Crisil seeks ROCE method for financing private terminals : Crisil's Infrastructure Advisory Services, in a study undertaken for Tariff Authority for Major Ports (TAMP) has sought adoption of return on capital employed (ROCE) method for estimating the allowable returns for private port terminal projects in a bid to attract more private players into the port sector. Presently, only major ports are allowed the benefit of ROCE method to the extent of government's lending rate plus three percent reserves maintained by port trusts, which work out to 18.5 per cent. In case of a private port terminal projects, TAMP has adopted an interim approach allowing return on equity, instead of capital employed as a whole.
Tuticorin port takes up ICD shipment issue with government : Tuticorin Port Trust has joined the issue with Cochin port on the issue of their exclusion from the list of ports announced by the Central Board of Excise & Customs (CBEC) for being eligible to handle duty-exempted hosiery exports originating from ICDs. Following the CBEC circular, Tuticorin port stands to loose over 150 export containers per week arriving from various ICD points of Coimbatore, Karur, and Bangalore etc. The diversion of cargo from Tuticorin will also result in long-term problems for the trade and future of the port. The Tuticorin Port trust and the Tuticorin Steamer Agents Association have sought withdrawal of the CBEC circular.
Kochi port users seek lifting of curbs on ICD shipments : Kochi port users under an initiative from Kochi Port Committee, a joint forum of Exim trade fraternity have demanded that government should immediately withdraw the recent Customs notification restricting export of ICD shipments from Kochi. A recent CBSE circular had exclude Kochi port from the list of exit ports for ICD originating cargo. The exclusion of Kochi port would harm the long-term prospects of the port and result in diversion of cargo to other ports.
Customs plan to drop bank guarantee requirement for SEZ : The Customs department is considering issuing a comprehensive notification on duty exemption available to SEZ, simplifying the procedures by doing away with requirement for furnishing bank guarantees for availing duty free imports. The unified SEZ rules & regulations will reflect the amendments made to Chapter 10A of the Customs Act. All corresponding provisions on duty exemption provided to SEZ units will be incorporated in the new rules, which is to be shortly notified. The draft rules have been referred to the law ministry and the finance ministry for approval.
Goa's iron ore exports touch new peak levels : Following a major spurt in Chinese off-take of Goa's iron ore, export shipments have touched a new peak level at 23.72 million tones in 2003. Of this total quantity, 20.69 million tones were mined in Goa and 3.3 million tones of iron were from non-Goan mines. The total value of iron ore exports is estimated at Rs. 1070 crore (USD 235.34 million). Japan, which mainly decides the price of Goan iron ore is the largest buyer accounting for 10.59 million tones marginally up from 9.82 million tones in fiscal 2002. China has during the year doubled its imports of iron ore to 5.3 million tones from 2.59 million tones in 2001. The rapid rise in iron ore shipments to China have also resulted in direct shipments taking place to Chinese ports instead of being routed through Hong Kong based-intermediaries.
IMC to expand on its liquid storage terminals : IMC Group, formerly known as Indian Molasses Company, one of the largest private liquid bulk storage company with facilities spread across most major ports is planning major investment programme to further upgrade its existing storage terminals and set up facilities in new ports in the next two to three years. The new port locations, where the company has planned to set up facilities include Ennore, Tuticorin and Paradip ports. IMC already has liquid bulk storage facilities in Nhava Sheva, Kandla and Haldia ports. IMC is also exploring prospects of tying up with oil PSUs like IOC, BPCL and HPCL, part from fertilizer, chemical and vegetable oil companies to set up captive storage facilities at select ports. Several of the liquid bulk importers are increasingly looking at outsourcing their logistics including handling storage and distribution of their products to stay ahead in the competition.
DRM to focus on revamping rail logistics : The Directorate of Rail Movement (DRM), a planning and coordination body, set up under the Railway Board to take up essentially "rational movement of coal" is currently in the revamp mode. DRM which had hitherto looked after railway movement of domestically produced coal for both core and non-core sectors is now being asked to look after logistics of all other bulk commodities handled by the railway, such as iron ore, limestone, dolomite, finished steel, food grains and petroleum products. While coal still accounts for almost 50 per cent of the total freight movement by the railways, coal users have been increasingly resorting to higher-grade coal imports, with port-based rail connectivity for movement of coal becoming more important. Growth in trade in many other dry bulk commodities like iron ore and food grains as also containers is also making rail connectivity of ports to hinterlands an important issue to be tackled. The movement of majority of the bulk items handled by railways is concentrated in the eastern region, which is home to several user industries like steel and aluminum and power plants.