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Portways-Magazine-April-2018-Issue- Second Week

SHIPPING 2 Wilhelmsen

SHIPPING 2 Wilhelmsen and KONGSBERG establish World’s first autonomous shipping company Wilhelmsen and KONGS- BERG are joining forces to take the next step in autonomous shipping by offering a complete value chain for autonomous ships, from design and development, to control systems, logistics services and vessel operations. Meet Massterly As a world-leading maritime nation, Norway has taken a position at the forefront in developing autonomous ships. Through the creation of the new company named Massterly, we take the next step on this journey by establishing infrastructure and services to design and operate vessels, as well as advanced logistics solutions associated with maritime autonomous operations. Massterly will reduce costs at all levels and be applicable to all companies that have a transport need,” says Thomas Wilhelmsen, Wilhelmsen Group CEO. Currently, we are at the very beginning of this development, but we see and believe that there will be a significant market for these types of services in the near future. At first, short sea shipping will use autonomous ships. This also implies increased competitiveness to move transport from road to sea. The gains are increased efficiency and reduction of emissions. For Norway as a maritime nation, this will be an important contribution to reach the UN sustainable development goals,” says Wilhelmsen. The new joint venture company will be based at offices in Lysaker, Norway, and be fully operational from August 2018. Hellanic ONE to have Strong Commitment to Indian Market : Masaki Osawa, Managing Director - India, ONE Ocean Network Express Pte. Ltd. ( hereinafter referred to as "ONE" ) recently announced the commencement of Container Shipping businesses on April 1, 2018. ONE is the result of an integration of the Container Operations of three Japanese shipping carriers, namely, Kawasaki Kisen Kaisha, Ltd ("K" Line), Mitsui O.S.K. Lines, Ltd (MOL), and Nippon Yusen Kabushiki Kaisha (NYK). The company seeks to meet customers’ needs by providing high-quality, competitive container shipping services with the consolidation and enhancement of the three companies’ global network and service structures. The integration lets ONE to incorporate best practices from the three companies and to take advantage of their combined 1,440,000 TEU fleet size. Supported by a worldwide high level, globally-connected organization, it offers 85 service loops and a comprehensive network linking more than 200 of the world’s Major Ports. Mr. Masaki Osawa, Managing Director - India, Ocean Express Network (ONE) in an Exclusive interview with Daily Shipping Times. ONE, formed in 2017 by integrating "K" Line, MOL & NYK has rolled out its services from April onwards. How has been the integration process so far for these three shipping giants into ONE network? The Journey was quite challenging to the extent that each legacy company was having different practices. In order to offer best and reliable services to valuable our customers we adopted best practices from each legacy company and built a very strong workforce. We are ready to go ahead. The announcement of all our services to each of our valuable customers, integration to one global management system, and the strong commitment of our employees all over the world to our new company’s future are some of MSC Shipmanagement Awarded “Green Company of the Year” in India MSC Shipmanagement was named “Green Company of the Year” at the prestigious 17th Annual Sailor Today awards in Mumbai, underlining MSC’s sustainable approach to its fleet and crew. MSC was acknowledged for its commitment and initiatives around environmental protection, vessel energy efficiency, fleet performance and seafarer training. the take away of this integration. ONE is positioning itself as being “large enough to survive, but still small enough to care.” In this context, how does ONE plan to differentiate its offerings vis-a-vis other Global Shipping Alliances to win customers? We have a very strong DNA from three legacy companies, which are customer focussed, service oriented and providing high quality service. We assure to hear our customers’ voices and respond to their needs in a timely and courteous manner. How many ONE services connect India? Could you elaborate? What would be its advantages for the Indian trade? We have 12 direct call services with major base ports as well as developing ports across India. We offer services from India to all other regions around the globe,directly and also indirectly via hub ports. This is ONE’s strong commitment to Indian market. ONE has recently announced new services between Indian Ocean, Middle East and Europe from beginning of April? Do you foresee any other new offering in near term connecting India with other regions globally? We cannot say anything more at this moment, but we have so many ideas of new offerings. Our very important role is to work together with our Global & Regional Head Quarters closely on these ideas, providing insight on the requirements of the Indian market and our customers. How do you see the growth potential for Containerized cargo in India? As you know well, historically India was a highly Import dominant Country, and carriers were struggling to tackle the imbalance between Import & Export as well as the NorthWestern region and South Eastern region. But now export cargo growth is outstanding especially to Europe and US, ME & Africa. As a result, the imbalance of Import and Export is much more manageable in terms of container volume. That’s very good trade environment for carriers. Do you see more consolidation happening in Container liner shipping through mergers and acquisitions or do you feel there is no scope for any further major consolidation? I cannot comment on what may happen going forward, but we will single-mindedly focus on continuity of high quality service from three legacy companies and sustainability of the new company right from this moment. There is a view among shippers Over 1800 guests from the ship-management industry from locations such as Hong Kong, Singapore and the U.K. witnessed Mr Pradeep Rawat, Chairman of India’s National Shipping Board, present the award to MSC. Separately, MSC’s modern, green fleet was also recently commended at an annual function in Odessa organized by the National Maritime Rating of Ukraine, where MSC Shipmanagement scooped “Shipmanager of the Year.” DST that consolidation limits their choice. What is your take on this? How will such mergers and acquisitions impact freight rates in the segment? While I may agree to your comment, but I believe it will contribute to stabilization of ocean freight market without huge up and down fluctuation. Where do you see ONE in a year’s time? Our goal of the first year is to continue to have even closer and stronger relationships with our valuable customers than before, and to establish a rock solid corporate infrastructure. We have 370 employees across 17 offices in Pan India. This is not a small company DST

PORTS 3 Mumbai Port handles 62.83 MMT throughput in FY2018 Mumbai Port handled cargo throughput of 62.83 million tonnes during the financial year 2017-18 which is marginally lower than 63.05 million tonnes handled during the previous year in spite of reduction in pulses and stream cargo due to imposition of import duty and discontinuation of JSW coal discharge at stream. In addition, MbPT registered record performance in handling of automobiles. • Highest ever shipment of export vehicles was achieved in Mumbai Port as the financial year 2017-18 was closing. Record number of 6388 units of export vehicles were shipped on Pure Car Carrier Vessel M.V. Hoegh Shanghai on 29.3.2018, surpassing the earlier record shipment of 6312 export vehicles. • Mumbai Port continued the growth story in export of automobiles registering 10.66% growth in the financial year 2017-18 handling Seattle Welcomes Giant MSC Boxship Mediterranean Shipping Company’s MSC Laurence arrived at the Northwest Seaport Alliance’s Terminal 46 in Seattle on April 5, becoming the largest containership to call the terminal. The Laurence has capacity for almost 13,000 20-foot equivalent container units (TEUs). If laid end-to-end, the 13,000 TEUs would stretch to the top of Mount Rainier 18 times, a distance of almost 50 miles, according to NWSA. Built in 2011, the Neo-Panamax features a length of 365.8 meters and a width of 48.4 meters. Two years ago, the NWSA welcomed the 18,000 TEU CMA CGM Benjamin Franklin, the largest ship to call the US at the time, and 10,000 and 13,500 TEU ships call regularly in the North and South harbors. Larger vessels require terminals with deep berths, strong piers and large container cranes. In order to meet these requirements, NWSA has been investing in upgrades to the North Harbor’s Terminal 5 and South Harbor’s Husky Terminal. 2,27,484 units vis-à-vis 2,05,577 units in the previous year. • The notable achievement In 2017, NWSA’s international container volumes increased by 4 percent and were the fourth highest in NWSA history. Kolkata Port to revive ship repairing facilities with Cochin Shipyard deal After signing a profit-sharing agreement with Cochin Shipyard Ltd (CSL) - India's largest shipbuilding and maintenance company - Kolkata Port Trust (KoPT) is set to revive its ship repairing facilities in two out of five idling dry docks which it abandoned in 2015. Under the terms of the agreement, KoPT will be providing the necessary waterfront, dry dock, land and will be repairing part of associated infrastructure while CSL will repair and operationalize the idling machines needed for repairing ships and may also install renovated machinery pieces if needed. The profit from this venture will be shared in a 40:60 ratio between KoPT and CSL. According to KoPT Chairman, Vinit Kumar, the project is expected to be completed in the next 3-4 years and upon completion, KoPT will be able to repair 16-18 ships every year which has the potential to generate revenues of Rs 500 million a year. Expecting container handling for Nepalese cargo to surge by around 3-4 per cent this year and bring in more transparency in container handling rates, KoPT has also set up a dedicated trade facilitation centre for the Himalayan neighbour. "We have always been told (from the centre) to give the highest priority to Nepalese cargo and it continues to be so. However, lack of information and transparency in rates were affecting the trade with Nepal and thus we have come up with this initiative", Kumar said. DST Major Ports register positive growth of 4.77 percent during 2017-18 The Major Ports in India have recorded a growth of 4.77 per cent and together handled 679.35 Million Tonnes of cargo during the period April 2017 to March 2018 as against 648.39 Million Tonnes handled during the corresponding period of previous year. Nine Ports - Kolkata (including Haldia), Visakhapatnam, Paradip, Kamarajar, Chennai, Cochin, New Mangalore, JNPT and Deendayal also registered positive growth in traffic. Cargo traffic handled at Major Ports: Cochin Port registered the highest growth of 16.52 per cent, followed by Paradip 14.68 per cent, Kolkata (incl. Haldia) 13.61 per cent, JNPT 6.2 per cent and New Mangalore 5.28 per cent. • The growth at Cochin Port was mainly due to increase in traffic of Fin. Fertilizer (105.88 per cent), this year was the export of Compass (Jeep) vehicles from India to developed countries. This way Mumbai Port is contributing to the Make in India campaign. On this occasion, Shri Sanjay Bhatia, IAS, Chairman, Mumbai Port Trust thanked all the stakeholders and expressed commitment to Ease of Doing Business at the port and create facilities thereof. DST The alliance’s total international container volumes stood at 2.96 million TEUs in 2017, compared to 2.86 million TEUs recorded in 2016. POL (20.62 per cent) and Containers (12.46 per cent). • In Kolkata Port, overall growth was 13.61 per cent. Kolkata Dock System (KDS) registered traffic growth of 3.45 per cent. Whereas Haldia Dock Complex (HDC) registered positive growth of 18.61 per cent which is highest among all the Major Ports. • Deendayal (Kandla) Port handled the highest volume of traffic 110.10 Million tonnes (16.21 per cent share), followed by Paradip with 102.01 Million Tonnes (15.02 per cent share), JNPT with 66.00 Million Tonnes (9.72 per cent share), Visakhapatnam with 63.54 Million Tonnes (9.35 per cent share) and Mumbai with 62.83 Million Tonnes (9.25 per cent share). Together, these five ports handled around 60 per cent of Major Port Traffic. • Commodity-wise percentage share of POL was maximum at 31.55 per cent, followed by Container 19.67 per cent, Thermal & Steam Coal 14.02 per cent, other Misc. Cargo 13.62 per cent, Coking & Other Coal 7.45 per cent, Iron Ore & Pellets 7.15 per cent, Other Liquid 4.33 per cent, Finished Fertilizer 1.11 per cent and FRM 1.11 per cent. DST

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