Marine Lines March, 2019

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Let's turn the tides

Volume:I Issue:VII March 2019

LINES

IMPACT OF GST ON INDIAN SHIPPING INDUSTRY

From the Editor's Deck MARINELINES Editor-In-Chief Girish Joshi Assistant Editor cum Business Development Executive Haresh Manjhi Design & Layout Gopi Graphics, Ahmedabad +91 98255 76265 Head Office Marine Lines 3. 2nd Floor, Plot No. 283 Madhuban Tower, 12/B Gandhidham, Kutch, 370201, Gujarat, India email: marinelines2018@gmail.com Contact : +91 99095 55416 GSTIN:24AAYPJ3678DIZC Mumbai Office 14, Ground Floor, Himalaya House, 79 Palton Road Fort, Mumbai 400001 Contact : +91 98200 03562

Dear Readers,

T

he Goods & Services Tax (GST) has been heralded as a game changer for India. While the largely unorganized logistic industry - the truckers - have been benefitted in terms of around 20 per cent reduction in travel time, the shipping sector is still awaiting to reap the benefits of India’s largest tax reform.

Ernst & Young’s report “Impact of GST on Indian Shipping Industry” is a well-researched document that sheds light on the changes required for the steady growth of this industry. In the report, E&Y experts break down the impact of GST in the maritime sector and suggest corrective measures.

The initiative of establishing a maritime university by the Gujarat Maritime Board (GMB) and intention of bridging the knowledge gap gets an overwhelming appreciation by the shipping fraternity.

The overall growth of the maritime sector is perennial to many other factors, in of it all, the fuel efficiency is the prime and core one.

Capt Shehwaz Riyaz based on his wide experience explains about how the change in fuel regulation would likely to have major impact on all related to marine businesses.

On turning pages of history one can see great transformation of techniques and skills. It tends to be written by the sailor for the sailor.

The perils of the sea are immeasurable and it’s magnitude sometimes can lead to disasters beyond the imagination of mankind.

RNI No. Under Process, Title Code: GUJENG16193 Published by Girish Joshi and printed by Print Vision Pvt. Ltd. on behalf of Girish Joshi. Printed at Print Vision House, Lane Opp to Ashwamegh Elegance 2, Ambawadi Market, Ahmedabad 380 006, Gujarat. Published from # 3. 2nd Floor, Plot No. 283 Madhuban Tower, 12/B Gandhidham, Kutch - 370201, Gujarat, India. Editor: Girish Joshi.

Girish Joshi Editor-In-Chief

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Inside 06

Cover Story:

GST: Sinking feeling for Indian Shipping Industry

22

Maritime History: The Untold Story Of India’s Titanic: How ‘Vijli’ Sunk?

12

Past Is Perfect

A Historical Maritime Law Perspective (Part II)

14 New Initiative:

Gujarat Maritime University takes off at GNLU

26 21

Expansion Plans: Drip Capital Brings Invoice Factoring To Ahmedabad

4

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Travelogue:

Himalayas are always cool

30

Health:

No Time For Gym? You Can Still Be Fit

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Cover Story

GST: sinking feeling INDIAN SHIPPING INDU E

rnst & Young (EY) recently released a sectoral study paperon the impact of GST on the Indian Shipping industry. An important aspect analysed in the report is the distinctive advantage in favour of foreign flag-ships due to non-applicability of 5% GST in case of import cargo transportation.

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E

rnst & Young (EY) recently released a sectoral study paperon the impact of GST on the Indian Shipping industry. An important aspect analysed in the report is the distinctive advantage in favour of foreign flag-ships due to non-applicability of 5% GST in case of import cargo transportation.

After the introduction of GST regime, an overseas consigner needs to pay 5% GST over and above the freight charges to a shipping company registered in India. However, the same is not applicable to ships registered in foreign countries; thereby providing a decisive competitive advantage to foreign flagsvis-à-vis their Indian counterparts.

“This could result in Indian Shipping lines losing business to foreign shipping

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lines for the import cargo transportation business. On account of this, there appears to be a disadvantage for Indian shipping lines vis-à-vis foreign shipping lines, ”says E&T Further, there will be additional burden of customs to the consigner since custom duties are charged on the basis of the final cost which includes cost, freight and insurance. This further inflates the final price to the consigner offered by Indian Flag -Ships.

Import cargo transportation services provided to overseas consignors/ charterers If the overseas consignor appoints an Indian shipping company for providing import cargo transportation services, GST would be applicable at 5% since

ing for USTRY the place of supply of services is destination of goods which is in India. In such a scenario, the Indian shipping company would typically charge 5% GST over and above the freight charges and since the overseas consignor is not registered for GST purposes in India, the overseas consignor would not be eligible for input tax credit of the GST charged.

In view of this, the effective cost of transportation services for the overseas consignor would be INR105 (assuming INR100 as freight and 5% GST on the same). On the other hand, if the overseas consignor appoints a foreign shipping line for providing the same services as above, since the shipping company is not registered in India for GST purposes, it would not charge GST on its invoice to the overseas consignor. In view of this,

the effective cost of transportation services for the overseas consignor would be INR100 (assuming INR100 as freight

The cost of transportation for overseas consignor could be higher by 5% on account of GST, if he appoints an Indian shipping line and no GST). Based on the above stated scenarios, it is evident, that the cost of transportation for the overseas consignor

could be higher by 5% on account of GST, if he appoints an Indian shipping line vs. appointing a foreign shipping line (not having any GST registration in India).

This could result in Indian shipping lines losing business to foreign shipping lines for the import cargo transportation business. On account of this, there appears to be a disadvantage for Indian shipping lines vis-Ă -vis foreign shipping lines. 31 It would be pertinent to note that even under the second scenario stated above (i.e., overseas shipping company providing services to overseas consignor), the importer of goods would be required to pay GST at 5% under reverse charge mechanism. However, as far as the overseas consignor is concerned, there would be still be a cost disadvantage in appointing an Indian shipping line vs a foreign ship-

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iff Act and under IGST Act. The double levy of IGST may only impact the working capital assuming importer has taxable supplies and is able to avail and utilize the credit of IGST paid. However, such IGST paid on import of goods and services shall become the cost if the importer’s supplies are exempt or not taxable under GST. In this regard, a writ petition has been filed before the Gujarat High Court [2018-TIOL-06-HC-AHMGST], challenging notification no.8/2017 Integrated Tax [Rate] and Entry 10 of the notification no. 10/2017 Integrated Tax [Rate]. A final verdict is yet to be pronounced.

ping. Further, it would also be relevant to note that where the Indian shipping company charges 5% GST to the overseas consignor, since the cost of freight would be higher, the custom duty costs for the importer of goods would also be higher since he would need to pay custom duties on the assessable value which includes cost, insurance and freight.

In order to address the anomaly as stated above and to provide a level playing field to Indian shipping lines, the Government should consider amending the GST law to zero rate import cargo transportation services provided by Indian shipping lines to overseas consignors by treating the services as export of services since consideration for services would also be received in convertible foreign exchange. Alternatively, this supply can be notified as an exempt supply with a proviso that the supply will not be treated as exempt supply for the purpose of reversal of input tax credits.

Inbound ocean freight in case of import of goods In case of import of goods by sea, GST is applicable on the transportation services at 5% (whether the service is 8

provided by an Indian shipping line or by a foreign shipping line). Further, in case where the value of taxable service provided by the shipping company is not available with the importer, the same shall be deemed to be 10% of CIF value of imported goods as per Corrigendum dated 30 June 2017 to notification no.

The government should consider amending the GST law to zero rate import cargo transportation services provided by Indian shipping lines 8/2017-Integrated Tax (Rate) dated 28 June 2017. In addition to the above, the valuation for calculating customs duty and IGST payable on import of goods would also include the charges for ocean freight. Payment of IGST separately for ocean freight would result in the same getting taxed twice- under Customs Tar-

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Place of supply and ITC in case of bunker fuel and other goods According to Maritime Economics

by Stopford (1997), bunker fuel cost accounts for 50% to 60% of the total cost, base of the running expenses of a vessel39 sometimes going up to even 85% of voyage costs as seen in the case of very large crude carriers (VLCC) of Maersk Tankers40. Thus, bunker fuel is a major input for shipping companies. If the shipping company opts to discharge GST @ 5%, it cannot claim credit on goods (other than those specified). Even if the shipping company, basis a possible view, opts for 18% GST with full eligibility of ITC it may still not be able to claim ITC on bunker fuel (assuming it attracts GST) for coastal shipping due to place of supply rules. Consider a vessel sailing from Mumbai Port to Chennai Port.

On the way, it purchases bunker fuel at Kochi in Kerala. CGST and SGST will apply since the place of supply will be Kerala as per place of supply provisions.

If the shipping company is registered in Maharashtra then it will not be able to claim the CGST and SGST paid on bunker fuel purchased at Kerala. While the effective consumption of the bunker fuel is happening in the State of Maharashtra for the shipping companies registered in Maharashtra the present place of supply rules specifies that the place of consumption is happening in the state in which the bunker fuel is delivered. Due to this misunderstanding the shipping companies are not able to avail input tax credits procured in other states. The same will

be expensed out and thus, will lead to an increase in the operating costs of the company. Further, there are certain bunker fuel like HSD, which are outside the purview of GST and hence attracts State VAT. In such cases, the VAT charged becomes the cost since it is not available as credit under GST. Import of vessels face IGST @5% The shipping industry is generally required to import vessels such as bulk cargo vessels, tankers, LPG carriers, dredgers, etc. from international markets. While there is uncertainty about delivery schedules, certain larger vessels are not built in India. Further, shipping companies prefer to buy second-hand vessels so that they can be immediately employed for revenue. Thus, Indian shipping lines typically procure second-hand vessels from international markets. Under the erstwhile tax regime, exemption was granted from payment of customs duty (including countervailing duty) and central excise duty on these vessels. While basic customs duty continues to remain exempt in the GST regime, there is no corresponding exemption made available in respect of IGST. While IGST on imports is levied to encourage ”Make in India” for ship building industry, exceptions have to be made to this general principle where there is no domestic manufacturing. Levy of IGST will be detrimental for the shipping companies providing transportation services. IGST @5% paid at the time of import may result in working capital blockage. Shipping companies may not be able to utilize the credit of such IGST paid on the import of ship for a long time. Shipping companies which are primarily engaged in international transportation of goods from one overseas port to another may not have output GST liability to absorb the input tax credit. Therefore, there is a need for IGST exemption similar to the one available in erstwhile tax regime on import of bulk vessels in India.

This exemption could be restricted to specialized bulk vessels used in coastal shipping and not to other categories of defense-related ships in which India is

seeking to build a presence due to legitimate security reasons. The exemption could also be allowed to vessels with more than 6,400 dead weight tonnage since vessels of such capacity are generally not manufactured in India. It is pertinent to note that no such IGST is

levied on a foreign flag vessel coming into India.

Discrimination in taxability of outbound freight in the hands of Indian shipping companies vs. foreign shipping companies If an Indian shipping company is providing services of transportation of

goods outside India (outbound freight - export cargo) by a vessel to an Indian exporter, then the place of supply of such transportation services shall be the location of Indian exporter and 5% GST is payable by the Indian shipping company. However, if a foreign shipping company is providing the services of outbound freight (same services) to an Indian exporter, then the place of supply of such transportation services will be the place of destination of such goods, i.e., outside India and thus, GST will not be applicable. This might reduce the competitiveness of the Indian shipping companies as compared to foreign companies who can carry out same activities without any taxation in India. With an intention to provide level playing field, the government has made an amendment to Section 12(8) of the IGST Act to provide that the PoS for transportation of goods to a place outside India will be the place of destination of such goods.41 However, post amendment, a reading of the various provisions of the IGST Act highlights a different situation. As per Section 7(5) (a) of the IGST Act, the supply of goods or services, where the supplier is located in India and the place of supply is outside India, is an inter-state supply and liable to

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Anil Devli CEO, INSA

Indian flag-ships have played a leading role in the ‘emerging India’ story. Non uniform taxation regime as evident in the case of import cargo transportation will dent the competitive advantage of Indian-flag ships. The presence of a strong indigenous commercial fleet is critical for the health of our economy. Hence, we urge the Government to remove such discrepancies to bring Indian flag-ships at par with foreign flagships. This will in turn secure India’s strategic and business interest in the long run.

GST. Thus, the intention of level-playing field is not fulfilled. To address the issue, the government extended the exemption to transportation of goods from India to outside India by air/sea vessel without the requirement of reversal of ITC42.

However, this exemption has a sunset clause restricting it up to 30 September 2019. The issue of non-level playing field for Indian shipping industry will however surface post 30 September 2019.

No refund of ITC for GST on outbound freight services provided to Indian customers Services by way of transportation of goods by a vessel provided by an Indian shipping company to an Indian exporter in case of exports is treated as an exempt supply till 30 September 2019 vide notification no. 9/2017-Integrated Tax (Rate) dated 28 June 2017 (as amended from time to time). Even though, it is treated as an exempt supply, ITC reversal is not required as per explanation (c) to Rule 43(2) of CGST Rules, 2017. In case shipping companies do not have sufficient taxable supplies, the above will result in accumulation of ITC thereby leading to blockage of working capital for shipping lines. Further, refund of unutilized ITC in the hands of Indian shipping company will not be available under section 54(3) of CGST Act, 2017 as it is not a zero-rated supply. Post 30 September 2019, if the exemption is not extended, the supply will become taxable and there will not be any accumulation of ITC in the hands of Indian shipping company.

Possible classification issue for bare boat charter of vessels 10

There appears to be an ambiguity on the GST rate applicable for bare boat charter of vessels. There are two possible entries under which the service could fall: 9963 - (iii) Rental services of transport vehicles with or without operators, other than (i) and (ii) above – 18% GST. 9973 - (iii) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration – 5% GST rate (i.e., the rate equivalent to the GST rate for vessels).

Given the ambiguity with respect to GST rate for bare boat charter of vessels, the government should issue necessary clarification Entry no 9963 covers rental services of transport vehicles, with or without operator. In the present case, the vessel qualifies as a transport vehicle and it is being given on hire i.e., on rent. Given this, it appears that entry 9963 could cover transaction involving hiring or renting of a vessel. However, there is another entry 9971 which covers transfer of right to use goods. It would be relevant to analyze the meaning of the term “transfer of right of use any goods”.

The said phrase or term has not been defined under the GST law. However, the test of “transfer of right to use” has been laid down by the Supreme Court in

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the case of BSNL [2006 (2) S.T.R. 161 (S.C.)]. As per the said judgment, if the goods are given to the customer for a fixed period and during the tenure of the contract, the goods are to the exclusion of the supplier of goods or any other person, the transaction could qualify as “transfer of right to use”. It appears that both the above stated entries i.e., 9963 and 9973 could be relevant for a transaction of bare boat charter of vessel. Given the ambiguity with respect to the GST rate applicable for bare boat charter of vessels, the government should issue necessary clarification.

Sale of vessel located outside India An out and out sale occurs when the vessel owned by Indian shipping company is located outside India (perhaps for a project) and the company later sells the said vessel to a foreign buyer without bringing the vessel to India. As per section 2(5) of IGST Act, 2017, export of goods means taking goods out of India to a place outside India. In the above transaction, the vessel is already located outside India and therefore, question of taking them outside India does not arise.

Hence, such a supply does not qualify as export of goods under GST. However, as per section 7(5)(a) of IGST Act, 2017, supply of goods or services or both, when the supplier is located in India and the place of supply is outside India, is treated as an inter-state supply and liable to IGST. Therefore, the above supply of vessel outside India becomes an inter-state supply subject to GST. This leads to a dichotomy since the place of supply of ship is outside India and such transaction does not qualify as an export of goods as per section 2(5) of IGST Act, 2017, but tax is payable on the said supply. An amendment43 has been made to Schedule III of the CGST Act that supply of goods from a place in the nontaxable territory to another place in the non-taxable territory without such goods entering into India, will be treated neither as a supply of goods nor a supply of services. Therefore, out and out sale of ships will not be treated as a supply under GST. Rate applicable on multimodal trans-

portation Multimodal transportation means carriage of goods, by at least two different modes of transport from the place of acceptance of goods to the place of delivery of goods by a multimodal transporter.

Notification No. 13/2018 – Central Tax (Rate) dated 27 July 2018 prescribes GST @ 12% on services of multimodal transportation of goods. Transportation of goods by vessel outside India is exempted. However, if the transportation contract includes transportation by road in India also, whether the ocean outbound transport will also be taxable at 12% as multimodal transportation or it can be treated as exempt. Thus, clarification is required from the government whether the rate of 12% can be applied in conjunction with a specific exemption notification provided on a part of the multimodal transportation.

In a high-volume, low margin business like shipping, even a 5% costing advantage gives a crucial edge to foreign shipping lines. This is against the core principles of uniform taxation which the GST regime promised to bring in. Hence, as suggested by EY an amendment of GST Law to allow zero rate import cargo transportation for Indian Flag-ship is the need of the hour to provide us with a level playing field G. Shivakumar, chief financial Officer, The Great Eastern Shipping Company Limited.

Credit on vessels used for supplying services other than transportation of goods As per Section 17(5) of CGST Act, ITC shall not be available in respect of vessels except when they are used for: Making taxable supply by way of further supply of such vessels, transportation of passengers or imparting training Transportation of goods Some vessels, like dredgers, are used for mining purposes and not for transportation of goods or other purposes specified above.

In such a case, the taxpayer may not be able to claim credit in respect of such vessels. While the intention of the government does not seem to disallow such credit, a clarification may help in this regard to avoid unwarranted litigation.

Ernst & Young Recommendation The Government should consider amending the GST law to zero rate import cargo transportation services provided by Indian Shipping Lines to overseas consigners by treating the services as export of services since consideration for services would also be received inconvertable foreign exchange. Alternativerly, this suppply can be notified as an exempt supply with a provison that the supply will not be treated as exempt supply for the purpose of reversal of input tax credit.”

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past is perfEct

A HISTORICAL MARITIME LAW PERSPECTIVE (PART II)

By Capt Alex Anthony

S

hipping, of all industries, is the most international. It has to be viewed, therefore, not from a narrow national or indeed nationalistic viewpoint, but against the broad sweep of world developments, particularly in the trade sector. After all, some 75 % of the world’s surface is covered by the vast oceans, over 80 % of world trade moves in whole or in part by sea, and since time immemorial humankind has voyaged upon these oceans for trading.

Indeed, ocean voyages were undertaken before land travel; there were sailors before farmers and shepherds; ships before settlements; and it was easier to transport goods, often over very long distances, by sea rather than over land. Methods of propulsion have, or course, evolved: originally the punt or paddle, then some 8,000 years ago the sail, then the steam engine and today the diesel engine and even nuclear power.

Maritime law, which is often referred to as admiralty law, is a fundamental branch of law that regulates commerce and navigation on the seas or other navigable waters. It covers a broad spectrum of matters such as the development of legislation, both nationally and internationally; customs and excise regulations; the fishing industry; human rights and employment issues usually relating to the crew; insurance claims; property damage; the implications of stowaways on vessels; pollution; personal injuries; wreck and salvage; piracy; and container and passenger liner matters, etc.

The origins of maritime law date back to antiquity as did trade between nations through sea transport. It thus became increasingly necessary to expand this scope of the law as no country may claim arbitrary jurisdiction over the seas. Consensus 12

between nations also became vital in the face of disputes.

With time, the principles of maritime law were developed and refined. However it must be noted that although general maritime law has developed internationally, it operates under the auspices and laws of an individual country as each nation bases its own maritime law on the general international regulations with the modifiThe exception of force majeure in contracts usually also exists which relieves a party from any liabilities or obligations whenever an extraordinary or unpredictable vent occurs, such as a war, strike, or an “act of God.” Contract of Sale (of ships), Contract of Service (towage), Contract of Lease (chartering), Contract of Carriage (of goods by sea), Contract of Insurance (marine insurance being the precursor of insurance ashore), Contract of Agency (ship chandlers), Contract of Pledge (bottomry and respondenita), Contract of Hire (of masters and seamen), Contract of compensation for sickness and personal injury (maintenance and cure) MLC 2006 and Contract of risk distribution (general average) cations and qualifications it deems essential and suitable to its particular needs.

Maritime law regulates the enforcement of contracts and commonly makes provision for damages to parties who have suffered some form of loss at the hands of a contracting party that has failed to honour or perform in accordance with their agreement. Such a contractual clause must be distinguished from the principle

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of general average which contemplates the voluntary sacrifice made by the master of the ship in respect of cargo, equipment or funds in order to mitigate further losses or damage in an emergency. The loss suffered by parties is thus shared amongst other parties who have shared in the relevant venture.

Early maritime law, as with other branches of the law, was “custom-built”; it was a series of standards which survived the rise and fall of regimes and which eventually emerged as a codification. Its history is lost in antiquity but we know that it evolved from the customs and practices of early merchants and seafarers and was largely private and commercial in character.

There is historical evidence that sea trade flourished in the ancient civilizations of India, China and the Middle East.

In the late third and the second millennium BC, there was active sea-borne trade between the peoples of the Indus Valley civilization and the Sumerians and Akkadians of the Tigris-Euphrates basin. But there is little or no record of the maritime customs or laws of those pre-historic times. The earliest recorded mention of maritime law is in the Babylonian Code of Hammurabi dating back to the period between 2000 and 1600 BC. Certain elements of what today would be termed private maritime law are seen in the early Eastern Mediterranean civilisations of the Phoenicians.

These include elements of insurance law, rules relating to salvage and to the carriage of goods by sea, compensation for seamen lost or injured and the like. A sketchy public law system also emerged in the form of protection by warships of merchant ships from pirates so as to enable them to continue to trade.

In time the island of Rhodes became the main maritime power in the Eastern Mediterranean. To it we owe the first comprehensive maritime code. This not only regulated commerce in the region for a very long time but was also the foundation of sea law for the next 1,000 years. It was probably a codification of various ancient legal principles regarding navigation and commerce. It provided for exclusive jurisdiction over its own and adjacent seas. In short, it meant freedom for its own commerce and trade but necessarily therefore, a restriction on others.

This is a concept, in part a dilemma, frequently seen during the history of maritime affairs. Even those who espouse freedom in shipping today, often really mean freedom for themselves on the back of restrictions on others.

Later, supremacy passed to the Greeks and a law governing maritime matters began to develop. This covered such elements as: The treatment of shipwrecked sailors.

The jurisdiction of those courts dealing with maritime matters.

Rules regarding blockade and piracy.

The settlement of disputes arising under maritime contracts (early commercial courts).

The role of prize courts, namely those to which recourse could be made in the event that persons felt they had been deprived improperly of their property (vessels, cargo, etc.).

There was a mixture of “private” law and “public” law elements—private in the sense that the rules governed relationships between private parties; public in the sense of governing the rights, duties and obligations of states. The Mediterranean, being bordered by many states, was common to all. The Greek policy was one of unmolested navigation, once enforced by vessels of war, later enshrined as a legal principle— an early stirring of the freedom to navigate encouched within the principle of the freedom of the seas.

The next stage in the evolutionary process was Roman maritime policy. As in English law, much of it was not codified although based on the Greek and Rhodian laws. Its strength stemmed largely from the pax romana which gave almost unchallenged security of commerce throughout the then known world. The Rhodian Sea Law was adopted by the Romans and evidence of this is found in two famous passages in the Justinian Digests regarding the law of jettison, the root of the peculiar maritime notion of general average. Piracy and brigandage had been banished and Roman commerce flourished. It is indeed most unfortunate that the menace of piracy has returned and is again rife in certain parts of the world. The contemporary problem of piracy is addressed in a later chapter under the topic of maritime security, which is a matter of major concern today.

The Roman maritime law covered inter alia:

The Sea: this should be “open”, but as it was under the strict control of the Romans, it lay within their ability to close it to others.

The Ship: ships were classified, for example, into passenger, commercial/cargo and whether inland or sea-going. The law dealt with the rights, duties and obligations of those connected with the ship such as the owner, master, crew, pilot, shippers (cargo interests) and passengers.

The Cargo: there was no obligation on the Roman ship (or shipowner) to receive cargo, but if he did then he was liable for its safety on board and for its safe delivery. It was during this period that the principle of general average probably emanated, namely that when it became necessary to jettison cargo in order to lighten the ship, this was regarded as for the good of all and accordingly compensation should be contributed by all parties to the common venture. On the other hand, no principle of salvage was known, namely payment to those assisting or saving a vessel in distress.

Responsibilities/obligations of those in shipping: this covered the rules governing chartering (hiring) of the whole or part of a vessel, the implied authority of the master, for example, to effect urgent repairs, or purchase equipment in order that the voyage could proceed; and the general subject of special loans to those engaged in maritime ventures.

Settlement of disputes: disputes arising under any of the above heads were subject to established rules of procedure and jurisdiction, but different procedures were applied depending on whether the acts or injuries were internal, namely committed or suffered on board, or whether they arose from external events such as collisions or damage by others.

Thus, an early system of law covering maritime affairs developed, much of it being relevant as the basis, in part, of the private law as we know it today.

Capt Alex Anthony, Ex-Master Mariner & Arbitrator (TO BE CONTINUED)

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bright future

Gujarat Maritime University takes off

T

he Indian Maritime sector has been consistently exhibiting strong growth and is slated to be the maritime market of the future. The establishment of Gujarat Maritime University (GMU) is an endeavour by the Gujarat Maritime Board to provide a fillip to this growth by bridging the knowledge gap within the industry.

Gujarat Maritime University has been established under the Gujarat Private Universities Act, 2009.The prime objective of Gujarat Maritime University is to be a global center of excellence in maritime education, research and development, professional training and it aims to enhance and increase the human capital and capacity of maritime industry both in India and across the globe. The aspiration is to serve the global maritime community by producing educated and well trained professionals in the maritime domain.

In the first phase, the University plans to offer programs catering to the commercial aspects of Maritime value chain like maritime law, shipping finance and economics, maritime management, logistics, ship broking, ship finance, chartering, ship management 14

just to name a few. The first phase will also have short term Executive Development Programs and Management Development Programs. The second phase will focus on the technical aspects.

School of Maritime Law, Policy and Administration - an overview of what is in the offering LLM in Maritime Law It is a little known fact that a ship can be operated from one country, flagged for operational reasons to another and then has crew from yet another nation. This makes the domain of maritime law more intricate, yet exciting to pursue as a professional.

Topics under the maritime law is extremely varied and challenging which covers a huge range of subjects likesalvage, collision liabilities, carriage of passengers, marine pollution liabilities, freezing injunctions, ship arrest, towage contracts, the limitation of liabilities and maritime liens.

An LLM in Maritime Law program would be ideal for students and professionals aiming to specialise in the shipping and maritime domain.

This course would take a student through:

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The program would also expose students to various aspects of international maritime law and the key subjects would include: Admiralty Law Where the scope includes acquisitions and transfer of interest in ships; ship mortgages; collisions; salvage; and marine pollution.

International Law of the Sea Which explores the legal framework of a range of activities Marine Insurance Law Whichexplores circumstances in which risks to parties, cargo and ships involved in international trade can be covered International Sales Law Carriage of Goods by Sea– which would offer insights into maritime law and shipping contracts, charter party agreements, marine environment, marine insuranceand a gamut of other topics of relevance which would make you stand out.

Target audience: The program would interest anyone who has a passion for shipping and the diverse legalities that ships need to comply with not just limited nationally but on an international level.

The course is also aimed to attract those who are already working in the industry but strive to get on to a very exciting and challenging role.

LLM in Maritime Law – unlimited career prospects Tremendous scope to work for an established law firm which serves big clients Increasing demand for maritime lawyers for trading companies, shipping companies and agencies, insurance companies etc.

LLM in International Trade Law – Professional This program would offer you an encompassing view on International Trade and Commerce where the focus lies exclusively on the commercial law side of matters This course would also expose students to the International Trade Laws and Regulations, the ways in which trade benefits nations and modern advancements that affect trade between nations.

This course would take a student through Introduction to International Trade– whichfamiliarizes students with theories and policies that guide international trade. Students will get meaningful insights into why international trade is important for a country and how it effects production, profit and the economy International Business- where concepts and strategies that will help in building a successful international or domestic business.

Students would also be exposed to the concept of globalization and how it affects business though case studies The World Trade Organization – wherestudents are familiarized with the laws and regulations set in place by the World Trade Organization. They would also learn how to meet the trade regulations and discuss the principles behind the organization’s dispute resolution system Trade and Investment- where students will learn what different nations have to trade, when they trade it, why they trade it and what they hope to gain from the trade. This would sharpen the skills of students and they become more competitive when engaging in deals and making investments Risks, insurance, transportation and intellectual property rights -where students are taught how to cover risks and liability involved in business transactions. Also covered in this program is contracts of carriage, transport documents and related documents, and the liabilities of the carrier and the shipper

Policy and Theory – wherestudents learn trade theory and explore trade laws. They would be in a better position to analyze laws pertaining to monopolies and trade protection and discuss theories that can help them beVision and mission of GMA Vision “To be a global center of excellence in maritime education, research and development, professional training with an aim to enhance the capacity of maritime industry both in India and across the globe” Mission To provide world class education focused on areas across the value chain of the maritime industry To empower students to excel in global maritime industry through an interdisciplinary approach to learning To address the challenges of the industry and encourage innovation through cutting-edge research and collaboration with industry To serve the global maritime community by producing educated and well trained individuals come successful in international trade.

Target Audience The course would evince interest ofindividuals with a keen interest of specializing in a legal career focused on in trade, mostly international trade, by building on their trade law skills.

The program would equip students interested in international trade and most importantly, would offer first-hand training of the

complex and challenging environment.

LLM in International Trade Law– unlimited career prospects Work for large Indian trading houses as legal consoles Work with industry that imports or exports raw material or finished goods Work with reputed Indian law firms servicing the sector Work with MNCs setting up sourcing or selling offices in India Work globally with Indian trading companies abroad or with foreign companies dealing with India Further specialize to WTO / IP sectors for better prospects In both cases, the launch of maritime cluster by Gujarat Maritime University will prove to be a major opportunity for degree holders to gain employment with shipping and trading companies which are expected to be attracted to the cluster Increasing business in India of the overseas shipping companies which demands dedicated professionals with knowledge of maritime law Increasing work in the maritime space because of reasons like ship arrest, cargo claims and P and Irelated work which provides excellent opportunities High rating of Indian lawyers in global maritime sector Growing opportunities to work overseas with P & I clubs and shipping companies A large number of Indian companies setting up overseas companies for chartering and shipping and this would provide great scope to service them or be employed with them

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news in brief

42% growth in shipboard jobs for Indian seafarers

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nion Minister of State for Shipping, Road Transport & Highways and Chemicals and Fertilizers Shri Mansukh Mandaviya said today in a statement that the Ministry of Shipping has strived to improve employment generation in the Shipping sector during the last four years. He said, the number of trained active seafarers today is 1.54 lakh, of which 4700 are women. He said, as many as 810 women are employed in the Shipping sector.

The last four years saw an unprecedented growth of 42.3 per cent shipboard jobs for Indian seafarers. The seafarers employed on ships worldwide increased from 108446 in 2013 to 154349 in 2017. India now provides 9.35 % of the global seafarers and ranks third in the list of the largest seafarer supplying nation to the world maritime industry.

The Directorate of Shipping has started issuing the Indian CDC for

candidates who have completed the five basic STCW courses since January 2018. Prior to this, candidates who were doing the long duration pre-sea courses were issued Indian CDC. This initiative of the Directorate has mobilized lot of seafarers to pursue Indian CDC who otherwise were holding CDC for other flags like Panama, Liberia, etc. The ban on opening of the new pre-sea and postsea institutes has been lifted and various requirements for approval of courses also delinked. This has considerably helped in opening of the new maritime training institutes. This shall definitely assist in further increasing the number of Indian seafarers in global market.

Ship capsizes on Iranian port, one Indian crew injured

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ranian state TV says careless loading of cargo has capsized a ship, with a 14-member crew from India, in the southern port of Bandar Abbas, sending port workers scrambling to retrieve any of the 153 containers that were suddenly submerged.

The report says only one Indian seaman aboard the Comoros-owned LS Star was injured in the foot in the incident on March 18.

Mehdi Haghshenas, deputy chief of Iran’s Ports and Maritime Organization, told the TV news channel that the ship was not being loaded properly and that there was “poor coordination between the ship’s first officer and the crane operator” lifting the containers on board.

He says the ship has a 14-member crew, all from India.There were no further details and there was no immediate estimate of damages

INSA pushes for ratification of the Hong Kong Convention on ship recycling by India

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umbai, February 11, 2019: Indian National Shipowners’ Association (INSA) reiterated the need for the ratification of Hong Kong Convention. At a meeting held at Mumbai, The Japanese Shipowners’ Association, represented by the chairman of the Ship Recycling Committee, Mr. Keijo Tomoda and Indian National Shipowners’ Association, represented by the Chief Executive Officer, Mr. Anil Devli jointly pushed for the need for expeditious ratification of the Hong Kong Convention on Ship Recycling.

The Hong Kong International Convention for the safe and environmentally sound recycling of ships, or HKC is a multilateral convention adopted in 2009 which has not entered into force as it is awaiting ratification by the large ship recycling countries like China, India, Pakistan and 16

Bangladesh. Countries such as Turkey, Germany and Japan have already ratified the convention.

Mr. Anil Devli, CEO, INSA, said, “ Early ratification of the HKC will ensure that the Indian ship recycling yards would substantially benefit.

This is expected to lead to a growth of Indian ship recyclers in Alang, Gujarat as it would also raise increased business for

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Indian ship breakers and would also multiply employment opportunities”.

The Japanese government has been active in Alang, Gujarat to help the ship recycling facilities in Gujarat to upgrade with safe and environment friendly processes. With the encouragement of Japanese government, the number of HKC compliant yards in Alang has reached 68 as on November 2018 as against nil in 2012.

Both the associations also discussed the impact of the European Unions Ship Recycling Rules (EUSRR) and INSA voiced its concern at the way the EU SRR could take away business and employment opportunity from India as well as add to the compliance costs of Indian shipyards.

Both parties agreed to work in a coordinated manner on this issue.

Optimize capacity utilization and reduce congestion on roads: Gadkari

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nion Minister for Road Transport & Highways, Shipping and Water Resources, River Development and Ganga Rejuvenation Shri Nitin Gadkari has said that reforms are being brought-in to optimize capacity utilization and to reduce congestion on roads as well as higher levels of road safety and service standards in the country. Speaking at the conclusion of a legal contract for procurement of the Reimbursable Advisory Services (RAS) from World Bank for enhancing the effectiveness and efficiency of the Public Transport Sector in New Delhi today, he said, the States need to improve their public transport strategy especially in urban areas.

Shri Gadkari said, the future belongs to electric and bio- fuel based transport vehicles. These are cost effective, pollution free and cut import bill on petroleum products.

He said, using Ethanol and Methanol is also a good option. He cited the example of Nagpur, where bio-CNG is being produced from fruit, mutton waste etc. For intercity

transport, he advocated adopting broadgauge metro, for which rolling stock is readily available. He said, studies suggest that against the construction cost of Rs 350 crore per kilometre for traditional metro, it comes to only Rs 3 crore for broad-gauge metro. The Minister informed that 111 waterways are being prepared in different cities and rivers with World Bank assistance. He requested World Bank representative present on the occasion to prepare total transport vision for India.

Shri Gadkari also recalled the signing of an MoU with Transport for London (TFL) on 10th January, 2018 with the aim to bring in the best practices from world. TFL is an agency that manages the transport system for Greater London, and has demonstrated its capability by creating strong and dependable public transport system in the city of London. It has created a unique system of operating buses in PPP model with over 17 operators under a single brand. He said, the MoU is aimed at using the expertise of TFL to revamp the public transport architecture in a few select cities in the country.

The Minister expressed satisfaction over engaging World Bank for consultancy services for carrying out Public Transport improvement studies in the States of Andhra Pradesh and Maharashtra which can be

replicated in other States for the betterment of public Transport. He hoped that the agreement signed today will lead to achieving the desired outcomes towards developing a safe and efficient transport system in the country.

Union Minister of State for Road Transport & Highways, Shipping and Chemical and Fertilisers Shri Mansukh Mandaviya said, India needs a good transport policy regarding efficient bus transport system.

He said, the share of public transport for passenger transportation must rise so as to improve the productivity and throughput of the roads.

Through this advisory service, the Ministry of Road Transport and Highways will assist the recipient states Maharashtra and Andhra Pradesh and their State Transport Undertakings (STUs) in improving their Public Transport Policy. RAS would also enable the Ministry to guide States in public transportation matters and to carry out certain pilot projects in the recipient States which can be replicated in other States for the betterment of Public Transport system.

The RAS is likely to help States improve their service definition and planning, enhancement capacity of public transport system through innovating contracting methods and improve service quality and safety through leverage of technology.

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news in brief

INSA welcomes crucial customs nod to Indian-flag vessels

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ndian National Ship-owners Association (INSA)has lauded the recent move by the Central Board of Indirect Taxes and Customs (CBIC) to permit Indian-flag vessels to make calls enroute at Sri Lankan and Bangladeshi ports during their EXIM and domestic services.

Applauding the move, Mr. Anil Devli, CEO –INSA has written to the Union Finance Minister –Mr. Arun Jaitley, thanking him for the leadership provided for this reformative step. In his letter to Mr. Jaitley, he wrote the move will help the Indian-flag vessels engaged in the shipping of both the EXIM and domestic cargo on the Indian coast, including between the East and West coast of the country, to make optimum use of their space and reduce the cost of transportation for all including the trade. This would go a long way in encouraging modal shift from cargo from road and rail to sea.

A circular issued by CBIC in this regard mentions that INSA had approached the central body to grant permission to Indian ships to carry out voyages carrying mixed cargo, both EXIM and domestic.“Earlier, Indian vessels were not permitted to make calls into foreign ports despite such ports were en route on Indian ships’ domestic services between the East and West coast ports of India. Thus, Indian ships engaged on such trades were unable to make optimum use of their space and

were incurring higher cost of transportation on both the EXIM and domestic coastal cargoes,” Mr. Devli said.

In the letter to the Finance Minister, Mr. Devli also thanked the CBIC and its all concerned officials for the move that will benefit the industry and the country. “We are certain that this reform will greatly assist not only the Indian shipping industry but also the trade and users of the coastal transport services within India,” he said.

It may be recalled that the Sea Cargo Manifest and Transhipment Regulations, 2018 provided for the procedures for transit of coastal goods through the foreign territory of Sri Lanka andBangladesh. These regulations envisaged a completely automated platform for the movement of coastal goods through the designated foreign territory or otherwise.

The procedure for transit of imported as

well as indigenous goods through foreign territory had already been laid down in Transportation of Goods (Through Foreign Territory) Regulations, 1965. However, unlike the Sea Cargo Manifest and Transshipment Regulations, 2018, the country names i.e. Sri Lanka and Bangladesh were not specifically mentioned.

While the procedure for movement of imported goods/export goods is streamlined, certain difficulties had been expressed in the case of movement of coastal goods through foreign territory, more so where the coastal cargo is non-containerized. These difficulties mainly related to documentation as such goods were required to follow the procedures prescribed for coastal goods as well as the procedures in Transportation of Goods (Through Foreign Territory) Regulations, 1965.

Raj Khalid gets top Belgian civilian honour

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he federal government of Belgium has conferred the “Commandeur of the Order of Leopold II”, one of the country’s highest civilian honours, to Mumbai resident Raj Khalid for his substantial contribution to maritime trade, according to a report in The Hindu. Previously, the award has been given to fellow Indians, Naresh Goyal, chairman, Jet Airways; and Shashi Kiran Shetty, managing

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director of All Cargo Logistics.

Mr. Khalid started Port of Antwerp’s first international network office in India in 2006 with the objective of positioning Antwerp as Europe’s gateway for maritime cargo flows between the India-Europe corridor.

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Over the years, he has contributed tremendously towards raising the profile of the Port of Antwerp across India and accelerating trade between India and Belgium through various initiatives such as visits to major cargo hubs in India, and launching an experiential programme for young logistics managers , and formation of the Port of Antwerp Alumni Association.

CONTACT US Registered Office Amrut Dredging & Shipping ltd Gandhi house, Kotecha chowk Rajkot-360005, Gujarat, India. Ph: 0281-6508152 Email: info@amrutdredging.com

Corporate Office Om business center, Ground floor, Landmark annex building, Opp Rex chambers, Bellard pier, Mumbai 400038, India.

Ph:022-67494805, Email: info@amrutdredging.com

Branch Office Presilco House , Plot no 11, Maitri society, Adipur, Gujarat370201, India.

Email: amrut_gim@yahoo.com

perspective

Impact of new fuel regulations on merchant shipping

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he ever changing shipping market will balloon to $380 per ton by early 2020.

Thomson Reuters Research estimates fuel is due for a major shakedown in the coming months. With the increase accounts for about half a ship’s daily operating in ships and reduction in costs, the cost. Based on average fuel consumption of profit margins are getting ever tighter for ship 20 to 80 tonnes a day (MT/day), a ship using owners and with the upcoming fuel change- cleaner fuel faces extra daily expenses of about over regulationscoming into force from 2020 $6,000 to $20,000.

OPTIONS AVAILABLE to curb air pollution produced by the world’s One option is to install an Exhaust Gas ships are worrying everyone from OPEC oil producers to bunker fuel sellers and shipping Cleaning System (EGCS), to remove the excess pollution from the exhaust gases – and companies.

IMO has set a limit for sulphur in fuel oil continue to burn the cheaper 3.5 percent used on board ships of 0.50% m/m (mass by Sulphur “Heavy Fuel Oil”. EGCS are desulmass) from 1 January 2020. This will signifi- phurization systems that remove unwanted cantly reduce the amount of sulphur oxide particles from industrial exhaust flows. The emanating from ships and should have major systems are installed inside the ship’s funnel health and environmental benefits. Present- and can work in a number of different ways. ly, there are 2 types of fuels which are used The two main kinds are “open-loop” and on-board for running the Main Engines and “closed-loop” (and “hybrid”, able to switch Auxiliary Engines. HFO or Heavy Fuel Oil, between open-loop and closed-loop operawhich has a maximum sulphur content of tion). Operating in open-loop mode removes 3.5% m/m and LSMGO (Low Sulphur Ma- the pollution from the exhaust gases and then rine Gas Oil), with maximum sulphur content flushes it into the sea, instead of into the atmoof less than 0.1% m/m. LSMGO is required sphere. Operating in closed-loop mode retains to be used when vessels are operating in ECA the pollution in tanks on board the ship – but (Emission Control Areas) designated by IMO, this is not practical for long distance journeys. asper Marpol Annex VI regulations. The new The challenge: So far, these systems have not regulations coming in January 2020 will now yet been used with large container ships, only require all vessels to use fuel with maximum with cruise liners and short sea ferries. There sulphur content on 0.5% m/m when not oper- is also the risk that regulations will change in ating inside an ECA unless a vessel has equip- the coming years and will prohibit flushing the pollution into the sea at all (Singapore ment to clean up its sulphuremissions. has already banned the discharge of effluents AFFECT ON FUEL OIL MARKET The global shipping fleet now consumes from scrubbers in its waters). But the equipabout 4 million barrels per day (bpd) of high ment alone can cost $1 million to $6 million, sulphur fuel oil, but about 3 million bpd of that according to manufacturer Wartsila, putting it demand will “disappear overnight”, according out of reach of many operators.By 2020, about to the average market forecast calculated by 2,000 ships could have scrubbers, according to Norway’s SEB Bank.Most demand is expect- Wartsila, SEB Bank and industry analyst Aled to shift to marine gasoil, a lower sulphur phaTanker.But AlphaTankers’ Andrew Wilson distillate fuel. called this a “drop in the ocean”, given there Morgan Stanley predicts this will generate at are about 90,000 vessels in the global fleet, least 1.5 million bpd in extra demand for dis- of which about 60,000 ply international tillate in the next three years, pushing up total routes.Based on the limited number of mandistillate demand growth for the period to 3.2 ufacturers and time constraints on facilities to install scrubbers, AlphaTanker estimates million bpd.

That, in turn, will drive up prices. Gasoil no more than 500 ships could be fitted each now trades at a premium of about $250 a ton year. Wartsila puts the figure closer to 300.

Another alternative is LNG. There are a to fuel oil, but the forward curve forecasts this 20

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few ships in the market right now, with engines that can burn LNG as well as fuel oil.

The other approach is to build new ships, designed from the beginning to only burn LNG. The challenge: The capital costs to convert ships or to build them from new to burn LNG, is quite high. Moreover, since there is as yet little demand for marine LNG there are as yet still only a small number of LNG bunker vessels available in a few ports.

CAN REFINERS RESPOND TO THIS NEW DEMAND? The global refining industry needs to process an extra 2.5 million bpd of crude to make distillates for cleaner fuel, says Robert Herman, refining executive at Phillips 66.Some refiners have invested in cutting sulphur in their output, but fitting hydrocracker or Coker unit so that a refinery produces more distillates with lower sulphur content while reducing fuel oil output can cost about $1 billion, analysts say.

WHO WILL BE AFFECTED ?

Energy firms and shippers may face a squeeze on margins. But, ultimately, extra costs are likely to fall on consumers of everything from household appliances to gasoline that are shipped around the world. Roughly 90 percent of world trade is by sea.

Wood Mackenzie estimates that global shipping fuel costs are likely to rise by a quarter, or $24 billion, in 2020. Others estimate extra costs for container shipping alone will be $35 billion to $40 billion.In addition, a surge in distillate demand by shippers could push up prices of other products, such as jet fuel and diesel.

So, get ready for increase in costs of all commodities in 2020.

Capt Shehwaz Riyaz Marine Superintendent, Celestial Meridian Shipping, E-mail: shehwazriyaz@outlook.com (Views Expressed Are Personal)

expansion plans

DRIP CAPITAL BRINGS INVOICE FACTORING TO AHMEDABAD

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rade finance firm Drip Capital, in association with the Federation of Indian Export Organizations (FIEO),organized a seminar on the topic ‘Interactive sessions on Export Factoring: Easy access to unsecured finance for SME Exporters’ in Ahmedabad.

Presented byMr. Abhishek Sampat, Director, Business Development, Drip Capital, the event saw the pre77 senceof Mr. J.M. Gupta, Additional Director-General of Foreign Trade, Ahmedabad as the Chief Guest.

Many small and medium-sized enterprises (SMEs) exporters from Ahmedabadalso attended the event.

SMEs account for 40% of India’s total export volumes but are some of the most underserved when it comes to working capital provisions. Demands for collateral, long processing times, heavy paperwork burden, and other such factors contribute towards making working capital highly inaccessible for SMEs. Institutions like factoring firms and NBFCs offer alternative financing solutions; however, many SME exporters are unaware of these offerings and need to be educated about the same. One of the easiest such alternative methods is invoice factoring.

At its most basic, invoice factoring is a process of procuring finance by selling the invoices of your transactions to a third party known as the factor. Based on your transaction history and other parameters, the factor gives the seller (the exporter) a credit line which they can then use to finance further transactions to other buyers (importers). In most cases, the seller gets 80% of their invoice value upfront from the factor (often without the need for collateral), and the remaining 20% -- minus the factor’s fees and interest -- after the buyer transfers the value of the invoice to the factor.

Gujarat’s share in India’s exports increased phenomenally to 22% in 2017-18 from 19% in the previous year. Gujarat exports a wide range of items including gems &jewellery, agriculture, automobiles, petroleum products, pharmaceuticals and

chemicals among others. Apart from other key products, textile has been a major contributor towards boosting exports from the region.Ahmedabad, the largest city in the state, is the second-largest cottontextile centre in India after Mumbai. Once called the ‘Manchester of the East’, Ahmedabad and its nearby area are home to a number of cotton manufacturing units, and the city is the country’s largest supplier of denims.

Recently, the Gujarat Industrial Devel-

Drip Capital plans to expand into new markets and leveraging technology to solve multiple problems commonly faced by exporters. opment Corporation acquired land in the Sanand taluka of Ahmedabad district to set up three new industrial estates as well.

Mr. Abhishek Sampat, Director, Business Development, Drip Capital,said at the event, “There are many small and medium industrial units in and around Ahmedabad.However, many of these SMEs face severe issues with managing their working capital because of a lack of adequate financing options. In order to solve this problem, Drip Capital provides collateral-freepost-shipment finance to In-

dian exporters with instant approvals and minimal documentation.”

Drip Capital is a US-based trade finance firm that was founded in 2014 by PushkarMukewar and Neil Kothari to solve the financing problems faced by MSME exporters in India and abroad. Since its product launch in 2016, Drip Capital has seen rapid adoption by the Indian exporter community. The company has had exponential growth, growing over 20x times in terms of working capital financed in the last two years. The growth has been fuelled in part by an intense focus on technology and drive to productize trade finance by offering solutions customized to solve common issues and pain points faced by exporters.

Drip Capital has financed over $300 million worth of invoices till date, and currently works with over 300 exporters across various product categories and geographies across India and Mexico. Mr. Sampat added, “A lot of Drip’s growth has been fueled by increasing demand from labor-intensive and SME-dominated sectors, such as agri-commodities, apparel, logistics, etc. These sectors are also represented strongly in Ahmedabad, and Drip is keen on helping the city’s exporters grow their business as much as possible.”As part of a partnership withFIEO, Drip Capital has undertaken a series of seminars aimed at educating exporters about the great potential offered by invoice factoring and other trade finance services. The Ahmedabad seminar was the latest in this series and served to reinforce the potential of the solutions provided to exporters by Drip Capital.

Drip Capital’s plans include expanding into new markets across the world and leveraging technology to solve multiple problems commonly faced by exporters. Moving beyond trade finance, the company aims to continue leveraging data, technology, analytics, and a team of highly motivated professionals to become a leader in the global export ecosystem.

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maritime history

The Untold Story Of India’s Titanic: How ‘Vijli’ Sunk?

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ndia has rich heritage of very prosperous and ancient Maritime History. Historians have to decide what they can write on history of the ocean. Oceans surround our continents and every ocean has a story to be told to today’s generation to remain abreast with the knowledge and past.

On turning pages of history one can see great transformation of techniques and skills and it tends to be written by the sailor for the sailor. It is pertinent to note that it would be important to learn interaction of land and sea rather than life at sea.

The perils of sea are immeasurable and it’s magnitude sometimes can lead to disasters beyond the imagination of human being.

This article is written with an intention of highlighting events out at sea when it goes unnoticed and uncharted. The Author of this article is making an effort of highlighting one such event of past and is also lighting a torch of quest for learning for all.

One of the reason why the early 22

man got attracted to sea, mainly for fishing and harvesting fish to satisfy requirement of food which slowly initiated from the shallow waters gradually forcing man

With time elapsing fast the type of vessel and maritime skills got honed and improved a lot on demand and supply basis to cater to the users to go deep into the waters for getting bigger catch to feed their fellow brothers and meeting with the requirement of market.

With time elapsing fast the type of ves-

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Pankaj A Dave, Marine Surveyor Kandla .

sel and maritime skills got honed and improved a lot on demand and supply basis to cater to the users. This also brought the parts of globe closer and people of different background and nationality exchanged and traded for goods. The fascinating sea adventure also attracted a larger population to make and operate passenger ships to ferry man and woman from one country to another.

From make shift vessels, the ships were built with luxury as was demanded by the passengers to make the voyage more enjoyable with entertainment and that influenced the builders of vessel to make it look more attractive with facilities, safety and modern comfort and dining saloons to offer food to suite & satisfy the taste buds of the passengers. In those days (1700~1950) Britain was having well developed ship building yards where most luxurious passenger vessels were built with increasing rise of capacities to accommodate more persons on

board during a voyage. Increased speed and capacity also ended up in miseries due to creeping in mistakes made by the humans in construction, navigation and in making of material leading to marine disasters to register and record loss of life.

Year 1912 is therefore remembered by entire world, even today after completing a centenary of the bizarre and gruesome marine disaster which led to a great loss of humans including Young and old; Women and men; Children and elders and more so a loss of manmade unsinkable mega-structure as it was proclaimed in those days.

Yes, the reference is made to sinking of RMS “TITANIC” (RMS stands for Royal Mail Service, indicating the vessels bringing mails) which went down beneath the sea on April 15, 1912 with life and artefacts. As per the maritime honour the captain of the vessel preferred to go down with the vessel rather than making efforts for saving his own life with others few lucky.

Although some were lucky who had survived and narrated the incident to rest of the world based on which numerous films were made and books were written. Not only that record prepared and preserved reflected many details including list of passengers and construction details, which are otherwise also available to many of us to make more research on it. The latest study has exposed many facts on how the vessel failed and what had caused the sinking of the vessel. The people who are today involved in maritime affairs; scientist and engineers including investigators are racking their brains to solve the sinking of the vessel. As one digs deep into the incident, ideas are pouring out exposing act to take corrective measures that could have avoided the disaster. Many experts are now coming out of solutions that what should have been done to avoid such loss. In wake of

the loss new rules have been framed and included in practise so to avoid such disaster and ensure that it should not happen again. Such record discovered on a later date based on evidences and documentation gives a separate dimension to those involved in investigation and to explore and examine the circumstances leading to loss.

Exactly 24 years ago, a similar gruesome incident occurred close to Indian Coast line and a vessel with all passengers on board was mysteriously lost in a storm on November 08, 1888 with no trace. The

People who are involved in maritime affairs are racking their brains to solve the sinking of the vessel vessel simply vanished from the map with no evidences. No one survived and no body was found to tell us a tale as to what had happed on that dreadful night when the vessel was on her last leg of voyage heading for Bombay as her final destination on a maiden voyage, which had originated in England.

The fact of the maritime loss was suppressed intentionally by the government (British Raj) that ruled us at that time. The name of the vessel which sank on November 08, 1888 off the coast line of Gujarat (India) was SS “VAITARANA”, a passenger vessel making her voyage with passengers on board mainly comprising of bridegroom & wedding parties from Mandvi (Kutch) and students wanting to appear in their matriculation examination hailing from Karachi (Sindh).

For years no note was taken by any one and after dying out of initial enquiry which was conducted by the British authorities, some poets had written poems glorifying image of the vessel and the sinking incident which had more of a poetic approach until one writer Gunwantrai Acharya made effort of writing the disaster in more described manner but eventually it turned out to be more of novel representation of the sad incident with enlarged Figures of dimensions and capacities which were far from fact until another historian and a dedicated person Y M Chitalwala, a researcher based at Dhoraji poured his soul and sweat in digging out the facts from the deeps and wrote a book with more authenticated proofs and brought out record of the vessel where by and large supporting and documents were obtained by him from various sources who were involved in construction of the vessel and operating of vessel.

RECORD OF LLOYD’S REGISTER WHERE THE LOSS WAS INDICATED IN FOLLOWING PATTERN: She was named VAITARNA after the River Vaiterna of Bombay Presidency.

She was also nicknamed Vijli as the ship was lit with electric bulbs. On further ascertaining the Ship’s Particulars could be obtained and the approximate size of the vessel was understood to make the rest of the world to understand what kind of vessel SS “VAITARNA” was.

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nio find

Crude oil-degrading marine bacteria found near Vadinar

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ujarat being a coastal state with longest coastline of 1,600 km in the country constantly faces threats of marine disasters. Among the many disasters caused by anthropogenic activities, marine oil spills are one of the most hazardous, which threaten the marine environment.

Gujarat coastline’s susceptibility to such disasters grows many folds with increasing ship movement along the Gulf of Kutch and Gulf of Cambay that house some of the busiest ports in the country. While Gulf of Kutch is houses the Deendayal Port at Kandla and Adani Port at Mundra; down south Harira port dominates the Gulf of Cambay.

With Marine National Park located at the mouth of the Gulf of Kutch, it became important to study microbial degradation processes that help reduce the damage caused to the environment.

A study has been conducted by the researchers at National Institute of Oceanography (NIO) who have identified crude oil-degrading marine bacteria near Vadinar coast in Jamnagar.

These marine bacteria can contain oil pollution. The study was conducted by Najmuddin Mulani, Abhay B Fulke, Edna D’Souza, Anirudh Ram, Aayushi Maloo, Faraz Sayed and SN Gajbhiye of CSIR-National Institute of Oceanography, regional centre in Mumbai.

“Universally, oil spills produce enormous public anxiety and highlight the need for cost-effective, indigenous and environmentally acceptable bioremediation technologies. In recent times, advanced remedial techniques have been opted, such as solidifying, skimming, controlled burning and bioremediation,” states the study titled ‘Biodegradation of crude oil using marine Bacillus species from Vadinar coast, Gujarat, India’.

“The study aimed to isolate crude 24

oil-degrading marine bacteria from Vadinar coastal area of Gujarat. Among seven isolates, three potential bacterial strains were chosen for crude oil and petroleum hydrocarbon (PHC) degradation, which were analysed by UV spectrophotometric and fluorometric analysis. These bacterial cultures were verified by 16S rRNA gene sequencing and identified as Bacillus species. Phylogenetic analysis was also carried out to confirm the evolutionary relationship with existing oil-degrading species,” the study stated.

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With the objective to identify potential marine bacteria capable of crude-oil degradation, microcosm experiments were set up to evaluate the indigenous bacterial isolates from the coastal area of Vadinar for oil biodegradability purpose.

“The overall results indicate that the studied bacterial isolates can prevent the contamination of oil-polluted areas in future.

The present study shows that Bacillus species with efficient emulsification activity, drop collapse test and oil spreading assay can be used for marine oil bioremediation.

The study concluded that “efficient rate of crude oil degradation by bacterial isolates used in by the researchers may be a suitable and promising method of pertaining such marine microorganisms in oil contaminated areas and deliver new acumens for a better perceptive of the potential significances of bio-treatments on the oil fate in polluted marine waters and also immobilized lipase isolated from indigenous strains can be used for commercial applications”.

S.U.Shah & Associates ADVOCATES, DISPUTE RESOLUTION EXPERT, LEGAL CONSULTANTS

• Advocate- Arbitrator Mediator • Director-Chartered Institute of Arbitrators (London) - CIArb-India Branch • Director – Hong Kong Zhiqing Trading Co. Ltd, Hong Kong • Approved Faculty for Arbitration-CIArb-London • Fellow – Prime Dispute, London • Mediator – Mainland-Hong Kong Joint Mediation Center, Hong Kong - Hong Kong Mediation Service Limited, Hong Kong - The Mediation Center, Dubai • Fellow – World Mediation Organisation • Secretary – Gujarat State Committee-Society of Construction Law (UK)-India Branch • 24 years of active legal practice and experience.

• Having own proprietary full servicelaw firm at Ahmedabad, State of Gujarat, INDIA under the name and style of S. U. SHAH & ASSOCIATES, with associates spread across India and other places Internationally.

Following are the major areas of practise of the firms: • Arbitration, Mediation and Conciliation • Civil & Commercial Litigation • Consumer Disputes • Contractual and Commercial Disputes • Corporate Law & Restructuring and other related services • Documentation and Advisory • Family & Matrimonial Dispute and Counselling • Immigration Law & Advise and VISA guidance (for Canada) • Investment guidance and structuring • Legal and Financial Due Diligences

• Maritime law and Shipping Consultancy including Dispute Resolution.

• Mergers and Acquisitions • Personal law and guidance • Real Estate and Property Having Associates at the following locations in INDIA: Gujarat: Bhavnagar, Bharuch, Bhuj,Jamnagar, Palanpur, Rajkot, Surat, Vadodara, Valsad and whole of North Gujarat controlled through Ahmedabad Others: Aurangabad,Bangalore, Bhopal, Chennai, Gauhati and North East India, Indore, Jaipur, Kochi, Kolkatta, Mumbai, Nagpur, New Delhi, Pune, Udaipur International Associates at: Dubai, Hong Kong, Saudi Arabia, Shanghai, London, Canada Contact details: S. U. Shah & Associates Advocates, Arbitrator, Mediator & Legal Consultants Principle Office: 240, Ellisbridge Shopping Centre Opp. Town Hall Ashram Road Ahmedabad – 380 006 (Gujarat) INDIA Tel: +91-79-40069544 / 46 (directline) (M) : +91-98240 34286 E-mail: samirushah@yahoo.co.in,sushahassociates@gmail.com

KALPA

travelogue

himalays are always cool

By Rajeev Khanna

H

ave you ever dreamt of visiting the Abode of the Lord? If yes, you might be convinced that the visit is not as easy ride but once there you would see and feel what you have been dreaming of for years if not decades.

Well, if you are keen to see the Abode of the Lord plan a visit to Kinnaur in Himachal Pradesh. You won’t be disappointed even a bit. The only thing required is to toughen yourself up mentally for the steep ascend into the higher Himalayas where the oxygen might be a bit less but it is definitely pure.

Kinnaur is one of the 12 districts of Himachal Pradesh tucked in the north eastern part 26

of the state and to its east lies the Plateau of the World – Tibet. It is a unique district that is surrounded by three mountain ranges of Dhauladhars, Zanskar and Greater Himalayas. There are many river valleys including those of Sutlej, Baspa and Spiti along with their several tributaries.

So you can expect the dreamy locations of sun, snow, glades, gurgling streams, thunder and lighting, meadows, sharp slopes, steep climbs and wooded treks. Doesn’t it sound like an all in one package? That is the beauty of Kinnaur.

The travelers have to first reach Shimla and then take an approximate six hour journey to reach the district. The ride is initially a gentle one but once on the Taranda stretch,

MARCH 2019 • MARINE LINES

be sure to experience the heart skipping a beat. The road is a marvel but very few can get down to even look down the gorge for all you see from a vertical position is a silver line which is the Sutlej flowing thousands of feet below. Although those traveling with families prefer to travel by taxis but taking the state run HRTC buses is a delight in itself as you marvel at the driving and navigational skills of the drivers and conductors. If traveling on the interior local routes you might have goat or a sheep as a fellow traveler. That’s the beauty of the place.

Destinations galore when it comes to Kinnaur as even a home stay in a hamlet would give an experience that even the best hotels in the hospitality industry cannot match. This

SANGLA

district was opened to the outsiders only towards the end of the 1980s. The locals make sure to go the extra step to make a visitor comfortable. It is desired that even if one cannot carry out its Parikrama one must at least satiate himself or herself with the breathtaking view of the Shivlinga that stands at the peak of Kinner Kailash mountain and is best visible at sunrise or sunset.

There are destinations like Pooh, Chitkul, Reckong Peo, Sangla and Kalpa that are a must visit spots, Each one of them present nature in its unique hues where even a humble cup of tea becomes a moment to remember if the gurgling streams and the sound of the birds present the ideal symphony played by nature.

Kinnauris are known for their honesty and this can be experienced in small little things.

Their cultural roots and belief system largely lies in Buddhism and Hinduism. It is a common belief that the Pandavas spent their time hiding in the district when they had been exiled and mythology has referred to the people of this place as Kinners – between man and god. The place is also dotted by Buddhist monasteries that go back thousands of years.

While many travelogues have provided the geographical content of the district, not many provide the details of Kinnauri cuisine which is superb and has lots to offer to both the vegetarians and non vegetarians. And the best part is that it is all organic, something people crave for in the plains.

So one can try his or her hands on Sha which is a mutton fare, Gyuma that is sausages and Khura which is the pan Indian Puri or deep fried bread. For the vegetarians there is Polle or Chilta made of Phapra (buck wheat) besides the apricot in various forms. Apricot is in abundance in the district and is dried for storage. The Thukpa and Momos here are something that one would not get elsewhere.

Another interesting local dish is apricot soup prepared after soaking dried apricots in water for a few hours before being boiled and finally separating the outer shell and the seed. It is served with Sattu, flour made from parched barley. Besides being good for your vision, the apricot soup provides strength, helps in dealing with joint pains and also

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27

cleanses the digestive tract.

The Polle or Chilta from buck wheat are known to maintain healthy cholesterol levels.

It’s preparation is very similar to plain Dosa and is served with lentils and vegetables.

There is also a local version of Jalebi

known as Jutee which is prepared both sweet and salty from the buck wheat and deep fried in oil to be served as a snack.

The Momos were traditionally known as Kapok and mainly had a non vegetarian filling. But with changing times even the vege-

Kalpa

O

ne of the most scenic villages where one can sit for hours on end imbibing what the Himalayas have to offer, Kalpa stands a bit above the administrative headquarters of Reckong Peo. It is a place where you stand above the clouds with the mists filling the gorges all around. On a clear sunny day, the view all around is fabulous. One should take some time off to undertake the Chaka meadows trek as it is the vantage point to view the Kinner Kailash mountains.

Sangla

S

angla is a small town located in the nerve centre of the Sangla or Baspa valley that starts at Karcham and ends at Chitkul. The valley offers the most fascinating views of the higher Himalayas. Besides the forest slopes, one has the gushing Baspa river for company and the region has apricot, walnut and cedar trees. The streams in the area offer the best trout.

Besides the 14th century Kamru fort, there are some ancient temples of immense interest in the valley. Sangla town is the fountain head leading to many interesting small treks.

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tarian version is now available.

And last but not the least is the Butter Salt Tea that keeps one warm besides its typical aroma and taste. The beverage is prepared by boiling special tea leaves that are churned vigorously in a special pot called Dong Mo of hollow bamboo and the other ingredients include butter, salt, milk, ground almond or walnut. It provides immense calories and while the butter helps dealing with chapped lips, the almond and walnut give the nutrition that helps lower cholesterol levels, keeps a check on high blood sugar, enhances cardiovascular functions and helps in preventing gallstones besides keeping the bones healthy.

This is a precursor to a round of the universal sweet tea. So when in Kinnaur do not miss out on the local cuisine.

You can write to Rajeev at rajeevsolan@gmail.com

Chitkul

I

t is the last inhabited village on the Indo-China border whose residents have to move to lower heights when it snows in the winter. It offers among the most qualitative potatoes in the world.

With houses having slate roofs and lots of wood utilization, an ancient Buddhist temple with an image of Shakyamuni Buddha make it the perfect setting for a spiritual experience.

Reckong Peo Pooh

I

f one intends spending time amid apricot and almond orchards, this is the place to be. It is also a delight for historians as it was a known trading centre as far back as the 11th century. There are inscriptions suggesting this. The journey to this town presents many awe inspiring views.

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T

his is the nerve centre of the district and hence the most happening place by the mountain standards where a lot of activity is witnessed in summers till afternoon. Locally referred to as just Peo, this is the place to shop for some good shawls and other handicraft from the region. It is the new administrative centre that was earlier at Kalpa.

HEALTH

no time for gym?

You can still be fit

F

rom the beep of alarm in the morning, to the last blink of eyes in the night, people are just running on their feet. Specially, for those who are working in the corporate sector, fulfilling the monthly target to be achieved, the feeling is “I don’t have time or I am getting late”.

These are some standard excuses to avoid exercising. But is it worth to ignore the most important part of life to stay fit and healthy?

I think most people will say ‘NO’, because nothing is more important than your health.

It is said that life should be on your heel, not on pills.

But, for some people to maintain their health and fitness is a biggest challenge.

It is observed, especially in case of people working in corporate sector, always find difficulty to go to gym on regular basis. But small 10 seconds. Do it for 3 times. This will hit modification and awareness can make lots of your core muscles and improve your posture impact or difference in their daily lives. throughout the day.

Here let us describe no pain – all gain fulCore muscles - flexibility ly body workout where you don’t even have Time taken – 2 minutes to change your atire. You can easily perform these exercises while in you are in the office.

Out of bed Lie on your stomach facing the floor. Lift On waking up… your body on your forearms and toes. Make Just after putting off alarm bell in the sure your shoulders creates 90 degree angle morning, lie straight on bed, taking your with your elbows, and your whole body rearms over your head and stretch full body in main perarell to floor. Hold this position for opposite direction. Just pull alternate leg with 10 to 30 seconds. Take rest for 15 seconds. bended knee and hold for 8 to 10 seconds. Repeat it for 3 times. This is amazing exerThen bend your both the knees, gently put- cise to strengthen your arms and hip muscles. ting it to left side and turn your upper body Don’t perform this if you are suffering from to opposite side. Do same on the opposite di- any shoulder, survicle or back problems. rections also. After this, gently mobilize your Target– core, arms and hip muscles all major joints. This will remove your whole Time taken – 3 minutes night stiffness and make you feel energetic and ready to move.

Before shower…

Full body stretch – flexibility Find a wall with less furniture. Stand Time taken – 3 minutes inffront of the wall keeping a distance of around 2 feet from wall and place your After stretch both arms on wall. You can keep one of After stretching, remain on your back, your legsforward to keep balance. Then suck your lower portion of belly towards start pushing wall with all strength of your your spine, imagine you are trying to push body and keep pushing for 10 to 30 secsomething bellow your back with your abs. onds. Take rest for 10 to 15 seconds. ReHold it for 10 to 12 seconds and take rest for peat it for 3 times. This isometric exercise 30

MARCH 2019 • MARINE LINES

Abhishek Thakkar

is very effective to strengthen your upper part of body. Don’t perform such isometric exercise if you are suffering from high blood pressure.

Target – Chest, anterior shoulder, arms Time taken – 3 minutes Reaching office While reaching office, standing in que for elevator is not a good idea. Elevator elevates the rate of your flab. Taking stair cases instead of elevator has benefit. Stair climbing gives strength to your leg muscles specially quadercipes and glutes. It is also a good short cardio exercise for strengthening heart. It also burns good amount of calories which help you losing some extra fat. Climb at least 2 to3 levels daily atleast for two times a day for better benefit. But avoid stair climbing if you have any knee problems.

Target – leg muscles Time taken – 3 to 5 minutes

At office Replacing your chair with a Swiss ball is a great idea .even for half of your working duration, just sitting on Swiss ball tone and strengthens your deep core muscles. It also improves your posture and balance. It also gives strength to your back which helps you to stay away from lifestyle injuries like low back stiffness. It also burns some extra calories which in give you some extra weight loss in the long run.

Target – Deep core muscles, back, posture, balance.

Time taken – no limit Abhishek Thakkar is founder of Internatinal Fitness Academy, India in Ahmedabad.

He is a fitness professional and educator certified by American College of Sports Medicine, American Council On Exercise & International Sports Science Association.

He can be reached at abhishek.safet@gmail.com

MARINE LINES, March 2019. RNI No. Under Process, Title Code: GUJENG16193