India, China commit to promote bilateral Trade, Investment September 27 , 2019

WASHINGTON: India and China have committed to promote a favourable environment for continuous growth of bilateral trade and investment between the two countries, said an official release.

The bilateral relationship has entered into a new era after the historic informal summit between Prime Minister of India and China''s President held in Wuhan in April 2018, said the release issued after the 9th India-China Financial dialogue here.

A high level Chinese delegation led by Zou Jiayi, Vice Minister, Ministry of Finance interacted with the Indian delegation led by Atanu Chakraborty, Secretary, Department of Economic Affairs on wide-ranging issues of mutual interest. The India-China financial dialogue is a mechanism between the two countries with an aim to promote cooperation in the financial sector.

Both sides also committed to promote a favourable environment to enable continuous growth of bilateral trade and investment, strengthen their efforts to promote more balanced and healthier development of trade and economic cooperation and further enhance the closer development partnership between two countries, the release said.

V.O. Chidambaranar Port launches yet another ‘Green Port Initiatives’ September 27 , 2019

TUTICORIN: Leveraging the substantial energy savings that can be obtained through rationalisation of operations, adoption of new technologies and use of renewable energy sources, V.O. Chidambaranar Port Trust, Tuticorin, has proposed to install grid connected 25 MW onshore and offshore wind farms at an estimated cost of Rs.125 Crores at Port’s  estate.

V.O. Chidambaranar Port Trust, Tuticorin has been the trendsetter in establishing Roof Top Type Solar Power Projects among the Major Ports.

The port has already established 500 KW Rooftop Solar Power Plants at a cost of Rs. 4.78 crores through Power purchase agreement.

In addition to the 500 KW rooftop solar power already installed at the Port, orders have been issued to Tamil Nadu Energy Development Agency (TEDA), Chennai for installing 140KW solar roof top power plant at various locations of Port establishments at a value of Rs. 76 lakhs. The above project would be commissioned by the first quarter of 2020 and the expected average power generation per year would be Two lakhs units.

In a message conveyed by Mr. T.K. Ramachandran, IAS, Chairman, V.O. Chidambaranar Port Trust, “The port has good green credentials by implementing various projects like shore power supply to ships, roof top solar power generation, Sprinkler system and fogging machine at the coal yard, energy saving LED lighting systems, Mobile hoppers with electrically operated dust suppression systems and ambient air quality monitoring stations. The Port would continue to reduce the carbon footprints and set a trend among Major Ports of the Country for adopting an integrated Green Energy Port Model.”

Ports to focus on skilled employees with adoption of modern infrastructure September 27 , 2019

NEW DELHI: Skilling and re-skilling of employees are not buzzwords in the IT industry alone. Having pumped in crores of rupees to create world-class infrastructure in modern, technologically superior ports that are on par with global ports, the Government is now realising that a skilled workforce is critical to operating it effectively.

Not surprisingly, there has been a greater emphasis in recent times on building a skilled workforce for the port and maritime sector, and various measures are being implemented across the Country to achieve it.

This is critical for the success of the Sagarmala programme, where more than 610 projects costing Rs 7.78 lakh crore have been identified for implementation during 2015-2035, across the areas of port modernisation and new port development, port connectivity enhancement, port-linked industrialisation and coastal community development.

The availability of skilled manpower will be critical to enhancing efficiency, which, in turn, will help reduce logistics costs.

It is this realisation that has prompted the Government to set up skilling centres at Major Ports. One of the measures is setting up multi-skill development centres at JNPT. More such centres are planned at Chennai Port Trust (ChPT), Cochin Port Trust and Visakhapatnam Port Trust under the Sagarmala programme.

For instance, to develop training capacity for the port and maritime sector, Sagarmala Development Company wants to set up a multi-skill development centre at ChPT in the public private partnership mode. The Shipping Ministry will hand-hold the operating partner through its skill development convergence schemes, with the Ministry of Skill Development and/or Ministry of Rural Development.

The Ministry of Shipping is also funding skill development for 10,000 persons annually over the next three years in 21 coastal districts in the ports and maritime sector. The Centre of Excellence in Maritime and Shipbuilding - a first-of-its-kind initiative in Asia - will have the capacity to train more than 10,500 students in collaboration with Siemens and the Indian Register of Shipping at a cost of Rs. 766 crore. The aim is to impart employable engineering and technical skills in the areas of Ship Detailed Design, MRO, and advanced digital manufacturing concepts.

Interestingly, under the skill development and training programme, in Alang, the biggest ship breaking yard in the world, nearly 4,000 persons are being trained in occupational safety and health.

HMM cooperates with DSME for Smart Ship Development September 27 , 2019

SEOUL: HMM is closely working together with DSME on the research, development and innovation in the field of smart ship technologies.
The MoU (Memorandum of Understanding) signed by two parties includes:
•             Research on real-time service system based on IoT (Internet of Things);
•             Design on-shore platform for optimsed fleet operation;
•             Development of automated warehousing systems for ship materials;
•             Development of economic navigation solutions.
HMM plans to promote the innovation of smart ship technologies underway of directly reflecting and testing operational data to its own container vessels.
In fact, certain part of smart ship solution related to optimised ship operation has already been completed and will be applied to seven out of twelve 23,000 TEU mega containerships ordered to DSME last year.
The ships are scheduled to be sequentially delivered from April 2020.
HMM official said, "Joining forces between HMM and DSME will create a huge synergy," and that "HMM will preemptively respond to both environmental regulations and digitisation through operating 23,000 TEU ships outfitted with smart ship technologies."

Bahri wins ‘Investment in People’ Award at Seatrade Maritime Awards MEISA 2019 September 27 , 2019

DUBAI: Reinforcing its pre-eminent position in the maritime industry, Bahri, a Global leader in logistics and transportation, has received the ‘Investment in People’ award at Seatrade Maritime Awards Middle East, Indian Subcontinent and Africa 2019, held as part of UAE Maritime Week 2019, which took place under the patronage of H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai.

Hisham Alkhaldi, Chief Support Officer at Bahri, accepted the award on behalf of the company at a ceremony hosted on 22 September 2019 at Dubai’s Madinat Jumeirah Resort, which attracted several policymakers, business leaders, industry experts, and professionals.

Abdullah Aldubaikhi, CEO of Bahri, said: “At Bahri, we strive to pursue excellence in our business in line with our commitment to creating value for our customers.

We are immensely proud that the prestigious award at the region’sleading maritime award program comes as an endorsement for our endeavors. I would like to dedicate this achievement to our people whose sincerity and hard work have enabled the company to go from strength to strength.”

The ‘Investment in People’ Award comes as a recognition for Bahri’s efforts aimed at the professional and personal growth and development of its over 3,000 employees across the globe. The company has established itself as one of the most attractive places to work by enabling its employees to realize their full potential through a broad spectrum of programs and initiatives.

NYK conducts Japan’s first Carbon-neutral Voyage September 20 , 2019

TOKYO: NYK has become the first Japanese shipping company to realize a carbon-neutral voyage by offsetting 5,000 tonnes of carbon dioxide (CO2), equivalent to the CO2 emitted by NYK’s environmental flagship car carrier Aries Leader during one voyage between Japan and the Middle East.

Aries Leader is equipped with the latest energy-saving technologies, reducing CO2 emissions per unit by 30% compared with existing large pure car carriers (i.e., comparing emissions on a per car basis). In this initiative, the remaining CO2 emissions not yet eliminated by technology have been offset by carbon credits to allow NYK to realize carbon-neutral transportation that theoretically reduces CO2 emissions to zero.

This initiative demonstrates the ability of NYK to provide carbon-neutral transportation to its Japanese and overseas customers, thus meeting the demand for a more sustainable, carbon-free supply chain. NYK will propose and expand its carbon offsets to customers as an option that benefits the environment and contributes to a zero-carbon-footprint supply chain.

The company will continue its efforts to provide shipping services that meet customer needs, as well as create new green businesses through carbon credit initiatives and realize the company's basic philosophy of “Bringing value to life.”

 

JBS Academy celebrates Teacher's Day with Teachers and Industry Veterans September 20 , 2019

AHMEDABAD: JBS Academy Pvt. Ltd. celebrated Teachers Day at their campus on September 5, wherein esteemed faculty members were honored. The event was also attended by eminent personalities like Sudhir Goyal, MD of Shri Durga Crane Company, CS Jignesh A. Shah and Dr. Bhasker A. Shukla Principal, Vivekanand College of Commerce - Ahmedabad, Mr. Samir Mankad ED GSEC; Mr. Rathod and Mr. Kiyamuddin from Centre for Entrepreneurship Development GOG.

Faculty members and dignitaries discussed future initiatives that the academy can contribute to the society and ways on engaging more professionals to contribute as teachers to meet the rising demand.

Since inception, over 800 certificate and diploma students of JBS Academy are currently working in various capacities in the industry. The institute has conducted over 300 bespoke programs attended by 1800+ industry people, students, academicians and policy makers in over 10 cities other than Ahmedabad.

“We must resolve to take the study in logistics further to meet the rising demand expected in the coming days. Being a training institute, our endeavour must be to constantly try to address the problem at its root and frame a proper structure of the needs and demands of the sector through a carefully assessed curriculum. On Teachers Day, I send my best wishes to all my students and hope they live up to the expectation,” said Mr. Samir J. Shah, Director and Mentor, JBSAPL.

The institute has strived to march steadily towards its goal by promoting excellence in academics, continuous research on industry needs, strong industry relations, domain expert faculty and required affiliations. The academy has partnered with the various organizations formed under Center and State Government including NSDC, LSC, GCVT etc. which have been set-up with a mandate to catalyse the skills landscape in India.

“Under the guidance of Mr. Samir J. Shah, it has been an enriching experience teaching at JBS Academy. Sharing the technical knowhow with the students has reflected in the performance of all our students,” said Mr. S.V. Modi, Sr. Faculty member with Academy.

Container Shipping’s oligopoly status helping to stabilise rates : SeaIntelligence September 20 , 2019

LONDON: Following a period of deep consolidation that resulted in just three main alliances – namely THE Alliance, Ocean Alliance, and 2M – the boxship market has reached an oligopoly status, especially on the major trade lanes, according to Lars Jensen, CEO of SeaIntelligence Consulting.

“We have seen, over the last few years, the emergence of oligopoly and carriers are finally figuring out how consolidation can stabilise the market,” Jensen told delegates at an event recently. “The volatility of freight rates has declined but that does not necessarily mean higher rates – just more stabilised,” he observed.

Jensen added that the market can also expect global demand growth to enter a “new norm” of 2-3%, and container shipping can forget about the multiplier effect linked for each percentage of GDP growth.

Demand growth is expected to be in the range of 1-1.5% this year, following negative growth registered in December 2018, and January-February 2019. Moreover, the demand growth is not evenly distributed, with Europe being a more positive market both for import and export, while North America has been volatile and may experience negative demand growth in the next few years.

 “Europe will be the main driver for demand growth this year. The good thing is that the market is now having record low orderbook and the installation of scrubbers is pulling some capacity out of the market,” Jensen said.

“We are looking at 2% capacity growth in 2019 and probably into 2020 as well,” he said.

In addition, carriers have looked into a more structured and systematic approach to blank sailings, contributing to better managing capacity.

And while the sizes of ships are getting bigger, that process has been accompanied by a decline in the number of services as well as the consolidation effect leading to ‘less’ number of shipping lines.

“If we looked back at three to four years ago, carriers were looking at growth via fleet expansion and widening of market share. This has changed. Today, it is about looking at how to manage capacity and the stabilisation of financing,” he said.

FICCI welcomes measures to boost exports September 17 , 2019

NEW DELHI: Welcoming the package of new measures for boosting exports and the housing sector announced by Finance Minister Ms Nirmala Sitharaman, FICCI President Mr Sandip Somany said, "These new measures will provide much-needed stimulus to boost the Indian economy that is now facing the slowdown".

Mr Somany expressed confidence that the new initiatives of export-related incentives, finance, credit and facilitation will help in achieving a turnaround in our exports which have declined by 6% in August. "The new scheme for Remission of Duties or Taxes on Export Product (RoDTEP) that will be effective from 1 January 2020 will go a long way in addressing the problem of non-compliance of our export promotion scheme. Fully automated electronic refund module for Input Tax Credits (ITC) in GST will speed up the ITC refund and ease the problem of working capital for exporters. Expanding the scope of Export Credit Insurance Scheme, moderation in premium incidence for MSME, and revised Priority Sector Lending (PSL) norms for Export Credit are also encouraging features of the new package," said Mr Soman

Government announces much needed booster for exports sector during such challenging times: FIEO September 17 , 2019

NEW DELHI: Welcoming the much needed booster for the exports sector, FIEO President, Mr Sharad Kumar Saraf said that the announcement made by the Hon'ble Finance Minister Ms Nirmala Sitharaman has come at a time when there are signs of worsening global economic conditions pointing further toward downward revision of global trade growth. Slew of new measures announced for the exports sector in the form of incentives & refund of taxes, export finance, export facilitation, free trade agreements, engineering and handicrafts will not only go a long way in enhancing the growth prospects of the sector in the short-term but will also give it a much needed boost in the medium-term and long-term  and will stimulate the overall economy added Mr Saraf.

 FIEO Chief said that the new scheme of Remission of Duties or Taxes on Export Products (RoDTEP) with revenue burden of up to Rs 50,000 crores for the Government, will completely replace all Merchandise Exports from India Scheme (MEIS) from January 1, 2020 with the expectation that the new scheme will more than adequately incentivize the exporters than the existing schemes put together. The new scheme looks attractive as it will neutralise all duties and levies suffered by the export products. Giving three months lead time till 31st December to the existing MEIS will remove the uncertainty creeping in the minds of the exporters and will greatly help to finalise their export orders, Mr Saraf said. Further fully electronic refund module for quick and automated refund of ITC by September, 2019 will help the exporting community in not only speedy and timely refund of their GST but will also help them in getting their long pending refund of their ITC thereby mitigating their working capital requirements, said Mr Sharad Kumar Saraf.

Mr Saraf stated that besides measures taken to improve credit outflows from banks and transmission of interest rate cuts being effected by banks will go a long way in improving the cost and availability of credit, as the flow of credit to this sector has been under pressure since long. Expanding the scope of Export Credit Insurance Scheme (ESIC) by ECGC will enable reduction in overall cost of export credit including interest rates especially for MSMEs. The scheme will provide much needed support for the exporters for exporting to countries with little or more risks reiterated FIEO President.

Announcement on the revised Priority Sector Lending (PSL) norms for export  credit, will release an additional Rs. 36,000 crore to Rs. 68,000 crore as export credit along with an active monitoring by an inter-ministerial working group in the Department of Commerce, tracked through a dashboard will also help in keeping track of the overall export financing for the sector added FIEO Chief.

Mr Sharad Kumar Saraf also said that leveraging technology to reduce turnaround time at ports and airports through seamless digitization process of export clearances is also a welcome step, which will further reduce transaction cost and time. Holding of annual mega shopping festivals like Dubai Shopping Festival to will not only boost exports but will also help in creating value for Brand India products from labour-intensive sectors like Gems & Jewellery, Handicrafts, Yoga, Tourism and Textiles.

President FIEO said that online "Original Managment System" for exporters will enable them to obtain Certificates of Origin, which is further expected to improve ease of doing business for exporters. Time-bound adoption of mandatory technical standards will not only elevate quality and performance, enhance competitiveness and address issue of sub-standard imports but will also give boost to Indian products overcoming non-tariff barriers. Besides initiative on affordable testing and certification infrastructure will reduce cost of adoption of standards and certification for meeting international standards under different FTAs. Enabling handicrafts to effectively harness e-commerce for exports has come as a special facilitating tool for the artisans to sell their products globally.

And last but not the least, FIEO Chief is of the view that announcement on the FTA utilization mission headed by senior officials from Department of Commerce will be set up and will work with FIEO and other export houses to utilize concessional tariff in each FTA. The initiative which was one of the demand of the Federation will be able to enhance awareness of preferential duty benefits MSMEs and disseminate and facilitate compliance requirements under FTAs for both importers and exporters.

MOL starts test of Vessel Image Recognition System using AI Technology

TOKYO: Mitsui O.S.K. Lines, Ltd. announced the joint development, along with SenseTime Japan Ltd., of a new vessel image recognition and recording system, and the system’s installation for demonstration testing aboard the cruise ship “Nippon Maru” operated by Mitsui O.S.K. Passenger Line, Ltd. The system’s graphic recognition engine was developed by incorporating MOL’s knowledge and applying artificial intelligence (AI) deep learning technology, allowing it to recognize surrounding vessels. The system recognizes and automatically records vessels with high accuracy using a terminal equipped with a graphic processing unit (GPU) and ultrahigh-resolution cameras.

The image recognition technology, which can be used even at night or during other periods of poor visibility, can detect small vessels (International treaty and domestic law require vessels to be equipped with AIS, but the regulations do not apply to ocean-going freighters of less than 300 gross tonnes and coastal vessels of less than 500 gross tonnes) that are not recognizable by vessel automatic identification systems (AIS). MOL views advanced image recognition as an underlying technology needed for automated watch-keeping, as the company works to realize the autonomous smart ships of the future.

Since this system automatically records image data, MOL plans to carefully review the accumulated data and use it to further enhance the image recognition engine’s analysis accuracy.

MOL positions the navigation support system featuring image recognition, such as the AR voyage information display system , which is already in practical use, as part of its challenge project, called the “FOCUS EYE” series. The company continues to develop and modify the system, which supports crewmembers’ watch-keeping while underway, to enhance safe operation and speed up the automation of watch-keeping, with the long-term goal of realizing autonomous smart ships, said a MOL release.

DP World’s International Container Transhipment Terminal, Cochin achieves new Productivity Record September 17 , 2019

COCHIN: Global trade enabler DP World operated International Container Transshipment Terminal (ICTT) has recorded yet another successful month of exemplary growth registering a record high. The Country’s first international transshipment gateway registered a throughput of 57590 TEUs for the month of August breaking the previous best of 56598 TEUs in March 2019. The terminal volumes on a Year till date (YTD) basis has grown by 14%.

ICTT which is India’s first full-fledged trans-shipment harbour’s growth was enabled through new services like the China-India Service (CI2) service started in April 2019 by Wanhai Lines and CONCOR’s coastal service that started in January this year. Among the new initiatives in pipeline isthe new direct Europe service by Hapag Lloyd / ONE / Cosco / OOCL / YML expected to start in Nov 2019. Excellent coastal connectivity to ports in South, East & West India makes Cochin Port ideal for cargo trans-shipment and volumes grew by 55%YoY August.

The ICTT Cochin was also ranked 1st in the Annual Port Liner Shipping Connectivity Index released by

United Nations Conference on Trade and Development (UNCTAD) among South Indian ports.

Mr. Praveen Thomas Joseph, CEO, DP World Cochin, said, “2019 so far has been an encouraging year for us.

The minimal deviation from the Asia-Middle East and Asia-Europe shipping lanes makes Cochin a trans-shipment choice for International ship liners. Apart from India’s Export-Import business, our port is capable of handling traffic from other subcontinent markets.”

“Against this backdrop, we have achieved good volume growth, thanks to the support from our customers and partners globally. I would like to express my deepest appreciation to our people and partners for their steadfast dedication and spirited contributions throughout the year. They handled the increased complexity and operational demands effectively, enabling DP World to be a valued partner for our customers.”

DP World Cochin continues to thrive on initiatives providing smart trade solutions and adding value to the supply chain by engaging with their customers and stakeholders. This includes, successful implementation of Bharat Trade for paperless transactions, RFID based automated gates reducing man vehicle interface, improved safety, reduction in transaction time and 24 x 7 customs to facilitate direct port entry. This has resulted in TTT (Truck Turn Around) time of 32 minutes which is one of the best in India. ICTT continues to reign on its leadership position in container trade, offering direct services from Australia, Fareast, South East Asia and Middle East to Cochin and from Cochin to Fareast, Middle East

Evergreen to order Ten 23,000 TEUs Containerships September 17 , 2019

TAIWAN: Evergreen has confirmed its plans to build a total of ten 23,000 TEU Containerships.
According to the company’s stock exchange filing, the new vessels would be built at three shipyards.
Namely, six units would be built by South Korea’s Samsung Heavy Industries, while two each would be constructed at China’s Jiangnan Shipyard and Hudong Zhonghua Shipbuilding.
Evergreen said that the value of the entire order stands between USD 1.4 billion and USD 1.6 billion. The company opted for the move as part of its fleet optimisation plans.
With this decision, Evergreen has amended its earlier announced plans to build and charter up to 11 containership giants. Under the deals from August 2019, worth around USD 1.76 billion, the company was to order five or six vessels to be built, while up to five units were to be chartered in.

PSA’s CITPL increases vessel productivity record for South and East India September 17 , 2019

CHENNAI: Chennai International Terminals Pvt Ltd (CITPL) has set a new vessel productivity record of 171 moves per hour for South and East India.

The terminal handled 3,023 moves in just under 19 hours on 12 September 2019, for the 4,252 TEU (Twenty-foot Equivalent Unit) vessel “Wan Hai 507”. CITPL’s achievement surpassed the earlier South and East India record of 168 moves per hour, which was also set by CITPL in August 2016.

Capt. T. MadhanMohan, General Manager of CITPL, said, “CITPL has again raised the bar for terminal productivity in South and East India. Achieving a vessel rate of 171 moves per hour translates directly into cost savings for shipping lines and port users.

We are immensely grateful to Wan Hai Lines for their support and close cooperation, as well as to our staff for their commitment and teamwork.

“We are also working closely alongside Chennai Port Trust to enhance the competitiveness of the Port. Recent reductions in vessel related charges, increases in free time for direct port deliveries (DPD) and direct port exports (DPE), streamlining of road access, cuts in short haul rail charges by Indian Railways and the development of an empty container depot inside the Port area are just some of the initiatives being taken by stakeholders towards this objective.”

Mr P Raveendran, Chairman, Chennai Port Trust, said, “We compliment the CITPL team on setting this new operational record, and in surpassing their previous milestone. CITPL’s progress is an integral part of Chennai Port’s offerings as part of our long-term commitment to the trade for sustainable operations.”

Also commenting on the achievement from Wan Hai Lines (India), “We salute PSA Chennai’s achievement! The levels of efficiency and reliability demonstrated week in week out by the terminal allow us, as a long term customer, to optimize our operational planning  and so realise the benefits to our network and for our customers. We look forward to the next milestone.”

India to host Dubai like mega shopping fests to boost exports September 17 , 2019

NEW DELHI: As part of the steps taken to boost exports, India will organise annual mega shopping festivals, similar to the ones held in Dubai, to facilitate exchange between global producers and consumers, Finance Minister Nirmala Sitharaman said recently. 

She said that these "mega shopping festivals" will be held at four destinations across the Country and their themes will vary.

Coastal Shipping grown by 14.3% in current fiscal year

AHMEDABAD: Dilip Kumar Gupta, Managing Director of Sagarmala Development Company Ltd of the Government of India, said that Coastal Shipping in 2018-19 has increased by 14.3% year-on-year basis.
He said that keeping in mind the projected traffic of 2,500 metric tonnes per annum (MTPA), a roadmap has been created to increase Indian Port capacity to more than 3,300MTPA. In 2018-19, India had handled 1,275MTPA.
Gupta was talking at IIT-Gandhinagar as part of Dr A N Khosla Lecture Series organized by IIT Roorkee Alumni Association, Ahmedabad.
Gupta in his talk said that port engineering has a huge potential for job creation with Sagarmala project of Rs 8 lakh crore. “It will not only reduce logistics cost for both Export-Import operations and domestic trade but will also create jobs and bridge the skills gap in ports and the maritime sector,” he said.
“Modal shift to waterways will reduce the cost of transportation,” Gupta said.

Two export schemes may shift out of Commerce Department to ease process

NEW DELHI: The Government is contemplating a revamp of the Department of Commerce and certain incentive schemes that fall under it, as it aims at administrative easing to boost exports and domestic manufacturing.
The Commerce and Industry Ministry and Finance Ministry are discussing the idea of bringing the new exports incentives scheme — Rebate of State and Central Taxes and Levies (RoSCTL) — as well as the existing Advance Authorisation Scheme, within the remit of the drawback committee under the Revenue Department, said people aware of the matter.
At present, the Advance Authorisation Scheme is with the Directorate General of Foreign Trade (DGFT), an arm of the Commerce and Industry Ministry. RoSCTL is a replacement of the DGFT’s Merchandise Exports from India Scheme (MEIS), which was challenged by the US last year for violating global trade rules. It will allow reimbursement of duties on export inputs and indirect taxes through freely transferable scrips.
“There is a feeling that making the Revenue Department solely responsible for these schemes will help in Ease of Doing Business and reduce transaction time for exporters,” said an official, who did not wish to be identified.
The restructuring plan comes in the wake of 0.37% decline in outward shipments in April-July to $107.41 billion, while imports contracted 3.63% to $166.8 billion. Separately, the Government has also discussed putting the External Affairs Ministry in charge of India’s trade negotiations, which at present is the core function of the Commerce Department.

CMA CGM Group delivers solid performance in Q2 2019 despite uncertain Global environment

MARSEILLE: The Board of Directors of the CMA CGM Group, a leading worldwide transport and logistics group, met recently under the Chairmanship of Mr Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the second quarter of 2019.
Shipping activity
The Group’s shipping business remained strong in the second quarter, with significant improvement in volumes carried and in profitability, enabling the shipping activity to post a positive net result.
Growth in carried volumes and revenue
In the second quarter, volumes transported by CMA CGM increased by 6.3 per cent compared to the second quarter of 2018 and by 6.8 per cent compared to the first quarter of 2019.
This positive trend, which is above market, is driven by the strong growth of intra-regional lines (short sea) and the United States lines, which remain particularly dynamic, said a release.
The Group thus relies on the network of intra-regional companies’ expertise that are leaders in their sectors:
* CNC, a specialist in intra-Asia
* Mercosul, a leader in cabotage and door-to-door services in Brazil
* ANL, an expert for Australia and Oceania
* Containerships, specialist in intra-Europe
Second quarter revenue was up 4.6 per cent compared to the second quarter of 2018 and reached $ 6 billion for the Group’s shipping activities.
Operating performance: Positive outcomes from the cost reduction plan
The implementation of the cost reduction plan facilitated decrease in operational expenses by $ 51 per TEU in the second quarter compared to the first quarter of 2019.
This mainly comes from initiatives to rationalise certain trades, the efforts to always improve operational efficiency, lower logistics costs, and the reduction of the Group’s ships consumption.
Adjusted EBITDA came to $ 343.6 million and the EBIT margin amounted to 5.8 per cent.
The net result of the shipping operations reached $ 2.3 million.
Logistics activity: Implementation of CEVA Logistics’ turnaround plan well underway
Following the closing of CMA CGM’s friendly public tender offer for CEVA Logistics, a new corporate governance structure was put in place with the election of Mr Rodolphe Saadé as Chairman of the Board of Directors on April 29, 2019 and the appointment of Mr Nicolas Sartini as Chief Executive Officer effective June 1.
By consolidating the company’s management teams and support functions, the new operations centre in Marseille, which opened on June 25,
is strengthening the leadership and management of the Group’s logistics activities.
CEVA Logistics’ integration is proceeding according to the strategic plan.
CMA CGM Group’s activity
Growth in revenue: Second-quarter revenue stood at $7.7 billion, a year-on-year increase of 35 per cent.The activity of the Group’s maritime division has particularly benefited from the dynamisms of its intra-regional lines and has posted a growth in volumes above global market growth.
Solid operating performance: In the second quarter of 2019, the CMA CGM Group further enhanced its operating performance, backed by the optimised use of its modern fleet of 528 vessels
(as on June 30) and the responsiveness of its market-aligned organisation.
Adjusted EBITDA came to
$ 954 million for the period, of which
$ 464 million was from the impact of applying IFRS 16 and $ 147 million from the consolidation of CEVA Logistics. Excluding these two factors, adjusted EBITDA was up by a strong 60.1 per cent year-on-year, at $ 343.6 million versus
$ 214.6 million in second quarter 2018. This performance reflected both the sustained growth in revenue and the impact of the performance improvement and cost control plan under way since the beginning of the year.
Adjusted EBITDA margin
improved significantly year-on-year to 12.4 per cent, one of the best in the industry and an improvement from Q2 2018 and the first quarter of 2019.
The implementation of IFRS 16 and the recent acquisition of CEVA Logistics lead to a net result of $ -109 million for the second quarter.
Outlook
In a context of geopolitical uncertainty, the CMA CGM Group continues to focus its efforts on operational efficiency, cost control and the rationalisation of its industrial activities and brands. In addition, the positive momentum generated by the acquisition of CEVA Logistics will gradually enable the Group to benefit from a less volatile and more diversified environment than the maritime sector.
Thanks to all the measures put in place, the Group is confident for the second half of 2019, which should be better than the first one. The CMA CGM Group will continue to improve its financial performance and adapt its commercial offering in order to provide its customers end-to-end offers, the release said.

H K Joshi to take Additional Charge of SCI - C&MD : Shipping Ministry

MUMBAI/NEW DELHI: The Ministry of Shipping has informed that consequent upon the completion of tenure of Capt. Anoop Kumar Sharma as Chairman & Managing Director, SCI on 11.09.2019.
Smt. H.K. Joshi, Director (Finance) of SCI will hold an additional charge of the post of Chairman & Managing Director (C&MD) of SCI for a further period of three months w.e.f. 12.09.2019, or until further orders, whichever is the earlier, said a company filing with Bombay Stock Exchange.
MUMBAI/NEW DELHI: The Ministry of Shipping has informed that consequent upon the completion of tenure of Capt. Anoop Kumar Sharma as Chairman & Managing Director, SCI on 11.09.2019.
Smt. H.K. Joshi, Director (Finance) of SCI will hold an additional charge of the post of Chairman & Managing Director (C&MD) of SCI for a further period of three months w.e.f. 12.09.2019, or until further orders, whichever is the earlier, said a company filing with Bombay Stock Exchange.

OOCL once again wins Singapore Environmental Achievement Award

SINGAPORE/HONG KONG: OOCL is once again a proud winner of the 2019 Singapore Environmental Achievement Award (Regional) this year, an award that recognizes persistence and dedication to achieving environmental sustainability in all aspects of the business operation.  

Over the years, OOCL has been an honored award recipient at the Singapore Environmental Achievement Award (SEAA) ceremony organized by the Singapore Environment Council (SEC).  This would be OOCL’s third time winning this award in the same category when it was bestowed to OOCL by the event’s Guest of Honor, Mr. Masagos Zulkifli, Minister for the Environment and Water Resources of Singapore, on August 27, 2019.

 

Commenting on the award win, Mr. Richard Hew, Managing Director of OOCL (Singapore) Pte. Ltd. said: “It is a real honor to win this remarkable award again. In celebrating our exceptional accomplishments and commitment to environmental excellence, this award is certainly a huge encouragement for us to continue pushing forward with our sustainability agenda into the next level and to aim higher in our green objectives.  This is certainly another important milestone reflecting OOCL’s years of culminative efforts in building an outstanding sustainability profile in the industry.”

 

In addressing emerging global environmental challenges over the years, OOCL has been taking a proactive role in implementing many environmental initiatives and projects including green vessel investment, climate scenario analysis, and greenhouse gas management.  We also applied innovative and advanced technology in our business activities, such as shipment simulation and prediction for fuel saving as well as pilot programs exploring the use of blockchain technology to help simplify the shipment documentation processes for operational efficiency, said an OOCL release.

GAC wins Best Ship Agency Award for second consecutive year

DUBAI: GAC has been named the best ship agent in the ShipTek Maritime Awards for the second year running. The awards, held in conjunction with ShipTek Maritime Conference, recognise companies that have made significant contributions to the maritime industry.

 

The award was accepted by Mikko Wieru, GAC’s Group Sales Director – East, who says: “This recognises the hard work of our people and the trust that we have meticulously built and nurtured with all our stakeholders throughout the years. We will continue to uphold that trust and serve our customers through constant upgrading and innovation.

 

“We live in a world of change. As the world’s leading provider of ship agency services, we have already embarked on a journey to keep pace with the evolution that the maritime industry is gradually but unquestionably experiencing right now.”

 

GAC is a global provider of integrated shipping, logistics and marine services. It entered the Asian market with its first office in Hong Kong in 1974. Today, it has some 100 offices in 14 countries in this region, including Singapore, Malaysia, Thailand, Indonesia, Japan, China, the Philippines and India.

Mundra Custom Broker Association elects New Office Bearers

MUNDRA: The Mundra Custom Broker Association held its Annual General Meeting (AGM) recently at Fern Residency, Mundra to elect the New Office Bearers. 

 

Mr. Dinesh Gupta was elected as the President and Mr. Sanjay Dave as Vice President. Mr. Manoj Kotak and Mr. Hemchand Yadav were elected as Secretary and Joint Secretary respectively while Mr. Pramod Soneta was elected as Treasurer, said a release from Mundra Custom Broker Association.

Govt may soon announce measures to boost exports

NEW DELHI: The Government is expected to soon announce measures for certain sectors, including gems and jewellery, 

to boost the country's subdued exports, an official said.

 

Finance and Commerce Ministries have held several round of talks on these measures, the official said.

 

As part of a proposal that is under consideration, the Government may extend the deadline for removal of tax benefits to units in the special economic zones (SEZs).

 

In the Union Budget 2016-17, it was announced that income tax benefits to new SEZ units would be available to only those entities that commence activity before March 31, 2020.

 

For the labour-intensive gems and jewellery sector, the Government is looking at cutting import duty on coloured gem stones and polished diamonds from the current 7.5 per cent.

 

There is also a consideration to increase the insurance coverage by the Export Credit Guarantee Corporation of India for export credit from the current 60 per cent to 90 per cent.

 

This would enable banks to provide more export credit at competitive rates.

 

To promote domestic manufacturing and cut imports, there is a plan for strict implementation of rules of origin criteria to check diversion of imports via free-trade agreement Countries.

 

A standard operating procedure could be implemented for faster clearance of import and export consignments. Exporters are demanding several other measures such as enhancing benefits of the Merchandise Exports from India Scheme (MEIS) for sectors like non-basmati rice and textiles, besides interest subvention for large pharmaceutical companies.

"Because exports are passing through tough times amidst global contraction in demand due to economic uncertainties, support measures for exporters would help in imparting further competitiveness to it," Federation of Indian Export Organisations (FIEO) Director-General Ajay Sahai said. 

 

S C Ralhan, President of the Ludhiana-based Hand Tools Association, said refund of indirect taxes such as on oil and power, and state levies such as mandi tax would help in dealing with liquidity issue.

 

India's exports have recorded 2.25 per cent growth in July. Cumulatively during April-July this fiscal, the exports dipped by 0.37 per cent to USD 107.41 billion.

 

Single Authority Mechanism for Processing GST refunds to Exporters soon

NEW DELHI: It is welcome news that the Goods and Services Tax (GST) Council — the all-powerful federal indirect tax body — at its meeting on September 20 is expected to approve the procedure to permit a single authority for sanctioning and processing GST refunds for exporters in a quick and an efficient manner.

 

It is worth noting that as per the proposed single authority mechanism, once a refund claim is filed, whether Centre or State, the Tax Officer will check, review and sanction full tax refund (both Central GST and State GST portion), thus eliminating complications faced by the taxpayers.

 

The move may give a much-needed boost to the stressed exports sector, which contracted 0.37 per cent to USD 107.41 billion in April-July 2019-20 as the sector is facing challenges because of sluggish global demand and liquidity crunch. The GST Council, headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all States, is slated to meet in Goa and discuss the single-authority mechanism.

 

At present, the system entails a twin refund sanctioning authority, central and state tax officers. This could well change when the proposed new mechanism involving a single authority comes in place. Currently, if a taxpayer files for a refund with a Central Tax Officer, then he would clear 50 per cent of the claims, while the remaining is approved by the State Tax Officers after further scrutiny.

 

Many industry watchers say the current mechanism of two authorities settling the same refund claims makes the process complex and cause too much inconvenience for the taxpayers.

 

Mr. Bipin Sapra, Partner, EY, said, “A single authority for clearing the refunds would ease the burden of exporters to a large extent … It would also streamline and reduce litigation and bring more uniformity in the position taken.”

CMA CGM makes presence at Asia Fruit Logistica (4-6 Sept.) to showcase the Group’s expertise in transporting fresh fruits

MARSEILLES : From September 4th to 6th, 2019, the CMA CGM Group, a world leader in shipping and logistics, will attend in Hong Kong ASIA FRUIT LOGISTICA, the region’s top trade show dedicated to the fruit industry and its logistics. 

CMA CGM will present its expertise in handling and shipping fresh products at this must-attend regional event, which attracts every year more than 800 exhibitors and 13,500 visitors from around the World. 

 

CMA CGM - Reefer experts

One of the World’s largest carrier of refrigerated containers (“Reefers”), CMA CGM has a young and dedicated fleet of 385,000 TEUs (Twenty-foot Equivalent Units), in which it continually invests. A global Reefer carrier, CMA CGM has an extensive network coverage, which is complemented by strong local expertise, thereby allowing the Group to offer efficient global, as well as intra regional services.

The Group’s experts offer clients the latest technologies in Reefer transportation, such as CLIMACTIVE, the most advanced controlled atmosphere solution. By quickly reducing the level of oxygen inside the container it is particularly well suited to organic produce and fruits with long transit times.

 

CLIMACTIVE allows the Group’s customers to increase the attractiveness of their products by maintaining freshness to destination, by regulating the maturation process, by extending their products’ shelf life and by preserving their quality. It also makes it possible to export to more distant locations and thereby to target new markets. Finally, CLIMACTIVE does not need any chemical treatment and thus allows customers to keep their organic label.

 

CMA CGM has also developed REEFLEX to optimize the transport of liquids via refrigerated containers thanks to an innovative design and technology which guarantee optimal hygiene and food safety conditions. REEFLEX thus allows for the transport of liquid commodities (fruit juice, milk, syrup, or any type of food oil) in a single tank with a capacity of 12,000 to 26,000 liters.

 

CMA CGM, a transport and logistics leader in Asia Pacific 

CMA CGM is a transport and logistics market leader in Asia-Pacific, with a strong presence of 118 agencies in 19 countries, employing more than 4,000 people and operating 4 brands in the region: CMA CGM, APL and ANL for the long-haul, and CNC for Intra-Asia.

Since 2016, the Group has set its Regional hub in Singapore, where it offers more than 100 services per week thanks to its best-in-class network of Ocean Alliance, North-South and Short-Sea lines, and from where it operates its Fleet Navigation Centre for the APAC region.

Bhushan Kumar appointed as Joint Secretary in Shipping Ministry September 04 , 2019

NEW DELHI: Bhushan Kumar has been appointed as Joint Secretary in Ministry of Shipping through lateral entry for the first time in India. Bhushan was CEO and MD at Diamond Shipping, which is a part of Dubai-based Sharaf Group from January 2008 to July 2009.

He was the Vice President/GM-legal at Maersk India Pvt Ltd in Mumbai from 2004 till 2007. Prior to this, Bhushan Kumar worked as General Manager at Caleb Brett India Pvt Ltd, Jamnagar and as Nautical Officer at TS Chanakya.

Bhushan Kumar has 20 Years of experience in shipping and related projects. Recently he was working as General Manager in GSPC LNG, a Gujarat State Petroleum Corporation. He was Head of Shipping, Business Development and Contract departments. He has vast experience in shipping and related projects. He has played key role in several projects at different ports in India.

Ocean Network Express further expands Refrigerated Container Fleet

SINGAPORE: Ocean Network Express (ONE) is expanding its current refrigerated container (reefer) fleet of 240,000 TEU by adding another 6000 (40” HC) units, including 500 units equipped with advanced Controlled Atmosphere (CA) technology which slows down the respiration and ripening process to maximize the shelf life of fruits and vegetables. These reefer containers will be made available for accepting new bookings towards end of the year to meet reefer peak season global demand around the world.

 

ONE has one of the largest, state of the art reefer fleet in the world, equipped with the most advanced technologies designed to handle perishable cargo demand. With this new investment of 6000 reefer units, coming on the heels of last year’s industry leading procurement of 14,000 units, ONE demonstrates its strong commitment to meet growing demand for containerized reefer trade, which remains strongly augmented by expansion of middle class in Asia constantly demanding healthy food choices. In 2019 so far, the growth in global refrigerated container trade has outperformed the growth in global container trade and ONE expects the growth momentum to be maintained for remaining months of the year.

 

ONE is currently working towards the application of latest IoT technology into its fleet of reefer containers which allows real time visibility of critical information such as temperature, humidity inside the container, thereby enhancing value chain proposition of perishable trade.

 

Jun Shibata, Senior Vice President of Strategic Yield Management, commented “ONE is committed to provide our customers with the best in class capabilities to ship your perishables to meet growing demands and opportunities to broaden to new markets. We continuously explore new technologies in refrigerated container segment to improve the service value proposition for our customers dealing with perishable cargos.”

 

ONE’s Global reefer strategy

The Global Reefer Business Planning team (GRBP), based at ONE’s HQ in Singapore, develops ONE’s global reefer marketing and business strategy through close monitoring of market demand and closely collaborating with the regional reefer steering desks located in different parts of the world.

ONE’s Reefer technical team is available on board and on shore to provide round the clock assistance when required. We continue to provide higher quality and more competitive services for our valued customers.

First Quarter performance boost for SCI

MUMBAI: Over the first quarter of the 2019-20 financial year, ending June 30th, the Shipping Corporation of India (SCI) achieved significantly improved financial results compared with the equivalent period in the previous year. 

The company’s consolidated income was up to RS 968.23 crores (US$ 134.96 million), from RS 913.09 crores (US$127.27 million) in the first quarter of 2018-19. Consolidated losses narrowed from RS 190.39 crores (US$ 26.5 million) to RS 28.90 crores (US$ 4.02 million) in this period. 

Chairman and Managing Director, Capt. Anoop Kumar Sharma, says, “This quarter was considerably better than the first three months of the last financial year because we were able to secure improved charter hires for our ships, and to have more operating days. Greater operational efficiencies have led to a much improved EBITDA margin as well.”

He continues, “Overall our performance over these three months was highly encouraging and was led by good results in the tanker sector, while dry bulk and offshore also did well. The one disappointment was the liner shipping business where the outcome was not so good.”

Looking forward to the rest of the 2019-20 financial year and beyond, Sharma is upbeat. “We expect these positive trends will continue, especially with regard to the tanker and dry bulk sectors which account for around 60% of our revenues,” he says. “I believe that 2020-2021 will be a turnaround year for shipping generally, as reduced newbuilding levels and more scrapping reduces overcapacity and improves the supply side. SCI stands to benefit from this.”

Current challenges for SCI include the impending IMO 2020 sulphur cap. 

In this context SCI has recently taken an important strategic decision, opting not after all to install exhaust gas scrubbers on its ships, but instead to utilise lower sulphur fuels. The general slowing of global GDP, the effects of the US-China trade war and US sanctions against Iran are all also impacting on SCI activities, Sharma points out.

SCI has a diversified business and is active in most shipping sectors. For the next few years the focus in terms of business development is likely to be on the Indian coastal and inland waterway markets. Over the past 18 months SCI has introduced two new coastal liner services: The Port Blair Service connecting Chennai-Kolkata-Port Blair and the East Coast of India Express Service which operates between Kattupalli, Krishnapatnam, Haldia, Paradip and Visakhapatnam. SCI also now has a dedicated subsidiary, Inland & Coastal Shipping Limited, to capitalise on emerging opportunities in the inland
waterway business. “The plan is to offer multipurpose inland waterway services, including ro-ro, in line with Government strategy,” adds Sharma.

Sharma reflects on a number of achievements during his time in charge at SCI. He says, “We now have a distinct strategy for expansion with processes in place to acquire second hand tonnage, and not to rely only on newbuilding orders. We can also now take part in auctions, bidding for the assets we require as they become available.”

“I hope to continue to be involved in shipping, as with my experience of leading both state owned and private companies, I have something unique to offer this industry.”

Mansukh Mandaviya launches 1st Phase of Rail Connectivity from VOC Port Marshalling Yard to Hare Island

TUTICORIN : V.O.Chidambaranar Port has its own railway system with yard facilities for loading, unloading, reception and despatch activities. It is also connected to the main line at Milavittan on Tuticorin – Madurai section of Southern Railway. The existing siding from Milavittan to wharf including Marshalling yard is being maintained by Southern Railway. 

 

There are a number of proposals for construction of new Thermal Power Plants and other industries in the vicinity of VOC Port Trust.

Based on various studies, it is forecast that the traffic of the Port will increase, especially in dry bulk cargo, in a big way. It is expected that by the year 2025, an additional traffic to a tune of  20 MTPA will be adding to the present level of traffic.

 

NEED OF THE PROJECT

The existing infrastructure facilities for handing Dry Bulk Cargo and space availability is not sufficient to handle the anticipated additional traffic. Hence it has become necessary to develop the Hare Island for transport of dry bulk cargo by providing necessary Rail connectivity facilities and mechanized loading arrangements for quick evacuation of cargo and meeting the future requirements of port.

Mansukh Mandaviya, Union Minister of State for Shipping (Independent Charge) flagged off the inaugural train on 23 August 2019 in the presence of VOC Port officials.

 

The work was executed through Indian Port Rail & Ropeway Corporation Limited,  a Government of India Enterprise under Ministry of Shipping.  The phase –I of Project has been completed. The facility created will accommodate loading of two BOXN Rakes simultaneously and has a capacity to load 10 to 12 BOXN Rakes of coal per day.

 

Commerce Minister meets Bankers, urges to ease export credit flow

NEW DELHI : As export credit continues to contract, Commerce and Industry Minister Piyush Goyal held a meeting with senior public-sector bankers to push for easier and greater flow of loans at cheaper rates. 

 

This comes amid expectations that the Government would soon announce a slew of steps to boost faltering export growth.

Both the Government and the Reserve Bank of India (RBI) are already in discussion to ease priority-sector lending norms for exports. Though the Central Bank is learnt to be reluctant to allocate a part of its foreign exchange reserves for export credit — as is being demanded by some — to boost flow of loans, it is amenable to changes in credit norms.

 

Currently, exporters with a turnover of up to Rs 100 crore each are eligible for credit under the priority-sector norms. Sources had earlier said that RBI was considering a proposal to either scrap or substantially double the limit to benefit more exporters. Similarly, 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.

According to the latest RBI data, banks’ export credit shrank as much as 36.1% year-on-year as of June 21, even on a low base (it had contracted 42.7% a year earlier). This is despite the fact that non-food bank credit grew 11.1%  y-o-y as of June 21 and overall priority-sector loans rose 10.2%.

 

Contraction in such credit flows has forced many MSME-exporters to shut shop at a time when a global trade war has already threatened to drag down both economic and export growth, industry has told the Government. 

 

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.

Earlier this month, Finance Minister Nirmala Sitharaman, too, held a crucial meeting with both private and public-sector banks on easing the flow of credit to various critical sectors of the economy. To bolster State-run banks’ ability to boost lending, the Government has already said it will provide the budgeted Rs 70,000-crore capital to them “upfront” in FY20. This infusion is expected shortly.

Also, 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. Goyal has already held a series of meetings with exporters to address their concerns.

COSCO Shipping Ports’ Container volumes grows 5.4 in first half (YoY)

BEIJING: Despite the ongoing trade war between China and the US, Hong Kong-based port operator COSCO Shipping Ports ended the first six months of this year with a total throughput rise of 5.4 percent year on year (yoy).

The total container throughput increased to 59.8 million TEUs in H1 2019 from 56.7 million TEUs recorded in H1 2018.

As explained, the growth was backed by the increased calls from the shipping alliances at the group’s container terminals and the contributions from newly acquired terminals.

In particular, the total throughput from terminal companies in which the group has controlling stake increased by 14.6 percent to 12.4 million TEUs, accounting for 20.8 percent of the group’s total, and the total throughput from non-controlling terminals rose by 3.2 percent to 47.3 million TEUs, accounting for 79.2 percent of the group’s total.

 

Moreover, COSCO Shipping Ports saw a 4.5 percent increase in its revenue. The group reported a revenue of USD 517.9 million in H1 2019, against USD 495.5 million posted in the corresponding period a year earlier.What is more, total comprehensive income for the period surged to USD 162.5 million in H1 2019 from USD 94.9 million seen in H1 2018.

 

Future Prospects

Looking ahead, despite the fact that challenges do remain in the second half of 2019 with various uncertainties, global economic growth is supported to an extent by the market expectation that the low-interest rate policy will be sustained, according to the group.

COSCO Shipping Ports said it would continue to leverage on the synergies with the Ocean Alliance and its parent company, seize opportunities to cooperate with major shipping companies and ports companies to keep boosting throughput.

Port of Amsterdam Transhipment increases in the first half-year by more than 12%

MSTERDAM: Transhipment in the North Sea Canal Area of the seaports of Amsterdam, IJmuiden, Beverwijk and Zaanstad rose in the first half of 2019 to 54.1 million tonnes, an increase of 7%. This was the result of an increase in transhipment in the first six months of this year in the port of Amsterdam by 12.3% to 45.4 million tonnes – another record.

In IJmuiden, transhipment fell by 12.3% to 8.5 million tonnes, Beverwijk recorded a 23% increase to 349,000 tonnes and in Zaanstad transhipment fell by 13.2% to 72,000 tonnes.

 

Records

The increase in Amsterdam in the first half of the year was caused by both liquid and dry bulk and containers. Liquid bulk transhipment rose by 10.6% to 25.9 million tonnes. The 13.8% increase in dry bulk was caused by an increase in the transhipment of coal (23%) and grains (21%) to 17.8 million tonnes. The increase in coal transhipment can be attributed to exports to non-traditional markets. This is not expected to be structural. The increase should also be seen in the context of the sharp fall in recent years. Transhipment in the number of containers also increased by 35%, partly due to Samskip's short sea liner service that the port of Amsterdam focuses on.

 

Decreases

 

These records were also offset by decreases, including in breakbulk (down 20%). There was also a fall in the number of seagoing cruise ships visiting Amsterdam in the first half of the year. In 2019 this was 51, compared to last year’s 74. The introduction of the tourist tax for transit calls on 1 January 2019 led to a number of vessel owners moving to IJmuiden or Rotterdam. The number of river cruise ships that put into Amsterdam in the first half of the year was 1,189, compared to 1,272 a year earlier. This decrease was also caused by the tourist tax. The difference of 83 relates to transit calls. These are cruise ships which, like sea cruises,  are subject to tourist tax.

 

Remainder of 2019

Koen Overtoom, CEO of Port of Amsterdam: ‘After record transhipments in 2018, 2019 has also got off to a very good start. We expect the situation to stabilise in the second half of the year. The increase in coal transhipment has to do with favourable coal pricing conditions. The seasonal build-up of coal stocks later in the year is usually reflected in the transhipment figures. Last year also saw a significant decline in coal transhipment for the German hinterland due to the low water level. Growth in liquid bulk is expected to continue under the current favourable market conditions. We also expect to see further growth in general cargo.’

FIEO feels 15% growth in exports possible in this fiscal

KOLKATA: India needs to move fast when it comes to decision-making. Moreover, issues like refund of embedded taxes and legal complexities on land purchase need to be resolved in order to boost exporters’ confidence. According to Sharad Kumar Saraf, President, Federation of Indian Export Organisations (FIEO), despite trade headwinds there is scope for a 15 per cent growth in exports this fiscal.

But, such a growth is possible only when the Centre can ease regulations and increased capacities can be built for increased exports to US, China and the UK.

 

 With a trade war between the US and China, Indian exporters have been receiving a number of business queries. These are expected to materialise over a period of time. Similarly, Brexit will offer greater opportunities for Indian exporters. The Union Commerce Ministry recently identified over 200 products where India’s exports could be increased to the US, replacing Chinese goods, and 150-odd items where exports to China could rise.

 

 Be it the trade-war between US and China, or Brexit, there is opportunities that Indian exporters should take. 

A 15 per cent growth in exports this fiscal is possible. But for that the Centre must step in by easing regulations and other confidence boosting measures, he said.

 According to Saraf, the Centre has to come up with schemes that will help in allocation of land for setting up units. Regulations and legal issues relating to allocation or purchase of land should be taken care of, he said.