Going Deep to Rise High!

LNG Trade Lingers

Boosting Bunkers

Tapping Market for Transhipment

Krishnapatnam Port, in line with its vision, is building world-class infrastructure and restructuring service offerings for being the shipping hub.

McKinsey & Co., in a recent study hinted at a three-pronged approach for ports to tap in transshipment volumes - pick up additional cargo from ports lacking mainline calls for existing services; work with carriers to introduce additional ports of call; and lure carriers to call at Indian ports.

So, the buzzword is transhipment.

The video is also available at:

Coastal Shipping Revs Up Port-based Industries

Please refer Page 22-23 at http://www.krishnapatnamport.com/data/port-newsletter-May%20-2019.pdf

The Ministry of Shipping has been promoting coastal shipping for cost and time-effective transportation of cargo along the Indian coast. The ongoing cement logistics comprising movement of fly ash raw material from APGENCO and TPCIL plants near Krishnapatnam Port to Penna Cements grinding station at the Port and then transportation from a dedicated berth through a dedicated vessel service Penna Suraksha to its packing terminal in Kochi is a classic example of a modal shift to a successful coastal cargo operation. Kochi already has three other bagging terminals of Ambuja, UltraTech and Zuari.

Krishnapatnam Port has been contributing to coastal movement of cement and other cargoes to both east and west coasts of India. According to the Ministry of Shipping, such modal shift in transport of cement from road and rail to sea is a step towards promoting cost-effective and environment-friendly means of transportation as envisaged under the Sagarmala Programme.

Terminal Infrastructure for Container Traffic

                           

  https://www.facebook.com/KPCL09/videos/429219440956313/

Increasing trade is translating into higher demand for containerisation due to their efficiency, says a recent IBEF study. During FY07–17, container traffic rose to 124.58 MMT, implying a CAGR of 5.9 per cent. During FY17, container traffic stood at 124.58 MMT, the study adds. As the growing trade is leading to growing cargo traffic, Navayuga Container Terminal is gearing up to meet the need by adding to its infrastructure, as Krishnapatnam Port's FB link elaborates.

Connectivity is the Key

The 21st ASEAN-India Senior Officials' Meeting (SOM) held in New Delhi from 11-12 April 2019.                                                                                                                         Photo credit: MEA

The recent ASEAN-India SOM discussed strategic partnership and the future course of action. The key point was to deepen maritime cooperation among these nations, apart from strengthening connectivity on several fronts. Impetus is therefore on ensuring seamless movement of passenger, personal and cargo along roads linking India, Myanmar and Thailand.

That the partnership is making good progress along 30 mechanisms in different sectors of ASEAN-India cooperation is a sure sign of better trade relations with the member countries Indonesia, Singapore, Philippines, Malaysia, Brunei, Thailand, Cambodia, Lao PDR, Myanmar and Vietnam. Heartening to know that the Look East Policy is gearing up into action-oriented Act East Policy paving way for a better economic and socio-cultural scenario in the region.

Container volumes march ahead in March

https://www.linkedin.com/feed/update/urn:li:activity:6516673916226895872

Milestone! Way to go! More to come!

Container volumes at major ports in India recorded a growth of 8.84 per cent in terms of tonnage for the just concluded fiscal 2018-19, as per the figures released by the Indian Ports Association. While the overall cargo volumes handled by major ports grew only 2.9 per cent touching 699.04 million tonnes from 679.37 million tonnes in 2017-18, it was coal, fertilizers and containers that kept up the momentum in the month of March.

In line with the container growth, Navayuga Container Terminal reached a remarkable milestone in March, on March 27th to be precise, handling 500K TEUs. The terminal has come a long way from 58,577 TEU five years ago to the present gallop of half a million. With a growing terminal and yard capacity, equipment and reefer infrastructure, NCT is poised to spring more surprises in the years to come!

India on the path of Energy Surplus

It was quite gladdening to read a recent article in The Economic Times that India has declared that it is surmounting power deficit during the year 2016-17. What's even more remarkable is that the surplus being reached is unprecedented - the 'first time in India's history'. As per the data from the Central Electricity Authority, a surplus of 3.1 per cent is being reached during peak hours and 1.1 per cent during non-peak hours during the current fiscal.

Robust coal output and reform of state power distribution firms are cited as two main reasons for the closure of the demand-supply gap. A heartening trend would be southern India having a surplus of 3.3 per cent with new power plants of nearly 2,000 MW likely to be commissioned in the medium term.

Power plants in the port vicinity

Already, the vicinity of Krishnapatnam Port is witnessing the buzz of power plants. As per the company website (http://www.krishnapatnamport.com/projects_around.html), here is a list of upcoming power plants:

Power plants planned in port vicinity

Sr. No.	Plants	Capacity  (MW)	Expected COD
1	Simhapuri Power	1,920	FY13
2	AP Genco	1,600	FY14
3	Meenakshi Group	1,000	FY15
4	Thermal Power Tech	1,320	FY15
5	NCC Power	1,320	FY16
6	Kineta Power	1,980	FY16
7	Krishnapatnam Power	1,320	FY17

This development offers immense opportunities for ancillary industries such as lubricant plants, refineries, cement and steel plants to grow around the Port. 

As this strengthens the 'Make in India' initiative, it is another feather in the cap for the government!

Auto exports to pick up

It is heartening to read the resolve of the Federation of Indian Export Organisations to rev up India's export target in the current fiscal. From a glum 1.7 per cent in 2013-14, the aim is to take exports to a 'ballpark' figure of 4 per cent in 2014-15. Shipments are all set to increase as demand in key markets holds cheer.

One of the interesting segments is auto exports. The passenger vehicle sector saw a lull last year with hardly 55 per cent of the installed capacity being utilised. But an optimistic passenger car demand in the domestic market this year and growing acceptance of India-manufactured auto models in emerging markets across the globe are positive indicators for the Society of Indian Autobomile Manufacturers (SIAM).

General Motors has recently announced that it would export its left-hand-drive version of Chevrolet Beat hatchback to Chile in the first quarter of 2015. Work will soon begin at its Talegaon plant.

Interestingly, Volkswagen, the leading car maker of Europe, is converting its Chakan plant near Pune from domestic to a major export hub. The plant is at present producing 100,000 units but is likely to double it by 2017-18. It exported 25,000 cars last year, but hopes to reach 60,000 units, that is more than double, by the end of this fiscal.

Ford India has already set up its base to make India a regional export hub for small cars. In April this year alone, the company saw a two-fold increase in its exports, when compared to last year.

The sector is having 'Great Expectations' from the Modi government to accelerate the economy through sensible policies and reforms. Let's wait to feel the winds of change and the whiz of the auto sector!