association of multimodal transport operators the...

ASSOCIATION OF MULTIMODAL TRANSPORT OPERATORS

Weekly News 09.08.2013—14.08.2013 Volume 1, Issue 21

Inside this issue:

The Multimodal Logistics Summit 2013 1

The Multimodal Logistics Summit 2013 - Continued 2 First-ever imported stuffed ULD deliv-ered from Mumbai Cargo Complex 3 "K" Line (India) starts ‘Milk Run’ ser-vice for auto parts in Delhi 3

Logistics sector to be valued at $200 bn by 2020 3

Port Dighi No downsizing 4

India to emerge as next hub of ship-building industry : G K Vasan 4

Carriers seeing benefit in leasing & chartering: Drewry 4

Reliance-BP JV to source LNG from Freeport Terminal in US 5 Indian Exports Jumped in July

5 Shippers Seek Clarification from US on China's VAT 5

Survey: World Economy Weakened in Second Quarter 6

First Chinese Ship Sails to Europe via Arctic Route 6

Shipping Corp of India’s Loss Widens 6

Humor 8

JNPT plans Rs 1,800-crore new liquid terminal through PPP 7 Security Expert Says Maritime Industry a Target for Terrorists 7

Centre to enhance capacity enhance-ment at Major Ports 7 Govt may invite bids for highway pro-jects worth Rs.30,000 crore 7

Kerala Sea & Trade in an initiative to deliver Kerala as a Model Maritime State is organizing two im-

portant summits – ‘Maritime Education & Training Summit’ and ‘The Multimodal Logistics Summit’ on

August 1 & 2, 2013. The summit was inaugurated by Shri K Babu, Honorable Minister of Fisheries,

Ports & Excise, Govt. of Kerala. Main Features of summit were as below :

1. The summit strongly recommends having a Ministry of Logistics at the Centre. This ministry will

have responsibility for all logistics related matters and will therefore cover matters currently at-

tended to by the Ministries of Shipping, Roads, Civil Aviation, Railways, Commerce and Finance. As a

result of which the Ministries mentioned above will continue to function; Railways for example would

remain responsible for passenger traffic, lines, rolling stock etc but goods transport would be with

the Logistics Ministry. So also Customs matters insofar as they relate to logistics would be with this

Ministry but the rest would remain with Finance. Matters relating to CFS and other logistics ques-

tions would be dealt by the new ministry, the rest with the existing Commerce Ministry.

2. Need for a transport strategy with thought leadership; the Planning Commission should lead in

evolving and implementing a community system covering all modes of transport and involve all stake-

holders in EXIM Trade.

3. Regulators should be appointed only when monopoly or near monopoly conditions exist, for the

rest reliance must be placed on the market alone.

4. The railways should improve facilities for cargo movement through improved good sheds, ware-

houses and better customer focus, commensurate with revenue and profit from the freight traffic.

5. Larger percentage of cargo should move by railway, adequate capacity should be created for the

increasing the share of the cargo moving by railways. There is need for the Railways to shed monop-

oly and aggressively attract private investment. Since there are diverse and often conflicting interests,

the legal framework should be clearly laid down.

6. The freight charges should not be arbitrarily fixed and must be decided by an independent author-

ity in consultation with stake holders. And the new tariff authority for Railways should be able to do

this but it should have independent members and not be an adjunct of the Railway Board.

The Multimodal Logistics Summit 2013

7. Besides setting

benchmarks, the

policy makers should

study and research

transaction cost and

logistics costs in lar-

ger detail.

8. There is a need to

revamp some of the

archaic laws and amend some new ones. Laws dating back to the

years 1927 (Light House Act), 1925 (COGSA), 1908 (Indian Ports

Act) need a review.

9. The Ministry of Shipping should facilitate and insist on all maritime

states to immediately form Maritime Boards on the pattern of Guja-

rat, Maharashtra and Tamil Nadu Maritime Boards so that all the 187

non-major ports in the ten maritime states in India could be devel-

oped in an integrated and coordinated manner.

10. State governments and local authorities should take up develop-

ment of land for container freight stations and port connectivity as

part of multimodal transportation. Policy for private sector invest-

ment should also be formulated.

11. There should be coordination between government’s industrial

plans with those of ports development. This particularly includes

connectivity with different modes of transport.

12. Policy makers and especially State governments should pay par-

ticular attention to developing good, reliable and effective land legs

to complement coastal shipping. Without that, coastal shipping will

never take off.

13. Further for coastal shipping to grow, there is a need to turn

around boxes faster to improve resource efficiency at ports and the

readiness of the Government to fund road, rail and waterway con-

nectivity to commercially significant ports both in the public and

private sectors.

14. Small ports should be built exclusively for coastal shipping

through innovative partnerships. Exclusive jetties/terminals in exist-

ing ports for coastal shipping would also be a good way forward for

promoting coastal shipping.

15. Transshipment hubs, industrial nodes, inland waterways, port

infrastructure and freight stations need to be developed to give pri-

macy to coastal vessels.

16. There should be parity on bunker rates. Bunkers should be avail-

able for coastal shipping at the same rate as international shipping.

There is also a need to relook at the tax structure for bunkers as 30

-35 per cent of additional costs are added on to coastal shipping

owing to this.

17. The same rules regarding personal Income Tax must apply to all

seafarers regardless of whether they work on coastal or foreign

going vessels.

18. Documentation should be simplified for coastal shipping and the

need for customs check to be done away with.

19. The shipping ministry should develop inland water transport and

coastal shipping through incentives, if required in fiscal and non-fiscal

forms and should involve the other ministries in driving this shift. Akin

to Marco Polo – the European Union’s Funding Programme for Modal

shift, a funding mechanism should be introduced by the Indian Gov-

ernment to wean away the sizeable chunk of goods traffic from road

transportation to inland and coastal waterways. EU’s Marco Polo

project was envisaged to shift transport mode from road to rail, sea

and rivers. Similarly, India needs a funding initiative from the Govern-

ment to carry out the modal shift.

20. There is a need for ‘patient and cheaper’ long gestation finance for

capital asset building as well as the need to incentivize green supply

chain incentives / disincentivize non-green options like long-distance

road haulage.

21. Introduction of EDI has yet not eliminated paper. There is an ur-

gent need to improve operational efficiency by reducing paper trails

and confining all processes to soft-copies and emails. Paper trails not

only add to transaction costs but also add to inefficiencies and poor

quality of service.

22. Today, information availability, visibility, operational flexibility and

scalability are critical functions; stake-holders should impress the need

for Innovation in IT to be integrated into logistics. Cloud computing

and Software-as-a-Service; Global Positioning System; Radio Fre-

quency Identification; Enterprise resource planning and the use of

Mobile Technology would help contain logistics cost, ensure effective

tracking, integrate functions and make operations faster and efficient.

23. There is a need for all the 133 ICDs to come under one umbrella

rather than working in silos, to improve resource efficiency.

24. Cold chains should be developed by facilitating third-party infra-

structure providers of cold storage.

25. To reduce transactional costs in the Indian system it is necessary

to establish a system in which the shipper alone determines to which

CFS the container goes.

26. Since containerization has the potential for safe and cost-effective

transportation of food grains, government agencies should be encour-

aged to go for containers

for multimodal transport.

27. All the trade bodies

should come together

and form a pressure

group to aggressively and

continuously push for

reforms and better infra-

structure.

The Multimodal Logistics Summit 2013 - Continued

First-ever imported stuffed ULD delivered from Mumbai Cargo Complex

Joint efforts by Lufthansa Cargo & Agility Logistics result in

seamless transportation of imported ULD

The recent successful movement of an imported, stuffed Envirotainer

out of Mumbai Cargo Complex premises demonstrates how collabo-

ration between airlines and freight forwarders can result in facilita-

tion of trade.

Joint efforts made by Lufthansa Cargo and Agility Logistics resulted

in the seamless delivery of an imported, stuffed and temperature-

controlled Envirotainer to the consignee’s site.

The shipment comprised highly temperature-sensitive pharmaceuti-

cal product (-20oC) and was delivered on July 10, 2013 near Pune.

Agility Logistics and Lufthansa Cargo made a detailed presentation to

Customs, highlighting the need for regulatory support that would

enable import and export of temperature sensitive pharmaceuticals,

medicines, etc. without a break in the cold-chain right up to final

destination.

As a result, Mumbai Customs released a public notice (15/2013) allow-

ing in and out movement of

pallets and containers to

the consignees doors. Prior

to this amendment in Cus-

toms regulations, move-

ment of built-up pallets in

and out of air cargo com-

plex was not allowed due

to multiple reasons, includ-

ing security aspects, infra-

structure constraints and

multiple handling issues. For example, for exports, agents had to de-

liver cargo to the air cargo premises for building up the airline units

post clearance, examinations and security checks. Likewise for imports,

de-stuffed deliveries of shipments were taken and built up units were

not allowed out of the cargo premises.

"K" Line (India) Pvt. Ltd

(KLIN), "K" Line’s subsidi-

ary company in the coun-

try, has started Milk Run

of automobile parts in the

suburbs of Delhi for DENSO India Ltd.

"Milk Run" refers to a logistics service for making a circuit of several

automobile parts manufacturers at a set time, collecting products

aiming for "just-in-time" delivery to customers. Milk Run is the ideal

logistics method to perform consecutive circulation of returnable

boxes designated by the customer.

Auto parts manufacturers have been generally delivering their prod-

ucts individually. Using the Milk Run method, they can improve their

efficiency in collecting products in small lots from several

manufacturers using just one truck. This will allow DENSO India to

drastically reduce traffic within the factory. Milk Run also has the ad-

vantage of being an eco-friendly logistics service that reduces the

overall operational process, traffic jams around the factory and car-

bon dioxide emissions.

KLIN has introduced the Milk Run service around Delhi for DENSO

India Ltd from July. Six trucks are being utilized. A "K" Line subsidiary

company in Thailand has been providing Milk Run service to auto-

makers and auto parts manufacturers for more than 10 years and

currently utilizes about 300 trucks.

The "K" Line group has accumulated extensive logistics knowhow that

it is anxious to share by providing comprehensive logistics services

and utilizing strong local ties in order to meet customer needs,

stressed a release.

"K" Line (India) starts ‘Milk Run’ service for auto parts in Delhi

Logistics sector to be valued at $200 bn by 2020

The value of India's logistics sector is expected to cross $200 billion

by 2020, the Minister of State for Road Transport, Mr. Sarvey

Sathyanarayana, said.

"Connectivity and convenience in operations are the keys for sus-

taining global trade growth. Currently, India's logistics sector is val-

ued at around $ 125 billion and is likely to cross $ 200 billion by

2020," he said while addressing a CII conference recently.

According to the Minister, growth has sped up ever since the gov-

ernment increased spending on infrastructure development and en-

couraged private participation in key projects through public-private

partnership (PPP).

The logistics sector is projected to grow at 10 to 12 per cent over

the next 3 years, resulting in the need for more skilled manpower,

implementation of mod-

ern technology and im-

provements in infra-

structure, the Minister

emphasized.

"I am sure collectively

we should be able to

address all the needs,"

Mr. Sathyanarayana said.

Port Dighi No downsizing :

India to emerge as next hub of ship-building industry: G K Vasan Union Minister G K Vasan claimed India would be the "next hub" of ship-building industry among the emerging economies, though the

industry is still reeling under the global economic slowdown.

"A robust ship-building industry is a vital compo-nent of any strong econ-

omy," Vasan said.

The Union Shipping Minis-ter, while giving examples of USA, western European countries and Japan and South Korean in Asia, stressed that “India would be the next hub of ship-

building industry."

When asked if his ministry is looking forward to global orders in the wake of the Cochin Shipyard's success in building INS Vikrant, India's first indigenous aircraft carrier, he said the strain on the world econ-

omy remains an issue and it is likely to continue for a year.

On a positive note, Vasan said that 87 per cent growth was witnessed in tonnage capacity in shipping industry globally which would be help-

ful for Indian ship manufacturers as well.

The indigenous aircraft carrier has enabled India to join the elite club of nations with the capability of designing and building a warship in the

over 35,000-tonne class.

The launch of warship, which has a length of 260 meters and is 60 meters wide, is behind schedule by three years. It is set to go for extensive trials in 2016 before being inducted into the Navy by 2018

end.

Dighi Port will not be downsized, as reported in a section of the press; the downscaling, in fact, would be in the Dighi Industrial Area Township, clarified Mr. Vijay G. Kalantri, Chairman and Managing

Director of Dighi Port, in a statement here.

According to him, Rs 2,500 crore would be invested in the con-struction of 5 berths with capacity of 30 million tonnes for handling

bulk, break-bulk and container cargo.

While 2 berths were ready and could handle up to 10 million ton-nes (mt), the remaining 3 multi-purpose berths on the North Bank were under development and would be operational by December 2014. Rs 1,500 crore has already been invested in the project,

Mr. Kalantri said.

Dighi Port is being developed by Balaji Infra Projects Ltd (BIPL) under a 50-year "Build, Own, Operate, Share, Transfer (BOOST)" Concession Agreement with the Maharashtra Maritime Board, to develop, operate, finance and maintain the port, which is the first and the largest Greenfield port development project in Maharashtra,

he pointed out.

The facility, located on the banks of the Rajpuri Creek, is being de-veloped as a multi-purpose, multi-cargo, all-weather port with deep draught, direct berthing facilities and modern cargo handling equip-ment with adequate stackyards and warehousing facilities, back-up areas and an ample land bank of approximately 1,500 acres, he

added.

It would cater to a num-ber of industrial clusters like Dighi Industrial Area, Vile Bhagad, Pune, Nashik, Igatpuri, Sinnar, Roha and Chiplun Industrial Region. Industrial clusters devel-oped under the DMIC in close proximity to Dighi Port are Vile Bhagad (steel, power and project equipment), Pune - Chakan (automobiles, agricul-ture, chemicals and ancillaries) and Nashik - Sinnar (power, agricul-

ture and ancillaries).

The port, which has handled over approximately 3.5 million tonnes of cargo till date, plans to handle bulk and break-bulk cargo such as agri products, bauxite, clinker, coal, fertilizer, steel and liquid cargo at

the South Bank, Mr. Kalantri pointed out.

There is a proposal to include the port as a part of the Dedicated Freight Corridor (DFC), a Special Purpose Vehicle set up under the

administrative control of the Ministry of Railways, he said.

Meanwhile, the Dighi Industrial Area Township is being developed by the state government as a part of the Delhi Mumbai Industrial Corri-dor (DMIC) and National Investment and Manufacturing Zone

(NIMZ) plans as two separate projects.

Carriers seeing benefit in leasing & chartering: Drewry OCEAN carriers are increasingly resorting to leasing and chartering to acquire vessels and container equipment, creating opportunities for new financiers to enter the market and for ocean carriers to

become significantly asset lighter over the next two years.

According to Drewry Maritime Research, at the beginning of July, just over 64 per cent of all vessel capacity ordered since the middle of 2011 had been placed by tramp vessel operators, and the propor-

tion since the middle of 2012 is up to 65 per cent.

This builds on a trend from 2004 when the proportion of the fleets of the top 20 carriers that was chartered reached 48 per cent, and then creased to 53 per cent in 2011. The more recent position of the top 10 in isolation shows a different picture, with ownership

actually increasing between 3Q 2011 and 1H 2013.

Assuming that not all carriers renew their lease agreements on expiry, this means that there will be a growing pool of large con-

tainer vessels for hire, opening up oppor-tunities for new market entrants should

the right circumstances arise.

The same trend applies to container equipment ownership, where leasing has also been growing in importance. Accord-ing to Drewry's latest Container Lease Industry Review 2013, lessors purchased 58 per cent of all newbuild containers last year and ac-quired substantial older equipment from ocean carriers through sale and lease back, enabling them to grow their market share from 42.8

per cent in 2011 to 45 per cent in 2012.

As ocean carriers' financial results are not expected to improve sig-nificantly before 2016, leasing is likely to continue to grow, as well as the pool of large containerships available for charter, according to

Drewry.

Reliance-BP JV to source LNG from Freeport Terminal in US

Indian Exports Jumped in July

JOC Staff | Aug 14, 2013

The value of India’s exports increased 11.6 per-

cent year-over-year in July 2013, according to

India’s Ministry of Commerce. This was the larg-

est increase since October 2011, and was pre-

ceded by two months of declines.

Indian exports were valued at $25.8 billion in

July 2013, up from $23.1 billion a year ago. This

was the highest export value since March 2013.

Exports were also up 8.6 percent from June

2013. Through July 2013, exports were valued at

$180.5 billion, 2.8 percent higher year-over-year.

India’s imports fell 6.2 percent to $38.1 billion in

July, down from $40.6 billion in July 2012.

The drop came after three months of

growth. However, July’s imports did rise 5.7

percent month-to-month. For the January-

July 2013 period, imports were valued at

$288.2 billion, 2.6 percent higher than they

were during the same period in 2012.

“It is the constant endeavor of the Govern-

ment of India to enhance trade with our

trade partners for mutual benefit,” the Minis-

try of Commerce said in a recent release. “In

this context, India has taken various initia-

tives like comprehensive economic coopera-

tion agreements, free trade agreements, pref-

erential trade

agreements,

agreements

on trade in

services and

investment ,

and the South

Asian Free Trade Area, among others.”

Bilateral trade targets were set with a num-

ber of countries in Southeast Asia, as well

as Argentina. In addition, the government is

focusing on the encouragement of agricul-

tural exports through incentive programs

and other developmental assistance plans.

Shippers Seek Clarification from US on China's VAT

JOC Staff |

Aug 14, 2013

The National

I n d u s t r i a l

Transpor ta -

tion League is

asking the

federal government to find out how China’s recently implemented

value-added tax on freight transportation relates to international

cargo movements.

Although China said the 6 percent VAT, imposed Aug. 1, applies to

domestic shipping, logistics and forwarding in China, there is confusion

on how it applies to international freight traffic, NITL President and

CEO Bruce Carlton wrote in a letter to the Department of State, the

Federal Maritime Commission and the Maritime Administration. Despite

NITL’s belief that the VAT doesn’t apply to international freight, there

have been reports of ocean carriers and non-vessel-operating common

carriers charging shippers for the VAT via surcharges or service charges.

“In general, there appears to be widespread confusion over the applica-

tion of the new VAT enacted by the PRC, as well as its implementation

by service providers,” Carlton wrote. “This is clearly generating consid-

erable market uncertainty for shippers not only in the region but here in

the U.S. as well."

Indian Gas Solutions (IGS), the joint venture of BP and Mukesh Ambani-promoted Reliance

Industries will source liquefied natural gas (LNG) from the Freeport terminal in US to India,

which will help the company firm up plans for its import terminal and give it more business

flexibility , BP told ET.

"BP has recently signed an agreement with US Freeport LNG for 4.4 mtpa of liquefaction toll-

ing capacity, which will provide BP with Henry Hub-linked LNG supply. BP will be looking to

actively market some of this supply in India through India Gas Solutions. This new arrangement further strengthens BP's LNG supply portfolio

and will allow us even more flexibility in working with our key customers and stakeholders," BP India said in a statement.

"Most of BP's equity gas assets across the world are tied up so now it's the new LNG that has been contracted at the Freeport terminal in the

US that will give some concrete shape to IGS's overall gas sourcing and marketing strategies. As of now we can bring that gas to India and have

a definite sourcing plan in place," the source said.

"This will also give a clearer shape to our plans of investing in LNG terminal or building our own terminal," he added. "The joint venture com-

pany will focus on global sourcing and marketing of natural gas in India. The company will also develop infrastructure to accelerate transporta-

tion and marketing of natural gas within the country and will be funded with equal equity from BP and RIL," both companies had said in a joint

statement.

GSPC has also set up a special purpose vehicle, GSPC LNG, for implementing this 5 MTPA LNG terminal. RIL is the largest buyer of LNG in

India and imports expensive spot cargos, 2-3 a month, from LNG terminals at Dahej and Hazira in Gujarat for its captive use.

Survey: World Economy Weakened in Second Quarter

First Chinese Ship Sails to Europe via Arctic Route


The global economy weakened

slightly in the second quarter of

2013, mainly driven by declining

optimism in Asia and Latin America,

although North America showed

signs of continuing recovery, ac-

cording to a World Economic Survey published today by the

International Chamber of Commerce and the Economic Research

Institute Ifo.

The survey, which includes input from more than 1,000 economists in

123 countries, also showed some decline in the six-month economic

outlook. The poll’s climate indicator dropped to 94.1 for the third

quarter of 2013, back down to early 2013 levels, despite a rise to 96.8

percent in the second quarter.

“The poll suggests some global recovery could still be possible this

year: it’s stopped, but we’re still on an even path,” said Klaus

Wohlrabe, deputy head of Ifo’s Center for Business Cycle Analysis

and Surveys, in a written statement. “We hope the business climate

will pick up in the next quarter, but if it declines, particularly in Asia,

the world economy could deteriorate.”

In Asia, the Ifo economic climate indicator fell below its long-term

average following a temporary boost in confidence in the previous

quarter. The drop was fueled by increased caution about China’s six-

month outlook, according to the survey.

“We’re encouraged by the climate of economic recovery in the U.S.,

and some stabilization in Europe,” added Jean-Guy Carrier, ICC’s

secretary general. “However, with many economies still struggling,

governments need to do more to restore investor confidence.”

The poll reflected emerging economic stabilization in the euro zone,

with the area’s economic indicator reaching its highest level since late

2011. Only Slovenia and Cyprus were expected to see continued

economic decline. Ifo attributed the overall positivity to a “lack of bad

news.”

Furthermore, expectations for North America’s economy continue

to rise, suggesting economic recovery will continue, the survey said.


China has begun its first commercial transit of the Northeast Passage,

with the Yong Sheng, a 19,000-ton multipurpose cargo ship, heading

for Russia’s Arctic waterway en route from Dalian to Rotterdam.

The Cosco-owned vessel, which has a capacity for 1,118 twenty foot

equivalent units, left the northeastern Chinese port on August 8, and

is expected to arrive in Rotterdam on September 11 — a transit of

35 days, compared with 48 days for the traditional southern route via

the Suez Canal.

Arctic shipping is set for record activity in 2013, the fifth season of

commercial transits, as melting sea ice opens up a route that cuts the

distance between Japan and northern Europe by 40 percent compared

with voyages via the Egyptian waterway.

Russia has granted permis-

sion for 370 ships to oper-

ate in or sail through its

Northern Sea Route so far

this year, compared with 46

full transits in 2012 and only

four in 2010.

Analysts forecast rapid growth in Arctic shipping, with global warming

expected to increase the shipping season from around five months at

present to eight months by 2020.

Atomflot, the operator of Russia’s nuclear-powered icebreaker fleet,

estimates 15 million tons of cargo will transit the Northern Sea

Route by 2021, and South Korea’s Maritime Institute thinks it could

account for a quarter of Asia-Europe trade by 2030.

Shipping Corp. of India’s Loss Widens


Shipping Corporation of India

reported its net loss in the first

fiscal quarter, which ended June 30, widened to $16.2 million from $9

million a year earlier, as operating income and profit from disposal of

ships declined sharply in a tight global shipping market.

Quarterly revenue totaled $160 million, down 23 percent from $207

million in the same period in 2012. Profit accrued on “sale of ships”

decreased to $2.8 million from $7 million.

The national carrier narrowed its liner segment operating loss to

about $810,000 from $6.6 million in the year-ago quarter. Operating

revenue from liner operations dropped to $40 million from $55 mil-

lion.

SCI’s core bulk shipping business slumped to a $16.7 million loss from

an $8.2 million operating profit. Income from the bulk division was

$103.4 million, down from $139.5 million.

Operating expenses for the first quarter amounted to $170 million,

decreasing 15 percent from $201 million a year ago.

SCI, India’s largest shipping line, cut its net loss in fiscal year 2012-13,

which ended March 31, 2013, to $20.4 million from $76.4 million in

the previous year. The carrier currently has a fleet of 79 vessels with

a total cargo-carrying capacity of about 5.9 million deadweight tons.

Jawaharlal Nehru Port Trust (JNPT) is aiming to build a new Liquid Ter-

minal at an investment of up to Rs 1,800 crore through public-private-

partnership route, according to the sources.

"We have finalized plans to build the terminal having a capacity of 15 mil-

lion tonnes per annum and it will entail an investment of Rs 1,600-1,800

crore," said Mr. N.N. Kumar, Chairman, JNP .

The terminal will have a liquid jetty and a tank farm spread over 70 hec-

tares, he said, adding the required land has already been acquired. "It is

our own port land," he said, thereby

ruling out the possibility of any issues

with land acquisition.

The request for qualification document

will be floated by the end of this month

or early next month, Mr. Kumar

added.

The port already has a liquid cargo terminal being run by the state

-run oil refiner Bharat Petroleum.

JNPT plans Rs 1,800-crore new liquid terminal through PPP


A maritime attack from al-Qaida or other affiliate terrorist groups is in-

creasingly likely, according to Gulf of Aden Group Transits.

“The resurgence of al-Qaida and affiliate organizations is occurring along-

side some of the world’s most strategically vulnerable and crowded wa-

terways,” said Gerry Northwood, chief

operations officer of GoAGT, in a written

statement. “The largely unforeseen conse-

quence of the Arab Spring is that it has given

terrorists groups a new lease of life and the

means to do real harm to maritime activity

in the Mediterranean, the Suez Canal and at

other key strategic choke points.”

Northwood said that the rise in sea traffic has made the maritime

industry a “target rich environment.” He noted that the cruise

liner industry is at risk too, in addition to the obvious targets such

as oil platforms and large cargo ships.

“A terrorist attack targeting any of these key assets could have a

high impact both physically and mentally in a traditionally terror-

ism free environment, but would be seen by al-Qaida as a headline

attack that would promote their cause,” Northwood explained.

He added, “An attack of this nature could lead to significant influ-

ence on global energy security and international trade. For al-

Qaida, a maritime attack could be highly attractive; we have al-

ready seen the effect that piracy has had on the global economy

and the shipping community.”

Security Expert Says Maritime Industry a Target for Terrorists

The handling (offloading) capacity of the Major Ports in the Country is

sufficient to match with the trade demands. The capacity of all Major

Ports as on 31.03.2013 was 744.91 Million Metric Tonnes (MMT) against

the traffic of 545.79 MMT handled in 2012-13. The capacity utilization is

around 72%. As per the internationally accepted norms the gap between

the Traffic and the capacity should be around 30%.

Government has chalked out various projects to be taken during 12th

Five year Plan period for the development and capacity addition at major

Ports. Government is regularly monitoring the projects of capacity en-

hancement like construction & modernization of berths, installation of

state of art equip-

ment & mechaniza-

tion of cargo han-

dling system at

ports including the

dredging projects

to accommodate

large vessels at major ports. The present status of the capacity

augmentation projects is given in Annexure.

Centre to enhance capacity enhancement at Major Ports

The highways ministry has prepared de-

tailed project reports (DPR) for the east-

ern peripheral and Vadodara-Mumbai

expressways, worth about Rs. 30,000

crore together, and expects to complete

the bidding for these by October.

“We have prepared the DPRs for these projects. These will now be sent

to Public Private Partnership Appraisal Committee for approval,” said a

ministry official.

The steering group set up by Prime Minister Mr. Manmohan Singh

had asked the highways ministry to award the eastern peripheral

expressway by 31 December and the Mumbai-Vadodara express-

way by 1 March. According to the DPRs prepared by the ministry,

the total cost of the 400km-long Mumbai-Vadodara expressway is

estimated at Rs.25,000 crore.

Govt. may invite bids for highway projects worth Rs.30,000 crore

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 ASSOCIATION OF ASSOCIATION OF ASSOCIATION OF MULTIMODAL MULTIMODAL MULTIMODAL MULTIMODAL TRANSPORT TRANSPORT TRANSPORT TRANSPORT

OPERATORS OF INDIAOPERATORS OF INDIAOPERATORS OF INDIAOPERATORS OF INDIA

Catalysing Multimodalism

www.amtoi.org

association of multimodal transport operators the...

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