Marine Lines, May & June, 2019

Let's turn the tides

Volume:I Issue:IX May-June 2019

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From the Editor's Deck MARINELINES Editor-In-Chief Girish Joshi Assistant Editor cum Business Development Executive Haresh Manji +91 99257 44679 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 GSTIN:24AAYPJ3678DIZC Varun Kumar Head, Mumbai Contact : +91 8698379155 Mumbai Office 14, Ground Floor, Himalaya House, 79 Palton Road Fort, Mumbai 400001 Contact : +91 98200 03562

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he thumping victory of BJP and Prime Minister Narendra Modi winning the second term has kindled hopes of the revival of some of the key sectors that are reeling under a downturn due to several local and global factors.

The Indian shipping industry is hoping that the new government will consider its demands for easing the tax logjam that has rendered the local shipping firms less competitive as compared to the international players.

Marine Lines spoke to Mr Anil Devli, the dynamic CEO of Indian National Ship Owners Association (INSA), which is at the forefront of representing the industry’s burning issues with the law makers.

We also bring to you some insightful excerpts from the PhD thesis of Indian Port Association (IPA) managing director A Janardhana Rao on transformation of central-government run ports.

Marine Lines also travelled to Tuna, the once far-flung port, which is now bustling with activity after Adani Group developed a container terminal there. The development has transformed the lives of locals in a positive way.

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:

High taxes has made resulted in Indian shipping industry losing competitive edge

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Case Study:

Uplifting Communities, And Providing Alternate Livelihood

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Research Paper

Benchmarking & transforming major ports in India

12 Current Affairs:

IRGC responsible for attack on tankers at Fujairah: Report

20 14

New Venture:

India to jointly develop container terminal at Colombo

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News In Brief:

Mansukh Mandaviya Takes Charge Of Shipping Ministry

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Health:

Cure From The Sea

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Cover Story

higher taxes hurtin Indian shipping sect M

arine Lines interviewed the CEO of INSA (Indian National Shipowners Association) Mr Anil Devli, to know what the private sector expects from the government, what is holding Indian shipping back, and what is the future of the shipping industry in India

By Varun Kumar Q. What is your vision for Indian shipping? What is the first message you want to give out?

A. I think the first message we need to give out so we get it right is that Indian shipping is actually growing in size. Contrary to popular belief we are actually growing 6

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within what trade is available to us. If you were selling 100 copies of your magazine in Mumbai, and somebody tells you that you can only sell in Dadar. Then in Dadar, you manage to sell only 40. You can’t say that your market share has reduced by 60%.

Within your small place, you are managing to sell 40. This is what is happening to the Indian trade. What trade is available to India is FOB basis. And then there is CIF.

ing tor India has a policy where we have FOB imports and CIF exports. In the FOB imports that we do the size of Indian shipping and the market share has grown YoY. But if you look at the whole crude oil universe, a lot of crude today is being imported on CIF basis. Where the seller has decided who the transporter is, leaving us no choice or entry in that space. That market is not available for us. Our share in India seems to have gone down, but in the market available to us, there is good growth.

Q. The second important point is that Indian ownership of fleet has grown.

A. With the same example of the magazine, if you earlier had only 10 people working for you, and you now have 40 working for you, obviously there is some growth here.

The asset size of Indian shipping has grown. But most Indian ship owners are working outside India and carrying international cargo and not Indian cargo. So a lot of our assets are working outside India.

Q. But isn’t that profitable for them individually?

A. That is true. But another reason why our companies are choosing to operate outside is that they are more competitive outside India, and not as much inside the country, because of the tax issues. We expect the government to remove the logjams regarding taxation. What we stand for is investing in India. There is a 100 per cent FDI and we need foreign companies to invest in India.

And the government needs to increase the access of the Indian flag to Indian cargo.

It is our view that if a foreign company has to carry our crude oil, it should be made to flag in India. Like Samsung wants to sell phones in India, they needed to manufacture in India. In turn, the government should also say that if a ship flags in India, we will give them our coal to transport.

What this will do is increase the tonnage.

More ships will come into India, thereby increasing economic activity.

This is largely what we are looking for from the government. Other than this we are very international in nature. We aren’t looking for arbitrary support, price preference or extra tax breaks. All we are demanding is that the government look at decreasing the tax that is hurting us.

Q. But you have been lobbying for the government to reduce the regulatory free-

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doms being given to foreign companies.

Even with the right to the first refusal, do you think you need this to keep Indian players in the market?

A. The only thing is the ROFR can work if the cost of service or cost of manufacturing is the same. The ROFR gives me the right to match the rate of the foreign companies, but because of the tax is so high, I cannot match them. This is why Indian companies are looking outside for business.

The focus of the government has gone elsewhere into other sectors, and rightly so. There are many companies which are flagging outside India, in various countries, because business is better there. Today our companies are flagging in India voluntarily and being part of the Indian economic ecosystem. We shouldn’t be penalized just because we are flagging Inside India.

Q. What do you think is stopping foreign companies from entering and investing money in India?

A. We have not seen any significant investment in India for the past 20 years even with FDI. This is because the average ship 8

cost in India is 27% more than a foreign ship. Actually, foreign co’s are asking us why we are flagged in India.

The sole reason for no investment is that the Indian flag is non-competitive, and by not being flagged in India, one still has access to the market. So you tell me why would anyone want to flag in India.

Access to the market is the main issue, which international companies have access to anyway

The sole reason for no investment is that the Indian flag is non-competitive, and by not being flagged in India, one still has access to the market without flagging in India.

Q. What are your views on the Hong Kong

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Convention and why do you think it is not being ratified?

A. It is dangerous that we aren’t ratifying it yet.

It is not in my ambit to comment officially as I am not the representative of the shipbreaking association. But I can say that we need to get it ratified from the government before all vessels are stopped from coming to Alang for breaking.

China has already stopped any breaking on its coast because it is highly polluting.

Many ship breakers have already complied with the terms and need the government’s ratification to not lose out on international business. In my view, this is just not a priority for the government, considering the heavy workload they are dealing with.

One important point I missed out on is about finance. We need the government and the private sector to help us with a special fund for ship acquisition. We are in the process and in talks for trying to create a new special fund just for shipping which will include acquisitions and allied activities like ship repair, shipbreaking etc. With our foreign counterparts getting specialized finance at better rates and for better terms, we cannot move along with the same old industrial finance.

research paper

Dr A Janardhana Rao MD, IPA

Benchmarking & transforming major ports in India

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conomic buoyancy coupled with progressive flow of foreign investments have fueled growth in Indian foreign trade during the last three decades.

Easing of quantitative restrictions and tariff levels across product lines have resulted in growth of India’s international business and trade. Consequently, both imports and exports have seen an upward trend resulting in a spurt in demand for shipping of cargo across many nations across the world. Recognising the need for existence of robust ports that act as key nodes in the supply chain cycle, government of India has allowed private participation including100% FDI investments in port sector.

Ports in India, due to strategic reasons, were under the control ofboth Federal and State governments in India. However, due to numerous reasons, performance standards of these portsstagnated at lowover a

period of time and they could not matchup to the growing needs of India’s foreign trade. Taking into cognizance of the prevailing conditions at the publicly owned ports, government of India allowed private investments at major ports of India that are aimed to make them competitive vis-à-vis the private ports. Investments through PPP mode at various processes of these ports are aimed at improving their operational efficiency and result in financial gains.

It is interesting to note that ports in India have improved in their cargo handling capacities with private ports taking a lead over their public counterparts. There has been a significant growth in the cargo handled by these ports with major ports handling64.83 MT during the year 2016-17 and with CAGR of over 4% from 2007 to 2017. The non-major ports handled 48.52 MT during the year 2016-17 with a CAGR

of over 10% from 2007-17. In spite of these growth trends, Indian ports haveto go a long way to match their performance standards at par with the counterpartsof the world. Efficiency trends displayed by some the world portsareresultant of meticulously designed performance standards. Benchmarking standards has resulted in competitive spirit among the ports and helped them to enhance their performanceand efficiency. Lack to such benchmarks has resulted in lopsided performance among the major ports. Performance declared by the major ports merely show the actuals which, often times, cannot be compared to any benchmarksdue to numerous factors like infrastructure facilities at the ports, type of cargo handled, clientele, etc. Considering the existence of a vacuuminefficiency comparison mechanism, this research has framed its business problem.

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Although privatization has resulted in efficiency improvements at Major Ports of India, lack to efficiency benchmarks are hampering the measurement of their absolute efficiency.

As an attempt to probe the implications of theory and practice ofbenchmarking, a search of existing literature is made with key words including ‘performance’, ‘efficiency’, ‘benchmarking’, and ‘performance standards’. The search resulted in gathering of research papers covering various sectors, apart from ports, including aviation, agriculture, banking, airlines, power, automobiles, shipping etc. from across 200 research articles covering 27 journals of international repute. The literature is segregated into broad themes of ‘performance and efficiency – general’, ‘performance and efficiency – ports’, ‘benchmarking – general’, ‘benchmarking – ports’. A review of literature highlights the fact that benchmarking is attempted in numerous sectors and is slowly gathering momentum in port sector at some selected parts of the world.

However, most of these studies relied on publicly available data and used both parametric and non-parametric tools for benchmarking. The studies have also proved that benchmarking has resulted in significant improvement in efficiencies of these ports.

However, gaps gathered from the literature review prove need for more studies on benchmarking using newer techniques 10

that allow usage of data that can be gathered from personal interactions and observations that are generally not in public domain. Literature on Indian ports reveal a greater need and scope for benchmarking studies that can comprehend and suggest in proposing of benchmarking standards for sustainable efficiency improvements.

These gaps have helped in devising the following research problem, research questions, and research objectives: Research Problem Numerous studies have measured efficiency of Indian major ports. However, these studies could not prescribe any effective and implementable standards for improvement in efficiency parameters. This warrants a comprehensive research to set performance benchmarks in comparison to the best-in-class ports and thereby explore measures for improvement of overall efficiency resulting in optimisation of capacity and financial gains.

Research Questions: How to benchmark various Key Productivity Parameters in port operation for Major Ports of India?

How port efficiency can be improved using benchmarks?

Research Objectives: To determine & calculate bench-

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marks for Key Productivity Parameters in port operation for Major Ports of India; To explore the initiative required to improve efficiencies at major ports of India and transform them into best- in- class ports.

To answer the first research question of determining ‘important KPIs’ and ‘calculate benchmark’, major ports were clustered on the basis of cargo being handled following which a comparison of selected performance indicators on basis of literature review in relation to some of the best ports is done and finally a survey method is used to identify reliable and pragmatic benchmarking standards. For the second research question, ‘efficiency improvements at major ports of India’, deep ‘Root Cause Analysis’carried through Fish-Bone diagram analysis, “5 Whys analysis” are captured in deep-dive analysis chapter that form basis for suggestion of measures to improve efficiency standards at these ports.

Overall, this research encompasses a unique exercise of exploring solutions after deep dive analysis into the real productivity issues in Major Ports by taking into consideration the aspirations of stakeholders and it is what distinguishes from other research studies. These solutions are vividly described under various heads like Technology upgrade, process optimization, ricing & incentive alignment and Value creation in the last chapter.

current affairs

IRGC responsible for attack on tankers at Fujairah: Report

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he DNK IOC has released an intelligence report suggesting the likeliness of IRGC (Islamic Revolutionary Guard Corps) involvement in the attack on tour tankers at Fujairah Anchorage in the UAE. On May 12 2019, four tankers were attacked at Fujairah Anchorage by underwater drones with high-grade explosives. The report released by the intelligence and operations centre of the Norwegian Shipowners’ mutual war risks association claims it is likely that these UW drones were deployed by a smaller surface vessel operation at the anchorage. Iran officials, though have denied any involvement in the attack and called for an enquiry.

Following is the timeline given by the report on the chain of incidents : (Multiple Sources) On 12 May 2019 at 06:30LT, the KSA-flagged Tanker AL MARZOQAH was attacked 6 nm offshore at Fujairah anchorage, UAE. According to a reliable DNK Source, the vessel was damaged to the aft part leaving a hole approximately 4 x 4 meter in the waterline. All crew reported as safe and no reported spill.

(DNK source) On 12 May 2019 at 06:55LT, the NIS-flagged Tanker ANDREA VICTORY was attacked 10 nm offshore at Fujairah anchorage UAE, causing extensive damage to the stern of the vessel. The attack caused a hole 6,7 meter high and 4 meter wide, with a center of the damage 2,5 meter below the waterline. All crew reported as safe and no reported spill.

(Multiple Sources) On 12 May 2019 at 08:00LT, the KSA-flagged Tanker AMJAD was attacked 6 nm offshore at Fujairah anchorage UAE. According to a reliable DNK Source, the vessel was damaged to the side in vicinity of the engine room leaving a hole approximately 20 meter wide in the waterline.

All crew reported as safe and no reported spill.

(Multiple Sources) On 12 May 2019 between 06:30LT and 08:00LT, the UAEflagged Tanker A MICHEL was attacked 7 nm offshore at Fujairah anchorage UAE, 12

causing unknown damage to the starboard side in vicinity of the engine room. All crew reported as safe and no reported spill.

(Open Sources) On 13 May 2019, Iran officials denied any participation in the Fujairah attacks and called for investigation of the incidents.

Below is the DNK IOC general assessment.Iran and their Iranian Revolutionary Guard Corps (IRGC) is HIGHLY LIKELY in possession of capabilities to successfully conduct operations as described earlier in this assessment.

Iran and particularly the IRGC has recently threatened to use military force.

Against a stronger opponent, as the US clearly is, Iran is HIGHLY LIKELY forced to use asymmetric measures with plausible deniability, as the operations described represents. Iranian call for investigation is HIGHLY LIKELY meant to support deniability. In addition, Iran is HIGHLY LIKELY the only actor in this region which these capabilities and intentions.

Based on the distance from the Strait of Hormuz and the relatively limited damage caused to vessels, crew and environment provide Iran plausible deniability at a time when the majority of the US naval assets have not yet reached the Persian Gulf. The attacks are HIGHLY LIKELY also intended to send a message to US and their allies that Iran does not need to block the Strait of Hormuz to disrupt freedom of navigation. Iran is LIKELY

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to continue to target merchant vessels in the coming time in low-scale attacks as seen at Fujairah anchorage on 12 May 2019.

Further escalations in and around the Persian Gulf between Iran and US (and their allies), is highly dependent on the response from UAE, KSA and US to the latest incidents.

US and their allies are LIKELY to somehow retaliate the latest attacks, which again could spark a further escalation by Iran. A complete closure of the Strait of Hormuz by Iran is currently assessed as UNLIKELY, as this also would affect shipping to/from their own ports. A closure would also LIKELY only be effective in a limited timeframe as such an action would HIGHLY LIKELY lead to a decisive military response by US and their allies towards Iran.

In a scenario of further escalations, it is LIKELY that Iranian forces will target both land-based and maritime oil or gas infrastructure, including merchant vessels taking part in trade. On the other hand, it cannot be ruled out that US, KSA or UAE armed forces including proxies, could target Iranian Oil and Gas infrastructure, Iranian linked merchant vessels or international merchant vessels taking part in trade violating US sanctions.

Disclaimer: The above information is taken directly from the intelligence report prepared by DNK IOC. Marine Lines assumes no responsibility for the authenticity of such information.

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new venture

India to jointly develop container terminal at Colombo

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he move is aimed at limiting Chinese invasion in cargo traffic movement in the Indian Ocean Sri Lanka, Japan and India signed an agreement to jointly develop the East Container Terminal at the Colombo Port. The joint initiative is estimated to cost between $500 million and $700 million.

The signing of the Memorandum of Cooperation (MoC) is significant, given that the countries had been negotiating the deal since last year, with little success. As per the agreement, the Sri Lanka Ports Authority (SLPA) retains 100% ownership of the East Container Terminal (ECT), while the Terminal Operations Company, conducting its operations, is jointly owned, the SLPA said in a statement.

Sri Lanka will hold a 51 per cent-stake in the project and the joint venture partners will retain 49%.

The ECT is located some 3 km away from the China-backed international financial city, known popularly as “port city”, being built on reclaimed land on Colombo’s sea front.

“Japan is likely to provide a 40-year soft loan with a 0.1 percent interest rate,” said 14

Sudarshana Gunawardana, Director of Development Communications at the Prime Minister’s office.

The SLPA described the “envisaged Japanese loan” as “one of the best loan terms Sri Lanka has obtained”.

As per the agreement, the Sri Lanka Ports Authority (SLPA) retains 100% ownership of the East Container Terminal (ECT) Details of India’s contribution to the initiative are awaited, but New Delhi’s interest in partnering the project is well known. Over 70 per cent of the transhipment business at the strategically located ECT is linked to India.

The specific terms of the agreement to jointly develop the ECT will soon be finalised at a joint working group meeting, a dip-

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lomatic source said.

Meanwhile, China owns 85 per cent of the adjoining terminal known as the Colombo International Container Terminal (CICT) which was commissioned in 2013. The SLPA owns the remaining 15 per cent of the company.

The SLPA said 70 per cent of transhipment containers handled by Colombo was Indian export-import cargo. In December 2017, Sri Lanka, unable to repay a huge Chinese loan, handed over another deep sea port in the south of the island to a Beijing company in a deal that raised concerns at home and abroad.

The $1.12 billion deal first announced in July 2016 allowed a Chinese state company to take over the Hambantota port, which straddles the world’s busiest east-west shipping route, on a 99-year lease.

India and the United States are both concerned that a Chinese foothold at Hambantota, 240 kilometres (150 miles) south of Colombo, could give it a military naval advantage in the Indian Ocean. Sri Lanka has insisted that its ports will not be used for any military purposes.

past is perfect

The glorious past of Indo-Arab business partnership

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rime Minister Narendra Modi had made a big push for ramping up the bi-lateral trade between the Arab nations and India in his first term from 2014 to 2019..

But history books show that these increasd engagements with the Middle-East are a throwback to the glorius Indo-Arab business ties inked way back in seveth century.

Moreover, Gujarat was the gateway for the trade due to its efficient ports on the Saurashtra coast.

In a detailed study, the scientists of Goabased National Institute of Oceanography (NIO) found large number of Indo-Arab trading posts along the Saurashtra coast.

The most concrete evidences were the

huge Indo-Arabian anchors, some of them weighing over a ton, that were required to hold large vessels like Arabian dhow that undertook long voyages.

Renowned historian Makrand Mehta states the Arabs shared an extraordinary cordial relationship with Gujarat and was based on local business values of “peace, cooperation and spirit of tolerance.”

This is clear from the fact that Vastupal, who was the chief commissioner of Cambay port got mosque built there, in order to attract the Arabs to Gujarat. Similarly, Sheth Jagdusha of Bhadreshwar in Kutch got mosque built there, Mr Mehta said.

The historian says they gave fabulous foreign exchange to the country at that time. According to Dr AS Gaur, the prin-

Anchoring points

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ndo-Arab stone anchors found on Saurashtra coast point to the strong business ties between the two regions since as early as 7th century cipal technical officer at NIO, the stone anchors are the most clinching evidence of the flourishing Indo-Arab trade. “The Indo-Arab stone anchors are different from other kinds of anchors as they were very heavy and their design was technologically advanced to hold big vessels during the high tide,” he said.

These anchors are mainly built from hard rock like basalt though some made from limestone that is abundantly found in Saurashtra.

“Arabs also played the important role of middle-men in the Indo-Europe trade,” he said.

Below are some of the important trading posts that were explored during the Indo-Arab trade in the 7th century.

Mithvirdi

Ghogha

Presently, the site for the proposed nuclear power plant, Mithivirdi was another important port for the Arabs. In fact, the Indo-Arab stone anchors discovered by the NIO in Mithivirdi are the biggest ever to found anywhere in the world. These anchors are locally known as Bhima Ki Khatiya (Cot of Bhima), each weighing nearly 3,800 kg and about five meters long.

A bustling port town near Bhavnagar, Ghogha was one of the first landing places for Arabs in India. NIO study states that the earliest Arabic inscription from Ghogha dates to 1170 AD and ships up to 1,500 tones were loaded here. Majority of stone anchors found during explorations at Ghogha showed that they were the Indo-Arab type, indicating that big vessels were anchoring here during the high tide.

Dwarka

Maximum number of Indo-Arab stone anchors found in the Saurashtra coast were in this temple town. Of the total 123 stone anchors found in Dwarka, 63 were of the Indo-Arab make.

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case study

development of tuna port help uplift communities and provide alternate livelihood

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ow does the eco-system change with the creation of infrastructure and how it changes lives of people in the vicinity ? In our quest to find an answer to this question, we picked up the case of Dry Bulk Terminal developed by Adani Group at Tuna Tekra in Concession Agreement with Deendayal Port Trust. During the course of our journey to delve deeper into the subject, we came across many useful insights and thus, here’s our special feature on the subject for our readers.

Deendayal Port Trust had floated 16

Expression of Interest (EOI) for developing Dry Bulk Terminal at Tekra off Tuna in 2011. After several rounds of discussions and proposals, Adani Ports & SEZ Ltd. won the bid, being the highest royalty bidder, out-bidding the nearest competitor by a huge margin of 25.09% revenue share offering. It was awarded the project on Build, Operate and Transfer model of Public Private Partnership policy of the Ministry of Shipping.

The Concession Agreement was signed on 27th June 2012, however, the work on project started only on 18th

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December 2012, due to some delays in administration procedures.

Adani Group which is known for swift execution of its projects built the project in the stipulated 2 years’ time, a feat matched by very few infrastructure developers of the country. The project was ready to start operations on 18th December 2014. However, since the Minister of Shipping, Road Transport and Highways was available only on 10th February 2015 for inauguration.

This way the newly built terminal received its first vessel MV Sheng Ming, carrying coal cargo of 76000 MTs. The

project was inaugurated by the then shipping minister Nitin Gadkari on 10th February and now the project has completed four years of commercial operation.

The journey of 4 years is filled with its share of ups-and-downs. However, there also has been a steady growth from the 1st year volume of 3.7 MMT handled by the port to 5.7 MMT in the FY 2018-19. The port is further poised to quickly increase the volumes, after resolution of long pending issues that were acting as a bottle neck to growth.

The issues, being faced by PPP projects

in port sector were already covered in maiden issue of Marine Lines dated August, 2018. Now, since the resolution of these issues appear in near term, the port is likely to grow its volumes manifold.

From the historic point of view, Tuna was an important port under the British India and was considered important in international trade by the then Maharao of Kutch.

The port was thriving in pre-independence India with road and rail connectivity. Taking into view all the advantages from geographical point of

view of Tuna, DPT decided to develop deep draft, fully mechanized dry bulk terminal under PPP policy. Adani then brought the necessary skills of construction and operations and today we have a state-of-the-art facility serving the trade.

Adani Group has been at the forefront in CSR activities, wherever they build and operate infrastructure projects. At Tuna also, it undertakes CSR activities in the nearby villages of Tuna, Vandi and Rampar. The company is operating permanent medical centres in all 3 villages on a daily basis. The

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medical centre provides doctor’s consultation and medicines for a nominal fee of Rs. 10. Fodder is supplied to 3 cow shelters, 2 in Tuna and 1 in Rampar.

During the course of last 6 years, the company has undertaken several infrastructure projects such as fodder sheds, renovation of schools, construction of a crematorium, drainage lines, roads, study rooms, infrastructure improvement of places of worship for all communities, free medical treatment of villagers at the hospitals of Adani Group in Bhuj and Mundra, etc.

Fishermen upliftment activities are also pursued by the company on a regular basis including setting up of solar lights, supply of potable water, education facilities for children of fishermen and development of alternate livelihoods for 2nd generation of fishermen. Under this initiative, over 100 children of 2nd generation of fishermen who have been trained for routine semi-skilled port jobs are working in the port and have given up fishing permanently. Skill development initiatives are carried out from time-to18

time by company for men and women in these villages so that they can earn their livelihood.

These initiatives have brought marked changes in the lives of the people living in these villages and the claims from the company are independently verified by the students of Tolani Motwane Institute of Management Studies as part of their multi-disciplinary action project, during which they visited these villages for several days and conducted face-to-face interviews with villagers and noted the responses, to arrive at a conclusion about the changes in eco-system brought out by the development of this project by Adani Group.

Besides all this, Tuna Port has become the most preferred port of choice for imports of high value cargoes due to its superior quality infrastructure and clean reputation. The port is on its way to become a hub for US coal imports on the West coast of India. US coal is the most expensive amongst all grades of coal and naturally the importers are choosing best suited facility for their high value cargo.

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Apart from coal, fertilizer, sugar, agricultural products and salt are also routinely handled at this facility of Adani. According to customers they have ultimate peace of mind when their high value cargo lies in the custody of Tuna Port before being dispatched to the end locations, because of transparent IT enabled infrastructure of receipt, storage and dispatches at Tuna Port.

On a daily basis more than 500 trucks and a rake are loaded with cargo belonging to customers to various destinations across the country. This has resulted in development of allied businesses for local villagers, apart from the local employment opportunities for the residents of the surrounding villages. Over 50% of the people employed are from Kutch region, the testimony of this equitable and judicious treatment was visible on 9th January 2018, when the company was facing public hearing for amendment in environment clearance, wherein most of the villagers narrated the stories of benefits accrued to these villages and its residents due to this project. Local contractors, employees, small suppliers and villagers, all have benefitted from the project in one way or the other. Besides, ever since the company started building this project in 2012, work has never stopped for a single day due to local or external unrest which is an achievement for a project of this nature.

In terms of litigation, only 1 PIL was filed initially in 2013 by a group of local villagers, which was quashed by the Hon’ble Gujarat High Court as the same was unsubstantiated in its claims. Other than this, the project has never faced any litigation in last almost 7 years.

Kandla Port has also hugely benefitted with the development of this project and its revenues from this project is over 75 crores annually and is likely to cross 150 crores when the port throttles at its rated capacity.

This port with its 15 metres draft has provided a cost-effective solution to the trade in Kandla region and as the volumes increase and port handles near its full capacity of 14 MMT, these benefits for everyone will only increase. An entire eco-system has now developed for the benefit of all concerned.

Adani Ports Q4 profit up 41% at Rs 1,314 cr

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ndia’s largest port developer and logistics arm of Adani Group, APSEZ, Monday reported a 41.45 per cent surge in its consolidated net profit to Rs 1,314.19 crore for the quarter ended on March 31, 2019. Adani Ports and Special Economic Zone Limited (APSEZ) had clocked a consolidated net profit of Rs 929.06 crore for the fourth quarter of the last fiscal, the company said in a regulatory filing.

Total income of the company grew marginally to Rs 3,492.72 crore during the quarter under review as against Rs 3,487.29 crore a year-ago.

Its consolidated total expenses, however, decreased to Rs 1,840.35 crore in the January-March quarter as against Rs 2,162.10 crore in the year-ago period.

Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “FY19 had been a landmark year in the history of APSEZ. We have not only exceeded our guidance of handling of 200 MT (million tonne) in FY19 but also demonstrated our capability of being resilient and grow across all segments and ports. Our strategy to tie up cargo for our terminals at major ports ensured optimum

utilization of these ports.”

He said APSEZ signed a 50-year BOT (build, opeate and transfer) agreement for operating a container terminal at Yangon.

The proposed container terminal at Yangon, Myanmar is part of APSEZ strategy to expand its container terminal network in South-East Asia.

The proposed container terminal will be integrated with our Ports/Terminals along the east and south coast of India, unlocking synergies by offering multiple entry/exit points for the shipping lines which wish to call on this region, Adani said in a statement.

“We will continue to look at opportunities of inorganic growth in Logistics and ports business in India to increase our hinterland and connectivity. We will gain greater influence, beyond ports and concentrate on supply chain management.

Our logistics parks will concentrate on warehousing and improving our capability to handle variety of cargo moving in and out of our logistics parks, on our rakes, to our and other ports in India,” Adani said.

Deepak Maheshwari, CFO and Head of Strategy said, “...In all the four quarters

of FY19 and have achieved PAT of over Rs 4,000 cr. for the first time... We expect this trend to continue in FY20 giving us the ability to make strategic investments in port and logistics business.“ The company in the statement said its cargo volume was up 15 per cent in FY2018-19 and 19 per cent in the last quarter of the fiscal.

It said the board has approved a policy on “Related Party Transactions for Acquiring and Sale of Assets” while Nirupama Rao, (IFS) has been appointed as an Independent Director, which has increased gender diversity to 20 per cent of the Board composition.

APSEZ has 10 strategically located ports and terminals - Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai.

These represent 24 per cent of the country’s total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland.

The company is also developing a transhipment port at Vizhinjam, Kerala

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news in brief

BoB declares Dighi Port chief Vijay Kalantri a ‘wilful defaulter’

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n a sordid reminder of financial scandals involving diamond baron Nirav Modi and liquor king Vijay Mallya, a leading industrialist in Mumbai, who is close to the corridors of power, has been declared a “wilful defaulter” by the Bank of Baroda.

Vijay Goverdhandas Kalantri, chairman and managing director of Dighi Port, and his son Vishal Kalantri, a director of the port, owe approximately Rs 3,334 crore to a consortium of 16 Indian banks led by Bank of India, for loans given to develop

Dighi, Maharashtra’s first private sector port with direct berthing facilities and modern cargo handling equipment.

The Bank of Baroda placed a public notice in a Mumbai newspaper on Sunday, 2 June, which states: “Notice is hereby given to the public at large that Vijaya Bank (now Bank of Baroda) has declared the following persons as wilful defaulters, in terms of the bank’s/RBI’s rules and regulations. 1) Dighi Port Limited , (borrower) 2) Vishal Vijay Kalantri, director and guar-

antor and 3) Vijay Goverdhandas Kalantri, director and guarantor. The bank has sent a suitable communication to the borrower/guarantor informing the decision of the bank to declare him/ them as a wilful defaulter. As permitted by the RBI, the bank publishes photos of the wilful defaulters for the information of the public at large.”

Dighi Port is being developed on the two banks of Rajpuri Creek. The corporate insolvency resolution process of Dighi Port was admitted by Mumbai Bench of NCLT in order dated March 25, 2018 and in May NCLT accepted the resolution plan submitted by JNPT for Dighi Port. Kalantri also heads Balaji Infra Projects, which is developing the port, and he is the Honorary Consul of the Consulate of Uzbekistan in India.

Kalantri, however, told media that he has been wrongly implicated.“A willful defaulter is someone who has the capacity to pay but does not pay, or has siphoned off funds; both the cases are not applicable to me,” Kalantri said.

Mandaviya takes charge of shipping ministry

M

ansukh Mandaviya took charge as Minister of State (Independent charge) and said hard work to serve the nation will be his top priority.

A Rajya Sabha member of BJP from Gujarat, Mandaviya has become Union minister for the second time at the age of 47. He has also been given the additional charge of the Chemical and Fertilizers ministry.

Mandaviya was Minister of State for Road Transport, Highways; Chemical and Fertilisers; and Shipping in the Narendra Modi-led earlier government.

“I will put all hard work to serve the nation 20

to the best of my abilities,” Mandaviya said after taking charge.

With 12 major ports, projects like Sagarmala and 7,500 km of coastline, Mandaviya has huge task ahead that also includes converting over 100 rivers across the country as waterways.

The young parliamentarian prefers to ride bicycle for going to Parliament. He travelled to the Rashtrapati Bhavan on a bicycle to take oath. Mandaviya has been a member of various Parliamentary committees like panel on Petroleum and Natural Gas, Chemicals and Fertilisers, Select Committee of Rajya Sabha

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on Real Estate Bill and National Welfare Board for Seafarers.

Earlier, he was Member, Gujarat Legislative Assembly from 2002-2007 and Chairman of Gujarat Agro Industries Corporation from January 2011 to March 2012.

Mandaviya, who hails from Bhavnagar district in Gujarat, is a businessman, agriculturist, political and social worker..

India’s OMCs join hands to lay world’s longest LPG pipeline

news in brief

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New chairman visits DPT

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eendayal Port chairman Sanjay Mehta visited the port recently and inspected its operations. He visited all the cargo and liquid jetties including container terminal, coal and timber yard as well as backup area. Maheta also witnessed the basic facilities for the workers to be upgraded and directed the concerned officers to look into the matter on priority basis. During the visit, Maheta told the officials to pull up their shocks to maintain No. 1 position amongst the major ports and achieve the target set by the central shipping ministry. “DPT has enormous growth potential and we need to work towards achieving it,” Mehta told the officers.

DPT operational HODs, deputy conservator, traffic manager I/C too remained present along with senior officers.

Sanjay Kumar Mehta is a senior IFS Officer with more than 28 years of wide experience in Public Administration and

Governance. Before joining Deendayal Port Trust as Chairman, he was Additional Principal Chief Conservator of Forests, Junagadh Circle, Govt. of Gujarat.

He was responsible for managing the Forests and Wild-Life related issues of 11 districts of Saurashtra region.

Mehta has done M.Sc. in Botany from Science College, Patna University. In a long and distinguished career, Shri Mehta has held several key assignments in the State Government including prestigious NRIC projects CF, JBIC, Gandhinagar He has also served as Executive Director, Gujarat Agro Industries Corporation Limited, Ahmedabad and has coordinated all the investment in Agriculture Sector during Vibrant Gujarat 2009. He has also served as MD (Managing Director), Gujarat State Rural Development Corporation, Gandhinagar and had taken many initiatives to improve the efficiency of the Corporation Shri Mehta has worked as Deputy Conservator of Forests in Junagadh, Mehsana, Vadodara and Kutch districts He is a keen player of badminton and lawn tennis.

ndian Oil Corporation Ltd (IOCL) India’s leading marketer of oil and gas will join hands with other oil marketing companies (OMCs), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL), for laying the world’s longest LPG pipeline from Kandla in Gujarat to Gorakhpur in Uttar Pradesh.

The 2,757-km cross-country pipeline will connect three major states with the west coast to supply LPG to 22 bottling plants of the three OMCs through the most economical and environment-friendly transportation mode.

A joint venture agreement for the project was signed SK Jha, CGM (Gas), IndianOil; I Srinivas Rao, ED (LPG), BPCL; and JS Prasad, ED (Pipelines), HPCL. recently.

The Kandla-Gorakhpur LPG pipeline, estimated to cost about Rs.10,000 core, would be implemented by the joint venture company of IndianOil with 50 per cent share, and BPCL as well as HPCL with 25 per cent share each. The pipeline will source LPG from three import terminals on the west coast and two refineries (Koyali and Bina) and supply LPG to 22 bottling plants of the three OMCs connected en route - three in Gujarat, six in Madhya Pradesh and 13 in Uttar Pradesh.

In addition, the pipeline will supply LPG to 21 more bottling plants in Rajasthan, Gujarat, Madhya Pradesh, Maharashtra and Uttar Pradesh through road-bridging.

Once completed, the single pipeline can transport up to 8.25 million metric tonnes of LPG per year, which amounts to about 25% of India’s LPG demand.

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21

health

Cure from the Sea

S

epia has a broad range of action over female organisms, and is one of Samuel Hahnemann’s greatest contributions to the homeopathic products .Dried ink of the cuttle fish is used in preparing Sepia.

A look at the cuttlefish provides interesting parallels to the Sepia personality.Cuttle fish are not sedentary by nature, they are in constant motion, except when in defence mode at which time they can remain utterly still .They glide through the water smoothly and have the ability to propel themselves backwards over short distances to evade their enemies.Like cuttlefish, Sepia types prefer to keep moving and experience improved energy and overall outlook from exercising, especially dancing. As for the cuttlefish’s ability to propel itself backwards, Sepias are often antisocial, requiring an exorbitant amount of personal space. Fiercely independent, they can withdraw instantly if they feel they are being cornered or obliged. The cuttlefish behaves similarly when cornered in the sea, ejecting their ink and escaping, quite literally, under a cloak of darkness. The female cuttlefish is said to have complete disregard for her eggs once they are laid; Sepia women are quite often indifferent to their families, as they are too drained to even care.

Sepia is considered predominantly a wom22

en’s remedy.The Sepia woman, in her healthy state, is inherently independent, often with an artistic, or creative flair. She is an intuitive individual, with an implicit knowledge of her strengths and much self-awareness. She does what she likes on her own terms.

Sepia displays general chilliness and sensitivity to cold air, as well as an overall aggravation by missing regular meals, from intercourse, during pregnancy, before menses, and

before storms. One guiding symptom of Sepia is that of not having been well after childbirth (overall energy, loss of libido, or appearance of new complaints after that time). She may have the internal sensation of a ball – in the abdomen or the rectum, and a tendency towards constipation. There is a general feeling of weakness and bearing down; Sepia may need to cross her legs when sitting, as

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Dr Anjana Dongre ( DHMS), Ahmedabad

she feels her pelvic organs will fall out otherwise. There is an intolerance to any tight clothing around the waist. Sepia is better for warmth and gentle motion (sometimes even vigorous exercise), and is a natural dancer.

A 32 year old Lady was referred to Renew clinic by a gynaecologist as she suffered from recurrent vaginal herpes and Crohn’s disease. She was tired of taking antibiotics , steroids, and anti-viral medications. She was anxious and nervous on her first visit to a Homoeopath. She was weeping while telling her symptoms. She had vaginal discomfort due to herpes , discharge and pain.Headache with abdominal bloating. Often felt as if sitting on a ball. Stools were ball like .Extreme weakness unable to do daily chores. She kept saying all my problems began after the birth of my second child. Also she mentioned her desire to learn some classical dance. But had no time from her routine and health would not permit her to enjoy.

Sepia and other acute remedies got her out of her diseased state. This shows us that similarity in the nature of the cuttle fish and human beings help us bring about relief in complaints.

Caution: Please take medicines only after consulting your homoeopath . Do not self-medicate yourself.

MARINE LINES, May - June 2019. RNI No. Under Process, Title Code: GUJENG16193