India is looking to start production of containers at Bhavnagar, Gujarat to attain self-reliance in container production amid surge in global demand, Union Minister Mansukh Mandaviya said. The government had selected 10 places in the country for pilot project, which has been successful. It expects private players to invest about INR 1,000 crore in this space. India requires about 3.5 lakh containers every year. The country has been dependent on China as there is no container production in India.
Cargo handling activities at the 12 major ports of India fell for the 6th straight month in Sep’20, impacted by disruptions caused by COVID-19 pandemic. In the first half of FY’21, a total of 298.55 mn t cargoes were handled against 348.23 mn t during Apr-Sep’19, as per the data released by Indian Ports Association (IPA).
Vale’s subsidiary Vale International SA has formed a joint venture with China’s Ningbo Zhoushan Port Company Lt, to build, own and operate the West III Project in Shulanghu Port, Zhoushan city. The project consists in expanding Shulanghu Port facilities, developing a stockyard and loading berths with an additional 20 mn t pa capacity & it will secure a total port capacity of 40 mn t pa, which will help Vale to optimize its overall supply chain costs.
Visakhapatnam Port Trust has recorded 11% y-o-y increase in its cargo handling traffic during the fiscal year FY’20, touching an all-time record of over 72.72 mn t, the port’s Chairman K. Rama Mohana Rao informed recently. In the previous fiscal FY’19, the port handled 65.30 mn t cargoes. Vizag Port is one of the major 13 ports in India having a capacity of 126 mn t at present. The port will soon expand its capacity to 141 mn t, Rao said.
AM/NS India is the leading integrated flat carbon steel producer in India has invited a tender for unloading services of iron ore fines at their Vizag pellet plant, Andhra Pradesh.
Following e-Procurement process would be follow:
First Step: Tender documents to be submitted under Two bids/packets system as below. Vendor may submit their response in either of two options as below.
Technical Bid and Price Bid may be directly uploaded on the portal and or through e-mails.
Second Step: After receiving bids from potential suppliers at the end of tender submission, Techno Commercial Unpriced Bid shall be forwarded to user department as mentioned above for providing technical qualification/clearance in respect of the bid submitted.
All qualified vendors would then be invited to participate in Reverse Auction Event which shall be duly informed by officer-in-charge/authorized officer.
Work Order to the winner shall be provided on the basis of prices discovered and subject to price approval of ESTIL Management.
The last date of submission of above tender is by 29 May’20
For any more clarification please contact AM/NS office or visit -https://sourcing.essar.com/E_tender
JSW Infrastructure announced yesterday that it commissioned a new iron ore terminal at the Paradip Port in Odisha.
The 370-metre long terminal with a capacity of 18 MnT of cargoes pa is set up to handle cape-size vessels for iron ore and pellet exports and can load at a rate of 100,000 MT per day.
It is expected that the higher load rate may help the pre-berthing delays at the port.
The Joint MD and CEO of JSW Infrastructure Arun Maheshwari said, “With the commissioning of this terminal, India can now offer cape size shipments. The capacities of this new terminal would be far better than any other Indian port and also many international ports. This will help boost competitiveness of customers as well as Paradip Port.”
The company has invested INR 750 crore in the construction of the new Paradip iron ore terminal.
With the commissioning of this new terminal, the JSW Infrastructure current capacity has crossed 100 MnT pa.
Indian Railways announces certain freight incentives to give a boost to the economy. Member (Traffic), Railway Board Shri P.S. Mishra, announced these measures, to support various segments of the industry. Details of these measures announced today are as under:
* Busy Season Charge(BSC) has been deferred (levied @15%) from 1st Oct 2019 to 30th June 2020, till further advice (Except for iron ore and POL). Coal & coke and container traffic are already exempt.
*The 5% Supplementary charges applicable on Loading on Mini and Two point rakes is being waived off.This is likely to boost loading of Smaller cargo sizes and help cement, steel, food grains and fertilizers loading.
*Low density commodities like Pet Coke, Met Coke, Chuni and De-oiled cake have also been exempted from mandatory weighment. This is likely to save transit time and increase fluidity, which translate in to cost saving for customers also.
India’s largest private multi-port operator; Adani Ports and Special Economic Zone Limited (APSEZ) has announced to buy 65-70% stake in Krishnapatnam Port Company Ltd. The port is currently owned by the Andhra Pradesh government. It was given to the CVR Group for development and operations on a 30-year contract beginning September 2004. The port contract can be extended up to 50 years (30+20 years)
The APSEZ is reported to pay more than INR 5,500 crores to buy the stake. The port is currently burdened with huge debt which has become unsustainable. The transaction consideration will mainly go towards settling the bank dues
This will give the company; APSEZ access to the country’s largest waterfront area (for a port) of 12.5 km and a transit storage area of 6,800 acres. The port is located 180 km towards north of Chennai and has capacity to load 40-45 MnT of cargo from 10 berths.
Adani Ports & Special Economic Zone Ltd (APSEZ) has recorded 15% spike in cargo volumes in FY19. The company said ports across western and southern regions reported strong growth.
Mundra port, the flagship operations of APSEZ, witnessed 13% rise in volumes growth. On the contrary, Hazira and Dahej grew by 16% and 30% respectively. APSEZ owned southern port of Katupalli registered 18% growth. In south, the Ennore port in Chennai commenced operations in October 2018 and handled 57,000 boxes in FY19.
Cargo volume across the four terminals located in major ports namely Tuna, Goa, Vizag and Ennore grew exponentially. Terminals at these ports together handled 12 million tonnes, a growth of over 127% over FY18. All segments of cargo registered significant growth. While coal grew by 17%, container grew by 13 per cent. Crude grew by 31% and bulk cargo other than coal registered a growth of 9%. During the year, four new services were added various ports.
On the financial side, Port Revenue grew by 22% to Rs 2,383 Cr in Q4 of FY19 from Rs 1,947 crore in Q4 of FY18 on the back of strong cargo volume growth. SEZ port led development income earned in Q4 of FY19 was Rs 361 crore compared to Rs 838 cr earned in Q4 of FY18. This led to reporting of lower consolidated revenue of Rs 3,082 cr in Q4 of FY 19 compared to Rs 3,183 crore in Q4 of FY18.
In Q4 of FY19, Port EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by Rs 121 crore to Rs 1,492 crore, translating into a year on year growth of 9%. Consolidated EBITDA in Q4 of FY19 was flat at Rs 1,932 cr. Growth is impacted on account of lower SEZ port led development EBITDA. (Rs.335 cr in of compared to Rs 471 crore in Q4FY18).
Profit after tax (PAT) or net profit raked in by APSEZ soared 39% to Rs 1300 crore in Q4 of FY19. For the whole of last financial year, the company, PAT rose nine per cent to Rs 4006 crore.
Paradip Port Trust (PPT) aims to handle 110 MnT of cargo by the close of this financial year. The major port off the coast of Odisha has achieved throughput of 100 MnT (as on March 5, 2019).
PPT has been handling cargo in excess of 100 million tonnes (mnt)n for the past two consecutive years.
In the process of handling 100.04 mnt cargo, the port has achieved a growth rate of 5.86 % over the corresponding period of 2017-18 when the Port had handled about 94.5 mnt. In terms of absolute growth in tonnage, the increase of 5.57 mnt of cargo over the last fiscal at PPT is the highest amongst all major ports achieved so far.
The major growth drivers of the cargo at PPT in the current financial year are the handling of POL and coastal thermal coal which are showing a growth rate of 9.86 per cent and 20.49 per cent respectively over the corresponding period of FY 2017-18.
The above achievement of 100 MnT of cargo again by PPT in the current fiscal is despite two of its existing berths are not available for handling of cargo and are under mechanization process.