Business Insights from the Maritime and Logistics Ecosystem – Maritime Weekly 30 June 2017

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Maritime Weekly
Business insights for maritime and logistics executives.

30 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 - Japan and Europe, comprising a quarter of the world economy are finalising a trade agreement; Evergreen would provide sea freight services and comprehensive logistical solutions to Alibaba members; The recent trade embargo has catalysed in establishing India-Qatar direct (IQX) express sea trade lane.

Maritime Infrastructure - In the long run the global port sector could be facing slower growth rates; Abu Dhabi port has taken over the management and development of Fujairah port; India’s Adani ports is focussing on improved growth rate upto 20% in container cargo in FY 2017-2018.

Multimodal Connectivity - Ratification of International Road Transport convention (TIR) by India would support its transnational multimodal connectivity plans; Bangladesh-India coastal shipping services now include six ports of call for each; Privatisation in Indian railways is expected to improve efficiencies.

Shipbuilding - Taiwan’s China Steel Express has ordered four large bulk carriers, building expectations of growth in Asian bulk trade; L&T’s Kattupalli shipyard in Chennai would focus on naval shipbuilding. South Korean shipbuilders Daewoo, Hyundai and Samsung ranked the top 3 in global shipbuilding, by orderbook size.

Maritime Nation India 2017 - This week Maritime Weekly had a conversation with a thought leader: Mr. Debasish Mallick, Deputy Managing Director, Export-Import Bank of India. Mr. Debasish Mallick has been the Deputy MD of EXIM Bank since July 2014

Maritime Capital - JP Morgan closed its second global maritime investment fund with capital commitments of USD 480 Mln from institutional investors; DHL plans investment of 100Mln in GST linked supply chain operations in India; Brazil plans USD 16 Bln investment in Infrastructure development, including port connectivity projects.

People and Technology - IMO is looking for greater stakeholder participation in Maritime Technology development; DP World and Kazhakhstan would develop a port community system; The Indian Govt is planning to develop an integrated IT platform, to connect all stakeholders.

Leisure and Cruise - Ritz Carlton hotel group would launch luxury cruise ships from 2019; In a cross industry collaboration to enhance air-sea-travel segments, cruise lines are collaborating with airlines; Genting Cruises is planning for growth in Asian markets, including India;

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

Global Maritime Trade

Japan and Europe move closer to trade deal-encompassing a quarter of the world economy
New York Times, 23rd June, 7 mins read
Japan and Europe, which represent a quarter of world economy, are close to concluding the trade agreement on commodities like food, cars, machinery etc, that could generate a free trade zone equal to the NAFTA. This overcomes protectionist tendencies, signalling that international trade continues to flourish. Read More

Evergreen Line to provide sea freight services to members of Alibaba.Com
Hellenic Shipping News, 22nd June, 5 mins read
Evergreen lines would provide customised sea freight services and comprehensive logistical solutions to Alibaba members. Timely and fixed logistics costs would allow small volume shippers to fine tune their product cycles, allowing JIT efficiencies. Trends indicate that, shipping lines by partnering with e-commerce portals, could reach out to a large number of small volume shippers enabling filling of vacant sailing slots. Read More

Qatar- India shipping line launched
The Masterbuilder , 23rd June, 5 min read
New trade lane developments can sometimes develop in response to geo-economical circumstances, such as the recently launched India Qatar express(IQX)line. In light of the blockade, IQX has the potential to connect South Asia and South East Asia to Qatar and lead to increased container activity in Mundra and JNPT ports. This move may provide an opportunity to increase trade volume between India and Qatar. Read More

Maritime Infrastructure

Global port sector could be facing a slower growth in the long term.
Journal of Commerce, 23rd June, 5 mins read
China’s domestic market growth, maturing container shipping, and changing global supply chains are restructuring the global shipping market, which would challenge higher growth rates of the global port sector (for longer term ). Expected lower growth environment and the requirement to handle mega-vessels, are few other factors that could challenge the present 4% growth rate forecast Read More

Abu Dhabi port takes over the management of UAE’s Fujairah Port from DP World
The Maritime Executive, 23rd June, 4 mins read
Abu Dhabi ports is set to develop Fujairah port by taking over the operations from DP World. Plans to increase terminal capacity, deepening of harbour, automation, improved multimodality are envisaged to achieve growth and hinterland connectivity .Read More

India’s Adani Ports looking for 20% growth on container cargo in FY 2017-2018
Business Standard, 26th Jun, 6 mins read
Well timed initiatives of the company would augment growth from the third terminal at Mundra, the new terminal at Katupalli. Over the next 5 years, the cargo mix is expected to increase to 41-42 % in favour of containers. APSEZ have outpaced India’s major ports in y-o-y growth in volumes.Read More

Port Connectivity

India ratifies international transit and customs convention (TIR) to access transnational multimodal connectivity
Live Mint, 20th June, 6 mins read
Ratification of the International Road Transport convention ( TIR ) is among the steps taken by India towards getting transnational multimodal transportation projects such as INSTC program, India Myanmar Thailand Highway, development of the Chabahar port etc to take-off. TIR implementation will also reduce trade transaction costs, streamline border procedures and reduce border dwell time Read More

Bangladesh-India coastal shipping services to include six port of calls for each
Journal of Commerce, 25th June, 6 mins read.
The agreement between India and Bangladesh on trade and transit has recently been expanded to cover six ports from each country, in the ambit of coastal shipping services. This is expected to support increase in the volume of trade between the two neighbours and also facilitate cargo movement to India’s north eastern states. Read More

Indian Railways, progressing towards privatisation
News Click, 23rd Jun, 6mins read.
With a unique financial model of privatisation, Indian Railways intends to improve the redevelopment plans of key railway stations. The plans are then expected to improve the overall efficiencies in the passenger and freight corridors. The strategic location of these stations and development rights being available with good economic multiplier potential, presents lucrative investment opportunities to private players. Read More


Taiwan’s China steel express orders four bulk carriers
SeaTrade Maritime News, 21st Jun, 5 mins read.
The Asian Ship building industry appears on a path to recovery, looking at their order books, with Japan, South Korea and China being the frontrunners. The order of 4 large bulk carriers by Taiwan’s China Steel express also indicates projected improvement of raw material trade- viz coal and iron ore.Read More

Daewoo, Hyundai and Samsung showing signs of recovery
The Economic Times, 15th Jun, 4 mins read
According to the World Shipyard Monitor , South Korean shipbuilders Daewoo, Hyundai and Samsung ranked the top 3 in the world followed by Chinese and Japanese shipbuilders. Daewoo Shipbuilding , the leaders has and orderbook was 88 Units. Entry of new tonnage in the freight market in the next years could indicate expectations of growing trade and also create renewed pressure on freight rates. Read More

India’s L&T plans to develop Kattupalli shipyard as a defence shipbuilding hub
The Indian Express, 21st Jun, 5 mins read
L&T shipyard in Kattupalli plans to be a major private player in naval shipbuilding industry catering to the Indian navy and friendly neighbouring navies. The Indian Navy has also come out with plans, enumerating systems and vessels into which, private sector participation will be encouraged to reduce the orderbook of PSU’s, which appear overloaded and delivery time.. Read More

Maritime Nation India news

Discussion on Collaborating to Lift India’s Maritime Infrastructure in both the Country and Abroad 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 unique global platform for exhibitors and participants to explore business opportunities in the Indian Maritime and logistics Sector. We are happy to share that the Tradeshow has already received endorsement letters from India’s Minister of Shipping and Ports, Railways, Commerce, DG Shipping and Federation of Import and Export Organisations (FIEO). Confirmed exhibitors include a Major European port, several Indian ports, terminals, forwarders, shipping lines, container train operators, ship-builders, ship-repairers, cruise operators and technology providers.

Thought Leadership

Maritime Weekly had a conversation with a though leader: Mr. Debasish Mallick, Deputy Managing Director, Export-Import Bank of India. Mr. Debasish Mallick has been the Deputy MD of EXIM Bank since July 2014 and his responsibilities include Corporate Banking, Overseas Investment Finance, and Export Credit among others. This week we are happy to bring you the excerpts of our conversation.

EXIM Bank is primarily a financing agency for encouraging exports & imports trade from India. The Bank has also diversified into term finance for project exports including projects setup by Indian companies overseas. The bank considers the shipping industry a facilitator of international trade and is active in the shipping sector. For the Indian maritime sector to compete with their international counterparts, access to low cost long term funds and buyer’s credit funds would be beneficial. The Indian maritime and logistics sector would also benefit from resurgence of trade, caused due to programs like Sagarmala and conclusion of trade and transit agreements with South Asian neighbours like Bangladesh and Myanmar. EXIM Bank have launched a portal for merchants and manufacturer-exporters looking for information on potential market for their products, destinations, purchaser details etc. Read More

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

Maritime Capital

JP Morgan closes Global Maritime Investment Fund II, with a capital commitment of USD 480 Mln
Splash 24/7, 25th June, 4 mins read....
JP Morgan has successfully closed its second maritime fund, securing capital commitments from institutional investors. They are expected to acquire quality shipping assets at favourable price, through a closed end structure. Such investments could result in relatively higher returns in the present low charter rate environment. Read More

DHL plans USD 100 Mln investment in GST linked supply chain operations in India
The Economic Times, 23rd June, 5 mins read
Taking a pro-active position on ( GST ) Goods and Service tax roll out in India, DHL is advising its customers to take advantage of the new regulations and providing assistance to them during the transition period. The company is also investing in setting up national distribution centres at strategic locations across the country to address the predicted increase in service demands following GST implementation. Read More

Brazil plans infrastructure investments of USD 16 Bln
Port Strategy, 20th June, 4 mins read.
Brazil is investing in Port infrastructure development and improved rail connectivity to enhance multimodal connectivity. Besides improved infrastructure, such investments are also expected to promote the volume of trade vis-a-vis increased economic growth. Read More

People & Technology

IMOs maritime technology project seeks stakeholder participation
Marine Link, 27th June, 4 mins read.
The global stakeholder committee of the IMO project is expected to share ideas and provide long term strategic guidance. Aimed to reduce the carbon footprint of the Shipping industry, the Maritime Technology Cooperation Centres (MTCC) continue to promote technologies and energy optimization initiatives. The objectives would largely benefit the developing and less developed nations. Read More

DP World : and Kazakhstan government sign MoU to develop port system.
Port Technology, 19thJun, 5 mins read
Gearing up to participate in the Belt Road Initiative ( BRI ), Kazakhstan has teamed up with DP World to develop a port community system ( PCS ). This digital platform would integrate its Customs with their transport and logistics network, thereby improving cargo movement. Read More

India’s shipping ministry to create an IT platform to connect all stakeholders
Business Line, 23rd June, 6 mins read
The government of India plans to develop an IT system connecting all stakeholders in the maritime supply chain in India. Development of the portal is expected to cost about USD 60 Mln and would be operated by the Indian Ports Association ( IPA). One suggestion has been to name it as a Cargo Community System ( CCS). Read More

Leisure & Cruise

Ritz-Carlton Hotel Group to launch luxury cruise ship from 2019
The Telegraph, 23rd June, 6 mins read
Luxury accommodation providers like Ritz-Carlton are venturing out to sea by introducing small to medium sized cruise ships. With the capacity to tap into uniquely created destination experiences, which are accessible to smaller cruise ships, a new market sector appears to be developing.Read More

Cruise lines partnering with Airlines to develop the fly-cruise offering further
E Turbo news, 23rd June, 7 mins read.
A cross industry collaboration in Guangzhou combines the air route networks in Asia to strategic cruise fleet deployments. This would allow seamless connections in sea-air-travel, and also contribute to the economic development of various port cities Read More

Genting cruise lines planning to further spread its network in Asia
Bw Hotelier, 19th Jun, 5 mins read
The cruise travel industry appears bullish on Asian cruise market, including India. Operators and their preferred sales agents ( PSA ) are rolling out future plans involving extensive investment and asset development, given the growing interest from several customer segments.Read More

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