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Budget 2014: Better or Bitter Pill for Maritime Industry? Ship Recycling Scenario in India Shipping Taxation: A Calculate Determination Convention on Ballast Water Management: A Way Forward Dry Bulk Cargo Movement: Challenges Facing Indian Port Sector Our Costs and Gold Costs
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| June - July 2014 8/1/2014 6:25:03 PM
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[CONTENT]
Contents
9
13
22
News Features 7 Budget 2014: Better or Bitter Pill for Maritime Industry? - Rakesh Roy Interview 13 ‘SRIA honors its commitment of Green Recycling of each and every yard at Alang’ - Jivrajbhai Patel, President, Ship Recycling Industries Association (SRIA) India Guest Column 9 Ship Recycling Scenario in India - P S Nagarsheth 16 Shipping Taxation: A Calculate Determination - Himanshu Doshi & Samir Kanabar Features
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27 Freight Watch – June to July 2014 – Niteen M Jain & Nazir Ahmed Moulvi Marine Archaeology 29 New Research Discounts Conventional Titanic Theories News
19 Dry Bulk Cargo Movement: Challenges Facing Indian Port Sector - G S Rathod 22 Convention on Ballast Water Management: A Way Forward - Indra Nath Bose 6|
25 Our Coasts and Gold Coasts - D C Sekhar
32 Indian News 40 Foreign News 46 Marine Tech 50 Book Review
| June - July 2014 8/1/2014 6:25:05 PM
[NEWS FEATURES]
Budget 2014: Better or Bitter Pill for Maritime Industry? Indian shipping industry plays a crucial role to the country’s economy. Since few years, the industry has been going through rough weather due to the global economy slowdown with merchandise trade of all major economies witnessing a declining trend. Developing the core sector is the need of the hour otherwise its inadequacy may create bottlenecks in the economic growth of the country. The industry with emergence of globalisation and liberalisation needs to bring rapid transformation in terms of demand and infrastructural development. The article analyses pros and cons of the 2014 Union Budget towards the entire Maritime Industry.
T
he much awaited 2014 union budget has been announced by Finance Minister Arun Jaitley at a time while the country’s economy is on doldrums position and the key sectors are not in shape to lead the country’s gross domestic product (GDP), which is currently below 5 per cent.
Highlights of 2014 Union Budget for Maritime Industry: • Permission for local ship-owners to register their ships in tax-friendly overseas jurisdictions in a bid to increase national tonnage (shipping capacity)
The Union Budget projected the fiscal deficit at 3.6 per cent of the GDP in 2015/16, accepting the fiscal deficit target of 4.1 per cent in the current fiscal. Finance minster said that the budget would lead the nation’s GDP of 5-6 per cent for the FY 2015-16 and there is an aim for sustained growth of 7-8 per cent in the next 3-4 years.
• Indian ship-owners to be freed from paying tax when their ships are rented out to foreign entities
Sailesh Bhatia, President, Association of Multimodal Transport Operators of India (AMTOI), opines “The much awaited change in government has finally taken place. All the citizens of India and the world at large are now analysing the recently declared budget of the Union Govt of India. Whilst many have felt disappointed others have been very happy with the recently declared budget.”
• Comprehensive policy to promote Indian ship building industry
He added that the budget apparently appears to be a carry forward of the last government, but if one delves deeply one realises that there are differences. The recent budget is a mix between giving a policy direction and a statement of expected income and expenditure.
All in all I feel AB ACHE DIN AYANGE JAROOR Sailesh Bhatia President Association of Multimodal Transport Operators of India (AMTOI)
• New 1,620 km inland water way project to facilitate commercial navigation of at least 1,500 tonne-capacity at an estimated cost ` 4,200 crore over six years
• 16 new port projects to be awarded this year with a focus on port connectivity
Shipping Industry Gets from Budget 2014 Finance Minister announced several measures to prop up the country’s maritime sector in the Union budget, such as the most significant of which was permission for local ship owners to register their ships in tax-friendly overseas jurisdictions without opening subsidiaries there, in a bid to increase the national tonnage. This will allow local shipping companies the flexibility to directly register their ships overseas sitting in India without opening subsidiaries abroad to create a new fleet category known as Indian-controlled tonnage. The plan is also aimed at reversing a trend of local fleet owners opening subsidiaries abroad to register and operate their ships, thereby resulting in a flight of ships which would otherwise have been registered under the Indian flag. June - July 2014 |
Budget 2014 - Shipping Industry.indd 7
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[NEWS FEATURES] The budget also freed Indian shipowners from the requirement of paying service tax when their ships are rented out to foreign entities for less than 30 days. So far, service tax was levied for such transactions because it was based on the location of the service provider.
respect of all export goods and 14 more sea ports both for imports and exports coupled with implementation of single window concept for export import trade with Customs as the hub would significantly reduce the transaction time and cost.
The budget has emphasised much more on the development of inland waterways to improve the capacity of goods through waterways. A project on the river Ganga called ‘Jal Marg Vikas’ (National Waterways-I) will be developed between Allahabad and Haldia to cover a distance of 1,620 km, which will enable commercial navigation of at least 1,500 tonne-capacity vessels. The project will be completed over a period of six years at an estimated cost of ` 4,200 crore. Similarly, to encourage growth in the transport of goods through coastal vessels, the tax incidence is being reduced.
The budget highlighted the government plans to increase warehousing capacity for increasing the shelf life of agriculture produce in keeping mind to the earning capacity of the farmers. In order to the urgent need for availability of scientific warehousing infrastructure in the country, the budget has proposed an allocation of ` 5,000 crore for the fund for the year 2014-15.
For our shipping community it is one of the first times that a budget has given so much importance to this much neglected sector. - Sailesh Bhatia, President, AMTOI
Jaitley also announced that the government will unveil a comprehensive policy to promote Indian shipbuilding industry this fiscal year. Giving a major boost to the development of ports for trading, Finance Minister announced that 16 new port projects are proposed to be awarded this year with a focus on port connectivity, adding the government will provide ` 11,635 crore for the first phase development of an outer harbour project at Union government-owned V.O. Chidambaranar port in Tamil Nadu. “For our shipping community it is one of the first times that a budget has given so much importance to this much neglected sector. An amount of ` 11,635 crores have been allocated for development of ports. SEZs will also be developed in Kandla and JN port. The project on river Ganga called ‘Jal Marg Vikas’ (National Waterways-1) covering a distance of 1620 kms will boost Inland Waterways Transport. The river linking project will also help boost IWT,” says Bhatia. Another attempt by Finance Minister to give 24x7 Extension Customs Clearance Facility to 13 new ports in 8 | Budget 2014 - Shipping Industry.indd 8
Getaway that might be Affected the Industr y The budget was unarguably one of the most eagerly awaited one for most of the industries, but there has been a demand from Indian Shipping industry to relook at the Tonnage Tax, Seafarers’ taxation, Exempting shipping services from custom and excise duty, duty on bunkers for consumption on Indian coastal trade etc. None of these core issues have been addressed in the Budget 2014. Although details on the role of a so-called 3P India is yet to be finalised, a positive impact on the port sector is expected from the proposed body. It could address some of the obstacles faced by port developers operating through the PPP route, especially if it could support the developers in obtaining regulatory approvals and speedy resolution of pending issues. As the shipping industry is labour intensive, the budget didn’t mention on the long demand by the industry to giving infrastructure status to the Indian Shipping Industry and cabotage relaxation to major ports. “The Government is also considering further relaxation of Cabotage laws which will help reduce the cost of transportation of empty containers between ports. This will also improve the availability of containers in times of shortage of empty boxes,” says Bhatia. Overall the budget will iron out some of the stress faced by the Indian Shipping sector from several years due to the global economy slowdown with merchandise trade of all major economies witnessing a declining trend. “This government is serious that in addition to the development of infrastructure they will also on top priority address the policy issues which are hampering development of this sector,” says Bhatia.
- Rakesh Roy
| June - July 2014 8/1/2014 5:07:45 PM
[Guest Column]
Ship Recycling Scenario in India India is known as the most favourable destination for Ship breaking & recycling industry worldwide with Alang, the largest ship recycling yard in the world. In this article, the author shares much-needed insights into the challenges & initiatives that will have impact on the working of the industry in India.
S
hip breaking industry supplies substantial quantity of Re-rollable and steel melting scrap for scrap based rerolling mills and induction and arc furnaces. Ship breaking is mainly viable where scrap based re-rolling mills are operative. More than 90 per cent of ship breaking in the world is taking place in India, Bangladesh, Pakistan, China and Turkey. Direct rolling of Re-rollable scrap saves one process of melting. This industry helps to increase the availability of such semi-finished material. Recognising the importance of ship recycling industry, the govt. has reduced the import duty on ships imported for demolition from 5 per cent to 2.5 per cent, equivalent to that of ‘melting scrap’, in the last budget.
P S Nagarsheth Ex-Shipbreaker E: issai@mtnl.net.in
Internationally scrap is defined only in one category i.e. ‘Melting Scrap’. In India and developing Asian countries, scrap is segregated into two categories, one is MELTING SCRAP and the other is RE-ROLLABLE SCRAP. Definition for melting scrap is same nationally and internationally. There is no definition given for Re-Rollable scrap internationally as very few countries have Re-rollable scrap processing capacities. India had a customs tariff heading previously for ‘Re-rollable scrap’ but following the June - July 2014 |
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[Guest Column]
Industry’s main opposition to the Hong Kong convention is that the Convention is only meant for ship breakers and it is not covering the role of ship owners except for giving inventory.
introduction of harmonised international tariff headings, there is no tariff heading now for ‘Re-rollable scrap’. Thus, technically import of Re-rollable scrap into India is banned at present and ship breaking industry faces the problem of clearance of its Re-rollable scrap output, although Indian Standard 2549 defines Re-rollable scrap as also the import policy. Bangladesh has introduced a tariff heading for import of Re-rollable scraps to solve this problem. I would like to list the issues which will have impact on the working of the industry: • Code on Ship Recycling enacted by Steel Ministry • IMO Hong Kong Convention and Guidelines • Basel Convention • EU Regulations • Quality Control Order under BIS Act • Japanese Proposal • Amendment to Merchant Shipping Act • Proposed Admiralty Bill • Proposed change of Administrative Control from Steel Ministry to Shipping Ministry • JPC Study on Steel Scrap • GMB Policy • Import of Left over bunker in ships • RBI relaxation in respect of payment for import of ships for demolition. Code on Ship Recycling Ministry of Steel under the orders of Supreme Court of India has finally come out with a Comprehensive Code on Ship Recycling and gazetted the same and thus it has become law. In enacting this code, the industry has achieved following major things: • For the first time, the Cash Buyer has been defined in the Code - “the person or company who owns the ships for less than six months.” • The Code also safeguards the Indian ship recycler from Maritime Lien risk by providing a clause “8.3.11 - A ship 10 | Ship Recycling Scenario - P S Nagarsheth.indd 10
delivered physically for recycling purpose shall not be subject to any claims or maritime lien arising against any former owner of the ship.” • Stricter implementation of the Code particularly in respect of removal of oil pipe line by cold cutting in place of hot cutting will greatly secure the safety of workers. • A model ship breaking yard has to be provided. • Verification of ownership of the ship as per Code should be strictly implemented. Hong Kong Convention The industry had represented to the government not to ratify the Convention. Even in the meeting of representatives of Ship Recycling associations of India, Pakistan and Bangladesh, it was decided not to ratify the convention. Industry’s main opposition to the convention is that the Convention is only meant for ship breakers and it is not covering the role of ship owners except for giving inventory. With the enactment of Code on Ship Recycling by the Indian government, the Hong Kong Convention has not got much value for India. Although the Convention has been adopted in 2009, according to my information, no country other than Norway has ratified it so far. In my opinion India should not ratify it. Even if it is ratified, Indian industry will not be impacted as most of the ships are going to be imported through cash buyers from countries who have not ratified the Convention. Basel Convention According to Basel Convention, ship is declared as hazardous waste. Luckily for us, Environment Ministry of Govt of India has not accepted this. They have clarified that we will follow the Supreme Court order and not the Basel Convention. EU Regulations As per their earlier regulation of 2006, they had accepted ship as hazardous waste. They had acknowledged that this regulation is circumvented by selling ships through
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[Guest Column] intermediaries. So to get rid of the Basel Convention and dilute their earlier regulation, they have come out with the new regulation. It is agreed that it is their sovereign right to make their own regulation. This regulation necessitates (1) the ship breaker to register with EU (2) the ship breaker should have a ship recycling plan and ship facility management plan to be got approved from the ship owners and (3) that the ship breaker be approved by the EU.
Japanese Proposal
There are a few good features of the new regulations such as: (1) The regulation accepts the ship going for demolition should have gas-free for hot work; (2) If the ship is sold within 6 months to a non-registered party, the seller will be penalised. But, here there is a loophole in the explanation, but I am not able to state exactly how it will be exploited by the unscrupulous traders.
- A PPP project will have monopoly and will exploit the individual ship breakers whose cost of breaking will go up. The uneconomic working will lead to the closure of the industry. If the industry is closed, GMB will not be able to recover any revenue from shipbreakers and the entire burden of repayment of loan will come on GMB.
I understand that the EU has started implementing the above regulation and with the result recently a ship owner was forced to sell a ship to Turkish ship recycling yard at a price almost USD 100 per ldt less as compared to price fetched by selling it to Asian yards. Turkey converts ships into melting scrap and not Re-rollable scrap. Thus it will be the ship owners who will be feeling the pinch by losing millions of dollars. Asian countries will get lesser number of ships from EU countries as most of the ships from the region will get diverted to Turkey. Here it should be the EU ship owners who should be fighting against the EU regulations rather than Asian ship breakers. Quality Control Order under BIS Act This order has already become law. The immediate impact of this law has been that demand for Re-rollable scrap has been reduced due to the gap in price of melting scrap and Re-rollable scrap. However, we have achieved one thing under this order. That is, there is a market for non critical items, and its production and marketing is accepted. The industry has strongly represented for separate tariff heading for Re-rollable scrap to produce non critical items. But, nothing is yet achieved. It requires further follow up. Otherwise, technically, billing of Re-rollable scrap under tariff heading 72.08 is a breach of BIS Act. Internationally, mainly Turkey and China were India’s main competitors. It appears that, scrap based Re-rolling mills have been phased out in these countries. They are now buying ships only as equivalent to melting scrap. These countries are almost out of ship breaking business. I understand that China was forced to give a subsidy of USD140/ldt for local ships. At present ship breaking in China is restricted to local ships. India and Bangladesh have regulations for import of ships with gas free for hot work certification which regulation is not in Pakistan and therefore all tankers are now getting diverted to Pakistan.
Japanese proposal is against the interest of Indian ship recycling whose economy is based on beaching method of ship recycling. Indirectly, it is nothing but going for dry dock method of ship breaking.
- Loan period is 30 years. Future of ship breaking scenario is uncertain and permission given by GMB is for 5-10 years. With that background, how to commit for a 30year period of repayment? GMB has got a very bad example of soft loan to Pipavav Ship Breaking Yard. - The cost that would be incurred and to be borne for utilisation of the created facility will be exorbitant. We cannot even calculate exactly what will be the cost per tonne. It appears it may cost around `1 crore per ship. It will make India non-competitive against other ship recycling countries. - The assumption that due to dry docking facility, India will get cheaper ships is not going to be true in a scenario where ship owners want maximum price for ship and they are going to market the ships through cash buyer intermediaries where no laws are implemented. - It is seen that the dry dock project is being designed for 30 ships a year i.e. about 3 ships a month, as against about 350 ships which are being recycled at present at Alang. Amendment to Merchant Shipping Act The amendment of 6th August 2013 of the Merchant Shipping Act requires that all ships above 25 years old have to be insured by a P&I Club insurance company approved by DG Shipping only. This is with a view to avoid ship wreck in India ports. Therefore, it is in the interest of the country that this regulation is implemented strictly. Proposed Admiralty Bill In the industry’s representation to the Shipping Ministry, it had requested to have a clause to save the ship recyclers from Maritime Lien risk, in line with the Code. It is necessary to have this accepted by the Ministry as otherwise the contradiction between the Code and the Admiralty Bill will lead to the authorities following the 1994 International Convention putting the ship breakers in deep trouble. June - July 2014 |
Ship Recycling Scenario - P S Nagarsheth.indd 11
| 11 8/1/2014 5:10:10 PM
[Guest Column] Proposed Change of Administrative Control
Import of Left over Bunker in Ships
I understand that due to problems faced by the Ministry in answering questions that come up in Parliament on the industry, the Steel Ministry has written to the Cabinet Secretary that they are not interested to be the Administrative Ministry for Ship breaking and that it should be transferred to Shipping Ministry. The industry has strongly objected to such transfer for these reasons:
One of the main problems faced by the industry at present is regarding import of left over bunker in the form of HSD & LSD diesel oil. No ship can be beached for recycling without the left over bunker. Unfortunately, DGFT & Customs have raised this issue that diesel oil is a canalised item and cannot be imported. If this condition is strictly implemented, the industry will come to a standstill. At present the customs allow the ships with left over diesel oil and gas oil by charging fine and penalty. This is not a permanent solution to the problem.
• In past, import of ship was canalised through the ministry; • Steel Ministry is the administrative ministry for this industry for the last over 30 years; • Import of ship is nothing but import of steel scrap; • FSC (Ferrous Scrap Committee) is controlled by Steel Ministry; and • The Chairman of IMC is the Jt. Secretary of Steel Ministry. Although the industry’s views were as mentioned above, the Govt has now transferred the administrative control to Shipping Ministry. What is needed now is that the funds at the disposal of Ferrous Scrap Committee meant for the development of Ship Recycling and under the control Steel Ministry should also be transferred to Shiping Ministry. JPC Study on Steel Scrap JPC have decided to have a study on Indian steel market. The industry has represented for (1) introducing tariff heading for Re-rollable scrap, (2) amendment to the definition of melting scrap and Re-rollable scrap in BIS 2549 and (3) simplification of customs clearance procedure for import of steel scrap. They have constituted a Core Committee to further study and make a report. The industry’s future may be affected if it does not represent it case properly before this Committee. GMB Policy A number of issues are pending with GMB such as: • Plot user policy has not been finalised since 2009 and the industry is operating by giving an undertaking that the new policy as and when finalised will be effective from 2009 • Premium for clubbing of plots for making small to big and phasing out of small plots for the purpose of safety. • Avoiding overlapping activity. • Mergers and acquisitions is a common practice in any economic activity which is unduly restricted by GMB which needs correction. • Upgradation of training institute • Removal of petty traders from the yard • Trust Hospital - This trust is formed from money recovered from shipbreakers. It is defunct now. At present the trust is holding a building along with the land and a corpus of about ` 65 lakhs. I strongly suggest that either the ship recyclers association or GMB should take over this trust. 12 | Ship Recycling Scenario - P S Nagarsheth.indd 12
Under previous Department Circular 37/96 which defines a ship and states that the bunker has to be separately charged as per tariff item meant for diesel oil and not under the tariff item for ships for demolition i.e. 89.08. In practice, this was cleared by charging custom duty on bunker at the tariff meant for oils and even today the industry is prepared for it. This is not a revenue oriented issue. Thus, there is a need for amendment to circular No.37/96 to cover charging of bunker in ships imported for breaking as otherwise the industry will sometime come to a grinding halt if the above restriction is strictly imposed. Luckily, the Customs, Excise and Service Tax Appellate Tribunal has upheld the industry’s appeal in the matter. RBI Relaxation in Respect of Payment for Import of Ships for Demolition The recent RBI relaxation for payment in foreign currency for import of ships for recycling by Indian ship breakers will help the industry in competitive bidding for ships auctioned by Indian ship owners. Conclusion I must say that the industry at Alang has adopted the norm of Green Ship Recycling and things have changed dramatically to have an eco-friendly, worker safe, worker friendly and employment oriented industry. Construction for the first phase housing project for workers has also begun at Alang. The only worrying thing is that the realisation from ship breaking has come down due to following factors: - Reduction in non-ferrous content - Substantial part of Re-rollable scrap now goes as melting scrap; as against a ratio of 85:15 between rerollable and melting before, it has now come down to 60:40 now. Thus, there is some amount of uncertainty about the future of the industry.
(The views expressed by the Author are his personal views and not that of the industry or the association he represents.)
| June - July 2014 8/1/2014 5:10:11 PM
[INTERVIEW]
‘SRIA honors its commitment of Green Recycling of each and every yard at Alang’
A
lang in India as accredited as the favourable destination for ship breaking & recycling activities worldwide, along with safeguarding the concerns of environment and safety according to IMO convention and Hon. Supreme Court guidelines. Jivrajbhai Patel, President, Ship Recycling Industries Association (SRIA) India, expresses his opinions about the world’s largest ship recycling yard’s various facets in an exclusive interview with SMP World. Excerpts….
The Association not only safeguards the interest of Ship Recycling activity, it also promotes ‘Green Recycling at Alang.’
As the ship breaking & recycling industry is labour intensive, how has Alang been tackled the factor successfully over the years to become the world’s largest ship recycling yard? Alang is a rare destination with such high intertidal gradient, comprises of approximately 10-km long sea front on the western coast of the Gulf of Cambay. Thus Alang is a God’s Gift to India for ship recycling purpose. Rather than calling it Ship Breaking we call it Ship Recycling Industry. The end of life of the ships after recycling is converted into buildings, bridges and other umpteen structures, hence give re-incarnation to the ship. This industry provides direct employment to the tune of 30,000 workers and indirect employment to lakhs of workers, by way of rolling mills, scrap traders, oxygen gas plants, transporters and real estate market. Although this industry generates about of ` 2500 crores revenue to the ex-chequers of state and national governments. Ship Recycling industry is Labour intensive. However, the survival of the ship recycling depends on the availability of Labour. There is an advanced scope of machinery, mainly in material handling. Thus, Ship breakers need very little sunk capital or physical assets. The competitive intensity in the business is high owing to low entry barriers with respect to capital and technical intensity. June - July 2014 |
SRIA.indd 13
| 13 8/1/2014 5:13:02 PM
[INTERVIEW]
Alang has been faced a stiff competition from Asian countries like Sri Lanka, Bangladesh, Pakistan & China due to their certain natural, regulatory and cost advantages. What are the initiatives taken by SRIA to keep the growth momentum? SRIA keeps on representing to Government of India, to bring down its taxes as Bangladesh, Pakistan and China are having an upper edge because of moderate taxes on Ship recycling. Moreover, in India, we have domestic competition with Secondary Steel Manufacturers and Main Steel Plants. The other advantage of Alang is its unique geographical features, including a high tidal range, wide continental shelf, 15 degree slope, and a mud free coast, are ideal for any size ships to be beached easily during high tide. This factors are not mostly seen any of Asian countries involved in this business. Further, Alang enjoys an edge amongst these countries owing to appropriate wind & tide conditions. In comparison, Gaddani in Pakistan and Chittagong in Bangladesh, the two main other ship breaking centres, are characterised by strong winds and strong tides respectively which make them more suitable for demolition of larger vessels; while in China, ship breaking activity is interrupted periodically during monsoon season due to the tycoons on the seacoast. 14 | SRIA.indd 14
How have the factors like - depreciation of rupee, huge volatility on the local scrap steel prices or increase in interest and regulatory system - been affecting the industry in India? USD-Rupee exchange has been very volatile and big damaging factor in recent years. In spite of a healthy growth in operating income in recent years due to increased availability of ships for dismantling, Indian ship recycling industry faced a low profitability margins due to the continues rupee depreciation, which has increased the cost of purchase of ships coupled with decline in realisations of the end product, i.e. steel melting scrap, due to slowdown in steel consuming sectors. The ship is bought on Usance LC for period of 180 days to 360 days. The Ship is cut and delivered mostly, and USD is still open, so there is no corresponding effect available to the importer. Interest for such Usance LC has not been any issue for our Industry. Regulatory risk remains high for the ship breaking business in India. The Supreme Court of India has recently passed an order requiring stricter implementation of ship breaking norms in view of the environmental and health hazards. This as well as any other proposed regulation could entail event based risks for Indian ship breaking operators’ and may affect their competitiveness against players in other competing countries.
| June - July 2014 8/1/2014 5:13:04 PM
[INTERVIEW] Ship Recycling Code 2013 is a stronger and rich in terms provisions of safety and environment, in comparison to the provisions of HKC 2009.
The ship breaker has to first pay the earnest money of about 10 per cent of the ship’s value in order to bring the ship to the national anchorage point/high seas. The ship breaking activity in India is regulated at various levels and beaching can be undertaken only after clearances from customs authorities (Customs authorities and Safety Directorate), pollution control authorities (like Gujarat Pollution Control Board), the department of explosives or the Atomic Energy and Radiation Board and the maritime regulator (like Gujarat Maritime Board) have been obtained. Further, regulatory authorities like GMB conduct regular monitoring activity to oversee the compliance of ship breaking rules and regulations during demolition and disposal. On an average it takes around a month to get the regulatory approvals and subsequently the average time to break a 5,000 LDT ship is around three to four months. Ship Recycling activities involve both Economy and Ecology keeping in mind towards ‘Green Ship Recycling’. How has Alang safeguarded these values in keeping mind with IMO convention and Hon. Supreme Court guidelines for the unnecessary risks to human health, safety and to the environment? Alang has seen a major changeover as far as environmental protection and safety standards are concerned. The concept of “Green Ship Recycling”, focusing on the safety of workers, has come into existence on implementation of directions by the Hon. Supreme Court of India and now, Ship Recycling Code 2013; based on guidelines in line with IMO convention. Ship Recycling Industries Association (SRIA) is the largest Association working for the welfare of owners and workers of Ship Recycling Yard. The Association not only safeguards the interest of Ship Recycling activity, it also promotes ‘Green Recycling at Alang’. Ship Recycling Industry Association (India) honors its commitment of green recycling of each and every yard at Alang. The workers are imparted proper training for their respective jobs and no worker is allowed to work without proper training. The strict compliance for nonemployment of children in the ship breaking activities is observed.
It is a recycling industry and hence, saves on natural resources. Ship Recycling rather helps in maintaining ecological balance. So this industry is eco-friendly. According to you, how does the 2009 Hong Kong convention impact the Indian ship breaking & recycling industry? And how is SRIA implementing the convention towards the purpose of Green Ship Recycling? Ship Recycling Code 2013 is a stronger and rich in terms provisions of safety and environment, in comparison to the provisions of HKC 2009. Implementation of HKC 2009 brings unnecessary foreign interventions. We have requested the Government not to ratify HKC-2009. We already have our Ship Breaking Code 2013 to regulate the safety and environment concern. Our ship recycling industry is ready to further strengthen the rules and regulation in the interest of Safety and Environmentally Sound Ship recycling Activity by Domestic regulation such as “Regulation 2003” or ‘Ship Breaking Code”, but not by foreign interference and unilateral conventions such as HKC-2009. According to you, how will the recent Budget affect the Shipping Industry as a whole and how do you evaluate the interim Budget for the Ship breaking & recycling industry (Pros and Cons)? Shipping Industry of India has a crucial role to play in Indian economy. While comparing the largest steel making countries in the league India enjoys the 4 th position among five leading countries that includes China and Turkey. These countries dominate world’s Ship Recycling Industry. Indian ship recycling industry provides employment for almost 5 lacs of people directly or indirectly. Ship Recycling activities generates revenue/taxes to the tune of ` 1800 crores for the Central government, additionally ` 700 Crores to State government. Alang ship recycling yard produces approximately 3.00 million tonnes of steel annually, without use of power, receding natural resources such as iron ore, coal and water. So the industry has a major role in the economic development of the state and nation as well; hence in the time when the dollar at peak height, the industry was in a difficult situation of financial crunch, the announcement by government for reduction in the custom duty from 5 per cent to 2.5 per cent on Ships imported for recycling has given it the timely aid and made it competitive internationally. However, supply of ship remains less then demands, hence Ship prices has gone up by USD 12-15. June - July 2014 |
SRIA.indd 15
| 15 8/1/2014 5:13:04 PM
[Guest Column]
Shipping Taxation: A Calculate Determination The taxation system in India applicable to the Indian shipping industry is unfavourable with global standard, so it is imperative to boost the shipping industry and the port industry through tax regimes and other tax regulatory reforms. The articles provides in-depth insight into the current tax challenges being faced by the Indian shipping industry and suggests some key initiatives in tax reforms to revamp the sector.
T In order to provide an impetus to the economic growth of the country, it would be imperative to boost the shipping industry and the port industry through tax and other regulatory reforms coupled-with resolution of the current tax challenges being faced by the shipping industry.
Himanshu Doshi
Senior Manager | Infrastructure, Industrial & Consumer Ernst & Young LLP E: himanshu.doshi@in.ey.com
Samir Kanabar
Partner | Tax and Regulatory Services Ernst & Young LLP E: samir.kanabar@in.ey.com
16 | Ernst & Young LLP.indd 16
he shipping industry operates in a highly globalised and competitive business environment. By virtue of being closely linked to the world economy and trade, it is more liberalised (from a tax perspective) than most of the other industries in the world. In many countries having a fairly extensive coastline, the maritime infrastructure development has attracted significant investments, which has impacted the pace, structure and pattern of development in those countries. Approximately 90 per cent of global trade (in terms of volume) is carried out through sea, making the shipping industry a key participant in world trade. India has an extensive coastline of around 7,500 km. The country’s maritime industry encompasses ports, shipping, inland water transport, as well as aids to navigation and manpower engaged in operations both on board and ashore. Around 95 per cent of India’s external merchandise trade by volume, and 70 per cent by value, is through maritime transport. In order to provide an impetus to the economic growth of the country, it would be imperative to boost the shipping industry and the port industry through tax and other regulatory reforms coupled-with resolution of the current tax challenges being faced by the shipping industry. Majority of the countries over the world provide for a tax regime which is low-level taxation linked to vessels tonnage rather than actual revenue. Accordingly, with the intention of making the Indian shipping industry globally competitive, providing Indian shipping companies with a level playing field through the reduction of taxes, the Indian Government introduced the Tonnage Tax Scheme (TTS) in the Finance Act, 2004.
| June - July 2014 8/1/2014 5:16:23 PM
[Guest Column] No Particulars
Indirect Taxes Applicable
1
Voyage charter • Transportation of goods from outside India to Indian port (import cargo) is in the (international transportation negative list of services of the Service tax law and does not attract service tax. services) • Transportation of goods from India to overseas port (export cargo) is not liable to service tax since the place of provision of these services is outside India (as the destination of goods is outside India)
2
Time charter (charter hire of vessels along with crew)
• Time charter services rendered by an Indian shipping company to an Indian customer attract service tax at 12.36%.
3
Coastal shipping
• Services of ‘transport of coastal goods and goods transported through national waterways and inland water’ are liable to service tax with an abatement of 50% (effective rate - 6.18%)
4
Bareboat charter (charter hire of vessels without crew)
• VAT is generally applicable on bare boat charter since the effective control and possession of the vessel is transferred to the charterer. • Service tax is not applicable on bare boat charter since the transaction generally qualifies as a ‘deemed sale’ (as the effective control and possession of the vessel is transferred) which is excluded from the definition of ‘service’.
The TTS is optional scheme i.e., if a company does not wish to specifically opt for this scheme, it would continue to be governed by the normal provisions of the Income-tax Act. However, such a beneficial tax regime is only available to Indian companies. While the world over, the tax regime is relaxed for the shipping industry, the Indian government has provided certain additional stringent conditions which are not in sync with the international tax practices followed by other countries. Further, there are certain types of income which would be chargeable to tax under the normal provisions of the Income-tax Act, even though the company has opted for TTS. Some of the issues faced by the industry have been enumerated hereunder: • Determination of Tax Residential Status of Seafarers Supplement to the reforms required in the shipping industry, a major concern is towards the procedural difference in determination of tax residential status of seafarers working on Indian ships and those working on foreign ships. This procedural difference has resulted in a large scale drift of skilled seafarers to foreign ships thereby leading to a shortage crisis of qualified personnel to the Indian shipping companies. • Income Earned on Investment Linked to Mandatory Reserve A company which has opted for TTS is statutorily required to transfer at least 20 per cent of the book profits arising from its shipping business to a reserve account which has to be utilised towards the acquisition of ships. Since the cash is required to be made available for the acquisition of ships pending utilisation of the same, such cash may be deployed in short-term instruments. The
Act does not contain specific provisions to include the income earned/accrued on such instruments as part of the tonnage income, despite it being directly attributable to shipping activity. Further, deploying such income towards mandatory purchase of ships may not be in line with the company’s expansion strategy. • Capital Gains In the shipping industry, replacing old and obsolete vessels and upgrading vessels with newer technology is essential. Accordingly, the qualifying vessels are required to be sold as a part of the shipping business. However, any profits or gains arising from the transfer of qualifying capital assets are chargeable to income tax as capital gains under the normal provisions of the Act. The profits arising from the sale of qualifying ships are not considered as tonnage income under the TTS, which, if done, would automatically result in the creation of reserves (as discussed above) for the acquisition of more new ships, thereby further augmenting the shipping business. Whereas, most of the jurisdictions wherein such tax incentives/schemes are prevalent, profits or gains arising from transfer of such assets are included in the tonnage income and exempted from tax. The key indirect taxes applicable to the shipping industry and the challenges being faced by the industry are summarised below: Key Issues and Challenges Faced by Shipping Industry No CENVAT Credit in Respect of International Transportation Services: • Non eligibility to claim refund of taxes and duties paid on inputs, input services and capital goods result June - July 2014 |
Ernst & Young LLP.indd 17
| 17 8/1/2014 5:16:23 PM
[Guest Column]
While the world over, the tax regime is relaxed for the shipping industry, the Indian government has provided certain additional stringent conditions which are not in sync with the international tax practices followed by other countries.
in high costs relating to transportation of goods. This has a serious impact on the Shipping industry and is a stumbling block to the development of the international transportation business. • Globally, major maritime jurisdictions like UK, Singapore, Netherlands, Greece etc, give full credit of taxes paid on inputs used for export and import cargo. • Hence, there is a need to allow CENVAT credit in respect input services and inputs used for international transportation services.
Singapore, Netherlands, Greece etc, taxes relating to the shipping industry are either zero rated/exempted, whether such services are availed domestically or internationally by non-resident or resident ship owner. • Government should consider the proposition to grant an upfront service tax exemption on services received by shipping companies.
Service Tax on Time Charter for a Period up to One Month:
• Services of ‘transport of coastal goods and goods transported through national waterways and inland water’ are liable to service tax with an abatement of 50% (effective rate - 6.18%). • However, the abatement percentage is higher for rail transport services (70% - service tax rate of 3.708%) and for road transport services (75% - service tax rate of 3.09%). • The present anomaly results in a cost disadvantage to Indian shipping companies vis-à-vis providers of road transport services and rail transport services.
• Time charter services provided by an Indian shipping company to a foreign shipping company for a period up to one month would attract service tax. However, if similar services are provided by foreign shipping companies to foreign customers, service is not taxable since place of provision of services is outside India. • Time charter services provided by an Indian shipping company to an Indian customer for up to one month would be liable to service tax. However, if similar services are provided by foreign shipping companies to an Indian customer, service tax would not be applicable since place of provision of services is outside India. • This results in a disparity in levy of service tax on services provided by Indian shipping companies vis-à-vis foreign shipping companies.
Lower Service Tax Abatement on Coastal Shipping Services:
Conclusion
• Service tax is currently imposed not only on various services availed by the Indian shipping companies domestically but also on some of the crucial services availed by them outside India.
Over and above the evident misgivings and stringent conditions of the TTS, in spite of India having such a vast coastal line, India has very few major operating ports. This fact coupled with the lack of infrastructure facilities available to the industry players, the Indian Government needs to bring about a rampant change in the policies not only resolving the stringent conditions but also providing additional tax and regulatory benefits such as giving shipbuilders infrastructure status which may not only attract foreign investment but also tax-breaks available to the Infrastructure industry.
• Globally, in major maritime jurisdictions like UK,
(The views expressed by authors are their personal)
No Service Tax Exemption on Services Received by Shipping Companies:
18 | Ernst & Young LLP.indd 18
| June - July 2014 8/1/2014 5:16:24 PM
[Feature]
Dry Bulk Cargo Movement: Challenges Facing Indian Port Sector Demand for dry bulk trade has been increased gradually by demand for natural resources and energy on the back of high economic growth in emerging countries. As an emerging developing economy, the article summarises the challenges ahead for India port sector to sustain the growth in seaborne trade and the initiatives that will carry forward the momentum for the future aspect.
T Talking about the issues concerning dry bulk cargo movement, it is imperative to bear in mind the main characteristics of bulk commodities which influence their suitability for transport in bulk.
here is nothing particularly new about bulk shipping. Cutting transport cost by carrying cargo in shiploads is a strategy that has been around for millennia. The grain fleet of ancient Rome, the Dutch ‘Flyboats’ of 16 th century, and the 19 th Century Tea Clippers are all examples. Commercially, the bulk shipping industry which has an important place in the Shipping Industry of the 21 st century has its roots in the 18 th Century coal trade between North England and London (Stopford, 2009). Dry Bulk Cargo Movement Talking about the issues concerning dry bulk cargo movement, it is imperative to bear in mind the main characteristics of bulk commodities which influence their suitability for transport in bulk. Bulk commodities are; (i) traded in large volume (ii) of consistent granular composition and hence can be easily handled with automated equipments such as grabs and conveyor and (iii) low value high volume commodities.
G S Rathod
Deputy Secretary Mumbai Port Trust E: girirajrathod@gmail.com
These characteristics emphasise the need to move the bulk cargo as cheaply and efficiently as possible. In this context the major issues to be considered in movement of Dry Bulk across the world are; (i) gaining maximum economy of scale by using bigger ships (ii) reducing the number of times the cargo is handled (iii) making cargo handling operation more efficient and (iv) reducing the size of stocks held. This, in turn, calls for efforts from all the main participants of bulk transport system i.e., the cargo owners, the commodity traders, the ship owners and bulk operators including the ports. June - July 2014 |
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| 19 8/1/2014 5:19:33 PM
[Feature]
Though India is seemed as second most attractive
logistics
market
after
China,
issues such as shortage of skilled manpower, poor adoption of technology with higher cost and lower capabilities are believed to have hampered the pace for development.
Seaborne Trade & Economy Growth
India Prospective – Challenges Ahead
Demand for seaborne trade is potentially influenced by the world economic growth and industrial production, which is not always symmetrical (Shipping Insight, October, 2010). Since summer of 2003, demand for dry bulk transport had been high supported by demand for natural resources and energy on the back of high economic growth in emerging countries (Hono. 2009, 30). With nearly 95 per cent in 2008, the shipment of coal, iron ore and grain reflected the most important shipping demand in dry bulk trades.
This assumption is corroborated by the fact that performance of major ports in handling major bulk commodities in the year ending 31.03.2014 has been encouraging. The volume of cargo handled by twelve major ports last year grew by 1.78 per cent, reversing two consecutive years of decline. Strong coal shipment through the twelve major ports played a big part in reversing two years’ of decline in cargo volume. The thermal coal handling grew by 22.09 per cent to 71.6 million ton from 58.6 million ton as power stations imported more coal. Similarly, coking coal shipment jumped around 18 per cent to 33.1 million tons from 28 million ton a year ago (Daily Shipping Times).
According to Fearnley´s trade and shipment figures, iron ore trade represented largest share of trading volume of all major dry bulk commodities at 40.6 per cent followed by coal with 39.3 per cent and grain with 16.3 per cent (ISL Shipping Statistics and Market Review, Vol. 53 No. 4, 2009). Sustained global economy and industrial production from first quarter of 2005 to third quarter of 2008 had held the freight market higher, but with negative growth rate from fourth quarter of 2008 following economic crisis, the market crashed in 2009 to a historically low point (Shipping Insight, October, 2010). Global Scenario Consumption of coal is anticipated to remain almost at current levels in North America and rest of the World for the period beyond 2015. But considering that demand for coal is linked to need for energy consumption, market for coal is projected to grow consistently in non-OECD Asia to register growth from 80 quadrillion Btu to 140 quadrillion Btu in volume from present level by 2035. This will be primarily to meet the energy demand (http://www.eia.doc.gov). 20 | Giriraj Rathod.indd 20
On the backdrop of recent organised 1 st ‘Annual Conference on the Outlook for India’s Seaborne Dry Bulk Trade’, it was expected that coal mining in the country is likely to increase from 120 million tons to over 200 million tons soon and that by 2020, India hopes to achieve steel production of 200 million tons surpassing Japan and US, one of the major concerns raised in this conference was whether the Indian Ports are equipped to meet the projected rise in the dry bulk trade as many of them lack facilities to handle the dry bulk cargo and the documentation and other procedures are time consuming (www.maritimeprofessional.com). Though India is seemed as second most attractive logistics market after China, issues such as shortage of skilled manpower, poor adoption of technology with higher cost and lower capabilities are believed to have hampered the pace for development. Quoting McKinsey study, Deloitte said, inefficiencies in logistic infrastructure cost the Indian economy an extra USD 45 billon, 4.3 per cent of the GDP every year. This study also warns that 2.5 times growth in freight traffic demand by 2020 will strain India’s infrastructure further. Highlighting the challenges faced
| June - July 2014 8/1/2014 5:19:34 PM
[Feature] by each of the segment of logistics infrastructure: Road, Railway, Port and Air Cargo, the report concludes that the sector should look into following key aspects namely, (i) capacity creation and efficiency improvement and (ii) use of private sector investments to bring in both, funds and best practices. Looking Forward The planning Commission has budgeted for an initial logistics infrastructure investment of ` 4.1 Trillon over the 12 th Five Year Plan (2012-2017) period, which is double of what was proposed under 11 th Five Year Plan (Daily Shipping Times). Talking about the ports, the Port Authorities are one of the most important stakeholders in the supply logistics chain, whose performance is a key factor in determining the efficiency of the system. There is a vast difference in the quality of infrastructure and superstructures, characterised by state-of-the-art facilities ably supported by the IT infrastructure, available at International Ports and at the Indian Ports.
The planning Commission has budgeted for an initial logistics infrastructure investment of ` 4.1 Trillon over the 12th Five Year Plan (2012-2017) period, which is double of what was proposed under 11th Five Year Plan.
Successful international ports are characterised by optimised business process flows complemented by electronic information exchange amongst the stakeholders through the latest information technology, higher levels of mechanisation, huge volumes of cargo and vessel traffic, intermodal connectivity and vast space for storage and processing. Another key feature of international ports is the presence of huge industrial complexes within the port premises. As a result, the growth of both, the port and industries complement each other. An Inter-Ministerial Group set up to study the ‘Cargo dwell time’ in Ports few years back had identified following major issues facing Indian Port Sector, which hold good till today and need to be addressed on priority viz. (i)
low level of mechanisation leading to handling of cargoes by conventional means resulting in higher turn around time of the vessel (ii) Cargo is handled manually with high manning scales for loading & unloading resulting in low productivity. Multi-skilling is more or less absent (iii) Labour force is not conducive and receptive to mechanisation (iv) Major Ports in the country are not working 24x365 on account of statutory holidays, time lost during shift change overs etc (v) Safety regulations further restrict the handling of certain commodities only during daylight hours like hazardous cargo and overdimensional project cargoes (vi) In city locked ports, restrictions imposed by local bodies affect free movement of heavy vehicles carrying cargo. Cargo laden vehicles are prohibited to commute on the city roads during daylight hours, thereby restricting the movement of cargo in and out of the port. (vii) Cargo handling agents do not engage high performance equipments for the discharge/loading of cargo from vessels to cut cost. This results in poor performance of vessels at berth. (viii) To take advantage of freight earnings, agents hire very old vessels, especially for bulk cargoes, like fertilisers, that are equipped with poor quality and low performance gears resulting in a very low discharge/loading rate. Instances of the ship gears crumbling while in operation at berth are not uncommon (www.infrastructure.gov.in). To cope with the burgeoning traffic of international trade, the Government has undertaken several initiatives to bring the port sector at par with global standards. Efforts are underway not only to create additional capacity but also to increase the efficiency of the existing capacity in the sector. What is needed is optimisation of cargo handling systems and equipment, better maintenance scheduling, 24x7 working at ports, augmenting capacities at ports, improving labour productivity, strengthening roads to and within the ports, implementing EDI/ ERP, single window environment for port users, and simplification of procedures.
References: 1. Daily Shipping Times, Vol. LV No. 63 ( 2014, April 7) 2. Joseph Fonseca, “Dry Bulk Trade comes out of the gloom” www. maritimeprofession.com (2014, Janauary 29) 3. Hono. H. (2009) Bulk Shipping Business. Dry Bulk Transport. Nippon Yusen Kabushiki Kaisha Annual Report.30 4. International Energy Outlook 2010. Highlights (2010, May 25). Retrieved from http://www.eia.doc.gov/aiaf/ieo/highlights.htmal 5. Statistical Tables: World Bulk carrier market (2009) Shipping Statistics and Market Review Volume 53(4), 21. 6. Stopford, M (2009) Maritime Economics (3rd ed.) New York: Routledge. 7. Summary (2010, October), Shipping Insight, 5-6
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| 21 8/1/2014 5:19:34 PM
[Feature]
Convention on Ballast Water Management: A Way Forward
While BWM Convention 2004 will come into force a year after 30 flag states, which are representing 35 per cent of the global fleet, have ratified it in their own regulations, the article throws light into various aspects in smooth implementing of the convention.
I
nternational convention for the control and management of Ships’ ballast water and sediments, 2004 in short, BWM Convention will come into force a year after 30 flag states representing 35 per cent of the global fleet have ratified it in their own regulations. According to the latest data from the IMO, the percentage of the global fleet currently represented by the 40 signatories stands at 30.25 per cent. According to recent media releases, Japan and Turkey have also incorporated the Convention requirements in their domestic legislations though are yet to communicate their accession to the Convention to IMO.
Indra Nath Bose
Head – Vessel Performance Management The Great Eastern Shipping Co Ltd E: indra_bose@greatship.com
22 | Indra Nath Bose.indd 22
The revised implementation schedule for existing ships is now spread over five years instead of earlier two and half years following the entry into force of the Convention by aligning the requirement of BWMS fitment with a ship’s International Oil Pollution Prevention Certificate renewal survey. Also, all ships constructed prior to entry into force of the Convention are now to be treated as ‘existing ships’. The revised implementation schedule for new constructions and existing ships was adopted in IMO Assembly late
| June - July 2014 8/1/2014 5:22:17 PM
[Feature] last year to ease some pressure on shipowners and stake holders. However for US trading vessels, this has not made any difference since the US Administration has not revised its original implementation schedule. Ships intending to trade in waters of California State have to comply with specific implementation schedule of the state. All these make shipowners freedom to trade his vessels that much more complex and challenging.
Constructed Year
BW Capacity (M3)
New Schedule
Between 1500 - 5000
1st IOPP renewal survey after entry into force of Convention
<1500 or >5000
1st IOPP renewal survey after anniversary date of ship delivery in 2016
2009 or After
>5000
1st IOPP renewal survey after entry into force of Convention
2009 to 2011
5000 or More
1st IOPP renewal survey after anniversary date of ship delivery in 2016
After 2011
5000 or More
1st IOPP renewal survey after entry into force of Convention
Before 2009
IMO BWM Convention Implementation Schedule (If entry into force occurs prior to January 1, 2016) BW Capacity (M3)
Date Constructed
New Schedule
New
All
On or After December 1, 2013
On Delivery
Existing
<1500
Before December 1, 2013
1st Drydocking after January 1, 2016
Existing
1500 - 5000
Before December 1, 2013
1st Drydocking after January 1, 2016
Existing
<5000
Before December 1, 2013
1st Drydocking after January 1, 2016
USCG BWTS Implementation Schedule Currently almost 80 Ballast Water Management Systems (BWTS) are available in the market or are under development using various technologies, namely Filteration, Ultra Violet Rays, Side Stream Electrochlorination, Chemical doses, Ozone, Deoxygenation, Hydrocyclone, Ultrasonic, Cavitation, Full Flow Electrolysis and combinations of above. The current IMO type approval process for ballast water management systems (G8 Guideline) remains inadequate in providing ship operators with reliable, dependable BWMS to install on board their ships. The concerns include the fact that G8 does not require testing in all kinds of environment that the BWMS will have to perform in while fitted on board ships, e.g., testing in water of low salinity and or low temperature that may affect
The current IMO type approval process for ballast water management systems (G8 Guideline) remains inadequate in providing ship operators with reliable, dependable BWMS to install on board their ships.
performance in practice. Holding time requirements related to some systems may also be incompatible with the vessel’s scheduled loading cycle. Hence the installation of a Type Approved BWMS would provide no guarantee that the treatment would be acceptable to Port State Control (PSC) authorities. A robust and revised type approval process (G8) would have offered certainty to owners and operators purchasing BWMS. Industry associations have been urging IMO to amend the G8 Guideline to ensure that billions of dollars investment by shipowners on type approved BWMS will in fact reliably and effectively be able to meet the mandatory discharge standard of the Convention. PSC authorities have been advised to “refrain from detaining a ship or initiating criminals sanctions in the event a BWMS does not meet the discharge standard” during sampling and analysis during the first two or three years and to use sampling and analysis on a trial basis during this time. It must be noted that the US has reserved its position on the principle of port States refraining from applying criminal sanctions or detaining ships on the basis of sampling during the trial period. The circular may be considered something of a double edged sword as it introduces the possibility to trial any sampling procedure and does not limit compliance sampling to be aligned with (or no more stringent) what is required for Type Approval sampling. Perhaps the only encouraging news is that the power requirement and cost for BWMS in general is reducing through research and development in a very competitive environment among BWMS manufacturers. While selecting BWMS, shipowners need to ensure that Makers provide clear commitment with respect to among others followings: extended warranty, adequate spare parts, crew training, report of failure mode and effect analysis etc. If an owner is considering buying a Ballast Water Management (BWM) system for US trading vessel, it will be prudent to get assurances from the vendor that it will be USCG type approved within five years. In addition, June - July 2014 |
Indra Nath Bose.indd 23
| 23 8/1/2014 5:22:17 PM
[Feature]
Vol - 6 Issue - 4 • FEBRUARY - MARCH 2014 • MUMBAI • ` 150
Shipping, Marine & Ports World
Shipping, Marine & Ports World
Your Radar to Shipping, Marine & Ports World
Your Radar to Shipping, Marine & Ports World
Vol - 6 Issue - 3 • DEC 2013 - JAN 2014 • MUMBAI • ` 150
10-12, February 2014, Mumbai, India
February 2016 | Mumbai - India Vol- 6 | Issue 3
Vol- 6 | Issue 4
Dec 2013 - Jan 2014
Feb 2014 - Mar 2014
Mumbai
Mumbai
` 150
` 150
PORTS INFRASTRUCTURE & DREDGING • • • • • •
SMP World Expo 2014 Special Report PPP Model in Ports CSR in Dredging Projects Naval Ship Code Electrically Powered RTGs BS 6349-3:2013: Cost-Effective Shipyard Design
SMP DEC -JAN Cover.indd 1
One can only hope that regulations henceforth are not framed on speculating technological developments in future under the false belief that regulations will drive technology but in consonant with reliable technology.
it will be prudent to be sure to get contractual language that provides a warranty or remedy if the system doesn’t make it through the USCG type approval process. One can only hope that regulations henceforth are not framed on speculating technological developments in future under the false belief that regulations will drive technology but in consonant with reliable technology. DNV GL, the world’s leading ship and offshore classification society, in a recent advisory to the industry with respect to selection of BWMS has advised “In a newbuilding project, the major selection factor is the equipment’s cost. Apart from that, one of the most important considerations when selecting a system is the Operational Expenditure (OPEX), such as running and maintenance costs. For a new ship, a high Capital Expenditure (CAPEX) could be acceptable if the OPEX is low, but, for an older vessel, a low CAPEX is likely to be more favourable even though the OPEX could be high.” Let us hope CAPEX and OPEX that shipowners incur in installing and operating Ballast Water Management System (BWMS) perform so that the discharged water actually meets the standard. Once installed on a vessel, Owner of the vessel alone will be held accountable for the performance of such system. 24 | Indra Nath Bose.indd 24
SMP World Expo 2014 SPECIAL... 3/27/2014 4:16:03 PM
SMP DEC -JAN Cover.indd 1
2/1/2014 11:16:42 AM
Dear Readers, Shipping, Marine & Ports (SMP) World, a premier bimonthly magazine of CHEMTECH Foundation & Jasubhai Media Pvt Ltd, encompasses all segments of the Shipping, Logistics and Ports industries. SMP World, making its debut in 2008, has been known to its matter-of-fact approach and objective reportage, leaving an indelible imprint on the operators of the entire Marine Industry. The magazine not only enjoys immense popularity amongst its readers across the globe, but also acts as a decision-making tool for the industry players. You can contribute in the magazine with technical articles, case studies, and product write-ups. The length of the article should not exceed 1500 words with maximum three illustrations, images, graphs, charts, etc. All the images should be high resolution (300 DPI) and attached separately in JPEG or JPG format. Have a look at Editorial calnder of SMP World - www. smpworld.com To know more about Chemtech Foundation, Jasubhai Media and other publication and events, please our website – www.chemtech-online.com Thank you, Regards, Rakesh Roy Features Writer Jasubhai Media Pvt Ltd Tel: +91 22 4037 3636 (Dir: 40373678) E-mail: rakesh_roy@jasubhai.com
| June - July 2014 8/1/2014 5:22:22 PM
[Feature]
Our Coasts and Gold Coasts While India is naturally gifted with a vast coastline of almost 7500 km; expect some beaches and the occasional watersports, the country do not have any waterfront destination - dinner cruises, yacht marinas, cruise berths, the skiing, oceanarium, etc at one destination like at Gold coasts and Sydney Harbors. The author opines that the nation, where the consumer market is enviably the largest anyone can hope for and a vast middle class with excellent spending power and comes with an appetite to try anything new, has the all ability to become world-class ‘touristy’ stuff having oceanarium, water rides, glass bottom boats, tourist submarine, or snorkeling within artificial reefs and some serious competitive sports like competitive skiing, sailing regatta or perhaps wind surfing.
The consumer market is enviably the largest you can hope for. A middle class with excellent spending power and comes with an appetite to try anything new. In simple words, if you get the formula right, you have a blockbuster the next Friday.
I
ndia has over 7500 km of coastline and warm water around us. We have a billion plus population that has an appetite for adventure tours, rafting, gliding, cruises, watching heritage buildings, visiting temples and whatever have you. But we do not have a waterfront destination yet - by this, I do not mean the beaches and the occasional watersports. I mean the dinner cruises, yacht marinas, cruise berths, the skiing, oceanarium, etc at one destination - I mean the Gold coasts and Sydney Harbors. Is this not possible in India? Quite on the contrary, all it needs it certain push of the right buttons. Before you smother me with the tales of red tape and challenges in India, let me interrupt you with the argument – Opportunities still exist in India because we are not yet the perfect country to do business. Given a viable project, yes, the gates will open, albeit with a bit of creaking.
D C Sekhar
Director AlphaMERS Pvt Ltd E: captdcsekhar@gmail.com
We have few ingredients that are basic to such a project. The consumer market is enviably the largest you can hope for. A middle class with excellent spending power and comes with an appetite to try anything new. In simple words, if you get the formula right, you have a blockbuster the next Friday. The draft i.e., ‘water depth’ requirements for these attractions are usually less. Hence these locations do not naturally lend themselves to be developed as a large port and consequently do not impose the opportunity cost. June - July 2014 |
AlphaMERS.indd 25
| 25 8/1/2014 5:25:22 PM
[Feature] What are these attractions? These can be broadly classified into the ‘touristy’ stuff and some serious competitive sports. The former is fit for the whole family to ‘try their hand at it’ or walk through, devouring the sights and sounds. Some of these are oceanarium, water rides, glass bottom boats, tourist submarine, or snorkeling within artificial reefs. The serious competitive sport would mean competitive skiing, sailing regatta or perhaps wind surfing.
going for a paltry ` 60 crores to the scrapyard. Imagine converting this to a floatel and a conference venue. Imagine having the networking dinner party on its magnificent flight deck. The host can justifiably walk with colorful feathers tucked in his cap. Those in the industry are aware that the vessel is under 20,000 tons of lightweight or steel weight and any section of steel or the machinery can be renewed as you want and when you want for a certain cost. If you think that is expensive, you must look up the prices of a star hotel on land.
In India, let me interrupt you with the argument – Opportunities still exist in India because we are not yet the perfect country to do business. Given a viable project, yes, the gates will open, albeit with a bit of creaking.
A yacht marina provides parking space for the real sailor with sealegs and a passion for riding the waves. It also safe parking space to those who only want to flaunt their expensive assets on water. In any case, it is always a great picture postcard image for any state tourism board. The conventional skiing is fast giving way to cable ski parks, in a limited waterspace of 1 sq km. 4 to 5 skiiers hone their skiing skills simultaneously, without use of a single boat. The activity always has a constant stream of tourists lining up to try their hand. Oceanarium is a typical walk through tourist attraction for a whole family. It can be the size of Sentosa or something ten 10 times larger. Costs vary from a most basic USD 5 million to anything upward of a USD 100 million. I had a very interesting conversation with an international oceanarium designer on converting an old tween deck ship into an oceanarium, utilising all its ready piping and machinery. On Karwar beach, there is a decommissioned warship kept on blocks on land, for the benefit of tourists. Though a modest sized vessel, the erstwhile ambience of the vessel is well preserved and is a treat to any tourist. For a non-mariner, this is an interesting insight and revelation into what life onboard the naval vessel is like. Imagine if you lay your hands on the legendary Vikrant and convert to a museum cum floatel. When last known, this vessel was 26 | AlphaMERS.indd 26
Cruise Berth: The Cruise sector is caught in the vicious cycle of uneconomy of scale, leading to high costs and erratic quality of services at few ports. Making a cruise berth is by itself not enough to kick start cruise activity. But let us leave that story for another day. Having a budget for a breakwater opens up many more choices for locating the waterfront destination in tranquil waters. Once the breakwater is made, a cruise berth inside the breakwater is a logical next step. Get Going towards Destination There are many other options ranging from sailboat circuits to underwater restaurants, glass bottom boats in large fish tanks, wig-jet planes, Crystal lagoons and many such attractions. It may be borne in mind that a marina operator will not operate the cable ski and vice versa. It thus remains the promoter role to identify the suitable location on the coast, carry out the feasibility studies, acquire land, master plan, develop common use infrastructure like roads and breakwater, set environmental, safety and security standards, and undertake the brand management of the entire destination. The individual operators of marina or skiing or oceanarium will then step in within this master plan. It is heartening to note that we have the coast and the market within the countr y. That is a great starting point.
| June - July 2014 8/1/2014 5:25:24 PM
[Feature]
Freight Watch – May to June 2014
Note: *Market in “oversupply” mode when reading is excceds 1, vice-a-versa when below 1. Source: Bloomberg
Slowdown in Chinese growth and resultant drop in crude oil import pushed freight rate lower on route TD3 in the month of May. Waning winter demand from west also kept the crude oil and VLCCs demand under leash. Later, with improvement in manufacturing in China, uncertainty in Iraq oil production and some reported demolition of VLCC, freight rates improved in the month of June. Due to supply glut of VLCCs, owners are increasingly salvaging their old vessels to increase return of remaining fleet. The rush to scrap the old vessels has reduces the average fleet age to 22 years. Generally, VLCCs are built to last over 25 years. From January to May the total number of VLCCs sent to scrap totaled 7. The higher scrapping was also in the wake of higher scrap prices, encouraging owners to sell-off.
Authors: Nazir Ahmed Moulvi
Senior Analyst Department of Research & Strategy Multi-commodity exchange of India Ltd E: nazir.moulvi@mcxindia.com
Niteen M Jain
Senior Analyst Department of Research & Strategy Multi-commodity exchange of India Ltd E: niteen.jain@mcxindia.com
D
aily charter index for VLCCs on route TD3 (from Ras Tanura, Saudi Arabia, the world’s biggest oil-export site to Chiba, Japan), opened flat at 37.5 Worldscale (WS) points on May 1, 2014 and later drifted downwards continuing its past months trend. Month after month slowdown in China’s manufacturing reduced the demand for crude oil from the world’s biggest importer and second largest consumer after US. HSBC Holdings Plc and Markit Economics purchasing managers index for China released in early May came at 48.1 in April, compared with 48 in March. Additionally, the Organization for Economic Cooperation and Development also cut the global growth forecast, hurting the sentiments, pushing the freight lower. As such, 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. Fleet of around 625 VLCCs services the world market. Route TD3 is one of the world’s busiest oil route and June - July 2014 |
Freight Watch.indd 27
| 27 8/1/2014 5:27:37 PM
[Feature] Shipping Capacity Statistics Particular
Jun-14
May-14
MoM % Change
Jun-13
YoY % Change
No of Ships in service
2,297
2,289
0.3%
2,311.00
-0.6%
DWT Weight in ‘000 tonnes’
373,296
372,534
0.2%
373,857
-0.2%
No of new ship orders
188
182
3.3%
154.00
22.1%
No of ships under construction
47
49
-4.1%
36.00
30.6%
Order book as DWT %
12.29
12.62
-2.6%
10.13
21.3%
No of Ships broken
4
8
-50.0%
6
-33.3%
No. of VLCCs sailing with cargo
427
416
2.6%
450.00
-5.1%
No. of VLCCs anchored
170
176
-3.4%
129.00
31.8%
Avg. speed of VLCCs in knots (Excl. Anchored) 9.29
9
3.2%
9.18
1.2%
Persian Gulf VLCCs Supply vs. Demand
1.16
1.23
-5.7%
1.17
-0.9%
Global
122,971
124,076
-0.9%
101,452
21.2%
Middle East Gulf
35,666
33,836
5.4%
26,803
33.1%
India
7,546
7,311
3.2%
2,166
248.4%
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
industry benchmark which influences the other routes based on supply of oil and availability of vessels. To capture on an opportunity of higher freight rates, the fleet owners redeploy their vessels on routes offering higher returns, hence spilling over the impact on other routes. Freight rates (for route TD3) in May kept falling to lower levels due to large number of VLCCs available for ferrying oil compared to available cargo. Staring at the oversupply, some vessel operators voluntarily stayed away from the market, to artificially suppress the supply, but their efforts proved to be in vain. The oversupply of vessels in May was such that cargo bookings for the entire month ultimately concluded by third week of May tallying to 112 vessels which was lowest since January 2014 and the lowest for a second quarter month in last four years. As the month of May was about to conclude, freight rate on route TD3 touched a period (May-June) low of 30 WS points on May 28, 2014. Departure of winter from western economies reduced the demand for crude oil and hence for VLCCs ferrying the same, thereby reducing the activity in Middle Eastern ports, keeping freight market under leash. On the conclusion of May, the number of supertankers sailing toward Chinese ports in May averaged 57, the lowest since October, according to weekly snapshots of vessel destinations compiled by Bloomberg. Moreover, the monthon-month crude oil imports of the country also declined by 6 per cent. The decline in crude oil imports was also on account of planned maintenance oil refineries undergo every year during the period. 28 | Freight Watch.indd 28
The onset of June saw some revival in freight rates as the onset of new month also brought some positive news on macroeconomic front with manufacturing in China expanding for the first time in 2014, according to official release from China. Additionally, the excess capacity in VLCC market also declined to 18 per cent from previous month’s high of 23 per cent. Further, as the month of June progressed, China bound voyages increased, as refineries started returning from maintenance. With India buying more of Nigerian crude oil replacing reliance on Middle East region there were expectations that it would increase tone-mile demand for vessels and help in absorbing some excess capacity from VLCC market. India is the top buyer of Nigerian crude oil, buying about 30 per cent of Nigeria’s 2.5 million barrels a day. Freight rates further got boost, on fears of supply disruption, after Islamic State in Iraq and Syria group (ISIS) captured some prominent towns in Iraq, some very close to major oil producing regions. Countries relying on Iraq for crude oil supplies will have to secure oil from elsewhere, lifting the freight rates. Moreover, monetary easing in Europe, strength in US manufacturing, record car sales in China, signaled the increase in demand for crude oil and thus pushed the freight rates to a period high of 47.5 WS points on June 26, 2014. Overall during May-June 2014, freight rates increased by 26.7 per cent to close the two-month period at 47 WS points. (The opinions expressed by authors are their personal views.)
| June - July 2014 8/1/2014 5:27:37 PM
[MARINE ARCHAEOLOGY]
New Research Discounts Conventional Titanic Theories A
cademics at the University of Sheffield have dispelled a long-held theory that the Titanic was unlucky for sailing in a year with an exceptional number of icebergs and say the risk of icebergs is actually higher now.
• Titanic not unlucky for sailing in a year with an exceptional number of icebergs, study finds • Risk of icebergs higher now than in 1912 – the year of the world’s most famous maritime disaster eight of the ten years recorded more than 700 icebergs and five exceeded the 1912 total.”
Previously it had been suggested that the seas which sank the famous cruise ship – which set off on its maiden voyage 102 years ago – had an exceptional number of icebergs caused by lunar or solar effects.
He added: “As use of the Arctic, in particular, increases in the future with the declining sea-ice the ice hazard will increase in water not previously used for shipping. As polar ice sheets are increasingly losing mass as well, the iceberg risk is likely to increase in the future, rather than decline.”
But academics at the University have shown the ship wasn’t as unlucky as previously thought. Using data on iceberg locations dating back to 1913 – recorded to help prevent a repeat of the Titanic – they have shown that 1912 was a significant ice year but not extreme.
The iceberg which sank the Titanic was spotted just before midnight on 14 April 1912 merely 500 meters away. Despite quick action to slow the ship it wasn’t enough and the ship sank in just two and a half hours. The disaster saw 1,517 people perish and only 700 survive.
Professor Grant Bigg who led the research, said: “We have seen that 1912 was a year of raised iceberg hazard, but not exceptionally so in the long term. 1909 recorded a slightly higher number of icebergs and more recently the risk has been much greater – between 1991 and 2000
Funding for the research, published in the journal Weather, was provided by the National Environment Research Council (NERC). (Source: maritime-executive.com) June - July 2014 |
New Research Discounts Conventional Titanic Theories.indd 29
| 29 8/1/2014 5:29:52 PM
[MARKETING INITIATIVE]
B P Marine Academy -
B
PMA has achieved the height of success under the able guidance of Shri. R.C. Singh Chairman, Ex. chief Engineer Merchant Navy. Mr. Singh, aged 61 years, born in 1953 at Rasra, Dist - Ballia, Uttar Pradesh, graduated in Bâ&#x20AC;&#x2122;Sc Mechanical Engineering from Sambhalpur university Orissa, served 17 years in merchant navy upto the rank of Chief Engineer, He is dynamic & Innovative in approach, blending Indian tradition with modern needs of training being reflected in this Academy, Beside merchant navy training, he is well connected with Religious and Charitable organizations of also. Mr. Ram Charitra Manas Award Singh has been awarded by All India Port Labour Association. Also Excellency Award 2003 by Lions Club, CBD Belapur.
30 | BP marine.indd 30
Asiaâ&#x20AC;&#x2122;s Best Maritime Institute
A visionary in Maritime Education and Shipping, B.P. Marine Chairman, Shri. 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% disability to achieve insurmountable success in the field, chosen by a few, the field of Marine Education. As per Media Marex Bulletin dated 27.05.2013.
| June - July 2014 8/1/2014 5:36:54 PM
[MARKETING INITIATIVE]
BPMA IS AWARDED AS:• The “Global Education Excellence Awards 2013” By Prime Time. The Award Was Received By Director Capt. Badal Singh From Chandresh Kumari Katoch Indian Member Of Parliament In The Lok-sabha. • “Education Excellence Award 2013” for being “Asia’s best Marine Institute” by E.T. Now (Times Group) • Mr. Viswanathan Anand Indian chess Grandmaster awards the “Education Excellence Awards 2014-2015 to Mr. R. C. Singh Chairman his Outstanding Contribution to Marine Education Sector • “Best Marine Academy in India 2012-2013” by Newsmakers Broadcasting and Communication Pvt. Ltd. • “Best Infrastructure amongst All Marine Institutes BRANDS ACADEMY. • Rated “Outstanding” Marine Institute by CRISIL. Now in March 2014 B.P. Marine Academy has received Certificate of International Accreditation by IAO For achievement of the highest standards in Organizational Management, Business Management and Business Performance through a commitment improvement. BPMA - Navi Mumbai based Institute Dynamic – Foresighted – Enterprising Trusted Name with ISO 9001:2008. Grade A-One & Synonymous with High Quality Training Institute In a short span of 16 years the BPMA has build a dynamic academy venture catering to
the need of seafaring fraternity, successfully trained Presea -8,500 (Eight Thousand only) & Post-Sea -3,50,000 Institute has provided more than Rupees 15 Corer towards the education and training at various levels to needy candidates. C.B.D.Campus BP Marine Academy (BPMA) Belapur Campus (Head Office) is located in the Central Business District of Belapur, Navi Mumbai spread over an area of 1,21,528 Sq Ft. of its own. It is at a two minutes walking distance from Belapur Railway Station, Bus and Hovercraft terminals. Panvel Campus 15 acres cradled in the arms of mother nature, characrised by the scenic beauty facing to a 1000 meter water front with stunning sea view. It is walking distance from the suburban railway station of Khandeshwar / Panvel , 2 minutes from the proposed International Air port and 5 minutes from International Exhibition Centre. A historical Jetty which was constructed by the great Maratha King Shri. Shivaji Maharaj is also a part of the Panvel Campus. Government of Maharashtra has handed over the entire campus to BPMA to develop, built a State of Art, World class Maritime Training Academy to cater the needs of National Industry. Great care has been taken to match world class facilities. June - July 2014 |
BP marine.indd 31
| 31 8/1/2014 5:36:56 PM
[NEWS: INDIA]
Govt Plans Low-cost Funding for Shipping Firms Mumbai: The Union Government is planning a mechanism to make low-cost funds available to domestic shipping companies to buy ships. The idea is to raise foreign currency loans against long-term shipping contracts Nitin Gadkari, between Indian shipping lines and Minister for Roads, leading public sector companies, Highways and a Shipping Ministry official said. Shipping, GoI This would enable shipping lines to get dollar funds at 3-4 per cent as against rupee loans, which cost more than 10 per cent. The three-five-year contracts can be finalised on a competitive bidding basis, with adequate flexibility to ensure that both the shippers and the shipping lines are not affected by freight market fluctuations, the official said. Several public sector undertakings, including oil companies, are large exporters and importers. These companies often charter foreign
ships as Indian shipping lines do not have the type of ships they require. The Shipping Ministry is now trying to find a solution to this problem by enabling shipping lines to sign long-term contracts, so that they can acquire the type of vessels required by the Indian shippers. Nitin Gadkari, Minister for Roads, Highways and Shipping, said that the Shipping Ministry would discuss the proposal with IDFC. The Minister said the share of domestic shipping lines in the national cargo is currently less than 10 per cent. This only shows how the shipping sector was neglected over the past 10 years. The situation has to change and the country’s shipping tonnage needs to be expanded, he said. India imports nearly 90 per cent of its crude requirements, over 85 per cent of which is carried by foreign ships. If oil importers can tie up long-term arrangements with Indian shipping lines, at least 50 per cent of the country’s oil cargo can be carried by national vessels, said a shipping company official.
Indian Shipping Lines Can Own Foreign Flag Ships Directly
Port Committee to Recommend Onshore Operation Modalities
Mumbai: Indian shipping companies will soon be able to directly own and operate foreign flag vessels. Currently, they can charter and operate foreign vessels with special permission but can own them only through a foreign subsidiary.
Kolkata: A five-member committee of heads of major ports of the country, set up to advise modalities on how revenue can be shared for shore operations handled by private operators, would shortly submit its report.
The Shipping Ministry has finalised guidelines allowing Indian companies to register their ships under foreign flags. This follows the Union Budget announcement about the Government decision to create a new category of fleet called ‘1 Indian controlled tonnage’. The guidelines will be announced shortly, said an official.
The committee, headed by Cochin Port Trust Chairman Paul Anthony, would submit its report on the possibility of revenue sharing for stevedoring activities, Kolkata Port Trust Chairman R P S Kahlon said while speaking on the sidelines of a seminar on Coastal Shipping.
The policy change will allow domestic shipowners to register their vessels in tax-friendly countries and at the same time operate them from India. A major advantage of this will be that while the shipping lines can take freight income from such vessels directly on their books of accounts, these vessels will not be subject to the Indianflag restrictions. These vessels will also be eligible for availing tonnage tax benefits subject to a capacity ceiling.
32 | India News 44-50.indd 32
Kahlon said after their recommendations, the Ministry of Shipping would take a final decision in this regard, adding that he wants stevedoring activities (concerning loading and unloading ships) to be brought under Tariff Authority of Major Ports (TAMP) and should be made applicable to all Ports. “Any measure which is not decremental to the Port will be adopted and if stevedoring activities are brought under TAMP, revenue sharing will be possible,” Kahlon added.
| June - July 2014 8/1/2014 5:40:44 PM
[NEWS: INDIA]
ClassNK Acquires Canada’s Helm Operations Mumbai: ClassNK has announced the acquisition of Victoria, Canadabased maritime software company Helm Operations. The deal was hailed by both parties as two world-class companies joining forces to improve safety and operational efficiency in the marine industry, while greatly enhancing the success and capabilities of both organizations. Tokyo-based ClassNK is one of the world’s largest classification societies, providing safety and certification services for more than 8,600 ships, representing about 20% of the global merchant fleet. Founded in 1999, Helm Operations has grown to become a leading provider of manning, maintenance, dispatch, and HSQE software to the workboat and offshore industries, and Helm software is currently used on some 1,000 vessels belonging to some of the most respected workboat companies in the world, including SVITZER, Seaspan, Blessey Marine and Florida Marine Transporters. “This is a very exciting day for Helm,” said Ron deBruyne, CEO and Founder of Helm Operations. “Since our founding, Helm has always been about providing great software to the maritime industry. We’ve been able leverage the incredibly talented IT community here in Victoria, which has also drawn the attention of global leaders like Amazon, and Ebay among others, and combine that with the know-how and experience from the workboat industry to create intuitive, user-friendly systems that contribute directly to improving the safety, efficiency, and profitability of workboat companies. In ClassNK, we’ve found a partner who shares our vision of providing the maritime and offshore support sectors with the best software possible, and we’re incredibly honored and excited by the potential for new developments that this new partnership will create. By working together, we’re convinced we can create a world-class software platform for the global maritime industry.” Yasushi Nakamura, Representative Director and Executive Vice President of ClassNK, praised the purchase, saying: “At ClassNK our mission has always been to ensure that global innovation is put to use for the benefit of the entire maritime industry. Commencing with the acquisition of NAPA earlier this year, and the acquisition of Helm now, we are bringing together a team of leading software companies from around the world in order to help achieve that goal.” We’ve witnessed the impressive growth and success of Helm’s software systems over the years, and have seen first hand the incredible value that Helm’s software provides to workboat companies. Helm CONNECT for example makes HSQE management a simple and intuitive process for owners and operators, and we’re convinced that linking maritime companies and classification on a single, easy to use platform will be a huge contribution to the maritime industry. Through this acquisition we can provide Helm with the resources and reach to even further develop their industry-leading software systems for all aspects of ship operations, and in turn make them available for everyone in the industry around the globe. We very much believe that Helm’s innovative solutions can contribute greatly to the improved safety and efficiency of shipping companies – and are excited about being able to ensure these technologies are available industry-wide.”
India-Bangladesh Coastal Shipping Trials to start Soon Mumbai: India and Bangladesh are set to start Coastal Shipping by this year and trial runs between the ports in the two countries are slated to start by October this year. “An understanding has been reached between the two countries for commencement of Coastal Shipping between the Ports of Bangladesh and the Eastern Ports of India. It was agreed that a trial run of Bangladesh/ Indian vessels would be undertaking latest by 14 October,” an official said. The two countries have agreed to conform to Indian standards of river sea vessels (RSV)-4 for the operation of ships. India has agreed to assist Bangladesh through the Indian Register of Shipping (IRS) for classification of Bangladesh vessels.
Another Container Terminal at Mundra Mumbai: CMA CGM Group has signed an agrrement with Adani Ports and Special Economic Zone (APSEZ), India’s largest port developer and part of Adani Group, an agreement for the development of a new common user Container Terminal at Mundra Port. This will be the 4th Container Terminal in Mundra and will be a 650 meters terminal along with 27 hectares of back area capable of handling 1.3 million TEUs annually. This world class terminal will initially have four units of 65 tonne capacity of Rail Mounted Quay Cranes capable of handling 18,000 TEU vessels and Super Post and Ultra Large Container Vessels.
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Indian Shippers may Get Lifetime License Mumbai: Indian shipping companies will no longer need to rush to the Directorate General of Shipping’s office in Mumbai Gautam Chatterjee, to renew ship licences year after year. The Ministry of shipping Director General of has issued a new policy that did Shipping away with annual procedure and replaced it with a much simpler onetime licensing. Even though this won’t solve all the problems plaguing the struggling Indian shipping firms, it will certainly clear one of the most unnecessary procedures hurdles, saving both time and money. “Life is going to get so much easier for shipping companies. It is a huge procedural reform, which will reduce footfall in the Directorate General’s office,” Gautam Chatterjee, Director General of Shipping.
CWC to Set up 21 Warehouses across Nation New Delhi: Central Warehousing Corporation (CWC) has signed a Memorandum of Agreement(MoA) with the Central Medical Services Society(CMSS), an institution under the Ministry of Health and Family Welfare, Government of India, New Delhi for providing warehousing facilities including for walk in chambers and walk in freezers for storage of drugs, pharmaceuticals, vaccines and other health sector goods. To begin with, CWC will provide 2.30 lakh sqft warehousing facilities at 21 locations in 20 states and 1 Union Territory and depending upon additional requirement, the facilities will be augmented, says a release. The MoA was entered between Shri B B Pattanaik, Managing Director, CWC and Shri Navneet Verma, Director General & CEO, CMSS.
Green Channel Clearance for Coastal Cargo Soon New Delhi: In a move to push coastal movement of cargo, the Shipping Ministry has instructed all major ports to have a ‘green channel clearance’ for such cargo on the lines of green channel for passengers at international airports.
Other ports have been asked to start similar operations in the next one year in all ports. “However, there are a couple of ports like Jawaharlal Nehru Port where domestic cargo is very insignificant. In such ports, it may not be viable to have such a system,” a source said.
To start with, Kandla and Mumbai ports have identified separate berths with exclusive storage areas and gates for coastal cargo. Such arrangements will become operational by the end of this month. Similarly, Visakhapatnam port is constructing an exclusive berth for coastal cargo and green channel system will be functional in the next nine months.
The recent move gains importance considering the thrust of the Narendra Modi Government to promote coastal movement of cargo as this not only decongests the road and rail network but is also environment friendly and cheap. The ministry aims to double the coastal cargo movement from the current 164 million tonnes in the next five years.
Roadmap for Developing Mumbai Port’s Waterfront and Port Lands
Krishanpal Gurjar, Minister of State for Shipping,
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New Delhi: The Ministry of Road Transport, Highways and Shipping has constituted a committee to prepare a roadmap for the development of Mumbai Port’s waterfront and port lands. Krishanpal Gurjar, Minister of State for Shipping, informed the
Rajya Sabha that plans have been conceptualised to build a world class cruise terminal, marina, floating hotel and restaurant. He pointed out that the total acreage of land available with the Port Trust is about 753 hectares and the approximate value of the same, based on the ready reckoner, is around ` 46,000 crore. This doesn’t include the value of water area under the Port.
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[NEWS: INDIA]
Inland Waterways, Odisha Govt to Bulild NW 5
India’s Export may Reach $360 bn in 2014
Walter D’Souza, Regional Chairman, FIEO
Naveen Patnaik, Chief Minister, Odisha
New Delhi: The Federation of Indian Export Organisations has struck a positive note on India’s export front, projecting that exports could touch USD 360 billion this fiscal, going by trends in the current quarter. Last fiscal, India’s total exports were about USD 312 billion.
Walter D’Souza, Regional Chairman, FIEO, said that it seems the beginning of a growth backed by better global trade forecast of 4.7 per cent in 2014 and 5.3 per cent in 2015,” Sectors such as readymade garments, organic and inorganic chemicals, engineering goods and petroleum products drove the export growth, he added.
Bhubaneswar: Inland waterways authority of India (IWAI), government of Odisha, Paradip port and Dhamra port have signed an agreement to develop a portion of national waterway 5 (NW 5), connecting Kalinganagar industrial area with ports of Paradip and Dhamra, and eventually Talcher. This project will be ready in three years.
D’Souza felt that through aggressive marketing and cost efficiencies India’s exports could reach the targeted USD 750 billion by 2018-19.
“The State Government will provide land for free of cost and all possible assistance to fast track the project. The project is expected to be completed in three years,” said Naveen Patnaik, Chief Minister of Odisha.
Chandrajit Banerjee, Director General, CII
The projected cost, according to a statement from the CM’s office, is ` 2000 crore. The proposed waterway on river Brahmani and the Mahanadi delta will link the industrial area of Kalinganagar, site of Tata Steel’s upcoming 3 mt steel plant, to the two ports significantly reducing dependence on road and rail. Kalinganagar in Jajpur district is already home to plants of Jindal Stainless Steel, Neelachal Ispat, Mesco and Visa Steel amongst others.
India-Bangladesh Trade may Double by 2018: CII New Delhi: Bilateral trade between India and Bangladesh could almost double to USD 10 billion by 2018, provided trading irritants like non-tariff barriers and infrastructure related-issues are resolved, industry body CII said.
Chandrajit Banerjee, Director General, CII, said that it will boost economic cooperation and further intensify trade and investment between India and Bangladesh, among other things will further strengthen the India-Bangladesh economic partnership. Bilateral trade between India and Bangladesh stood at USD 6.6 billion in 2013-14 with India’s exports at USD 6.1 billion and imports from Bangladesh at USD 462 million, representing more than double the value of USD 2.7 billion five years ago. However, CII said, the trade imbalance in favour of India and decline in Bangladesh exports to India are a cause of concern, adding that skewed trade could be redressed with greater investment participation of Indian companies in Bangladesh. Indian investments in the eastern neighbour stood at a cumulative USD 2.5 billion in 2013 and have been surging in the last three years. Improving the investment climate by developing single window clearance for new business proposals; repatriation of profits; setting up an Industrial Park for India in Bangladesh outside Export Processing Zone (EPZ) with all the needed infrastructure facilities; among other things will further strengthen the India-Bangladesh economic partnership, he said.
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New Advisory Councils for Major Ports Mumbai: The Union Government has proposed to reconstitute the Boards of Trustees of all Major Ports. The move assumes significance as it comes after last week’s decision to terminate the advisory councils at all government ports constituted during the UPA regime. The Ministry of Shipping has sent notices to all ports stating that the existing advisory councils would be terminated. These councils have representatives from trade associations, private terminal operators and experts. According to officials, the plan to recast the Major Ports’ boards is mainly aimed at granting board representation to the Ministry of Environment and Forests as port projects require environment clearance. Of the 12 Major Ports, except Ennore (which is incorporated as a company) all others are managed by Board of trustees. These boards comprise 20-21 members, which besides chairmen and deputy chairmen include representatives of trade bodies, Customs, defence, coastguard and the so-called ‘other interests’.
GMB to Develop Port at Dahej Ahmedabad: Gujarat Maritime Board (GMB) has entered into a concession agreement with Sterling Port Ltd for the development of the Dahej port. The project envisages investment of about ` 4060 crores over a period of 10-12 years. This is one of the significant achievements of the GMB in the recent times. GMB had invited competitive bids for development of Dahej port in Bharuch District on Build-Own-Operate-Transfer (BOOT) basis. After evaluation of offers from various bidders, Sterling Biotech Limited, a listed Sandesara Group company was shortlisted for development of the project. The proximity of the port to states like Madhya Pradesh, Punjab and Haryana in addition to the cement and fertilizer plants nearby would contribute to the volume of trade that the port would handle. The total port capacity of Phase I & Phase II would be 41 MMTPA. This would be a significant capacity addition in the Gujarat’s non-major ports having total capacity of 387 MMTPA at present.
Foreign Ships may Get Cabotage Relaxation on Indian Coast New Delhi: The Union Government is planning to relax cabotage norms at Major Ports for empty containers, to let foreign-flagged vessels carrying empty containers move on India’s coastline without restriction. The possibility of relaxing a shipping law that reserves transporting cargo on domestic routes to local ships has gathered steam after the National Democratic Alliance (NDA) came to power. The Shipping Ministry has sought the Directorate General of Shipping’s view in this regard. The cabotage provisions in the Indian Merchant Shipping Act do not allow foreign flag vessels to carry local cargo from one Indian port to another. Exemption is granted only when a suitable Indian ship is not available to carry a particular cargo.
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Indian Ship to Get Cargo Preference over Overseas Carriers New Delhi: Ships under the new category of ‘Indian controlled tonnage’ will get preference in carrying coastal cargo over ships owned by foreign lines, when such vessels are in-chartered, according to the guidelines issued by the Government said. Ships under this category, though owned by Indian companies, will be registered under foreign flags. When such vessels are charted to India, they will have the right of first refusal of cargo over non-Indian ships. Creation of this new category of ships, announced by the Finance Minister in the Union Budget, is expected to enable Indian companies to register ships under ‘tax-friendly’ foreign countries. It is also expected to help them to raise funds at lower cost. If an Indian flag vessel is not available to carry a particular coastal cargo, the ships under the controlled tonnage will be eligible for the priority to carry the same cargo. This is expected to help increase the share of Indian lines in the country’s cargo, which is currently less than 10 per cent. The tonnage acquired under the controlled category should not exceed the company’s Indian flag vessels. They should maintain the tonnage level as on April 1, 2014. Though the domestic shipping companies are happy with the new policy, they are a bit disappointed over the stipulation that they should maintain the level of Indian tonnage they own as on April 1, 2014. This means they cannot flag out any of their existing ships.
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[NEWS: INDIA]
Karnataka Govt to Develop Minor Ports for Export, Import Boost
Visakhapatnam Port Trust in Expansion Mode
Mangalore: If everything goes as per plan, then gradually all Minor Ports in Karnataka will be converted into commercial ports to promote export and import.
Visakhapatnam: Union Shipping Minister Nitin Gadkari expected to hold a meeting with chairmen of various major ports next week, the Visakhapatnam Port Trust (VPT) is hoping to seize the opportunity to highlight its expansion plans as well as various critical issues it is facing, including the need for providing more railway rakes to Vizag Ports as rake shortage has become a major bottleneck.
Baburao Chinchansur, Minister for ports and fisheries, Karnataka, said that very soon the cabinet will discuss about the proposal of Karnataka State Port Development Policy. “There are 12 minor ports in the state, but only Karwar is considered as a major commercial one with commodities are being exported and imported from it. We have plans of developing all other minor ports into commercial ports by giving additional fillip to coastal trade,” he said adding that the state has earned an annual revenue of ` 7.48 crore through minor ports. The process of taking up the second phase of development of Karwar port at an estimated cost of ` 1,500 crore is on and an agreement has been signed with Honnavar Port Limited to develop Honnavar Port at an estimated cost of ` 511 crore, Chinchansur said.
According to the sources, VPT will be providing information related to the existing draft at the port along with the capacity of berths, various cargoes it handles as well as its expansion plans. Moreover, information related to the financial status of the port is also expected to be shared with the Minister during the meeting. VPT sources said the key issue that the port will highlight is the need for increasing the availability of rakes to the ports in Vizag like VPT and Gangavaram Port.
India Should Focus on Export Potential of Northeast: CII Guwahati: India should focus on the export potential of the Northeastern region to neighbouring countries to free it from poverty and backwardness, speakers said at a meet organised by industry lobby Confederation of Indian Industry (CII). The stakeholders’ consultative workshop on the role of the Bangladesh-China-India-Myanmar (BCIM) economic corridor was organised in cooperation with the North Eastern Council, the Institute of Chinese Studies and the Observer Research Foundation. Council member M P Bezbaruah suggested that there is a need to study the export potential of the north east and match that with the demand conditions in markets such as Bangladesh, China and Myanmar. He pointed out that the government needs to create enabling conditions in the region for such exports to take place. Former Indian High Commissioner to Bangladesh and leader, BCIM Economic Corridor Joint Study Group, Rajeet Mitter stressed on the need for having more trade facilitation measures with the objective of promoting trans-national movement of goods. Mitter further highlighted that the generation of new additional trade flows and employment opportunities will arise through the promotion of production hubs and supply chain networks along the economic corridor. The whole sub-region of BCIM brings together four countries with 40 percent of the world population, 13 per cent of world GDP (gross domestic product) and 10 percent of the world’s surface area.
Centre Plans Special 301-type Export Report New Delhi: The Government is planning to bring out an annual export report, enumerating the non-tariff barriers faced by Indian firms and exporters abroad. This will be similar to the US’s Special 301 Report, which identifies trade barriers to US companies in other countries, as well as the means to resolve those. These reports, to be brought out along with the foreign trade policy, would primarily focus on regions such as the US, Europe, Japan and China, where Indian companies, especially exporters, faced various challenges such as unfair competition, price negotiation and technical barriers, a senior commerce department official said.
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Kerala Govt Plans to Set up 8 Small Ports in the State Thiruvananthapuram: The state government has plans to establish eight small ports along the Kerala coast, said Chief Minister Oommen Chandy.
Oommen Chandy, Chief Minister, Kerela
The Chief Minister said water transport is one of the major initiatives under the Navaratna projects of Mission 676 of the government. The state has been promoting water transport-related ventures, he said, adding that the Kollam - Kottapuram national waterway would be commissioned this year itself.
Non-availability of sufficient land is a major issue before the state when it comes to national highway development, Chandy said. â&#x20AC;&#x153;Basic infrastructure development including road, rail, airport and water transportation facilities are important.
Singapore Delegation Visits Vizag Port Visakhapatnam: A high-level delegation from Singapore visited the Visakhapatnam Port and held talks with its Chairman M T Krishna Babu to explore business opportunities. The team comprising International Enterprise Singapore M T Krishna Babu, (formerly Trade Development Board) under Chairman, Vizag Ministry of Trade and Industry (Singapore) Centre Port Director Indra Suppiah, Regional Director in India based in New Delhi Benjamin Yap and Timothy Sun from the headquarters in Singapore visited various facilities at the port. IE Singapore is the Government agency of Singapore spearheading its external business. Krishna Babu gave a presentation and briefed the team on existing infrastructure and the plans to mechanise the facilities. The team stated that they were interested to explore collaborative opportunities with Singapore-based companies to increase bilateral trade.
Hazira Port Capacity Likely Increase Mumbai: Essar Ports, one of the largest port companies in the country, plans to expand its Hazira port capacity by 20 million tonne to 50 million. With three iron ore berths at Visakhapatnam Port under expansion a total capacity of 32 million tonne is set to come up. Additionally, the company also plans to develop a coal terminal at Paradip of 18 million tonne capacity. The company is also setting up a dry bulk terminal at Salaya with a capacity of 20 million tonne. Despite a marginal rise in revenues on a year-on-year basis and a declined bottomline in the June quarter, Essar Ports is hopeful of an increase in volumes going ahead as its ongoing projects come on stream by FY18. Essar Ports has three operational port terminals at Hazira, Vadinar and Paradip. The Hazira port is an allweather, deep-draft port with 30 million tonne of dry bulk and break bulk cargo handling capacity, Vadinar has 58 million tonne of liquid cargo handling capacity and Paradip dry bulk terminal with 16 million tonne capacity.
Singapore Delegation Visits Vizag Port Visakhapatnam: A high-level delegation from Singapore visited the Visakhapatnam Port and held talks with its Chairman M T Krishna Babu to explore business opportunities. The team comprising International Enterprise Singapore (formerly Trade Development Board) under Ministry of Trade and Industry (Singapore) Centre Director Indra Suppiah, Regional Director in India based in New Delhi Benjamin Yap and Timothy
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Sun from the headquarters in Singapore visited various facilities at the port. IE Singapore is the Government agency of Singapore spearheading its external business. Krishna Babu gave a presentation and briefed the team on existing infrastructure and the plans to mechanise the facilities. The team stated that they were interested to explore collaborative opportunities with Singaporebased companies to increase bilateral trade.
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[NEWS: INDIA]
Tuna Tekra Terminal to Commission by Dec 2014 Ahmedabad: Adani Ports & SEZ Ltd, India’s largest port developer and part of Adani Group, will commission its dry bulk cargo handling terminal at Tuna Tekra in a record time by December 2014. Adani Ports won the right to develop a dry bulk terminal with a cargo handling capacity of 14.112 MMTPA at Tuna Tekra, Kandla Port in February 2012 under a concession agreement with Kandla Port Trust. The trade meet also proved to be an excellent networking platform for members of the trade and Adani Group. The attendees were very appreciative of Adani Ports & SEZ for the trade meet and site visit. One of the agencies attending the meet brought along their Japanese principals to show them the facility.
Sophisticated PPP Model to Boost Infrastructure New Delhi: The Government is working on a sophisticated and flexible framework for the publicprivate partnership (PPP) model to boost infrastructure development, said Arvind Mayaram, Finance Secretary. “What we need to do is to have a more sophisticated PPP framework which we are working on now.” This means a framework that looks at PPPs in a manner where there’s flexibility to factor in the changes in the circumstances that run over a period of 25-30 years, he said at a FICCI event.
Major Ports to Double Capacity in Next 5 yrs: Shipping Minister New Delhi: Union Shipping Minister Nitin Gadkari said that India’s 12 major ports will double their cargo handling capacity to 1,600 million tonnes per annum (MTPA) in the next five years. “India plans to double the ports’ capacity from the current 800 MT to 1,600 over the next five years,” Gadkari said at a review meeting on the port sector attended by chiefs of all the 12 state-run major ports. He said the major ports have already drawn up action plan for a capacity addition of 500 MTPA, of which projects to the tune of 350 MTPA are slated to commence during this financial year itself. “Ports and roads play a key role in development. The country’s GDP can be boosted by 2 per cent if these key infrastructure sectors are developed to their potential,” said Gadkari, who also holds the charge of Transport Ministry. He said the Government will give a greater push to water transport. Required policy measures, including review of the tariff regulator TAMP, will be taken to “remove bottlenecks and facilitate growth”, he said.
Govt Plans to Convert Govt-owned Ports into Companies New Delhi: The government is planning to convert 12 out of the 13 ports owned by the Union government into companies to improve efficiency and competitiveness. The ports currently operate as trusts. The shipping ministry has initiated the process for appointing a consultant for corporatisation of ports, a spokesman for the ministry said. “We are planning to seek cabinet approval by March 2015 to enable corporatization of ports through amendments to the Major Port Trusts Act,” he added. Currently, 12 of the 13 ports controlled by the Union government are run as trusts under a law framed about five decades ago, called the Major Port Trusts Act, 1963. Ennore Port in Tamil Nadu is the only exception. Ennore Port Ltd was formed as a company under the Companies Act, 1956, when it was opened in 2001. The 13 ports together account for some 52 per cent of India’s external trade shipped by sea. In the year to March 2014, these ports together loaded 555 million tonnes of cargo. Currently, most of the major port trusts in India carry out terminal operations as well, resulting in a hybrid model of port governance.
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World’s Top 30 Container Ports’ Volume Increases 4.7% in Q1 USA: Container throughput at the world’s top 30 container ports increased 4.7 per cent in the first quarter as trade volumes continued to recover from the low growth since 2012, according to an Alphaliner survey. Mainland China ports, which account for 10 of the top 30 ports, achieved mixed results. The aggregate growth of the 10 biggest Chinese ports reached 5.1 per cent in the first quarter, compared to the 7.3 per cent increase a year earlier. Container volume through China’s ports was up 5.5 per cent at 45.6 million TEU from January to March, with coastal ports growing 6.6 per cent, while river ports declined 3.8 per cent, said the Ministry of Transport. Contraction at river ports reflects lower domestic demand in China, while export growth at the main coastal ports remains relatively strong, said Alphaliner. European ports also showed mixed results, with North Europe’s Rotterdam, Hamburg, Antwerp and
Bremerhaven posting an aggregate growth of 2.3 per cent compared to a contraction of 1.8 per cent in the first quarter of 2013. The five largest southeast Asian ports reported total growth of 3.7 per cent, up from 0.6 per cent growth last year. Singapore was up 3.9 per cent; Port Kelang by 5.7 per cent and Tanjung Pelepas volume increased 1.3 per cent. “Singapore is expected to add some five million TEU in annual handling capacity this year when it opens five berths at the new Pasir Panjang Terminal 5 while Tanjung Pelepas will add two million TEU with the launch of berths 13 and 14.” In the Middle East, volumes at Jebel Ali port surged by 17.5 per cent year on year to 3.6 million TEU, following on from growth of just 2.7 per cent for the whole of 2013 over 2012. The strong performance resulted from increases in transshipment volumes amid strong demand growth in the Gulf region, as well as large infrastructure projects in East Africa.
COSCO Shipyards Win Barge, Bulker Contracts
Hapag-Lloyd and MOL Launches New UK-West Africa Service
China: COSCO Corporation (Singapore) has announced that its shipyards have secured contracts valued at approximately USD 300 million to build one accommodation barge and seven bulk carriers.
Dubai: A new service between Hapag-Lloyd and MOL will connect DP World’s London Gateway with various ports in West Africa. The service, to rotate between Antwerp, Hamburg, DP World London Gateway, Algeciras, Dakar, Lagos/Apapa, Tema, Abidjan and Algeciras before returning to Antwerp, will enable the UK to export chemicals, white goods, malt, fish and meat to Africa.
COSCO (Zhoushan) Shipyard has won contracts from a European company to build one DP3 accommodation barge scheduled for delivery in 3Q16 and an Asian company for two 64,000 dwt bulk carriers scheduled for delivery in 1H16. The contract also comes under the option to build one 64,000 dwt drybulk carrier for a European company scheduled for delivery in 2Q17. Meanwhile, COSCO (Dalian) Shipyard has clinched contracts to build a total of four bulk carriers. Of these, two 82,000 dwt bulk carriers will be constructed for an Asian company scheduled for delivery in 4Q15 and 1Q16. The remaining two 82,000 dwt bulk carriers will be built for a European company scheduled for delivery in 2Q16 and 3Q16. The above contracts are not expected to have a material impact on the net tangible assets and earnings per share of the COSCO Corporation (Singapore) for the financial year ending December 2014.
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“The decision to bring the service to DP World London Gateway by existing customers Hapag Lloyd and MOL demonstrates confidence in DP World London Gateway’s ability to deliver a reliable efficient service and their desire to grow their business at the port,”said London Gateway commercial manager, Tabare Dominguez. UK Shipping Minister Stephen Hammond commented: “DP World London Gateway is an important piece of national infrastructure connecting the UK to international markets, with deepsea, rail and road connectivity. I want to congratulate the DP World London Gateway team for their remarkable success in taking a brownfield site and turning it into a world-class state of the art deep-sea container terminal and logistics park.”
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[NEWS: FOREIGN]
Ship Deliveries Forecast to Add 1.34 million TEU Capacity in 2014
Vale Ports Increase Productivity
UK: Ship deliveries this year are forecast to add 1.34 million TEU capacity to the global containership fleet, and 40 per cent of the newbuildings are 12,000 TEU or larger. Conversely, funds committed to containership orders so far this year are down by one fifth compared to last year. In 2013, USD17.3 billion was spent on vessel orders.
China: Vale announced that its Tubarão Port, in Brazil, and Lianyungang Port, in China, have signed an agreement to jointly increase the productivity of their operations.
Clarkson Research Services estimates that USD 4.6 billion was invested in new box ships in the first four months of 2014, with vessels in excess of 8,000 TEU accounting for USD 4 billion. The total was 20 per cent lower year on year. The researchers said 15 containerships for a combined 123,280 TEU were ordered in April, bringing the year-to-date total to 61 ships, equivalent to 503,700 TEU. This includes contracts for 20 ships of 12,000 TEU upwards, totalling 285,800 TEU, and a further 18 ships of 8,000 TEU-11,999 TEU with combined intake of 174,300 TEU. Total deliveries next year are expected to hit a record 1.54 million TEU, ahead of the previous peak of 1.5 million TEU set in 2008.
Obama Boosts US Port Development USA: A new plan has signed into law by President Obama will see billions pumped into US water projects, including the deepening of ports. The Water Resources Reform and Development Act 2014 has authorised USD 12.3 billion to go into various water infrastructure projects. As the first water infrastructure bill since 2007, the bill authorises 34 projects that include dredging, flood control, hurricane recovery and environmental restoration. The move was quickly hailed by the American Association of Port Authorities (AAPA), which commended the President for signing the Act into law. Under the bill, ports will be able to pay up front the costs of deepening and subsequently seek full or partial reimbursement from federal funds. This is hoped will shave years off the construction time for projects such as Fort Lauderdale in Florida. The dredging of ports will better allow them to accommodate the bigger ships being built to pass through the expanded Panama Canal. Boston Harbour, for example, has approval for a US$310 million plan that will deepen its navigation channels, increasing the size and number of ships that can be handled and allowing it compete with New York. Prior to signing the law, President Obama said: “This bill gives a green light to 34 water infrastructure projects across the country, including projects to deepen Boston Harbour and the Port of Savannah and to restore the Everglades. And with Congress’s authorisation, these projects can now move forward.”
The cooperation deal, signed during a state visit by Chinese President Xi Jinping to Brazil, also covers the development of green technologies. The ports of Tubarão and Lianyungang have agreed to work together to implement “high productivity operations procedures” and “green emissions and energy related measures,” said Vale. Tubarão Port, located in southeastern Brazil, is responsible for handling 15 per cent of Brazil’s grain exports and 35 per cent of Vale’s iron ore export, while Lianyungang Port is an important Chinese port for the import of raw material, energy, and coal. China is Brazil’s largest trade partner, with a strong focus on mineral products and raw materials. During the Chinese state visit to Brazil, Vale signed a Memorandum of Understanding with the Bank of China (BOC) for cooperation and global financing arrangements under which BOC would be able to provide up to $2.5 billion in the form of syndicated loans, bilateral loans, export credit or trade finance. The MOU is designed to strengthen partnerships between Vale and Chinese enterprises. Vale also signed a cooperation agreement with Eximbank of China, which will set the basis for the provision of credit facilities covering the acquisition of equipment, goods and services in China for Vale’s projects in Brazil and overseas.
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[NEWS: FOREIGN]
CMA CGM to Rotate its ASAF and WAX Lines France: CMA CGM has decided to reorganise the rotations of its ASAF and WAX lines in order to better match the needs of its customers in terms of Asian ports covering and available capacities, and to improve the reliability and flexibility of its lines The new features for these lines will then be the following: ASAF - Weekly direct line dedicated to Angola, Congo and Namibia with a fleet of 13 vessels of 5,700 TEU capacity. New rotation adding 2 ports in North China: Xingang – Qingdao – Shanghai – Nansha – Chiwan – Singapore – Tanjung Pelepas – Port Kelang – Walvis Bay – Pointe Noire – Luanda – Cape Town – Port Kelang - Xingang Effective as from August 9, 2014 with MV CAP ANDREAS WAX - Weekly direct line dedicated to Nigeria, Cameroon and Côte d’Ivoire The new rotation starting in Central China: Shanghai - Ningbo - Chiwan - Nansha - Tanjung Pelepas - Port Kelang - Cape Town - Tin Can - Douala - Abidjan - Pointe Noire - Colombo - Port Kelang – Shanghai.
HMM Increases its Fleet Portfolio
South Korea: Hyundai Merchant Marine (HMM) has received the third of five same size ships with the arrival of the 13,100TEU Hyundai Drive from Daewoo Shipbuilding & Marine Engineering (DSME) for USD 129 million per vessel. The Hyundai Drive has joined the G6 Asia-Europe Loop 6 following the delivery of its sister ship, Hyundai Hope, in March, reports Alphaliner. The Hyundai Victory and Hyundai Pride are to follow in three months. The five newbuildings acquisitions follow on from five similar ships from the Hyundai Samho shipyard in 2012.
Evergreen Re-starts REX 3/ARC 2 Far East-southern Red Sea Service
Maersk to Start Sino-Australia Service with Cosco
Taiwan: Evergreen Line is to resume services of direct connections to Far East-Southern Red Sea in a joint service with CMA CGM, UASC and CSCL on their REX 3/ARC 2 service following its suspension of services three years ago.
Denmark: Maersk Line plans to expand its presence on the China-Australia trade through the launch of its Maersk Sino Australia Service (MSAS), by purchasing slots on the Sino Australia Service (SAS) operated by Cosco and ANL.
The re-branded ARC service will deploy seven vessels downsizing from the 6,000-7,000 TEU range to vessels of 4,250 TEU.
This weekly service connects Ningbo, Shanghai, Xiamen, Shenzhen-Shekou and Hong Kong to Sydney, Melbourne and Brisbane. It turns in six weeks and is operated by six ships of 5,000-5,800 TEU.
ARC turns in 49 days and rotates through Xiamen, Shenzhen-Yantian, Shenzhen-Shekou, Port Kelang, Djibouti, Jeddah, Port Sudan, Djibouti, Port Kelang and back to Xiamen. The first sailing from Xiamen was scheduled for July 24 deploying the 4,404-TEU CMA CGM Amber, according to Alphaliner. The reviving of the service will complement its existing Far East-Red Sea service (FRS) jointly operated with Cosco to focus on northern Red Sea ports. Evergreen’s closure of its ‘REX 3/SRS 2’ service in May this year will be compensated by its new slot arrangement with UASC allowing it direct connections to Far East-southern Red Sea.
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The first sailing involving the world’s biggest carrier, and founding member of the P3 Alliance, is scheduled to depart on June 8 from Ningbo, China. The service aims to complement other container shipping services that Maersk offers via its AsiaAustralia Boomerang service, operated jointly with MSC; and the Yoyo service, a weekly offering maintained through slots on the Far East-Australia joint service of Hapag-Lloyd, Hamburg Sud, HMM and APL. The MSAS service focuses exclusively on China allowing the ocean liner to offer direct connections from Shekou and Xiamen, China to Australia.
| June - July 2014 8/1/2014 5:48:01 PM
[NEWS: FOREIGN]
Forwarders Urge US Federal Maritime Commission to Relieve Port Congestion USA: US Freight forwarder members of the National Customs Brokers and Forwarders Association of America (NCBFAA) are again urging the US Federal Maritime Commission (FMC) to relieve port congestion.
carriers to develop and publish contingency plans outlining how they would provide transport services for cargoes moving into or out of US ports during times of disruption.
The NCBFAA asked FMC Chairman Mario Cordero to establish a new system to deal with traffic congestion problems at the country’s ports.
It said the carriers and marine terminal operators are required to amend their demurrage and detention tariffs to exclude any penalty portion of those charges from being assessed during those events.
The association asked because of a possible strike by US west coast dockers now in contract talks. Difficult weather conditions had also disrupted some the nation’s ports earlier this year, reported Lloyd’s List. The NCBFAA is urging the commission to require
The association also called for the creation of an internal clearing house for information relating to the timing and amounts of congestion-related surcharges that would be available to the public on the FMC’s website.
Safmarine Enhances Europe-West African Service
Yang Ming Line Launches New Container Vessel
South Africa: Safmarine MPV, the multi-purpose vessel owner and operator offering liner services to Western Africa, announced that it has enhanced its Europe-West Africa service with the launch of ENERGY, a new dedicated shipping service that will provide the oil and gas industry with routes into West Africa.
Taiwan: YM Essence, a 4,662 TEU full-container vessel built for Yang Ming by CSBC CORP, TAIWAN, was delivered and named at a ceremony held at CSBC Kaohsiung Shipyard.
Jorg Knuttel, Managing Director of Safmarine MPV stated that the launch of the new ENERGY service and the merger of the company’s two existing ACE and OPEX services to create the INDUSTRY service, represent a ‘significant milestone’ for the multipurpose shipping line. “Since becoming an independent and separate business unit within the Maersk Group a year ago, our goal has been to build a strong foundation for Safmarine MPV and to establish a product portfolio that allows us to better serve our growing customer base in the oil and gas and multipurpose markets,” said Knuttel. Safmarine’s Line Director, Jean-Marc Thiebaut added that the ENERGY service was well received at the Breakbulk Europe exhibition in Antwerp. The new service has an 18-day frequency and will make direct calls at Aberdeen, Antwerp and Portugal, before calling at the Nigerian port of Onne and Luanda, Sonils, Soyo and Lobito in Angola.
The ceremony was presided over by Dr Frank Lu, Chairman of Yang Ming Marine Transport Corp, and Robert Lai, Chairperson of CSBC CORP, TAIWAN. Chiou Li-Ching, wife of the Chairman of Cheng Shin Tire Co Ltd, was invited to sponsor the new ship. YM Essence is the second of five 4,662 TEU fullcontainer vessels built for Yang Ming by CSBC CORP. This type of vessel is eco-friendly. The new ship is 259 meters in length, 37.3 meters in width, with 400 reefer plugs and a draft of 12.8 meters. The vessel can cruise at a speed up to 22.9 knots. Yang Ming not only works on environmental protection but also keeps on lowering the average age of its ships. The new generation ships incur lower operational costs and consume energy more efficiently. Database shows that Yang Ming’s generation of CO 2 per TEU per kilometer decreased by 34.6 per cent in six years from 2008 to 2013. YM Essence is to be deployed in the CGX Service (China–Gulf express). Her ports of call are in this order: Shanghai - Ningbo - Kaohsiung - XiamenShekou -Port Kelang - Jebel Ali - Dammam - Port Kelang - Singapore - Kaohsiung - Shanghai.
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[NEWS: FOREIGN]
ZIM HAMBURG Reinforces Israel Express via Hamburg Israel: The North Europe Service 1 (NE-1) run by shipowners ZIM Integrated Shipping Services and MSC Mediterranean Shipping Company is the most important liner service linking Hamburg weekly with Israel via the Mediterranean. Transport volumes have grown continuously since 2007, in all by around 21 per cent. ZIM had already extended and restructured the NE 1 service at the beginning of 2013 in reaction to rising quantities and market requirements. Being deployed
Hamburg Sud Increases its Vessel Portfolio Germany: Hamburg Sud Liner Services, the Germanion conventional shipping company & global leading transport logistics organisation is to take delivery of the ninth of 12 high reefer 9,814 TEU, the Cap San Sounio, built by Hyundai Heavy Industries (HHI) assigned to the multicarrier Far East-ECSA (SEAS 2/ASAX 2/ASAS 2/NGX 2). The vessel is the third of four chartered units with nine of the others owned by Greek company Enesel to join the service jointly operated by Maersk, CMA CGM, Hamburg Sud, CNNI, CSCL and Hanjin with Hapag-Lloyd and CSAV co-loading. The Cap San series of same size vessels are the biggest ships bought by Hamburg Sud with 2,100 reefer plugs allowing sufficient space of 110,000 cubic metres of refrigerated cargo. The German carrier financed the remaining four vessels on order to Greek Company Enesel SA (NS Lemos) through a longterm charter with the German carrier are due second half 2014.
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for the first time in the liner service from July onwards, the ZIM HAMBURG will provide greater transport capacities and a larger number of reefer container connections. The vessel is replacing a smaller one previously operating on this service. The ZIM HAMBURG has a slot capacity of 6,350 TEU, including 500 for reefer containers. The ship was built in Japan, being delivered in May, 2009, and is 293 metres long, with a beam of 40 metres and a draft fully laden of 14 metres.
MOL, Evergreen Switch Port Calls on Vietnam-USEC Service Japan: MOL and Evergreen are changing the port rotation for their joint South China-Vietnam Express (SVS/AUE) service that connects Asia to the US east coast via the Suez Canal. The changes involve shifting back the Cai Mep call in Vietnam and removing wayport calls at Algeciras, reported Alphaliner. The call at Cai Mep, currently occurring on the return leg to the Pearl River delta, will be shifted after the two Pearl River calls, shaving five to seven days off the Cai Mep to US east coast transit time. The service will then offer the fastest connection from Vietnam to the US east coast. The service turns in 11 weeks with 11 ships of 6,300-7,000 TEU, ten of which are provided by MOL and one by Evergreen. APL, Hapag-Lloyd, HMM and NYK Line take slots on this service within the framework of the G6 container shipping alliance.
MSC Increases Fleet Portfolio Switzerland: The Mediterranean Shipping Co (MSC) has taken in its largest ship, MSC London, the first in a series of six 15,908 TEU vessels to be built at Koreaâ&#x20AC;&#x2122;s STX Shipyard on charter from Zodiac Maritime and Eastern Pacific Shipping (EPS). Currently, the shipping line has 26 vessels in its fleet, ranging in size from 13,798 TEU to 14,000 TEU, reported the source. The six larger vessels were initially ordered in October 2010 by Zodiac Maritime as 13,000 TEU ships, but the contract was upgraded one year later to ships of 15,908 TEU. They are the first box ships of this size to be built there. MSC London is joining the Asia-Eastern Mediterranean Tiger service, where she will break capacity records at the Ports of Istanbul and Piraeus.
| June - July 2014 8/1/2014 5:48:01 PM
[NEWS: FOREIGN]
Port of Antwerp Streamlines Procedure for Dangerous Goods Belgium: The new release of the Antwerp Port Information and Control System 2 (APICS2) not only simplifies the procedure but also affords a higher quality of declarations. An extra bonus is the reduction in the administrative costs. Good IT support is essential to assure smooth, efficient flow movement of goods in the port. With the new APICS2 module introduced, Antwerp Port Authority offers improved facilities for declaring dangerous goods. First and foremost, the new module simplifies the declaration procedure, with electronic notification of arrival and departure of the goods on the quay replacing the obligatory supplementary declaration. It also improves the quality of the declarations and of the safety accounting, thanks to greater automation of the exchange of information. This in turn leads to a considerable reduction in the administrative costs for declarants.
Refurbished Seajacks Vessels Leave Shipdock Amsterdam The Netherlands: ‘Seajacks Leviathan’ and ‘Seajacks Kraken’ are prepared for their coming assignments, following a series of repair and renewal jobs by Shipdock Amsterdam. The shipyard, part of Damen Shiprepair & Conversion, had been commissioned for the two jack-ups by Seajacks UK Ltd. The Great Yarmouth (United Kingdom) based company has assigned the shipyard various and different major and minor adjustments on the two jack-up sister vessels in between North Sea offshore windfarm and oil & gas installation contracts. ‘Seajacks Leviathan’ first had its blade racks cut loose and removed after completion of a wind turbine and propeller blade operation. Subsequently, the self-propelled jack-up had a heli deck installed in Shipdock’s 250 metre Panamax dock. This included all related drain and fire fighting piping. The heli deck had been prefabricated by Niron Staal, which too is a subsidiary of the Damen Shiprepair & Conversion division and is located on the shipyard’s premises in Amsterdam. In addition, below deck reinforcements were installed to support the heavier mounts in view of future replacement of the lifeboat davits. Shipdock Amsterdam’s major work on ‘Seajacks Kraken’ involved the replacement of the vessel’s two entire lifeboat davit sets. This included installing Niron Staal prefabricated foundations and the four new davits with their powerpack, cable, winch, electricity and hydraulic systems. This was finished off by surveyor-assessed test runs and loads test. Furthermore, the Kraken’s four legs were restored after an initial joint inspection round with the principal’s inspectors. Repairs involved S690 grade steel. In addition to crane tests and crane hook certification update surveys, both Seajacks jack-up vessels underwent miscellaneous minor steel work and had four new satellite dome platforms installed.
China Eyes Greek Gateway to Invest in Europe China: Greece and China have reiterated a pledge to strengthen their ‘strategic partnership’ on the economic fronts. This emerged during a meeting between Greek Prime minister, Antonis Samaras and Chinese President Xi Jinping on the Aegean island of Rhodes, recently. “The Chinese side will continue to support Greece on sovereign debt issues and efforts to promote economic recovery,” said the Chinese President. During a stopover on his way to the BRICS summit in Brazil, President Xi added: “China is ready to share its development opportunities with Greece and further enhance the bilateral comprehensive strategic partnership.”
NYK Increases Sailings from Jaxport to Asia Japan: NYK Line is expanding its roll-on/roll-off service to and from Jacksonville (Jaxport) by increasing sailings to three per month, including connections to Asia from June. This enhances the Japanese shipping line’s existing ro/ro service to the Middle East. “We are pleased to further grow our partnership with NYK RoRo and provide more options to the industry,” said Roy Schleicher, Chief Commercial Officer, NYK Lines. The newly expanded service offers connections to Thailand, Malaysia, Indonesia, Philippines, Vietnam, Hong Kong, Japan and Australia, as well China and Taiwan via Japan.
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[MARINE TECH]
New PORTS Real-Time Data System Officially Dedicated
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OAA, the Jacksonville Marine Transportation Exchange, and the Jacksonville Port Authority have officially dedicated a new information system which will increase safety for ships using the St. Johns River. The system, called Physical Oceanographic Real-Time System (PORTS), provides real-time information on water levels, currents, meteorological conditions, and under-bridge clearance, giving users critical information when traveling through the river. The St. Johns River in Jacksonville will become the 23rd location to use the system and is the second largest PORTS ever established.
PORTS provides real-time information on water levels, currents, meteorological conditions, and under-bridge clearance, giving users critical information when traveling through the river.
Tailored to the specific requirements of each seaport, PORTS is a decision support tool that improves the safety and efficiency of maritime commerce and enhances coastal resilience and natural resource management through the integration of real-time environmental observations, forecasts and other geospatial information. In addition to providing useful information for maritime transportation and coastal resilience, the use of the water temperature and tidal data can be used by the fishing industry to improve catch, while recreational boating excursions can occur more often and be safer through better real-time information available through PORTS.
Giant Vessel to Change Offshore Decommissioning Game: Analyst
The new Allseas vessel, ‘Pieter Schelte’, is able to replace the previous slower method of removing topsides piece by piece with one lift.
T
he new Allseas vessel, ‘Pieter Schelte’, is able to replace the previous slower method of removing topsides piece by piece with one lift, meaning a decommissioning job could be done in a fraction of the time, say analysts Douglas-Westwood in their latest ‘DW Monday’ report. With Pieter Schelte, the figures alone are impressive. 382 m long, 124 m wide and with a slot width of 59 m it can remove topsides up to 48,000 tonnes in a single lift, potentially revolutionizing large decommissioning projects. The vessel has already won a number of contracts with removing three platforms from the Brent field up first. Along with this, the versatile vessel will be laying 890 km of trunkline for the South Stream project. In the latest edition of its ‘Subsea Vessel Report’ Douglas-Westwood forecasts that USD 9.75 billion is to be spent installing pipelines globally between 2015 and 2017, demonstrating that the potential is there for significantly more work in both applications in the coming years.
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| June - July 2014 8/1/2014 5:50:33 PM
[MARINE TECH]
Industry’s First Color Fishfinder by Lowrance The new Elite-3x includes a dual-frequency 83/200 kHz Broadband SounderTM transducer and features an LED-backlit display with detailed 240x360-pixel resolution.
L
owrance, a world-leading brand in marine electronics since 1957 — has announced the newest additions to its Elite family of fishfinder and chartplotter products, the Elite-3x and Elite-3x All Season pack. The most affordable color fishfinder ever introduced, the new Elite-3x includes a dual-frequency 83/200 kHz Broadband SounderTM transducer and features an LED-backlit display with detailed 240x360-pixel resolution that’s easy to see in full sunlight from wide viewing angles. Equipped with award-winning Lowrance Broadband Sounder technology, the Elite-3x allows anglers to quickly and easily identify fish targets, bottom contour, structure detail, bottom hardness, thermoclines and more. Offering selectable dual-frequency operation to maximize the view beneath a boat, 83 kHz sonar provides up to 60 degrees of conical coverage, which is ideal for displaying large fish arches and searching large areas, while 200 kHz sonar provides up to 20 degrees of coverage for enhanced fish-target separation and lure-tracking — ideal for vertical presentations. The Lowrance Skimmer® transducer, included with the Elite-3x, can track bottom at speeds up to 75mph, and it features a builtin water temperature sensor.
Oceanworks to Supply Submarine Rescue Epuipment to Turkey
O
ceanworks International says it is providing three Submarine Emergency Ventilation and Decompression Systems (SEVDS) consisting of Hose, LARS and control systems to Istanbul Shipyard for installation on the three specialist vessels they are building for the Turkish Navy. The delivery of the SEVDS is slated for late 2014. The primary role of the SEVDS is to provide fresh breathing air to survivors of a disabled submarine while extracting the CO 2 generated by those survivors. The system is also capable of providing controlled decompression of the submarine.
The primary role of the SEVDS is to provide fresh breathing air to survivors of a disabled submarine while extracting the CO2 generated by those survivors.
OceanWorks has extensive experience in submarine rescue and intervention, including the supply and design of Submarine Emergency Ventilation & Decompression Systems (SEVDS). The system to be provided by OceanWorks has the notable advantage of being the deepest rated system ever built.
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[MARINE TECH]
SeaBotix vLBV in Air-Deployed MCM Exercise The SeaBotix vLBV300 ROV was recently part of a MCM test exercise put on by Explosive Ordnance Disposal Training and Evaluation Unit One (EODTEU ONE) in San Diego. Two small combat rubber raiding craft (CRRC) containing the vLBV and an AUV were launched from a C-130 Aircraft via parachute to the ocean off Southern California and followed by a contingent of US Navy EOD technicians. It is estimated the equipment hit the surface of the ocean at up to 6 m (approximately 20 ft) per second in the partially-inflated CRRCs. The team then readied the gear and deployed the AUV to scan for any targets.
The SeaBotix vLBV300 enables high risk underwater operations by reducing diving hazards to personnel, mission time, and number of team members required to complete operations.
The SeaBotix vLBV300 enables high risk underwater operations by reducing diving hazards to personnel, mission time, and number of team members required to complete operations. One participant contacted a SeaBotix representative after the exercise to thank them for making ‘extremely rugged equipment’.
Sunken WW II Ship Oil Leak Plugged
A
tlantic Coast Marine Group, Inc (ACMG) successfully responds to World War II era motor tanker leaking massive cargo of oil into the Atlantic Ocean’s waters.
Motor tanker WE Hutton was underway in 1942 from Texas to Pennsylvania with a cargo of 65,000 barrels of oil when it was sunk by a German U-Boat, taking 13 lives.
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Beaufort, North Carolina-based Atlantic Coast Marine Group, Inc (ACMG), a marine salvage, emergency towing and environmental services provider, was recently contracted to provide an initial survey and fast response pollution mitigation to a World War II era vessel believed to be the SS WE Hutton. As ACMG explained, motor tanker WE Hutton was underway in 1942 from Texas to Pennsylvania with a cargo of 65,000 barrels of oil when it was sunk by a German U-Boat, taking 13 lives and remaining a watery grave for the past many years until an oil sheen was recently noticed on the waters near its location off the NC coast. Working at the behest of the United States Coast Guard, ACMG’s environmental services unit promptly responded with multiple dive teams and assessed the scope and quantity of the leaking oil. ACMG thereafter developed and implemented a pollution containment and mitigation plan which stopped the flow of oil without compromising the m/t WE Hutton’s cargo spaces.
| June - July 2014 8/1/2014 5:50:35 PM
[MARINE TECH]
Rowe Adds New DVL to its SeaPILOT Line The SeaPILOT OC is the result of collaboration with several small ROV manufacturers to provide a compact, high performance DVL, designed for observation class ROVs.
R
owe Technologies expands SeaPILOT product line for Observation Class ROVs. Rowe Technologies, Inc announced the launch of a new Doppler Velocity Log (DVL) for the SeaPILOT product line. The SeaPILOT OC (Observation Class) is the result of collaboration with several small ROV manufacturers to provide a compact, high performance DVL, designed specifically for observation/inspection class ROVs. The OC is small (5” [127mm] wide x 6” [152mm] tall and 8” [203mm], lightweight (~1 lb [0.45 Kg] in water), is rated for 300m operating depths, and is available in 1,200KHz and 600KHz operating frequencies. To ease integration, the OC supports several input and output data formats and is compatible with a number of third-party control and navigation software packages.
HMAS Bundaberg’s Anchor near Ashmore Island Recovered
P
ersonnel in the coastal mine hunter HMAS Yarra have used their diving expertise to recover an anchor and shackles weighing one tonne from the seabed near Ashmore Island. The anchor, belonging to Armidale class patrol boat HMAS Bundaberg, was cut lose when it firmly wedged beneath a large boulder and the sea floor during a recent patrol for Operation RESOLUTE – the Australian Defence Force’s contribution to the whole-of-government effort to protect Australia’s borders and offshore maritime interests.
HMAS Yarra have used their diving expertise to recover an anchor and shackles weighing one tonne from the seabed near Ashmore Island.
Commanding Officer of Yarra, Lieutenant Commander Brendan O’Hara said the initial reconnaissance dive took approximately one hour. “Before leaving the area, Bundaberg marked the location of the anchor using an orange pimple buoy,” he said.
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[BOOK REVIEW]
Port Infrastructure Finance [Hardcover] Editors : Pages : Price : Publisher :
Hilde Meersman, Eddy Van de Voorde & Thierry Vanelslander 299 USD 250.40 Informa Law from Routledge Book Description: This book provides an expert analysis of alternative investments routes and the investment strategies available to the major port players, and is a much-needed guide to expanding the investor base for private debt funding of projects from loan providers to bond investors.This book provides expert insight into areas of port infrastructure finance across the main regions of Europe, Asia, Africa and the USA. Topics include how to estimate future demand by way of forecasting; Public-Private Partnerships; corporatisation; the pricing mechanisms for syndicated loans; European port privatisation; finance strategies for ports in Asia, the USA and Africa; and a discussion of the investment strategies available to the major port players.
Dredging in Coastal Waters (Balkema: Proceedings and Monographs in Engineering, Water and Earth Sciences) [Hardcover] Author : Pages : Price : Publisher :
D Eisma 258 USD 185.51 Taylor & Francis
Book Description: The varied use of dredgers has led to the development of a variety of dredger types, from small ones appropriate to modest inshore projects, to very large sea-going dredgers for large-scale projects calling for the storage of dredged material within the ship. This book contains chapters on dredging operations in the Netherlands, Belgium, the UK, Spain, the US, China and Singapore. Additional chapters discuss more general aspects such as dredging techniques, monitoring of dredging operations, and the prospects of dredging in a changing environment. As well as providing information on dredging activities in different areas, it gives an insight into the activities and problems (environmental or other) involved in modern dredging. It will be of interest to professionals and students alike.
Economics of Shipping Practice and Management [Paperback] Author : Pages : Price : Publisher :
A E Branch 256 USD 82.96 Springers Book Description: The subject of this book is treated in a practical way, providing the reader with an overall understanding of the economics of shipping practice. The increasingly important role of management is given more emphasis, especially in the area of budgets, finance, personnel and marketing. The book should appeal to college and university students preparing for shipping, export, international trade and transport examinations, and to practising managers. Its practical approach, explanations and comprehensive coverage make it particularly appropriate for shipping personnel wanting to broaden their horizons through self-study.
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RNI No.: MAHENG/2008/29159 Date of Publication: 1st of every alternate month.
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