EQUIPMENT

loom. When loans have previously been secured for India from the Asian Infrastructure Investment Bank – where China is a key stakeholder – Modi has faced criticism as the timing coincided with the deaths of Indian soldiers at the border during clashes with Chinese troops. How heavily geopolitical blowback will weigh on future financing decisions remains to be seen.

INDUSTRIAL CORRIDOR PROGRESS

The Delhi Mumbai Industrial Corridor (DMIC) is the first of the 11 industrial corridors being implemented wherein substantial progress has been made. Of the 10 projects within the DMIC, the four that are underway are: • Dholera Industrial City, Gujarat (22.5 square kilometers). • ShendraBidkin Industrial Area, Maharashtra (40 square kilometers). • Integrated Industrial Township, Greater Noida, Uttar Pradesh (745 acres). • The Integrated Industrial Township, VikramUdyogpuri, Ujjain, Madhya Pradesh (1100 acres).

The main difference between industrial corridors and special economic zones, or SEZs, is that while industrial corridors are for the purpose of industrial development and growth, SEZs are for the promotion of exports. Currently, there are more than 250 operational SEZs in India, whereas only 11 industrial corridors are envisaged.

Freight corridors will be created to link the industrial corridors. For railways, the target by 2024-25 is to handle cargo of 1.6 billion tons from 1.21 billion tons in 2020, decongesting 51 percent of the railway network by completing additional lines and implementation of two Dedicated Freight Corridors (DFCs). Also, detailed project reports are to be prepared for 4,000 kilometers of East-West, North-South and East coasts DFCs to be built in the public-private partnership mode.

In civil aviation, the target is to double the existing aviation footprint to a total of 220 airports, heliports and water aerodromes by 2025, which would require the construction of 109 additional facilities.

Prime Minister Modi with Japan Prime Minister Kishida Fumio, at Hyderabad House, in New Delhi on March 19, 2022.

CREDIT: OFFICE OF THE PRIME MINISTER

ACCESS FOR ALL

Modi announced the plans on India’s 75th independence day, saying: “From free cooking gas to health insurance schemes, the poor of the nation know the strength of the government schemes. These schemes have expanded rapidly in recent times, but now we have to move toward saturation.

“One hundred percent of villages should have roads, 100 percent of households should have a bank account, while 100 percent of eligible persons should get insurance, pension and housing schemes. We have to operate on a cent-per-cent mode. All manufacturers should target the global market. India should become the hub of global market.”

Although the announcement was welcomed by many, some recalled how similar initiatives in the past had failed to meet their stated goals. Setbacks caused by Covid-19 that resulted with a recession last year have raised concerns, as do current geopolitical disruptions.

India’s plans also look towards energy security and tying this to the pursuit of renewable energy. The recent announcement by the power transmission and distribution business of Larsen & Toubro is one example. Larsen & Toubro’s renewables division has won an order to construct a 245-megawatt solar power project in Rajasthan in northern India. This project alone will generate business for the transport of components and supplies to the construction site as well as to the related infrastructure required to connect it with India’s electrical grid, as well as access roads and other requirements.

Ultimately the objective of the development of industrial corridors is to expand the industrial output, increase employment opportunities, provide better living and social facilities for the new and growing workforce by way of providing “plug and play” infrastructure at the plot level for industries.

While the various goals of this objective are being pursued, it is likely that the dozens of related projects will present continued demand for project cargo transportation by sea, road, rail, and perhaps even by air. BB

Thomas Timlen is a Singaporebased analyst, researcher, writer and spokesperson with 31 years of experience addressing the regulatory and operational issues that impact all sectors of the maritime industry.

Breakbulk Events & Media’s biweekly BreakbulkONE newsletter keeps the industry connected between issues of Breakbulk. Here’s a selection of recent subscriber favorites.

DREWRY DAMPENS MPV OUTLOOK AMID CONFLICT

Offshore Wind Could Provide Timely Boost for Sector

BY SIMON WEST

The conflict in Ukraine and new Covid-19 lockdowns in China have dampened the outlook for multipurpose shipping, maritime consultancy Drewry said during a webinar on the latest trends and outlook for the sector.

Susan Oatway, senior analyst for multipurpose and breakbulk shipping at Drewry, said the conflict and a fresh wave of restrictions in Shanghai amid a surge in Covid-19 cases are leading to a “multitude of ripple effects” that impact the global economy and weaken demand.

“When we last wrote our forecast report at the end of 2021, we described ourselves as ‘cautiously optimistic,’ ” Oatway said. “In the last three months – really in the last month – that has waned considerably. And it is all to do with the uncertainty in the market.”

The analyst pointed to renewables and offshore wind in particular as sources of demand that could alleviate crunch issues.

The Global Wind Energy Council has projected a 6.6 percent rise in wind power capacity over the next five years, driven partly by pledges made during COP26, but also growing global concerns on energy security that have been triggered by the conflict.

“That is only going to push the world further towards seeking out those new energy sources, because of those concerns. And that is a positive for this sector, definitely,” Oatway said. (Data from the Drewry webinar is incorporated into an infographic in UpFront, page 10.)

DEMAND GROWTH TO SLOW

According to Drewry, demand for dry cargo – made up of bulk, containerized and general cargo – bounced back in 2021 with a rise of 4.5 percent. Demand is expected to slow over the next two years, but still at an average growth of 3.5 percent per year.

“Much of the recovery we have seen over 2021 is more to do with the supply chain crunch in the competing sectors than it is with any significant volume increases. The multipurpose sector has benefited from the desperate search for space, which has resulted in cargoes that were previously containerized moving back into breakbulk vessels,” the analyst said.

“We do expect that effect to weaken over the second half of this year and into 2023.”

MPV freight rates meanwhile were likely to plateau over the first half of 2022, the analyst said. Supply chain turmoil has seen rates soar by 43 percent over the last year and by 78 percent since March 2020, according to Drewry.

Its latest Multipurpose Time Charter Index fell by 0.2 percent month on month in March to US$11,170 per day. The weakening trend is likely to continue into April, with Drewry projecting a further fall to about US$11,100.

“Russia’s invasion of Ukraine might not have a clear impact on multipurpose rates except perhaps in those short sea northern European markets,” Oatway said. “But the impact on global confidence, rising commodity prices and the competing sectors has definitely caused the recent rate rise to falter.”

The analyst warned the sector continues to suffer from a lack of newbuild development and investment, with newbuilding slots at a premium as yards remain chock full of container tonnage.

In a story in Breakbulk’s MarchApril issue (“MPV Bull Run Nearing Plateau,” https://breakbulk.com/ Articles/mpv-bull-run-nearing-plateau), Oatway said that the sector witnessed very limited speculative ordering, with owners preferring to order to replace or build with a specific commodity or project contract in mind.

“Although the short-term outlook remains weak, we do expect newbuilds to pick up marginally post-2023 when there is space available and also as the need for more eco-conscious vessels will become more pressing,” Oatway said. BBONE

Susan Oatway will be participating in two sessions on May 18 at Breakbulk Europe, presenting “The MPV Fleet: Examining the Potential Shortfall,” and as a panelist for “Managing Rates and Capacity, What is ‘Normal’?”

BREAKBULKONE

ALLELYS DOUBLES DOWN ON COMPLEX REACTOR MOVE

Hauler Carries UK’s First-ever Girder Frame Convoy

UK-based heavy haulage company Allelys used two of its specialist girder frames to transport a 150-tonne reactor and a 195-tonne transformer to an electrical substation in southeast England.

The move was the first-ever double girder frame convoy deployed on UK roads, Allelys said.

The heavy components were first carried by road from Stafford to Ellesmere Port in northwest England, loaded onto a specialist heavy-lift barge then shipped south to Shoreham Port.

The reactor and transformer were removed from the vessel using roll-on, roll-off operations, then transported again by road using the two girder frame trailers in convoy to the substation site close to the coastal town of Ninfield.

To complete the move, an overbridge over the River Ouse had to be constructed and central reservations removed. Skilled drivers meanwhile had to navigate the narrow streets and turns of the nearby towns of Polegate and Bexhill.

“This operation was extremely complex right from the start, involving several transportation stages and requiring a lot of technical operations to negotiate obstacles and structures on route,” said Zac Smout, project manager at Allelys.

“There were many pinch points along the route that the transport team effectively managed. The level of engineering and planning involved was evident through the successful execution of the project.”

Girder frame trailers are designed to “cradle” very heavy components such as transformers, generators and turbines at a height just above ground level, with the cargo’s weight distributed evenly through the vehicle’s frame and axle lines.

The trailers are commonly deployed to move cargo under low bridges, through tunnels and across weight sensitive surfaces. Allelys’ fleet of Goldhofer-manufactured trailers can carry loads ranging from 200 to 500 tonnes. BBONE

Allelys will be exhibiting at Breakbulk Europe 2022, May 17-19 at the Rotterdam Ahoy Convention Center.

Antonov loading a Turkish satellite for SpaceX delivery.

CREDIT: ANTONOV AIRLINES

BREAKBULKONE

UKRAINE CRISIS SQUEEZES AIR FREIGHT CAPACITY

Aircraft Diverted to Support Humanitarian Release Efforts

BY SIMON WEST

The conflict in Ukraine is tightening air freight capacity, with airspace restrictions and a reduced pool of aircraft curtailing options for shippers.

“Service cancellations and an increase in transit times are seeing available services at a maximum capacity as demand for space increases,” said Germany-based forwarder deugro, in a market update.

Companies originating from Russia are barred from flying in European and North American airspace, while Ukraine-based carriers have suffered grounded fleets and, in some cases, loss of assets.

Ukrainian project cargo specialist Antonov Airlines’ AN-225 “Mriya”, the world’s largest cargo aircraft, was destroyed during fighting between Russian and Ukrainian troops for control of Gostomel Airport outside the capital city Kyiv. The plane, the only one of its kind ever built, was undergoing maintenance at the time of the Russian attack.

The whereabouts of the remainder of Antonov’s fleet including its seven AN-124s has not been confirmed by the company.

CAPACITY SQUEEZE

According to breakbulk specialist Dachser Air and Sea Logistics, global air freight capacity has shrunk by about 20 percent since the outbreak of hostilities.

The use of cargo transport aircraft to deliver relief supplies to victims of the conflict is further squeezing capacities.

The number of refugees fleeing the violence in Ukraine has climbed to more than 4 million, prompting a steep rise in emergency airlifts organized by international aid organizations.

“Short-term aircraft availability is becoming scarcer as demand is rising for urgent humanitarian charters in Europe,” deugro said.

The use of commercial freight aircraft to deliver humanitarian and emergency medical provisions is commonplace.

Antonov recently told Breakbulk it had been “heavily involved” during the pandemic in the transport of medical supplies such as PPE equipment from China to Europe and the U.S.

“The cargo industry is going to have to move into yet another gear to help deal with increased demand and the smaller pool of aircraft now available,” said Ben Dinsdale, director of humanitarian services at aircraft charter company Air Charter Service, which began chartering flights with relief cargo for various aid organizations at the beginning of March.

“In a market already struggling for available aircraft due to the wellpublicized supply chain issues gripping the world, we have mobilized our cargo team and emergency response procedures to ensure we can find solutions for all relief flights heading to the region.”

COSTS AND SURCHARGES

deugro meanwhile said the conflict was pushing up transit costs for shippers, who are being forced to re-route flights from Europe to Asia amid Russian-imposed airspace restrictions.

Rising jet fuel prices are also increasing freight rates.

Sanctions cutting Russian oil exports, which account for about 8 percent of global supply, are putting more pressure on crude prices, which touched a near 14-year high of US$130 per barrel in the first week of March. deugro also warned that some carriers could start imposing so-called War Risk Surcharges for cargo transported to and from Asia.

“The overall market rates remain high and are spot rate driven making forecasting extremely difficult,” deugro said in its report.

“Shippers on long term contracts will be affected by delays and cancelations, however the price and capacity commitments will still be locked in with the carriers. Negotiations for new long-term contracts are becoming increasingly difficult.” BBONE