Govt Mulling Export Ban on Flat Steel Products, Iron ore

Steel industry could be in for another shock with the government now considering banning exports of flat steel products with a view to check rising inflation.

“If the prices of flat steel products are not being kept in check, either the export duty could be increased or a ban on export could be considered to increased domestic availability,” Committee of secretaries (CoS) observed in its last meeting.

It also noted that the government consider increasing export duty on long steel products and subsequently explore the possibility of banning iron are exports to increase domestic availability.

Steel prices have since January this year shot up by around 50 percent, adding to the double digit inflation, which hovering at a 13-year high of just below 12 percent.

Government had on June 13 exempted flat rolled products of iron and including galvanized products, pipes and tubes 5 to 15 percent ad-valorem, from the purview of the export duty.

The rate of export duty on long products such as bars and rods, angles, shapes sections and wires was also increased from 10 to 15 percent a 15 percent valorem duty was imposed on iron ore.

The Cos decided that the ministry of steel in consultion with Department of revenue would soon consider suitable measures for increasing the domestic availability of steel and moderating its prices.

The Ministry would also consider proposals for implementation in early August when the three-month self-moratorium imposed by major steel producers to hold their priceline expires.
The ministry would quickly undertaken an analysis on the options available moderating the prices of iron ore and submit it for consideration of the company of secretaries during the next meeting, they added.

Shanghai to be world's No.1 container port in 2008

Dr Jost Paul attempts to explain the growth of container port traffic globally particular. Not only do the developing countries account for more than 62 per cent of world container throughput, but they also represent a growth rate approximately a third more than that of developed countries. He sharpens focus on the faster pace of development of container ports in China and highlights the relatively slower growth of container port infrastructure in India. He also spotlights their less impressive throughput, compared to other South and South East Asian countries, and indicates some solutions.

In this piece, the author attempts to explain the growth of container port traffic globally and that of the developing countries in particular. Not only do the developing countries account for more than 62 per cent of world container throughput, but they also represent a growth rate approximately a third more than that of developed countries. The author also brings into close focus the faster pace of development of container ports in China and their significant contribution to the development of global container port throughput. He also throws light on the relatively slower growth of container port infrastructure in India and the less impressive container port throughput, as compared to other South and South-East Asian Countries. He concludes by stressing the importance of creating adequate container port infrastructure and capacity building in the country to be able to support its significant growth in foreign trade.

JNPT’S Stall at Shipping Expo attracts ex-President Kalam’s interest

It was a proud and exciting moment for the Jawaharlal Nehru Port Trust (JNPT) when Dr.A.P.J.Abdul Kalam, former President of India, visited its stall at the Shipping & Marine World Expo 2008 international exhibition and conference here last week.

JNPT was a participant in the event, organized by Chemtech Foundation, at the Bombay Exhibition Centre, NSE Complex, Goregaon, from February 13 to 17 Dr.Kalam was the chief guest at the inaugural ceremony, immediately after which he visited the JNPT stall at the exhibition. He was received by Mr.S.S.Hussain, Chairman of JNPT, who briefed the former President about the Port, its container handling capacity and performance.

Mr.Hussain also delivered the keynote address at the conference, on ‘Indian Ports-The Gorwth Dirven”.

Sical Distriparks opens empty Container Yard in Tuticorin

Sical Distriparks Ltd, a Container Logistics Division of Sical Ltd., India's leading provider of integrated multi-modal logistics solutions for bulk and containerized cargo CFS and offshore logistics inaugurated the new empty container yard in Tuticorin and laid the foundation stone for the new upcoming CFS.

According to a press note, the new facility is declared open for the trade by Mr.Sudhir S.Rangnekar, Group CEO & Managing Director, Sical Logistics Limited in the presence of Mr.L.R.Sridhar, Director & CEO, Sical Distriparks, partners and authorities. The new empty container yard is developed in five acre area on the Harbour Construction Road in Tuticorin. The yard has been developed with the state of the art facility, washing facility, reefer points, admin blocks, round the clock security etc. The yard will have a capacity to handle 4000 TEU's of empty containers in a month.

Commenting on thisland mark achievement, Mr.Sudhir Rangnekar said, "the new empty container yard shalle be a boon to the container trade in Tuticorin. While remaining the leading multimodal logistics service provider in the country, Sical is ambitious in developing infrastructure across the industry to serve its customers in India and abroad. This includes, the development of Road and Rail terminal in MIHAN SEZ, Nagpur, state of the art iron ore terminal in Ennore Port, development of Second Container Terminal in Chennai Port, development of warehousing activity across the country, development of New Green field port in India, new initiative in the freight forwarding to provide end to end supply chain solutions etc. Sical has plans to acquire 35 container rakes for its train operations, while the first lot of two rakes will be operational in February 2008. With all there projects in pipeline, Sical is poised to remain customer focused in all its existing operations across its business."

In his welcome address, Mr.L.R.Sridhar said, "the new empty container yard has been developed in a record time of three months time with world class facilities to handle empty containers. The new CFS shall be developed in 14 acres of area adjacent to the developed empty container yard. The CFS shall have a state of the art facility to handle capacity up to 50000 Teu's/annum of import and export container for the Tuticorin Port." He also thanked the partners and authorities for having supported Sical for developing the empty container yard the new container freight station in Tuticorin.

India dumping ground for toxic waste

NEW DELHI: On the face of it, India is getting hazardous chemical-loaded ships for dismantling from obscure countries such as Comoros, a small island nation in Indian Ocean. But scratch the surface and it appears that these small countries are a front for rich nations to send their dirty cargo ships to India.

The poor countries come handy for countries like Germany and Greece to circumvent international laws. The catch being that international laws prevent 'the rich' from shipping their hazardous waste directly to India. 'The poor' are not barred from dealing in this lucrative international scrap trade with another 'poor country'.

On record, India has got ships from countries like Bermuda, Panama and even land-locked Mongolia to dismantle at Asia's biggest ship breaking yard, Alang.

The latest in the list is the "Al Arabia" alias "Beni Ansar" alias "Aquaba Express" that beached at India in October 2007 despite warnings from the UN Environmental Programme that the ship was being illegally taken to India.

The ship came carrying the flag of the obscure Comoros Island. "Al Arabia" is just one example of the modus operandi the rich OECD countries use to circumvent the international Basel Convention and their own strict environmental laws.
The convention bans any movement of hazardous waste from the developed countries to developing countries without prior consent.

Ship owners from rich countries instead find the convenient route out by buying a 'flag of convenience' for their discarded ship by registering them in countries like Liberia, St Vincent, Grena-dines, landlocked Mongolia and Tuvalu, which make a quick buck in return. The ships then sail off to the breaking yards in countries like India.

Even the radioactive material-carrying "Blue Lady" alias "SS Norway" was sold to an Indian company through a company based in Monrovia, Liberia — more known for its trade in blood diamonds.

The "Blue Lady" was more than a 2,000 plus capacity luxury cruise liner run by the world famous Star Cruise Limited. But after it became unusable, it shipped through various countries before being 'officially' sold to a company based in Liberia for a mere US $10. Sailing under the Liberian flag, it was sold to an Indian company helping the original owners circumvent the Basel Convention.

"Many of these ships change hands several times flipping their flags of convenience making it impossible to trace the original owner even in case of any accident or liability arises," said a senior ship breaking industry official.

Liability can arise out of the dangerous chemicals that they come laden with without notice decontaminating which has got Alang one of the worst labour accident records in the world. The "Al Arabia", still beached in Alang, contains hazardous substances like asbestos and cancer causing polychlorinated biphenyls or PCBs that take very long to decompose in the environment.

"The flags of convenience are a big issue in the shipping industry and the government is finding it tough to tackle. In fact, there are several ships that have got wrecked off the coast of India over the past years that the government cannot trace the owners of," the industry expert told TOI.

Sources in Gujarat said that more than 75% of the ships that have been broken down in Alang over the past five years have come under a flag of convenience. The director-general of Shipping is now slated to hold a meeting in February to address the issue of tracking the owners of wrecked and other ships where the issue of flags of convenience is expected to come up again.

India sees 2-bln tonne port capacity by 2012 - official

MUMBAI (Reuters) - India's port capacity is expected to rise to 2 billion tonnes by 2012, helped by new ports being built along the coastline, the director general of shipping said on Wednesday.

"There are 20-30 new ports that are coming up. These, which are essentially fishermen ports, are being built to handle cargo," Kiran Dhingra said at an industry conference.

Indian ports handled about 650 million tonnes of cargo in 2006/07, said a report released by consultancy firm KPMG at the conference.

Indian Stocks End Little Changed; Infosys Falls, Refiners Gain

Feb. 5 (Bloomberg) -- India's Sensitive Index ended little changed. Infosys Technologies Ltd. led software exporters lower on concern that business from their clients could slow after brokerages said a U.S. recession could increase mortgage-related losses at financial companies.

``The business outlook for software exporters is still unclear,'' said Mahesh Patil, who helps manage $800 million in stocks at Mumbai-based Birla Sun Life Asset Management Co. ``Until views on the U.S. outlook get clearer, it will be difficult for software stocks to do well.''

Indian Oil Corp. led refiners higher on reports the government will raise prices of gasoline and diesel, easing losses at the companies that are forced to sell fuel below market prices.

The Bombay Stock Exchange's Sensex added 2.84 points or less than 0.1 percent, to 18,663.16. It earlier fell as much as 0.8 percent. The S&P/CNX Nifty Index on the National Stock Exchange added 20.40, or 0.4 percent to 5,483.90.

U.S.-based analysts at UBS AG and Merrill Lynch & Co. said yesterday in separate reports that investors should sell American Express Co., Wells Fargo & Co. and Wachovia Corp. Unemployment may rise and property values are declining, deepening a recession that will worsen defaults among consumers.

Refiners Advance

Infosys, India's second-biggest software exporter, slid 31.4 rupees, or 1.9 percent, to 1,611.25. Tata Consultancy Services Ltd., the largest, fell 26.55 rupees, or 2.7 percent, to 949.45. Wipro Ltd., the third-biggest, declined 9.95 rupees, or 2.1 percent, to 454.30.

Indian software companies get more than half their sales from the U.S.

Indian Oil, the country's largest state-run refiner, gained 6.05 rupees, or 1.2 percent, to 530.40. Hindustan Petroleum Corp., the third-biggest, advanced 4.35 rupees, or 1.6 percent, to 280.90.

The government is likely to raise retail selling prices of petrol by 2 rupees per liter and diesel by one rupee per liter, later this week, the Hindu BusinessLine newspaper reported, without saying where it obtained the information.

Oil rose 57 percent last year and reached a record $100.09 a barrel Jan. 3, straining finances at state refiners. Indian Oil, Hindustan Petroleum and Bharat Petroleum Corp. could lose a combined 700 billion rupees ($18 billion) in the year to March 31 because prices have been frozen for the past 19 months.

The following stocks rose. Stock symbols are in parentheses after company names.

Essar Shipping Ltd. (ESRS IN) rose 10.85 rupees, or by its 5 percent daily limit, to 228.65. The shipping arm of India's Essar Group may raise about $1 billion through a share sale to private investors and funds, the Economic Times reported on its Web site, without saying where it got the information.

Larsen & Toubro Ltd. (LT IN) gained 48.6 rupees, or 1.3 percent, to 3,855.05. India's biggest engineering company, expects sales in the Gulf region to reach $2 billion in the next two years. Sales from the Middle East are likely to contribute 20 percent of Larsen's total revenue from the present 16 percent, Chief Financial Officer Yeshwant Deosthalee said today.

Separately, Larsen may win a development project in a satellite city of Mumbai after emerging as the highest bidder, CNBC TV-18 reported, without saying where it obtained the information.

Oil & Natural Gas Corp. (ONGC IN) climbed 18.8 rupees, or 1.8 percent, to 1,074.30. India's largest oil explorer plans to set up windmill farms to generate as much as 2,000 megawatts of electricity, the Business Standard reported, without saying where it got the information.