India's Shipping Sector

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Postby Vipul » 12 Feb 2008 20:21

.Pipapav Shipyard bags Rs 2050-cr order for 26 panamax carriers.

Domestic shipbuilding and offshore fabrication major Pipapav Shipyard today said it has bagged an order for building 26 Panamax Bulk Carriers worth about Rs 2,050 crore.

The 26 ships on Pipavav Shipyards order book are all of the same design and total almost two million tonnes, giving it the largest orderbook in India. This order placed Pipavav Shipyard at number two in the world for panamax carriers ahead of Japan and China, the company said in a statement.

The company performed a steel-cutting ceremony yesterday prior to commencing the project. With a capacity of 74,500 tonnes, the Panamax carriers are the largest ships being built in India, it said and added the delivery of these vessels is likely to begin from next year.

Pipavav Shipyard will also set up ship-repair facilities to take advantage of the lack of high-quality repair yards between the Gulf and Singapore besides seeking to enter the naval and ship repair sector to cater to the burgeoning needs of the Indian Navy, the statement added.

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Postby Gaurav_S » 14 Feb 2008 09:13

L&T bags Rs 1,443-cr Dutch order

[quote]AHMEDABAD: High-Tech specialised cargo vessels with the ‘made-in-India’ tag will soon set sail as L&T will hand over the first of eight high-tech heavy lift vessels. L&T is manufacturing the vessels for a Netherlands-based firm at its Hazira shipbuilding yard in Surat. The order, worth e250 (Rs 1,443 crore), placed by the Netherlands-based Rollerdock to the Mumbai-based engineering giant, is one of the biggest in the Indian shipbuilding sector.

“The first of the heavy lift vessels will be delivered to the Netherlands company in April this year. This is a very specialised vessel (RORO) and is of 8,300 tonnage each. It can take extremely heavy cargo by truck or lift,â€

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Postby Vipul » 20 Feb 2008 01:12

Sterling group acquires Norwegian conglomerate's shipping business for $300 Million.

From another news report in Economic Times:

JBUS is a Norway-headquartered shipping company with a fleet of 40 owned and long-time chartered vessels with an aggregate capacity of approximately 2 million deadweight tonnage (DWT). The company’s fleet consists of a mix of tankers and chemical and bulk carriers. The fleet has an average life of approximately four years. It is also acquiring new vessels which will be delivered in phases over the next three years. The company’s main operations are centered in Oslo, Norway and Singapore.

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Postby Vipul » 21 Mar 2008 00:06

L&T to start work on its integrated shipyard soon.

Larsen & Toubro hopes to shortly begin work on the integrated shipbuilding yard and port at Ennore, north of Chennai, according to company officials.

Its proposal for this project got the Tamil Nadu Government’s approval in January 2008, and the company is now discussing the agreement it will sign with the Government for the project.

The project’s cost has been estimated at Rs 3,060 crore with the equity component being put at Rs 1,100 crore. The Tamil Nadu Industrial Development Corporation, a State Government industrial promotion agency, will hold a 3 per cent equity stake in the venture.

The process of earmarking the 1,200 acres of land for the project is on and once that is finished construction work will start, according to the sources. The project is expected to take 24 months for completion.

L&T plans to build large-sized ships, including very large crude carriers (250,000 tonnes and more) at the shipbuilding yard. It is expected that the company will also make vessels for defence purposes.

With the Tamil Nadu Government deciding to allot the land for the project at market rate, the cost of the land alone will be about Rs 250 crore, according to reliable sources. L&T also plans to develop a high-class component base near the shipbuilding yard, as the ship building activity picks up.

L&T had initially proposed only a shipyard but decided to go in for an integrated port because of the cost and the breakwater construction work involved. The cost could then be shared between the port and the shipyard.

The company has a ship building facility at Hazira in Gujarat and was looking to construct a greenfield facility since it could not expand at Hazira and also because the ship building business was booming.

The Tamil Nadu Government announced in August 2007 a minor ports policy, which was meant to facilitate the integrated ship building yard-cum-port project. Under the policy, the Government said captive ports could handle commercial cargo, thereby improving the economic viability of such a project.

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Postby Sanjay M » 06 Apr 2008 23:14

I love these pictures of Indians building huge things:

L&T wins $240 mn for building four ships

Image

ABG to set up 3rd shipyard in Gujarat; to raise $200 mn

Image

Larsen & Toubro: BUY
This business, together with shipbuilding, is likely to attain critical mass over the next 3 years and drive revenues.

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Postby Sanjay M » 07 Apr 2008 01:08


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Postby Sanjay M » 07 Apr 2008 02:11


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Postby Vipul » 07 Apr 2008 20:15


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Postby Sanjay M » 11 Apr 2008 07:38

Why is India buying large military ships from the US -- especially when they come with strings attached over military use -- when it could instead build its own large ships, from its growing number of shipyards? This would at least provide local employment, and help to increase local shipbuilding experience, in addition to saving costs and foreign currency.

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Nagapattinam port nearing completion

Postby Kalantak » 13 Apr 2008 21:46

Nagapattinam port nearing completion
http://www.hindu.com/2008/04/13/stories ... 970100.htm

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Postby Sanjay M » 16 Apr 2008 09:06

[quote]Defence shipyards: Designing for the world
INDIAN NAVY: GLOBAL & LOCAL - II
Ajai Shukla / New Delhi April 16, 2008
For decades, India’s three defence shipyards combined the inefficiency of the public sector with the indecisiveness of the Ministry of Defence (MoD).

In Marxist Kolkata, Garden Reach Shipbuilders and Engineers (GRSE) also blended in militant trade unionism to ensure that the warships it was asked to build were invariably delayed.

That’s history. Today, with the MoD loosening its hold over its shipyards, GRSE buzzes with a capitalist energy never seen before in the 124-year history of that shipyard.

Business Standard has learned that GRSE is at an advanced stage of negotiations with French shipbuilding giant, DCNS (Direction des Constructions Navales Services), for jointly setting up a cutting edge design centre for warships and merchant ships. This will target both the Indian and the global markets.

GRSE’s Chairman and Managing Director, Rear Admiral TS Ganeshan emphasises that negotiations are still underway, and that the GRSE board must clear the JV before any announcements can be made. But he is upbeat about the potential for the JV to handle design work outsourced from Europe and the US.

Admiral Ganeshan says, “The design centre is being set up with versatile, broad spectrum capabilities so that it can design warships as well as merchant ships. We also expect work from foreign shipyards, which find that the cost of their design manpower is too high. They may get the designs done from Kolkata… and then build the ships in their countries. Our foreign partner will, I hope, bring his work here, get it done and take it back.â€

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Postby Vipul » 21 Apr 2008 05:42

ADAG charts $1.2 bn foray into shipping.

The Anil Dhirubhai Ambani Group (ADAG) group has set its sights on the shipping sector. Having secured coal mines in Indonesia, group company Reliance Power is now planning to float a shipping subsidiary to cart the coal to India. It is looking at an investment of around $1.2 billion initially.

Reliance Power has won the rights to build and operate two ultra-mega power projects, one in Krishnapatnam in Andhra Pradesh and another one at Shahapur in Haryana, in the past six months.

For Reliance Power, this will be a backward integration move, as it will help the company in transportation of coal, the fuel for the two power projects.

The proposed shipping company will have an assured business of around 20 million tonne annually in the initial stage, which is equivalent to the coal required for Reliance Power’s Krishnapatnam and Shahapur plants.

Reliance Power has drawn up an ambitious strategy for its shipping business in the next three years. It plans to have a fleet size of almost 12 vessels, including five Capesize carriers, the largest ships in the world.

The company has also appointed international brokers like Clarkson to work out finer details, and the final orders are expected to be placed in about two months. Shipping yards in China, Japan and Korea are to be tapped for ship building.

Reliance Power plans to have four to five capesize vessels, having capacities of between 160,000 tonne and 200,000 tonne, and around five Panamax ships. As of now, GE Shipping is the only Indian company to own capesize vessels, which require a draft (depth) of almost 18 metres.

However, most Indian ports are at a disadvantage as they do not have the required depth. The upcoming Krishnapatnam port, which will be used for coal imports for Reliance’s ultra-mega power project, will be developed to cater to such ships.

The acquisition of a fleet of ships will help Reliance Power in its vertical integration as an energy major. Most global energy majors have taken up shipping as one of the key business verticals, as it helps them cut transportation costs.

This backward integration move by Reliance Power, too, will have a similar impact, the sources said. The company hopes to optimise its freight costs by managing transportation on its own. While ships plying from Indonesia will import coal, they will carry goods for the overseas markets on their way back.

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Postby Neshant » 21 Apr 2008 05:49

wonder why we need to go all the way to indonesia to get coal when India has fairly large reserves.

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Postby Rupak » 21 Apr 2008 08:07

Neshant
Indonesian coal is of higher quality. With transportation costs what they are, ash content in Indian coal is quite expensive when measured against the cost of transportation and recoverable energy.

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Postby Vipul » 24 Apr 2008 19:51

ABG Shipyard will build sub-sea vessels.

In a move that will add to its offshore vessel building expertise and give it an edge over competition, ABG Shipyard, the country’s largest private sector shipyard, is looking at building sub-sea vessels, which can be employed underwater for exploration and production (E&P) activities.

The shipyard is currently in talks with a Middle East company for strategic technology tie-up, and as a packaged deal, it is also looking to secure contracts for the vessels, a source said.

The deal is expected to be finalised early next month, he added.

Sub-sea vessels are employed for offshore construction, inspection, repairs and maintenance of new and existing oil and gas fields, below the ocean floors.

ABG had built an undersea construction vessel, CCC Pioneer, for a Greek firm about five years back.

“With E&P spend increasing, the strategy to enter sub-sea vessels would work well for ABG and it would be going one step ahead of their offshore vessels expertise,â€

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Re: India's Shipping Sector

Postby Vipul » 25 Jun 2008 19:41

Jindal Saw plans ship-building hub in Gujarat.

In a major diversification drive, Jindal Saw (JSL), part of the $10-billion OP Jindal Group plans to set up the country’s first ship-building and repair hub in Gujarat with an investment of over $2 billion.

The hub will be a part of the proposed India Maritime Technology Park, being developed by the company and would cater to the requirements of both domestic and overseas customers. It would also produce various equipment for ships, shipyards, and ports and terminals in association with overseas partners.

This initiative would be undertaken by a newly set up company Jindal Shipyards that is part of infrastructure holding arm of JSL, Jindal Infrastructure Transportation and Fabrication (JITF). The first vessel from the facility is expected to roll out in the last quarter of 2010. The company has already roped in CSE Dastec, part of China’s largest ship building organisation CSE for design and production process support. China’s leading shipyard design institute NRDI has provided the masterplan for IMTP.

“We want to become a complete integrated logistics solution provider which not only offers services but also possesses assets enabling a better delivery. In this regard, a ship-building facility is being considered at our proposed IMTP near Dahej in Gujarat. While this would be a commercial facility for customers outside the JSL, it would also support the group’s waterway activities under which six vessels are already offering their services to customers,” JSL managing director Indresh Batra told the media.

As per the plan, the facility would be developed in three phases. The first phase would involve an investment of about Rs 2,000 crore and creation of facilities to build 15 vessels of 15,000 tonne capacity and 10 vessels of 5,000 tonne capacity.
Panamax vessels (85,000 tonnes) would be made at the facility in the third phase. The entire activity is expected to be completed in seven years’ time.

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Re: India's Shipping Sector

Postby Ananth » 09 Jul 2008 02:14

Pipavav Shipyard plans to hire Japanese professionals

It roped in Mr Mikito Shirai, a national of Japan, as Head of Planning and Production Engineering. He was a senior engineer at IHI, one of Japan’s largest shipbuilding companies. There are four senior Japanese managers as well.

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Re: India's Shipping Sector

Postby Suraj » 09 Jul 2008 02:39

IHI = Ishikawajima Harima Industries

Big shot in the Japanese heavy industry scene, dating back to the late 1800s, an important wartime manufacturer, and amongst the heavy industry biggies from Japan along with Mitsubishi Heavy Industries, Kawasaki, Fuji and a few others. IHI also partnered in the creation of Singapore's Jurong Shipyard. Hopefully the individuals will significantly enhance Pipavav's technical capabilities.


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Re: India's Shipping Sector

Postby Ananth » 17 Jul 2008 21:17

Well this news is a surprise: India's largest private sector port opens. I was under the impression that Mundra in Gujarat and the NAvi Mumbai port being set up by RIL would be the largest private sector ports. Krishnapatnam was totally under the radar. Some good news for ports on eastern seaboard. And competition to Vizag and Chennai ports.

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Re: India's Shipping Sector

Postby Vipul » 18 Jul 2008 19:47

What is heartening is the speed of execution.The First phase was operational within 17 Months!!!!
PSU Ports would not have been able to do this in a million years.

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Re: India's Shipping Sector

Postby SaraLax » 29 Jul 2008 13:33

Operations at Gangavaram port may begin in Aug

After Krishnapatnam port, it is the turn of the Gangavaram port near Visakhapatnam to begin commercial operations. The phase-1 of the project would go on stream with five berths with an annual capacity of 35 millon tonnes . Of the five berths, three would be handling general cargo and one each for iron ore and coal.

This would be the second port after Krishnapatnam that could handle mother ships, giving a boost to the East Coast’s shipping strengths. The greenfield Gangavaram port was to start commercial operations well ahead of Krishnapatnam port.

The multi-purpose port that could handle ships of two lakh dwt (dead weight tonnes) is being taken up in a public-private partnership mode. While Mr D.V.S. Raju (who founded VisualSoft) and others held 64 per cent, Warberg Pincus, the global private equity investment firm had 25 per cent, the Andhra Pradesh Government picked 11 per cent, a senior Government official told Business Line. The Rs 2,600-crore phase-2, work for which work had begun simultaneously, would have nine berths more, giving the port a capacity of 75 mt.
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Re: India's Shipping Sector

Postby jahaju » 31 Jul 2008 00:11

CCEA clears acquisition of 4 Panamax Bulk Carriers by the SCI

link


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Re: India's Shipping Sector

Postby Vipul » 28 Aug 2008 19:39

Reliance’s Rewas port project ‘lands’ in trouble .

Reliance Industries’ Rs 5,000-crore Rewas Port project, which is expected to give the vital sea-link to its proposed mega Mumbai SEZ, is yet to kick off, as the company is still waiting to get possession of the land allocated by the Maharashtra Government. As of now, the first phase of the project, which was scheduled for completion by 2010, is likely to be delayed by more than a year, while the cost over-run may exceed Rs 1,000 crore.

In what is yet another instance of a mega project landing into problems due to land-related issue, Reliance is neither able to float tenders for the massive dredging work required nor conclude talks with financial institutions to tie up the funds.
Rewas Port, which is 65 per cent owned by various investment companies of Reliance Industries, 24 per cent by Amma Lines and 11 per cent by Maharashtra Maritime Board, is building an all-weather deep draught port, 10 kmsouth of Jawaharlal Nehru Port.

The project is crucial for Reliance, as its SEZ project is linked to the proposed port. Incidentally, the SEZ project itself has hit a roadblock due to land related hurdles. An official with the Maharashtra Maritime Board confirmed that the land notified for the project by the State Government is yet to be transferred to the port company. The project is being developed in three phases. The first phase, costing about Rs 5,114 crore, involves 10 berths with a capacity of 55 million tonnes. After the completion of the three phases, the port will have 70 berths with a capacity to handle 457 million tonnes.

RIL has been ready to float tenders for what is said to be India’s largest dredging project, but is unable to take the first step as it has not yet got the 1,000 hectares of land required for development in its pocession. The land has already been notified, but is yet to be transferred to the port company. “As it is a location-specific project, Reliance cannot even think of pulling out of Rewas, as the Tatas have threatened over Singur,” said an official associated with the project.

According to the original schedule, the bidding process for the dredging work was to have been completed by 2007-end so that the successful bidder could begin the work from January 2008. But, the company is yet to float the global tenders, even though, sources said, Reliance had been in touch with leading international dredging houses to keep them informed of the developments. It is feared that further delay of the dredging project could prompt dredging companies to shift their dredgers elsewhere, as the present dredging market is marked by shortage of dredgers.

The first phase of the project involves dredging of over 120 million cubic metres in the Amba river at Rewas at an estimated cost of Rs 1,800 crore—this is claimed to be even bigger than the Sethusamudram ship channel project. The port will have a draught of 14.5 m to start with, which will be increased to 20 m in a phased manner.

Not only the dredging work, but also Reliance’s bid to tie up funds is held up due to the land issue. A consortium of banks led by ICICI Bank has agreed to lend about Rs 3,400 crore for the first phase of the project, but without the land in the company’s pocession, it cannot conclude any such finance deals.

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Re: India's Shipping Sector

Postby hnair » 05 Oct 2008 05:34

A rather good article about the huge port coming up in the outskirts of Trivandrum (about 15 km from city center). Talks rather candidly about how we were bleeding money on transhipment duties to Colombo. Also goes into its importance with respect to Sethusamudram as well as the other ports of India.

Am rather pleased with all this action happening around the old spot (5 kms from the beaches of Kovalam). Heard some reports about MoD requesting berthing and bunkering facilities for some "big ships" of Indian Navy as a pre-req for their security clearance for the project. That plus the upcoming coast guard airstrip 8)

Kerala port casts shadow over Colombo harbour’s future

By Wilson Gnanadass

Fresh questions are being raised as to whether Colombo harbour which has been acclaimed as one of the best transshipment hubs in the world, could continue to stake that claim with the advent of another major port in Kerala, India. 8)
If Sri Lanka’s pride has been the port of Colombo, for its efficient and effective operation as a transshipment hub, doubts have now been cast. Soon the Colombo harbour may lose its splendor due to the emergence of other ports in the region.
It is not known how much and to what extent the Sri Lanka Ports Authority (SLPA) has taken this threat seriously. However, the SLPA, it is learnt has opted to face the challenge.




Hidden threat
The SLPA cannot be blind to the hidden threat posed by the fast emerging Vizhinjam port in Kerala, which is set to directly compete with the Colombo port also by the year 2012.
Wide publicity has already been given to the Vizhinjam port in the Indian newspapers and the websites.
Vizhinjam, a sleepy fishing village on the western Kerala coast of India, will soon become an important cog in the country’s transshipment business.

The Vizhinjam port project which failed to obtain approval for nearly two decades, has finally been given sanction by the central government of India, according to Indian State Ports Minister M. Vijayakumar.
The port according to the available information in different websites, will fulfill the need of providing transshipment on the Indian coast, as at present there is no existing Container Transshipment Terminal in India to cater to this need.
Annual container traffic close to four million TEUs is currently originating or destined to India through sea route with CAGR (Compound Annual Growth Rate) of 14% during the last decade.


About Vizhinjam port
Vizhinjam is an all - weather port and the international shipping line is just 10 nautical mile off its coast.
The Vizhinjam Port is clearly positioning itself to become Colombo’s direct competitor.
The Port’s official website says that, “Vizhinjam has more advantages compared to the Colombo port, and if developed can harbour even Panamax class and futuristic vessels. It also satisfies the physical and hydrographical parameters of modern seaports.”

The Port’s unique selling point is a natural depth of 24 meters which the Indian government claims is by far the best compared to other ports in the world - even those of New York, Southampton, Singapore, Dubai, Colombo, Hong Kong whose depth is only 15 meters.
The proposed Vizhinjam port, which is being marketed as a Green-field project, away from urban/city limit was originally just a fishing village and had to be developed completely from scratch.

The only claim to shipping, this village which lies 15 kms from Thiruvananthapuram and two kms South of Kovalam has, is its historic origins as the capital of Ayvel Kings of the 8th and 9th century.
The new Port, according to the available information from different websites has all the ingredients to turn out as an efficient, modern and highly productive one, and India is inviting international players with experience in developing the world’s high capacity modern ports, to submit their proposals.

The Port is also expected to attract a large share of the container transshipment traffic which is now being diverted to Colombo, Singapore and Dubai. It can also ensure the much needed economic development of India as well as open up immense job opportunities.

The proposed deepwater international container transshipment terminal at Vizhinjam is expected to bring down the total costs of movement of containers to and from foreign destinations, according to the Container Shipment Economics Study.
At present, India’s port capacity (12 major Indian ports) is a meagre 4.61 million TEUs/annum compared with China’s capacity of 50 million TEUs, almost 11 times that of India’s.

Vizhinjam Port alone will have the capacity of 4.10 million TEUs/annum. This matter has to be looked at in the light of India not giving up on developing the Sethusamurdram project. The study, carried out by IL&FS Infrastructure Development Corporation and Hauer Associates, has also found that the Sethusamudram project will promote inter-coastal movements of Indian cargo, enhancing the potential of Vizhinjam as a transshipment hub.



Indian gateway ports

On the other hand, the present Indian gateway ports do not attract a sufficient number of mainline vessels due to inadequate facilities and the distance from international shipping routes.
As of now, about 61 per cent of Indian export/import containers are transshipped through the nearby foreign ports of Colombo, Singapore and Salalah (Oman.)

This results in an additional burden of upto $200 per TEU of cargo interests with freight paid by Indian exporters being 11.4 per cent of the c.i.f (cost, insurance, freight) value of goods as against the world average of 6.1 per cent.
With Vizhimjam port draft being 24 ft it will be able to attract the post Panamax container ships.

Plight
With a capacity of four million TEUs per annum, the Vizhinjam port will have the same capacity of the Colombo Port and with a draft far exceeding Colombo’s harbour depth, the chances of Colombo harbour becoming less attractive to mainliners, is a definite possibility. :twisted:

For the Colombo Port this may well mean the end of an era. The monopoly Colombo now enjoys over sea routes in this part of the world might become a thing of the past, come 2012.
Sri Lanka has held sway over this industry for centuries now, because of her strategic location and ideal conditions of Colombo harbour.

The relatively new transshipment business came easily to Sri Lanka due to Indian ports not having the depth and capacity to handle the big ships.
Therefore it has been convenient for India to ship containers on smaller vessels from her southern ports to Colombo, where it is mixed and matched to various destinations in the world.

This makes sense so long as the Colombo Port has capacity to handle the expanding transshipment business (which was about 15 per cent year on year). But here lies the catch – the Port of Colombo is coming to the end of its capacity quite soon. Sometime next year Colombo harbour might hit a dead end when the port reaches saturation point.

Notwithstanding the location of Vizhinjam in the Deep South, cargo interests in the southern, northern and western regions may find it more viable to use the port as a gateway/transshipment terminal instead of Colombo, Singapore or Salalah. This means the hinterland of the port may extend to the western and northern parts of the country.
Once the new port has been constructed, Indian exporters will not have to travel to Dubai or Singapore for transshipment of cargo. It is expected to save Rs 1000 crores in expenditure.

According to IIM Students in Bangalore, with India’s current capacity for handling cargo is nearing saturation, a new port is a necessity, and Vizhinjam can fill that void extremely well.
The students in an article to the Economic Times, India have said that US $ 150 is levied in Colombo for transshipment and US $ 130 in Dubai and Singapore for the same.
They have therefore said that India can not only garner a substantial portion of this fee, but also save a lot of money if her ships break their bulk at Indian ports.

“A single container transshipped from Colombo port to Cochin incurs an expense of US $ 1,200. If it was directly landed at Cochin it would cost only US $ 400. Eight per cent of Indian containers are transshipped at Colombo, Singapore and Dubai and Indian ships account for 60 to 70 % of Colombo’s traffic,” they have said in their article.
Considering the shipping volume for the Asian region, the total transshipment cargo is expected to increase by 80%, 70% and 200 % for Colombo, Singapore and Port Klang respectively.

The IIM students from Bangalore in their article to the Economic Times India have therefore suggested that with proper planning Vizhinjam can expect to corner a significant chunk of the shipping volumes forecast to go to Colombo, along with a part of the volumes heading for Singapore and Klang.

Fears expressed
The fast development of Vizhinjam which is sure to gobble a major portion of the earnings by the SLPA, has raised concerns among most of the feeder shipping agents.
A senior official attached to a feeder shipping agency told The Nation that if proper steps were not taken to develop the Colombo harbour rapidly, then Sri Lanka was in for trouble.

“At its current status, the Colombo port will not be able to provide berth to some of the big ships in the future. This does not mean that we have to panic when ports in India are coming up. But if there is an undue delay in the development of the Colombo port then there can be a problem,” he said.

He said when the ships planned their services, they planned 18 months ahead of their services. He added that if Colombo was not prepared with a product plan, then these ships can easily look elsewhere.
He said the Colombo port has commenced the breakwater project already and added the development of the terminal can take place only ten months after the commencement of the breakwater project.

The top official said that normally the target time frame to complete a terminal was around three years, and added if the work was not completed in the Colombo port by 2012, then larger ships will be calling elsewhere, and the bulk of the transshipment volume could thus get diverted.

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Re: India's Shipping Sector

Postby Vipul » 27 Oct 2008 21:39

Vallarpadam ICTT: Set to make Kochi a key trade hub.

The emergence of Kochi port as a transhipment hub for India will become a reality within a year as the construction work for the first phase of the international container transhipment terminal (ICTT) project is progressing rapidly at Vallarpadam.

Vallarpadam, once developed, will make Kochi a key centre in the shipping world, thereby reducing India’s dependence on foreign ports for transshipment. The ICTT project will be the largest single player among the container terminals planned in India and the first to operate in a SEZ. One of the essential requirements of a hub port is that it should be adjacent to the trunk sea trade route for the minimum diversion of mother vessels, so as to reduce unproductive voyage and port time.

Kochi, being adjacent to the trunk sea trade route and linked to the hinterland through a well-developed system of national highways and rail connections, is an ideal location for the development of hub trade.

A visit to the project site revealed that the area is bustling with construction activity. which included piling, soil improvement, sand piling, sheet piling, building work, fabrication of piling gauges, casting of prefab panels, manufacture of paver blocks, and so on. If the present pace pf work is sustained, the first phase of the project is expected to be commissioned on schedule.

Speaking to Business Line at the construction site, Mr Suresh Joseph, General Manager, DP World, Kochi, said that the construction activities that had commenced in January are progressing at the right speed, without any hurdles. “So far we have completed 28 per cent of the work and by December, we expect to reach 45 per cent”, he said. With this pace, he hoped that the first phase of the project would be ready by November 2009.

Simplex Infrastructures Ltd, Kolkata, is the civil contractor engaged by DP World for the work. The project will use close of 9,000 tonnes of steel and 11,000 tonnes of cement. Mr Joseph said that 80 per cent of the steel had arrived at the site.

The ICTT project, which will be set up on 115 hectares of unencumbered land, is proposed to be developed in three phases. Phase IA will be developed with 600 metres of quay and is designed to handle one million TEUs. This phase is expected to cost Rs 1,300 crore and there has been a considerable increase in project costs due to cost escalations, said Mr Joseph.

Later, Phase I B will developed by adding another 300 metres of quay with the capacity to handle additional half a million TEUs. The second phase will have 900 metres of quay and total quay length for the ICTT project would be 1,800 metres, with the capacity to handle 3 million TEUs.

Phase IA of the project will be supported by six Super post-Panamax cranes, 3,500 ground slots (including 450 reefer points), 15 eco RTGs, 5 reach-stackers, etc. The terminal facilities and processes have been designed to accept and service the largest container ships afloat today, such as the Emma Maersk.

It will also have two rail handling sidings capable of handling 12 trains per day and five km of road. Provisions have also been made to locate a security scanner to screen containers inside the terminal.

A new 8-km electrified rail link with a capacity to carry 15 trains each way will connect Vallarpadam ICTT to the main lines of Southern Railway at Edappally. Likewise, the new 18-km four-lane National Highway provides surface connectivity to NH17 and NH47.

While the first connects to the Konkan region, the latter connects to the growing hinterland in the South, Central and the East.

Apart from this, the development of the coastal highway will provide additional access to the two national highways, thus ensuring 100 per cent road connectivity.

Asked about the exact date on the commissioning of the project, Mr Joseph said that the authorities expect to shift the activities from Willingdon Island from November 1, 2009 provided the infrastructure support, including road and rail connectivity and dredging requirements to berth mother vessels at the terminal, are ready by that time.

“We will be ready by November next year as the Port Chairman has given an assurance that all these facilities will be ready by the time. We are going ahead as per this schedule”, he said.

He referred to the proximity to East-West trade routes as the greatest advantage for the Vallarpadam ICTT. It has the shortest deviation from both the Suez and the Middle East routes, compared to any other port in India. Besides saving on steaming time and costs, the proximity saves considerable time and cost for cargoes originating or terminating in the sub-continent.

The containers landed at the terminal will have a multi-modal option to transit to the hinterland. The terminal will have the facility to berth a mainline vessel and a feeder, together with the possibility of hot-seat exchange of boxes. From a feeder, a container could be directly put on to the mainline vessel, or vice-versa. This will result in better transit times for the shipper.

The existing container terminal at Kochi, operated by DP World, has excellent connectivity to the ports on the West coast. Tuticorin provides support on the East coast. Plans are on to connect Haldia, Visakapatnam and Chennai, thereby ensuring holistic coastal support to the India hinterland, he said.

Moreover the development of ICTT at Vallarpadam has seen a flurry of activity in commissioning container freight stations, empty container parks, logistics parks, warehousing and the like, that have never been seen in Kochi till now, Mr Suresh added.

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Re: India's Shipping Sector

Postby Sachin » 28 Oct 2008 09:15

For a change, good to see some development happening in Kerala. The Vizhinjam (near Kovalam, Trivandrum Dt) port may see some hurdles as the local people are now on the "protest" mode. Basically it is about where they will get rehabilitated and what would be the total monetory package.

Good to see the Vallarpadam Container Terminal (in Kochi Dt.) going on at a steady pace. Local dailies did report that the current Defence Minister A.K Antony took some extra efforts to get these ports the required permissions from Defence authorities (at a super quick speed)

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Re: India's Shipping Sector

Postby Ananth » 07 Mar 2009 02:00

http://www.business-standard.com/india/ ... t/56236/on
Bharati Shipyard bags Rs 281cr defence contract
Ship building firm Bharati Shipyard today said it has bagged a Rs 281-crore contract from the Ministry of Defence for supplying 15 interceptor boats for Indian coast guard.

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Re: India's Shipping Sector

Postby Sanjay M » 25 Mar 2009 04:23


Vipul
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Re: India's Shipping Sector

Postby Vipul » 26 Mar 2009 22:15

Shipping Corporation to buy 40 more ships by 2012.

Shipping Corporation of India (SCI) today said it plans to buy 40 more ships and double its shipping tonnage to 10 million tonnes by 2012.The company is also in talks with several Korean companies for setting up world-class shipbuilding yards.

"Our plan is definitely to grow SCI to at least to about 10 million tonnes (GRT-gross registered tonnage) by ordering another about 40 ships in the rest years of five year plan," SCI Chairman and Managing Director S Hajara told reporters here on the sidelines of a function.

About shipbuilding yards, he said: "We are very keen on shipbuilding yards. We are in talks with a number of Korean companies... We hope that there is a great future in India for shipbuilding and we want to be a part of that... And become a maritime player rather than a shipping company."

This might take time as every promoter for shipbuilding today is going slightly low because suddenly ship owners have stopped ordering ships, Hajara said adding that there were no talks with Japanese companies.

The company has deferred its plans to acquire eight large vessels including four very large crude carriers (VLCC) and four capesize vessels at a cost of one billion dollar to the next fiscal in the wake of economic meltdown.

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Re: India's Shipping Sector

Postby tejas » 26 Mar 2009 22:56

^^^^^^^^ Please say it ain't so. Why the hell do we need more gov't owned shipyards? Aren't the gems we have enough? Everytime I read about another PSU going on a capital spending spree I want to puke. The gov't can't provide drinking water or power to millions of people and yet they want to build ships and manufacture steel?

Note how SCI needs to go to a PRIVATE Korean owned shipyard ( the Korean gov't doesn't own shipyards) for technology just as every PSU has to go to foreign private companies for technology. In a country where resources are scarce, to waste them on gov't owned parasites is a god damn disgrace. :evil:

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Re: India's Shipping Sector

Postby Vipul » 27 Mar 2009 00:32

French shipbuilder DCNS plans unit in India, seeks local partner.

Mumbai, March 26 French Naval shipbuilder DCNS is looking for an Indian partner to set up a fabrication facility locally for manufacture of warships and submarines for the Indian Navy, in a bid to tap the burgeoning domestic defence market.

The company, which has been participating in some projects of the Indian Navy, launched its Indian subsidiary, DCNS India, in Mumbai on Wednesday.

“As per Government policy, we cannot hold more than 26 per cent stake in the joint venture (with the Indian partner). But we are open to raise the stake if the (Indian) Government relaxes the FDI cap on defence projects,” Mr Xavier Marchal, DCNS’s Senior Vice-President (India), told Business Line.He said the Indian tie-up was likely to be finalised within a year.

The Indian Government had opened up the defence production industry in 2001 by allowing 100 per cent investment by private sector firms, but allowed FDI only up to 26 per cent. Of late, however, many industry bodies have sought an increase in this limit.

The Associated Chambers of Commerce and Industry of India (Assocham), for instance, recently presented a paper to the Defence Ministry, seeking a hike in the FDI ceiling to 49 per cent to help speed up defence indigenisation using the latest technological transfers. The paper pointed out that the country’s spend on arms imports since the 1999 Kargil conflict has risen to $25 billion and would further rise to $30 billion by 2012.

India is the world’s largest importer of defence articles, as its Services buy over $6 billion worth of military hardware. The Government has set a target for procuring 70 per cent of its defence requirements from indigenous sources by 2010. “It is therefore necessary to move towards self-reliance in defence production, which could be possible if the FDI limit is hiked to 49 per cent,” Assocham feels.

Mr Patrick Boissier, DCNS Group’s Chairman and CEO said, “India is one of the key strategic focus markets for DCNS group and we are looking at it from a very long-term prospective.”

The group offers solutions for development of surface combatants and submarines, besides critical equipment and systems, including underwater weapons and propulsion systems.

DCNS currently holds a contract for the transfer of technology to the Indian Navy for the construction of six Scorpene submarines at the Mazagaon Dock Ltd. “We are confident that the six submarines will be completed within the scheduled time of 2018. The construction of one has started and the second and third are in the pipeline,” Mr Boissier said, adding that the level of indigenisation will increase with every submarine constructed.

DCNS is also providing a comprehensive package and engine/reduction gear cradles for four P28 anti-submarine warfare corvettes built by Garden Reach Shipbuilding.

The group is preparing to participate in the bids for six new submarines that India plans to invite in the next two years(2 years :shock: ). Additionally, DCNS India will conduct detailed engineering studies and provide consultancy, sourcing and procurement services for other DCNS projects with Indian shipyards

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Re: India's Shipping Sector

Postby putnanja » 07 Apr 2009 00:45

Indian shipowners ready to offer domestic shipyards the right of first refusal

New Delhi, April 6 Indian shipowners are ready to offer domestic shipbuilders the right of first refusal for vessels that they acquire using the soft loan that the Centre is considering for the shipowners.

“We do not have a problem in acquiring ships from domestic shipyards provided they offer us the vessels we are looking to acquire,” Mr S.C. Hajara, Chairman and Managing Director, Shipping Corporation of India (SCI), told Business Line recently. Mr Hajara is also the President of the Indian National Shipowners’ Association (INSA).

INSA is the body that has sought the Centre’s help to create a fund of at least Rs 10,000 crore, which could be used to provide low-cost finances to Indian shipowners.

...

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Re: India's Shipping Sector

Postby SaraLax » 16 Apr 2009 16:57

Private port at Karaikal begins its operations
KARAIKAL: The private MARG Karaikal port at Vanjore in Karaikal district, started functioning on Wednesday and received its first project cargo vessel, M.V.Beluga Fanfare, which was berthed in the newly built facility.

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Re: India's Shipping Sector

Postby putnanja » 02 May 2009 01:39

Seoul mission comes to the rescue of Indian seafarers

NEW DELHI: India’s sustained diplomatic activity has led to the South Korean Supreme Court upholding the appeal by two Indian seafarers against their conviction on the charge of criminal negligence, diplomatic sources said here.

...
Following the latest development, the External Affairs Ministry said: “The Supreme Court has dismissed the appeal of the seafarers against the fine imposed on them on the charge of causing pollution. Pending final disposal of the matter by the Daejon High Court, to which the case has been remanded back by the Supreme Court, the two officers would continue to remain on bail.”

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Re: India's Shipping Sector

Postby Vipul » 04 May 2009 06:49

Mouth of Narmada turning into shipbuilding hub.

The estuary of Narmada river, considered lifeline of Gujarat, is all set to become the lifeline for shipbuilding activities of India.

In a move with far-reaching consequences, the Gujarat government has decided to develop the 12-km stretch south of Dahej - at the point where the Narmada river meets the Gulf of Khambhat - as a Marine Shipbuilding Park (MSP), first of its kind in the country.

A Rs 1,000-crore Gujarat Maritime Board project for developing common infrastructure facilities for shipbuilders is ready. While two shipyards - ABG Shipyard and Shoft Engineering Shipyard - already exist here, officials said at least a dozen shipyards are proposed to be set up, each with an investment ranging from Rs 300 crore to Rs 1,200 crore. The northern bank of Narmada estuary offers nearly 10-metre deep draft during high tide, good enough to build big ships with up to 10,000 dead weight tonnage (DWT).

A senior bureaucrat said, “With the decision to move the Kalpasar dam north of Dahej, shipbuilding activities have become viable. Had Dahej and Narmada river remained within the Kalpasar reservoir, developmental activities would not have been possible. Even the other bank of the Gulf of Khambhat - the Bhavnagar coast which too is now out of Kalpasar’s new design - will also be developed to build smaller ships.

Gujarat chief secretary D Rajagopalan has been pressing ahead with the idea of developing shipbuilding clusters like the ones in South Korea, China, Japan and Indonesia. Currently, India accounts for just one per cent of shipbuilding activities in the world. With the decision to develop MSP, Gujarat may well fulfil the Government of India’s shipbuilding policy perspective of taking it up to 10 per cent.

ABG Shipyard is planning to expand its activities in the estuary with an investment of Rs 800 crore. The proposals now under implementation include Walchandnagar Industries for Rs 300 crore, Tebma Shipyard for Rs 1,000 crore, Dahej Shipyard for Rs 1,200 crore, Jindal Shipyard for Rs 1,000 crore, and Assam Company for Rs 750 crore.

Official also believe that the MSP would facilitate movement of cargo to different places in India via sea route, which is often cheaper.

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Re: India's Shipping Sector

Postby Vipul » 04 May 2009 17:40

Vallarpadam transshipment project spurs investor interest in Kerala.

The upcoming International Container Transshipment Terminal (ICTT) at Vallarpadam is attracting large-scale investments
and developmental activities to Kochi and its neighbourhood in Kerala. Positioned as India’s first international transshipment hub, the facility is slated to flag off its operations after completion of first phase development in November 2009.

While warehousing and container freight stations (CFSs) have taken up the chunk of activities on the ground as of now, private investors
are understood to be flocking in to take advantage of the potential for growth with the development of the ICTT.

Suresh Joseph, general manager of DP World - Cochin, said, “A lot of interest is being shown by private investors in developing warehousing, CFS and other such support infrastructure for the ICTT. While two CFSs are operational at least another four major CFSs are on the anvil.”

Mr Joseph said investors are interested in leasing large parcels of free-hold lands at places like Vypeen, Mulavukadu and Vallarpadam. “We are in discussions with some investors for setting up value addition centers at these locations,” he added. The Special Economic Zone (SEZ) developed by Cochin Port Trust at Puthuvypeen is also proving to be another major investment opportunity for investors. The 285-hectare SEZ under development at Puthuvypeen will give boost to port-based infrastructure, including light manufacturing and value addition activities.

According to a leading transshipment operator, the Cochin Port is developing Ro-Ro terminals at Bolgatty and Willingdon Island to promote inland waterways in association with Inland Waterways Authority of India (IWAI). This will provide excellent opportunities for investments in barging.

“The Ro-Ro terminal would also be operational by November 2009 and linking up the National Waterway No 3 with the ICTT is expected to open up innumerable possibilities for barging between the state’s main trading centers of cochin, Alleppey, Kottayam, quilon, Kozhikode and Cannanore,” he said.

According to Mr Joseph, the potential for investment is close of Rs 600-700 crore of which Rs 100 crore of investment has already happened. The balance will happen within the next eighteen months.

“What is important to note is that all these developments will throw up lot of opportunities for employment. The potential for manpower is very large, compared to what was thought earlier.

The current downturn is not going to delay the Vallarpadam project. “We are going ahead as per our plans. Our plans have not changed because of the downturn,” said Mr Joseph. “The project will be commissioned by November 30, 2009. Towards this end, the first milestone is that of commissioning 200 mt of wharf by July to offload the super post Panamax cranes that would come from China by the end of August. The first lot of rubber tyred gantry cranes will come in September and the second lot by November,” he said.

According to him, Cochin Port has already completed 22% of capital dredging of the channel and it is expected to keep the channel ready with 14.5 metre draft by the time Vallarpadam terminal is ready to take off. As far as rail connectivity is concerned, almost 65% of the work is over and the RVNL is hopeful of completing the rest by end of October. “Road connectivity is slightly lagging behind,” said Mr Joseph, “But the National Highway Authority of India (NHAI) has assured the port of two lane connectivity to the terminal by December.”

When asked about the success of projects like Vallarpadam in the context of agitational politics prevalent in Kerala, he said, “There is a transformation of work culture here. I feel that DP World has actually brought in a new work culture to the place and this is not limited to the work inside the terminal but has caught on with other stakeholders outside the terminal as well. Today the manner in which business is conducted between the container terminal operator and the stakeholders have changed for the better. There is an increasing sense of urgency in making things happen rather than delaying. This is the kind of transformation that has happened over the last four years.

As an example, he pointed out to the current strike by two segments of workers against implementation of tribunal award. “Had this happened two years back, the entire port would have been paralysed. Today it is a very localized action and the terminal is more or less normal,” he said, adding, “My experience is that we are looking at a new dawn – a new sunrise – in Kerala.”

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Re: India's Shipping Sector

Postby Ananth » 09 May 2009 01:01

http://www.business-standard.com/india/ ... 5C/357551/

You have seen an increase of Rs 600 crore in your order book during the last quarter. Where did it come from?
We received orders for Rs 290 crore from the Indian Navy. Their shipyards make larger vessels like aircraft carriers and submarines. A lot of business may come from the Navy.

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Re: India's Shipping Sector

Postby Sachin » 09 May 2009 11:35

Vipul wrote:As an example, he pointed out to the current strike by two segments of workers against implementation of tribunal award. “Had this happened two years back, the entire port would have been paralysed. Today it is a very localized action and the terminal is more or less normal,” he said, adding, “My experience is that we are looking at a new dawn – a new sunrise – in Kerala.”

AFAIK, the current strike even though not upto the legendary Kerala standards had its own share of nuisance value. The Indian Navy was asked to deploy its men to do some day-to-day operations in the port. I think the BMS affiliated union has agreed to resume work.

If Kerala work culture, improves I would be the happiest. But I feel there is a lot more way to go.


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