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News on Ports
Reliance
Ports & Terminals plans to raise $ 240 million The
Reliance group is planning to float a global depository receipts
(GDR) issue of $ 400 (close to Rs.2, 000 crore) through two of
its infrastructure based companies – Reliance Utilities &
Power (RUPL) and Reliance Ports & Terminals (RPTL). Of this
total amount to be raised through GDR issue, RPTL will raise $
240 million while RUPL will raise $ 160 million. Reliance Group
is also reported to be planning to place 15 % of the equity in
the two companies with foreign investors. The proposed GDR is
planned to be listed on the Luxemburg Stock Exchange. RTPL currently
operates a captive 50 million tonne port, which is said to be
the largest private sector port in India. The port mainly receives
crude oil, which is subsequently processed in the Jamnagar refinery.
The funds being raised are likely to be used for capacity expansion
and capital expenditure in the port’s operations.
News on Shippings
Essar
Shipping sees decline in Q4 net Essar
Shipping has reported a decline in net profit to Rs.20.40 crore
for the fourth quarter ended March 31 2002 as compared to Rs.49.73
crore in the corresponding quarter last year. Income from operations
too declined to Es.124.72 crore from Rs.137.63 crore last year.
For the year ended March 31 2002, net profits stood at Rs.72.76
crore as against Rs.100.27 crore last year. Total income however,
was up by four per cent to Rs. 490.98 crore from 472.39 crore.
The decline is attributed to the substantial fall in freight rates
in the crude carrier segment.
IPBC
war-risk levy for ports north of Mumbai The
member lines of the India/Pakistan/Bangladesh/Ceylon (IPBC) conference
serving the trade route between some West coast ports and Europe
have notified a war risk surcharge of $ 25 per TEU with effect
from July 1 2002. The notification follows a decision by the insurance
underwriters to cancel contracts for ports north of Mumbai. The
move will affect two ports in Pakistan as well viz. Karachi and
Qasim. Earlier the feeder operators serving the trade route between
Indian sub-continent and West Asian ports had announced an additional
war risk surcharge of $ 50 per TEU for laden containers. The war
risk surcharge will affect containers moving in and out of the
ports of Mumbai, Jawaharlal Nehru port, Kandla and Pipavav in
India and Karachi and Qasim in Pakistan.
Star
Cruises plans operations out of Mumbai Star
Cruises, the Norway-based cruise liner company regarded as fourth
largest in the world has shown interest in starting its services
from Mumbai. The cruise liner company has been reported offered
a shed by the Mumbai Port Trust. According to available data while
only about 1000 Indians cruised in 1996-97, around 10,800 have
opted to cruise in 1999, which has further increased to 21,000
in 2001. According to forecasts made by Star Cruise the number
of people going on cruises is expected to further go up to 30,000
b y end of 2002. Currently Indians have to fly to Singapore or
some other country from where the cruise line operates. Star Cruise
is also reported to be looking for a possible joint venture partner
for the project. Cruise shipping is a seasonal activity in Indian
waters, as seas are very rough during the monsoon months and cruise
ships have to suspend operations during unfavorable season.
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News on Inland Waterways
IWAI
seeks private sector investments in national waterways Inland
Waterways Authority of India (IWAI) has worked out model agreement
for inviting private sector participation in the development of
three national waterways. Based on the model agreement, the IWAI
is planning to invite bids for 10 projects in August 2002. The
likely private sector participation will be mainly in two streams
– setting up of cargo terminals and running of vessel services
on the identified waterways. Some of the major shipping companies
like Shahi Shipping and Essar Shipping, besides other smaller
shipping companies like Vivadas Inland Shipping Company and Lots
Shipping have shown interest in participating in these projects.
The terminals on the Ganga waterway would be at Allahbad, Varanasi,
Chunar and Mirzapur (all in Uttar Pradesh) and on the Brahmaputra
at Dhubri, Tejpur and Meamati (all in Assam). These terminals
would be run on a build-own-operate (BOT) basis and would have
container handling capacity ranging from 10,000 to 20,000 tonnes
per annum. The IWAI is also planning to set up an Rs.25.15 crore
terminal at Patna on its own, with a capacity of 20,000 tonne
per annum to serve the container movement to and from Nepal.
Kerala
government to revive Vizhinjam port project The
Kerala government is seeking to revive the long pending proposal
for the development of Vizhinjam port near Thiruvanathapuram,
with steps being taken to conduct a technical feasibility study
on the project. Under the initiative, ICICI-Kinfra, a joint venture
between ICICI and Kerala Industrial Infrastructure Development
Corporation has entered into tie-up with Tata Consultancy Services
(TCS) for conducting the study. The JV has already completed a
similar technical feasibility study on the development of Azhikal
port in Kannur district in association with Howai India Ltd. The
proposal is to develop the existing harbour at Vizhinjam into
a major commercial port on a build-own-operate (BOT) basis and
the project is estimated to cost Rs.800 crore in the first phase.
The Vizhinjam port is one of the five minor ports in Kerala identified
for development way back in 1995. It is considered to have the
potential to become a major container transshipment terminals
being close to international shipping route between UK, West Asia
and Far East.
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News on Logistics
Transport
subsidy for more agri product exports
After
announcing transport subsidy for export of food grains and sugar,
the government is reportedly considering extending the scope of
transport subsidy to fruits, vegetables, dairy products, poultry
and processed food as well, in an effort to boost agro exports
from the country. The subsidy scheme, which is compatible with
the WTO requirements, is expected to come into operation in July
or August. Agricultural Products Exporters Development Authority
(APEDA) has prepared a draft formula for the subsidy scheme suggesting
a margin subsidy at the rate of 20-40 per cent of the total transport
cost incurred. Meanwhile, as per data released by the Central
Statistical Organization (CSO) the performance of agriculture,
forestry and fishing sector registered a 5.7 per cent growth during
2001-02 as against decline of 0.2 per cent in the previous year.
Improved performance of agriculture has had a positive impact
on the country’s gross domestic product (GDP), which grew
by 5.4 per cent during 2001-02, against 4 per cent last year.
CONCOR
planning major forays in logistics services The
Container Corporation of India (CONCOR) has plans to become an
integrated logistics services provider by 2006 through several
joint ventures with private and public sector partners in launching
various services. Concor plans to enter into a number of strategic
alliances over the next five years, which include getting into
coastal shipping, medium and short-haul road transport, third
party logistics, building and maintaining cold chain and building
container terminals and warehouses. An investment of Rs. 1,4000
crore has been earmarked for the 2002-06 period. Among the new
strategic alliances planned include one with Department of Posts
for parcel movement, with Haryana Warehousing Corporation for
an ICD-linked container freight station. In the road sector, Concor
is planning to acquire a trailer fleet to integrate long rail
and short and medium road hauls.
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