Port Wings Maritime Exim Weekly Newspaper 12 May 2021 Issue

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May 12th - 18th, 2021 Issue

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

Wednesday, May 12, 2021

8 Pages

M K Stalin Sworn in as Tamil Nadu Chief Minister, Issues Five Orders on Day 1 Chennai

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Port Wings News Network MK chief Muthuvel Karunanidhi Stalin was sworn in as the Tamil Nadu Chief Minister at Raj Bhavan on 7 May 2021, according to a report in The Indian Express. Governor Banwarilal Purohit administered the oath of office and secrecy to the 68-year-old and his 33 ministers.

Dhanapal after the swearing-in ceremony. While nobody touched his feet, the new CM was also seen greeting each and every cabinet colleague during their turns to take oath.

A day before the swearing-in ceremony, Stalin had visited veteran Tamil politicians such as senior CPI leader R Nallakannu (95) and CPI(M)’s N Sankariah (99) at their

blessings.

Stalin, along with his ministers, then headed to the memorials of former CMs C N Annadurai and Karunanidhi as well as that of social reformist E V Ramasamy “Periyar” to pay homage.

Soon after he assumed charge, Stalin issued five orders, including a decision to resume the financial assistance of Rs 2,000 each to the

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JNPT and New Mangalore Port Handle 120 Metric Tonnes of Oxygen on Priority Basis New Delhi Port Wings News Network ndia’s largest Container Port, Jawaharlal Nehru Port Trust handled four medical-grade oxygen filled cryogenic containers with total quantity of 80 MT. Each cryogenic container carried 20 MT of Liquid Medical grade Oxygen.

These medical grade oxygen containers were loaded in Jebel Ali, United Arab Emirates and reached India on 10 May 2021.

Indian Navy’s INS Kolkata reached New Mangalore Port today carrying 40 MT of oxygen from Kuwait. The cargo also comprised of 5 tons of oxygen cylinders and 4

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high flow oxygen concentrators.

It may be noted that Ministry of Ports, Shipping and Waterways has directed all Major Ports of India, including the Kamarajar Port Limited, to waive-off all charges levied by Major Port Trusts (including vessel related charges, storage charges etc.) and accord highest priority in the berthing sequence to the vessels carrying oxygen related consignments.

DGFT’s COVID-19 Helpdesk Coordinating and Resolving International Trade Related Issues Unlike the swearing-in ceremony of former chief minister the late J Jayalalithaa in 2016, when the then opposition leader Stalin was initially given a back row seat, Stalin was seen giving prominence to former deputy CM O Panneerselvam and former Speaker P Dhanapal at the venue.

There were conscious efforts from Stalin’s camp to kick-start the new government in a warm and cordial way. Stalin was seen inviting and sitting with Panneerselvam and

residences to seek blessings.

There were reports that Durga had insisted for a cabinet post for Dayanidhi, but Stalin suggested keeping it for a later stage.

After the swearing-in ceremony, Stalin visited his mother Dayalu Ammal at her Gopalapuram residence.

He also visited Kanimozhi’s mother Rajathi Ammal, who was Karunanidhi’s third wife, at her residence where she was seen trying to prevent Stalin when he tried to touch her feet for

2.07 crore ration card holders in the state. This would cost the state exchequer Rs 4,153.39 crore.

Another order said the Covid treatment expenses in private hospitals will be paid by the government under the state’s health insurance scheme, specifying that all kinds of treatments related to Covid-19 will be borne by the state under the scheme in private hospitals.

The government also issued an Contd. on page -2

New Delhi Port Wings News Network n view of the surge in COVID-19 cases, the ‘Covid-19 Helpdesk’ of Directorate General of Foreign Trade (DGFT) in the Department of Commerce has from 26.04.2021 onwards started collecting information on the difficulties being faced by exporting community so as to examine and resolve the irritants faced by the trade & industry expeditiously.

Various issues relating to Department of Commerce/DGFT, Import and Export Licensing Issues, Customs clearance delays

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and complexities arising thereon, Import/Export documentation issues, Banking matters, Transport/ Port Handling/Shipping/Air Movement issues and availability of manpower for running export units etc. are the key areas being examined by the Helpdesk. Trade related issues concerning other Ministries/Departments/Agencies of Central Government and State Governments are being collated and are being taken up for resolution with the concerned agencies.

Major areas which have been flagged through Helpdesk for support, include-Import of Oxygen Concentrators/Oximeters/ Covid Related Medical Devices – Regulations & relaxations requested; Application Status of licenses incentives; Banking related Issues – Shipping Bills not reflecting in RBI EDPMS system.

Contd. on page -2

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Inside Success of Pre-pack Scheme... Pg-2 Human Rights Due Diligence... Pg-3 Andhra Pradesh Govt Gives... Pg-4 Adani Ports Could Abandon... Pg-5 Vessel Position at Terminals and Ports... Pg-6 Latest Customs Exchange Rates... Pg-7 Indian Railways Inducts 100th... Pg-7 Continued Growth, High Profit... Pg-8

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May 12th - 18th, 2021 Issue

M K Stalin Sworn in as Tamil Nadu...

Wednesday, May 12, 2021

Wing 7 Feather 39

COVID-19 Second Wave Bringing New Challenges for India

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he spiraling crisis from resurgence of COVID-19 cases in India has dented support for the ruling BJP but voter support for Prime Minister Narendra Modi and his party will remain strong over the coming quarters and through this humanitarian crisis, says Fitch Solutions.

The sudden and steep surge in the number of coronavirus cases - the highest-ever 4,12,262 new infections and a record 3,980 daily death toll in a day - has swamped the health system, which seemed to have collapsed.

While containment measures will weigh on India’s ongoing economic recovery, the localised nature of restrictions means that the actual impact is likely to be much less severe relative to April-June 2020 when a strict nationwide lockdown was imposed, Fitch Solutions said.

It forecasted real GDP to grow 9.5 per cent in 2021-22 (April 2021 to March 2022). Risks to this forecast are to the downside, as the surge in new daily COVID-19 caseloads will most likely see an extension and expansion of lockdowns, it said adding that the resurgence of COVID-19 cases exposed cracks in the Indian healthcare system.

This second wave in India has been widely attributed to the B.1.1.7 variant - first identified in the UK - which had ramped up cases in Punjab. Another possible culprit is a homegrown variant, B.1.617, with two worrying mutations that originated in Maharashtra, the worst affected state.

“In addition to this, in India, a year of COVID-19 fatigue gave way to an ill-advised euphoria over herd immunity as cases began to dip in January 2021. “Inadequate government measures and people not adhering to public health guidelines, such as wearing face masks and maintaining social distancing, are also the main reasons for India’s upward tick in infections,” it said.

It added that a number of political, social and religious events and elections for local bodies in multiple states and preparation for Assembly elections in others also created an opportunity for the virus to move fast.

Fitch Solutions said that in March this year, a few weeks before the new surge, Health Minister Harsh Vardhan, who is also a physician, asserted that India was in the “endgame” of the COVID-19 pandemic, justifying the government’s decision to export medical resources to other countries.

With 8.5 hospital beds per 10,000 population and eight physicians per 10,000, the country’s healthcare sector is not equipped for such a crisis. Hospitals across the country have filled to capacity and in addition to oxygen running out, intensive care units are operating at full capacity and nearly all in the country ventilators are in use.

“Despite surging infections, an overburdened healthcare Sample system, and TEXTnon-stop burial and crematorium activity, the Modi administration remains resistant to imposing a stringent sweeping nationwide lockdown the likes of Q1FY21 (April 2020-March 2021).

“This was due to considerations around the economic damage another such lockdown would cause,” it said. The onus of the pandemic containment has hence been shifted to the state governments, Fitch added.

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Continued from page -1 order by reducing Aavin milk prices

by Rs 3 per litre from May 16, which was a poll promise of DMK. Facing an additional expenditure of Rs 1,200 crore as subsidy to the transport corporations, the government also ordered to permit free travel for women in ordinary services in town buses.

Addressing and resolving thousands of grievances he collected from 234 constituencies during his campaign trips titled “Ungal Thogudhiyil Stalin (Stalin in your constituency)” in the first 100 days of his regime was yet another poll promise. On Friday, Stalin issued an order to constitute a department to implement the promised scheme “Chief Minister

in Your Constituency” headed by an IAS officer to handle it.

Stalin also appointed four senior bureaucrats as his secretaries — T Udhayachandran, who was the commissioner of archaeology at the forefront of large-scale excavations at Keeladi near Madurai; Dr P Umanath, who previously headed the Tamil Nadu Medical Services Corporation; M S Shanmugam, who was shunted out of Tamil Nadu FibreNet Corporation Limited (TANFINET) by the previous AIADMK regime; and Anu George, the former protocol official of late Chief Minister J Jayalalithaa.

The government also issued orders to appoint senior IAS officer V Irai Anbu as the new Chief Secretary. The current CS Rajeev

Ranjan has been transferred and posted as the MD of Tamil Nadu Newsprint and Papers Limited.

Stalin began his political life aged 14 with the campaigns for state elections in 1967. He was part of the DMK general committee aged 20 in 1973 — one year after M G Ramachandran had quit the party and floated the AIADMK. Arrested under MISA Act in 1975, Stalin acted in TV serials in the mid-1980s before becoming the mayor of Chennai city in 1996.

He was also the deputy CM in the 2006-11 cabinet of his father and former CM, the late Karunanidhi.

In 2011 and 2016, Stalin won from the Kolathur constituency but the DMK was trounced in both elections.

DGFT’s COVID-19 Helpdesk Coordinating and Resolving...

Continued from page -1 Customs Clearance issues Documentation issues Export Obligation extensions Transport/Port Handling/ Shipping/Air Movement Within a period of 15 days, 163 requests have been received seeking support, policy clarity and relaxations etc., out of which 78 have been fully resolved. Major issues which got coordinated/ resolved during the period, include: On 6th May 2021, PESO relaxed the norms for registration of imports by way of simplifying online registrations without carrying out the physical inspection of production facilities

of global manufacturers before granting registration and approvals for importing oxygen cylinders and cryogenic tankers/containers; Issue of mandatory BIS and SIMS requirements for import of oxygen cylinders to India. This would reduce the compliance burden and will waive off the fees to be paid for SIMS registration; DGFT took up with RBI issue regarding the Shipping bills not reflecting in the RBI-EDPMS system for the exporters to be able to get their data updated for availing benefits under the FTP; DGFT took up the issue with DPIIT regarding the request of some

industries for allocation of Oxygen supply for Industrial activities and the support requested for subsidies for establishing the Oxygen Manufacturing plant; DGFT successfully addressed issue of lockdown in Karnataka impacting garment manufacturing industry.

Industry can approach the Covid 19 Helpdesk for support and register their issues on the DGFT website (https://dgft.gov.in) or email at dgftedi@nic.in. Department of Commerce is committed to take up all such matters received on priority with other Ministries/Departments and State Governments/UTs.

Success of Pre-pack Scheme for MSMEs Will Lie on its Implementation by CoC: NCLT New Delhi Port Wings News Network he success of pre-packaged insolvency resolution or PIRP framework for micro, small and medium enterprises (MSMEs) announced by the government will mainly lie on its implementation by the Committee of Creditors (CoC), Mr Rajesh Sharma, Member (Technical), National Company Law Tribunal (NCLT) said at an ASSOCHAM webinar on 6 May 2021.

“It is a very welcome move on part of the government as well as IBBI (Insolvency and Bankruptcy Board of India) to bring in PIRP and that too at a very faster pace,” said Mr Sharma addressing the delegates in a virtual interactive session on Pre-Packaged Insolvency Norms for MSMEs conducted by The Associated Chamber of Commerce and Industry of India (ASSOCHAM).

He added, “Incidentally, the overall scenario because of Covid-19 pandemic is not very encouraging for such a good step of bringing PIRP but still let us see within the overall adverse scenario how far and beautifully they implement this overall scheme.”

The NCLT Member however said that it would be less burdened up to some extent in cases where after receiving application for PIRP, the process takes off and finally some resolutions are found.

Mr Sharma said that apart from couple of challenges being faced, the government and the IBBI have incorporated all the best practices in the PIRP framework.

Talking about the challenges, he said that firstly, the Institute of Chartered Accountants of India (ICAI) needs to do a lot with respect

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to standardisation of forensic audit report as well as up to what extent responsibility can be casted upon the forensic auditor.

“What we are observing while going through the forensic audit report, 95 per cent of its contents of first two pages is dedicated to disclaimers. Forensic auditor in clear terms says that whatever he has done, he cannot be held responsible for even a single line of the report, in these circumstances it is difficult for the adjudicating authority to rely fully on forensic auditors’ report and secondly, if you order anything on the basis of the forensic auditor’s report and tomorrow if it is found that the data is not correct, there is no one to be held responsible for that,” said Mr Sharma.

Noting the other challenge being faced, he stated that while getting into PIRP, companies are confronted with a situation where financial creditors are agreeable to the draft proposal of PIRP, however operational creditors, which may be diversified and large in numbers may not be agreeing to the PIRP process.

“I am quite practical in thinking that there is a possibility that your operational creditor who is not happy with the haircut being proposed by you or where his payments will be getting delayed because of the PIRP process and he doesn’t have full confidence of getting his full money, he may go ahead and file section-9 application against you,” said Mr Sharma.

He further said, “Of course within 14 days if you file PIRP, his application will not be considered but if you fail because of various processes being involved, there is a possibility that the 14-days period gets over and your application is filed after 14 days and in that case your

operational creditors’ application will be first taken up by NCLT rather than PIRP application, this is one area you need to look at extensively.”

In his address, Mr Ritesh Kavadia, Executive Director, Insolvency and Bankruptcy Board of India (IBBI) said that the government because of urgent need of MSMEs has used pre-pack scheme as a special insolvency resolution process, if this scheme sees some success, it may be expanded to other corporate debtors and other structures as well.

“If this performs well, there is no reason it should not expand to other corporate debtors as well. Globally, some sort of pre-pack is available in advanced jurisdictions and with our maturity and relatively in short period of five years, we are hopeful to reach a stage where we can try our hands at pre-pack,” said Mr Kavadia.

He further said, “Even the MSME definition itself covers more than 50 per cent of companies registered as on today, so this is not short-term, once we see result and address the concerns arising out of this, we are very-very hopeful to see its role expanding to other companies in time to come.”

Other key speakers who addressed the ASSOCHAM virtual conference included: Mr Anil Goel, member, ASSOCHAM and founder & chairman, AAA Insolvency Professional LLP; Mr Alok Dhir, co-chairman, ASSOCHAM National Council for IBC & Valuation and founder & managing partner, Dhir & Dhir Associates; Mr Sahil Narula, Partner, RNC Valuecon LLP; Ms Manisha Chaudhary, managing partner, UKCA and Partners; Mr Ankur Shrivastava, managing partner, EZY Laws; Ms Anju Agarwal, partner, ASC Group; Mr N.K. Dilip, partner, Tatva Legal.

May 12th - 18th, 2021 Issue

Human Rights Due Diligence Tool Urges Supply Chains Firms To Protect Seafarers’ Rights

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Chennai

Port Wings News Network he Human Rights Due Diligence Tool is a joint initiative of the UN Global Compact (UNGC), the Office of the High Commissioner for Human Rights (UN Human Rights), the International Labour Organization (ILO) and the International Maritime Organization (IMO).

A wide-ranging set of guidance has been issued to help enterprises using shipping services to protect the human rights of seafarers, as hundred of thousands are still stranded on ships due to COVID-19 imposed travel restrictions.

The Human Rights Due Diligence Tool is a joint initiative of the UN Global Compact (UNGC), the Office of the High Commissioner for Human Rights (UN Human Rights), the International Labour Organization (ILO) and the International Maritime Organization (IMO).

The Due Diligence Tool for cargo owners and charterers has been issued amid concerns that the number of crew stranded at sea by COVID-19 restrictions could surge from the current level of 200,000, potentially returning to the peak of 400,000 seafarers at the height of the crew change crisis in September 2020.

UN agencies hope the new guidance will help ensure that the working conditions and human rights of seafarers are respected and comply with international standards.

The new guidance aims to ensure that seafarers have their rights safeguarded in areas such as physical and mental health, access to family life and freedom of movement.

Whilst recognizing the importance of the maritime industry in transporting more than 80% of global trade goods, UN agencies have expressed concern at reports of seafarers working beyond the 11-month maximum period of service on board set out by the ILO Maritime Labour Convention (MLC).

The UN agencies have also expressed strong concern at reports that companies engaged in international trade are avoiding chartering vessels where a crew change is due, with some demanding “no crew change” clauses in charter party agreements, preventing needed crew changeovers and adding further pressure on the maritime industry. Under the UN Guiding Principles on Business and Human Rights (UNGPs), companies engaged with the maritime industry have a distinct responsibility to respect the human rights of seafarers as workers along their value chain.

Welcoming the new tool, IMO SecretaryGeneral Kitack Lim said: “Seafarers are at the heart of the global supply chain. They are also at the mercy of COVID-19 restrictions on travel and transit. This has led to hundreds of thousands of seafarers being denied repatriation, crew changes, shore leave and ultimately being forced to stay working on ships long beyond their contracts. It is incumbent on everyone involved with shipping, across the entire supply and logistics chain, to ensure seafarers rights are protected. This tool is an important step forward, providing a practical approach for cargo owners, charterers and logistic providers to consider the human rights of seafarers and ensure they are put first and foremost as they work to deliver the goods that people need and want.”

The tool provides guidance and a checklist for cargo owners, charterers and logistic providers to conduct human rights due diligence across their supply chains to identify, prevent, mitigate and address adverse human

rights impacts for seafarers impacted by the ongoing COVID-19 crisis.

Commenting on the plight of seafarers, Sanda Ojiambo, Executive Director and CEO of the UN Global Compact said: “The mental and physical wellbeing of seafarers must be a priority and this tool is an important step in building awareness of how to address human rights abuses in the maritime sector. It sends a powerful message of the importance of incorporating maritime workers in due diligence mapping to ensure that adverse human rights impacts are identified, prevented, mitigated and addressed.”

Guy Ryder, ILO Director General, said: “As the ILO Committee of Experts said in its general observation last December, it is precisely at times of crisis that the protective coverage of the MLC, 2006, assumes its full significance and needs to be most scrupulously applied. This is even more so given that the Convention contains only minimum standards for the protection of seafarers’ rights. The ILO has urged Governments to ensure the protection of seafarers’ rights, and welcomes this initiative that will help businesses to play their part in this collective effort”.

Michele Bachelet, High Commissioner for Human Rights, said: “The COVID-19 seafarer’s crew change crisis has put the spot on one the weakest links in global supply chains. This is an urgent and grave humanitarian and human rights crisis that is impacting the lives of thousands of maritime workers. All companies involved in global supply chains may be linked to this crisis.

The UN Guiding Principles on Business and Human Rights require that companies identify whether they are involved with the crisis, including through their business relationships, and take any necessary measure to seek to address the situation.”

Measures recommended as part of the tool include: --Ensure individual and collective action is taken to address concerns around seafarers’ rights, including using leverage to highlight concerns to Governments and maritime transport providers.

--Seek written assurance that no seafarers have been on board for a continuous period of more than the 11 months maximum period of service derived from the MLC, 2006.

--Verify with business partners that seafarers are not having to work beyond the expiration of their contracts without their willing consent, as to do so could be considered forced labour.

--Provide seafarers with adequate personal protective equipment (PPE) --Verify with business partners that the cost of any quarantine obligations before or after joining the ship are not borne directly or indirectly, in whole or in part, by the seafarer.

--Abide by the legal obligation to grant seafarers access to medical care ashore, for instance by permitting diversions for the purpose of medical care.

--Use the IMO recommended framework of protocols to ensure safe crew changes during the COVID-19 pandemic, as well as cascading this to any relevant partners.

--Accept route deviation requests from shipping companies for the purpose of facilitating crew changes, and relay this expectation to business partners.

--Verify that vessel operators are limiting any avoidable crew contract extensions.

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UN Launch Voluntary Guidelines To Protect Seafarers’ Human Rights Amid COVID-19 Crew Change Crisis

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Chennai

Port Wings News Network he United Nations (UN) has launched the Human Rights Due Diligence Tool, a joint initiative of the UN Global Compact (UNGC), the Office of the High Commissioner for Human Rights (UN Human Rights), the International Labour Organization (ILO) and the International Maritime Organization (IMO).

The Tool comes as worries over increased risk of violation of seafarers’ human rights, including fears over what amounts to forced labour. It is no news that the crew change crisis has deprived stranded seafarers of the enjoyment of fundamental human rights such as the right to physical and mental health, access to family life, and freedom of movement. There are reports of seafarers working on board well beyond the 11-month maximum that is set out by the ILO Maritime Labour Convention (MLC), being forced to continue working beyond the terms agreed in their seafarers’ employment agreements, without formal, free and informed consent.

The emergence of new Covid-19 variants and the government-imposed global travel restrictions add to the challenges of the pandemic and the UN agencies are warning that there may be a possible surge in the number of crew members stranded at sea.

Over 300,000 forgotten seafarers are currently stranded on board vessels worldwide.

Furthermore, some Charterers have been demonstrating irresponsible practices that jeopardise seafarers’ rights, including the appearance of ‘no crew change clauses’ in contracts between charterers and the maritime industry.

The Human Rights Due Diligence tool is intended to help businesses in the maritime

sector to uphold their responsibility to respect human rights under the UN Guiding Principles on Business and Human Rights during the COVID-19 related crew change crisis through urgent measures. It consists of three parts, each with a check list of human rights due diligence and it is primarily addressed to charterers and cargo owners. It shall be noted however that the guidelines are a response to the ongoing crisis concerning crew changes and they are not intended to provide comprehensive guidance on human rights due diligence for the maritime sector or the global maritime supply chain.

Comment Human Rights at Sea welcomes the UN Human Rights Due Diligence Tool, as well as the collective UN recognition of the need for a holistic approach to the human rights of seafarers, including the often neglected right to remediation for violations of human rights abuses at sea. Human Rights at Sea is listed in Annex B of the Tool as a Key Stakeholder and international NGO working on issues of human rights abuses at sea, and has its work listed at Annex H as an important resource for maritime human rights due diligence.

Human Rights at Sea additionally welcomes and endorses the practical steps contained in the Tool that encourage engagement with third parties, including non-governmental organisations (NGOs), who can help enterprises with the verification of human rights due diligence commitments.

The Guidelines also urge companies to utilising leverage, both individually and collectively, on governments and maritime transport providers to ensure respect for seafarers’ human rights, further reflecting the core focus and work of the charity since its inception in April 2014.

Maritime companies committed to nurturing young talents despite COVID-19 challenges

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Chennai

Port Wings News Network 1 maritime companies will host 30 undergraduates from local institutes of higher learning under the 12-week Global Internship Award (GIA) from May to July 2021, a statement from MPA Singapore said.

Established by the Maritime and Port Authority of Singapore (MPA), the GIA programme offers high-achieving undergraduates internships at global maritime companies based in Singapore. These undergraduates can acquire valuable industry experience that will prepare them for careers in the maritime sector. They will work alongside seasoned industry practitioners, who will mentor them throughout the programme.

The 30 undergraduates participating in the eighth edition of the programme come from diverse disciplines including business, computer science, engineering, law and maritime studies. They will take on roles in areas such as ship operations, shipbroking, data engineering, marine insurance and maritime law.

Given the current COVID-19 situation, participants of the GIA programme will work remotely with their host companies’ overseas offices. They will also benefit from online programmes that promote personal development and offer insights into the maritime industry. To date, 270 undergraduates have received the MPA GIA. Ms Quah Ley Hoon, Chief Executive of MPA, said, “Given the international nature of shipping, it is important for our students

to gain exposure to how global businesses operate. The GIA programme seeks to achieve that. Since its inception in 2013, the GIA programme has received strong support from reputable host companies. We are heartened that maritime companies continue to offer well-structured internships to local students despite the challenges that companies face amidst the COVID-19 pandemic.”

Representing one of the new participating companies of the MPA GIA, Mr Apostolos Boutos, General Manager of Thenamaris Singapore Pte Ltd, said, “Thenamaris is committed to the development of our people, and for years we have enabled undergraduate students to gain meaningful work experience through internships with our company.

Consistent with this commitment, it is with great pleasure that we support the 2021 MPA GIA, further investing in Singapore-based talent and recognising the strategic importance of the country to the maritime industry and the significant contribution of the MPA in introducing the fascinating, global world of shipping to talented young individuals who will help shape the future of our industry.”

Ms Sue Ann Gan, a shipping partner in the Singapore office of Norton Rose Fulbright, said, “We are proud to be the first law firm in Singapore to partner with the MPA on the GIA programme. This is an opportunity we value to introduce undergraduates to Singapore’s vibrant and diverse maritime industry. Through the MPA GIA programme, students also have the opportunity to deepen their professional, business and technical skills and we’re delighted to support this important initiative.”

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May 12th - 18th, 2021 Issue

Andhra Pradesh Govt Gives Nod for Gangavaram Port’s Change of Ownership Chennai

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Port Wings News Network he Andhra Pradesh Government has approved the proposal of APSEZ (Adani Ports and Special Economic Zone Ltd.) to transfer 162,855,000 (one sixty-two million eight hundred fifty-five thousand) shares of Windy Lakeside Investment Ltd. of 31.50% in Gangavaram Port Limited (GPL) in favour of APSEZ and also change of ownership, reports Business Line.

The State Cabinet chaired by Chief Minister YS Jagan Mohan Reddy approved the merger of GPL with APSEZ. Also, it accorded approval for the proposal of APSEZ for the acquisition of GoAP’s stake (10.40%) in GPL at Rs 120/share translating to consideration of Rs 645 crore.

These changes in terms of the concession agreement will lead to the closure of the share purchase contract that was signed during the concession agreement. After the change, GoAP may need to sign

another concession agreement with the new SPC as per terms of the original concession agreement for safeguarding the obligations of the original concession agreement.

The share of GoAP, once disinvested, will result in the State earning ?600-700 crore and GoAP having lesser control in Gangavaram port matters. Also, the dividends earned through the last 3-4 years (?83 crore earned in the last three years) ceases as GoAP divests.

Already Adani Ports has acquired a 90 per cent stake in the DVS Raju promoted GPL. According to the Government, the revenue share is expected to substantially increase due to more business. GPL, by handling 3235 million tonnes per annum, is paying revenue share of about Rs22 crore per Year. GPL is handling only 30-35 million tonnes per annum despite having the capacity to handle 50 million tonnes. The new entity operated by APSEZ is likely to increase the business to

40-45 million tonnes resulting in an expected revenue share of Rs30 crore per annum in short term and up to 100 million tonnes (expected revenue share of Rs70 crore per annum) in the medium term.

The State expects APSEZ as a leading port operator in the country is likely to substantially increase the traffic and business of Gangavaram port and invest in new businesses such as Container, Liquid and LNG terminals and create higher revenue share for GoAP and value.

This will lead to a substantial increase of EXIM activities through the state of AP, resulting in higher tax earnings, more employment, and revenue growth.

Besides, it is estimated that the LNG business can earn VAT for the state at 1 million tons of LNG import and earn VAT of Rs1,200 crore. Besides, an increase in port cargo traffic will also result in more skilled and unskilled employment to handle about 100 million tonnes tons per year.

First consignment of non-basmati rice exports from Paradip port, Odisha flagged off to Vietnam Chennai

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Port Wings News Network n a major boost to India’s rice exports potential especially from eastern region, a consignment has been officially flagged off today from the Paradip International Cargo Terminal (PICT), Odisha to Vietnam.

This is the first time in the history of Paradip Port, non-basmati rice will be exported. Sarala foods group will ship 20 containers of rice on Tuesday followed by around 500 containers over the next three months from PICT to Vietnam.

A consignment of one of the Agricultural and Processed Food Products Exports Development Authority (APEDA)’s member exporter M/s Sarala Food will be shipped to Hai Phong port, Vietnam.

“The rice exports through PICT would hugely boost India’s exports of non-basmati rice to south-east countries while boosting income of at least two lakh farmers from Odisha and adjoining states,” Dr. M Angamuthu, Chairman APEDA, said after inaugurating flagging off ceremony.

Mr. S.S. Nayyar, General Manager, Mrs Vinita Sudhanshu,

Deputy-General Manager, APEDA Mr. Vinod Agrawal, PromoterFounder of Sarala foods group, Mr. B.V. Krisha Rao, President TREA, Mr. Rajiv Kumar, ED, TREA, Rice Exporters, Senior officials including Capt Sudeep Banerjee, Vice President & Terminal Head, PICT, and officials from Directorate of Industries & Export Promotion, Port Officer, PQ official, representative of trade and labour attended the flag off ceremony.

During the April – February period of 2020-21, the shipment of Non-Basmati Rice witnessed an impressive spike. The non-basmati rice exports were Rs 30,277 crore (4086 US$ Million) during AprilFebruary, 2021 against Rs 13,030 crore (1835 US$ Million) reported during April-February, 2020 period.

The exports of Non-Basmati have witnessed a growth of 132 % in Rupee terms and 122 % Dollar terms.

Non-basmati rice exports to African and Asian countries are undertaken from various ports of India such as Kakinada, Vishakhapatnam, Chennai, Mundra and Krishnapatnam. Paradip will soon emerge as one of the major rice-exporting port of the country,

Angamuthu, Chairman, APEDA said.

The sharp spike in rice exports especially during a phase where globally the COVID19 pandemic has disrupted supply changes many commodities, has been attributed to the government taking prompt measures to ensure exports of rice while taking all the COVID19 related safety precautions.

“We took several measures in terms of ensuring safety and hygiene because of the operational and health challenges posed by COVID19, while ensuring that rice exports continue uninterrupted,” M Angamuthu, Chairman, APEDA has said.

APEDA has promoted rice exports through collaborations with various stakeholders in the value chains.

The government had set up the Rice Export Promotion Forum (REPF), under the aegis of the APEDA. REPF has representations from rice industry, exporters, officials from APEDA, ministry of commerce and directors of agriculture from major rice producing states including West Bengal, Uttar Pradesh, Punjab, Haryana, Telangana, Andhra Pradesh, Assam, Chhattisgarh and Odisha.

MANSA Lauds Mumbai Port’s Indira Container Terminal For Introducing Vessel Berthing Facility at Night Chennai Port Wings News Network aritime Association of Nationwide Shipping Agencies (MANSA) has lauded Mumbai Port and its Indira Container Terminal Pvt Ltd’s (ICTPL) initiative to introduce a vessel berthing facility at night at the offshore container terminal.

The first such vessel M.V.

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Precious Ace was berthed on April 30 at 2240 hours and sailed out on May 3 at 0018 hours local time. During the 36-hour operations, the Ro-Ro vessel managed to load 2105 vehicles and 378 packages with clear visibility.

The offshore Indira container terminal of Mumbai Port successfully discharged the operations smoothly with due

diligent coordination between agents, liners and OEMs to help speed up vessel movements and turnaround time.

The 200-metre overall length vessel with gross registered tonnage of 59,490 MT, was able to complete loading earlier than expected, as the introduction of the vessels berthing facility at night led to quick turnaround time and the vessel could sail out early.

New portal tracks COVID-19’s impact on trade and development Chennai

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Port Wings News Network NCTAD unveils a datarich portal to enhance policymakers’ understanding of the pandemic’s wide-ranging impact and help them design suitable recovery policies.

The global economy’s uneven recovery from COVID-19 continues and the unequal distribution of vaccines will affect countries’ abilities to recover from the crisis, UNCTAD warned in a new portal tracking the pandemic’s impact on trade and development.

The portal seeks to enhance policymakers’ understanding of the wide-ranging impact of the pandemic and help them design suitable recovery policies.

“As countries and the international community design recovery policies to help build resilient and more inclusive and sustainable economies, up-to-date analysis is critical,” UNCTAD Acting Secretary-General Isabelle Durant said. “Mistakes from past crises, such as the 2008 financial crisis, must be avoided.”

According to the portal, the global economy is recovering faster than initially expected. It’s projected to grow by close to 5% in 2021, a growth rate not seen in more than a decade. But the recovery is uneven.

Developed countries will experience a relatively more important rebound in GDP growth than developing ones, leading to worries about further expanding the gap between rich and poor nations.

Vaccine divide risks deepening inequality The growing gap between the number of COVID-19 shots given in developed and developing countries will likely deepen existing socioeconomic inequalities, UNCTAD warns.

According to the portal, vaccine doses administered per 100 people varies greatly across countries.

Africa is far behind, with only 0.6% of the continent’s population vaccinated, compared with 2.1% in Asia, 12.7% in Europe, 6.7% in South America and 18.8% in North America as of 31 March.

The pandemic has already pushed upwards extreme poverty estimates for 2020 and 2021. Estimates indicate that between 119 and 124

million people fell into extreme poverty in 2020, with an additional 143 to 163 million people expected to follow this year.

“These estimates are very worrying because it’s the first significant increase in global extreme poverty in the past two decades,” Ms. Durant said.

More than 25 indicators The portal provides an overview of the pandemic’s impact on trade and development, covering more than 25 indicators with a broad selection of data as of 31 March.

Much uncertainty remains and the data continues to change, hence UNCTAD urges policymakers to closely monitor the constantly evolving situation.

The portal is an update to UNCTAD’s report, “Impact of the COVID-19 pandemic on trade and development - Transitioning to a new normal,” issued in November last year.

It complements previous indicators with new data where relevant and available, notably on the rollout of COVID-19 vaccinations.

Easing Of India’s Cabotage Prompts Growth In Direct Loadings For Carriers Chennai Port Wings News Network CEAN carriers operating out of India appear upbeat about the steady increase in direct loadings that they believe reflects the positive impact of a national liberalised cabotage policy enacted nearly three years ago, reports IHS Media.

Following the landmark reform, foreign-flagged liners became free to transport laden export-import containers for transshipment and empty containers for repositioning between Indian ports without any specific permission or license, thus paving the way for elevated cargo aggregation opportunities.

In its latest filing to India’s Ministry of Shipping, the Container Shipping Lines Association of India (CSLA) - the local umbrella body of foreign shipping lines - said taking advantage of that liberalised window, member carriers were able to redirect an estimated 1.32 million TEU of containerised shipments to mainline ships calling at domestic gateway ports in 2020, up from 1.24 million TEU the prior year.

The group noted that the bulk of this regained volume, which it pegged at approximately 40 per cent, would have otherwise found its way through Sri Lanka’s Colombo port

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by using feeder options, followed

by Singapore (20 per cent) and Malaysia’s Port Klang (10 per cent), inevitably involving extra shipper costs and longer carrier transits.

Placing that significance in further context, the report found that roughly 1.07 million TEU out of the 1.32 million TEU represented laden cargo (about 81 per cent), with empty movements making up the remainder (19 per cent). “Cabotage relaxation has acted as a catalyst for the Indian ports to become hubs for transshipment of containers,” Sunil Vaswani, executive director of CSLA, said.

Mr Vaswani said with the cabotage law change, beneficial cargo owners (BCOs) - especially importers vexed by high inland logistics costs - secured the opportunity to enjoy more reliable and competitive coastal shipping offerings between the west and east coasts of India.

“It provided an incentive for India to be a transshipment hub so as to retain cargo, at least partially, that was otherwise lost to neighbouring foreign ports like Singapore and Colombo,” he said. Vaswani also noted that if the modified cabotage policy were to be lifted, Indian ports could lose about 1 million TEU of transshipment traffic that they have recaptured in the post-reform years.

May 12th - 18th, 2021 Issue

RBI, Government Should Announce Relief Measures for MSMEs: All India Association of Industries Mumbai

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Port Wings News Network ll India Association of Industries (AIAI) welcomes the RBI’s move to launch a Rs. 50,000 crore liquidity window for banks to lend to the healthcare sector. We feel that the move will improve flow of credit to hospitals, pharmaceutical and vaccine manufacturers, oxygen cylinder producers and other entities engaged in production, distribution and logistics of medical equipments.

If properly implemented by banks, this dedicated liquidity window can compensate for the gap in public healthcare spending in India. India’s public spending on healthcare currently stands at 1.2% of GDP, compared to the target of 2.5% set by the National Health Policy (2017).

By stepping up investment in healthcare sector, India can also reduce the trade deficit in the medical and scientific instruments, which grew from USD 2.2 billion in 2015-16 to USD 3.1 billion in 2019-20. Further, it can boost our exports of drug formulation and biologicals, where already India has a trade surplus of USD 13.6 billion (in 2019-20).

Commenting on this liquidity measure, Mr. Vijay Kalantri, President, All India Association of Industries and Chairman, MVIRDC World Trade Center, Mumbai, said, “In this hour of grave crisis, India’s Central Bank has ensured liquidity support at a low interest rate of 4% to the healthcare sector. In normal circumstances, if someone from

healthcare sector wants to raise debt, he will not be able to borrow funds at less than 9-10 percent interest rates as the risk free 10-year G-sec bond itself is at close to 6 percent.

Moreover, banks can classify these loans under priority sector lending category. Besides, the RBI is also rewarding lenders offering credit to healthcare sector by providing higher interest income on their

surplus reverse repo balance.”

Support to MSMEs At the same time, Mr Kalantri suggested the government and RBI to provide relief to ‘MSMEs engaged in hospitality, tourism, entertainment, wholesale and retail traders, who are severely affected by the second wave of the COVID crisis.

He said, “The RBI may announce blanket moratorium on MSME loans, instead of restructuring as it will provide temporary respite for small enterprises, who are suffering from loss of sales, rising raw material prices.”

Mr Kalantri also suggested reduction in lending rate for MSMEs. He said, “Even though the RBI’s repo rate is 4%, the base rate of banks stands at 8.8% and the rate

charged on MSME loans is more than 10%. We need to bring down the cost of credit for MSMEs to reduce their financial burden.”

Mr. Kalantri suggested the government for effective implementation of the Emergency Credit Guarantee Line Scheme for MSMEs, which was announced last year. It is learnt that some banks are forcing MSME borrowers to use the new loans given under the Emergency credit guarantee scheme to repay their old loans. Thus, small borrowers are not able to deploy the fresh liquidity availed through the emergency credit guarantee scheme for sustaining their business operations.

Further, RBI should ensure that the liquidity it has infused under its earlier TLTRO window is flowing to small microfinance institutions. It is alleged that only large NBFC MFIs are able to benefit from this TLTRO, which was announced last year.

It is welcome that RBI has set up a Rs. 10,000 crore liquidity window for small finance banks to borrow at the repo window (at 4%) for onlending to microfinance institutions.

However, we need to remember that small finance banks can borrow from RBI only against government securities. Therefore, only those small finance banks that have excess government securities will be able to borrow from the RBI (under the newly announced TLTRO) and lend them to MFIs. To that extent, we expect the impact of this liquidity infusion to be limited.

Adani Ports Could Abandon Myanmar Project If Found To Violate U.S. Sanctions Chennai

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Port Wings News Network dani Ports and Special Economic Zone Ltd (APSE. NS) said on Tuesday it could abandon a Myanmar container terminal project and write down the investment if it is found to be in violation of sanctions imposed by the United States, reports Reuters.

enforces economic and trade sanctions based on the country’s foreign policy.

A military coup in Myanmar on Feb. 1 and an ensuing crackdown on mass protests in which hundreds have been killed has drawn international condemnation and sanctions on military figures and military-controlled entities.

File photo

“In a scenario wherein Myanmar is classified as a sanctioned country under the Office of Foreign Assets Control (OFAC), or if OFAC opines that the project violates the current sanctions, (Adani Ports) plans to abandon the project and write down the investments,” the company said in a filing to exchanges.

OFAC, part of the U.S. Treasury Department, administers and

Adani Ports last year won a bid to build and operate Yangon International Terminal, which it has said is an independent project fully owned and developed by the company.

A March report released by two rights groups cited documents purporting to show that an Adani unit will pay up to $30 million in

land lease fees for the project to the Myanmar Economic Corporation (MEC), one of two militarycontrolled conglomerates under U.S. sanctions.

Adani did not comment on the lease payments detailed in the report at the time. read more “Adani Ports has a zerotolerance policy on sanctions and will ensure that there is no contravention of the U.S. and other sanctions,” it said on Tuesday, adding it had engaged U.S.-based law firm Morrison Foerster to ensure compliance.

It said it had invested $127 million, including a $90 million upfront payment for leasing land, and employs about 300-350 people at the site directly and through subcontracts.

A write-down would not have a material impact as the project accounts for only about 1.3% of the company’s total assets, it said.

The Australian Centre for International Justice, one of the report’s authors, said Adani should be held accountable for the decision to initially proceed with the deal.

“Sanctions shouldn’t be the standard for a company to assess its own human rights responsibilities,” said Rawan Arraf, ACIJ’s executive director.

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India Begins Exports Of Organic Millets Grown In Himalayas To Denmark New Delhi Port Wings News Network n a major boost to organic products exports from the country, first consignment of millets grown in Himalayas from snow-melt water of Ganges in Dev Bhoomi (Land of the God), Uttarakhand would be exported to Denmark.

APEDA, in collaboration with Uttarakhand Agriculture Produce Marketing Board (UKAPMB) & Just Organik, an exporter, has sourced & processed ragi (finger millet), and jhingora(barnyard millet) from farmers in Uttarakhand for exports, which meets the organic certification standards of the European Union.

UKAPMB procured millets directly from these farmers which have been processed in the state-ofart processing unit built by mandi board and operated by Just Organik.

“Millets are unique agricultural products from India which have significant demand in the global market. We will continue to carry out export promotion for the millets with a special focus on products sourced from Himalayas,” said

by Dr M Angamuthu, Chairman, APEDA. He stated that Indian organic products, nutraceuticals and health food are gaining more demand in overseas market In Uttarakhand, many of the common varieties of millets are the staple foods in the hills. The Uttarakhand government has been supporting organic farming.

UKAPMB, through a unique initiative has been supporting thousands of farmers for organic certification. These farmers produce mainly millets such as ragi, barnyard millet, amaranthus etc.

The exports of millets to Denmark would expand exports opportunities in European countries. The exports would also support thousands of farmers that are getting into organic farming. Millets are gaining a lot of popularity globally because of high nutritive values and being gluten free also.

Meanwhile, India’s export of organic food products rose by more than 51% to Rs 7078 crore ($ 1040

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million) during April-February (202021) compared to the same period in the previous fiscal (2019-20).

In terms of quantity, the exports of organic food products grew by 39% to 888,179 metric tonne (MT) during April-February (2020-21) compared to 638,998 MT shipped in April- February (2020-21). The growth in organic products have been achieved despite logistical and operational challenges posed by the COVID19 pandemic.

Oil cake meal is a major commodity of the organic product exports from the country followed by oil seeds, fruit pulps and purees, cereals & millets, spices, tea, medicinal plant products, dry fruits, sugar, pulses, coffee, essential oil etc. India’s organic products have been exported to 58 countries including USA, European Union, Canada, Great Britain, Australia, Switzerland, Israel and South Korea.

At present, organic products are exported provided they are produced, processed, packed and labelled as per the requirements of the National Programme for Organic Production (NPOP). The NPOP has been implemented by APEDA since its inception in 2001 as notified under the Foreign Trade (Development and Regulations) Act, 1992.

The NPOP certification has been recognized by the European Union and Switzerland which enables India to export unprocessed plant products to these countries without the requirement of additional certification. NPOP also facilitates export of Indian organic products to the United Kingdom even in the post Brexit phase.

In order to facilitate the trade between major importing countries, negotiations are underway with Taiwan, Korea, Japan, Australia, UAE, New Zealand for achieving Mutual Recognition Agreements for exports of organic products from India.

NPOP has also been recognized by the Food Safety Standard Authority of India (FSSAI) for trade of organic products in the domestic market. Organic products covered under the bilateral agreement with NPOP need not to be recertified for import in India.

FIEO Welcomes RBI’s Decision To Extend Easy Credit, Expanding Health Infrastructure and Boosting Economy framework 2.0 for Covid related New Delhi stressed assets of individuals, small Port Wings News Network r Sharad Kumar Saraf, businesses and MSMEs, which will not only instill a President, sense of security F I E O and ease liquidity reacting to the concerns but will measures announced help in boosting by the Reserve Bank the confidence of India, due to the of businesses and entrepreneurs ongoing second across the country. wave of the Covid-19 Welcoming today’s RBI’s pandemic, including Mr Sharad Kumar Saraf FIEO President decision, FIEO President said that term liquidity facility of ₹50,000 crore to ease access extending easy credit will help in to emergency health services, expanding the health infrastructure special long-term repo operations in the country, which is in distress increasing Coronavirus (SLTRO) for small finance banks due infection.

The Federation together (SFBs), lending by small finance stands with the government in all banks (SFBs) to MFIs for onlending to be classified as priority its efforts to control the surge in sector lending, credit to MSME Covid-19 pandemic and support the entrepreneurs and resolution economic growth of the country.

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May 12th - 18th, 2021 Issue

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Sea Trial Completed for Hospital Ship Global Mercy

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Port Wings News Network tena RoRo is leading the project for the construction of the Global Mercy™, the world’s largest civilian hospital ship.

After several years of construction at the Tianjin Xingang shipyard in northern China, the final test, the official sea trial, has now been completed with good results. The shipyard will present the ship for delivery this summer and the vessel will then sail to Antwerp in Belgium on its maiden voyage, where some members of the crew will board and the medical equipment supplemented. This will be followed by a visit to Rotterdam, and after this the Global Mercy™ will be ready for its first important mission in West Africa.

Stena RoRo is building the Global Mercy on behalf of the international charity organization Mercy Ships, which provides free life-changing healthcare to people in some of the world’s poorest countries. The project began in 2013 and Stena RoRo is responsible for design, contracting and execution. The construction project is unique in its kind and places major and specific demands on both design and layout, dependent on the special needs that h o s p i t a l operations entail. On board are operating theatres and hospital wards, and everything needed for both patients and those working on board, including schools and preschools for the children of the volunteers.

SEA TRIAL The sea trial, which the Global Mercy has just completed, means that the ship’s systems and functions – such as engine performance and fuel consumption, navigation and radio equipment, maneuverability and safety systems – are tested for several days at sea.

“The purpose of a sea trial is to ensure that the ship’s systems are working properly during operation and that the requirements of the specifications and applicable standards are met,” says Per Westling, CEO Stena RoRo. “The hospital services to be provided on the Global Mercy entail increased requirements for good ventilation and minimization of vibrations, for example. This was also checked and she was approved on all counts.”

GLOBAL PROJECT UNDER SWEDISH MANAGEMENT The Global Mercy is the result of a global collaborative project with the participation of a number of subcontractors from around the world. Swedish Stena RoRo is leading the project and Finnish Deltamarin is conducting work with design. A French shipbroker, Barry Rogliano Salles, (BRS Group), assisted in preparing the contract and the ship is being built at the Tianjin Xingang shipyard in northern China. The vessel, that is classified by the Lloyd’s Register in the United Kingdom, will sail under the Maltese flag and operate along the coast of Africa.

Stena RoRo has based the project on a concept for passenger and cargo ships for international travel in the RoPax class.

The concept has been modified to a purely passenger ship design with hospital activities.

The Global Mercy will have six operating theatres, 200 hospital beds, a laboratory, a patient clinic and an eye and dental clinic. In total, she will be able to accommodate 950 people, of which 641 are crew.

“For a few years now, our team has consisted of up to 16 members, stationed at the Tianjin Xingang shipyard,” says project leader and site manager Rikard Olsson, who has been in China with his family almost continuously since 2016. “The team has mixed nationalities and part of the job has been to reconcile the different cultures. An important task has been to ensure that the ship is built according to the specifications. For this shipyard, this is the first time this kind of ship, which can be compared to a cruise ship, has been built.

We have worked hard to meet the required

standard and everything has gone very well.

We are very pleased with the collaboration with the shipyard.”

In addition to providing free medical and dental care, Mercy Ships contributes to building up local healthcare infrastructure by training local healthcare staff. This is why the Global Mercy is equipped with first-class training facilities, including equipment for virtual reality training and other simulations of care and methods for use in environments with limited resources.

“The Global Mercy is a special project that we are proud to be a part of. Mercy Ships is doing a fantastic job and with the new ship, their capacity to provide free medical care to many extremely vulnerable people will be more than twice as large,” says Per Westling, who in 2017 visited the sister ship Africa Mercy when it was based in Madagascar.

This summer the Global Mercy will be delivered from the shipyard. The maiden voyage will be to Antwerp in Belgium where some members of the crew will board and the last medical equipment installed, which will take a few months. After that, there will be two weeks in Rotterdam in the Netherlands, where festivities will be held in presenting the ship to sponsors, potential volunteers and other interested parties.

BIG DIFFERENCE FOR MANY PEOPLE The first mission will be during 2022, when the Global Mercy is expected to call at Dakar in Senegal. There will then be more than six hundred volunteers aboard from all over the world and from a variety of professional categories, who will make it all possible through their contributions of skills and time.

More than 93 percent of the population in sub-Saharan Africa do not have access to safe surgical care *. The already very fragile medical care systems are at risk of being further degraded by the corona pandemic, and the need for basic but vital care is greater than ever in many poor countries. The Global Mercy will make a big difference for many people in southern and western Africa.

About the Global Mercy: Length: 174 meters Breadth: 28.6 meters Draught: 6.15 meters Gross weight: 37,000 tonnes Deadweight: 4,500 tonnes Total area: 30,000 square meters Since 1977, Stena RoRo has led the development of new marine RoRo, cargo and passenger concepts. We specialize in custombuilt vessels, as well as standardized RoRo and RoPax vessels. The company leases about fifteen vessels to operators worldwide, both to other Stena companies and third parties. Stena RoRo specializes above all in applying its technical expertise to the design and production of new ships and the conversion of existing ships for delivering tailored transport solutions to its customers. We call this “Stenability”.

Since 2013, we have been responsible for the design and completion of Mercy Ships’ new hospital vessel the Global Mercy – the world’s largest civilian hospital ship.

About Mercy Ships Through its hospital vessels, Mercy Ships provides free high-quality healthcare, building up healthcare capacity and providing sustainable development to those with the least resources. Mercy Ships was founded by Don and Deyon Stephens in 1978 and has since operated in more than 55 developing countries, contributing care and development worth more than SEK 17 billion and treating more than 2.8 million people. Ships’ crews consist of approximately 1,200 volunteers each year from more than 60 countries. They are surgeons, dentists, nurses, nursing educators, teachers, chefs, sailors, engineers and agricultural experts who volunteer their time and skills. With offices in 16 countries and an African center, Mercy Ships strives to make a difference for individuals and to assist nations.

Ministry of Transport of Ethiopia, DP World Sign Mou For The Development Of The Ethiopian Side Of The Berbera Corridor

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Port Wings News Network P WORLD, a leading global provider of end to end logistics solutions, and the Ministry of Transport, have signed a Memorandum of Understanding (MoU) with the aim of developing the Ethiopian side of the road linking Ethiopia to Berbera into one of the major trade and logistics corridors of the Country’s international trade routes.

The MoU, which was signed in Addis Ababa today by Her Excellency, Dagmawit Moges, Ethiopia’s Minister of Transport, and Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, follows a decision by the two parties to explore the potentials for developing logistics infrastructure and the provision of end to end logistics services along the corridor to unlock major economic benefits for Ethiopia.

In terms of the MoU, it is proposed that the Parties would establish a joint venture logistics company to perform logistic operations from origin to destination. It is intended that for export, DP World will offer services from origin in Ethiopia up to Berbera Port, while for imports, it will offer from the port of loading to the delivery of shipments in one of the dry ports in the hinterlands or the final destination of the consignees.

DP World and its partners envisage investing up to US$1bn over the next ten years in developing the supply chain infrastructure along the corridor. This will include dry ports, silos, warehouses, container yards, cool and cold chain depots, freight forwarding and clearing activities. The infrastructure investment will be in parallel with the implementation of the latest IT infrastructure and technology to ensure the efficient functioning of the corridor, and smooth, secure and transparent transfer of cargo throughout the entire transportation journey.

The MoU also envisages that the Ministry of Transport will see to it that a review and resolution of regulatory obstacles facing the Ethiopian side of the Berbera Corridor are exercised with a view to ensuring competitive arrangements for logistics companies so that they could be able to use the Corridor on a common user basis.

Speaking at the signing, H.E. Dagmawit

Moges, Ethiopia’s Minister of Transport, said: “As we kick off the journey towards prosperity, aiming at unlocking Ethiopia’s development potentials designed to propel the country into becoming an African beacon of prosperity, the transformation of the logistics industry is expected to play the leading catalytic role. Ethiopia aims to diversify its port access facilities and services to improve its trade corridor access routes; utilizing the Berbera corridor will surely have a potential to make Ethiopia a front runner in logistics operations, boosting the competitive advantage of delivering our products to the world market. The development of this Corridor will not only meet with the growing demand of Ethiopian’s international trade, but it would also enhance our Nation’s capacity in utilizing our existing major corridor both in terms of volume of trade and efficiency.”

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “As a leading global provider of trade and logistics solutions, we strongly believe that developing the Berbera Corridor into one of the major trade and logistics corridors will unlock huge economic benefits for Ethiopia, and support its ambitious development plans.

It will create new jobs, attract new businesses and investment along the corridor, as well as diversify and strengthen the country’s access to international trade by having a direct, seamless and efficient link between Ethiopia and Berbera Port.”

The road infrastructure that will connect Berbera Port to Wajaale at the border with Ethiopia, funded by the Abu Dhabi Fund for Development and the UK’s Department for International Development, is expected to be completed by the end of 2021. The road will link to the existing modern highway on the Ethiopian side and will further position Berbera as one of the key trade gateways in the region and will be one of the fastest and most efficient routes for Ethiopian transit cargo.

DP World has committed to investing up to US$442 million to develop and expand Berbera port, with the first phase nearly completed. Further work is already underway on expansion of the quay to 1000 metres which will increase capacity to two million TEUs, operated by 10 key cranes.

DP WORLD Expands European Inland Network Through Swissterminal

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Port Wings News Network P World has significantly expanded its European inland network, adding three key ports in the Alsace region through its affiliate company, Swissterminal.

Earlier this month, the public authority Syndicat Mixte des Ports du Sud Alsace (SMO) awarded the concession contract of the Ports of Mulhouse-Rhin to the public-private company composed of the SMO, the Caisse des Dépôts et Consignations and Alsaceteam (joint venture of Swissterminal and the two French seaports Grand Port Maritime de Marseille and Haropa Port du Havre).

The operation of the three French inland ports is granted through a subdelegation contract to Alsaceterminal, a wholly owned subsidiary of Swissterminal, which will take over Ottmarsheim, Huningue-Village-Neuf and Ile Napoléon ports in the course of 2021.

DP World believes this is a hugely positive announcement for the firm and its customers as it allows expansion of its already vast network across Europe, thereby offering greater geographic range, more transport solutions, and an increased number of connections.

More specifically the move will improve transport connections in the border triangle region between France, Switzerland and Germany, which holds such economic importance for numerous industries such

as chemicals, metals, food processing, and construction.

The strategic location of the ports is also expected to grow in significance in the near future. New rail connections due to be implemented will link them to the two main French seaports of Le Havre and MarseilleFos, while inland shipping to the largest North Range ports of Rotterdam (Netherlands) and Antwerp (Belgium) will be strengthened.

Rob Harrison- Vice President Inland & Logistics - Europe & Russia at DP World, said: “This is an incredibly exciting announcement for everyone involved, but also for trade in the region, as we as a sector continue to strive to introduce more products, improve efficiency and reliability, while of course reducing our carbon footprint and that of our customers through more sustainable inland transport methods, such as barge and rail.

“Swissterminal and its partners have committed to improving transport connections within Europe across the supply chain, especially within the border triangle region, and DP World will support those commitments where it can, while also offering the benefits of its wider European and global network, resource and facilities.

“We would like to congratulate our colleagues at Swissterminal and our new partners in the region. We look forward to working with them as the potential of these ports becomes a reality.”

May 12th - 18th, 2021 Issue

Indian Railways Inducts 100th 12000 HP WAG 12 B Locomotive New Delhi Port Wings News Network t is a proud moment for Indian Railways as 100th 12000 HP WAG 12 B has been inducted in Indian Railways fleet. The loco is named WAG 12 B with number 60100. The locomotive is manufactured by Madhepura Electric Locomotive Pvt. Ltd. (MELPL).

These locomotives are state of the art IGBT based, 3 phase drive and 12000 horse power electric locomotive. These high horse power locomotives will help to decongest the saturated tracks by improving average speed and loading capacity of freight trains.

This locomotive is capable of maximum tractive effort of 706 kN, which is capable of starting and running a 6000 T train in the gradient of 1 in 150. The locomotive with twin Bo-Bo design having 22.5 T (Tonnes) axle load is upgradable to 25 Tonnes with design speed of 120 kmph.

These superior electric locomotives built under the ‘Make-

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in-India’ initiative, are playing a key role in revolutionizing the freight movement in the country. It

will help to decongest the saturated tracks by allowing faster, safer and heavier freight trains to move across the country, as well as improve the loading capacity. So far, these e-Locos have traversed across all Railway divisions and are

performing well. We look forward to more such delivery milestones.”

These locomotive are proving to be a game changer for further movement of coal trains for Dedicated Freight Corridor.

The locomotives can be tracked through GPS for its strategic use through embedded software and Antennae being lifted through the servers on ground through microwave link.

These WAG 12B e-Locos have already clocked over 4.8 million kilometres hauling a wide range of commodities across 17 States & 2 Union Territories.

It may be noted that Indian Railways has entered into Procurement cum Maintenance Agreement with Madhepura Electric Locomotive Pvt. Ltd. (MELPL) First 12000 HP Made in India Locomotive, manufactured by Madhepura Electric Loco Factory situated in Bihar, was put into operation by Indian Railways from Pt Deen Dayal Upadhyaya Jn Station on 18.05.2020.

“Need to adopt modern concepts of tunneling in India to reduce capital cost, without compromising with safety,” Urges Gadkari New Delhi Port Wings News Network nion Minister for Road Transport & Highways and Micro, Small & Medium Enterprises, Shri Nitin Gadkari said that there is need to adopt modern concepts of tunneling in India so that the big capital cost involved can be reduced. The Minister said that by developing smart cities, roadway amenities and other facilities near tunnels, revenue generation can be increased.

Addressing an International Webinar on Road Tunnel Recent

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Trends, Innovations & Way Forward through video conferencing today, Shri Gadkari highlighted the need to look at ways to create ‘tunnels and immersed tunnels under the rivers and sea using pre-cast technology’.

Shri Gadkari urged the stakeholders to come out with cost-effective and modern technologies for tunneling to reduce capital expenditure without compromising on safety aspects. The Minister said that National Highways in India have 1.37 lakh kilometers of length which carries over 40% of the total traffic across the length and breadth of the

country. The Minister emphasized on adoption of good practices from across the globe.

Speaking at the webinar, Minister of State for Road Transport & Highways, General (Retd.) Dr. V. K. Singh said that the Ministry is ensuring making more and more tunnels to reach out to the places that are inaccessible and get cut off due to inclement weather and during winters.

The webinar was hosted by Indian Roads Congress, Ministry for Road Transport & Highways and World Road Organization.

IMO Meeting Focuses on Containers Lost at Sea Chennai

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Port Wings News Network ontainers lost at sea will be high on the agenda of the IMO’s Maritime Safety Committee (MSC) meeting, according to Bimco.

The focus on containers lost at sea comes after a spike in lost container events, with reports of up to 3,500 containers lost in four incidents in the Pacific Ocean since December 2020, compared to a global average number of around 1,400 containers lost at sea per year.

Bimco said that contributing factors to those incidents could include differences between declared and actual container weights, and parametric

rolling. “However, it appears that no single factor caused the incidents, but rather that several factors may have contributed. The incident investigation reports have yet to be finalised, setting out the detailed root causes,” it added.

Containers floating in the water

pose a threating to vessels and lost containers in any location are a threat to the environment.

“During MSC 103, the IMO will

consider measures regarding the detection and mandatory reporting of containers lost at sea that may enhance the positioning, tracking and recovery of such containers,” Bimco said.

The association stressed the importance of preventing the loss of containers as well as reporting lost containers.

“To restore fidelity in the safety of container transport with the present fleet and provide the technical understanding that is needed for safe operation, other areas of interest, like weather routing, the ship’s design and its propulsion, as well as the lashing of the containers should be considered too,” said Bimco.

IMO MSC 103 runs from May 5 - 14, Bimco said it will release an update after the meeting.

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NEWS - BITS Puget LNG, GAC Bunker Fuels Join Forces To Supply LNG Marine Fuel By Barge From The Port Of Tacoma

Puget LNG, LLC (‘Puget LNG’) and GAC Bunker Fuels Limited (‘GAC Bunker Fuels’) have signed a Memorandum of Understanding to cooperate in the supply and sale of clean-burning LNG marine fuel from Puget LNG’s terminal to GAC’s customers in the Pacific Northwest, GAC said in a press release.

When the Tacoma LNG Terminal becomes operational in the second quarter of 2021, it will be the first such terminal on North America’s west coast providing direct shoreside loading access for a bunker barge.

A DNV GL study commissioned by Puget LNG on the feasibility of a bunker barge to supply LNG as fuel to ships in the Puget Sound area concluded that the availability and cost of natural gas, especially in North America, has made the use of LNG an attractive solution for ship operators to comply with air emissions regulations. A growing orderbook for LNGfueled vessels has underlined the need to develop LNG supply infrastructure in all major shipping ports and regions, including the Pacific Northwest.

“Partnering with GAC Bunker Fuels is another way Puget LNG is working to create a clean energy future for all as its sister company, Puget Sound Energy, has set an aspirational goal to be a Beyond Net Zero Carbon company by 2045,” said Blake Littauer Puget LNG Director.

“PSE is targeting to reduce its own carbon emissions to net zero and go beyond by helping other sectors enable carbon reduction across the state.”

Supply Chain Resilience Solution: First Supply-R Pilot Project Completed With Shell Bureau Veritas and Shell announce the successful completion of their Supply-R pilot project, conducted during the first quarter of 2021.

Developed and launched by Bureau Veritas in 2020, Supply-R is a digital platform and supply chain risk management solution designed to support business continuity and assess resilience along the supply chain. The pilot phase will help deploy the solution step by step. It will enable Bureau Veritas to customize the solution and develop the most ergonomic dashboards, which will be efficient both for operational teams and executive management.

“Today, companies want to consider the full picture of predictable risks related to their supply chains, taking into account the fact that external factors can create disruption. They need to build and implement new processes that can fix past problems and position their organizations to operate smoothly in the future. With Supply-R, we are offering a customizable modular structure that addresses critical elements for a resilient supply chain, such as business continuity, technical capabilities, HSE, data integrity & information security and logistic & inventory practices” says Bruno Ferreyra, Oil & Gas Global Service Line Leader at Bureau Veritas. “We are very happy to have completed our very first pilot project with Shell with a constructive and collaborative approach that has confirmed the potential of our solution.”

Uni-Tankers invests heavily in intelligent engine management

Ten months of test sailing using Frugal Propulsion on the tanker Endelo Swan shows a fuel saving of 12.2%, which is now driving Uni-Tankers to install the system on more ships in the fleet.

Uni-Tankers is continuously working to make its oil- and chemical tankers more efficient. That is why the Danish shipping company now choose to invest in Frugal Propulsion, a system which provides unprecedented opportunities for optimising fuel consumption on enginedriven ships. Frugal Propulsion, which is developed by the Danish start-up Frugal Technologies, was installed on the Chemical/Oil Products Tanker Endelo Swan during docking in June 2020. The result is a fuel saving of 12.2%, and Uni-Tankers has therefore decided to install the system on three more ships during 2021.

CUSTOMS EXCHANGE RATES Notification No.46/2021 (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 Apr. 2021

RATE (INR) Import Export 58.35 202.35 61.30 11.60 12.15 90.25 9.70 253.30 54.55 9.00 104.45 20.95 20.35 56.20 5.30 8.85 82.45 9.15 20.75 74.75 68.85 6.80

55.95 189.95 59.10 11.25 11.70 87.10 9.35 237.30 52.20 8.70 100.95 19.65 19.10 54.35 4.95 8.55 79.20 8.60 19.50 73.05 66.30 6.35

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

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RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2021-2023 Posted at Pathrika Channel, Egmore, RMS, Chennai-8.

Date of Publication - Wednesday, Posted on Wednesday (12.05.2021)

May 12th - 18th, 2021 Issue

Air Cargo Volumes Bounce Back in April as Air Cargo System Remains Under ‘Significant Strain’ New Delhi Port Wings News Network lobal air cargo demand bounced back into growth in April after a -3% dip in March, with high load factors keeping the international airfreight system under significant strain as the traditional surge in summer capacity has so far failed to materialise for a second consecutive year, say industry analysts CLIVE Data Services and TAC Index.

CLIVE’s first-to-market weekly and monthly air cargo market data shows volumes in April up 1% over April 2019 and +78% compared to the same month of 2020, continuing the positive trend seen in the opening two months of this year.

The second half of April 2021 showed particularly strong yearover-year growth, up 6%.

To provide a meaningful perspective of the air cargo industry’s performance, CLIVE Data Services is continuing to focus on comparing the current state of the market to pre-Covid 2019 volume, cargo capacity and load factor data until at least Q3 of this year. This is being produced alongside the 2020 comparison.

Despite the similar volumes as in April 2019, the pressure on available airline cargo capacity is much higher. Overall capacity was down 18% versus 2019 as the increase in belly capacity seen then and in previous years, as airlines increased from winter to summer schedules, remained grounded due to continuing Covid restrictions on

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international passenger movements.

Consequently, CLIVE’s ‘dynamic loadfactor’ for April of 71% based on the volume and weight perspectives of cargo flown and capacity available – was 10% pts higher than in 2019 and 4% pts

above the level of a year ago.

“The air cargo market shifted gear again in April. The monthover-month change from -3% to +1% is quite a jump, but a dynamic loadfactor of 71% represents a tremendous strain on the air cargo system. This lack of bandwidth capacity-wise is being exacerbated by the fact there is no summer schedule based on passenger demand, which is contributing to the high rates being reported in the market,” said Niall van de Wouw, Managing Director of CLIVE Data Services. He added: “Airlines operating ‘preighter’ services need these rates in order to operate cargoonly operations because the margins on these services are very thin.”

China to Europe volumes were 18% higher in April 2021 than in 2019, with load factors ex China at 95% or ‘completely full’, he said.

Despite a 10% drop in volumes from Europe to North America compared to 2019, CLIVE’s latest data also shows the fall in capacity of around 40% on this lane, resulting in a dynamic loadfactor at 87%, 21% pts higher than in 2019. The decline in North America to Europe volumes is less pronounced at -4% versus 2019, producing a load factor of 69% or 19% points higher than in 2019.

TAC Index data for April shows the impact of the volume vs. capacity conundrum on airfreight rates.

TAC Index says the differences by market can be seen in the performance of the China and Hong Kong markets, which continued to lead the way in terms of price strength, whilst the US and Europe saw a more volatile and mixed picture in April: • CN/HK – US: April ended on the highest rate this year of USD8.56 or +60% vs. March, with continuous week-on-week increases since Feb 22nd. Prices are up 8% versus last year and 153% higher versus 2019.

HKG-US is exceptionally strong with the highest rate of the year at USD8.65 compared to USD4.91 on March 1st and is approaching the highest level seen last year of $8.81 in May as market capacity tightens.

The April price is up 29% on the same period last year and +153% over 2019.

• CN/HK – EUR: The latest USD rate of $4.89 is approaching the 2021 high of $4.96 after week-onweek improvements since Feb 22nd

but is down 31% on 2020 levels (+92% versus 2019).

• US – EUR: The USD rate finished the month at $1.74, a good week-on-week improvement after 4 weeks of decline from this year’s high of $2.13 on March 22nd.

• EUR – US: This market continues to be volatile with big variances on a slightly slowing downward trend since the beginning of the year. LHR saw a positive performance in April versus March whilst FRA was negative.

“In summary, the airfreight market continues to be strong, particularly CN/HK to US, and may continue, at least in the short term, with demand strengthening as countries relax lockdowns and subdued passenger travel continues to impact capacity. With the easing of Hong Kong quarantine rules for crew, Cathay Pacific, for example, are looking to restore their full market presence as soon as possible, which may dampen pricing,” Gareth Sinclair said.

BIMCO, ICS, INTERCARGO and INTERTANKO Launch New Fuel Oil Survey Chennai

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Port Wings News Network he International Maritime Organisation’s 2020 global sulphur limit for marine fuel oil has been in force for more than a year.

BIMCO, The International Chamber of Shipping (ICS), INTERCARGO and INTERTANKO are calling on Fleet Managers, Vessel Managers, Technical Superintendents, Masters and Chief Engineers to share their insight and experiences with marine fuels in a new survey aimed at identifying potential quality and quantity issues.

Following on from the industry survey conducted in the first quarter of 2020 that showed the switch to low-sulphur fuel has not been without problems, the four organisations are launching a new survey, this time with the aim to get

an even greater understanding of issues encountered by the industry, particularly issues related to the bunkering and use of marine fuel oil.

This Survey will run for a year until 1 May 2022 and the information gathered will help identify specific areas in the fuel supply and management chain that need improvement.

The survey comprises of two different sections, that can be submitted separately: • Section 1 contains questions related to fuel oil quality and are aimed only at ships using compliant fuel oil i.e., VLSFO and ULSFO. • Section 2 contains questions related to fuel oil quantity and are for ships using both compliant fuel oil and HSFO with a sulphur content exceeding 0.50% m/m in combination with scrubbers.

Continued Growth, High Profit, Additional Share Buy Backs From A.P. Moller - Maersk in Q1 2021

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Chennai

Port Wings News Network .P. Moller - Maersk had an exceptionally strong start to the year, with strong earnings and growth momentum across all our businesses in ocean, port services and logistics. The company benefitted from strong demand in a market still influenced by the pandemic and significant disruptions in global supply chains.

Strong demand coupled with significant operational challenges such as bottlenecks, lack of capacity and equipment shortage in global supply chains drove freight rates up significantly. At the same time, customers’ demand for truly integrated supply chains and simple, self-service solutions has never been more evident and this provides momentum, especially for logistics and digital solutions.

“A.P. Moller - Maersk delivered an exceptionally strong performance in Q1 2021 with record profit for the quarter. The high growth and profitability were driven by solid demand across Ocean, Logistics and Terminals. Strong demand led to bottlenecks and a lack of capacity and equipment, which drove up freight rates to record-high levels,” says Søren Skou, CEO of A.P. Moller Maersk, before adding: “We remain focused on the long-term transformation of A.P. Moller - Maersk, prioritising customers’ demand for integrated logistics. Our integrator strategy was validated by strong customer support during Q1. As we change the conversations with customers from being short-term transactional to becoming long-term value-based, we lay the foundation for further, stable growth.”

Overall in Q1, EBITDA increased to USD 4bn from USD 1.5bn year on year and EBIT to USD 3.1bn from USD 552m compared to same

quarter last year, while revenue improved by 30 pct. to USD 12.4bn. The results reflect the high volumes, which are up 5.7 pct., significant increases in freight rates of 35 pct. and lower bunker fuel prices, leading to an EBITDA in Ocean of USD 3.4bn compared to USD 1.2bn in Q1 2020, and an increase in revenue to USD 9.5bn from USD 7.2bn.

Logistics & Services continued with strong growth momentum and revenue increase of 42 pct. in Q1 to USD 2bn, mainly driven by organic growth, but also with growth from the acquisitions of Performance Team and KGH Customs Services. EBITDA increased by 201 pct. to USD 205m compared to USD 68m, and EBIT increased to USD 139m compared to USD 29m same quarter last year, partly driven by margin expansion.

Also, Gateway Terminals had a strong Q1 performance, with revenue increasing by 24 pct. to USD 915m from USD 740m led by higher volumes and storage income, while EBITDA increased by 52 pct. to USD 323m from USD 213m. The results came in a persistently difficult environment where countries are still contending with the effects of the pandemic.

“We have continued to dedicate significant efforts to the safety of our employees and contribute to the societies we operate in, this quarter with a particular emphasis on India,” says Søren Skou and continues: “Overall, we can be very satisfied with how the business performed this quarter. High profitability led to a ROIC of 15.7 pct., and our strong free cash flow gives us the opportunity to invest further in the transformation of the business, while accelerating the remaining part of the ongoing share buy-back programme and subsequently launch a new, additional share buy-back programme of approx. USD 5bn over the coming two years.

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.