Business Insights from the Maritime and Logistics Ecosystem – Maritime Weekly 2 June 2017

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2 June 2017


Greetings from Maritime Weekly, a newsletter published by Apex Group for Maritime World Services, a business advisory, executive search, and events management platform for the global maritime ecosystem. Our editorial board comprising reputed maritime, logistics, and media leaders curates key maritime news and analysis once a week to support you in making informed decisions in the week ahead. Over 10,000 senior executives and officials from the global maritime and logistics ecosystem benefit from the insights shared by Maritime Weekly.


What is topical this week


Trade Lanes - Trade and climate change featured prominently at the G7 leader’s summit. As global trade rises, Chinese industrial profit has grown by 14%. The container shipping sector is witnessing growth in the Intra-Africa trade.


Maritime Infrastructure - DP World is looking to acquire stake in the Russian port operator-Fesco. India’s largest port developer, Adani ports, has reported a 27% rise in profits in the last quarter of 2016-17. South Korean ports overcame Hanjin exit, supported by growth in trade.


Multimodal Connectivity - Indian Railways is setting up a USD 5.3 Bln fund for the development of rail projects, including port connectivity and freight terminal upgrade. India is looking to convert a World Bank aided inland waterways project, into an economic corridor. COSCO shipping has taken 40% stake in Khorgos Gateway on the New Silk Route.


Shipbuilding - The US budget has reduced fund allocation for naval shipbuilding. The Indian shipping ministry is setting up seven ship repair facilities. Singapore shipyards secured S$820 Mln orders in 2016, suffering a sharp year-on-year drop.


Maritime Nation India 2017 - This week, we are happy to welcome Mr. Satya Prasad Sahu, Commissioner (IT), Central Board of Excise & Customs, Department of Revenue, Ministry of Finance, as a panellist in the ‘Single Window System for EXIM’ conference and Mr. Debasish Mallick, Deputy Managing Director, Export-Import Bank of India, as an Honorary Advisor for the 2nd edition of the international tradeshow on 14-15-16 September 2017. Maritime weekly recently participated in the ‘Chemical Industry CSCO Round Table’ in Mumbai. Maritime Weekly is pleased to be the Official Media Partner to the 4th Annual Edition of Economic Times Supply Chain Management Summit 2017.


Maritime Capital - Dubai is considering setting up a USD 1 billion investment fund, focussed on shipping to develop the city’s maritime sector. China is planning to include Italian ports on the investment list of its giant Silk Road Investment program. India’s JM Baxi Group has secured around USD 160 million for its growth plans.


People and Technology - Qingdao port has commissioned Asia’s 1st fully automated terminal. Oman’s Sohar port has launched automated truck gate system, targeting full automation. Kalmar has outlined its Port 2060: vision for sustainable future of cargo handling.


Leisure and Cruise - China’s COSCO is working with Piraeus Port Authority (OLP) to transform Piraeus port into a cruise ship homeport and hub in the eastern Mediterranean. Cruise tourists arrivals to Qatar have increased 1000% Y-o-Y in 2016-17. Ports America will operate Manhattan and Brooklyn cruise terminals until 2029.


Have a great week ahead.
The Maritime Weekly Editorial Board.



Global Maritime Trade

G7 leaders discuss trade and climate change
REUTERS, 27 May, 7 minute read
Leaders of the G7 nations have discussed several global issues, including trade, climate change and western sanctions on Russia during the G7 Summit held in Italy. While the leaders broadly agreed on various trade issues, they appeared divided on the issue of climate change. The Group of Seven developed nations (G7) pledged to fight all forms of protectionism and committed to a rules-based international trade system.Read More


As global trade rises, China’s industrial profits grow significantly
Bloomberg, May 27, 3 minute read
On the back of robust trade growth and investment, the Chinese industrial profit rose 14% this April as compared to last year. The growth in trade and investment is supporting producers with better pricing power. In the first four months of this year, the Chinese industrial profit grew by 24.4 percent as 38 out of 41 industries achieved better profits than last year. Read More


Container shipping sector sees growth in Intra-Africa trade
Hellenic Shipping News, May 23, 5 minutes read
In the container trade market, there has been a persistent progress over time in Africa. One stop one border post is helping the Intra-Africa trade growth, by reducing the trade barriers. The recovery of the oil prices and increased foreign investments are the reasons behind the trade growth. Africa’s growing consumer market will bring opportunity for locals as well as foreigners to make Africa a more diversified manufacturing based trade economy. Read More


Maritime Infrastructure

DP World looking to acquire stake in Russian port operator
Financial Times, 26 May, 6 minutes read
A consortium headed by DP world is in talks with Summa Group to buy a stake in Russia’s largest ports and rail transport operator, Fesco. The stake would give special governing rights to the consortium, that will allow the control of the business. Fesco operates a fleet of vessels, runs shipping on the Trans-Siberian railway and manages the port in Vladivostok, Russia. Read More


India’s largest port developer, Adani ports reports a 27 % rise in profits in Q4
Livemint, May 24, 4 minutes read
India’s Adani Ports has registered a 27 percent rise in consolidated net profit to USD 184 Mln in the last quarter of 2016-17. The growth profit was from the container segment and high growth volumes were from the ports of Hazira, Dhamra and Kattupalli. Improved EBIDTA margins resulted due to higher focus on operational efficiencies, technology and cost control. Read More


South Korean ports overcome Hanjin exit, supported by growth in trade
JOC.com, 26 May, 5 minutes read
South Korean economy has accelerated its trade performance since last year. Foreign trade-related container throughput at ports, expanded 10.5% year on year in April. The value of exports rose to 24 % year on year while imports grew 16.6%. The strong growth in exports was due to rise in shipment of semiconductor chips and flat panel displays. Exports to China and the US also grew from last year. Read More




Port Connectivity

Indian Railways setting up USD 5.3 Bln fund for development of rail
Moneycontrol, May 25, 3 minute read
Indian Railways is setting up a fund, Railways of India Development Fund (RIDF), which would be separate from the rail budget and is intended for several projects including port connectivity, freight terminal up gradation, rail expansion and station redevelopment projects. A separate semi high speed train project would also be put forth for the cabinet approval which is expected to reduce the travel time between Delhi-Howrah and Delhi Mumbai corridors. Indian railways is looking to redevelop more than 100 stations and speed enhancement of passenger and freight trains by 2022. Read More


India looking to convert Inland waterways project into an economic corridor
Business Line, 24 May, 5 minutes read.
The Indian government aims at converting Varanasi into the multi modal logistics and trading hub to attract huge investments in trading logistics.The Inland waterways project includes the creation of logistics hub, encouraging barge manufacturing, pilot projects and to amend the old Inland Vessel Act. Pilot projects on the corridor, include construction of six terminals across the stretch which will include three multimodal and two intermodal terminals. It would also include two ship repairing facilities at West Bengal. Read More


COSCO shipping takes 40% stake in Khorgos Gateway on the New Silk
Forbes, 26 May, 4 minutes read
The Khorgos Gateway is in the Khorgoes eastern gate SEZ, a 600-hectare development area, which is at the border of Kazakhstan with China. It is situated at the emerging network of trans-Eurasian rail lines, that connect 27 Chinese cities with 11 European cities. The Khorgos gateway is expected to help in the movement of goods from China to all over Euraisa. Read More


Shipbuilding

US budget reduces funds for naval shipbuilding
The Maritime Executive, 23 May, 5 minutes read
In the proposed US budget for 2018, shipbuilding procurement allocation at USD 20 billion, is 1 billion less than the allocation last year. The Navy needs to buy three LCS vessels per year. This could be an opportunity for the friendly countries to invest and/or utilise the available capacity of US shipbuilding. Read More


India’s shipping ministry to set up 7 ship repair facilities
Millennium post, 24 May, 3 minutes read
The Indian ministry of shipping has identified some areas close to the ports to upgrade them into ship building facilities. The aim is to increase the ship repairing facilities in the country. Few ports, where ship repairing facilities are being set up, are Pandu in Assam, Mumbai, Goa, Kandla, Patna and Farakka. The initiative is in collaboration between the Ministry and Cochin Shipyard Limited, the largest state-owned ship-builder. The projects would get financial support from Sagarmala project for port industrialisation. Read More


Singapore shipyards secure S$820 Mln orders in 2016, suffer sharp Y-o-Y drop
Hellenic Shipping News, 26 May, 4 minutes read
The major reasons for the drop in orders for new-buildings were reduced exploration, production and drilling activities, given the weak utilization of existing rig-fleets, coupled with supply overhangs. All the sectors including, ship repair and conversion, shipbuilding, offshore rig building showed a decline in turnover, compared to the previous year. Read More




Maritime Nation India news


Discussion on Collaborating on building and maintaining India’s Maritime Assets – Ship building, Ship repair and Ship Recycling at Maritime Nation India


The Maritime Nation India initiative is presented by Maritime Weekly, a member of Apex Group. It is a think tank in the making and provides business advisory, executive search services, and conducts tradeshows for the maritime and logistics ecosystem.


The 2nd edition of Maritime Nation India is being held from 14th to 16th September 2017. The 3-day international tradeshow will provide a global platform for exhibitors and participants to explore business opportunities in the Indian Maritime Sector and we are happy to share that the Tradeshow has been receiving wide-ranging support from the industry and government. It has already received endorsement letters from India’s Minister of Shipping and Ports, Railways, DG Shipping and Federation of Import and Export Organisations (FIEO). A Major European Port and several Industry and Government Leaders have already confirmed participation…


We are happy to share that Maritime Nation India 14-16 September 2017 is receiving exceptional response from the maritime and logistics sector and several industry stalwarts have confirmed their continued participation.


This week, we are happy to welcome Mr. Satya Prasad Sahu, Commissioner (IT), Central Board of Excise & Customs, Department of Revenue, Ministry of Finance, as a panellist in the ‘Single Window System for EXIM’ conference, scheduled on 15 September 2017, at Maritime Nation India 2017. Mr. Sahu holds Masters in Computer Sciences and Business Administration and is responsible for the implementation of Single Window System for exports and imports in India. As a policy support to the Central Board of Excise & Customs, Mr. Sahu works on all major strategic initiatives of Customs in India.



We also welcome Mr. Debasish Mallick, Deputy Managing Director, Export-Import Bank of India, as an Honorary Advisor to Maritime Nation India 2017. He is responsible for Corporate Banking, Overseas Investment Finance, and Export Credit, etc in EXIM bank. A post graduate in Economics and a Certified Associate of Indian Institute of Bankers, Mr. Mallick has nearly three decades of experience in the Banking industry, in the areas of Corporate Banking, International Banking, Resource Mobilization, Treasury and Retail Banking.


Maritime weekly recently participated in ‘Chemical Industry CSCO Round Table’ in Mumbai. The roundtable was a deliberation on the challenges and issues pertaining to chemicals & petrochemicals supply chain in India and on the wake of GST, with the potential solutions in delivering to last-mile customers. Read the full report


Maritime Weekly is pleased to be the Official Media Partner to the 4th Annual Edition of Economic Times Supply Chain Management Summit 2017. The Summit , scheduled on 16 June at The Lalit, Mumbai, will offer supply chain professionals a distinctive experience featuring pragmatic content and networking opportunities and highlight the next generation supply chain in India, centred on the theme “Gateway to the Future: Building Next Generation Supply Chain”. For more information, please visit: http://www.et-supplychain.com/


Stay tuned to our newsletter to remain updated on key developments and events that Maritime Weekly supports.



Maritime Capital

Dubai to create a USD 1 Bln shipping investment fund
Reuters, 24 May, 5 minutes read
To support its maritime sector, during the current global slowdown, Dubai is considering setting up a USD 1 billion investment fund focussed on shipping to develop the city’s maritime sector. Dubai Maritime City Authority, responsible for developing the city’s maritime industry, plans establishing a fund to provide investment support to Dubai-based firms. The fund could be used to help companies buy ships or stage transactions such as initial public offerings and mergers. Read More


China is looking to invest in Italian ports
Italy Europe 24, 17 May, 6 minutes read
China is aiming to include Italian ports on the investment list of its giant Silk Road Investment program. The investment plan would develop the ports of Trieste and Genoa to link with rail and highway systems, which would connect them to Central Europe. China considers Italy along with Spain as the prime tourist destination for Chinese tourism in the coming years. Italy is China's 15th trading partner at a global level and its 4th largest at a European level. Read More


India’s JM Baxi Group, secured USD 160 Mln investment
Economics Times, 23 May, 5 minutes read
India’s JM Baxi Group, an integrated shipping company, has secured USD 160 million for its growth plans from Piramal Structured Finance Group. The group has several business verticals viz; logistics services, cold chain storage, handling cargo terminal at ports and managing inland container depots (ICDs). It is believed that the company is raising this capital to expand its cold chain storages across India and to infuse capital for its asset-heavy businesses, such as port terminals and container handling facilities. Read More



People & Technology

Qingdao port commissions Asia’s 1st fully automated terminal
The Maritime Executive, 25 May, 4 minutes read
Qingdao port has commissioned Asia’s first fully automated terminal - New Qianwan Container Terminal in China, a change which is likely to revolutionize the global shipping business. The terminal is controlled by artificial intelligence and features 660 m of quay equipped with seven remotely-controlled ship-to-shore (STS) cranes, 38 automated stacking cranes (ASCs) and 38 battery-powered automated guided vehicles (AGVs). Labor costs are expected to be reduced by 70 percent, with this automated terminal, while efficiency increased by 30 percent. Read More


Oman’s Sohar port launches automated truck gate system, targeting full automation
Port Technology, 16 May, 4 minutes read
Oman’s Sohar Port has launched a new automated gate system for trucks at its container terminal C, as the port targets full automation. The new system would use a combination of technologies to let truck drivers remain in their vehicles, when passing through the container terminal gates, undergoing security checks, completing inspections and initiating container movements. Once fully automated, the port would provide better and secure container shipments to attract international logistics companies. Read More


Kalmar outlines its Port 2060: vision for sustainable future of cargo handling
Transport & Logistics News, 17 May, 5 minutes read
Kalmar has outlined the future cargo handling perspective in the year 2060 in its new video. In its renewed ‘Vision for Port 2060’, Kalmar outlines that data has changed the way the world trade operates and big data, artificial intelligence, digital technologies would drive the future logistics and cargo handling industry. In the coming years, all ports are expected to be automated and run on renewable energy, with zero carbon emissions. Read More


Leisure & Cruise

COSCO looking to coordinate with Greek Ports to boost cruise shipping
Tornos News, 26 May, 5 minutes read
China’s COSCO is discussing with Piraeus Port Authority (OLP) to transform Piraeus port into a pre-eminent cruise ship homeport and hub in the eastern Mediterranean. COSCO is looking for a long-term target of three million cruise ship passengers to pass through the port of Piraeus on a yearly basis, up from the current one million. Greek Ports have an advantage and an opportunity to acquire a major share of cruise passengers in the eastern Mediterranean. Read More


Cruise tourists arrivals to Qatar increase 1000% Y-o-Y in 2016-17
The Peninsula, 22 May, 5 minutes read
Around 47,000 cruise passengers have arrived in Qatar during 2016-17, an increase of over 1000 percent compared to the previous season. Most of the passengers arrived Qatar in this period were form Britain, followed by Europe, the US and Brazil. The country also berthed 22 cruise ships and one mega-yacht during the period, an increase of 120 percent from the number of cruise ships received last season. It is expected that the country’s cruise sector would increase a three-fold in the number of ship calls over the next three years. The cruise industry of Qatar could generate USD 96 million by 2026. Read More


Ports America to operate Manhattan and Brooklyn cruise terminals until 2029
The Maritime Executive, 26 May, 4 minutes read
New York City Economic Development Corporation (NYCEDC), owner of Manhattan and Brooklyn Cruise terminals, has chosen Ports America to operate the two terminals through 2029. Ports America will invest USD 23.5 billion for new capacity to receive larger vessels and in improvements to Pier 90 at the Manhattan Cruise Terminal, and USD 15 million to increase capacity for larger vessels at Brooklyn Cruise Terminal. The investments could be a game-changer for the economic development of the New York City and would make the city a top-tier player in the global cruise industry. Read More



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