8/12/2019 Coverage of keynote speech at 'India Maritime Week 2014'

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SPECIAL REPORT WORKSHOP II

n the Ports & TerminalManagement session, NiveshChaudhary, Senior ResearchAnalyst of Drewry Maritime

services Pvt Ltd, while giving a briefmarket over view,explained how theeconomic downturn was threatening tochange the traditional shipping tradelanes. The year 2012 had been a badyear and 2013 worse. The global tradegrew at 3.7 per cent with respect to theprevious year. The traditional heavyhaul trade lane between Far East and US

West coast were now being surpassed byother trade lanes which until few yearsago were minor in terms of volumescarried. The Far East-Middle Eastand Far East-South Asia trade laneshave been witnessing robust growth involumes. If the trade volumes in theselanes were able to maintain an annualaverage growth rate of 10 per cent forthe next 10 years, they could overtakethe transpacic trade lane which isexpected to maintain an annual growthrate of 3.5 per cent in the same period.The transpacic trade lane had always

been one of the most sought after tradelane by the shipping lines.

The port sector in India is set to play an important role in the economic development of the

country. The workshop provided a thorough understanding of the larger global trade picture and

how ports and terminals can serve as effective nodes in maritime trade.

 Ports & Terminal Management 

Govt Ports can't afford to be lethargic

IThe global container trafc is

projected to grow at 4.3 per cent nextyear and the transshipment trade isexpected to grow at 4.1 per cent. SouthAsia is expected to show a steadygrowth in the next ve years whereasthe growth in US and Europe would bedepressed.

The trafc in Indian ports grew atCAGR of 7 per cent FY 2007-2013.The average capacity utilisation in theIndian ports declined to 73 per cent in2013 and is expected to decline further

in next three three years to 68 per cent.The medium- and long-term outlook fortrafc in ports is expected to be strong,but subdued in short term.

Capt. Suresh Amirapu, MD, Portmanechoed similar views, stating that thedeveloped economies would not bedriving the world economies any more,but would be driven by the developingeconomies from BRICS and nowMINT – Mexico, Indonesia, Nigeria andTurkey. ASEAN is also a power house.In the forecast up to 2024, the intra-

ASEAN trade is expected to be as highas $30 billion. The trade from ASEAN

to China was going to be $15 billion,from ASEAN to India $6, to Japan $8.Going forward Asia will not depend onEU, US or the Middle East anymore.“Asia is going to depend on Asia,” saidCapt. Amaripu.

Emerging countries would beincreasing their energy consumption. USis easing their dependence on oil importsbecause of shale gas productions. Thereappears to be a change in the load portfor oil, with Libya commencing toexport. There is going to be an increase

in LNG usage in the next ve years.35 per cent of LNG traded is carried byships and going forward this gure is setto increase.

Major dry bulks would be continuedto be driven by steel production. Thecountries where maximum amount ofconsumption will happen are India,China, Brazil and Korea - all of whomwould be increasing their steel outputand consequently would be importingcoking coal, iron ore and limestonerequired in the production of steel.

There is also going to be a demand

maritime gateway / march 201408

(L to R) Nivesh Chaudhary, Senior Research Analyst of Drewry Maritime services Pvt Ltd; Capt. Suresh Amirapu, MD, Portman;S Gopalakrishna, Traffic Manager, VPT; Nownith Kumar, Deputy Traffic Manager of New Manglore Port Trust; Himanshu Shekhar Rawat,Executive Engineer, Paradip Port Trust; Anil Sahni, VP (North India), Yangming Line India.

8/12/2019 Coverage of keynote speech at 'India Maritime Week 2014'

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SPECIAL REPORT WORKSHOP II

for coal for thermal power. Indonesiaand Australia are the largest exportersof coal. Coal production will increasein Australia by 10 per cent in the nextve years and is expected to overtake

Indonesia as early as 2017.Himanshu Shekhar Rawat, Executive

Engineer, Paradip Port Trust explainedhow the port with limited facility couldperform as good as any European port.When he visited Antwerp Port a fewyears back he was told that in 2010-11, the port had handled 192 milliontonnes of cargo. Their berth had a quaylength 150 km alongside the river fromBelgium to Netherland. In Paradeepthe total quay length was a mere 6 km.However last year the port handled56 million tonnes of cargo. This yearthey expect to handle 66 million tonnesof cargo. They were no less efcientthan any international ports, says Rawatproudly.

Rawat says that comparing majorports with private ports was not correct.Most private ports operate on terminalconcept. Most terminals were “monocommodity” whereas ports handledmultiple commodities including OverDimensional Cargo (ODC), vital fordevelopment of industries. Rawat justiably says major ports are the main

gateway ports for the development ofindustries in the hinterland.

Nownith Kumar, Deputy TrafcManager of New Mangalore Port Trustdemonstrated how a port can overcomeobstacles that can be crippling innature and turn out to be one of theleading ports in India. When a banwas imposed by the government ofKarnataka on iron ore, New Mangalore

was handling 36 million tonnes ofthat commodity. With the unexpectedban in place, the New Mangalore Portauthorities decided to take matters intotheir hands. The ofcers were deputedto approach the importers to divert thecargo to Mangalore. The initiative wassuccessful. They also decided to tap coalimports. To this end they made Railway

their partner, threshed out the logistichiccups to bring coal to the port. Thecommodity substitution worked well andtoday the New Mangalore Port is one ofthe destinations for the import of coal

into India. The Railways has also benetted

in the process. The Palghat divisionof the railways now depends on NewMangalore Port for the revenue of ` 500 crore per annum generated throughthis port.

New Mangaore has the advantageof having the deepest harbour in thecountry, i.e. 14 metres. The dwell timefor any cargo in the port is less than22 days. The coal importers are able toevacuate the coal within 12 days. The

average turn of any vessel in the port is3.16 days says Nownith proudly.

The connectivity to the hinterlandpoints was lacking. The Railways werenot interested in the connectivity. ChiefMinister SM Krishna then suggestedthat the port become a stakeholder alongwith Railways and the State to developthe Hasan-Mangalore line. That decisionworked and today they have a railconnectivity right upto Bellary mines – adistance of almost 200 km.

But their quest for additional cargo

did not end there. They decided totarget the coffee growers of Karnataka.Teams were sent out to nd out therequirements of coffee exporters. Theirneed was they wanted a container lineconnecting New Mangalore Port. Themainline operators were not interestedfor a direct connection to the newMangalore Port. The alternative was toapproach the small feeder lines. The planworked. They have now been successfulin diverting a substantial coffee cargo tothe port. Today it is the largest exporterof coffee from India. The port has three

sailings per week – connecting ports ofColombo and Mundra. Mainline vesselshave commenced direct calls to the portswith Cashew imports from East andWest Africa. In 1974-75 the trafc was0.9 million tonnes and in 2012-13 it was37 million tonnes.

Nownith says that they have realizedthat the Government ports cannotafford to be lethargic, they have to beproactive, open up to the public, redressgrievances and function 24x7 to survivein the business and stay ahead of the

private ports. That was sound advicefrom a very successful port operator.

“The developed

economies would

not be driving the

world economies

any more, but

would be driven

by the developing

economies from

BRICS and now

MINT- Mexico, Indonesia, Nigeria and

Turkey. ASEAN is also a power house.”

Capt. Suresh Amirapu 

 MD, Portman

march 2014 / maritime gateway  09