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ASSOCIATION OF MULTIMODAL TRANSPORT OPERATORS OF INDIA Weekly News 05.07.2013—11.07.2013 Volume 1, Issue 16 Inside this issue: Maersk Line optimizes with Triple-E vessel service 1 Reliance Ports & Terminals to raise $ 675 m 2 NTPC moots ferrying imported coal via inland waterways 2 Dighi Port successfully handles largest Capesize vessel 2 Railways carries 256.79 MT of freight during April-June 2 JN Port plans liquid bulk termi- nal in two phases 3 Railway's aggressive plan to set up private freight terminals 3 Food Ministry to seek Cabinet nod for export of 2 MT wheat 3 Commerce Min. seeks liberal- ized packing credit scheme 4 Shipping Ministry may commit Rs 5,000 cr for two major ports 4 India Container Volume Fell 4 Percent in First Quarter 4 EU to Relax Customs Hurdles to Boost Short Sea Shipping 5 Suez Canal seeing low vessel transits due to toll increase 5 Shipping Ministry aims to dereg- ulate tariffs at Major Ports 5 Customs Broker Gets Jail Sen- tence for Fraud Scheme 6 Proposed river-sea shipping service to enhance connectivity 6 Bids galore for eastern dedicat- ed freight corridor project 6 Humor 7 Maersk Line (India and Sri Lanka cluster), the core liner shipping company of the A.P. Moller-Maersk Group and the leading global container shipping firm, on Thursday (July 4) announced its much-awaited Triple-E service beginning mid-July. The service, it said, will optimise on economy of scale, energy effi- ciency and carbon footprints through an environmentally improved vessels. The Triple-E is an optimised vessel that will allow the company to transport 2,500 more containers than on an E-class, while saving 20 per cent fuel and reducing CO2 emissions by 20 per cent. The company is also expecting higher berth productivity as the Triple-E will only call larger ports where it will be possible to use more cranes and relative less downtime for moving the cranes and hatch covers. Mr. Franck Dedenis, Managing Director Designate-Maersk Line (India and Sri Lanka), said, "The world economy is slow, there is overcapacity in the shipping industry and we have reasons to believe that it will continue in the near term. We are ensuring that the capacity we have in our fleet doesn’t exceed the container demand. Our ambition with the Triple-E is not to increase our market share or our carrying capacity but to realize cost savings by moving more cargo at a time on a very fuel efficient and the world's largest vessel. Just to give a perspective on the sheer enormity of the vessel and its capaci- ty; let’s say, with 18,000 containers in a Triple-E vessel, Times Square in New York City would fill up. Containers would tower over billboards, lights and many buildings." By the end of 2013, Maersk Line will, even with five Triple-E vessels in service, deploy less weekly carrying TEU capacity than in January 2013, said a release. The Triple-E vessels are a combination of carefully-thought technological and ecological solutions and the result of many years of engineering works. The new containerships will increase the ecological performance and cost-efficiency, while creating a balance between supply and the current market de- mand. "We will continue in 2014 and beyond to leverage our large network to adjust its design (e.g. merge trades, add port calls) and adjust capacity to only grow with the market. We believe that the introduction of more efficient vessels like the Triple-E will contribute to sustainable financial perfor- mance and consistent return on invested capital. Maersk Line’s current rates are unsustainably low, even with the cost-efficiency profile of the Triple-E. To optimise on the Asia-Europe route, the company plans to: - deploy Triple-E in a phased manner (every 6-8 weeks) that will not significantly impact capacity - cascade other tonnage throughout the network - redeliver excess capacity to leasing partners - idle or recycle vessels - keep on adjusting network design (e.g. merge trades, add port calls) to ensure it only grows with the market Maersk Line optimizes with Triple-E vessel service

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Page 1: ASSOCIATION OF MULTIMODAL TRANSPORT OPERATORS OF INDIAamtoi.org/wp-content/uploads/2014/09/AMTOI-Newsletter-Vol-1-issue-16.pdf · port and one of the largest vessels to call any port

ASSOCIATION OF MULTIMODAL TRANSPORT OPERATORS OF INDIA

Weekly News 05.07.2013—11.07.2013 Volume 1, Issue 16 Inside this issue:

Maersk Line optimizes with

Triple-E vessel service 1 Reliance Ports & Terminals

to raise $ 675 m 2

NTPC moots ferrying imported

coal via inland waterways 2

Dighi Port successfully handles

largest Capesize vessel 2

Railways carries 256.79 MT of

freight during April-June 2

JN Port plans liquid bulk termi-

nal in two phases 3 Railway's aggressive plan to set

up private freight terminals 3 Food Ministry to seek Cabinet

nod for export of 2 MT wheat 3 Commerce Min. seeks liberal-

ized packing credit scheme 4 Shipping Ministry may commit

Rs 5,000 cr for two major ports 4 India Container Volume Fell 4

Percent in First Quarter 4 EU to Relax Customs Hurdles

to Boost Short Sea Shipping 5 Suez Canal seeing low vessel

transits due to toll increase 5 Shipping Ministry aims to dereg-

ulate tariffs at Major Ports 5

Customs Broker Gets Jail Sen-

tence for Fraud Scheme 6 Proposed river-sea shipping

service to enhance connectivity 6 Bids galore for eastern dedicat-

ed freight corridor project 6 Humor

7

Maersk Line (India and Sri Lanka cluster), the core liner shipping company of

the A.P. Moller-Maersk Group and the leading global container shipping firm,

on Thursday (July 4) announced its much-awaited Triple-E service beginning

mid-July. The service, it said, will optimise on economy of scale, energy effi-

ciency and carbon footprints through an environmentally improved vessels.

The Triple-E is an optimised vessel that will allow the company to transport

2,500 more containers than on an E-class, while saving 20 per cent fuel and reducing CO2 emissions

by 20 per cent. The company is also expecting higher berth productivity as the Triple-E will only call

larger ports where it will be possible to use more cranes and relative less downtime for moving the

cranes and hatch covers.

Mr. Franck Dedenis, Managing Director Designate-Maersk Line (India and Sri Lanka), said, "The world

economy is slow, there is overcapacity in the shipping industry and we have reasons to believe that it

will continue in the near term. We are ensuring that the capacity we have in our fleet doesn’t exceed

the container demand. Our ambition with the Triple-E is not to increase our market share or our

carrying capacity but to realize cost savings by moving more cargo at a time on a very fuel efficient and

the world's largest vessel. Just to give a perspective on the sheer enormity of the vessel and its capaci-

ty; let’s say, with 18,000 containers in a Triple-E vessel, Times Square in New York City would fill up.

Containers would tower over billboards, lights and many buildings." By the end of 2013, Maersk Line

will, even with five Triple-E vessels in service, deploy less weekly carrying TEU capacity than in January

2013, said a release.

The Triple-E vessels are a combination of carefully-thought technological and ecological solutions and

the result of many years of engineering works. The new containerships will increase the ecological

performance and cost-efficiency, while creating a balance between supply and the current market de-

mand. "We will continue in 2014 and beyond to leverage our large network to adjust its design (e.g.

merge trades, add port calls) and adjust capacity to only grow with the market. We believe that the

introduction of more efficient vessels like the Triple-E will contribute to sustainable financial perfor-

mance and consistent return on invested capital. Maersk Line’s current rates are unsustainably low,

even with the cost-efficiency profile of the Triple-E.

To optimise on the Asia-Europe route, the company plans to:

- deploy Triple-E in a phased manner (every 6-8 weeks) that will not significantly impact capacity

- cascade other tonnage throughout the network

- redeliver excess capacity to leasing partners

- idle or recycle vessels

- keep on adjusting network design (e.g. merge trades, add port calls) to ensure it only grows with the

market

Maersk Line optimizes with Triple-E vessel service

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Reliance Ports and Terminals Ltd has informed the Bombay Stock Exchange that it plans to raise Rs 40 billion ($ 675

million) in secured redeemable non-convertible debentures to expand its liquid terminal in Jamnagar, Gujarat.

The terminal caters to the Reliance Group's refinery, which is also being expanded.

Besides adding more berths, the expansion also includes setting up facilities to import coal to meet the demands of

Reliance Utilities and Power Ltd, it is learnt.

Reliance Ports & Terminals to raise $ 675 m

Page 2

The National Thermal Power Corporation (NTPC) is considering

the use of inland waterways to transport imported coal to its power

stations in West Bengal and Bihar over the next three months. In

2011, the power major had awarded the transportation contract to

Jindal ITF, a wholly-owned subsidiary of Jindal Saw Ltd.

The company has also been looking at the possibility of transporting

coal up to its upcoming Barh super thermal power station, in Bihar,

through this route. The project aims to ferry 3-7 million tonnes (mt)

of imported coal annually from Haldia Port to Farakka on the Gan-

ges in the Murshidabad district of West Bengal. Once functional, it

would reduce congestion on rail and road, the company said.

KoPT’s decision to carry out trans-

loading at Kanika Sands on the high

seas, due to the lack of draught at

Haldia Dock Complex, had led to a

two-year-long legal battle, with the

Odisha government claiming legal rights to the location. The legal

complications also prevented shifting of the transloading site to anoth-

er suitable place.

With the courts finally ruling in favour of Odisha, KoPT intends con-

ducting transloading operations at an alternative location, closer to

the coast of West Bengal.

NTPC moots ferrying imported coal via inland waterways

In the first year of being operational

during the monsoon, Dighi Port

achieved another significant milestone

by successfully handling the largest

Capesize vessel to call the facility. The

port had successfully handled a

Capesize vessel in May this year and

has now handled another similar vessel carrying coal for one of the

largest coal importers in the country.

The MV C Harmony, having LOA of 270 metres, beam of 43 metres

and of 153,153 DWT, carrying steam coal, berthed at Dighi Port on

June 28 at 1730 hours. It was the largest bulk carrier to berth at the

port and one of the largest vessels to call any port in Maharashtra.

Dighi Port, being developed by Balaji Infra Projects Ltd (BIPL), is the

first and the largest greenfield port of Maharashtra. It is envisaged as

a multipurpose, multi-cargo, all-weather port with deep draught,

direct berthing facilities and modern

cargo handling equipment, with

adequate stackyards, warehousing

facilities and back-up areas. It has

ample land bank of approximately

1,600 acres.

The port is located on the banks of

the Rajpuri Creek, in the Raigad district of Maharashtra. It is at a dis-

tance of 42 nautical miles from Mumbai Port and 170 km south of

Mumbai by road. The port is connected by state highways to the Na-

tional Highway 17, which is 45 km from the facility. The nearest Kon-

kan Railway rail head, Indapur-Mangaon, is 47 km away.

Dighi Port is also part of the prestigious Delhi Mumbai Industrial Cor-

ridor (DMIC), and the Dighi Port area has been included in the gov-

ernment of India’s new Manufacturing Policy as one of the 7 mega

National Investment and Manufacturing Zones (NIMZ).

Dighi Port successfully handles largest Capesize vessel

The Railways carried 256.79 million tonnes (mt) of revenue-earning freight traffic during April-June 2013,

an increase of 11.98 and 4.89 per cent over the 244.81 (mt) handled in the corresponding period of the

previous fiscal.

The Railways also carried more revenue-earning freight traffic in June 2013, at 84.95 mt, up 5.62 per cent

over the 80.43 mt hauled last year

Railways carries 256.79 mt of freight during April-June

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Page 3

JN Port plans liquid bulk terminal in two phases

Jawaharlal Nehru Port Trust

(JNPT) has taken the initial steps

towards developing a new liquid

bulk terminal of 30 million

tonnes per annum capacity. The detailed project report, submitted

by L&T Ramboll Consulting Engineers, has been approved by the

Board, according to sources and JNPT plans to invite request for

qualification (RFQ) very soon.

The Master Plan for the project envisages two phases, to be devel-

oped at a cost of Rs 1,800 crore. Phase 1 is estimated to cost Rs

1,400 crore.

Also, as per the Master Plan, the terminal will have three jetties of

600 metres each, to be operational from both sides. In phase 1, two

jetties will be developed. Besides the jetties, the project also encom-

passes a tank farm, which too is to be developed by the winning bidder.

The present two-berth liquid cargo jetty, of 5.5 million tonnes capacity,

is operated by Bharat Petroleum Corporation Ltd.

Meanwhile, JN Port, along with Kandla Port, is in talks with the Iranian

government to develop the Chabahar port in Persian Gulf country. The

second round of negotiations is currently on with a visiting Iranian

delegation. A final decision is likely to be taken after consultations with

the Ministries of Defence and External Affairs, among others, it is

learnt.

Chabahar port is expected to enable India to improve connectivity with

Afghanistan and the Commonwealth of Independent States (CIS).

Railway's aggressive plan to set up private freight terminals

The investor interest in the Indian Railways is seeing a gradual in-

crease, at least in freight infrastructure projects. Around 22 green

field private freight terminals would be coming up in the next few

years.

This means the private sector would invest somewhere between Rs

3,500 crore and Rs 4,000 crore in the private freight terminal plan of

the railways, which would help ease the pressure on the already

overburdened freight terminals. The cost of building a green field

terminal is around Rs 150-200 crore. The cash-strapped railway,

which has an unhealthy operating ratio of 88%, has no funds to set

up any new freight terminals. In over a year or so, around 18 logistic

firms, including CONCOR, Pristine logistics and several other big

players, have come up with the proposals for freight terminals.

“The PFT policy of the railways allows terminal operators to handle

all cargo, except outward coal, coke and iron ore. The railway poli-

cy is a lucrative business opportunity for logistic companies,” a rail-

way official said. According to the policy, a private freight terminal

can only come up on private land and not on railways' land. The

railways in June 2010 allowed

firms to construct PFTs.

However, the policy failed to

evoke a response from the

corporate sector due to

some unfeasible revenue-

sharing clauses. The policy

was then revamped based on the suggestions of private players.

As per the revenue-sharing model, the private player has to share 50%

of the cargo-handling revenue with railways for five years. The conces-

sionaire agreement is for 20 years, which is further extendable for 10

more years. Along with green field terminals, several firms have also

come forward to build brownfield freight terminals, converting existing

railways sidings into freight terminals. "There are around 23 proposals

from companies such as Lloyd Steel, Tata Iron & Steel, Kribhco and

several others who want to be operators. They have all applied for the

brown field projects," the official added. The railway Ministry has re-

ceived proposals for 23 brown field terminals.

Food Ministry to seek Cabinet nod for export of 2 mt wheat

Encouraged by the good response from

overseas buyers, the food Ministry is

likely to seek Cabinet approval for ex-

porting 2 million tonne (mt) wheat in

the current fiscal. The sources said that

the expected rise in food grain require-

ments for the implementation of the

food security law, FCI wants to ship 2

mt of wheat through trading agencies, such as MMTC, PEC and STC,

this fiscal compared to the 4.5 mt exported last year. Through these

shipments, the corporation is trying to cash in on the rising demand

for Indian wheat.

“We will be moving a Cabinet note shortly so that shipments of

wheat could start in August,” a food Ministry official. The wheat is

expected to be shipped from Kandla and Mundra ports, Gujarat,

because of higher price realization.

Last fiscal, FCI exported 4.5 mt (till June) of wheat and realized Rs

7,000 crore at an average price of about $ 310 per tonne. “Our

realization was similar to the soft wheat shipped from Australia,

which is known for its quality globally,” the official said.

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Commerce Ministry seeks liberalized packing credit scheme for exporters

Page 4

The Union Shipping Ministry is toying

with the idea of adopting the special

purpose vehicle (SPV) based model

for the two major ports it is planning

in Andhra Pradesh and West Bengal.

This would be in deviation from the

trust based model, mandated by Major Port Trust Act, 1963, and re-

quire the Government to shell out Rs5,000 crore as equity for the two

projects.

“We are looking at an SPV model wherein the Centre would pitch in

with 74% and the balance 26% would be the contribution from the state

Government,” said a Shipping Ministry Official. One port would be lo-

cated at the Sagar island in West Bengal and the other most likely at

Durgarajapatnam in Andhra Pradesh. There are 12 major ports in

the country, which are under the direct control of the central Gov-

ernment.

“The projects are likely to cost around Rs7,500 crore. The Sagar

port would cost around Rs5,500 crore as there has to be a rail link

connecting the port from the island. That link only will involve an

investment of about Rs3,000 crore. With these projections the

government will have to shell out equity worth Rs5,000 crore in

both these projects. The state government will have to pitch in

with the balance amount,” said the official. The feasibility study for

the projects is currently on and would be completed in the next

two months. After the study is over, the ministry will circulate a

Cabinet note for the SPV-based funding model for the projects.

Shipping Ministry may commit Rs 5,000 cr for two upcoming major ports

The Commerce Ministry has

suggested the Reserve Bank

of India (RBI) to liberalize

packing credit scheme for

exporters and has urged the

apex bank to ensure that

small and medium enterpris-

es (SMEs) have access to foreign currency loans

from banks for exports to encourage shipments

from the country.

In a letter to RBI Governor D Subbarao, Com-

merce Secretary S R Rao said, "We would re-

quest that RBI's special export credit refinance

to support PCFC (packing credit in foreign cur-

rency) (and it) may be enhanced from 50 per-

cent to 100 percent." The scheme, he said,

should be liberalized "to the maximum extent

possible through greater refinance margins. It

should enhance the overall quantum of re-

finance available and bring in long term stabil-

ity to this policy, so as to encourage better

export finance planning by both the export-

ers and concerned banks."

He further said the RBI's special refinance

window for PCFC by way of US Dollar-

Rupee swap facility has been extremely well

received by the exporters and commercial

banks. The SME sector is also needed to be

encouraged, Rao said, urging the apex bank

to ensure the sector has access to foreign

currency loans for exports from Indian banks

at a ceiling of LIBOR plus 200 bps.

India's trade deficit widened to USD 20.1

billion in May due to high gold imports

while exports declined by over a percent,

raising concerns about economic recovery.

The deficit gap was at USD 16.9 billion in

May last year.

According to latest information, gold im-

ports plunged by over 80 percent in June as

Government measures including a hike in

customs duty tapered demand. The current

account deficit narrowed down to 3.6 per-

cent of GDP in the January-March quarter

but totaled a record 4.8 percent for the full

2012-13 fiscal

India Container Volume Fell 4 Percent in First Quarter

Container volumes at major ports in India

slipped 4 percent year-over-year in the first

quarter of fiscal year 2013-14, the Indian Ports

Association said in a statement. The 12 state-

owned gateway hubs handled 1.87 million 20-

foot-equivalent units from April through June,

down from 1.95 million TEUs in the same period

last fiscal year. Containerized cargo tonnage fell

7 percent from a year earlier to 28.6 million

tons. Traffic at the Port of Jawaharlal Nehru

(Nhava Sheva), the country’s top container han-

dler, was estimated at 1.04 million TEUs, de-

creasing from 1.08 million TEUs in the same

quarter in 2012-13.

The Port of Chennai moved 372,000 TEUs,

down 6 percent from 395,000 TEUs. Box

throughput at the Port of Tuticorin increased

to 121,000 TEUs from 112,000 TEUs. The

Port of Kolkata handled 142,000 TEUs, down

from 148,000 TEUs. The volume of contain-

ers handled by the Vallarpadam Terminal in

Cochin Port was on par with last year, at

82,000 TEUs. The Indian Ports Association

said total cargo tonnage at major ports fell 1

percent in the first fiscal quarter to 137.15

million tons from 138.5 million tons a year

earlier.

Kandla was the top cargo handler, with

throughput of 23.3 million tons, followed by

Paradip, at 17 million tons; Nehru, at 15.6

million tons; Visakhapatnam, at 14.6 million

tons; Mumbai, at 13.3 million tons; and Chen-

nai, at 12.8 million tons. Indian major ports

handled 545.68 million tons of cargo in

fiscal year 2012-13, which ended March 31,

down 2.6 percent from 2011-12, with con-

tainer throughput remaining relatively flat,

at 7.71 million TEUs.

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The European Un-

ion today outlined

plans to ease cus-

toms formalities for

ships transporting

goods between its

28 member states. The European Commission,

the EU’s executive, said the simpler rules would

reduce red tape, cut delays in port and make

short sea shipping more competitive with truck-

ing, which dominates transport across the conti-

nent. The Commission said the “Blue Belt” plan,

which is due to take effect in 2015, will create a

single transport area for shipping. “Europe is

faced with major challenges in terms of rising

congestion and pollution,” said EU Transport

Commissioner Siim Kallas. “We need short sea

shipping to fulfil its potential and provide a

low cost, environmentally friendly transport

solution, taking more goods off [trucks] and

off our congested roads.” The Commission

said it is responding to complaints by freight

forwarder and exporters that if they choose

to send goods across Europe by short sea

shipping, the heavy administrative burden at

ports causes additional costs and significant

delays; ships can wait for hours and some-

times days in ports for customs clearance.

Ships operating services on regular routes

within the EU and transporting mainly EU

cargoes already benefit from easier customs

regulations. The Commission plans to make

the procedures shorter and more flexible and

cut the consultation time for member states

seeking to apply easier customs rules to

15 days from 45 days at present.

Shipping lines will also be able to apply in

advance for customs authorization from

member states to launch potential ser-

vices to save time if markets opportuni-

ties arise. The Commission also plans to

introduce by the end of the year a harmo-

nized electronic declaration to enable the

90 percent of ships that carry both EU

and non-EU cargoes and call at non-EU

ports — for example, in Norway, North

Africa and Russia — to provide infor-

mation about the status of cargoes to

customs officials.

EU to Relax Customs Hurdles to Boost Short Sea Shipping

Page 5

THE Suez Canal is facing resistance by carriers to increasing costs and

surcharges, following May’s fee hike of 2.5 per cent to offset a slump in

tourism due to continuing civil strife.

The canal has experienced a decline in cargo vessel throughput during the

first quarter of 2013 by almost 10 per cent to 3,929 vessels compared to

4,347 in the same period last year. Of these, 1,479 were containerships.

During the first quarter of 2013, there were 106 fewer transits of con-

tainerships, making it the

lowest level in more than

three years. This has been

attributed to the Asia-

Europe trade decline, according to reports. The tolls are a major

source of revenue for the Egyptian government.

Suez Canal seeing low vessel transits due to toll increase

The Union shipping ministry is set to deregulate

tariff at major ports in the coming month as the

ministry looks to boost investment in the port

sector. Currently, port projects set up after

April 1 this year are allowed to set market-

regulated tariff while the Tariff Authority for

Major Ports (TAMP) decides the tariff to be

charged across major ports in the country for

projects awarded prior to April this year. The

move assumes significance as private operators

will be allowed to fix market-regulated tariff

unlike the earlier regime when TAMP fixed

rates. Often, TAMP cut rates across facilities

operated by port operators affecting their reve-

nue. “A move to deregulate tariff will always

help bring in investments.

Private sector investments in the sector have

been affected as port operators believe that

their investments will be stuck and their earnings

affected. This will send out a strong signal,” said

an analyst at a leading consultancy firm. The

move to deregulate tariff for all port projects in

the country comes at a time when the port

sector has been grappling to attract invest-

ments from private sector companies and has

seen very little investments in the past few

years. “We have realized that the tariff re-

gime is one of the most important reasons

for the slowdown in investment. The ministry

will now come out with new regulation re-

garding tariff regime and we have consulted

with all the private port operators,” Union

Shipping Minister GK Vasan said. The tariff

authority fixes the tariff to be charged by port

operators across the major ports and port

operators have been at loggerheads with

TAMP over the rates. Private port operators

including DP world and APM Terminals have

also challenged the decision by TAMP to cut

rates at their facilities in the past. According

to the PPP model, private port operators

have to share a certain percentage of their

revenue with the port operators.

The Government had in March this year

amended a policy regarding new port

projects in the country when it deregulat-

ed tariff for projects set up after April 1.

New projects including a container termi-

nal to be set up at Jawaharlal Nehru Port

Trust will fall under this category. The

Ministry has already held discussions with

all the private port operators in the coun-

try including APM Terminals and Dubai-

based DP World to decide on the tariff

deregulations, Vasan added.

Meanwhile, the deregulation of the tariff

for new projects has also helped JNPT

attract interest from private port opera-

tors as the port has seen bids from as

many as 8 operators for the construction

of a mega container terminal worth more

than.8,000 crore. Companies including

Adani, DP World and Port of Singapore

Authority have so far bid for the project.

Shipping Ministry aims to deregulate tariffs at Major Ports

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Gerardo Chavez, 42, the

former president of the

San Diego Customs Bro-

ker Association, has been

sentenced to 37 months in

federal prison for his role

in a multimillion-dollar

commercial fraud scheme to evade paying duties

on goods imported into the U.S.

In addition to the prison term, Chavez was or-

dered by U.S. District Judge Michael M. Anello

during a sentencing hearing in federal court to

forfeit his property in Tecate, Calif., and to ap-

pear at a future restitution hearing. Chavez’s

corporation, International Trade Consultants,

was also sentenced to five years of probation.

The sentencing is the result of a four-month

wiretap investigation led by agents with U.S.

Immigration and Customs Enforcement’s Home-

land Security Investigations, the U.S. Food and

Drug Administration’s Office of Criminal Investi-

gations and U.S. Customs and Border Protec-

tion.

According to court records, Chavez served

as president of the San Diego import-export

trade group between 2007 and 2012. During

that period, Chavez and his companies, as

well as other co-conspirators, procured for-

eign goods, such as Chinese-made apparel and

cigarettes manufactured in India, that were

transported via ship to the Port of Long

Beach. Before the goods entered the U.S.,

Chavez directed other members of the con-

spiracy to prepare fraudulent paperwork and

make erroneous entries into a government

database so it appeared the goods were being

transshipped to Mexico and not subject to

customs duties. However, instead of being

transshipped to Mexico, the merchandise was

delivered to warehouses in Southern Califor-

nia and eventually sold in the U.S. for less

than similar items offered by their law-abiding

competitors.

Darrell Sekin, president of the National

Customs Brokers and Forwarders Associ-

ation of America, issued a statement,

posted on the NCBFAA Web site, re-

sponding to the sentencing and convic-

tion. He noted that the fact that Chavez

was president of the San Diego Customs

Brokers Association was “certainly not an

indictment on the other good, hardwork-

ing firms who are members of that associ-

ation or the industry as a whole.” He

added, “We support the removal of bad

actors from the international trade com-

munity, whether they be customs bro-

kers, customs officials, or any others who

would seek to illegally introduce articles

into the commerce of the United States.”

Customs Broker Gets Jail Sentence for Fraud Scheme

Page 6

ARIVER-SEA intermodal shipping service con-

necting the Yangtze River city of Liuzhou in Si-

chuan province and Wuhan in Hubei province

will be launched by the end of this year, accord-

ing to a report.

With the new service, Sichuan prod-

ucts, such as auto parts, mechanical

or electronic products, will be

shipped to Wuhan on smaller vessels

and then loaded onto larger near-sea

ships for Taiwan, moving goods nearly

four times faster door-to-door. Liu-

zhou port, being the only river port in

the region to offer sea-rail intermodal service,

is an important facility for cargo in the mid-

west region. Last year, it handled 135,200

TEUs, taking up 84 per cent of Sichuan’s total.

There is already a shuttle shipping service in

operation between Liuzhou and Wuhan.

The service ran 302 sailings last year,

carrying 37,200 TEUs, up 45 per cent year

-on-year.

According to another report, shipments

from mid-west China have to transit via

Wuhan and then Shanghai before arriving

in Taiwan. But after the new service is

launched, it will take only seven days from

Wuhan to Taiwan’s Taichung or

Kaohsiung

Proposed river-sea shipping service to enhance connectivity to Taiwan

The eastern dedicated freight corridor's 393-km

rail connectivity project between Kanpur and

Mughalsarai has reportedly received 24 applica-

tions for pre-qualification to bid for constructing.

The 24 consortia—joint ventures between inter-

national companies and leading Indian construc-

tion firms—submitted their applications for pre-

qualification on July 4.

Some of the firms are Tata Projects, Gammon

India, Essar Infrastructure, Punj Lloyd,

AFCONS, IVRCL, GMR Infrastructure, SO-

MA Enterprises, KEC International, Gayatri

Projects, Megha Engineering, ERA Infrastruc-

ture and BSCPL, according to a Dedicated

Freight Corridor Corporation of India

(DFCCIL) release.

Bids galore for eastern dedicated freight corridor project

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Page 7

Humor

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C/o. CKB, 1st Floor,

20, Raja Bahadur Mansion,

Ambalal Doshi Marg., Fort,

Mumbai - 400 023.

Tel. : +9122 6637 0021.

Fax : (91-22) 6637 0022

Email : [email protected]

Editorial Team:

Mr. Xerxes P. Master

Mr. Vivek Kele

Following the enactment of the Multimodal Transportation of Goods Act, 1993, AMTOI Associa-

tion of Multimodal Operators of India) was established in the year 1998.

The main objects of the Association are to

To organize Multimodal Transport Operators at national level

To study the issues faced by MTOs and seek resolution with appropriate authorities

To promote multimodal transport services in foreign trade

To improve the quality of such services and reduce transaction costs

AMTOI is registered as a non-profit making body under the Indian Companies Act and its core

managing committee consists of seven members. The committee is assisted by a Board of Advi-

sors consisting of the representatives of Government and public sector organizations.

We at AMTOI have always endeavored to have a harmonious maritime community to bring con-

sensus amongst all segments of our community, whilst making representations to various authori-

ties. AMTOI has always tried to bring together all the segments of the maritime community under

one common platform to promote Multimodalism in India. Our members are shipping lines, ship-

ping agents, freight forwarders, transporters, CFS operators and custom house agents.

ASSOCIATION OF MULTIMODAL TRANSPORT

OPERATORS OF INDIA

Catalysing Multimodalism

www.amtoi.org