<strong>WorldCargo</strong> news Mumbai dredging demand Port operators and developers who have been shortlisted to develop and operate an offshore container terminal at Mumbai Port have come up with an unusual demand: they want penalties to be imposed on Mumbai Port Trust (MbPT) if it fails to meet its commitment to dredge the channels. As reported in the July 2005 issue of <strong>WorldCargo</strong> <strong>News</strong> (p5), 11 companies have been shortlisted for the project and they are expected to send in their financial and technical proposals before the end of next month. The shortlisted bidders include overseas operators like P&O Ports, Dubai Ports International, APM Terminals, Evergreen Marine and Mitsui OSK Line of Japan. Indian companies in the race are Larsen & Toubro, Adani Ports, United Liner Agency, Gammon India and ABG Heavy Industries. MbPT has told the potential bidders that they will have to pay a penalty of Rs 2.5 mill (<strong>US</strong>$57,000) Malaysia’s Port of Tanjung Pelepas (PTP) has dismissed rumours that Taiwan’s Evergreen Marine Corp, its second largest customer, may move back to Singapore to get better service. “As a multi-user terminal we are committed to providing the same high standards of service to all our customers,” a PTP spokesman said. “The size of one customer does not impact on any of our other customers.” Some industry watchers have Potential bidders for the Mumbai offshore terminal want dredging guarantees per day if they fail to complete the construction of the terminal within the agreed time frame. The bidders have little choice but to accept the penalty clause, but they have now demanded that the concession agreement should include a clause that MbPT will be liable to pay damages amounting to Rs11.97 bill (<strong>US</strong>$272 mill) if it fails to dredge the channel to alluded to Evergreen’s departure because of the clout that Maersk Sealand has at PTP with its parent AP Møller-Maersk’s 30 per cent equity stake in the facility. Maersk Sealand moved its transhipment business from Singapore to PTP because it could not get dedicated berths at the terminals operated by state-run PSA Corp. While officials at Evergreen’s headquarters in Taipei declined to comment, a Hong Kong-based shipping executive dismissed the PTP scotches Evergreen rumours 13m from 10.6m at present at Victoria and Princess Docks. The port trust has already said it will be responsible for the dredging work, but has not so far accepted the penalty clause proposed by the bidders,. The port has been under pressure to offer additional incentives because the winning bidder(s)will be competing against two established container terminals at the nearby Jawaharlal Nehru Port. No financial proposals were submitted in the first round of bidding last December, but this time the MbPT has offered its existing container terminal at Ballard Pier to the successful bidder for the offshore terminal. The offshore terminal, which is expected to cost Rs10 bill (<strong>US</strong>$227.5 mill), will be <strong>built</strong> in two phases, the first seeing the development of two berths capable of handling 800,000 TEU/year and the second phase involving the construction of a third berth to push capacity up to 1.2 mill TEU/year. The successful bidder for the first phase will also have the first right of refusal to build and operate the third berth. ● MbPT, which is planning to modernise and mechanise operations at its bulk terminals to fight off strong competition from other ports in India, has invited global tenders for the development of a dry bulk terminal at Indira Dock. The terminal is being offfered for a period of 30 years on a buildoperate-transfer (BOT) basis. speculation outright. “It looks like PSA is spreading these rumours after getting the service termination notice from P&O Nedlloyd,” he said. P&O Nedlloyd, a major PSA customer, has been taken over by AP Møller and is being merged with Maersk Sealand. “I don’t think AP Møller, as a stakeholder in PTP, will be stupid enough to force a large customer out to get better service for Maersk,” he said. “In any case, there is enough capacity at PTP to accommodate another 2 mill TEU of business annually.” Following the merger news, PTP, which handled over 4 mill TEU last year, announced that it will build two more berths, increasing their number to 10 and annual handling capacity to 8 mill TEU. On comments by some shippers that PTP is facing capacity constraints, the spokesman said that because of high efficiency and productivity levels, the port’s berth utilisation rate is currently less than 55 per cent “There is no congestion and there are no capacity constraints at PTP,” he said. Shareholders in Shanghai Port Container (SPC), the listed subsidiary of Shanghai International Port Group (SIPG), have approved a plan to dispose of the government’s holdings in the company. Holders representing 98.42 per cent of the company’s tradable shares voted in favour of the share sale plan, SPC said. SPC, 75 per cent owned by SIPG, is one of the 46 companies the government has selected to take part in a pilot programme to trim its stockholdings in domestically-listed companies, which are held in the form of non-tradeable shares and make up two thirds of the market capitalisation. Small investors in SPC will receive 2.2 shares from major PORT NEWS Green light for SPC stock sale shareholders for every 10 shares they hold and receive Yuan10 (<strong>US</strong>$1.24) in cash for every 10 shares held. Non-tradeable shares include stock held by municipal, provincial and the central government, and so-called “legal person” shares held mostly by state-owned companies. Through these holdings, the government controls most of the 1380 companies that have gone public by selling shares to private investors. The government wants to convert non-tradeable shares into common stock that can be traded on the stock exchanges to replenish the country’s pensions plans and improve corporate governance. Healthy Felixstowe The UK Port of Felixstowe has signed a landmark agreement with Suffolk Coastal District Council’s Port Health Authority, the local agency responsible for the inspection of food products coming through the port, which sets out a clear set of objectives and working practices for the timely and efficient inspection of containers at Felixstowe. A Joint Management Team (JMT), comprised of department heads from the Port of Felixstowe and the Port Health Authority, has been established and will evaluate day-to-day performance and discuss any matters arising at monthly meetings. A Steering Committee, made up of senior representatives from both parties, has also been set up, meeting quarterly to resolve issues raised by the JMT and to undertake a full annual review of the agreement. “This agreement is the culmination of extensive discussions that we have had with the Port Health Authority over the past 12 months on ways to reinforce and improve the existing spirit of co-operation and joint working,” said Duncan Morgan, director of operations at the Port of Felixstowe. Argo International Corporation Headquartered in New York City with a Worldwide Global presence, Argo International is an Electrical and Mechanical Parts & Components distributor specializing in Material Handling applications. For over 50 years Argo has been serving Ports, Shipyards and Material Handling OEM’s in America, Europe, Middle East, Africa and Asia, please contact your nearest Customer Service center for immediate support: North & South America Europe Middle East & Africa India Pakistan & Bangladesh Far East 140 Franklin Street Ankerrui 26-30 15 West Wind, Lokhandwala Complex D2,23/F, Jiangsu, 526 East Laoshan Rd. 10013 New York NY 2000 Antwep Belgium Andheri (W), Mumbai 400 053 India 200122 Pudong, Shanghai Tel. (212) 431.1700 Tel. +32 (03) 222.9450 Tel. +91 (98) 201.83746 Tel. +86 (21) 5109.9683 Fax. (212) 219.1751 Fax. +32 (03) 231.0122 Fax. +91 (22) 263.56034 Fax. +86 (21) 5821.3707 E-mail: info@argointl.com E-mail: argo20@argoeurope.com E-mail: gsubramani@argointl.com E-mail: info@argochina.cn GE Consumer & Industrial Crane Control System Parts Drives: Af300, DC300, DC2000 Innovation Drives AC/DC Motors and Spare Parts & Components PLC Parts and Components Series 90-30/70 PLC GENI<strong>US</strong> I/O & Field Control Series Six PLC Repair, Exchange, Remanufactured, Test & Certificate Services available GE Lighting Hillmar Industries International leader in the design and manufacturing of: Thrusters, Thruster Disc Brakes, Storm Brakes, Hydraulic Power Units, Industrial Disc Brakes & Cable Reels for Marine application Federal Signal Prime worldwide Manufacturer of: Warning Lights, Intercom Systems, Horns, Bells and Sirens Communication Systems for indoor and outdoor applications Avtron Pyle-National Starline Plugs & Receptacles Industrial Encoders GE DC300 Drives Retrofit Specialty Lamps & Lighting Fixtures for Marine Application. 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