India Shipping Industry

Shipping Industry Updates

In this issue:
Effects of Recession: Overseas shipping & logistics firms dropping anchor in Indian waters Chennai Port records a fall in cargo throughput Alang set to break down its 5,000th ship With prices sinking by 40 pc second-hand ships become hot buys

Issue No 6 June 2009

Effects of Recession:

Overseas shipping & logistics firms dropping anchor in Indian waters Hit by the global economic crisis, oveRs.eas shipping and logistics companies are looking at India for business opportunities. During the last two months, at least three global shipping companies have dropped anchor to tap the market in the country. Indeed, even several who were here earlier are now planning to expand their presence. Doehle Danautic Logistics (DDL), part of the Hamburg-based Peter Doehle Group, started its Indian operations in March. More

Growth, Expansion and Developments: Bharati Shipyard to buy more shares of Great Offshore Passenger ships rooting for direct Dhaka-Kolkata shipping route

Chennai Port records a fall in cargo throughput

Petroleum coke unloading record set at Vizag Port Gangavaram port proves mettle in coal discharge GE Shipping Handymax ship delivers

The ongoing slump in the manufacturing sector has pulled down the throughput of project cargo at Chennai Port. Weak demand in the oveRs.eas market since the past few months has resulted in the countrys manufacturing sector nearly stalling its production to prevent inventory pile up. This slowdown in commodity trading has consequently jolted the cargo handling

HSL to float first of six vessels for Good Earth Maritime this month Samsara becomes 1st liner shipping agency to open offices in Jalandhar & Chandigarh SCI places orders for 2 AHTSVs with Cochin Shipyard Maersk Logistics & Damco to combine as new market force

sector in the country, with all the major ports witnessing an acute shortage in project cargo handling consignments. More

Alang set to break down its 5,000th ship Shipbreaking activities are in full swing at the worlds largest shipbreaking yard, Alang, even as the world is passing through an economic downturn. In fact, it is the meltdown that has driven more ships to this scrapyard because

Panprojects executing major ODC contract for Bombardier

of the diminishing global trade which has made the cost of underutilized or idled ships prohibitive. Some 130 ships are being broken simultaneously now. And the yard is expected to break its 5,000th ship during the current fiscal,

SCI to hike freight rate on ISE service & BAF GE Shipping takes delivery of LR1 Product fTanker Security aspects of ports & shipyards being reviewed Mercator to buy 3 bulk vessels MSC to effect rate restoration from July 1 SCI to apply BAF SMILE service on

with 4,804 ships already having been demolished here.

More

With prices sinking by 40 pc second-hand ships become hot buys

The global economic downturn may have sent the ex-im trade into a tizzy, and sent freight rates crashing with an excess of shipping capacity chasing diminishing cargos, but, according to maritime observers, the glut of carrying capacity has sent prices of used ships nose-diving by as much as 40 per

SCI, ONGC planning to revive JV, hire consultant SCIs expansion staysHajara plan

cent, giving scope for shipping companies in countries like India to augment capacity and tonnage.

More

CoPT to develop dedicated terminal for Lakshadweep ships ABG Shipyards Q4 profit rises by 13 pc

Growth, Expansion and Developments: Bharati Shipyard to buy more shares of Great Offshore

ABG, Bharati slug it out for Great Offshore pie SCI extending SMILE service to Port Pipavav from July 14/15 Despite downturn, VCTPL takes confident strides MFC uses multi-model mode for ODC delivery Wartsila India to operate & maintain dry dock facility at Paradip Port Mundra Ports latest facility for car carriers installed by Lift & Shift India with precision International Updates: Underemployed ships become warehouses for empty boxes CMA CGM announces rate restoration on AsiaEurope trades Baltic Dry Index surges by 5.4 pc

MUMBAI: Bharati Shipyard Ltd. will acquire additional shares of Great Offshore Ltd.up to 20 per cent of its paid-up equity share capitala company release said.

More

Passenger ships rooting for direct Dhaka-Kolkata shipping route

A new business opportunity is likely to present itself for the passenger shipping companies in Kolkata. A parliamentary panel in Dhaka has recommended launching a direct passenger shipping route between DhakaKolkata in a bid to boost regional tourism and strengthen trade relations between India and Bangladesh.

More

VLCCs being booked just to store diesel MaerskLine to effect rate hikes from July & Sept. EU preparing proposals to cap shipping emissions Worlds largest tanker launched bunker

Petroleum coke unloading record set at Vizag Port

Visakhapatnam Port has established an all-time record in unloading of petroleum coke in bulk in a day when 17,270 tonnes were discharged from the vessel m.v. Crowned Eagle at EQ-8 berth on May 31. This surpassed the previous best discharge of 17,003 tonnes that was established from the vessel m.v. B. K. Ace on December 17, 2008.

Singapore promotes intelligent port & shipping services Baltic Dry Index posts steepest fall since April OOCL wins Best Liner Owner/Operator Award at Seatrade Asia function Foreign Tie-up: Rare European honour for IRS Government and Actions: Union

More

Gangavaram port proves mettle in coal discharge

Gangavaram port, which has the deepest draught among ports in the country, has proved its mettle by discharging a record 71,808 tonnes of non-coking coal in a single day from a vessel, according to a press release. The vessel, m.v Go Patoro, was carrying the cargo for Adani Enterprises. It was the third fully-laden Capesize vessel the port has handled so far, the release elaborated.

Supports

High court ruling to come handy to importers caught on IE code muddle Newly appointed shipping minister firm on Sethusamudram Project UPA to bring back past glory of Kolkata Port trust Shipping Ministry to award Rs. 3,300-cr projects in 100 days

More

GE Shipping delivers Handymax ship

Trinamool win to infuse new life into Haldia port Corpus for tonnage acquisition mooted PPP port projects to come under MoS scanner MoS panel examining ways to improve Major Ports efficiencies, capacities & earnings

Great Eastern Shipping Co. Ltd. (GE Shipping) has delivered its 2000-built, 45,659-DWT Handymax bulk carrier, Jag Reena to the buyers.

More

HSL to float first of six vessels for Good Earth Maritime this month

Others:

Hindustan Shipyard Ltd. (HSL) has completed construction of a 53,000-dwt

MISC refitting boxship as armed escort to combat pirates Pirates board & make off with engine parts InterManager coming to grips with criminalisation of crew VCT reserves plot for

vessel for the Chennai-based Good Earth Maritime Ltd. The vessel, Good Pride, will be floated later this month, it is learnt. HSL is building six such vessels for the Chennai company and Good Pride is the first of the series.

More

saplings Mercator augmenting fleet in crunch times Cochin Port strike over eport fears ends

Samsara becomes 1st liner shipping agency to open offices in Jalandhar & Chandigarh

Samsara Group has become the first liner shipping agency to set up offices in
Vizag Port takes another shot at promoting green environment

Jalandhar and Chandigarh. The offices were inaugurated in the last week of May under the inland banner of the Group, Hind Freight Services Pvt. Ltd. With an existing office in Ludhiana, the additions make for three offices in

InterManager to try for clean chit to released Indian seafarers. Pirates infest new waters German ship off Oman hijacked Worlds biggest boxship makes maiden call at Jebel Ali Shipping industry asks for setting up of fund Shipping and logistics cos oppose tariff revision in Kochi Port Mega port Vizhinjam teeters on the brink VCTPL celebrating 6th anniversary tomorrow Shipping cos harbouring credit concerns

Punjab and 45 offices across India, for the Samsara Group.

More

SCI places orders for 2 AHTSVs with Cochin Shipyard

The Shipping Corporation of India (SCI) has placed orders. for 2 anchor handling, towing and supply vessels (AHTSVs) with Cochin Shipyard Ltd. on June 4 with the option of contracting two more vessels on similar terms within 6 months. SCI is committed to the development of the shipbuilding industry and has selected Cochin Shipyard, one of the premier shipyards in the country, to build these vessels.

More
Dhoot could join battle for Great Offshore Stagnant tonnage awaits Budgetary stimulus to grow Ports Regulatory Authority Bill proposes stiff fines for violating instructions Shipbreakers plan to oppose ratification of IMO convention Lanco pulls out of Vizhinjam ICTT project Zoom awaits govt. response: Vizhinjam port LIC hikes stake in Bharati Shipyard to 9.66 pc Piracy occupies top place in agenda of Middle East Workboats conference

Maersk Logistics & Damco to combine as new market force

On September 7, the A.P. Moller-Maersk Group will merge its supply chain management activities branded as Maersk Logistics and its freight forwarding activities branded as Damco, under the single brand name Damco. Mr. Rolf Habben-Jansen, CEO of Maersk Logistics and Damco, says, "Under the new, single brand, our primary drivers. remain our passion for customers. and our dedication to service delivery.

More

Panprojects executing major ODC contract for Bombardier

Panprojects, the projects division of the Panalpina Group, along with its Hamburg, Germany, office, is handling a prestigious project cargo movement

on turnkey basis, i.e. door-to-door, also involving the inland transportation of coaches, for the Delhi Metro Rail Corporation (DMR.C). The project is being executed for Bombardier Transportation, one of the worlds leading transportation companies operating in two industry-leading businesses, aerospace and rail transportation.

More

SCI to hike freight rate on ISE service & BAF

The Shipping Corporation of India (SCI) has announced a hike in freight rate on its India to Europe ISE service. The Rate Restoration/increase will be $200/TEU on cargo moving ex-Indian Subcontinent to the Europe sector with effect from July 1. According to a company release, this has been necessitated by the burgeoning operational costs and to make the service viable in the interest of the trade.

More

GE Shipping takes delivery of LR1 Product Tanker

Great Eastern Shipping Co. Ltd. (GE Shipping) has taken delivery of its newbuilding Long Range One (LR1) Product Tanker, Jag Aparna. The double-hull vessel of about 74,500-DWT was built at Koreas STX Offshore & Shipbuilding Co. Ltd.

More

Security aspects of ports & shipyards being reviewed

Unit commanders of 15 Central Industrial Security Force (CISF) units here are reviewing the threat (both from sea and land) perceptions and security arrangements at all ports and shipyards in the country. The unit commanders are also being briefed on the use of modern equipment and other security best practices.

More

Mercator to buy 3 bulk vessels

Mercator Lines, Indias second-largest private shipping company, is expanding its capacity and is set to acquire three gearless post-Panamax bulk carriers totaling 2.77 lakh dead-weight tonnage (DWT) on a charter basis. Company sources said the investment would be around Rs. 500 crore for this additional expansion of vessels.

More

MSC to effect rate restoration from July 1

The Mediterranean Shipping Co. (MSC) has announced a rate restoration on the India to North Europe, UK, West and East Mediterranean, and Black Sea trades. As per a release, it will be $200 per 20 GP and $400 per 40 GP/40 HC, effective from July 1.

More

SCI to apply BAF on SMILE service

In view of the continuous increase in bunker cost, the Shipping Corporation of India (SCI) is applying a Bunker Adjustment Factor (BAF) of $35/TEU on its SMILE service.

More

SCI, ONGC planning to revive JV, hire consultant

Shipping Corporation of India (SCI) and Oil and Natural Gas Corp (ONGC) are planning to revive a proposed joint venture for services related to vessel operations and are working on hiring a consultant for the purpose.

More

SCIs expansion plan staysHajara

The Shipping Corporation of India (SCI)the countrys premier flag carrier is determined to grow by acquiring new vessels as well as through other expansion projects in order to serve the ex-im trade, stressed Mr. S. Hajara, Chairman and Managing Director of SCI. He was addressing a press meet here on Monday called to announce the companys audited financial results for the year ended March 31, 2009.

More

CoPT to develop dedicated terminal for Lakshadweep ships

A dedicated terminal for Lakshadweep-bound passenger and cargo ships will reportedly be constructed at Cochin Port at an estimated cost of Rs. 32 crore. Five hectares of land have already been earmarked in the Cochin Port Trust (CoPT) area (on the western side of Willingdon Island, between South Coal Berth and Workshop Jetty) for this purpose.

More

ABG Shipyards Q4 profit rises by 13 pc

ABC Shipyard Ltd. has posted a net profit of Rs. 51.96 crore for the fourth quarter of 2008-09, as against Rs. 46.05 crore in the corresponding period of 2007-08, working out to an increase of 12.83 per cent. For the entire fiscal, ABG reported a net profit of Rs. 171.10 crore, as against Rs. 160.68 crore in 2007-08.

More

ABG, Bharati slug it out for Great Offshore pie

Great Offshore, a supplier of rigs used for offshore drilling, found itself at the centre of a takeover battle on Tuesday, following an unsolicited bid by ABG Shipyard to counter an ongoing open offer from Bharati Shipyard, which retaliated by buying a large chunk of shares at a higher price in the morning,

and by announcing a further revision of its bid price in the evening.

More

SCI extending SMILE service to Port Pipavav from July 14/15

The Shipping Corporation of India Ltd. (SCI) has announced that the port of Pipavav will be included in its SMILE service to cater to coastal cargo from Pipavav to Cochin and Tuticorin. In addition, the service will cater to the Far East, Europe and Red Sea cargo. The current SMILE service rotation is: Colombo, Cochin, Jawaharlal Nehru Port, Mundra, Jebel Ali, Mundra, Cochin, Tuticorin, Colombo.

More

Despite downturn, VCTPL takes confident strides

Deal with Orissas Vedanta Aluminium may fetch project cargo. The Visakha Container Terminal Pvt. Ltd. (VCTPL) is poised to cross the one-lakh-TEU mark in 2009-10, Capt. Sriram Ravi Chander, Chief Operating Officer, said.

More

MFC uses multi-model mode for ODC delivery

Over dimensional cargo (ODC) and project cargo mover, Mumbai-based MFC seems to be taking advantage of the booming project cargo market in the country. Of late, it has employed multi-modal transport to service its customers efficiently. Ever since it moved two IOC reactors, at Haldia, last year, the company has bagged similar ODC consignments.

More

Wartsila India to operate & maintain dry dock facility at Paradip Port

Wartsila, a global leader in providing complete lifecycle power solutions and services for the marine and energy markets, has been given a contract to

operate and maintain the dry dock at Paradip Port. The facility, which offers. various activities related to repairs. of mid-size and small-size ships, and is spread over 1,800 square metres, is designed to cater to dry dock repairs., afloat repairs., modification, conversions and re-fit of ships.

More

Mundra Ports latest facility for car carriers installed by Lift & Shift India with precision

Mundra Port now has a new link bridge to be used for the export of cars. The contract for installation of this bridge was awarded to Lift & Shift India Pvt. Ltd., which safely completed it on June 21-22, well within the stipulated timeframe. The link span bridge, of 55 m length and weighing 350 tonnes, was towed from Singapore on a pontoon barge.

More

International Updates: Underemployed ships become warehouses for empty boxes

Nearly all the boxes aboard one of the worlds largest containerships were reportedly empty and bound for Asia from Morocco. "Most will wait far longer than they would have two years ago before returning full to Europe," said a report. Shippers wanting to send goods from Asia to Europe have sometimes offered a zero freight rate, providing they cover fuel and terminal handling charges, the report explained.

More CMA CGM announces rate restoration on Asia-Europe trades

In its continued effort to provide customers. with the same reliable and efficient services they are accustomed to, the CMA CGM Group has decided to restore freight rates in the Asia-Europe trade to a more sustainable level. The new rate increases will apply to all cargo and commodities moving westbound from Asia to Europe, and will be effective from July 1. More

Baltic Dry Index surges by 5.4 pc

The Baltic Dry Index, a measure of shipping costs for commodities, climbed by 187 points, or 5.4 per cent, to 3,681 points, following demand for raw materials from China. A broad-based improvement in commodities demand has compounded the fact that Chinese steelmakers are buying more iron ore overseas.

More

VLCCs being booked just to store diesel

Trading companies have booked two brand new very large crude carriers. (VLCCs), in a rare move, just to store diesel off Singapore waters or NorthWest Europe from this month, taking advantage of the contango market amid a demand slump. Some 520,000 tonnes of South Korean diesel will be lifted this month, and will be anchored in those areas on the vessels Front Queen and Caeser, traders said.

More

MaerskLine to effect rate hikes from July & Sept.

MaerskLine has announced rate increases on its services between Europe and the Middle East and South Asia. The trading conditions for carriers. operating in these markets are still subject to unacceptable rate levels and the situation is unsustainable in the longer term, the line said in a release.

More

EU preparing proposals to cap shipping emissions

The European Commission will take steps to restrict carbon emissions from shipping in case the global maritime industry fails to come up with its proposals soon, an EC official said. A conference in Copenhagen in December is expected to agree to a successor to the UNs Kyoto Protocol on fighting climate change, and the shipping industry faces mounting pressure to

bring

forward

system

to

curb

emissions.

More

Worlds largest bunker tanker launched

After achieving the highest-ever bunker sales in May, Hong Lam Marine here has launched the worlds largest purpose-built bunker tanker at the Marina in Keppel Bay. The 22,000-DWT tanker Spectrum was built in collaboration with Hong Lam and Toyota Tsusho Corp (TTC).

More

Singapore promotes intelligent port & shipping services

For the worlds busiest port here, technology is the watchword to ensure efficient and round-the-clock operations and services. To enhance navigation in Singapore ports waters. and its approaches, the Maritime and Port Authority of Singapore (MPA) has been promoting the use of technology.

More

Baltic Dry Index posts steepest fall since April

The Baltic Dry Index, a measure of shipping costs for commodities, posted its biggest weekly fall since April as demand for iron ore transporters weakened. The index, tracking transport costs on international trade routes, was unchanged on June 26 at 3,703 points, according to the Baltic Exchange. The previous weeks 9 per cent slide is the worst since the week ended April 3.

More

OOCL wins Best Liner Owner/Operator Award at Seatrade Asia function

OOIL Chairman C. C. Tung bestowed Lifetime Achievement Award. Orient OveRs.eas Container Line (OOCL) has been conferred the Best Liner Owner/Operator Award at the Seatrade Asia Awards ceremony held here on

June 25. The Seatrade Asia Awards are designed to celebrate and reward excellence and innovation in the maritime sector across the region over the previous 12 months.

More

Foreign Tie-up: Rare European Union honour for IRS

European Union Commission has awarded prestigeous partnership to Indian Registrar of Shipping (IRS) in an important and internationally collaborative research project through a ceremonial meeting held on June 11-12 at the University College of London.

More Governement Supports and Actions: High court ruling to come handy to importers caught on IE code muddle

In two landmark judgements on alleged fraudulent use of import-export code (IE code) for importing goods at Nhava Sheva, Bombay High Court has ruled that there is no rule or regulation for the Customs to hold back imported goods for which duty is paid and where the IE code is valid.

More

Newly appointed shipping minister firm on Sethusamudram Project

GK Vasan, the newly appointed Shipping Minister of India, has declared that the shipping industry will make every possible effort to implement the controveRs.ial Sethusamudram Ship Canal Project (SSCP) for the benefit of the larger segment of the shipping companies in Tamil Nadu. According to Mr. Vasan, the Ministry of Shipping (MoS) is currently waiting for the RK Pachauri committee to submit its report on various environmental issues that have been raised by environmentalists in the country.

More

UPA to bring back past glory of Kolkata Port trust

The UPA government would make take all possible steps to bring back the past glory of Kolkata Port Trust (KoPT), minister of state for shipping Mukul Roy said here on Saturday. A project to dress up the riverfront in key towns along the Hooghly river seems to be also on the ministers mind.

More

Shipping Ministry to award Rs. 3,300-cr projects in 100 days

As part of the first 100-day 'action programme' of the government, the Shipping Ministry would award projects worth more than Rs. 3,300 crore for developing and upgrading container and cargo terminals at various ports in the country.

More

Trinamool win to infuse new life into Haldia port

The dry spell at Haldia port looks likely to end with the Trinamool Congress (TMC) pulling out all stops to revive the port and ensure that it does not turn into a minor port. Haldia port, the second most important port in West Bengal in terms of tonnage handling, was fast becoming unviable owing to escalating maintenance costs over dredging.

More

Corpus for tonnage acquisition mooted

The Union Ministry of Shipping (MoS) has suggested the setting up of a finance corporation or a dedicated corpus under a refinancing corporation to provide funds to the shipping industry which is finding it extremely difficult to source funds to acquire tonnage.

More

PPP port projects to come under MoS scanner

As part of the Union governments 100-day programme, the Ministry of Shipping (MoS) will review the various port projects proposed under the public-private partneRs.hip (PPP) mode, the Union Shipping Minister, Mr. G. K. Vasan, said.

More

MoS panel examining ways to improve Major Ports efficiencies, capacities & earnings Captive land use policy in sharp focus

A committee formed by the Ministry is reportedly considering proposals on a revised land use policy for Major Ports, which are under the Union governments jurisdiction. The existing policy discourages Major Ports from taking decisions on issues that can improve their capacity and earnings.

More

Others: MISC refitting boxship as armed escort to combat pirates

MALAYSIAs MISC Berhad is reportedly refitting one of its containerships as an armed vessel to combat pirtes off the Somali coast in the Gulf of Aden. After pirates seized two of its ships, the ocean carrier had decided to take effective steps against the buccaneers.

More

Pirates board & make off with engine parts

Pirates boarded the Panama-registered bulk carrier Garnet outside port limits (OPL) anchorage off Tanjung Ramunia and Tanjung Ayam on the south-east coast of Johor and made off with some engine parts. More

InterManager coming to grips with criminalisation of crew

InterManager, the international trade association for in-house and third party ship managers, has underlined its commitment to ridding the industry of crew criminalisation by creating an industry-wide think-tank that it hopes will translate its findings into international law.

More

VCT reserves plot for saplings

The Visakha Container Terminal Pvt. Ltd. (VCTPL) has observed the World Environment Day by reserving an area of 100 x 10 metres to plant saplings. Mr. M. Ponnuswamy, Commissioner of Vizag Customs, inaugurated the function by a symbolic planting of a sapling.

More

Mercator augmenting fleet in crunch times

Even as the shipping industry is grappling with the economic downturn by either disposing of some of their fleet or cancelling orders for newbuildings, Mercator Lines Ltd. is reportedly planning to acquire three gearless postPanamax bulk carriers at a cost of around Rs. 500 crore.

More

Cochin Port strike over e-port fears ends

The trade unions at Cochin Port have called off the agitation following an agreement reached with the Port management on June 8. The workers were agitating against the new manning scales recommended by the National Industrial Tribunal Award and implemented by the Cochin Port Trust (CoPT).

More

Vizag Port takes another shot at promoting green environment

The Visakhapatnam Port Trust (VPT) celebrated the World Environment Day recently with the VPT Chairman, Mr. Ajeya Kallam, launching the dust pollution mitigation work. He inaugurated the pump house which has a 1,00,000-litre capacity groundwater tank and a water filling station which allows lorries to sprinkle water over the iron ore stacks and on roads in the ore handling complex (OHC) area to control dust pollution from the iron ore plots.

More

InterManager to try for clean chit to released Indian seafarers.

The release of Capt. Jasprit Chawla and Chief Officer Syam Chetan of the Hebei Spirit last week, after an enforced stay of 551 days in Korea, some of it in jail, has been hailed by the global shipping industry. The two officers had been incarcerated following the Hebei Spirit spilling oil after a collision with a Samsung vessel in December 2007 off the Korean coast, an accident which most agree was the fault of the latter.

More

Pirates infest new waters - German ship off Oman hijacked

SOMALI pirates have seized a German-owned cargo ship, Charelle, off Oman, the first recorded attack in waters far from their usual Somali coastal habitat. "This is the first case outside normal operations area of the pirates," remarked Lt. Cmdr. Alexandre Fernandes of Portugal aboard the frigate Corte-Real, part of the North Atlantic Treaty Organisations (NATO) flotilla deployed against the pirates.

More

Worlds biggest boxship makes maiden call at Jebel Ali

THE 11,000-TEU Emma Maerskthe worlds largest containeRs.hip

reportedly called in at Jebel Ali port for the first time. The Emma Maerskis nearly 400 metres long and 56 metres wide, with 30 cabins on its 22 floors.

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Shipping industry asks for setting up of fund

The shipping industry on Sunday asked the government to set up a fund to help the industry to get finances for projects with loans increasingly drying up. The Indian shipping industry finds it difficult to raise money from the global market because of the global economic crisis triggered by the collapse of Lehman Brothers in September 2008.

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Shipping and logistics cos oppose tariff revision in Kochi Port

A general tariff adjustment decision taken by the Kochi port authority has irked shipping companies and logistics service providers (LSPs) operating in the port. In order to resolve the issue, the Tariff Authority of Major Ports (TAMP) had called a meeting of shipping and logistics firms and the terminal operator on June 20 in the ports premises.

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Mega port Vizhinjam teeters on the brink

Keralas infrastructure sector appeared on the brink of a major setback today as its dream project of the Vizhinjam container terminal here seemed to teeter on the brink, with unconfirmed reports that the winner in the original bid, Lanco Kondapalli Power had opted to withdraw from the project.

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VCTPL celebrating 6th anniversary tomorrow

The Visakha Container Terminal (VCT) here is celebrating its 6th anniversary

on June 26. The celebrations will begin with a Pooja at 0900 hrs. A blood donation camp has been organised on Friday between 08.00 hrs. and 12.00 hrs. Mr. Ajeya Kallam, Chairman of the Visakhapatnam Port Trust (VPT), will inaugurate this camp at 08.00 hrs. at the VCT premises.

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Shipping cos harbouring credit concerns

The bleak market scenario has dashed the hopes of Indian shipping companies who were in expectation of an imminent revival. With commodity trading picking up slightly in the domestic market and major ports in the country showing improvements in cargo throughput, the shipping companies in India were anticipating normalcy to resume soon.

More

Dhoot could join battle for Great Offshore

The battle for Great Offshore is likely become more intense now as Videocon Chairman Venugopal Dhoot has dropped hints that he could join the race for the integrated oilfield services provider. "I would not sell my 3 per cent stake in Great Offshore.

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Stagnant tonnage awaits Budgetary stimulus to grow

Domestic shipping tonnage has remained flat during the last five months of this calendar year, thanks to the funds crunch and the global recession. Although, the number of ships in the national fleet has marginally increased, the gross tonnage (GT) has hovered around 9.3 million tonnes during January-May.

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Ports Regulatory Authority Bill proposes stiff fines for violating instructions

The proposed Ports Regulatory Authority Bill, when implemented, will fine Port authorities and private operators up to Rs. 1 crore if they violate orders of the port regulator, it is learnt. At present, the maximum penalty is just Rs. 10,000.

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Shipbreakers plan to oppose ratification of IMO convention

Indian efforts to approve and ratify the latest International Maritime Organisation (IMO) convention on ship recycling, which, according to the agreement, should start with right earnest from August, is not going to be a smooth affair.

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Lanco pulls out of Vizhinjam ICTT project

Lanco Infratech Ltd. here has withdrawn from the proposed Vizhinjam international container transhipment terminal (ICTT) "due to long delays", Mr. V. Srinivas, Director, Corporate Affairs, Lanco Infratech, has announced.

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Zoom awaits govt. response: Vizhinjam port

Over a week after a wave of rumours and speculation lashed the prospects of the Rs. 5,340-crore Vizhinjam container transshipment terminal near here, Mumbai-based Zoom Developers is still awaiting the result of the reevaluation of the company's bid by a committee set up by the state government.

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LIC hikes stake in Bharati Shipyard to 9.66 pc

Life Insurance Corporation of India (LIC) now has 9.66 per cent stake in Bharati Shipyard Ltd., it is reported. LIC acquired 7.21 lakh shares, or 2.62 per cent stake, at Rs. 12.05 crore through open market transactions between June 18 and 24, thus raising its stake in Bharati Shipyard.

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Piracy occupies top place in agenda of Middle East Workboats conference

Piracy issues may figure at the top of the agenda at the Middle East Workboats exhibition and conference in the wake of the recent attack on a German cargo vessel, the m.v. Charelle, just 60 nautical miles south of Sur in Oman. The hijacking has literally brought the issue of piracy much closer home for the regions maritime professionals.

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Effects of Recession:

Overseas shipping & logistics firms dropping anchor in Indian waters Exim News Service 01 June, 2009 MUMBAI: Hit by the global economic crisis, oveRs.eas shipping and logistics companies are looking at India for business opportunities. During the last two months, at least three global shipping companies have dropped anchor to tap the market in the country. Indeed, even several who were here earlier are now planning to expand their presence. Doehle Danautic Logistics (DDL), part of the Hamburg-based Peter Doehle Group, started its Indian operations in March. The German company operates a fleet of over 460 vessels, including container, bulk and multi-purpose vessels. The DDL Director, Mr. Aun Aejaz, said the market here had barely been affected by the global slump. Currently, DDL is handling bulk and container cargo for large importers and exporters of mineral ores and is also in talks with importers of wood pulp for the paper industry. DDL proposes to enter into coastal shipping, project cargo, bulk handling and Customs broking in the near future, Mr. Aejaz disclosed. The Antwerp-based Ahlers, international logistics and maritime service providers, which just completed five years of its operation here, is also drawing up an expansion

strategy. As reported recently in Exim India, the company will soon open offices in Jamshedpur, Ludhiana and Ahmedabad. The Norway-based Hoegh Autoliners, in which A.P. Moller-Maerskhas a 37.5 per cent stake, also proposes to open its office in India. Sources in the industry said that the vehicle transportation firm would be commencing its services soon and proposes to make this country as its South Asian base. AET Tanker Holding Sdn Bhd of Malaysia has opened a ship management office in Gurgaon and may open its ship-owning subsidiary in this country in due course.

Top Chennai Port records a fall in cargo throughput Times Shipping Journal 08 June, 2009

The ongoing slump in the manufacturing sector has pulled down the throughput of project cargo at Chennai Port. Weak demand in the oveRs.eas market since the past few months has resulted in the countrys manufacturing sector nearly stalling its production to prevent inventory pile up. This slowdown in commodity trading has consequently jolted the cargo handling sector in the country, with all the major ports witnessing an acute shortage in project cargo handling consignments. The ongoing crisis has also impacted Chennai Port - the largest project cargo handling port in the country. The mid-sized shipping companies which operate from Chennai Port have also suffered huge losses due to dip in cargo throughput. D. Kumaresan, Director, UNI Logistics Pvt. Ltd., a mid-sized logistics company in Chennai, says, With a number of large and mid-sized manufacturing units located in and around Chennai slowing down their import and export activities, the project cargo traffic at the port has dropped significantly in the past few months. The Chennai port recorded a bumper year in 2007-08 due to the boom in the Indian manufacturing industry. However, in 2008-09, Chennai Ports cargo throughput, which includes heavy machinery and boilers for various industrial units, plunged by nearly 68% to 86,332. AV Abdullah, Senior Manager of YK Shipair Travel & Cargo Agencies, a mid-sized shipping and forwarding company in Chennai, cites another reason behind Chennai Ports negative performance. According to him, Several large manufacturers of wind turbine blades earlier used Chennai Port to export their products to countries such as the UK, South Africa, Belgium, Korea, the UAE and Australia. However, in the second half of the last financial year, some of these companies have started to export their consignment from the New Mangalore port. This has significantly affected the throughput at Chennai port. Over the years, Chennai Port has handled the project cargo of several leading companies including Bharat Heavy Electricals, Suzlon Energy, BGR Energy Systems, Diamond Engineering and Bharat Earth Movers.

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Alang set to break down its 5,000th ship Exim News Service 08 June, 2009 AHMEDABAD: Shipbreaking activities are in full swing at the worlds largest shipbreaking yard, Alang, even as the world is passing through an economic downturn. In fact, it is the meltdown that has driven more ships to this scrapyard because of the diminishing global trade which has made the cost of underutilized or idled ships prohibitive. Some 130 ships are being broken simultaneously now. And the yard is expected to break its 5,000th ship during the current fiscal, with 4,804 ships already having been demolished here. The yard had recycled as much as 1.94 million light displacement tonnage (LDT) during 2008-09, 174 per cent more than in 2007-08. The Alang yard had since 1982 recycled a record number of 348 ships in 1997, 347 ships in 1998 and 361 ships in 1999.

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With prices sinking by 40 pc second-hand ships become hot buys ...but money remains major problem Exim News Service 21 June, 2009

MUMBAI: The global economic downturn may have sent the ex-im trade into a tizzy, and sent freight rates crashing with an excess of shipping capacity chasing diminishing cargos, but, according to maritime observers, the glut of carrying capacity has sent prices of used ships nose-diving by as much as 40 per cent, giving scope for shipping companies in countries like India to augment capacity and tonnage. According to reports, shipping companies are planning to buy vessels from the second-hand market, instead of going in for newbuildings. Industry experts assert that the time is ripe to acquire ships, with predictions that the prices might fall even further. At present, a five-year-old very large crude carrier (VLCC) is priced around $84 million, whereas last year, it cost about $150 million.

Similarly, the price for a Capesize vessel has fallen to $53 million, from a high of $150 million in 2008. Analysts say that asset prices in the second-hand market have crashed to half or even less of their peak rates of last year due to an oversupply situation, a big dip in freight rates and the credit crisis. Dry bulk shipping freight rates have dropped to 4,000 points in June, from last years 12,000 points. "There is a huge possibility of distress sales of vessels due to the current downturn. Hence, we are mostly planning to acquire ships from the second-hand market, which will be mainly for our offshore operations," indicated a domestic player. Nevertheless, the availability of funds remains a handicap to buying ships. Even the oveRs.eas banks are in a wait-and-watch mode. "This is a good time to buy. Though we are not sure, prices may go down further. But the biggest challenge right now is getting funds as banks have very little appetite for the shipping sector," explained another shipping industry veteran.

In line with the industrys prediction, one shipyard admitted that while its order book is full, new orders are not forthcoming now. "The second-hand market is a viable option, as the vessel prices have gone down, but that is happening more in the cargo segment rather than in the offshore vessel segment. "Still, this year, we have seen a decline in new orders," the company official explained. According to some industry experts, even newly-placed orders can be negotiated under the present circumstances. "Taking into consideration the current situation, there is a greater possibility of negotiations for newlyplaced orders. However, for immediate requirements, people will look at secondary market as the newbuildings will only be delivered after 3-4 years," said an observer. "Negotiation of prices is going on, and the contracts for ships that have been placed in the last 6-9 months, are facing greater pressure for renegotiation," he elucidated.

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Growth, Expansion and Developments:

Bharati Shipyard to buy more shares of Great Offshore Exim News Service 01 June, 2009 MUMBAI: Bharati Shipyard Ltd. will acquire additional shares of Great Offshore Ltd.up to 20 per cent of its paid-up equity share capitala company release said.

A top executive of the company said, "Considering the potential of offshore services business, we have decided to increase our investment in Great Offshore. This acquisition will provide enhanced stability to the existing management in Great Offshore and maximise shareholder value for both companies."

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Passenger ships rooting for direct Dhaka-Kolkata shipping route Times Shipping Journal 01 June, 2009 A new business opportunity is likely to present itself for the passenger shipping companies in Kolkata. A parliamentary panel in Dhaka has recommended launching a direct passenger shipping route between Dhaka-Kolkata in a bid to boost regional tourism and strengthen trade relations between India and Bangladesh. Though there used to be a direct waterway connecting Dhaka and Kolkata earlier, it was suspended along with other air and road transportation during the Pakistan era. However, though direct bus and train services between India and Bangladesh has resumed, there is no movement along the sea route. The proposal of resuming direct passenger ship service between the two countries has raised the hopes of several mid-sized passenger shipping companies in Kolkata.

Partha Sarathi Sarkar, Manager of Blacker & Co. Pvt. Ltd., a mid-sized shipping company in Kolkata, says, The proposal, if approved, will bring a cheer to the shipping companies in Kolkata. Considering the heavy tourist movement between India and Bangladesh, launching a passenger shipping route will certainly provide huge business volume for the shipping companies in both the countries. Moreover, we expect passenger traffic to increase with time, which will immensely benefit mid-sized shipping companies like ours. This is because we are unable to charter our ships in long routes due to high operating costs. However, the Dhaka-Kolkata route being comparatively shorter will prove to be costeffective for us, adds Mr. Sarkar.

Somnath Dutta, Senior Manager, Sea Meridian Shipping Agency Pvt. Ltd., a mid-sized shipping company in Kolkata, says, The route will become popular among passengers. if governments from both the countries take proactive steps to promote it. There is no doubt that the sea route will be the preferred choice of Bangladeshi passengers coming to India, since the route would pass via the Sunderbans. This will also boost eco-tourism in India to a great extent.

Thus, the shipping companies in India are looking hopefully at the government to consider this proposal and approve it at the earliest for mutual benefit.

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Petroleum coke unloading record set at Vizag Port Exim News Service 03 June, 2009 VISAKHAPATNAM: Visakhapatnam Port has established an all-time record in unloading of petroleum coke in bulk in a day when 17,270 tonnes were discharged from the vessel m.v. Crowned Eagle at EQ8 berth on May 31. This surpassed the previous best discharge of 17,003 tonnes that was established from the vessel m.v. B. K. Ace on December 17, 2008. The cargo was imported by Rain CII Carbon (India) Ltd., a Visakhapatnam Port Trust (VPT) release said.

Vizag Seaport Pvt. Ltd. was the stevedore and Eshwar Shipping Services the steamer agent for m.v. Crowned Eagle.

Top Gangavaram port proves mettle in coal discharge Exim News Service 04 June, 2009

VISAKHAPATNAM: Gangavaram port, which has the deepest draught among ports in the country, has proved its mettle by discharging a record 71,808 tonnes of non-coking coal in a single day from a vessel, according to a press release. The vessel, m.v Go Patoro, was carrying the cargo for Adani Enterprises. It was the third fully-laden Capesize vessel the port has handled so far, the release

elaborated. In April, 57,000 tonnes of coal were discharged in a day at the port, the release recalled.

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GE Shipping delivers Handymax ship Exim News Service 04 June, 2009 MUMBAI: Great Eastern Shipping Co. Ltd. (GE Shipping) has delivered its 2000-built, 45,659-DWT Handymax bulk carrier, Jag Reena to the buyers. With the delivery of this vessel, the companys current fleet stands at 37 vessels, with an average age of 10.1 years, aggregating 2.83 million dwt.

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HSL to float first of six vessels for Good Earth Maritime this month Exim News Service 04 June, 2009 VISAKHAPATNAM: Hindustan Shipyard Ltd. (HSL) has completed construction of a 53,000-dwt vessel for the Chennai-based Good Earth Maritime Ltd. The vessel, Good Pride, will be floated later this month, it is learnt. HSL is building six such vessels for the Chennai company and Good Pride is the first of the series. The contract for the vessels was awarded in 2005, which is estimated to cost $ 20.10 million. All the vessels will have to be delivered by 2011.

Good Pride will carry bulk cargoes like coal, ore, cement, alumina, bauxite, mineral sand, steel coils and packaged timber. Designed for a speed of 14 knots, it has five cargo holds and is fitted with four deck cranes.

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Samsara becomes 1st liner shipping agency to open offices in Jalandhar & Chandigarh connects more effectively with ex-im trade in North Exim News Service 07 June, 2009 JALANDHAR: Samsara Group has become the first liner shipping agency to set up offices in Jalandhar and Chandigarh. The offices were inaugurated in the last week of May under the inland banner of the Group, Hind Freight Services Pvt. Ltd. With an existing office in Ludhiana, the additions make for three offices in Punjab and 45 offices across India, for the Samsara Group. The Group has similar plans in Amritsar in the coming months. With these developments, Samsara will be able to serve and service customers north of the National Capital Region (NCR) much better and more intimately, as well as strengthen the connectivity of the Northern region to the gateway ports with its private container rail operations under Hind Terminals.

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SCI places orders for 2 AHTSVs with Cochin Shipyard Exim News Service 07 June, 2009 MUMBAI: The Shipping Corporation of India (SCI) has placed orders. for 2 anchor handling, towing and supply vessels (AHTSVs) with Cochin Shipyard Ltd. on June 4 with the option of contracting two more vessels on similar terms within 6 months. SCI is committed to the development of the shipbuilding industry and has selected Cochin Shipyard, one of the premier shipyards in the country, to build these vessels. They will be built at the shipyards state-of-the-art shipbuilding facility at Cochin and its newlydeveloped Small Ship Division Complex, and will be delivered to SCI during the first half of 2011. With the increased emphasis on deepwater exploration activities, the offshore industry is in need of higher capacity sophisticated vessels. The vessels ordered by SCI are of 120-tonne bollard pull capacity each with superior specifications like dynamic positioning, etc. These vessels will be able to offer the essential support and services for the growth of the offshore industry.

In the offshore sector, SCI has a fleet of 10 vessels all of which were acquired during the eighties. These vessels have been dedicatedly serving the oil exploration and production sector and SCI has recently upgraded these vessels with dynamic positioning systems, enabling them to offer superior services to the oil industry. In addition to these 10 owned vessels, SCI has on order 4 AHTS vessels of 80-tonne capacity each. SCI has also been operating offshore vessels owned by ONGC, some of which are very specialised vessels requiring high technical expertise for management. SCI has built up such expertise through rigorous training of dedicated teams over the years. The present order for 2 highercapacity vessels marks SCIs deep interest in the offshore segment, which is growing at a rapid pace in the international as well as Indian context. With the present order, SCIs order book position has improved to 31 vessels, which include crude oil tankers, product tankers, bulk carriers and AHTSVs. SCI has plans to acquire an additional 40 vessels by the end of the 11th Five-Year Plan (March 31, 2012).

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Maersk Logistics & Damco to combine as new market force Exim News Service 07 June, 2009 MUMBAI: On September 7, the A.P. Moller-Maersk Group will merge its supply chain management activities branded as Maersk Logistics and its freight forwarding activities branded as Damco, under the single brand name Damco. Mr. Rolf Habben-Jansen, CEO of Maersk Logistics and Damco, says, "Under the new, single brand, our primary drivers. remain our passion for customers. and our dedication to service delivery. And our teams across the globe will become even easier to do business with than before. "We will continue to build on the strengths already embedded in our company, particularly putting our customers. and their business first. That means spending more time with our customers.,

asking questions, and engaging with them to build the right solutionsbecause we want to become and remain our customers. preferred choice in the industry when it comes to selecting a reliable, highquality provider across all our services," he explains. Under the new brand, Damco will continue to offer customers.counting more than 10,000 globally, including prominent multinationals from, among others, the retail, apparel, electronics and chemicals industries, as well as small independent importers and exportersa broad range of logistics services covering A-to-B forwarding and time-sensitive reefer logistics to advanced supply chain management solutions and consultancy. "To us, its important that we think beyond the norm and that we create competitive solutions for our customers. regardless of their size. We believe we represent the best of multiple worlds: The locally anchored and customer-focused forwarding business combined with the advanced and visionary solutions of our supply chain solutionsall backed by the strengths, stability and capabilities of the A.P. Moller-Maersk Group. We have a lot to offer, even if we today may be less well-known in the market than some of our competitors," Mr. Habben-Jansen emphasises. In the interim period between June and September 7, the supply chain services will continue to be delivered under the Maersk Logistics brand, and the forwarding services will continue to be delivered under the Damco brand. Combined, Maersk Logistics and Damco offer a broad range of supply chain management and freight forwarding services to customers all over the world. Maersk Logistics and Damco have 10,500 colleagues in 272 offices, covering over 93 countries in Africa, Asia, North America, Europe, the Middle East and Latin America.

In 2008, the combined business had a net turnover of $ 2.8 billion, shipped more than half a million TEUs ocean freight, air freighted over 60,000 tonnes, and handled over 50 million CBMs for its supply chain management customers. Maersk Logistics/Damco is an independent business activity within the A.P. Moller-Maersk Group.

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Panprojects executing major ODC contract for Bombardier Exim News Service 11 June, 2009 MUMBAI: Panprojects, the projects division of the Panalpina Group, along with its Hamburg, Germany, office, is handling a prestigious project cargo movement on turnkey basis, i.e. door-to-door, also involving the inland transportation of coaches, for the Delhi Metro Rail Corporation (DMRC). The project is being executed for Bombardier Transportation, one of the worlds leading transportation companies operating in two industry-leading businesses, aerospace and rail transportation. In all, 424 coaches are scheduled to be delivered before the inauguration of the Commonwealth Games in the Capital, commencing in October 2010. Panalpina India, as the principal contractor, is responsible for providing the end-to-end logistics solutions/services (both onshore and offshore) to Bombardier. A part of the onshore services has been subcontracted to an Indian company, Allcargo Global Logistics.

Eight coaches, urgently needed for testing by DMR.C, have already been airlifted by Panprojects on a specially chartered AN-124 aircraft from Parchim, Germany, to New Delhi in February and May. Moreover, 12 more coaches have arrived, via Hamburg, at Mundra Port as complete built units (CBUs). The coaches that were brought in by air were successfully transported to DMR.C, Delhi, by road, utilising hydraulic modular platform trailers. The coaches that arrived at Mundra were transported by rail through special transition wagons provided by Bombardier. The first train, consisting of 4 coaches and assembled at Bombardiers Savli facility, was inaugurated by the Chief Minister of Gujarat, Mr. Narendra Modi, on June 5. The Panalpina Group operates a close-knit network with some 800 offices in more than 160 countries.

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SCI to hike freight rate on ISE service & BAF Exim News Service 11 June, 2009 MUMBAI: The Shipping Corporation of India (SCI) has announced a hike in freight rate on its India to Europe ISE service. The Rate Restoration/increase will be $200/TEU on cargo moving ex-Indian Subcontinent to the Europe sector with effect from July 1. According to a company release, this has been necessitated by the burgeoning operational costs and to make the service viable in the interest of the trade. SCI will also be imposing a Bunker Adjustment Factor (BAF) of $202/TEU, reflecting the rise in oil prices, from July 1. Due to the gradual increase in oil prices, it will be segregating the BAF and will invoice it separately, the release adds. Also, due to the increased war risk premiums for vessels plying via the Somalia coast and the Gulf of Aden, SCI will be levying a War Risk Surcharge (WRS.) of $50/TEU with effect from July 1.

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GE Shipping takes delivery of LR1 Product Tanker Exim News Service 11 June, 2009 MUMBAI: Great Eastern Shipping Co. Ltd. (GE Shipping) has taken delivery of its newbuilding Long Range One (LR1) Product Tanker, Jag Aparna. The double-hull vessel of about 74,500-DWT was built at Koreas STX Offshore & Shipbuilding Co. Ltd. With this, the companys fleet of 38 vessels comprises 32 tankers (12 crude carriers, 19 product tankers, 1 LPG carrier) and 6 dry bulk carriers with an average age of 9.9 years, aggregating 2.91-million DWT. Its current newbuilding order book comprises 8 vessels, aggregating 0.76-million DWT (2 Suezmax crude carriers, aggregating 0.32- million DWT and 6 dry bulk carriers, aggregating 0.44-million DWT).

Greatship Global gets an AHTSV Greatship Global Offshore Services Pte. Ltd. (GGOS), a Singapore-incorporated subsidiary of Greatship (India) Ltd. (GIL), a wholly-owned subsidiary of the Great Eastern Shipping Co. Ltd., has

taken possession of Greatship Aditi, a 80T anchor handling tug-cum-supply vessel (AHTSV), from Colombo Dockyard plc of Sri Lanka. The vessel has been financed via a sale and lease back arrangement. Greatship Aditi is a DP2, FiFi1 full service vessel built to exacting specifications, and capable of supporting offshore exploration and production around the world.

GIL and its subsidiaries currently own and/or operate six PSVs, five AHTSVs and one jack-up rig. GIL and its subsidiaries also have an order book of 14 vessels and one rig under constructiontwo AHTSVs in Batam, four MPSVs in Singapore, two MSVs in India, four ROVSVs in Sri Lanka, two 150 TBP AHTSVs in Batam, and a premium 350 jack-up rig in Singapore. All Greatships vessels are built to the highest standards of safety and operational efficiency. They conform to existing and envisaged IMO and Class rules.

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Security aspects of ports & shipyards being reviewed Exim News Service 11 June, 2009 KOCHI: Unit commanders of 15 Central Industrial Security Force (CISF) units here are reviewing the threat (both from sea and land) perceptions and security arrangements at all ports and shipyards in the country. The unit commanders are also being briefed on the use of modern equipment and other security best practices. The CISF Director-General will review the status of procurement of modern security equipment, patrol boats, dog squads as well as bomb detection and disposal equipment. The CISF personnel propose to hold a meeting with the senior Port officials on the security management. Deputy Conservators of a couple of ports have also been invited to the meet.

At the proposed meeting, the Cochin Port Trust Chairman will give his views on the matter, especially as he is the Chairman of the high-powered committee constituted to review security preparedness at ports and shipyards.

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Mercator to buy 3 bulk vessels The Economic Times 11 June, 2009 MUMBAI: Mercator Lines, Indias second-largest private shipping company, is expanding its capacity and is set to acquire three gearless post-Panamax bulk carriers totaling 2.77 lakh dead-weight tonnage (DWT) on a charter basis. Company sources said the investment would be around Rs. 500 crore for this additional expansion of vessels. DWT refers to how much mass or weight of cargo that a ship can carry. This development comes at a time when the shipping industry has been grappling with weak spot freight rates on a year-on-year basis in both dry and tanker segments. For instance, in the tanker segment like Suezmax, freight rates are currently at $2,580 per day compared with $84,790 per day a

year earlier, say senior industry officials. Mercator has attempted to offset this difficult operating environment by going in for long-term contracts with its key customers.

As with all its other dry bulk acquisitions, these additional vessels will also be under its Singapore-listed subsidiary Mercator Lines (Singapore). Out of the three vessels proposed to be acquired, two are from the New Yangzijiang Shipyard in China, which will remain with Mercator until 2014. The third vessel is from Sungdong Shipyard, South Korea and will be on a charter with Mercator until 2020. The existing capacity of the companys dry bulk fleet is approximately 1.2 million DWT. Mercators own fleet currently comprises 12 tankers. with a combined capacity of 13.7 lakh DWT, 12 dry bulkers with a combined capacity of 8.98 lakh DWT, four dredgers with a combined capacity of 31,854 cubic metres (CBM) and a 350 feet oil jack-up rig. Mercator has diversified its revenue stream, including coal mining in Indonesia coupled with its dredgers which are on a long-term lease and its recent acquisition of oil rigs. A combination of long-term contracts and a diversified revenue stream helped Mercator Lines consolidated operating income, including that of its Singapore subsidiary, touch Rs. 2,210.5 crore in FY09 compared with Rs. 1,477 crore for FY08 translating to a 50% growth.

The profit after tax (PAT) stood at Rs. 467 crore which was a 30% growth. It is estimated that Mercator generates nearly 45-50% of its revenues in FY09 from long-term contracts. Also, the company generated nearly 11.5% of its topline in FY09 from non-shipping activities.

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MSC to effect rate restoration from July 1 Exim News Service 14 June, 2009 MUMBAI: The Mediterranean Shipping Co. (MSC) has announced a rate restoration on the India to North Europe, UK, West and East Mediterranean, and Black Sea trades. As per a release, it will be $200 per 20 GP and $400 per 40 GP/40 HC, effective from July 1. The rate restoration is being implemented, the release says, in order to ensure that the high standards of MSCs service levels are continuously maintained. "It has been MSCs endeavour to offer to all its valued customers a comprehensive liner network and an efficient and reliable liner service at all times," the release underscores.

MSC, the second-largest shipping line in the world, provides an unparalleled service network via dedicated own offices throughout the world and remains a truly independent and private company able to respond to quick market changes and implement long-term plans without unnecessary interference or delay. As of end-May 2009, MSC was operating 410 container vessels, with an intake capacity of 1,488,000 TEUs.

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SCI to apply BAF on SMILE service Exim News Service 14 June, 2009 MUMBAI: In view of the continuous increase in bunker cost, the Shipping Corporation of India (SCI) is applying a Bunker Adjustment Factor (BAF) of $35/TEU on its SMILE service. It will be effective beginning with the vessel Indira Gandhi Voy 143, ETA Colombo June 19.

SMILE is a direct, independent service between the Subcontinent and the Gulf.

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SCI, ONGC planning to revive JV, hire consultant PTI - 14 June, 2009 NEW DELHI: Shipping Corporation of India (SCI) and Oil and Natural Gas Corp (ONGC) are planning to revive a proposed joint venture for services related to vessel operations and are working on hiring a consultant for the purpose. "We will now work towards effecting a joint venture with ONGC on a fast track basis. We would also hire a consultant soon," a senior official of the Navratna shipping company said. In 2006, SCI and ONGC had signed a memorandum of understanding to float the joint venture company -- Offshore Marine Services (OMSL). OMSL was to provide "end-to-end solutions in vessel operations" for ONGC as well as other oil and gas companies.

OMSL was to develop capabilities for acquisition, repair and maintenance of offshore floating units and for undertaking repair and construction on long-term arrangement with various shipyards on preferential terms. The official, however, declined to provide the details of the equity structure of the JV firm that is being revived. In the proposed joint venture, OMSL, the two public sector undertakings were to have 24.5 per cent stake each, while PSA Marine, a wholly-owned subsidiary of the Singapore government's PSA International, was to acquire 21 per cent stake. The remaining 30 per cent was to be held by financial institutions. As per the earlier MoU, PSA Marine was to provide repair services to vessels. PSA Marine, however, backed out from the venture in 2006 itself.

As per the agreements signed then, the upstream oil company would give its vessels on bare boat charter agreement to OMSL and would retain the right of first refusal on their deployment. The JV firm would acquire, own, maintain, operate and charter a range of offshore vessels and could also take nonONGC business, including acquiring vessels and other assets.

With SCI now holding the Navratna status, it would be able to pursue the JV project with greater flexibility as the company's board has been given more powers to enter into ventures with both domestic as well as foreign firms.

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SCIs expansion plan staysHajara Exim News Service - 16 June, 2009 MUMBAI: The Shipping Corporation of India (SCI)the countrys premier flag carrieris determined to grow by acquiring new vessels as well as through other expansion projects in order to serve the ex-im trade, stressed Mr. S. Hajara, Chairman and Managing Director of SCI. He was addressing a press meet here on Monday called to announce the companys audited financial results for the year ended March 31, 2009. SCI posted impressive results for 2008-09, registering a 15.58 per cent increase in net profit after tax (PAT) at Rs. 940.67 crore. Total income grew by 11.69 per cent to Rs. 4,561.83 crore, while profit from operations (before other income, interest and exceptional items) shot up by 25.51 per cent in 2008-09 to Rs. 763.15 crore.

Earnings per share was Rs. 22.21 on a face value of Rs. 10 per share. A dividend of 65 per cent has been proposed for 2008-09, subject to the approval of the annual general body meeting (AGM). Mr. Hajara highlighted that the total owned fleet of SCI currently stood at 78 vessels of 5.03 million DWT, including the 319,000-DWT VLCC and two large 4,400-TEU container vessels inducted last year. Among the additions to the fleet in 2009-10 would be a 319,000-DWT VLCC and 2 MR. product tankers, the latter being the first to be ordered from Chinese yards. Overall, SCIs order book as on date stood at 31 vessels, aggregating 2.19 million DWT and involving an outlay of Rs. 7,500 crore, Mr. Hajara disclosed. While the company would continue to focus predominantly on the tanker/energy transportation sector, it had plans to expand beyond shipping into areas like terminal management, dredging and shipbuilding, with suitable partners, Mr. Hajara disclosed. SCI was also looking at being in the high end of the offshore market, he added. Mr. Hajara underscored that the companys long-term vessel acquisition plans remained unchanged, despite the global economic downturn, though it had deferred a few projects from the last financial year to the current one, which it was looking to revive in the second half of the year. As regards the liner segment, Mr. Hajara and Mr. J. N. Das, Director, Liner and Passenger Services division, felt that the sector had probably bottomed out and rates seemed to be stabilising, especially on certain trade lanes. Mr. Das pointed out that SCI had integrated its liner services, which were no longer India-centric, with services facilitated between ports in other regions. From India, it was looking at commencing services to the East Coast of Africa and the US East Coast, depending on the right partners and circumstances, he added. The meet saw participation from all of SCIs DirectorsCapt. K. S. Nair (Bulk Carrier and Tanker division), Mr. U. C. Grover (Technical and Offshore Services), Mr. B. K. Mandal (Finance), Mr. Kailash Gupta (Personnel and Administration) and Mr. J. N. Das.

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CoPT to develop dedicated terminal for Lakshadweep ships Exim News Service 18 June, 2009 COCHIN: A dedicated terminal for Lakshadweep-bound passenger and cargo ships will reportedly be constructed at Cochin Port at an estimated cost of Rs. 32 crore. Five hectares of land have already been earmarked in the Cochin Port Trust (CoPT) area (on the western side of Willingdon Island, between South Coal Berth and Workshop Jetty) for this purpose. A memorandum of understanding (MoU) was signed between CoPT and the Lakshadweep administration for leasing of the land and waterfront areas. The proposed terminal will have a 300-metre-long berth, a passenger waiting hall of about 1,100 sq. metres., cargo storage area of about 400 sq. metres. as well as vehicle parking area.

The terminal will have facilities like prayer halls, a bank counter, a tourist information counter, a first aid centre, a snack bar, etc. tenders. for the project will be invited within a month and it is expected to be completed by 2011. About 10 passenger vessels and several cargo vessels ply between Lakshadweep Islands and Cochin and these vessels are at present moored at different berths of Cochin Port. The dedicated terminal will, therefore, be a boon for the people of Lakshadweep who are dependent on the mainlandabout 185 miles awayfor higher education, medical purposes, food items, fuel, consumer goods, etc. CoPT has, therefore, decided to accord top priority to the construction of the dedicated terminal.

Top ABG Shipyards Q4 profit rises by 13 pc Exim News Service 22 June, 2009 MUMBAI: ABC Shipyard Ltd. has posted a net profit of Rs. 51.96 crore for the fourth quarter of 2008-09, as against Rs. 46.05 crore in the corresponding period of 2007-08, working out to an increase of 12.83 per cent. For the entire fiscal, ABG reported a net profit of Rs. 171.10 crore, as against Rs. 160.68 crore in 2007-08. Income from operations in the fourth quarter increased to Rs. 370.86 crore from Rs. 276.68 crore in the same quarter of 2007-08. Mr. Dhananjay Datar, Chief Financial Officer, said that the total order book position as on March 31, 2009 stood at Rs. 11,500 crore.

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ABG, Bharati slug it out for Great Offshore pie The Economic Times - 24 June, 2009 MUMBAI: Great Offshore, a supplier of rigs used for offshore drilling, found itself at the centre of a takeover battle on Tuesday, following an unsolicited bid by ABG Shipyard to counter an ongoing open offer from Bharati Shipyard, which retaliated by buying a large chunk of shares at a higher price in the morning, and by announcing a further revision of its bid price in the evening. This is a rare instance of

an unsolicited bid - India Inc last saw a hostile takeover attempt in 2000, when Abhishek Dalmia mounted an abortive bid to acquire Gesco. Bharati Shipyard, which earlier this month launched a 20% open offer at Rs. 344 a share after acquiring just under 15% in Great Offshore, revised its offer price to Rs. 403 a share a few hours. after rival bidder ABG Shipyard launched an unsolicited bid at Rs. 375 a share. ET NOW, this newspapers business channel, first reported on the latest twist in the Great Offshore saga early on Tuesday morning.

Bharati Shipyard managing director PC Kapoor said his company had bought 4.58% stake at Rs. 403 a share from Ravi Sheth, a cousin of the former founder-promoter of Great Offshore, Vijay Sheth, through block deals on Tuesday. Under Sebi rules, an open offer price is automatically revised upwards, if an acquirer buys a single share at a higher rate during the tenure of the offer. As a consequence, Bharatis new offer stands at Rs. 403 a share, said Mr. Kapoor. Mr. Kapoor told ET that Bharati would further revise its offer after its next board meeting on June 30. We have so far acquired 19.5% stake in Great Offshore for about Rs. 250 crore. We need almost the same amount of money to launch a 20% open offer at a revised price. He did not rule out the possibility of a financial investor joining Bharati to fund the revised offer. Mr. Kapoor did not think Bharati was stretching its balance sheet to acquire Great Offshore. He said: Great Offshore is a strategic company for us. We have carved a niche market in construction of vessels and rigs for the offshore industry, and Great Offshore is into the business of providing support vessels and services required by the offshore industry. Its a nice fit for this business.

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SCI extending SMILE service to Port Pipavav from July 14/15 Exim News Service 28 June, 2009 MUMBAI: The Shipping Corporation of India Ltd. (SCI) has announced that the port of Pipavav will be included in its SMILE service to cater to coastal cargo from Pipavav to Cochin and Tuticorin. In addition, the service will cater to the Far East, Europe and Red Sea cargo. The current SMILE service rotation is: Colombo, Cochin, Jawaharlal Nehru Port, Mundra, Jebel Ali, Mundra, Cochin, Tuticorin, Colombo. The new port rotation will be: Colombo, Cochin, Jawaharlal Nehru Port, Mundra, Jebel Ali, Mundra, Pipavav, Cochin, Tuticorin, Colombo.

The Pipavav call will commence from the new voyage of Lal Bahadur Shastri voy 125 eta Pipavav July 14-15. The call at Pipavav is in the interest of SCIs valued customers in terms of providing an efficient and reliable service for coastal as well as ex-im cargo, explains an SCI release. SCI has taken delivery of a very large crude carrier (VLCC), m. t. Desh Vishal, from Daewoo Shipbuilding in South Korea, an SCI press release said. Desh Vishal is the second of SCIs two VLCCs constructed at Daewoo. Shipbuilding Orders for these vessels were placed in October 2005 and the first vessel, Desh Viraat, was delivered to SCI in October 2008. With 162,412 gross tonnage and 321,137 DWT, it is the largest vessel in the Indian Register. The new vessel is about 600 tonnes larger than Desh Viraat. It has been classed with ABS and IRS. and has been built to comply with the latest and most stringent international

regulations. With the country heavily dependent on import of crude oil, having tankers. under the Indian flag provides vital energy security to the nation.

Energy transportation has continued to remain the core business segment for SCI and the induction of this vessel in its fleet is expected to strengthen its position in the energy transportation sector. SCI has a fleet of 79 vessels at present and acquisition of the vessel is in line with the companys strategy of maintaining a modern and young fleet, the company has 30 vessels on order at present and has an ambitious plan to order another 40 ships in 2-3 years.

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Despite downturn, VCTPL takes confident strides Exim News Service 28 June, 2009 VISAKHAPATNAM: Deal with Orissas Vedanta Aluminium may fetch project cargo. The Visakha Container Terminal Pvt. Ltd. (VCTPL) is poised to cross the one-lakh-TEU mark in 2009-10, Capt. Sriram Ravi Chander, Chief Operating Officer, said.

On the eve of the sixth anniversary celebrations of VCTPL here on June 25, he pointed out that the terminal had made impressive strides during the last six years. During 2008-09, it handled 90,000 TEUs. Despite the economic downturn, VCTPL had been growing at 25 per cent per annum, he observed. The terminal had started operations six years ago in the outer harbour as a joint venture between DP World and United Liner Agencies of India Pvt. Ltd. During the first three years, the progress was slow, but picked up after that. Now, the recession had impacted to some extent, he admitted. Capt. Chander felt that Vizag was ideally positioned to develop into a hub for containerised cargo on the East Coast. "We have signed a memorandum of understanding (MoU) with Vedanta Aluminium at Jharsuguda in Orissa and the project cargo will be routed through our terminal. It is a shot in the arm for us," he revealed.

Tobacco from Guntur was still going to Chennai Port and there were certain problems in attracting the commodity to Visakhapatnam. But other commodities such as chillies and cotton were being exported through Vizag, he stressed. He forecast a bright future for VCTPL once the economic situation improved and special economic zone (SEZ) projects in the vicinity began operations. Mr. R. Ravi Kumar, Vice-President of VCTPL, also spoke about the advantages of using the terminal.

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MFC uses multi-model mode for ODC delivery The Economic Times - 29 June, 2009 Over dimensional cargo (ODC) and project cargo mover, Mumbai-based MFC seems to be taking

advantage of the booming project cargo market in the country. Of late, it has employed multi-modal transport to service its customers efficiently. Ever since it moved two IOC reactors, at Haldia, last year, the company has bagged similar ODC consignments. Recently, it carried 400MT cargo from Hazira by barge to Mumbai Port, and picked up another 200MT for its return leg from L&T, by a vessel. It has also been using both rail and road for moving ODC steel plates within record time.

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Wartsila India to operate & maintain dry dock facility at Paradip Port Exim News Service 30 June, 2009 MUMBAI: Wartsila, a global leader in providing complete lifecycle power solutions and services for the marine and energy markets, has been given a contract to operate and maintain the dry dock at Paradip Port. The facility, which offers. various activities related to repairs. of mid-size and small-size ships, and is spread over 1,800 square metres, is designed to cater to dry dock repairs., afloat repairs., modification, conversions and re-fit of ships. It includes a dedicated repair jetty for afloat repairs, modifications, conversions and re-fit jobs with uninterrupted power supply and fresh water supply.

It has two overhead double hook cranes facilitating blasting jobs at both sides simultaneously. The dry dock is 75 metres long, 15 metres wide and has a 6-metre draught. It includes a well-equipped workshop to carry out repair activities. Wartsila has strong service network on the East Coast of India, with offices at Kolkata and Secunderabad and a workshop at Visakhapatnam which can be leveraged for operations at Paradip. Operating and maintaining the dry dock facility at Paradip Port is an extension of Wartsilas services offerings in the ship services segment, and is in line with its strategy of being a total service provider.

On the dry dock facility, Mr. Rakesh Sarin, Managing Director, Wartsila India, observed, "Wartsila Indias existing ship repair services, combined with this in-house facility consolidates our position as a total service provider. We are proud of all aspects of the new dry dock facility and feel it will be of great benefit to the shipowners and managers. "Wartsila offers expertise and responsiveness to all our customers, regardless of their equipment maker, in the most environmentally-sound way. "Key customers, both marine and power plant customers, have recognised Wartsila as their preferred services supplier, ensuring the availability and cost-efficient operations of their installation. "They benefit from gaining their entire power system and a full range of services from one global supplier throughout the product lifecycle.

"We are continuously broadening our range of services and adding valuable products and specialist services to our portfolio. "This way, we also give support to the equipment on board of the vessels or at installations, either becoming the OEM or providing non-OEM services in key-ports," Mr. Sarin elaborated. Wartsila supports customers in the shipping industry throughout the lifecycle of their installations by optimising efficiency and performance. The lifecycle services are provided for engine

services, propulsion services, electrical and automation services, boiler services, operations and management and training services.

Top Mundra Ports latest facility for car carriers installed by Lift & Shift India with precision Exim News Service 30 June, 2009 MUNDRA: Mundra Port now has a new link bridge to be used for the export of cars. The contract for installation of this bridge was awarded to Lift & Shift India Pvt. Ltd., which safely completed it on June 21-22, well within the stipulated time-frame. The link span bridge, of 55 m length and weighing 350 tonnes, was towed from Singapore on a pontoon barge. After making all preliminary arrangements like mooring, ballasting, planning and engineering, the bridge was raised by utilising 8 synchronised hydraulic jacks, of 100-tonne capacity each, to a height of 600 mm to insert a similar number of heavyduty skid rollers of 100-tonne capacity, which were welded to the link bridge. The bridge was then skidded off the pontoon by 20 m, with the use of heavy-duty prime movers and placed on to the new roro terminal jetty. After mooring the link bridge to the jetty, the pontoon was winched away from the jetty to extend it by about 50 m, to put in place the pinlock arrangement of the link bridge with the pontoon barge.

The operation entailed detailed engineering and coordination with the manufacturer of the bridge and Mundra Port and Special Economic Zone (MPSEZ) authorities, which was vetted by an international surveyor. Lift & Shift mobilised its team of installation experts to conduct the work smoothly. The company also used 8 high-capacity ballast pumps to overcome the 7-m tidal variation. The bridge will be operational by July and is expected to be very useful for exports by car manufacturers.

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International Updates:

Underemployed ships become warehouses for empty boxes Exim News Service 02 June, 2009 LONDON: Nearly all the boxes aboard one of the worlds largest containerships were reportedly empty and bound for Asia from Morocco. "Most will wait far longer than they would have two years ago before returning full to Europe," said a report. Shippers wanting to send goods from Asia to Europe have sometimes offered a zero freight rate, providing they cover fuel and terminal handling charges, the report explained. The combination of excess capacity and falling demand has caused the rates that many transport operators can charge to slump, by as much as 90 per cent in some cases. Shipping lines have been using their growing numbers of idle ships just to store empties, says another report. Now, even the underemployed vessels are doing so.

Surplus containerships have deckloads of empty boxes, figuring that it is cheaper to pay the handling charges once empties are loaded aboard ships than to pay daily per-TEU storage fees at global container yards. More than 400,000 containers sit empty and idle at Shenzhens Yantian terminal, and in Hong Kong officials are looking to park hundreds of thousands more. "You will find similar situations in Shanghai, other Chinese ports, Hong Kong and many ports around the world," a top official of the Hong Kong Shippers' Council said. "You have idle containerships full of empty containers, sitting in Singapore, Hong Kong, Shanghai and many other ports around the world. When cargo is not moving, there is no demand for containers."

Exporters are now expressing concern that shipping lines will no longer be able to transport their goods. Carriers are also claiming that current freight rates are not sustainable for them to stay in business. "I think theyre definitely not sustainable. The rates were currently seeing are frightening," observed the head of a global ocean transport company.

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CMA CGM announces rate restoration on Asia-Europe trades Exim News Service 04 June, 2009 MARS.EILLES: In its continued effort to provide customers. with the same reliable and efficient services they are accustomed to, the CMA CGM Group has decided to restore freight rates in the Asia-Europe trade to a more sustainable level. The new rate increases will apply to all cargo and commodities moving westbound from Asia to Europe, and will be effective from July 1. The increased quantum will be $300 per TEU. Additionally, CMA CGM will start, on the same date, to invoice separately the Bunker Adjustment Factor (BAF) from the freight rate. CMA CGM has been constantly monitoring bunker prices.

On July 1, the applicable BAF on the Asia-Europe trade will be increased from $281 per TEU to $333 per TEU, reflecting the evolution of oil prices in the international market. Finally, the Group may also decide to implement a Peak Season Surcharge (PSS) on the same trade from August 1, intimated a company release.

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Baltic Dry Index surges by 5.4 pc Exim News Service 07 June, 2009 LONDON: The Baltic Dry Index, a measure of shipping costs for commodities, climbed by 187 points, or 5.4 per cent, to 3,681 points, following demand for raw materials from China. A broad-based improvement in commodities demand has compounded the fact that Chinese steelmakers are buying

more iron ore overseas. Rental rates for Capesize ships, most commonly used to haul iron ore, added 8 per cent on June 1 to $73,122 a day, according to the Baltic Exchange. Panamax rental costs advanced by 6.7 per cent to $24,801 a day, the report said. Capesize vessels normally haul about 175,000 tonnes of cargo and Panamaxes are about half the size. Rental rates for the larger ships may continue climbing because of port congestion, an analyst predicted.

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VLCCs being booked just to store diesel Exim News Service 10 June, 2009 SINGAPORE: Trading companies have booked two brand new very large crude carriers. (VLCCs), in a rare move, just to store diesel off Singapore waters or North-West Europe from this month, taking advantage of the contango market amid a demand slump. Some 520,000 tonnes of South Korean diesel will be lifted this month, and will be anchored in those areas on the vessels Front Queen and Caeser, traders said. Such floating volumes will be on top of the 530,000 tonnes being put in smaller vessels of 80,000-100,000 tonnage off Singapore waters North-West Europe and West Africa. The period for storage on a VLCC lasts from three to 12 months. Some players. recently booked one for 270 days.

Low freight rates and a contango market structure, which has been in place for a year, support such a trade strategy. The products are stored when their prices are low, on hopes of selling them off later when the rates rise, traders. stated. "You wont clean up a used VLCC to store products," a shipping source commented. "There is no demurrage involved when it comes to storage. Its a fixed rate," a shipping dealer explained. He added that the low rate for the Aframaxes, or the 80,000-100,000 tonnage, was about $20,000 per day for up to four months of storage.

As for VLCCs, the daily charges for storage were $35,000 with a last deal sealed at a rate of $23,000 each day, traders. elaborated. "The credit crunch and a demand collapse, as well as cheap ships and full on land storage... encourage floating storage," another trader said.

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MaerskLine to effect rate hikes from July & Sept. Exim News Service 10 June, 2009 COPENHAGEN: MaerskLine has announced rate increases on its services between Europe and the Middle East and South Asia. The trading conditions for carriers. operating in these markets are still subject to unacceptable rate levels and the situation is unsustainable in the longer term, the line said in a release. South Asia (India, Pakistan, Bangladesh, Sri Lanka) to the Mediterranean and North Europe:

$250 per TEU effective from July 1, $500 per FEU effective from July 1, $150 per TEU effective from September 1 $300 per FEU effective from September 1

The increases apply to all cargo and commodities, excluding reefers. Mediterranean to Middle East and South Asia. Apart from the unsustainable rates in this trade, the rate increases are also being implemented in response to improved demand, the release pointed out.

$100 per TEU effective from July 1 $200 per FEU effective from July 1 The increases again apply to all cargo and commodities, excluding reefers.

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EU preparing proposals to cap shipping emissions Exim News Service 15 June, 2009 OSLO: The European Commission will take steps to restrict carbon emissions from shipping in case the global maritime industry fails to come up with its proposals soon, an EC official said. A conference in Copenhagen in December is expected to agree to a successor to the UNs Kyoto Protocol on fighting climate change, and the shipping industry faces mounting pressure to bring forward a system to curb emissions. Faced with the lack of progress...in the International Maritime Organisation (IMO), the council of EU and the EU Parliament has repeatedly asked the European Commission to take action, Mr. Dimitri Giotakos, the EC representative, said here.

Scientists say shipping accounts for around 5 per cent of global greenhouse gas emissions, almost twice the level pumped out by aviation. The IMO Secretary-General, Mr. Efthimios Mitropoulos, said, the industry had made considerable progress towards more environmentally-friendly solutions but admitted that more work was needed. The Norwegian Shipowners Association said time was running out and called for immediate action.

Top Worlds largest bunker tanker launched Exim News Service 18 June, 2009 SINGAPORE: After achieving the highest-ever bunker sales in May, Hong Lam Marine here has launched the worlds largest purpose-built bunker tanker at the Marina in Keppel Bay. The 22,000-DWT tanker Spectrum was built in collaboration with Hong Lam and Toyota Tsusho Corp (TTC). The tanker, estimated to cost $ 30 million, is believed to be on a eight-year charter with TTC. Spectrum will enable

TTC to better manage its product supply chain and bring it into the big league, hopefully among the top three bunker suppliers.

On the back of the booming bunker industry, the Maritime Port Authority (MPA) also announced a new financial assistance scheme for bunker surveying companies. The scheme will grant bunker surveying companies a one-time 30 per cent financial relief on the assessment fee when they receive their accreditation credentials with the Singapore Accreditation Council (SAC) under the Accreditation Scheme for Inspection Bodies.

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Singapore promotes intelligent port & shipping services Exim News Service 28 June, 2009 SINGAPORE: For the worlds busiest port here, technology is the watchword to ensure efficient and round-the-clock operations and services. To enhance navigation in Singapore ports waters. and its approaches, the Maritime and Port Authority of Singapore (MPA) has been promoting the use of technology. These areas of technology uses include:

Electronic Chart Display and Information System (ECDIS) and its safety functionalities, used in conjunction with electronic navigational charts. Port Operations Control Centres (POCCs) harness technologies such as the Vessel Traffic Information System to monitor and broadcast navigational warnings to ships in the Singapore port and Singapore Strait.

Communication is made even easier by an Automatic Identification System, which allows easy contact between ships and the control centres. "Developing intelligent port and maritime service solutions is an integral part of Singapores growth as an international maritime centre," said the MPA Chief Executive, Mr. Lam Yi Young. In addition to the state-of-the-art POCCs, MPA has also developed online facilities to streamline documentation and business processes.

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Baltic Dry Index posts steepest fall since April Exim News Service 30 June, 2009 LONDON: The Baltic Dry Index, a measure of shipping costs for commodities, posted its biggest weekly fall since April as demand for iron ore transporters weakened. The index, tracking transport costs on international trade routes, was unchanged on June 26 at 3,703 points, according to the Baltic Exchange. The previous weeks 9 per cent slide is the worst since the week ended April 3. Rates to hire Capesize vessels fell by a steep 12 per cent to $78,945 a day during the week, while smaller Panamax ships slid 9.9 per cent to $22,582 a day for the same period. Both compete for iron ore cargoes.

Iron ore is the biggest single dry bulk commodity carried at sea, with 25 per cent share of the total in the second quarter, estimates Drewry Shipping Consultants here. Imports by China, the biggest user, fell by 6.2 per cent in May after climbing to a record in April. That may signal a drop in demand for the raw material and vessels to ship it. The worlds fleet of dry bulk vessels is expected to expand by 16 per cent this year to 492.5 million DWT, according to Drewry estimates.

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OOCL wins Best Liner Owner/Operator Award at Seatrade Asia function Exim News Service 30 June, 2009 SHANGHAI: OOIL Chairman C. C. Tung bestowed Lifetime Achievement Award. Orient OveRs.eas Container Line (OOCL) has been conferred the Best Liner Owner/Operator Award at the Seatrade Asia Awards ceremony held here on June 25. The Seatrade Asia Awards are designed to celebrate and reward excellence and innovation in the maritime sector across the region over the previous 12 months. The Liner Owner/Operator award is given to companies who demonstrate the best customer service and reliability, as well as network and fleet development. "We are delighted to receive this award and believe it truly reflects our commitment to the customers, and our take it personally motto," exulted Mr. Erxin Yao, Managing Director, OOCL China, who accepted the award on behalf of the company. "OOCL will continue to work together with our customers. to offer the best service, reliability and connections", he assured.

Also, Mr. C. C. Tung, Chairman and CEO of Orient OveRs.eas International Ltd. (OOIL), was presented the prestigious Lifetime Achievement Award at the function for his significant and lasting contribution to the regions shipping and maritime industry. Mr. Tungs contributions to the shipping industry in Hong Kong and around the world have been substantial. He has been Chairman of the Hong Kong Shipowners Association from 1993 to 1995 and Chairman of the Hong Kong General Chamber of Commerce from 1999 to 2001. He is currently a member of the Hong Kong Port Development Council and Hong Kong Logistics Development Council.

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Foreign Tie-up:

Rare European Union honour for IRS The Economic Times - 22 June 2009 European Union Commission has awarded prestigeous partnership to Indian Registrar of Shipping (IRS) in an important and internationally collaborative research project through a ceremonial meeting held on June 11-12 at the University College of London. This is the first instance that the EU

Commission has considered a non-EU organisation to be a partner in an EU-sponsored research project in the area of transport industry, including aeronautical and marine. India and with the USA are the only two nations, which are in the exclusive list of countries outside the EU nations that have received this previlege to take part in the research project.

The proposed project, called Fireproof, will develop a universally applicable regulatory framework for maritime fire safety based on probabilistic models and numerical models of ignition, growth and impact of fires. The framework will be similar in principle to the well established probabilistic damage stability regulation. The project would develop risk metrics that would serve as statutory regulations applicable even to novel and unprecedented designs. It would also offer designers greater freedom while enforcing a greater level of safety. Meanwhile, IRS. has opened its first European office in 28 May to service European operations. So far the institute has seven offices across the world and it plans to open offices in The UK and The US shortly.

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Government Supports and Actions:

High court ruling to come handy to importers caught on IE code muddle The Economic Times - 01 June, 2009 MUMBAI: In two landmark judgements on alleged fraudulent use of import-export code (IE code) for importing goods at Nhava Sheva, Bombay High Court has ruled that there is no rule or regulation for the Customs to hold back imported goods for which duty is paid and where the IE code is valid. Further, it said verification of the code is the job of director general of foreign trade (DGFT), which is the issuing authority. It, therefore, directed the Customs to release the goods within 48 hours. The court said only DGFT can take appropriate actions in case an IE code has been allotted on the basis of incorrect information furnished by the importer/exporter. What makes the early May judgements remarkable is that they clarify an important issue which, according to a trade functionary, has been holding up more than hundreds of containers in different ports of the country for more than a year. These goods, a majority of which have piled up in Nhava Sheva, have been attracting huge demurrages and other charges for non-clearance.

Imported goods started piling up following directorate of revenue intelligence (DRI), the investigating agency of the Customs for safeguarding against revenue losses, detecting a number of cases where peRs.ons, who do not have their IE codes in their own names but used the ones issued to others. The agency then directed its commissioners at different gateways not to allow clearance of such goods on the ground of national security. Citing IE code violations, the Customs has not allowed release of the goods even after payment of duty. In one case, for example, a petitioner had imported goods for which he had paid duty as per assessment carried out by the Customs. It added, "Imports have been done in the name of the petitioner but for some other person. In so far as respondents /Customs authorities is

concerned, they have not pointed out to us any provision under the Customs Act or any rule or regulation framed thereunder by which the person having valid IEC number and having paid the Custom duty is prevented from importing goods. At the highest, if the petitioner has obtained IEC number by misrepresenting the ministry of commerce and industry and DGFT, it is for that body to take action....

As things stand, the Customs has not released the goods within the stipulated timeframe set by the order. Accordingly, it is learned from reliable sources, a contempt petition has been filed in the court by one of the petitioners and it will be taken up for hearing when the court resumes work after its holidays on June 7. According to Customs sources, the department is planning to file a revision petition in the court. Mean while, the Nhava Sheva Customs (Mumbai Zone II) has undergone a facelift with an entirely new team at the top. After KR Bhargava, who took over charge as chief commissioner, AK Das, commissioner - import, and VK Sinha, commissioner - export, have joined his team recently. "What the present cases underscore is the fact that age-old laws are being interpreted and implemented by multiplicity of agencies, creating confusion and untold miseries for the trade," said a Customs consultant, on the condition of anonymity. "It once again points to the fact that it is time we revised the rules as per trade realities," he added.

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Newly appointed shipping minister firm on Sethusamudram Project Times Shipping Journal 05 June, 2009 GK Vasan, the newly appointed Shipping Minister of India, has declared that the shipping industry will make every possible effort to implement the controveRs.ial Sethusamudram Ship Canal Project (SSCP) for the benefit of the larger segment of the shipping companies in Tamil Nadu. According to Mr. Vasan, the Ministry of Shipping (MoS) is currently waiting for the RK Pachauri committee to submit its report on various environmental issues that have been raised by environmentalists in the country. The Supreme Court has already given its verdict in favour of this project. The Shipping Ministry sees the SSCP as one of the most ambitious projects that it has undertaken in the recent past. Shipping companies, especially those operating in the Tamil Nadu region, will benefit immensely once the proposed project is implemented. At present, the project has been at the receiving end of strong opposition from religious groups and environmentalists.

TN Rajagopalan, Managing Partner, Trinitys Clearing and Shipping Agencies, a mid-sized shipping and forwarding company in Chennai, Tamil Nadu, says, There is no doubt that shipping companies operating in Tamil Nadu and in other parts of India will benefit once the project is completed. The proposed channel will cut short the sailing route to nearly 254-424 nautical miles, which is approximately 21-36 hours of sailing time. This will save the operation cost of shipping companies, mainly the mid-sized players to a considerable extent.

AV Abdullah, Senior Manager of YK Shipair Travel and Cargo Agencies, a small-scale shipping firm in

Tamil Nadu, says, A huge amount of savings in transportation cost will boost the profit margins of not only shipping companies but also manufacturers. importers and exporters. The SSCP will encourage maritime trade in Tamil Nadu, and at the same time, contribute enormously to the countrys economy.

The implementation of SSCP will give the Indian fishing boats the liberty to pass freely through the north of Adam's Bridge, which is still not possible today. Moreover, the project will also lead to the development of several minor and private ports in Tamil Nadu.

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UPA to bring back past glory of Kolkata Port trust The Economic Times - 06 June, 2009 KOLKATA: The UPA government would make take all possible steps to bring back the past glory of Kolkata Port Trust (KoPT), minister of state for shipping Mukul Roy said here on Saturday. A project to dress up the riverfront in key towns along the Hooghly river seems to be also on the ministers mind. Mr. Roy held a meeting with senior KoPT officials today and assured them that the government would look into the pending projects and issues concerning the port, which is the countrys only riverine facility. There are proposals for a container terminal at Diamond Harbour and few additional jetties outside the lockgate of Haldia Dock Complex.

"The government would like KoPT officials to take up a beautification project along the river Hooghly," Mr. Roy said later at Trinamool Congress Kalighat party office. The shallow draught of the Hooghly has been a key issue and the minister instructed KoPT officials to address this problem post haste. On Haldia dock, he said, five dredgers are at work and the number would be increased to seven or eight. The Kolkata port has two dock systems -- Kolkata dock system at Kolkata and a deep water dock system at Haldia Dock Complex.

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Shipping Ministry to award Rs. 3,300-cr projects in 100 days PTI - 07 June, 2009 NEW DELHI: As part of the first 100-day 'action programme' of the government, the Shipping Ministry would award projects worth more than Rs. 3,300 crore for developing and upgrading container and cargo terminals at various ports in the country. "We will issue Letter of Award for six projects within the next 100 days for various ports, apart from initiating the process for awarding another 23 projects," a senior official said. The six projects to be awarded within the next 100 days include development of a container terminal at Ennore, North of Chennai, at an estimated cost of Rs. 1,407 crore. Also included in the plan is the construction of deep draft iron ore berth at Paradip at an estimated cost of Rs. 591 crore. It will have another project for construction of deep draft coal berth, estimated to cost Rs. 479 crore.

Other projects include conversion of a general cargo terminal into a container terminal at Tuticorin Port (Rs. 312 crore), setting up of mechanised iron ore handling facilities at New Mangalore (Rs. 277 crore) and development of berth for handling bulk cargo at Goa (Rs. 252 crore).

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Trinamool win to infuse new life into Haldia port Times Shipping Journal 23 June, 2009 The dry spell at Haldia port looks likely to end with the Trinamool Congress (TMC) pulling out all stops to revive the port and ensure that it does not turn into a minor port. Haldia port, the second most important port in West Bengal in terms of tonnage handling, was fast becoming unviable owing to escalating maintenance costs over dredging. Things took a turn for the worse when former Shipping Minister TR Baalu considered a proposal to transform Haldia into a barge port. However, several large and mid-sized logistics service players. and container handling companies voiced their opposition to the move as it would have had a direct impact on their cargo handling business. Nonetheless, the scenario has changed at present with TMCs Mukul Roy becoming the new minister of state for shipping. D Mukherjee, Executive Director of Tara Marine Syndicate, a mid-sized container management company in Haldia, says, The presence of a state representative in the shipping ministry will help in pushing the long-pending issues pertaining to the port. We appreciate Mr. Roys efforts to fast-track the development of Haldia Port by meeting with experts and dock officials to discuss various pressing issues and their possible solutions.

Amit Ghosh, VP-Logistics, TKM Global Logistics Ltd., a mid-sized shipping and logistics company in Kolkata, says, The earnings from Haldia port account for a significant contribution to the economy of the state in particular and eastern India in general. Much of the areas trade is carried out through this port, which has received negligible attention over the years. The deteriorating condition of the port due to delays in terminal development related decision-making is also affecting a large number of container handling companies operating in the port. Experts from Kolkata Port Trust are considering developing a new channel next to the Auckland channel. This would be a viable solution to the persistent problem of silting that is blocking the entry route to Haldia port.

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Corpus for tonnage acquisition mooted Exim News Service 28 June, 2009 NEW DELHI: The Union Ministry of Shipping (MoS) has suggested the setting up of a finance corporation or a dedicated corpus under a refinancing corporation to provide funds to the shipping

industry which is finding it extremely difficult to source funds to acquire tonnage. If the suggestion is approved, the government may create a separate shipping finance corporation or ask agencies like India Infrastructure Finance Corporation Ltd. to keep aside a certain portion of its corpus for the industry.

A proposal in this regard has been submitted to the Finance Ministry, a senior official disclosed. The proposed agency may help shipping companies arrange long-term debt "at a reasonable cost" as finances for the sector from the international markets have all but dried up.

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PPP port projects to come under MoS scanner Exim News Service 29 June, 2009 NEW DELHI: As part of the Union governments 100-day programme, the Ministry of Shipping (MoS) will review the various port projects proposed under the public-private partneRs.hip (PPP) mode, the Union Shipping Minister, Mr. G. K. Vasan, said. He admitted that there had been delays in implementing PPP projects. According to the Ministry of Finance website, there are 10 PPP projects involving investments of Rs. 17,037 crore till 2010. These include three container terminals, two dry bulk cargo berths, one multi-purpose cargo berth, two mechanisation of cargo berths, one construction of cruise terminal and one development of waterfront.

As on March 31, ten projects worth Rs. 4,430 crore were under the bidding and implementation stages. These include three container terminals, one liquid cargo berth, four dry bulk cargo berths, one multipurpose cargo berth and one project for mechanisation of cargo berth. There are 17 projects, estimated to cost Rs. 5,150 crore, awaiting bidders. These include seven container terminals, one container freight station, four liquid cargo berths and five dry bulk/general cargo berths.

Top MoS panel examining ways to improve Major Ports efficiencies, capacities & earnings Captive land use policy in sharp focus Exim News Service 29 June, 2009 NEW DELHI: A committee formed by the Ministry is reportedly considering proposals on a revised land use policy for Major Ports, which are under the Union governments jurisdiction. The existing policy discourages Major Ports from taking decisions on issues that can improve their capacity and earnings. The committee was set up in January, with officials from the Shipping Ministry and Major Port Trusts as members to recommend ways to improve efficiencies of the Ports. The proposed policy may also outline processes for taking decisions on issues such as leasing land beyond a 30-year period, provision of way-leave permissions for laying pipelines, allotting land on nomination basis for captive

use and provision of lease within Customs-bound area for setting up basic facilities.

The clarity in land policy will help cases like Neyvelli Lignite, which is to set up a captive facility in Tuticorin Port, an official said. A captive use policy will allow Port Trusts to hand over the waterfront or port facilities to a public or private enterprise on a nomination basis without going through the competitive bidding process. Major Port Trusts usually hesitate taking decisions on captive facilities if there is no bidding. There is a need to computerise the entire land management system on the part of a port, a source felt. The committee is also considering whether port authorities should be allowed to provide land on lease basis within the Customs-bound area for over 11 months. Now, structures such as conveyors, silos, pipelines and temporary transit sheds are required for sustained use, while a licence to do so is given for just 11 months. Because of this time-limit, investors are unwilling to construct these structures. In such a situation, either the Port Trust should remove the time-limit or should itself create such structures and recover the cost through user charges, it is felt.

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Others:

MISC refitting boxship as armed escort to combat pirates Exim News Service 08 June, 2009 KAULA LAMPUR: MALAYSIAs MISC Berhad is reportedly refitting one of its containerships as an armed vessel to combat pirtes off the Somali coast in the Gulf of Aden. After pirates seized two of its ships, the ocean carrier had decided to take effective steps against the buccaneers. The Royal Malaysian Navy and National Security Council will advise on the refitting and manning of the "auxiliary" ship, which will be manned by MISC personnel, but trained by the navy, the report elaborated. Under international law, an "auxiliary" ship is a vessel "other than a waRs.hip, which is owned or under the control of the military. It is operated by the government and thus, the ship is accorded sovereign immunity," the report added.

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Pirates board & make off with engine parts Exim News Service 09 June, 2009 SINGAPORE: Pirates boarded the Panama-registered bulk carrier Garnet outside port limits (OPL) anchorage off Tanjung Ramunia and Tanjung Ayam on the south-east coast of Johor and made off with some engine parts. The pirates, numbering about seven or eight, were armed with knives. The ship had sailed from Cambodia and had been anchored there for a few days waiting to discharge cargo at Singapore. The pirates boarded from the stern, entered the engine room and tied up the duty oiler who

was in the engine spare parts store room. They took away some engine spare parts.

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InterManager coming to grips with criminalisation of crew Exim News Service 10 June, 2009 LONDON: InterManager, the international trade association for in-house and third party ship managers, has underlined its commitment to ridding the industry of crew criminalisation by creating an industrywide think-tank that it hopes will translate its findings into international law. It has created a new criminalisation workshop that will bring together experts from all areas of the shipping industry managers, P&I Clubs, shipowners, maritime unions and regulatorsto find ways to protect the seafarers. Headed by Mr. Brian Martis, Director of Monaco-based manager of V. Ships, the workshop will develop proposals, to be presented to the International Maritime Organisation (IMO) that can then be integrated into future maritime legislation to protect the well-being of the seafarers.

InterManager has been scathing in its criticism of the unfair criminalisation of seafarers., especially in the aftermath of the Hebei Spirit case. Hebei Spirit Master, Capt. Jasprit Chawla, and Chief Officer, Mr. Syam Chetan, were cleared of blame in April by the South Korean Supreme Court, for that countrys worst-ever oil spill last December. However, they remain unable to leave the country pending a lower court decision. This latest move underlines InterManagers pledge to defend seafarers. rights wherever they are in the world and from whatever nationality. Mr. Guy Morel, General Secretary of InterManager, said, "We are very concerned because we need to protect our crew. They are our peopleour colleagues and also our responsibility.

"We also want to ensure that new regulations will demonstrate to potential seafarers. and youngsters. that they can consider this industry for a career without fear of unfair imprisonment." InterManager, whose members. represent a worldwide fleet of some 3,000 vessels and more than 125,000 crew, believes the plight of the Hebei Spirit pair has already had a detrimental effect on recruitment at a time when seafarers. are in short supply. "How can we encourage young people to take up a career in shipping when they see experienced and innocent crew criminalised in this way?" Mr. Morel asked.

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VCT reserves plot for saplings Exim News Service 10 June, 2009 VISAKHAPATNAM: The Visakha Container Terminal Pvt. Ltd. (VCTPL) has observed the World Environment Day by reserving an area of 100 x 10 metres to plant saplings. Mr. M. Ponnuswamy, Commissioner of Vizag Customs, inaugurated the function by a symbolic planting of a sapling. Later, in a meeting held at the terminal, Mr. Ponnuswamy lauded the terminal administrators for playing a

constructive role in safeguarding the environment for the future. The Commissioner distributed prizes to the winners of competitions held on the occasion.

Mr. Ravikumar, Vice-President of VCTPL, said the plantation programme was a regular affair in the terminal. Mr. Sushil Mulchandani, Deputy COO, participated in the function. Mr. Satyanarayana, Safety Manager, organised the meet. The prize winners included Ms. Kavitha, Mr. Aryan, Ms Ruchika Mulchandani and Mr. Aiyaswamy.

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Mercator augmenting fleet in crunch times Exim News Service 11 June, 2009

MUMBAI: Even as the shipping industry is grappling with the economic downturn by either disposing of some of their fleet or cancelling orders for newbuildings, Mercator Lines Ltd. is reportedly planning to acquire three gearless post-Panamax bulk carriers at a cost of around Rs. 500 crore. The acquisition will be on charter basis and add 2.77-lakh DWT to the companys capacity. In the tanker segment like Suezmax, freight rates have plunged to about $ 2,580 per day, as against $ 84,790 per day a year ago. Mercator is trying to face this difficult situation by going in for long-term contracts with its main customers. As with all its dry bulk acquisitions, these additional vessels would also be under its Singapore-listed subsidiary, Mercator Lines (Singapore).

Of the three proposed acquisitions, two are from the New Yangzijiang Shipyard in China, which will remain with Mercator until 2014. The third vessel is from Sungdong Shipyard, South Korea and will be on a charter with Mercator until 2020. The capacity of the companys dry bulk fleet now is around 1.2million DWT. Mercators own fleet comprises 12 tankers with a combined capacity of 13.7-lakh DWT, 12 dry bulk vessels with a combined capacity of 8.98-lakh DWT, four dredgers with a combined capacity of 31,854 cubic metres and a 350-feet oil jack-up rig.

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Cochin Port strike over e-port fears ends Exim News Service 11 June, 2009 KOCHI: The trade unions at Cochin Port have called off the agitation following an agreement reached with the Port management on June 8. The workers were agitating against the new manning scales recommended by the National Industrial Tribunal Award and implemented by the Cochin Port Trust (CoPT).

The trade unions had raised certain apprehensions about implementation of the e-port project, including

the possibility of retrenchment and curtailment of promotional avenues of employees. The management allayed these apprehensions, a release issued by CoPT said.

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Vizag Port takes another shot at promoting green environment Exim News Service 11 June, 2009 VISAKHAPATNAM: The Visakhapatnam Port Trust (VPT) celebrated the World Environment Day recently with the VPT Chairman, Mr. Ajeya Kallam, launching the dust pollution mitigation work. He inaugurated the pump house which has a 1,00,000-litre capacity groundwater tank and a water filling station which allows lorries to sprinkle water over the iron ore stacks and on roads in the ore handling complex (OHC) area to control dust pollution from the iron ore plots. Saplings were planted along the GCB area abutting one town area and Coast Guard road along the south of the flyover opposite Essar.

Prof. T. Shivaji Rao, Chairman, Environment Monitoring Committee of VPT, Prof. S. Ramakrishna Rao, head of sub-committee on ambient air quality, Dr. B. S. Sastry, head of sub-committee on Green Belt Development, and all heads of departments at the Port, senior officers, trade and workers participated in the tree plantation programme.

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InterManager to try for clean chit to released Indian seafarers. Exim News Service 14 June, 2009 SEOUL: The release of Capt. Jasprit Chawla and Chief Officer Syam Chetan of the Hebei Spirit last week, after an enforced stay of 551 days in Korea, some of it in jail, has been hailed by the global shipping industry. The two officers had been incarcerated following the Hebei Spirit spilling oil after a collision with a Samsung vessel in December 2007 off the Korean coast, an accident which most agree was the fault of the latter. The release follows the Appeal Court of the Daejeon District Court 1st Criminal Division in Korea finding the two senior officers not guilty of the crime of destruction of property, following the ruling by Korea's Supreme Court that the two should never have been imprisoned.

InterManager, the international trade association for in-house and third party ship managers, has vowed to work to clear the records of the two officers.. InterManager President, Mr. Roberto Giorgi, pledged, "We will work hard to exonerate these two professional men and to clear their career records." Welcoming their release, Mr. Giorgi added, "The most immediate priority is to get the men safely home to their families and friends in India." After that, he said, InterManager will investigate whether European Maritime Labour Convention legislation can be used to address the global issue of criminalisation of seafarers., something InterManager has been campaigning strongly for. The case was referred back to

the Appellate Division of the District Court on April 23 this year by the Supreme Court for further review when they found that the two officers. could not be jailed as they were not responsible for the destruction of property, the only crime carrying a custodial sentence.

While the verdict enables the two officers. to return home, the charges of causing pollution still stand and many shipping industry associations globally have expressed their determination to work towards having these charges removed from the officers. records. According to a senior official of a shipping industry body, the verdict will be welcomed by everyone in the shipping industry and beyond who saw the jailing of the two officers. last December by the Korean Appeal Court, after already having been detained in Korea for a year, as a gross miscarriage of justice and a case which should never have come to Court.

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Pirates infest new waters - German ship off Oman hijacked Exim News Service 16 June, 2009 MUSCAT: SOMALI pirates have seized a German-owned cargo ship, Charelle, off Oman, the first recorded attack in waters far from their usual Somali coastal habitat. "This is the first case outside normal operations area of the pirates," remarked Lt. Cmdr. Alexandre Fernandes of Portugal aboard the frigate Corte-Real, part of the North Atlantic Treaty Organisations (NATO) flotilla deployed against the pirates. "They are probably looking for other areas where there are fewer patrols by warships." The Charelle was attacked 60 nautical miles south of Sur on the Omani coast. The ship is now heading southwest towards Somalia, Cmdr. Fernandes said. It is not known yet how many crew are aboard or what their nationalities are.

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Worlds biggest boxship makes maiden call at Jebel Ali Exim News Service 16 June, 2009 DUBAI: THE 11,000-TEU Emma Maerskthe worlds largest containeRs.hipreportedly called in at Jebel Ali port for the first time. The Emma Maerskis nearly 400 metres long and 56 metres wide, with 30 cabins on its 22 floors. While the ship was making a once-only call, a MaerskLine official indicated that more of the lines megaships may dock at Jebel Ali in the coming months en route from the Mediterranean to India and the Far East because of increased demand in the region.

"Dubai is the largest transhipment and trading hub in west central Asia and Jebel Ali port plays a key role in this development," explained Mr. Robert Uggla, Managing Director of Maersk UAE. "As the leading carrier in the Middle East, MaerskLine is recently offering improved transit times to Europe and

west Africa," Mr. Uggla added.

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Shipping industry asks for setting up of fund PTI 21 June, 2009 MUMBAI: The shipping industry on Sunday asked the government to set up a fund to help the industry to get finances for projects with loans increasingly drying up. The Indian shipping industry finds it difficult to raise money from the global market because of the global economic crisis triggered by the collapse of Lehman Brothers in September 2008. "Many western banks have received loans from their respective governments. The government nominees in these banks insist on giving loans only to projects in their countries," Shipping Corporation of India, Chairman and Managing Director, SC Hajara told media.

The Indian shipping industry would have to invest USD 20 billion in the next few years to modernise its fleet and acquire new vessels. Indian shippers raise funds from the global market, preferably Europe, because interest rates are cheap and repayment can be done through a longer term. Indian banks and financial institutions do not have an appetite to lend to shipping companies, Hajara said. With no global finance and no domestic finance, raising debt for Indian shippers has become difficult, he said. Many years ago, there was a shipping fund for the domestic industry. But it was merged with ICICI Bank. Since then there has been no shipping fund.

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Shipping and logistics cos oppose tariff revision in Kochi Port Times Shipping Journal 23 June, 2009 A general tariff adjustment decision taken by the Kochi port authority has irked shipping companies and logistics service providers (LSPs) operating in the port. In order to resolve the issue, the Tariff Authority of Major Ports (TAMP) had called a meeting of shipping and logistics firms and the terminal operator on June 20 in the ports premises. Apart from big companies, small and mid-sized players have also expressed their concern over this issue. Ajai Joseph, the Chairman and CEO of Consolidated Shipping Line (India) Pvt. Ltd., a mid-sized shipping and logistics company in Kochi, says, Considering the current global economic slowdown and the slump in the cargo handling business, a 40% hike in tariff is absolutely impractical. If such a policy is introduced without any revision, it would prove disastrous, particularly for the small and mid-sized shipping and supply chain companies, who are already finding it difficult to sustain normal business.

At present, when the port is witnessing an acute shortage of cargo handling orders, increasing container-related charges would intensify pressure on the shipping and logistics firms. While the port

handled 15.75 million tonnes (mt.) of cargo in 2007-08, the same figure has declined by 3.34% to 15.23 mt in 2008-09. M. Bhasker Kini, CEO of Kin-Ship Services (India) Pvt. Ltd., says, Earlier large volumes of cashew imports and exports took place through the Kochi port. However, Tuticorin port has recently overtaken Kochi in the race for cashew shipments, delivering a severe blow to the business of companies that handled such consignments. With the implementation of the proposed tariff policy, shippers would be forced to divert cashew consignments through other ports, thus worsening the prevailing conditions. In February 2007, Kochi port proposed to hike the tariff by 40%, which was subsequently approved by the TAMP. However, if the port increases the rate any further, it will translate to a total hike of 80% within a four-year period.

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Mega port Vizhinjam teeters on the brink The Economic Times - 24 June, 2009 THIRUVANANTHAPURAM: Keralas infrastructure sector appeared on the brink of a major setback today as its dream project of the Vizhinjam container terminal here seemed to teeter on the brink, with unconfirmed reports that the winner in the original bid, Lanco Kondapalli Power had opted to withdraw from the project. Officials of Lanco Kondapalli Power could not be contacted despite repeated attempts, but senior officials in Vizhinjam International Seaport (VISL), the nodal agency for the project, told ET that a letter had been received from Lanco though its contents were not revealed. It is learnt that Lanco may have been upset about the inordinate delay in the final award of the contract.

The project, with an outlay of over Rs. 5,300 crore, had been embroiled in a series of controveRs.ies, and if Lanco withdraws from the project, it would bring to nought years of efforts by the state to realize the long-standing port project that is considered to have the potential to change the face of Keralas capital city. The rumours of Lancos withdrawal follow litigation by Mumbai-based Zoom Developers, which had contested the original award of the contract to Lanco overlooking its own bid. Following a Supreme Court directive, the state government had later set up an evaluation committee to re-evaluate Zooms bid. The official report of the evaluation committee is yet to be released but there have been widespread reports that Zoom had failed yet again to qualify for the project. Following those reports, Zoom Developers CEO Anil Thampy had said his company would move the courts again if the companys bid was rejected again. Lanco director Sanjay Joshi had told ET last week that his company was ready to fulfill the required financial obligations if his company were indeed chosen to undertake the project. VISL officials said if Lanco decided to withdraw from the project and the re-evaluation of Zooms bid found that company short of requirements, the project would have to be initiated from the beginning all over again. The Vizhinjam project, envisaged in the public-private partneRs.hip mode on build-operate-transfer basis, was expected to have a Rs. 2,400 crore outlay in its first phase. The proposed port has the advantage of a 17-metre natural draft, and the project has the potential to generate 5,000 direct jobs and 1.50 lakh

indirect jobs.

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VCTPL celebrating 6th anniversary tomorrow Exim News Service 24 June, 2009 VISAKHAPATNAM: The Visakha Container Terminal (VCT) here is celebrating its 6th anniversary on June 26. The celebrations will begin with a Pooja at 0900 hrs. A blood donation camp has been organised on Friday between 08.00 hrs. and 12.00 hrs. Mr. Ajeya Kallam, Chairman of the Visakhapatnam Port Trust (VPT), will inaugurate this camp at 08.00 hrs. at the VCT premises. VCTPL has invited the maritime fraternity to attend the Pooja as well as the blood donation camp.

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Shipping cos harbouring credit concerns Times Shipping Journal 25 June, 2009 The bleak market scenario has dashed the hopes of Indian shipping companies who were in expectation of an imminent revival. With commodity trading picking up slightly in the domestic market and major ports in the country showing improvements in cargo throughput, the shipping companies in India were anticipating normalcy to resume soon. However, with the global market still showing some weakness, the fund flow for the shipping industry is slowly drying up, slamming the brakes on the industry players expansion plans. The situation is worse for several mid-sized shipping firms in the country who are in desperate need of loans to sustain their operations.

AV Abdullah, Senior Manager of YK Shipair Travel & Cargo Agencies, a mid-sized shipping and forwarding company in Chennai, says, The domestic shipping companies, especially the mid-sized ones, are literally fighting to survive in these tough times. Over the past few months, the cargo business has reached a state of near stagnancy, compelling these companies to halt their normal operations. Moreover with difficulty in getting funds, the fear of a complete shutdown is lurking over these shipping firms.

Govt. help sought To prevent the crisis from worsening, the shipping industry has sought the governments help in setting up a fund to provide timely and adequate credit to shipping companies to finance their projects. The industry needs funds worth $20 billion in the next few years to acquire new vessels and upgrade the existing fleet. In such a scenario, the contraction of credit sources is a serious concern as it will impede the industry development, says, Vishal Patel, proprietor of Xpress Shipping & Logistics, a small-scale logistics company in Ahmedabad. Very few Indian banks and financial institutions are keen to extend loans to shipping firms at the moment. This leaves these cash-strapped players with no other option but

to raise funds through external borrowings, particularly from the European market. The interest rates in the global market are comparatively lower and the repayment period is longer, thus easing the financial burden on Indian shippers..

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Dhoot could join battle for Great Offshore PTI - 25 June, 2009 NEW DELHI: The battle for Great Offshore is likely become more intense now as Videocon Chairman Venugopal Dhoot has dropped hints that he could join the race for the integrated oilfield services provider. "I would not sell my 3 per cent stake in Great Offshore. Now, whether I should go for bidding or I should keep it that will be decided only tomorrow. I am meeting my merchant banker for advise on this," Dhoot told PTI when asked if he was interested in bidding for stakes in Great Offshore. Two days ago Great Offshore found itself in midst of a battle between Bharti Shipyard and ABG Shipyard for acquiring controlling stake in the oilfield services provider.

After acquiring an additional 5 per cent stake in Great Offshore through open market transactions on Tuesday, Bharti, which had also announced an open offer at Rs. 344 a share, had hinted at revising its offer price upwards above Rs. 403 a share. It did so to counter a bid on the same day by ABG Shipyard which announced an offer at Rs. 375 a share. Both ABG and Bharti are more than keen on Great Offshore, which analysts said, is a great buy at current levels with its good assets.

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Stagnant tonnage awaits Budgetary stimulus to grow Exim News Service 28 June, 2009 HYDERABAD: Domestic shipping tonnage has remained flat during the last five months of this calendar year, thanks to the funds crunch and the global recession. Although, the number of ships in the national fleet has marginally increased, the gross tonnage (GT) has hovered around 9.3 million tonnes during January-May. Industry watchers attributed this to the fact that a bulk of the purchases consisted of offshore vessels, which add to the numbers, but not to the gross tonnage. Industry analysts feel that the growth will remain subdued for the rest of the year, with shipowners access to funds unlikely to improve significantly. The industry is hoping to get a stimulus package in the July 6 Budget that may trigger a buying spree.

In 2008, the shipping industry grew by a meagre 0.27 million GT, the combined tonnage increasing from 9.03 million GT in 2007-end to barely 9.3 million GT towards the end of 2008. In terms of numbers, ships increased from 850 to 912 as on January 1, with most of them being small sized. From 9.32 million tonnes as on February 1, 2009, GT has dipped to 9.28 million tonnes by the first week of June,

although the number of ships increased from 916 to 938. The government had targeted a fleet of 12 million tonnes by 2012 as part of the 11th 5-year Plan.

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Ports Regulatory Authority Bill proposes stiff fines for violating instructions Exim News Service 29 June, 2009 NEW DELHI: The proposed Ports Regulatory Authority Bill, when implemented, will fine Port authorities and private operators up to Rs. 1 crore if they violate orders of the port regulator, it is learnt. At present, the maximum penalty is just Rs. 10,000. And, in case of penalty for evading payment of rates, etc., the fine may extend to 10 times the amount of rates, subject to a minimum of Rs. 500. The Bill will replace the Major Port Trusts Act, 1963, relating to the working of the Tariff Authority for Major Ports (TAMP).

"If a person violates the Scale of Rates or contravenes the directions or fails to comply with the order of the Authority, such person shall be punishable with fine which may extend to Rs. 1 crore," says the draft of the proposed Bill. The Ministry of Shipping (MoS) has invited comments from stakeholders. on the Bills proposals before July 21. In case of a repeated offence, an additional fine which may total Rs. 1 lakh per day during the period of contravention is proposed to be imposed.

In case of offences by any company, including a corporate or other associations of individuals, the draft Bill provides for punishment too. The draft Bill says in case it is proved that the offence has been committed with the consent or connivance of, or is attributable to such neglect on the part of any officer, other than the head of the Port Authority, such officer shall also be deemed guilty and would be punished.

In case of the Port Authority committing the offence, it says, "...head of the Port Authority shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly, unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence."

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Shipbreakers plan to oppose ratification of IMO convention The Economic Times - 29 June, 2009 MUMBAI: Indian efforts to approve and ratify the latest International Maritime Organisation (IMO) convention on ship recycling, which, according to the agreement, should start with right earnest from August, is not going to be a smooth affair. A majority of Indian recycling industry players are up against ratifying the convention, as it contains some controveRs.ial clauses, a few of which are so detrimental that they could eventually lead to the closing of the shipbreaking industry in India, Pakistan and

Bangladesh. In fact, Indian players have voiced their concerns at the second national workshop of the IMO, held in February this year in Mumbai to finalise the draft of the convention. Despite the promise to incorporate necessary changes, they feel, the convention was adopted without the necessary changes at the diplomatic conference held in Hong Kong in May 2009.

PS Nagarsheth, president of the Iron Steel Scrap & Shipbreakers' Association of India, said, "The industry is totally against the convention. We, along with our colleagues, are planning how to protest. We need to have a strong strategy because sometimes what happens is that concerned officials take advantage of the difference of opinion among the members. of the industry. So, under such circumstances we need to take a firm stand." According to Mr. Nagarsheth, there are three primary issues. He said, "the Indian submission about gas-free of hot work was not accepted. The gas-free for hot work certification is very important from the point of avoiding adverse impact on environment resulting from oil seepage and also from the point of workers' safety. Secondly, the clause on entry of a force is not very specific and cumbeRs.ome," he said. The provision controls not only how many states need to join the treaty to bring it into force. "More seriously, the underlining tone of the convention is against beaching method though it is not spelt out," he said. In bleaching, ships are dumped at high tide and then allowed to drift to beaches to be taken apart. It is a practice that environmental and rights groups want the IMO to ban. Most of the developed countries practice floating method for shipbreaking.

According to Mr. Nagarsheth, the way the deliberations are going on than a ban of the beaching method may come as an amendment to the convention in future to prohibit the method altogether," he said, adding, "So, it is advisable to oppose the convention itself to avoid any future setback." If the beaching method is not accepted, India, Pakistan and Bangladesh will have to close down their shipbreaking activities, and it could happen within the next five years, he said.

According to shipbreakers based in Alang, Indian regulations are stricter than IMO guidelines. For example, India does not permit oil tankers. without gas-free for hot work and it does not exclude war ships and government vessels. "Govt. of India is always taking the side of the industry. There is no second opinion about that. But what happens in world forums where India become isolated, it is not able to put its foot down like other nations like China."

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Lanco pulls out of Vizhinjam ICTT project Exim News Service 29 June, 2009 HYDERABAD: Lanco Infratech Ltd. here has withdrawn from the proposed Vizhinjam international container transhipment terminal (ICTT) "due to long delays", Mr. V. Srinivas, Director, Corporate Affairs, Lanco Infratech, has announced. He explained that the bid for the Vizhinjam project commenced in August 2007 and Lanco consortium submitted its bid in January 2008. The consortium was selected as the successful bidder by the Kerala government in May 2008. He explained that according to the

request for proposal (RFP), the validity of the bid was eight months from the bid date.

Expressing interest in the project, Lanco had extended the bid twice by almost six months. Under bidding norms, the bidder was not obliged to extend the bid validity beyond eight months. Lanco informed the state government that since the validity of its proposal in response to the RFP expired on April 30, 2009, its offer stood revoked.

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Zoom awaits govt. response: Vizhinjam port The Economic Times - 29 June, 2009 THIRUVANANTHAPURAM: Over a week after a wave of rumours and speculation lashed the prospects of the Rs. 5,340-crore Vizhinjam container transshipment terminal near here, Mumbai-based Zoom Developers is still awaiting the result of the re-evaluation of the company's bid by a committee set up by the state government. "We have received no intimation from the authorities on the status of our bid that was being re-evaluated by a committee. We are awaiting to know how we have scored in the evaluation so that we can proceed with further steps", Zoom Developers CEO Anil Thampy, told ET. The project had plunged into uncertainty when Lanco Kondapalli Power, which had originally won the tender last year, decided to withdraw from the project citing undue delay on the part of the authorities to take a final decision on the issue, and there was speculation that Zoom Developers' bid had been rejected by the evaluation committee.

Putting on record Lanco's disillusionment with the procedural delays, company director V. Sreenivas said, "Protracted litigations and an atmosphere vitiated by baseless speculations has altered out due diligence perspectives on the project". Last week, both the ruling and opposition fronts in the state assembly had come together in a rare act of co-operation, suggesting that they should both work together to ensure that the project is realized. Among the suggestions that have come up are to ask the Centre to take the initiative in setting up the port and getting NRIs to fund the project, but the current state of affairs points to an uphill task for the state government to get the project back on track, perhaps through an international tender all over again.

The Vizhinjam project, envisaged in the public-private partneRs.hip mode on build-operate-transfer basis, was expected to have a Rs. 2,400 crore outlay in its first phase. The proposed port has the advantage of a 17-metre natural draft, and the project has the potential to generate 5,000 direct jobs and 1.50 lakh indirect jobs.

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LIC hikes stake in Bharati Shipyard to 9.66 pc Exim News Service 30 June, 2009 CHENNAI: Life Insurance Corporation of India (LIC) now has 9.66 per cent stake in Bharati Shipyard Ltd., it is reported. LIC acquired 7.21 lakh shares, or 2.62 per cent stake, at Rs. 12.05 crore through open market transactions between June 18 and 24, thus raising its stake in Bharati Shipyard. LIC had just 1.14 per cent stake at the end of March. The promoters hold 38.95 per cent stake in the company; mutual funds, including UTI, have a 25.31 per cent stake, while the foreign institutional investors (FIIs) stake stood at 4.72 per cent at the end of March. It may be recalled that Bharati Shipyard and ABG Shipyard are vying for control of Great Offshore.

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Piracy occupies top place in agenda of Middle East Workboats conference Exim News Service 30 June, 2009 DUBAI: Piracy issues may figure at the top of the agenda at the Middle East Workboats exhibition and conference in the wake of the recent attack on a German cargo vessel, the m.v. Charelle, just 60 nautical miles south of Sur in Oman. The hijacking has literally brought the issue of piracy much closer home for the regions maritime professionals. The conference will take place from October 5 to 7 at the Abu Dhabi National Exhibition Centre. Workboats are classified by Seatrade as tugs, ferries, supply vessels; police, fire, patrol, pilot, rescue and oil spill boats; along with dredgers, barges and floating cranes.

According to the International Maritime Bureau, more ships have been attacked off Somalia so far in 2009 than in the whole of 2008. There have already been 132 reported attacks in 2009, compared with 111 in 2008. "Ships must be more vigilant. The m.v. Charelle was caught unaware, without even raising any distress signals", commented Mr. Christopher Hayman, Chairman of Seatrade, the organiser of Middle East Workboats exhibition and conference. "In addition, many smaller workboats are active in that part of the Gulf. In the past they have been targeted by pirates and used as mother ships, enabling pirates to launch attacks deeper into international waters.," he recollected. Mr. William Tobin, Underwriting Manager, the Shipowners Protection, and Mr. Floyd Woodrow, Operations Director, Cerberus International, a specialist in supplying training, protection and security services, will take part in a panel discussion on piracy.

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