CTL-IMEX focuses on Empowering Growth

The two-day International Conference on Ports, Cargo and Logistics – Powering Economic Growth : Logi(Sti) Cal Approach held at the Bombay Exhibition Centre, Mumbai on 29th and 30th January, 2009 made a significant contribution to identifying the factors in the present scenario that could be leveraged in the current economic down trend. Jointly held by the Indian Merchants’ Chambers and Fairplay Group, the conference coincided with a three-day exposition held at the same venue where impressive displays were put up by exhibitors in over 70 stalls.
Inaugurating the Conference and Exhibition on 29th January, Dr Ashwani Kumar, Union Minister of State for Industry, the chief guest at the function, in his address informed that the Union Government had decided to set up five major coastal terminals exclusively for handling petroleum and petrochemicals.
Six interactive sessions spread over the two days focused on different aspects of the logistics and port sector. Mr Michael Pinto, Former Secretary, MoS, Govt. of India chaired the first session which deliberated on Maritime Infrastructure comprised the following panellists: Mr Ramnath Iyer, Director, CRISIL, Capt. Anand Chopra, Sr. V.P. – Container Services & Mktg., SCI Capt Deepak Tewari, CEO, MSC India & President – CSLA Mr S S Hussain, Chairman, JNPT, Ms Karen Oldfield, P & CEO, Halifax Port Authorit Mr Praveen Agarwal, Chairman, Mormugao Port Trust Mr Arvind Bhatnagar, CEO, Gateway Terminals India Pvt. Ltd.
It was observed that the falling freight rates and a lack of appropriate connectivity at major ports were deterrents for new investors in this area. Optimal capacity utilization was another important area where much could be done. In the Indian context labour issues were affecting port productivity and needed to be resolved sensitively. The approach taken at the managerial level was critical to deciding how port infrastructure projects were to be financed. If adequate port infrastructure was not in place, the costs to industry as a whole would rise both nationally and internationally.
The second session focused on ‘Attracting Investment to Ports’ and was chaired by Mr D T Joseph, Former Secretary, MoS, Govt. of India. The panellists included Mr N K Raghupathy, Addl. Secretary & FA, Ministry of Food & Public Distribution, Dr A K Chanda, Chairman, Kolkata Port Trust & Chairman, IPA Mr Luc Arnouts, CCO, Antwerp Port Authority Capt Suresh N Amirapu, GM, PSA Chennai International Terminals Pvt. Ltd. Mr S G Shyam Sundar, M.D- IDFC Private Equity Mr Ganesh Raj, Sr VP & MD, DP World Subcontinent.
During the past five years, very little investment has flowed into Indian ports and a simplification of procedures on the part of the government needed to be put in place urgently. Bureaucracy and red-tapism tends to put off potential investors and hence needs to be immediately curbed. Capacity, connectivity (especially with the railway) and efficiency are the main determinants of attractiveness for investments in the port sector. However, for those wanting to invest, any time is a good time and market forces alone can ensure that the ultimate consumer does not get cheated. However, in the Indian port investment area, the PPP concept needs to be looked at again.
Mr Atanu Chakraborty, VC & CEO, Gujarat Maritime Board chaired the third session on ‘Role of State Government in Development of Non-Major Ports’. The panellists which included Dr Jose Paul, Ex Chairman - JN Port, Mumbai & Mormugao Port, Prof G Raghuram, IIManagement, Ahmedabad, Mr Sudhir Srivastava, CEO, Maharashtra Maritime Board, Mr Atul Kulkarni, CEO, Chowgule Ports & Infrastructure Pvt. Ltd. Mr Rajeeva Sinha, Director, Mundra Port & SEZ Ltd. felt that private sector ports are essentially “green field” ports.
The discussion centred around the several projects that have opened up which are proving to be counter-productive, and at the same time it was noted that too few projects leads to monopolies. In many Indian port projects, the clauses are being experimented with and their essential spirit is being distorted or forgotten. This attitude has to change. When efficiency of a port rises the shipping costs decrease and vice-versa. We need to build the right kind of human resources for developing logistics infrastructure.
The panellists at the first session of the second day discussed ‘Logistics’. Chaired by Mr Mark Fernandes of Silvester & Co and Chairman of Shipping & Aviation Committee of IMC, they felt that cargo not cleared within 30 days should be auctioned. Besides, the STP (Shipping Trade Practice) Act should be abandoned since it is not serving its purpose. Investment in logistics infrastructure is essential and we have to learn to look bigger and bolder and invest more proactively. We need to connect the coastal railways (particularly the Konkan railway) with the railway system in Central India. Individuals with adequate training and knowledge need to be created for warehouse management and the handling/packaging and stowing of chemical products.
Those who contributed were Mr Ajay Khera, Vice Chairman & MD, Horizon Country Wide Logistics Ltd., Mr Tushar Jani, President, AMTOI Mr Dhritiman H, Tuscan Ventures Mr R K Rubin, M.D. – Transcon Freight System Pvt. Ltd. Mr Paul Bradley, President - Arshiya International Limited, Mr Bharat Joshi, Director, Associated Container Terminals Ltd. and Mr Sudhir Srivastava, CEO of the Maharashtra Maritime Board.
The session on IT noted that as far as customs processing goes (particularly at Nhava Sheva) the time taken is very short since they are highly competitive internationally. A risk-management system was developed by the government three years ago and introduced at Nhava Sheva. For registered clients, there are now many facilities. Stamp duty procedure is also simplified. Customs time has been cut by half. About forty percent of delayed time is due to wrong filing of documents. Container terminal operations are automated. Real time data is available on the website. There is a GIS for land management.
Connectivity is critical for the smooth functioning of multimodal transport when it came to productivity was the consensus of the last session chaired by Mr K Sathianathan, CEO, ETA Freight Star. The larger the hinterland, the better the connectivity required, for speed and efficiency of cargo movement. Private operators have committed investments to the tune of USD 250 million. The logistics supply chain has two sides – customer and capital. Both need to be considered carefully. Indian railway has not been able to deliver what the ultimate consumer wants. The extent of this clarity will determine the quantum of investments flowing into this field.
Mr Anil Devli, Mr Sankalp Shukla, MD & CEO, Inlogistics, Mr S K Shahi, C & M.D., SKS Logistics Ltd. and Mr Mahendar Puri, Director & CEO, Hind Terminals Pvt. Ltd. constituted the panellists of this last session. As the event came to a close it was declared that Sahil Freight Express were the winners of the “Best Stall Award” for the second time in succession.