Samsara Newsletter

Week 5, 2020 (Jan 25 - Jan 31)

Policy & Economy News

India's economy in great position: Bank of America CEO Brian T Moynihan

India to have 450 GW renewable energy by 2030: President Ram Nath Kovind

Business News - The India Boom Factor

Maruti Suzuki Starts Shipping model S-PRESSO Overseas

Four new clusters in TN for leather products manufacturing soon

Govt aiming to take jewellery exports to $80 bn from $40 bn in 5 years

Pharma companies can draw $30 bn revenue from US market by tapping 10 drugs

India-Brazil set target of US$ 15 billion trade by 2022

Shipping News

Transshipment of cargo to N-E States through Chittagong to help coastal shipping

Govt grants two-year extension to rate discount scheme for coastal vehicle carriers

Logistics News

Indore is an important market, its connectivity is vital: JNPT chairman Sanjay Sethi

Railways identifies 6 high-speed corridors, 4 DFCs

Five Indian companies in race to manage Birgunj ICD

Andhra Pradesh flags off country's first 'fruit train'

Indian Port News

state-owned ports too will be free to set tariffs

JSW Infrastructure plans Rs 300cr investment to develop container terminal at NMPT

Cargo traffic at non-major ports up 4.8 per cent to 447.21 MT in April-December

CONCOR to be partner in developing Machilipatnam Port: Balashowry

Essar Ports registers over 20 pc cargo handling growth in Q3

Policy & Economy News

India's economy in great position: Bank of America CEO Brian T Moynihan
Hans News Service - Davos, January 29 Top
Bullish about India, global giant Bank of America's CEO Brian T Moynihan has said the Indian economy is in a great position with a growing consumption story and a lot of untapped potential in terms of its big young population and a large talent pool. He also expressed confidence about the US growth and the overall world economy, citing the estimates of his research team for a 3.2 per cent growth for the global economy and 1.7 per cent for the US in 2020.

"Overall, we feel good about the world. It is a slow growth environment and we have to make our way around it," Moynihan said in an interview. About the US, he said, "We are the biggest economy in the world, and we are still growing. These are good things".

Moynihan was in this Swiss ski resort town last week for the World Economic Forum (WEF) Annual Meeting 2020. Asked about the demographic dividends and other growth prospects for India, the top banker said, "The best thing about your country is, it is big, it is growing, the population is young, the education continues to improve, and you have a huge talent pool." "You have skills and competence for services economy. For future generations, the labour arbitrage may not be the same in terms of voice-based call centres etc, which may have gone out of the system. But that is switching more towards a knowledge economy, and towards the fourth industrial revolution areas."

He said the Indian economy is in a great position and the consumption story is growing there. Moynihan, who leads a team of more than 2 lakh employees serving investors and customers across the US and around the world, said the corporates and the countries keep training their people for new skills required for the next phase of growth and same has been the case for even Bank of America for its operations, including at its Indian centres. "We have made people more competitive with our own training. That's what we need to do as responsible corporates. When we hire a person, it is not for just one job, but for all kinds of potential jobs over a long period of time. For example, the number of people manning teller machines in banks may have come down, but there are a greater number of relationship managers now. Every country has to think of how to keep their people relevant on skillsets."

"Our teams in India have been doing great and running the businesses very efficiently there." Asked about the change he has noticed since last WEF annual meeting in 2019 regarding global economy and trade etc, Moynihan said, "On economy, our research team's estimate for the world is 3.2 per cent growth (up from 3.1 per cent) for this upcoming year. Their estimate for the US is 1.7 per cent."

"What's going on around the world is you are seeing sort of concerns around China during the course of 2019, but with the trade deal being worked out, people are feeling better. In US, what we see is 1.7 per cent growth, that's a very solid rate right now. Job formation is strong, wages are growing, unemployment is at all-time low, new claims for unemployment are numerically at the lowest level in 30-plus years. On consumer spending side in the US, in our customer base which is about $3 trillion dollar of activity a year, the debit/card usage, money taken out of ATMs, cheques, bill payments etc, all those usage of cash, there the money used is $3 trillion a year, which is pretty big and much bigger than the size of some economies."

Bank of America reported full-year net income of $27.4 billion and total revenue of $91.2 billion for 2019. The company delivered for shareholders in a big way in 2019 by returning a record $34 billion in excess capital through dividends and share repurchases. At the end of fourth quarter its customer deposits surpassed $1.4 trillion and client balances in its wealth management business topped $3 trillion.

India to have 450 GW renewable energy by 2030: President Ram Nath Kovind
Press Trust of India - New Delhi, January 31 Top
India has embarked on an ambitious target of having 450 GW of renewable energy by 2030 and also provide 17 lakh solar pumps to farmers under Pradhan Mantri-Kusum Yojana in coming days to capitalise on this clean resource, President Ram Nath Kovind said on Friday. The country is already working on the target of having 175 GW of renewable energy by 2022 which includes 100 GW of solar and 60 GW of wind energy. As of December 2019, 86 GW of renewable energy capacity has already been achieved. This includes 34 GW of solar and 38 GW of wind energy. Besides, around 36 GW of clean energy is under installation and about 35 GW is under bidding stage.

Addressing a joint sitting of both Houses of Parliament, Kovind said: "Keeping environment conservation in mind, my Government has enhanced the target for producing renewable energy to 450 gigawatts (GW). Under the Pradhan Mantri-Kusum Yojana, it has been targeted to provide more than 17 lakh solar pumps to farmers across the country." He noted that under the second phase of the solar roof top programme, the target is to generate 38 GW of electricity. In September last year, Prime Minister Narendra Modi had announced doubling India's non-fossil fuel target to 450 GW at Climate Action Summit at UN headquarters.

Business News - The India Boom Factor

Maruti Suzuki Starts Shipping model S-PRESSO Overseas
India Seatrade News - January 25, 2020 Top
After making its impact in India, S-Presso from the stable of Maruti Suzuki now forays into international markets. Maruti Suzuki has commenced exports of its chartbuster S-PRESSO to overseas markets. The consignments have left for global markets including parts of Asia, Latin America and Africa regions.

Conceptualized and designed in India, S-Presso has top-rated features such as spacious interiors, ample space, dashboard accents, bold front facia and single aperture headlamps. S-PRESSO is being appreciated by customers, for its commanding seating position, good road visibility and the peppy pickup.

S-Presso is very successful in India and the company claims to have sold over 35,000 units of this model since its launch in September 2019 in the domestic market.

Speaking on the occasion, Mr. Kenichi Ayukawa, Managing Director & CEO, Maruti Suzuki India Limited said, "S-PRESSO is a true symbol of Make in India. The car stands testament to our commitment to offer best in design, technology and safety to our customers both locally and globally. S-PRESSO is widely appreciated by customers in India and we are confident of its acceptance in international markets. With S-PRESSO we are looking to make in-roads in many new markets."

Four new clusters in TN for leather products manufacturing soon
India Seatrade News - January 30, 2020 Top
Tamil Nadu will soon have four new clusters with plug-and-play model factories for leather products manufacturing, according to senior officials of the leather trade and export promotion organisation.

"We have requested the Tamil Nadu government to allocate land for opening leather factories under plug-and-play model and the government also agreed and identified four spots so we expect a lot of foreign direct investment to come to Tamil Nadu," R Selvam, Executive Director, Council for Leather Exports (CLE) told press persons here on Wednesday.

He was addressing a press conference organised by CLE to apprise the latest issues and developments in the leather industry.

He also added that Katpadi in Vellore district; Bargur in Krishnagiri; Tindivanam in Villupuram district; and Irungattukottai near Chennai are the four places identified for the proposed factories.

Under plug-and-play model, the State government offers land, road-connectivity, drainage and electricity connection to industry.

He also clarified that the new factories will be product manufacturing and not processing manufacturing facilities. The factory will produce various leather products such as shoes, handbags and wallets.

PR Aqueel Ahmed, Chairman, Council for Leather Exports, said that scaling up of operations is one of the biggest challenges faced by the industry.

"Make in India, Invest India, Department for Promotion of Industry and Internal Trade (DPIIT) and CLE have together marked six countries to bring investments. We have visited Taiwan and the remaining countries will follow," said Ahmed.

He also added that the new factories that will come up at the four clusters will bring an investment of about $50-100 million and provide 100,000 jobs of which 85 per cent will be for women.

The event also highlighted the 35th edition of India International Leather Fair (IILF) to be held in the city between January 31 and February 3. The four-day event will see around 15,000 participants from 40 countries.

Govt aiming to take jewellery exports to $80 bn from $40 bn in 5 years
Press Trust Of India - Kolkata, January 30 Top
The government is aiming at USD 80 billion of jewellery exports in the next five years from the present level of USD 40 billion, a senior official said on Thursday.

The Centre also expects the jewellery industry to generate additional employment of 2 million, Rupa Dutta, Economic Advisor, Ministry of Commerce, said.

The sector employs about 5 million people.

"Jewellery exports is targeted to touch USD 80 billion in the next five years. In 2018-19 fiscal, the country exported USD 40 billion worth of jewellery," she said.

Dutta said there has been a decline in the growth of jewellery exports this fiscal owing to the global slowdown. "We hope to maintain the level of exports at USD 40 billion in 2019-20, if not more," she said, speaking at the groundbreaking ceremony of eastern India's first Common Facility Centre (CFC) here.

The jewellery industry is a huge employment generator, she said, adding, additional job creation of 2 million is expected over the next five years.

Dutta said CFCs for jewellery trade was envisaged in the 12th Five Year Plan, and this will be the sixth one in the country after Gujarat and Coimbatore.

Artisans will be able to access modern machines for designing and testing at this centre, the official said.

Dutta said entire funding of the CFC, located at the Bowbazar cluster in the city, will come from the commerce ministry, and a local trade body will run and manage it. The CFC is likely to be operational by February.

Chairman of Gem & Jewellery Export Promotion Council (GJEPC), Pramod Agrawal, said it has sanctioned an amount of Rs 5 crore (Rs.50 million) for promotion of Indian jewellery in overseas markets.

Pharma companies can draw $30 bn revenue from US market by tapping 10 drugs
Press Trust of India - Mumbai, January 29 Top
Domestic pharma companies have the potential to grow their revenue from the US by almost five times at around $30 billion from $6.5 billion in 2018 if they properly tap just 10 of the widely consumed drugs in the world's largest drug market, according to an analysis by the World Trade Centre.

Despite being the largest export market for domestic pharma makers, they served only a miniscule 5.6 per cent or $6.5 billion of the over $116 billion American pharma imports of in 2018, show the WTC data.

Despite having good demand from across the markets, primarily due to lower prices and easy availability, India controls only 2.4 per cent of global pharma exports.

With robust manufacturing capabilities, domestic pharma companies have the potential to enhance their exports to the US by almost five times to $29.6 billion, says the WTC in a note quoting data from the UN's International Trade Commission.

The WTC has identified 10 products that constitute about 25 per cent of American pharma imports in 2018 at USD 29.6 billion which constitute about 17 per cent of US imports from India.

These ten products include single vitamins, medicaments affecting central nervous system, cough & cold preparations, dermatological agents & local anesthetics, chemical contraceptives, sterile surgical catgut, antineoplastic & immunosupressive medicaments, and structural analogues among others.

These 10 products constitute around 25 per cent of American drug imports and but the share of Indian companies in 2018 was only worth $1 billion.

Domestic pharma companies shipped products worth $6.53 billion in 2018 to the US, which was only 5.61 per cent of total American imports worth $116.35 billion, showed WTC data.

India-Brazil set target of US$ 15 billion trade by 2022
IBEF - January 28 Top
The visit of the President of the Federative Republic of Brazil, Mr Jair Bolsonaro, is a sign of the growing importance of the India - Brazil bilateral partnership said Union Minister of Commerce and Industry & Railways, Mr Piyush Goyal, during his address at the inaugural session of the India-Brazil Business Forum held in New Delhi today.

He hoped that as Brazil is one of the most important trading partners of India in the entire LAC (Latin America and Caribbean) region trade between the two countries will grow to US$ 15 billion by 2022.

The 15 MoUs signed during the visit of the President of Brazil shows the power of democracy, demography, leadership, the talent pool available in India, India's market and the aspirations of one billion Indian citizens for a better life said the Commerce and Industry Minister. The MoUs of cooperation that have been signed during the presidential visit on investments, trade facilitation, social security, agriculture, defence and double taxation makes this the most productive visit by a Brazilian Head of State.

Commerce and Industry Minister hoped that investments will also grow in the sectors of clean energy, start-ups, railways and creation of value chains between India and Brazil where goods may be semi assembled in one country and finished in another. Piyush Goyal informed that the entire Indian Railway will be fully electrified by 2024 and by 2030 the railway network in India will run completely on clean energy with zero emission.

Commerce and Industry Minister welcomed the announcement made during the visit of President of Brazil to India for visa free travel between the two countries. He added that visitors for business and tourism between two countries will benefit greatly from this.

Commerce and Industry Minister also urged that the India - Brazil Business Leader's Forum may be activated and reconstituted to make it more relevant and contemporary to businesses in both countries.

Commerce and Industry Minister hoped that India's services in wellness sector like Yoga and Ayurveda will further grow as Brazil has a strong community of Yoga and Ayurveda practitioners. Brazil has an association of Ayurveda (ABRA), a non-profit association with offices in 9 states of Brazil and members all over Brazil and the third International Congress on Ayurveda was held from 12 to 15 March 2018 in Rio de Janeiro. The conference saw participation of more than 4000 delegates, including many from India.

India and Brazil share close relationship at the bilateral level as well as plurilateral fora like BRICS, BASIC, G-20, IBSA, International Solar Alliance and in larger multilateral bodies like UN, UNESCO and WIPO stated Commerce and Industry Minister. He further said that the decade long bilateral strategic partnership is based on a common global vision shared democratic values and a commitment to foster economic growth with social inclusion for the welfare of the people of both countries.

Shipping News

Transshipment of cargo to N-E States through Chittagong to help coastal shipping
India Seatrade News - January 27 Top
The proposed transshipment of goods to North-East India, particularly Tripura and Mizoram, through Chittagong port in Bangladesh, may help reduce the cost of sea movement of cargo between the two countries, according to a Kolkata port official.

India and Bangladesh recently prepared ground for transshipment through Chittagong and Mongla port. According to port sources, a trial shipment will soon go to Agartala through Chittagong.

Bangladesh has already granted port connectivity to North-East India through Chittagong. As part of the plan, India upgraded the highway and established rail connectivity between Agartala and border town of Sabroom. However, trade infrastructure and rail connectivity between Sabroom and Chittagong are yet to be put in place.

According to an official till such time as the border trade infrastructure is available at Sabroom, cargo can move, by road, through the integrated check-post (ICP).

Considering the small size of north-eastern economies, and the availability of road and rail infra through Indian territories, port officials in Kolkata do not expect a huge movement of transshipment cargo through Chittagong at this juncture.

However, any availability of such cargo, will help improve viability of Kolkata-Chittagong coastal shipping.

The charter-hire rates on this sea route is currently 'reasonably high', due to one-sided (India to Bangladesh) nature of the trade and non-availability of return cargo. To solve the problem, India invited Bangladesh to use Kolkata for third-country movement of cargo. The proposal is yet to be accepted.

Meanwhile, the high rates reduce the availability of cargo, adding to the waiting time and costs. Addition of transit cargo, may therefore help improve the flow, reducing the transport costs for India-Bangladesh trade.

Govt grants two-year extension to rate discount scheme for coastal vehicle carriers
India Seatrade News - January 31 Top
Scheme aims to promote movement of automobiles along the coast to tap a fuel efficient, cost-effective and environment-friendly mode of transport

In an effort to promote coastal shipping, the Shipping Ministry has allowed state-owned port trusts to extend by two years an 80 per cent discount in vessel-related charges and cargo-related charges given to roll-on-roll-off (Ro-Ro) ships that ferry cars and trucks along the coast.

The discount scheme, first introduced in September 2016, ended in September 2018, after a two-year run. The extended scheme will now be valid till January 2022.

"The Shipping Ministry has directed the major port trusts to extend the scheme by two years," a ministry official said. The scheme will take effect 30 days after it is notified by the Tariff Authority for Major Ports (TAMP), the rate regulator for state-owned ports.

The discount in vessel-related and cargo-related charges for coastal transportation of vehicles through Ro-Ro ships, Ro-Pax, pure car carrier, pure car and truck carrier and pure truck carrier is in line with the ministry's thrust to promote coastal shipping.

Vessel-related charges or marine charges include port dues, berth hire and pilotage.

The ministry is seeking to promote movement of cars and automobiles along the coast to tap a fuel efficient, cost-effective and environment-friendly mode of transport compared with road and rail.

As a step in this direction, in September 2015, the government allowed foreign registered Roll-On Roll-Off (RoRo), Hybrid Roll-on Roll-off (Hybrid Ro-Ro), Ro-Ro-cum-Passenger (Ro-Pax), Pure Car Carriers (PCC) and Pure Car and Truck Carriers (PCTC) to operate along the country's coast by easing a so-called cabotage law, which allowed only Indian registered ships to carry cargo on local routes. The relaxation of the cabotage rule for these categories of ships will run through September 2020.

To make the discount sustainable for shipping service providers, the major port trusts have been asked to carry out intensive marketing for demand generation, he said.

Prior to September 2016, Ro-Ro vessels operating purely on local routes were allowed a discount of 40 per cent over that of the foreign going vessels, according to a government policy for coastal shipping.

With the increase in discount to 80 per cent, it is expected that shipping service providers will be able to attract more automobile cargo through the coastal route and decongest the already congested roads and railways. This will also make Ro-Ro ship service operations more sustainable.

If the Ro-Ro vessels carry other domestic cargo/containers, those will be entitled to a 40 per cent discount only, as per the policy, the official added.

Logistics News

Indore is an important market, its connectivity is vital: JNPT chairman Sanjay Sethi
India Seatrade News - January 25 Top
Jawaharlal Nehru Port Trust (JNPT) chairman Sanjay Sethi on Friday said several steps have been taken to ensure seamless movement of containers at the port. Talking to mediapersons here, he said exporters of Indore region can take benefit of the facilities at JN port. He was in city to address a knowledge session.

"At JNPT, we benchmark our services against the best ports in the world and are constantly evolving to meet demands of global market. Indore is an important market for us, therefore connectivity from here is vital as it will help to boost market economy of Madhya Pradesh," he added.

He further said EXIM community in the city can now take advantage of port's facilities to trade across the world. "This will definitely open up an opportunity for enhancing cargo generation between Indore and JNPT," Sethi added.

The city is connected with JNPT through rail, CONCOR Container Corporation of India (P) Ltd. It connects traffic of ICDs of Pithampur and Ratlam to JN port. Distribution Logistics Infra Pvt Ltd connects traffic of ICD Dhannad to JN port.

According to Sethi, the completion of Indore-Manmad railway will facilitate movement of containers from Indore to JN port. He said JNPT is constantly upgrading capabilities to offer cost-effective integrated logistics solutions through infrastructure expansion plans. The upgradation steps include automation, an inter-terminal transfer system linking all terminals, Direct Port Delivery Services helping faster delivery of import consignments at reduced costs, creation of logistics data bank to track movement of containers and introduction of new tariff incentives for rail cargo to promote modal shift.

He said JNPT is constantly upscaling its operations to provide state-of-the-art technology, efficiency and manpower, which are of international standard.

Earlier, JNPT and Antwerp Port Authority organised a Knowledge Session on, 'Gateways for trade between the India-Europe corridors' here. It was attended by leading industrialists and traders.

Railways identifies 6 high-speed corridors, 4 DFCs
India Seatrade News - January 30 Top
The Railways has identified six new high-speed and semi-high speed rail corridors in the country and also four new Dedicated Freight Corridors, and the detailed project reports on these sections has been sought.

Railway Board Chairman V.K. Yadav said, "The Railways has identified six sections for high speed and semi-high speed rail corridors. And the detailed project report on all these sections will be completed within one to two years."

He said the railways has identified six new corridors for the high-speed or semi-high speed are - 865 km Delhi-Agra-Lucknow-Varanasi, 886 km Delhi-Jaipur-Udaipur-Ahmedabad, 753 km Mumbai-Nashik-Nagpur, 711 km Mumbai-Pune-Hyderabad, 435 km Chennai-Bengaluru-Mysuru and 459 km Delhi-Chandigarh-Ludhiana-Jalandhar-Amritsar corridors.

He said the internal study on the traffic potential and feasibility has been made for these corridors and on the funding aspect the railways is thinking of public private partnership or loan from the international agencies. Yadav further said that the work on the Dedicated Freight Corridor will be completed by December 2021.

He said, "Already we have started operations on over 500 km of the Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC)."

Giving the details, he said, on EDFC, operations have started on 194 km between Khurja-Badhan and on 306 km stretch between Madar-Rewari on WDFC.

The 3,373-km DFC, a flagship project of the Railways, aims to augment rail transport capacity to meet the growing requirement of movement of goods by segregating freight from passenger traffic.

The Western DFC runs from Jawaharlal Nehru Port in Mumbai to Tughlakabad and Dadri near Delhi, and aims to cater largely to the container transport requirements between the existing and emerging ports in Maharashtra and Gujarat and the northern hinterland.

The 1,839 km Eastern DFC runs from Ludhiana in Punjab to Dankuni near Kolkata - to be extended in future to serve the new deep-sea port proposed in the Kolkata area, and will largely handle coal and steel traffic. The Dedicated Freight Corridor Corporation of India plans to run freight trains at a maximum speed of 100 kmph as against the current 75 kmph.

It also plans to increase the average speed of freight trains from the existing 26 kmph to 70 kmph on the DFC. Yadav also said that the national transporter is looking for four new Dedicated Freight Corridors. He said, the railways has identified the new freight corridors - 1,114 km East Coast Corridor from Kharagpur to Vijaywada, 1,645 km East West Sub Corridor between Bhusaval-Wardha-Nagpur-Rajkharswan-Kharagpur-Ulberia-Dankuni, 195 km East West Sub Corridor II, between Rajkharswan-Andal and 975 km North South sub Corridor from Vijaywada to Itarsi.

He said the Railways will now carry out the detailed project report of the 3,933 km four freight corridors and they will be completed in the next one or two years.

Five Indian companies in race to manage Birgunj ICD
India Seatrade News - January 31 Top
Five companies have submitted their bid documents expressing interest to take over the management of Inland Container Depot of Birgunj.

According to Intermodal Transportation Development Committee, five companies have submitted their bids by January 24 - the last day to submit bids. The minimum estimated amount is Rs 2.4 billion for a period of five years.

Container Corporation of India Ltd - an entity of Indian Railways, Adani Logistics Ltd - the operator of Mundra Dry Port of Gujarat and Dhamra Dry Port of Odisha, Pristine Logistics - the operator of Kanpur ICD, J M Bakshi Group - the operator of dry ports in Visakhapatnam and Haldia, and Apna Logistics Solution-Jagdamba JV of Hyderabad are competing in the bidding process, according to officials of the committee.

"We will first open and evaluate technical proposals of all the five bidders. We will then open financial proposals of the shortlisted bidders," Homindra Mohan Shahi, an officer at Intermodal Transportation Development Committee told.

Intermodal Transportation Development Committee is the government agency that oversees management of dry ports.

"We are currently evaluating technical proposals of the bidders. It will take around one and half months to complete all the procedures," he added.

The successful bidder will have to look after overall management of Birgunj ICD, including operation and management of freighter trains, loading and unloading of trains and warehousing etc of imported and exported goods.

Himalayan Terminal has been looking after the management of Birgunj ICD ever since its inception. It received contract for the second term of five years in January, 2015. Himalayan Terminal first bagged the management contract in 2004, agreeing to pay the committee Rs 530 million for 10 years. Container Corporation of India Ltd is the major shareholder of Himalayan Terminal.

According to traders, dry port has made trading lot easier. Use of railway service for transport of goods is safer and faster compared to roads, they added.

Andhra Pradesh flags off country's first 'fruit train'
India Seatrade News - January 31 Top
A 'fruit train', said to be the first of its kind in the country, was flagged off from Tadipatri Railway Station in Anantapur district on Thursday afternoon, carrying a load of 980 metric tonnes of locally grown bananas to the Jawaharlal Nehru Port in Mumbai, from where the consignment will be exported to Iran.

Container Corporation of India Ltd. (CONCOR) Chief General Manager D. Satyanarayana, A.P. Horticulture Commissioner Chiranjiv Chaudhary, Desai Fruits Venture Founder Ajit Desai and Guntakal Divisional Railway Manager Alok Tiwari formally flagged off the exclusive air-conditioned container rake in the presence of Agriculture Minister Kurasala Kannababu.

"This is the first time in India that an entire train is being sent to the gateway port (JNPT) for export. This helps save both time and fuel as 150 trucks would have been required to send a consignment of this size by road to JNPT, which is over 900 km away, before the temperature-controlled containers are loaded on ships," Mr. Satyanarayana said.

The Horticulture Commissioner said there was a potential to send 10,000 MT of fruits from Tadipatri after sourcing them from Anantapur and Kadapa districts. The government was targeting exports of 30,000 MT of fruits from all over Andhra Pradesh, and had roped in six major corporate companies to collaborate with the local farmers to enhance the productivity, quality of produce, post-harvest treatment and packing, providing market linkage and ensuring higher prices with a regular increase in income year-on-year.

The bananas are being exported under the brand name 'Happy Bananas'. Farmers from Putlur region in Anantapur and Pulivendula in Kadapa district are exporting 'Green Cavendish' bananas to many international markets.

Indian Port News

Soon, state-owned ports too will be free to set tariffs
India Seatrade News - January 30 Top
Govt to commission study to work out the modalities of dynamic pricing

The Centre is weighing a policy to introduce dynamic pricing of services at state-owned ports, broadly following a model adopted by other consumer-facing transport sectors such as airlines and the Railways.

"Like private ports, the major ports will also be able to offer tariffs to various trades depending upon the volumes, frequency, etc. The policy ll be applicable only to services, both vessel- and cargo-related, provided by the 12 major ports run by the Centre," a government official briefed on the plan said.

Private terminals operating at major ports will not be covered under the policy.

"Currently, port trusts offer volume discounts/rebates to customers for container cargo and concession in vessel related charges to container ships after taking approval from its board of trustees. Once the dynamic pricing policy is in place, the port trusts will be able to raise or lower the rates at their discretion without going to the board," the official said.

The government will soon commission a study to work out the modalities and the mechanism for dynamic pricing of services, he said.

"The policy will allow port trusts to increase or decrease the rates based on circumstances and from customer to customer without being looked at with suspicion by the government's oversight agencies," he stated.

Port Authorities Bill

The move to adopt dynamic pricing comes as the Shipping Ministry gears to introduce the Major Port Authorities Bill in the Budget session of Parliament, seeking to convert each of the 11 port trusts into port authorities. The biggest structural reform of the state-owned ports has been in the works since the Narendra Modi-led National Democratic Alliance (NDA) government assumed office in 2014 and retained power in 2019.

Once the Major Port Authorities Bill is passed by Parliament and signed into law, each port authority would be free to fix tariff for its assets and services.

"Yet, the power to levy rates based on dynamic pricing will have to backed by a government policy," the official said.

Currently, the rates for 11 of the 12 ports run by the Centre are set by the Tariff Authority for Major Ports (TAMP), the rate regulator for the ports that are run as trusts.

Kamarajar Port Ltd, the entity that runs the port located at Ennore near Chennai, is outside the purview of TAMP because it was formed as a company under the Companies Act when it was started in 2001.

The 12 ports together account for some 53 per cent of India's external trade shipped by sea. In the year to March 2019, these ports together loaded 699.05 million tonnes of cargo, translating into capacity utilisation of 46.17 per cent. The 12 ports have a combined capacity of 1,514.09 mt

JSW Infrastructure plans Rs 300cr investment to develop container terminal at NMPT
India Seatrade News - January 30, 2020 Top
JSW Infrastructure on Wednesday said it has signed a concession agreement with New Mangalore Port Trust (NMPT) to develop and operate its first container terminal project at the port for 30 years.

The infrastructure company, part of the USD 14 billion JSW Group, is investing nearly Rs 300 crore (Rs.3 billion) to develop the terminal which will have a capacity of 400,000 TEUs (twenty- foot equivalent units), it said.

As part of the proposed investment, JSW Infrastructure will undertake mechanisation of berth number 14 for handling containers and other cargo on Design, Build, Finance, Operate and Transfer (DBFOT) basis, the company said in a statement.

The container terminal will have a quay length of 350 metres and accommodate vessels up to 9000 TEUs. It will have a backup storage area of 15.5 hectares for storage of container. Joint MD & CEO of JSW Infrastructure Arun Maheshwari said the concession agreement with NMPT is part of the company's strategic direction to achieve 200 MTPA cargo handling capacity over next couple of years.

"Container terminal at NMPT will enable us to expand our footprints in container segment and diversify our cargo mix. We expect to commission the terminal by mid of next year," he said.

Senior Vice President of JSW Infrastructure, Devki Nandan, added: "We plan to introduce main line vessels connecting to key destinations worldwide." NMPT is an all-weather, lagoon type port situated at Panambur, Mangalore in Karnataka and is one of the major ports playing a key role for the economic development of Karnataka.

Over the years, the NMPT has grown fast to handle over 42 million tonnes of cargo traffic in 2018-19. Container traffic at NMPT has been growing at a CAGR of 15 per cent since 2013 as compared to Indian container traffic growth of 7.52 per cent, according to the statement.

Cargo traffic at non-major ports up 4.8 per cent to 447.21 MT in April-December
India Seatrade News - January 30 Top
Negative growth was seen at Goa, Kerala Maritime Board, Maharashtra Maritime Board and Directorate of Ports, Andhra Pradesh.

Cargo traffic at India's non-major ports jumped 4.8 per cent in April-December period of the current fiscal to 447.21 million tonnes (MT), a Shipping Ministry report has said.

These non-major ports had recorded a cargo traffic of 426.53 MT in the April-December period of 2018-19.

During the April-December 2019-20, Directorate of Ports at Odisha recorded highest growth in traffic at 64.2 per cent followed by Ports of Tamil Nadu Maritime Board (34.1 per cent), Directorate of Ports, Puducherry, 27.7 per cent) and Ports Management Board, Andaman & Nicobar Islands (25.4 per cent) against the corresponding period of the previous fiscal, as per the report.

Directorate of Ports, Karnataka, recorded a growth of 25 per cent while Gujarat Maritime Board recorded a growth of 4.1 per cent.

Negative growth was seen at Goa, Kerala Maritime Board, Maharashtra Maritime Board and Directorate of Ports, Andhra Pradesh (2.1 per cent).

However, when it came to handling cargo, Gujarat Maritime Board handled the maximum cargo of 304.99 MT with a share of 68.2 per cent followed by Directorate of ports, Andhra Pradesh (17 per cent), Maharashtra Maritime Board (6.8 per cent) and Directorate of Ports, Odisha (5.7 per cent), the report said.

It said Directorate of Ports, Puducherry, cargo share stood at 1.8 per cent, Andaman & Nicobar Islands at 0.3 per cent and Directorate of Ports, Karnataka and Tamil Nadu Maritime Board at 0.2 per cent each during April-December, 2019-20.

The report said Gujarat Maritime Board handled the maximum overseas Cargo of 269.99 MT with a share of 71.2 per cent followed by Directorate of Ports, Andhra Pradesh (16.5 per cent) and Directorate of Ports, Odisha (6.0 per cent).

As far as coastal cargo was concerned Gujarat Maritime Board handled 35 MT with a share of 51.6 per cent followed by Maharashtra Maritime Board (22 per cent).

Gujarat has a long coastline of about 1,600 km.

CONCOR to be partner in developing Machilipatnam Port: Balashowry
India Seatrade News - January 25 Top
YSRCP Member of Parliament Vallabhaneni Balashowry on Friday said Container Corporation of India (CONCOR) would become a partner in developing the Machilipatnam Port.

The CONCOR had proposed Rs 3,000-crore (Rs.30 billion) Integrated Logistics Manufacturing Zone (IMLZ) in Machilipatnam as a part of the port project, Balashowry said.

He said a Special Purpose Vehicle (SPV) would be formed for the project with 40 percent stake of Machilipatnam Urban Development Authority (MUDA) and 60 per cent of CONCOR.

In the evening, CONCOR Chairman and Managing Director V Kalyana Rama met Andhra Pradesh Chief Minister Y S Jaganmohan Reddy at his residence and discussed the Machilipatnam Port project.

R Karikal Valave, Special Chief Secretary to state government, Infrastructure and Investment department also participated in the meeting.

Essar Ports registers over 20 pc cargo handling growth in Q3
Exim News Service - MUMBAI, Jan. 30 Top
Essar's ports business, which operates four terminals on the east and west coasts of India, has registered 20.09 per cent growth in cargo volumes in the third quarter (April-December) of the current financial year with a throughput of 14.02 million tonnes (MT).

Speaking on the performance, Mr Rajiv Agarwal, MD & CEO, Essar Ports Ltd, said: "Significant boost in hinterland industry consumption has been the key growth driver. Largely the growth has been on account of our terminals in Salaya (west coast) and Vizag Port (east coast). Our continuous focus on increasing the capacity of handling through upgradation and mechanisation, and driving operational efficiencies, has helped in recording strong growth. We are committed to delivering world class services and our focus is to ensure seamless continuity in services on a sustainable basis."

In December 2019, the Hazira terminal handled one of the highest levels of cargo (more than 2 million tonnes) for AM/NS India, erstwhile Essar Steel. With modular expansions undertaken at Hazira terminal, it is equipped to handle increased volumes for its existing customers, emphasised a release.


Key growth factors

* Capacity expansion at terminals and enhanced capacity utilisation by existing customers

* Ensuring operational efficiency and high service levels on a sustainable basis to customer

* A balanced cargo mix

* Terminals with long-term concessions or licence agreements with port authorities

* Long-term cargo handling agreements with existing customers, ensuring sustainability

* New customer additions in Salaya, Vizag and Hazira