ASSOCIATION OF MULTIMODAL TRANSPORT OPERATORS OF INDIA

Weekly News 30.05.2013—06.06.2013 Volume 1, Issue 11 Inside this issue:

Client Advisory—Brazilin

Custom Regulation 1 FFFAI 21t Biennial Conven-

tion 1

JNPT : 24th Anniversary 2

Vasan promotes Indian op-

portunities in Hong Kong 2

India plans safeguard duties

on iron, steel from China 2

Handicrafts exports up 13%

in April 2 Textile exports likely to

grow by 15% in 2013-14 3 India may freeze sugar ex-

ports 3 MSC Valeria to create history

at Mundra 3 Cochin Port reduces roll-on,

roll-off ferry service tariff 4 Vizhinjam to be country's

deepest port 4 Kerala CM releases Vizhinjam

master plan, detailed project 4 FIEO to setup facilitation

centres in Gujarat for export 5 Balmer Lawrie to set up

logistics park near Kolkata 5 Kattupalli Port set to begin

activities on June 6 5 Humor

6

The Normative instruction from Federal Revenue of Brazil No. 1.356/2013 has come in force on May

6th, 2013, and it has made substantial changes in the procedures related to the Customs clearance and

Cargo Release.

It exempts the Importers/Consignees from presenting the Original Bill of Lading to Cus-

toms Authorities, Terminals and Bonded Terminals, for releasing of cargo.

In consequence of this amendment Importers/Consignees will be able to obtain the release of cargo

even if the Original Bill of Lading is in the Shipper´s hand.

In view of this new Brazilian Customs Procedure, CMA CGM Agencies India Pvt. Ltd. informs that

according to Clause 233 of their Bill of Lading, the Carrier will not be responsible for any claim arising

due to delivery of cargo without the Original Bill of Lading. The Clause 233 of their Bill of Lading is

reproduced for benefit of our readers.

Clause 233 - Notwithstanding anything to the contrary in this bill of lading Merchant is advised and

agrees that according to destination country law and practice the Carrier has no control on the car-

go's release once discharged. Moreover Carrier has no interference on Consignee's decision to re-

move the cargo from one bonded terminal to another. Cargo is delivered through terminals to Re-

ceivers. This may be done without surrendering original bills of lading to the ship agent. In such case,

the Carrier will not be responsible for any claim due to delivery of cargo without original bills of lad-

ing. Thus Shipper must ensure they are paid for their cargo prior to the beginning of the voyage.

Brazilian Custom Regulation—Delivery of Cargo without the original Bill of Lading

With less than two

weeks for the event, the

c o u n t d o w n f o r

the FFFAI Biennial Con-

vention scheduled from

14th -16th June, has

begun.

There has been an overwhelming response of registrations for the FFFAI convention. A record num-

ber of 360 Indian and International delegates have registered for the Convention, which will be held at

Hotel Leela Kempinski, Gurgaon. Both Resident as well as Non- Resident registrations have been

closed.

FFFAI 21st Biennial Convention: Final Countdown begins

Jawaharlal Nehru Port Trust celebrated its 24th Anniversary which was at-

tended by the families of the employees and other residents in the JNPT

Township.

During this event, Shri S. K. Kaul, Chief Manager (Admn.) & Secy. congratulat-

ed the employees and officers of the Port in achieving the desired targets in

the Export-Import trade by putting the Port in the global scenario.

JNPT : 24th Anniversary

Page 2

The Union Minister for

Shipping, Mr. G. K. Vasan,

and his team had an inter-

active session with mem-

bers of the Hong Kong

Shipowners Association,

during which the latter

were encouraged to use

Indian ports given the ca-

p a c i t y au gmen t a t ion

achieved in recent times and the business oppor-

tunities available during a visit to Hong Kong last

week. The Indian delegation comprised Mr. R.

Srinivasa Naik, Director, Ministry of Shipping,

Mr. R. Srinivasagopalan Executive Director,

Indian Ports Association, Mr. R. P. S. Kahlon,

Chairman, Kolkata Port Trust, and Mr. S.

Natarajan, Chairman In-Charge, V. O. Chidam

-baranar Port Trust.

The delegation also held discussions with

Prof. Anthony Cheung Bing-leung, Secretary

for Transport, which touched upon how

Hong Kong could assist in port development

and logistics improvement projects in India.

There was mutual understanding on various

port-related issues, stressed an official

release.

The Minister met with members of the

Indian Chamber, Hong Kong, and Mr. M.

Arunachalam, President, Overseas Indian

Organization of Hong Kong.

The discussions with the various stake-

holders would definitely result in Hong

Kong companies participating in port

development projects in India and more

shipping lines using Indian ports, the re-

lease highlighted.

Vasan promotes Indian maritime & logistics opportunities in Hong Kong

India plans to impose safeguard duties on some iron and steel pipes,

tubes and profiles to protect domestic producers from a flood of

imports from countries like China and Italy.

The Directorate General of Safeguards under the Finance Ministry

has initiated an investigation on impact of large scale import of seam-

less pipes, tubes and hollow profiles of iron or non-ally steel from

countries such as China and Italy.

"It has been found that prima facie increased imports of seamless

pipes and tubes have caused and are threatening to cause serious

injury to the domestic producers. And as such it has been decided to

initiate an investigation

in the matter," it said

in a notice.

"The imports have

i n c r e a s e d f r o m

307,581 tons in 2009-

10 to 373,777 tons till

2012-13, recording an

increase of 22 per cent," it said adding even though there was a de-

cline in 2012-13 over the previous fiscal, but quarter wise analysis

showed a sharp rising trend from Q2-Q3 on absolute basis.

India plans safeguard duties on iron, steel items from China

Handicraft exports jumped 13 per cent to $ 256.8 million in April

this year, despite sluggish demand in European markets, according to

the data provided by the Export Promotion Council for Handicrafts

(EPCH).

In the same month last year, these exports stood at $ 227.16 million.

“There has been an increase in the number of orders from tradition-

al markets like the US. Also, the demand has been good from emerg-

ing ones such as China, Latin America and Africa," EPCH Executive

Director Rakesh Kumar said.

Handicrafts exports up 13% in April

Page 3

India may freeze sugar exports

India, in spite of having a large surplus, is expected to withhold exports of white

sugar for the next several months due to uncompetitive prices, according to a

senior industry executive.

"While domestic white sugar prices, ex-mill, are now equivalent to about $550-

560 a tonne, the Brazilian variety is available for $470, free-on-board," said an

industry player on the sidelines of an international conference. He added that

prices of the commodity in the country are expected to remain around the same

level due to the higher prices of sugarcane, while international prices will be under

downward pressure due to a large global surplus.

MSC VALERIA 14,000 TEU vessel to create history at Mundra Port on her maiden call on June 4

MSC Mediterranean Shipping Company S. A., of Geneva, vessel mv

MSC VALERIA, the largest container vessel of 14,000 TEUs will cre-

ate history at Mundra Port. The container vessel will call at Mundra

Port 4th June, 2013. The MSC VALERIA has an overall Length of

365.5 meters (1,199.2 feet) at a draft of 16.03 meters to call at any

Indian Port.

MSC VALERIA is currently operating on the “Dragon Service” plying

between China and West Mediterranean.

MSC Mediterranean Shipping Company S. A., of Geneva, is a private-

ly owned shipping line and presently the second largest Contain-

er Shipping Line in the world.

MSC was operating 458 container vessels with an intake capacity of

2,274,000 TEU's as of end April 2013.

MSC is the leading provider of direct port calls, serving the 6 conti-

nents and calling at 316 ports through 200 direct and combined

weekly liner services.

MSC has three Weekly Services, IPAK, ISES and Nhava Sheva – Sala-

lah calling at Nhava Sheva, Mundra & Colombo thereby offering a

comprehensive coverage from both North West and South East

India.

MSC also operates its own feeder vessels between Kolkata and

Chennai to Colombo. With two mainline departures a week ex In-

dia to Europe and through its global network of services, MSC

covers the globe offering coverage to Europe, North America, Cen-

tral America, East & West Coast of South America, West Africa ,

North Africa, East Africa, South Africa, Red Sea, Gulf, Australia ,

New Zealand, China & Far East ports. MSC also offers reefer cover-

age to all these sectors.

There is an interesting tradition in MSC whereby MSC ships are

named after the daughter’s name of MSC employees.

Even in this case “MSC VALERIA” is named after the daughter of

Capt. Michele Bordiga, one of the MSC Geneva Directors, who

heads the Line management responsible for the India Sub - Conti-

nent region.

The Government said it expects textile exports to grow by 15 per cent in 2013-14, marking

a turnaround for such shipments that declined by 4 per cent to $ 22.2 billion during April-

February last fiscal.

“We hope textile exports will do better this fiscal. It is expected that these exports would

grow by 15 per cent in 2013-14 as the demand from western markets is rising,” Minister of

State for Textiles Panabaaka Lakshmi said after inaugurating an exhibition titled ‘Shilpangan’

here.

Textile exports likely to grow by 15% in 2013-14

The Cochin Port Trust has decided to decrease

the tariff of the ro-ro ferry service connecting

Willingdson Island to International Container

Transshipment Terminal (ICTT) Vallarpadam

from 1st June.

The port will also boost the hours of operation

of the service. A decision in this regard was

taken in answer to the request of the Container

Carrier Owners Association, which is aggrieved

at heavy delay experienced on the city roads,

which of late, had resulted in even missing of

sailing schedules.

Various road traffic restrictions implemented

in the city in recent times had adversely af-

fected the container trucks to the maxi-

mum The Association stated that further

restrictions anticipated during the work of

construction of the Metro Rail would add to

the existing level of inconvenience and delay

for container trucks. LOTS Shipping Compa-

ny who operate the Ro-Ro Ferry Service

facilitating the trucks access to the terminal

without transiting the city roads were called

for a discussion in this matter.

The LOTS officials have consented to operate

service from 3 AM to 10PM. The Ro-Ro

Ferry can accommodate 20 TEUs in one trip

and has a transit capacity of 480 TEUs per

day. The company also agreed to increase the

working hours if the demand increase. In

response to the concern on pricing of the

services, the company has agreed to re-

duce the ferry charge to Rs.600/- and

Rs.950/- for a single transit for a 20 feet

and 40 feet truck respectively. The rates

would come down by another Rs.100/-

during the non peak hours (from 10 PM

to 3 AM).

According to the company, the ferry

charges would be less than the cost of

additional consumption of diesel for the

35KMs transit through the city. The com-

pany has promised to maintain a pre-

advertised schedule to facilitate planned

and reliable movement for the container

trucks. Parking yard have been provided

at Bolghatty and Willingdon Island while

the trucks wait their turn. The increased

use of the Ro-Ro ferry is expected to

ease the city roads substantially and pro-

vide more reliable last mile connectivity

to ICTT.

Cochin Port reduces roll-on, roll-off ferry service tariff

Page 4

The Vizhinjam international seaport will have the

deepest draft in the country and it will be able to

berth mega vessels of 18,000 TEU capacity.

The master plan for the proposed Rs 4,010-

crore Vizhinjam project, which was unveiled,

says the port will have several such unique fea-

tures and is expected to attract many interna-

tional vessels that pass through the western

coast. The first phase of the project will in-

clude a 800-metre-long berth with a breakwa-

ter area of 3,180 metres and an adjoining 500

-metre-long container yard.

The highlights of the master plan include a

500-metre fish landing centre for fishermen, a

modern 300-metre cruise terminal to pro-

mote tourism-related activities and perma-

nent base stations for Indian Navy and

Coast Guard. "Apart from the immediate

monetary benefits like getting around Rs

500 crore for providing a base for the

defence forces, this station will also

spruce up the national marine security

and even get us a faster environmental

clearance from the centre,'' port and ex-

cise Minister K Babu said.

Vizhinjam to be country's deepest port

Chief

M in -

ister

(CM)

M r .

Oommen Chandy has released master plan and

detailed project report (DPR) pertaining to the

Vizhinjam container terminal and international

port. He said, the State Government expects

that the project will acquire environmental clear-

ance within the next 5 months.

The environmental impact assessment report is

now before the State Pollution Control

Board, which has announced the conduct of a

public hearing on June 29.

The CM said, “We have no doubt about se-

curing environmental clearance. A very ex-

haustive study covering all seasons of the

year, as per terms of reference given, has

been done.”

The Vizhinjam International Seaport Limited

(VISL), would wait till the environmental

clearance before floating tenders for a port

operator, Ports Minister Mr. K. Babu said.

The project would attract more depositor

attention once the hurdle of environmental

clearance was tackled. The State was

continuing its efforts to acquire the pro-

ject exemption from the Cabotage rules.

A single entity, consortium led by

Welspun Infratech, alone had qualified in

the bid for port operator when the pro-

ject was put up for tender the previous

time.

This was not acceptable to the Govern-

ment since it was thought it would attract

better bids once investor confidence went

up after environmental clearance and

Cabotage exemption were secured.

Kerala CM releases Vizhinjam master plan, detailed project

In a bid to

push ex-

p o r t s

from Gu-

jarat, the

F e d e r a -

tion of

I n d i a n

E x p o r t s

Organizations (FIEO) said it plans to set up trade

facilitation centres in export centric clusters of

the state.

The recommendation to the State Government

from the apex export body set up by Union

Commerce Ministry comes at a time when Cen-

tre has set challenging targets for international

trade by 2020. The Centre also expects the

states to supplement them through their own

efforts.

"Right now India roughly has close to 2 per

cent of world's share in goods and services

we are looking to double it to 4 per cent by

2020," Director General and CEO, FIEO

Ajay Sahai said.

"As per our estimate, the world trade by

2020 would be of the size of $62 trillion dol-

lar, a share of 4 per cent would translate into

our export import trade of $2,500 billion,

from the present levels of $750 billion," he

said adding that exports then could be in

range of $1,000-1,200 billion.

"If targets of this magnitude are to be met

then the state also has to supplement them

through their own efforts. More and more

entrepreneurs need to join exports," Sahai

said.

"So in a first, we have begun capacity building

exercise in Gujarat where entrepreneurs

and state officials shall be trained during

two day workshops. It shall be done at 13

places across the state," he said.

"Our objective is to set up at least nine

facilitation centres in export centric clus-

ters of Gujarat, which could serve as one

touch points for all export related issues,"

Sahai said.

"We are in talks with the Gujarat Gov-

ernment one or two facilitation centres

are likely to come in this financial year,

while rest are expected to be set up by

next fiscal year end," he said adding that

idea is FIEO and Gujarat Government

jointly set up these centres to boost ex-

ports.

FIEO to jointly set up facilitation centres in Gujarat for export

Page 5

Balmer Lawrie & Co has got the board’s approv-

al to set up a logistics park at Dankuni near the

metropolis involving an investment of Rs 150

crore, an official of the company said. The com-

pany got the approval from the board approv-

al to acquire 55 acres near Dankuni for a

logistics park,” Viren Sinha, Chairman and

Managing Director said. The land would be

directly purchased from the owners and the

targeted outgo on account of this was Rs 40

crore, he said. The land had been identified

and talks with land owners were positive.

The park would have a container freight sta-

tion, rail connectivity and warehousing facili-

ties, he said. Besides this, Balmer Lawrie

would also set up a new plant at Navi

Mumbai at an investment of Rs 100 crore

for manufacturing steel barrels and a multi

-modal logistics park at Vizag in collabora-

tion with Vizag Port Trust at a cost of Rs

220 crore. The company would, however,

close down its tea business as the turno-

ver from the division was insignificant,

Sinha said.

Balmer Lawrie to set up logistics park near Kolkata

Having recorded the first successful trial run of

imported goods on April 18, the Larsen and

Toubro’s Kattupalli Port is all set to commence

import as well as export activities for the indus-

try on June 6.

The Rs.3,800-crore project is jointly floated by

L&T and Tamil Nadu Industrial Development

Corporation (TIDCO). The port received the

first vessel of X-press Feeders (Thailand Chennai

Express–TCX service) on April 18 carrying 76

forty-foot equivalent units of import containers

containing auto spare parts for a Japanese firm.

Noting that the consignment was successfully

handled there, NYK Lines (Nippon Yusen Kai-

sha), one of the leading Japanese shipping compa-

nies, has announced that three vessels will arrive

here on June 6, 13 and 27.

The vessels will depart from Laem Chabang

(Thailand) on Wednesdays and will call at

Singapore, Port Klang, Kattupalli and Chennai

Port and return to Laem Chabang via Singa-

pore on Wednesdays with a turnaround time

of 21 days.

NYK Lines would be conducting trial runs

for a month at Kattupalli to arrive at a final

decision about making its services a regular

affair. The vessel will be bringing in auto spare

parts and other consumer items and, on the

return, carry agro products and granites, the

port officials said.

Owned by L&T Ports, Kattupalli International

Container Terminal is managed by Manila-

based International Container Terminal Ser-

vices. The port is located adjacent to

Ennore Port and has a capacity to handle

1.2 million containers per year through

two berths. The ports shipyard is yet to

be inaugurated.

“The commencement of TCX Service

between Kattupalli and Laem Chabang is a

welcome move. To cash in on the brisk

trade between the two countries, we

urge the Customs to allow more Con-

tainer Freight Stations to operate at Kat-

tupalli to handle export documents. Oth-

erwise, we have to depend on Chennai

Port,” said a Custom House Agent.

Kattupalli Port set to begin export-import activities on June 6

Page 6

Humor

C/o. CKB, 1st Floor,

20, Raja Bahadur Mansion,

Ambalal Doshi Marg., Fort,

Mumbai - 400 023.

Tel. : +9122 6637 0021.

Fax : (91-22) 6637 0022

Email : info@amtoi.org

Editorial Team:

Mr. Xerxes P. Master

Mr. Vivek Kele

Following the enactment of the Multimodal Transportation of Goods Act, 1993, AMTOI Associa-

tion of Multimodal Operators of India) was established in the year 1998.

The main objects of the Association are to

To organize Multimodal Transport Operators at national level

To study the issues faced by MTOs and seek resolution with appropriate authorities

To promote multimodal transport services in foreign trade

To improve the quality of such services and reduce transaction costs

AMTOI is registered as a non-profit making body under the Indian Companies Act and its core

managing committee consists of seven members. The committee is assisted by a Board of Advi-

sors consisting of the representatives of Government and public sector organizations.

We at AMTOI have always endeavored to have a harmonious maritime community to bring con-

sensus amongst all segments of our community, whilst making representations to various authori-

ties. AMTOI has always tried to bring together all the segments of the maritime community under

one common platform to promote Multimodalism in India. Our members are shipping lines, ship-

ping agents, freight forwarders, transporters, CFS operators and custom house agents.

ASSOCIATION OF MULTIMODAL TRANSPORT

OPERATORS OF INDIA

Catalysing Multimodalism

www.amtoi.org