Indian Shipping News

India is providing safety certification for dozens of ships managed by a subsidiary of top Russian shipping group Sovcomflot, official data showed, enabling oil exports to India and elsewhere after Western certifiers withdrew their services due to global sanctions against Moscow.Certification by the Indian Register of Shipping (IRClass), one of the world's top classification companies, provides a final link in the paperwork chain - after insurance coverage - needed to keep state-owned Sovcomflot's tanker fleet afloat and delivering Russian crude oil to overseas markets.Data compiled from the IRClass website shows that it has certified more than 80 ships managed by SCF Management Services (Dubai) Ltd…

India’s shipping and ports industry is likely to be negatively impacted by the outbreak of coronavirus (COVID-19) across China and South-East Asia, according to credit rating agency ICRA.China has been a major driver of global shipping trade in tanker, dry bulk and container segments. The tanker rates had witnessed a spike in Q4 CY2019 due to several factors, including supply correction arising from sanctions on a major Chinese company and Iranian vessels, prospects of US-China trade agreement and elevated demand for VLCCs by trading companies for storing VLSFO in anticipation of a sharp demand growth due to implementation of IMO 2020.On the other hand…

Indian shipping Minister Mansukh Mandaviya has said that the government is keen to start the navigation in inland waterways and passenger transportation in the rivers in the North Eastern states of the country.The public sector company Water and Power Consultancy Services Limited (WAPCOS) is preparing a model Detailed Project Report (DPR) for running low-cost ferry services in the inland waterways in these states.The Shipping Ministry, in a release, said the model DPR can be adopted for quick implementation by the Inland Waterways Authority of India in consultation with the different state governments in the region.Mandaviya also said that inland waterways transport can be a game changer for the North Eastern states as land routes here are often long…

The government of India has revised guidelines for chartering of ships by providing the right-of-first-refusal (RoFR) to ships built within the country, a move to promote the Make in India initiative and incentivise shipbuilding activity.Henceforth, whenever a tendering process is undertaken to charter a vessel, a bidder offering a ship built in India will be given the first priority to match the L1 quote. It is expected that this priority given to ships built in India will raise the demand for such vessels, providing them with additional market access and business support.Prior to the revision of the guidelines, the RoFR was reserved for Indian flag vessels as per the relevant provisions of Merchant Shipping Act, 1958.

India's largest container port, Jawaharlal Nehru Port Trust (JNPT), has made its way to the top-30 container ports across the globe.JNPT notched up five spots as per the latest Lloyds Report, to be 28th on the list, compared to its previous ranking," Indian shipping ministry said in a statement.This is a validation of all the efforts and strategic initiatives being implemented at JNPT in order to enhance overall port efficiency, it said.Various new processes activated under the 'ease of doing business' initiative have not only helped in overall growth of the port business, but also allowed the EXIM (Export–Import) trade to save time and cost which in turn have accentuated the growth story…

Indian Shipping Minister Nitin Gadkari Wednesday flagged off the maiden container mainline vessel at VoC Port (Tuticorin Port), opening direct shipping route to eastern countries.Calling the step a "gamechanger in container traffic of South India", Gadkari said that Tuticorin has the potential to become a "major industrial hub".At present containers from Tuticorin to Far East countries viz Malaysia, Singapore, China and Hong Kong are transited by the feeder vessels to Colombo where they are further connected to the mother vessel .With Mainline call being done directly at Tuticorin, there will be saving on account of the  transshipment cost. EXIM trade will benefit and there will be a saving of approximately 50 USD  per container as handling of container at Colombo will not be required.

Indian shipping company Mercator Limited has decided to sell one of its vessels, Vedika Prem, as part of its strategic plan.The MR2 tanker has been sold for a total consideration of INR 28.54 Crore (around USD 4.1 million) to an unnamed buyer."The deal was concluded yesterday (November 29). The proceeds from the sale would be used to meet the companies debt obligations and liabilities," said a stock exchange annoucement the company with diversified business interests in Coal, Oil & Gas, Commodity Transportation and Dredging."The aforesaid transaction does not fall within the definition of related party transactions and not a material related party transaction.

Nitin Gadkari, India's Union Minister of Shipping will be on an official visit to the Republic of Korea (South Korea) from today (9 April 2018). During the 4 day visit, Shri Gadkari will focus on taking forward the bilateral cooperation between India andKorea in shipping, ports, inland waterways, highways, river interlinking and infrastructure sectors. An Undertaking on Mutual Recognition of Certificate of Competency of sea-farers will be signed during the visit. Known for maritime technology prowess, Republic of Korea (RoK) had partnered with the Ministry of Shipping in the Maritime India Summit held in Mumbai during April 2016. This visit will further promote the bilateral cooperation.

After successfully completing its initial public offer (IPO) recently, India's Cochin Shipyard Ltd (CSL) has lined up expansion projects. The IPO's proceeds will be utilised to fund these expansions. The PTI reported that CSL is now setting sail to newer shores as it looks to set up ship-building and repair facilities in Andaman and Nicobar, Gujarat, Kolkata and Mumbai. The report quoted Nitin Gadkari, Indian  Shipping Minister, saying that the government is expanding Cochin Shipyard. CSL will have ship-building and repair facilities in Andaman and Nicobar, Gujarat and Mumbai. World-class ship repair and ship-building should be there. Ships should be built with new technologies. The process is on. An agreement with Andaman and Nicobar has been formalised to this effect, Gadkari said.

The Indian shipping industry is registering a positive growth amid a downward trend globally, Union Minister of State for Shipping, Pon Radhakrishnan said. “While the shipping sector is seeing a downward trend worldwide, India is registering a positive growth, and the credit for this should go to Prime Minister Narendra Modi,” he said. The Sagarmala programme launched by the Prime minister last year aims to increase the capacity of Major and Non-Major Ports to 3000 MTPA from the present 1054 MTPA, he said. Major ports have been consistently increasing their capacity and making profits over the last few years. He was speaking at a function organised by V.O. Chidambaranar Port Trust.

Concerned with declining market of Indian seafarers industry despite having high population in comparison to its rival countries, representatives of leading shipping associations in the country have joined a ‘task force’ or committee formed by Directorate General of Shipping of India to primarily increase the global share of Indian seafarers' market to over 9 percent from 7 percent at present. Among the associations are National Union of Seafarers of India (NUSI), Maritime Union of India (MUI), Maritime Association of Shipowners, Shipowners and Agents (MASSA) and others. India with 12 per cent of the world’s population has just 7 per cent of the seafarers’ market whilst Philippines with just 2 per cent of the world's population has grabbed about 20 per cent global share.

To boost port infrastructure, Indian Shipping Minister Nitin Gadkari laid foundation stone of eight connectivity projects worth Rs 1,117.03 crore  (USD 173 mln ) at Jawaharlal Nehru Port Trust (JNPT), Mumbai. The projects include integrated common rail yard facility at JNPT, construction of coastal berth, and restructuring of yard behind shallow water berth, the Ministry of Shipping said in a release. All these projects will enhance connectivity of the hinterland   to JNPT. Port Connectivity is among the four pillars of Ministry of Shipping’s flagship Sagarmala programme. Speaking on the occasion Shri Gadkari said huge investments are expected under the Sagarmala programme, which will lead to better infrastructure and creation of new jobs besides giving  a big push to Indian exports.

The Expansion, modernization and upgradation of shipping infrastructure in India is an on-going process to keep the ports abreast with new technologies and also to promote trade and cargo. The Government is committed to provide best possible infrastructure facilities to Indian shipping industry. Cochin Shipyard Limited, a Central Public Sector Enterprise under the administrative control of Ministry of Shipping has a shipbuilding capacity of 1,10,000 DWT and ship-repair capacity of 1,25,000 DWT to cater to the needs of the shipping industry. (i) Exempted Customs and Excise Duty leviable on bunker fuels used in Indian flag vessels for transportation of mix of EXIM, domestic and empty containers between two or more ports in India.

The Ministry of Shipping, India will observe 'Swacchta Pakhwada' (Cleanliness Drive)  from 16th March, 2017 to 31st March, 2017. The special occasion of "World Water Day" (22.03.2017) falls within the fortnight of Swacchta Pakhwada. All organizations under the administrative control of Ministry of Shipping have been instructed to undertake 33 activities which mainly include removing/ weeding out of old records and files, auction & disposal of all unserviceable items, modernizing all toilet complexes in the operational area and cleaning all the toilets, painting/ whitewashing all office buildings & residences with proper color code, beautification and cleaning of parks…

"K" Line (India) Shipping Private Ltd (KLISP), affiliated company of Kawasaki Kisen Kaisha Ltd., joined Indian National Shipowner's Association(INSA) at the end of January 2017. KLISP was established in 2014 and actively participates in Indian Coastal Trade as well as International Trade business as an Indian Shipping company. In the same year, KLISP successfully entered into a long-term CVC contract with an Indian Charterer. From December 2016, KLISP acquired ownership of an Indian flag vessel, "GANGA K" (58,000DWT Bulk Carrier) for this contract, and by acquisition of this Indian flag vessel, KLISP was officially entitled to join INSA.

The cargo handled by 12 major Indian ports in November and December (Post demonetisation period)has witnessed a significant growth by registering an increase of 11.2 per cent and 12.7 per cent, respectively, reports PTI. The Minister of State for Shipping Mansukh L. Mandavia told the Parliament that cargo handled by major ports after demonetisation has shown a growth in comparison to the same period last year. The Press Information Bureau says the ports handled 56.7 MT of cargo in December 2016 (12.7 per cent growth) and recorded 54 MT cargo in November (11.2 per cent growth). During April-October 2016 period, these ports handled 370 million tonnes (MT) cargo. The major ports had handled 606 million tonnes of cargo in 2015-16 as against Rs 581 MT cargo in 2014-15.

India has one of the largest merchant shipping fleet and ranked 17th among the developing countries with average age of the fleet being 18.03 years. 95% of the country’s trade by volume (68% in terms of value) is moved by sea. India has a total of 1299 ships comprising of 11.24 MGT as on 31.10.2016. Out of the total tonnage, 900 vessels of about 1.52 million GT are engaged in Coastal trade and remaining 399 vessels are plying in overseas trade. Despite growth in tonnage, the percentage of cargo carried by Indian flag ships has reduced from 40.7% in 1987-88 to 7.45% of total EXIM trade in 2014-15. The Ministry of Shipping has taken many proactive and progressive interventions for the development of the maritime sector in the country.

In order to support the Indian shipping industry, the Government of India has exempted Customs and Excise Duty leviable on bunker fuels used in Indian flag vessels for transportation of mix of EXIM, domestic and empty containers between two or more ports in India. Government has brought in a uniform abatement of service tax for transportation of goods by rail, road and sea vessels. Indian shipping industry has been provided cargo support through Right of First Refusal (RoFR). Government has taken policy decision to allow shipping enterprises based in India to acquire ships abroad and also flag them in the country of their convenience. As a step towards promoting “Ease of Doing Business” methodology for computation of period of stay of seafarers in India has been redefined.

A Joint Venture comprising The Shipping Corporation of India Ltd. (SCI), Nippon Yusen Kabushiki Kaisha (NYK), Mitsui O.S.K. Lines, Ltd. (MOL), Kawasaki Kisen Kaisha, Ltd. (“K” Line), and Petronet LNG Ltd (PLL), have taken delivery of a new build Liquefied Natural Gas (LNG) carrier MT “PRACHI” having a capacity of 173,000 m3, from Hyundai Heavy Industries Co. Ltd. South Korea on 30th November, 2016. Simultaneously, the vessel has been delivered to Petronet LNG Ltd, New Delhi India’s first importer of LNG on a 19 year charter. Since 2004, Petronet has imported 5 million tons of LNG a year from Qatar, and an additional 2.5 million tons per year since 2009, using three LNG carriers.

The Shipping Ministry of India has mooted a proposal to utilize part of the fuel cess collected for building national highways for expansion of National Waterways as well. The Union Minister for Shipping, Road Transport & Highways, Nitin Gadkari said his Ministry has sent a proposal seeking allocation of 5% of the Central Road Fund for development of Inland Waterways. “My Ministry has prepared the proposal, but the final decision will be taken by the Ministry of Finance. I am pursuing the matter” Gadkari added. Central Road Fund is a non-lapsable fund created under the Central Road Fund Act 2000 out of a cess imposed on petrol and high-speed diesel. The funds are meant to be used to develop and maintain national highways, state roads and railway over and under bridges.

Indian Shipping Minister Nitin Gadkari has layed the foundation stone for a multi-modal terminal at Varanasi. The phase-I of the multi-modal terminal will be built by AFCONS Infrastructure at an estimated cost of Rs.170 crore and is slated to completed by August 2018. “The terminal will have road and rail connectivity with proposed links on NH-7 and Jeonathpur railway station respectively,” the Union Shipping Ministry said in a statement. The cargo handling capacity of the Terminal on completion of Phase 1 is estimated to be 1.2 million metric tonnes per annum (MTPA). The cargo that will be handled at the Terminal includes stone chips, cement, food grains, fertilisers, sugar etc.

Before the furious monsoon and tropical cyclones hit South East Asia, Ardent, the amalgamation of two salvage giants, has already positioned itself to tackle the growing number of accidents and casualties that become a regular feature this time of the year. Ardent is also responding to the recent initiatives of the Indian Shipping Minister Mr. Nitin Gadkari, who is focused strongly on setting up new ports, augment capacity of existing ports, develop coastal shipping, passenger ferry services, lighthouse and cruise tourism, island development and other services related to Indian Maritime Sector. The company sees this as an important driver for Ardent.

Indian Shipping Ministry is targeting to get investments worth $60 billion (nearly Rs 3.99 lakh crore) for a five-year term for 240 projects for the success of the ambitious Sagarmala project. The maiden Maritime India Summit 2016 in Mumbai has resulted in investment commitments of nearly Rs 83,000 crore ($13 billion) in the shipping, ports and allied sectors, Union Shipping Minister Nitin Gadkari said. The  Summit, aims to promote port-led development by harnessing the 7,500-km coastline, 111 waterways of 14,500 km. At least 150 projects have been identified — infrastructure development (Rs 4 lakh crore), industrial investment (power, steel, manufacturing, Rs 8 lakh crore), augmentation of coastal shipping and inland waterways to cut logistic cost (Rs 35,000-40,000 crore).