Samsara Newsletter

www.samsaragroup.com

Week 24, 2019 (Jun 8 - Jun 14)

Policy & Economy News

Commerce Minister takes major decisions to boost exports, industrial growth

India gets $42 billion FDI inflows in 2018: UN report

Business News - The India Boom Factor

India-LAC trade up 20-fold since 2002; yet huge potential untapped: MEA

India, Portugal to join hands in setting up maritime museum

Govt to make efforts to push engineering exports to $200 billion by 2030

Shipping News

Indo-Nepal trade treaty to be amended to include waterways as mode of cargo transport

Shipping Ministry aims to increase Inter Modal share of Coastal Shipping from 7% to 12% by 2025

Logistics News

Southern Railway expects enhanced freight loading at NMPT

E-commerce accounts for 23 % of total warehouse leasing in 2018: CBRE

Indian Port News

Essar Ports posts record growth in throughput in April-May 2019

JN Port's dredging of the navigational channel to 15 m brings multiple advantages

V. O. Chidambaranar Port inks MoU with Central Warehousing Corporation for facilitating Direct Port Entry

GMB's Cargo traffic grows by 10.38% in April-May 2019 (YoY)

Policy & Economy News

Commerce Minister takes major decisions to boost exports, industrial growth
Exim News Service - New Delhi, June 10 Top
Mr Piyush Goyal, the Commerce and Industry Minister, has taken a number of major decisions to boost exports and industrial growth. The work on some of these decisions, ranging from fast-tracking anti-dumping investigations into goods in the micro, small and medium enterprises (MSMEs) category to initiating research on reducing import dependence, will begin pretty soon, says a report.

Most of the decisions received the Minister's nod after he held a 10-hour meeting with export promotion councils, industry bodies and officials from the Centre and state governments.

In one of the major decisions, the government has decided to initiate an investigation into the top 50 tariff lines, constituting 60 per cent of India's imports, to find ways to reduce import dependence.

Besides, officials have been asked to work with state governments to identify 50 manufacturing clusters across the country. Priority will be given to micro, small and medium enterprises, and most clusters will have a mix of various industries, catering to a complete value chain in a particular geography, it is learnt. Many of these clusters will focus on import substitution, especially for goods in the engineering, textiles and electronics sectors.

The Department for Promotion of Industry and Internal Trade (DPIIT) has been asked to work with industry bodies to organise a national investor promotion event in the next six to nine months. While such investment summits have mostly focused on foreign investors, this summit would give equal importance to domestic investors, reports said.

Export credit agencies have been directed to shift focus from subsidies to facilitating cheaper availability of loan in foreign currencies to exporters, by June 30, 2019.

Similarly, both Export Credit Guarantee Corporation of India (ECGC) and Exim Bank have been told to speedily raise their loan disbursals to exporters. ECGC will enable a credit guarantee to cover foreign currency lending to MSMEs while the Exim Bank will provide refinance in foreign currency to commercial banks to support all exporters. MSMEs continue to remain a key focus for Mr Goyal, who has also directed ECGC to extend export factoring for MSMEs, said the report.

India gets $42 billion FDI inflows in 2018: UN report
Press Trust of India - Paris, June 14 Top
India received foreign direct investments worth USD 42 billion in 2018, helped by robust inflows in manufacturing, communication and financial services, a United Nations trade report said. In South Asia, FDI inflows increased by 3.5 per cent to USD 54 billion, said the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2019. So, India attracted over 77 per cent of the total foreign direct investments that came to the South Asian region.

"Investment in India - the subregion's largest recipient - rose by 6 per cent to USD 42 billion with strong inflows in manufacturing, communication, financial services and cross-border merger and acquisition activities," said the report.

The UN trade report said the prospects for FDI inflows into South Asia are largely determined by expectations of growing investment into India. In India, the growth in cross-border merger and acquisitions (M&As) grew to USD 33 billion in 2018 from USD 23 billion a year ago, primarily due to transactions in retail trade (USD 16 billion), which includes e-commerce and telecommunication (USD 13 billion).

Business News - The India Boom Factor

India-LAC trade up 20-fold since 2002; yet huge potential untapped: MEA
Daily Shipping Times - New Delhi, June 13 Top
Mr G.V. Srinivas, Joint Secretary (LAC), Ministry of External Affairs, Government of India has said the trade between India and the Latin America and the Caribbean (LAC) region has grown 20-fold in last two decades but still there is a lot of potential.

Speaking at 'Industry Interaction on India-LAC Trade and Investment', organized by FICCI, jointly with Inter-American Development Bank (IDB), Mr Srinivas said, "Trade between LAC and India has grown 20-fold from $2 billion in 2002 to $39 billion in 2018 with India's exports around $13 billion and imports of $26 billion." Both LAC countries and India have witnessed encouraging growth in recent years "though a lot of potential yet remains untapped", he added.

He further added that many leads have emerged from the recent interactions India had with the region including 'Lithium Triangle' of Bolivia, Argentina and Chile. The 'Lithium Triangle, he said is welcoming Indian companies to join in the value chain and Bolivia inviting Indian pharmaceutical companies to set up cancer drug manufacturing plant.

India, Portugal to join hands in setting up maritime museum
India Seatrade News - June 12 Top
India and Portugal will cooperate in the setting up of a national maritime heritage museum at Lothal in Gujarat.

The Indian Navy is keen to be a stakeholder in the project and the Portuguese Navy has agreed to assist with their experience of administering the maritime museum in Lisbon, according to defence sources.

Initial discussions were held during the visit of Portuguese Defence Minister Joao Gomes Cravinho to India in April.

"It was agreed that we could work together to develop the maritime museum at the ancient Indian site of Lothal. Portugal Navy looks after their museum in Lisbon so it was discussed that we in India could follow a similar model," a defence source said. A Defence Ministry-led delegation would visit Portugal to study the existing museum, the source added.

The Government of India has allocated a grant for building the maritime museum and the foundation stone for the project was laid by Prime Minister Narendra Modi in March.

The project is being implemented by the Ministry of Shipping through its Sagarmala programme, with the involvement of the Archaeological Survey of India (ASI), the State government and other stakeholders.

Govt to make efforts to push engineering exports to $200 billion by 2030
Economic Times - New Delhi, June 11 Top
The Commerce and Steel Ministries Tuesday assured engineering exporters of making all the efforts to ensure the sector's outbound shipments reach USD 200 billion by 2030.

The issues being faced by engineering sector were discussed in detail during a meeting which was attended by Steel Minister Dharmendra Pradhan, Commerce and Industry Minister Piyush Goyal, senior officials of both the ministries, top steel makers and representatives of engineering export sector.

"...Ministries of Commerce and Industry and Steel will make all efforts to ensure that engineering goods exports double in the next five years and reach USD 200 billion by 2030," the Commerce Ministry said in a statement.

The challenges being faced by the steel sector and import-export trends were also discussed in the meeting.

The protectionist measures being imposed by other countries and the under-utilised capacity in steel manufacturing in India were also discussed in the meeting.

Both the ministers discussed at length the measures that both "may take to reduce unnecessary imports and boost exports," it said.

Engineering exporters are seeking supply of steel at concessional prices so that MSME sector can compete in international markets.

The meeting was attended by Steel Secretary Binoy Kumar, DGFT Alok Vardhan Chaturvedi, senior officers of both the ministries, SAIL Chairman Anil Kumar Chaudhary, members of Indian Steel Association, steel makers including JSW Steel Chairman and Managing Director Sajjan Jindal.

The country's engineering exports rose by 6.36 per cent to USD 83.7 billion in 2018-19 from USD 78.7 billion in 2017-18.

Shipping News

Indo-Nepal trade treaty to be amended to include waterways as mode of cargo transport
Exim News Service - New Delhi, June 9 Top
In order to enhance connectivity between the two countries, the Indo-Nepal Treaty of Trade and Transit 1991 will be amended soon to include waterways as a mode of cargo transport, as currently the treaty allows movement only by road and rail between the two nations, said Mr Pravir Pandey, Chairman, Inland Waterways Authority of India, as per a report.

Currently, the cargo that comes to Kolkata or Vizag has to go by road or rail to Nepal. This is because the trade treaty recognises only these two modes of transport. The clause is being amended to include waterways.

As of now, the routes identified are Kolkata-Sahebganj by waterway and then to Nepal's Biratnagar by road; Kolkata-Kalughat near Patna by waterway and then to Birgunj by road; and Kolkata-Varanasi by waterway and then to either Nepalganj or Mahendra Nagar by road.

Other than this, the Nepal government has also requested India to explore whether the Gandaki river could be used as a waterway right up to the border of the two countries, said the report.

Shipping Ministry aims to increase Inter Modal share of Coastal Shipping from 7% to 12% by 2025
Daily Shipping Times - New Delhi, June 14 Top
NEW DELHI: Shipping Minister Shri Mansukh Mandaviya recently held a detailed meeting with the Senior Officials of the Shipping Ministry on promotion of Coastal Shipping.

The Government has accorded highest priority on the promotion of Coastal Shipping. The Ministry of Shipping aims to increase the Inter Modal share of Coastal Shipping from 7% at present to 12% by 2025.

Logistics News

Southern Railway expects enhanced freight loading at NMPT
Daily Shipping Times - Mangalore, June 14 Top
Southern Railway expects that the mechanised general coal handling facility at New Mangalore Port Trust (NMPT) could considerably enhance freight loading of its Palakkad Division.

Speaking at the Railway Week Celebrations at Palakkad recently, SR's Principal Chief Operations Manager S. Anantharaman said the launching of Chettinad Mangaluru Coal Terminal Project Pvt. Ltd. (CMCTPL) will improve coal loading and hence the Division to get ready to handle additional coal

The private coal siding coming up at NMPT is expected to be operational by next month

Speaking at the programme, he advised the staff to explore new possibilities to enhance the freight loading in the Division.

He also said that freight customers of the Division can be offered 'station- to -station rate', to attract additional traffic by offering freight discount.

The CMCTPL, built at a cost of Rs 469.46 crore (Rs.4.6 billion) was inaugurated by Union Shipping Ministry Secretary Gopal Krishna recently.

E-commerce accounts for 23 % of total warehouse leasing in 2018: CBRE
Daily Shipping Times - New Delhi, June 13 Top
Leasing of warehousing space went up by over 45 per cent last year to cross 25 million sq ft in seven major cities, driven by e-commerce sector that accounted for 23 per cent of the total demand, according to property consultant CBRE.

CBRE released its report 'Online retail driving realty Elevating the e-commerce game' that examines the link between online retailing (e-tailing) and the logistics sector and the impact of GST on the leasing of warehousing spaces.

Warehouse leasing crossed the 25 million sq ft mark in 2018 in seven major cities -- Delhi-NCR, Mumbai, Chennai, Kolkata, Hyderabad, Pune and Bengaluru, CBRE said, adding that the demand for better quality space resulted in rents rising by 10-25 per cent last year.

"The impressive growth of the e-commerce sector has been on the back of favourable policy reforms, tech-enhanced warehouses, rising smartphone and internet penetration, digital India movement, amongst others," the report said.


The growth in e-commerce sector has led to increase in its share in overall warehousing leasing from 10 per cent in 2017 to 23 per cent in 2018, the consultant said.

Indian Port News

Essar Ports posts record growth in throughput in April-May 2019
Exim News Service - MUMBAI, June 10 Top
Essar's Ports business, which operates four terminals on the east and west coasts of India, has registered a 29 per cent growth in cargo volumes in the first two months of the current financial year (April-May 2019), with a throughput of 9.2 million tonnes (MT).

none

The growth has been driven by a 131 per cent increase in third-party cargo when compared to the same
period in the previous financial year. Top
Cargo volumes from captive customers also grew, by 11 per cent.

In May 2019 alone, the four terminals cumulatively handled about 4.8 MT, up 34 per cent when compared to the ~3.6 MT handled in May 2018.

Essar Ports is one of India's largest private sector port operators in terms of capacity and throughput. It has four operational terminals in India-Hazira and Salaya (both in Gujarat) on the west coast, and in Visakhapatnam and Paradip on the east coast. The current operational capacity of the port terminals in India is 110 MTPA, said a release.

JN Port's dredging of the navigational channel to 15 m brings multiple advantages
Exim News Service - Navi Mumbai, June 11 Top
Jawaharlal Nehru Port Trust (JNPT) has enhanced its operational efficiency by dredging the navigational channel to 15 metres, thereby enabling it to berth larger vessels that can carry more consignments at a time, it said in an official communique.

Among the advantages of a deeper channel are allowing the berthing of larger vessels up to 12,500 TEUs, 50 per cent increase in the capacity of vessels that can berth at the port, as well as reduced shipping and handling cost.

Besides, it facilitates higher parcel size of cargo, higher productivity at terminals and higher economies of scale, the communique added.

V. O. Chidambaranar Port inks MoU with Central Warehousing Corporation for facilitating Direct Port Entry
Exim News Service - Tuticorin, June 11 Top
The V. O. Chidambaranar Port Trust, Tuticorin and Central Warehousing Corporation (CWC) have signed a Memorandum of Understanding (MoU) for facilitating Direct Port Entry (DPE) of e-sealed, factory-stuffed export containers to the port under 'Ease of Doing Business'.

With this MoU, Central Warehousing Corporation would make use of the 18,357 sq. m area earmarked in the Truck Parking Terminal, located opposite to Fisheries College, for operating and managing the DPE facility for 30 years on annual lease rental basis. The DPE facility would enable direct movement of containers from factories without intermediate handling requirement at any container freight station, thus facilitating the shippers to gate-in their factory-stuffed goods directly to the container terminal on 24x7 basis.

Hence, with this DPE facility made available by the port at the Truck Parking Terminal, export clearance of factory-stuffed e-sealed containers will be faster, in the process reducing time and cost, said a release.

GMB's Cargo traffic grows by 10.38% in April-May 2019 (YoY)
Daily Shipping Times - Gandhinagar, June 11 Top
The Ports covered under the Gujarat Maritime Board (GMB) handled a combined cargo of 70.57 MMT during April - May 2019, registering a growth of 10.38% as compared to corresponding period previous year. Around 16.49 MMT of Crude oil was handled accounting for 23.3%, during the period.

In FY 2018-19, GMB handled about 57 % of total cargo collectively handled by the Major Ports in Country. Strategically located with 1600 kms coastline, the longest among the maritime States of India, Gujarat is the nearest maritime outlet to Middle East, Africa and Europe with highest number of commercial cargo ports.

---------------------------------------------------------------------------------------------------------------------

Map