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Industry News

July, 2016

New Policy For Dry Bulk Cargo For Major Ports In India

To increase efficiency of major ports, a new berthing policy for dry bulk cargo will be in place from August 20, the government said today.

“Ministry of Shipping has formulated a new Berthing Policy for Dry Bulk Cargo for all major ports which will come into effect from August 20, 2016,” Ministry of Shipping said in a statement.

The objective of the new policy is to provide a standardised framework for calculation of norms, specific to the commodity handled and the infrastructure available on the berth besides driving higher productivity and achieving near-design capacity of the available equipment/infrastructure, it said.

It will reduce berthing time and overall turn-around time of ships, drive higher cargo throughput using the available infrastructure in major ports, the statement, said adding it will improve utilisation of port assets and create additional capacity without any significant capital investment.

Further, the policy aims at increasing competitiveness of major ports by creating value for the trade through reduced logistics cost and at reassessing the capacity of the berths based on the expected performance of the berth equipments and vessels derived from performance norms.

“All the major ports will be holding trade meetings between July 1 to July 18, 2016 to sensitise the norms, incentives, penalties and charges to be implemented,” it said.

Dry bulk cargo currently makes up over 26 per cent of the cargo handled at the 12 major ports while growth in coastal shipping is expected to add about 100-150 million tonne per annum (MTPA) of additional dry bulk cargo at ports by 2020-25.

July, 2016

Jet Airways Set To Add More Flights To Gulf

Jet Airways has announced its move to operate new daily services from Hyderabad to Dammam and from Mangaluru to Sharjah from August 7.

A press release said that the addition of these services will bolster Jet Airways’ offering to the Gulf, strengthening the network and enhancing connectivity for passengers. Dammam will be the second city in the Gulf region to be connected with Hyderabad by Jet Airways after Abu Dhabi. With the addition of Sharjah, Jet Airways will operate to three cities in the Gulf region from Mangaluru.

The airline currently operates daily flights to Abu Dhabi and Dubai from Mangaluru.

Gaurang Shetty, Wholetime Director of Jet Airways, said in a statement: “With economic ties between India and the Gulf region flourishing, Jet Airways recognises the need to provide more flight options to its passengers.”

Travel between India and the Gulf is witnessing rapid growth with over 32 lakh flyers travelling to the Gulf countries from India between January to March 2016 and a similar number returning to India during the same period.

July, 2016

Qatar Airways Cargo Announces Major Expansion

Qatar Airways Cargo plans to expand into three key new markets and is launching a new portfolio of air freight solutions, the first of which will be QR Live, for the transportation of animals.

The announcement was made by Qatar Airways chief officer cargo, Ulrich Ogiermann at a press conference on the opening day of Air Cargo China 2016 in Shanghai.

Ogiermann said the world’s third largest cargo carrier by international flights will enter the Transpacific, Australian and South American air freight markets in the next nine months.

This major enhancement of the carrier’s network is made possible by the constant growth of its fleet, which now includes nine Boeing 777F, eight Airbus 3330F and two Boeing 747F aircraft, as well as the opening of its new European hub in Luxembourg.

The cargo carrier projects that its pure cargo fleet will grow to 22 aircraft by 2017 and from 1 July, the carrier will double its flights into and out of Luxembourg providing better connectivity for its customers.

Ogiermann also announced that Qatar Airways Cargo will add Halifax (Canada) and New York (JFK) to its freighter network in July 2016.

July, 2016

Safmarine At 70

CSS Group participated at the 70th anniversary celebrations of Safmarine recently held in Dubai. The milestone achievement was celebrated by Safmarine, inviting their industry partners and well-wishers for a cocktail dinner and entertainment evening on the 01st June, at the Al Wasl ball room of Dusit Thani in Dubai. CSS Group was represented by Seshan Janik, Vice President NVOCC and Angeli Sudheer, Manager Pricing and Customer service.

Safmarine is an international shipping company offering container and break-bulk shipping services worldwide. Formed in 1946 by South African industrialists and American ship owners, Safmarine is now widely known as a north/south trade and African specialist. The line is represented in more than 130 countries throughout the world, with more than 1200 sailors selling their services.

“CSS enjoy a warm and cordial business relationship with Safmarine which was established more than 5 years ago. It has been a wonderful relationship and we have gone at great lengths to jointly develop business across global markets. We are extremely delighted to be a part of this wonderful celebration”, mentioned Seshan Janik.

The celebrations witnessed some interesting games for which prizes were given to the winners. A short film depicting the history and growth of Safmarine was also shown at the occasion. CSS had a wonderful opportunity to network amongst the industry partners and share ideas during the function.

July, 2016

Twinkle Twinkle Little Stars

CSR activities have always been an integral part of CSS for the last two decades of its service in the UAE and India.  By participating in the charity initiatives of the UAE government CSS has always demonstrated its responsibility in giving back to the society.

Being a renowned philanthropist, T S Kaladharan, Chairman of CSS Group had initiated many an events in India as well which covered the educational and healthcare spectrum of his home state of Kerala. During the recent school reopening in the state, a novel venture was organized on behalf of CSS Group, contributed by Kaladharan, in his village of Thrikkunnappuzha. This year CSS donated One thousand school kits with bags, books, pencil boxes and pencils along with an umbrella with it, amongst the less fortunate government school students of the region.

This initiative went helping 5 schools in the village witnessing enthusiastic small faces cheerfully receiving the contribution. CSR initiatives of CSS Group new bags and umbrellas were distributed amongst pre-primary and primary school children at Thrikkunnappuzha, Alleppey Dist. Kerala. Five schools which are running under the Government of Kerala aid were benefitted by this regular CSR programme of school aid distribution.

New bags and umbrellas brought beaming smiles on the  little faces. The programme commenced with local authority members from the Panchayat wards welcoming the gathering.  All the children, their parents and the school authorities were present for the occasion.  Sumptuous feast in the traditional Kerala style was also orgaised for the students, parents and the school staff on the first day of the academic year. G Unnikrishnan, Head of Marketing and Corporate communications, CSS Group and Hareendran, Manager, Devas Farm house represented CSS Group at the function.

May, 2016

DP World looking at US $2bn Russian Investment

Dubai-based port operator DP World is eyeing three sites in Russia as part of a $2 billion joint venture it signed in January, as per their group chairman.

The three sites are in Vladivostok in the east of Russia, the Baltic Sea and the Black Sea. Sultan Bin Ahmed bin Sulayem did not provide more specific details during a press conference in Dubai.

In January, DP World signed a JV agreement with the Russian Direct Investment Fund (RDIF) to develop ports, transportation and logistics infrastructure in Russia.

At the time, Vladivostok was one of the regions to be targeted by the Joint Venture – Bin Sulayem had met Russian president Vladimir Putin there several months earlier to discuss possible investments.

The eastern port of Vladivostok is considered crucial to boosting trade with China, as the Far East superpower increasingly looks to transport products more cheaply by land to Russia and Europe, rather than by sea.

Bin Sulayem told journalists on Sunday that the JV would seek to invest the planned $2 billion among the three areas over the next 20-30 years.

He said no financial commitments had yet been made, but explained that the RDIF Joint Venture “would be the vehicle through which will be invest”.

DP World is in various stages of negotiations for investments in 15 other markets, but Bin Sulayem declined to reveal full details while talks are still on going.

Among the targeted markets are, Senegal, where DP World is hoping to ink an agreement to operate the port to anchor a new free zone being planned by the Senegalese government.

There are also plans to invest circa $1.9 billion in China – it has several investments there already – Georgia, Somalia, Madagascar and Albania.

Bin Sulayem added that the lifting of sanctions in Iran presented new opportunities, particularly as DP World looks to tap into nearby markets such as Kazakhstan to open up inland transport gateways to China.

May, 2016

Emirates SkyCargo launches next-gen cool chain cover

Emirates SkyCargo has launched a next-generation version of its protection product for valuable temperature-sensitive cargo, including pharmaceuticals.

The new product, called White Cover Advanced, weighs just 3kg, and completely encloses the shipment allowing for cooling during transportation and cold storage.

Applying the sheet to a pallet takes two people no more than eight minutes, said the airline said in a statement.

White Cover Advanced uses DuPont’s patented Tyvek material made of high density polyethylene to form a tough protective barrier against varying external temperatures and direct sunlight.

The material is water resistant to prevent moisture damage while breathable, thereby reducing condensation and dryness. It is also 100% recyclable.

The White Cover is primarily used in the Middle East carrier’s cool chain solutions for perishables, such as vegetables and fresh fruits, but also offers additional protection for packaged pharmaceutical shipments in Controlled Room Temperature (CRT) range and in insulated packaging.

“The pharmaceutical industry moves products worth over $1trn annually. Temperature changes during transportation can pose a serious threat to the integrity of these sensitive products,” explained Henrik Ambak, senior vice president of Emirates’ cargo operations worldwide.

“They must be kept within different CRT bands in accordance with the revised European Union’s Good Distribution Practice. The White Cover Advanced, with its silver-coating technology, provides a reliable and affordable means of protecting these products from temperature spikes during air transportation,” he added.

The carrier’s range of advanced protective techniques and solutions in transporting perishable products include: Cool Chain Premium, Cool Chain Advanced and Cool Chain Standard, each of which is designed to meet specific requirements of customers.

May, 2016

CMA CGM, COSCO Container Lines, Evergreen Line and Orient Overseas Container Line to establish OCEAN Alliance

CMA CGM, COSCO Container Lines, Evergreen Line and Orient Overseas Container Line has signed a Memorandum of Understanding to form a new Alliance enabling each of them to offer competitive products and comprehensive service networks covering the Asia-Europe, Asia-Mediterranean, Asia-Red Sea, Asia-Middle East, Trans-Pacific, Asia-North America East Coast, and Trans-Atlantic trades.

This is a milestone agreement among four of the world’s leading container shipping lines. Each line will offer best-in-class services to customers with fast transit times, competitive sailing frequencies, and the most extensive Port coverage in the market.

“This new partnership will allow each of its members to bring significantly improved services to its respective customers,” member carriers said in a statement. “Shippers will have an attractive selection of frequent departures and direct calls to meet their supply chain needs, including access to a vast network with the largest number of sailings and port rotations connecting markets in Asia, Europe and the United States.”

“The Alliance will also bring service reliability and the most efficient integration of the latest vessels in a fleet of over 350 containerships.

Initially the deployment will cover more than 40 services globally mostly connected with Asia, including about 20 services each in the U.S. and Europe related trades.” Subject to regulatory approvals of competent authorities, the new Alliance plans to begin operations in April 2017.  The initial period of the Alliance shall be five years.

“The Ocean Alliance is a very ambitious operational agreement. CMA CGM, and its new partners, will offer more than 40 maritime loops, providing its customers with an enhanced network of services and fast transit times,” remarked Rodolphe Saade, Vice Chairman of CMA CGM Group.

“Today is a great day for COSCO Container Lines. OCEAN Alliance is a better match for our globalization strategy. We will provide customers with more selections and improved service world-wide,” remarked by COSCO Container Lines.

“Joint service cooperation is an essential part of our own strategic planning.  This new alliance enables us to optimize fleet deployment and offer competitive service to meet customers’ changing demand,” remarked by Lawrence Lee, CEO of Evergreen Marine Corporation.

Upon signing the MOU, Andy Tung, CEO of Orient Overseas Container Line remarked: “The extensive network and port coverage of the new alliance will offer our customers a wide range of choices and highly competitive services for their supply chains. The new alliance will also be a platform for our ongoing growth as well as improve our cost and efficiency.”

May, 2016

Cochin Shipyard signs MoU with Samsung Heavy Industries for LNG Ship Project

Cochin Shipyard Limited (CSL) has signed a memorandum of understanding (MoU) with South Korean second-largest shipbuilder, Samsung Heavy Industries (SHI) to team up to bid for the GAIL tender to build LNG ships. Cochin Shipyard Chairman and Managing Director Madhu S Nair and Samsung CEO Park Dae-young has signed the MoU during the Maritime India Summit in Mumbai recently.

If Cochin Shipyard-Samsung wins the tender, the consortium is expected to secure orders for three ships, each costs around Rs. 1,500 crore. Under the MoU, Samsung Heavy Industries would receive around Rs. 2,656 crore ($400 million) for collaborating with Cochin Shipyard.

Three of the ships must be built locally and Cochin Shipyard is the only Indian yard to meet GAIL’s criteria. Cochin would supply the manpower and dock, while Samsung would advise on shipbuilding technology and equipment procurement.

All carriers will be operated by the Shipping Corporation of India (SCI).

GAIL has tied up 5.8 million tonnes per annum of LNG from the US which the newly built ships will ferry. South Korea’s largest shipbuilder, Hyundai Heavy Industries, had initially teamed with Indian engineering and construction firm Larsen and Toubro, which later withdrew from the tender.

March, 2016

Qatar Hits Out at India Over Traffic Rights

Qatar Airways CEO has hit out an Indian government proposal to sell the country’s air traffic rights.

In October last year, the civil aviation ministry released its draft civil aviation policy which contained a proposal to have an open skies policy with countries in South Asian neighbours and countries beyond 5,000 kms.

The policy also proposed to auction additional traffic rights beyond the existing rights to airlines from countries within 5,000 kms. The bidding would be introduced if domestic airlines have not fully utilised their quota, with those rights granted on a three-year basis, with fund raised going towards the regional connectivity fund.

Speaking at Singapore Airshow, HE Akbar Al Baker said he was disappointed at India’s decision to auction the air traffic rights, known as bilaterals, which he said was against foreign carriers operating freely in the country’s air space, according to a report in Economic Times.

Al Baker insisted that the air traffic rights should remain in the control of a country, and not be sold to an entity that India may not have a strategic interest in.

He said foreign airlines that operate freely in Indian airspace help boost trade and tourism, as well as generate jobs for locals. Qatar Airways currently operates from 13 Indian cities.

International Air Transport Association has also expressed concerns that the move may lead to higher fares.

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