Monday 28 December, 2009

Pirates attack two Indian vessels

The Directorate General of Shipping received information that two Indian vessels have been hijacked by pirates in December. The pirates had taken control of “Lakshmi Sager” on December 11, 2009 for use as a mother ship. “Lakshmi Sagar” was located in position Latitude 06 degrees 51 mins. North Longitude 051 degrees 05 mins. East (450 nautical miles north east of Mogadishu and 90 nautical miles from the Somali coast). There were several armed Somalian observed on board with the standard assortment of weapons including rocket propelled grenades. It was reported that the dhow was heading for Socotra in order to act as a mother ship for a pirate action group.

The Directorate General of Shipping immediately contacted all international and national agencies dealing with hijacking of ships and the All India Sailing Vessels Association for confirmation of the information. The shipping fraternity employing Indian seafarers was also alerted accordingly.

Contact was established with the owner on December 14, 2009 who confirmed telephonically that the vessel was released two days ago. He reported that the crew members were all safe.

On December 21, 2009 the Directorate received a ship security alert from the Indian flagged crude oil tanker M.T. “Maharaja Agrasen” at 2246 hrs. The owners contacted the Directorate and informed that the vessel was under attack by eight unlit pirate boats in position Latitude 17 degrees 11 mins. North Longitude 66 degrees 05 mins. East in the Arabian sea about 366 nautical miles west of Ratnagiri. The vessel, with 41 Indian crewmembers was on a loaded passage with 134715 metric tonnes crude oil from Min Al Ahmadi (Kuwait) bound for Visakhapatnam.

The Directorate initiated immediate action and passed on the information to the Indian Coast Guard and Indian Navy. The vessel was contacted on the phone and it was ascertained that the pirates had not been able to board the vessel due to the evasive manoeuvres by the vessel. The Directorate was in regular contact with the vessel and the owner’s representative by telephone. The owners ordered the vessel to head direct for the Indian Coast.

On December 22, 2009 at 0025 hrs, information was received that the nearest boat was about 4 nautical miles from the vessel. At 0247 hrs. the Directorate received an update from the vessel that no boat was following the vessel and anti piracy measures were being taken. No injury or damage has been reported. The vessel was now proceeding to Visakhapatnam.

Monday 14 December, 2009

Greek-owned Cargo Ship To Be Freed In Somalia

A Greek shipowning company said it had paid a ransom to Somali pirates holding one of its freighters for the past seven months, and the ship's release was expected later December 10, 2009.Athens-based Alloceans Shipping declined to specify the sum paid, but a man claiming to be speaking for the pirates said it was $2.8 million.The Maltese-flagged Ariana was seized May 1 southwest of the Seychelles islands, carrying a cargo of soya from Brazil to Iran.Ukrainian President Viktor Yushchenko said the Ariana's Ukrainian crew of 24 was released Thursday. "A Ukrainian plane will take them to Ukraine very soon," Yushchenko said in a statement.Alloceans Shipping general manager Spyros Minas said the seamen were in good health."We are waiting for the pirates to leave the ship," Minas told The Associated Press. "We hope it will set sail December 11, 2009."In the Somali coastal town of Hobyo, a self-proclaimed pirate who gave his name as Ahmed Gedi said his group had been paid $2.8 million to free the Ariana. It was not possible to independently verify the amount of ransom paid."After we check and count it, we will leave the ship and free it," Gedi told the AP on the phone.Ukrainian President Viktor Yushchenko said Thursday that pirates have released the 24 Ukrainian sailors from the ship Ariana help captive since May 2, 2009. "A Ukrainian plane will take them to Ukraine very soon," Yushchenko said in a statement.

IME – MERI technical paper competition

Institute of Marine Engineers India (IMEI) and Marine Engineering & Research Institute (MERI), has been jointly conducting Technical Paper Competition for cadets from Marine Engineering institutes under Maharashtra region since 2005 to encourage them to showcase their talent. The 5th edition of the competition was held this year on December 01, 2009. Cadets from MERI, Tolani Maritime Institute, Pune and Samundra Institute of Maritime Studies, Lonawala participated in the event. Around six papers were received and upon evaluation of the manuscripts by three judges namely Mr. Suboth Kumar, Mr. T. S. Girish & Mr. Shirish Kumar, Four papers were selected for final presentation at a ceremony held at MERI. Shri R. C. Mahajan - Vice Chairman of I.M.E., Shri Rajeev Nayyer - Honorable Secretary of I.M.E. and Shri Manoj Ballabh were the Judges for the final presentation.

Mr. Rajeeva Prakash - Deputy Director, MERI while welcoming the guests expressed his gratitude and appreciation to all those involved in starting Technical Paper Competition for the cadets.

Mr. M.V. Ramamurthy - President of IMEI graced the occasion as the Chief Guest and gave away the prizes. Shri Kamal Kumar - Chairman of IMEI, Shri R.C. Mahajan and Shri Rajeev Nayyer graced the occasion and encouraged the cadets.

The paper presented by the Cadet Ajey S. Tanwar (B.Sc.-108), Cadet Ankit K. Singh (B.Sc.-118), Cadet Vibhav P. Sharma (B.Sc.-119), Cadet Varun Paliwal (B.Sc.-120) and Cadet Brijendra Singh (B.Sc.-122) from MERI was awarded 1st prize for their topic Ballast water management to prevent pollution. Cadet Akshay Sehgal (G-1945) and Cadet Yash Jain (G-1995) from MERI was awarded 2nd prize for their topic Reduction of SOx and NOx with development of new Marine Diesel Engine (2 stroke). Cadet Ibrahim Nibil C. and Cadet Deepali Kulkarni from Tolani Maritime were awarded 3rd Prize for their topic Hull Protection - A Challenge to coat ship’s hull with non pollutant paints and a group comprising of Cadet Somnath Chatterjee, Cadet Manmath Subudhi, Cadet Savtanter Saini and Cadet Santosh G. from Samundra was awarded the 4th Prize and their topic was Control of NOx & Sox new developments in diesel engines ( 2-Stroke).

Shri Rajeev Nayer summarized the presentations. Shri Kamal Kumar while addressing the cadets appreciated the efforts made by the cadets and promised support to the institute in future also. Shri Ramamurthy, Chief Guest of the occasion praised the cadets for their knowledge and participation spirit. He also the appreciated the services rendered by MERI cadets during WMTC seminar held at Mumbai. The Chief Guest and dignitaries on the dias distributed the certificates to the prize winning cadets and also participation certificates to the other cadets who participated in the seminar. Mr. Ramamurthy personally distributed certificates to cadets who participated WMTC seminar.

Monday 1 June, 2009

Cicek Delivers First of Four 3100 DWT Tankers

The Turkish shipbuilder Çiçek Shipyard has delivered the 3,087dwt double-hull tanker Frecciamare to the Italian shipowner Ciane Anapo Spa. Based in one of Italy's major ports, Augusta, on the east coast of Sicily, Ciane Anapo is part of the Novella Group, headed by Marco Novella, and specializes in coastal tanker and bunker operations.Frecciamare was completed as Chem Flower, the first of four identical vessels now being built by Çiçek Shipyard for its associated shipowning company White Tulip Shipping, based in Malta. White Tulip then sold Chem Flower to Ciane Anapo shortly after completion, leaving Çiçek to make some minor modifications to meet the new owner's requirements.Although Ciane Anapo intends to use this first vessel for bunkering duties, the four ships are flexible, all being capable of worldwide trading, transporting oil products, chemicals (IMO type II) and vegetable, animal and fish oils.MarineLine coatings were selected by Çiçek to give the ability to carry a wide range of cargoes while high manoeuvrability is guaranteed by the choice of twin azimuthing propellers and a bow thruster. They are classed by Bureau Veritas and constructed to meet Ice B standards.According to Berke Çiçek, Vice President of Cicek Shipyard, interest from European owners for such vessels is strong, despite the overall weak state of the shipping market. "New double-hulled vessels such as Frecciamare and her three sisters now under construction are in great demand to replace older tonnage and because we took the initiative to start construction to our own account, the new owners have benefited from an extremely short delivery period. We are talking to a number of other potential owners and charterers and are confident of finding buyers who can secure immediate and profitable employment for these vessels."We were interested to see that Frecciamare's owner Ciane Anapo envisages employing its new vessel in the bunker trades as we had identified this market as particularly attractive. Many bunker tankers are still single-hull and quite elderly. There is a replacement market and there is also a requirement for larger vessels like ours since average ship sizes continue to grow. Large containerships, for example, take on board substantial amounts of bunkers and they also expect a fast rate of delivery.""For the next three vessels, we are able to offer late changes in specification, for example in the choice of tank coatings, thus providing great flexibility when discussing potential charterers' precise requirements. We are, with due notice, able to make more radical changes, as might be requested by owners with specific employment in mind."The shipowner Ciane Anapo Spa was formed in 1967 by the merger of two shipping companies, Ciane and Anapo, named after two small rivers in the Syracuse area. Its full name, Ciane-Anapo, Compagnia di Navigazione e Bunkeraggi Spa, reflects its two lines of business: bunkering (transport of fuel oil, diesel and lube oil for vessels in port) and mainstream shipping, principally coastal.Anapo was set up in 1958 in Augusta, just north of Syracuse, and Ciane in 1959, and the merged company has had a branch office in Genoa since 1967. It carries out bunkering in these two ports under special licenses, which require the use of small tankers that load from coastal installations.Augusta is one of Italy's largest ports, a major centre for oil refining and a popular bunkering centre, being on the main east-west trade route through the Mediterranean. The shipbuilder Çiçek Shipyard is located on Tuzla Bay, near Istanbul, and in addition to the small tankers, its current orderbook includes 58,000dwt and 25,000dwt bulk carriers. It has a long track record of constructing chemical tankers from 8,000dwt up to 40,000dwt in size.The largest vessels are constructed in a 37m wide building dock while ships of up to 25,000dwt can be built on an adjacent slipway. The 3,100dwt tankers are being constructed on a second slipway, capable of building ships of up to 3,500dwt.

Mumbai port repositioned as Project hub

In a bid to overcome the stiff competition, Mumbai port (MbPT) is being repositioned as India’s project cargo hub port taking advantage of the many distinguishing features and advantages native to the region. Its enclosed dock system, its sheltered harbour water with deep draft make it an ideal port for handling heavy lift and project cargo.

Though it has become strictly a break bulk port, it has been losing much of the cargo as break bulk, it is found to be easily containerised to ensure shorter ship stay in port, lesser cargo handling and has made it easier to ensure cargo security.

However, break bulk cargo such as over dimensional type or heavy lift project cargo calls for specialisation in handling. ‘Out of gauge’ cargo of 100 tons to 750 tons and more can be handled by a ship’s own gear vessels provided they have jumbo-sized cranes or two cranes of 450 ton capacity each working in tandem to load and unload such heavy cargo of up 900 tons.

Featuring the assets of the port for handling heavy lift cargo, Mr. V.S. Kulkarni, Dy Docks Manager of Mumbai Port Trust (MbPT) emphasized, “Our existing dock system provides ideal berthing for vessels at corner berths thus permitting suitable double banking facilities alongside a vessel. The port has been able to regularly handle ‘out of gauge’ cargo and heavy project consignments of more than 700 tons. Our docks can even accommodate extra-ordinarily long vessels with overall length exceeding 900 feet. Good connectivity permitting quick evacuation of cargo via the sea through barges and by land through the rail network or by road gives Mumbai Port a distinctive advantage.”

Project cargo manufactured at minor and intermediate ports located in Gujarat are moved to MbPT by barges for onward shipment by the mother vessels. Construction machinery, road rollers, machinery of turnkey projects, boilers, transformers, dredgers, over dimensional power equipment, etc are regularly transported through the MbPT either as exports or as imports. OEMs and heavy engineering industrial units located in the hinterland find Mumbai port to be the preferred port for shipment of goods such as windmill parts, transformers, etc.

“Our regular customers include Larsen & Toubro, Bharat Heavy Electricals Ltd., National Thermal Power Corporation Ltd., Crompton Greaves Ltd, Suzlon Energy Ltd., Godrej & Boyce, etc.,” says Mr Kulkarni. “Heavy cargo such as transformers and reactors are brought in by barges from Hazira, Kandla or Mangalore and loaded directly onto the mother vessels. Godrej get in their cargo from their Vikhroli factory via Mankhurd from where they are transported by barges through the P & V channel to the Harbour Wall berths in the Indira Docks (18 to 21). Here the barges are double banked with the mother vessels whose cranes lift them off from the barges and load them onto the vessel.

“Heavy cargoes are also brought in by rail or road and we offer various facilities including 7 free days on export cargo and 6 on import, if the goods have to be warehoused in the dock area. Offering ro-ro facilities, heavy cargo can either be rolled on or rolled off by trailers. Besides, the advantage of MbPT is that it is an enclosed dock and the sheltered conditions allow ships to be safely berthed. The loading and unloading operation requires a certain amount of precision when the cargo is over-dimensional. This is made possible if the ship is stationary and berthed in calm waters. Such enclosed dock conditions exist only in Mumbai port. If the size of the dock gates restricts the passage of over-sized cargo then we even have the gates demolished along with part of the wall to permit its passage.”

A case in point of MbPT being a preferred port is that JNPT has had to have their imported cranes unloaded at Mumbai port a few years’ back and then moved over to JNPT for erection at their port. ABG Shipyard, the largest private sector shipbuilding yard in India, also have their big import packages weighing over 250 tons each, unloaded onto barges and taken to the shipyard in Magdalla, Gujarat from Mumbai.

“Because of the sheltered condition of the Mumbai Port, users prefer MbPT,” points out a port official. “We have better connectivity not only to the Western countries but also globally. With several Indian companies participating in global tendering for infrastructure projects in Africa, the USA and Europe, there is an increasing tendency to move heavy cargo or ‘super capital goods’ through MbPT. So also when it comes to bringing in heavy equipment for projects, Mumbai port is found advantageous as it offers excellent road, rail and coastal connectivity permitting easy transport of equipment to the erection sites. Pune based Suzlon Energy Ltd. is a regular shipper for their windmill equipment involving giant size blades and electrical equipment through our port,” he said.

Heavy Lift specialist director, Mr. Hemant Bhatia informs that though the port is well geared with their own shore-based cranes with the magnitude of heavy cargo passing through the MbPT, three private operators are offering their floating cranes of between 60 ton to 250 ton capacity. Nord Scan lines also have their heavy lift vessel operating on the Indian coast ready to provide service to interested customers.

Monday 6 April, 2009

ASF calls for asian governmental body

Owners representatives meeting in Hong Kong for the Asian Shipowners Forum (ASF) Ship Insurance and Liability Committee have called for Asian governments tyo forma regional body to consider and respond to regional proposal for regulating shipping. A statement notes that, in the past, ASF has commented widely on the various EU Draft Directives, but “has not seen an equivalent level of contribution from Asian governments”.
ASF adds: “Taking note of the reports of recent comments made by Mr Shigeru Ito, Director General of the Maritime Bureau of Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), and Mr Oh Konggyun, Chief Executive of the Korea Register and Chairman of the International Association of Classification Societies, both of whom support a more active ‘Asian Voice’ on maritime issues at the governmental level, the Committee urges Asian governments to form a regional body in order to consider and comment on legislation proposed at the regional level, particularly that being proposed by Europe and the United States.”
The ASF also expressed its “continued deep concern at the treatment of seafarers who are unfortunately involved in maritime accidents”. It said: “While recognising that local legal procedures must be followed, the Committee is concerned that seafarers who are involved in accidents are being treated as criminals as a response to and to satisfy public concern about the effects of the incident, even when it is clear that there has been no criminal intent or obvious fault. There would seem to be many such incidents, where the only fault of the seafarer would appear to be in the wrong place at the wrong time. The Committee urges all Governments, particularly those in the developed world, to reconsider the harm they are doing both to the recruitment of future seafarers as well as to the reputation of their legal systems by politicising such incidents and treating seafarers with little regard for their human rights and as being guilty until proven innocent.”

Celebrating Piracy and Criminalisation of seafarer

For seafarers who turned up for the National Maritime week celebrations seminar at the auditorium of the Shipping Corporation of India (SCI), Mumbai on 1st April, 2009 their hope of finding some solution to the heart-wrenching problems of piracy and criminalisation of seafarers turned out to be a hoax. The deliberations did not give the slightest hope of the threat abating nor any promise being extended by the government as if signifying what the day April 01,09 was meant to be. No one could fathom what further relevance these two issues had for the celebration week besides a number of events that had already taken place focusing on the same issues including the one conducted by the Directorate and graced by the union shipping secretary, A. P. V. N. Sarma.

More appalling still was the moderator of the two panels, the Lloyd Lists’ correspondent Shirish Nadkarni making a surprise announcement, “We will now welcome into our midst Capt. Jasprit Chawla and Chief Officer Syam Chetan,” he said, (referring to the two Indian officers of the tanker ship “Hebei Spirit” detained in South Korea). As no one stepped in he blatantly stated that it was ‘April Fool’. Heart broken was Commodore D. R. Syam VSM, father of Syam Chetan who had come as a special invitee. He sighed, “For a moment I thought the administration had a happy surprise for me. But it was not to be.”

Although ‘Piracy and Criminalisation –Threat to the Seafaring profession’, was the theme of the seminar, one of the cadets Amit Sharma when asked to voice his opinion lamented, “It is obvious that people who are lawmakers, framing the rules are sitting in air-conditioned offices while drafting the rules and regulations. How do we face the pirates and criminals? We are not trained to tackle these problems when we go into the deep sea.” The directorate humbly responded stating that ‘there were no answers to these problems.’

Umesh C. Grover, Director (Technical & Offshore Services), SCI observed, “As it is seafaring had lost its charm with shorter port stay and longer voyages at sea. Now to add to it is criminalisation and piracy rearing its ugly head?”

S. Hajara, cmd of SCI stated that the treatment being meted out to the two Indian officers of V. Ships in Korea has got the whole world to take another look at the IMO guidelines.

In his presentation, Jim Mainstone, Head of Special Projects at Gray Page, contended, “The world media has not properly highlighted what the hijacked crew faces under the control of the pirates.” He gave details of the modus operandi of the Somalian pirates, their style of functioning and their mind-set. “We have to make a coordinated effort, put an agenda to work together. Unfortunately, every country has a different policy. With the result if pirates are actually captured then how do we try them and to whom should they be handed over – certainly not to the Somalian authorities.”

The other facet which was serving as a deterrent to attracting more youth to the seafaring profession was tactfully handled by Brian Martis, Group Business Services Director of V. Ships. He gave an account of the trauma which Capt. Kanwar Sunder Mathur who commanded the beleaguered Erika underwent for no fault of his. Also the unjust treatment meted out to Capt. Apostolos Mangouras of the tanker Prestige, where without Mens Rea and without being proved guilty seafarers were subjected to punishment.

He cautioned about the disproportionate response to accidents and the reaction being indicative of the treatment seafarers will receive. He quoted the former French President Jacques Chirac’s response to accidents at sea saying, “This is not inevitable. It is the result of human actions. France and Europe must not leave these shady men, these gangsters of the sea, to profit cynically from the lack of transparency in the current system.”

Mr. Martis explained that substandard operators, substandard ships and substandard manning agents who are a serious threat must be reported upon. They are responsible in part for the kind of legislation we are confronted with today. We have come a long way and the industry has made great strides in improving its image. “We have a choice to make,” he said. “We can accept the status quo and do nothing about it. Or we can organise ourselves well enough to fight the scourge of criminalisation.”

The two panel discussions were inconclusive and had nothing to offer accepting clarifications on some of the points raised.

Reacting to the spent-out trend the seminar was taking and the listless efforts of the government machinery rising up to the occasion, Mr. Abdulgani Y. Serang, General Secretary–cum–Treasurer of the National Union of Seafarers of India (NUSI) likened the progress to ‘waiting for the cows to come back’ development, “If there happened to be a minister’s son or a prince from some country on a passenger ship that gets attacked only then will there be a wakeup call like the 9/11 situation evoked. But when we talk about offering more bonuses or money to seafarers whose ships traverse through pirate infested areas, Indian ship owners quickly say an unequivocal ‘NO’.”

The Chief Guest, Justice Dr. A.S. Anand ruled that piracy and criminalisation of seafarers will continue to exist. “Piracy on the high seas is a form of terrorism whose objective is not so much to harm but to disturb the equilibrium in exchange of money,” he pointed out. “Unfortunately, there is no definition of ‘terrorism’, thus the selective approach of the governments and their double standards are evident … Countries will keep asking how does it matter to me what happens in your backyard.”

He went on to point out that the response of media to show the ugly face of piracy and criminalisation is not as evident as it was after 9/11, or even the recent attack on a cricket team on foreign soil. “However,” he appealed to the cadets, “Don’t go by these aberrations. Seafaring is still a good profession!”

Monday 23 March, 2009

LNG tanker rates fall on increase in vessels

Charter rates for liquefied natural gas tankers on short-term hauls declined 17 per cent last year because of an increase in new vessels, Poten & Partners said.
Rates to rent LNG tankers fell to about US$46,600 a day for steam turbine vessels of 138,000 to 150,000 cubic metres in capacity, Poten, a US energy consultant, said in a report.
'With a record number of new builds entering the fleet, market needs were easily accommodated and except for a few instances, prompt ships were always available,' the report said.
'Despite a robust cargo market with record numbers of spot shipments being diverted from the Atlantic Basin to destinations east of Suez, chartering activity remained muted through July.'
The number of LNG ships worldwide will increase by more than 50 per cent in 2010 after shipyards delivered a record 58 vessels last year, David Fuller, the London-based head of LNG for RWE AG, said at the Gas Asia conference in Kuala Lumpur on Wednesday.
Daily charter rates in 2008 were in a range of US$40,000 to US$50,000 about 60 per cent of the time, according to the report.
Charter rates for ships transporting spot cargoes have declined to about US$35,000 to US$40,000 a day currently, Gunaseharan Ganapathy, vice-president of LNG at MISC Bhd, said on Wednesday. Charterers may have paid as much as US$75,000 a day during winter 2007, according to Drewry Maritime Services Ltd.
MISC, the world's largest owner of liquefied natural gas tankers, expects a surplus of vessels this year and next as ship deliveries precede the start up of projects and the global recession cuts Asia's demand for the fuel, Mr Ganapathy said.
LNG is natural gas that has been reduced to one-six-hundredth of its original volume at minus 161 degrees Celsius for transportation by ship to destinations not connected by pipeline. On arrival, it is turned back into gas for distribution to power plants, factories and households. -- Bloomberg

Maersk tankers “Ready for CO2 transport market”

AP Moller – Maersk Group subsidiary Maersk Tankers says it is ready to enter the CO2 transportation market to help promote Carbon Capture and Storage (CCS), one of the technologies identified as key to mitigate the effects of climate change.
“With this initiative we want to show industrial leadership by demonstrating we can act on the global challenge that is carbon emissions,” says Martin Fruergaard, senior vice president, Maersk Tankers in a paper presented at the International Scientific Congress on Climate Change in Copenhagen last week.
“Our decision reflects the AP Moller – Maersk Group’s approach to the global challenge on climate change, which is to develop innovative and creative ways to limit carbon emissions,” says Mr Fruergaard.
Maersk Tankers says it has examined the business case for entering into the CO2 transportation market for either offshore storage or enhanced oil recovery (EOR), using CO2 to increase oil recovery rates in maturing fields. “By utilizing our experience in transporting liquefied petrochemical and natural gasses, we have developed a large scale case for transport of CO2 for storage or EOR,” says Martin Fruergaard.
According to Maersk Tanker studies, more than 750 million tonnes of CO2 are emitted from large stationary power plants close to the sea in the North Sea region alone. Fifteen handysize (20,000 cu m) gas carriers could transport more than half of Denmark’s annual CO2 emissions for storage in the North Sea, the equivalent of all CO2 from large Danish stationary emission sources. CO2 fraction retained in selected reservoirs is likely to exceed 99 percent over 1,000 years, according to the Intergovernmental Panel on Climate Change.
Furthermore, according to Maersk, transporting CO2 by sea is cost-competitive and more flexible than pipelines on longer distances or in smaller quantities.

Looking to get out of the economic morass

The 6th edition of the Indian Ports & Shipping International conference was held on March March17th & 18th, 2009 at Hotel Taj President, Mumbai. It served to focus on issues that could put the maritime industry on the path to recovery.

Held by India’s premier organisation - the Bombay Chamber of Commerce & Industry - the deliberations centred round the theme The Maritime Industry - Catalyst for Economic Growth. The event drew several players from the logistic and maritime sector in the hope of finding some ready solutions to help wriggle out of the recessionary conduit.

There was a consensus that now was the time to build capacity and bring in efficiency. Infrastructure development would ensure better connectivity and help reduce cost. As ship building, ship breaking, dredging, offshore, inland and coastal water tourism and transport, manpower development, etc., was seeing a significant growth there was plenty of scope for investors.

“China has been able to sustain a 9% economic growth because it gave importance to this sector,” pointed out S. Hajara, chairman and managing director of Shipping Corporation of India (SCI) and president of the Indian National Shipowners’ Association (INSA). “In the present stage of economic development, India’s liner trade will see a high growth area. The average terminal capacity utilization at the country’s premier container terminal viz. JNPT was 90% vis-à-vis global average of 70% to 75%. We need to create more capacity.”

“We need to develop capacity so that we can operate at an acceptable level of 70%,” concurred Dr Anup Chanda, chairman of the Indian Ports Association. “We must go in for vertical expansion and not just horizontal. Unless we develop the coastal and inland waterways connectivity we will have to continue falling back on road and rail transport which besides being costly, cause pollution and congestion.”

Capt Sandeep Mehta, CEO, Mundra Port & SEZ Ltd, said, “The downturn should be considered as a time which is offering a breathing space to bring in to place the required infrastructure so that when the next spurt comes in we should not be caught napping.”

“The multiplier effect of growth in shipbuilding can create a total investment of Rs 37,000 crores in the Indian economy by 2012 and around Rs 2,22,000 crore by 2017,” stated Vijay Kumar, managing director of Bharati Shipyard Ltd. and president of the Shipyards Association of India. “This can enhance the overall economic output to around Rs 3,42,000 crore by 2017. Because of the shortage of shipyards capacity in India, the Indian Navy will get a large number of vessels constructed from outside India. The Navy also plans to take over the Hindustan Shipyard Ltd. The coast guard too is looking to having a large number of vessels constructed which may happen in foreign shipyards. Considering the massive employment opportunity and the benefit to the economy the government should restore the subsidy to make the shipyards competitive.”

Considering the importance of connectivity S. S. Hussain, chairman of JNPT did not want financial outlays made for developing connectivity to be considered as expenditure but as an investment. He welcomed the government plans for going ahead with the dedicated multi-modal high axle load freight corridor in the Eastern and Western corridors at an estimated cost of Rs 28,181 Crore.

“Most of the Indian Containers are trans-shipped at Colombo, Singapore and Dubai because Indian ports do not have sufficient draft and lack supporting infrastructure to handle fifth and sixth generation vessels,” observed Maya Sinha, Deputy Chairman JNPT. “With the increase in container traffic, shipping lines are in a position to provide their customers in India direct sailing, especially to destinations in Europe and North America which will lead to an increase in percentage of larger vessels coming to India subject to increase in available draft and other infrastructure.”

Competitive ports need a deeper draft as a pre-requisite in order to cater to increased traffic, accommodate main line vessels operating in the shipping trade, enhance capacity of the ports through construction of new ports or expansion and development of the existing ones and create hub port services for the trans-shipment of containers.

Rakesh Srivastava, Jt. Secretary, Ministry of Shipping, Government of India, outlined some of the present projects. Capital dredging for major ports with a target to increase the draught to between 14m to 17m is underway at JNPT, Paradip, Mumbai, Visakhapatnam, Tuticorin, Cochin and Ennore Ports at a total cost of Rs. 2382 Crore. “With the deepening and widening of the entrance channel at Paradip, Visakhapatnam, Chennai, Ennore, Tuticorin, New Mangalore it would facilitate larger size vessels to call at these ports,” he said.

He also informed that 9 projects were under implantation at each of the major ports to provide a minimum of 4-lane connectivity at a total cost of Rs. 1859 Crores. Besides, each Major Port would have double line rail connectivity and in this regard eight projects totalling 961.56 km were under implementation at a total cost of Rs. 2118.84 Crore. Besides, two dedicated high axle load freight corridor each on Western and Eastern routes is underway.

Bhavesh Gandhi, Executive Vice Chairman, Pipavav Shipyard Ltd., too projected the immense opportunities that existed in ship building. He pointed out that INSA has projected that about 50% of the Indian fleet (about 37 vessels) have to be scrapped within the next five years to comply with the International Maritime Organisation’s regulations. Besides, the Association has projected an expansion of the Indian fleet to 830 vessels or 12 million Dwt by 2012.

Making a comparison he stated that the fuel consumption for every tonne/km of cargo carried through waterways is only 15% of that consumed by road and 54% of that by rail. Studies have shown that diverting 5% of road cargo to coastal shipping shall result in a saving of Rs 15-20 billion annually. In order to be competitive more cargo would be seen getting transported by the coast and inland waterways. Hence, there would be further demand for ship building.
Mr A. P. V. N. Sarma, Union Shipping Secretary the chief guest at the function in his theme address informed that the Ministry of Finance has been asked to consider a stimulus package for the ports and shipping sector. He emphasised that he was working towards facilitating all-round growth in the shipping, ports and associated sectors, with focus on increasing the national tonnage, identifying and implementing public-private partnership (PPP) projects, improving connectivity, innovating in dredging and other areas, and enhancing training standards.

Monday 9 March, 2009

Interview with David Cockroft, General Secretary of International Transport Federation

Q) What is the stand of ITF on the on-going piracy?

Piracy is a major problem in the world though much lesser than the problem that evolves because we finally got the major maritime nations of the world to act in concert and to put up a serious military force. This has already made a big difference in the number of hijackings taking place.

Also it is more important we now have an agreement with our ship owner counterparts that no seafarer can be forced if he decides not to go in piracy infected area and that he cannot be penalised in any way. And if they do go they get paid double the wages.

Q) What according to you needs to be done to stop the piracy?

It is all because Somalia does not have a proper government that piracy has become a thick business. When the Sirius Star was taken they got a massive $ 3 million for that. But the fact is, if you are defending the seafarers there has got to be negotiations. At the end the military authorities of the countries concerned have got to intervene.

Everybody knows where these pirate bases are. Every body knows from where they are dispatching small ships to lodge their attack. I would favour the navies going and bombing their bases, which of course could be considered a violation of a national sovereignty. But then the country does not have an effective government. However, unless the international community takes strong effective military action by killing a few pirates I don’t think it will help to solve the problem.

Q) What further course of action does ITF proposes with regard the two detained Indian Officers of V Ships in Korea?

The two officers in my view will be released quite soon when their appeal comes up for hearing. When they were detained I had visited them in Korea and met them and their wives and had talked to them. Whatever the nature of the incident, we will work to stop the criminalisation of seafarers.

Q) How is it that ITF has given recognition to two seamen’s unions in the same country? In India you have recognised NUSI and the FUSI besides the officers’ union - MUI?

Well we do it all the time. We have given recognition to multiple unions in a country all over the world and India is no exception. We recognise and accept membership from any democratically controlled trade union which represents the interest of the seafarers. In fact, today I came here for the NUSI’s function from the FSUI’s office. And we find FSUI being a well democratic controlled trade union and we wish it well. What we hope more and more is that better co-operation between NUSI and FUSI ensues. We are not going to chose sides between one good union and not so good union. What we need are unions which look after the interest of Indian seafarers both on Indian flag ships and foreign flag ships.

There is no doubt that FSUI is the majority union on the Indian flag whereas NUSI is probably a majority union on both the foreign flag and Indian flag and the agreement are held accordingly - but I am not going to be involved in this. FSUI came into the ITF with the full support of NUSI. Of course we did get involved into negotiations to achieve that. NUSI did not come with objections. FUSI came in and met with NUSI on a regular basis and as far as I am concerned is to advance the interests of the Indian seafarers.

Q) In Mumbai there are nearly 14 unions operating. Don’t you think that by giving recognition to one union and not the other it could create intra-union rivalry and in the process the interests of the seafarers could get ignored?

We are not in favour of union monopoly. Union monopoly is not in the interest of trade unions. Any union which is genuinely democratically controlled by the members which chooses to join the ITF will be welcomed. We don’t like union which are wholly depended on political parties. I don’t think that ITF is likely to accept 14 unions. At the moment in many countries around the world we have two or three or sometimes even four seafarers’ unions, they work together in the end. The section 87 of the ILO says the workers should be free to join the union of their choice. If seafarers choose to join FSUI then it is fine. If they choose to join NUSI, fine it the freedom that matters. And we continue to encourage good relationship. We will see that very good close working relation results between both those unions.

DGS’s Stimulus package set to boost coastal shipping

The Director General of Shipping has assured a stimulus package to boost coastal shipping. This could not only dramatically enhance employment but also lead to a significant shift in cargo movement from the ‘costlier’ road and rail networks to the ‘cheaper’ and more environment-friendly water transport systems along the coast and through inland waters.

Ms Lakshmi Venkatachalam, Director General of Shipping, Government of India promised the trade various measures that she would take in this regard while deliberating on the Directorate’s notification for the construction, survey, certification and operation of Indian River-Sea vessels at a seminar held under the aegis of the Indian Coastal Conference at the Indian Merchants’ Chambers on February 25, 2009.

While making his presentation, Mr Atul Jadhav, President of Goa Barge Owners’ Association informed that though the notification allows for seamless integration of coastal vessels with river barges, awareness about this aspect; its purpose and usefulness is seriously lacking. Besides, various maritime boards have not yet come out with relevant notifications to this effect.

“On the manning side there is a tremendous shortage of engineers whereas officers on the nautical side expect salaries applicable to foreign going vessels, which is not at all feasible,” he informed. “While operating on the coast or inland waters, officers may have to double up as watch keepers, or undertake other functions besides their own for which they are not amenable. Those on the coast operate on a thin margin of around Rs 40,000 to Rs 60,000 making it impracticable to pay exorbitant salaries. “

Making a comparison with road transport Mr. Aditya Suklikar of Indian Costal Conference stated that water transport would get the required impetus if manning was taken out of the purview of STCW since employing master mariners and other marine officers for coastal or river transport was too expensive. He advocated the need to tap the vast source of ITI approved diploma holders from various institutes. He also desired that the CDC requirement be waived for Class IV vessels.

Mr Atul Jadhav appealed for the framing of a separate set of rules for coastal and river operations. He desired that the CDC requirement be done away with for all coastal vessels. “It would suffice to have just two workers having knowledge of only the elementary requirements of navigating along the coast,” he said. “Hence, a simpler course could be devised under the certificate of competency examinations.

“The duties and responsibilities assigned under the ISM code should be moderated or done away with, since much time is wasted in paper work besides adding to costs. In China there are 13,000 vessels operating along the coast since regulations are much simpler,” he said. “Because of the stringent requirements applicable here, and despite having a much long coastline, we in India have only around 45 vessels operating. In each state there are different regulations that are being observed, as in Goa night navigation is not allowed only for river-sea vessels as allowed under the DGS notification while all other vessels even though they are much bigger are allowed to operate in the night.”

Barge operators want some kind of permanent committee to keep tabs on the implementation and working of the notification and to help in streamlining any difficulties faced. It was pointed out that the trade was competing with the road and rail networks which are not subject to customs regulations and those applicable under the merchant shipping act which the people involved in coastal and inland waterway transport have to adhere to.

Agreeing with the demand to do away with the present pre-sea training or structured training for those who aspire to man coastal vessels and not to insist on having those who have been trained to serve on foreign going vessels Capt M. M. Saggi, Nautical Advisor to the Government of India said, “For River-Sea vessels it would suffice to have just one person who gets qualified under a new short-term simplified course - the format of which would consist of some harmonized standards for Class IV vessels. The candidate would get certified according to some model rules and work in all states without hurdles. By introducing this new course it would help in generating immense manpower.

“We need a paradigm change for a new transport model for River-Sea Vessels as it requires different kinds of skills,” stated Ms Lakshmi Venkatachalam, IAS, Director General of Shipping. “We will develop some kind of ‘hybrid’ course/curriculum for River-Sea vessels. We need to have a dialogue with customs and TAMP authorities. Our territorial waters are the last bastion so let’s get it right – No short cuts.”

For creating awareness in various players and officials of different government departments, Ms Venkatachalam agreed to have a number of seminars at state level through ICC where all players could be brought together. “ICC should also look at ‘top of the line’ emergent technologies and devise ways to attract investments,” she suggested. “They also need to hold a meeting with the Secretary - Shipping since he also looks at the road and highway transport. ICC can certainly form two or three contact groups whether in relation with training or principles, etc. I would be happy to meet with these on a regular basis.”

Suggesting a way forward she also proposed that the trade should consider availing of Ro-Ro vessels for transport of cars along the coastal routes. Similarly other goods and supplies of industry in general, could be encouraged to avail of the cheaper environment friendly coastal route.

Offering her sincere advice to the trade, Ms Venkatachalam counselled, “Coastal shipping has failed, but Coastal shipping must and can succeed. Though much is said about short sea shipments in Western and developed countries but it is not all hunky-dory there. Please start comparing at every forum and avenue available to project what the nation is losing out by investing more in the rail and road sector instead of in coastal trade which do not require construction of highways.”

Monday 2 March, 2009

Interview with Capt Fared Khan

Having been with AET for 22 years Capt Fared Khan Head Group HR Sea, AET Shipmanagement (Singapore) Pte Limited pioneered various schemes which have yielded excellent results for the company. During his brief visit to India, Shipping Today caught up with him to get some insights on various issues which have helped the company achieve its premier position.
Malaysian International Shipping Corporation (MISC) ant its plan in India
MISC is the parent company dealing in chemicals, containers and LNG, whereas, AET is leading worldwide petroleum shipping company wholly owned subsidiary dealing in crude oil as well as in managing, operating and securing business for the fleet. MISC and AET make a dynamic team complimenting each other well to become the World’s Leading Petroleum Tankers Operators (‘WLPTO’).
About inducting lady seafarers…
Women are as skilful and competitive as their male counterparts. AET has been recruiting female seafarers for the past three years and now have four female officers and 38 female cadets comprising of the deck as well as the engine side. I am very optimistic on getting in many more women into shipping.
On the Dynamic Role of Human Resources (HR)…
As far as manning is concerned the HR prospective has undergone a transformation mainly in view of the changed necessities. The shortage of skilled and experienced seafarers has made the shipping companies look closely at the benefits for the seafarers.
Being from the sea myself, I understand the need of the seafarer much better. At AET we are giving opportunities to build our abilities in HR. For instance, everything HR Sea has to incorporate first goes through the HR Shore management which is led by thorough professionals well versed and having expertise in their field of operation.
In all its seminars, AET has now made it mandatory to include at least two HR related topics, which are presented by HR experts. In the seminars held at Malaysia, the HR topics covered related to Performance Management and both were well received by the officers. I think AET will be the first shipping company to systematically appraise an individual on the basis of his or her performance.
On the downtrend…
It is my view that the current downturn will hardly make a much of a difference as far as the seafarers are concerned. Good companies that have strong policies in this downturn will manage to survive this storm. Also, I believe that the time has come for the seafarers to make a difference in this bad phase, by being cost effective with their performance.
Long before the recession, AET took measures to lock in with the charterers and spread their business evenly so that they are not spread out only in the stock market itself. But we have expanded ourselves in partnership with many oil majors. As long as we deliver what we have promised the customers we will continue to perform. AET has its own ships and we are capable of riding out the storm; we have got our business motto right. I personally believe that AET will come out much stronger in the partnership with the seafarers. I am very confident that we are ride through this period well and come out winners.
On Prevailing Piracy…
AET takes utmost care in providing security and safe passage for its ships passing through the piracy affected areas. AET has given strict instructions to all its vessels, including the charterers and foreign flag vessels that a naval convoy must escort them when they pass these routes. AET gives top priority in protecting its crew and ensuring safety.
WE GUARANTEE SAFE PASSAGE THROUGH THE GULF OF ADEN REGIONS FOR OUR SEA STAFF.
On the essence of seminars…
The Seminar is a platform for the exchange of ideas and to formulate company’s policies in the presence of the shore management along with its floating staff. It is a place for interaction and bonding between the managements and the seafarers.
Message to Indian Seafarers
Today’s generation of seafarers lack the right attitude towards shipping. The Indian seafarers are very skilled and perhaps the best in the world. I don’t want to see the Indian seafarers’ fate as happened to the European, who turned out to be too demanding, but if the Indian continue to move in the wrong direction, then it would not take long for the Chinese, African and other South Asian countries to take their place as those people are willing to work hard too. So my message to Indian seafarers would be to be more professional and live up to the legacy created by the seniors.

AET’s Code: Par Excellence

Excellence is a passion with American Eagle Tankers. Taking this philosophy to heart, AET chose “Operation Excellence” as its theme for its quarterly Officers’ seminar held recently at Holiday Inn Glenmarie, Kuala Lumpur, Malaysia from January 19 to 22, 2009, where the company took the opportunity to honour its long standing staff as is usually done during such seminar and also launched its remarkable newsletter.

For the officers and their spouses who attended the seminar it was one great ‘all expenses paid’ holiday. As many would wish to call it - a five-day free holiday at an exotic tourist destination where each one enjoyed mixing business with pleasure.

“AET Senior Sea staff seminar is a platform for the exchange of ideas and to formulate company’s policies in the presence of the shore management along with its senior floating staff,” says Capt Fared Khan, Head Group HR Sea, AET Shipmanagement. “It is a place for interaction and bonding between the management and the Senior Sea staff.”

As has been a trend in AET, the conference was attended by the President and CEO Mr. Hor Weng Yew along with other senior company managers and their spouses.

A wholly owned subsidiary of Malaysian International Shipping Corporation (MISC) and dealing in crude oil as well as in managing, operating and securing business for the fleet, AET uses seminars as another platform to give recognition to its officers with long standing service with the company honouring them with mementos and magnanimous gifts.

Mr Wee Teck Chee, Captain Premanathan Menon and Mr Lim Poh Whee have been with the company for more than three decades and Mr Leong Kee Yeen with 25 years of distinguished service were heartily congratulated and graciously honoured by the company. Next in line were 14 others officers having served for between 15 and 20 years, and others with 10 years of service were honoured with a similar show of appreciation and enthusiasm.

AET took the opportunity to launch SEASCAPE its first quarterly periodical devoted exclusively for its People. The magazine’s launch which took place at the hands of Mr. Amir Azizan, the C E O of MISC, was received with great interest and zest by all present and in particular by the sea staff.


Focusing on the strategy of the company Capt Rajesh Deshwal, Regional Manager – India said, “AET make a dynamic arm of MISC to become the World’s Leading Petroleum Tankers Operator (WLPTO).” MISC the parent company of AET deals in chemicals, containers and is the world’s largest LNG owner operator”.
“AET has new vessel deliveries lined up and on an average one ship will be added to our fleet every quarter until 2012. AET’s increasing tanker tonnage in times when most competitors are struggling to sustain themselves should be indication enough, not just to our own people but also to others in the industry that by being part of AET you have secured your future.”


“AET recruits 150 cadets annually to meet the growing demand for seafarers and about half of these are from India. All of them are trained at the Akademi Laut Malaysia (ALAM), AET’s Malaysian Maritime Academy. AET is particularly proud of its cadet training programme which involves over 600 candidates being prepared for the sea-life at a time. Some of these cadets were also involved in the conference, both as trainees and as part of the conference organising team.


Since training plays a major role for factoring in ‘Operational Excellence’ it was one of the highlights at the seminar. A few case studies along with the relevant investigative reports and studies were taken up in order to give participants an indepth understanding of the measures to be taken to prevent incidents, accidents and near misses.

The need for trained and competent manpower has now become a universal feature. AET has raised the bar on Maritime Education and Training by revising the learning system so that competence beyond compliance is being maintained.

Several other topics contributing to Operational Excellence were touched upon. Presentations focusing on both internal and industry were delivered by renowned external speakers. Significantly there were subjects on ship safety, international conventions, safety of navigation and services to the shipping community. There were also technical discussions that took place in great detail on machinery, bunker management and innovations in energy conservation. The conference included stimulating discussion on good practices, addressing the question, ‘Will today’s best practices be still valid tomorrow?’

Whenever an incident or accident occurred, the reaction of the media was considered. It was essential to remember when media publicity was desirable and when not. If it would be beneficial and how this could be ascertained was also deliberated upon.

From the feedback obtained, it was learnt that participants really appreciated the programme and found the seminar very beneficial owing to the wide range of topics that were discussed that helped to add to one’s knowledge and encourage better performance on board a ship. The interaction with the management and the content were both found to be useful and informative.
The location “Holiday Inn Glenn Marie Resort” was very congenial and excellent for the seminar and for sight seeing. The trip to the Sunway Lagoon – the most attractive tourist spot and the whole trip was well planned and organised as always.

Indian ship recyclers oppose IMO draft at Mumbai workshop

Serious differences came to the fore between Indian ship breakers and the international body, as the draft on International Convention for the Safe and Environmentally Sound Recycling of Ships went in for finalisation at the 2nd National Workshop of the International Maritime Organisation (IMO), held jointly by the Directorate General of Shipping and IMO on 23rd February 2009 at Maritime Training Institute of the Shipping Corporation of India, at Powai, Mumbai.

While the Norwegian, Greek and other ship owners of some of the developed nations took a concerted stand of imposing greater liability on ship breakers including doing away with the beaching process that is now being followed at the Alang yard in Gujarat and elsewhere, the Indian side claimed it to be a ploy of the shipowners’ from developed nations to shelf the entire responsibility on ship breakers so that they would not be held accountable in any way.

Jens H Koefoed, Senior Advisor to the Norwegian Maritime Directorate propounding ‘A conceptual approach to the Recycling convention’ insisted that an inventory of hazardous material along with the certification should be maintained on board the ship and at other stages of the ‘ship’s journey from its cradle to the grave’.

Vasuo Nakajo from the Ship Building Research of Japan as well as Hideaki Saito of Japan Ship Centre desired that there should be an approval of the recycling plan and each constituent of the hazardous material should also be identified and an inventory maintained.

Mr PS Nagarsheth, President of the Iron Steel Scrap & Shipbreakers’ Association of India questioned the practicality of keeping track of the TBT and other hazardous material that exists in paints through out the life of a ship. Without insisting on the TBT paint being replaced and allowing over-painting during the life of a ship it only meant that if a few pounds of such material was found short at the time of recycling the ship recycler would have to make up for the shortfall at his cost.

Ms Kate Ware, Sr. Policy Advisor, Shipping & Marine Environment, Dept of Transport, UK pointing to the process of recycling and getting tacit approval questioned the moment of the commencement of the 14 day notice period since there were no proper guidelines on this.

Mr Nagarsheth requested greater clarity with regard to hazardous material and hazardous waste. He went on to state that the definition of a ship which has been accepted under MARPOL 73 and even by MEPC up to the 53rd session is now being changed in the current draft with a new addition being made with the words “or having operated in the marine environment” which seems to be a deliberate attempt to pass on some of the responsibility and liability of the shipowners to the ship recyclers.
“There is no clear demarcation when a ship ceases to be a ship,” stated Mr Nagarsheth. “Once a ship is delivered to the ship recycler, it should cease to be a ship as it becomes merely a ‘floating structure cargo’. Accordingly, the IMO’s role is restricted until the ship remains a ship or a floating structure. Once it is no more a floating structure, the role of IMO should cease. Thereafter, the operations and role of workers at the yard should be addressed by the International Labour Organisation (ILO) and the handling of hazardous waste should be based on Basel norms.”
He also assailed the concept of ‘Maritime Lien’. He pointed out that the debt of a ship and not of a person is operative only in shipping industry and not in any other activity. The ship recycler, the bonafide buyer of the ship, even after taking all precautions, is subject to Maritime Lien risk without any default on his part. So to avoid such a risk to the recycler there should be clear demarcations made to decide when a ship creases to be a ship. Hence, he suggested that it was important to delete the words: ‘or having operated in the marine environment’ from the definition of a ship.
Though some of the Western shipowners’ especially the Norwegians were against the beaching method for recycling which was prevalent in Alang, Mr Nagarsheth stated, “The beaching method is the only economically viable method. A port or dry dock which can be used for building or repairing ships or is used as a port for the cargo movement cannot in any way be economically used for recycling.” He insisted that all hazardous material in a ship destined for recycling should be removed prior to the final voyage to the recycling yard.
Presenting the view of the Indian ship breaking industry Mr Nagarsheth stated, “The present working paper issued by MEPC 58 of the IMO on Ship Recycling is not acceptable to the Indian ship recycling industry.” He claimed that they would be sending a representation to the Indian government not to ratify it. He alleged that the working paper was prepared under the influence of the shipowners and shipowning countries, and is designed to transfer the obligation of observing the entire regulations onto ship recycling countries.
Reacting rather disdainfully Dr. Nikos Mikelis of the IMO, London, who was in the chair, stated that it was not proper for Mr. Nagarsheth to make allegations (without reason) about the draft being the shipowners’ ploy. Now that the draft was in its final stage it was wrong on his part to come up with total rejection and/or objection to it when there had been ample opportunities for the Indian side to make the amendments of choice at the various meetings held so far.
Earlier the IMO Workshop was inaugurated by Ms. Lakshmi Venkatachalam, Director General of Shipping & ex-officio Additional Secretary to the Govt. of India. Dr. Nikos Mikelis in his address stated, “It is not right for us to simply dump our ships in some place and forget about them. It is amazing that in this recycling business all parts of the ship are dismantled and brought to use in some other industry. As the world is becoming interdependent we have to acknowledge and adhere to the standard conventions and regulations.
“With the adoption of the new recycling conventions, I don’t think that IMO’s responsibilities and efforts are over. We depend on the Indian recycling industry for future initiatives to continue to serve the industry.”
Whether the convention gets ratified by India or not, informed an official, there were several loopholes in the draft per se. It is only a question of changing the flag of the ship intended to be recycled. Another spokesman from the shipping trade not wishing to be named considered the whole exercise to be eyewash.

Monday 23 February, 2009

IMO chief calls for action on global warming

IMO secretary general Efthimios Mitropoulos has stressed the need for IMO to take action on greenhouse gases. Speaking at the start of this meeting of IMO's Sub-Committee on Fire Protection he noted that the theme for this year’s World Maritime Day is “Climate change: a challenge for IMO too!”. He said the theme was chosen by IMO's Council to give the organisation the opportunity to focus on an urgent issue of global dimensions.
He said: “I sincerely hope that the theme will galvanize intense action within IMO and the international maritime community throughout the year so that the contribution we will be able to make to the Conference scheduled to be held in Copenhagen in December to produce a new treaty instrument to succeed the 1997 Kyoto Protocol to the 1992 UN Framework Convention on Climate Change is the appropriate one, commensurate with our degree of care, concern and sensitivity about the environment – both marine and atmospheric.”
He added: “In acknowledging that climate change is a challenge for IMO too, we must seek an outcome as successful as the one we achieved last year when agreeing, unanimously, a series of drastic measures to further reduce the emission of air pollutants from ships. This time round, our endeavours should aim at adding IMO’s contribution to the world efforts to address the phenomena of climate change and global warming and thus demonstrate, once again, our undiminished determination to respond to our environmental responsibilities decisively, effectively and expeditiously. I am confident that your Sub-Committee will not shy away from adding, from its own perspective, any contribution needed to help stem those worrying phenomena.”
Turning to safety issues he said: “Environmental concerns apart, I sincerely hope that, this year, we will see a distinct improvement in the safety record of shipping and a substantial decline in the number and impact of marine casualties, which, last year, rose to an unacceptably high level. Except for cases of force majeure, the loss of lives at sea can hardly be justified nowadays and, therefore, even in the serious financial crisis and economic downturn the world is going through at the moment, any attempt to adhere to safety standards lower than the highest practicable ones IMO adopts should not be an option for anyone, just as the financial crisis should not be any excuse to slow down progress in the global efforts to stem climate change and global warming. Compromising safety – by, for example, deferring essential maintenance work or the replacement of faulty or obsolete equipment or by postponing training for officers and crew – may have catastrophic consequences, both for human lives and the marine environment, while dealing, at the same time, a strong blow to the image of the industry from which it will need great efforts and a long time to recover.”

Quality driven ‘Fleet’ on course to excellence

During the two-day Seminar, quality driven Fleet Management Ltd (FML) focused on its quest for excellence featuring its enviable track record and World Class Safety and Environment friendly systems in place. Mr. K. S. Rajvanshy, Managing Director, Fleet Management Ltd., Hong Kong significantly brought out the contributory factors that helped convert the fleet (now at over 200 in number) into a top of the line management company.

It is the company’s portfolio of services that helped it chart the path to success he pointed out. “What we do includes 3rd party technical management, lay-up solutions, insurance, inspections and condition surveys, shipboard audits, training videos, new building supervisions, special projects and IT systems all of which form the backbone of our quality system,” says Mr Rajvanshy.

A member of the Noble Group Limited, the company boasts of a multi-national crewing pool of over 7000 seafarers comprising mostly of Indians, Filipinos, Chinese and Europeans. The company’s track record is reflected by its several maritime awards for excellence including “Best Ship Manager Award during the Year 2004, consistently nominated as finalist in the Best Ship Manager Category for the last 9 years and numerous other awards for its unique Web-based Ship Management System and online training modules.

Capt Sunao Adachi, Director of MOL Tankship Management Ltd, Japan gave brief insights into the MOL and the Methanol trade. MOL holds 45% of the world’s methanol tanker share.

Making a statistical analysis of incidents, near misses, machinery failure, navigational incidents and crew injuries, Capt A. M. Karandikar, Director & General Manager, FML – Hong Kong contended that accidents will happen as soon as the regular safety barriers are removed or bypassed. “Accidents lurk around the corner waiting to happen when we least expect them,” he said. “Accidents will happen as soon as we take ‘shortcuts’ or try to achieve a routine chore a bit ‘faster’.” Using various case studies of accidents relating to navigation, crew injury, cargo damage and enclosed space, he drove home the reasons leading to the accidents and how they could have been averted.

Capt Karandikar also made presentations on ‘The Company’s MARPOL compliance Programme’ and another on ‘Obstruction of Justice and False Statements – How to avoid them.’ Talking about MARPOL he stated that the company firmly believes in protecting the environment. He disclosed the best practices that required to be adhered to for preventing pollution. Contravention of MARPOL regulations could land a person in jail he explained while giving details of the regulations prevalent in different countries with regard to MARPOL and the stringent measures taken to ensure that these are followed.

Preventing or attempting to prevent an investigation or to impede or attempt to impede or even influence or attempt to influence the course or outcome of an investigation by a government body or authority is considered obstruction of justice he said. In short it is always better to tell the truth and not to create or alter documents after the incident. “If asked to make a false statement or create / alter a document after an incident,” he said, “you must refuse to do so and report the matter to the designated person ashore.”

Continuing on a similar note Mr. Marius Schonberg, Loss Prevention Executive of GARD P & I Club, Norway, discussed the need for safety awareness and risk assessment. What contributes to risk and the type of risks involved were highlighted in his presentation. “The Rules of the Road,” he pointed out are: Navigation must at all times be in accordance with Colregs; the point of passing each other, and Ship-to-ship communication and de-conflicting. Accidents were still happening and risk assessment will help to reduce them.

Presenting the current scenario on ship acquisition and shipping, Mr Umesh Grover, Director (Technical & Offshore Services) of the Shipping Corporation of India stated, “The dry bulk market is the worst affected amongst all shipping sectors. The freight rate decline in tanker segment is relatively lower compared to dry bulk.” All this and other factors according to him clearly indicated a surplus in shipping capacity. When freight rates fall below the operating cost of the less efficient ships then it is time for such ship to be laid up. “However, the future is not as grim as might look today,” he stated.

It was return to basics with Capt M. S. Nagarajan, Director & General Manager (Tanker Team) outlining the company’s bridge procedures and passage planning to stress on maintaining ‘Navigation Safety’. Mr. Sanjay Chandra, General Manager on the other hand made references to the use of nitrogen, its pros and cons when used in different situations which he described in his talk on ‘Over pressurization of parcel tanker and maintenance of tank cleaning machines’.

There are several ways by which cargo shortage and losses can take place thus resulting in ‘Cargo Claims and Operational losses,’ as was amply brought out by Capt Anurag Sharma, Operations Superintendent of Ebony Ship Management Pvt. Ltd, Delhi. Yet another topic that educed lot of interests from the participants was the ‘Case studies of machinery breakdowns’ presented by Mr. Ajay Chaudhry, Technical Manager of Fleet Ship Management Pte Ltd, (FSMPL) Singapore (Engine). He presented details about the Root Cause Analysis and the relevant Investigation and Rectification results.

Several other topics were given indepth treatment by the speakers in their presentations. Capt Mayank Mishra, Head of Quality & Safety of FML enlightened the participants about the ‘New Regulations & Monitoring Systems for vessels calling USA, Australia, Singapore and Gulf of Aden’. Mr. Torfin Eide of Tailwind AS, Bergen, Norway touched upon ‘Credit Crunch, Customer Challenges, Climate Change and Crew Crisis’. Also topics on “Bulk Carrier Vetting & Role of Rightship”, dealt by Capt Sanjay Dhareshwar – Right Ship, Australia (non-Tanker) and ‘Vetting Inspections – Get, Set & Go’ presented by Capt A. K. Nanda – Operations Superintendent of FSMPL and ‘Scavenge Space Inspections’ explained by Mr. Sanjay Chandra were given a lucid portrayal.

Three other topics that were briefly dealt included: “An owner’s View on Fuel Quality’ presented by Capt Hans Schrijver of Vroon B.V. Breskens, Netherlands; ‘Brief Introduction to UACC’ by Capt Vikas Malhan – Operations Manager of United Arab Chemical Carrier (UACC), Dubai and ‘Discipline at Sea, Command and Management’ by Capt Zareer D. Antia – Assistant General Manager, Tata NYK Shipping (India) Pvt Ltd.

The two-day programme ended with a group workshops which offered opportunity to participants to interact so as to acquire a better understanding of the various issues that have a direct bearing on maintaining a high quality profile. The organisers hosted a cocktail dinner on the night of the first day highlights wherein long serving officers who had put in more than five-years, ten-years and more years of service were felicitated.

Quality driven ‘Fleet’ on course to excellence

During the two-day Seminar, quality driven Fleet Management Ltd (FML) focused on its quest for excellence featuring its enviable track record and World Class Safety and Environment friendly systems in place. Mr. K. S. Rajvanshy, Managing Director, Fleet Management Ltd., Hong Kong significantly brought out the contributory factors that helped convert the fleet (now at over 200 in number) into a top of the line management company.

It is the company’s portfolio of services that helped it chart the path to success he pointed out. “What we do includes 3rd party technical management, lay-up solutions, insurance, inspections and condition surveys, shipboard audits, training videos, new building supervisions, special projects and IT systems all of which form the backbone of our quality system,” says Mr Rajvanshy.

A member of the Noble Group Limited, the company boasts of a multi-national crewing pool of over 7000 seafarers comprising mostly of Indians, Filipinos, Chinese and Europeans. The company’s track record is reflected by its several maritime awards for excellence including “Best Ship Manager Award during the Year 2004, consistently nominated as finalist in the Best Ship Manager Category for the last 9 years and numerous other awards for its unique Web-based Ship Management System and online training modules.

Capt Sunao Adachi, Director of MOL Tankship Management Ltd, Japan gave brief insights into the MOL and the Methanol trade. MOL holds 45% of the world’s methanol tanker share.

Making a statistical analysis of incidents, near misses, machinery failure, navigational incidents and crew injuries, Capt A. M. Karandikar, Director & General Manager, FML – Hong Kong contended that accidents will happen as soon as the regular safety barriers are removed or bypassed. “Accidents lurk around the corner waiting to happen when we least expect them,” he said. “Accidents will happen as soon as we take ‘shortcuts’ or try to achieve a routine chore a bit ‘faster’.” Using various case studies of accidents relating to navigation, crew injury, cargo damage and enclosed space, he drove home the reasons leading to the accidents and how they could have been averted.

Capt Karandikar also made presentations on ‘The Company’s MARPOL compliance Programme’ and another on ‘Obstruction of Justice and False Statements – How to avoid them.’ Talking about MARPOL he stated that the company firmly believes in protecting the environment. He disclosed the best practices that required to be adhered to for preventing pollution. Contravention of MARPOL regulations could land a person in jail he explained while giving details of the regulations prevalent in different countries with regard to MARPOL and the stringent measures taken to ensure that these are followed.

Preventing or attempting to prevent an investigation or to impede or attempt to impede or even influence or attempt to influence the course or outcome of an investigation by a government body or authority is considered obstruction of justice he said. In short it is always better to tell the truth and not to create or alter documents after the incident. “If asked to make a false statement or create / alter a document after an incident,” he said, “you must refuse to do so and report the matter to the designated person ashore.”

Continuing on a similar note Mr. Marius Schonberg, Loss Prevention Executive of GARD P & I Club, Norway, discussed the need for safety awareness and risk assessment. What contributes to risk and the type of risks involved were highlighted in his presentation. “The Rules of the Road,” he pointed out are: Navigation must at all times be in accordance with Colregs; the point of passing each other, and Ship-to-ship communication and de-conflicting. Accidents were still happening and risk assessment will help to reduce them.

Presenting the current scenario on ship acquisition and shipping, Mr Umesh Grover, Director (Technical & Offshore Services) of the Shipping Corporation of India stated, “The dry bulk market is the worst affected amongst all shipping sectors. The freight rate decline in tanker segment is relatively lower compared to dry bulk.” All this and other factors according to him clearly indicated a surplus in shipping capacity. When freight rates fall below the operating cost of the less efficient ships then it is time for such ship to be laid up. “However, the future is not as grim as might look today,” he stated.

It was return to basics with Capt M. S. Nagarajan, Director & General Manager (Tanker Team) outlining the company’s bridge procedures and passage planning to stress on maintaining ‘Navigation Safety’. Mr. Sanjay Chandra, General Manager on the other hand made references to the use of nitrogen, its pros and cons when used in different situations which he described in his talk on ‘Over pressurization of parcel tanker and maintenance of tank cleaning machines’.

There are several ways by which cargo shortage and losses can take place thus resulting in ‘Cargo Claims and Operational losses,’ as was amply brought out by Capt Anurag Sharma, Operations Superintendent of Ebony Ship Management Pvt. Ltd, Delhi. Yet another topic that educed lot of interests from the participants was the ‘Case studies of machinery breakdowns’ presented by Mr. Ajay Chaudhry, Technical Manager of Fleet Ship Management Pte Ltd, (FSMPL) Singapore (Engine). He presented details about the Root Cause Analysis and the relevant Investigation and Rectification results.

Several other topics were given indepth treatment by the speakers in their presentations. Capt Mayank Mishra, Head of Quality & Safety of FML enlightened the participants about the ‘New Regulations & Monitoring Systems for vessels calling USA, Australia, Singapore and Gulf of Aden’. Mr. Torfin Eide of Tailwind AS, Bergen, Norway touched upon ‘Credit Crunch, Customer Challenges, Climate Change and Crew Crisis’. Also topics on “Bulk Carrier Vetting & Role of Rightship”, dealt by Capt Sanjay Dhareshwar – Right Ship, Australia (non-Tanker) and ‘Vetting Inspections – Get, Set & Go’ presented by Capt A. K. Nanda – Operations Superintendent of FSMPL and ‘Scavenge Space Inspections’ explained by Mr. Sanjay Chandra were given a lucid portrayal.

Three other topics that were briefly dealt included: “An owner’s View on Fuel Quality’ presented by Capt Hans Schrijver of Vroon B.V. Breskens, Netherlands; ‘Brief Introduction to UACC’ by Capt Vikas Malhan – Operations Manager of United Arab Chemical Carrier (UACC), Dubai and ‘Discipline at Sea, Command and Management’ by Capt Zareer D. Antia – Assistant General Manager, Tata NYK Shipping (India) Pvt Ltd.

The two-day programme ended with a group workshops which offered opportunity to participants to interact so as to acquire a better understanding of the various issues that have a direct bearing on maintaining a high quality profile. The organisers hosted a cocktail dinner on the night of the first day highlights wherein long serving officers who had put in more than five-years, ten-years and more years of service were felicitated.

Quality driven ‘Fleet’ on course to excellence

During the two-day Seminar, quality driven Fleet Management Ltd (FML) focused on its quest for excellence featuring its enviable track record and World Class Safety and Environment friendly systems in place. Mr. K. S. Rajvanshy, Managing Director, Fleet Management Ltd., Hong Kong significantly brought out the contributory factors that helped convert the fleet (now at over 200 in number) into a top of the line management company.

It is the company’s portfolio of services that helped it chart the path to success he pointed out. “What we do includes 3rd party technical management, lay-up solutions, insurance, inspections and condition surveys, shipboard audits, training videos, new building supervisions, special projects and IT systems all of which form the backbone of our quality system,” says Mr Rajvanshy.

A member of the Noble Group Limited, the company boasts of a multi-national crewing pool of over 7000 seafarers comprising mostly of Indians, Filipinos, Chinese and Europeans. The company’s track record is reflected by its several maritime awards for excellence including “Best Ship Manager Award during the Year 2004, consistently nominated as finalist in the Best Ship Manager Category for the last 9 years and numerous other awards for its unique Web-based Ship Management System and online training modules.

Capt Sunao Adachi, Director of MOL Tankship Management Ltd, Japan gave brief insights into the MOL and the Methanol trade. MOL holds 45% of the world’s methanol tanker share.

Making a statistical analysis of incidents, near misses, machinery failure, navigational incidents and crew injuries, Capt A. M. Karandikar, Director & General Manager, FML – Hong Kong contended that accidents will happen as soon as the regular safety barriers are removed or bypassed. “Accidents lurk around the corner waiting to happen when we least expect them,” he said. “Accidents will happen as soon as we take ‘shortcuts’ or try to achieve a routine chore a bit ‘faster’.” Using various case studies of accidents relating to navigation, crew injury, cargo damage and enclosed space, he drove home the reasons leading to the accidents and how they could have been averted.

Capt Karandikar also made presentations on ‘The Company’s MARPOL compliance Programme’ and another on ‘Obstruction of Justice and False Statements – How to avoid them.’ Talking about MARPOL he stated that the company firmly believes in protecting the environment. He disclosed the best practices that required to be adhered to for preventing pollution. Contravention of MARPOL regulations could land a person in jail he explained while giving details of the regulations prevalent in different countries with regard to MARPOL and the stringent measures taken to ensure that these are followed.

Preventing or attempting to prevent an investigation or to impede or attempt to impede or even influence or attempt to influence the course or outcome of an investigation by a government body or authority is considered obstruction of justice he said. In short it is always better to tell the truth and not to create or alter documents after the incident. “If asked to make a false statement or create / alter a document after an incident,” he said, “you must refuse to do so and report the matter to the designated person ashore.”

Continuing on a similar note Mr. Marius Schonberg, Loss Prevention Executive of GARD P & I Club, Norway, discussed the need for safety awareness and risk assessment. What contributes to risk and the type of risks involved were highlighted in his presentation. “The Rules of the Road,” he pointed out are: Navigation must at all times be in accordance with Colregs; the point of passing each other, and Ship-to-ship communication and de-conflicting. Accidents were still happening and risk assessment will help to reduce them.

Presenting the current scenario on ship acquisition and shipping, Mr Umesh Grover, Director (Technical & Offshore Services) of the Shipping Corporation of India stated, “The dry bulk market is the worst affected amongst all shipping sectors. The freight rate decline in tanker segment is relatively lower compared to dry bulk.” All this and other factors according to him clearly indicated a surplus in shipping capacity. When freight rates fall below the operating cost of the less efficient ships then it is time for such ship to be laid up. “However, the future is not as grim as might look today,” he stated.

It was return to basics with Capt M. S. Nagarajan, Director & General Manager (Tanker Team) outlining the company’s bridge procedures and passage planning to stress on maintaining ‘Navigation Safety’. Mr. Sanjay Chandra, General Manager on the other hand made references to the use of nitrogen, its pros and cons when used in different situations which he described in his talk on ‘Over pressurization of parcel tanker and maintenance of tank cleaning machines’.

There are several ways by which cargo shortage and losses can take place thus resulting in ‘Cargo Claims and Operational losses,’ as was amply brought out by Capt Anurag Sharma, Operations Superintendent of Ebony Ship Management Pvt. Ltd, Delhi. Yet another topic that educed lot of interests from the participants was the ‘Case studies of machinery breakdowns’ presented by Mr. Ajay Chaudhry, Technical Manager of Fleet Ship Management Pte Ltd, (FSMPL) Singapore (Engine). He presented details about the Root Cause Analysis and the relevant Investigation and Rectification results.

Several other topics were given indepth treatment by the speakers in their presentations. Capt Mayank Mishra, Head of Quality & Safety of FML enlightened the participants about the ‘New Regulations & Monitoring Systems for vessels calling USA, Australia, Singapore and Gulf of Aden’. Mr. Torfin Eide of Tailwind AS, Bergen, Norway touched upon ‘Credit Crunch, Customer Challenges, Climate Change and Crew Crisis’. Also topics on “Bulk Carrier Vetting & Role of Rightship”, dealt by Capt Sanjay Dhareshwar – Right Ship, Australia (non-Tanker) and ‘Vetting Inspections – Get, Set & Go’ presented by Capt A. K. Nanda – Operations Superintendent of FSMPL and ‘Scavenge Space Inspections’ explained by Mr. Sanjay Chandra were given a lucid portrayal.

Three other topics that were briefly dealt included: “An owner’s View on Fuel Quality’ presented by Capt Hans Schrijver of Vroon B.V. Breskens, Netherlands; ‘Brief Introduction to UACC’ by Capt Vikas Malhan – Operations Manager of United Arab Chemical Carrier (UACC), Dubai and ‘Discipline at Sea, Command and Management’ by Capt Zareer D. Antia – Assistant General Manager, Tata NYK Shipping (India) Pvt Ltd.

The two-day programme ended with a group workshops which offered opportunity to participants to interact so as to acquire a better understanding of the various issues that have a direct bearing on maintaining a high quality profile. The organisers hosted a cocktail dinner on the night of the first day highlights wherein long serving officers who had put in more than five-years, ten-years and more years of service were felicitated.

Monday 16 February, 2009

MSC conference holds an edge

The two-day conference of Mediterranean Shipping Company (MSC) held at the J. W Marriott, Mumbai on 30th and 31st January 2009 was akin to a home coming for the officers of the ship board staff where opportunities abounded for exchanging notes and sharing experiences both with fellow colleagues, ship owners and the management. The occasion coincided with the inauguration of the Training Institute held earlier on the 3rd floor of MSC House, on the Andheri-Kurla Road, Andheri (East), Mumbai.

At the outset Mr N Petroyannis, the chief guest representing MSC Geneva, Mr Ashok Jha, Managing Director of MSC Ship Management, Capt Nitin S Hardi, Director, MSC Ship Mgmt – India and Capt M P Basin, General Manager, MSC Ship Mgmt – India and other top dignitaries lit the traditional lamp.

Thereafter, an enthusiastic welcome was extended by Capt Hardi who was moved by the warm response from the dignitaries, guests and all seafarers who had made it convenient to attend the programme from various parts of India and Hong Kong. “MSC has completed four years of operations in India,” he said. “The total success of this great venture has been possible because of the strong support all of you colleagues here in MSC India have extended. This morning we inaugurated a state-of-the-art training institute which will go a long way in providing training for our seafarers and ensuring safety.”

“Ours is a family organisation and we operate like a family,” Mr Ashok Jha stated while welcoming all the participants and guests. “Your problems are my problems and all our problems are that of MSC’s. Things have undergone a change from the past and your views are important and I thank you for making it convenient to attend.”

In his humble inimitable style Mr Petroyannis who was the chief guest of the function pointed out that he too was a seafarer when he started his career and coming from the same background as all the seafarers present he was well versed about the various issues concerning mariners. “Later, I left the sea and joined a shore job and now I am six months past my superannuation,” he declared. “You are the motivating force that has been propelling the company. We appreciate your contribution to the company and you are neither numbers nor faces but important entities for us.”

Mr Petroyannis went on to explain that the company had put the latest simulators at the training institute which had been inaugurated that morning. He also went on to give a brief history of the organisation starting from its commencement by two siblings to the present moment when the company manages 417 ships.

“We are a 40,000 people organisation around the world,” he said. “It is remarkable that we are doing so well despite the economic downturn.” Thereafter, presenting a slide show he gave a more detailed picture of the company’s economic health which exceeded that of most other shipping companies. “Though the charter market is low and we may dispose of some ships no one will lose his present job,” he added. He went to inform that the company would be taking delivery of the new buildings and continue spending huge sums on repair and maintenance of ships to keep them in excellent condition.
Capt M P Basin, who proved to be an excellent anchor for the function offered a vote of thanks. He gave a briefing about the programme that would get underway during the rest of the day and the following one.

The Conference underscored the issue of safety which was paramount to MSCs’ ideal. The on-going safety programme received a boost with the commissioning of the full mission Bridge and Engine Room simulators. That the training programmes are growing by leaps and bounds even in the current economic scenario is just another demonstration of the top management’s commitment to safety and environment protection and the company’s vision for the future.

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.

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.