Marine Lines - November 2021

Let's turn the tides

Volume:I Issue:31 November 2021

DRUGS THRU PORTS....

LINES

EMERGING NOVEL TRENDS: AN AREA OF GRAVE CONCERN

MARINELINES Editor-In-Chief Girish Joshi

From the Editor's Desk

Consulting Editor Dhimant Bhatt Contact : 9930375212

75 आजादी का अमतृ महो व

Retained No. 1 Position

amongst All Major Ports for the 14th Year in a row

First Major Port to handle 100+ MMT Cargo for the 6th Consecutive Year

Senior Assistant Editor Neel Shah Design & Layout Pravin Kacha Contact : 81606 33932

Head Office Marine Lines 3. 2nd Floor, Plot No. 283 Madhuban Tower, 12/B Gandhidham, Kutch, 370201, Gujarat, India email: marinelines2018@gmail.com +91 99095 55416 Mumbai Branch Head Chakradhar Gundetty 16,Asmita Garden II Poonam Sagar Complex, Mira Road(East) Thane: 401107 Contact : +91 9967978022 email: chakradhargpr@gmail.com

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Editor: Girish Joshi.

Dear Reader’s,

I

t seems as if ‘Come September’ is an new emerging phenomenon for global drug mafias code. The zest of vigilance by our alert officials who in collaboration with their counterparts created impediments for drug cartel and their carriers should be appreciated, anyhow the cat and mouse race will always be there but some how officers are always found on the winning side. It is more like intuition over rides the intention and discerning the unusual cargo or movement is where most of our officers are faithful.

Even the officers at sea ports and airports with their inherent skill of appraising doubtful, mischievous and misleading declarations has mostly prohibited the wrong doers from pushing through illicit items and evading legitimate taxes.

ML carried a special report in September 2020’s issue, when the marine police, BSF, coast guard DRI and NCB successfully apprehended drugs worth 22000 Cr when it was being pushed into the country to carry out sinister activities.

Now this September again an atempt was made to push physiotherapic drugs into the Country and for the first time the quantity was huge, that too on the most busiest indian ports like JNPT Mumbai and Adani’s Mundra port. The Clearing House Agents and EXIM licensees (IEC) should be issued after due diligence and authentic verification. It is seen in many cases that the new overwhelmed and inexperienced licence holders walk into the trap of imposters and land into trouble. “ The reforms made in hurry get need burry faster” The manageable Faceless assessment scheme has literally turned out to be graceless. The whole idea of no human face interaction to curb corruption is a misnomer.

The overnight changes are easy to do in smaller countries but not in a large democratic country like ours, the ambiguous system of working inculcates the opportunist and wrong doers as they are always sitting on the fence.

Gradually the craze of becoming millionaire ASAP is engulfing the level playing field and studious youth are looking at foreign options.

Many experts believe that the nuke and missile war is an obsolete way of war. The Drug infusion is an silent war and it can kill the generations to come. Hence on a serious note we need to act now and here before it is too late. Mr Monish Bhalla an former NCB officer has rightly pointed out that the Clearing Agents, Port users and agencies need to work togather to stop this frenzy. th The air cargo infrastructure investment seems to be slow return but lucrative Avenue for farmers from far flung areas can cater the cities overcoming the logistical slowness for their cash crops.

GatiShakti is an ambitious program, inculcating the speedup of national infrastructure.

A zero emission blue print and it’s urgency is an one more challenging issue which the world seems serious now.

Retained No. 1 Position amongst All Major Ports for the 13 Year in a row

Delivering Maritime Excellence

Girish Joshi Editor-In-Chief

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Inside

SWAYAM

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COVER STORY:

Emerging Novel Trends: An Area of Grave Concern

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NOVEMBER 2020 :

Pak-Narcos Dumped Contraband Lands Indian Shores

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AIR CARGO:

Air Cargo corridor a new beginning

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EXPERT SPEAK:

A Ship Can Be Arrested In India For Any Commercial Maritime Disputes With Refrence To Maritime Claim 4

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DPT: DPT rolls out an ambitious set of pearls of infrastructure projects: Gati Shakti

SSSPL

COVER STORY

EMERGING NOVEL TRENDS: AN AREA OF GRAVE CONCERN

By Monish Bhalla

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Former NCB Officer

he Cruise Drug Raid by NCB Mumbai and subsequent arrest of a Bollywood Celebrity’s Son has precipitously brought the focus on the mounting Drug Menace in our country. Media came in Hyper Action resulting into - Unending TV debates, Political parties engaging in a Verbal 6

wars to gain Brownie Points; personal Attacks and character assassination of officers, unwarranted comparison of State verses Central Agencies irrespective of both working towards a common goal -making India Drug Free. One is Afraid that we may not lose the very purpose and focus, in this deafening Noise.

A massive consignment (2,988.22 kg) of heroin, with an estimated street value of Rs 21,000 crore, was seized at Gujarat’s Adani-owned Mundra port, by

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the Directorate of Revenue Intelligence (DRI) on 15 September2021. The inputs were provided by none other than NCTC -National Customs Targeting Centre under Directorate General of Analytics and Risk Management (DGARM)- India’s Premium IT Intelligence Based Directorate. The National Investigation Agency -NIA has taken over the investigation and PAN India raids were conducted resulting into Arrest of various persons including some many foreign nationals.

Earlier in July 2021 , Directorate of Revenue Intelligence (DRI), in coordination with National Customs Targeting Centre and Nhava Sheva Customs seized about 300 kg of heroin ( Street/ Market value Rs 2000 Crores ) from two containers at the Nhava Sheva Port in Navi Mumbai.

So, What was common in both these Drug Hauls?  Both the Consignments were ac-

tually originating from Afghanistan, but Export was done from other neighboring countries.  Both the consignments were concealed and camouflaged in Talc Stones /powders.  Both were detected in Shipping Containers Imported at India’s Prominent and busiest Ports.  Both seizures were a Result of Specific Inputs for NCTC-DGARM.

India is situated in the neighborhood of one of the major opium-cultivating regions in the world and sandwiched between two of the world’s largest heroin producing areas: the Golden Crescent and the Golden Triangle. Illicit heroin produced in these regions. According to the latest UNODC survey, Afghanistan is the world’s largest illicit opium-producing country, accounting for more than 90 percent of global output. This has increased

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the availability and use of illicitly produced opiates. For many years, drug trafficking in South Asia has been the most lucrative form of business for criminals. Drug markets have evolved, and

the region is now witnessing challenges such as bulk trafficking in heroin.

As the result of the economic downturn triggered by the pandemic, fragile communities in areas of illicit cultivation

of drugs are now increasingly vulnerable, especially in Afghanistan, where the appeal of illicit crop cultivation of opium poppy is likely to rise.

Contrary to what majority experts thought that COVID-19 will slow down the Drug trafficking due to multiple factors including lock-downs

and international travel restrictions , the Drug trafficking in fact increased exponentially. Boredom, depression , joblessness has in reality triggered

drug abuse. Dark-net and contact-less delivery to the drug addict has increased the Drug business world-over

Afghanistan reported a 37 per cent increase in the amount of land used for illicit cultivation of opium poppy during 2020 compared with the previous year. It was the third highest figure ever recorded in the country and accounted for 90 per cent of the global total of opium production in 2020. The increase follows a trend that has seen the global area under opium poppy cultivation rise over the past two decades, particularly after 2009.

Afghanistan is a prime example of how politics, security and narcotics interlink. With politics and security

being discussed during the current peace negotiations, the illicit economy as an important wealth creator is not to be overlooked. Recently the Indian Government in a Joint statement with other nations emphasized the Drug Trafficking issue in Afghanistan.

We know that this drug problem faced by Afghanistan has regional and global roots and ramifications. It’s a known fact that ,Afghanistan grows illicit opium in 33 out of 36 of its provinces and producing a whopping 700 MTs illicit Drugs -Heroin . Thus, 90 percent of world illicit Drug Heroin

is produced and smuggled out from Afghanistan. The same is used for NacroTerror funding. The total area under opium poppy cultivation in Afghanistan was approximately 224,000 hectares in 2020, which is an increase of 37 per cent or 61,000 hectares when compared to 2019, the executive summary of the Afghanistan Opium Survey 2020, states. At 224,000 hectares, the area under cultivation was one of the highest ever measured.The Survey was jointly released by Afghanistan’s National Statistics and Information Authority (NSIA) and UNODC.

SOURCE : UNDOC REPORT

SOURCE : UNDOC REPORT

SOURCE : UNDOC REPORT

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With more money and power coming in the had of Drug Traffickers, they have started using novel ways of smuggling Drugs in India. India is used as a transit route to other countries rather than a consumer. The money factor is Huge. There is also an Anti India angle. People involved in Anti-National activates are knee deep into such acts and provide the logistic support for rerouting, repacking, concealing and exporting these Drugs to various European and Oceanic countries. As per

some recent reports Australia and New Zealand are High profit destinations of these drugs.

These emerging trends of smuggling Drugs through Ports is extremely worrying. One cannot expect very specific inputs every time as there are multiple factors involved in such intelligence -inputs gathering. All major ports are working with the RMS (Risk management system) and thus only a few Containers are subjected to 100 percent

examination. Thus, there are ample chances that an odd consignment may be missed. Moreover, unfortunately the container X-rays facilities are also not fully operative on all ports and their Drug detection efficiencies are not free from doubt. The Jawaharlal Nehru Port Trust (JNPT) has installed two mobile X-ray scanners at Nhava Sheva International Container Terminal and APMT IN JUNE 2021. But there is a huge requirement looking to the traffic on the ports.

This leaves us with only one factor – Vigilant Customs officers. Thus, not only the Customs officers posted at the ports must be Extra- Vigilant and alert, the Custom House Agents -CHA and CFS- Customs Warehousing in-charge persons have also to be on their toes and watch all sus-

picious activities. CHA is one the most important links in such matters are anyone who imports anything will engage one or the other CHA. A smart CHA can be extremely useful for gathering intelligence and help the Anti-smuggling agencies to stop this Drug menace.

Monish Bhalla (Former NCB officer.)

Mobile X-ray scanners at Nhava Sheva International Container Terminal 10

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EXPERTS SPEAK

A SHIP CAN BE ARRESTED IN INDIA FOR ANY COMMERCIAL MARITIME DISPUTES WITH REFRENCE TO MARITIME CLAIM

By Advocate AK Bhatt WHO CAN ARREST ?

ADMIRALTY COURT OF STATE (THE HIGH COURT OF COSTAL STATE IN INDIA) WHEN CAN ARREST: WHEN APPLICATION / PLAINT RECEIVED FROM THE CLAIMENT, FOR THE 14

PURPOSE TO PROVIDE SECURITY AGAINST A MARITIME CLAIM MARITIME CLAIM MEANS (a) Dispute regarding the possession or ownership of a vessel or the ownership of any share therein; (b) Dispute between the co-owners of a vessel as to the employment or earnings of the vessel;

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(c) Mortgage or a charge of the same nature on a vessel; (d) Loss or damage caused by the operation of a vessel; (E) Loss of life or personal injury occurring whether on land or on water, in direct connection with the operation of a vessel; (f) Loss or damage to or in connection with any goods;

(g) Agreement relating to the carriage of goods or passengers on board a vessel, whether contained in a charter party or otherwise; (COGSA & MMTA WILL ALSO APPLY WITH REFRENCE TO LIMITATION PERIOD FOR NOTICE AND INFORCEMENT OF CIVIL PROCEEDINGS (FOR INSTITUTION OF SUITS 12 MONTHS & 9 MONTHS) (h) Agreement relating to the use or hire of the vessel, whether contained in a charter party or otherwise; (i) Salvage services, including, if applicable, special compensation relating to salvage services in respect of a vessel which by itself or its cargo threatens damage to the environment; (j) Towage; (k) Pilotage; (l) Goods, materials, perishable or non-perishable provisions, bunker fuel, equipment (including containers), supplied or services rendered to the vessel for its operation, management, preservation or maintenance including any fee payable or liveable; (m) Construction, reconstruction, repair, converting or equipping of the vessel; (n) dues in connection with any port, harbour, canal, dock or light tolls, other tolls, waterway or any charges of similar kind chargeable under any law for the time being in force; (o) claim by a master or member of the crew of a vessel or their heirs and dependents for wages or any sum due out of wages or adjudged to be due which may be recoverable as wages or cost of repatriation or social insurance contribution payable on their behalf or any amount an employer is under an obligation to pay to a person as an employee, whether the obligation arose out of a contract of employment or by operation of a law (including operation of a law of any country) for the time being in force, and includes any claim arising under a manning and crew agreement relating to a vessel, notwithstanding anything contained in the provisions of sections 150 and 151 of the merchant shipping act, 1958 (44 of 1958);

(p) Disbursements incurred on behalf of the vessel or its owners; (q) Particular average or general average; (r) Dispute arising out of a contract for the sale of the vessel; (s) Insurance premium (including mutual insurance calls) in respect of the vessel, payable by or on behalf of the vessel owners or demise charterers; (t) Commission, brokerage or agency fees payable in respect of the vessel by or on behalf of the vessel owner or demise charterer; (u) damage or threat of damage caused by the vessel to the environment, coastline or related interests; measures taken to prevent, minimise, or remove such damage; compensation for such damage; costs of reasonable measures for the restoration of the environment actually undertaken or to be undertaken; loss incurred or likely to be incurred by third parties in connection with such damage; or any other damage, costs, or loss of a similar nature to those identified in this clause; (v) costs or expenses relating to raising, removal, recovery, destruction or the rendering harmless of a vessel which is sunk, wrecked, stranded or abandoned, including anything that is or has been on board such vessel, and costs or expenses relating to the preservation of an abandoned vessel and maintenance of its crew; and (w) Maritime Lien.

FOR THE WAGES AND OTHER SUMS DUE TO MASTER AND CREW MEMBERS, LIMITATION WILL BE TWO YEARS. (COGSA & MMTA WILL ALSO APPLY WITH REFRENCE TO LIMITATION PERIOD FOR NOTICE AND INFORCEMENT OF CIVIL PROCEEDINGS (FOR INSTITUTION OF SUITS 12 MONTHS & 9 MONTHS) ***** CONCLUSION IS - START WITH IN A YEAR***** LAW APPLICABLE: In General Civil procedure code, 1908 Limitation Act,1963 The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 The Merchant Shipping Act, 1958 International convention on the arrest of ships, 1999 Gujarat High Court Rules Bombay High Court Rules The Indian ports Act, 1908 The Major Port Trusts Act,1963 Maritime Zones Act,1976 Bills of lading, MMTA & COGSA,1925 M.V. Elisabeth (Supra) 1993 SC,1014

WHERE A SHIP CAN BE ARRESTED ?

UP TO TERRITORIAL WATER OF STATE (IN GENERAL WITH IN 12 NAUTICAL MILES FROM THE BASELINE) Limitation period ?

The limitation period for the same is three years as per the Limitation Act, 1963. (May be extended on different conditions / actions by parties.)

IF YOUR’S MARITIME CLAIM COMING UNDER THE DEFINITION OF MARITIME LIEN THEN LIMITATION WILL BE ONE YEAR

By Advocate AK Bhatt Email: akhilesh.bhatt77@gmail.com

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SHIPPING SECTOR

AIR CARGO

“A ZERO EMISSION BLUEPRINT FOR SHIPPING” : ISC-RICARDO REPORT

AIR CARGO CORRIDOR A NEW BEGINNING

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By ML TEAM

he GLOBAL shipping sector will experience a new technological revolution in the next few years with new technological shifting to alternative fuels like biofuel, according to the recent report “A zero emission blueprint for shipping” released

by International Chamber of Shipping (ISC) in collaboration with Ricardo.

International shipping is key to the global economy, transporting about 90% of global trade volumes with a value of $14 trillion, using 4 million barrels of oil a day – 4% of global oil production.

Fossil-based fuels make up more than 98% of total current fuel requirement, therefore the shipping sector will need to innovate and develop new technologies to deliver the zero-emissions propulsion systems required to meet climate goals.

This report, based on the findings of industry research led by the global engineering consultancy Ricardo, identifies the innovation pathways and the investment needed to support an industry transformation.

According to the International Energy Agency (IEA) just 0.1% of energy consumed in shipping comes from low-carbon fuels. Under their current policy framework scenarios low and zero-carbon fuels will only make up less than 3% of shipping’s total energy consumption by 2030 and roughly one third by 2050, significantly short of the net-zero target. Despite some promising announcements and plans there continues to be a lack of investment in zero-emission technologies, with the IEA highlighting that the total amount of corporate R&D investment for maritime has decreased, from $2.7 billion in 2017 to $1.6 billion in 2019.

To accelerate the shift to zero-carbon fuels, multiple nascent technologies need to be developed to reach large-scale

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deployment. Shifting to alternative fuels such as hydrogen, ammonia, biofuels and electrification from renewable sources could cut 80% of emissions from maritime transport. The current pipeline of solutions and projects while welcome are not enough to deliver the paradigm shift in the technologies needed and at the scale required to decarbonise shipping.

The shipping sector will experience a new technological revolution – as previous from wind to coal and then from coal and steam to fossil fuel combustion – that will need to meet maturity in less than three decades.

This necessitates a complete transformation of the current dominant technology and a major scaling up of finance for technology development in addition to regulatory policies and effective public-private alliances.

Only then can we deliver the thousands of zero-emission ships required to be in the water by 2030 and to meet our 2050 net zero ambitions. Significant and long-term, high-risk investments will be required to trigger the step-change to advance tech-

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nology readiness levels and pilot these technologies.

• The report identifies 265 projects that address key technical and systemic challenges that need to be overcome to kick-start and accelerate the transition to zero-carbon emissions.

• It highlights the 20 high-priority example projects requiring immediate investment.

• $5 billion is needed to advance alternative technologies towards the pre-commercial deployment stage.

• Projects identified may take between 1–6 years to mature, so action is required if we are to deliver significant numbers of zero-emission ships by 2030.

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ndia is set to become the 3rd fastest growing economy in the world by 2030 and this will propel the Indian aviation industry as the 3rd largest in the movement of both passenger and cargo traffic. However, India’s total annual air freight volume stands at 3.3 million metric tonne (MT) despite a continuous growth of over 10 per cent year-on-year (YOY) and has not reached close to any one of the top three world-class airports, i.e. Hong Kong- 5 millon MT, Memphis- 3.56 million MT, and Shanghai- 3.26 million MT, for the year 2017-18 owing to procedural bottlenecks.

Although, amidst challenges, the Indian air cargo sector throws innumerable opportunities. In order to ensure smooth flow of air cargo, it is critical to enhance safety, improve security, strengthen the value

proposition of air cargo, driving efficiency through global standards, improving quality, strengthening partnerships, and building sustainability.

Industry leaders also avow that India’s air cargo industry is poised to achieve greater heights provided some of the procedural bottlenecks are addressed, which would aid to the cause immensely.

This would require combined efforts in the field of infrastructure and technology to be able to take advantage of the opportunities. Simultaneously, there should be liberal policy initiatives on the part of the Government. Regulation and technology both put their own unique pressures onto freight forwarders which mean that strategic choices need to be made more carefully in order to succeed.

GROUND REPORT

When Spicejet, an Indian low-cost carrier, geared up for 737 freighter operations in September 2018, India came under scrutiny by the air cargo market.

Total cargo at all Indian airports during 2017-18 witnessed a growth rate of 12.7 per cent with 3.35 million MT cargo traffic in FY’18. International air cargo traffic increased by 15.6 per cent to reach 2.14 million MT in FY’18 whereas domestic cargo traffic increased by 8 per cent to reach 1.21 million MT. At present, international cargo contributes 60 per cent to India’s total air cargo sector, approximately double the growth rate as compared to the domestic air cargo business.

India’s top air freight trading market is the UAE, which has a 30 per cent share; followed by Qatar at 11 per cent. The highest rate of growth was to and from

Since the technologies needed to achieve net zero-carbon goals have not yet been commercialised, it is vital that the pace of research and development of maritime fuels and technologies is accelerated. Vessels have a lifespan of 20–25 years so the first commercial zero-carbon ships must start to be deployed in the next decade to meet 2050 targets.

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Ethiopia, which saw more than double the tonnage in 2017, YOY. Some 35 flights a week are permitted between the two countries, and Ethiopian Airlines in August 2018 announced its intention to expand its seven-year codeshare with Air India.

Mumbai and Chennai were among the world’s top 10 fastest-growing airports in freight terms, with 18.1 per cent and 17.2 per cent growth respectively, while Delhi and Mumbai are among the top 50 biggest freight airports.

DRIVERS AND FACILITATORS OF GROWTH The Indian air cargo industry is poised for tremendous growth in the coming years. Airfreight has registered a CAGR of 6.79 per cent between FY’10 to FY’19; Chhatrapati Shivaji Maharaj International Airport (CSMIA) itself has recorded a growth of 6 per cent in FY’19 compared to the previous year, informs Manoj Singh, Sr Vice President– Cargo, Mumbai International Airport Ltd (MIAL). “Considering the current state of operations, we are optimistic that the sector will grow at a reasonable pace against the backdrop of an evolving pharmaceutical business model and robust growth of E-commerce market.

As per reports, the Indian E-commerce industry is set to become the second-largest E-commerce market in the world by 2034. The industry is expected to spend an additional $950 million to $1.9 billion on warehouses and logistics by 2020.

Therefore, we can undoubtedly say that the E-commerce market is one of the major drivers of India’s air freight business across domestic and cross-border sales.

Nonetheless, both pharmaceutical and E-commerce segments have been the key drivers in supporting CSMIA’s air cargo growth as well,” says Singh.

The cargo trade has moved to finished goods, and product driving the growth includes pharmaceuticals, gems and jewelry, equipment and ready-made garments, apprises Keku Bomi Gazder, CEO, AAI Cargo Logistics and Allied Services Company Limited (AAICLAS). “The transition of E-commerce is going to benefit the air cargo sector in India, as supply chains adapt to these new trends. Although it is

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quite difficult to foresee where the market will be heading to, air cargo is likely to witness moderate growth of 6.7 per cent in 2019,” says Gazder.

Reportedly, India is the largest supplier of low-cost generic drugs globally, catering to over 20 per cent of the global demand by volume. As such, India is the chemist of global trade and pharmaceuticals have been its global commodity since 2013. According to Bharat Thakkar, Joint Managing Director, Zeus Air Services, “India’s pharma exports rose 11 per cent to reach 19.2 USD billion during 2018-19 mainly driven by higher demand in regions such as North America and Europe.

The US Constitutes about 30 per cent of Indian pharma exports followed by Africa and the European Union (EU). Going ahead, we see Africa and South America as the next frontier for India’s surge in air logistics.”

Although, Thakkar feels that the critical

need to reduce the transit time of goods carried by air as they are time-sensitive and also significantly higher in terms of value, it will be a key factor, complementing India’s air freight growth.

Given the fact that pharmaceuticals, textiles, automotive components, and leather goods are India’s top export commodities through air; economic development, technology adoption, increase in airline/airport capacity, and liberal government policies are the factors facilitating India’s air cargo growth, believes industry veteran Ramesh Mamidala, Former CEO, Çelebi Delhi Cargo Terminal Management India Pvt Ltd. “FDI in manufacturing, Government’s

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focus on Ease of Doing Business, ‘Make in India’, export-oriented manufacturing of electronics, pharmaceuticals, etc. are helping facilitate India’s air cargo growth story,” says Mamidala.

Besides, among the various expansion and up-gradation initiatives taken up by the regulatory bodies, increasing investments to modernise and develop cargo projects by AAICLAS, expansion and up-gradation of existing airports, development of low-cost airports by Airports Authority of India (AAI), expansion of Green-field projects, along with increasing private sector participation is currently driving the country’s air cargo growth, observes Gazder.

However, to realise the potential, the industry must expand its reach by tapping unserved regions with smaller freighters and connecting them to mainland hubs.

At domestic level, considering the continued growth forecast of passenger traffic, introduction of the Ude Desh ka Aam Naagrik (UDAN) scheme along with an increase in the number of airports, will accelerate the growth of Indian aviation sector and encourage airlines to add more fleet to their current network thereby producing an additional belly capacity for air freight, feels Singh.

IMPROVING EFFICIENCY BY STREAMLINING PRODUCTIVITY While new reports by global consulting major Deloitte and industry body FICCI notifies that the air cargo industry in India continues to be dominated by paper-driven legacy systems and procedures which are time-consuming and expensive to comply with, Jaideep Raha, Managing Director, Jetex Oceanair Pvt Ltd reiterates saying that adoption of technology has made India’sair cargo industry substantially paperless, thus saving time and manpower which translates into economical pricing and faster processing of documentation and less clerical mistakes as part of Human Error factor.

Clearly, there is a need to expedite some of the technology initiatives to not just automate all information systems but also to streamline redundant processes and regulations.

Thakkar says, “The paperless era we all have been looking for post-Singapore Govt Model is now around the corner and my understanding is, margins will be tight.

The only crucial determiner is Government must work in tandem with a strategy to ensure all parties remain aligned to improve operational effectiveness and deliver against the ‘to-be’ state.”

According to Singh, “Indian air freight industry is perhaps the most innovative and progressive in terms of technology as compared to other modes of transport. The adoption of technology and digitalisation of processes have become much faster in recent years. Though increasing technology impacts the size of the workforce, it is critical for air freight to maintain its competitiveness.”

A similar response, Vipin Vohra, Chairman, Continental Carriers Pvt Ltd maintains, “Technology in the air cargo industry is moving into a new phase of digitalisation and this means more ability to move air cargo quickly, end-to-end paperless transport processes, and improved transparent customs and regulatory frameworks. This certainly gives customers confidence, and is resulting in the growth of India’s air freight industry.”

Along with key technology ideas such as Blockchain, Artificial Intelligence (AI), completely integrated Electronic Data Interchange (EDI) driven air cargo community portals, which Mamidala says are expected to drive and lead to encouraging growth for air freight in India; real-time data, proper planning of cargo, identifying hubs and spokes, analysing market trends and working in close collaboration has streamlined India’s air cargo growth, believes Sailendra Kumar Thakur, HeadNorth and Gujrat, Aspinwall & Co Ltd. “Connectivity, cyber-security, AI and automation have the greatest impact at the ecosystem level because they are the key enablers of movement along the value chain, leading to the reinvention of operation and revenue generation models.

Other technologies, such as green energy and new materials, are important, but have limited impact on the emergence of new products,” says Thakur.

Certainly, the global air cargo industry

can save billions of dollars in costs if it automates transactions between various players in the supply chain.

“Automation can only result in better productivity if there is a change in the mindset of Government officials and airport operators using the service. Automation in India’s air cargo industry is in the process of being upgraded at major airports and the effect of such automation should ideally result in higher throughput and lower dwell times, but the results will need to be seen in the future,” explains Vikram Kumar, Chairman, ACAAI-NR and Director, CTC Air Carriers Pvt Ltd. Above all, the training and sensitisation of staff to changes in processes and the acceptance of paperless, non-human intervened transactions will be the biggest factor to enhance and improve the air cargo trade and take it to world-class levels, says Kumar.

Here, the need is to increase the use of e-AWBs as the first step to further digitisation of air cargo which will yield real benefits and efficiencies for the industry. Definitely, the magnitude of volumes in the next couple of years, be it from E-commerce; or otherwise, will force all service providers to not only adopt automated and digitised solutions but also integrate them to have better transparency in the overall supply chain, exclaims Anil Mantri, Director, Sealair Freighters International Pvt Ltd. EMERGING MARKET ECONOMY After having achieved dominance in the service sector, India is now looking towards becoming a global manufacturing hub. This intention has been made clear by the ‘Make in India’ initiative that has been launched by the government. As a part of this initiative, special concessions have been announced for multinational companies to create manufacturing bases in India. This has definitely drawn the attention of many multinational companies that are looking to reduce the dependence of their supply chain on China. It would be inappropriate to say that within a short span of time India will compete with the likes of Japan, Germany, and China. However, the process of transforming the manufacturing

sector has already begun.

Definitely, Thakur says, the entire world is looking to join hands and companies are aggressive to set up their manufacturing units and export finished goods from India. E-commerce giants are planning to join hands with Kirana stores as they feel the demand is more here. This will boost India’s air cargo business as consumers are in a hurry to get their products as soon as possible. Besides, market liberalisation, favourable Export-Import (EXIM) policies, Free-trade Agreements (FTAs), removal of trade barriers concerning a gamut of formalities, will further facilitate the ideology of Indian market as a potential destination for sourcing of services.

Considering its geographical location, India has the potential to become a global hub for air cargo. Not only its geographical location but also the amount of international trade that the country is engaged in now makes India a good location for such a hub. Even a place like Dubai, where there is any manufacturing, has made itself a good cargo hub destination. There is no reason why India with all its growth in the manufacturing sector and exports and imports could not become another global hub.

“India has a geographical advantage to operate as a successful hub initially serving the emerging markets of South Asian Association for Regional Cooperation (SAARC) and countries such as Myanmar, Vietnam, and Cambodia. This cautious start will provide the requisite knowledge and expertise to take on the other existing major Middle Eastern/Asian hubs and expand its hinterland up to Japan in the east and Africa in the west. Besides, India offers a stable political environment, skilled workforce, however existing airport infrastructure and user charges are likely to act as a major disincentive to attract customers to use the hub,” feels Thakkar.

Open Sky Policy on air cargo and improved international connectivity coupled with expanding cargo-handling infrastructure, both physical and digital have sustained the high growth of air cargo in India in the last few years, according to Gazder.

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DPT “The Indian air cargo market is poised for significant maturation on the back of India’s economic strength and many other drivers of growth in India’s commerce, trade, investment and consumption, which include significant demand from small and medium B2B segments. Going forward, simplification, modernisation and harmonisation of export and import processes as well as end-to-end domestic supply chains are advantageous and will make India a growth spot for air cargo,” says Gazder, elaborating the elements required to create a resourceful cargo hub. Also, it is noteworthy to mention that a strong impetus has been provided through the holistic National Civil Aviation Policy 2016, which has included a number of initiatives for achieving the growth of cargo volumes to 10 million tonnes by 2027, adds Gazder.

Agreeing to Gazder, Vohra also observes that the Indian air cargo industry has the advantage of a growing economy along with many other significant and parallel drivers of growth in India’s commerce, investment and consumption, which include considerable demand from small and medium B2B and B2C segments. “The much-awaited National Air Cargo Policy, improved international connectivity along with ever-expanding cargo-handling infrastructure, both physical and digital are destined to make India as growth spot for air cargo,” adds Vohra.

Thakkar views that as an emerging South Asian hub, India in the future will enable carriers who do not serve many counties in the region, to consolidate the cargoes destined to various airports with Unit Load Devices (ULDs) and these goods can be devanned and placed on individual aircraft operating to the many identified airports. Besides, inbound cargo from many participating operators will also ensure a critical mass for servicing the many regional airports.

CREATING POSITIVE CHANGE While steady economic growth, domestic open skies and industry-friendly policies are termed as major drivers of cargo traffic growth, it will be the immense untapped potential that will provide a big boost to the industry.

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India seemingly has all the ingredients to be one of the world’s great air cargo centers. The rapid growth of international trade, a huge manufacturing engine and a population of more than 1.2 billion, all bode well for the industry. However, for a variety of reasons, India has not realised this great potential to a broader extent.

The historical challenges facing India are well documented; inadequate infrastructure, in particular, has proved a major stumbling block in further developing the country’s air cargo sector.

“There is a significant untapped potential for air cargo in India. An indication of the same can be gauged from the fact that the total air cargo throughput handled by all Indian airports if put together is still less than that handled by individual airports like Dubai, Hong Kong, Shanghai, Incheon, London and Paris,” woefully adds Thakkar.

The need of the hour is to have infrastructure that will help reduce costs, save time, manpower and money to make the Indian industry more competitive. Kumar expresses, “The industry must witness the faster movement of capital, lower interest costs and less interaction with Government departments for licensing, permissions, etc. While the enhancement of rail, road and port infrastructure will lead to less congestion, more productivity and more flights and vessels coming in to increase business in the freight industry.”

“The development of new airports especially with a focus on making them cargo hubs, encouraging transshipment, and the arrangement of a transportation network as a hub-and-spoke model, will result in economies of scale and better utilisation of available resources,” further says Kumar.

Proposing a strategy, Raha hints that to have some sort of price/rate control mechanism by the Government for the operators will be a critical factor. Besides, efficient route planning, use of right type of aircraft based on flying time and the type of cargo along with its movement, in a particular route to make it commercially viable, will be a sound step.

Also, to provide relief to the long winding queues of cargo near the airport gate-

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ways, Air Freight Station (AFS) is a big initiative; it will not only help to decongest airports but also offer value additions to cargo stakeholders. The AFS, which replicates the CFS (Container Freight Station) model at the ports, ensures speed, safety and security. Counting on the prospects of AFS, Vohra says, “It will help the airlines to plan their space allotment in time and cargo can be loaded promptly on arrival at the loading bays without any further loss of time. AFS will also bring down cargo handling costs.”

Meanwhile, with a vision to create Mumbai International Airport Ltd (MIAL) as the cargo hub of India, Singh says, “We aim to develop complete temperature-controlled and digitalised pharma trade lanes between Mumbai and the various Center of Excellence for Independent Validators (CEIV) certified airports. MIAL has been recently awarded ‘CEIV Pharma’ certification by IATA, the first airport in India and third in Asia to achieve this quality milestone.

Going forward, we are in the process of further enhancing the Export Pharma Handling capacity by another 1,50,000 MT offering 120 additional ULD storage positions taking the overall capacity to 2,50,000 MT. We are channeling our efforts towards India’s largest ‘Airside Transport Solution’ which will be a first of its kind for pharma shipments.

It is currently under pilot run and will be commissioned soon. The airside transport vehicle can accommodate two main-deck ULD positions and can offer a temperature range of +15 to +25 and +2 to +8 degrees celsius between the airport’s pharma facilities and the aircraft.”

“Besides, enhancing pharma capabilities, we have also commissioned a dedicated agro terminal for export perishables and enhancement of import warehouse capacity by adding multi-level racking systems. The newly commissioned state-of-the-art agro terminal equipped with facilities like truck docks, dock levelers, weighing scales, X-ray machines, work stations for ULD buildup and weighed along with complete CCTV and security surveillance will offer an annual capacity of 2,00,000 MT,” continues Singh

DPT ROLLS OUT AN AMBITIOUS SET OF PEARLS OF INFRASTRUCTURE PROJECTS: GATI SHAKTI

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eendayal port is one of the leading ports in India, and has been grossing highest traffic throughput amongst all major ports for 14 Years consecutively. Last year despite, the covid scare it could amass a traffic of 117.56 MMT, highest amongst all major ports.

The port has a multipronged strategy in purview of the Maritime Vision 2030 which was devised under the august leadership of Hon’ble Prime Minister and Hon’ble Minister of Ports, Shipping and Waterways. Under the strategy there are 6 basic areas where the port is focusing on and is aiming to achieve 200 MMTPA of cargo by 2029-30.

The focus area include: Cargo and Productivity improvement, Landlord Port Development, Port Led Industrialization, Coastal Shipping and Ro-Ro, Ro- Pax expansion, Ease of Doing Business and Cost of Doing Business improvement, and Green and Safe Port.

There are multitude of projects planned under different focus areas and the port is working diligently to achieve its targets. The ministry has an ambitious Sagarmala programme and other initiatives like Asset Monetization Plan, Gati Shakti- National Master Plan, National Infrastructure Pipeline etc. and the port has a no. of projects under these programmes. Under Sagarmala, the port has 21 projects worth 4300 Crores out of which 6 projects worth 465 Crores have already been completed. Another initiative of the govt. of India is Gati Shakti – National Master Plan, under which the port has 10 projects worth 2552 Crores which

are under implementation.

The major projects under Gati Shakti are Augmentation of Pipeline Network at Oil Jetty area in Kandla, SBM expansion at Vadinar, Oil Jetty Cum Bunkering Terminal at Kandla, Construction of 5 Oil Jetties: OJ 7,8,9,10 and 11, Smart Industrial Port City Project

and Mechanization of Cargo berth no 14. The port expects huge investment in many of these projects from the private sector as they are to be implemented in the public private partnership model.

This will help in boosting EXIM trade thus help in increasing the GDP of the economy.

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The port is also implementing connectivity projects belonging to rail, road and Ro- Ro/Ro Pax. The Ro Ro Ro Pax Service from Hazira to Ghogha was inaugurated by the hon’ble Prime Minister, and DPT helped in implementation of the project under the guidance of MoPS&W. Carrying it forward the port is developing Ro-Ro Pax facilities

worth 383 Crores at Hazira, Pipavaw and Muldwarka under the purview of Sagarmala.

Overall, the port is trying to fulfil the vision of the Hon’ble Prime minister and Hon’ble Minister of Ports, shipping and waterways. The port is also putting efforts to expedite all the infrastructure projects keeping well in

view that the Prime Minister is launching the first ever National Infrastructure Masterplan, Pradhan Mantri Gati Shakti on Wednesday, 13th October 2021, which is going to bring together 16 Ministries, including seven core infrastructure sectors, on one platform to synergize project planning across stakeholder ministries.

70% AMMONIA BLEND TO START, WITH A GOAL OF 100%

By Jack Burke

Deendayal Port Kandla along with celebrations of 34th Week of Azadi ka Amrit Mahotsav conducted an session on “Psychological effects of Corona on Human life”.

During the discourse, Dr. Dhaivat D. Mehta, MBBS, DPM. explained the large gathering mostly DPT employees who overwhelmingly took part in the session.

The same was attended by Shri C. Harichandran, Secretary and other senior officers.

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In what they say will be an industry first, Wärtsilä and Norwegian ship owner Eidesvik Offshore ASA said they plan to convert an offshore supply vessel (OSV) to operate with an ammonia-fueled combustion engine.

The OSV considered for a retrofit currently has Wärtsilä dual-fuel engines operating primarily with LNG fuel.

The conversion will allow the vessel to operate with a 70% ammonia blend. Wärtsilä has already successfully laboratory tested an engine fueled with a 70% ammonia blend. The ultimate goal is to achieve operation with 100% ammonia and with a minimum ignition fuel requirement.

As a fuel, ammonia has the potential to drastically reduce emissions of CO2, the companies said. Both Wärtsilä and Eidesvik have stated their commitment to supporting the industry’s efforts to decarbonize its operations.

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MARINE LINES,November 2021. RNI No. Under Process, Title Code: GUJENG16193