the global market.
When the exporting units are in a less competitive and disadvantageous position, the buyers obviously resort to competing countries and the concern is that if the buyers leave India and settle in a competing Country, it would be difficult to bring them back immediately. In view of this, sops are required for sustenance of the readymade garment (RMG) sector, said Raja M Shanmugham, President, TEA.
“We wish to point out that the removal of MEIS will crumble the business created over a period of time.  Non-addressing of some of the core issues, including arresting infrastructure deficiency, signing of FTA with the EU, CEPA with Canada, CECA with Australia and bringing down the interest rates will further put pressure on the industry,” Shanmugham said in TEA’s letter to the Centre.

Digital logistics platforms disrupting Transport industry

MUMBAI: Advanced technological innovations are  disrupting the traditional transport and logistics industry across the globe. As a result, the conventional players in the logistics and transport system are innovating new ways to survive and sustain their business.
As the logistics and transport market has entered into a technological transformation, the transport companies need to be prepared to adapt to the change by innovating new business models, claims a study by Navigant Research.
In the last few years, a wide range of companies has emerged to provide real-time freight booking and pricing services that have improved efficiency and lowered the cost as well. In the global market, the apps and services like Uber Freight, Convoy, Transfix etc have helped in lowering the labour and material cost as well. In India, Porter and TruckSuvidha too are offering similar services.
Using these service and apps, shippers can view the available trucks and third-party logistics providers nearby and can book directly with a click of a button instead of using the conventional and lengthy brokerage process. The freight capacity too can be easily located using these apps and services.
Known in various names like smart logistics platforms, digital freight solutions, on-demand trucking, or even the Uberization of freight, these companies have one thing in common. They are transforming the speed and way how freight and logistics are brokered.
These apps and services help the logistics and freight booking market move swiftly and efficiently, removing wasted time on the booking process and getting the right trucks for payload quicker. The study expects the adoption of digital logistics platforms to increase further.
With mobile applications, freight pricing, and matching algorithms becoming more sophisticated and convenient for users over time, these platforms will expand further. Also, implementation of autonomous driving technology in the commercial vehicle segment expedite the process as these logistics platforms can be easily integrated into the self-driving technology.
New technologies to disrupt last-mile logistics
New technologies like delivery bots, drones could upend the last mile logistics, claims the study. These innovations are a result of the rising labour cost, as many shippers and carriers including Amazon, are experimenting with such technologies.
A study reveals that a reduction of just one driver mile a day can save up to $5 million per year. These disruptive technologies could easily transform the conventional logistics market by delivering the products faster, efficiently and in a cheaper way.
These technologies are far smaller than trucks and could prove to be cost-efficient compared to manufacturing a traditional truck. Also, these technologies come with substantially lower carbon footprints as well, besides removing the problem of road congestion. Apart from that, they can be easily integrated with automation and electrification as well.
The study points out that these technologies could revolutionize the way high priority goods like medical supplies and foods are delivered.
 

CONCOR and Indian Railways join hands to commence Container Train operation from Suranussi, Jalandhar

FEROZEPUR: Container Corporation of India Ltd. – CONCOR – a Navratna PSU of Ministry of Railways and Indian Railways join hands to commence Container Train operation from Suranussi, located near Jalandhar in Ferozepur Division of Northern railway, said T. P. Singh, General Manager, Northern Railway during the press conference at Ferozepur.
A land license agreement was signed at Ferozepur Division on 12th August 2019 between Railways and CONCOR at a glittering ceremony graced by T. P. Singh, General Manager (Northern Railway), Rajesh Aggarwal, DRM, Ferozepur, Sanjay Swaroop, Director International Marketing and Ops, CONCOR, Kamal Jain, Executive Director CONCOR (Northern Region) and other Senior Officers from Railways.
This new facility shall give impetus to transportation of Domestic and Export-Import cargo in containers from the catchment areas of Jalandhar, Hoshiarpur, Kapurthala and Amritsar.
Earlier, this Container Rail Terminal was opened on trial basis in March 2019 during which a total 540 TEUs (Twenty Equivalent Unit) Containers – in six container trains were handled moving 12,690 Metric Tonne of cargo to various parts of Country on Multi-Modal basis by CONCOR.
Sushil Kumar, Sr. Div. Engineer-II, Ferozepur Div. and Vineet Mathur, Chief Manager, CONCOR, Ludhiana signed the agreement on behalf of Railways and CONCOR respectively

PSA International & SCG Logistics to launch Joint Venture firm

SINGAPORE: PSA Thailand and third party logistics provider SCG Logistics Management Company have come together to jointly invest in the development and operation of the Thai Prosperity Terminal in Thailand, and rebranding it Thai Connectivity Terminal (TCT).
PSA Thailand and SCG Logistics will set up a joint venture firm in Thailand called SCG-PSA Holdings Co, which will serve as a springboard for potential joint exploration and investment in supply chain related opportunities across the region, with a major focus on Thailand.
TCT, sited along Thailand’s Chao Phraya River in Bangkok, is a well-established river terminal that directly serves the hinterland in and around the capital city.
TCT is well connected to the Deepsea port at Laem Chabang, allowing it to cater to the varied needs of local and regional cargo owners.
“Capitalising on TCT’s strategic location, PSA is committed to growing this critical node as part of our greater transport and cargo solutions network, and to open up more avenues of opportunity for the movement of goods and materials throughout the region,” said Ong Kim Pong, Regional CEO Southeast Asia, PSA International.

Port of Rotterdam launches PortXchange to make Digital Shipping App Pronto available to Ports Worldwide

ROTTERDAM: The Port of Rotterdam Authority launched its new company PortXchange Products BV (“PortXchange”) on August 8th 2019. This entity is set up to offer the Pronto platform and application to ports around the world over the next few years. The establishment of a separate company will enable partnerships with a variety of global players. Together with strategic partners Shell International Trading and Shipping Company Limited (“Shell”) and A.P. Moller – Maersk, PortXchange will initially offer Pronto to several ports outside the Netherlands. The launch of PortXchange provides a platform to create new strategic partnerships with ports, shipping companies and terminals, geared towards implementing smart digital solutions like Pronto in ports worldwide. This in turn contributes to the ambition of Port of Rotterdam to become the world’s smartest port.
PortXchange
Trust between parties for the free exchange of data is vital to the successful introduction of Pronto in other ports. The establishment of a separate company enables the solution’s neutrality and independence, and improves cooperation between all parties.
PortXchange aims to improve the efficiency of port calls and help clients reduce their emissions – both in the port as well as between ports. To this end, the company provides Pronto: a joint platform that can be used by shipping companies, agents, terminals, port authorities and other (nautical) service providers, which enables them to optimally plan, execute and monitor all activities during a port call based on the exchange of standardised data. In addition, Pronto enables just-in-time sailing, which helps reduce carbon emissions.
A smart port is a connected port
Taking the lead in digital transformation enables the Port of Rotterdam to become more efficient, reliable and, as result, more competitive.
Partnerships
The first PortXchange partnerships have already been signed – with Shell and A.P. Moller – Maersk. “Pronto will be offered in several ports in Europe and the US before the end of the year. The ambition for the years ahead is to make Pronto available to ports worldwide. Partnerships with major
international players like Shell and Maersk play a crucial part in making Pronto a global success,” said Allard Castelein, CEO, Port of Rotterdam Authority .

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MUMBAI: Advanced technological innovations are  disrupting the traditional transport and logistics industry across the globe. As a result, the conventional players in the logistics and transport system are innovating new ways to survive and sustain their business.
As the logistics and transport market has entered into a technological transformation, the transport companies need to be prepared to adapt to the change by innovating new business models, claims a study by Navigant Research.
In the last few years, a wide range of companies has emerged to provide real-time freight booking and pricing services that have improved efficiency and lowered the cost as well. In the global market, the apps and services like Uber Freight, Convoy, Transfix etc have helped in lowering the labour and material cost as well. In India, Porter and TruckSuvidha too are offering similar services.
Using these service and apps, shippers can view the available trucks and third-party logistics providers nearby and can book directly with a click of a button instead of using the conventional and lengthy brokerage process. The freight capacity too can be easily located using these apps and services.
Known in various names like smart logistics platforms, digital freight solutions, on-demand trucking, or even the Uberization of freight, these companies have one thing in common. They are transforming the speed and way how freight and logistics are brokered.
These apps and services help the logistics and freight booking market move swiftly and efficiently, removing wasted time on the booking process and getting the right trucks for payload quicker. The study expects the adoption of digital logistics platforms to increase further.
With mobile applications, freight pricing, and matching algorithms becoming more sophisticated and convenient for users over time, these platforms will expand further. Also, implementation of autonomous driving technology in the commercial vehicle segment expedite the process as these logistics platforms can be easily integrated into the self-driving technology.
New technologies to disrupt last-mile logistics
New technologies like delivery bots, drones could upend the last mile logistics, claims the study. These innovations are a result of the rising labour cost, as many shippers and carriers including Amazon, are experimenting with such technologies.
A study reveals that a reduction of just one driver mile a day can save up to $5 million per year. These disruptive technologies could easily transform the conventional logistics market by delivering the products faster, efficiently and in a cheaper way.
These technologies are far smaller than trucks and could prove to be cost-efficient compared to manufacturing a traditional truck. Also, these technologies come with substantially lower carbon footprints as well, besides removing the problem of road congestion. Apart from that, they can be easily integrated with automation and electrification as well.
The study points out that these technologies could revolutionize the way high priority goods like medical supplies and foods are delivered.

CONCOR and Indian Railways join hands to commence Container Train operation from Suranussi, Jalandhar

FEROZEPUR: Container Corporation of India Ltd. – CONCOR – a Navratna PSU of Ministry of Railways and Indian Railways join hands to commence Container Train operation from Suranussi, located near Jalandhar in Ferozepur Division of Northern railway, said T. P. Singh, General Manager, Northern Railway during the press conference at Ferozepur.
A land license agreement was signed at Ferozepur Division on 12th August 2019 between Railways and CONCOR at a glittering ceremony graced by T. P. Singh, General Manager (Northern Railway), Rajesh Aggarwal, DRM, Ferozepur, Sanjay Swaroop, Director International Marketing and Ops, CONCOR, Kamal Jain, Executive Director CONCOR (Northern Region) and other Senior Officers from Railways.
This new facility shall give impetus to transportation of Domestic and Export-Import cargo in containers from the catchment areas of Jalandhar, Hoshiarpur, Kapurthala and Amritsar.
Earlier, this Container Rail Terminal was opened on trial basis in March 2019 during which a total 540 TEUs (Twenty Equivalent Unit) Containers – in six container trains were handled moving 12,690 Metric Tonne of cargo to various parts of Country on Multi-Modal basis by CONCOR.
Sushil Kumar, Sr. Div. Engineer-II, Ferozepur Div. and Vineet Mathur, Chief Manager, CONCOR, Ludhiana signed the agreement on behalf of Railways and CONCOR respectively.

PSA International & SCG Logistics to launch Joint Venture firm

SINGAPORE: PSA Thailand and third party logistics provider SCG Logistics Management Company have come together to jointly invest in the development and operation of the Thai Prosperity Terminal in Thailand, and rebranding it Thai Connectivity Terminal (TCT).
PSA Thailand and SCG Logistics will set up a joint venture firm in Thailand called SCG-PSA Holdings Co, which will serve as a springboard for potential joint exploration and investment in supply chain related opportunities across the region, with a major focus on Thailand.
TCT, sited along Thailand’s Chao Phraya River in Bangkok, is a well-established river terminal that directly serves the hinterland in and around the capital city.
TCT is well connected to the Deepsea port at Laem Chabang, allowing it to cater to the varied needs of local and regional cargo owners.
“Capitalising on TCT’s strategic location, PSA is committed to growing this critical node as part of our greater transport and cargo solutions network, and to open up more avenues of opportunity for the movement of goods and materials throughout the region,” said Ong Kim Pong, Regional CEO Southeast Asia, PSA International.

Port of Rotterdam launches PortXchange to make Digital Shipping App Pronto available to Ports Worldwide

ROTTERDAM: The Port of Rotterdam Authority launched its new company PortXchange Products BV (“PortXchange”) on August 8th 2019. This entity is set up to offer the Pronto platform and application to ports around the world over the next few years. The establishment of a separate company will enable partnerships with a variety of global players. Together with strategic partners Shell International Trading and Shipping Company Limited (“Shell”) and A.P. Moller – Maersk, PortXchange will initially offer Pronto to several ports outside the Netherlands. The launch of PortXchange provides a platform to create new strategic partnerships with ports, shipping companies and terminals, geared towards implementing smart digital solutions like Pronto in ports worldwide. This in turn contributes to the ambition of Port of Rotterdam to become the world’s smartest port.
PortXchange
Trust between parties for the free exchange of data is vital to the successful introduction of Pronto in other ports. The establishment of a separate company enables the solution’s neutrality and independence, and improves cooperation between all parties.
PortXchange aims to improve the efficiency of port calls and help clients reduce their emissions – both in the port as well as between ports. To this end, the company provides Pronto: a joint platform that can be used by shipping companies, agents, terminals, port authorities and other (nautical) service providers, which enables them to optimally plan, execute and monitor all activities during a port call based on the exchange of standardised data. In addition, Pronto enables just-in-time sailing, which helps reduce carbon emissions.
A smart port is a connected port
Taking the lead in digital transformation enables the Port of Rotterdam to become more efficient, reliable and, as result, more competitive.
Partnerships
The first PortXchange partnerships have already been signed – with Shell and A.P. Moller – Maersk. “Pronto will be offered in several ports in Europe and the US before the end of the year. The ambition for the years ahead is to make Pronto available to ports worldwide. Partnerships with major international players like Shell and Maersk play a crucial part in making Pronto a global success,” said Allard Castelein, CEO, Port of Rotterdam Authority .

Shanghai Tops ranking of World’s Best-Connected Ports : UNCTAD August 13 , 2019

GENEVA: The Shanghai Port has topped UNCTAD’s 2019 ranking of the world’s best-connected ports, released on 7 August.
The Chinese port garnered a connectivity score of 134 points, followed by the ports of Singapore (124.63 points), Pusan (114.45 points) in Korea and Ningbo (114.35 points), also in China. The index is set at 100 for the best-connected port in 2006, which was Hong Kong, China.
Besides the Asian ports, the other ports on the top 10 list are those of Antwerp (94 points) in Belgium and Rotterdam (93 points) in the Netherlands. None of the ports in the top 20 list are from Africa, Latin America, North America or Australasia.
“A container port’s performance is a critical factor that can determine transport costs and, by extension, trade competitiveness,” said UNCTAD’s Director of Technology and Logistics, Shamika N. Sirimanne.
Efficient and well-connected container ports enabled by frequent and direct shipping services are key to minimizing trade costs and fostering sustainable development, Ms. Sirimanne said.
UNCTAD’s port Liner Shipping Connectivity Index (port LSCI) dataset enables businesses and governments to determine maritime transport trends and their ports’ positions compared to others.
More than 900 Ports covered The port LSCI, which now provides data on more than 900 ports dating back to 2006, is generated using the same methodology as that for the recently released country-level LSCI produced by UNCTAD in collaboration with MDSTransmodal.
The 2019 port LSCI shows that the expanded Panama Canal has led to shifts in patterns of services.
The data also indicates that the LSCI of New York/New Jersey and Savannah on the East Coast of North America grew by more than 20% since 2016, while the leading ports on the West Coast saw their LSCI stagnate.
The data further reveals that investments by shipping lines can attract additional services. Piraeus (Greece), operated by COSCO from China, for example, has become the best-connected port in the Mediterranean in 2019. In Africa, both geography and port reforms emerged as critical factors. The best-connected countries in Africa are those at its corners – Morocco, Egypt and South Africa.
Western Africa has relatively low connectivity because it doesn’t lie at the crossroads of major north-south or east-west shipping routes.
Mombasa (Kenya) and Dar es Salaam (Tanzania) connect Burundi, Rwanda and Uganda to overseas markets through dedicated corridors, but they remain highly congested.
Low connectivity makes merchandize trade costly and uncompetitive. Many small island developing states (SIDS) face a vicious cycle where low trade volumes discourage investments in better maritime transport connectivity.
The Pacific Islands are among those with the lowest shipping connectivity. For example, Port Vila (Vanuatu) receives about one container ship every three days, the data shows.
In Kiribati, there is only one operator offering regular liner shipping services, with one ship arriving about every 10 days. Port calls and port turnaround times
Besides the new datasets measuring liner shipping connectivity, UNCTAD also released new data on port calls and turnaround time in the global container ports, in collaboration with MarineTraffic.
The data shows that containerships have the lowest turnaround times.
In 2018, a ship spent a median time of 23.5 hours in ports.
Dry bulk carriers typically spent just over two days during a port call, while container ships spent the least amount of time – less than a day.
“A shorter time in port is a positive indicator that could partly signal the level of port efficiency and trade competitiveness,” said UNCTAD’s Chief of Transport, Frida Youssef.
The economies with the fastest turnaround times are the advanced ones with large volumes or small ones that handle low cargo volumes at each port call, Ms. Youssef said.
According to the data, the bottom 10 Countries are all developing Countries or least developed Countries.
However, a longer time spent in port does not necessarily mean that the port is less efficient, as owners of ships may choose to have them stay longer in a port to purchase goods or services.
According to Ms. Youssef, Countries with more port calls have lower turnaround times. “A port with a faster turnaround can accommodate a larger number of port calls with the same number of berths,” she said.
Such a port is also more attractive to shippers and carriers, Ms. Youssef said, so the number of port calls will be higher compared to a competing port that has a lower turnaround time.
These latest datasets complement other maritime statistics and indicators provided by UNCTAD to measure the achievement of the Sustainable Development Goals.

Draft National Logistics Policy should incentivize express industry: EICI

MUMBAI: Express Industry Council of India (EICI), which represents leading express companies in the Country, said the draft National Logistics Policy document does not focus on express industry and air cargo sectors, which are integral parts of the logistics network.
It said “The Government has overlooked express industry, especially air cargo segment, in the draft National Logistics Policy.”
EICI Chief Operating Officer, Vijay Kumar said “We laud the efforts in preparing the draft policy covering a broad spectrum of focus areas to drive the growth of Indian logistics sector. However, we note that the policy document does not focus on express industry and air cargo sectors, which are integral parts of the logistics network.”
The air express has also been overlooked in the Multi Modal Mix even though air is an essential segment of the movement of goods, he added. It also said that air cargo delivery needs special focus to reduce logistics costs in the Country.
He further added that, “In developing countries like India, an efficient air express infrastructure contribute directly to global competitiveness of the Country by ensuring just in time deliveries and reduced clearance dwell time.
Further, efficient express delivery industry acts as an economic catalyst by opening up new market opportunities, moving products and services with speed and efficiency”.
The Government had issued the draft National Logistics Policy early this year, aiming to reduce the logistics costs from 13-14% of GDP to 10% “in line with best-in-class global standards.”
EICI represents both domestic and International express companies operating in India including Aramex, FedEx, Blue Dart, DHL, DTDC, First Flight, GATI, TNT and UPS. It also suggested measures to streamline e-way Bill system.
 

GSP roll-back: Exports of goods under tariff system to US up 32% August 13 , 2019

NEW DELHI: Exports of Indian goods, which were enjoying benefits under the preferential tariff system GSP, to the US registered a growth of 32 percent in June, according to Trade Promotion Council of India (TPCI).
The US rolled back export benefits to over 1,900 Indian goods from June 5. These incentives were provided by America under its Generalised System of Preference (GSP) programme.
Citing the data from the United States International Trade Commission (USITC), it said the Indian exports to the US of those goods which were getting GSP benefits stood at $657.42 million in June as compared to $495.67 million in the same period last year.
"India's exports to the US on GSP withdrawn products has registered 32 percent growth in June 2019 as compared to the same month last year," TPCI Chairman Mohit Singla said in a statement.
This is a very interesting trend as out of $190 million value of GSP benefit claimed earlier, the growth has already covered $161.74 million, month on month for June 2019 compared to last year, leaving a thin margin of US $28.26 million only, he said.
The major products which have shown increase in exports include plastics rubber, base metals (aluminium), machines and equipments, transport equipment, hides and leather, Pearls and precious stones.
This is a clear indication that Indian products have the full potential to compete globally and not solely dependent on support, contrary to the perception, Singla said.
TPCI is a strong advocate of the phasing of subsidies and reducing Government support. He said the need is to incentivise new sunrise sectors like furniture and electrical, by creating a cluster-based mega ecosystem, which can churn export growth completely.
The era of continuing fixation of labour incentitive sectors should be over, as their growths have already flattened, despite sustained support, he said. India exported goods worth $6.3 billion to the US in 2018 under their export incentive programme.

Economic slowdown: Govt plans urgent steps to boost exports August 13 , 2019

NEW DELHI: The Government is weighing a raft of measures — including “full reimbursement” of various imposts on exports and relaxed lending norms to improve credit flow —
to reverse a slide in the growth of outbound shipments in recent months, sources said recently. While the Commerce Ministry has already circulated a Cabinet note to phase out the flagship Merchandise Exports from India Scheme (MEIS) with a more WTO-compatible regime under which various State and Central levies on inputs consumed in exports will be reimbursed, the Government will likely top it up with an assurance that all embedded taxes borne by exporters will be fully refunded.
“The new scheme will be a dynamic one, so that all sorts of embedded taxes will be reimbursed once exporters bring them to notice. A Government panel will examine their demand and take appropriate action. The idea, as we have stated, is that exports must be zero-rated as per the global best practices,” a source said.
Though the goods and services tax (GST) regime has subsumed a plethora of levies, some still exist (petroleum and electricity are still outside the GST ambit, while other levies like mandi tax, stamp duty, embedded Central GST and compensation cess etc remain unrebated). Similarly, the Reserve Bank of India (RBI) is willing to ease priority-sector lending guidelines for exporters. Currently, exporters with a turnover of up to Rs 100 crore each are eligible for credit under the priority sector norms. This limit is likely to be scrapped or doubled so that more exporters are benefited. The maximum sanctioned limit of loans is also likely to be raised to Rs 40 crore per borrower from the current Rs 25 crore. Even the cap on export credit at 2% of banks’ total loans could be relaxed soon.
However, the Central Bank has refused to endorse a proposal to allocate a part of its foreign exchange reserves for export credit — as is being demanded by some exporters — to boost flow of loans on the ground that such a move is fraught with risks, a source said.
Once tweaked, the revised priority sector lending norms and certain enabling guidelines are expected to release additional credit of anywhere between Rs 35,000 crore and Rs 68,000 crore for exporters, according to an RBI assessment. Recently, Commerce and Industry Minister Piyush Goyal told the  Rajya Sabha that banks’ outstanding export credit, which rose from Rs 1,85,591 crore in
March 2015 to Rs 2,43,890 crore in March 2018, dropped to Rs 2,26,363 crore at the end of March 2019.
Goyal has already held a series of meetings with exporters to address their concerns, and some of the steps being mulled will be finalised soon. The measures are proposed at a time when India’s merchandise export growth collapsed to just 0.6% in April, 3.9% in May and -9.71% in June. Citing persistent risks from a global trade war, the IMF recently trimmed its 2019 trade growth forecast by a sharp 90 basis points from its April projections to 2.5%, against the actual rise of 3.8% in 2018.
As for the plan to reimburse levies, such a scheme has already been implemented in garments and made-up exports. However, its scope and reach will be expanded now. Exporters will be refunded levies through freely transferable scrips. For the remission of State levies for garment and made-up exports, the Government had allocated Rs 3,664 crore in FY19. However, the compensation level under this scheme was expanded in March to include Central levies as well; even some embedded taxes were factored in.
So the potential revenue forgone is now estimated at around Rs 6,300 crore annually. The Government’s potential revenue forgone on account of the MEIS is estimated at Rs 30,810 crore a year.
However, Government officials have repeatedly stated that the entire allocation or potential revenue forgone on account of various such schemes (including MEIS) doesn’t qualify as export subsidies, as in most cases, they are meant to only soften the blow of imposts that exporters have been forced to bear due to a complicated tax structure. The US has dragged India to the WTO, claiming that New Delhi offered illegal export subsidies and “thousands of Indian companies are receiving benefits totaling over $7 billion annually from these programmes”. Indian officials have rejected such claims.
According to FIEO President Sharad Kumar Saraf, for our exporters to become competitive, the Government needs to ensure that transaction costs are cut drastically, embedded taxes are fully offset, raw materials are made available at reasonable prices and credit is extended at cheaper rates. “Land acquisition needs to be made easier and companies must not be dragged into unnecessary legal hurdles,” he added.

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MSME Ministry issues guidelines for schemes for promotion of MSMEs in NE region and Sikkim August 13 , 2019

NEW DELHI : The Ministry of Micro, Small and Medium Enterprises (MoMSME) has issued guidelines for Promotion of MSMEs in the North Eastern region and Sikkim of the Central sector scheme “Technology and Enterprise Resource Centres”.
The MoMSME has been working for the development of MSMEs in the Country and felt for a need  for special  treatment as far as development of MSMEs in North Eastern Region  & Sikkim  is concerned.
With this objective in mind, a special  scheme for 'Promotion of MSMEs in North Eastern Region
and Sikkim was approved on August 02, 2016.
After  merger of the four Schemes viz. (I) Tool Room and Technical  Institutions;  (ii) Promotion of MSMEs  in North Eastern Region and Sikkim; (iii) Infrastructure  Support to
MSME-Testing  Centres / Testing Stations/  Training  Institutes / Workshop & MSME  Development Institutes (Field Institutes) and (iv) Capital Outlay on Public Works,  a new Central Sector Scheme of "Technology  and Enterprise  Resource Centres"  was formulated  and the same was  appraised  by the EFC in its meeting  held on  January 16, 2018.
The Scheme has been approved by the Competent Authority. The sub-components of the scheme are to - Set up of new and modernization  of existing Mini Technology Centres; Development  of new and existing Industrial  Estates; Capacity  Building  of Officers along with some other activities.
For scheme for Setting up of new and modernization of existing Mini Technology Centres envisages financial assistance to State Governments for setting up new and modernization of existing Mini Technology  Centres.
The quantum of financial assistance will be equal to 90% of the cost of machinery/ equipment/ buildings, not exceeding Rs. 10.00 crore.
However, the Government of India funding would not be admissible towards cost of land and building’s cost will be maximum to the extent of 20% only.

DGFT notifies Mechanism to apply for additional claims under MEIS August 13 , 2019

NEW DELHI : Directorate General of Foreign Trade (DGFT) in a notification notified Mechanism to apply for additional claims under Merchandise Export from India Scheme (MEIS) for certain  HS codes for which-enhanced rates with retrospective effect were applicable.
The Directorate has notified higher rates for certain HS Codes during the Mid Term Review of the Policy, for export made from November 1, 2017.
“Certain exporters had realized payment for exports made on or after 01.11.2017 after having made exports under those HS Codes and have also claimed MEIS benefits from the Directorate, before the said Public Notices were notified,” said DGFT.
DGFT in a trade notice has asked such exporters to claim the differential 2% rates as enhanced.
Difficulties, if any, in the implementation of the mechanism may be brought to the notice of this Directorate, said the DGFT notice.

FFFAI calls for collaboration with Nepal Freight Forwarders Association to increase bilateral trade

KATHMANDU : Speaking at the Silver Jubilee Celebration function of Nepal Freight Forwarders Association (NEFFA) held on July 29 at Kathmandu, Mr S Ramakrishna, Chairman, Federation of Freight Forwarders’ Associations in India (FFFAI) urged for greater collaboration between FFFAI and NEFFA for mutual benefits and enhancement of bilateral trade. On this occasion the FFFAI Chairman recommended the following points:
•             FFFAI and NEFFA should work together in disseminating the best practices of each Country.
•             Both the associations should boldly speak about the difficulties that each border faces and how to mitigate the same, by representing jointly to each Government for which FFFAI stands committed.
•             On the Inland water ways there should be a meeting participated by India, Nepal and Bangladesh Freight Forwarders and should give Joint proposal to all Governments to extend the treaty, which already exists with Bangladesh, to Nepal too, especially for Jogighopa and Pandu Multimodal Logistics Parks being open up in the North Eastern India.
•             Both FFFAI and NEFFA should have mutual co-operation of trust to help each other in recovery / settlement of payment issues.
Currently, freight forwarders in Nepal are showing concerns over irrational charges levied by Shipping lines operating container services between India-Nepal route, including labour charges, additional surcharges and demurrage charges resulting in increase in logistics cost.
In addition, congestion at dry ports and exorbitant registration charges to use of Government’s cargo tracking system remain other areas of concern. Earlier, on July 28 Mr Ramakrishna also attended India-Nepal Logistics Summit which was jointly organised by Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Ministry of Industry Commerce and Supplies and Maritime Gateway, in association with Nepal Freight Forwarders Association (NEFFA). At this Summit discussions were held on infrastructure developments, issues related to transit time between Nepal and Indian ports, warehousing facilities in Nepal, issues related to tariffs charged by logistics service providers and requirement of automation of customs and border clearance.

Strong Indian Coal imports bring cheer to Panamax owners : Drewry

LONDON: Foreseeable strong Indian coal imports is expected to lend continued support to rates in the panama bulk sector in the coming quarters, following already climbing rates so far this year, according to analyst Drewry.
With the Indian Government’s plan to invest heavily in infrastructure, domestic coal demand will prompt firmness in coal imports, leading to increased rates in the panama market.
“Panamax rates have skyrocketed in 2019 and are likely to rise in the coming quarters supported by strong demand for coal imports in India,” said Rahul Sharan, Dry Bulk Lead Research Analyst at Drewry.
The Baltic Panamax Index (BPI) started off at close to 1,500 points at the beginning of 2019 before dipping to just over 500 points in February. But ever since, the BPI has gained strength and risen steadily until end-June before a surge in July and closing at 1,753 points on 5 August.
India’s Finance Minister had said in early-July that the Government plans to invest $285bn annually over the next five years on infrastructure – a surge of more than 150% compared with the past investment.
The investment initiatives will result in a massive surge in demand for steel, cement and power. The spurt in demand for cement has already generated huge requirements for non-coking coal imports this year.
India’s cement production has increased to more than 337 million tonnes in FY2018-19, a rise of more than 13% from the previous financial year.
“It takes about 200 kilograms of coal to produce one tonne of cement. Therefore, to produce 337 million tonnes, the Indian cement industry consumed 67 million tonnes of coal in FY2018-19. With the new Government firmly in place with emphasis on infrastructure, the demand for cement is expected to surge over the next few years. Additionally, with increased industrial production, coal demand for power generation will also expand,” Sharan explained.
“Moreover, domestic coal production has been increasing at a very slow pace, leaving power companies to depend on coal imports. For instance, domestic coal production increased 5% until May 2019, but imports surged 29%,” he added. Hence the inability of domestic coal producers to match domestic demand will keep Indian imports high over the next few quarters.
However, Sharan pointed out that the Indian Government plans to commercialise coal mining, which will boost domestic production and cut imports.
But “this will take time and until then coal consumers will have to rely on imports for a large part of their requirements”, according to Sharan.

Gateway of opportunities opens up for Trade and Investment in J&K and Ladakh post revoking of Article 370: FIEO President

NEW DELHI: The strong will and action of the Government under the dynamic leadership of Prime Minister Shri Narendra Modi and Home Minister Shri Amit Shah to scrap Article 370 has paved a new era of growth both for the people of Jammu & Kashmir and Ladakh region said FIEO President, Mr Sharad Kumar Saraf. Scrapping Article 370 will not only bring in huge trade and business opportunities for both the regions but will also help get the troubled region  to stand on its feet added Mr Saraf.
FIEO Chief said that this bold step taken by the Government at the Centre would allow flow of investments into the state in sectors like tourism, real estate, carpets, handicrafts, sports goods, horticulture and food processing and will also help in promoting trade and commerce specially exports of these products and services from the region. Jammu and Kashmir including Ladakh region are an area of strong potential for development as it enjoys a range of natural resources and immense talent. Strong and dedicated efforts from the Government, trade and industry including handholding of local businesses is the need of the hour today to further help to push its growth rate and create new jobs and livelihoods in the region said Mr Sharad Kumar Saraf. This multiplier effect would increase the employment opportunities and contribute to India's overall prosperity and growth & development of the country.
FIEO President further adds that opportunities, which exists in the other key sectors also includes pharmaceuticals, IT/ITeS, electronics and leather. Shortcomings with regard to post-harvest food processing of apples, saffron, almond, walnut and other fruits and dry fruits, as well as the acute lack of health care and educational facilities in the state mainly due to lack of private sector participation will soon be overcome by this bold step taken by the Government.
With this FIEO also plans to provide handholding to cater to the needs of the exporting community of both the region of J&K and Ladakh.
Mr Sharad Kumar Saraf further says that now with both Article 370 and 35A gone, J&K will be governed by the same rules as the rest of the Country, which means any Indian citizen can buy property in the State, take up a job and most importantly, invest in industry and trade initiatives in the State. Truly a historic decision as it opens the gateway for development and peace in Jammu and Kashmir, said a FIEO release.