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j. m. baxi group
TIDINGS
ISSUE xXXIII APRIL - JUNE 2021
LOGISTICS: TECHNOLOGY: IN CONVERSATION:
08 18 22
Boom In Coastal Achievements Of With Mr. RINKESH
Ocean Freight For The INDIAN PORT ROY, Ex-Chairman
Project Cargo COMMUNITY SYSTEM of PARADIP Port
April - June 2021
Newsletter Issue XXXIII
Table of Contents
J. M. BAXI GROUP 05 J M BAXI OFFERS CONSOLIDATED SERVICES
FROM NORTH INDIA TO THE GULF VIA KANDLA
TIDINGS
06 EXPANDING WINGS AND GIVING CUSTOMISED
EDITORIAL TEAM: SOLUTIONS
Mr Nandan Yalgi
Mr K K Krishnadas 10 MOVING A MONSTROUS YET DELICATE CARGO
Capt. Tamal Roy
PACKAGE
Mr Sushil Mulchandani 12 ALUMINIUM INGOT EXPORTS FROM PARADIP
Capt. Sunil Chopra
Mr Siddhartha Roy 14 HANDLING A $40 MILLION RIG IN A $400 MILLION
Cdr. Sunil Dhulekar AIRCRAFT: THE BAGHJAN OILFIELD BLOWOUT
Mr Shirishchandra Shah
16 SHIP RECYCLING DURING COVID-19
Mr Rajnish Khandelwal
Mr Keki Master 20 INDIAN PORTS BILL, 2020 – A GAME CHANGER IN
Mr Samir Shah THE INDIAN MARITIME SECTOR
Mr Sunil Shetty
Ms Meera Kumar
25 INDIAN COTTON YARN – TRENDS AND INSIGHTS
Mr Ajay Tolani 27 PORT STATISTICS
Mr Ashish Sharma
Ms Shwetal Kharbari * All maps are for representation purpose only
DESIGN TEAM:
Ms Dhara Kapadia
Mr Jayakumar Ramajayam
Ms Shilpa Nalavde
COver page:
Paradip International Cargo
Terminal
08 18 22
J M BAXI GROUP
A: Godrej Coliseum, 10th Floor, 1001-B Wing, Everard Nagar, Sion (East), Mumbai, Maharashtra - 400022. INDIA.
B: +91 . 22 . 6153 7900 | E: corp@jmbaxi.com | W: www.jmbaxigroup.com
April - June 2021
Newsletter Issue XXXIII
From the
Quarter Deck
D
ear Friends and Colleagues, showing a positive trend. The long
we are already in the first tail of COVID-19 will last for at least
quarter of 2021 and if we six more months, maybe 12 months,
were to compare this quarter but India will take positive strides
with the first quarter of 2020, we along the path it has taken for the
can observe some similarities and last few years.
differences. In both years, cargo
volumes from Asia to the US and In the last few months of the
from Asia to Europe were high and pandemic crisis, as also in the nations, India needs to own and
the ships were full. The difference is coming times and months, some create a strong manufacturing and
that freight rates are twice or even of the policies of the government technology base. Therefore, schemes
thrice higher and not 20% or 30% of India give an interesting like Atmanirbhar, production-linked
higher. The other differences are that perspective, which will be very incentive schemes, Made in India
the US has a new president and a useful for the future. Specifically, etc., will increasingly need to happen.
new administration and the new fuel in the port sector, we have seen They will happen and India will grow.
and SOx emission guidelines for ships the formation of the Sagarmala
have been successfully implemented. Development Company(SDCL), Ports, transport, logistics,
The world has just endured almost 12 the Indian Port Rail Corporation warehousing, FTWZs and SEZs,
months of interruptions due to the company (IPRCL), the strengthening are going to play a larger and
COVID-19 pandemic, with lockdowns, of the Inland Waterways Authority larger role in this new framework.
partial lockdowns, and disruption of India, the dredging and creation It is, thus, with a deep sense of
to long and short journeys. These of terminals on various riverways, excitement and adventure that
COVID-19 times have permanently the corporatization of ports, the we have welcomed Bain Capital to
changed some things. They have introduction of new laws and acts, partner us on our journey ahead.
accelerated some trends and which are contemporary and aligned Bain has acquired a significant
strengthened some practices. They with modern needs, the port-led minority stake in our terminals,
have brought to the fore some issues development model, which aims infrastructure, and logistics
we have all tended to underestimate, to bring ports and port land into activities. Our combined strength
such as the importance of the SEZ, maritime clusters etc. gives us considerable financial
robustness, resilience, repairing, The pandemic also accelerated heft. The partnership will increase
reforming, resurging, reassessing, the adoption of more technology our financial and administrative
redressing, and restoring. and digitization into our work discipline. Our network of terminals
and processes. Moreover, due to and facilities are well positioned
We, in India, entered 2021 with a geopolitics, socioeconomic factors and deeply embedded into the
spirit of positivity, as some of the and the geo-economic realities, India logistics and supply chains of the top
relevant numbers are positively will try to increase its self-reliance. industrial clusters and companies in
promising. Cargo volumes at ports India’s coming of age as one of the India, handling almost all types of
– both container and non-container top 10 economies of the world entails commodities and cargo. Most of our
– have seen a steady upward trend. increasing the competitiveness of our facilities have the ability to grow in
The demand for goods and services manufacturing, agriculture, services, size, scope and scale. Similarly, our
also has witnessed an increasing infrastructure, and technology logistics vertical is uniquely placed,
trend, and inflation seems to be sectors. To achieve this objective as we have multimodal capability
partially under control. Exports are of being in the top five or top 10 including rail, road, water and air
3
April - June 2021
Newsletter Issue XXXIII
From the
Quarter Deck
and we are also specialists in moving growth and therefore a quick shipping, but also by rail as well.
multiple types of cargo, such as recovery and rebound. Most India’s connectivity with Nepal is also
containers, break bulk, bulk and, commentators and business leaders witnessing strong steps.
of course, heavy lifts and projects. are expecting a V-shaped recovery.
Our partnership allows us to think One of the plans to combat the
higher and better. It will enable us India presented its Financial economic after-effects of the
to attain bigger goals and larger Union Budget 21-22 and some of COVID-19 pandemic has been for
objectives, while being sustainable the highlights are: India to create and build world-class
and profitable! We shall continue to infrastructure. The government
do what we have done for 100 years 1. A substantial outlay for of India has published a national
of sustainable growth. the health sector including infrastructure pipeline, which lays
preventive, curative, and well out all the infrastructure projects.
We have seen volumes at ports and being Interestingly and thankfully, the port
shipping and transport volumes, 2. The outlay for infrastructure sector has a sizeable percentage of
this national plan, which presents
by and large, coming back to pre- has been substantially
interesting opportunities. Linked
COVID levels. Some ports, especially enhanced with great emphasis
to this, there are also various gas
in the US and China, have higher on Rail, Roads as also PPP
projects, especially in the LNG sector,
volumes than pre-COVID. Almost in various sectors like Ports,
such as port terminals, FSRUs, city
all commodities have made a sharp Airports, Power especially
gas distribution concessions and pan-
recovery to price levels comparable renewable power, water and
national highway gas filling stations.
to pre-COVID times. In some cases, sanitation
commodity prices are even higher. 3. National infrastructure
The first quarter of 2021 has seen the
There are orders for most types pipeline
2nd or 3rd wave COVID-19 pandemic
of new ships, especially container 4. National assets monetization
in various countries. Some of these
ships, tankers and gas carriers. pipeline countries has also seen a second
Concerns and commitments 5. Create a development or third lockdown or shutdown.
regarding the environmental impact financial institution Thankfully in most countries the
of ships, such as their CO2 and SOx vaccination drive has begun as
emissions, have seen increased The next 3 to 6 months will see the also in India. But let us know and
experimentation and studies on new privatization/disinvestment process remember that vaccine is not a total
and different types of fuel, such of the Shipping Corporation of India complete cure. COVID-19 virus is not
as LNG, hydrogen, ammonia, wind (SCI), Bharat Petroleum Corporation yet eradicated. So, whilst we need to
power etc. The coming decade is Limited (BPCL), Container go ahead with confidence and hope
likely to see phenomenal changes Corporation of India Limited for 2021, we also need to be cautious
in this sphere. Just as we saw in the (CONCOR) and other PSUs. and careful in terms of masks and
last decade with the ever-increasing physical distance.
and unimaginable growth in the size In India, we are seeing cargo volumes
of ships, the coming decade is likely beginning to come back to pre- We are looking forward to working
to witness a paradigm shift in ship COVID-19 levels. We are also seeing with you and let’s hope and wish for
technology. many exciting developments in our a great year ahead for all of us
neighbourhood, with Bangladesh
These and other several plans and and India becoming increasingly Krishna B. Kotak
Chairman - J M BAXI GROUP
schemes will lead to substantive connected by road, river and coastal
4
April - June 2021
Newsletter Issue XXXIII
Infrastructure
J M BAXI Offers
Consolidated Services
From North India To The GULF Via KANDLA
A
s a group J M BA XI tries to Currently Prime Maritime has which will give ease to customers
offer diversified and unique fixed slot of 100 TEUs on a weekly while operating with these two
logistics solutions to its basis on the BTL / Safeen service. locations using ICT services.
customers, which includes This service runs on Tuesday from Customer will have an option of
single window solutions for liner Kandla and the routing is Karachi / Mundra, as the port is mostly
services, container rail services and Kandla/ MICT / GTI / Sharjah / Khalifa / congested and slot availability
terminal services, transportation, Bahrain / Dammam / Um Qasar. Prime is always an issue from port for
freight forwarding and custom Maritime is loading 150 TEUs / week NVOs.
house services, with the help of its on this service from Kandla port. Operating costs for customers
different business vertical units. will be reduced as Kandla port
Sonepat and Ludhiana are both rice distance is less than Mundra. Also,
The north India terminal of JMB export markets with major PODs the port charges of Kandla are
group is Delhi International Cargo in Gulf-based ports, some of Far competitive in terms of Mundra.
Terminal which is currently one of Eastern sectors, USA and Europe. Customers have to communicate
the leading terminals in the NCR With the introduction of this service, with just one entity for the entire
region. We are currently serving the rice exporters of the Sonepat movement, which will give them
Mundra / Kandla / Pipavav ports from and Ludhiana belt can utilize end- confidence in our services.
these facilities. to-end services with our facility,
which provides terminal services, ICT Will Also Benefit
Also, we have a daily service rail services and shipping services all From This Movement As
between Ludhiana and Mundra from under same roof.
Kilaraipur (Ludhiana). ICT will be able to manage
Currently Prime Maritime, Win win inventory for customer between
As United Liners we have agency Maritime and Radiant Shipping are DICT and Ludhiana on its rakes
services for Prime Maritime, which using Kandla port via DICT. We are which will help them to develop
is one of the leading NVOs for the developing the same service with a base for customers at either
Gulf sector. With Prime Maritime we other NVOCCs for the DICT and location.
are working on the development of Ludhiana locations also. This type One more route will be developed
routing for Gulf-bound containers of business prospect will provide and will result in the addition of
from DICT and Ludhiana using Kandla confidence to customers in using our service sectors.
as the routing / loading port. facility with end-to-end services till There will be an improvement in
POD. Customers will benefit from the customer base and confidence
DICT started the Kandla service this service in the following ways: will be gained with multiple
w.e.f. June 2020 and handled movement options in case of any
approximately 1,400 TEUs during Single door solution for rice issue related to Mundra / Kandla
three quarters of FY 2020–21. export towards the Gulf sector. port.
As inventory is a major issue
DICT - KANDLA THROUGHPUT for rice exporters (inventory This unique proposition of integrated
348 imbalance due to major import of service offering by J M BA XI
350
40’ and export of 20’), as ICT we has truly brought the concept of
300
235 will bring import from the Gulf containerisation to the doorstep
250 210 226
200 172
using Kandla port which will result of the customer, wherein a single
150 140 in the addition of inventory for infrastructure company is able to
99
100 both catchment areas. provide the landside as well as ocean
50 Also, the surplus of inventory service to its customers
0 Jun -20 Jul -20 Aug -20 Sep -20 Oct -20 Nov -20 Dec -20 can be shifted to either place,
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April - June 2021
Newsletter Issue XXXIII
Infrastructure
Expanding Wings And Giving
Customised Solutions
I
nternational Cargo Terminals Odisha is the mineral hub of India Hirakud (aluminum and rolling
(ICT), as a container train and the largest aluminium, steel mills)
operator, strives to provide best and stainless steel producer in the
in class train services from ports country. It has the highest mineral Talcher-Angul (thermal power,
to various locations and serve its production of INR 49,505.66 crore aluminum, coal washeries, ferro
industrial base in catchment area. with 13.88% of India’s total value. alloys, coal mines)
Odisha’s rich mineral reserves
ICT currently operates 20 rakes on constitute 28% iron ore, 24% coal, 59% Choudwar (ferro alloys, thermal
Indian railway circuits. Till a few bauxite and 98% chromite of India’s power, pulp and paper, coke oven)
months back, ICT had primarily total deposits. Major companies like
focused on connecting its ICD, DICT Tata Steel, Jindal Steel, Vedanta, Balasore (pulp and paper, ferro
with the western gateways of Mundra Hindalco, Raurkela Steel Plant, Visa alloys, rubber industries)
and DICT. Steel, Bhushan Power and Steel,
Performance For The Route
As a container train operator, we
JSL - VZG Performance (TEUs) Total TEUs
were earlier operating between 2000
western ports and north Indian 1,620 1,510
ICDs. Now we are expanding 1500
services by adding more ports for 1,240
1,070
the sector and spreading the same 1000
to the eastern coast of India. 810
500
Currently serving Delhi NCR from
DICT Sonepat and Ludhiana using Kila 90
Raipur via Mundra and Pipavav, we 0
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
have recently added eastern coast
services and the Kandla North India Indian Metal and Ferro Alloys, Chandikhol (stone crusher, coke
service to our portfolio, witnessing National Aluminium Co., Balasore oven)
a diversity of service areas as a Alloys, Tata Ferro Minerals are a few
container train operator. major industries of the state. Duburi (integrated steel, ferro
alloys, rubber industries)
The state attracted Foreign Direct
Eastern Coast Services Investment (FDI) inflow worth US$ 605 Paradeep (fertilizer, sea food
million between April 2000 and March processing, petroleum coke)
2020 according to the data released
By starting a service between Vizag by Department for Promotion of Khurda – Tapang (stone crusher)
port and Jajpur, ICT is giving options Industry and Internal Trade (DPIIT).
to the Orissa industrial belt for the Joda – Barbil (iron, sponge iron,
usage of the nearby port, which will The state can be divided into twelve ferro alloys, iron ore crusher,
bring down their cost and transit time industrially active zones / areas, mineral processing)
in comparison with JNPT (currently namely:
used port by major industries). Rayagada (pulp and paper, ferro
Rajgangpur (iron and steel, alloys).
Movement was started from July sponge iron, cement, secondary
4th week with one rake for the steel, melting and rolling mill and Iron ore is abundantly available in the
route while the same has been refractories and chemicals) districts of Mayurbhanj, Sundargarh,
increased to up to three services Keonjhar and Jajpur. Chromite
per week. Ib Valley (thermal power, sponge meanwhile is mostly available in
iron, refractories, and coal mines) Jajpur, Dhenkanal and Keonjhar
districts, which are mainly in the
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April - June 2021
Newsletter Issue XXXIII
Infrastructure
central part of the state, which has Gopalpur, and has an average other catchment areas in eastern
an average distance of 600 km from distance of 250 km from Vizag port India, but services and slots for
Vizag port. With the upcoming railway and 280 km from Paradip port, has shipping lines needs to be worked
line between Haridaspur and Paradip reserves such as aluminium, heavy on and materialized as Odisha is an
port, it will only be 82 km for Paradip minerals and ferro alloy, which need export-driven market and from the
port. to be explored for movement. shipping lines’ perspective JNPT port
is still the more favorable choice due
As customers of the area were mostly Vizag port is also an ideal location for to the availability of vessel schedules
using JNPT port due to the availability Hyderabad / Secunderabad, with an and inventory for the sector.
of inventory and most frequent vessel average distance of 650 km. Currently
slots, it was very tough to convince customers of the Hyderabad vicinity At ICT we are striving to get these
customers to try the new route via are using JNPT port for exporting industrial areas on board with our
Vizag port, as major shipping lines and importing their cargo, but with state-of-the-art infrastructure at
started using the port but inventory regular shipping line inventory and Vizag and Paradip ports, and to build
and slots were still a problem for services; this route can be explored a new business route together with
the route. Also, customers were and Vizag can be mapped as a major industries and shipping lines for both
using Vizag port only for road-bound hub for the eastern coastal regions of infrastructure facilities.
movements as it was a faster way to India.
move their cost and time-sensitive
Kandla – North India
cargo. Vizag port is also suitable for handling Service
cargo of other eastern states.
Also, this model can provide Customers are currently looking
store-to-door solutions for the for alternatives to Haldia port, as We started the DICT – Kandla service
customers of the region, which the port is having vessel berthing w.e.f. June 2020 and up to December
will be an add-on feature for issues due to draft constraints. The 2020, DICT handled 770 TEUs imports
customers to pursue for this draft at Halida port is 8 metres, and 660 TEUs exports for the route.
service. which makes berthing of VLCC tough Monthly volumes are as follows:
as the draft required by a VLCC is Currently Prime Maritime, Win win
ICT, in coordination with Maersk approximately 13 metres. The draft at and Radiant are using Kandla port
Line, took it as a challenge and, Vizag port is 18 metres, which makes for DICT-related movement. We are
after many discussions and an it more attractive for VLCC operators also having continuous discussions
operational feasibility analysis, and shipping lines. Now Vizag has with other NVOCCs who are using
started the service between emerged as the major choice of Kandla port for their Gulf and Far East
Vizag and Jajpur, where empty shipping lines for handling EXIM services.
units were brought from Vizag shipments from the eastern coast.
to Jajpur area and loaded units We are also working on developing
were brought back to port. Vizag port is handling cargo of Nepal the Kandla–Ludhiana route, which
Maersk took an interest in this by rake where CONCOR is currently might start w.e.f. April 2021, as a new
business proposition and jointly handling rail movement between route in the ICTs service arena.
we provided an end-to-end Vizag port and Birganj.
solution to Jindal industries. This At ICT we always try to build new
model is a success story now and, Paradip port is the ideal location for routes and hope to add various new
as a business partner, we may handling the cargo of Odisha and business routes during FY 2021–22
introduce this model to other
customers in that area. DICT K ANDL A Volumes Import
Export
We are trying to explore other 200 182 180
regions of the state for further 166 170
expansion of rail services for Vizag 150
port initially. Western zones, which 120
covers Jharsuguda, Lapanga and 99 98
100 90
Rourkela, have rich reserves such 74 80
as aluminium and ferro alloys, and 55 60 56
an average distance of 500 km from 50
Vizag port, 400 km from Paradip port.
0
0
The southern part of Odisha, which Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
covers Berhampur, Rayagada and
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April - June 2021
Newsletter Issue XXXIII
Logistics
Boom In Coastal Ocean
Freight For Project Cargo
I
t is well known that boosting seen a number of packages above 70 complex units at temporary sites
coastal and inland waterway m in length, 10 m in width and height, close to the final project site is not
transportation can alleviate the and 1000 MT in weight, and the always an option. Even if it is, the
pressure on roads and railways packages keep getting bigger. This is manufacturers are often concerned
while reducing logistics costs, a because manufacturing packages in about the quality of the final
boon for competitiveness and state-of-the-art fabrication facilities assembled product.
economic growth. Sea transport is is more cost effective and results in a
also considerably more climate and higher quality than assembling them Over the next three years, we expect
environmentally friendly and safer on site. to see a spurt in the movement of
than road transport. super heavy-lift and super ODCs,
Most of the manufacturers of such which will require ocean transport,
India, however, despite its more than pieces of equipment are based near beginning with IOCL Paradip. The
7,500 km (4,660 miles) of coastline the west coast of India whereas the first shipment for this project was in
and 14,000 km of navigable inland projects are mainly on the east coast. August 2020.
waterways, transports only around There is, hence, a consistent need for
6% of its freight by sea routes. a coastal service from the west coast This will be followed by two
to the east coast of India. prestigious refinery projects. The
The most efficient and safest first of these is HPCL Vizag RUF,
way to move project cargo is by Here are some recent examples which began in October 2020. Most
coastal routes and through inland of expansion projects involving of the supplies will come from Hazira
waterways. Project cargo in India coastal ocean freight: but modules will also move from
has seen a fair need for multimodal Kattupalli. Movements to Vizag RUF
logistics involving ocean or river IOCL Haldia will last for about 24 months, so we
transportation. Moving the process GR Engineering, BPCL Kochi expect two coastal shipments every
equipment used in the oil and gas Project month. At the same time, we expect
industry and the fertiliser industry IOCL Haldia to make at least two coastal voyages
and the equipment for powerplants HPCL Vizag for HRRL Barmer from Dahej.
has always required multimodal IOCL Sindri Barauni
logistics, either because of the Toyo Engineering, HURL During 2020–22, we are also
location or because of the size or Gorakhpur expecting that the container
weight of the packages to be moved. terminals in the country will enhance
and modernise their RTG and RMQ
The recent past has seen a marked The increase in production capacity cranes, as demand for container
increase in the size of weight of means that equipment keeps getting movement is increasing. Under the
equipment being carried. We have bigger, but assembling high-end government of India’s Atmanirbhar
scheme, multinationals like Kone
Cranes are setting up manufacturing
bases in India. Other companies
are also expected to follow suit,
which will result in massive coastal
movement opportunities. We
are seeing a lot of inquiries for
movements from Hazira to Kandla,
from Kattupalli to Vizag, and from
Nhava Sheva to Goa.
The EPC contract for the FCI Talcher
project has been awarded to Wuhuan
Engineering in China, which will also
8
April - June 2021
Newsletter Issue XXXIII
Logistics
involve the procurement of major
components from Indian engineering
companies. This project will see large
packages landing from the west coast
of India into Paradip.
Even though cargo flows appear
to be unidirectional from the west
coast to the east, a lot of windmill
equipment is being supplied from
the east coast to the west. Last year,
Gamesa entered into a contract for a
few voyages of windmill equipment
from Tuticorin to Kandla, and we
are sure more will follow. A regular
return service running from the east
to the west coast would encourage
manufacturing units in the east
coast to look at coastal shipping as a
viable option, thus ensuring that we
have enough return cargo for these
voyages.
There is a latent need for a strong
coastal service, given the restrictions
in road transport for super heavy
lifts and ODCs. With a decent
service, more and more equipment
manufacturers will start planning
their transport around coastal ocean
freight
9
April - June 2021
Newsletter Issue XXXIII
Logistics
Moving A Monstrous Yet
Delicate Cargo Package
I
t is said that its people are a A stator when seen does not look It requires not only the best people
company’s best assets. But what that intimidating in the world of but also the best equipment to move
if the company also owns the heavy lifts. It is a mere 10.5 m in such beasts from their place of build
best equipment? In some form or length by 4.26 m in width by 4.54 to their operational site, where they
other, we are happy that Boxco is metres in height. However, the will sit and work silently, chewing out
serving the logistics, heavy lift and piece packs within its relatively small electricity in large dollops, one turn
compliance requirements of major dimensions a whopping 358 MTs of the rotor after another, for years
projects. of carefully laminated and placed and years, without respite.
electrical steel sheets and windings,
Jawaharpur Vidyut Utpadan Nigam good enough to feed power to a A good portion of the plant is then
Ltd’s power project at Jawaharpur, small town. This weighty package built around the stator when it is
a small town in the most populous needs a girder bridge to ensure its placed.
state of India, Uttar Pradesh, was weight across its axles is spread onto
already being served by Boxco. the road to remain within acceptable All of the above mean that any
Project import clearances and limits. Moreover, it costs more than delays in delivery were not an option.
reconciliation sheets have been INR 600 million and takes about 12 to Any mishandling of the weighty
processed for several years. Quite 15 months to build. dwarf could have resulted in either
unrelated to this service, Boxco also very expensive delays in this very
served the project through GE, by A monstrous yet delicate cargo at the expensive project or a less than
transporting the mega stators for the same time! optimum electricity generator, which
project. would increase costs all round.
PEOPLE AND ASSETS
20 SKILLED & 25 DRIVERS,
SUPERVISORS,
DEDICATED 3 OPERATORS AND
PEOPLE 8 HELPERS
THREE
VOLVO 520 PULLERS,
A GIRDER
BRIDGE 16+16
HYDRAULIC AXLES
2
ESCORT
JEEP
1100+ KMS ACROSS THREE STATES MAJOR CITIES AND COUNTLESS TOWNS
2 ELECTRIFIED
300 ON A SINGLE- COUNTLESS SHARP TURNS
KMS
RAILWAY CROSSINGS LANE ROAD AND NARROW STRETCHES
5.5M 6.2MWIDE
CROSSED TOLL
PLAZAS WITH A USING SOME INNOVATIVE
ON-THE-SPOT SOLUTIONS
MAXIMUM WIDTH OF
CARGO AND AVOIDING CIVIL WORK
MOVEMENTS THROUGH OTHERWISE
DURING NIGHT-TIME HEAVILY CONGESTED AREAS
AT THE TOLL GATE
JACKING UP TO CROSS OVER A
CLEAR AND SHORT WALL
Assignments such as these exercise the best people and equipment in the trade, the pride of Boxco.
10April - June 2021
Newsletter Issue XXXIII
Logistics
The transportation required careful
planning of the route, which is
approximately 1100 km long. In a
country like India, 1100 km through
various states means a riot of variety
and vibrant scenes. However,
different solutions need to be
worked out for particular stretches,
taking account of the strength of
road surfaces, bridges, arches and
other structures along the way.
The stator began its journey on 16½
axles. It covered vast stretches till
near the site, safely ensconced in
a cradle. Then 16 + 16 axles were
required on a girder bridge and it
safely ended its journey on the 16½-
axle configuration. Covering the
distance took a dedicated team of 20
personnel over 80 days
11April - June 2021
Newsletter Issue XXXIII
Logistics
Aluminium Ingot Exports
From PARADIP
T
he aluminium industry in India downstream. The upstream segment Mode Of Export
is strategically well-placed and produces primary or “unwrought”
is one of the largest producers aluminium from smelting of calcined Containerized Export
in the world. India’s rich bauxite alumina, which is produced from CY 2020 – In
mineral base renders a competitive bauxite. Approximately 4 kg of Port Company
TEUs
edge to the industry as compared to bauxite is required to produce 3 kg HINDALCO 9,028
its counterparts globally.
of alumina and 1 kg of aluminium. VEDANTA 24,464
Primary aluminium is the starting Visakhapatnam BALCO 5,133
The four major primary producers in
India at the forefront of aluminium block for aluminium products and NALCO 3,465
production are the privately owned is mainly in the form of ingots and Total 42,090
Hindalco Industries Ltd, Vedanta billets. Note: 1 TEU is approximately 25 MT
Aluminium Ltd., Bharat Aluminium
Co. Ltd. and the public sector Aluminium Ingots –
Break-bulk Export
undertaking National Aluminium Co. Introduction
(April 2020 to December 2020)
Ltd.
Port Qty (MT)
Ingots are the material that is cast
into a shape suitable for further Gangavaram 62,000
Installed Capacity Of
Aluminium (2018–19) processing and are produced PICT (Paradip) 31,471
Annual through the smelting process.
Standard Operating Procedure –
Sector
Company Plant capacity Ingots are remelted and further
(MT) processed into a large number of For Break-bulk Export Shipments
National products for various downstream
Angul In view of reduced ocean freight in
Public
Aluminium 460,000 applications.
Co. Ltd.
(Odisha) break-bulk shipments owing to larger
Usage is in industries engaged in parcel size, recently most overseas
Bharat
Korba
245,000 casting, utensils, automobiles, buyers prefer the cargo to be shipped
(Chattisgarh) I
Aluminium aerospace, lithium batteries, in break-bulk from India.
Co. Ltd.
Korba
325,000 currency coins and others.
(Chattisgarh) – II
Size of ingots: 740 mm x 170 mm x Process Flow For
Aditya
360,000 114 mm. Exports In Break-Bulk
(Odisha)
Weight of Ingot: 22.7 kg +/- 1.5 kg
Hindalco Hirakud (Odisha) 215,000 each on average. Receipt of laden DSO containers
Industries Mahan (Madhya at railway siding (ingots inside
360,000
Ltd. containers are in bundles of 1
Private
Pradesh)
Exports – India
Renukoot (Uttar
MT each with approximately 22
Pradesh)
345,000 ingots per bundle)
Aluminium Ingots Export From
Madras India (in MT)
Mettur
Aluminium 40,000
(Tamilnadu) Cargo FY 2017–18 FY 2018–19
Co. Ltd
Aluminium 1,370,375 1,538,455
Jharsuguda-I
Vedanta 500,000 Ingot
(Odisha)
Aluminium
Ltd.
Jharsuguda-II
1,250,000 Exports were mainly to Malaysia
(Odisha)
(18%), USA (12%), Republic of Korea
(10%), Turkey (9%), Mexico (6%), Italy
The aluminium industry comprises (5%), Taiwan & Spain (4% each) and
two basic segments: upstream and Japan (3%)
12April - June 2021
Newsletter Issue XXXIII
Logistics
De-stuffing the containers at yard Loading the cargo onto trailer for
using forklifts transportation to wharf
Unloading of cargo at wharf and
loading into vessel using ship gear Paradip International Cargo Terminal,
Paradip – an ideal gateway for ingot
export
Clean-cargo terminal at Paradip
port, having two full-length rail
sidings, with one line dedicated to
steel & aluminium movements
Unitisation of bundles using Adequate yard space to handle
industrial-grade straps and cargo larger parcel size
stacking at yard
Minimal pre-berthing delays and
higher load rate with reduced
turnaround time
Single window services with
provision of value-added services
Strategically located PICT helps in
On-board stacking inside vessel reducing the overall expenditure
holds using forklifts on the railway freight.
Color coding the cargo for
segregation as the basis of the The table below shows the proximity
sequence for discharge port/ of PICT from the major origin points:
buyer
Avg. Rail Distance (km)
SN State
PICT VIZAG
1 Odisha 397 553
Lashing and choking with Uttar
2 981 1,272
adequate fumigated dunnage Pradesh
inside vessel hold to avoid metal- Madhya
3 1,093 1,193
to-metal contact Pradesh
PICT with all the afore
mentioned benefits is an
ideal gateway terminal for
companies like HINDALCO,
VEDANTA and NALCO for their
ingots exports
13April - June 2021
Newsletter Issue XXXIII
Agency & Services
Handling A $40 Million Rig In
A $400 Million Aircraft:
The BAGHJAN Oilfield Blowout
T
he dousing of the blowout at and coordinate with OIL to obtain due to the inadequate firefighting
Baghjan is a classic example the necessary documentation to capabilities at the airport for the An-
of the coordinated integrated ensure all clearances were compliant 124.
logistics and service assistance and speedy. Boxco also prepared
we offer to our distant clients. The the equipment and ensured vehicles The Kolkata team showed true
Baghjan Oilfield in Tinsukia district, were ready when needed. Thus, resilience and grit in attending to
Assam, a state in the north east of while the Canadian contractor was the change in the flight destination
India, has 21 active wells, of which loading an Antonov An-124, frantic from Gauhati to Kolkata. They had
4 produce natural gas while the activities were centered around to work with various organisations
remaining produce oil. Baghjan the J M BAXI GROUP, which had to and with different contracts to
Oilfield’s Well No. 5 was established coordinate at various levels with obtain clearances from multiple
in 2006 and produced natural gas. staff at Baghjan, OIL’s regional HQ in agencies for handling the cargo on
It had drilled down to a depth of Kolkata, Pentagon Freight Systems the tarmac for the chartered flight. It
3,870 m and was producing between in Singapore and the contractor in must be mentioned that the dynamic
80,000 to 100,000 standard cubic Calgary, Canada. situations were handled nearly
metres of gas per day before the instantaneously.
leak. Initially, the charterers were to bring
the Volga Dnepr An-124 aircraft to The team took cognisance of the
The 2020 Assam gas and oil leak, also Gauhati, using Kolkata as a technical many imponderables and found
referred to as the Baghjan gas leak, is halt. They were instructed by OIL solutions, to the satisfaction of the
a natural gas blowout that occurred to undertake the clearance of the client. However, when such projects
in Baghjan Oilfield on 27th May 2020. cargoes at Kolkata. The JMB teams are handled, it is very rare that things
The site is operated by Oil India Ltd. advised that since the aircraft go in textbook style and this project
(OIL), a public sector undertaking. was to fly to Gauhati anyway, it was no different. With just a day
The leaking well subsequently caught was better to clear the cargoes at remaining for the aircraft to arrive,
fire, which resulted in two deaths, Gauhati and began to arrange this. it was reported that the foreign
large-scale local evacuations and At Kolkata, the cargo, the aircraft national who was to operate the
environmental damage to the nearby and its consumables would be rig out of the aircraft had not been
Dibru-Saikhowa National Park. declared as imports, since then the given security clearance. The rig,
Kolkata–Gauhati leg would be purely which was the main cargo apart from
After the initial evacuation of nearly for domestic carriage. Customs was about a hundred other items, was
3000 personnel, a Canadian company approached, both at Kolkata and a 40-tonne tandem-steered tri-axle
was appointed by OIL to assist in Gauhati, in advance to help facilitate snubbing/hydraulic workover unit, a
killing the fire with their equipment the transport of the critical cargo. very complicated thing to drive out.
and personnel. This Canadian The contracts, plans and other Boxco rose to the occasion. A trained
company in turn contracted a documents were studied and the Indian operator was provided, the
Singapore-based company to handle appropriate customs paperwork appropriate paperwork completed,
the Indian side of the logistics and prepared. The requirements of the meetings arranged with the Canadian
compliances. Bureau of Civil Aviation Security, operators to confirm the rig controls
CISF and the airport authorities were and with proper approvals, the Indian
M/s. Pentagon Freight Services all simultaneously understood and operator was tasked with doing the
Private Ltd., Singapore, contacted conveyed. Initially, it was reported needful.
Arya Offshore Services Pvt. Ltd., that upon limiting the touchdown
which arranged for Boxco Logistics weight of the loaded aircraft, all The aircraft arrived at 0130 hours. By
to be available to respond to queries, clearances for Gauhati had been 0430 hours, all the cargo and the rig
make multiple arrangements in obtained. However, much later the were safely discharged and stacked
advance, prepare documentation permission was reportedly denied under the supervision and control
14April - June 2021
Newsletter Issue XXXIII
Agency & Services
of Boxco’s team, who worked in Once the customs clearance was As we go to press, the abandonment
tandem with the An-124’s crew and completed within the airport of the well is now complete and
the ground handlers. Boxco’s team complex, the complete cargo arrangements are being made to
completed the task as well as would including the rig was driven out transport the equipment back to
be expected from the most seasoned by Boxco’s operators. Everything Calgary, either by sea or air, and
handlers in the trade. It must be said was then stacked onto vehicles and Boxco Logistics has been requested
that the entire team was focused the driven from Kolkata to the site by to provide customs clearance and
whole night due to the adrenalin- transporters appointed by OIL. allied services at Kolkata.
fueled tension resulting from the
various challenges. The operation The Indian and foreign experts killed This was yet another unique project
at a busy major airport involved the disastrous well 173 days after for J M BAXI GROUP and two of the
backing the critical rig safely out it had suffered a blowout, which group’s companies. Team members in
from the intimidating interior of the ejected natural gas and associated Mumbai and Kolkata had to interact
An-124 and onto the cargo tarmac, compounds uncontrollably from a with freight forwarders in Singapore
which the specialist handlers flown depth of 3.7 km. The well was killed and technical teams in Calgary.
in from Canada monitored remotely, 12 days after the 60-tonne snubbing
and looking after the pieces of loose unit, flown in from Calgary, Canada, This was a truly multi-national project
equipment. reached the site on 4th November of national importance. It was
2020. completed successfully and carefully
by a professional team
15April - June 2021
Newsletter Issue XXXIII
Agency & Services
Ship Recycling During
COVID-19
A
lang is widely known as the Alang is the preferred location for annual shipbreaking capacity of India
largest graveyard in the ship scrapping primarily owing to its will double from 4.5 million tonnes
world for ship demolitions. location. It has one of the highest to 9 million tonnes LDT by 2024.
Ship recycling yards in India, tidal variations in the coastal regions This is also expected to generate
Pakistan, Bangladesh and China, of the Indian sub-continent. Further, employment to over 150,000 people.
handle over 90% of all ocean-going during high tide the ocean currents There are also plans to set up
are very strong, leading to vessels
vessels demolished in the world. A container manufacturing units in this
coming ashore with relative ease.
ship traded in international waters Another advantage of Alang is region, which can utilize the scrap
in its economic life might have never the availability of a large force of steel that comes out of shipbreaking.
called at any Indian port; however, unskilled workers at affordable costs,
many of these ships come to India for who are able to perform the majority Hongkong Convention
demolition upon completion of their of demolition activity manually.
lives. Owing to such multiple advantages, Alang had also attracted lots
Alang handles almost half of all of attention in the past for the
The ship-demolition business was vessels demolished in the world. deploring conditions in which the
controlled by yards in the US and labour force had been working,
Europe till the 1970s. However, Presently the shipbreaking industry with minimal regard to safety. A
in Alang provides direct employment
with rising labour wages in the lot of effort has been put by the
to over 50,000 workers coming from
Western world, this industry shifted different parts of country. There are government and the Ship Recycling
to Asia, where labour was available further labourers engaged in ancillary Association and other bodies to
abundantly and at lower costs. India industries like steel rolling mills, scrap spruce up the facilities at Alang. India
made a strong pitch for this business traders, oxygen gas plants, furniture became a signatory to the Hongkong
in the 1980s and the first vessel, traders, transporter, real-estate, etc. Convention in 2019 and presently
M.V. Kota Tenjong, beached at Alang The industry contributes substantial most of the demolition yards have
on 13th February 1983. Since then revenue to the central and state exhibited proper SOP in place for safe
the business has grown multifold government in the form of taxes. and environmentally friendly ways of
at Alang, and presently there are In its latest budget announced in breaking a ship. No toxic or metallic
153 beaching plots spread over a February 2021, the Indian government wastes are dumped into the sea.
announced a series of measures
coastline of 10 km. The workers are provided necessary
for further development of this
safety gear and taught about safe
industry. It is expected that the
working practices. Further, the yards
16April - June 2021
Newsletter Issue XXXIII
Agency & Services
have set up basic accommodation for boarding of government officials functioning in June with limited
and medical facilities for the workers and other stakeholders at anchorage capacity, which meant there was a
attached to their companies. Owing through tugboats. This requires shortage of hotel rooms in Alang.
to the various positive measures precise coordination for using This was compounded by the fact
taken, many of the yards comply minimum anchorage boarding as that there were no international
with the Hongkong Convention on otherwise every boarding involves flights operating out of India during
Ship Recycling prescribed by the lots of time and expenditure. that time, which meant the signed-
IMO. There have been numerous All paperwork has to be done off crew were occupying the hotel
independent studies by international expeditiously so that the vessel can rooms for a longer duration and
agencies that eventually gave clean beach in the allotted time, otherwise hence the room shortage increased.
chit to the yards, resulting in ships missing a tide might mean the vessel Further, the crews had to be kept in
from Europe and other developed would have to wait for the next tide, safe and secure condition so as not
nations heading to Alang for perhaps a fortnight away. JMB has to get infected with the virus; hence
demolition. been able to consistently perform they were effectively locked inside
successful beaching of many vessels their rooms altogether for days. The
Ship Agency For Ship Recycling over the years and this has regularly government granted extended visas
been appreciated by shipowners. to the signing-off crew till the agents
Vessel agency for ship recycling is could find suitable repatriation
a very complex job and J. M. Baxi & Demolition Activity Post Lockdown options.
Co. has been performing this task
regularly since the emergence of During the COVID-19 pandemic, from Post lockdown, JMB handled 15
this industry in the 1980s. There are the last week of March till early June, vessels at Alang, which included
numerous tasks involved requiring the beaching of vessels at Alang tankers, parcel tankers, bulk carriers
parallel co-ordination between stopped. With no jobs at hand, there and car carriers. As with all vessel
the seller, i.e. the shipowner, the was an exodus of many migrant demolitions during that period, the
buyer, beaching yard or their trading labourers to their native places, most important task was to ensure
counterpart, government authorities which in a big country like India safety of seafarers. All crew were put
viz. customs, immigration, Gujarat was often far off. The government up in hotels, which were evaluated
Maritime Board Port Office, the allowed ship-demolition activity to by the JMB in advance for the safety
manning agency for the signing- start in stages in June 2020, and the protocol the hotels had put in place.
off crew and others. Preparations Gujarat Maritime Board played a Unfortunately, in one instance,
for these activities starts days in very proactive role in supporting the one of the signed-off crew tested
advance and meticulous planning industry to bounce back to normalcy COVID positive. JMB ensured that
has to be done for all tasks to be within days. There were numerous the affected crew was given proper
performed within a window of a day hiccups in the initial days, but the and timely medical attention. The
of two maximum. In order to have industry was back buzzing with rest of the crew also had to be put
seamless operations at minimal costs activity before long. During the year under mandatory quarantine for 14
to the shipowner, JMB had set up 2020, a total of 196 vessels beached days. This meant all arrangements
a dedicated ship dismantling desk in Alang, as against 182 the previous for hotels and transport had to be
in Bhavnagar, which is about 50 km year. reworked within the limited options
from Alang. available at that time.
For JMB, apart from the coordination
This team guides the vessel to the between various agencies, the Through a mix of private chartered
location to drop its anchor, which biggest challenge was to sign off flights and regular commercial
depends on the draught of the ship. the crew and repatriate them home flights, all crew were safely
The JMB team thereafter arranges safely. A few hotels in Alang started repatriated home. JMB arranged for
the repatriation of over 400 crew
members and there was not a single
case where the crew was unable to
board a flight or take a connecting
flight for want of necessary
documents, including a COVID test
report conducted within 72 hours.
The JMB team did all the running
around, gathering all the permissions,
so that each seafarer could reach his
family in a safe and secure manner
17April - June 2021
Newsletter Issue XXXIII
Technology
Achievements Of The INDIAN
PORT COMMUNITY SYSTEM
President of India Minister of Electronics & IT Digital India Awards
New Delhi
T
he trade practices in our PCS1x increase from 7 to a mammoth
industry are based on manual 26 within 9 months of going live, finally
processes, which created reaching 29, which is an achievement
several hindrances in these in itself.
dire times. However, we quickly
realised that the internet and the Over and above the initial plan, PCS1x
ease of online solutions were a boon. is the first-ever integration with
customs to ensure the real-time and
Like a knight in shining armour, the secure exchange of information via
Vigyan Bhawan
Port Community System PCS1x was an API. Apart from customs, PCS1x
already available and protected is also integrated with the Indian Due to its immense contributions, its
the industry from the wrath of the Navy, Indian Railways, the Ministry understanding of the requirements
pandemic. PCS1x is a cloud solution, of Road Transport and Highways, of maritime stakeholders and for
so it is accessible from anywhere the Directorate General of Shipping always being proactive, the spotlight
anytime, which made operating from and others. Other initiatives, such as in the last quarter of 2020 was on
home much easier. an integration with the Directorate the Indian Ports Association (IPA),
General of Foreign Trade, are in its membership and the International
With the quick and efficient decision- progress. Port Community Association, which
making and agile implementation were recognised by the trade and the
of solutions by the Indian Ports Another unique feature launched Indian government.
Association and the service provider during the pandemic was latch-on – a
Portall, the industry was soon using unique concept built in and delivered On 30th December 2020, during
electronic bills of lading. These were with PCS1x. Latch-on facilitates the the award ceremony of the Digital
further strengthened from a long- trade as it encompasses features India Awards 2020, an honour
term perspective with trusted digital and functionalities that are critical was bestowed on the Indian Port
and blockchain solutions for the to business. This feature of PCS1x Community System, due to its
entire process. In such times, the has made the system invaluable to critical importance and impact on
system-to-system integrations via an its stakeholders. Even though such the Indian Port Community, by the
API also helped the trade. features require a seamless flow of Honourable President of India, Shri.
Even before these unprecedented data and documents, they do not Ram Nath Kovind. PCS1x received the
times, it was commendable to see the overload PCS1x. It is the best in its National Digital India Award 2020 in
number of organisations relying on class, being available, tried and tested. the Exemplary Product category in
18April - June 2021
Newsletter Issue XXXIII
Technology
Dr. A. Janardhana Rao, MD of the Digital India Awards to promote
IPA, delivered his words of gratitude innovation in egovernance and the
virtually to the organisers, the digital transformation of government
World Logistics & Supply Chain services.
Congress Awards, Thought Leaders,
CMO Asia, Global MICE Congress The Digital India Awards, instituted
Awards, the World Federation of CSR under the aegis of the National
Professionals and the trade. Portal of India, recognise innovative
digital solutions and thereby inspire
The esteemed officials of the About the Digital India Awards emulation by all government entities.
Indian Ports Association receiving In the sixth edition of the Digital
the award.
India Awards, 24 teams across seven
categories received awards. These
the august presence of the Hon’ble 24 digital initiatives are contributing
Minister of MeitY, the Hon’ble MoS, richly to make the lives of our citizens
MeitY, and the Secretary of MeitY, better, safer and happier.
among other dignitaries.
Impact On The Ports
The IPA also won a hat trick of
National Awards! It bagged awards The successful implementation of
for Excellence in Logistic & Supply the Indian Port Community System
Chain and Excellence in Public PCS1x has had a positive impact on
Sector Unit under categories Best the ports and their processes. PCS1x
E-Governance Implementation, Best- is facilitating the Indian maritime
in-Class IT System Provider and Best The National Informatics Centre (NIC) trade by reducing the time required
IT Project of the Year, all because of within the Ministry of Electronics for completing various processes, by
PCS1x. & Information Technology (MeitY) reducing transactions costs and by
has been conducting the biennial protecting the environment
SOME FEATURES OF THE SYSTEM
Messages Prior to PCS1x Post PCS1x
Vessel profile 2 days (48 hours) Average 1–2 hours
(submission and approval)
Voyage registration and 2 days (48 hours) Average 30 minutes
VCN allocation
Berth request and berth Next day in the Immediate without any
allocation berthing meeting manual intervention
Container- related messages Physical submission All the documents are submitted by users from
their office and these are uploaded into the
system very quickly
Cargo-related messages: delivery 5–6 hours Online within 1 hour of submission
orders
19April - June 2021
Newsletter Issue XXXIII
In Focus
INDIAN Ports Bill, 2020 –
A Game Changer In The
INDIAN Maritime Sector
T
he Indian Ports Bill, 2020 capacity and competitiveness of
Key Features Of The Bill Include
governs both major ports the existing ports/ facilities etc. The
and non-major ports. It government may, after obtaining
will replace the antiquated prior recommendation from the
Indian Ports Act, 1908. The Bill The Bill’s Provisions MPRA, determine (a) whether the
seeks, inter alia, to enable the Act shall be extended to any port in
structured growth and sustainable The Bill contains 95 sections as which the Act is not in force or to any
development of ports to attract against 68 sections of the original part of any navigable river or channel
investments in the port sector for Act by bringing in new provisions which leads to any port and in which
optimum utilisation of the Indian and making the new Act more the Act is not in force; (b) specially
coastline by effective administration comprehensive. extend the provisions of the Act to
and management of ports. It shall any port to which they have not been
further ensure greater investment Maritime Port so extended; (c) withdraw the Act or
in the Indian maritime and ports Regulatory Authority any part thereof in which it is for the
sector through the creation of an time being in force, fix and alter the
improved, comprehensive regulatory The Bill provides for the formation port limits etc.
framework, including the creation of a Maritime Port Regulatory
of the Maritime Port Regulatory Authority (MPRA) consisting of a
Authority (MPRA), state maritime chairperson to be appointed by Adjudicatory Boards
boards, adjudicatory bodies and the central government and two
appellate tribunals for the resolution members to be appointed by the The Bill envisages the setting up of
of disputes and to curb any anti- central government as full-time adjudicatory boards by each state
competitive practices etc. members, which shall include one government. These adjudicatory
member (legal) and two members to boards will have powers to
The Bill also seeks, inter alia, to be appointed by rotation from the adjudicate any dispute relating to
create an enabling environment coastal state governments. or connected with non-major, PPP
for the growth and sustained concessionaires, state maritime
development of the ports sector boards, captive users or port
in India through the formulation of Functions Of The MPRA officials or port users or port service
the national port policy and national providers or port. The appellate
port plan in consultation with coastal The functions of the MPRA shall be tribunal, for the purposes of the Act,
state governments, state maritime to advise the central government is designated the adjudicatory board
boards and other stakeholders. on matters relating to the national constituted under section 54 of the
port policy and plan, formulate proposed Major Port Authorities Act,
Various provisions of the Indian short-term and perspective plans 2020.
Ports Act have been updated to for development of the port sector
ensure the greater safety, security, and co-ordinate the activities of
pollution control, performance the planning agencies for optimal State Maritime Boards
standards and sustainability of ports. utilization of the coastline of India,
The Bill ensures that all up-to-date to make recommendations on the Every state government for a
conventions/protocols to which necessity, feasibility and viability port other than a major port shall
India is a party are also suitably of new and/or existing ports, constitute, for the purposes of the
incorporated. assessing efficiency, economy, Act, a maritime board for the state
20April - June 2021
Newsletter Issue XXXIII
In Focus
to be known as the state maritime rates between the PPP operators must provide that routine matters,
board. The functions of the state in major and non-major ports and including fixation of tariffs and /
maritime board shall be to initiate third-party service providers also or other administrative issues in
plans, execute works and generally come under the purview of the relation to any port (major or minor),
to promote the use, development, regulator. From the point of view should be subject to the appellate
and improve the functioning of non- of operational freedom for the PPP jurisdiction of the High Court under
major ports. operators, there is a need to review whose control the port is situated.
such provisions. The Bill may consider that matters
of policy, including the introduction
Areas Of Concern The MPRA will also have power to of new ports, etc., be subject to the
make such regulations or guidelines appellate jurisdiction of the Supreme
The major areas of concern are in or directions, which shall be binding Court.
respect of powers given to the MPRA on the ports, port officers, port
to recommend defining or altering operators, port service providers The port tariffs will be determined
port limits, fixation of tariffs etc etc. This gives the MPRA power by each port subject to the
which have hitherto been under the to set regulations that are binding supervisory control of the MPRA. It
purview of the state governments upon port operators which may seems this provision is applicable to
in respect of non-major ports. While interfere with the provisions of the all the ports, including major ports.
some central planning is essential concession /licence agreements. It But the port charges related to major
to prevent haphazard growth of needs to be ensured that concession ports are governed by the Major
ports, such centralization should / licence agreements made with PPP Port Authorities Bill, which envisages
not impinge on the autonomy of the operators will continue as they are giving tariff freedom to port
state governments which will have a with no changes in the terms and operators. This contradiction needs
direct bearing on the functioning of conditions. to be removed and PPP operators
private ports in states. should be given complete freedom in
The Bill provides that an appeal levying market-determined tariffs.
The MPRA will also have powers shall lie against any order, other
inter alia to specify the model terms than an interlocutory order, of the Having said that, the Bill is a welcome
and conditions for different types appellate tribunal, to the Supreme step in the right direction and will
of contracts entered into for the Court. It is not advisable that any lead to uniform and sustainable
purpose of executing port activities, orders passed by the MPRA and the development of ports in India,
port operations, port services tribunal ought to directly be subject bringing in greater transparency,
or port works, including those to the appellate jurisdiction of the lower transaction costs and quality
contracted out to third parties. It is Supreme Court of India. The Bill infrastructure
not clear whether the contractual
Features Of The Bill
Maritime Port
Regulatory Authority Adjudicatory Boards Areas Of Concern
The Bill’s Provisions Functions Of The MPRA State Maritime Boards
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