Port Wings Maritime Exim Weekly Newspaper 20 May 2020 Issue

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May 20th - 26th Issue

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Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741

Wednesday, May 20, 2020

8 Pages

Success for Make in India! Indigenous ships join ICG; to boost maritime security, says Rajnath Singh New Delhi Port Wings News Network esigned & built by Goa Shipyard Limited (GSL), the Indian Coast guard has received ICGS Sachet fitted with state-of-the-art navigation and

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communication equipment and also two interceptor boats (IBs) C-450 and C-451, according to a news report in Financial Express.

These three boats were

commissioned into service through a video conferencing by the defence Minister Rajnath Singh, who said “The rising power of ‘our sea guard’, ICG and Indian shipbuilding industry is a matter of pride for the country.”

Terming the oceans as the lifelines of not only India but also global prosperity, the defence Minister stated that “As an emerging maritime power, the prosperity of the nation is dependent on the sea. Clean seas provide economic opportunities for our nation-building.

During the commissioning event, Director General of Indian Coast Guard Krishnaswamy Natarajan said

“The new additions to the ICG fleet of vessels would assist the service in remaining vigilant at sea all the time and will also contribute to the country’s fight against COVID-19.”

Most about the new vessels The ICCG Sachet is 105-metre longship and displaces around 2,350 tons. It will be propelled by two 9,100 KW diesel engines. It has been designed to attain a maximum speed of 26 knots and has an endurance of 6,000 nautical miles.

It can carry a twin-engine helicopter and four high-speed boats and limited pollution response equipment which will help in undertaking oil spill pollution response at sea.

What Does Sachet mean?

It means alert and is a projection of will and commitment ‘to be ever vigilant for serving and protecting’ Contd. on page -2

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Wing 6 Feather 40

Govt Plans to De-risk Ports, Enhance FDI New Delhi Port Wings News Network he Centre has planned a slew of measures to give a fillip to the shipping industry and encourage private participation, according to a Business Standard report.

As part of the process, it plans to dismantle inefficient and burdensome monopolies, encourage the start-up culture, and call for innovation to derisk projects as well as lead to higher foreign direct investment in ports.

The vision includes building new ports to cater to trade requirements, develop India as a trans-shipment hub, and lift at least two ports to the world’s top 10 list.

Setting up a ‘National Port Authority of India’ for major ports in lieu of the Indian Ports Association — on the lines of NHAI (National Highways Authority of India) and AAI (Airports Authority of India) — for planning, project development, recruitment policies, and procurement, is on the cards.

This is to enable local port

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administrations to focus solely on operation and maintenance.

According to the draft Maritime Vision 2030, the Ministry of Shipping has set up 14 working groups for each thrust area in the sector. Sagarmala was centred on four pillars — port modernisation, port-led industrialisation, port connectivity enhancement, and coastal community development.

Experts say this goes beyond port gates, and focuses on efficiency, ease of doing business, enabling and integrating technology, and giving a thrust to allied activities.

Significant emphasis is also being Contd. on page -2

Inside Allcargo Hires Alvarez & Marsal... Pg-2 How Coronavirus Pandemic Has... Pg-3 Tirupur Exporters' Association Requests... Pg-4 Adani Ports Still Holds 26 per cent... Pg-5 Vessel Position at Terminals and Ports... Pg-6 Latest Customs Exchange Rates... Pg-7

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May 20th - 26th Issue

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Success for Make in India! Indigenous...

Wednesday, May 20, 2020

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Wing 6 Feather 40

Self-Reliant India: Vocal About Local

he mega Rs 20-lakh crore stimulus package announced by Prime Minister Narendra Modi includes previously announced measures to save the lockdown-battered economy and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing.

The combined package works out to roughly 10 per cent of the GDP, making it among the most substantial in the world after the financial packages announced by the United States, which is 13 per cent of its GDP, and by Japan, which is over 21 per cent of its GDP. The package includes Rs 1.7 lakh crore package of free foodgrains to poor and cash to poor women and elderly, announced in March, as well as the Reserve Bank's liquidity measures and interest rate cuts. While the March stimulus was 0.8 per cent of GDP, RBI's cut in interest rates and liquidity boosting measures totaled to 3.2 per cent of the GDP (about Rs 6.5 lakh crore).

Most economic activity in the country had come to a standstill after the government imposed a 21-day nationwide lockdown beginning March 25 to check the spread of Covid-19. The lockdown has since been extended twice through May 17, with some relaxations to allow the resumption of economic activity.

The package, he said, will focus on land, labour, liquidity and laws.

It will cater to various sections, including cottage industry, MSMEs, labourers, middle class, and industries.

The Prime Minister did not share details saying Finance Minister Nirmala Sitharaman will over the next few days spell out details for each sector.

But going by the previous figures, it would seem that an additional Rs 12 lakh crore will be pumped into the economy.

There was expectation of more direct cash transfer to the needy (or allotting more in the NREGA fund which is seeing large off-take), but that did not come through. Instead, the focus was more on easy credit/ loans.

The package is seen as a government attempt to check the world's fifth-largest economy hurtling towards its first full-year contraction in four decades. According to estimates, lockdown may have led to 12.2 crore people losing jobs in April and consumer demand evaporating.

Prime Minister Modi said that a self-reliant India will stand on five pillars viz economy which bring in quantum jump and not incremental change; infrastructure, which should become the identity of India; technologydriven system; vibrant demography; and demand.

Before Independence, not even a needle was manufactured in India but in 60 years, India became self-reliant in science, technology, agro business, defence, manufacturing and atomic science, Finance Minister Nirmala Sitharaman's announcement of a slew of measures for agriculture and allied activities as part of the Centre’s economic package came under fire from the Congress and the Left parties, which accused the government of repacking and re-marketing existing schemes The worst sufferers of the coronavirus lockdown have been farmers and workers. But the government, instead of helping them, is pushing them into a debt trap. As they constitute the most vulnerable sections, which now bear the maximum brunt from one of the stringent lockdowns of the world, relief must be at a large scale.

Sample Nobel Prize-winning economist Abhijit Banerjee, in a discussion with TEXT Mr Rahul Gandhi, said: "I would say bottom 60 per cent of the population, we give them some money, nothing bad will happen in my view", adding that a similar practice was being followed by the United States.

The government is insensitive and is unable to address the current crisis. It talks of reforms. It is for the future. The issue is how the government is going to address the sufferings of farmers and daily wage workers.

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SUBSCRIPTION

Continued from page -1 the maritime interest of the country.

It will be commanded by Deputy Inspector General Rajesh Mittal and there will be around 11 Officers and 110 men.

C-450 and C-451 These are indigenous and have been designed and built by Larsen & Toubro Shipyard Hazira and have almost 70 per cent indigenous content. These two boats are fitted with the latest navigation and communication equipment.

They can achieve speeds in excess of 45 knots. They have been designed for high-speed

interception, close coast patrol and low-intensity maritime operations.

The ships will be commanded

by Assistant Commandant Gaurav Kumar Gola and Assistant Commandant Akin Zutshi.

Govt Plans to De-risk Ports, Enhance...

Continued from page -1 given to areas beyond port gates, such as integrating technology into functioning of the port ecosystem, simplification of various processes, mainstreaming inland water transport, and laying emphasis on allied revenue-generating activities like cruise tourism, said Jagannarayan Padmanabhan, director at Crisil Infrastructure Advisory.

This will help industry and various stakeholders come together and project their vision for the maritime sector. These are early days — the exercise is quite exhaustive. The final implementation framework, as prepared by the 14 working groups, will give us an idea, he said.

Each working group will prepare

a detailed road map, milestones with timelines, and accordingly identify institutions responsible for achieving those milestones.

The government also intends to make maritime logistics costcompetitive by promoting port-led industrialisation and coastal cargo development, and also make Indian ports affordable and competitive for EXIM and coastal trade.

Given that many areas fall in the domain of state governments, due thought will be given to their concerns, and policy prescription may be aligned to state policies to the extent possible.

The vision also includes operationalisation of minor ports — underused or unused small ports —

to make them function as domestic cargo terminals.

The Union government intends to develop cruise destinations at tourist locations, and increase the number of Indian cruises from 150 to 1,000 in five years, with effective use of coast and inland water for cruise tourism.

Promotion of river cruise tourism and water transportation, provision of smooth transportation network to local fishing communities, and the use of PPP model to develop various facilities like terminals, jetties, ferry services are in the radar.

The final Maritime India — Vision 2030 document should be submitted in three months and address resource/ talent constraints, capacity building, and human resource issues.

Allcargo Hires Alvarez & Marsal To Script GATI Turnaround Mumbai

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Port Wings News Network llcargo Logistics Ltd has hired turnaround specialist Alvarez & Marsal to work out a strategy for GATI Ltd, the express logistics company it had acquired earlier this year. Allcargo now holds a 46.4 per cent stake in Gati, according to a BusinessLine report.

“We have appointed Alvarez & Marsal as consultants to help us make the company grow and also become efficient,” Allcargo Chairman Shashi Kiran Shetty said in an interview on Monday.

Just as Allcargo moved into the company, it hit the roadblock of a lockdown and the business came to a complete standstill, he said.

It’s too early to say what Allcargo plans to do with Gati in terms of restructuring, he added.

“It is not conducive to do anything right now. The priority is to get the company off the ground.

Obviously, when the company is affected by the lockdown, we have 5,000 employees in that business and revenue is almost zero. Now, of course, it has revived with volumes returning to 35 per cent of what it

was earlier,” he said.

Salvage mode Looking at the year ahead, Shetty said, he does not have a “clear answer” on how Gati’s business will pan out. “(The year) 2020, anyway, from a business standpoint, is almost like a washout. We are only in salvage mode. Fortunately, we have done all the right things, except that our deal with Blackstone has not gone through, in the sense there were still two conditions precedent which we have to clear. Once that is done, then we are debt-free in spite of the acquisition of Gati,” he said.

In January, private equity firm Blackstone agreed to invest ₹380 crore in Allcargo Logistics to develop industrial and logistics parks across India.

“Because of the lockdown, Allcargo was not able to move forward on clearing the conditions precedent because government offices were closed. That’s not a concern but there is a delay and it doesn’t cost us anything. We have time till December to close the deal,” Shetty said.

Blackstone deal The Blackstone deal valued the warehousing business of Allcargo

at about $200 million. For each warehousing project, Allcargo had created a fully-owned subsidiary in which it will sell a 90 per cent stake to Blackstone.

“We are getting out completely from all the warehousing assets except the container freight stations (CFS) because we needed money for the acquisition of Gati. We didn’t want to do an acquisition through debt. The second point is, the construction of warehouses is a real estate play. It normally has a very low return on equity of about 11 per cent, but has got a good internal rate of return. But, for that, you have to wait for 10 years,” he said.

Allcargo has put a freeze on capital expansion for the year, though it will continue with its earlier committed investment of ₹350 crore to complete the construction of the warehouses, which was halted due to the lockdown.

“The strategy is very simple.

Conserve cash, minimise the losses, bring in more efficiency and try to increase market share. Because there will be many companies who could be in trouble out there, we have to wait for opportunities to grab customers,” he added.

FM Nirmala Allocates Rs 20K Crore to Fisheries New Delhi Port Wings News Network fter Prime Minister Narendra Modi's address to the nation on building an Aatma Nirbhar Bharat or a self-reliant India, the Finance Minister Nirmala Sitharaman has been announcing details of the Rs 20-lakh stimulus package the government feels should be given to the economy and the people of

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the country battered by the Corona lockdown.

In the third tranche of Rs 20 lakh crore economic relief package Nirmala Sitharaman on 14 May 2020 announced Rs 20,000 crore for fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY) for integrated, sustainable, inclusive development of marine and inland fisheries and to fill critical gaps in the fisheries value chain.

Out of this, Rs 11,000 crore will be allocated for activities in marine, inland fisheries and aquaculture and Rs. 9000 crore for infrastructure including fishing harbours, cold chain, markets etc.

It is expected to lead to additional fish production of 70 lakh tonnes over 5 years and employment to over 55 lakh persons apart from double exports to Rs 1,00,000 crore, the Finance Minister added.

May 20th - 26th Issue

How Coronavirus Pandemic Has Hit Employment in G7 Economies Chennai

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Port Wings News Network undreds of millions of people could be left without work due to the impact of COVID-19, the UN’s work agency warns. Current G7 jobless totals vary widely, from 30 million in the United States to 1.76 million in Japan. Several European governments have softened rise in unemployment with generous wages subsidies.

Since the pandemic hit, claims for unemployment benefits have soared in some countries – notably the US – and by far less in others, for example, Japan, reports World Economic Forum.

The global outlook is not positive –– the UN’s International Labour Organization predicts 1.6 billion informal economy workers could suffer “massive damage” to their livelihoods. In the second quarter of 2020, COVID-19 may cost the equivalent of 305 million full-time jobs.

The advanced economies of the G7 provide snapshots of evolving unemployment trends in the developed world.

1. US In the week to 25 April, 3.8 million Americans made an unemployment claim – giving a six-week total of around 30 million. It was, however, the fourth consecutive week of falls in numbers of new claims.

Payroll processor ADP says the US private sector shed more than 20 million jobs in April. The big question is how long those jobs will take to come back.

The US Congressional Budget Office predicts 15% of people could be unemployed by the third quarter

of this year – up from less than 4% in the first quarter.

2. Canada The unemployment rate in Canada in April was 13%, up 5.2 percentage points on March, according to data from the country’s official statistics bureau.

So far in the COVID-19 crisis, more than 7.2 million people have applied for emergency unemployment assistance.

3. Japan Japan’s unemployment rate is rising more slowly than in other G7 economies like the US. In March, it was 2.5%, with 1.76 million unemployed – an increase of 20,000 from the same month in 2019.

However, job openings are at their lowest level in three years, and there has been a sharp increase in numbers of people requesting emergency loans to cover job losses and wage cuts.

4. UK There is more of a time lag on the UK’s official unemployment data than some other nations. Its main statistics office shows employment at a record high and unemployment at around 4%. However, KPMG forecasts this will rise to just under 9% during the lockdown period.

Almost 2 million people have applied for the main benefit – Universal Credit – since the country’s lockdown began. A quarter of the UK’s employed workforce have registered for the government’s job retention scheme, which pays 80% of an employee’s wages.

Predictions of job losses are gloomy, particularly in the aviation sector, following the announcement

of significant redundancies by carriers including British Airways.

5. France More than 10 million workers in France’s private sector are being supported by the state, through a scheme called chômage partiel (partial employment or short-time working).

This figure represents a large proportion of France’s workforce.

“That’s more than one employee out of two, and six companies out of 10,” French Labour Minister Muriel Penicaud Penicaud told the country’s BFM Business radio.

6. Germany Germany’s unemployment rate has risen far less rapidly than countries such as the US. In part, this is because of a government scheme to subsidise the wages of struggling employers and employees called the Kurzarbeit, or short-time work programme. By late April, it was helping more than 10 million people However, unemployment is still up, rising in April by 373,000, bringing the proportion of jobless to 5.8%.

7. Italy In March, the unemployment rate in Italy dropped to 8.4% – its lowest level for almost nine years.

The government attributed this to 267,000 fewer people looking for work than in the month before, as the unemployment rate measures active job-seekers.

“Nobody must lose their job because of the coronavirus,” Italian Economy Minister Roberto Gualtieri said. The government has pledged around €75 billion euros of support for families and companies.

World Economy To Shrink by 3.2%, New UN report projects Chennai

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Port Wings News Network he gross domestic product (GDP) in developed countries as of mid-2020 will plunge to -5.0 per cent, while the output of developing countries will shrink by 0.7 per cent, the UN Department of Economic and Social Affairs (DESA) said In its World Economic Situation and Prospect (WESP) report update.

“The global economic outlook has changed drastically since the launch of WESP 2020 in January”, observed Elliott Harris, UN Chief Economist and Assistant SecretaryGeneral for Economic Development.

The coronavirus has unleashed a health and economic crisis, unprecedented in scope and magnitude, with lockdowns and border closures paralyzing economic activity and laying off millions of workers globally.

“With the large-scale restrictions of economic activities and heightened uncertainties, the global economy has come to a virtual standstill in the second quarter of 2020,” he added. “We are now facing the grim reality of a severe

recession of a magnitude not seen since the Great Depression.”

Meanwhile, to fight the pandemic and minimize the impact of a catastrophic economic downturn, Governments globally are rolling out fiscal stimulus measures that equal roughly 10 per cent of the world’s GDP. Unlocking down Although new infections and COVID-19-related death rates have recently slowed, the pandemic’s future course remains uncertain, as does the economic and social consequences that will follow.

Torn between saving lives and reviving the economy, some governments are already beginning to cautiously lift restrictions to jumpstart their economies.

But recovery will largely depend on how well public health and fiscal measures work together to stem the spread of the virus, minimizing reinfection risks, safeguarding employment and restoring consumer confidence, so that people start spending again.

“The pace and strength of the recovery from the crisis”, explained Mr. Harris, will also rest on “the

ability of countries to protect jobs and incomes, particularly of the most vulnerable members of our societies”.

Post-COVID world Without a quick breakthrough in vaccine development and treatment, DESA maintains that “the post COVID-19 world will likely be vastly different”, from the one we knew.

Although a modest rebound of around 3.4 per cent, mostly recovering lost output, is expected for 2021, the report spelled out that “the possibility of a slow recovery and prolonged economic slump, with rising poverty and inequality, looms large”.

Trade and tourism are paralyzed, while large deficits and high levels of public debt will pose significant challenges for developing countries and small island States.

The UN forecast makes clear that stronger multilateral support and solidarity to contain the pandemic, along with economic and financial assistance to countries hardest hit by the crisis, will remain “critical for accelerating recovery and putting the world back on the trajectory of sustainable development”.

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Handhold MSMEs and Exporters to Maneuver the COVID-19 Crisis: AIAI Mumbai

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Port Wings News Network s the lockdown persists in India, several industries are finding it challenging to maintain their financial outgo in the absence of revenues. On the other hand, daily wage and migrant workers are unable to meet their day-to-day expenses. While the government is cautious about fiscal slippage and a ratings downgrade, and thereby emphasises on low borrowing and spending, it is likely that without infusing money in the hands of the people, demand and therefore, GDP growth will cripple.

Ms.Sangeeta Jain, Senior Director, All India Association of Industries said, economies across the world, whether large or small, developed or developing, are trying to handhold their industries and MSMEs as these are the most significant contributors to their growth and employment. The deeper the fall in output, the longer will it take to come out of this crisis.

With the extension of the lockdown and in the absence of livelihood opportunities, it is likely that the migrant workers will not be willing to return to work.

The government should, therefore, consider a package for MSMEs in order to ensure continuity of work.

The government should carry out interest rate subvention, increase credit guarantee cover, defer taxes and dues payable by another six months, and rejig NPA classification norms among measures to uplift business sentiments of MSMEs in these difficult times.

Further, the government should enhance the role of private sector participants, such as fintech

companies and trade receivable exchanges to enhance last-mile delivery of the credit offered by banks and ensure that the risks of non-payment that will be witnessed

by MSMEs in the aftermath of this crisis are mitigated.

Since the COVID-19 crisis has affected trade and economic activities across many parts of the world, Indian exporters are facing the challenge of non-fulfilment of contractual obligations by importers. The NIRVIK scheme announced in the Budget aims to provide guaranteed insurance cover up to 90 per cent of the principal and interest on pre, as well as, postshipment credit.

This revision of guaranteed insurance cover offered by ECGC, from 60 to 90 per cent of the credit availed by exporters, is the most desirable to be implemented at this point of time. The government should also enhance the corpus of this fund in order to ensure that exporters sail through this crisis, relatively easily.

Private sector players such as factoring agents ensure that the working capital needs of MSMEs and exporters are met with by discounting their trade receivables.

These firms help in improving the cash flows, lower bad debts and improve the commercial competence of MSMEs and exporters.

We need to ensure that innovative products, leveraging the use of technology, are promoted as these enhance the efficiencies of MSMEs, while also improve targeting of our scarce financial resources.

We hope our suggestions will be taken into consideration, added Ms.Jain

Trump Administration's Global Maritime Advisory on Sanctions Mumbai

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Port Wings News Network he Trump administration on 14 May 2020 issued guidelines to help ship owners and insurers avoid sanctions risk, that industry players and a senior State Department official said followed months of discussions with industry, according to The New York Times.

The guidelines, known as a Global Maritime Advisory, concern sanctions on Iran, North Korea and Syria. Three industry sources said global commercial players had argued that an initial plan, outlined in March by a senior State Department official, would have disrupted international trade.

"The United States remains committed to disrupting shipping activities by malign actors worldwide — including sanctions evasion and smuggling — which may facilitate criminal activity and threatens international peace and security," the State Department said in a release about the advisory.

The advisory was announced on March 9 by David Peyman, a Deputy Assistant Secretary of State.

He said the advisory would among other things warn shippers not to turn off transponders and to not store Iranian oil.

Peyman has since left that role to take another job at the State Department, four sources said.

The State Department did not immediately respond to requests for comment about Peyman.

A maritime source said the industry was concerned the original outline of the advisory, which encouraged ship captains to take photographs of parties conducting ship to ship transfers that would be available to certain authorities, would have run into legal issues.

“One of the concerns we have is that the expectation that industry sectors should share personal data on suspicions of sanctions breaches will be problematic with data protection laws in Europe and elsewhere,” one maritime industry source said.

May 20th - 26th Issue

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Tirupur Exporters' Association Requests For Extension of Moratorium Chennai

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Port Wings News Network irupur Exporters' Association (TEA) on 18 May 2020 requested the Government for extension of moratorium for three months period (that was announced on 24 March 2020 and expiring on 31 May 2020) as there was no industrial activity happening.

In a media statement, Shri Raja M Shanmugam, President, TEA, said the Finance Minister’s announcement on extension of moratorium for three months period on 24th March 2020 is expiring on 31st May 2020 and as there was no industrial activity happening till 6 May 2020 and thereafter, only with less capacity, industry is operating in the lockdown period up to 31st May 2020. He requested the Prime Minister to advice for extension of moratorium for another nine months for MSMEs. Below is the reproduction of memorandum sent to the Prime Minister's Office: Sir, We would like to thank the Hon’ble Prime Minister for taking various measures to contain the spread of COVID – 19 pandemic and protecting the industries.

The regular steps being taken by the Hon’ble Prime Minister in this connection is well appreciated by all global countries and we are also thankful for the announcement of Rs.20 Lakh Crores financial measures, 10% of GDP, to lift the economy and protect the people in all walks of life.

TERM LOAN MORATORIUM To tide over the economic fallout from COVID-19, the Hon’ble Finance Minister announced financial relief measures on 24th March 2020 and subsequently, RBI issued a press release permitting to allow a moratorium of three months

on payment of installments in respect of all term loans outstanding as on March 1, 2020.

WORKING CAPITAL MORATORIUM In respect of working capital facilities sanctioned in the form of cash credit/overdraft, lending institutions are being permitted to allow a deferment of three months on payment of interest in respect of all such facilities outstanding as on March 1, 2020.

The accumulated interest for the period will be paid after the expiry of the deferment period.

Our concern is that the moratorium of three months period will get expired by 31st May 2020 and the commencement of repayment starts by 1st June 2020, including the compounded interest calculated for the moratorium period.

MSMEs The Government has now declared a supportive financial measure for MSMEs by granting 20% additional working capital to ease of the liquidity. Sir, the lockdown period has been now extended till 31st May 2020 and we would like to drive home the point that for the past two months, the industries have not been permitted to operate and moreover, if we take into account the global market closure date also, it would be actually three months. More importantly, the leading global retail stores would reopen only from June onwards and place the orders gradually, that too in an increment manner only.

Without having any activities and the house totally in disorder, the MSMEs could not repay the interest and principal, with this background, we strongly feel that the revival of MSMEs would happen only after another six months, by addressing the issues one by one.

In view of this, we request to

extend the moratorium on servicing of interest and principal by another nine months to MSMEs. NON-MSMEs (Not Big Corporates) The Non-MSME units which could be categorized just above the MSME category, but not in the league of big corporates like Reliance Industries, Grasim Industries etc., have also been facing the liquidity crisis and these units certainly need the support of Government to tide over the crisis.

Therefore, we request for extension of the moratorium on servicing of interest and principal at least by three to six months.

RESTRUCTURING OF DEBT These highly leverage but functional units are severely impacted requiring to go for restructuring of their debt portfolio in this unprecedented situation.

In order to enable those units to come out of crisis, a one time ‘Restructuring of debt’ option should be made available to all those who are in need. This restructuring should not result in asset downgrade resulting in Units classified as NPA – rather this should be announced as a ‘Hand holding’ opportunity to the otherwise performing units but that are stressed due to this COVID situation.

Considering the gravity of the issue, we request the Hon’ble Prime Minister to kindly advice to announce the extension of moratorium for both MSMEs and Non-MSMEs (not in corporate league), which will be immensely helpful to get envisaged revival in post COVID-19 and to restore normalcy.

Thanking you Yours faithfully Raja M Shanmugham President, TEA

Mega Economic Package Needed To Revive Exports & Overall Economy: FIEO President New Delhi Port Wings News Network esponding to a yet again highest-ever double digit decline in monthly exports, of well over two and half decades, during April, 2020 by 60.28 percent at USD 10.36 billion, FIEO President Mr Sharad Kumar Saraf said that lockdown measures due to Covid-19 across the globe has not only pushed the global business sentiments to its lowest but has also impacted the supply chain and brought slump in the economies across the world.

Mr Saraf added that the exports during the month for emergency and essential items like drugs and pharmaceutical products only were marginally positive. The reason being lockdown measures followed across the world, disruption of supply chains and major cancellations in orders except for drugs and pharma. Mr Saraf expressed his serious concerns over sharp decline in employmentintensive sectors of exports which has serious ramifications for the jobs in the country particularly as domestic demand will also not be robust.

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With the mega economic package of Rs 20 lakh crores announced by the Prime Minister Narendra Modi and details being presented by the Union Finance Minister Nirmala Sitharaman, FIEO Chief is of the view that we may expect revival in exports from the third quarter of the fiscal, depending on the condition evolving in the international market.

With major global players including US, UK, Canada, Japan, Germany, France, Austria, Spain, Netherland, Italy, Sweden and Bangladesh having provided the bailout or financial packages to their industry to sail through these difficult times it is also expected that the same would help in bringing good news for the overall international trade, said Mr Saraf.

Mr Sharad Kumar Saraf said that 28 out of the 30 major product groups saw highest-ever doubledigit negative growth of almost up to 99 percent during April 2020.

Even large quantities of petroleum exports could not push value wise exports as the international prices were at rock bottom.

Further imports of USD 17.12 billion

with a very high double digit decline of 58.65 percent during the month, is also the highest decline in imports in well over two and half decades.

Mr Sharad Kr Saraf reiterated that with the cancellation of about 70-80% of orders, casting a gloomy picture besides major job losses and rising NPAs amongst exporting units, we urge the Government to immediately implement the economic measures announced at the ground level for quick and early starting of trade and businesses across the country during such difficult and testing times.

Exports may be provided additional MEIS of 2% across the board and 4% for labour-intensive sectors to help them in such difficult times. Government should allow roll over of forward cover without interest and penalty and automatic enhancement of limit by 25% to address liquidity challenges.

Besides, immediate need of the hour is also the Export Development Fund and various reforms measures including overall ease of doing business for marketing of Brand India products across the globe and boosting foreign direct investment in the country respectively.

India: Merchandise Exports Drop Over 60% New Delhi Port Wings News Network xcept for iron ore and drugs and pharmaceuticals, all other commodities saw a negative growth. With the global trade coming to a near halt due to the COVID-19 pandemic, India’s merchandise exports nosedived over 60% in the last month to $10.36 billion from $26.07 billion in April 2019, according to a report in The Hindu.

As per government estimates, service exports for April 2020 — which will be revised later — stood at $17.60 billion, taking India’s overall exports to $27.96 billion, a decline of 36.65% year-on-year.

“The decline in [merchandise] exports has been mainly due to the ongoing global slowdown, which got aggravated due to the current Covid-19 crisis. The latter resulted in large scale disruptions in supply chains and demand resulting in cancellation of orders,” the Ministry of Commerce said.

Ravi Sehgal, chairman, Engineering Export Promotion Council said that the over 60% drop in merchandise exports during April 2020 is no surprise given a near halt in the global trade and it would be a long haul before normalcy returns.

“All dues and refunds should be immediately released to enable exporters to tide over this unprecedented crisis,” he added.

Except for iron ore and drugs and pharmaceuticals, which registered a growth of 17.53% and 0.25% respectively, all other commodities registered negative growth in April 2020 vis-a-vis April 2019.

Major commodity groups that recorded negative export growth during April 2020 are Gems &

E

jewellery (-98.74%), Leather & leather products (-93.28%), Handicrafts (-91.84%), Carpet (-91.67%), Jute manufacturing (-90.61%), Man-made fabrics (-84.11%), Ceramic products & glassware (-76.72%), Electronic goods (-71.04%), Tea (-68.89%), Tobacco (-68.47%), Cashew (-67.55%), Petroleum products (-66.22%), Engineering goods (-64.76%) and Meat, dairy & poultry products (-60.34%).

Non-petroleum and Non-Gems and Jewellery exports in April 2020 were $9.08billion as compared to $19.54billion in April 2019, a negative growth of 53.54%.

Imports Merchandise imports in April 2020 stood at USD 17.12 billion, 58.65% lower than imports of USD 41.40 billion in April 2019. Major commodity groups of import that showed negative growth include electronic goods (-62.72%), petroleum, crude & products (-59%), machinery, electrical and nonelectrical (-52.91%), Coal, coke & Briquettes (-48.83%) and organic & inorganic chemicals (-35.10%).

Oil imports in April 2020 were 59% lower at $4.66 billion compared to $11.38 billion in April 2019.

Non-oil imports in April 2020 were estimated at $12.46 billion compared to $30.02billion in April 2019.

Trade deficit The merchandise trade deficit for April 2020 was estimated at $6.76 billion as against the deficit of $15.33 billion in April 2019. The statement said, “Taking merchandise and services together, overall trade surplus for April 2020 is estimated at $0.16 billion as compared to the deficit of $8.67 billion in April 2019.”

Port Charges Still Haunt Importers Despite Govt Diktat on Fee Waiver Mumbai

A

Port Wings News Network fter getting relief on penalty levied by shipping companies, importers are now knocking the government doors against container freight service (CFS) and inland container depot (ICD) operators for not adhering to Shipping Ministry notification on waiver of demurrage and other charges due to Covid lockdown, according to a BusinessLine report.

On receipt of several complaints against the operators, the Office of Commissioner of Customs, Jawaharlal Nehru Port had issued a fresh direction to CFS and ICD last Friday on waiver of charges.

Over 6,000 micro, small and medium enterprises in the recycling industry are staring at charges of ₹4,200 crore which is increasing every passing day.

The CFS charges works out to about ₹20,000 per day for 40-feet container and if it has to be calculated for over 45 days of lockdown period then the charges would be more than the value of goods lying in the container, said an importer.

One of the Kutch-based metal recycling companies plans to file a writ petition in the Ahmedabad High Court against the penalty being levied on imported consignments despite government order.

Sanjay Mehta, President, Material recycling Association of India, said over 1.5 lakh containers with metallic scrap and waste papers are held up at ports as ICDs and CFS across country are not honouring the government directive on waiver of charges during the lockdown period.

Even worse, he added that the foreign shipping companies will also start levying demurrage and penalty from May 17 when the third leg of lockdown ends officially.

Given the current crisis, the industry would be able to clear only 30-40 per cent of containers piled up at the ports before the lockdown ends on May 17, said the MRAI. Fee waiver extension Hence, it said the government should direct the shipping lines to extend the fee waiver till May 30.

Despite the government approval to restart economic activity in green zones, the confidence of the trade and industry is impacted by banks reluctance to lower lending rates and provide working capital as most of MSMEs have already exhausted their borrowing limits.

Besides this, labour shortage due to migrant workers exodus, high logistics cost and unsustainable levy on imported raw materials has exerted pressure on manufacturing companies.

Meanwhile, the Container Freight Stations Association of India has issued advisory to its members to provide 50 per cent concession on the rent charged on the container that have arrived between April 1-15.

Mehta said despite government directive CFS and ICDs are imposing hefty penalty for not clearing the cargo despite extension of lockdown till May 17 and it may be further extend in some cities.

Private ICDs and CFS need to follow the government direction on waiver for complete lockdown period and mandatory 14 days of free time, he added.

May 20th - 26th Issue

Adani Ports Still Holds 26 per cent Stake After Quitting Snowman Logistics Deal

A

Mumbai

Port Wings News Network dani Ports and Special Economic Zone Ltd (APSEZ) is left holding a 26 per cent stake in Snowman Logistics Ltd after walking out of a deal to buy a 40.25 per cent stake from the promoters of the Mumbailisted cold chain company for Rs 296 crore.

On May 6, BusinessLine had first reported, quoting Chief Executive Officer (CEO) Karan Adani, that APSEZ was reviewing the deal which could result in scrapping the deal or renegotiating the price.

The acquisition was announced by APSEZ on December 27 and was to be closed by March 31. “The condition for completion of transaction by March 31, 2020 was not met by the Acquirer, and the Seller has notified the Acquirer and the Company that the Agreement is not in force due to repudiation of the Agreement by the Acquirer,” Snowman Logistics said in a filing with the Bombay Stock Exchange.

“This means there has been a breach of agreement by the acquirer. As a result, APSEZ doesn’t have the right to purchase the shares from the promoters anymore,” said a person briefed on the development.

APSEZ, he said, didn’t disclose what it wanted and there was no discussion on renegotiation on price.

“We have acquired a 26 per cent stake from the market as part of open offer and we have kept on hold the stake of 40.25 per cent that we have to buy from the promoters,” Karan said during an analyst call on May 6.

Market sources said that APSEZ would

look to wrest a board seat with the 26 per cent stake, if it intends to stay invested in Snowman Logistics. “ But, off-loading the 26 per cent stake in the market would drag down the share price of Snowman, entailing a loss to APSEZ,” a stockbroker said.

APSEZ had agreed to buy the stake from Mumbai-listed Snowman Logistics’ parent company Gateway Distriparks at Rs 44 per share. The deal was announced in December last year after which APSEZ acquired a 26 per cent stake in the cold chain company in March through a mandatory open offer to public shareholders. The acquisition was done through APSEZ’s wholly-owned subsidiary Adani Logistics.

Snowman Logistics runs integrated cold chain logistics and provides warehousing, distribution and value-added services. It operates 31 temperature-controlled warehouses at 15 locations, with 1.04 lakh pallets warehousing capacity and 293 refrigerated vehicles (reefers).

But, on May 6, during an analyst call, Karan Adani said: “We are re-evaluating the deal looking at the current situation and we want to re-assess what is the impact on cold storage business because of COVID-19. We are re-looking at the industry itself, whether the cold chain business makes sense in the current environment and if not, then we would be looking at re-negotiating on the price”.

Experts have downplayed this explanation

by Karan Adani.

“In fact, warehousing and cold chain requirements for food and pharmaceuticals would see a huge traction in the wake of the coronavirus outbreak,” said a logistics industry executive.

Kerry Logistics Forms New Joint Venture in Sri Lanka

K

Chennai

Port Wings News Network erry Logistics Network Limited has formed a new joint venture, Kerry Logistics Lanka (Pvt) Ltd (‘Kerry Lanka’), with IAS Holdings (Pvt) Ltd in Sri Lanka to strengthen its international freight forwarding (‘IFF’) capabilities in South Asia, according to a company release.

Headquartered in Colombo, Sri Lanka, Kerry Lanka sits at the strategic crossroads of East Asia, South and South East Asia, Africa and Europe. As part of Kerry Logistics’ South Asia operation, Kerry Lanka operates an office in Colombo, as well as a bonded facility and office for export purposes at the Bandaranaike International Airport.

In 2019, 46% of the total export of Sri Lanka derived from the textiles and garments industry, amounting to US$5.6 billion, according to the Central Bank of Sri Lanka’s external sector performance review.

There are more than 300 apparel manufacturers in Sri Lanka, which are well connected to the super brands in Europe and the US. Kerry Logistics’ expansion to Sri Lanka will enable it to tap into the opportunities therein by offering a suite of services consisting of air and ocean freight, customs

brokerage, inland trucking, multi-country consolidation, project cargo, warehousing and value-added services such as pick/pack, purchase order management, quality control, packaging and labelling, garment-on-hangers and entrepot services.

Patrick Cheah, Executive Director – Global Air of Kerry Logistics, said, “Located in Sri Lanka, the intersection of freight routes in South Asia, Kerry Lanka will become a significant hub for Kerry Logistics and give a strong boost to our global connectivity. Plans are also in place to aggressively focus on the upstream of the supply chain to support the fashion industry vertical.

The forming of the joint venture also marks the deepening of our presence in the South Asian subcontinent, rounding out our full suite of services in the region.”

In addition to Kerry Indev Logistics in India, Kerry Logistics has also established a subsidiary in Pakistan in 2018 to extend its footprint in the Indian subcontinent.

IAS Holdings is an investment company in Sri Lanka with diversified businesses including airline GSA business and international transportation. One of its shareholders has over 25 years of experience in the logistics industry and supply chains.

BIMCO Begins Work on New Law & Arbitration Clause

W

Chennai

Port Wings News Network ith a view to providing a short and “one size fits all” approach to dispute resolution, BIMCO has begun work to develop a new Law & Arbitration Clause while adding Hong Kong as the fourth named arbitration venue, according to a release.

The addition of Hong Kong reflects its increased popularity as a centre for dispute resolution and that it is currently ranked among the top maritime arbitration centres in the world.

The goal is for the new clause to be suitable for London, New York, Singapore, and Hong Kong arbitration. It will be available in a generic digital version, where the parties can make their choice amongst the named arbitration venues listed in a dropdown

menu, as well as in freestanding versions for each arbitration venue. An “Other” option will remain for parties to fill in the law and arbitration venue of their own choice.

“Arbitration is a vital part of international shipping and BIMCO contracts. I am therefore very pleased that we have launched the process and gathered representatives of the four arbitration venues for a first joint discussion of the new draft clause,” said Francis Sarre, Chairman of BIMCO’s Documentary Committee.

As part of the development of the new law and arbitration clause the mediation provision, which currently forms part of the BIMCO Dispute Resolution Clause, will be singled out and republished as a freestanding clause.

The new clauses will be presented for adoption by the Documentary Committee at its next meeting on 22 September.

5

‘Tweak in SEZ Rules Can Attract Companies exiting China’

W

Chennai

Port Wings News Network ith policy interventions in the SEZ (special economic zone) rules, India can attract manufacturing supply chains that are relocating from China, according to the Tamil Nadu Association of SEZ Infrastructure developers, reports BusinessLIne. In a communication to the Prime Minister, Sunil Rallan, the president of the Association, has requested for a few policy interventions in SEZ schemes and shift to digital mode for approval processes.

“All trends indicate that Indian domestic demand will remain strong while the global markets will take longer to pick up. Exportled growth from India is going to face demand contraction and slow growth for the next 2-3 years. We need to incentivise foreign supply chains to relocate into SEZs with easy access to DTA as well the ability to export efficiently,” he said in his letter.

He highlighted that the Covid-19 outbreak and the consequent turmoil in global economy has led to realignment of global supply chain with about 50 per cent of the units seeking to move out of China.

In this process, Vietnam has become more attractive than India to these relocating units due to former’s friendly policies.

Transparency in processes India’s fiscal policy requires the manufacturing units to set up discrete factories for DTA markets and exports, thereby making it very unattractive to consider India as a destination. This is further compounded by

several other issues on ground. ‘Make in India’ must result in more transparency and create an environment that makes our units compete with the rest of the world.

Foreign companies must be attracted to come and take advantage of our manufacturing ecosystem, he said.

For this, the association has sought recalibration of SEZ rule 53 in order to give parity to the SEZ units with the scheme operated by CBIC (Central Board of Indirect Taxes & Customs), “We urge the government to provide parity to the SEZ units with the scheme operated by the CBIC and the EOU scheme under the FTP (foreign trade policy). This will make it very attractive for the overseas entities setting up manufacturing units in India and provide for ease of doing business,” Rallan said.

The association wants the SEZ Rule 18 (6) which covers the concept of manufacturing services, should be revised to cover the prevailing business models. Rule 76 must be amended to include manufacturing services in the list of services.

Rallan also pointed out that transactions such as Form F application, shipping bill filings, filing of commencement of operations, renewal of LOA etc could move online.

“All approval processes at various stages must be done online from the submission until approval. The integration of SEZ online with the Customs ICEGATE System must be completed. This matter has been under review now for several years without any outcome.

This will expedite the entire process resulting in greater ease of doing business, he added.

Tokyo MoU Annual Report Reflects Best Quality & Safety Standards of Marshall Islands

T

Chennai

Port Wings News Network he Republic of the Marshall Islands (RMI) has been recognized as a top performing major flag State in the Tokyo Memorandum of Understanding’s (MoU’s) Annual Report on Port State Control in the Asia-Pacific Region (the “Report”).

Covering port State control performance in 2019, the Report finds that the rolling average detention ratio for RMI vessels over the past three years was 2.19%. This is the lowest detention ratio of any of the top three registries. There were 2,995 RMI vessels inspected in 2019.

Bill Gallagher, President of International Registries, Inc. and its affiliates (IRI), which provide administrative and technical support to the RMI Registry, said, “This is another proud achievement for the Marshall Islands. It’s been the result of years of hard work in coordination with our owners, close communication with port State control authorities, and boots on the deck across the region.”

The high rating awarded by the Tokyo MoU comes on the back of the United States Coast Guard’s (USCG’s) recent continuation of the RMI’s QUALSHIP 21 status for the 16th consecutive year. This stellar achievement has proven to be elusive for the other top registries.

IRI has invested considerable resources into building a network of in-house and contracted inspectors across the region. China and Australia have been a particular focus for IRI, with teams available in almost every major port.

Annie Ng, IRI’s Head of Asia stated, “we have the strongest office network with nine offices in Asia and we’re able to activate local

inspectors who have built up relationships with local port State control teams across the region.” “Our policy of transparency means that we have their trust and are able to work together to resolve any issues which may come up,” she continued.

On another note, the RMI had the privilege of hosting the 30th meeting of the Port State Control Committee of the Tokyo MoU in Majuro in October 2019. “The amount of expertise brought forth and the professionalism exhibited by the attendees was impressive,” said Bill Gallagher.

“We were honoured to have an opportunity to host this event focused on the safety, security, and environmental protection of the world’s fleet,” he continued. “The Marshall Islands is committed to the quality of inspections in the region,” he concluded.

Looking forward, the RMI Registry welcomes the Tokyo MoU’s move to enhance measures to inspect high risk and underperforming ships. As noted in the Report, “these inspections will focus on safety management systems implemented on board ships and familiarization and understanding of operational requirements by the crew.”

6

Vessel Position at Terminals - (20.05.2020 To 27.05.2020)

May 20th - 26th Issue

7

CITPL - Chennai

CCTL - Chennai ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

21/05

22/05

CCG

NEYYAR

10

SMI1

Cochin , Nhava Sheva, Mundra, Jebel Ali, Bandar Abbas, Dammam

25/05

26/05

TCX NEW

X PRESS JERSEY

20005

SCM

20/05

21/05

SIF

SPIRIT OF MUMBAI

21

MSC1

Colombo

Chennai WestPort Klang, North Port Klang, Singapore, Laem Chabang

30/05

31/06

FME

KMTC MUNDRA

2001E

KTC

26/05

27/05

COST

MCP LINZ

37

TSL

Port klang

Port Klang, Singapore, Manila, Pusan, Shanghai, Hong Kong

20/05

21/05

COST

TCI LAKSHMI

DAKSHINBHARATH GATEWAY TERMINAL / Tuticorin ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

19/05

20/05

BOX

MV.HERMANN SCHEPERS 2

20132S

BTL

COLOMBO, TUTICORIN, COLOMBO

20/05

20/05

CI II

MV.WAN HAI 513

064E

OMEGA SHIPPING

TUTICORIN, PENANG, PORT KELANG, HONG HONG, QINGDAO, SHANGHAI, NINGBO, SHEKOU

21/05

22/05

TUX

MV.OEL SHRAVAN

20034

TWF

COLOMBO, TUTICORIN, COLOMBO

22/05

23/05

BOX

MV.HERMANN SCHEPERS

201335

BTL

COLOMBO, TUTICORIN, COLOMBO

23/05

24/05

CTS

MV.VLADIVOSTOK

1265

FAR SHIPPING

COLOMBO, TUTICORIN, COLOMBO

APM Terminal - Mumbai ETA

ETD

Service

Vessel Name

20/05

21/05

ME3

MAERSK KYRENIA

21/05 23/05

22/05 24/05

PS3 MINA

Voy

NYK TRITON

Agent/Line

Calling Ports

MSK

Port Qasim, Nhava Sheva, Pipavav, Colombo, T.Pelepas,Tanjung, Singapore, Hong Kong, Ningbo, Pusan, Kwangyang, Qingdao, Dalian, Xingang

MSK

CSAV TYNDALL

Pipavav, Port Klang, Singapore, Shangai, Ningbo, Xiamen

ONE

Pipavav, Port Klang, Singapore, Shangai, Ningbo, Xiamen

24/05

25/05

TIP

MOL GATEWAY

COS

Jebel Ali, Mundra, Hazira, Nhava Sheva

25/05

26/05

CIX

ITAL LUNARE

SMM

Jebel Ali, Mundra, Hazira, Nhava Sheva

NSICT - Mumbai ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports Mundra, Nhava Sheva, Valencia, New

20/05

21/05

MESAWA

Kattupalli

Port klang

JPO VIRGO

CCA

York, Norfolk, Charleston, Savannah,

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

20/05

21/05

ACS

HYUNDAI PARAMOUNT

054W

HMM

Krishnapatnam, West Port Klang , Singapore, Cailan, Busan, Ulsan, Shanghai, Ningbo, Yantian

21/05

22/05

PIX2

SSL KRISHNA

018S

SHR

Tuticorin, Cochin, Pipava, Kandla, Jebel ali

23/05

24/05

PIX2

SCI CHENNAI

SM473

SCI

Tuticorin, Cochin, Pipava, Kandla, Jebel ali

23/05

24/05

TCX

XPRESS JERSEY

20005

SCA

Chennai, WestPort Klang, North Port Klang, Singapore, Laem Chabang

25/05

26/05

SHTL

MAERSK KENTUCKY

2014

MSK

NCT, Krishnapatnam ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

22/05

23/05

ACS

Hyundai Dynasty

078W

Hyundai, RCL

Krishnapatnam, West Port Klang, Singapore, Cailan, Busan, Ulsan, Shanghai, Ningbo, Yantian

24/05

25/05

VCH-2

FSL Singapore

3

Colombo, Damietta Piraes Rotterdam, London

26/05

27/05

COASTAL

SSL Chennai

154

Colombo

25/05

26/05

ECX

SSL Kutch

189

Haldia, Paradip

23/05

24/05

MAERSK SHUTTLE

Maersk Kentucky

2014

Maersk & Safmarine,XCL

Colombo, Salalah

26/05

27/05

CCG

Neyyar

0010

MSC, SCI,

Cochin, Nhava Sheva, Mundra, Jebel Ali, Bandar Abbas, Dammam

23/05

24/05

PIX-2

SCI Chennai

473

Haldia, Colombo

Kakinada Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

20/05

21/05

KAK>CMB

KAPITAN MASLOV

086S

FAR SHIPPING

Halida, Colombo

27/05

28/05

KAK>CMB

KAPITAN AFANASYEV 1

103S

FAR SHIPPING

Halida, Colombo

Freeport Mundra, Nhava Sheva, Valencia, New 21/05

22/05

INDUS

NORTHERN JUBILEE

MSC

Freeport 23/05

24/05

IEX

CAPE MORETON

SBG

23/05

24/05

IIX

NEGAR

RIS

24/05

25/05

BMM

HAZEL

PRD

25/05

26/05

MIAX

MOZART

HLI

25/05

26/05

MWE

MAERSK BROOKLYN

MSK

27/05

28/05

GIX

SCIO SKY

PRD

Colombo, Damietta Piraes Rotterdam, London Colombo, Damietta Piraes Rotterdam, London

28/05

MESAWA

LEONIDIO

Port Elizabeth, Durban, Port Louis, Jebel Ali, Mundra, JNPT, Colombo

MSK

York, Norfolk, Charleston, Savannah,

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

20/05

21/05

CHX

NORTHERN

018W

MSK

Ennore, Krishnapatnam,

PROMOTION

Voy

Agent/Line

Calling Ports

22/05

23/05

SWAX

JOGELA

L0154

HLI

DAR, JEC, JEA, MUN, MBA

22/05

23/05

EPIC2

HONG KONG EXPRESS

L0172

HLI

TNG, ANR, HAM, KHI, LEH, MUN, JED, LGP, RTM

31/05

01/06

AACI

COSCO HELLAS

L0193

COS

OAK, HPH, CMB, LGB, SHA, LCH

ICTT - Vallarpadam ETA

ETD

Service

Vessel Name

Voy

Agent/Line

20/05

21/05

PIX2

SSL BHARAT

81

SHR

21/05

22/05

CCG-W

VARADA

0024W

SMI

Cochin, Kanda, Mangalore, Cochin

22/05

23/05

TCICOSTL

TCI EXPRESS

20196

TCI

Cochin, Kanda, Mangalore, Cochin

22/05

23/05

SMILE

61

SHR

Cochin, Kanda, Mangalore, Cochin

23/05

24/05

PIX2

SSL KRISHNA

18

SHR

24/05

25/05

PIX1

SSL GANGA

47

SHR

25/05

26/05

TCICOSTL

TCI ANAND

1500320

TCI

SSL BRAHMAPUTRA

Visakhapatnam, Tanjung Pelepas, Xingang, Qingdao

NEYYAR

Vessel Name

London

ETA

CCG

Service

Colombo,Damietta Piraes Rotterdam,

VCTPL, Vizag

25/05

ETD

Singapore

Freeport

24/05

ETA

Nhava Sheva, Mundra, Port Qasim,

Mundra, Nhava Sheva, Valencia, New 27/05

Bharat Mumbai Container Terminal

York, Norfolk, Charleston, Savannah,

0010

SIM

Cochin , Nhava Sheva, Mundra, Jebel Ali, Bandar Abbas, Dammam

25/05

26/05

VKS

SSL BALAJI

16

SSL

26/05

27/05

FSLVCH

KAPITAN

104S

FOC

Colombo

AFANASYEV As the data is received by us, sometimes even at the eleventh hour by telephonic messages from the concerned Steamer Agents, there is every likelihood of last minute changes in the data published for which and also for the printing errors occuring the Management of Port Wings is not responsible or liable.

Visit

Calling Ports Tuticorin, Cochin, Pipava, Kandla, Jebel ali

Tuticorin, cochin, Pipava, Kandla, Jebel ali Mundra, Hazira, Cochin, Tuticorin, Mangalore, Mundra Cochin, Kanda, Mangalore, Cochin

www.portwings.in for Latest News

May 20th - 26th Issue

Warehousing & Logistics Sector To Grow at 35% in 2021: Report New Delhi Port Wings News Network he warehousing and logistics asset class could be among the fastest to recover from the coronavirus crisis, a report says, citing an expected increase in domestic demand and possibility of global firms shifting manufacturing to India to de-risk supply chains as reasons, according to ET. The Welspun One Logistics Parks (WOLP) report estimates that the warehousing and logistics industry will grow at 35% in 2021 compared with the earlier industry demand forecast of 25%.

“The transition of retail to online and larger inventory levels by ecommerce players will speed up the warehousing demand further. The resulting impact will be felt substantially in demand for inner-city logistics and cold chain facilities,” Welspun One Logistics Park managing director Anshul

T

Singhal said, adding that the firm is in talks to raise capital to expand its business across the country.

The segment is also expected to attract a large pool of capital with fund managers looking at warehousing and industrial real estate as a safer, resilient and scalable asset class for their investors.

“There is significant amount of cash available to be invested in the warehousing and logistic space. The focus will be on long-term strategy, but in the short term, funds will be cautious to put in money,” said Aloke Bhuniya, CEO of Ascendas Firstspace, a joint venture between CapitaLand and Firstspace Realty.

Occupiers are also expected to look at backup storage options in terms of large warehouses in tier 2 & 3 markets to further de-risk their supply chains, away from the tier 1 cities which have been highly affected.

"We are strategising and looking

at newer markets like Gujarat and Kolkata to expand our business.

There is a lot of uncertainty in the market due to Covid-19, but at the same time there are some large demands for warehousing floating in the market too,” said Aditya Virwani, COO, Embassy Group.

According to the report, unlike other real estate asset classes, the warehousing sector is fully prepared and mature to be able to scale and take advantage of the increase in demand due policy initiatives like GST, infrastructure status and 100% FDI approvals.

The year 2019 also saw larger funds and developers evaluating regional developments having strong tenant profile with a combination of land and stabilised assets.

Global funds like Blackstone, ESR and Morgan Stanley are some of the firms that invested in a combination of platform or project level deal.

LG Polymers Completes Transfer of Gas From Vizag Plant, Port Visakhapatnam Port Wings News Network leven days after a gas leak from LG Polymers India near here claimed 12 lives and left hundreds ill, the company on Monday announced that it has successfully completed the transportation of styrene monomer gas inventory within the plant as well as in the tanks at the port, a IANS report in Outlook said.

"There is now no styrene left at the LG Polymers plant in Vizag," said Jeong Sunkey, Managing Director, LG Polymers.

He said the company had collaborated with other institutions to devote its resources to analyse the cause of the May 7 accident to prevent its re-occurrence and extend assistance to the bereaved families and the affected survivors.

"Our immediate focus is to

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provide assistance to the people in the area to help them resume normal lives as soon as possible," he said in a statement.

On May 14, the company had said that it had begun transportation of the remaining Styrene Monomer to South Korea.

"We have begun the transportation of Styrene Monomer (SM) inventory within the plant as well as in styrene tanks at the port by vessels to South Korea to prevent and eliminate all risk factors," the company said.

A team of technical experts from Seoul headquarters have arrived at LG Polymers India plant.

"With their help, we have already commissioned a special task force of more than 200 people to actively support the bereaved families and others. This team has been visiting people at the hospitals

and their homes. Food and medical services have been organized for the returning residents. Various support activities such as supplying medical and household goods and sanitation of homes will be continued."

It had also set up Suraksha Hospital to take care of all residents'' health check-ups and future treatment. The helpline number had been actively attended to respond to queries from the villagers.

The company provided more than 110,000 meals to the local residents and also responded to more than 101 requests on helpline number from May 13 to 17. He assured that the company will continue to do its best to ensure life in the area returned to normal.

Venkatapuram and four other villages surrounding the plant were affected by the gas leak in the early hours of May 7.

Govt Allows 414 Indian Seafarers Stuck in Italy to Return on Chartered Flights Mumbai

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Port Wings News Network he government has allowed 414 Indian seafarers stranded in Italy to return on chartered flights, BusinessLine reports citing an Ministry of Home Affairs order.

Belonging to Goa, the 414 seafarers will be repatriated on specially chartered B-737 aircraft arranged by Costa Cruises.

“MHA has no objection to carrying out immigration functions in respect of

414 Indian nationals coming to India (Dabolim Airport, Goa) from Italy through three special chartered B-737 aircraft arranged by Costa Cruises, subject to production of a no objection certificate/permission from competent authority in Ministry of Health and Family Welfare and Directorate General of Civil Aviation,” the order issued by the MHA on May 16 said.

Many Indian seafarers working on cruise ships across the globe were stranded on the luxury liners after the outbreak of coronavirus

forced cruise line operators to suspend services.

Cruise line owners had offered to evacuate the Indian crew on chartered flights as was done in the case of Indonesian and Philippines crew, but a government wary of easing the international travel restrictions to combat the pandemic, refused to budge so far.

Since April 24, two cruise liners – Marella Discovery and Seven Seas Voyager - travelled to India just to drop off 313 Indian crew on board.

“Lachin” vessel – the First Tanker Produced in Azerbaijan, Commissioned to Operate in Foreign Waters Mumbai Port Wings News Network ccording to the order of the President of the Republic of Azerbaijan Ilham Aliyev, along with maintaining the leading position of the Azerbaijan Caspian Shipping Company (ASCO) in the Caspian Sea, activity in foreign waters is also constantly in the spotlight for eliminating dependence on one market, ASCO said in its release.

ASCO has taken another step in this direction. Complying with the

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Company’s decision, the “Lachin” tanker will operate in foreign waters.

“Lachin” is the first national-made tanker commissioned with the participation of President Ilham Aliyev in December last year.

Filled up with diesel fuel, “Lachin” tanker is ready for its first voyage. From the port of Baku, the ship will set off towards the Georgian port of Kulevi. Passing along the Volga-Don Canal through the internal waters of Russia, the ship will reach the port of Kulevi, and after additional loading, will sail

to Turkey. It is planned to deliver the cargo transported on the “Lachin” tanker to the Turkish port of Gebze.

From now on, a ship with a perAfter a long break, ASCO’s activity in international waters outside the Caspian Sea was restored in 2014 by the purchase of the Uzeyir Hajibeyli and Natavan vessels upon the order of President Ilham Aliyev. With the launch of the Lachin vessel, the number of ASCO’s ships sailing outside the Caspian Sea reached 15. 12 of these vessels are dry cargo tankers, and 3 – liquid cargo carriers.

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NEWS - BITS Navigate Rotterdam Improved Further Thanks to Data Sourced From Sector Players

The Port of Rotterdam Authority can continue improving Navigate Rotterdam by making use of data shared by private sector parties, the company said in its release. The digital application Navigate enables shippers and freight forwarders to choose the most efficient and sustainable transport options for their container shipments. By adding a new route engine and utilising data sourced directly from carriers and operators, the current version of Navigate is more efficient, more complete and – as a result – more reliable.

In 2017 the Port of Rotterdam Authority launched Navigate: a digital application that provides insight into connections to, from and via Rotterdam, as well as business activity in the port. Navigate Rotterdam offers a comprehensive overview of all deep sea and short sea connections via Rotterdam and links these to rail and inland shipping connections in the hinterland. In addition, Navigate’s ‘empty depot service’ shows users where empty containers can be collected and dropped off. The application also includes an online business directory that offers details on the wide range of companies in the port area.

Based on the selected point of departure and destination, the route planner presents a number of different door-to-door options. For each route, the application outlines possible maritime connections, as well as which rail, inland shipping or road haulage options are available for transporting the shipment to its destination. Users can apply filters to quickly pinpoint which solution best suits their needs. After this, they can use Navigate to get in touch with different service providers – at the click of a button – to request a price quote, for example.

Nassau Cruise Port Raises Over USD130m Through Historic Bond Issue

Nassau Cruise Port Ltd. (Nassau Cruise Port) has successfully raised over $130 million through its private bond offering. The bond offering was launched on May 4 and closed on Friday, May 15, 2020. Colina Financial Advisors Ltd. (CFAL), the lead placement agent for the bond issue, has confirmed that the offering was oversubscribed, Global Ports Holding said in its release.

The redevelopment of the port facility will occur in three phases. The first phase of the project, which involves the demolition of current buildings and structures, is underway. Phase two, commences within 60 days, and involves completing the marine works, which includes material purchases, an expansion of the berthing capacity of the port, and upgrades to existing infrastructure. In phase three, we will complete the landside works, including the new arrivals terminal and plaza, Junkanoo Museum, retail Market Place, amphitheater, and other food and beverage and entertainment spaces. The funds raised through the most recent bond offering will be used to support the work of phases one and two. In the second quarter of 2021, we will launch an initial public offering (IPO) to raise equity through investment in the Bahamas Investment Fund (BIF) and to raise additional debt to finalize the project. Through the IPO, thousands of Bahamians will have an opportunity to invest in BIF, facilitating broad-based Bahamian ownership in the project.

Diana Shipping Announces Time Charter Contract for m/v Leto With Cargill

Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, has entered into a time charter contract with Cargill International S.A., Geneva, for one of its Panamax dry bulk vessels, the m/v Leto. The gross charter rate is US$9,000 per day, minus a 4.75% commission paid to third parties, for a period until minimum July 15, 2021 up to maximum September 30, 2021. The charter is expected to commence on May 21, 2020. The “Leto” is a 81,297 dwt Panamax dry bulk vessel built in 2010.

This employment is anticipated to generate approximately US$3.73 million of gross revenue for the minimum scheduled period of the time charter.

Diana Shipping Inc.’s fleet currently consists of 41 dry bulk vessels (4 Newcastlemax, 13 Capesize, 5 Post-Panamax, 5 Kamsarmax and 14 Panamax). As of today, the combined carrying capacity of the Company’s fleet is approximately 5.1 million dwt with a weighted average age of 9.67 years.

CUSTOMS EXCHANGE RATES Notification No.41/2020 (N.T.) ALL RATES PER UNIT

FOREIGN CURRENCY Australian Dollar Bahraini Dinar Canadian Dollar Chinese Yuan Danish Kroner EURO Hong Kong Dollar Kuwaiti Dinar New Zealand Dollar Norwegian Kroner Pound Sterling Qatari Riyal Saudi Arabian Riyal Singapore Dollar South African Rand Swedish Kroner Swiss Franc Turkish Lira UAE Dirham US Dollar Japanese Yen (100) Korean Won (100)

with effect from 7th May 2020

RATE (INR) Import Export 49.95 207.20 54.90 10.85 11.20 83.70 9.95 253.55 47.20 7.50 95.95 21.50 20.85 54.40 4.25 7.85 79.50 11.00 21.30 76.70 72.65 6.40

47.75 194.20 53.05 10.55 10.80 80.70 9.60 237.75 45.05 7.25 92.65 20.20 19.55 52.60 3.95 7.60 76.50 10.35 20.00 75.00 70.00 6.00

We are not responsible for any mistake. ALL RATES ARE PROVISIONAL. The rates in these column are only meant for guidance.

RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2018-2020 Posted at Pathrika Channel, Egmore, RMS, Chennai-8.

Date of Publication - Wednesday, Posted on Tuesday / Wednesday

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Olam Cocoa Donates Food, Medical Supplies to Help Farming Communities Across Africa Fight Covid-19 Chennai

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Port Wings News Network lam Cocoa has announced a package of support to provide personal protective equipment (PPE) and important medical supplies to cocoa farming communities tackling COVID-19 across Central and West Africa.

Farming cooperatives, hospitals and health centres will receive much-needed equipment including face masks, surgical gloves, hand sanitiser, thermometers and handsfree washing stations.

Vulnerable communities will also receive food parcels to help cocoa farming families who are struggling with the rising price of basic food staples as a result of the pandemic.

In Nigeria, where the cost of some staples has almost doubled during the crisis, Olam Cocoa has already distributed 9,600 boxes of food, each box providing enough meals to feed a family of four for three days.

This package of support includes: • 99,500 masks for health workers and farmers in Côte d'Ivoire, Ghana, Nigeria and Cameroon • 30,900 bottles of hand sanitiser for health workers and farmers across the four countries • Over 1,200 hands-free washing stations in farming communities across the four countries • Radio broadcasts on more than 30 local stations in Ghana, Nigeria

and Cameroon providing important public health information and advice to one million cocoa farmers in rural villages • 1,970 posters and push notifications on WHO guidance around hygiene, social distancing and child labour prevention to increase awareness in cocoa communities in Côte d’Ivoire • A continued commitment to delivering Good Agricultural

Practice training to help cocoa farmers improve yields and incomes.

That includes developing new training videos in Nigeria delivered via LED screens on mobile vans where it is not possible to safely visit farmers in person Andrew Brooks, Global Head of Sustainability, Olam Cocoa, said: “In these extraordinary times, we must look after one another. Our priority is to support the people working across the global supply chain and especially cocoa farmers who may be struggling with rising

food prices and limited access to healthcare and infrastructure.

We will continue to collaborate with local governments, health authorities and communities to provide equipment and support where it is needed across our cocoa origins.”

Olam Cocoa is also providing similar support around the world.

Together with Australian-backed Market Development Facility, it is launching a Covid-19 awareness campaign in Papua New Guinea which aims to share public health information and PPE with 82,000 farming households.

While in Brazil and Indonesia, it is using its digital apps to deliver public health information to farmers.

This builds on the efforts of parent company Olam International which has committed over $3.5m of in-kind and financial support to the global fight against COVID-19.

This ranges from sensitising farmers in Indonesia, to providing medical equipment and essential food supplies across Asia, Africa and south America, to producing 3D printed masks for police and social workers in Europe.

May 20th - 26th Issue

Important Milestone Bokalift 2 Crane Vessel Conversion Chennai

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Port Wings News Network oyal Boskalis Westminster N.V. (Boskalis) announced an important milestone in the conversion project of its new crane vessel Bokalift 2.

According to a media statement, on 17 May 2020, a steel cutting ceremony took place at the shipyard Drydocks World in Dubai. This milestone marks the beginning of an important new phase in the modification of the vessel’s hull and deck.

T h e conversion s c o p e includes the fabrication a n d installation of 9,000 tons of steel blocks on both sides of the vessel to increase the stability of the vessel and the installation of a new work deck. A 4,000 ton crane will be installed on the vessel in 2021. This revolving crane will be capable of lifting structures more than 100 meters high.

Commenting on the development, Peter Berdowski, CEO of Boskalis, said, “This steel cutting ceremony

marks an important step for Boskalis and the conversion of the Bokalift 2.

The huge deck space combined with the large crane make the Bokalift 2 an extremely versatile asset and valuable addition to the Boskalis fleet. We look forward to putting this unique crane vessel to work on its maiden offshore wind project in Taiwan. Yesterday’s milestone is especially commendable in view of the challenging times that we are all currently experiencing.”

The Bokalift 2 will be deployed for the first time at the Changfang and Xidao offshore wind farm (CFXD OWF) project in Taiwan, owned by Copenhagen Infrastructure Partners (CIP) and two Taiwanese life insurance companies. The project includes the transportation and installation of 62 three-legged jacket foundations and the accompanying 186 pin piles.

Thank You Torchbearers of Economy Logistics is the lifeline of the country and many at times your service to our nation gets unnoticed.

Our State Government in accordance with Government of India enforced the lockdown due to the COVID-19 Pandemic on 24 March 2020.

While most of us followed our government directive to stay at home and rightly so, some essential services like logistics industry comprising of CFS, CFS’s admin staff, container crane operator, yard in charge, system management staff, security personal, gate in charges, top management of CFS, doctors, fumigation agents, staff, facilitators, Customs officers, and most importantly drivers of container-laden vehicles, have put their life at risk and selflessly worked towards movement of import and export containers.

We at Fumigation Services salute you all from the bottom of our heart for the incomparable, unparalleled service even during this pandemic situation and for being the backbone of our economy.

THANK YOU

FUMIGATION SERVICES PVT LTD.,

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No.1, Buddu Street, 3rd Floor, Chennai - 600 001

www.fumigationservice.com For Booking For PQ Arrangements For New Enquires

: 4242 7777, 2521 3409, 2522 1241 : 2521 7488, 2224 2175 : 2522 0626, 2522 5061, 2524 0672

booking@fumi.in pqfumigation@fumi.in fumi@fumi.in

Branches: Bangalore, Cochin, Coimbatore, Delhi, Guntur, Hosur, Hyderabad, Kakinada, Krishnapatnam, Mangalore, Mumbai, Mundra/Gandhidham, Tuticorin, Vizag

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Port Wings - Maritime Exim Weekly Newspaper : Published by K.Sivakumar on behalf of Universal Media Associates, Old No.72, New No.149, 1st Floor, Srinivasa Complex, Linghi Street, Mannady, Chennai - 600 001. And Printed by V.Meganathan at Web Kingdom, No.115, Jani John Khan Road, Royapettah, Chennai – 600014. Editor: K.Sivakumar.