india seatrade magazine...import was at 91.44 mt as compared to 114.05 mt during the same period of...

India

Face of the month

C.M. MuraleedharanPresidentAvana Logistek Limited

Point Blank

Anil Devli, CEOIndian National Shipowners’Association

Special Feature

From disruptions to SupplyChain Resilience

Company of the month

Pushpak Logistics Solution

Digital Magazine January 2021 I Volume 5

EDITORIAL - From the ChairmanIndia

2 I India Seatrade I January 2021 www.indiaseatrade.com

DFC a game changerfor trade

ndia’s quest for building rail infrastructure that can help ply

Imodern, high speed and double-stack container freight trains took a giant leap on January 7 with the opening of the 306 km

long Rewari-Madar section of the Western Dedicated Freight Corridor (WDFC).

Having dedicated rail tracks to ferry freight trains has been a long-standing demand of the trade fraternity. It is an irony of Indian Railways that while revenue from freight trains cross-subsidised the running of passenger trains, the former was not accorded the operational priority it deserved for economic reasons.

Freight trains, very often, had to make way for the running of passenger trains given the socio-political nature of Railways, taking longer time for cargo movements. The result was a highly skewed modal mix in favour of road transport despite rail being environment friendly with the ability to transport larger volumes of cargo in a single trip.

The Dedicated Freight Corridor is thus a game changer for India’s trade.

For one, it will provide faster access to national and international markets for the manufacturing units and entrepreneurs at a much lower cost. This will also encourage the speedy development of the last mile connectivity required at various locations.

Faster and cheaper connectivity to the ports of Gujarat and Maharashtra from the northern parts of the country will boost new investment opportunities. It is a milestone in India’s efforts to develop its manufacturing capabilities and to promote exports.

K.Mohandas, IAS (Retd)Former Secretary, Ministry of Shipping, Government of India

India

CHAIRMAN

EDITOR-IN-CHIEF

EDITOR

K. MOHANDAS, IAS (Retd)

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K.N. SUDHEER NAMBIAR

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JAGADEESH NAPA

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India Seatrade Digital Magazine is a free-to-access publication.

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Delivering India as a Leading Maritime Nation

FACE OF THE MONTHIndia


C.M. MuraleedharanPresident

AVANA Logistek Limited

C M Muraleedharan is an Economics graduate having over 28 years of experience in the Shipping & Logistics industry.

He is associated with Transworld group since 1992, successfully handling diverse set of assignments ranging from Liner, Agency and Multimodal logistics.

He has been instrumental in developing the Coastal Business along Indian coast and expanding coastal services network to all coastal states in India - from Gujarat to West Bengal covering all major ports.

He represents maritime / coastal trade in the various associations such as Treasurer - Steamship Agents Association - Kandla and Vice President - Container Shipping Lines Association Kandla / Mundra.

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FACE OF THE MONTH


This month, we have an industry veteran and one of the dynamic executives in coastal shipping as the Face of the Month. CMMuraleedharan, President, Avana Logistek Ltd, speaks to IndiaSeatrade on his contribution to the coastal shipping industry and how it has evolved over the years. Readtoknowmore.

Qyou have been associated with theTransworld Group since 1992. How doyou re� lect at your journey with

Transworld?

My journey as a proud member of the Transworld Group family started in 1992 in the operations and documentation department at Kandla. With hard work, con�idence and appetite to do something more and always ready to take additional responsibilities, I was given various opportunities to work with different companies and locations within the group.

A 28-year long journey with the group has today led me to head one of the largest and renowned business divisions of the Group – Avana Logistek Ltd. The extensive and long association with the Group has made me con�ident to take any challenging position where I can use my extensive experience and knowledge to help achieve the management goals.

As I re�lect upon these 28 years, I have learnt that there are no shortcuts to success. Hard-work, self-belief, patience, striving for excellence and perseverance are the key ingredients for personal and professional growth. It is very important to

align our core values and goals with that of the Company.

Change is constant and adapting to the change will be the key to success in any organization. Transworld Group has always been adapting to changes and evolving with changing times.

QYou have played a crucial role indeveloping a coastal network across allthe coastal states in India. How do you

thinkcoastalshippingisbeingreceivedtodayascomparedto�iveyearsago?

T h e c o n c e p t o f c o a s t a l s h i p p i n g a n d containerized movement through coastal shipping was at a very nascent stage in India when Transworld Group entered this domain during 2001-2002. The awareness, acceptance and bene�its of coastal shipping was not known to all the potential users and customers. Not all industries (both private and Government) ever realized and embraced coastal shipping in those days.

We have done lot of work not only for our company, but for coastal industry as a whole by investing in infrastructure, deploying more ships

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/ tonnage, connectivity between almost all major ports of India, offering integrated / door-to-door logistics solutions to customers and also representing to government at all possible opportunities to emphasis on the bene�its of coastal shipping. We now see that coastal shipping has been widely recognised as a sustainable and ef�icient mode of transport with exponentially growing volumes.

The Indian coastal container trade, though still nascent in terms of volumes, has grown rapidly in the past four to �ive years, vis-a-vis EXIM

container volumes. While overall container volume clocked ~7% CAGR between �iscals 2014 and 2019, coastal container traf�ic registered 25-30% growth. Most of the major business houses, MNCs, government and semi-government organizations have now started using coastal mode for their logistical and transportation requirements. There is a growing number of new customers who are showing interest in coastal shipping.

We also thank the Government of India, the Ministry of Ports, Shipping and Waterways for taking a keen interest in the development of coastal shipping through various initiatives.

Having said that, we must and can do a lot more in this regard as we are moving only 7% of cargo through coastal shipping as compared to 28% to

43% in developed countries.

So, we have a lot of catching up to do and I am sure that with the concerted efforts of all of us, our peers and the Government, we are con�ident of increasing this number to the fullest potential.

Q How are the coastal shipping volumesfaring in the Post- COVID times? Anytrends that you observe? Any new

challengesthatyoumayface?

We are fortunate to have been the least impacted by pandemic except for a couple of initial months. We have seen our volumes intact or rather growing during COVID period.

Pandemic / Covid-19, on one hand, created de�inite issues in terms of lockdown and slowing down the economy. On the other hand, on the positive side, it opened a new dimension to life, new channels of doing business, new avenues for growth. It is known that every adversity brings some opportunity, and it holds true in our case. After drivers abandoning trucks on highways and goods trains halted on their tracks, it was only coastal shipping that was providing consistent transport service facilities at their fullest capacity. Many companies who never used coastal shipping earlier, have started to realize its importance. Now we see them as our regular customers. Lot of commodities, especially agri and essential commodities were diverted into coastal shipping from other modes of transport during COVID lockdown period.

QWhatareyourviewsonthedraftcoastalshippingbillcirculatedbytheministryofports,shippingandwaterwaystooversee

thatcoastalshippingsector?

This is a much-awaited step taken by the Government of India for the promotion of coastal shipping in India. It will not only encourage domestic participation but also help us to adopt regulatory framework and benchmark with global practices. The proposal for a national coastal and inland shipping strategic plan within

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two years from the date of commencement of this act is great initiative.

Q In the draft Merchant Shipping Billpreparedtoreplacetheexistingact,thegovernment has proposed to regulate

shippingfreight.Doyouthink,itwillservethepurpose?Shouldshippingberegulatedandisitpossible?

We have our own reservation in regulating shipping freight. The freight should be decided on demand and supply. Freight rates are also a bilateral agreement between the merchant and the shipping line. It would, therefore, be not right for the Government to regulate such private business transactions.

In my personal view, the Ministry of Shipping can form a committee led by DGS / NSB and stakeholders in the maritime sector to identify and examine the grievances of trade and submit its recommendations.

The Ministry of Shipping can accordingly review

and take a decision based on the consensus among the stakeholders such as shipping lines, EXIM associations and trade bodies.

Q As a shipping and logistics industryveteran,whatcanandshouldbedonetoovercome the equipment shortage and

turnaroundtimeofemptycontainers?

As per industry reports and survey agencies, the equipment shortage has more to do with disruption of empty container supply chain and due to imbalance of import and export volume, blank sailings which were as high as 30% in Q2 2020. These factors were responsible for the current shortage of empty containers.

Lower imports automatically translate into a lower number of containers coming into the country. On the other hand, Indian exports are slowly recovering to pre-pandemic levels. India's exports in terms of volumes grew 24 percent in July to October, while imports fell 28 percent compared to the same period in the previous year.

Ramping up production of new containers in India, restoring supply chain of empty boxes, faster turn-around and lesser free days at destination ports are some of the immediate measures that are needed to overcome this demand.

QMediareportsmentionedthatfeederingservicestoandfromColombohavebeenreducedby50%inview oftheongoing

ColomboPortCrisis.HowthisaffectedAvanaLogistek's business? Have you adopted anyalternativestrategiestoovercomethis?

The crisis has affected one and all but since Avana's exposure to Colombo port is not much, we have not faced much disruptions in our business. However, due to shifting of main line vessels into Indian ports, we have observed congestions in Indian ports, which has resulted in berthing delays of regular service vessels at all terminals in India. The Colombo port crisis has disrupted our schedules/services in the last couple of months

and has resulted in reduction in number of calls due to slow turnaround of ships and subsequently incurred huge extra operational costs.

It is worth noting that the shipping business is getting very volatile and dynamic post pandemic and one must be always ready to face any situation keeping alternative strategies and back up plans in mind.

Q What isyourcommenton theshippingfreightratesthathaveskyrocketedinthelast few months? As a container liner

servicesprovider,howdoyoujustifythis?

The freight rates are purely driven by demand and supply equation and space availability on the ships. The shipping lines have been sailing through tough times in the past offering freight levels way below their cost to somehow survive challenging times. With charter rates going up, container lease rents and container purchase cost increasing day by day and no respite on port / terminals tariff, the shipping lines are forced to restore or increase freight to cover these costs.

Q1 & Q2 of 2020 were marred by blank sailings and under-utilization of ship space, import laden boxes lying uncleared, waivers in detention income etc that had badly affected their revenues and therefore with increase in demand, shipping lines will have no option but to increase freight rates to cover losses incurred in the past and to mitigate current situation of high charter rates, equipment leasing and procuring costs.

QWhatimpactwouldtherecentDPworld'sacquisition of Avana have on yourbusinessintheshorttermaswellasinthe

longterm?

The strength of Transworld Group and Avana lies in strong customer relationship, local expertise and network across the Indian sub-continent which has allowed us to deliver an ef�icient product to the market.

Transworld Group recently announced a strategic

partnership with D P World and its subsidiary Unifeeder Group, with the aim to strengthen its position as a leading shipping and logistics conglomerate. DP World and Transworld group have always enjoyed a fruitful partnership over the years and we are excited about this strategic partnership as we build out our vision to become a global supply chain solutions provider. The aim is to boost regional trade solutions connecting a wide range of ports in the Middle East, Indian subcontinent and Far East. This deal further strengthens our position in the global market, especially the fast-growing Indian sub-continent and Asian markets.

QHowdoyouseecontainershippingasanindustryfaringin2021?

With all the indications and projections, the shipping industry is surely going to bounce back strongly. The global shipping industry will be at the forefront of efforts towards a sustainable recovery, as a vital enabler of the smooth functioning of international supply chains. It is expected that maritime trade growth will return to a positive territory and expand by about 4.8% in 2021, assuming that world economic output recovers in this period. But it highlights the need for the maritime transport industry to brace for change and be well prepared for a transformed post-COVID-19 world.

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9 I India Seatrade I January 2021

Indian seaborne trade has grownmanifold overthedecades,butthesamecannotbeconsideredastrue in case of the growth of Indian shippingtonnage.TherehasbeenanunusuallyslowgrowthintheIndiantonnageascomparedtoothernationsthathaveconsiderableseabornetradeandthisisattributed to various factors. Let us hear thisstraight from the man who represents theassociationof shipowners –MrAnilDevli, CEO,Indian National Shipowners Association. Hespoke to India Seatrade on various issues liketonnage,cabotage,coastalshipping,etc.

Q Inviewofthegrowingdomestictrade,isthepresentIndiantonnagesuf�icienttohandlethisgrowthincargo?

The question is not whether there is suf�icient tonnage to handle growth, the real question here is whether there is enough cargo that will spur investment and growth in Indian shipping.

Q ThenewdraftMerchantShippingBilltalksaboutincreasingIndiantonnage.Whatstepsmustbetakenaccordingto

you to create the right environment toincreasetonnageunderIndian�lag?

There is one single step that the government needs to take to increase tonnage and that is to remove all policies which makes Indian shipping un-competitive. Solely due to the policies of the government, Indian ships, currently, are less competitive and are unable to compete with

foreign ships. In fact, it makes the so-called “Right of First Refusal” (ROFR) of little use to Indian ships and unless Indian ship operating becomes competitive, nothing will increase Indian tonnage.

Qwhat is INSA’s view on governmentproposaltoregulatefreightrateaspartofthenewmerchantshippingact?

Where is the proposal to regulate freight? There is nothing in the wordings to suggest that it 'regulates' freight. The clause requires a service provider to 'specify the all- inclusive freight in the bill of lading or any other transport document'. We see that there is an option to provide it on any other transport document. All Indian �lag container service providers follow such practices and we think it is incorrect to refuse to provide this information and the same need not be in or on the bill of lading.

Q When do you think the containerfre ight rates can be s table andconduciveforthetrade?

The current problems are cyclical. Given the fact that China was ahead of India in production recovery in the post-COVID period, they began

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Precise, Direct and On the Target

producing and exporting in right earnest. This led to a surge in �lows of cargo from East to West. Freight rates ex-Far East / Chinese ports have multiplied. Container shipping lines �inally found themselves in a very good position, given that demand for space has far exceeded the supply.

India restricted imports from China, therefore the supply of empties also fell. Indian manufacturing meanwhile caught up and therefore gobbled up all the empties which were available. Presently there is a surge of demand ex-India too. All of this coupled with reversal of other actions taken during the pandemic, (Ex: blank sailings) led to the imbalance. All of this is slowly stabilising and it is my view that the position will even out by the end of �irst quarter of 2021.

Q Port operators are entering into theshipping domain (DPWorld acquiredAvana and Adani is a frontrunner for

purchasing SCI assets). What impact ,according to you, would it bring when portoperatorsalsobecomeshipwoners?Howwillitbene�ittrade?

The thought process is to provide all services under one roof – one-stop- shop as the cliche goes. Until now, it was common practise for shipowners and operators to be in the business of providing terminal operations, ICDs / CFSs. Container ship operators operate container trains and provide landside services. Somewhere down the road, the terminal operators say that it is a two-way street and realised that they could expand their horizons from just terminal operations to providing all sorts of services to their clients. They expanded into landside operations and providing service on seas and waterways was the last link that was missing. That is now being achieved. The end game is control over cargo!

Q What is your take on the currentgrowth of container feedering tradealongtheIndiancoast?

If data has to be believed, there is a minimal or

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almost no growth in the feedering trade on the Indian coast. What has happened is that cargo has been cannibalised. Government ports such as Chennai and JNPT have lost cargo to private ports. Cargo which was being feedered into Colombo, Jebel Ali or Singapore continued to move without any difference at all. Look at ports like Goa, Tuticorin, Cochin, Chennai and Kolkata/Haldia. All that has been achieved by the cabotage relaxation is to hand over a business developed by Indian companies, on a platter, to foreign shipping companies, once again leading container shipowners to wonder whether India has a strategy in respect of development of the container shipping industry.

Q What potential do you see in theShippingMinistry'snewprojectonRo-Ro&Ferryservices?

For a country with a large coastline such as India, RoRo, Ro-Pax and ferry services are a must. These were long overdue and �inally Shri Mandaviya ji has put into motion an exercise that will lead to some actual creation of business. The SDCL's recent effort to create origin-destination pairs, carry out feasibility studies, offer to participate in creating an actionable business plan, equity support, infrastructure support – all of this will help India realise its potential in such services. This will attract investment and in about 10 years, we shall see various such services being operated in cities such as Mumbai and in the coastal states of India. We welcome and congratulate the Ministry and the SDCL on this effort.



ndian exporters are on the losing side of the

Ibargain when it comes to the sharp spike in ocean freight rates seen in recent months.

Though it is a consequence of demand and supply mismatch, it is linked to much deeper issues that need to be resolved on priority. India has a very weak supply-s ide infrastructure in the containerized trade and this lacuna has time and again left the Indian exporters at the mercy of global market forces. Investments are long pending in improving supply chain resilience. Rather than putting the blame on the COVID-19 pandemic or some other crisis, industry experts suggest taking steps towards building India-owned container vessel tonnage (as well as shipping container boxes). This can go a long way in securing supply chain from external disruptions.

OceanfreightOcean freight rate is a function of demand and supply inequalities. The more the demand, the higher the freight rates and vice versa. Here, the word “demand” represents the need to transport goods from one country to another. When an exporter needs to transport goods to his buyer in another country, he is creating demand for (a) shipping containers to stuff the goods, (b) surface

transportation from the factory to the nearest port, (c) Customs clearance and terminal h a n d l i n g a t p o r t o f o r i g i n , ( c ) o c e a n transportation from port of origin to port of destination, (d) terminal handling and Customs clearance at destination port and (e) surface transportation from destination port to buyer's place.

Every export order creates demand for all these components. Nevertheless, it is the ocean freight rates that invariably becomes the hot topic of d i s c u s s i o n a m o n g s t ex p o r te r s a n d t h e government than on other components in the supply chain. Why? Before going into details, let us look at how the Indian exports and imports fared last year.

2020:Theyearthatwas2020 will go down in history as one of the worst years for mankind. The outbreak of COVID-19 brought the entire world to a standstill, resulting in unprecedented losses to the world economy. The exports from countries like India dropped drastically because of the pandemic. Indian exports were literally negligible between March and June. The US and Europe resumed imports from June and the exports that were just a trickle

How weak is the Indian supply chain? Every disruption in the supply chain creates ripples far and wide. The Indian exporters and the trade face the brunt of these disruptions. Is the spike in freight rates just a mismatch in the demand and supply or is there something deeper that needs to be addressed? Jagadeesh Napa

From Disruptions to Supply Chain Resilience

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SPECIAL FEATURE

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Sunil Vaswani

till then, increased considerably and surpassed the expectations in the second half of the year.

Around the same time, the “Make in India” initiatives started bearing fruits of local production – thus reducing the reliance on imports. Pharma, engineering, electronics and leather industries, among others, reduced their reliance on imports and strengthened their production capacities in India. This coupled with the anti-China sentiment made a big dent in Indian imports.

Werecontainersavailable?This created a serious mismatch in the demand for shipping containers and their supply. In case of surface transportation, the time (to match the demand with the supply) is far lesser due to the smaller geographies of operations, readily available infrastructure and faster movement of goods.

However, when it comes to ocean transportation, vessels operate in vast geographies and take considerable time to match the demand created in a particular region. By the time this demand is met, more demand is created.

Shantanu Bhadkamkar, Chairman of ATC Shipping and President of Association of Multimodal Transporters of India (AMTOI), however, felt it is half-truth to say that the mismatch in exports and imports have led to an acute shortage of containers for exports and the resultant increase in freight rates. He opined that empty containers were available but were not allotted as they had been repositioned to some

other place.

Sunil Vaswani, Executive Director, Container Shipping Lines Association (CSLA), feels that as India's imports had always been higher than the exports, there was never an issue earlier with the availability of containers. “During the period July to October 2020 the exports in terms of volumes increased 24% YoY, while the imports reduced 28% YoY for the same period. As a result of this reversal in export-import trend, the shipping lines, which until June / July 2020 used to ship out empty containers from India, had to start repositioning empty boxes into the country and move them inland to demand locations at a huge cost, to help service the trade,” says Vaswani.

Theexporters'perspectiveIrrespective of whether the containers are available or not and irrespective of whether the freight rates are high or low, the exporters (once committed to their buyers) must send their goods within the agreed timelines. So, when the unavailability of containers and raising freight rates come into play, it not only creates a disruption in the supply chain, but also a fear among the exporters of losing their orders and business.

Israr Ahmed, Regional Chairman, Southern Region, Federation of Indian Exporters Organisation (FIEO) says: “Whether it is sea freight or air freight, the increase in freight rates is having an in�lationary impact on the trade. The impact is particularly more in case of low value goods like bulk commodities. Any considerable increase in freight rates can make these exports

Shantanu Bhadkamkar

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SPECIAL FEATURE


unviable. India is comparatively more affected than China due to the current supply chain disruption. This disruption caused by the delays due to non-availability of containers and subsequent increase in freight rates add up to the cost of the products. Thus, Indian products become unviable in terms of costs and unreliable in terms of deliveries,”.

The bottom line is that if the supply chain is affected, the trade is affected; and if the trade is affected, it will not only affect the economy, but also the supply chain in turn. It is a vicious cycle.

Hightimeforsupplychainresilience.

Whether it is the COVID-19 pandemic or some other crisis, the issue of demand and supply and its link to rate �luctuations will always remain. One can, however, look at reducing the impact of these disruptions and �luctuations. From India's perspective, the country is more affected as it is weaker on the supply side assets / infrastructure. India owns negligible container vessel tonnage under its �lag and negligible quantities of container boxes are manufactured and/or owned

Israr Ahmed

by India.

The Indian government acted prudently in securing its own tonnage (tankers and VLCCs for movement of crude and petroleum products) for meeting its energy needs. But, it is not the same for container trade. Today, India has evolved as a large exporter to the Western nations and it is high time the country secured its supply chain from being disrupted due to external forces.

AMTOI's Bhadkamkar reckons that India must build supply chain resilience. “As much as exports are a strategic need of the country, container shipping is also no less a strategic need. Just as we consider oil tankers as a strategic investment for the energy security of the country, container vessels must also be considered as a strategic investment for the supply chain security. We, therefore, need Indian ship owning, Indian container boxes and Indian multimodal transport infrastructure which is seamless in nature. Otherwise, our supply chains keep collapsing with every disruption,” says Bhadkamkar.

CSLA's Vaswani too concurs with the need for India-owned infrastructure. “From the country's standpoint, it would also help if India started manufacturing marine containers within the country. This would assist in the security of the supply chain for exports. As a matter of fact, the government could consider starting manufacture of containers at government shipyards which already have the equipment and the expertise to do so. The government would have to make this business viable, though, through the lifting of �iscal hurdles,” states Vaswani.

securing the supply chains is the �irst step towards building supply chain resilience.

SThough the government is working in this direction, a lot needs to be done to increase container vessel tonnage (whether owned or leased) under the Indian �lag. In

addition, manufacturing shipping containers within India must be taken up on priority. Having suf�icient container vessel tonnage under the Indian �lag will not only provide buoyancy during the times of crisis, but also lend India the power to further strengthen its place in international trade.

Wayforward


India

COMPANY OF THE MONTH

Company of the Month is special feature that puts spotlight on those companies which have demonstrated exemplary performance in their line of business and created a positive impact on the exim and/or coastal trade. In this issue, Gujarat-based Pushpak Logistics Solutions LLP is presented as the company of the month.

Ÿ Pushpak Logistics Solutions LLP's prime mission is to accomplish its tag line “ ”.Think Coastal, Think Pushpak

Ÿ Offer innovative, sustainable, cost effective, energy efcient and high-quality coastal multimodal transportation solutions to customers.

Ÿ Partnering with customers to meet their green and eco-friendly logistics requirements and to achieve the motto of being a “ ”.Perfect Logistics Partner

Ÿ Experienced and Skilled logistics professionals' team continuously innovating towards delivering Economical and Ecological logistics solutions.

Ÿ Mundra - Mangalore - Cochin - TuticorinŸ Kandla - Chennai - Haldia - Vizag - Kakinada - ParadipŸ Mundra - Goa - Mangalore - Cochin - TuticorinŸ Hazira/Pipavav - Cochin - Tuticorin

mission statement

Coastal service routes:

Ÿ Pushpak offers highly reliable and cost-effective, tailor-made coastal multimodal logistics solutions including FCL / LCL

Ÿ Door-to-Door, Door-to-Port, Port-to-Port, Port -to-Door.

Services

Ÿ Our fundamentals are based on Indian coastal shipping - an economic, energy efcient, eco-friendly mode of transport, to design and deliver integrated logistics solutions to all our customers.

vision

Ÿ Move goods using low emission mode “Waterways” Coastal shipping

Ÿ Cost Effective, energy efcient, eco-friendly logistics solutions Ÿ Services available 24X7 and 365 days Ÿ Containerized logistics ensures cargo safety, security and no-

shortages, damages, pilferage etc.


Advantages of coastal shipping:

ushpak Logistics is India's largest company in Coastal PMultimodal Logistics Solutions and runs on belief that every challenge brings true opportunities. Chairman of

the Group Shri Bharatbhai J. Modi laid strong foundation by establishing Modi Minerals Group in late 1970s with key focus on the mining sector. Products such as Bauxite, Limestone & Gypsum were processed in Gujarat and transported to other states.

After successful operations in the mining sector for two decades, Shri Rahul B. Modi took over the responsibility of the entire Group operations during 1990s. His innovative and diversied vision has helped the Group to spread its wings in Indian logistics services sector under the banner Pushpak Logistics Pvt. Ltd. (now known as Pushpak Logistics Solutions LLP).

Pushpak ventured into coastal multimodal logistics operations in 2000, at a time when the Indian coastal shipping industry was still in its infancy. The rst mover advantage helped Pushpak to become the pioneer in coastal shipping industry. Their consistency in delivering high quality services and the resulting brand recognition among their customers have fetched them many awards and accolades from government and private platforms.

Apt to their tagline, , the company Think Coastal, Think Pushpakhas grown to become the market leader in providing coastal multimodal logistics solutions. They believe that the organization can grow only if it delivers more value to its stakeholders than what it is receiving.

Pushpak Logistics provides cost-effective and timely service with an attempt to drive economic growth in an eco-friendly manner. The company has presence in all parts of the country – including north, west, south and eastern regions of India. Their ofces are strategically located at all coastal ports and ICD locations to ensure uninterrupted coastal movements.


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COMPANY OF THE MONTH

USPofPushpakLogistics

In coastal shipping, customers always look at logistics cost. We at Pushpak, not only offer cost bene�its, but also offer additional safety, security, higher reliability and responsiveness. We, therefore deliver greater value addition to our customers. It is for this reason that we are always the �irst choice for majority of the customers.

Competitionandmarketleadership

We believe in complementing than competing. Our people, technology and service processes differentiate us from our competitors. We have developed vast infrastructure and network to cater point to point movements helps us to remain ahead.

We at Pushpak wish to maintain our leadership position in Coastal Multimodal Logistics and hence, we are working towards achieving excellence by use of latest technology platforms.

Long-termplans

We are currently carrying out the coastal shipping potential study for growth from 2020-2030. Our vision for 2030 in coastal trade is to grow multi-

fold in this decade and are gearing up for this “LeaptoLead” inthe coastal trade growth.

We are working on various options to canvass and bring modal shift of cargo to coastal shipping (waterways) mode.To this extent, we are in advanced stage of operating Ro-Ro shipping services on short hauls.Parallelly we believe that more container ships, RO-RO, coastal bulk carriers are required to cater to the growing d e m a n d o f c u s t o m e r s . T h e s u p p o r t o f Government of India, Ministry of Ports, Shipping & Waterways towards coastal shipping will surely lead to better economic growth of our country.

Further to this, we are evaluating to invest in manufacturing of ISO shipping containers in India as part of the“Atmanirbhar Bharat” initiative to support domestic logistics requirements.

JVsandalliances

We understand that modal shift of cargo is very important for growing volumes. To achieve our Coastal Vision 2030 and to maintain our business motto – - we are all “ThinkCoastal,ThinkPushpak” set to initiate suitable joint ventures or partnerships.

RahulModi, Managing Director, Pushpak Logistics Solutions LLP, shares his views on the year gone by and the company's commitment to coastal shipping.

India

BRIEF NEWS


Port NewsIndia”scoalimportdrops17%inApr-Nov

ndia”s coal import declined by 17 per cent to I137.16 million tonne (MT) in the April-November period of the current �iscal. The country had

imported 165.35 MT of coal in the year-ago period, according to provisional compilation by mjunction, based on monitoring of vessels' positions and data received from shipping companies.

mjunction, a joint venture between Tata Steel and SAIL, is a B2B e-commerce company that also publishes research reports on coal and steel verticals. The country”s coal import in November also dropped to 20.35 MT from 21.72 MT in the corresponding month of previous �iscal, it said. “India's coal and coke imports during November 2020 through the major and non-major ports are estimated to have decreased by 6.3 per cent over November 2019,” it said.

Of the total imports during November, non-coking coal was at 13.77 MT, against 15.32 MT imported in the same month last year. Coking coal imports were at 4.28 MT, up from 4.09 MT in November last �iscal. During April-November period, non-coking coal import was at 91.44 MT as compared to 114.05 MT during the same period of the previous �iscal. Coking coal imports were recorded at 28.18 MT, lower than 32.72 MT imported during the same period a year ago.

Cargo traf�ic at 12major ports falls for 9thstraightmonthinDecember

mpacted by Covid-19 pandemic, India's top 12 Iports witnessed a considerable decline in cargo traf�ic for the ninth straight month in December to

478 million tonnes (MT), according to ports apex body IPA.

Cargo traf�ic at 12 major ports that are under the control of the Centre dropped by 8.80 per cent to 477.75 million tonnes (MT) during April-December this �iscal compared to 523.84 MT in the same period last �inancial year.Ports, Shipping and Waterways Minister Mansukh Mandaviya had recently said the cargo traf�ic at 12 major ports declined considerably March onwards due to the adverse impact of Covid-19

pandemic.

All ports barring Mormugao — which recorded a

23.28 per cent increase in cargo handling to 14.53 MT

— saw negative growth.Cargo handling at Kamrajar

Port (Ennore) nosedived 26.60 per cent during April-

December to 17.19 MT, while ports like Mumbai,

Chennai and Cochin saw their cargo volumes dropping

by over 14 per cent during the said period.JNPT and

VO Chidambarnar suffered a sharp decline of over 12

per cent.Deendayal Port reported an 8.70 per cent

drop in cargo volume, while cargo handling at New

Mangalore slipped 6.56 per cent. Paradip Port

recorded a decline of 1.41 per cent.

Paradip Port Trust seeks bids for WesternDockterminal

aradip Port Trust, India's biggest state-Powned cargo handler by volumes, has sought initial bids from private �irms to

build a 25-million tonne (mt) capacity dry bulk cargo terminal estimated to cost ₹2,392.13 crore.

Tata Steel, Adani Ports and Special Economic Zone and Essar Ports are expected to bid for the terminal that will handle all dry bulk, break-bulk cargo, both imports and exports.Potential bidders have time until February 18 to �ile their documents.

The private operator winning the deal will develop, operate and maintain the terminal for 30 years. The task of deepening the Western Dock basin and the navigation channel up to the berths, including the turning circle for handling of Cape size vessels will vest with the terminal operator, according to the bid documents.

The terminal will be built in two phases of 12.5 mt capacity each.The construction period for the Phase 1 will be 36 months from the date of award of concession. The construction work for the Phase 2 will begin from the date the Phase 1 starts commercial operations; Phase 2 will be completed in 24 months.

India

BRIEF NEWS


JNPTlaunchesairqualitymonitoringstationtosecuregreenportstatus

tate-run Jawaharlal Nehru Port Trust S(JNPT) has opened a Continuous Ambient Air Quality Monitoring Station (CAAQMS)

at the port operation centre as it pushes ahead with sustainability goals and secure green port status.

The CAAQMS will monitor real-time air quality parameters like Particulate Matter, Sulphur Dioxide, Nitrogen Dioxide, Ammonia, Ozone, CO, NOx, NO and VOCs.Besides, weather-related data such as temperature, rainfall, humidity, solar radiation, wind speed and direction will also be monitored at the station. The CAAQMS will also generate real-time continuous air quality data, which will be displayed to the public on the large screen. These values will be displayed on the JNPT website for easy access to the public.

The Continuous Ambient Air Quality Monitoring Station will be operated and maintained by Indian Institute of Technology, Madras for the

Adani grabs greater s l i ce o f India' sreboundingcontainer�low

ontainer �low in and out of Indian ports saw Ca strong rebound sequentially in the fourth quarter after crashing at the height of

COV I D - 1 9 - re l a te d s h u td ow n s . B u t t h a t acceleration has unmasked more distinctly what had been an underlying trend for some time — market share elevation for Mundra, the country's largest non-government harbor owned and operated by the Adani Group.

Mundra's combined December throughput soared 52 percent year over year and 21.5 percent month on month, compared with 10 percent and 11 percent, respectively, at Jawaharlal Nehru Port Trust (JNPT), the long-time market leader. By volume, Mundra — encompassing four container terminals — handled 586,952 TEU last month, versus 459,920 TEU at JNPT, according to the latest port �igures.

Besides Mundra, Adani runs container facilities at Hazira, about 120 nautical miles north of JNPT on the west coast, as well as Krishnapatnam, Kattupalli, and Ennore, all of which dot the southeastern coast and directly compete with the Chennai port.


India

BRIEF NEWS


Shipping News

MSCtobegindirectservicefromIndiatoWestAfricafromJan24

o enhance services to customers shipping Tgoods between India and Africa, MSC will begin a new direct service from India to

West Africa, the MSC India Africa Service (IAS), effective from week 3 of January, 2021.

The MSC IAS will provide a direct and fast service to its clients, connecting Northwest and South India to West Africa, with a call at Colombo in Sri Lanka. On the way back, this new service will also connect South Africa directly with the Middle East, Pakistan and India.

The rotation of India Africa Service will be as follows with the �irst sailing from Mundra, Gujarat, on January 24: Mundra – Nhava Sheva – Colombo – Port Louis – Tema – Lome – Cotonou – Cape Town – Durban – Jebel Ali – Abu Dhabi – Port Qasim – Mundra.

Container lines go full throttle with freightdemandbooming

ust over a year ago, businesses that rely on Jcontainer shipping were hit with a surge in canceled sailings as Chinese New Year and a

pandemic simultaneously shocked global trade. The big question now is just the opposite: Will many voyages be blanked at all?

Maersk, the world's leading container liner, will “de�initely” cancel fewer trips than normal during next month's Chinese holiday, according to Vincent Clerc, head of ocean transport at the Copenhagen-based company.

“There are two reasons: Demand for transport is so high that there is enough need for us to load more than we normally do during the two weeks of Chinese New Year,” he said. “The other reason is that we need our ships to sail to bring back containers from the U.S. and Europe to Asia.”

Normally there's enough slack in the system to get containers in Asia, he said in a media brie�ing this week. “But that is not the case now when there's a shortage of equipment in general.”

DemandforChinesegoodsissostrongthere'sacontainershortage

lobal demand for Chinese goods has been Gso strong recently it's creating a shortage of containers and driving up shipping

costs, potentially impeding the nation's exports in coming months.

Exports have been on a tear since July last year, fuelled by pandemic related purchases like medical masks and work-at-home equipment, including computers. Imports haven't been growing at nearly the same pace, resulting in a lack of shipping containers returning to China to be re�illed and sent out again.

That's pushing up shipping costs and raising the price of Chinese goods in overseas markets, which could hurt export demand, according to Serena Zhou, a �ixed-income analyst at Mizuho Financial Group Inc. in Hong Kong.

The “soaring prices for China's outward shipments due to a shortage of shipping capacity will weigh on China's export growth, despite resilient external demand helped by the holiday season and factory lockdowns throughout Europe,” Zhou wrote in a report.


India

BRIEF NEWS

ShippingCorporationof India to tieupwithIWAItostartcoastalservices

tate-run Shipping Corporation of India S(SCI) wi l l co l laborate with In land Waterways Authority soon to commence

coastal shipping services, a company of�icial said on Saturday. The coastal shipping activities will be undertaken by its wholly-owned subsidiary – Inland & Coastal Shipping Ltd.

“We will announce a collaboration with Inland Waterways Authority of India (IWAI) very soon. We are commencing coastal shipping operations,” SCI chairman and managing director HK Joshi said at a virtual event organised by Bengal Chamber of Commerce and Industry.

She said that Inland & Coastal Shipping Ltd, a Kolkata-headquartered company, is likely to start its operation on national waterway-1, the stretch from Varanasi to Haldia on Ganga river. The proposed development assumes signi�icance after another state-run entity, Container Corporation of India, had discontinued its coastal shipping operation, the industry sources said.

Mundra port to charge $20 per person forcrewchangefromFeb

undra port in Gujarat and run by Adani MPorts and Special Economic Zone Ltd (APSEZ) said it will levy a facilitation

charge of $20 per person for crew change. The levy will be collected from February 1.

Mundra port has been a key player in facilitating crew changes for vessels and has been a preferred destination for carrying out such activities, with a fully operational immigration check post, Captain Sachin Srivastava, HOD, Marine Services, said in a January 8 circular to shipping agents/lines.

“To facilitate the same, a nominal facilitation charges of $20 shall be applicable per person for any crew change at Mundra port from February 1, he said.

Logistics News

Cargobyrailsetforbigleap

he opening in March of a stretch of the TWestern Dedicated Freight Corridor (DFC) — a 641-km rail track between Palanpur

(Gujarat) and Rewari (Haryana) — will see large numbers of trucks move from the highways alongside the rail-route to freight trains.

In these roll-on roll-off (RO-RO) services, trucks will be driven on to rail wagons and moved to destinations. Parcel cargo, over-dimensional cargo and container cargo are expected to be the main freight on the western rail link of Dedicated Freight Corridor Corporation of India Limited (DFCCIL).

Container movements between Western coast ports Mundra/Pipavav and the Northern region that ply on the existing Indian Railways track will migrate to the dedicated freight corridor. “The use of RO-RO and road-railers (prevalent in Europe), which can run on rail track and roads, will attract new types of products like white goods, FMCG and e-commerce on to train tracks,” DFCCIL MD RK Jain said.DFCCIL is also looking at building freight terminals in partnership with the private sector.

CONCORspurtsonplantomergesubsidiarieswithitself

ontainer Corporation of India (CONCOR) Cjumped 4.02% to Rs 432 after the company said it is exploring the possibility of

merging its subsidiaries with itself.

In a regulatory �iling issued after market hours yesterday, the company said that it is exploring the possibility of merging CONCOR AIR (CAL), SIDCUL CONCOR Infra Company (SCICL) and Punjab Logistics Infrastructure (PUL) with itself.An e-tender is being �loated for engagement of external management consultant for facilitating proposed merger with CONCOR of its subsidiary companies.

India

BRIEF NEWS


SCR ships 2,700 tonnes of degummed soyafromKakinadatoHaldia

h e S o u t h C e n t ra l R a i lway z o n e' s TVijayawada division shipped 2,700 tonnes of soyabean crude oil on Wednesday from

Kakinada in East Godavari district to Haldia in West Bengal, marking a victory for its marketing efforts to convert road freight into railway freight.

Soyabean crude oil or degummed soya, has been loaded in as many as 49 BTPN tank wagons to be transported from Kakinada New Goods Complex siding in Andhra Pradesh to Haldia dock complex.

Generally, degummed soyabean crude gets transported by road in small quantities which now has been transported in a large quantity by the railways.“With the marketing efforts of the Vijayawada division of�icials, now degummed soya bean has been diverted from roadways to rail transportation,” said a railway zone of�icial.

Pharma industry requests centralised KYCdepositorysystematportstoavoidshippingdelays

he pharma industry has raised concerns Tthat India is facing duplication of KYC work at each port and this is causing a

delay in the shipping of pharma consignment. Therefore, the industry has requested the Directorate General of Systems to establish a centralised depository system and promote ease of doing business.

Presently, Indian Customs and CBIC have enabled Electronic data interchange (EDI) at all ports and Customs of�ices and exporters are free to export from any port of India. However, they need to register with the customs authority for the �irst time exporter KYC when they make their �irst export. Even if one has been exporting for years, as soon as an exporter uses a new port (Sea/ Air), he/she needs to resubmit the same KYC documents.

Govt considers creating bankwith $13.7 bnequitytofundroads,ports

he Centre is considering a proposal to Tcreate a bank to help fund port, road and power projects as Prime Minister

Narendra Modi's administration aims to lift Asia's third-largest economy out of the recession.

The new entity, likely to be part of the Budget announcement in February, may have an equity capital of Rs 1 trillion ($13.7 billion). The existing India Infrastructure Finance, which has a Rs 2,000 crore corpus, will be merged with the bank, they said.

Initially, the institution will be funded by the government, which will later invite investors, sources said. It could be on the lines of state-run National Investment and Infrastructure Fund, which counts the Canada Pension Plan Investment Board, Asian Development Bank and Abu Dhabi Investment Authority among its investors.

GovttoinviteEoIsforstrategicdivestmentofContainerCorporationbymonthend

he authorities is more likely to search Texpression of curiosity for strategic divestment of Container Corporation of

India by �inish of the month, because it pushes ahead with its disinvestment drive within the ongoing monetary 12 months.

Potential bidders shall be invited for buying about 30% stake within the public sector enterprise after the railways ministry brings out coverage for land leasing, which has been the important thing challenge holding again the initiation of divestment course of.

“EoIs should come by the month end… Once the land leasing policy is brought out by railways, we will go ahead,” an of�icial stated, asking to not be named.

The of�icial added that the railways ministry was near �inalising the coverage which can cut back the lease charges by a half and prolong the leasing interval to long-term foundation as a substitute of brief time period.

TPSalimKumarisnewCEOofKeralaMaritimeBoard

Indian Revenue Service (IRS) of�icer T P Salim Kumar assumed of�ice as

the full-time chief executive of�icer (CEO) of the Kerala Maritime Board (KMB).

Salim Kumar was till recently with the Revision Authority of

the Central Board of Indirect Taxes and Customs (CBIC). Prior to that, Salim Kumar was with Cochin Customs, Cochin Central Excise, Service Tax Mumbai, GST Mumbai and Mumbai Customs. Kerala Maritime Board is tasked with the development of ports owned by the Kerala government.

India

BRIEF NEWS


DP World lays foundation stone for FTZ inMumbai

Global logistics company DP World has started construction of its Nhava Sheva Business Park (NSBP) Free Trade Zone (FTZ) in Mumbai. The Rs 1000 Cr DP World FTZ investment comes under the Hindustan Infralog Private Limited (HIPL) joint venture between DP World (65%) and the National Investment & Infrastructure Fund (NIIF) (35%). This venture has been created to invest up to USD 3 billion in ports, logistics and related sectors across the country.

NSBP, a Special Purpose Vehicle, is a co-developer for the Jawaharlal Nehru Port Trust (JNPT) SEZ. The FTZ is on a long-term Lease of 60 years and is located 5 kms away from JNPT. After signing a

Lease Agreement in July and successfully acquiring all permissions & approvals, the company has started construction in full swing.

The gold rated facility comprising of 1 million sq. ft covered storage area with other cargo handling facilities, modern equipment, commercial building, etc., will be completed in 12 to 14 months.

The facility will be equipped with state-of-the-art infrastructure like specialized multi-product and temperature-controlled warehouses, and a container yard with ultra-modern digital & security systems. It will offer round-the-clock customs clearance and value-added services to provide customers a one-stop solution for all their consumption and trading needs.

Its strategic proximity – to the largest container port in India, the upcoming Navi Mumbai International Airport and National Highways – provides quick and direct access to domestic and global markets. It will offer long-term advantages to domestic as well as global traders and manufacturers, by enabling reliable and fast movement of cargo.

Govt. plans to boost rice exports fromKakinada

East Godavari Joint Collector G. Lakshmisha on Tuesday appealed to members of the Rice Exporters Association to increase the annual rice export from 20 lakh metric tonnes to 40 lakh metric tonnes through Kakinada Anchorage Port.

Mr. Lakshmisha assured the exporters of all support and improvement in facilities to increase rice exports from the district.

“The district authorities are ready to provide any assistance to the exporters. The possibilities to export the rice from the deep sea port being operated by the Kakinada Seaports Limits (KSPL) will be explored. The Department of Labour will ensure availability of workers round the clock instead of only during the day to increase exports,” said Mr. Lakshmisha.

India

BRIEF NEWS


Coastal & IWTCentre,BengalgovtandWorldBanksigndealworth$105milliontoimprovewaterwaysinKolkata

he Government of India, the Government of TWest Bengal and the World Bank on Tuesday signed a $105 million project to

i m p r o v e t h e i n l a n d w a t e r t r a n s p o r t infrastructure in Kolkata, West Bengal.

The West Bengal Inland Water Transport, Logistics and Spatial Development Project will facilitate passenger and freight movement across the Hooghly river; undertake spatial planning to improve accessibility in the Kolkata Metropolitan Area; enhance the quality of life of its residents; and contribute to the growth of the state's logistics sector.

Dr. C S Mohapatra Additional Secretary, Department of Economic Affairs, Ministry of Finance stated that “the Inland waterways are now emerging as a cost effective and an environment friendly option for passenger and freight movement. This project will help improve the river transport infrastructure in West Bengal and help in the economic development of the state by connecting the hinterland with markets and job centers in Kolkata's Metropolitan Area”.

306-kmwaterwaytobemadenavigablefromnextmonth

nland water transport, a fuel-ef�icient and Ieco-friendly mode of transportation, will be enabled in 306 km in the State from next

month with the commissioning of the 68-km Vallakadavu-Kollam stretch in the south and the 70-km Kottapuram-Chavakkad stretch in the north.

Already, the 16-km Kollam-Kottapuram stretch of the 633-km West Coast Canal, the main arterial waterway traversing through 11 districts, developed as National Waterway III with Class III norms is navigable. The corridor from Kollam to Kottapuram can facilitate the movement of 350 to 500 tonnes cargo vessels.

Global NewsEastContainerTerminaloftheColomboPortIndiawantsdealsealedasquicklyaspossible

ndian External Affairs Minister Dr. S. IJaishankar is reported to have stressed the need to seal the agreement on the East

Container Terminal of the Colombo Port as early as possible, a Government source said.

The source said it would be done under the new investment model proposed by Sri Lanka. According to the source, there won't be outright sale or leasing out of the terminal to India.

“It will be done under an investment proposal. Sri Lanka will retain majority stakes in the project,” the source said. Also, bilateral discussions focused on modalities for the development of the Trincomalee oil tank farm.

Maersk says European lockdowns have notdenteddemandforshipping

igh shipping rates are set to continue for Hat least several weeks, despite new coronavirus lockdowns in Europe,

boosted by demand for furniture, exercise equipment and home improvement goods, shipping group Maersk said on Wednesday.

A surge in demand from shoppers sheltering at home in a worsening COVID-19 pandemic has upended normal trade �lows and triggered a spike in the cost of moving goods around.“There are simply not enough containers in the world to cope with the current demand,” Maersk's Chief Commercial Of�icer Vincent Clerc told a media brie�ing.

“We don't really see a big change in demand, even with new lockdowns in Europe. The current high container demand will continue at least for some weeks,” he said.

India

BRIEF NEWS


Shanghai port retains crown as the world'sbusiestcontainerportin2020

he 43.5m Teu volume in 2020 represents a Tsmall increase on Shanghai Port's 2019 total container throughput of 43.3m Teu.

Despite the continued Covid-19 outbreak and unstable international trading, Shanghai port maintained a strong performance in the past year. In July and October 2020, the port reported a container handling volume of 3.9m Teu and 4.2m Teu, representing a single month high; Yangshan port area hit a historical record and posted a container throughput of 20m Teu last year.

The container volume for international cargo transhipment at Shanghai port was over 5.3m Teu last year, an increase of 14% year-on-year.The inland container trading volume was more than 6m Teu, an increase of 15% year-on-year, hitting a record high.

Evergreen takes delivery of two 12,000 Teuships

vergreen Line took delivery of its sixth and Eseventh new 12,000 TEU class F-type containerships on December 15. Ever

Forever was built at the Geoje Shipyard of South Korea's Samsung Heavy Industries, and Ever Far was delivered by Imabari Shipbuilding in Japan.

The two new large containerships set sail in good order after the delivery procedures were completed. The ships' 58,000-horsepower main engines are powering the technically advanced vessels to their allocated loading ports on Evergreen's trans-Paci�ic services.

MSCjoinsHydrogenCounciltocollaborateondecarbonization

MSC Mediterranean Shipping Company announced it has joined the Hydrogen Council, a global industry body, as a

steering member to foster cross-sector collaboration that will accelerate R&D related to clean hydrogen derived fuels and solutions.

The initiative is part of MSC’s wider approach to decarbonization which has already seen the company pioneer the use of biofuels as a blended marine fuel and now sees MSC work with others to advance the exploration viability of hydrogen and fuels derived from it as potentially viable fuel sources for container shipping.

“MSC is actively engaging with a wide range of stakeholders to accelerate the development of clean hydrogen fuels for shipping. The future of shipping and decarbonization will rely on strong partnerships from both the perspective of technology collaboration and procurement. There must be a massive injection of energy and capital into R&D efforts to bring alternative fuels and alternative propulsion technologies to the marketplace to decarbonize all industries in the longer term. Initiatives such as the Hydrogen Council provide just the right platform to accelerate R&D, as well as to facilitate cross-industry collaboration,” said Bud Darr, Executive Vice President, Maritime Policy & Government Affairs, MSC Group.

“The future of shipping and decarbonization will rely on strong partnerships from both the perspective of technology collaboration and procurement,” he continued.

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india seatrade magazine...import was at 91.44 mt as compared to 114.05 mt during the same period of...

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