Business Insights from the Maritime and Logistics Ecosystem – Maritime Weekly 27 May 2016

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Maritime Weekly

Insights for Senior Maritime & Logistics Executives
27 May 2016


Greetings from Maritime Weekly, a weekly newsletter published by Maritime World Services, a research, 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 analyses once a week, to support you in making informed decisions in the week ahead.


What is topical this week


India has signed a pact to develop and operate Chabahar port on the southern coast of Iran and will invest in setting up industries in the Chabahar free trade zone.      While overriding focus on costs is the expected development to follow in the restructuring of shipping alliances,with continued industry overcapacity, the benefits of further alliances are expected from synergies around land side costs.


Following the success of Phase-I, Abu Dhabi Ports, the master developer, operator and manager of ports and Khalifa Industrial Zone (Kizad) in the Emirate has launched second phase of Kizad Logistics Park.       To resolve issues arising out of the new requirement adopted by the IMO on weighing of container by shippers, the US- Ocean Carrier Equipment Management Association (OCEMA), filed an agreement with the Federal Maritime Commission to begin discussions with port authorities in South Carolina, Georgia, Houston, and others to create a standard for ports and cargo terminals to provide weighing services to exporters.       The Omani government is working to diversify the economy beyond oil and Chinese investors are developing a logistics park, in the area around Duqm, south of the capital Muscat, into a major business zone, as a part of the efforts.


Antwerp port commenced a new rail shuttle service to the distribution hub: Venlo, in a joint project by Antwerp Port Authority, the Venlo-based rail freight specialist Cabooter Rail cargo and the German inland port of Duisburg.       Thailand, Myanmar and India would be connected with a 1400-km road. Presently, 73 bridges in Myanmar, built more than seven decades ago during World War II, were being renovated with funding from India for the use of the 1,400-km road, that will reach Thailand at Tak, Mae Sot district.


South Korean Banks and ministries were in talks to minimize their intervention in the ongoing restructuring of Hyundai Heavy Industries (HHI), Samsung Heavy Industries and Daewoo Shipbuilding and Marine Engineering (DSME), since the government intervention to save shipbuilders, could bring about trade disputes.       With reduced demand for new ships and the drop of handheld orders, the capacity gap in 2016 and 2017 is expected to increase in some Chinese shipyards and, hence reduction in overcapacity has been advised.


Shenzhen, one of China's fastest growing cities, will invest $200 million in aspecial economic zone in western Indonesia.       India is accelerating its drive to secure private investments into Indian Ports and maritime related projects with initiatives including setting up a new department to facilitate investments.


Shipping and delivery is shifting to on-demand and 3 D printing technology is now poised to reshape distribution and could threaten 41 percent of air cargo, 37 percent of ocean container and 25 percent of trucking freight business, according to a report.       Rolls-Royce and partners plan to build a remote-controlled coastal demonstrator ship Advanced Autonomous Waterborne Applications project - by 2018 making autonomous shipping a reality.      IMO seeks to rein in CO2 emissions by ships and carbon emissions standards on individual new ships that will be introduced from 2019 will reduce emissions per ton of cargo.


According to a World Bank-study, Cruise ships generate multiplier effects and the country hosting the cruise ship can benefit as the homeport country and also bring more cruise arrivals.      Since Turkey and Egypt became off-limits for Russian tourists, there has been an approximately 800 percent hike in bookings for cruise liners inside the country and Russia's United Shipbuilding Corporation (USC) has announced plans to build the country's first cruise liner since the 1950s.


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


Global Maritime Trade

India signs trade and investment deal for Iran’s Chabahar port and free zone
The Economic Times. 23 May. 6 Minute Read
India signed a pact to develop and operate a strategic port on the Persian Gulf nation's southern coast. India will invest significantly in setting up industries -- ranging from aluminium smelter to urea plants -- in the Chabahar free trade zone. India Ports Global Pvt, a joint venture of the Jawaharlal Nehru Port Trust and the Kandla Port Trust, will invest $85 million in developing two container berths with a length of 640 metres and three multi cargo berths . From the third year, India will guarantee 30,000 TEUs of cargo at the Chabahar port which will go up to 2,50,000 TEUs by the 10th year.

Read More

Shipping alliances could take advantage of the landside cost-savings
JOC. 22 May .12 Minute Read
The China COSCO-led alliance and THE Alliance will enter service in 2017. For shippers, this would mean somewhat fewer choices in the east-west trades and a new set of sailing schedules and port pairs that the supply chains will have to align with. However, the container lines overriding focus on costs will be the development to follow in the restructuring. With industry overcapacity an on-going reality, the benefits of further alliances, especially on the land side costs, would be too tempting for carriers to ignore.

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Maritime Infrastructure


Abu Dhabi Ports launches 2 nd phase of Kizad Logistics Park
STAT times. 23 May. 6 Minute Read.
Following the success of Phase-I, Abu Dhabi Ports, the master developer, operator and manager of ports and Khalifa Industrial Zone (Kizad) in the Emirate, launched second phase of Kizad Logistics Park (KLP) – Non Free Zone warehousing. KLP is comprised of high-quality warehouses in Kizad’s logistics cluster and is set to become one of the leading warehousing centres in the region. 64 high-quality modular warehouse units are set to be handed over to tenants by Q3 of this year (2016) bringing the total number of units to 105 covering an area of 118,965 square metres.

Read More

US: Shipping Lines seek agreement with ports on container weighment
The Wall Street Journal.19 May. 9 Minute Read.
Ocean Carrier Equipment Management Association (OCEMA), filed an agreement with the Federal Maritime Commission to begin discussions with port authorities in South Carolina, Georgia, Houston, and others to create a standard for ports and cargo terminals to provide weighing services to exporters. The Port of Charleston in South Carolina has already said they would offer a paid service to shippers to help them with weighing, so containers wouldn't have to be hauled to a scale before reaching the port. The Georgia Ports Authority, which manages the Port of Savannah, has said it would weigh the containers at no cost. The new requirement adopted by the IMO goes into effect July 1 as an amendment to the Safety of Life at Sea Convention, or SOLAS, is meant to prevent accidents that have caused stacks of containers to tip over, damaging and even sinking ships.

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Oman: Chinese investors to build industrial park at Duqm port
Reuters. 23 May. 4 Minute Read
The Omani government is working to develop the area around Duqm, on a stretch of barren coast 550 km (345 miles) south of the capital Muscat, into a major business zone as part of efforts to diversify the economy beyond oil. The 1,172-hectare industrial park is expected to attract $10 billion of investment by 2022, including $370 million which the Chinese side would spend on infrastructure. Chinese companies will be responsible for building the infrastructure, and then will be allowed to lease the land to Chinese investors. Almost all the projects will be financed by Chinese banks.

Read More


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Port Connectivity


Antwerp- New rail container link to Venlo
Hellenic Shipping News. 21 May. 6 Minute Read
The new rail shuttle service is a joint project by Antwerp Port Authority, the Venlo-based rail freight specialist CabooterRailcargo and the German inland port of Duisburg. The train will depart four times per week from quay 1700 in the Deurganck dock in the port of Antwerp, bound for the Cabooter rail terminal in Venlo in the North of the Dutch province of Limburg. The new rail shuttle is of particular significance for the port of Antwerp as it will make a major addition to the port’s intermodal services to this important logistics region. The barge operator Danser/BCTN already introduced a regular weekly barge service between Antwerp and Venlo two years ago. Venlo is one of the leading logistics hotspots in Europe. Multinationals such as Viking, Arrow, Nutricia, Canon and Tommy Hilfiger use Venlo as a distribution hub.

Read More

Thailand, Myanmar and India to be connected with a 1400-km road
The Economic Times. 23 May 5 Minute Read.
The planned highway starts in the eastern region of India from Moreh to Myanmar's Tamu city. Negotiations are currently underway to conclude a tri- nation motor vehicle agreement for the use of the 1,400-km road that will reach Thailand at Tak, Mae Sot district. Myanmar's Dawei deep-sea port and industrial estate project near the Thai border is also expected to help further integrate eastern India with South East Asian countries. The planned port can be linked up with India's Chennai port as well as Thailand's LaemChabang Port on the other side of the ocean . Presently, 73 bridges in Myanmar, built more than seven decades ago during World War II, were being renovated with funding from India to allow vehicles to cross the highway safely.

Read More

Shipbuilding

S Korea: Government aided rescue plans to shipbuilders could result in trade disputes
Hellenic Shipping News. 23 May. 7Minute Read
Banks and ministries were in talks to minimize their intervention in the ongoing restructuring of Hyundai Heavy Industries (HHI), Samsung Heavy Industries and Daewoo Shipbuilding and Marine Engineering (DSME).In case the government steps in to save shipbuilders by implementing various support measures, and then this could bring about trade disputes. HHI and Samsung Heavy, which have submitted self-rescue plans plan to launch what officials say is a “massive job-cutting” program from this week.

Read More

China: Shipbuilding industry urged to reduce overcapacity
China Economic Net. 23 May. 10 Minute Read
The global shipbuilding capacity has rapidly expanded over the last 10 years and the excess capacity in shipping market has accumulated gradually. However, stimulated continuously by the factors including speculation and policies, the market adjustment has been postponed over and over. Affected by the weakening of the global demand for new ships, the new ship prices of the first quarter continued its downward trend since 2015, Clarksea new ship price index has continued to decline from 131 points in January to 130 points in March. Analysts estimate that withreduced demand for new ships and the drop of handheld orders, there will be a larger capacity gap in 2016 in some domestic shipyards, and even be greater in 2017, hence reduction in overcapacity is essential.

Read More



Maritime Nation India September 20-22, 2016 has already received support from the Prime Minister’s Office(PMO) the Minister of Road Transport, Highways & Shipping , India and,the wholehearted support from Jawaharlal Nehru Port Trust (JNPT) , Mumbai and Nava-sheva Ship Agents Association (MANSA) Federation of Freight Forwarders Associations of India (FFFAI),Indian National Ship-owners Association (INSA) and the Indian Private Ports and Terminals Association (IPPTA) and The Association of Multi-modal operators of India (AMTOI) .



The Federation of Freight Forwarders Association in India (FFFAI) is organising the International North South Transport Corridor (INSTC) - International Conference- India 2016 at the International Convention & Exhibition Centre in Navi Mumbai on 21 Sep 2016. This conference is being held in collaboration with Maritime World Services, who are organising Maritime Nation India 2016, International Conference and Exhibition at the same venue.


This week we are happy to welcome The Oil & Gas Year, (TOGY) as our media partner and Mr Abhishek P Rao, Head, e-Delivery, Logistics, Collections & Customer Delight Godrej Nature's Basket as an Honorary Advisor.


We will keep the readers updated on key developments and events that Maritime Weekly supports.



Maritime Capital

China-Shenzhen to invest $200m in western Indonesia.
China Daily. 24 May. 3 Minute Read
Shenzhen,one of China's fastest growing cities, will invest $200 million in aspecial economic zone in western Indonesia. The funds will be invested into Tanjung Api-Api special economic zone in South Sumatra, where the (Shenzhen) authority is interested in constructions of deep sea port, for internationalcontainer shipping and an industrial estate. For the industrial estate, Shenzhen has asked for 500 hectare of land and the $200 million funds are the first phase of a series of investments expected from Shenzhen.

Read More

India- New government department to look after port, maritime investment
JOC. 16 May. 6 Minute Read
India is accelerating its drive to secure private investments into Indian Ports and maritime related projects with initiatives including setting up a new department to facilitate investments. Last month, the Prime Minister hosted the high profile India Maritime Investment Summit in Mumbai in which 140 Public Private Partnership Projects worth USD 13 Billion were signed, with another 240 projects worth USD 66 Bln to come on streak in the next few years.

Read More

People & Technology

3D Printing set to disrupt trucking, shipping , delivery related enterprises
Trucks.Com. 23May. 10 Minute Read
Shipping and delivery is shifting to on-demand and 3 D printing technology is now poised to reshape distribution. United Parcel Service Inc.and software business SAP plan to collaborate to produce and transport 3-D-printed orders to commercial clients in as little as a day. Technology company HP Inc. recently revealed what it called the world’s first large-scale commercial 3-D printing system, tested by companies such as BMW and Nike. 3-D printing could threaten 41 percent of air cargo, 37 percent of ocean container and 25 percent of trucking freight business, according to a report.

Read More

Autonomous shipping could be a reality soon.
Motorship.Com. 23 May. 10 Minute Read
Rolls-Royce and partners plan to build a remote-controlled coastal demonstrator ship Advanced Autonomous Waterborne Applications project - by 2018 –The first commercial ship operators to the project. Finnish ferry operator Finferries and dry bulk company ESL Shipping have joined the programme. While a ship may be able to be fully independent in fair-weather, deep sea going, for everything in between – including mooring, navigating busy lanes and all other operations – a combination will be needed. Autonomous shipping has the potential to reduce occurrences of human error – responsible for many ship losses and around 900 deaths a year, according to DNV GL .

Read More

IMO seeks to rein in CO2 emissions by ships
Maritime Professional. 23 May. 09 Minute Read.
While, international aviation and shipping emissions were excluded from the Paris pact, which introduced limits on greenhouse gas emissions for all nations starting in 2020, calls are growing for these two big sectors to be tamed as well. Aviation and shipping each emit roughly the same volume of CO2 annually as the U.K. or Germany, and unlike the emissions of those two countries, their greenhouse gases continue to rise dramatically. Carbon emissions standards on individual new ships that will be introduced from 2019 will reduce emissions per ton of cargo.

Read More

Leisure & Cruise

World Bank Study-Cruise ships to generate multiplier effects
The Fiji Times Online. 24 May. 7 Minute Read.
In 2040, the economic potential of the home-basing cruise ships market opportunity is estimated at nearly 133,000 tourists, which bring nearly $US65million ($F138m) in tourism receipts, and generate nearly 4500 jobs. The country hosting the cruise ship can earn over two thirds of these benefits, This could bring benefits to the homeport country and also bring more cruise arrivals to PICs that are too far from Australia to reach on the most popular 7-10 day-length cruises.".

Read More

Russia to build first cruise ship in 60 years
RT Question More. 16 May. 6 Minute Read
Russia's United Shipbuilding Corporation (USC) has announced plans to build the country's first cruise liner since the 1950s. Since Turkey and Egypt became off-limits for Russian tourists, there has been an approximately 800 percent hike in bookings for cruise liners inside the country. After the collapse of the Soviet Union, Russia had troubles with local shipbuilding, as many technologies were lost in the 1990s.USC is now trying to catch up with something that hasn’t been done in the last 20 to 25 years.

Read More


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