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

Wednesday, September 9, 2020

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Shipping Lines Learn To Make Money

By Balancing Supply And Demand discipline they’d long talked about but had never undertaken.

Container shipping has been marred by chronic excess capacity, and carriers have responded by undercutting each other in endless battles for market share at the expense of profit margins. Freight

Chennai

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Port Wings News Network hen countries began locking down their economies early this year in the face of the spreading coronavirus pandemic, the world’s container lines braced for a steep decline in shipping demand.

Analysts warned that massive financial losses would soon follow at seagoing companies that carry the lion’s share of global trade, according to The Wall Street Journal report. Trade flows have in fact fallen, but the red ink for shipping lines never came.

Instead, profitability across the business is growing and some operators are reporting their best earnings in years.

Shipping lines continually slashed prices in years past to compete in declining markets.

Under the health crisis that has rocked the global economy, however, carrier executives have reined back capacity in a display of

File Photo

rates have often gone into tailspins that left revenues barely covering operational costs.

As demand collapsed from the city lockdowns in March and April, however, liner companies started canceling sailings and sidelining ships. At the same, falling oil prices because of pandemic-induced

lockdowns sent fuel costs for carriers down sharply, a reversal from expectations that bunker costs would soar after a mandatory switch to cleaner fuels.

“All of a sudden, supply came in line with demand with huge fuel savings as a bonus,” said Jonathan Roach, container analyst at London-based Braemar ACM Shipbroking. “Doom and gloom forecasts were put aside and so far, we are looking at a highly profitable year.”

Now, 15 senior industry executives polled by The Wall Street Journal expect on average that the world’s top dozen carriers will collectively make a profit of around $11 billion this year. It’s a complete reversal of expectations of at least $5 billion in losses, when volumes collapsed in March and April from the virus-imposed shutdowns.

It’s also a far cry from the 2008 financial crisis, when liner operators kept their global networks going and Contd. on page -2

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Maritime Vision 2030 To Boost Waterways Likely By October New Delhi Port Wings News Network he shipping ministry is likely to firm up its Maritime Vision for 2030 as it looks to boost waterways, give a fillip to the shipbuilding industry and encourage cruise tourism in the country, reports ET. The document, which could be ready as early as October this year, is set to supersede the Sagarmala initiative.

The aim of the exercise is to ultimately reduce the logistics cost in the country, a senior official told ET. “We have been working on this exercise... With 2020 getting over, we will have a new vision for the sector going forward,” the official said, asking not to be identified.

Among other areas being worked upon, the ministry wants to make port charges competitive, have a single tariff structure for all ports, and bring in the landlord model for

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all ports, which will see ports being operated by private players. The Major Ports Authority bill in this regard has been introduced in the Parliament.

The ministry is also looking at utilization of port land for industrialisation with focus on ‘Dedicated Cargo for Port, Investment and Employment’. A new township policy for ports will also be introduced.

The draft maritime vision document, a copy of which has been reviewed by ET, plans to increase the coastal cargo movement from 6% currently to 25%. A coastal cargo promotion committee will be set up to this effect.

The ministry is also looking at rationalisation of port charges to make them more competitive, besides doing away with all hidden charges levied by ship liners to bring in more transparency.

The ministry is also looking at increasing India’s visibility at the international level in the maritime sector, and strengthening maritime relations with different countries, as part of the exercise.

Promotion of Water Transport for decongestion of urban areas, and developing waterways as an alternative means of urban transport, are among other focus areas.

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Sep. 9th - 15th Issue

Shipping Lines Learn To Make Money...

Wednesday, September 9, 2020

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Wing 7 Feather 4

A White-Knuckle Ride

he COVID-19 pandemic has been especially cruel on seafarers, often trapped on ships for months on end far away from their loved ones. Those who were looking forward to going home in around March or April basically couldn’t, as permission for crew changes were denied in almost every port around the world. For a while it looked as if restrictions would be lifted, but many places are closing back down again due to a surge in new cases.

The personal experience of a shipping agent paints a vivid picture of the current crisis and how shipping agents are negotiating all sorts of hurdles to get exhausted and homesick crew members repatriated, and new ones boarded.

While seafarers have been bearing the brunt of restrictions, shipping agents and crewing managers the world over have been busy trying to find solutions and workarounds.

We can see clearly that without shipping there is no modern life.

We can live without commercial aviation but not without seaborne transportation. Although the pandemic has also highlighted, with the crew change challenge, the fact that, as an industry, we are not as influential as we need to be. Our seafarers are not being treated how they should be – as vital workers in a vital industry.

Covid-19 has perhaps had one benefit. It has allowed us to take a step back and assess what we need to do – and how to do it Shipping is operating within a new normal; even before Covid-19 triggered an unprecedented social and economic change, we were already dealing with the impact of IMO2020 and facing the challenges of transitioning an industry to mitigate the impacts of climate change.

For shipping agents, the pandemic was totally unexpected and it’s been a huge challenge, scrambling to adapt while trying to continue to provide the best services for customers.

With the lockdown, crew changes suddenly became a thing of the past, only at most other ports around the world. Later, as the restrictions eased the shipping agents were able to do a couple of changeovers. The biggest challenge was the terminal, with no taxis or transport providers allowed in. Then with poor flight availability and the terminal schedule and so on, it soon became too uncertain. Next problem: the on-signers needed the proper polymerase chain reaction, or PCR, test, A lot of jobs are 90% boredom and 10% sheer terror. An agent’s job is exactly the reverse. And that weekend was 100% sheer terror! But they just had to battle through and find a way to make it happen.

In some ports, the shipping agent should bear the responsibility to return the seafarer to his ship or provide a safe medical shelter if the Covid test was positive, in accordance with the instructions Sample TEXT imposed by the health authorities.

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While it was a white-knuckle ride, it most probably won’t be the last and agents around the world are facing the same kind of situation on a daily basis. Few people see how much work it takes to pull off what seems impossible. But it’s important to remember shipping agents aren’t alone.

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Continued from page -1 cut freight rates to fill their ships.

That led to heavy losses for years, forcing a consolidation wave that took the top 15 players down to six liners with a global reach.

Based on half-year results so far in 2020, however, the top dozen carriers increased their profits on average by around 150% from last year. Denmark’s A.P. MollerMaersk A/S, the world’s biggest liner company, tripled its secondquarter net profit on year to $427 million from $141 million a year earlier. German rival Hapag-Lloyd AG doubled its profit in the first half to $337 million, while small carriers like Korea’s HMM and Taiwan’s Yang Ming, which have depended on state support to stay afloat, cut their losses substantially in the first half.

All had reported double-digit

declines in shipping volume.

“We took out 20% of capacity, which saved us costs and boosted utilization rates, mitigating the fall in volumes,” said Maersk Chief Executive Søren Skou. “We managed our network like UPS and FedEx, adjusting capacity to demand and we will continue to do so.”

The capacity cuts kept rates firm in the early weeks of the lockdowns.

But the prices have been surging since then as demand has recovered.

The cost to send a box across the Pacific to the U.S. West Coast reached $3,639 the week ending Aug. 28, according to the Shanghai Containerized Freight Index, an alltime high and more than twice the rate in January. The price index for shipping from Shanghai to the U.S. East Coast pushed past $4,200 a box, a five-year high and up from $2,562 in the beginning of the year,

Even rates on the Asia-to-Europe lanes, which are the world’s busiest and notorious for their depth of price cutting, hit $1,029, the highest level since early February.

The turnaround suggests a new business approach has taken hold.

Long-held convictions that big fleets and dominant market share would somehow, someday lead to profits have faded. Operators now insist they’ll deploy capacity only where it will pay.

“The Covid era accelerated how fast the carriers needed to pivot with regard to survival,” said Mario Cordero, executive director of the port of Long Beach, Calif., and former head of the Federal Maritime Commission, which regulates shipping in the U.S. “Covid made it clear that the carriers need to have sustainable rates to stay in business,” he said.

Govt Directs Major Ports Not To Collect Penal Charges From Users During Lockdown Period Mumbai

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Port Wings News Network he Shipping Ministry has asked the 12 major ports to implement its April 21 advisory in “letter and spirit” and ensure that no penal charges are levied from port users during the lockdown period, plus 30 days recovery time, according to a BusinessLine report.

The move follows complaints from port users that the Ministry directive was being ignored by some of the major ports and private terminals operating therein.

“The detailed advisory dated April 21 may be implemented

in letter and spirit and the ports shall ensure that no penal charges, demurrages, detention charges, dwell time charges, anchorage charges, penal berth hire charges, performance related penalties etc are levied on any port user for any delay in docking/undocking, loading/unloading operations or evacuation/arrival of cargo/repair of vessel during the lockdown period, plus 30 days recovery period,” the Ministry said in a September 2 letter to all the major ports.

The Ministry reiterated that its April advisory on exemption/ remission charges due to force majeure triggered by the coronavirus

will be applicable for all port related activities affected by the pandemic.

“The genuineness of the effect on the ‘port related activities’ due to lockdown must be ascertained by the respective ports,” the Ministry told the major ports.

Commenting on the Ministry’s advisory, Rahul Modi, member of the National Shipping Board, urged all stakeholders in coastal trade “to support state-owned major ports to avail such intervention/supporting measures from the government”.

“The government’s support measures are a big relief to shipping lines and freight forwarders in the current circumstances,” he added.

Freight Corridor Gathers Speed New Delhi Port Wings News Network n a mission mode, Dedicated Freight Corridor (DFC) of Indian Railways is gathering speed. Constant weekly monitoring and meetings with all stake holders lead to acquisition of patches and sections of land which were long delayed. Indian Railways even deployed its experts to assist the contractors to tide over operational difficulties at ground level implementation.

Minister of Railways and Commerce & Industry Shri Piyush Goyal held a review meeting with Chief Secretaries of State Government to expedite the progress & resolve critical issues of Dedicated Freight Corridor (DFC).

The Minister also wrote letters to Chief Ministers of Uttar Pradesh, West Bengal, Bihar, Punjab, Haryana, Rajasthan, Gujarat and Maharashtra in this regard. Minister of Railways and Commerce & Industry Shri Piyush Goyal has been holding review meetings with Dedicated Freight Corridor contractors to resolve their problems and issues.

Chairman & Chief Executive Officer, Railway Board Shri Vinod Kumar Yadav also wrote letters to Chief Secretaries of State Governments and General Managers of Zonal Railways to expedite the progress and resolve critical issues. Shri Yadav also held a meeting with Dedicated Freight

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Corridor contractors to resolve their problems and issues.

In the last week more than 20 meetings (contract package wise) held with respective field officials of L&T, PMC, TATA and DFC Officials. Various issues discussed in the meeting and resolved and timelines given.

Dashboard is being created to monitor km by km progress of project. Open house video conferencing also started on daily basis to resolve critical issues of States Governments/Zonal Railways/Contractors on real time basis.

Resolving contractors’ problems in project interest during last one week is as underUp to date payment to contractors as COVID-19 relief under GCC clause; Simplification of GST payment process; and Railway supervisors provided to private contractors to get things moving at the ground level.

Various issues like land possession for RUB/ROB, mutation of land, land issue for construction of high tension line, disbursement for private land, award for land as per original methodology etc. also resolved with State Governments of Punjab, Bihar, Jharkhand, Uttar Pradesh and Gujarat in last one week to expedite the progress of Dedicated Freight Corridor.

RAILWAYS REGISTER MORE THAN 10% JUMP IN FREIGHT LOADING The Indian Railways Freight

loading for the month of September 2020 till 6 September 2020 crossed last year’s loading and earnings for the same period.

In the month of September 2020 till 6 September 2020 Indian Railways loading was 19.19 million tonnes which is 10.41% (1.81 million tonnes) higher compare to last year’s loading for the same period (17.38 million tonnes). In this period Indian Railways earned Rs. 1836.15 crores from freight loading which is also Rs. 129.68 crores higher compare to last year’s earnings for the same period (Rs. 1706.47 crores) In the month of September 2020 till 6 September 2020 Indian Railways loading was 19.19 million tonnes which includes 8.11 million tonnes of coal, 2.59 million tonnes of iron ore, 1.2 million tonnes of foodgrains, 1.03 million tonnes of fertilizers and 1.05 million tonnes of cement (excluding clinker).

It is worth mentioning that a number of concessions/ discounts are also being given in Indian Railways to make Railways Freight movement very attractive.

It may be noted that improvements in freight movements will be institutionalized and incorporated in the upcoming zero based time table.

Covid 19 has been used by Indian Railways an opportunity to improve all round efficiencies and performances.

Sep. 9th - 15th Issue

CMA CGM Move To Sell Stake In Mundra Terminal Under Security Lens

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Port Wings News Network rench shipping group CMA CGM’s decision to sell the 50 per cent stake held by its unit CMA Terminals in Adani CMA Mundra Terminal Private Limited (ACMTPL) at Mundra port to China Merchants Port (CMP) has run into trouble following the border dispute with China, reports BusinessLine.

ACMTPL is an equal joint venture between Adani Ports and Special Economic Zone Ltd (APSEZ) and CMA Terminals, a unit of CMA CGM SA, the world’s third largest container shipping firm that runs a 1.3 million twenty foot equivalent units (TEUs) capacity terminal at Mundra port.

On 20 December 2019, CMA CGM announced a plan to sell stakes held by CMA Terminals in 10 port terminals globally to Terminal Link, a joint venture 51 per cent owned by CMA-CGM and 49 per cent by state-owned China Merchants Port as part of the efforts to reduce debt.

On 26 March this year, CMA CGM announced the first closing of its agreement with CMP, with the sale of its stakes in eight port terminals to Terminal Link for an all-cash consideration of $815 million. This list did not include the Mundra terminal.

“The sale of the last two terminals (including in Mundra) covered by the agreement between CMA CGM and CMP should be completed by the end of first-half 2020 for an all-cash consideration over $150 million, pending approval by the competent regulatory agencies,” said CMA CGM in a statement on March 26.

Stake sale being scrutinised Government sources said the stake sale is being scrutinised in accordance with the guidelines approved by the Cabinet Committee on Security in January 2018 for security clearance of firms in port and dredging projects.

Once security clearance is accorded by Ministry of Shipping to any company, based

on inputs from the relevant Ministries/ Departments/ organisations for any port project, such clearance in respect of the company would be valid for five years.

However, fresh clearances should be taken if there is any change in management control of the company.

“The concerned companies would be liable to inform the above change to the Ministry of Shipping/concerned port within two weeks, failing which the security clearance already accorded can be withdrawn. This information will be communicated to the security agencies by the Ministry of Shipping within one month of the change taking place for seeking fresh security clearance,” according to the security clearance guidelines.

Besides, the concerned companies would be liable to inform the change of more than 10 per cent in shareholding in the company by any shareholder to the Ministry of Shipping/ concerned port within two weeks, failing which the security clearance already accorded can be withdrawn. This information will be communicated to the security agencies by the Ministry of Shipping within one month of the change taking place. In case, as a result of any change as mentioned above, if any security concern is raised in the course of enquiry, the Ministry of Shipping would immediately take necessary action on the findings, says the guidelines.

This security clearance procedure is also applicable to non-major ports, including private ports, set up in Public Private Partnership (PPP) mode in the state sector due to the sensitiveness of the port sector.

“As all non-major ports are under the purview of concerned State Government/UT in which the port is situated, the State Maritime Boards/ State Governments may apply to Ministry of Home Affairs, Ministry of Defence and Ministry of External Affairs to get security inputs on the bidders of the projects at non-major ports, and shall consider the inputs received from the security agencies in consonance with the security clearance guidelines issued by MHA from time to time,” it added.

Major Ports To Use Only Indian Built Tug Boats Now Onwards: Shipping Ministry New Delhi Port Wings News Network he Ministry of Shipping has directed all major ports to procure or charter tug boats which are only made in India. All procurements being done by major ports would now need to be carried out as per the revised ‘Make in India’ Order.

The Ministry of Shipping is aiming to promote Indian shipbuilding industry and also have discussion with some leading countries for Make in India shipbuilding. In the meantime, this decision of the Government will be a big move towards realizing Make in India in shipbuilding.

Union Minister of State for Shipping (I/C), Shri MansukhMandaviya said that the Government is taking 360-degree actions to revive old shipyards and promote shipbuilding in India.

It is a step towards bolstering the revival of Indian Ship building and a big move towards AatmaNirbhar Shipping in AatmaNirbhar Bharat. The Government will try to create an ecosystem for shipbuilding, ship repair, ship recycling and flagging in India. AatmaNirbhar Shipping is going to be the order in the coming times.

Procurement/chartering of port crafts would need to be aligned with the revised Make in

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India Order to promote shipbuilding in India. It is proposed to set up a Standing Specifications Committee under Managing Director, Indian Ports Association and comprising representatives from Cochin Ship Yard Limited (CSL), Shipping Corporation of India (SCI), Indian Register of Shipping (IRS) and Director General of Shipping.

Standing Specifications Committee would shortlist around five variants/types of tugs and prepare a ‘Approved Standardized Tug Design and Specifications.’ (ASTDS). This ASTDS would outline specifications, general arrangements, basic calculations, basic structural drawings, key system drawings and other construction standards, etc. These standards would be vetted by the Standing Specifications Committee and, thereafter, certified ‘inprinciple’ by IRS and published by the Indian Ports Association on its website. The Ministry will also provide some window to Major Ports so that construction time would be availed.

Recently, Government owned Cochin Shipyard Limited has been successful in grabbing the order for two automated vessels from Norwegian Government. These will be the first of its kind unmanned vessels. Various decisions taken by the Ministry of Shipping will turn around Ship Building sector in the near future.

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Adani Ports gets AP Govt nod to buy Krishnapatnam Port from CVR Group

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Port Wings News Network he Andhra Pradesh Cabinet has approved the Krishnapatnam port deal, clearing the decks for Adani Ports and Special Economic Zone Ltd (APSEZ) to close the transaction for buying a controlling stake of 75 per cent in Krishnapatnam Port Company Ltd (KPCL) for an enterprise value of ₹13,572 crore, according to a BusinessLine report.

KPCL runs a private deep-water port at Krishnapatnam in Andhra Pradesh’s Nellore district.

“The change in shareholding in Krishnapatnam Port Company has been approved by the Cabinet today,” a top AP government official told BusinessLine.

The development caps an extraordinary week for Gautam Adani in which his power unit – Adani Power Rajasthan Ltd – won approval from the Supreme Court on Monday to collect compensatory tariff from three Rajasthan power distribution companies to recover the higher cost of imported coal for its 1,200 MW Kawai thermal power plant.

On the same day, Adani struck a deal to acquire the debt of GVK Airport Developers Limited from the lenders, which will help the group pick a controlling stake in Mumbai International Airport Ltd and Navi Mumbai International Airport Limited.

The Krishnapatnam port deal was first reported by BusinessLine on August 19, 2019, before it was officially announced on January 3 this year.

The equity portion of the Krishnapatnam deal (excluding the debt held by the port operating company of about ₹6,212 crore) is valued at about ₹7,360 crore.

The deal is APSEZ’s biggest acquisition yet in India’s port sector in terms of value and size, and helps it build scale in an industry that is dominated by the 12 state-owned ports.

Krishnapatnam is India’s second biggest private port and the largest in Andhra Pradesh.

CCI approval The deal has received approval from the Competition Commission of India. The acquisition will give APSEZ, India’s biggest private port operator, access to the country’s largest waterfront area (for a port) of 12.5 kms and a transit storage area of 6,790 acres, of which, 4,621 acres is in possession of the port operating company.

Krishnapatnam, a port owned by the Andhra Pradesh government, was given to the Hyderabad-based CVR Group for development and operations on a 30-year contract beginning March 2009. The port contract can be automatically extended in two blocks of ten years each. Currently, the port has a draft of 18.5 metres, a depth that can accommodate fully-loaded capesize vessels of 200,000-tonne capacity.

The port, located 180 kilo metres north of Chennai, currently has a capacity to handle 64 million tonnes (mt) of cargo from 13 berths. The cargo handling capacity can be scaled up to 250 mt a year, according to the master plan.

Krishnapatnam Port Company is 90.6 per cent owned by the CVR Group, which has interests in construction, ports, power, steel, information technology and exports.

This will be APSEZ’s third acquisition on the eastern coast after the purchase of Dhamra port in 2014 and Kattupalli port in 2016.

The deal will also help APSEZ expedite the vision of handling 400 million tonnes (mt) of cargo by 2025, and expand its market share among India’s ports.

APSEZ’s nine strategically located ports and terminals – Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, Kattupalli and Ennore in Tamil Nadu – have the capacity to handle a combined 395 mt of cargo, accounting for 24 per cent of the country's total port capacity. APSEZ is also developing a container transhipment port at Vizhinjam in Kerala and a container terminal at Yangon in Myanmar.

Cargo Owner Solely Liable To Pay Storage/Demurrage Charges To Port Trusts After Goods Land, Rules SC

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Port Wings News Network he vessel and its agents are absolved from all liabilities once the goods pass into the port’s custody in exchange for a receipt, reports BusinessLine.

Only the owner of the goods or person entitled to the goods is liable to pay storage or demurrage charges to the port trusts and not the ships or its agents known as steamer agents, the Supreme Court has ruled in a judgment that settles a longstanding conflict within the shipping industry over the matter.

The statutory scheme of the Major Port Trusts Act 1963 is crystal clear, a three-member larger Bench of the top court led by Justice RF Nariman wrote in a August 5, 2020, order.

“Until the stage of landing (of goods) and removal to a place of storage, the steamer’s agent or the vessel itself may be made liable for rates payable by the vessel for services performed to the vessel,” the top court said.

“Post landing and removal to a place of storage, detention charges for goods that are stored, and demurrage payable thereon from this point on, i.e., when the Port Trust takes charge of the goods from the vessel, or from any other person who can be said to be owner as defined under Section 2(o), it is only the owner of the goods or other persons entitled to the goods (who may be beneficially entitled as well) that the Port Trust has to look to for payment of storage or demurrage charges,” the Bench that also included Justice Navin Sinha and Justice Indira Banerjee, concluded.

AREBEE STAR MARITIME CASE The apex court order came on an appeal filed

by Cochin Port Trust against a September 27, 2011, order of the Kerala High Court involving Arebee Star Maritime Agencies (P) Ltd.

The court was asked to decide on whom the Port Trust has to fasten the liability for payment of storage/demurrage charges — the consignee or the steamer agent.

“The correct position in law is that after the Port Trust takes charge of the goods, and issues a receipt therefor, and thereafter stores the goods in a place belonging to it, such storage charge cannot be to the account of the vessel or an agent of the vessel,” the court ruled.

The bill of lading being endorsed by the steamer agent is different from the bill of lading being endorsed by the owner of the goods, it observed. “In the first case, the endorsement leads to delivery; in the second case, the endorsement leads to passing of title (over the goods). For the reasons mentioned in the judgment, both stages are irrelevant in determining who is to pay storage charges — we have held that up to the point that the Port Trust takes charge of the goods, and gives receipt therefor, the steamer agent may be held liable for Port Trust dues in connection with services rendered qua unloading of goods, but that thereafter, the importer, owner, consignee or their agent is liable to pay demurrage charges for storage of goods,” the court said.

Based on this, the top court disposed of the appeal filed against the Kerala High Court order.

Shipping industry sources said that vessels and steamer agents can now be “confident and certain” that once goods are landed at a port and pass into the port’s custody in exchange for a receipt, the vessel and its agents are absolved from all liabilities towards the cargo, including for payment of storage and demurrage charges levied by the port trusts. “Irrespective of whether delivery orders are issued or not, any charges accrued on the cargo once custody of the cargo has passed to the Port Trust, will be to the account of the cargo owner and not to the vessel and her agents,” said a steamer agent.

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Sep. 9th - 15th Issue

CMA CGM delivers solid operating performance after corona storm New Delhi Port Wings News Network he Board of Directors of the CMA CGM Group, a leading worldwide transport and logistics group, met today under the chairmanship of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the second quarter of 2019.

Shipping activity The Group’s shipping business remained strong in the second quarter, with significant improvement in volumes carried and in profitability, enabling the shipping activity to post a positive net result.

Growth in carried volumes and revenue In the second quarter, volumes transported by CMA CGM increased by 6.3% compared to the second quarter of 2018 and by 6.8% compared to the first quarter of 2019. This positive trend, which is above market, is driven by the strong growth of intra-regional lines (short sea) and the United States lines, which remain particularly dynamic.

The Group thus relies on the network of intra-regional companies’ expertise that are leaders in their sectors: CNC, a specialist in Intra-Asia, Mercosul, a leader in cabotage and door-to-door services in Brazil.

ANL, an expert for Australia and Oceania, Containerships, specialist in intra-Europe.

Second quarter revenue was up 4.6% compared to the second quarter of 2018 and reached USD 6 billion for the Group's shipping activities.

Operating performance: positive outcomes from the cost reduction plan The deployment of the cost reduction plan allowed to reduce

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operational expenses by USD 51 per TEU (Twenty-foot Equivalent Unit) in the second quarter compared to the first quarter of 2019.

This mainly comes from initiatives to rationalize certain trades, the efforts to always improve operational efficiency, lower logistics costs and the reduction of the Group’s ships consumption.

Adjusted EBITDA came to USD 343.6 million and the EBIT margin amounted to 5.8%.

The net result of the shipping operations reaches USD 2.3 million.

Logistics activity: implementation of CEVA Logistics turnaround plan well underway Following the closing of CMA CGM’s friendly public tender offer for CEVA Logistics, a new corporate governance structure was put in place, with the election of Rodolphe Saadé as Chairman of the Board of Directors on 29 April, 2019 and the appointment of Nicolas Sartini as Chief Executive Officer effective 1 June.

By consolidating the company’s management teams and support functions, the new operations centre in Marseille, which opened on 25 June, is strengthening the leadership and management of the Group’s logistics activities. CEVA Logistics’ integration is proceeding according to the strategic plan.

Growth in revenue Second-quarter revenue stood at USD 7.7 billion, a year-on-year increase of 35%. The activity of the Group’s maritime division has particularly benefited from the dynamisms of its intraregional lines and has posted a growth in volumes above global market growth.

Solid operating performance In the second quarter of 2019, the CMA CGM Group further enhanced its operating performance, backed by the optimized use of its modern

fleet of 528 vessels (at 30 June) and the responsiveness of its marketaligned organization.

Adjusted EBITDA came to USD 954 million for the period, of which USD 464 million from the impact of applying IFRS 16 and USD 147 million from the consolidation of CEVA Logistics. Excluding these two factors, adjusted EBITDA was up by a strong 60.1% year-on-year, at USD 343,6 million versus USD 214,6 million in second quarter 2018. This performance reflected both the sustained growth in revenue and the impact of the performance improvement and cost control plan under way since the beginning of the year.

Adjusted EBITDA margin improved significantly year-onyear to 12.4%, one of the best in the industry and an improvement from Q2 2018 and the first quarter of 2019.

The implementation of IFRS 16 and the recent acquisition of CEVA Logistics lead to a net result of USD -109 million for the second quarter.

Outlook In a context of geopolitical uncertainty, the CMA CGM Group continues to focus its efforts on operational efficiency, cost control and the rationalization of its industrial activities and brands. In addition, the positive momentum generated by the acquisition of CEVA Logistics will gradually enable the Group to benefit from a less volatile and more diversified environment than the maritime sector.

Thanks to all the measures put in place, the Group is confident for the second half of 2019, which should be better than the first one. The CMA CGM Group will continue to improve its financial performance and adapt its commercial offering in order to provide its customers endto-end offers.

JNPT Opts for Major Technological Push, Upgrades Existing Ship Maneuvering Simulator Mumbai

J

Port Wings News Network awaharlal Nehru Port Trust (JNPT), India’s premier container port, in a major push and with a vision of augmenting the ports training abilities, superior training outcomes for the pilots, have upgraded to the latest technology for navigation & vessel maneuvering training.

This enhancement ship maneuvering simulator will ensure availability of latest modules and features to augment JNPT’s training capabilities and ensure superior

training outcomes for the pilots.

The setup of the simulator was reviewed by Shri Sanjay Sethi, IAS, Chairman, JNPT and Shri

Unmesh Sharad Wagh, IRS, Deputy Chairman, JNPT. The upgrades made to the physical

simulator infrastructure such as the Human Machine Interface (HMI) and Consoles will allow training for various emergency scenarios. This will also help Pilots to perform berthing operations in a more ship like environment where they can assess vessel movement not only from the wheelhouse but also position themselves on the wings whilst the vessel is brought alongside. This has been upgraded by M/s ARI, with indigenous technology.

These measures will help the port to be at par with technologically

advanced global ports augmenting JNPT’s stature to be among the leading container ports in the world.

The Jawaharlal Nehru Port Trust (JNPT) at Navi Mumbai is the biggest container handling Port in India accounting for around 52% of the total containerised cargo volume, across the major ports of India. Commissioned on 26th May 1989, in less than three decades of its operations, JNPT has transformed from a bulk-cargo terminal to become the premier container port in the country.

Currently JNPT operates five container terminals: the Jawaharlal Nehru Port Container Terminal (JNPCT), the Nhava Sheva International Container Terminal (NSICT), the Gateway Terminals India Pvt. Ltd. (GTIPL), Nhava Sheva International Gateway Terminal (NSIGT) and the newly commissioned Bharat Mumbai Container Terminals Private Limited (BMCTPL). The Port also has a Shallow Water Berth for general cargo and another Liquid Cargo Terminal which is managed

by BPCL-IOCL consortium.

APM Terminals Pipavav's Board Approves Rs. 700 Crore Expansion Plan Mumbai

A

Port Wings News Network PM Terminals Pipavav [Gujarat Pipavav Port Ltd] has announced the approval of Rs. 700 crore in coherence to the expansion plan of the company. The stated investment will be utilised for upgrading the port's existing facility to handle bigger ships and eventually expand the container capacity to 1.6 million TEUs. The supply chain and the inland logistics is expected to significantly improve the reliability and reduce transit time going forward with the implementation of Western Dedicated Freight Corridor (DFC).

This will improve overall cargo volume for imports and exports.

About 40% of the total investments in entire 1,535 km of DFC is likely to be in Gujarat, which has around 37% of area covered of complete stretch.

Expressing delight, Mr. Jakob Friis Sorenson, Managing Director, APM Terminals Pipavav said, “With this investment, we aim to strengthen our network and continue to provide best in-class services to all our stakeholders. However, we are awaiting the confirmation of concession extension from Gujarat Maritime Board (GMB) to execute the expansion plan. The container yard capacity will be expanded once the cargo growth is visible post

commissioning of DFC. We expect the world economy and business to follow an expanded 'U' curve and normalcy in business to be restored by the second quarter of 2021.”

The port operations are imperative to ensure that the supply chain remains uninterrupted and availability of essential supplies is maintained. Ports are the lifelines of the maritime supply chain. Even during the lockdown period, APM Terminals Pipavav successfully operated without having a single positive case amongst our people, a testimony of the care taken of their employees and the community around.

APM Terminals Pipavav [Gujarat Pipavav Port Ltd.] is one of India’s leading gateway port for Containers, Ro/Ro (passenger cars), Liquid Bulk and Dry Bulk cargoes serving customers in the state of Gujarat with road and rail networks to India’s hinterland and northwest.

The current annual Cargo Handling Capacity includes 1.35 million TEU Containers, 250,000 Passenger cars, 2 million metric tons of Liquid bulk and 4 million metric tons of Dry bulk. APM Terminals Pipavav is India's first public private partnership (PPP) port in India and is a part of the APM Terminals global terminal network.

Auto Sector Has Huge Responsibility of Employment Generation: Gadkari New Delhi Port Wings News Network he Union Minister for Road Transport and Highways Nitin Gadkri has that automobile industry is one of the largest contributors to the manufacturing GDP of the country and is a sector that has the highest number of employment.

Addressing the 60th Annual Convention of SIAM through video conferencing on Friday, he underlined that a lot stands on the shoulders of this industry in the current times. Gadkari assured to resolve the concerns of the industry in the interest of society and economy.

The Minister also expressed confidence in achieving road safety targets in near future. He said, the automobile industry has progressed a lot in that direction. He noted that vehicle manufacturers have implemented regulations crucial to vehicle safety such as crash norms, ABS, airbags, seat belt reminder, reverse parking assist, VTS, etc.

These regulations have brought the auto industry in India at par with the global auto industry. This has been possible with extraordinary coordination and commitment of Indian automobile industry, he added.

Gadkari applauded the automobile industry in leap-frogging to BS-VI standards. The Minister informed that the current rate of road building per day has averaged to 30 km a day, with the highest being 40 km per day of highways.

He said, India has now the second largest road network in the world being fueled by the tremendous growth in construction of expressways and highways.

Stressing that making the vehicles

T

safer alone would not bring down the accidents and fatalities significantly, he said, the same should be complemented with proper road designs and enforcement.

This includes being equipped and future ready. He said, the future of mobility demands integration with infrastructure. Accordingly, all highways/expressways are being made with demarcated roads and lane markings, suitable for implementation of advanced driver assist technologies.

The Minister added that this century has been defined by the rise of digital and connected features that have become an integral part of life. Recognizing the impact of Digitalization, Motor Vehicle Amendment Act 2019 has promoted use of digital technologies for traffic safety and rule enforcement.

With the cooperation of the industry, electronic toll collection with FASTag was successfully implemented. With its linking to the Vahan portal, FASTags would enable toll crossings seamless and smooth.

He said, infrastructure growth and enhancement, is being looked at not only from a point of view of connected vehicles, but also electric & alternative fuel vehicles. He urged at increased use of alternative fuels, the focus being to ensure availability of ethanol fuel across the country, consistently.

As penetration of these vehicles increases, the demand for supporting infrastructure, such as charging stations and fueling stations will grow and will have to be fulfilled. We will try to bring about an integrated fuel roadmap defining phase-wise introduction of different fuel options and supporting infrastructure, he added.

Sep. 9th - 15th Issue

Agriculture Has Shown Resilience New Delhi Port Wings News Network he global agricultural trade has successfully offset the sharp fall in overall merchandise trade in the first half of 2020, but will it continue to avoid the domino effect of the Covid-19 pandemic?

A note from the World Trade Organisation finds that agricultural trade has fared better than other sectors, with initial measures focused on guaranteeing the immediate availability of food. Those measures brought in processes that both facilitated and restricted agriculture

T

trade with new sanitary and phytosanitary (SPS) measures, tariff reductions, and export restrictions. A second phase of policies sought to mend broken supply chains and help producers to cope with the “new normal” situation. There has also been an increase in stockpiling, propping up agricultural trade as governments bought unsold produce.

“Agriculture has in fact shown resilience, with a trade performance that has fared better than other sectors,” said the WTO. It calculates that agricultural and food exports increased by 2.5% during the first quarter of the year compared with the same period in 2019, with further increases in April.

Figures from BIMCO reveal that combined agricultural export volumes from the US, Argentina and Brazil rose to 148.6 million tonnes in the first half of 2020, from 136.8 million tonnes in the first six months of 2019.

The rise was fuelled by strong Brazilian soya bean exports which drove total agricultural exports out of Brazil up by 40% in the second quarter compared with the same period last year, said BIMCO’s chief shipping analyst Peter Sand.

“As the Covid-19 pandemic took hold, it was clear that seaborne exports of agriculture bulks were this year’s wild card, the one that could grow, whereas the rest of the commodities were bound to fall.

“As the main exporters in the western hemisphere were able to ship 22% more agricultural goods in Q2 this year than in the previous quarter, much of it long-haul, charterers ran down tonnage lists and drove up freight rates. If exports of soya beans and corn from the US are strong from the beginning of the new marketing year, we will get for a healthy support to the dry bulk market from 1 September,” Sand said.

Products and producers The positive picture does, however, hide the variations in demand for different agricultural products. The WTO said that trade in non-food agricultural products such raw fur skins, wool or flowers dropped dramatically during the first quarter, while it increased for

others, including for staple foods, processed fruits and vegetables. This reflected initial panic buying and increased home-based consumption. Further exports dropped for higher-value products in April 2020, including for fresh produce, dairy and meat, which, said the WTO, are generally more dependent on sales to restaurants, schools and the tourism sector than to households.

Demand impacts have also varied across regions with Asia’s agricultural exports dropping in March 2020, followed by Europe and North America in April. However, the WTO reports that some regions have seen exports increase compared with the same period in 2019, with the biggest increases in South America, driven by “Asian demand for the region’s exports of products such as soybeans, sugar and meat”. Here, Brazil accounted for around half of the continent’s agricultural exports.

WTO data for least developed countries reveal a bigger drop in exports than in other regions, with the exception of Ethiopia and Myanmar, which saw their exports increase.

On the flip side, imports of agricultural products increased for virtually all regions in the first quarter, compared with the same period in 2019. However, demand for imports in April contracted compared with the previous year in Europe, North America and South America and some least developed countries.

DARK CLOUDS There are clouds on the horizon for global agricultural trade. For one, the crisis has placed downward pressure on food prices, which has in turn hit producer revenues.

Additionally, the WTO points out that while global food stocks and production levels for the staple agricultural crops of rice, wheat and maize are at or near all-time highs, rising unemployment and poverty has “increased the number of hungry people worldwide”.

The WTO warns that repercussions for food supply chains are still unfolding. “While agricultural trade has proven more resilient than trade in other goods owing to the essential nature of food products, additional disruptions to supply chains could start to undermine this resilience, with damaging consequences.

“There is currently no supply-related reason why the ongoing health crisis should turn into a food crisis,” it continued. “However, disruptions to food supply chains constitute a risk for global food security. Governments’ trade policy choices will play a major role in shaping how the situation evolves.”

According to the World Food Programme’s most recent estimates, 270 million people could be “acutely food-insecure” by the end of 2020, representing an 82% increase from before the pandemic. “Producing and storing enough food is not sufficient if it does not reach those in need. By contributing to the availability and affordability of food, trade remains a crucial part of the solution to countries’ food security concerns — particularly at a moment when people’s incomes are under pressure. It is therefore critical to keep trade flows open, and to ensure that food supply chains stay operational,” concluded the WTO.

Rapid Antigen Tests Begins at Paradip Port Hospital

T

Paradip

Port Wings News Network he PPT Hospital started conducting rapid antigen tests for COVID-19 on a large scale from 4 September 2020.

It is Standard 'Q' Covid Antigen Test from nasal swab as per ICMR guidelines. It will cover all the PPT employees. The results of the tests will come within half an hour. Shri Rinkesh Roy, Chairman, PPT has said that this will eliminate the long waiting time, resulting in quick isolation of the positive patients.

Shri A.K. Bose, Dy. Chairman and Shri Moloy Dasgupta, Chief Engineer, PPT

witnessed the whole procedure of testing. Out of 7 samples collected today, one has been tested positive. He is a contact of previously positive case.

5

Federation of Telangana Chambers of Commerce and Industry Sets up Business Facilitation Centre at GMR Air Cargo Terminal

C

Chennai

Port Wings News Network onsidering the demand and to facilitate the exporters during the unprecedented times of pandemic, the Federation of Telangana Chambers of Commerce and Industry (FTCCI) has set up a FTCCI Business Facilitation Centre (FTCCI-BFC) at GMR Air Cargo Terminal, Shamshabad.

Shri J.S. Chandrashekar, IRS., Principal Commissioner of Customs, Hyderabad Customs Commissionerate, inaugurated the facility on 3 September in the presence of Saurabh Kumar, CEO, GMR Hyderabad Air Cargo and Logistics Private Limited and Ramakanth Inani, President, FTCCI. FTCCI-BFC was set up to provide business services, update on the happenings and disseminate the activities of FTCCI, so that the entrepreneurs/exporters can leverage the services of FTCCI, for their growth and development.

The RGI Airport has an integrated cargo facility housing both domestic and international facilities under one roof.

Apart from cargo facility, airport has all the facilities/services required for exporters.

There are growth opportunities in the areas of drug formulations, biological, residual chemicals and allied products; bulk drugs and drug intermediates; organic chemicals; natural stones and product; gold and other precious metals. The Centre at the airport premises provides for hassle free facility for exporters, improving ease of doing business further. It acts a catalyst for increasing exports from the State in leaps and bounds, apart from earnings of precious foreign exchange.

Addressing the gathering, Shri Chandrashekar said, “it’s great initiative from FTCCI to bring their services at the doorstep of importers and exporters. I must appreciate FTCCI for taking this step. We all must think out of box and devise suitable ways to smoothen the business functioning.

Apart from following the footsteps of Delhi,

Mumbai & Chennai. Hyderabad needs to think out of box and make the experience seamless for exporters so that more exports can take place from Hyderabad. We should think ahead of times which should help business grow much faster.”

Ramakanth Inani, President, FTCCI, said “After 103 years, this is the is firstever 'Business Facilitation Centre' outside FTCCI Office, aimed to assist trade & industry by issuing Certificate of Origin & Export Document attestation, Visa Recommendation & Foreign Travel Reference services and place of shipment at airport itself. The objective of the Centre is to update on the happenings and disseminate the activities of FTCCI. Covid-19 pandemic has created hurdles in the free movement of goods and people and the industries are facing many challenges and we believe that the FTCCI Business Facilitation Centre will help entrepreneurs/exporters in ease of doing business.”

Speaking on the occasion, Saurabh Kumar, CEO-GMR Hyderabad Air Cargo, said “We are very happy to have The FTCCI Business Facilitation Centre as part of our integrated Air Cargo Ecosystem. We have created a concept of Cargo Village to bring-in all related air cargo service providers, authorities and trade in a single location for easy access and quick turn-around time. We are one of the few Cargo Terminals in the Country to have Regulators, Industry Bodies, Agents, Forwarders and Certification Agencies under the same roof.”

The inauguration was also attended by Tulasi Prasad, President, Custom House Agent, Hyd., Adil Khan, President, Customs Brokers Association, Hyd., Gopi Donti Reddy, Deputy Commissioner., Mrithyujai, Deputy Commissioner, Hyd Customs., Purshottam Singh Thakur, Head-Operations & Parul K, Head-BD & Marketing, GMR Hyderabad Air Cargo., K. Bhasker Reddy, Sr Vice President & Khyati Naravane, CEO, FTCCI.

Steady Surge in Cargo Handling at JNPT, Handles 1,643,784 TEUs, 694 Vessels During Lockdown

J

Mumbai

Port Wings News Network awaharlal Nehru Port Trust (JNPT), India’s premier container port continued its steady surge in cargo handling with the easing of lockdown restrictions and pick up in the domestic economic activity.

This progress indicates early signs of recovery which is very significant during the ongoing pandemic which has affected business across India. Despite the various challenges faced, JNPT handled a noteworthy 1,643,784 TEUs and 694 vessels in the lockdown period till 31 August 2020.

After facing a drop of over 35% in cargo handling in the initial lockdown period, slowly the decline has come down to 16.61% in August as compared to August 2019 and the Port is trying to reach its pre Covid performance levels and the numbers reaffirms that JNPT will maintain this growth trajectory.

From the start, JNPT took a host of measures for the stakeholders, port employees, shipping lines, and the local community. These timely measures have helped the port in improving its numbers month on month and. JN Port

registered a throughput of 3,52,735 TEUs in container handling in Aug 2020 as against 3,44,316 TEUs handled in July 2020. The overall traffic handled at JNPT during the month of August-2020 was 4.74 million tons as against 5.68 million tons in Aug-2019.

Shri Sanjay Sethi, IAS, Chairman, JNPT said, “Ports are an important link in the logistic chain and JNPort has efficiently played this role during the last couple of months and after facing steep contraction, is now on the road to recovery. At JNPT, we have taken various steps to keep the Port Ecosystem functional and for smooth working of the Logistic Supply Chain during the Covid-19 pandemic crisis, which has helped our cause. Also by converting JNPT Hospital as Dedicated Covid Health Care Centre, we are trying to do our best in helping the local community to come out of this crisis”.

The premier container port is expected to drive the next phase of transformation and further looks to strengthen its position, achieve the goals and remain in the position of a leading port in the coming years.

6

Vessel Position at Terminals - (09.09.2020 To 16.09.2020)

Sep. 9th - 15th 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

14/09

15/09

IEX

AL MANAMAH

2031

HLL1

Colombo, Damietta Piraes Rotterdam, London

08/09

09/09

CI3

ATHENS BRIDGE

111E

ONE

Port Kelang (North port), Singapore, Shanghai

8-9

09/09

PIC-2

SSL BHARAT

85

SHR1

Colombo, Tuticorin, Cochin

11/09

12/09

MD1

BOMAR FULGENT

03686E

WAN

10-9

11/09

ECH

SSL KOCHI

189

SHR1

KAK / CGP / PRT / HAL

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

14/09

15/09

TCXNEW

GLEN CANYON BRIDGE

112E

ONE

Port Kelang(North port), Singapore, Shanghai

13/09

14/09

TCXNEW

X PRESS JERSEY

20009

SCM

Port Kelang(North port), Singapore, Shanghai

16/09

17/09

FME

TABEA

890E

FTD

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

Kattupalli ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

9-9

10-9

BULK

MV MARINE HORNBILL

98

PMI

10/09

11-9

TCX

ATHENS BRIDGE

111

ONE

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

11/09

12-9

CCG

VARADA

28

SIM

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

12-9

13/09

TCX

GLEN CANYON BRIDGE

112

ONE

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

12-9

13/09

ACS

HYUNDAI GOODWIL

98

HMM

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

13/09

14/09

TCX

X PRESS JERSEY

20009

SCA

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

14/09

15/09

SHTL

MEXICO

037E

MSK

NCT, Krishnapatnam ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

15/09

CHX

Alexander Bay

038E

Maersk & Safmarine

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

12-9

13/09

MAERSK SHUTTLE

Mexico

037W

Maersk & Safmarine,XCL

Colombo, Salalah

13/09

14/09

IEX

AL Manamah

2031W

Hapag, ONE, COSCO, OOCL, YM

Colombo, Damietta Piraes Rotterdam, London

15/09

16/09

VCH-1

Kapitan Afanasyev

119

MSC & NVOs

Ennore, Krishnapatnam, Visakhapatnam, Tanjung Pelepas, Xingang, Qingdao

SSL Chennai

162

14/09

11-9

12-9

COASTAL

Haldia

NSICT - Mumbai ETA

ETD

Service

Vessel Name

9-9

10-9

MESAWA

9-9

10-9

INDUS

Voy

Agent/Line

Calling Ports

LYME BAY

CCA

Krishnapatnam, West Port Klang , Singapore, Cailan- Busan, Ulsa....

MSC LETIZIA

MSC

Colombo, Damietta Piraes Rotterdam, London

10-9

11-9

GIX

CAPE MORETON

PRD

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

11-9

12-9

MIDAS

AS PATRICIA

MSK

Nhava Sheva, Mundra, Port Qasim, Singapore

12-9

13/09

IIX

YARAN

IRI

13/09

14/09

MECL

MAERSK ATLANTA

MSK

14/09

15/09

MWE

MAERSK BROOKLYN

MSK

16/09

17/09

MESAWA

CMA CGM JAMAICA

Haldia, Paradip

CCA

Krishnapatnam, West Port Klang , Singapore, Cailan- Busan, Ulsan....

16/09

17/09

IEX

XIAMEN

SBG

Colombo, Damietta Piraes Rotterdam, London

16/09

17/09

INDUS

MSC GIULIA

MSC

Colombo, Damietta Piraes Rotterdam, London

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.

Maersk Etienne's Indefinite Delay

M

Mumbai

Port Wings News Network aersk Tankers is speaking out about the ongoing situation aboard the product tanker Maersk Etienne, which is stranded off the coast of Malta with 27 rescued migrants on board. One month ago, the vessel responded to a rescue request from the coordination center in Malta, but Malta will not allow the vessel to dock and complete the evolution. The duration of the stay sets a new record for migrants held aboard a commercial ship, according to the vessel's operator.

“Maersk Etienne is a chemical tanker which is not equipped neither constructed to keeping people onboard. This is a cargo vessel - the crew are professional seafarers and none of them is qualified for medical assistance or for care for rescued people,” said the vessel's master, Volodymyr Yeroshkin, in a video appeal released Friday. “We require immediate assistance. These people have to disembark as soon as possible."

Maersk Etienne has little passenger

berthing, and the rescuees have been housed in impromptu arrangements, some of them on deck. The tension has grown on board, according to Yeroshkin, and the crew is smaller in number than the migrants.

Maersk Tankers' technical director, Tommy Thomassen, confirmed Thursday that the Maersk Etienne took on the rescue at the request of the Valletta Maritime Rescue Coordination Center in Malta, despite the Maltese government's assertions that it had not initiated the action.

"The company I represent has always done its duty: we don't drown people. But we thought that the situation would be resolved in a few days. We never thought we would stay like this for a month," Thomassen said.

Thomassen reported that diplomatic efforts to resolve the situation have not produced much in way of results. "We will always save people. I assure you. That's what every decent shipping company must do . . . But now we expect the authorities to do their duty too. As we did," he said.

Kakinada Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

13/09

14/09

KAK>CMB

OEL SINGAPORE

SV036R

SAMSARA

Halida, Colombo

APM Terminal - Mumbai ETA

ETD

Service

Vessel Name

15/09

16/09

CWI

14/09

15/09

13/09

Voy

Agent/Line

Calling Ports

AKINADA BRIDGE

GLD

Pipavav, Hazira, JNPT, Jebel Ali, Salalah, Port Said, Mersin, Ambarli Port, Izmlt Korfezi, Novorosslysk

CIX

ITAL LUNARE

EGI

Jebel Ali, Mundra, Hazira, Nhava Sheva

14/09

CIX3

BERNADETTE

HLI

Jebel Ali, Mundra, Hazira, Nhava Sheva

10-9

11-9

MINA

CSAV TYNDALL

MSK

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

12-9

13/09

FM3

BREMEN BELLE

MSK

Pipavav, Hazira, JNPT, Jebel Ali, Salalah, Port Said, Mersin, Ambarli Port, Izmlt Korfezi, Novorosslysk

10/09

11/09

UIG

SAFEEN ORYX

BTL

09/09

10-9

NMG

OEL JUMEIRAH

SEC

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

12/09

13/09

ASX

BREMEN BELLE

TWF

Jebel Ali, Mundra, Hazira, Nhava Sheva

10-9

11-9

FM3

SAFEEN ORYX

OCL

Pipavav, Hazira, JNPT, Jebel Ali, Salalah, Port Said, Mersin, Ambarli Port, Izmlt Korfezi, Novorosslysk

Bharat Mumbai Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

08/09

09/09

CIX

HYUNDAI PARAMOUNT

L0581

HMM

HZA, NGB, PUS, MUN, KHI, SHK, SIN, DCB, PKG, SHA, KAN

10/09

11/09

ADHOCM ( HIMALAYA )

MSC MARIA SAVERIA

L0707

MSC

MUN, KAC, GIT, SIE, FXT, RTM, HAM, ANR, SLL

11/09

12/09

SWAX

EMIRATES ASANTE

L0716

ESA

MUN, DAR, JEC, MBA, JEA

11/09

12/09

EPIC2

PARIS EXPRESS

L0678

HLI

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

14/09

15/09

CIX

HYUNDAI GOODWILL

L0733

HMM

HZA, NGB, PUS, MUN, KHI, SHK, SIN, DCB, PKG, SHA, KAN

DAKSHINBHARATH GATEWAY TERMINAL / Tuticorin ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

8-9

9-9

BOX

MV.OEL SHARVAN

20160S

BTL

COLOMBO, TUTICORIN,COLOMBO

9-9

10-9

CTS

MV.VLADIVOSTOK

148S

FAR SHIPPING

COLOMBO, TUTICORIN, COLOMBO

20711

XCL

COLOMBO, TUTICORIN, COLOMBO

10-9

10-9

TUX

MV.ANTON SCHEPERS

11-9

12-9

BOX

MV.OEL SHARVAN

20161S

BTL

COLOMBO, TUTICORIN, COLOMBO

12-9

13/09

CTS

MV.VLADIVOSTOK

149S

FAR SHIPPING

COLOMBO, TUTICORIN, COLOMBO

VCTPL, Vizag ETA

ETD

Service

Vessel Name

8-9

9-9

FME

9-9

10-9

12-9

Voy

Agent/Line

Calling Ports

XIN CHI WAN

COS

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

CCG

VARADA

SIM

Cochin, Nhava Sheva, Mundra...

13/09

IEX

AL MANAMAH

HLL

Colombo, Damietta Piraes Rotterdam, London

13/09

14/09

CVK

MSC JANIS 3

MSC

13/09

14/09

MDM

BOMAR FULGENT

WHL

Colombo

14/09

15/09

CCG

MOGRAL

SIM

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

15/09

16/09

CCG

BOMAR RADIANT

SIM

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

16/09

17/09

CHX

KOTA LATIF

MSK

Port Elizabeth, Durban, Port Louis, Jebel Ali, Mundra...

Sep. 9th - 15th Issue

Chabahar Port: India Scraps $29.8-M Crane Deal With China’s ZPMC Mumbai

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Port Wings News Network ndia has culled a $29.8 million contract placed three years ago with Chinese port crane maker Shanghai Zhenhua Heavy Industries Co Ltd (ZPMC) for buying four so-called rail-mounted quay cranes (RMQCs) to be installed at Chabahar port in Iran as the government hits back at Beijing with more economic restrictions in the wake of the border dispute between the two countries, reports BusinessLine.

India Ports Global Ltd, the entity formed to develop and run the Indiafunded Chabahar port, has floated a fresh tender to buy four new post Panamax RMQCs of 65 tonnes capacity each, a top government official said.

While the tender has not specifically barred Chinese crane makers such as ZPMC — the world’s largest port crane maker — from participating, the government official said the bidding process will follow the public procurement rules framed by the government on July 23 that virtually shuts out Chinese firms.

The new rules will apply for the crane procurement tender as the

Chabahar port project is funded by India.

Delay in construction The contract for the quay cranes ordered at ZPMC was scrapped as the crane maker delayed construction on the gears, citing reluctance by foreign banks to open letter of credit that assures payment to the supplier despite a sanctions-waiver given by the US to the Chabahar port project.

ZPMC, according to the official, was also “reluctant” to supply the cranes particularly in view of the on-going border and diplomatic tensions that has led India to impose restrictions on Chinese suppliers and ban many mobile applications (apps).

“ZPMC won’t like Chabahar to come up because they have built Gwadar port in Pakistan which is just 90 km away,” the official said.

The July 23 order on public procurement has “implications” on sourcing gears from China. “The wordings of the order have been so carefully done, Chinese suppliers are not pin-pointed. But, definitely, Chinese suppliers will not be allowed to participate and they will not give any stuff for Chabahar port,” he said.

“ZPMC was also looking for a way out by dragging things and we were also not too keen to continue with them,” the official said. “There were lot of risks involved in going ahead with ZPMC,” he said, adding the scrapping of the deal “did not entail any financial liability”.

The delay in erecting cranes has de-railed the official start to the tenyear deal. India and Iran, though, have decided to start operations even in the zero period.

Best way forward India also decided to walk out of the ZPMC crane deal since this was seen as the best way forward to procure RMQCs and expedite the project, without getting caught in dollar financing issues emanating from the sanctions imposed by the US on the Persian Gulf nation over its nuclear program.

In the tender, the bidders have to quote their offer price for the cranes in Euros or Indian rupees.

“European countries have so far not supported the US at least on the Iran sanctions issue,” he said.

The successful bidder will have to deliver the cranes within 16 months from the date of opening of LC.

Allcargo Mulls Europe Listing For Global Business Mumbai

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Port Wings News Network llcargo Logistics Ltd. is considering listing its international business on a European exchange, according to people familiar with the matter, as it weighs a proposal to give up its listing at home, reports Bloomberg.

The Mumbai-based integrated logistics company is exploring listing venues including London for its international operations, the people said. The company may seek a new listing as soon as next year, they said, asking not to be identified as the matter is private.

Allcargo is betting the international operations would receive a higher valuation on an overseas exchange, the people said.

The company could seek to value

the business at $800 million to $850 million in an offering, said one of the people.

Deliberations are ongoing and the company could decide not to proceed with an overseas listing, the people said. A representative for Allcargo declined to comment.

The logistics company’s majority owners, including Chairman Shashi Kiran Shetty, proposed delisting from Indian exchanges in a letter last month, saying that the move would improve operational flexibility and streamline the company’s ability to meet financing obligations.

Allcargo’s board appointed local investment bank Inga Ventures Ltd. to conduct due diligence on its delisting proposal on Aug. 27, and plans to review the bank’s report in

a meeting Saturday, according to an exchange filing.

The company was founded in 1993 and has more than 300 offices in over 160 countries including Belgium, China, Peru and the U.S., according to its website. Allcargo’s international operations include ECU Worldwide, formerly known as ECU Line, which offers less than container load consolidation services.

Allcargo received about 83% of its revenue in its 2020 financial year from outside India, according to Bloomberg calculations based on the annual report. Nearly a quarter of revenue outside the firm’s home country came from the Far East region, at 17.6 billion rupees ($240 million), compared to 12.6 billion rupees in India.

First Container Train from China Sent to TLC Bely Rast Through Grodekovo Border Crossing Chennai

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Port Wings News Network he first single-destination train made up of 50 forty-foot containers from the city of Shenyang in the Chinese province of Liaoning passed through the Grodekovo border station (Far Eastern Railway) to the Bely Rast terminal and logistics center (Moscow Oblast). The intermodal delivery for container cargo from China through the Suifenhe (China)Grodekovo (Russia) railway border crossing is being carried out by the FESCO transport group.

The monthly volume will be 200 TEUs. The total transportation time will be 14 days (it would take over 45 days by sea).

The first regular container train from China arrived at the Bely Rast terminal and logistics center on July 29 in the presence of Russian Minister of Transport Yevgeny Dietrich and General Director and Chairman of the Board of Russian Railways Oleg Belozerov. The train had travelled from China through Mongolia and the Russian border station of Naushki. Its average speed in Russia was 1,300 km/day; it traveled by rail to TLC Bely Rast in just 4.5 days.

Regular container traffic is possible thanks to the launch of the first TLC Bely Rast complex.

It includes a container-piggyback terminal with a processing capacity of up to 275,000 TEU per year, a complex of universal distribution

warehouses, and an inert-cargo terminal. The terminal has three loading and unloading railway tracks with a length of 1050 m and a container-storage warehouse with a design capacity of 3,100 TEU. An infrastructure of intraterminal roads and a parking lot for trucks was built and it has a building to accommodate employees of the TLC and customs infrastructure.

LLC Bely Rast Terminal and Logistics Center is a joint venture between LLC RZD Terminal (51%) and the Liaoning Port Group (49%).

This enterprise includes a container and piggyback terminal with a capacity of up to 275,000 TEU per year, a complex of distribution universal warehouses, and an inertcargo terminal.

7

NEWS - BITS Taman and Zarubino projects to be excluded from comprehensive plan for upgrading and expanding core infrastructure

Dry cargo area project of Taman port and Zarubino port are to be excluded from the comprehensive plan for upgrading and expanding core infrastructure, IAA PortNews correspondent cites Andrey Lavrishchev, General Director of FSUE Rosmorport.

According to him, these projects have not been shaped and structured properly to comply with the applied criteria.

The head of FSUE Rosmorport says the Taman project currently number only one investor Matallinvest, which is not enough to implement the project. “If more investors appear we will support them”, emphasized Andrey Lavrishchev.

At the same time, the comprehensive plan for upgrading and expanding core infrastructure can include the Daltransugol project in Muchke bay (expansion of the terminal’s current capacity of 24 million tonnes with 16 million tonnes per year).

Oil cargo shipments from Russia’s Baltic Basin ports fell to 72.5 million tonnes in 1H’20

A PortNews’ Analytical Department says that oil cargo shipments from Russia’s Baltic Basin ports fell to 72.5 million tonnes in 1H’2020. According to the statistics, handling of crude oil fell by 11% to 34.9 million tonnes while handling of oil products increased by 13% to about 37.6 million tonnes.

Thus, turnover of oil products exceeded that of crude oil with the previous year showing a different result. Oil handling in Ust-Luga fell by 14%, in Primorsk – by 10%.

Meanwhile, handling of oil products by Big Port St. Petersburg has increased by a quarter with the same increase demonstrated by oil products segment in Primorsk. Turnover of oil products in Ust-Luga grew by 6%, in Vysotsk – by 1%.

The volume of shipments was affected by the global oil market situation, tax maneuver and filling of oil storage tanks worldwide. In the foreseeable future, turnover of oil cargo in the Baltic Basin can be affected by the situation in Belarus and the plans of country's leadership to redirect its cargo flows to the ports of Russia.

Estonia’s first hybrid ship Tõll operates between Muhu and mainland Estonia Starting from September 2nd, passengers on Virtsu-Kuivastu ferry line between Muhu and mainland Estonia is served by TS Laevad, a subsidiary company of Port of Tallinn, ferry Tõll which has been converted into the first hybrid passenger vessel in Estonia. Its batteries allow from now on partial travel on electricity, which reduces the amount of diesel used and minimizes air pollution, the Port of Tallinn says in a press release.

TS Laevad operates regular ferry traffic between Estonia’s major islands Saaremaa and Hiiumaa and the mainland. TS Laevad shipyard includes five ferries, of which Tõll, Piret and Regula operate the Virtsu-Kuivastu line and Leiger and Tiiu the Rohuküla-Heltermaa line.

The batteries for the first hybrid voyage were started by the Minister of Economy and Infrastructure Mr. Taavi Aas, the chairman of the supervisory board of TS Laevad Mr. Valdo Kalm, and the chairman of the management board of TS Laevad Mr. Jaak Kaabel.

The chairman of the management board of TS Laevad Jaak Kaabel noted that the retrofitting of Tõll is the next step in improving the environmental friendliness of the Estonian ferry sector, to which the company has paid increased attention over the past years. “For several years now, we have been working to completely eliminate the use of fossil fuel on ferries in the Väinameri Sea area and achieve the zero-emission goal. The conversion of Tõll into Estonia’s first hybrid RoPax vessel is an important step towards this direction,” said Jaak Kaabel, adding that if the partially battery-powered solution proves efficient and justified, other new ships of the company will follow suit.

CUSTOMS EXCHANGE RATES Notification No.84/2020 (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 04th Sep. 2020

RATE (INR) Import Export 54.85 200.60 57.10 10.90 11.85 88.20 9.60 247.65 50.85 8.40 99.35 20.75 20.15 54.70 4.50 8.55 81.90 10.20 20.60 74.10 70.25 6.35

52.50 188.25 55.05 10.55 11.40 85.05 9.25 232.00 48.55 8.10 95.95 19.50 18.90 52.85 4.20 8.25 78.70 9.60 19.30 72.40 67.65 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

8

DNV GL Awards GASA to Hyundai Heavy Industries for Centreline Oil-tight Longitudinal Bulkhead

DP WORLD, CDPQ Expand Global Investment Platform To US$8.2 Billion Chennai

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Port Wings News Network P World, a global infrastructure-led supply chain solutions provider, and Caisse de dépôt et placement du Québec (CDPQ), a global institutional investor, have announced the expansion of their ports and terminals investment through a new commitment of US$4.5 billion (CA$6 billion), that will increase the total size of the platform to US$8.2 billion (CA$ 10.6 billion). DP World holds 55% share of the platform, and CDPQ the remaining 45%.

Since its launch in December 2016, the platform has invested in 10 port terminals globally and across various stages of the asset life cycle.

The enhanced platform will continue to target assets globally, but with an increased scope to broaden its footprint in existing geographies, as well as new regions such as Europe and Asia Pacific. The investment platform will pursue its deployment and diversification objectives by expanding across a wider part of the integrated marine supply chain, such as logistics services linked to terminals.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: "The partnership between DP World and CDPQ has been very successful, and we have benefited from each other's

expertise. The opportunity for the port and logistics industry is significant and the outlook remains positive as consumer demand triggers major shifts across the global supply chain. Best-in-class, well connected ports and efficient supply chains will continue to play an active role in advancing

global trade and cultivating the business environments closest to their operations. Alongside CDPQ, a steadfast partner whose longterm vision we share, we look forward to working together on new investments that will connect key international trade locations worldwide."

Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, said: "Building on the success of the first collaboration with our strategic partner, DP World, a world-class

Sep. 9th - 15th Issue

Chennai

leader in ports and marine terminals, the enhanced platform will seek investments in high-quality port and terminal infrastructure assets that will help design the future of smart trade and logistics. As we take the next step in our partnership, we will further diversify our geographic reach and look to seize new opportunities in a sector that, even during a uniquely challenging period, is driven by long-term fundamental trends."

D e s p i t e the impacts of COVID-19 and shifts in the global supply chain landscape, the ports sector has demonstrated a fair degree of resilience. Through recent strategic investments in automation and digital technology, DP World has strengthened its logistics capabilities, combined with their maritime services operations and worldwide network of ports and terminals, to provide a full suite of end-to-end smart supply chain solutions. As such, DP World is well positioned to face the current challenges experienced by the industry and to continue to provide innovative solutions to their customers worldwide.

D

Port Wings News Network NV GL has presented Hyundai Heavy Industries (HHI) with a general approval for ship application (GASA) for a new concept of very large crude carriers (VLCCs) with a centreline oil-tight longitudinal bulkhead. The new design will reduce potential damage and operational risk by featuring a simpler structural arrangement, loading patterns and piping arrangements.

Vidar Dolonen, DNV GL Regional Manager for Korea & Japan, presented the certificate to Seung Ho Jeon, Executive Vice President of HHI, in Seoul.

The new VLCC with a centreline longitudinal bulkhead design concept was developed by HHI, marking a world first. The concept introduces a single centreline design with two rows of cargo tanks, resulting in seven pairs of tanks and one additional pair of slop tanks.

The main benefit is an improvement in the operator’s convenience in terms of cleaning, inspection and maintenance by simpler structural, loading and piping arrangements, as well as the reduction of piping systems and instruments due to a smaller number of cargo tanks. Furthermore, the fuel consumption was improved

by developing new design lines for the new VLCC with a centreline longitudinal bulkhead.

Seung Ho Jeon stated: "Through joint development projects with DNV GL, we aim to develop new technologies which enable our clients to comply with environmental regulations and navigate their vessels in a safe and efficient way."

"We believe the recent GASA approval is opening up a new era of VLCC designs which significantly strengthen the competitiveness of these HHI built ships," Seung Ho Jeon added.

Vidar Dolonen said: “The purpose of DNV GL is to contribute to the construction and operation of smart and safe ships. We are pleased to have collaborated with HHI in this exciting project and we wish the shipyard further success with its new VLCC design."

As part of the GASA scope, DNV GL carried out a full structural verification and feasibility study in accordance with classification rules and harmonized common structural rules (CSR). The details were confirmed by a fine mesh analysis and a fatigue analysis. In addition, the sloshing and local vibration analyses for cargo tanks were reviewed in a comparative study to enhance the structural reliability of this new VLCC.

Antonov Airlines delivers Airbus Defence and Space’s newest satellite for its inaugural launch with SpaceX

A

Hindussthan Marine Engineering Works Ship Building | Ship Repairs | Floating Dry Dock Bulk Cargo Handling Jetty Shipyard: Dhargas, Pudupattinam Village, Sirkhazhi Taluk, Nagapattinam Distict, Tamilnadu 609 101, India Tel: +91(4364) 268699 Fax: +91 (4364) 268499 E-mail: hindussthanship@gmail.com

1, Old Sical Plot, Fire Fighting Road, Inside Chennai Harbour, Chennai - 600009. Tamilnadu, India Tel: +91 (44) 25380055 / 25395799 Fax: +91 (44) 25393717 hindussthan@yahoo.co.in / hindussthan@gmail.com

Web: www.hindussthan.in

Chennai

Port Wings News Network ntonov Airlines has partnered with Bolloré Logistics to deliver Airbus Defence and Space’s newest satellite, ANASIS-II to the USA. It was carried from Airbus Defence and Space’s facility in Toulouse by one of the airline’s seven AN-124-100s.

The direct flight landed at Florida’s NASA Shuttle Landing Facility to deliver the satellite for its first launch with SpaceX. The satellite container used to deliver ANASISII measured eleven metres in length and weighed 18 tonnes.

Including launch equipment, it was part of an overall payload of 36 tonnes. The operation gave Antonov Airlines and its partner the opportunity to trial its new lightweight, low profile loading equipment. The equipment is the only type of its kind and has been specially designed and manufactured by Antonov Company to transport almost any satellite container.

Commenting on the flight and the successful trial loading operation, Andriy Blagovisniy, Antonov Airlines Commercial Director, said: “We thank our valued partner Bollore Logistics for trusting Antonov Airlines with such responsible air transportation, which continues our long-term cooperation.

The successful and smooth performance of this flight was the result of well-coordinated teamwork between all parties involved.”

Yorann Marc, Project Department Manager for Bolloré Logistics in Toulouse, which organised the shipment on behalf of Airbus Defence and Space, said: «Once again Antonov Airlines demonstrated its high technical level and I am always confident in their capacity to move safely our most sensitive cargo in due time. Bollore is proud to have reliable partners like Antonov Airlines for common successful highly specific transportations».

The special l o a d i n g equipment designed by Antonov Airlines was used for loading of the Airbus Defence & Space’s satellite into AN-124-100 aircraft.

Antonov Airlines specializes in the transportation of outsized and project cargo worldwide using its fleet of seven AN-124100 “Ruslan” aircraft with up to 150 tonnes payload, its 60-tonne payload AN-22, and its unique 250-tonne payload AN-225 “Mriya”, which is the largest aircraft in the world, as well as smaller AN-74 and AN-26 aircraft.

More than 30 years after launching as the first company to offer the AN-124-100 commercially, ANTONOV Airlines continues to deliver air cargo solutions across the aerospace, defence, energy, humanitarian, industrial, automotive, and oil and gas sectors.

Antonov Airlines is a division of Antonov Company, headquartered in Kyiv, Ukraine, and a Ukrainian state-owned enterprise, which designs, develops, produces and maintains the AN aircraft.

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.