India's Shipping Sector

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Vasu
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Re: India's Shipping Sector

Postby Vasu » 11 Feb 2011 16:48

Today, the PeeM of India inaugurated the Vallarpadam Container Transshipment Terminal in Kerala.

Prime Minister inaugurates Rs 3,200 cr ICTT at Cochin Port: Economic Crimes, 11 Feb, 2011

"With the building of this terminal, our exporters can now access mainline containers vessel calling at one of the most well-located ports of India," Singh said after inaugurating the first phase of the over Rs 3,200 crore terminal under the Cochin Port expansion project, making it the first port in the country that can berth very large vessels.

Dubai Ports World built the terminal at a cost of around Rs 1,600 crore. The terminal can handle up to 1 million TEUs (twenty foot equivalent units) of cargo per annum. In addition, another Rs 1,700 crore was invested on providing road and rail connectivity to the terminal.

"Today, about 60 per cent of India's exports and imports containers are transshipped through ports like Singapore and Colombo. This transshipment through ports outside the country involves an additional expenditure of USD 300 per container and an extra 7-10 days of transit time," he said.

Singh said a liquefied natural gas ( LNG )) import and re-gasification facility would also be constructed at Kochi by March, 2012.

Stating that construction of the terminal was the centrepiece of a comprehensive plan to develop Kochi as an economic and logistical hub in the region, he said the project area has been declared as a Special Economic Zone .

"A link road has been built to connect Vallarpadam with NH-47 and NH-17. The Railway Vikas Nigam Ltd has completed the 8.5-km rail link that connects the terminal to the railway network," he said.

Besides, the navigation channel is being deepened. This is a challenging task involving the removal of nearly 26 million cubic metres of soil.


News from 4 days ago:

CPT- DP World dispute continues: Express Buzz, 7 Feb, 2011

With only a couple of days remaining for the inauguration of the International Container Transshipment Terminal (ICTT) at Vallarpadam, confusion still prevails over who should provide security for the terminal.


The Cochin Port Trust (CPT) has decided to impose a container cess from each container coming to Vallarpadam to meet the security expenses of the terminal.

Recently, the security of the terminal was entrusted to the CISF. This proposal was strongly opposed by DP World, as according to the earlier agreement, the security of the terminal lies with them.

DP World was of the opinion that the security of the terminal should be entrusted to a private agency according to the agreement.

CISF had been entrusted with the security of the terminal according to a decision taken by Port Trust chairman N Ramachandran. However, DP World was not ready to meet the security charges of the CISF.

It was in this background that a decision was taken to impose a cess from each container coming to the terminal.


Some more data from Dredging Today:

India: ICTT at Vallarpadam to open this month

The INR32.50bn ($716.5m) terminal is expected to reduce the country’s dependence on foreign ports to handle transshipments.

The first phase of the terminal is expected to have a capacity of one million teu, and will consist of six Super-Post-Panamax quay cranes and an on-dock railhead serviced by a rail-mounted support crane.

DP World (Subcontinent) plans to begin work on the second phase of the project soon, according to ANI.

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Re: India's Shipping Sector

Postby arun » 11 Feb 2011 21:25

Photo Gallery of the Vallarpadam Container Transshipment Terminal aka India Gateway Terminal (IGTPL) aka ICTT :

IGTPL

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Re: India's Shipping Sector

Postby Theo_Fidel » 12 Feb 2011 00:03

Have to say I'm impressed. :) Well done to Socialist Republic.

Image

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Re: India's Shipping Sector

Postby Theo_Fidel » 20 Feb 2011 09:44

Sigh! I appear to have spoken too soon.

First strike has already occurred.

http://expressbuzz.com/cities/kochi/fir ... 49447.html

Though the container vessel OEL Dubai had reached Kochi the day before the commissioning of the ICTT, it had to wait at the Rajiv Gandhi Container Terminal since the workers were on strike. The vessel, has been conducting feeder service between Kochi and Colombo. Over 500 containers were unloaded while 250 were loaded. Though the vessel berthed at Vallarpadam on Thursday night, unloading work began after 12 midnight .

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Re: India's Shipping Sector

Postby manish » 20 Feb 2011 17:56

Theo_Fidel wrote:Sigh! I appear to have spoken too soon.

First strike has already occurred.

http://expressbuzz.com/cities/kochi/fir ... 49447.html

Though the container vessel OEL Dubai had reached Kochi the day before the commissioning of the ICTT, it had to wait at the Rajiv Gandhi Container Terminal since the workers were on strike. The vessel, has been conducting feeder service between Kochi and Colombo. Over 500 containers were unloaded while 250 were loaded. Though the vessel berthed at Vallarpadam on Thursday night, unloading work began after 12 midnight .

I think not Theo saar. The strike at RGCT (the old terminal at Cochin PT) resulted in the vessel sailing into ICTT, thereby giving it the opportunity to make a debut.

Too convenient for DP World, eh? All those vessels waiting outside RGCT thanks to a strike that happened just as ICTT came into being? Good for them.

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Re: India's Shipping Sector

Postby Vipul » 04 Apr 2011 23:45

MPSEZ targets 100 MT cargo handling by 2013.

Adani-group owned, Mundra Port and Special Economic Zone Limited (MPSEZ) eyes cargo handling at the Mundra Port to surge to 100 million tonnes (MT) by 2012-13, doubling from the current 50 million tonnes, the company said.

In a statement issued today, the private sector port operator informed that the cargo movement at Mundra Port would double over the next two years.

The company expects to cross 100 million tonnes of cargo handling by 2012-13 up from the current 50 million tonnes, while it is expected to rise to 80 million tonnes in 2011-12, the statement said.

The cargo volumes at Mundra Port have jumped from 11.7 million tonnes in 2005-06 to over 50 million tonnes in 2010-11, showing a compounded annual rate of growth of 34 per cent.

Meanwhile, the maritime trade of the country grew at a rate close to 8.5 per cent during the period.

"With Mundra Port’s world class infrastructure, best operational practices, pro-active and customer friendly management, we are aiming at handling 200 million tonnes of cargo volumes by 2020 at ports managed by the company," said Gautam Adani, chairman, Adani group.

During 2010-11, the company commissioned a 20 million tonnes of bulk cargo handling terminal at Dahej, while it is currently developing a multi cargo port at Hazira with Hazira Port Private Ltd as its partner, a 5 million tonnes LNG terminal at Mundra, a coal terminal each at Marmugao in Goa and Visakhapatnam in Andhra Pradesh.MPSEZ is developing 6 more berths for handling bulk/container cargo and is enhancing capacity of coal terminal to 100 million MT.

According to company statement, the port has emerged as the seventh largest port in the country in terms of annual cargo handling volumes for FY 2010-11. Mundra Port has 13 berths for handling bulk, liquid and container cargo, 2 single point mooring units, a RO-RO terminal for automobile handling and a fully automated 60 million MT dedicated coal terminal with 2 berths. The Port handles large variety of cargo like crude oil, petroleum products, chemicals, edible oil, coal, fertilizers, steel, containers, automobiles etc.

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Re: India's Shipping Sector

Postby Vipul » 13 Apr 2011 19:34

Container operations pick up speed at Vallarpadam.

After some teething troubles, there are welcome signs that container operations are gathering momentum at the newly commissioned Vallarpadam International Container Transhipment Terminal (ICTT).

According to official sources in ICTT, the reduction in the vessel related charges offered by the Kochi port management for mainline container vessels on par with Colombo port has resulted in the increased arrival of such vessels for transhipment.

Mainlines from West Africa such as Zim/CMA have also started calling at Kochi and companies such as Delmas, PIL and Maersk are planning transhipment of raw cashew consignment to Mangalore and Tuticorin by utilising the ICTT facility.

Global lines
The high productivity and quick turnaround have reduced the berth stay cost, which is an added advantage to the mainliners, and enquiries are also pouring in from various international shipping lines. The 12.5 metre draught presently available in the berth has helped mainline vessels to anchor with cargo. The terminal productivity has also moved up from an average of 15-16 moves per hour per crane at RGCT to about 25 moves and hour per crane resulting in faster turnaround of vessels and reduced berth cost for vessel operators.

However, the lack of sufficient number of CFS in the vicinity of the terminal is hindering free flow of containers to and from the terminal for various Customs procedures. The officials hoped that the connectivity to the hinterland will improve further with the opening of two more CFS by Gateway Distriparks and Kerala State Industrial Enterprises by June.

Asked about the controversy over the high terminal handling charges, the sources said that DP World has effected only an actual increase of Rs 732 for 20 ft containers and Rs 1,150 for 40 ft containers after getting the nod from TAMP. The rates at present are Rs 4,200 for 20 ft and Rs 6,400 for 40 ft.

Earlier, the steamer agents were charging separate rates of lashing and unlashing of containers, which were fixed at Rs 345 /container. Currently, the ICTT rates are inclusive of these charges.

Besides, DP World had stopped the collection of pre-stage charges which were in the range of Rs 500 per 20 ft containers and Rs 600 for 40 ft earlier. The trade has now an option to choose the pre-stage facility either at the Willingdon Island or at any CFS. Customs has also given facility of the printing of shipping bills at Ernakulam Wharf absolutely free.

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Cochin's beginning

Postby khwaja » 14 Apr 2011 21:20

There seems to be a lot of action in line for the southwestern coast. Once the handling charges of ICTT Cochin become competitive, its going to get a lot of international traffic for sure. India needs to leverage its economic strengths into strategic advantage, which India often fails to do.

India could make its name felt on the international trade routes in the IOR (trust me, we're nowhere in scene at the moment) by offering attractive incentives to international operators, and implementing more projects (read: Sethusamudram).

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Re: India's Shipping Sector

Postby Vipul » 15 Apr 2011 19:11

India merchant navy officers to grab 9% global share by 2015.

Aiming to increase the global share of Indian merchant navy officers to 9% by 2015 in the wake of shortage of personnel, the government plans to acquire four training ships at a cost of Rs 500 crore.

India is the fifth largest supplier of officers globally at present having a share of 6.3% out of 5,50,000 officers.

"The acquisitions will be made through state-owned Shipping Corporation of India (SCI) and each dedicated training vessel is likely to carry 400 trainees. The cost for four vessels to be acquired is estimated at Rs 500 crore," a Shipping Ministry official told PTI.

There is acute shortage of trained manpower in the space in view of increasing fleet size and the number of officers globally is likely to swell to 6,60,000 by 2015, he said.

"Shortage of officers is likely to be become acute by 2013 and India can very well aspire to increase its market share to 9%, the official said adding it will have to supply 65,000 additional officers by 2015.

In this regard, the Ministry is planning to increase the on board training slots from 4,000 at present to 16,000 in the next few years.

Also, the Ministry plans to undertake promotional campaigns, including mass media advertising, direct marketing, school and college contact programmes etc at an estimated expenditure of Rs 20 crore.

Earlier this year, Shipping Minister GK Vasan while unveiling the maritime agenda for shipping sector that envisaged Rs 5 lakh crore investment in the space by 2020, also stressed the need for grabbing more market share by the Indian seafarers.


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Re: Cochin's beginning

Postby Rahul M » 16 Apr 2011 12:27

Newclear wrote:.....

username changed to AshokB.

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Re: India's Shipping Sector

Postby Vipul » 28 Jun 2011 21:19

ABG-PSA Venture Gets $1.5 Billion Container Terminal Contract.

A joint venture between India's ABG Shipyard Ltd. and Singapore's PSA International Pte. Ltd. has been given a 67 billion rupee ($1.5 billion) contract to develop a fourth container terminal at Jawaharlal Nehru Port in western India, a shipping ministry official said Tuesday.

"The concession agreement is for 30 years under which 51% of the revenue will be put into the port terminal while the rest will be retained by the concessionaire," said Rakesh Shrivastava, joint secretary in charge of ports at the shipping ministry.

During the first two-year phase of the agreement, the joint venture will enhance the port's total container handling capacity by 5.0 million to 6.0 million twenty-foot equivalent units, or TEUs, up from the current 3.29 million TEUs, he said.

The Jawaharlal Nehru Port Trust, which runs the port, called for bids for the fourth terminal two years ago but the process was delayed due to some legal hurdles, Mr. Shrivastava said, without elaborating.

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Re: India's Shipping Sector

Postby Vasu » 04 Jul 2011 13:42

I have a feeling ABG is biting off more than it can chew.

It is already way behind schedule on a number of vessel deliveries (both ships and oil rigs) and now its getting into navy vessels and port construction.

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Re: India's Shipping Sector

Postby Vasu » 13 Jul 2011 10:32

Transhipment delays pushing biz away from Vallarpadam



Transhipment business through the International Container Transhipment Terminal (ICTT) at Vallarpadam is being hit by the non-availability of sufficient Indian flag tonnage for transhipment. Following the move of some of the mainliners to bypass Kochi, it is feared that the Vallarpadam Terminal could lose substantially in terms of business volume and revenue in the coming days.

Sources in the shipping fraternity told Business Line that mainliners such as Maersk, CMA, PIL, and so on, are planning to shift their vessels to Colombo Port to move transhipment containers to Tuticorin and Mangalore due to lack of timely sailings of Indian flag tonnage from Kochi.

Cabotage law
The shipping circles point out that such a situation has emerged particularly because of the delay in relaxing the cabotage law by the Government.

Due to the existing cabotage restrictions, foreign vessels can not carry transhipment cargoes from Kochi to these ports, they said.

The consortium of feeder operators have brought this matter before the terminal operator, DP World, highlighting the delay being faced by them, especially in moving raw cashew shipment from Kochi.

Citing some cases, they pointed out that PIL's shipment of raw cashew, which landed at the terminal on May 30, could be transhipped only after a rollover and a long gap of 24 days.

Another customer had to wait for 34 days for transhipment when the cargo landed at the ICTT on May 20.

Sources pointed out that the prolonged delay at the transit point of Kochi is not acceptable to the shipping lines and customers as it would affect the quality of cargo, especially raw cashew shipments.

This has led to a situation where the customers now prefer transhipment via Colombo rather than Kochi in view of better connectivity/transit time.

The only practical solution to these issues would be to relax, at least temporarily, the cabotage restrictions for transhipment units at Vallarpadam Terminal, which would allow foreign flag vessels also to carry transhipment cargoes until appropriate guidelines are in place from the competent authority.


I think the current laws state that only Indian flagged vessels can do coastal trade, which is the issue here, as there aren't enough Indian flagged vessels sailing from Vallarpadam. But I wonder why there aren't enough Indian flagged vessels plying from the port? Surely it couldn't be because of availability! Shipping rates are at the lowest these days because of huge oversupply of tonnage.

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Re: India's Shipping Sector

Postby Vasu » 26 Jul 2011 09:30

Vessel berthed at ICTT, largest in Indian ports so far

Cochin: The largest-ever container vessel to call on a south Indian port berthed on Thursday at the International Container Trans-shipment Terminal (ICTT) here. The Singaporean flagged vessel, Maersk Sembawang, has a length of 319 metres. With a capacity of 6478 TEU, it is also the largest Maersk line vessel to call in India.

The previous largest container ship to call south Indian ports was also a Maersk line vessel, the Maersk Kalamata, at Chennai port (length of 303.83 metres, capacity of 6,416 TEUs).



Won't be the last either! In fact, SCI has three container ships under construction at STX Dalian, China each of 6,500 TEU's.

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Re: India's Shipping Sector

Postby Vasu » 26 Jul 2011 09:33

This is going to be loverly for tourists!

Ferry Service to Start soon between Cochin and Male

A bi-weekly passenger-cum-ferry service between Cochin and Male (Maldives) will start soon. The ferry service is to be run by a private operator but facilities on either port of call would be arranged by the concerned ports.

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Re: India's Shipping Sector

Postby Vipul » 28 Jul 2011 01:21

Titagarh Wagon plans to enter shipbuilding.


Titagarh Wagon (TWL) today said that it planned to enter shipbuilding business and was scouting for land near Kulpi.
TWL Chairman JP Chowdhary said: "We will require around 400 acres and may scout for technical partner for the project."


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Re: India's Shipping Sector

Postby Vasu » 12 Sep 2011 10:32

Thanks to the incompetence, among many other things, of the UPeeA government, we've missed out on almost 6-8 years of good infrastructure development.

Not a single port project awarded this year by shipping ministry

The shipping ministry has failed to award a single port project out of a planned 24 this year, with atotal outlay of Rs17,000 crore.

This comes even as the government on Thursday earmarked Rs22,000 crore to set up nine ports in the next five years.

Mandarins blame the delay on inter-ministerial approvals.

But truth be told, the slack is on for sometime now. Half the projects to be bidded out are carryovers from the past, valued at around Rs13,000 crore.

These include a 2009-10 plan to create a mega container terminal at Chennai port costing Rs3,686 crore and a mechanised berth at Vishakhapatnam for Rs218 crore.

While the former awaits environmental nod, the latter needs security clearances.

Pending from the last fiscal, on the other hand, is the fourth container terminal at Jawaharlal Nehru Port Trust (JNPT) worth Rs6,700 crore, which got entangled in litigations.

The development of a standalone container handling facility with a quay length of 330 metres at JNPT has also met the same fate.
Last fiscal, of a targeted 21 projects, the ministry could award only eight worth around Rs3,330 crore.

The NMDP had envisaged creating an additional capacity of 431 million tonnes at the major ports at a cost of Rs62,700 crore by the end of this fiscal.

The maritime perspective plan 2020 unveiled by the ministry in January this year, envisages creating 3,200 million metric tonne capacity over the next ten years, equally divided between private ports and government trusts.

That would mean adding nearly 200 million tonne capacity every year.


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Re: India's Shipping Sector

Postby harbans » 17 Sep 2011 07:58

Thanks to the incompetence, among many other things, of the UPeeA government, we've missed out on almost 6-8 years of good infrastructure development.

Have been pointing this out for a long time. That delays in implementation are costing the Nation far more than notional losses due to corruption. If we had implemented reforms 7 years before 91, we would have been a 5 trillion USD economy by now. But in the last few years of the 80's we were endlessly debating morality issues and shoving in socialists like Chandrasekhar and VP SIngh. The CAG calculates notional losses, but it should also take into it's 'notional' calculations the cost and impact of the failure to implement decisions in time. A 5 Trillion USD GDP today means we have been losing almost 3 trillion dollars a year..year on year.

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Re: India's Shipping Sector

Postby Vasu » 13 Oct 2011 10:44

Not really about Indian shipping but it seems that the number of shipping accidents has increased alarmingly in recent times across the world. This time the accident's occured off the coast of New Zealand where a container ship, Liberia flagged Rena, hit the reefs after hitting rough weather and is breaking apart slowly. Massive amounts of oil has entered the waters and is washing up on the shores.

The Hindu has photos from the accident.

Slowly but surely we're managing to kill our oceans. The 5 great garbage patches in all the major oceans now contain more plastic polymer than plankton and more and more human trash and waste is dumped into the oceans and seas every day.

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Re: India's Shipping Sector

Postby chackojoseph » 20 Nov 2011 14:22


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Re: India's Shipping Sector

Postby manish » 22 Nov 2011 10:57

Vasu wrote:Thanks to the incompetence, among many other things, of the UPeeA government, we've missed out on almost 6-8 years of good infrastructure development.

Not a single port project awarded this year by shipping ministry

The shipping ministry has failed to award a single port project out of a planned 24 this year, with a total outlay of Rs17,000 crore.



The development at GoI owned Major Ports had anyway been curtailed by crazy tariff regulations and development framework which has resulted in the situation described in Vasu's post above. Many of us therefore were hedging our bets on the development of greenfield ports to improve the situation where the private sector could take the lead, free from stifling Central control and TAMP regulations.

But now, the wonderful combination of UPeeA policy paralysis, outdated rules and regulatory framework and high interest rates have almost completely curtailed any hopes of development of the ports sector. There was anyway little hope for any action from the govt, but now even private players are finding it too hard to make any progress.

Some of the major concerns at the moment are:

  • Land Acquisition - simpler, **MORE TRANSPARENT** and easier land acquisition process is urgently required else you can kiss goodbyes to dreams of mega port terminals competing with the best that PRC has to offer.

  • Environmental regulations - Instead of trying to simplify the rules, GoI continues to make things more and more complicated - new rules state that the environmental impact assessment for ports should be carried out over a minimum duration of 12 months including at least two monsoon seasons. Now, this is just one step in a multi-step environmental clearance process - God alone knows how long the entire process will take now.

    The first project to suffer under the new rule IIRC was an upcoming captive coal import facility for a proposed UMPP in TN. Imagine waiting a minimum of 2+ years for environmental clearance alone when your port construction is anyways likely to take a minimum of 2-3 years for even a small full-fledged greenfield port! This will ensure a minimum gap of 7+ years between someone coming up with a concept plan for a greenfield port and the project commencing operations - good luck achieving those lofty port capacity addition plans then...

  • Funding - domestic interest rates are high and a fast depreciating rupee is making forex-denominated loans dearer - talk about being caught between a rock and a hard place! Port developers will struggle with high interest interest costs on massive capex that they incur...

  • Continued use of outdated laws - e.g. cabotage law - you can't ply a foreign flagged ship between Indian ports. This benefits nobody and continues to ensure that cargo that could've ideally been shipped quickly from one end of the country to the other by ships at low cost has to move by road/rail at higher costs.

  • More stupid legislation around the corner - having succeeded in finishing off the prospects of private sector at Major Ports, GoI now intends to extend babudom's 'regulatory' tentacles to even non-major ports which have hitherto been under the regulatory control of state govts and have enjoyed operational and managerial freedom including tariff flexibilities.

    If the proposed Port Regulatory Authority Bill comes through in the present format, it will be the final nail in the coffin for private greenfield ports such as Mundra, Krishnapatnam, Gangavaram, Dhamra, Karaikal etc which were just about finding their feet and setting new standards for the sector.

  • Connectivity - GoI likes to shout from the rooftops about its grand plans for port development - but how about road and rail links to connect the ports with their hinterland. It seems comical to see the Shipping Ministry issuing press releases about new paper projects and terminals at major ports in the country when most of them are already grappling with major connectivity issues that prevent them from even exploiting their existing capacities fully

Sorry for the long rant - but I just wanted to convey that there is little hope for this sector unless a major overhaul of the present framework of rules and regulations is done.

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Re: India's Shipping Sector

Postby Vipul » 13 Jan 2012 02:29

Titagarh Group plans 650 cr shipbuilding project in Bengal.

Titagarh Wagons Ltd promoter Titagarh Group has proposed a Rs 650-crore shipbuilding project in West Bengal.

"We will begin shipbuilding activity from our existing 60 acres land in Kakinara in North 24 Parganas district. In second phase, we would do it in Kulpi in South 24 Parganas. Total estimated investment in both the locations would be Rs 650 crore," Titagah group chairman J P Chowdhary said.

He said being a heavy engineering company, the group has expertise in managing such projects. However, plans are still at preliminary stage and would require management board approval.

Titagarh Marine Ltd had been floated by the group to venture into new line of business."Financing issues are been worked out but Titagah Wagons will have a stake in the venture," Chowdhary said. Kakinara project will come up on closed Titagah Paper Mill and would build ships upto 150 metres of length. Investment will be between Rs 100 and 200 crore here, Chowdhary said at the sidelines of a CII interactive programme.

The group was hopeful of getting 447 acres of land at Kulpi which was single crop land and there had been continuous erosion there, he said. "Land owners are more than eager to handover their land for the two reasons." As of now the Chowdhays do not have any specific plans to induct strategic partners for the shipbuilding initiative.


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Re: India's Shipping Sector

Postby arun » 20 Apr 2012 21:57

Larsen & Toubro's (L&T) Kattupalli Port to imminently come on line:

L&T Kattupalli Port ready for operations, awaits Customs nod

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Re: India's Shipping Sector

Postby Vipul » 24 Apr 2012 22:26

Angre Port commissioned, to handle 16 mt cargo per annum.

The Angre Port, being promoted by the Chowgules and having a capacity to handle 16 million tonnes of container, dry bulk and liquid cargo annually, was thrown open to commercial operations here today.

The port, built at an investment of Rs520 crore, is targeting traffic from a 350km radius in southern Maharashtra and northern Karnataka, will help in shipping sugar products (refined sugar and molasses), horticultural and farm produce like mangoes and foodgrain, fertilisers and engineering goods, among others.

The port, named after emperor Shivaji's admiral Kanhoji Angre, who is respected for his foresight in building a navy way back in the 17th century, will serve as an alternative to goods from the catchment area, which goes to Mumbai and up to Gujarat's Mundra for shipments, Chowgule Ports & Infrastructure Managing Director MP Patwardhan said.

"Transporting a container from Kolhapur to Mumbai costs around Rs28,000 while the same will cost Rs8,000 if sent to the Angre Port. Once we start operations, we expect savings of up to Rs600 crore per year on transportation costs alone to exporters," he said.

Built on a 320 acre land parcel that houses the jetty and other support infrastructure, the port does not have a rail link and goods will have to be transported by road to the Mumbai-Goa NH 17, which is off 42km.

The port has a natural draught of 10 metre at present, which will be gradually increased to 13 metre through dredging in the next three years.

Located on the southern bank of the Shastri river, the port has a 350-metre jetty with four berths and is operational throughout the year, Patwardhan said.

The group started acquiring the land used for the port from the early 1990s and had signed a concessional agreement on a build, own, operate, share and transfer basis in March 2008 to construct the port.

After the environmental and other clearances, construction started in June 2010 and finished in 675 days, chief executive Atul Kulkarni said.

At present, it can handle ships of up to 50,000 DWT, which are generally used to transport goods that it is targeting, he said, adding there is also a provision to extend the jetty by another 100 metre in future.

The port lies three nautical miles from the Mumbai-Goa shipping route and the company is in talks with oil marketing companies for having bunkering or refueling facilities for ships midway through their voyages.

Patwardhan said, rather than taking the goods to the Mumbai port by sea and then transferring them on to bigger vessels, the company is pursuing to connect directly with international ports in the vicinity and plans are afoot to put in place a feeder service to Dubai, which will help perishable commodities like mangoes.

The Chowgules are also in talks with car manufacturers to export cars from the port and Patwardhan claimed the tidal factors at the port make it ideal for exporting cars without any damage to the cargo.

This is the second port to come up in Jaigad, after the much larger one constructed by the Jindals--whose JSW Power runs a thermal power plant in the area--is already operational.

Patwardhan and Chowgule group chairman Vijay Chowgule, said they do not consider JSW's Port as competition as it has been built largely keeping in mind the group's requirements of handling coal.

Additionally, the Angre Port's focus on handling only clean cargo and not coal and iron ore, will help it gain advantage, Chowgule said.

"Our concentration on clean cargo will help. I think there is enough room and enough business in the geography waiting to be tapped," he said, adding vital operational services like tugs, pilot boats, security offer possibilities of tie-ups between the ports situated on either side of a hillock.

The Angre Port joins others on the 700-km coastline of the state like the twin Jawaharlal Nehru Port Trust and Mumbai Port Trust located in Mumbai, the Dharamtar Port in Raigad district and the JSW Port.

Construction on other ports, notably in Raigad district's Dighi, and at Vijaydurg in Sindhudurg district, is already underway.

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Re: India's Shipping Sector

Postby Gaurav_S » 17 Jun 2012 07:09

Lack of Infrastructure And Congestion In Indian Ports Affect Exports

According to the Indian Ports Association, India has a 6000-km long coast line, 12 major ports and 175 minor ports. These ports handle over 85 percent of the country's international trade and the major ports under the jurisdiction of the Central Government handle about 90 percent of the sea cargo traffic.

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Re: India's Shipping Sector

Postby Bade » 15 Oct 2012 07:14

Interesting video clip on Cochin Shipyard activity. I see a lot of videshis working there for a public sector shipyard. It is borne out by what I hear on the ground too.

http://www.youtube.com/watch?v=-dh1AfR6 ... detailpage

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Re: India's Shipping Sector

Postby Vipul » 25 Dec 2012 03:24

Cochin Shipyard, Cochin Port Trust sign pact for ship repair facility.

Cochin Shipyard Ltd and the Cochin Port Trust signed a contract for setting up a ship repair facility by the yard in the port area.According to the contract, 42 acres will be leased to CSL for setting up of the international ship repair facility at Willingdon Island.The contract was signed by Paul Antony, Chairman, Kochi Port, and K Subramaniam, Chairman and Managing Director, CSL, here on Monday.Milind Deora, Union Minister of State for Communication, Information Technology and Shipping, presided over the function.

The Minister described the moment as a bringing together of two entities under the Shipping Ministry with the potential of extending the benefits to both the organisations. It would help in the growth of the ship repair industry of the country, he said.

The ship repair project is one of the three identified PPP (public-private partnership) projects for the port to be awarded in 2012-13. The other two projects are the multi-user liquid terminal project at Puthuvypeen and the general cargo terminal Q8-Q9 at Ernakulam Wharf.

According to the agreement with CSL, the port will get the upfront premium, the value of the assets handed over, the guaranteed revenue quoted by CSL every year for the 30-year period and the lease rental for the land and water area allotted to them at the TAMP notified rates from time to time.

In addition, 243 employees currently working in the dry dock and the workshop area will be deputed to CSL.

The port had issued a tender in June 2012 to set up the international ship repair facility on its land. The shipyard bid successfully for the project. The yard is planning to put up a modern ship-lift system in the island at an estimated cost of Rs 490 crore over a four-year period. This is besides the upfront premium, value of assets, annual guaranteed amount, annual lease rental for land and water area payable to the port.

CSL will be using the facility for the repairs of small ships up to 130 metre in size (DDM) so that the existing ship repair facility in the yard can be dedicated to value added repairs of larger ships.

The projected revenues from the new facility are expected to be around Rs 980 crore by the end of the 30 year period in 2043. The investment in this facility is landmark one being the first major investment of CSL in ship repair facility.

In order to sustain momentum of growth, the shipyard has been looking for expanding its operations. One of the areas of potential growth identified was ship repair where CSL holds a premier position in India.

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Re: India's Shipping Sector

Postby manish » 14 Mar 2013 10:41

Non-major ports outpace major ones in growth rate
At a time the cargo traffic at major ports are conveying sluggish signals, non major ports in the country are reported to be doing better and are outpacing major ports in cargo traffic growth, according to a report by Icra.

The listed non-major port entities have reported robust increase in throughput with volumes of Adani Ports and Special Economic Zone (APSEZL) and Essar Ports (EPL) increasing by 21 per cent and 44 per cent y-o-y respectively during Q3 FY13 period.


Pipavav port under Gujarat Pipavav Port, also reported a 16 per cent improvement in its volumes q-o-q, although on a y-o-y basis its performance is down due to pressure on coal and loss of a major container line business to competition in early part of the year. Further Karaikal port, under MARG, reported 33 per cent y-o-y growth in volumes in Q3FY13 in line with diversification of cargo base and upscaling of volumes, said the Icra report.

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Re: India's Shipping Sector

Postby hanumadu » 18 Mar 2013 06:59

Bade wrote:Interesting video clip on Cochin Shipyard activity. I see a lot of videshis working there for a public sector shipyard. It is borne out by what I hear on the ground too.

http://www.youtube.com/watch?v=-dh1AfR6 ... detailpage


They might be the client personnel monitoring the progress and quality of the construction. I would be alarmed if we need to import mid level or even senior level engineers/technicians.

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Re: India's Shipping Sector

Postby Vipul » 02 Jun 2013 16:55

India to acquire icebreaker worth Rs 800 cr for polar exploration.

NEW DELHI: India is in the process of acquiring an icebreaker for a whopping Rs.800 crore ($144 million) for conducting scientific and business exploration in the polar regions.

The Ministry of Earth Sciences has submitted a proposal to the government and is likely to get a go ahead by the end of 2013, Shailesh Nayak, secretary in the ministry, said.

The hi-tech ship that can cut through 1.5-2 metre thick ice is equipped with several laboratories for carrying out experiments in the Arctic and in Antarctica. It will be custom built for India.

"We are in the process of acquiring an icebreaker ship for carrying out exploration in the polar region. We have the design ready about what kind of ship we need and what facility and labs we need," Nayak said.

"The ship would cost somewhere around Rs. 800-900 crore. We have to go through a long process of approvals and hopefully we will get the final approval by this year. Our estimate as of now is that we should be able to get it by the end of 2016," he said.

While India is in the process of acquiring, China has commissioned a new polar ice-breaker, its second after the Xuelong, or snow dragon.

Besides scientific interests, both India and China have business interests related to mineral resources, fisheries and shorter sea routes in the Arctic.

India has one research station in the Arctic, Himadri, and three in Antarctica.

Explaining India's interest behind buying the ship, Nayak said: "This signifies that we are serious about studying changes in climate change happening in the polar regions. Right now for experiments, we hire or charter the ships from private parties in Russia and Norway for short durations."

"Scientists have to collect a lot of data to study the changes happening in the region. With this ship you can take long cruises as it has a capability of 45 days' endurance and cut through not very thick but 1.5-2 metre ice. If you have thin layer of ice you can cut it and go there and take measurements," he said.

Indian scientists can then carry experiments like studying change in the ocean temperature and how the temperature and salinity vary in different areas.

"Based on that you can find the structure of currents in the ocean and how it has changed during the course of time," he said.

The ship can be used in North Pole and South Pole as both have opposite summer season, he said.

"Basically the idea is that we should be able to use the ship round the year and if you can't use it round the year, then investment is not justified. So we can use the ship for six months in Antarctica and for the same period in the Arctic," he said.

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Re: India's Shipping Sector

Postby Peregrine » 17 Jun 2013 23:51

India helps save 26 crew from sinking ship near Yemen

In a humanitarian gesture, the Indian Coast Guard (ICG) Mumbai, coordinated operations to help rescue 26 sailors from a massive container vessel which snapped into two and sank off Yemen, a top official said here Monday.

The incident happened early Monday, when the hull of the 316-metre-long cargo container ship - MV Mol Comfort - broke into two and the crew was forced to abandon it, said ICG Mumbai Commander S.P.S. Batra.

The tragedy occurred around 200 nautical miles from Yemen, and around 840 nautical miles west of Mumbai.


Cheers Image

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Re: India's Shipping Sector

Postby Bade » 14 Aug 2013 22:33

Sailing successfully through a sea of change


Image
While the strategic location of the city on the global maritime map has contributed its bit, Kochi can now bask in the light of the shipyard’s latest achievement. The achievement was fraught with many challenges, which the employees of the yard overcame with courage and dedication.

The main factors behind the CSL achieving its current stellar status came with the adoption of the right product mix, catering to international clientele and its entry into the Defence sector.

The shipyard, which has 1,300 people on its rolls and 2,500 contract workers, has exported vessels to clients in countries such as the U.S., Saudi Arabia, Norway and Abu Dhabi.
Versatility

The shipyard’s versatility is reflected in its capacity to switch from offshore supply vessels to aircraft carrier with consummate ease. At present it is building 20 ships for the Indian Coast Guard, three offshore support ships for international clients and a buoy tender vessel for the department of lighthouses and lightships.

Union Defence Minister A.K. Antony on Monday said the shipyard had made great contributions to Indian commercial shipbuilding. But the achievements did not come without pain, said Thampan Thomas, veteran trade union leader. His association with the shipyard dates back to 1964 when a combine of leaders, cutting across political differences, fought many a battle to get the Union government to agree to set up a shipbuilding facility here.

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Re: India's Shipping Sector

Postby arun » 15 Aug 2013 08:36

X Posted from the Iran news and Discussions thread.



This seizing of an Oil Tanker of the Shipping Corporation of India Ltd., a company in which the Government of India owns a controlling interest, in international waters, is a blatantly unfriendly act by Iran.

I hope this blatantly unfriendly act by Iran is not met with the usual diffident meekness that the Gandhi-Nehru family controlled Congress party led UPA administration of PM Manmohan Singh is famous for delivering when presented with bellicose actions by countries in our neighbourhood.

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Re: India's Shipping Sector

Postby Bade » 26 Aug 2013 20:14

A month old article, but was not posted here perhaps. Has some useful details.
Air Defence Ship launch will be a big morale booster: Cochin Shipyard Limited CMD
KOCHI: Waves of excitement lap the gates of Cochin Shipyard Limited (CSL) as the shipyard has initiated countdown for a historic mission - float-out of the country's Indigenous Aircraft Carrier (IAC) aka the Air Defence Ship (ADS). Apart from helping India enter an elite league of six countries to indigenously build an aircraft carrier, the ADS will give the CSL a moment to cheer as it becomes the only shipyard in the country (and perhaps in the world) with proven expertise in defence and commercial ship building. This thrill finds echo in the words of CSL's chairman and managing director Commodore K Subramaniam. Excerpts from a free-wheeling interview he gave the TOI:

Your reflections on phase-1 of project IAC?

CMD: Warships are much more difficult to build. The requirements are extremely stringent. Basically warships are designed to go into the harm's way, to sustain battle damage. They must be able to perform even after taking some punishment.

What gave you the confidence to undertake the project?

CMD: CSL started shipbuilding in 1976, we launched the first ship Rani Padmini in 1980. The 80-odd vessels we have made so far, include the largest containers (two Aframax tankers built for SCI, each of 93,000 tonnes dwt), as well some of best platform supply vessels (PSVs) across the globe. But we got the order only because CSL dock could accommodate an aircraft carrier. About 16,000 tonne of steel has been erected in the dry dock in four years, which is a record.

About the next phase?

CMD: The next immediate work is putting the angle deck and sponsons (projections beyond the flight deck), and in 10 months we will finish that. Then we have to complete the entire hull structure, lay all the pipelines, cabling, ventilation trunkings, install all the motors, and switchboards, all these will go on. We also have to do the accommodation as an aircraft carrier is like a floating mini city housing 2,500 people. The next phase we will be completed by 2016.

But the Navy has set a 2018-deadline for you?

CMD: All countries making aircraft carrier take nine to 12 years, between keel laying and delivery. We laid the keel of this in February 2009, and if you are able to finish by 2018, you are actually on par with the Russians, better than the French, and as good as the British. 2018 is challenging deadline, but we will strive to stick to it.

So you are confident to bid for second aircraft carrier?

CMD: Most certainly. We should be the natural choice. Everybody will benefit, the Navy, the country and the shipyard. Anybody else will have to go through this learning cycle again. We are now looking at defence orders till commercial ship building picks up. We have responded to 20-dd tenders of navy, but there is tough competition among Indian shipyards.


But defence minister is of the view that nomination route may not work?

CMD: All the government agencies have to follow the tendering procedure. Private shipyards have lobbied with the ministry asserting that they should not be treated as untouchables (for government tenders). They are arguing that the public sector shipyards should not be given concessions as they will be deprived of level playing fields.

Are you intending to make forays into building of coastal ships?

CMD: We will have to be clear, we are not into boats, we are looking at high-end, high value jobs where our highly skilled manpower can be deployed.

How is your ship repair work progressing?

CMD: Our capacity is to generate a turnover of about Rs 250 crore last year we did even better, we did about Rs 280 crore. We feel ship repair has lot of potentials.

How is your ship building order book placed?

CMD: Right now we have got 25 vessels, including the IAC, 20 fast patrolling vessels (FPVs), worth about Rs 1,500 crore. There is an order for three vessels for a Norwegian owner, they will be Liberian flagged vessels. We also have an order for a vessel for Director General of Light Houses and Light Ships. Altogether these orders are worth Rs 2,400 crore, other than the aircraft carrier.

Any update on CSL's IPO move?

CMD: We need to get government approval. We have started the process. We will need about Rs 500 crore for developing the ship repair facility. We are also looking at a dry dock for rig repair, roughly it will cost about Rs 1,100 crore. I would prefer the equity route for this project as well.

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Re: India's Shipping Sector

Postby Bade » 26 Aug 2013 20:16

The 50-metre-long vessels will be used for patrolling coastal areas, preventing insurgency and protection of fisheries within the exclusive economic zone. The Rs 1,500-crore contract was signed between the Coast Guard and CSL in March 2010 and the remaining vessels will be delivered before 2017, one each in three months after the delivery of the first one.

The shipyard has 25 ships on order, including these vessels, three offshore support ships for Indian and foreign owners, one buoy tender vessel for the Directorate General of Lighthouses and Lightships and the aircraft carrier for the Indian Navy.

Cochin Shipyard to deliver first patrol vessel to Coast Guard in September

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Re: India's Shipping Sector

Postby kish » 09 Dec 2013 22:55

Seems like L&T’s Kattupalli yard got work :D

L&T wins order for six ships worth over $100 million

L&T Shipbuilding Ltd., a subsidiary of Larsen & Toubro Ltd., has won an order from Qatar’s Halul Offshore Services Company W.L.L. for six specialized commercial vessels for a combined value of over $100 million, at least two people briefed on the deal said.
The contract involves building four platform supply vessels (PSVs) and two anchor handling, towing, supply and support vessels (AHTSVs) that are used to support offshore oil drilling activities.
Halul Offshore, fully owned by Milaha, previously known as Qatar Navigation Q S C, is Qatar’s largest offshore support services firm.
In June 2012, Halul Offshore had ordered four commercial ships—two PSVs and two AHTSVs, for a combined Rs483 crore, L&T said in a statement on 8 June 2012. This is the first commercial shipbuilding order executed at L&T’s Kattupalli yard in Chennai.

The website of L&T said that it was constructing 10 ships for Halul Offshore, without specifying when it got the orders for building six more ships from the Qatari firm.
Halul Offshore could not be reached immediately for comment. L&T said it would make an official announcement of the additional ship orders shortly.
The ships are classed with Lloyds Register Group Services Ltd, a global ship classification society, said an executive with the Indian office of the UK-based firm and one of the two persons mentioned earlier. The executive spoke on condition of anonymity because of company policy on speaking to the media.

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Re: India's Shipping Sector

Postby MN Kumar » 27 Dec 2013 23:44

L&T Shipbuilding Kattupalli:

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Re: India's Shipping Sector

Postby Vasu » 31 Jan 2014 08:53

Why India has failed to attract foreign investment in shipping

Thirteen years after India allowed 100% foreign direct investment (FDI) in shipping, not a single global shipping company has used the option to invest and start a shipping company in the country.

There are obvious reasons for this.

The Indian flag suffers from certain barriers in terms of tax and duty structures which have impeded the flow of FDI into the shipping sector.

In shipping, ships fly the flag of the country where they are registered and are subjected to the tax laws of that country.

Global fleet-owners say that India is not a commercially viable place to register ships. India adopted a globally followed taxation system for the shipping industry in 2004 by introducing a tax based on the cargo carrying capacity of ships. The tonnage tax—a regime in which close to 95% of the global shipping fleet operates—pruned the tax outgo of Indian shipping companies to 1-2% of their income, compared with the corporate tax rate of 33.9%.

The tonnage tax is applicable only to those ships that are registered in India and fly the Indian flag.

However, the benefit of the tonnage tax has been negated by the prevalence of a dozen other taxes in India that are not applicable to ships registered overseas, reducing the competitiveness of Indian-registered ships.

These levies include service tax, minimum alternate tax on profit/loss on sale of ships, corporate income tax on other income, lease tax on charter hire charges, seafarer’s tax, withholding tax on charter hire charges paid to foreign shipowners, withholding tax on interest paid to foreign lenders, sales tax/value added tax on ship supplies/spares, customs duty on import of certain categories of ships, stores, spares and bunkers, dividend distribution tax and wealth tax.

Besides, Indian-registered ships lack government policy support or preference to carry Indian cargo. The government does not offer any kind of premium to Indian-registered ships for carrying Indian cargo.


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