Cochin Port, Shipyard & Vallarpadam ICTT

[vjkrishn]

Container station to be ready by February

The pre-stage facility at the container freight station being set up by Gateway Distriparks Kerala Limited on Vallarpadam is likely to be commissioned by February 15.

The second stage, the warehousing facility, is likely to be ready for receiving containers by August 15, industry sources said here on Monday.

The Union Ministry of Commerce and Industry had approved the project for setting up the container freight station on Vallarpadam island earlier this month. The Union Ministry is learnt to have informed Gateway Distriparks Limited that the CFS project had been approved subject to the ex-post facto approval by the Inter Ministerial Committee.

The container freight station is coming up on 2.58 hectares leased out by Cochin Port Trust to the company setting up the facility at an estimated investment of Rs. 25 core. The land has been leased out for a 30-year period.

The container freight station, when completed, will have 25,000 sq. ft. area, which can house 1,000 TEUs at any point of time once the operations commence.

The container freight station will be fully computerized with electronic data interchange compatibility, this being one of the conditions for the approval of the government approval.

There are proposals for setting up several more container freight stations with focus on the International Container Transshipment Terminal on Vallarpadam Island. Kerala State Industrial Enteprises, a government of Kerala-owned promoter of industrial units, is setting up a 1,00,000 sq. ft. facility near Kalamassery, bordering the National Highway connectivity to the ICTT. The facility will be situated 14 kms away from the container transshipment terminal.

Infrastructures Kerala Limited (Inkel), a government of Kerala promoted agency for infrastructure development, has joined hands with private partners to set up another container freight station on Vallarpadam Island.

The joint venture project will utilise nearly eight hectares leased out from Cochin Port Trust for a period of 30 years.

[Malayaali]

Originally Posted by vjkrishn

Kerala State Industrial Enteprises, a government of Kerala-owned promoter of industrial units, is setting up a 1,00,000 sq. ft. facility near Kalamassery, bordering the National Highway connectivity to the ICTT. The facility will be situated 14 kms away from the container transshipment terminal.

[psanthosh]

Kochi, Jan 17: To tap the trade opportunity at ICTT (International Container Transshipment Terminal) Vallarpadam, Gateway Distriparks (Kerala) Ltd is setting up a container freight station in the vicinity of the terminal to facilitate exim trade in the region.

The first phase of the project will be operational in a month’s time at the 6.5 acres taken on lease from the Kochi Port for a period of 30 years.

Mr M.P. Pinto, Chairman, GDKL, told Business Line that the company has invested around Rs 25 crore which included the upfront fee given to the port for the lease of the land. The second phase will be ready by August, he said.

http://www.thehindubusinessline.com/...cle2807973.ece

[psanthosh]

Kolkata, Jan. 17:


The Union Government is to shortly take a view on two important demands, one raised by a section in the country's port sector and the other by the shipping sector.

The demand of the port sector relates to relaxation of the Cabotage while that of the shipping sector to providing cargo support to the national flag carriers.

Cargo support
“A note on the Cabotage will be placed soon before the Cabinet for consideration,” Mr K. Mohandas, Secretary, Ministry of Shipping, told Business Line here. “As for providing cargo support to national flag, we have before us the inputs provided by shipowners.”

Asked if the Government was considering relaxation of the Cabotage, Mr Mohandas replied, “we're examining the Law Ministry and Attorney General's interpretation suggesting that the coastal leg of the movement of Exim containers should not be treated as coastal trade and, therefore, should not be restricted to the Indian flag only. But then the Cabinet has to take a decision on it”.

He felt that such a change in dispensation would benefit not only Vallarpadam but also help the other container handling ports emerge as transhipment hubs.

Referring to the demand for cargo support to Indian bottoms, he said in addition to shipowners, the major consumers such as petroleum, power and steel companies importing huge quantities of crude and coal, respectively, would be asked to present their views in this regard.

The present slump in the world shipping has hit hard the national shipping. “Perhaps for the first time in 20 years, the Shipping Corporation of India is in red,” he said.

http://www.thehindubusinessline.com/...cle2808905.ece

[Malayaali]

Cabotage rule to be relaxed

Expected to meliorate VICTT patronage



Source: Manorama

[psanthosh]

Relax sabotage for a couple of years until we have Indian Flag ships available for transportation.

Originally Posted by frenchwindow

Relaxing Cabotage law. Very sad and unfortunate. PM himself is telling malnutrition of million of children in India is a national shame. Government on figures telling almost 60% of population (600 Million) are under poverty. Some external agencies telling more than 70% are in poverty. This social disparity is so severe and frustration against corruption at all levels leading to resentment. Why? national wealth is looted by enemies in 2G,CWG,Civil Aviation, Private Ports, Special zones (where even Indian custom's is banned). Shame on us and bad day.

[vjkrishn]

Terminal operator raises box handling charges at Vallarpadam

Contrary to the decision taken by the Kochi port management for not hiking the tariff rates for general cargo for the next three years, the terminal operator, India Gateway Terminal, has effected an increase in container handling tariff both for coastal and exim trade at the ICTT with effect from January.

It is pointed out by the port users that the terminal operator has been given approval by the TAMP to increase the tariff by 3.48 per cent every year till January 2015.

Except for gantry charges and stack movement, the terminal operator enhanced the rates which included ground rent, stack change, empty handling charges and other auxiliary charges.

According to users, the Exim trade has been making various representations in all forums with regard to cost associated with export/import cargo handling ever since shifting of container handling operations to Vallarpadam from the Rajiv Gandhi Container Terminal.

At a time when the port management is not hiking the tariff till March 2013, considering the downtrend in the international trade, the terminal operator is going ahead with the hike which would result in additional cost for shippers, the sources said.

To remain competitive, the trade requested the terminal operator to refrain from any upward revision in tariff both in coastal and exim trade till the international trade stabilises and cargo can absorb rate increase.

current scenario

The current scenario in international trade is so bad that each and every penny spend is hitting the bottom line of the traders, the sources added. When the terminal operator submitted their proposal to the TAMP during 2008 for tariff hike, it was estimated that the throughput at ICTT during April 2011-March 2012 will be 5,88,000 teus and for April 2012-March 2013 will be 6,84,456 teus.

throughput

However, the sources pointed out that the throughput during January to December 2011 was only 3,22,867 teus and as such it is very clear that the terminal will not touch the estimated 5,88,000 during April 2011-March 2012 nor can it touch the estimated 6,84,456 teus during April 2012-March 2013.

Handling charges

The sources also pointed out that the terminal operator from February 2011 had imposed an increase of 54.88 per cent on ship to shore handling charges and another 20 per cent increase on other terminal handling charges on containers.

The sources noted that there was no periodic or pre-determined rate increase in neighbouring ports and any such increase will be taken only after discussions with the trade.

[vjkrishn]

Standoff between Customs, SEZ continues

The proposed Container Freight Station (CFS) is unlikely to put an end to the standoff between the customs and the Special Economic Zone (SEZ) authorities, with the former sticking to their stand on the seals of containers transshipped through International Container Transship Terminal (ICTT) to be verified. As the customs department want to inspect the consignments at the ICTT, the Gateway authorities have refused to permit any such move in the Gateway area.

Last week, the Union government had cleared the proposal by the Cochin Port Trust to set up a Container Freight Station with private participation at Vallarpadam near the ICTT.

One of the main conditions put forward by the Centre government for Gateway Distripark (Kerala) Limited (GDKL) is that facilities for customs should be provided within the CFS. However, the customs authorities said that the issue would not be solved even if the CFS starts functioning as their demand is for verification of seal of containers.

“It is the containers and not the cargo examined during transshipment but only the seals are verified. A detailed examination of cargo is needed only if the seals are found tampered or broken. Verification of seals of containers does not consume much time and this has been blown out of proportion,” said a senior official of the customs Kochi unit.

[Malayaali]

Logistics park needed at port-city

Right logistics helps complete complicated activities in a successful, effective way. When bulk cargo arrives at a port, a logistics plan should kick in immediately.

Conventional freight-handling operations form just one activity. An integrated system should come into play to organise multiple tasks for import or export of cargo when the volumes become huge. Logistics parks cater to the requirement at most international port cities worldwide.

The International Container Transshipment terminal at Vallarpadom has opened up new vistas for the infrastructure industry. Kochi has been billed as a location for emerging container traffic and the new possibilities in the logistics segment are unfolding. The Kerala State Industrial Development Corporation (KSIDC) is planning to explore the possibility through a proposal to set up a logistics park near the terminal.

The concept of logistics park is new, notes a report prepared by the corporation for presentation before prospective investors in the project. The report touches on the foreign trade policy initiatives a few years ago, which conceptualised foreign trade warehousing zones to facilitate import and export.

The objective of the policy is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency. The scheme envisages creation of world-class infrastructure for warehousing of various products, state-of-the-art equipment, transportation and handling facilities, commercial office space, water, power, communications and connectivity, with one-stop clearance of import and export formality, to support the integrated zones as “international trading hubs.” These zones are established in areas near seaports and airports with easy access by rail and road.

Many segments

Logistics integrates a variety of segments, such as information, transportation, inventory, warehousing, material handling, and packaging. The facilities at a logistics park include warehousing, cold storage, multi-modal transport, and container freight stations. Value-added services, such as stacking and labelling, will be available. Those companies that set up operations at the parks need to spend less capital, which, in turn, may help them provide improved services.

The KSIDC proposal is to set up a park on four hectares of land with warehousing facilities and a container freight station. A study conducted by an expert team to assess the feasibility of the project suggested that two hectares be reserved for manufacturers or traders who wish to avail themselves of a common facility as a godown for storing their products or raw materials.

The proposed facilities include a 50,000-sq.ft warehouse for general goods and raw materials and a 30,000-sq.ft cold storage. The warehouse area will be divided into 1,000-sq.ft dividable modules. The container freight station will be spread over two hectares, with separate entry and exit. Storage of laden and empty containers, stuffing of export containers, de-stuffing or stripping of import containers, and examination and assessment of cargo by the Customs authorities are among the activities that are conducted at the freight station. The infrastructure at the station will include a warehouse to facilitate storage of cargo before and after Customs clearance for export and import of containers. The total available space for the warehouses will be 65,000 sq.ft. The administration building will be spread over 10,000 square feet. It will house the offices of Customs, shipping agents, and administrative staff, a strong room for storage of valuable cargo, a bank, and computer room. This building will have three floors with car parking in the basement. A conference room and rest rooms will be provided. The logistics park will have a container yard envisaged to provide 80,000 square feet of paved area for stacking containers.

[vjkrishn]

Vallarpadam ICTT shows negative growth

The Vallarpadam International Container Transshipment Terminal is fast turning out to be a liability for the Cochin Port Trust. The terminal has registered a negative growth of 5 per cent in the first ten days of January, compared to the same period in the financial year 2010-11.

During the first ten days of January 2012, 8,400 Twenty-foot Equivalent Container Units (TEUs) were handled at the terminal, against 7, 965 TEUs during the same period in January 2011.
The total growth rate is just 7 per cent during the period between April 2011 to January 2012, whereas, the average annual growth between 2005 and 2010 was 10 per cent.

The ICTT, which has a capacity to handle 1 million TEUs annually, handled only 2,71,582 TEUs during April 2011 and January 2012, while the volume of containers during same period in the last financial year was 2,53,646 TEUs.
The `3,200-crore transshipment terminal which was expected to alter the development map of Kerala and to give Kochi a prominent place in the global maritime map, was commissioned by Prime Minister Manmohan Singh in February 2011. The terminal is developed and operated by the Dubai Port World. The shipping companies are not showing any interest in Vallarpadam terminal, which has affected the Cochin Port Trust. In addition to the lack of expected income from the ICTT, the port trust has to spend an additional amount of `80 crore annually for maintaining the 14.5-metre depth of its channel. The channel was constructed at a cost of `400 crore with the assistance from the Union Government.

Considering the expense for dredging, the port management is in a fix. Since a huge amount have been spent for capital dredging, the port has to maintain the channel to retain the depth. If maintenance is stopped, the amount spent will be a waste as the channel would be blocked because of siltation.

However, according to the terminal operators, the growth rate is just the opposite. They claim positive growth of 5 per cent and around 3,40,000 TEUs were handled at the terminal during January 1 to December 31, last year.
“The reason for fall in the volume of cargo through ICTT is not the Cabotage law alone, as claimed by the Dubai Port World. Exorbitant and hidden charges for handling containers is also a reason. While the Port Trust is offering concession for vessels despite severe financial crisis the terminal operators should also enhance their efforts for marketing,” said P M Mohammed Hanifa, president of the Cochin Port Staff Association (CPSA).

[Malayaali]

Its the comparison of 1st 10 days of consecutive years. The headline gives a feeling as if for the past year!

[DileepKS]

Read the news carefully

However, according to the terminal operators, the growth rate is just the opposite. They claim positive growth of 5 per cent and around 3,40,000 TEUs were handled at the terminal during January 1 to December 31, last year.

And he is harping on TEN DAYS numbers!! TEN friggin' days!!

We all know where these news items come from!!

[e_arunsid]

Strange Reporting

[mohammedirshad06]

Originally Posted by vjkrishn

Vallarpadam ICTT shows negative growth

The most strangest report ever seen.... Normally we used to compare one month basis with previous years or quarterly, Half yearly and finally annually....

But never seen comparisons based on days, that too first 5 days or first 10 days etc.....

The intention is hereby proved well

[vjkrishn]

Originally Posted by mohammedirshad06

The most strangest report ever seen.... Normally we used to compare one month basis with previous years or quarterly, Half yearly and finally annually....

But never seen comparisons based on days, that too first 5 days or first 10 days etc.....

The intention is hereby proved well

The reporting is indeed strange, we cant compare performance based on days. But yesterday other newspapers were also having similar reports. Not only ICTT even established ports are not able to achieve their yearly target because of economic slow down. Slow down has started to affect the shipping industry and many operators are operating on loss as the charter rates have gone down while operating rates have gone up.

I think the main problem with ICTT is the higher container handling rates and tariffs. DP world is an established port operator and I dont know how they have come up with such strategies. ICTT have just started operating and to compete with the established ports the handling rates should have been kept low. once you are established and have attracted good business then the rates could have been increaed. You can have a port 50 nautical miles away from the shipping route or a port with the deepest draft, but if operating cost is less in another nearby port obviously a ship operator will take his ship to that port. I think to compete with colombo DP world has to come up with better marketing and plans.

Cabotage rule should also be relaxed. what is the point in having a transhipment hub when the cargo offloaded in the port takes days to reach the customer. If cargo offloaded in Colombo takes less time to reach the customer in India why he should send the cargo to ICTT from where it takes more days to reach the customer.

[Malayaali]

Aegis confident of transforming bunkering business in India

Bunkering in India, traditionally a monopoly of government owned companies such as Indian Oil, Bharat Petroleum, Hindustan Petroleum, etc., is seeing private operators making entry with plans to divert much of the business from the neighboring overseas ports in a big way.

However, when Chemoil joined forces with Adani Enterprises and opened bunkering business little over a year ago the incident passed off almost unnoticed. But now another major player Aegis Group has secured the approval from the Director General of Shipping and launched its Marine Products Division with plans to make a spectacular entry into the business clearly indicating the vast scope and the transformation likely to take place in this field.

Aegis has 2 operating terminals in Mumbai, 1 in Kochi and 1 in Pipavav (Gujarat). In Mumbai, Aegis owns and operates a state-of-the-art 20,000 MT refrigerated Gas Terminal, through which it has been importing, marketing and distributing annually about 400,000 MT of bulk LPG and Propane to many customers in the Western Region including the NOC’s, apart from retailing its branded “Aegis Autogas” through its ALDS.

“We are the largest importers of gas into India totaling 1 billion tonnes per annum,” said Anish Chandaria, Managing Director & CEO of Aegis Logistics Limited. “Since we have the infrastructure at the ports we decided on diversifying and supplying fuel for the ships coming into the ports ourselves. At the moment we are going to start supplying bunker at Mumbai port. Next we will also supply from Kochi port in South India and later at Pipavav and Haldia ports.”

In Singapore, Aegis has a subsidiary supplying bunker to a large number of their clients. But the typical work is done in India. Aegis is targeting large volume for 2012 – 13 in India and is confident of achieving over $ 100 million turnover.
“We can prove to be more attractive than Singapore,” assures Mr Chandaria. “The scope for bunkering is immense because India is on the map for ships. Even today many ships from China go via Sri Lanka that is because the ports here are underdeveloped and problem of demurrage, etc still exist. But at Pipavav we can actually offer good terms to ships if they pick up bunkers from India. We are confident of making that turnaround and eventual make a break-through in bunkering.”

[vjkrishn]

Kochi Port plans to issue more stevedoring licences

With a view to attracting general cargo to the port after container operations were shifted to Vallarpadam, the Kochi Port plans to issue more stevedoring licences.

A communication issued by the port said that Quay 8 and 9 of the Ernakulam wharf offered up to 12.5 metre draft and full rake loading facility. These facilities can be leveraged to attract more cargo by companies capable of utilising them.

At present there are nine stevedoring companies, which have obtained licence from the Port Trust. However, only five of these companies are now active in the field. Under these circumstances, the Port plans to issue more licences to companies capable of using the port’s facilities.

[Malayaali]

Kochi's bunkering prospects brighten

Bunker sales out of Kochi is expected to touch a lakh tonnes during the next financial year, thanks to favourable circumstances including reduction in sales tax on bunker supplies by the State government and the Cochin Port Trust's concessions to vessels coming on bunkers-only calls.

A recent review of the bunkering prospects for Kochi said that the bonded fuel oil price in Kochi Port is hugely competitive and it is lower by around $ 30 to 40 per tonne in comparison to the immediate rival Colombo Port.

The review said that the bulk carriers calling at Goa and Mangalore, and in some cases, even some of those regulars at Colombo, are now turning to Kochi for quality bunker supplies.

The players

Bharat Petroleum Corporation and Indian Oil Corporation are engaged in bunker sales out of Kochi, with the former emerging as a major player with its refinery having a capacity to process 1,90,000 barrels per day. The BPCL offers fuel oils compliant with the latest international standards, with Sulphur content less than 3.5 per cent, which even the established bunkering hubs are yet to catch up, the review said.

The BPCL has also been offering highly competitive spot prices linked to Singapore quotes and now supplies deliveries on a 24-hour basis.

Constraints

However, the review said that the bunkering service out of Kochi was constrained by the limited bunker barge fleet operating in the Kochi port. Existing bunker suppliers are finding it difficult to cope up with the robust demand from vessels, especially those on the outer routes.

The review also pointed out that the large bulk carriers calling at Mangalore and Goa ports have started giving orders to the tune of 1,500 to 2,000 tonnes in a single stem at Kochi. Due to the non-availability of grade fuels at these ports and the acute shortage of supply barges, bunker suppliers are unable to meet the full requirement.

The growth opportunity is likely to attract more bunker suppliers in the near future while others are looking at both barging and trading.

[Malayaali]

Some Vypin clicks









Source: vypeenchurch.org

[Malayaali]

Indian hub terminals need to reduce charges

Charges in Indian ports are very high compared to international hub ports such as Colombo, Singapore, Dubai and Salalah. Most private terminals operating at major ports such JNPT, Chennai and Cochin are levying high charges and it is forcing many Indian exporters to tranship their cargo through foreign ports.

It works like this: An exporter from south India, for instance, could send his US East Coast-bound container through any feedering port (any minor port) to Colombo, from where mother ships will pick it up for the final destination. It may take a couple of weeks more in transit compared to less than a month taken by a direct service from Nhava Sheva (JNPT), but the exporter will save on freight. For exporters who dispatch thousands of containers every month, it means good saving.

The following figures tell us a story. Colombo Port, which handles around 4 million containers annually, manages to do so with the help of Indian cargo. More than half of its total throughput comes from India. Colombo, which doesn’t have any substantial domestic cargo, is now expanding its capacity three times to 12 million, with four new terminals that are going to be operational beginning next year, all eyeing Indian cargo. Deep draught (depth) of 18 meters to 24 meters will help them attract mother ships carrying 12,000 containers, giving Indian exporters and importers the benefits of high economies of scale. In India, we do not have any port offering 18-metre draught today. The largest container port at Nhava Sheva is still struggling with 11-12 meters. A dredging project, which is expected to deepen the Mumbai shipping channel to 14 meters in first phase and then, 17 metres in the second phase, is hanging fire for 3-4 years. Once dredged, the freight for each container shipped out of / into JNPT is likely to move up, if the port decides to recover the huge dredging cost that is pegged at Rs 1,500 crore for phase I.

Kochi’s international terminal by DP World, the only transhipment terminal in India, has raised a serious issue. Much before the terminal went operational in February 2011, the Cochin Port Trust board had announced that the terminal would offer competitive rates in comparison with international ports in the South / South East Asian region, and that the vessel related charges would match the tariff at the regional ports. DP World had also announced its decision to match the international hub ports in the region on the terminal handling charge (THC) for transhipment containers. But all that seems to have gone with the wind.

A group of seafood exporters, who took up the issue of high THC at Vallarpadam (Kochi) to the court, is fighting a long battle with the non-transparent system of fixing THC by shipping lines and their agents. They have blamed lines and agents for a steep 125 per cent hike in THC to Rs 18,500 per refrigerated container (reefer) at the terminal, more than double the Rs 8,300 rate fixed by Tariff Authority for Major Ports (Tamp). Lines and agents are apparently charging rates other than what has been notified by Tamp under the guise of THC.

Globally, THC is charged by shipping lines or their agents to recover from shippers the cost of paying the terminal operator for loading/unloading the container and other related costs borne by the line at the port of shipment or destination. But obviously, if the charges are steep, exporters have a right to question it. Interestingly, shipping lines and their agents at the terminal have refused to cooperate with the new system of direct billing of THC introduced by the terminal, after a court directive.

It is indeed the duty of ports to ensure that the lines and terminals stay away from fleecing customers. Such acts would only make our exports non-competitive in the international market. While international ports like Colombo will gnaw into India’s growing maritime trade, our hub ports would struggle for survival.