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Shipping, Marine & Ports World

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Shipping, Marine & Ports World

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2/1/2014 11:32:24 AM

[CONTENT]

Contents

Interview 8 ‘Relaxation in cabotage for all Indian ports

is must’ Features

14 Surviving Against Tide

- Anand V Sharma

18 Wave-in-deck Loading of Offshore Structures

-Cdr Balakrishnan G Nair

22 Corrosion Management: An Iceberg for

Indian Shipping Industry - M Valliappan

25 Maritime Development: A Dream Agenda

-Cmde M Jitendran News Features

27 Cabotage Policy in Development of Coastal

Shipping - Rakesh Roy 29 Incentive Scheme to Boost Coastal Cargo - Rakesh Roy

| Dec 2013 - Jan 2014

Freight Watch 31 Freight Watch – November to December 2013

Marine Archeology 33 Of World War II Submarine Discovery

News 42 Indian News 50 Foreign News 54 Marine Tech 58 Book Review

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[INTERVIEW]

‘Relaxation in cabotage for all Indian ports is must’ Port Pipavav, a successful public-private enterprise, is emerging as an important gateway port on the West Coast of India for containers, bulk and liquid cargo. Prakash Tulsiani, MD, APM Terminals Pipavav, talks to Supriya Oundhakar about necessity of relaxation in cabotage law for all Indian ports, port’s performance despite recession, factors hampering investments in port sector and many more. He says that the phenomenal growth number at ports like Singapore, Port Klang and Tanjung Pelepas cannot be replicated in Indian ports without transhipment volumes, and in order to do that a relaxation on cabotage for all Indian ports is a necessary first step. Despite having a huge coastline, Indian port sector has not been able to scale the global shipping map as compared to South-East Asian ports. Can you please comment on the factors, which led to dismal growth of Indian port sector?

Prakash Tulsiani

MD, APM Terminals Pipavav

The flip side of continuing with cabotage law is that we end up protecting an Indian flagged fleet of container vessels which are even less than 20 having 2000 TEUs capacity and presently serves a negligible amount of India’s containerised trade. Given the scale that shipping fleets across the world are augmenting their capacities with 18,000 TEU vessels. The current Indian flagged fleet is outdated and will continue to require state patronage at the expense of the entire Import Export Trade of India.

8 | Pipavav.indd 8

We have to consider the following facts to put this in context: • The container trade, the prime driver of global trade, was born in 1956 and took off in the 1970s and skyrocketed in the 1990s. • The turn of the millennium saw China become the factory of the world. • Ports in South East Asia are geographically well located on the main East – West Trade routes and have been trading outposts since colonial times. They have been building port capacities over time and have relied on them to drive their economies. • India opened up to foreign trade post 1991 reforms and was previously an agrarian economy. • Until 1998, ports in India were controlled by the Government; private ports starting with APM Terminals Pipavav (Gujarat Pipavav Port) came on the scene in 1998. • The explosion in global trade has seen vessel sizes increasing at a phenomenal pace since the 1990s from 4000 TEUs to 18,000 TEUs today – sparking an arms race of sorts in building larger ports, dredging deeper and employing bigger cranes. • India had to build its manufacturing base starting 1991 - the ports to support this trade – and the road and rail infrastructure to support the ports, all at the same time while the competition globally was upping the stakes year on year. • The policy regime was conservative to start with and remnants of protectionist policies like cabotage have not helped.

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[INTERVIEW] Considering the above, we have achieved a lot in a short period of time, the policies and projects in the pipeline are encouraging for the future. That said the phenomenal growth number at ports like Singapore, Port Klang and Tanjung Pelepas cannot be replicated in Indian ports without transhipment volumes, and in order to do that a relaxation on cabotage for all Indian Ports is a necessary first step. Despite the recession, APM Terminals Pipavav has recorded five fold growth in its profit this Quarter. Can you please appraise us the factors which have led to the outstanding performance? The profits are a reflection of the increasing volumes, in turn a reflection on the value proposition APM Terminals offers to its customers:

Land acquisition and TAMP are major concerns, which are being addressed. Land side infrastructure like road and rail still remain a concern. National highway infrastructure is unable to keep pace with the burgeoning road traffic. Due to lack of development rail routes are congested. So, the development of Delhi – Mumbai Freight Corridor is one of important infrastructure elements that need to be fast tracked as soon as possible.

• The best rail connectivity to North and West India, • Double Stack High cube Capabilities, • The best handling facilities with the addition of the RMGC yard to handle rail containers, • Competitive tariffs, • The best systems and customer support • CFS and Warehousing facilities Our bulk volumes have risen in Q2 and Q3 compared to the same period in 2012. Some of the factors are the commissioning of the covered warehouse for fertiliser storage and the commissioning of the automatic bagging and wagon loading systems. The reduced interest cost on loans is also a contributing factor in this quarter’s results. All of the above factors have

APM Terminals Pipavav Port

10 | Pipavav.indd 10

| Dec 2013 - Jan 2014 2/1/2014 11:46:34 AM

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[INTERVIEW] contributed to an evolved ecosystem at APM Terminals Pipavav, which has been built over time and is now reaping the rewards. Last year Cabinet relaxed cabotage Law for Vallarpadam terminal allowing foreign-owned and foreign registered container ships to carry cargo between Indian ports. Do you expect the Govt should give such relaxation in cabotage law to other Indian Ports also? If ‘yes’, how will it help to boost Indian Shipping sector? Approximately 70 per cent of the 10 million TEUs of containerised trade in India pass through the ports in Gujarat and Maharashtra. This is an attractive base cargo for shipping lines. With a relaxation in cabotage they can plan their networks in such a way so as to make ports in Gujarat and Maharashtra their hubs instead of transhipment ports abroad of which any one of them has the base cargo potential as of Indian ports and instead they rely on servicing Indian cargo transhipment. This will help the trade in India with larger vessels calling on Indian Ports - the economies of scale that will make their way back to the importer/exporter and make them more competitive vis-a -vis other countries. Indian exports and imports will not spend time idling at transhipment ports abroad. Instead more frequent and direct services will emerge and make Indian importers and exporters more competitive on their delivery schedules. Support infrastructure like a bunkering industry/ ship chandling/ ship repair to support the large number of vessels visiting the ports in India could become viable. Tank farms like the ones in APM Terminals Pipavav could be employed to store the bunker fuels. The availability of tanks and product vessels could encourage other products and industries to set up shop. The energy demand could bring in power plants in turn the power plants will ship in coal and the ports will invest in people and mechanisation making it even more competitive and eventually leads to developing a self-sustaining loop with the port as the pivot. The flip side of continuing with cabotage law is that we end up protecting an Indian flagged fleet of container vessels which are even less than 20 having 2000 TEUs capacity and presently serves a negligible amount of India’s containerised trade. Given the scale that shipping fleets across the world are augmenting their capacities with 18,000 TEU vessels. The current Indian flagged fleet is outdated and will continue to require state patronage at the expense of the entire Import Export Trade of India.

Ports in Maharashtra and Gujarat as well as ports in Tamil Nadu and Andhra Pradesh have a strong case for cabotage relaxation. The possibilities of the permutations and combinations multiply exponentially as more and more Indian ports receive cabotage relaxation. By not relaxing cabotage, we may forever give up on those possibilities and lose our volumes and edge to other transhipment ports in the region. What changes would you like to see in Govt policy on ports sector? The Government is doing extraordinarily well in building not only port capacity but also utilising that capacity. Sustaining profitability will rely on policies that look at the ecosystem as a whole. We would like to see the planning of industrial parks around ports, cabotage relaxation and a review of TAMP policies. Last but not least the connectivity via road or rail to the hinterland is of the utmost importance for development of ports sector in India. What are the hindrances, which are hampering foreign investment in the port sector? In such scenario, how do you envisage the growth of Indian shipping and maritime sector? Land acquisition and TAMP are major concerns, which are being addressed. Land side infrastructure like road and rail still remain a concern. National highway infrastructure is unable to keep pace with the burgeoning road traffic. Due to lack of development rail routes are congested. So, the development of Delhi – Mumbai Freight Corridor is one of important infrastructure elements that need to be fast tracked as soon as possible. Union Shipping Minister G K Vasan launched Maritime Agenda 2020, which included creation of port capacity of about 3200 MMT by 2020. What will be Pipavav port’s role in achieving the target? Can PPP model help to achieve the expected capacity? The Union Shipping Minister has done an exceedingly well in creating port capacity. There has been immense interest and activity in the ports sector in the recent past and the most heartening aspect of the policy direction is that it is forward looking. APM Terminals Pipavav will share the load of the Maritime Agenda 2020 and already has planned expansion of container facilities to 1.5 million TEUs and an additional 2 million MT of liquid bulk capacity will come on stream in the first quarter of 2014.

As per a report, even after relaxation in cabotage law, there are no global shipping lines to take advantage of this policy change. Why? 12 | Pipavav.indd 12

| Dec 2013 - Jan 2014 2/1/2014 11:46:34 AM

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[Feature]

SURVIVING AGAINST TIDE Indian shipbuilding is in turbulent waters after due to decline in its orderbook after witnessing a boom time in 2008. Many Indian shipyards having customized commercial shipbuilding infrastructure have to switch over to naval shipbuilding for survival due to overall global nature of shipbuilding industry. In this article, the author details the difficulties and risks involved for shipyards in shifting their focus from commercial shipbuilding to naval shipbuilding.

Customers Breakup Shipyards Commercial, 4% 16.6

Cochin, 16% PSU, 77%

Offshore, 20%

Others, 5% SCI, 6% ONGC, 4% Halul Offshore, 8% African Navy, 10%

51.6

Coast Guard, 35%

Pipavav, 47%

Coast Guard, 35%

L&T, 19%

Dempo, 1%

ABG, 21%

Bharati, 3%

Navy, 42% Indian Navy, 31% Private, 23%

Figure 1 Orderbook upto 2008 (INR 279 Bn)

A commercial shipyard, which has customized its infrastructure, manpower, and technical expertise as per commercial shipbuilding, would face large-scale underutilization of the same while building defence ships.

Authors: Anand V Sharma

Director, Mantrana Maritime Advisory Pvt Ltd., E: anand@mantrana.in

14 | Risk Assesment Shipbuliding.indd 14

hipbuilding, globally, is passing through a difficult time, and India is no exception. The industry, which was at peak of its cycle in early 2008 with mostly commercial orders, has witnessed a fall in newbuilding orders. There are several reasons such as oversupplied shipping market, all-time-low utilisation level of ships, poor outlook for growth in trade, etc. Present Outlook As the outlook of the industry is not buoyant, and owners do not see much appreciation in charter rates in the next 2 to 3 years, there is no incentive for ship owners to explore newbuilding activities on a large scale. The newbuilding orders placed on shipyards, globally, have fallen to less than 20 per cent by value vis-Ă -vis the share in 2007 and early 2008. This scenario is likely to stay for another 3 to 4 years. Due to global nature of shipbuilding industry, Indian shipyards are also affected by it on a very large

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[Feature] scale. Uncertainty of new orders and growth perspectives along with financial uncertainty has made things worse for the shipbuilding industry in India. In order to offset fall in business from commercial shipping, Indian yards have diverted their focus in building ships for the defence industry, which increases their overall risk exposure in the industry. Changing Business Focus Revival of a struggling company is more probable if it is in a good industry with better economic outlook. However, when industry itself is in a downward spiral, even a good company finds it difficult to survive. Compared to 2007, now, majority of the newbuilding orders placed on Indian shipyards are from the government. This constitutes newbuilding orders by the naval forces and other PSUs. The four prominent sources of newbuilding orders since 2009 for Indian shipyards have been Indian Navy, Indian Coast Guard, Shipping Corporation of India, and ONGC. All these four entities constituted more than 80 per cent of the orders placed on commercial shipyards in India in last 4 years. This is in contrast to the 2008 scenario when more than 90 per cent of the orders came from private sector mostly commercial ships including offshore and substantial newbuilding orders from international clients.

Customers Breakup Shipyards 0.3 10 15 6 13 40 21

Others, 0.1% HSL, 4% Tebma, 5% Chowgule, 2% Private, 96% Alcock, 5% Others, 38%

Offshore, 41%

Pipavav, 14% L&T, 7%

Navy, 4% Fredriksen ,3% 114

ABG, 41%

Indian Navy, 4% Commercial, 55%

47 6

Pacific First Shpg., 4% Rolldock B. V., 4% Precious Shipping, 5% Alba Maritime, 8% Reederei, 9%

Bharati, 17% Cochin, 4%

GoodearthMaritime, 3%

Essar, 14%

PSU, 4%

Figure 2 Order book placed between 2009 and 2013 (INR 118 Bn)

Business Comparison Shipbuilding

–

Commercial

Naval

All the private commercial shipyards in India had undertaken extensive expansion between 2004 and 2007. Expansion of these shipyards was focused on augmenting their capability to build large and more sophisticated commercial ships both in cargo and offshore segment. However, in current times, though the infrastructure expansion is complete, due to bad market, shipyards are now focusing more on newbuilding orders for smallersize ships, mainly in offshore and defence segments. 16 | Risk Assesment Shipbuliding.indd 16

The dynamics of shipbuilding in both the segments are totally different. Due to different technical and commercial aspects associated with defence shipbuilding, the risk associated with growth and revival of shipyards is far higher. The size of ships for Navy or Coast Guard is far smaller as compared to the infrastructure available at private commercial shipyards, which leads to large-scale underutilisation. Some of the over designed infrastructures at these shipyards are large-scale steel fabrication plant, material handling equipment, workshops associated with steel fabrication, etc. Unlike commercial shipbuilding, where a 100,000 DWT ship, costing USD 60 million, would consume more than 16,000 to 18,000 tons of steel, a defence ship, with similar value, would not require steel processing of more than 3,000 tons. Hence, there’s an infrastructure mismatch, considering cost breakup, when a shipyard designed for building large commercial ships instead undertakes defence shipbuilding. Commercial shipbuilding is steel dominated. Steel constitutes majority of the cost associated as material processing of steel by way of cutting, bending and assembling, etc. In defence shipbuilding, outfitting and armaments dominate the overall cost of ship fabrication. A commercial shipyard, which has customized its infrastructure, manpower, and technical expertise as per commercial shipbuilding, would face large-scale underutilization of the same while building defence ships. It would also face difficulty in executing defence orders. Some of the infrastructure and expertise required in executing a defence order was not required in commercial shipbuilding, and which, therefore, commercial shipyards lack. Hence, post order procurement, these shipyards would be required to develop them. Process Comparison Shipbuilding

–

Commercial

Naval

Right from conceptualization to delivery stage, after trial run, perspective of a commercial shipyard differs in case of defence ships and commercial ships. Processes, duration of tasks at each stage, etc, vary in both the cases. Naval shipbuilding has primarily been controlled by government-owned defence shipyards. Most of these orders have been placed on cost-plus basis in the past. The present newbuilding concept for Navy and Coast Guard are on fixed-cost basis. However, the mindset of Navy and Coast Guard towards the new realities of shipbuilding in India has not changed. This increases the risks for commercial shipyard intending to get into defence shipbuilding to mitigate slowdown in the overall shipbuilding market. In commercial shipbuilding, an established commercial shipping company takes around 3 months, from conceptualization to placing order shipyard. When a shipping company floats an enquiry, the

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[Feature] shipyard plans and prepares proposal, including costing, while working out the commercials for building a ship. The shipyard also collects commercials and delivery schedule of all the critical items. The equipment suppliers, at the time of providing their proposal, also give a timeframe for the validity of that proposal, which is never more than 6 to 9 months from the date they send the proposal. Here, time is of essence. If discussions and negotiations between a shipyard and a customer exceed these stipulated timeframes, then the proposals and delivery schedules of those critical equipment are no more valid. All the stakeholders in the commercial shipbuilding understand The present newbuilding concept for Navy and Coast Guard are on fixed-cost basis. However, the mindset of Navy and Coast Guard towards the new realities of shipbuilding in India has not changed. This increases the risks for commercial shipyard intending to get into defence shipbuilding to mitigate slowdown in the overall shipbuilding market.

this and, therefore, the essence of time is sacrosanct at all stages of the project, right up to the moment of signing between the ship owner and the shipyard. This is not the case in defence shipyard and Indian Navy. Here, as soon as the enquiry is floated, the shipyard submits its proposal following the same method it does in commercial shipbuilding. Now, the timeframe stipulated by Navy or Coast Guard in declaring the winner of the tender and also contract signing is indefinite. It takes months before shipyards are technically evaluated and moved to the next stage of price opening. Once the price is opened, as per guidelines, barring some exceptional cases, the order should be placed on the shipyard that quotes the lowest. However, at the time of price opening, prices of all the shipyards are declared along with the lowest one, but the contract is not signed at that stage. It takes few more months, even a year, when the shipyard is called for negotiation and is given the letter of intent. Hence, compared to commercial shipbuilding, where it takes around 3 to 4 months for contract signing from the enquiry date or conceptualization, defence shipbuilding could take more than one and a half year for the same. This, itself, disturbs shipyard’s whole project planning. At the time of building, there are several stages of approvals and discussions required, both for conceptual designing, engineering and construction of ships, which is not the case in commercial shipbuilding. In commercial shipbuilding, ships’ building methods and other processes are standardized. Interaction between the shipyard and the owner is non-existent, except for quality checks and timelines. For defence shipbuilding, the owner, which is Indian Navy or Indian Coast Guard, perhaps, does not take into account the economics of time while conceptualizing or

awarding the project. Therefore, the newbuilding process and delivery takes far longer compared to a commercial ship of the same value. This scenario is likely to adversely affect the commercial performance of any shipyard. Growth Outlook Comparison For a commercial shipyard, with limited infrastructure, the only growth option is to improve productivity and deliver more ships using the same infrastructure, where dry dock and slipway is the most critical of all. Hence, a commercial shipyard tries to optimize those resources and plans to deliver more ships from the same slipway or dry dock. This induces an upside growth for the shipyard. However, when a naval ship is being built, especially for Indian Navy, the timeframe for assembling and outfitting on the newbuilding berth and the outfitting jetty is far more compared to a commercial ship of same value. From a shipyard’s perspective, the infrastructure is blocked as any sophisticated naval ship takes at least 2.5 years on the building berth even at international shipyards. Sometimes, a shipyard feels it’s just in doing so as one naval ship is several times more expensive than a commercial ship. There is a fallacy in the whole concept. In case of a commercial ship, value addition by the shipyard, in proportion to the total value of ship, is far more compared to the naval ships. In case of naval ships, the bought-out item constitutes a disproportionately large share to the value of ship. Hence, the net earnings available from naval ship are far lower compared to commercial ship. Conclusion For a fixed-price contract, every delay at stages like technically evaluating the suitability of shipyard, the tendering stage, process approval at construction stage, or any other unforeseeable delay at shipyard at the execution stage leads to cost overruns. It is a misconception that commercial shipbuilders would have far better earnings by building naval ships instead. In case of India, private commercial yards were making more profits when they were focused only on commercial shipbuilding. After shifting their focus to naval shipbuilding, their profit margins dropped, and there have been inordinate delays in building these ships, which could even lead to blacklisting or cancelation of defence license. This could create a negative perception about the shipyard in the national and international shipbuilding industry, and also affect the shipyard’s ability to win commercial shipbuilding orders in future. Hence, switching focus of private commercial shipyard, and building defense ships at these yards whose infrastructure is customized to commercial shipbuilding, could be a very risky proposition and its fallouts could be far dangerous. Dec 2013 - Jan 2014 |

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[Feature]

Wave-in-Deck Loading of Offshore Structures Design approaches to offshore structures have evolved over the last century. Endeavor is made from time to time to effectively adapt these structures to their operating environment so that they are functionally available throughout their expected life. The understanding of the environment and the response of these structures to various loads, as well as analysis tools have undergone fine-tuning, even as the international norms concerning safety of these structures have become more demanding. During the last two decades or so, wave-in-deck loading on offshore structures has been acknowledged as an issue of concern to the offshore oil and gas industry. The article looks at theoretical and analytical aspects of wave-in-deck loading.

ffshore platforms are exposed to one of the most complex, hazardous environments during their life time compared to any other manmade structures. The table below broadly brings out some of the hazards faced by offshore structures. These are categorised into Insufficient Strength & Excessive Loading. While insufficient strength is the consequence of deficiencies in design, fabrication, installation or operation or on account of degradation, Excessive Loading is the outcome of environment, operation or accidental loads.

Cdr Balakrishnan G Nair

(Indian Navy, Retd) Sr. Principal Structural Engineer J Ray McDermott Engineering Services Pvt Ltd, Chennai E: balakrishnangnair@ymail.com Cause

Insufficient strength

Wave-in-deck Loads Among these loads, wave-in-deck loading has been acknowledged, during the last two decades or so, as an issue of concern to the offshore oil and gas industry. Seabed subsidence due to reservoir compaction is one of the reasons attributed for such structures getting exposed to wave-in-deck loading. According to Katrine van Raaij, the other prominent reason could be the occurrence of certain extreme environmental events, previously thought of as rare and hence not accounted for during the design in the absence of accurate data.

Hazard Source

Specific Hazard

Gross error in design, fabrica-tion, installation or operation

Insufficient design capacity, Fabrication error, Operational damage, Modifications

Degradation

Subsidence, Corrosion, Fatigue (due to: global cyclic loading, local cyclic loading, vortex induced vibrations, wave slam), Scour, Differential settlement Global overload due to: wave and current load, wave-indeck load, wind load, unexpected marine growth, ice and snow loads, earthquake loads

Environment Excessive load

Local component overload due to: wave and current load, wave in deck load, wave slam, vortex induced vibrations, wind load, unexpected marine growth, ice and snow loads, earthquake loads Worsening of wave climate

Operation

Deck load â&#x20AC;&#x201C; weight increase, Unsecured objects â&#x20AC;&#x201C; CoG shift

Accidental loads

Dropped objects, Ship impact, Explosion, Fire & heat, Aircraft impact, Iceberg impact, Submarine slide / Seabed slope instability

Hazards faced by offshore structures

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[Feature]

Schematic of Wave-in-deck Loading

Typically, for North Sea structures failure due to extreme environmental conditions probably can only be associated with wave impact on topside (Dalane and Haver, 1995; Haver, 1995). A vertical distance between the extreme surface elevation (including tide and storm surge) and the underside of the lowest deck, termed air-gap, of 1.5 meters has been widely recognised as a minimum requirement for fixed offshore structures. It is evident that the 1.5 meter requirement leads to an inconsistent level of reliability, due to different probability of air-gap extinction, among structures located in different areas of the world having different environmental conditions.

Wave crest inundating a jacket top-side

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[Feature] Requalification Existing platforms, which reach the end of their design life may require extension of service life. The desired extension of service life may create a need for requalification of the structure. Other circumstances can also necessitate a requalification process on an earlier stage in the design life. These could be seabed subsidence as stated above, increased topside weight or operational loads, revised environmental criteria, reduced capacity due to damage, corrosion or deterioration, better knowledge of material behavior or new information on soil properties obtained during driving of piles. A requalification process may also be needed as a consequence of structural damage caused by, for instance, extreme weather or boat impact. There is a real need for assessment of the wave-in-deck load effects on the structures under these cases. Wave-in-deck Forces In accordance with DNV-RP-C205, wave slamming may have both global and local effects. The impact of a massive bulk of water from a wave crest hitting the platform deck is a global load effect while wave slamming on a brace in the splash zone is a local load effect, the latter normally not influencing the global structural capacity. The following is a physical interpretation of the wavein-deck interaction by DNV-RP-C205, as observed for a wave crest hitting head-on on a simple box-type deck structure on a fixed jacket platform. It illustrates the main contributions to the global force identifying local/ global structural impacts and the time instants for maximum & minimum wave-in-deck forces.

acceleration. The slamming contribution is of short duration and drops to zero shortly after the initial impact (See fig).

deck girders

Typical configuration of under-deck girders

The fluid particles underneath the deck are accelerated in a jet-like flow when the wave crest hits the deck. The drag contribution remains reasonably steady as the wave passes the deck. The magnitude of the inertia contribution depends on the horizontal acceleration and the rate of change of the wetted vertical area. As the horizontal acceleration is zero at the crest and increases at lower elevations, the inertia term contribution is dependent on the immersion of the structure.

Normalized F(horiz) for smooth deck Vs Deck with multiple underdeck girders

Vertical and Horizontal wave-in-deck load

The negative water exit forces are due to the low pressure at the frontal wall caused by the vertical downward fluid velocity. The magnitude is dependent on the crest velocity and the immersion of the structure.

The horizontal wave-in-deck force has contributions from slamming, drag and inertia. Slamming and drag contributions are quadratic in velocity and governed by the high wave particle velocity in the crest. Inertia contributions are proportional to fluid particle

The vertical upward force is critical for local structural details because the force acts over a small area, leading to high local pressures. It is dominated by slamming forces, which is proportional to the wetted length times the wave particle velocity squared. As the wave runs along the underside of

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[Feature] the deck, the wave front causes slamming loads at each new location. The magnitude of the slamming load is largest at the inflow side and reduces moderately as the wave reaches the other side, resulting in a relatively wide global force peak. The global vertical impact force has its maximum when the wave crest passes the front of the deck, at the minimum (negative) air-gap. The local impact force has its maximum at a slightly earlier stage. The inertia force acts downwards as the wave passes by, since the vertical fluid acceleration in the crest is negative. During the initial stage of the wave cycle, the inertia term is small due to the small wet area, and it acts in opposite direction of the slam and drag forces. When the whole underside of the deck structure is wet, the inertia term is at its maximum due to added mass force.

Wave-in-deck forces influence an offshore jacket structure not

only by their magnitude, which is significant compared to the wave load on the jacket itself, but also because they alter the load

distribution in a manner that introduces high forces into relatively weaker parts of the structure such as the deck legs immediately below the deck.

At this instant, which is important for global effects due to the large exposed area, the crest has passed the centre of the structure and the vertical velocity has changed to negative, i.e. acting downward in the same direction as the inertia force. The vertical force at water exit is dependent on the wetted length of the structure and to a lesser degree on the impact condition and the immersion. Slamming is not defined for water exit. When girders are present, the flow is disturbed, which in turn reduces the wetted length and the magnitude of the vertical downward force. When assessing the structural resistance, it is important to consider the transient nature of the wave-in deck loads. It should be noted that negative pressure force during water exit means that the normal pressure is lower than atmospheric pressure, resulting in a downward force. ‘Effects’ of Wave-in-deck The above discussion brings out the complex loads that the wave-in-deck brings to bear on the offshore structure. Extreme waves may be associated with a storm surge reducing the air-gap and this effect needs to be taken into account prior to analysis of wave-in-deck loading. Large surface elevations on account of a worst combination of tide, surge and wave height can accentuate the adverse impact on the jacket structure.

Traditionally fixed offshore platforms are not designed to withstand the large forces generated by wave-in-deck loads. In that scenario, if a wave strikes the deck, the deck legs, which are not sized to transfer shear forces of this magnitude from the deck into the jacket, may be excessively loaded. In addition, large up and downward acting vertical loads may be introduced in the structure, further reducing the deck legs’ capacity to carry transverse load. This may be true even to the jacket legs. Thus, failure modes other than those considered during design can be governing for platforms exposed to wave-in-deck loads. The response of a typical jacket analysed for normal loading as well as wave-in-deck loading, the latter leading to larger levels of inundation, is presented below graphically. The plot indicates the enhanced stress levels as well as deformations in the legs and braces on account of higher inundation bringing out effects of wave-in-deck loading. As the water depth increases and the deck load increases accordingly, a larger part of the total force has to be transferred from the deck through the braces in the upper bay and down into the lower part of the jacket structure. These braces are originally not intended to transfer large wave loads, and will therefore represent the ‘bottlenecks’ when the platform is exposed to large wave-in-deck loads.

(a) Depth 75 m / inundation 0.25 m

Static collapse modes for different water depths and corresponding inundation levels

Conclusion Wave-in-deck forces influence an offshore jacket structure not only by their magnitude, which is significant compared to the wave load on the jacket itself, but also because they alter the load distribution in a manner that introduces high forces into relatively weaker parts of the structure such as the deck legs immediately below the deck. Therefore, if a jacket structure is likely to face seabed subsidence then it is worth considering wave-in-deck loads during design, since, a reduction in air-gap in foreseeable future is a distinct possibility. Also if opportunity is available, such as when a requalification for life extension of a jacket is taken up, it would be desirable to undertake a wave-in-deck analysis. Dec 2013 - Jan 2014 |

Balakrishna nair.indd 21

(b) Depth 81 m / inundation 5.88 m

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[Feature]

Corrosion Management: An Iceberg for Indian Shipping Industry According to Assocham analysis, 466 vessels of Indian fleet have crossed operational life of more than 20 years. These aged vessels need refurbishment, which involves whopping investments. Corrosion in ships is taking a toll on the industry. This article emphasises that efforts on minimising the life cycle cost through implementing corrosion control methods and appropriate integrity assurance programs is the need of the hour for Indian maritime sector. Ship hulls need protection against corrosion and the attachment of marine organisms such as algae and barnacles, known as biofouling that negatively affects the hydrodynamics of the hull, increasing drag and thus the necessary propulsive power. As well as increasing fuel costs up to 40 per cent this also necessitates regular visits to shipyards for hull cleaning.

M Valliappan

Corrosion Management Consultant We CAN Control Corrosion in India Network E: corrosion.management@gmail.com

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ndia envisages growth potential in shipping industry. The capacity expansion would be undertaken across cargo ships segment such as bulk carriers, tankers, etc. New building of ships is to be used for offshore oil & gas exploration, towage and coastal security. On the other hand, there is a greater shipping demand to deal with refurbishment of aged carriers. Industry analysis showed that over 41 per cent of Indian ships having crossed 20 years of operations leading to opportunities worth ` 20,000 crore in the shipbuilding and ship-repair industry sector. Ships older than 20 years require frequent and extensive repair and maintenance. This augurs well for the ` 7,300-crore worth shipbuilding industry, according to an analysis of Indian Shipping Fleet: Size, Capacity and Age Composition conducted by The Associated Chambers of Commerce and Industry of India (Assocham). It is said that India has a total of 1,122 ships in its fleet and 41 per cent of these, or 466 vessels, fall in the age group of 20 years and more. Considering that the average life of a shipping vessel is about 26 years, most of the existing vessels need to be replaced. An average cost of constructing a large vessel is about USD 100 million. Therefore, the size of this opportunity would be USD 3.3 billion. This whopping figure of refurbishment cost triggers the industrial community to explore the causes for failures. Although these opportunities are often linked with investment in this sector, this is not a good news for the life cycle analysis and material conservation. How do these failures happen? Corrosion of ship construction materials, the serious concern, often neglected by the industry is paving the way for greater impact in the life cycle cost. Marine fouling is another alarming area that fuels the parameters responsible for corrosion damage. These failures pose greater challenges to the ship owners not only in the materials part, but also leading to high demand for energy consumption and sizeable investment on environmental management.

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[Feature]

Shipbuilding is a basic metal industry and depends heavily on the use and forming of steel, at least with respect to the construction of larger ships, while smaller ships and boats can be constructed of aluminum, wood or composite materials such as fiberglass. Base materials include iron-containing steel (i.e. carbon steel) and non-iron-containing metals. Various grades of mild and high strength steel are used for the structural framework of most ships, while aluminum and other non-iron-containing materials are used for some superstructures and other areas with specific requirements for corrosion resistance. Ships are built for a specified design life. A design life is specified so that all calculations with regard to the ship’s construction are focused on the exposure of the structure to the risks involved. The new IACS Common Structure Rules are said to conform to the 25 year design life set by the IMO Goal Based Standards, however, they set much lower corrosion allowances than the ones set by the present 20 year lifetime rules. The ship’s actual service life may be longer or shorter depending on the actual operating conditions and maintenance of the ship throughout its life cycle. Experience has shown that the present corrosion allowances of even the more conservative classification society are marginally adequate for a 20-year design life vessel. For certain parts of the ship they are clearly inadequate. Ship hulls need protection against corrosion and the attachment of marine organisms such as algae and barnacles, known as biofouling that negatively affects the hydrodynamics of the hull, increasing drag and thus the necessary propulsive power. As well as increasing fuel costs up to 40 per cent this also necessitates regular visits to shipyards for hull cleaning. There are various forms of corrosion encountered in shipping industry. Many different types of destructive

attack can occur to structures, ships and other equipment used in sea water service. The effects of corrosion on naval operation have become more prominent as the acquisition of new equipment has slowed and more reliance is placed on the service of aging equipment. Recent studies in the US indicate corrosion is having an enormous impact on military costs, representing one of the largest through life cost components of military systems. These costs include the direct costs such as the manpower and material that are used to repair the damage resulting from corrosion and the indirect costs that were they to be quantified, would significantly increase the total reported costs, such as the vessel or systems degraded availability. Corrosion also poses numerous safety risks and is currently a source of major concern to platform managers. Generic corrosion susceptible areas: Outer hull; Ballast tanks; Fuel tanks; Fresh, grey, black water tanks; Bilges; Pipe work and cooling systems; Holds and storage tanks; Boilers and engines; Rudders; Propellers; Bearings; Flanges; Valves; Pumps; Void spaces; Sea chests; Stabilizers. Ship owners and operators recognise intuitively that combating corrosion impacts significantly upon vessels’ reliability, availability, through life costs and budget availability for replacement projects. It is highlighted that corrosion should be viewed as an acquisition risk and as such should be managed like any other risk by inviting procurers to consider at an early stage a number of corrosion prevention or reducing measures to mitigate the effects of corrosion and attendant through life costs. In order to maintain shipping capacity to serve seaborne trade, new ships have to be built to replace those scrapped. The cost of building, manning, operating, maintaining and repairing a ship throughout its life is borne by society at large through market mechanisms. A life cycle analysis indicated that ships built with sufficient corrosion allowances, truly adequate for the ship’s design life, have a lower life cycle cost per annum despite the fact that such ships would carry a slightly smaller quantity of cargo. It is argued in the related cost analysis that steel renewals required because of the degradation of structural steel, despite the commercially acceptable effective maintenance carried out at scheduled repair periods, cannot be considered maintenance. Designing ships that need to have main structural elements or extensive scantlings replaced during their design life, misrepresents the concept of “Design Life”. In some instances, it is not possible to prevent corrosion either by design or material selection and so management of the corrosion rate and its process must be considered. Depending upon the structure to be protected and its operating environment, there is a wide range of anticorrosion strategies that may be used. It is important to Dec 2013 - Jan 2014 |

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[Feature] ensure that the selected option is feasible and is available at the construction location. Corrosion prevention and control methods can include adding additional layers of protection such as paint or galvanising, the use of cathodic protection as sacrificial anodes or as an Impressed Current Cathodic Protection (ICCP) system. The effectiveness of each method will depend upon the local conditions and on the method itself.

It is argued in shipping industry that the implementation of a full-fledged life-cycle approach would not be an easy task. The process goes well beyond environmental management systems, which to some extent have been implemented by the industry, and demands greater information sharing and collaboration between input manufacturers, construction yards, shipping companies, ship owners and dismantling and recycling yards.

There is a greater challenge associated with implementing corrosion control methods, especially protective coatings. Construction, maintenance, and repair activities involve the generation and daily handling of a large number of toxic materials, fumes and fluids. It is essential that specifications, procedures and the various different steps in the coating application process (including, but not limited to, surface preparation) are strictly applied by the shipbuilder in order to prevent premature decay and/or deterioration of the coating system.

Although efforts on minimising life cycle threats are taken through various initiatives, the present status of collaboration between these sources raises questions on the effective utilisation of produced results. There are various stages of shipping industry project that call for involvement of corrosion management as depicted in the figure.

Corrosion also poses numerous safety risks and is currently a source of major concern to platform managers. Generic corrosion susceptible areas: Outer hull; Ballast tanks; Fuel tanks; Fresh, grey, black water

Corrosion Management appears to be an iceberg for shipping industry in India. If the efforts on minimising the life cycle cost through implementing corrosion control methods and appropriate integrity assurance programs are attempted at very slow nautical pace, we will end up in loosing the significant material resources and heavily impacting our marine environment.

tanks; Bilges; Pipe work and cooling systems; Holds and storage tanks; Boilers and engines; Rudders; Propellers; Bearings; Flanges; Valves; Pumps; Void spaces; Sea chests; Stabilizers.

Indian Scenario The Indian shipping industry in the current scenario has not been so proactive in embracing the use of environment friendly technologies. The industry has accepted and implemented all the technologies and practices, which have become mandatory to be used in the ships. There is large scope for voluntary use of some of the technologies that are friendly to environment and also help in bringing down the operating and maintenance cost of ship. However, the ship owners, in general, are not ready to try the newer technologies unless they find visible and tangible benefits of using them. The primary reason for this is the cyclicity of the shipping industry. Shipping companies first tend to expand to newer fleet and sometimes diversify on the gains they make from high charter rates. Rest of the time they try to make their ends meet. This does not leave much room for them to try newer technologies. Most of the companies are conservative in their approach. We see opportunities for establishment of academic and research institutions to effectively deal with developments in nautical science and engineering through various government schemes. But the effective dissemination of life cycle analysis of shipping industry, especially corrosion management, is questionable. 24 | Corrosion Management-an Iceberg.indd 24

References: 1. http://www.thehindubusinessline.com/industry-and-economy/ logistics/rs-20000cr-opportunity-for-industry/article5479118.ece, 19 Dec 2013 2. OECD Council Working Party on Shipbuilding (WP6), Environmental & Climate Change Issues In The Shipbuilding Industry, November 2010. 3. Marine Corrosion Explained, Marine Corrosion Forum. 4. International Journal of Maritime Engineering, Vol 152, Part A3, Jul-Sep 2010, pp. A119-A 134, 2010, The Royal Institution of Naval Architects. 5. White Paper: The Feasibility Of A Corrosion Resistant Ship, BMTDSL, UK 6. Guidelines for Maintenance & Repair Of Protective Coatings, International Maritime Organization, 2007. 7. Report on Indian Maritime Industry, Prospect for environment friendly technology Opportunities in Shipbuilding, Shipping & Maritime Education, Innovation Norway, October 2010. 8. Indian Shipping Industry: A Catalyst For Growth, Export-Import Bank Of India, October 2010

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[Feature]

Maritime Development: A Dream Agenda Despite launch of various maritime development plans in order to give much needed fillip to maritime sector ultimately giving thrust to the economy, these plans are not able to bring the Indian shipping sector on growth trajectory. In this article, as the nation is going to face elections in near future, the author has summarised wish list for the new leadership.

The infrastructure should be such that the entire country would be serviced for the next century smoothly. New facilitating laws on coastal areas and water front need to be enacted to enable clearing a lot of ambiguity businesses face today. Expansion of facilities and creation of new facilities should enable functionality to its full potential. Special independent professional bodies must be set up and they must work in close conjunction with the ministry to ensure synergy in development.

ot very long ago, during the last decade or so, we had a Sagar Mala programme and later a revised NMDP, a new maritime development plan, all aimed at giving the lagging maritime sector a huge boost to power the economy to greater heights. Sadly what we do not have well documented is what is the status now, what has been achieved, what has not been achieved and why; and in which direction the new government will head. None of the parties in the fray for the coming election ever talk about the sustained development of this sector as a must for economic growth. This is indeed depressing and perhaps highlights the damage that lack of good leadership in the sector can do to the long term growth prospects of this great country. The last three or four years have indeed been a huge downturn for the maritime industry in many ways. Low freight rates, cash strapped shipyards, unviable and low priced orders and unmanageable delays are all something we would all like to forget and get on to a new growth track. Here is a dream agenda, which the new leadership can consider: Young Visionary Leader

Cmde M Jitendran Chief Consultant Indian Register Of Shipping E: mjitendran@gmail.com

We desperately need a leader who will steer the industry out of the morass in a sustainable fashion with the support of all stakeholders in a constructive manner. He should be fairly young and dynamic and firm in his approach. He should be able to increase the awareness levels of the potential of this vital sector and steer it on a sustainable growth path beneficial to the country in the long run. He should be a man of great integrity and should be well versed with all elements of the sector and the underlying legislations. He should be able to debate and discuss various policy issues fearlessly in a transparent manner, reduce irritants for business segments and generate employment. He should be young enough to achieve long term goals without having retirement stare at him. Dec 2013 - Jan 2014 |

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[Feature] We should aim to at least carry 25 percent of our EXIM tonnage on Indian flag ships built in India before 2025. This will create huge employment opportunities. We should innovate on our coastal shipping ideas and seriously examine RO RO ships and barges, which can carry loaded trucks along our coast. We must innovate and think of creating new islands with dredged materials, which can in turn create new cities and promote cruise shipping.

Prioritise Maritime Infrastructure A fresh mind and new ideas have to be brought in to develop maritime infrastructure on a fast track and on a world class basis. All old ideas that have failed to deliver must be dumped. An all India view is required and a port-centric or state-centric development must be avoided. The infrastructure should be such that the entire country would be serviced for the next century smoothly. New facilitating laws on coastal areas and water front need to be enacted to enable clearing a lot of ambiguity businesses face today. Expansion of facilities and creation of new facilities should enable functionality to its full potential. Special independent professional bodies must be set up and they must work in close conjunction with the ministry to ensure synergy in development. Ports, channels, rail and road are national assets like Spectrum and therefore needs synergy in development and usage. Sufficient scope must be there in the scheme for enterprenuers to set up businesses smoothly with a long term vision. Impetus to Coastal Shipping Any number of roads or highways we construct is never going to be adequate for the future. In fact, Mother Nature has beautifully designed the coastline of Mother India to accept coastal shipping and decongest our coastal highways. Imagine a scenario where we have a large number of RO RO ships and barges embarking and disembarking various types of trucks along the coastline where they then go hinterland without any loading or unloading at any coastal station something like a stretch in the Konkan Railway. It will be a door to door truck service without using coastal highways. Oh so many carbon points too considering our noisy 26 | A dream Agenda.indd 26

and polluting trucks will not use their exhausts along the coast. Support Cruise Shipping With Multiplier Effect Despite having a long and beautiful coastline, picturesque island territories away from mainland, many Indians spend valuable foreign exchange to go abroad to enjoy cruise holidays. This is very unfortunate. The potential is phenomenal if a fresh approach is taken to this aspect of tourism. Last time somebody took an initiative and introduced it around Kochi, it died a premature death. It was reported that the taxation policies were killing. A more holistic view and debate is required as an entire new cruise shipping industry can come up in India with huge downstream benefits in many sectors. Create Manufacturing Opportunities & Innovate We should aim to at least carry 25 percent of our EXIM tonnage on Indian flag ships built in India before 2025. This will create huge employment opportunities. We should innovate on our coastal shipping ideas and seriously examine RO RO ships and barges, which can carry loaded trucks along our coast. We must innovate and think of creating new islands with dredged materials, which can in turn create new cities and promote cruise shipping. We must support manufacture, repair and maintenance of our own ships as this will boost the economy to unprecedented levels. Hope some of the above dreams will come true with the new leadership.

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[NEWS FEATURES]

Cabotage Policy in Development of Coastal Shipping C

oastal shipping has a significant role to play in supporting Indian economy to achieve this ambitious target. Maritime transport is an essential infrastructure for socio-economic development of the country, with carriage by sea constituting approximately 95 per cent of India’s international trade by volume, and 68 per cent by value. Despite having a great Maritime tradition and a long coastline of about 7517 km studded with 13 major and 185 Non-Major (Minor / Intermediate) ports, the potential of coastal shipping has not yet been fully exploited in India. Costal Shipping Share in Cargo Movement Modal share of inland cargo movement at present in India by coastal shipping merely 7 per cent as about 5055 per cent of the freight traffic is carried by road, 30-35 per cent is by rail.

Modal Share on Inland Movement

Coastal

National Ship Owners’ Association (INSA) considers the absence of absolute cabotage the major reason for low investments in coastal shipping and strongly opposethe move of relaxing the cabotage law arguing that this will not give a level playing groundfor Indian bottoms. With relaxation in Cabotage laws for container vessels and lash barges to attract foreign mainline vessels and decontrol of freight and passenger fares to promote coastal trade, the stringent Cabotage regulations are now being liberalized. Though Cabotage regulations are implemented to provide safe, reliable and cost-effective transportation options to shippers and assure maritime capability, the complete relaxation or repeal of such regulations could threaten domestic tonnage by opening the door for carriage of coastal cargo by foreign flag vessels. Cabotage Relaxation at Vallarpadam Facility The September 2012 cabinet decision on the cabotage relaxation at Vallarpadam facility was for only the foreign-owned & foreign-registered container ships out or in out or in through the international container trans-shipment terminal, or ICTT, run by Dubai’s DP World at Vallarpadam in Cochin port on the country’s western coast.

Rail Road Piipeline Others

Cabotage Role in Coastal Shipping Development Cabotage policy has an important bearing on the coastal shipping of a country. The potential growth of coastal shipping can be effectively tapped if suitable policy measures are adopted to improve commodity traffic through coastal vessels, at competitive costs. Under Indian Cabotage Regulations, movement of coastal trade is reserved for Indian flag vessels and operation of foreign vessels in Indian waters is restricted. The Indian

The primary objective of relaxation in the cabotage policy is for ICTT, Vallarpadam, to attract cargo destined for Indian ports, which are presently being transshipped at Colombo and other foreign ports. This initiative is expected to promote transshipment of Indian cargo from ICTT, Vallarpadam, and reduce dependence on nearby foreign ports. The relaxation in cabotage law is for a limited period of three years after which it will be reviewed by the government. But almost more than a year in passing the relaxation, none of the global container shipping lines has come forward to take advantage of this policy change. The lukewarm response from the shipping lines, though, hasn’t deterred more Indian ports such as Mundra port and Pipavav port in Gujarat, the container terminal at Vizag port in Andhra Pradesh and the upcoming Vizhinjam port in Kerala from seeking similar exemptions from the cabotage law. Dec 2013 - Jan 2014 |

India Plays around Cabatoge Law.indd 27

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[NEWS FEATURE] was not helped the growrh of trans-shipment containers, which was the main aim behind passing the law by the cabinet in 2012. It is true that the global economy, which is slowly picking itself up after one of the worst recessions, hasn’t helped the cause much. It also took the government machinery more than six months to sort out procedural issues relating to cabotage relaxation and trans-shipment of containers. All the procedures are now in place, but the container carriers haven’t reciprocated as expected by starting hub and feeder services. The container carriers had earlier argued that the cabotage rule was a major factor that discouraged mainline foreign vessels from calling at Vallarpadam and hindered the growth of the trans-shipment business. Relaxation in cabotage law to other Indian Ports will help the trade in India with larger vessels calling on Indian Ports - the economies of scale that will make their way back to the importer/exporter and make them more competitive vis-a-vis other countries. - Prakash Tulsiani, Managing Director, APM Terminals Pipavav

Prakash Tulsiani, Managing Director, APM Terminals Pipavav, articulates that such relaxation in cabotage law to other Indian Ports will help the trade in India with larger vessels calling on Indian Ports - the economies of scale that will make their way back to the importer/ exporter and make them more competitive vis-a-vis other countries. Indian exports and imports will not spend time idling at transhipment ports abroad. Instead more frequent and direct services will emerge and make Indian importers and exporters more competitive on their delivery schedules. He also believes that continuing with cabotage law is that we end up protecting an Indian flagged fleet of container vessels which are even less than 20 having 2000 TEUs capacity and presently serves a negligible amount of India’s containerised trade. Given the scale that shipping fleets across the world are augmenting their capacities with 18,000 TEU vessels. The current Indian flagged fleet is outdated and will continue to require state patronage at the expense of the entire Import Export Trade of India. Now the shipping ministry has decided not allowing cabatoge relaxation other than Vallarpadam facility by saying that relaxing cobatoge at the Vallarpadam facility 28 | India Plays around Cabatoge Law.indd 28

The cabinet decision was taken at a time when maritime nations were tightening their cabotage law to support local fleet-owners. Indian fleet-owners running container ships were totally opposed to the move, arguing that the growth of India’s coastal fleet was hampered by multiple taxes. India introduced a new tax exclusively for its shipping industry from 2004 based on the cargo-carrying capacity of ships in place of corporate tax. The tonnage tax cut the tax incidence of shipping firms to just 1-2 per cent of their income, compared with the corporate tax rate of 33.9 per cent. Still, Indian shipowners are required to pay a dozen other taxes, which negate the benefits accruing from tonnage tax. This explains why foreign fleet-owners are reluctant to invest and register ships in India, where 100 per cent foreign direct investment (FDI) in shipping is permitted through the automatic route. Foreign shipowners not constrained by these taxes have managed to take away a big share of India’s local business.

References: 1. http://www.business-standard.com/article/economy-policy/ cabotage-policy-relaxed-to-help-vallarpadam-biz-112090702023_1. html 2. http://www.thehindubusinessline.com/industry-and-economy/ logistics/after-vallarpadam-more-ports-want-cabotage-relaxation/ article4106040.ece 3. http://www.livemint.com/Politics/7ChFaNiZVhXLWjwYRczQuO/ India-plays-around-with-cabotage-rule.html

- Rakesh Roy

| Dec 2013 - Jan 2014 2/1/2014 1:00:37 PM

[NEWS FEATURES]

aritime transport has been witnessed as the most convinient way of cargo transport comparison to road, rail and other ways of inland transports. Coastal transport is recognized as a viable mode of transport in order to fuel efficient, cost effective and environmental friendly. Maritime sector plays a vital role in the trade & commerce of any country in supporting the internal trade or external trade. India is naturally blessed with along coastline of over 7,500 km of and home of 14,500 km of navigable waterways to movement of mechanized vessels. The country has 13 major ports and more than 180 minor ports spread across 9 maritime states play a vital role in maritime transport & trade and are the economic drivers for the country and regions.

Incentive Scheme to Boost Indian Coastal Cargo

But Coastal shipping presently accounts for only 7 per cent of overall cargo movement in India. Promotion of coastal shipping is essential due to the potential economic and social benefits it could confer. Hence it is important to address issues such as route development, capacity additions, incentives by reduction in fuel bill, logistic cost, impact of land congestion & pollution on national economy and the environment. In order to address these issues with the Ministry of shipping’s objective in promoting the coastal and inland waterways in India more viable way of transport, the Indian Coastal Conference Shipping Association (ICCSA) has come up with a formula based on incentives and executed a detailed study on “Incentive schemes to promote Coastal Shipping” to boost coastal shipping in the country. A detailed report including the KPMG findings namely “COASTAL SHIPPING - REALISING A POTENTIAL” was collated by members of ICCSA and submitted to the “Ministry of Shipping” through the “COASTAL SHIPPING STANDARDS COMMITTEE”. The report was released at a press meet, in the presence of ICCSA Members including among others: Capt. Sudhir Subhedar, President; Capt. Kiran Kamat, Vice President; Capt Sandeep Kalia, Vice President; Shri Aditya Suklikar, Hon Secretary; Shri Ashwin Samant, Joint Secretary and Capt. Vikas Vij, Treasurer. Capt Kiran Kamat, Vice President, ICCSA, informed that the formula has been chalked out based on the findings of the Committee appointed by the Shipping Ministry and formed under the chairmanship of Capt PVK Mohan, Chairman, National Shipping Board, Shipping Ministry. The Committee included representatives of various concerned authorities and organization including the Director General of Shipping, Indian Register of Dec 2013 - Jan 2014 |

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| 29 2/1/2014 4:25:10 PM

[NEWS FEATURE] Shipping, Indian National Shipowners’ Association, Inland Waterways Authority of India. The Committee recommended implementations of the incentive scheme formula for bridging the gap of freight differential between the road/rail and waterways. The average value of differential, economy of scale by way of volume of cargo, distance covered and the freight losses in carrying empty containers on the ballast voyage have been taken in to account for arriving at this pragmatic incentive scheme. The Committee has recommended an incentive plan akin to other countries towards the modal shift of cargo from rail/road to waterways with direct and indirect benefits. The committee feels that implementations of the incentive scheme would bridge the gap of freight differential between the road/rail and waterways. The average value of differential, economy of scale by way of volume of cargo, distance covered and the freight losses in carrying empty containers on the ballast voyage have been taken into consideration in arriving at the numeric figures for pragmatic implementation of the incentive scheme. Aditya Suklikar, Hony Secretary, ICCSA, informed that the initiative scheme prepared by ICCSA in association with KPMG has come up with a formula based on incentives, which if all goes well will help boost coastal shipping in India. The difference is that all earlier proposals made to the government of India seeing its assistance to promote coastal shipping were based on subsidies and involved various ministries (besides the Shipping Ministry) the Union Finance Ministry and others. As a result these proposals would not find favor with one or the other ministry. This time ICCSA has taken the assistance of the study made by KPMG and come up with a new formula which directly involves mainly the Shipping Ministry. Capt Sudhir Subhedar, President ICCSA, informed that the Shipping Ministry will agree with the incentive scheme. “The Ministry is working out the modality for coming to a decision as to which authority will disburse the money,” he stated. “We want the Director General of Shipping offices in Mumbai and shipping master offices in various other ports to be able to disburse the payments on the basis of evidence of having moved the goods. This could be port report indicating that the goods having been loaded and moved out, etc. However, the physical money will not come from them. The shipper will have to go with the endorsement to the authorized bank. We don’t want the customs in the pictures since it means involving unnecessary documentation, including preparing the 30 |

shipping bill, etc. The Customs Act already has a provision stating that if there is a dedicated area in the port such clearance of cargo is permitted. It is only a question for the ministry bringing all entities together on the same platform including ministry of finance, ministry of home affairs, ministry of petroleum, etc., which for us it is difficult. Recovering the money however will be quite a task,” Capt Subhedar added. According to Capt Subhedar once the cargo begins to come on to the coast there will be a huge demand for more coastal ships and the ship yards will be flooded with orders. Initially, there will be severe dearth of vessels which can be compensated by in-chartering foreign vessels. Indirectly, INSA is lending support for relaxation of the Cabotage law in order to allow foreign vessels to operate on the coast in a big way initially to make the incentive scheme a success. Besides, their representative on the Committee has supported this ICCSA incentive scheme. Further INSA has been giving ‘No-Objection Certification’ for in-chartering of over 150 vessels into the country each year since their members are not in a position to provide ships for coastal and inland water transport in such a big way. Adhere to the recommendations by members of ICCSA under the chairmanship of Capt PVK Mohan, Chairman, National Shipping Board, Shipping Ministry the Shipping Ministry has finally approved in spending ` 300 crore for modal shift of cargo to promote manufacturers and transporters to shift movement of their goods from rail and road to coastal shipping in the coming years. According to P V Mohan, nine commodities – steel, marbles, tiles, cement, automobile, fertilisers, foodgrains, salt and sugar – have identified for the incentive scheme. The scheme will be in force and under review till 2017. Detailing the features of the new scheme, he said in the case of bulk cargoes, all new cargoes on Indian flag vessels (with a fresh modal shift) will be eligible for an incentive of 50 paise per tonne per nautical mile (nm) up to a maximum of 500 nms. This incentive will have a ` 150-crore financial implication on the shipping ministry. Mohan said that the committee had recommended that the present rebate of 40 per cent in vessel-related charges and cargo-related charges to be increased to 60 per cent at both ends. “The difference may be reimbursed to major ports by the Centre periodically,” he said adding this rebate would have a ` 130-crore implication on the government. - Rakesh Roy

| Dec 2013 - Jan 2014

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2/1/2014 4:25:10 PM

[Feature]

Freight Watch – November to December 2013 1.2

1.17

1.14

1.11

1.08

VLCC supply V's demand (LHS)

World Scale Points - Route TD3

Worldscale Points

Supply V's Demand*

Route TD3 freight rate and weekly supply Vs demand

1.05

Note:*Market in "oversupply" mode when reading is excceds 1, vice-a-versa when below 1. Source: Bloomberg

Note: *Market in “oversupply” mode when reading is excceds 1, vice-a-versa when below 1. Source: Bloomberg

The spike in VLCC rates over the past two months is driven by a mixture of fundamental and seasonal factors. Growth in manufacturing in US and China — world’s two largest economies have increased the expectation of higher energy demand. Additionally, winter season have traditionally seen high demand for energy and hence for VLCCs as well to carry the oil.

C Authors: Nazir Ahmed Moulvi

Senior Analyst, Department of Research and Strategy, Multi-Commodity Exchange of India Ltd E: nazir.moulvi@mcxindia.com

Niteen M Jain

Senior Analyst, Department of Research and Strategy, Multi-Commodity Exchange of India Ltd E: niteen.jain@mcxindia.com

ontinuing the uptrend momentum of past two months, daily charter index for VLCCs on route TD3 (from Ras Tanura, Saudi Arabia, the world’s biggest oil-export site to Chiba, Japan), opened the month of November 2013 at 50 Worldscale (WS), up by 17.6 per cent from previous month’s close. With charter rates surging further through the end of 2013, the opening day’s rate eventually emerged as the lowest rate for the months of November and December. Route TD3 is one of the world’s busiest oil route and industry benchmark. The freight rate on the benchmark route rose sharply as the excess capacity in VLCC market fell to the lowest in last six months. Worldscale points are a percentage of a nominal rate, or the flat rate, for more than 3,20,000 specific routes. Flat rates for every voyage, quoted in US dollars a tonne, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates. Notably, each flat rate assessment gives owners and oil companies a starting point for negotiating hire rates without having to calculate the value of each deal from scratch. Dec 2013 - Jan 2014 |

Freight Watch.indd 31

| 31 2/1/2014 4:14:18 PM

[Feature] Shipping Capacity Statistics Particular

Dec-13

Nov-13

MoM Change

% Dec-12

YoY Change

No of Ships in service

2,302

0.0%

2,287.00

0.7%

DWT Weight in ‘000 tonnes’

373,253

373,317

0.0%

367,151

1.7%

No of new ship orders

163

149

9.4%

128.00

27.3%

No of ships under construction

-5.6%

54.00

-37.0%

Order book as DWT %

10.05

9.39

7.0%

11.34

-11.4%

No of Ships broken

0.0%

-14.3%

No. of VLCCs sailing with cargo

441

432

2.1%

430.00

2.6%

No. of VLCCs anchored

142

143

-0.7%

142.00

0.0%

Avg. speed of VLCCs in knots (Excl. Anchored) 9.23

9.18

0.5%

9.6

-3.9%

Persian Gulf VLCCs Supply vs. Demand

1.1

1.13

-2.7%

1.20

-8.3%

Global

90,305

100,379

-10.0%

87,757

2.9%

Middle East Gulf

23,369

17,824

31.1%

25,547

-8.5%

India

556

1,513

-63.3%

1,393

-60.1%

Oil - floating storage (1000 barrels)

Note: Supply – demand is 1, where both are equal; 1.1 signifies 10% oversupply whereas 0.9 means 10% deficit Source: Bloomberg

Acceleration in VLCC bookings by Chinese freight traders to load Middle East crude helped sapping fleet surplus that depressed the rates for most of the year. The sentiments in the VLCC market were positively triggered after it was reported that China paid about 13 per cent premium over spot rate to hire a VLCC. At the same time West African demand was also reported to be robust, indicating a part of vessel surplus was also absorbed by this region. In a marked shift from the past, traders were eagerly booking the VLCC for December cargo in the first week of November. Traditionally, the forward month booking begins only in the second half of the preceding month. This shift in strategy also hinted the desperation of the traders to secure the vessel for charter, thereby pushing the freight rates higher. The news that 16 VLCCs were demolished in 2013 totalling capacity of 4.7 million deadweight (mdwt) tonnes also buoyed the mood of the market, indicating the market may revive soon. The demolitions left only 87 VLCCs, making up 25.9 mdwt, equivalent to 13.7 per cent of global fleet capacity, which are built before 2000, thus creating a decent potential for rebalancing the crude tanker market going forward. Additionally, it was reported many of these vessels were due for special survey, which may encourage owners to scrap to save on cost. The news that Chinese will increase crude oil processing by 6.3 per cent to 10.1 million barrels a day in the current 32 | Freight Watch.indd 32

quarter pushed the VLCC charter rates to the period high of 62.5 WS points on November 18, 2013. Strong demand helped charter rates to stay at higher levels for extended period of time. The onset of winter also increased the seasonal demand for crude oil, which in turn increased the VLCCs ferrying the cargoes. Apart from increase in seasonal demand, the increased flow of crude from West Africa to China also helped the rise in charter rates. On fundamental note, China’s overall imports of crude oil in November edged up 0.8 percent from a year earlier to 5.76 million barrels per day, according to data released by Chinese Customs Department. Moving forward the momentum was largely sustained, though the freight rates receded to some extent. Report by Clarkson Plc, the world’s largest shipbroker, stated it expects VLCC fleet’s carrying capacity will increase by 0.9 per cent compared with an increase of 2.9 per cent in its demand, - adding to positive sentiments, and hence helping in sustaining the momentum in the freight rates. As the year-end approached, the hiring spree slowed, and subsequently the freight rates also receded. Overall during November-December 2013, freight rates increased by 35.3 per cent to close the year at 57.5 WS points. On an annual basis the freight rates increased by 21 per cent in 2013. (The opinions expressed by authors are personal)

| Dec 2013 - Jan 2014 2/1/2014 4:14:18 PM

[MARINE ARCHAEOLOGY]

Of World War II Submarine Discovery Wreckage of longer than a football field at 400 feet ‘Sen-Toku’ class submarine

World War II-era Imperial Japanese Navy megasubmarine, the I-400, lost since 1946 when it was intentionally scuttled by US forces after its capture, has been discovered in more than 2,300 feet of water off the southwest coast of O‘ahu. The discovery resolves a decades-old Cold War mystery of just where the lost submarine lay, and recalls a different era as one war ended and a new, undeclared conflict emerged. Longer than a football field at 400 feet, the I-400 was known as a ‘Sen-Toku’ class submarine—the largest submarine ever built until the introduction of nuclearpowered subs in the 1960s. With a range of 37,500 miles, the I-400 and its sister ship, the I-401, were able to travel one and a half times around the world without refuelling, a capability that, to this day, has never been matched by any other diesel-electric submarine. The new discovery of the I-400 was led by veteran undersea explorer Terry Kerby, Hawai'i Undersea Research Laboratory (HURL) operations director and chief submarine pilot. Since 1992, HURL has used its manned submersibles Pisces IV and Pisces V to hunt for submarines and other submerged cultural resources as part of the National Oceanic and Atmospheric Administration’s (NOAA) maritime heritage research effort. Heritage properties like historic wreck sites are nonrenewable resources possessing unique information about Dec 2013 - Jan 2014 |

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| 33 2/1/2014 4:24:07 PM

[MARINE ARCHAEOLOGY] the past. This discovery was part of a series of dives funded by a grant from NOAA’s Office of Exploration and Research and the University of Hawai‘i at Mānoa’s School of Ocean and Earth Science and Technology (SOEST). Working with Steven Price of HURL, Kerby has researched the subject of lost submarines off O‘ahu for decades. On these recent dives, Kerby was joined by two NOAA archaeologists with experience in documenting World War II vessels and submarines, Drs. James Delgado and Hans Van Tilburg. “The I-400 has been on our ‘to-find’ list for some time. It was the first of its kind of only three built, so it is a unique and very historic submarine,” said Kerby. “Finding it where we did was totally unexpected. All our research pointed to it being further out to sea. The multi-beam anomalies that appear on a bottom survey chart can be anything from wrecks to rocks—you don’t know until you go there. Jim and Hans and I knew we were approaching what looked like a large wreck on our sonar. It was a thrill when the view of a giant submarine appeared out of the darkness.” The I-400 and the I-401 aircraft-carrying submarines held up to three folding-wing float-plane bombers that could be launched by catapult just minutes after the submarines surfaced. Each aircraft could carry a powerful 1,800-pound bomb to attack the US mainland. But neither was ever used for its designed purpose, their missions curtailed by the end of armed conflict in the Pacific. “The innovation of air strike capability from long-range submarines represented a tactical change in submarine doctrine,” said Delgado, director of NOAA’s Maritime Heritage Program, within the Office of National Marine Sanctuaries, Washington, DC. “The large I-400, with its extended range and ability to launch three M6A1 Seiran strike aircraft, was clearly an important step in the evolution of submarine design.” Up until the Sen-Toku’s day, submarines had been almost exclusively dedicated to sinking surface ships (and other submarines) by stealth attack from under water.

treaty that ended the war, the US Navy sank the subs off the coast of O'ahu and claimed to have no information on their precise location. The goal was to keep their advanced technology out of Soviet hands during the opening chapters of the Cold War. HURL has now successfully located four of these five lost submarines. The HURL crew identified the wreck site by carefully combing through side-scan sonar and multi-beam sonar data to identify anomalies on a deep sea floor littered with rocky outcrops and other debris. The wreck was positively identified as the I-400 based on features including its aircraft launch ramp, deck crane, torpedo tube configuration, and stern running lights. The remains of the submarine’s aircraft hangar and conning tower appear to have been separated from the wreck, perhaps in the blunt trauma of the three US Navy torpedo blasts that sunk the ship in 1946. The I-400 was discovered in August 2013 and is being announced now after NOAA has reviewed its findings with the US state department and Japanese government officials.

“The I-400 is technologically significant due to the design features associated with its large watertight hangar,” Delgado said. “Following World War II, submarine experimentation and design changes would continue in this direction, eventually leading to ballistic missile launching capabilities for US submarines at the advent of the nuclear era.”

“These historic properties in the Hawaiian Islands recall the critical events and sacrifices of World War II in the Pacific, a period which greatly affected both Japan and the United States and shaped the Pacific region as we now know it,” said Van Tilburg, maritime heritage coordinator for NOAA in the Pacific Islands region. “Our ability to interpret these unique weapons of the past and jointly understand our shared history is a mark of our progress from animosity to reconciliation. That is the most important lesson that the site of the I-400 can provide today.”

At the end of WWII, the US Navy captured five Japanese subs, including the I-400, and brought them to Pearl Harbor for inspection. When the Soviet Union demanded access to the submarines in 1946 under the terms of the

(Source: www. Maritime-Executive.com)

34 | Giant World War II Aircraft.indd 34

| Dec 2013 - Jan 2014 2/1/2014 4:24:07 PM

Filler.indd 35

2/1/2014 3:46:14 PM

[MARKETING INITIATIVE]

Dighi Port: First Greenfield Port of Maharashtra

ighi Port, the first and the largest Greenfield port of Maharashtra, is being developed as a multi-purpose, multi-cargo, all-weather port with deep draught, direct berthing facilities and modern cargo handling equipment with adequate stack yards and warehousing facilities, back up areas with an ample land bank of approximately 1600 acres. The port is located on the banks of the Rajpuri Creek, in the Raigad District of Maharashtra. The unique feature of the port is its ideal location within a natural harbour and exclusive channel offering a depth of 12.5m, making it one of the deepest ports in Maharashtra. Meticulous planning from the onset with cargo handling terminals on either banks of the creek, gives the port the unique advantage of handling all types of cargo in all weather conditions. Dighi Port is being developed on the two banks of the Rajpuri Creek â&#x20AC;˘ The South Bank (Dighi Side) â&#x20AC;˘ The North Bank (Agardanda Side) Under Phase 1 development, the port is developing 5 multipurpose berths and will offer an alongside depth of 14.5m. Two multi-purpose berths having a single quay length of 650m have been developed on the South Bank. The North

36 | Dighi port.indd 36

Bank will offer 3 multipurpose berths having a total quay length of 1100kms. The two multi-purpose berths on the South Bank have a single quay length of 650m, which are in operation. The berths are equipped with multi-purpose Gottwald Mobile Harbour Cranes for the efficient handling of cargo. The port plans to handle bulk, break-bulk cargo such as agri products, bauxite, cement, clinker, coal, fertilizer, steel etc. and liquid cargo at the South Bank. Currently, the port is handling cargo such as Bauxite, Coal and Steel on a regular basis. The port has already successfully handled Post Panamax and Capesize vessels having a DWT of up to 1,55,000 MTs. Under Phase 1 development, the North Bank will offer 3 multi-purpose berths having a total quay length of 1100m and an alongside depth of 14.5m. Piling work for the berths is already in progress and all 3 berths are likely to be ready by third quarter of 2014. The North Bank will primarily be used for handling containers and other clean. Total installed capacity in Phase 1 will be 30 million tonnes. In Phase 2, the port will offer a depth of 16m and will have a capacity to handle 60 million MTs of cargo. On completion of Phase 3, Dighi Port will offer a depth of 20m and will have a capacity to handle 90 million MTs of cargo.

| Dec 2013 - Jan 2014 2/1/2014 2:35:41 PM

[MARKETING INITIATIVE]

Dighi Port is being developed by Balaji Infra Projects Ltd (BIPL) under a 50 year “Build, Own, Operate, Share, Transfer (BOOST)” Concession Agreement signed with the Maharashtra Maritime Board, the Government of Maharashtra, to develop, operate, finance and maintain the Port.

Dec 2013 - Jan 2014 | Dighi port.indd 37

| 37 2/1/2014 2:35:43 PM

[MARKETING INITIATIVE]

CONNECTIVITY Road Both banks of the port are connected to the National Highway NH 17 via 5 State Highways. The North Bank is connected to National Highway via State Highways (SH) 92, 96 and the South Bank is connected to National Highway via SH 97 and 98. Joint inspection and survey of the State Highways (SH) has been completed by PWD and Dighi Port Ltd. NHAI commissioned study through Feedback Ventures to upgrade SH 97 & SH 92 to 4 lane and 6 lane. Further, work on the 4 laning of NH 17 is currently in progress. All development works as per previous schedule has been completed and permission has been received from PWD to develop the State Highway on BOT basis. Rail Dighi Port Limited has received an approval from Ministry of Railways (MoR) to develop the railway siding at the port under the ‘Special Purpose Vehicle (SPV)’ model of the recently announced 3i Policy of Indian Railways. Rail Vikas Nigam Limited (RVNL) is the strategic partner and is investing 26% in the project. The port will be connected to the nearest Central Railway Head Roha which is at a distance of 35kms. Special Economic Zone (SEZ) and Free Trade Warehousing Zone (FTWZ) - Dighi Dighi Port is designed to provide multiple facilities unlike other traditional ports. These facilities will be the value added components such as the Special Economic Zone (SEZ) inclusive of a Free Trade Warehousing Zone (FTWZ) which shall further enhance the potentiality of the development for the industrial community along with a rail and road network. Delhi Mumbai Industrial Corridor (DMIC) & Dedicated Freight Corridor (DFC) Dighi port is the final node of the DMIC and is being 38 | Dighi port.indd 38

developed as a multi-modal logistic hub. Setting up of an industrial city namely ‘Dighi Industrial City’ near the port under the DMIC is in the anvil. In the state of Maharashtra, the DMIC will have industrial parks, i.e. manufacturing zones for food processing, light manufacturing and heavy manufacturing. It will also have multimodal and logistics supports as well as distribution networks. Investment proposed in Dighi port as part of DMIC is expected to be around US$ 2 billion and it will facilitate investment of US $ 6 billion in creation of industrial and multimodal logistics hubs in the state of Maharashtra. Dighi Port will cater to a large number of Industrial Clusters such as, Dighi Industrial area, Vile Bhagad, Pune Nashik, Igatpuri, Sinar, Roha and Chiplun industrial region. Industrial clusters developed under the DMIC in close proximity to Dighi Port are Vile Bhagad (Steel, Power & Project Equipment), Pune – Chakan (Automobiles, Agriculture, Chemicals and Ancillaries) and Nashik– Sinnar (Power, Agriculture and Ancillaries). It has also been proposed to include Dighi Port as a part of the DFC, a Special Purpose Vehicle set up under the administrative control of the Ministry of Railways. Dighi Port Area – National Investment and Manufacturing Zone (NIMZ) The Dighi Port Area has been identified as a one of the 7 Mega National Investment and Manufacturing Zones under Government of India’s new Manufacturing Policy. A total area of 230sq.km allocated for the development of the Manufacturing Zone in Dighi Port Area. Dighi on Completion The Port on completion will be an integrated infrastructure initiative with few parallels. It has the potential to become the centre of marine business initiative, thanks to its world-class infrastructure and end-to-end logistics solutions.

| Dec 2013 - Jan 2014 2/1/2014 2:35:44 PM

[MARKETING INITIATIVE]

Thermal Imaging Shows the Way to a Safer Sydney Harbour Harbour City Ferries has developed as a highreliability organisation concerned with the safety of its staff, vessels and other users of Sydney Harbour. Now its entire fleet are equipped with FLIR M320L thermal imaging cameras to further improve safety on the waters of Sydney. Sydney’s ferries have been servicing Sydney Harbour for more than 135 years. Harbour City Ferries operate approximately 175,000 services, transporting nearly 15 million people 1.3 million kilometers across the busy Sydney Harbour and the Parramatta River each year. Locals embark on Harbour City Ferries for their daily commute and visitors, who flock to this internationally recognised tourist destination, enjoy this captivating form of transport to explore Sydney’s beautiful waterways, its vibrant city centre and surrounding areas.

his bustling harbour is not only a thriving port, catering to an unmatched array of commercial shipping and recreational boating; it is also a “circuit” to recreational paddlers and kayakers. With all this activity and Harbour City Ferries’ strategic focus on safety as its first priority, it was decided to install thermal imaging cameras on board the entire fleet of 28 vessels, six of which are doubleenders, so 34 FLIR M320L cameras were purchased in total. A dangerous place In a crowded waterway such as Sydney Harbour there are countless opportunities for accidents to occur. Thankfully, with the installation of FLIR thermal imaging cameras on its fleet, Harbour City Ferries have made the harbour a safer place than in days gone by when only radar systems were fitted. The Sydney Harbour Bridge casts a radar shadow underneath it that limits the utility of radar in the area. The usefulness of radar is also adversely affected if the target vessel is small and not constructed of radar reflective materials or does not have a radar reflector installed on it. Downlighting from the Harbour Bridge, and background lighting and reflections off the water can also make spotting some vessels difficult. So in 2009, Sydney Ferries (as it was then known) advanced the technology of its fleet by including the installation of FLIR M320L cameras to assist in night and low visibility navigation.

Introduction to Thermal Imaging The history to FLIR’s relationship with Harbour City Ferries commenced with the Office of Transport Safety Investigations contacting FLIR Australia to take part in a re-enactment simulating a collision. FLIR contacted its distributor, Coursemaster Autopilots, based in Sydney. “We provided a FLIR Navigator and personnel for the re-enactment” said Paul Garske, General Manager of Coursemaster Autopilots. “Subsequently Sydney Ferries purchased a Navigator for the purpose of trialling it. They were happy with the performance but in the end went with the FLIR M320L, which the masters preferred as it comprised both low light and thermal imager.” “Although thermal imaging cameras produce clear images in total darkness, we are also operating during the twilight hours of the day, when some sunlight or moonlight is present. Also during docking operations there is some light from the marina present. For these situations we wanted a lowlight camera as well,” stated Glenn Young, Harbour City Ferries General Manager Operations and Asset Management. FLIR M320L: The Perfect Solution “When we understood that Sydney Ferries wanted to have a combination of a thermal imaging camera and a lowlight camera, we decided to demonstrate the FLIR M320L”, explains Paul Garske. Installation of the FLIR M320L Dec 2013 - Jan 2014 |

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[MARKETING INITIATIVE]

commenced in 2009 along with other Navaids equipment, supplied, installed and supported by Electrotech Australia. “The FLIR thermal imaging cameras are navigational aids for the masters and crew of the ferries to assist during times of poor visibility, such as fog, rain, glare, low light and at night,” said Stephen Penny, Project Manager of Electrotech. The systems are also used for incident recording in conjunction with GPS, time stamp and speed overlay; all of which were installed by Electrotech. Installing a FLIR Systems M320L “The M320L is a small, ultra-compact gimbal, able to rotate 360° continuously and can tilt plus or minus 90° vertically. This means that the master can look wherever he needs”, said FLIR’s Maritime Distribution Manager, Peter De Ieso. “Cameras are installed in positions on the Ferries giving best view forward and to port and starboard. The compactness of the M-Series thermal imaging cameras allowed them to be accommodated within real estate constraints of what was already fitted to each vessel, such as radars. For most vessels this was just above the bridge.” “The M-Series can be easily mounted ballup or ball-down. A menu setting allows the user to turn the direction of the image on the screen”, explained De Ieso. “The M-Series are extremely easy to integrate on board of any vessel, said De Ieso. The images from the M-Series can be displayed on virtually any existing multifunction (i.e. chart plotter) display that accepts composite video. “An M-Series camera provides two video outputs: one output is for the video signal from the thermal camera only; the other output is for video from either the thermal camera or the lowlight camera and is switchable from the Joystick Control Unit. The video from the M-Series camera can therefore be displayed on one or two video displays. Extra JCUs, to operate the M-Series cameras from different locations on the vessels, are an option and are simple to install.” “At Harbour City Ferries we decided to connect the M320L to one dedicated 15” Hatteland LCD screen. The master can easily switch from the image of the lowlight camera to the thermal image, and back, whenever he wants, at the touch of a button. The cameras are set up in home position, which is useful, and each master also sets them to their own personal preferences,” Glenn Young, General Manager Operations and Asset Management, Harbour City Ferries. Excellent feedback from masters “The feedback that we are receiving 40 | FLIR.indd 40

from masters on the FLIR M320L has been great,” continues Young. “They all report that the M320L helps them to get a better understanding of what is happening around their vessel. They find it extremely easy to use and the joystick allows the master to operate all the features of the M320L such as pan/tilt or switching from daylight to thermal image.” The joystick is on each bridge console, as close to the wheel as possible, so all features are right at the master’s fingertips. “Thanks to the crisp images the M320L is producing,” continues Young, “the masters’ situational awareness has improved drastically and they have more time to anticipate and react to what is happening around their vessel. During twilight hours, or when some light is present, they can use the lowlight camera. Once it is getting too dark they just switch to the thermal imaging camera and maintain a clear overview of the situation.” During the warmer weather and when the sun rises later of a morning, kayakers and rowers are out on the water during periods of darkness, reported Sydney’s The Daily Telegraph. Prior to the thermal camera installs, ferry masters were regularly radioing warnings of unlit kayakers and other vessels, fearing the possibility of a fatal collision. “Small craft are difficult to spot using radar”, said ferry master Wayne Pritchard. “They are designed so they don’t have a lot of superstructure above the water so it is difficult for the radar to pick them up.” Now armed with the FLIR M-Series thermal imaging cameras the masters have a clear view of the water, even in total darkness. One ferry master even commenting that the FLIR was the only reason he was able to spot an unlit kayaker in time to avoid a collision. Sightings of unlit vessels, usually small boats that are not required to carry ixed lights, are common but there are also regular sightings of unlit vessels that ought to have fixed navigation lights illuminated at night. “At Harbour City Ferries, we are convinced that thermal imaging cameras are a great tool to increase safety on board any vessel.” concludes Young. FLIR Systems India Pvt Ltd 1111, D Mall Netaji Subhash Place, Pitampura Delhi-34, INDIA Office: +91-11-4560 3555 Fax: +91-11- 4721 2006 www.flir.com

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[MARKETING INITIATIVE]

Academy With A Difference Talking of R C Singh is something like showing a Candle to the Sun. It is difficult to sum up the undaunted spirit, unquenched thirst and rock solid determination of a man with 80 per cent disability to achieve insurmountable success in the field, chosen by a few, the field of Marine Education.

B P Marine Academy, Belapur Campus

P Marine Academy is all set to enter Guinness Book of World Records as R C Singh, Chairman of the institute claims that the Academy has so far trained 3,20,000 cadets. BP Marine Academy is unique as it not only gives training, education to the cadets but also instills moral values in them. The Director of B P Marine Academy has claimed that his academy has given training to every second or third marine student in India. According to Singh, safety should always come first. He says that one should never compromise on safety. He gives utmost priority to safety first as while sailing to Cape Town he had taken safety very lightly and as a result, he met with an accident which led to fracture of neck, broken leg and multiple injuries. The man sees challenge as a stepping stone to reach great heights. His disability could not deter him from climbing grater heights. He started his academic career with providing courses on ‘Elementary Safety Aids’. Singh started BPMA with a 921 square feet space in 1997 and today the academy runs a wide range of D G Shipping

approved pre-sea and post-sea courses from its more than a lakh sq feet space centre in CBD Belapur. The Panvel facility of the Academy has been constructed in the shape of ship. It is an architectural marvel. It has a revolving restaurant and classrooms of the academy are modern and fully equipped with training aids. The awards bestowed to BPMA run in numbers. It has been awarded with ‘Best Infrastructure’ amongst Marine Institutions by Big Brands Research. The architecture who designed the Panvel Campus of the academy has been conferred with Maharashtra’s best architectural award. R C Singh has received Sant Tulsidas Krit ‘Ram Charit Manas Award from All India Port Labour Association by the hands of P A Sangma in recognition to contributions made by him in providing financial assistance to the needy students. The academy not only boasts of excellent infrastructure but also excellent faculty of qualified and devoted marine engineers, navigators, academic and Dec 2013 - Jan 2014 |

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B P Marine Academy, Panvel Campus

Instructional staff. No wonder the academy has Quality System Certification ISO 9001:2008 from American Bureau of Shipping Industrial Verification Inc and has also been rated as an outstanding institute by ICRA Rating Mumbai. The quality of Education imparted to the student is excellent. The students are given ample opportunities to showcase their talent and skills. Extracurricular activities are encouraged as a result of which B P Marine Academy received Best Marine Institute award for 2012-2013. Amongst its various initiatives towards Corporate Social Responsibility, the management of the academy has contributed ` 14 crore towards the education and training of the needy candidates since its inception. The academy is proud to be located in Mumbai, the financial capital of the country. The academy has reserved 50 per cent of its seats for the students of Maharashtra 42 | BP marine.indd 42

to promote the shipping careers in this region of the country. “In a country like India if you are moving ahead, your competitors try pulling you back,” says Singh. While setting up academy, he has to go through a number of hurdles. He compares life with science. “ Just as 75 per cent of the rocket’s energy is wasted in covering 25 per cent distance, in the same way 75 per cent of one’s life energy is wasted in achieving just 25 per cent of his target, and with the leftover 25 per cent energy, he achieves 75 per cent of the target. So, the fundamental principle of life and that of science is basically the same,” says he. He emphasises that when parents cannot give good values to their children, it’s very challenging for the management of the college to give the same to so many candidates. He adds that good quality training is possible only with the support of parents.

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[NEWS: INDIA]

Arun Gupta

Arun Gupta Likely to be SCI Chairman

SBI Seeks Relaxation on Shipping Loans

New Delhi: Arun K Gupta is likely to be appointed as the new chairman of Shipping Corporation of India which has not been having a full-time head for over a year when the company is passing through its toughest periods.

New Delhi: The State Bank of India has written to the Reserve Bank of India, seeking relaxation while accounting for loans made to the shipping sector. This comes on the heels of a similar presentation made by Bharati Shipyard to the RBI. The shipping company has requested for the repayment period to be extended to 15 years from 10 years, and has sought a pause on interest payment for two more years. Loans made to the company are most likely to end up as non-performing loans by March end. Banks are refusing to release sanctioned funds to the company as the company still has to meet certain requirements on collateral under the corporate debt restructuring (CDR) program. Banks had sanctioned ` 300 crore to Bharati under a CDR package. Bank of India has already classified its loans to Bharati as NPA.

Gupta is at present Director, Offshore Services, at the city-headquartered shipping line, which posted a loss of ` 114.31 crore in the last fiscal. “The name of Arun K Gupta has been shortlisted,” a top shipping ministry official said here adding the announcement should be done in the next 15-20 days. According to the official, the Public Enterprises Selection Board (PESB) cleared the name of Gupta recently. The state-run shipping company has been without a full time head since S Hajara retired in December 2012 after a one-year extension. B K Mandal, Director, Finance, has been officiating as the CMD since then. SCI, which owns one-third of the total shipping fleet, was struggling for the past few years primarily due to a steep decline in freight rates and oversupply of vessels as the economy is in shambles. Also, the company failed to tap into the lucrative offshore services sector, unlike many of its rivals, denting its balance sheet. However, private player like Great Eastern Shipping, Mercator and Varun Shipping successfully diversified into allied sectors like offshore drilling and LPG shipment, something SCI could not do. The company has also struggled to take advantage of the various MoUs it had signed with large PSUs including ONGC, CIL and SAIL, which could have helped it with assured cargo during the downturn in the sector.

Cochin Port Plans Refinery Hub deepwater outer harbour project. “The oil refinery involves an investment of around ` 40,000 crore,” Cochin port Chairman Paul Antony said. “The Cochin outer harbour project will be the biggest project in the state. The port has called for an expression of interest to build the oil refinery and oil trading hub.”

Cochin Shipyard

Bangalore: Cochin Port has begun work on setting up a 20 million tonne export-oriented oil refinery and oil trading hub with private funds as part of an ambitious

For any oil refinery to succeed, the revenue should justify the project costs, said a Chennai-based port consultant. “The revenue is dependent on the price of the product. The price of oil in this country is regulated by the government. The refiner cannot charge his own prices,” he said, asking not to be named because his firm advises some Government-owned ports. The outer harbour project involves constructing two breakwaters on both sides of the approach channel extending about 7 km into the sea, with associated land masses on either side. The two breakwaters are estimated to cost around ` 3,000 crore.

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Union Govt Develops National Waterways New Delhi: The Union Government undertakes development and regulation of only those waterways which are declared as National Waterways. In a written reply to a question in the Rajya Sabha the Minister of Shipping G K Vasan said that it is the responsibility of the respective State Governments to develop any other waterways. Waterways that are being developed as National Waterways (NWs) presently are: Ganga-Bhagirathi-Hooghly river system (AllahabadHaldia-1620 km) in the states of Uttar Pradesh, Bihar, Jharkhand and West Bengal as NW-1, declared in 1986.

River Brahmaputra (Dhubri-Sadiya-891 km) in the state of Assam as NW-2 declared in 1988. West Coast Canal (Kottapuram-Kollam) along with Udyogmandal and Champakara Canals – (205 km) in the state of Kerala as NW-3 declared in 1993. Kakinada-Puducherry Canals along with Godavari and Krishna rivers (1078 km) – in the states of Andhra Pradesh, Tamil Nadu and Union Territory of Puducherry as NW-4 declared in 2008. East Coast Canal integrated with Brahmani river and Mahanadi delta rivers (588 km) in the states of West Bengal and Odisha as NW-5 declared in 2008.

L&T Gets Orders for 6 Specialised Vessels

L&T Shipbuilding

Mumbai: L&T Shipbuilding recently bagged orders valued at USD 154 million for six specialised commercial vessels in the third quarter of 2013-2014. The orders are from Halul Offshore Services Company W L L, Qatar for the design, construction, trials and commissioning of four Platform Supply Vessels (PSVs) and two Anchor Handling Towing, Supply and Standby Vessels (AHTSSVs) with 150 MT bollard pull. L&T Shipbuilding noted that the ships’ design will be optimised using modern tools including CFD which complies with the latest Marine Environmental and Crew Accommodation Regulations. The PSVs are being designed for carriage of hazardous cargo like Methanol. The ships will be equipped with Dynamic Positioning (DP2) capability and will be suitable for firefighting, emergency response, rescue & standby, offshore supply, oil recovery and related duties, the company said. The PSVs will be provided with Diesel-Electric propulsion and AHTSSVs will be provided with advanced Diesel-Hybrid propulsion, the officials informed.

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Adani, Essar Ink Deals With Vizag Port Chennai: The Visakhapatnam Port Trust (VPT) has signed two concession agreements totalling ` 1,173 crore to upgrade an ore handling complex and to add a new berth. It signed an agreement with Vadinar Oil Terminal of the Essar Group to upgrade an ore handling complex on a private-publicpartnership (PPP) mode at a cost of ` 845.41 crore. VPT Chairman R P S Kahlon signed the agreement with Rajiv Agarwal, Managing Director, Essar Ltd. The terminal will handle 23 million tonne of cargo annually. Visakhapatnam Port Trust also signed an agreement with Adani Vizag Coal Terminal Pvt Ltd to operate an EQ-1 mechanised coal handling facility on Public Private Partenership (PPP) mode, costing ` 323.81 crore. Kahlon signed the agreement with G J Rao, Director, Adani Ports and SEZ Ltd. The terminal’s capacity is to handle 6.41 million tonnes of cargo annually.

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[NEWS: INDIA]

Major Ports Handled 365 MT Cargo in 2013: IPA New Delhi: Major ports in India handled 365 million tonne of cargo for the eight month period of current fiscal, up 1.43 per cent over the corresponding period last fiscal. The growth was driven primarily by a 36 per cent growth in thermal coal volumes, 7 per cent growth in coking coal and about 1.5 per cent growth in petroleum products, according to Indian Ports Association data. The ports which registered growth during the period were Ennore, Paradip and New Mangalore.

Green Nod for LNG Terminal at Pipavav

Ahmedabad: Mumbai-based green energy player, Swan Energy Ltd has the company has received environment clearance for its LNG terminal near Pipavav in Gujarat. It has received environment and CRZ clearances from the Union Ministry of Environment and Forests (MoEF) for its Floating Storage and Regassification Unit (FSRU) - based LNG import terminal project near Pipavav, Gujarat. Swan Energy Ltd (SEL) (erstwhile SWAN Mills Ltd.) is in the process of developing the first FSRU project for imports of LNG in India. The FSRU project is being implemented at existing Pipavav Port in Gujarat. State ports regulator, Gujarat Maritime Board (GMB) has selected the company as a developer for Greenfield LNG Port Terminal with FSRU at Jafrabad, Gujarat on built-own-operate-transfer (BOOT) basis.

Scope for Ship Repair Industry Due to Aging Ships Ahmedabad: With over 41 per cent of Indian ships having crossed 20 years of operations, the shipbuilding and ship-repair industry provides opportunities worth ` 20,000 crore in the sector, Assocham has said. “Ships older than 20 years require frequent and extensive repair and maintenance. This augurs well for the ` 7,300-crore worth shipbuilding industry,” according to an analysis of ‘Indian Shipping Fleet: Size, Capacity and Age Composition,’ conducted by The Associated Chambers of Commerce and Industry of India (Assocham). “Majority of Indian ships are less competitive as mostly vessels less than 15 years old are preferred in international trade,” said D S Rawat, Secretary-General of Assocham. “The Government needs to act as a facilitator and create opportunities for a healthy business climate to attract fresh investments in the shipping sector.” It said India has a total of 1,122 ships in its fleet and 41 per cent of these, or 466 vessels, fall in the age group of 20 years and more. Considering that the average life of a shipping vessel is about 26 years, most of the existing vessels need to be replaced. An average cost of constructing a large vessel is about USD 100 million. Therefore, the size of this opportunity would be USD 3.3 billion. The share of Indian ships in carrying out the country’s overseas trade declined from about 36 per cent in 199091 to just over eight per cent in 2009-10. “Bulk of our essential supplies such as oil is carried on foreign flag

vessels leaving our energy supplies at the risk of an abrupt stoppage in case of any eventuality. Besides, it also causes significant drain on precious foreign exchange in terms of payment of freight charges, which could otherwise be used for other high priority imports or for building up indigenous infrastructure.” Although India has one of the largest merchant shipping fleet, it contributes just over one per cent to the world deadweight tonnage. From about 549 vessels in 2000, India’s shipping fleet size increased to 1,122 vessels in 2011, indicating a compounded annual growth rate of about seven per cent. During this period, India’s shipping capacity increased from over 69.53 lakh gross register tonnage (GRT) to 110.61 lakh GRT. India accounts for just about one per cent of the global shipbuilding industry, which is worth about ` 7.3 lakh crore. China, South Korea and Japan are the leading shipbuilding nations and cater to over 80 per cent of the global shipbuilding industry. China alone accounts for over 35 per cent share. India needs to refurbish its ports and shipping infrastructure to enhance the handling capacity and facilitate operation of larger shipments to increase its share in the global maritime business. The Government should rope in maritime States to identify and make land available, thereby seeking their contribution for setting up a new port or a shipyard in each of these states,” Rawat said.

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[NEWS: INDIA]

Shipping Ministry to Augment Port Capacity by 2014

Centre may Ease Cabotage Law for Vizhinjam

Chennai: The Ministry of Shipping is in the process of augmenting the port capacity by the end of the 12 th Five Year Plan to 2,493.10 Million Tonnes Per Annum (MTPA), with major ports accounting for about 50 per cent of this capacity. In 2013-14, 30 projects will be added involving an additional capacity of 282 MTPA, with an investment of ` 24,959 crore. As on September 30, 2013, 13 of these projects have already been awarded. In the year end review report for 2013, the Ministry said that the capacity of Indian Ports was 1,245.30 MTPA at the end of 11 th Plan period. During the fiscal, the Ministry said it has been focusing on new capacity augmentation projects and mechanisation projects apart from capital dredging projects. To achieve the 12 th Plan targets for capacity augmentation, the work on two new Major Ports, one at Sagar Island in West Bengal and the other at Durgarajpatnam in Andhra Pradesh are in progress. These two ports will add additional capacity of around 100 MTPA, said the Ministry.

Thiruvananthapuram: The Centre is favourably disposed to granting relaxation in Cabotage Law for proposed Vizhinjam International Seaport and Container Transhipment Terminal. Milind Deora, Union Minister of State for Shipping, IT and Communications, said that Cabotage means ‘navigation or trade along the coast.’ Used legally, it means the domestic shipping routes shall be served solely by domestic shipping lines. Relation in the law will make the project more viable and investmentfriendly, Deora said. “We will take up the matter with stakeholders and the ministries concerned,” he added.

On the Inland Water Transport (IWT) Sector, which is being regulated by the Ministry of Shipping, the Ministry said that this sector will be pushed during the 12th Plan. So far, five waterways have been declared as National Waterways. In addition, Barak River from Lakhipur in Manipur to Bhanga in Assam (121 km) is proposed to be declared as the sixth National Waterway.

Bhubaneswar: The Odisha Government will hand over land to Container Corporation of India (CONCOR) for its proposed logistics parks by March 2014. “CONCOR has requested us to expedite land allotment for their multi modal logistics parks (MMLPs). We are going to hand over land to them by March 2014”, said a senior government official.

Cochin Shipyard Ready to Build LNG Vessels

Kochi: The Cochin Shipyard Ltd (CSL) is now readying to take up the offer from the Ministry of Petroleum and Natural Gas to build LNG vessels in the country. “We have already held talks with officials of the ministry and Gas Authority of India Ltd (GAIL) on this. We are quite excited about the proposal to make LNG vessels in India. We are going to pursue it seriously,” said Commodore K Subramanian, Chairman and Managing Director of CSL. The proposal to make LNG vessels in the country will be a big relief for the order-starved Indian shipyards, Subramanian said. Petroleum Secretary Rae had said the ministry was now thinking of amending tender conditions so that Indian shipyards can build such gas carrying vessels in partnerships with global shipyards. Or the shipyards abroad, who win the contract, could be persuaded to build the vessels in India.

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CONCOR to Get Land for Logistics Parks Soon

CONCOR Chairman and Managing Director Anil K Gupta called on Odisha Chief Secretary J K Mohapatra and detailed his organisation’s plans for the state. CONCOR, a mini-ratna Central PSU has evinced interest to establish MMLPs at five industrially important locations- Jharsuguda, JajpurKeonjhar Road, Paradeep, Muniguda and Angul. The MMLP at Jharsuguda needs 28.31 acres of land and is expected to be commissioned by the end of 2015. The MMLP at Paradeep has been proposed near Siju station on the Paradeep-Haridaspur rail line under East Coast Railway’s (ECoR) jurisdiction. The park is coming up on 60 acres of land owned by Odisha Industrial Infrastructure Development Corporation (IDCO). Rail India Technical and Economic Services (Rites), as been engaged to prepare the technoeconomic feasibility study for the project. Major industries like Posco, Indian Oil Corporation Ltd (IOCL), Indian Farmers Fertilisers Cooperative Ltd (Iffco), Essar Steel and Paradeep Phosphates Ltd (PPL) are expected to be beneficiaries of the Paradeep MMLP.

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[NEWS: INDIA]

Fall in Iron Ore Exports by 52 per cent in 2013

Bangalore: Continuing a downward trend for a fifth year in a row, India’s iron ore exports declined 52.5 per cent to 14.1 million tonnes for 2013. This includes 820,000 tonnes of iron ore pellets. In 2012, exports were 29.7 mt. The export in 2013 was a tenth of the peak seen in 2009. India is now the 10 th largest exporter from fourth the previous year in the world. China is the world’s largest consumer of iron ore; 80-90 per cent of global export goes there.

Ennore Port to Ship Honda Cars for Exports

Ennore Port

“From 2014, the situation might improve but not dramatically. With more caps and bans on production and exports India might never regain its Number 3 ranking in the global export market,” according to Delhi-based OreTeam Exim Pvt Ltd, which tracks the industry.

Chennai: Honda Cars India will use the Ennore Port to export cars to South Africa, according to port officials. Officials said it will also finalise an agreement with Ford India for the car manufacturer to use the port as an export base. Officials said leading original equipment manufacturers (OEMs) such as Nissan, Toyota, Volvo and Ashok Leyland use the Ennore Port to ship out vehicles. Ford and Honda Cars will soon follow. Honda Cars’ spokesperson said the car manufacturer finds it attractive to use the port even if it is away from its production facility in Greater Noida than the ports on the west coast.

The year 2013 also saw India’s ranking going below 10 th on the global list of exporters of iron ore to China. Till 2011, India was behind only Australia and Brazil, both exporting 90-95 per cent of their surplus to the China. “However, we expect Goan iron ore to rejoin the export race in 2014, giving some lift to the volumes,” he said.

Honda mostly ships the Brio and the Amaze to South Africa. The infrastructure for car exports at Ennore Port is attractive and cost effective. Also with other leading OEMs exporting to South Africa, availability of car carriers is also better. During the current year, Honda Cars will export about 6,000 cars to South Africa.

The decline in 2013 was mainly due to the absence of Goa as compared to the previous year. Mining and transportation Goa was suspended there in the second half of 2012.

Coastal Shipping may Get Boost from Manufacturers Hyderabad: Makers of steel, fertiliser, cement and other commodities will now get cash incentives from the Shipping Ministry for diverting the movement of their finished products from road and rail to Coastal Shipping. The Ministry of Shipping has approved a scheme that seeks to provide incentives to manufacturers and shippers to opt for coastal shipping in the form of cash incentives and reduction in port handling charges. It is expected to come out with a formal announcement in the next couple of weeks. The scheme is based on the recommendations of the high-level committee instituted by the Ministry to give a boost to coastal shipping and ease the burden on road and rail movement of commodities. P V K Mohan, Chairman of the committee and Chairman of the National Shipping Board, expects at least 20 million tonnes of cargo transported by road and rail to be diverted to

coastal shipping — which is cheaper than other modes of transportation. At present, about 150 million tonnes of cargo are moved through this mode of transportation, constituting hardly seven per cent of India’s overall cargo movement. According to the new scheme, new cargo that are transported through Coastal Shipping will get an incentive of 50 paisa per tonne per nautical mile up to a maximum of 500 nautical miles. The loading ports will administer the release of the incentive and these in turn will be later reimbursed by the Ministry. The potential of coastal shipping has not yet been fully exploited in India. Though Coastal Shipping has evident advantages over land based modes of transportation, it has not become yet become an integral part of the country’s transport infrastructure. The cargo carrying capacity of ships is several times greater than that of rail wagons or trucks and therefore coastal shipping offers the benefit of low transport operating and low logistics cost.

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[NEWS: INDIA]

Decline in Container Volume at Major Ports

New Delhi: According to the latest traffic data released by the Indian Ports Association (IPA), the container traffic of export and import containers handled by major ports in India declined 4.15 per cent year-over-year from April to December, but total cargo throughput was almost 2 per cent higher. Cumulative container volume in the first three quarters of fiscal year 2013-14 totalled 5.53 million Twenty Foot Equivalent Units (TEUs) down from 5.77 million TEUs in the same period in 2012. Overall containerised cargo tonnage slipped 4.48 per cent to 85.23 million tonnes (mt). Container volume at Chennai Port, the second largest container gateway, was estimated at 1.1 million TEU, compared with 1.2 million TEU. The neighboring Port of Tuticorin, which is constructing a second terminal of 600,000 TEU annual capacities, reported a marginal growth, having handled 369,000 TEU, up from 353,000 TEU. The eastern Port of Kolkata, which includes Haldia Dock, handled 431,000 TEU, tumbling 4 per cent from 450,000 TEU. Despite the continuing container volume slowdown, several major Indian ports are going ahead with plans to augment container-handling capacity by building new terminals through private participation. Projects in the pipeline include a 4 millionTEU fourth terminal at Nhava Sheva, as well as additional facilities at the ports of Kandla, Kolkata and Ennore.

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Longest Container Berth in Vizag Soon

Vizag Port Visakhapatnam: The Visakhapatnam Container Terminal Private Limited (VCTPL) has bagged a ` 633.11-crore project for extension of the existing container terminal at Visakhapatnam Port over the next two years. After completion, it would be the first container berth to have a length of 840 meter making it longest container berth in the country. However, when the VPT held discussions for revenue sharing, all companies except the VCTPL backed out. The VCTPL offered four per cent revenue share and increased it up to 10 per cent but the VPT Board cancelled the bid stating that the percentage was very low. The VPT Board invited bids again and VCTPL was the only one which stood in the final fray. Following negotiations between both the companies, VCTPL offered 11.044 per cent of revenue sharing with the Port Trust on its annual income. As per the final decision of the VPT Board during a meeting, the bid was awarded to VCTPL for execution in 24 months. The existing container berth of 450 m would be extended by another 390 m, resulting in total length of 840 m. Thus, it would be the first container berth with a length above 800 meter in the country.

CONCOR Eyes 10 % Growth in FY14 New Delhi: “Container Corporation of India (CONCOR) is going ahead with its capacity expansion plans. The company has targeted Rs 1,096 crore to be invested in this year. The company’s H1FY14 revenues grew 8.5 per cent and it expects to end FY14 with 10 per cent growth”, said Anil K Gupta, CMD, CONCOR. The export import revenues have helped the company recover costs, Gupta said. He said, CONCOR expects to maintain margins of around 22 per cent and may see an improvement. He said, “First half was very good for us. We had grown at around 8.5 per cent. Now we expect that in the second half the momentum will continue, we are in fact hoping to do better in the second half than the first half.” He added that “As you know, we have been readying ourselves to take the traffic increases on the Dedicated Freight Corridor (DFC). I have got 15 projects out of which four are on the DFC itself. We are looking at it in a very positive manner. It will give us a tremendous boost in the capabilities to run faster trains and heavier trains.” CONCOR was established in 1988 and works mainly in three verticals -cargo terminal, terminal operator and warehouse operator. The export import revenues have helped the company recover costs, Gupta said.

| Dec 2013 - Jan 2014 2/1/2014 4:22:10 PM

[NEWS: INDIA]

India Re-elected to IMO Council

New Delhi: India, which ranks 11 th amongst major shipbuilding countries in the world, has been re-elected unopposed to the Council of International Maritime Organisation (IMO) for two years. “India has had the privilege of being elected to and serving the Council of the IMO, ever since it started functioning, and till date, except for two years for the period 1983-1984. Presently, India is in the Category-B, of the Council of the IMO, representing nations with the largest interest in international seaborne trade,” Shipping Ministry has said. IMO Council, which acts as the IMO’s Governing Body, has a crucial role to play in deciding various important matters in relation to the global shipping industry, the organisation’s work programme strategy and budget. Members of the Council consist of 40 member states, elected by its Assembly including 10 members in category A with the largest interest in providing international shipping services; 10 members in category

Govt may Ask Ports to Fund DCI

New Delhi: Admitting that state-run Dredging Corp. of India Ltd is facing fund shortage, Union Shipping Secretary Vishwapati Trivedi said the company is in the process of raising `.1,000 crore from banks and ports. “We will be raising ` 1,000 crore from either banks or we are saying let the ports, flush with cash come in and give a loan to the Corporation for dredging projects at their ports,” Trivedi said. He said the Corporation is not mulling raising the money by issue of bonds like it did last year. “The government is also not contemplating a fund infusion into the company to meet the requirements, he added. Terming dredging as a major challenge for the staterun major ports, Trivedi conceded that it takes a lot of efforts to drive it. In spite of the hindering factors, he said the company have achieved the 14 metre depth in channels of all the major ports, except the one at Kolkata, where it is very difficult to achieve that level due to the tough environment present there.

B with the largest interest in international seaborne trade and 20 members in category C with special interests in maritime transport or navigation. India has been one of the earliest members of the IMO, having ratified its Convention and joined it as a member-state, in the year 1959. India ranks amongst the top 20 shipowning countries of the world, in terms of gross tonnage [GT], as well as deadweight tonnage. The Ministry said India has always been taking keen interest in the activities of the international/UN specialised bodies such as the IMO and ILO on issues concerning the promotion and facilitation of balanced and accelerated maritime transport. It has till date acceded to/ratified about 36 of the Conventions/ Protocols adopted by the IMO and 6 of them are under consideration for the purpose, it said. The IMO is the United Nations specialised agency with responsibility for the safety and security of shipping and the prevention of marine pollution by ships.

DP World, JM Baxi Group to Build Box Terminal at Vizag

New Delhi: A positive sign has emerged after the signing of the Bilateral Investment Promotion and Protection Agreement (BIPPA) aimed at boosting investments between India and the United Arab Emirates. A consortium, comprising DP World and Mumbai-based JM Baxi Group, has been selected to build and operate a new container terminal at Visakhapatnam. The consortium, which already operates the Visakhapatnam Container Terminal, was the lone bidder for the project. The new terminal is to be built at the site of the existing terminal to accommodate larger ships, said officials. They added that the project is on a build-operate-transfer basis for a period of 30 years. Financial details could not be ascertained. DP World, the world’s third-largest port operator, said in July last year that it would invest about USD 200 million (around Rs 1,243 crore) in building a new container terminal at Jawaharlal Nehru Port Trust (JNPT) near Mumbai. The terminal is to be built next to the Nhava Sheva International Container Terminal, which DP World operates, and is expected to help ease congestion at JNPT.

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[NEWS: FOREIGN]

APM Terminals invests in Nigeria Port

Angola: Importers and businessmen whose businesses are based in the eastern parts of the country have been provided with the opportunity of taking delivery of their consignments from APM Terminals at Onne Oil & Gas Free Zone. The Onne port, which in recent times has received tremendous investments in excess of USD 30 million in the area of acquisition of cargo handling equipment, terminal and infrastructure development, has started receiving the largest West Africa-Maximum (WAF-MAX) vessel with 4,500 capacity twenty-foot equivalent units (TEUs) of containers built and owned by Maersk Shipping Line. Statistics have shown that majority of the seaports in the east, which include Warri, Port Harcourt, and Calabar ports built by the Federal Government to serve importers from the northern and eastern parts of the country, have been grossly under-utilised by importers. This could be blamed on high freight charges on imports, security challenges and shallow depth of water that make it difficult for bigger vessels to call eastern ports. Due to the issue of high freight charges at the eastern ports, Nigerian importers prefer ports in Lagos as their destination ports. West African Container Terminals, which is owned and operated by APM Terminals, has a current capacity of 212,000 twenty-foot equivalent units, but the terminal aimed to handle about 210,000 twenty-foot equivalent unitsin 2013.

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Evergreen Line Charters ten 14,000 TEU Vessels

Taiwan: Evergreen Line is continuing its fleet renewal program and has signed charter agreements with both Costamare and Shoei Kisen Kaisha to each provide, on charter, five 14,000 TEU containerships to be delivered during 2016 and 2017 respectively. The ten new vessels, including the seven recently announced by Evergreen Marine Corp & its subsidiaries, will further optimise the competitiveness of Evergreen’s operating fleet and reduce the carrier’s unit costs. As this is a fleet renewal program, the newbuildings will be replacements for existing vessels and balanced by the redelivery of currently chartered ships when charter periods expire. Evergreen’s operating tonnage therefore will not be increased. The ten ships will be fully equipped with fuel saving technology. Their fuel consumption will be substantially lower than ships of the same size built prior to 2010. These ships will not only enhance the line’s operating performance but will also meet the stringent requirements for environmental protection that the carrier has set itself.

Shanghai: World’s Busiest Container Port in 2013

Shanghai Port

China: China’s Shanghai Port has retained its title as the world’s busiest container port in 2013 with a total throughput of 33.6m TEU, up 3.4 per cent from 32.5m TEU in 2012. Shanghai Port has been the world’s largest container port since 2010 when its volumes surpassed that of Singapore, the sources said. Singapore recorded a throughput of 29.8m TEU in the first 11 months of last year, indicating that the port would need in excess of 3.8m TEU of throughput in December to beat Shanghai. Singapore is expected to release its 2013 volumes. Last year in October, Shanghai opened a twoway traffic lane in the main channel of Yangshan Deepwater Port, allowing shipping lines to save on costs and boost turnover for the port. Shanghai is also accelerating the implementation of shipping-related policies under the new pilot free trade zone and studying the launch of the trading of freight index derivatives, according to Shanghai Urban Construction and Communications Commission. The city will also extend a tax rebate program to facilitate the refund of exported goods to be claimed at their ports of departure if shippers use Yangshan as a transit.

| Dec 2013 - Jan 2014 2/1/2014 4:21:04 PM

[NEWS: FOREIGN]

Scope for Singapore Port Expansion million boxes a year. That will help Singapore, home to the world’s second-busiest container port, lure goods made in Southeast Asian nations and then ship them worldwide. Singapore’s ambition is an example of how countries are spending billions of dollars to add capacity as trade within Asia is expected to expand twice as fast as that between Asia and Europe. That’s raising stakes for Hong Kong billionaire Li Ka-shing’s port operator Hutchison Whampoa Ltd. (13) in a region which accounts for 41 percent of global container shipments. Singapore Port

Singapore: As Samsung Electronics Co. (005930) and Honda Motor Co. (7267) are building new factories in Vietnam and Thailand, Singapore is readying a mega port to handle all those mobile phones, TVs and cars. The city-state is building a new port west of the current 1,000 hectare (2,471 acre) site, to double capacity to 65

“We want to make sure we have capacity to be able to service the growth that can take place going forward,” Singapore’s Transport Minister Lui Tuck Yew said in an interview. “We have seen the European countries mired in difficulties for a number of years but will that always be so? We need to be able to look beyond the current difficulties.”

Wärtsilä to Supply Propulsion Systems for Tankers

Hansa Heavy Lift Expands in Australia

China: Wärtsilä, the marine industry’s leading solutions and services provider, has received the order to supply complete main propulsion systems for six new chemical tankers. The ships are being built at the Hudong-Zhonghua Shipbuilding Group yard in China on behalf of Stolt Tankers BV, the operator of one of the world’s largest chemical tanker fleets and a unit of Stolt-Nielsen Limited. There is an option for a further two vessels.

Australia: As part of ongoing expansion plans, Hansa Heavy Lift has extended its network with a newlyestablished set up in Australia, based in Perth, and effective from the first of January 2014. The office is managed by John McNamara and Trent Robson, who have considerable experience in the project and heavy lift shipping industry.

The Wärtsilä propulsion packages include Wärtsilä RT-flex50 2-stroke engines, controllable pitch propellers with a tunnel gearbox and shaft generator, and oily water separators. Deliveries of the equipment are scheduled to begin in summer 2014. By being able to have the complete propulsion packages delivered from a single supplier, efficient integration of the various systems is ensured. Importantly, the combination of a 2-stroke engine and shaft generator requires optimal co-ordination between the engine controls and the propulsion controls, which is significantly facilitated by having all systems supplied and delivered from the same source. Furthermore, with complete propulsion packages coming from one supplier, the risks of costly building delays caused by multi-supplier deliveries can be avoided.

They report into Hansa Heavy Lift’s regional headquarters for Australasia, based in Singapore and headed up by Jesper Traerup. John and Trent said that Hansa Heavy Lift has the youngest fleet available in the market and provides Australia with a true alternative to the traditional heavy lift operators. They said they were looking forward to servicing their client base with the full support of the Hansa Heavy Lift team. Hansa Heavy Lift now has eleven exclusive agents worldwide, as well as the Perth office and offices in Singapore, Houston and headquarters in Hamburg, Germany. “We are pleased to welcome Hansa Heavy Lift Australia to the family,” said Joerg Roehl, Chief Commercial Officer of Hansa Heavy Lift. “Australia represents an exciting and growing market for us, and we are delighted to have two such experienced industry players to head up our operation there.”

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[NEWS: FOREIGN]

ClassNK’s New Guidelines on Duplex Stainless Steels

Japan: Leading classification society ClassNK announced that it has released new Guidelines on the Welding of Duplex Stainless Steels. The guidelines have been developed to help shipyards safely and effectively make use of new duplex steels that are increasingly being used in the construction of cargo tanks for chemical carriers. As part of its work to support the safe construction of ships, ClassNK has released the guidelines for free via its website. Duplex stainless steel has a two-phase microstructure containing grains of both ferritic and austenitic phase, giving it a combination of excellent corrosion resistance and high strength with lower nickel content than austenitic stainless steels such as SUS304 and SUS316L. The vast majority of the world’s chemical tankers with stainless steel cargo tanks are built at Japanese shipyards, which have traditionally used austenitic steels for cargo tank construction. Recently however these shipyards are increasingly using duplex stainless steels as an alternative to austenitic stainless steels for their corrosion resistance and high strength properties. Before shipyards or builders can use duplex stainless steel in the construction of vessels, however, they must first obtain approval for the Welding Procedure Specification (WPS) that will be used when welding duplex stainless steel. It was in order to simplify this process and support the widespread use of these new materials at shipyards around the world that ClassNK released its new Guidelines on the Welding of Duplex Stainless Steels on 14 January 2014. The new guidelines, which conform to ClassNK rules, provide a comprehensive summary of the requirements for welding procedure specification certification and welding procedure qualification tests, including relevant precautionary measures for the welding of duplex stainless steels.

S Korea to Introduce Electric Ships

South Korea: South Korea will roll out its first electric ships this year in a move to slash energy costs and greenhouse gas emissions of small fishing farms, according to Yonhap news. The government will fund 1.2 billion won (USD 1.13 million) to introduce up to 40 vessels, each costing about 50 million won (USD 47,328), according to the report. Each vessel only costs one-tenth as much to operate compared with fuel-powered ships, noted the report. The tradeoff is in its speed, where the ship is limited to about 5 knots per hour, much slower than fuel-powered ones. It will also be restricted in operating range, which means they will be mainly suitable for nearby seas or inland waters. The move is the latest energy saving push by the government, which last June implemented a set of rules for temperature management in buildings. Amongst the moves, buildings must keep indoor temperatures above 26 degrees Celsius and stores are banned from leaving their doors open.

Fall in Hong Kong Port Box Volumes in 2013 December, seeing a 7.7 per cent rise in throughput to 1.55 million TEU, although the midstream terminals continued their trend of long slow decline with a 2.6 per cent fall in volumes to 410,000 TEU. This could clearly be seen in the trend for the year, with midstream terminals seeing a 8.4 per cent plunge in volume to 5.17 million TEU for 2013 compared to 5.64 million TEU the year before. Hong Kong Port

Hong Konga: Despite a valiant effort in December with a 5.4 per cent rise in container throughput to 1.96 million TEU, the port of Hong Kong expectedly saw overall volumes for 2013 fall 3.6 per cent to 22.29 million TEU compared to 23.12 million TEU the year before. The main Kwai-Tsing terminals did particularly well in

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The Kwai-Tsing terminals had a hard time keeping up with even the flat growth of the year before, posting a 2 per cent fall in volume to 17.12 million TEU in 2013. Largest ship to ever enter the Thames docks at London’s newest port. The new London Gateway port welcomed the largest ever ship to enter the Thames this week, after a huge container vessel was diverted by bad weather.

| Dec 2013 - Jan 2014 2/1/2014 4:21:05 PM

[NEWS: FOREIGN]

DNV GL supports LNG as Ship Fuel Germany: A groundswell of momentum is building in the US around the use of LNG as ship fuel as owners, ports and regulators, have realised the benefits of this emerging technology. “It used to be said that LNG was a chicken or egg problem,” says Paal Johansen, who leads DNV GL’s maritime business in the Americas, “but now it is looking as if we not only have the egg, but the chicken and the henhouse too. As we see this trend grow, DNV GL is working to ensure that owners can be confident that not only the technology their vessels need has been vetted, but that the supporting infrastructure and operational practices are well established.” A combination of rising bunker prices, environmental awareness and regulations, growth in production and developing infrastructure have served as the tipping

Port of Singapore is World’s Top Ship Bunker Port

Singapore: As the global economy slowly returned to growth, the Port of Singapore says it maintained its global lead in bunker sales, and achieved good growth in annual vessel arrival tonnage, container and cargo throughput in 2013. Singapore informs it is now home to about 130 shipping groups. The maritime cluster employs more than 170,000 people and contributes some seven per cent to Singapore’s GDP, facts that were reflected in the Maritime and Port Authority of Singapore’s estimates of port indicators announced by Minister for Transport, Lui Tuck Yew. Annual vessel arrival tonnage reached 2.33 billion GT in 2013, a hike increase of 3.2 per cent from the 2.25 billion GT achieved in 2012. Container ships and Tankers were the top contributors, each accounting for around 30 per cent of total vessel arrival tonnage. The total volume of bunkers sold in the Port of Singapore in 2013 was 42.5 million tonnes.

point which could see LNG establish itself as a viable primary fuel for commercial vessels in the US. “The US has tremendous natural gas resources, especially from unconventional sources, and production hit the highest levels on record in August 2013. Utilising this resource addresses the key concern in shipping – the rising cost of fuel oil, while at the same time reducing the industry’s impact on the environment,” continues Johansen. Several owners have made the commitment to switching to LNG, in anticipation of the strictly limited emissions to air allowed under both the North American Emission Control Area (ECA) requirements and Phase II of California’s Ocean Going Vessel (OGV) Clean Fuel Regulation. Two owners have already decided to work with DNV GL as they make their first forays into this new chapter of shipping.

Maersk set for further expansion The Hague: The AP Moller-Maersk Group’s recent moves to sell over USD 4bn of non-core and under-performing assets begs the question of where the money will be re-invested, and its likely impact on existing market forces within the container shipping industry. Maersk Line already enjoys enormous economies of scale within the sector, so, should the cash be ploughed back into providing even more competitive services, its cash strapped adversaries will be quaking in their boots. Although Maersk Oil is currently the most profitable part of the AP Moller-Maersk Group, APM Terminals and Maersk Line are also likely to be big recipients of the cash generated by its recent sale of non-core assets. The former because of its profitability, and the latter to protect its dominant market position within the liner industry. Maersk Line also accounts for around half of APM Terminal’s volumes. APM Terminals, the Group’s container terminal business, provides a good profit margin and one of the best Return on Invested Capital (ROIC) in the group so the money it will receive is only natural. This is especially relevant at this time given that APM Terminals has a large number of projects on the go. The company’s business model is focused primarily on higher growth emerging markets, with emphasis on developing greenfield, deep-water facilities serving gateway traffic on a multi-user basis, along with the expansion of existing facilities. The company currently has 7 new terminals under development, as well as expansion projects at no less than 16 existing terminals. All but 4 of these 23 developments are in emerging market locations. But it is Maersk Line that is likely to have its eyes on a good part of the available cash. The Group’s liner shipping division represents the lion’s share of invested capital and whilst its profitability and ROIC is below the Group average (and stated ROIC ambition of at least 10%), it is also where the Group has most to lose/protect.

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[MARINE TECH]

Korean Register Patents World’s First ‘Smart Fleet’ App

he Korean Register – an IACS member classification society – has obtained a patent on its ‘Smart Fleet’ app which was launched earlier this year. This unique and world leading app delivers up-to-the-minute information on vessels, fleets, surveys, audits, port state control and more direct to a smart phone or tablet. Surveyors and others working in the field are now able to access this vital survey and technical information rapidly and without fuss while on the move.

The ‘Smart Fleet’ app is a great tool that is already making efficiency improvements to shipping companies - Jung Dongjae, General Manager, Korean Register

Jung Dong-jae, General Manager of KR’s information technology team and in charge of developing this application, said: “The ‘Smart Fleet’ app is a great tool that is already making efficiency improvements to shipping companies. Today, busy people expect instant access to quality, reliable and bang up-to-date information and that is exactly what ‘Smart Fleet’ delivers. We have already seen a rapid take-up of this app and we expect many more users to come online soon. Obtaining the patent demonstrates that we have developed another piece of unique technology for our global customer base.”

Norwegian Introduces Interactive Digital Signage Fleetwide The interactive signage has been such a big hit on Norwegian Breakaway that we decided to expand it to our fleet so that all of our guests can take advantage of this exciting technology,” said Kevin Sheehan, CEO, Norwegian Cruise Line.

orwegian Cruise Line will expand the innovative digital signage first introduced on Norwegian Breakaway to the line’s entire fleet by Summer 2015. The interactive touch screen signs will allow guests to order specialty items, get directions and reserve dining, shore excursions and entertainment simply with a scan of their stateroom key. The screens will also be a feature on the line’s newest ship, Norwegian Getaway, arriving to her homeport of Miami in February 2014. Each Norwegian ship will have between 30 and 50 touch and static screens located in prominent areas around the vessel. The screens will give guests the opportunity to make reservations for restaurants, entertainment and shore excursions as well serving as a personal concierge. Guests will be able to order beverages, flowers, dining packages and more, including goodies and custom cakes from Carlo’s Bake Shop on Norwegian Breakaway to celebrate special occasions. The signs even provide guests with directions and maps to other locations on board, making it easy for them to navigate the ship. “The interactive signage has been such a big hit on Norwegian Breakaway that we decided to expand it to our fleet so that all of our guests can take advantage of this exciting technology,” said Kevin Sheehan, CEO, Norwegian Cruise Line.

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| Dec 2013 - Jan 2014 2/1/2014 3:19:09 PM

[MARINE TECH]

Astrium Services Opens Global Logistics Center The new logistics center gives Astrium Services the ability to meet increasingly time and location sensitive delivery requirements from its European partners and customers.

strium Services, the global innovative provider of satellite enabled telecom solutions, has opened a new logistics center in Rotterdam, The Netherlands. Alongside existing logistics facilities in Houston and Singapore and specialized regional warehouses, like the maritime VSAT warehouse in Stavanger, the new center will play an important part in streamlining the global distribution of VSAT and MSS equipment, to ensure faster delivery times for customers anywhere in the world. The new facility in Rotterdam supports Astrium Services logistics organisation in meeting current industry requirements whilst preparing for the continuing strong expansion of the maritime and offshore VSAT business. It will hold responsibility for delivery of all hardware components for Astrium Servicesâ&#x20AC;&#x2122; satcoms portfolio, including antennas, modems and spare parts, in addition to bundled solutions containing VSAT and MSS systems. The new logistics center gives Astrium Services the ability to meet increasingly time and location sensitive delivery requirements from its European partners and customers.

Imtech Marine Extends VSAT Coverage Network to Indian Ocean

mtech Marine has upgraded and extended the coverage of its Global VSAT Network. In addition to its wide network, Imtech Marine can now offer VSAT coverage in the Indian Ocean, roughly between Tanzania, Ethiopia, Madagascar, India and Indonesia, which is an important and busy area for the international maritime industry. Imtech Marine offers a reliable, cost effective and always-on broadband communication solution that utilizes the iDirect Evolution platform. This global solution covers all major shipping routes and provides guaranteed quality of service of 99,5%, Service Level Agreements, 24/7 support and worldwide VSAT coverage, including automatic beam switching.

The VSAT network of Imtech Marine provides reliable communication connections for crew, captain and other users on board. - Rob Verkuil, Imtech Marine General Manager of Connectivity

Rob Verkuil, Imtech Marine General Manager of Connectivity said that by extending our Global VSAT coverage map we can offer our customers economical and effective broadband connectivity in an area where a lot of vessels are sailing. The VSAT network of Imtech Marine provides reliable communication connections for crew, captain and other users on board. The extension of our VSAT coverage in combination with the recently introduced Imtech Marine portfolio of unique value added services offers our customers the possibility for a total connectivity solution.

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[MARINE TECH]

Norwegian Introduces Interactive Digital Signage Fleetwide

The interactive signage has been such a big hit on Norwegian Breakaway that we decided to expand it to our fleet so that all of our guests can take advantage of this exciting technology,” said Kevin Sheehan, CEO, Norwegian Cruise Line.

MacGregor’s MacRack Technology Specified for Five Greek Bulk Carriers Economical and environmentallyfriendly electric-drive systems for MacGregor side-rolling hatch covers have been ordered for two new series of Greek bulkers being built by Sungdong, in South Korea.

acGregor, part of Cargotec, has confirmed that five 180,000 dwt bulk carriers under construction in South Korea at Sungdong Shipbuilding and Marine Engineering, will feature MacGregor side-rolling hatch covers operated by MacGregor’s innovative MacRack technology. The order includes the design and supply of key components and the fabrication of the hatch covers. The bulkers are destined for two Greek owners, the first two for Quintana Shipping and the remaining three for Alcyon Shipping. The first vessel is scheduled for delivery at the end of 2014.

“Technology that drives new standards of efficiency and minimises environmental impact is an essential element of today’s market,” said Torbjörn Dahl, Senior Naval Architect for Bulk Ships at MacGregor. “The new orders demonstrate shipowners’ willingness to invest in this type of technology and they are a testament to the confidence these particular owners have in MacGregor’s ability to deliver this type of solution. We anticipate that MacRack will become the standard system for side-rolling hatch covers, making separate hatch cover lifters obsolete.”

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| Dec 2013 - Jan 2014 2/1/2014 3:19:10 PM

[MARINE TECH]

Multi Maritime Launches Latest MSV Concept The MM 95 MSV design has collected into itself the well-proven performance of her “sisters”, latest marine and offshore technologies and market’s trends and requirements.

ulti Maritime AS launched its latest concept for the series of MM offshore multi-purpose designs called MM 95 MSV.

The design is continuing the success of the offshore “sisters” previously designed by Multi Maritime AS as MM66 MSV known in the market as “Atlantis Dweller”, MM76 MSV “Stril Explorer”, MM 85 MSV “Stril Krunborg” and MM78 WSV concept dedicated for serving Offshore Wind installations. The MM 95 MSV design has collected into itself the well-proven performance of her “sisters”, latest marine and offshore technologies and market’s trends and requirements. MM 95 MSV is very commercially and technically competitive and the ideal offshore tool for IRM works, ROV services, DIVING support, SURVEY services, SUBSEA CRANE operations and RFO service.

Teledyne Blueview Introduces V Series 2D Multibeam Imaging Sonar

he Teledyne BlueView V Series 2D Imaging Sonar has been developed exclusively for VideoRay Pro 4 ROVs.

Ideal for underwater detection and identification tasks in low or zero visibility conditions, the V Series sonar provides both midrange detection and close-range identification capabilities from moving or stationary platforms.

The V Series sonar provides both midrange detection and close-range identification capabilities from moving or stationary platforms.

Adapted from the high-performance P900 Series sonar, the V Series features the same power and capability of its predecessor in a 30% smaller package. The V Series is available with either a 90° or 130° fieldof-view (FOV). The V Series sonar seamlessly integrates into the Pro 4 ROV platform through the custom skid mount and VideoRay Cockpit software. The Integration Skid mounts on the ROV in the field within seconds, allowing for quick addition or removal mid-operation if necessary. All V Series sonars are delivered with an Integration Package containing all necessary hardware and software for operation with the VideoRay Pro 4 ROV.

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[BOOK REVIEW]

Marine Navigation and Safety of Sea Transportation: Maritime Education and Training (MET), Human Resources and Crew Manning, Maritime Policy, Logistics and Economic Matters (Hardcover)

STCW,

Author Pages Price

: Adam Weintrit and Tomasz Neumann : 298 : USD 80.96 Book Description: The TransNav 2013 Symposium held at the Gdynia Maritime University, Poland in June 2013 has brought together a wide range of participants from all over the world. Topics presented and discussed at the Symposium were: navigation, safety at sea, sea transportation, education of navigators and simulator-based training, sea traffic engineering, shipâ&#x20AC;&#x2122;s manoeuvrability, integrated systems, electronic charts systems, satellite, radio-navigation and anti-collision systems and many others. This book is part of a series of four volumes and provides an overview of Education and Training, Human Resources and Crew Resource Management, Policy and Economics and is addressed to scientists and professionals involved in research and development of navigation, safety of navigation and sea transportation.

ULTIMATE MARINE RECRUIT TRAINING GUIDEBOOK: A Drill Instructorâ&#x20AC;&#x2122;s Strategies and Tactics for Success (Paperback) Author Pages Price

: Nick Popaditch : 192 : USD 12.97

Book Description: The Ultimate Marine Recruit Training Guidebook is a comprehensive, practical, and easy-to-follow guide written specifically for every new or prospective recruit about to enter basic training. Gunny Pop offers step-by-step instructions and solutions, including helpful charts and graphics, for how to prepare both physically and mentally for boot camp. Written by a Marine who experienced it firsthand many times over, Gunny Pop explores what recruits will be asked to do (and in many cases, explain why) and the motivating forces behind drill instructor lessons and behavior.

Shipping Finance [Paperback] Author Pages Price

: Stephenson Harwood : 568 : USD 346.75 Book Description: Shipping Finance, the bestselling title, is now in its third edition. With over 500 pages of fully revised and updated material, this is the must-read title for anyone involved in ship finance. This third edition includes an up-to-date analysis of the shipping markets featuring comparisons of the world fleet, alongside complete analysis of ship mortgage terms across the main maritime jurisdictions which also includes both India and China. The authors also provide extensive discussion of the procedure and documentation for registering ships on a country-by-country basis with advice contributed by local experts. This edition features chapters on: the financing of second-hand ships, the financing of newbuildings, the assignment of insurances and earnings, guarantees, indemnities, charges, debentures and other security relied upon by lenders, the sale and purchase of second-hand ships, transhipment and the application of Islamic finance to midstream operations.

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RNI No.: MAHENG/2008/29159 Date of Publication: 1st of every alternate month.

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[CONTENT] Chairman : Publisher, Printer & Editor : Chief Executive Officer :

EDITORIAL

Features Writer Sub Editor Design Team Events Marketing Co-ordinator Subscription Team Production Team

: : : : : : :

Jasu Shah Maulik Jasubhai Shah Hemant Shetty

Vol. 6 | Issue 3 | Dec 2013 - Jan 2014 | Mumbai | ` 150

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add.indd 11

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2/1/2014 11:32:24 AM

[CONTENT]

Contents

Interview 8 ‘Relaxation in cabotage for all Indian ports

is must’ Features

14 Surviving Against Tide

- Anand V Sharma

18 Wave-in-deck Loading of Offshore Structures

-Cdr Balakrishnan G Nair

22 Corrosion Management: An Iceberg for

Indian Shipping Industry - M Valliappan

25 Maritime Development: A Dream Agenda

-Cmde M Jitendran News Features

27 Cabotage Policy in Development of Coastal

Shipping - Rakesh Roy 29 Incentive Scheme to Boost Coastal Cargo - Rakesh Roy

| Dec 2013 - Jan 2014

Freight Watch 31 Freight Watch – November to December 2013

Marine Archeology 33 Of World War II Submarine Discovery

News 42 Indian News 50 Foreign News 54 Marine Tech 58 Book Review

add.indd 2

2/1/2014 11:33:30 AM

[INTERVIEW]

Prakash Tulsiani

MD, APM Terminals Pipavav

8 | Pipavav.indd 8

| Dec 2013 - Jan 2014 2/1/2014 11:46:33 AM

add.indd 5

2/1/2014 11:40:35 AM

APM Terminals Pipavav Port

10 | Pipavav.indd 10

| Dec 2013 - Jan 2014 2/1/2014 11:46:34 AM

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9/27/2013 11:00:49 AM

As per a report, even after relaxation in cabotage law, there are no global shipping lines to take advantage of this policy change. Why? 12 | Pipavav.indd 12

| Dec 2013 - Jan 2014 2/1/2014 11:46:34 AM

PED 97/23/EC add.indd 7

2/1/2014 11:50:56 AM

[Feature]

Customers Breakup Shipyards Commercial, 4% 16.6

Cochin, 16% PSU, 77%

Offshore, 20%

Others, 5% SCI, 6% ONGC, 4% Halul Offshore, 8% African Navy, 10%

51.6

Coast Guard, 35%

Pipavav, 47%

Coast Guard, 35%

L&T, 19%

Dempo, 1%

ABG, 21%

Bharati, 3%

Navy, 42% Indian Navy, 31% Private, 23%

Figure 1 Orderbook upto 2008 (INR 279 Bn)

Authors: Anand V Sharma

Director, Mantrana Maritime Advisory Pvt Ltd., E: anand@mantrana.in

14 | Risk Assesment Shipbuliding.indd 14

| Dec 2013 - Jan 2014 2/1/2014 4:09:55 PM

Filler.indd 15

2/1/2014 3:44:50 PM

Customers Breakup Shipyards 0.3 10 15 6 13 40 21

Others, 0.1% HSL, 4% Tebma, 5% Chowgule, 2% Private, 96% Alcock, 5% Others, 38%

Offshore, 41%

Pipavav, 14% L&T, 7%

Navy, 4% Fredriksen ,3% 114

ABG, 41%

Indian Navy, 4% Commercial, 55%

47 6

Pacific First Shpg., 4% Rolldock B. V., 4% Precious Shipping, 5% Alba Maritime, 8% Reederei, 9%

Bharati, 17% Cochin, 4%

GoodearthMaritime, 3%

Essar, 14%

PSU, 4%

Figure 2 Order book placed between 2009 and 2013 (INR 118 Bn)

Business Comparison Shipbuilding

–

Commercial

Naval

–

Commercial

Naval

| Dec 2013 - Jan 2014 2/1/2014 4:09:55 PM

Risk Assesment Shipbuliding.indd 17

| 17 2/1/2014 4:09:56 PM

[Feature]

Cdr Balakrishnan G Nair

(Indian Navy, Retd) Sr. Principal Structural Engineer J Ray McDermott Engineering Services Pvt Ltd, Chennai E: balakrishnangnair@ymail.com Cause

Insufficient strength

Hazard Source

Specific Hazard

Gross error in design, fabrica-tion, installation or operation

Insufficient design capacity, Fabrication error, Operational damage, Modifications

Degradation

Environment Excessive load

Operation

Deck load â&#x20AC;&#x201C; weight increase, Unsecured objects â&#x20AC;&#x201C; CoG shift

Accidental loads

Dropped objects, Ship impact, Explosion, Fire & heat, Aircraft impact, Iceberg impact, Submarine slide / Seabed slope instability

Hazards faced by offshore structures

18 | Balakrishna nair.indd 18

| Dec 2013 - Jan 2014 2/1/2014 12:50:23 PM

[Feature]

Schematic of Wave-in-deck Loading

Wave crest inundating a jacket top-side

Dec 2013 - Jan 2014 | Balakrishna nair.indd 19

| 19 2/1/2014 12:50:23 PM

acceleration. The slamming contribution is of short duration and drops to zero shortly after the initial impact (See fig).

deck girders

Typical configuration of under-deck girders

Normalized F(horiz) for smooth deck Vs Deck with multiple underdeck girders

Vertical and Horizontal wave-in-deck load

20 | Balakrishna nair.indd 20

| Dec 2013 - Jan 2014 2/1/2014 12:50:24 PM

Wave-in-deck forces influence an offshore jacket structure not

only by their magnitude, which is significant compared to the wave load on the jacket itself, but also because they alter the load

distribution in a manner that introduces high forces into relatively weaker parts of the structure such as the deck legs immediately below the deck.

(a) Depth 75 m / inundation 0.25 m

Static collapse modes for different water depths and corresponding inundation levels

Balakrishna nair.indd 21

(b) Depth 81 m / inundation 5.88 m

| 21 2/1/2014 12:50:25 PM

[Feature]

M Valliappan

Corrosion Management Consultant We CAN Control Corrosion in India Network E: corrosion.management@gmail.com

22 | Corrosion Management-an Iceberg.indd 22

| Dec 2013 - Jan 2014 2/1/2014 12:52:54 PM

[Feature]

Corrosion Management-an Iceberg.indd 23

| 23 2/1/2014 12:52:54 PM

tanks; Bilges; Pipe work and cooling systems; Holds and storage tanks; Boilers and engines; Rudders; Propellers; Bearings; Flanges; Valves; Pumps; Void spaces; Sea chests; Stabilizers.

| Dec 2013 - Jan 2014 2/1/2014 12:52:54 PM

[Feature]

Cmde M Jitendran Chief Consultant Indian Register Of Shipping E: mjitendran@gmail.com

A dream Agenda.indd 25

| 25 2/1/2014 12:56:30 PM

| Dec 2013 - Jan 2014 2/1/2014 12:56:31 PM

[NEWS FEATURES]

Cabotage Policy in Development of Coastal Shipping C

Modal Share on Inland Movement

Coastal

Rail Road Piipeline Others

India Plays around Cabatoge Law.indd 27

| 27 2/1/2014 1:00:37 PM

- Rakesh Roy

| Dec 2013 - Jan 2014 2/1/2014 1:00:37 PM

[NEWS FEATURES]

Incentive Scheme to Boost Indian Coastal Cargo

Incentive Scheme to Boost Indian Coastal Cargo.indd 29

| 29 2/1/2014 4:25:10 PM

| Dec 2013 - Jan 2014

Incentive Scheme to Boost Indian Coastal Cargo.indd 30

2/1/2014 4:25:10 PM

[Feature]

Freight Watch – November to December 2013 1.2

1.17

1.14

1.11

1.08

VLCC supply V's demand (LHS)

World Scale Points - Route TD3

Worldscale Points

Supply V's Demand*

Route TD3 freight rate and weekly supply Vs demand

1.05

Note:*Market in "oversupply" mode when reading is excceds 1, vice-a-versa when below 1. Source: Bloomberg

Note: *Market in “oversupply” mode when reading is excceds 1, vice-a-versa when below 1. Source: Bloomberg

C Authors: Nazir Ahmed Moulvi

Senior Analyst, Department of Research and Strategy, Multi-Commodity Exchange of India Ltd E: nazir.moulvi@mcxindia.com

Niteen M Jain

Senior Analyst, Department of Research and Strategy, Multi-Commodity Exchange of India Ltd E: niteen.jain@mcxindia.com

Freight Watch.indd 31

| 31 2/1/2014 4:14:18 PM

[Feature] Shipping Capacity Statistics Particular

Dec-13

Nov-13

MoM Change

% Dec-12

YoY Change

No of Ships in service

2,302

0.0%

2,287.00

0.7%

DWT Weight in ‘000 tonnes’

373,253

373,317

0.0%

367,151

1.7%

No of new ship orders

163

149

9.4%

128.00

27.3%

No of ships under construction

-5.6%

54.00

-37.0%

Order book as DWT %

10.05

9.39

7.0%

11.34

-11.4%

No of Ships broken

0.0%

-14.3%

No. of VLCCs sailing with cargo

441

432

2.1%

430.00

2.6%

No. of VLCCs anchored

142

143

-0.7%

142.00

0.0%

Avg. speed of VLCCs in knots (Excl. Anchored) 9.23

9.18

0.5%

9.6

-3.9%

Persian Gulf VLCCs Supply vs. Demand

1.1

1.13

-2.7%

1.20

-8.3%

Global

90,305

100,379

-10.0%

87,757

2.9%

Middle East Gulf

23,369

17,824

31.1%

25,547

-8.5%

India

556

1,513

-63.3%

1,393

-60.1%

Oil - floating storage (1000 barrels)

Note: Supply – demand is 1, where both are equal; 1.1 signifies 10% oversupply whereas 0.9 means 10% deficit Source: Bloomberg

| Dec 2013 - Jan 2014 2/1/2014 4:14:18 PM

[MARINE ARCHAEOLOGY]

Of World War II Submarine Discovery Wreckage of longer than a football field at 400 feet ‘Sen-Toku’ class submarine

Giant World War II Aircraft.indd 33

| 33 2/1/2014 4:24:07 PM

(Source: www. Maritime-Executive.com)

34 | Giant World War II Aircraft.indd 34

| Dec 2013 - Jan 2014 2/1/2014 4:24:07 PM

Filler.indd 35

2/1/2014 3:46:14 PM

[MARKETING INITIATIVE]

Dighi Port: First Greenfield Port of Maharashtra

36 | Dighi port.indd 36

| Dec 2013 - Jan 2014 2/1/2014 2:35:41 PM

[MARKETING INITIATIVE]

Dec 2013 - Jan 2014 | Dighi port.indd 37

| 37 2/1/2014 2:35:43 PM

[MARKETING INITIATIVE]

| Dec 2013 - Jan 2014 2/1/2014 2:35:44 PM

[MARKETING INITIATIVE]

FLIR.indd 39

| 39 2/1/2014 2:51:22 PM

[MARKETING INITIATIVE]

| Dec 2013 - Jan 2014 2/1/2014 2:51:22 PM

[MARKETING INITIATIVE]

B P Marine Academy, Belapur Campus

BP marine.indd 41

| 41 2/1/2014 4:17:22 PM

[MARKETING INITIATIVE]

B P Marine Academy, Panvel Campus

| Dec 2013 - Jan 2014 2/1/2014 4:17:23 PM

[NEWS: INDIA]

Arun Gupta

Arun Gupta Likely to be SCI Chairman

SBI Seeks Relaxation on Shipping Loans

Cochin Shipyard

Bangalore: Cochin Port has begun work on setting up a 20 million tonne export-oriented oil refinery and oil trading hub with private funds as part of an ambitious

Dec 2013 - Jan 2014 | India News 44-50.indd 43

| 43 2/1/2014 4:22:08 PM

[NEWS: INDIA]

L&T Gets Orders for 6 Specialised Vessels

L&T Shipbuilding

44 | India News 44-50.indd 44

| Dec 2013 - Jan 2014 2/1/2014 4:22:09 PM

[NEWS: INDIA]

Green Nod for LNG Terminal at Pipavav

Dec 2013 - Jan 2014 | India News 44-50.indd 45

| 45 2/1/2014 4:22:09 PM

[NEWS: INDIA]

Shipping Ministry to Augment Port Capacity by 2014

Centre may Ease Cabotage Law for Vizhinjam

Cochin Shipyard Ready to Build LNG Vessels

46 | India News 44-50.indd 46

CONCOR to Get Land for Logistics Parks Soon

| Dec 2013 - Jan 2014 2/1/2014 4:22:09 PM

[NEWS: INDIA]

Fall in Iron Ore Exports by 52 per cent in 2013

Ennore Port to Ship Honda Cars for Exports

Ennore Port

The decline in 2013 was mainly due to the absence of Goa as compared to the previous year. Mining and transportation Goa was suspended there in the second half of 2012.

Dec 2013 - Jan 2014 | India News 44-50.indd 47

| 47 2/1/2014 4:22:09 PM

[NEWS: INDIA]

Decline in Container Volume at Major Ports

48 | India News 44-50.indd 48

Longest Container Berth in Vizag Soon

| Dec 2013 - Jan 2014 2/1/2014 4:22:10 PM

[NEWS: INDIA]

India Re-elected to IMO Council

Govt may Ask Ports to Fund DCI

DP World, JM Baxi Group to Build Box Terminal at Vizag

Dec 2013 - Jan 2014 | India News 44-50.indd 49

| 49 2/1/2014 4:22:10 PM

[NEWS: FOREIGN]

APM Terminals invests in Nigeria Port

50 | International News.indd 50

Evergreen Line Charters ten 14,000 TEU Vessels

Shanghai: World’s Busiest Container Port in 2013

Shanghai Port

| Dec 2013 - Jan 2014 2/1/2014 4:21:04 PM

[NEWS: FOREIGN]

Wärtsilä to Supply Propulsion Systems for Tankers

Hansa Heavy Lift Expands in Australia

Dec 2013 - Jan 2014 | International News.indd 51

| 51 2/1/2014 4:21:04 PM

[NEWS: FOREIGN]

ClassNK’s New Guidelines on Duplex Stainless Steels

S Korea to Introduce Electric Ships

52 | International News.indd 52

| Dec 2013 - Jan 2014 2/1/2014 4:21:05 PM

[NEWS: FOREIGN]

Port of Singapore is World’s Top Ship Bunker Port

Dec 2013 - Jan 2014 | International News.indd 53

| 53 2/1/2014 4:21:05 PM

[MARINE TECH]

Korean Register Patents World’s First ‘Smart Fleet’ App

The ‘Smart Fleet’ app is a great tool that is already making efficiency improvements to shipping companies - Jung Dongjae, General Manager, Korean Register

54 | Marine tech_dec13-Jan14.indd 54

| Dec 2013 - Jan 2014 2/1/2014 3:19:09 PM

[MARINE TECH]

Imtech Marine Extends VSAT Coverage Network to Indian Ocean

The VSAT network of Imtech Marine provides reliable communication connections for crew, captain and other users on board. - Rob Verkuil, Imtech Marine General Manager of Connectivity

Dec 2013 - Jan 2014 | Marine tech_dec13-Jan14.indd 55

| 55 2/1/2014 3:19:10 PM

[MARINE TECH]

Norwegian Introduces Interactive Digital Signage Fleetwide

56 | Marine tech_dec13-Jan14.indd 56

| Dec 2013 - Jan 2014 2/1/2014 3:19:10 PM

[MARINE TECH]

ulti Maritime AS launched its latest concept for the series of MM offshore multi-purpose designs called MM 95 MSV.

Teledyne Blueview Introduces V Series 2D Multibeam Imaging Sonar

he Teledyne BlueView V Series 2D Imaging Sonar has been developed exclusively for VideoRay Pro 4 ROVs.

The V Series sonar provides both midrange detection and close-range identification capabilities from moving or stationary platforms.

Dec 2013 - Jan 2014 | Marine tech_dec13-Jan14.indd 57

| 57 2/1/2014 3:19:10 PM

[BOOK REVIEW]

Marine Navigation and Safety of Sea Transportation: Maritime Education and Training (MET), Human Resources and Crew Manning, Maritime Policy, Logistics and Economic Matters (Hardcover)

STCW,

Author Pages Price

ULTIMATE MARINE RECRUIT TRAINING GUIDEBOOK: A Drill Instructorâ&#x20AC;&#x2122;s Strategies and Tactics for Success (Paperback) Author Pages Price

: Nick Popaditch : 192 : USD 12.97

Shipping Finance [Paperback] Author Pages Price

58 | Book Review.indd 58

| Dec 2013 - Jan 2014 2/1/2014 3:23:51 PM

add.indd 14

2/3/2014 4:58:50 PM

RNI No.: MAHENG/2008/29159 Date of Publication: 1st of every alternate month.

add.indd 15

2/1/2014 4:32:41 PM