Concern over PSA Indian partner in major port project
The biggest single foreign direct investment (FDI) in an Indian port project, by Singapore's PSA International, has come under threat after members on the board of the Union government-controlled Jawaharlal Nehru (JN) port raised concerns about PSA's local partner ABG Ports, reported The Mint.
The two firms are associated in a plan that will see PSA investing “over US$442 million to build a fourth terminal and expand capacity at the congested JN port, the country's busiest container facility. The board members are concerned about the below par performance of the Indian company at a container terminal it has been operating since 2007 at Kandla port in Gujarat.
A JN port spokesman said the board of trustees has set up a six member panel headed by the port's deputy chairman N Kumar to find out the reasons for ABG's performance. PSA has a 49 percent stake in Kandla Container Terminal Pvt. Ltd with ABG holding the rest.
The shipping ministry is not pleased with the developments.
"The ministry has taken a very dim view of the board of trustees decision to set up a panel to examine the performance of ABG at Kandla," said Rakesh Srivastava, a joint secretary looking after ports in the shipping ministry.
"If they wanted to disqualify the PSA-ABG team, they should have done so at the qualification stage itself. Now, after qualifying them and after they have become the highest bidder, you can't do this. It is simply ducking the issue and delaying it for some extraneous reasons," he said.
The financial bid submitted by the PSA-ABG team is valid till 30 September.
Srivastava said shipping secretary K. Mohandas has asked the port chairman to send a detailed report on the developments, which is awaited, ahead of taking a decision.
A spokesman for PSA declined to comment.
A spokesman for ABG Ports said that there was a problem of draft (depth) at Kandla. "The port management is totally responsible for that; they had promised to give us a depth of 12.5m at the channel, which has not been done so far. As a result, we are not able to bring mainline ships," the spokesman said.
A Kandla port spokesman was not immediately available for comment.
"JN port is choking," said Samir Kanabar, director, ports and shipping at Ernst and Young. "The government cannot afford to delay building the fourth terminal any further; it is already delayed by several years," he said, adding that the board of trustees should go by the stature of PSA, the majority JV partner in the new project.
According to qualification documents filed by the PSA-ABG team, PSA is the lead member of the consortium and will have management control of the new terminal with a 74 percent stake.
The delay in clearing the project comes at a time when the port, which loads more than 50 percent of India's container cargo, is battling congestion due to lack of capacity, forcing shipping lines to levy a congestion surcharge ranging from $60 to $155, depending on the size of the container, from exporters and importers since July. The port has said it's losing “half a million of revenue for each day of delay in implementing the new project,’’ according to a June affidavit filed by it in the Bombay high court in a case that involved one of the shortlisted bidders.
On 10 August, the board of trustees discussed the highest financial bid submitted by the PSA-ABG consortium to develop the new container terminal, the fourth, at JN port as it looks to expand capacity. The PSA-ABG team had offered to share 50.82 percent of its annual revenue with the government-run port, making it the highest revenue share bid quoted by a private firm since India started container port privatization programme in 1997.
Under this policy, the bidder willing to share the most from annual revenue with the government-owned port gets the contract, typically stretching 30 years.
The approval of the board of trustees for the project that will allow the port to load an additional four million containers a year to the 4.27 million TEUs it already handles, was considered a formality.
The tendering process lasted almost three years as it was marred by court cases filed by bidders over the government's policy on ports.
JN port chairman L. Radhakrishnan confirmed that the trustees had decided to set up a panel to examine ABG's Kandla performance, without elaborating further.
One of the trustees not attached or belonging to the port, who attended the 10 August meeting, said a section of them had urged caution.
"If ABG is not able to perform at a smaller terminal in Kandla, then how would it perform at a bigger terminal at JN port," he asked, requesting anonymity.
Tuesday, August 16, 2011
Friday, August 12, 2011
ROAD TRANSPORT - FORWARDING
DHL launches Southeast Asia road service suite
DHL Global Forwarding has consolidated its network of secure road freight services connecting Singapore, Malaysia and Thailand.
Its new and improved suite of three road freight services – Asiaconnect, Asialine and Asianet – will provide customers with a complete range of flexible and fast overland freighting options. Asiaconnect is DHL's less-than-truck-load (LTL) scheduled service that is now available to complement DHL's full-load service now called Asialine and its bespoke service, Asianet.
Amadou Diallo, CEO, Africa and South Asia Pacific, DHL Global Forwarding, said: "DHL Global Forwarding has been offering customers road freight services in Asia for years as it has many advantages - it is faster than sea, cheaper than air and can offer customers more pick-up flexibility and shorter lead times.
"Now consolidated into a single suite, and especially with the introduction of DHL Asiaconnect, our customers can choose the product best suited to their immediate needs. This is perfect for SMEs whose volumes vary and are not always very large, and for companies seeking better inventory management. With this suite of services DHL is providing the fastest, most flexible and secure road option whether customers require a tailor-made road freight solution or simply want to send small shipments securely at an all-in rate price system."
DHL Global Forwarding has consolidated its network of secure road freight services connecting Singapore, Malaysia and Thailand.
Its new and improved suite of three road freight services – Asiaconnect, Asialine and Asianet – will provide customers with a complete range of flexible and fast overland freighting options. Asiaconnect is DHL's less-than-truck-load (LTL) scheduled service that is now available to complement DHL's full-load service now called Asialine and its bespoke service, Asianet.
Amadou Diallo, CEO, Africa and South Asia Pacific, DHL Global Forwarding, said: "DHL Global Forwarding has been offering customers road freight services in Asia for years as it has many advantages - it is faster than sea, cheaper than air and can offer customers more pick-up flexibility and shorter lead times.
"Now consolidated into a single suite, and especially with the introduction of DHL Asiaconnect, our customers can choose the product best suited to their immediate needs. This is perfect for SMEs whose volumes vary and are not always very large, and for companies seeking better inventory management. With this suite of services DHL is providing the fastest, most flexible and secure road option whether customers require a tailor-made road freight solution or simply want to send small shipments securely at an all-in rate price system."
SEAPORT - SHIFTING TRAFFIC
Sohar port gets 350,000 TEU shot in arm
Shifting traffic to Sohar Port adds lustre to its growth
The proposed conversion of Port Sultan Qaboos in Muscat, into a tourism and maritime heritage port, will boost Sohar Port's container throughput by 350,000 TEUs, according to Sohar Industrial Port Company - the landlord-operator of the industrial port, reported the Times of Oman.
In line with the royal directives of His Majesty the Sultan, Port Sultan Qaboos will be converted from a commercial port to a full-fledged tourist port.
All commercial import, export, general cargo and container activities will be shifted to Port of Sohar.
The shifting of these activities towards Sohar will increase the total volume to 500,000 TEUs by the end of 2013.
The Port of Sohar is a 50:50 joint venture between the Government of Oman and the Port of Rotterdam and located 220km northwest of the capital Muscat. The industrial port is a deep-sea port and has grown tremendously in size and importance in only eight years since its start in 2003.
Shifting traffic to Sohar Port adds lustre to its growth
The proposed conversion of Port Sultan Qaboos in Muscat, into a tourism and maritime heritage port, will boost Sohar Port's container throughput by 350,000 TEUs, according to Sohar Industrial Port Company - the landlord-operator of the industrial port, reported the Times of Oman.
In line with the royal directives of His Majesty the Sultan, Port Sultan Qaboos will be converted from a commercial port to a full-fledged tourist port.
All commercial import, export, general cargo and container activities will be shifted to Port of Sohar.
The shifting of these activities towards Sohar will increase the total volume to 500,000 TEUs by the end of 2013.
The Port of Sohar is a 50:50 joint venture between the Government of Oman and the Port of Rotterdam and located 220km northwest of the capital Muscat. The industrial port is a deep-sea port and has grown tremendously in size and importance in only eight years since its start in 2003.
Thursday, August 11, 2011
AVIATION - SHARE SWAP
MAS, AirAsia set aside rivalry to form partnership
Malaysia's national carrier, Malaysian Airline System (MAS), and Airasia , have agreed to set aside their rivalry and work together after signing a share swap agreement, reported Reuters.
Based on the terms of the agreement, AirAsia's major shareholder Tune Air, controlled by its two principal founders Tony Fernandes and Kamarudin Meranun, will buy a 20.5 percent stake in MAS from MAS' major shareholder Khazanah Nasional
Khazanah will in turn buy a 10 percent stake in AirAsia from Tune Air, which is presently the single largest AirAsia shareholder with a 23 percent stake.
Khazanah will also buy 10 percent of AirAsia X, which is the unlisted long-haul arm of AirAsia.
MAS and AirAsia shares have been suspended since Monday.
Malaysia's national carrier, Malaysian Airline System (MAS), and Airasia , have agreed to set aside their rivalry and work together after signing a share swap agreement, reported Reuters.
Based on the terms of the agreement, AirAsia's major shareholder Tune Air, controlled by its two principal founders Tony Fernandes and Kamarudin Meranun, will buy a 20.5 percent stake in MAS from MAS' major shareholder Khazanah Nasional
Khazanah will in turn buy a 10 percent stake in AirAsia from Tune Air, which is presently the single largest AirAsia shareholder with a 23 percent stake.
Khazanah will also buy 10 percent of AirAsia X, which is the unlisted long-haul arm of AirAsia.
MAS and AirAsia shares have been suspended since Monday.
Tuesday, August 2, 2011
PORT - PAPERLESS BILLING
Monday July 25, 2011
PTP switches to paperless billing to promote sustainability
JOHOR BARU: Port of Tanjung Pelepas (PTP), the top transhipment container in the country, is switching to paperless billing come Sept 1 in line with one of its core values to promote sustainable development.
The switch will reduce the amount of paper invoices printed and mailed to customers worldwide.
“PTP will stop printing invoices for mailing to customers. Customers will no longer have to wait for invoices in their mail. To access invoices, customers just need to log in to PTP’s online portal with the given ID and password. The portal will be available 24/7 via secure access thus giving the customers the freedom to view and download their invoices at their convenience,” said a PTP spokesperson in a statement on Friday.
Paperless billing also reduces paper consumption and the amount of carbon dioxide (CO2) emitted during the traditional billing transportation process.
The introduction of paperless billing is timely, given the sharp increase in the number of invoices issued resulting from the volume increase this year. For the first six months of this year, the port handled 3.7 million 20-footer equivalent units (TEUs), up 16% from the same period last year.
“We expect to handle about 7.5 million TEUs of containers this year, a 16% increase from last year. Currently, we are generating some 4,000 invoices, or about 9,000 sheets of paper every month. Our paperless billing will save more than 100,000 sheets of paper per year. If these 100,000 sheets of paper were laid as an extension to each other, it would be as high as Mount Kinabalu” said the spokesperson.
PTP has also in the past taken other initiatives to promote a green business environment.
Among them include efforts to minimize carbon dioxide and any other noxious gas emissions by replacing old machineries and equipment with newer models which were more efficient in terms of fuel consumption.
“The lights in the port area have automatic sensors that turn off automatically when not in use” he further added.
“With all these efforts, we have successfully reduced our carbon emission from 17.65kg per TEU in 2009 to 16.63kg per TEU in 2010. For the year 2011, we are committed to reduce the emission per TEUs by a further 5% compared to 2010. This will bring our total reduction to 6,652 tonnes, which is the equivalent to planting 33,260 trees in 2011.
“At PTP, we believe in pursuing sustainable business practices, and the paperless billing initiative is just one example of how we can work towards this goal” said the spokeperson.
Customers will be briefed on the paperless billing to facilitate an easy transition and they will each be provided with a CD-ROM to guide them through the process and be able to access invoices immediately using the given ID and password.
PTP has been testing out the system with a few customers who have voluntarily switched to paperless billing since June last year and the response has been positive.
(Copyright © 1995-2011 Star Publications (M) Bhd (Co No 10894-D))
PTP switches to paperless billing to promote sustainability
JOHOR BARU: Port of Tanjung Pelepas (PTP), the top transhipment container in the country, is switching to paperless billing come Sept 1 in line with one of its core values to promote sustainable development.
The switch will reduce the amount of paper invoices printed and mailed to customers worldwide.
“PTP will stop printing invoices for mailing to customers. Customers will no longer have to wait for invoices in their mail. To access invoices, customers just need to log in to PTP’s online portal with the given ID and password. The portal will be available 24/7 via secure access thus giving the customers the freedom to view and download their invoices at their convenience,” said a PTP spokesperson in a statement on Friday.
Paperless billing also reduces paper consumption and the amount of carbon dioxide (CO2) emitted during the traditional billing transportation process.
The introduction of paperless billing is timely, given the sharp increase in the number of invoices issued resulting from the volume increase this year. For the first six months of this year, the port handled 3.7 million 20-footer equivalent units (TEUs), up 16% from the same period last year.
“We expect to handle about 7.5 million TEUs of containers this year, a 16% increase from last year. Currently, we are generating some 4,000 invoices, or about 9,000 sheets of paper every month. Our paperless billing will save more than 100,000 sheets of paper per year. If these 100,000 sheets of paper were laid as an extension to each other, it would be as high as Mount Kinabalu” said the spokesperson.
PTP has also in the past taken other initiatives to promote a green business environment.
Among them include efforts to minimize carbon dioxide and any other noxious gas emissions by replacing old machineries and equipment with newer models which were more efficient in terms of fuel consumption.
“The lights in the port area have automatic sensors that turn off automatically when not in use” he further added.
“With all these efforts, we have successfully reduced our carbon emission from 17.65kg per TEU in 2009 to 16.63kg per TEU in 2010. For the year 2011, we are committed to reduce the emission per TEUs by a further 5% compared to 2010. This will bring our total reduction to 6,652 tonnes, which is the equivalent to planting 33,260 trees in 2011.
“At PTP, we believe in pursuing sustainable business practices, and the paperless billing initiative is just one example of how we can work towards this goal” said the spokeperson.
Customers will be briefed on the paperless billing to facilitate an easy transition and they will each be provided with a CD-ROM to guide them through the process and be able to access invoices immediately using the given ID and password.
PTP has been testing out the system with a few customers who have voluntarily switched to paperless billing since June last year and the response has been positive.
(Copyright © 1995-2011 Star Publications (M) Bhd (Co No 10894-D))
EDUCATION - TRANSPORT & LOGISTICS
Monday August 1, 2011
Professional body CILTM recognises varsity’s logistics programme
By SHARIDAN M. ALI
sharidan@thestar.com.my
KUALA LUMPUR: A memorandum of agreement (MoA) signed between Chartered Institute of Logistics and Transport Malaysia (CILTM) and Universiti Utara Malaysia (UUM) recently will act as a springboard for the latter’s graduates in logistics studies to enter the industry.
CILTM president Datuk Abdul Radzak Abdul Malek said the MoA allowed for a greater and mutually beneficial cooperation between academia and the industry.
“Areas like exchange of knowledge from the industry to the academic through invited guest lectures by industry professionals can be made possible with this MoA.
“Others like joint research activities that has high application value to the industry, student-led out-of-classroom experiential learning activities and leadership camp for young professionals will add value to this MoA,” he said at the agreement singing.
The MoA entailed accreditation by CILTM to the Bachelor of Business Administration in Logistics and Transport (BBLT) programme currently offered by UUM.
“With this, the degree will not only be recognised globally but also has better marketability,” said Abdul Radzak.
The Chartered Institute of Logistics and Transport (CILT) is the international professional body for all sectors of the transport industry.
Founded in the United Kingdom in 1919 and granted a Royal Charter in 1926, it was formed to promote knowledge of the science and arts of logistics and transport and to provide a source of authoritative views for communication to government, industry and the community.
Abdul Radzak said the MoA was timely as Malaysia was now undertaking a huge step in the logistics and transport industry.
He said the formation of Land Public Transport Commission, the development of mass rapid transit system in the Klang Valley and the creation of Southern Logistics Hub in Iskandar Malaysia were just a few examples of the Government’s seriousness in developing the industry.
He said all these economic and infrastructure development activities spelt the need for qualified logistics and transportation professionals.
“The fact that UUM has its BBLT programme recognised by CILTM as a professional degree is just like a stamp of endorsement that the graduates of this degree from UUM are not only qualified academically but also equipped with skills that the industry needs.
“This endorsement is further amplified when the graduates are conferred the Member of The CILT (MILT) immediately upon their graduation. This will put them in a better position to compete in the job market,” he said.
UUM vice-chancellor Professor Datuk Dr Mohamed Mustafa Ishak said the university had been offering the BBLT since 1993 and so far, 431 graduates had completed their studies.
“At present, we have about 453 undergraduate students enrolled in the programme of which about 15% are from countries like Nigeria, Chad, Sudan, Somalia, Thailand, China, Indonesia and Saudi Arabia.
“Through this smart collaboration, our graduates are better positioned to face challenging careers as qualified professionals in logistics and transportation either in the Government or private sector,” he said.
Professional body CILTM recognises varsity’s logistics programme
By SHARIDAN M. ALI
sharidan@thestar.com.my
KUALA LUMPUR: A memorandum of agreement (MoA) signed between Chartered Institute of Logistics and Transport Malaysia (CILTM) and Universiti Utara Malaysia (UUM) recently will act as a springboard for the latter’s graduates in logistics studies to enter the industry.
CILTM president Datuk Abdul Radzak Abdul Malek said the MoA allowed for a greater and mutually beneficial cooperation between academia and the industry.
“Areas like exchange of knowledge from the industry to the academic through invited guest lectures by industry professionals can be made possible with this MoA.
“Others like joint research activities that has high application value to the industry, student-led out-of-classroom experiential learning activities and leadership camp for young professionals will add value to this MoA,” he said at the agreement singing.
The MoA entailed accreditation by CILTM to the Bachelor of Business Administration in Logistics and Transport (BBLT) programme currently offered by UUM.
“With this, the degree will not only be recognised globally but also has better marketability,” said Abdul Radzak.
The Chartered Institute of Logistics and Transport (CILT) is the international professional body for all sectors of the transport industry.
Founded in the United Kingdom in 1919 and granted a Royal Charter in 1926, it was formed to promote knowledge of the science and arts of logistics and transport and to provide a source of authoritative views for communication to government, industry and the community.
Abdul Radzak said the MoA was timely as Malaysia was now undertaking a huge step in the logistics and transport industry.
He said the formation of Land Public Transport Commission, the development of mass rapid transit system in the Klang Valley and the creation of Southern Logistics Hub in Iskandar Malaysia were just a few examples of the Government’s seriousness in developing the industry.
He said all these economic and infrastructure development activities spelt the need for qualified logistics and transportation professionals.
“The fact that UUM has its BBLT programme recognised by CILTM as a professional degree is just like a stamp of endorsement that the graduates of this degree from UUM are not only qualified academically but also equipped with skills that the industry needs.
“This endorsement is further amplified when the graduates are conferred the Member of The CILT (MILT) immediately upon their graduation. This will put them in a better position to compete in the job market,” he said.
UUM vice-chancellor Professor Datuk Dr Mohamed Mustafa Ishak said the university had been offering the BBLT since 1993 and so far, 431 graduates had completed their studies.
“At present, we have about 453 undergraduate students enrolled in the programme of which about 15% are from countries like Nigeria, Chad, Sudan, Somalia, Thailand, China, Indonesia and Saudi Arabia.
“Through this smart collaboration, our graduates are better positioned to face challenging careers as qualified professionals in logistics and transportation either in the Government or private sector,” he said.
Monday, August 1, 2011
OIL & GAS - GAS DISCOVERIES IN SABAH
Petronas strikes twice off Sabah
Malaysia's national oil company Petronas has made two shallow-water gas discoveries off the west coast of the Malaysian state of Sabah.
(Josh Lewis 28 July 2011 04:48 GMT)
It said the first discovery was made on the Samarang Asam Paya Block, about 130 kilometres south-west of Kota Kinabalu, in the Zuhal East-1 well.
The well was drilled in a water depth of 38 metres to a total depth of 2336 metres and Petronas said its current estimate of gas-initially-in-place was about 550 billion cubic feet.
It added the well intersected reservoirs similar to those encountered in a well about five kilometres to the east which flowed at a rate of 21 million cubic feet per day during testing.
Petronas is the sole equity holder in the Samarang Asam Paya Block production sharing contract.
The second discovery was made in the Menggatal-1 well in Block SB312, about 110 kilometres north-east of Kota Kinabalu.
The well was spudded in a water depth of 204 metres to a total depth of 2100 metres and flowed gas at a rate of 19 MMcfd during testing.
Petronas added it currently estimated gas-initially-in-place at the discovery to be about 650 Bcf.
Petronas holds a 60% stake in the Block SB312 PSC with Kuwait Foreign Petroleum Exploration Company holding the remaining 40% interest.
Malaysia's national oil company Petronas has made two shallow-water gas discoveries off the west coast of the Malaysian state of Sabah.
(Josh Lewis 28 July 2011 04:48 GMT)
It said the first discovery was made on the Samarang Asam Paya Block, about 130 kilometres south-west of Kota Kinabalu, in the Zuhal East-1 well.
The well was drilled in a water depth of 38 metres to a total depth of 2336 metres and Petronas said its current estimate of gas-initially-in-place was about 550 billion cubic feet.
It added the well intersected reservoirs similar to those encountered in a well about five kilometres to the east which flowed at a rate of 21 million cubic feet per day during testing.
Petronas is the sole equity holder in the Samarang Asam Paya Block production sharing contract.
The second discovery was made in the Menggatal-1 well in Block SB312, about 110 kilometres north-east of Kota Kinabalu.
The well was spudded in a water depth of 204 metres to a total depth of 2100 metres and flowed gas at a rate of 19 MMcfd during testing.
Petronas added it currently estimated gas-initially-in-place at the discovery to be about 650 Bcf.
Petronas holds a 60% stake in the Block SB312 PSC with Kuwait Foreign Petroleum Exploration Company holding the remaining 40% interest.
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