News on Ports

• Calcutta Port Trust (CPT) is planning to develop port facilities at Sagar Island to increase the cargo throughput in its hinterland. As a part of the plan, CPT would develop all-weather lighterage facilities at the island, where vessels carrying dry-bulk cargo with an average load of 30,000 tonnes and those carrying liquid cargo with an average load 60,000 tonnes could undergo lighterage operation all over the year. The port has also planned to deepen the draft to over 12 m at Sagar for the purpose.
  
  Meanwhile, the Calcutta Dock Labour Board (CDLB) has incurred a huge deficit of Rs.120 million in the first half of the current fiscal, hence pushing up the estimated total deficit for the whole to be around Rs.235 million.
  
  
• Hazira LNG have floated two investment vehicles to attract foreign direct investment in Gujarat, where the two companies Hazira LNG and Hazira Port, fully owned by Shell, would act as an investment catalyst. The development of the port and LNG terminal is on schedule and the company is set to award the procurement and civil contracts.
  
  
• Kochi Port handled the maximum volume of seafood exported from India during the first five months of the current fiscal amounting to 29,667 tonnes and the value wise exports from Kochi were to the tune of Rs.4.4 billion during the same period. However the ports in Tamil Nadu have exceeded the Kochi port in terms of value in marine exports during this period.
  
  
• Public Investment Board (PIB) has cleared the revised cost estimate of Rs.10.58 billion for India's first major corporatised port at Ennore. Based on the revised cost estimates, the Department of Shipping has worked out a debt-equity ratio of 1.5:1. The construction of the Ennore Port was financed largely by loans provided by the Asian Development Bank (ADB).
  
  
• Visakhapatnam Port has achieved an all-time high operating surplus of Rs.1.05 billion during 1999-2000 against Rs.0.92 billion during 1998-99. The net surplus during 1999-2000 was Rs.0.86 billion before making the appropriations of special nature. The port has already spent Rs.0.95 billion on infrastructure development projects in 1999-2000. It has achieved the cargo throughput of 39.51 million tonnes in 1999-2000 against 35.65 million tonnes in 1998-99.
  
  
• Mormugao Port is likely to float global tenders to acquire four barge unloaders with a capacity of 500 tonnes per hour at an estimated cost of Rs.70 million each to handle the iron ore traffic. As the port handles large quantities of iron ore mainly for exports, the barges are deployed for transportation of the ore from the mines by the inland waterways.

News on Shipping

• SCI board is awaiting the decision of Union Government on the three-way split as recommended by the PricewaterhouseCoopers (PwC) to restructure the company into three separate profit centers viz container division, bulk and tanker (B&T) division and offshore division. The proposed trifurcation of SCI is aimed at making the company suitable for investors, focusing on the respective segments. The decision couldn't be taken in isolation as it is linked to the divestment programme.
  
  Meanwhile, the Shipping Corporation of India has posted 150% increase in net profit at Rs.840 million for second quarter ended September 30,2000 as against Rs.337 million in Q2 last year.
  
  SCI has recovered dues from the oil companies to the extent of Rs.3.2 billion over the last three months. The dues have been reduced significantly to Rs.3.2 billion from the earlier level of Rs.6.5 billion.
  
  In a separate development, the SCI is likely to hold 50% equity in the proposed joint venture ship owning and operating company bidding for LNG shipping deal of Petronet LNG Limited and the remaining 50% would be held by the foreign consortium partners such as Mitsui O.S.K. Lines, K Line and NYK Line of Japan.
  
  Meanwhile, the board of SCI has already approved both the ECB proposals from the Royal Bank of Scotland and the Bank of Nova Scotia for acquisition of four Aframax carriers for which the orders have already been placed to Hyundai Heavy Industries Company Ltd of South Korea.
  
  
• Great Eastern Shipping has decided to go in for a buy back of its shares through open market operations for which the company has allotted Rs.1.5 billion. The maximum buyback price at Rs.42 per share translates in to a premium of about 31% over the existing market price of Rs.32.
  
  
• Essar Shipping has registered an increase in net profit to Rs.200 million for the second quarter ended September 2000, over Rs.42 million for the same period last year. However, net sales has declined by 6.7% to Rs.917 million from Rs.984 million. The increase in net profit was on account of increase in net charter earnings and reduction in lease/bareboat rentals and interest cost. The interest expenses stood at Rs.113 million, whereas depreciation was at Rs.110 million.
  
  Meanwhile, the board of Essar Shipping Ltd. has approved the proposal to skim off its Vadinar port and terminal project to a separate subsidiary with a view to restructuring the business of the company. The project cost had been revised to Rs.18.74 billion from the original estimate of Rs.14.35 billion, following a re-appraisal by ICICI.
  
  In a separate development, Essar Shipping Limited has announced its tie up with Malaysia International Shipping Corporation, Berhad for bidding shipping contract of transporting 5.0 million tonnes of LNG from Qatar for 25 years at Petronet LNG Limited, Dahej in Gujarat.
  
  
• Ministry of Surface Transport has sought infrastructure status and access for coastal shipping to the Infrastructure Development Finance Corporation funds to boost coastal shipping. It has also approached the Finance Ministry for some fiscal incentives to this sector besides seeking the due recognition to coastal shipping by bringing it at par with other modes of transport.

News on Shipyards

• Cochin Shipyard is all set to wipe out its book losses to the extent of Rs.420 million in 2000-01 by the record net profit of more than Rs.440 million in 1999-2000. The shipyard, which has been so far concentrating on traditional activities such as ship-building, ship-repairs and the construction of offshore platforms, is planning to explore opportunities in the construction of sub-sea pipeline required for production and transportation of crude from offshore oilfields, construction and repair of LNG vessels and the construction of dredgers for inland waterways and ships for coastal movement.

News on Logistics

• Union cabinet has approved the ordinance of dedicated fund for the development and maintenance of National Highways. The funds, flowing into the dedicated road fund, will be distributed in the ratio of 57.5% for the development and maintenance of national highways, 12.5% for the development of rail over bridges and 30% for the development and maintenance of the State highways. The Central Road Fund would be managed by the Department of Road Transport and Highways in the Ministry of Surface Transport.
  
  
• Concor is likely to post a turnover of Rs.1.2 billion by the end of the current fiscal, compared to Rs.0.94 billion registered in previous year. Concor has registered a growth rate of 18% by handling 70,000 TEUs during the half year ended September, 2000 against 58,000 TEUs in the same period last year.
  
  Meanwhile, the high-speed wagons, procured by Concor is expected to be inducted into the Chennai/Bangalore-Delhi circuit by November and likely to reduce the transit time between Chennai and Delhi segment to 48 hours from the present level of 80-100 hours.
  
  In a separate development, Concor has announced to launch Consea LCL direct service at ICD-Hyderabad and Bonded Trucking to CFS-New Mulund/CFS-Dronagiri for re-working and direct sailing. Concor would act as custodian to the cargo up to the hubs in India, i.e CFS- Mulund / CFS Dronagiri, where the LCL consolidator would present the copies of shipping bill to the Customs for verification of the genuineness of documents and check the marks and numbers of the seal on truck as recorded in the documents. Concor has already executed a bond for the transport of the goods from the ICD and vice versa providing direct connections from the hub up to the port of destination facilitating faster reworking, economical transshipment costs and low transit time.
  

Tenders

Calcutta Port Trust has invited offers for
Name of the work: Manning, operation and maintenance of "Tug Parashuram"
Tenders can be collected: 14.30 hours on 27-11-2000. Address for communication: Office of Manager (Marine Operations), Haldia dock Complex, P.O.-Chiranjibpur, Dist-Midnapore, Pin-721 604.
Tel: 03224-52104/52449
Fax: 03224-52251

The Shipping Corporation of India Limited has invited offers for
Name of the work: Sale of Container oriented General Cargo Vessels on "as is where is basis". The vessels are available for inspection at Calcutta and Porbunder from 01-11-2000 to 08-11-2000.
Address for communication: The Shipping Corporation of India Limited, Nehru Center, and Discoveryof India Building, Dr. Annie Besant Road, Worli, Mumbai-400018. Sealed offers to be submitted between 1500 hrs to 1530 hrs on 09-11-2000
Tel: 91-22-4931461
Fax: 91-22-4950356

National Highway Authority of India has invited offers for
Name of the work: construction of a new two-lane highway with rigid/ flexible pavement, rigid/flexible overlay on the existing two-lane pavement, construction of bridges, construction of high embankment elevated structure etc.
Tenders can be collected: on or before November 09,2000 on any working day from 11-00 hrs to 17-00 hrs.
Address for communication: Shri J.C Shah, Managing Director, GSRDC, Ground floor, , Nirman Bhaban , Sector-10/A, Gandhinagar- 382010, Gujarat.
Tel: 91-2712-21411/29287
Fax: 91-2712-20043.
Email: mail@gsrdc.com

National Highway Authority of India has invited offers for
Name of the work: Construction and Supervision of Fourth National Highway Project
Tenders can be collected: On or before November 09,2000 on any working day from 11-00 hrs to 17-00 hrs.
Address for communication: Chief General Manager (World Bank), National Highways Authority of India, 1, Eastern Avenue, Maharani Bagh, New Delhi-110065
Tel: (91-11) 6824974
Fax: (91-11) 6924383
Email: nhai@vsnl.com