MUMBAI : Indo-Belgian-Luxembourg Chamber of Commerce and Industry (IBLCCI) and Allcargo Logistics Ltd holds the 2nd Ashit Desai Memorial Seminar on logistics at Anchorage, Royal Bombay Yacht Club in Mumbai on December 18, 2012.

 

This was a major India trade conference attended by all prominent dignitaries from trade and Shipping and Maritime Fraternity. The Speakers who explored the importance of 25 Years of Indian Shipping were Ms. Shantha Martin, Chief Executive Officer (CEO), Allcargo Logistics and Mr. Shashi Tanna, MD, Links International & President AMTOI & Mr. S Hajara, CMD, SCI (keynote speaker).

 

Mr. Raj Khalid, Indian Representative, Port of Antwerp, Mr. Karl De Borger,  President, IBLCCI, Mr. Xerxes Master, Member of the Governing Council and Immediate Past President, IBLCCI, Mr. Unnikrishnan, MANSA, President, Mr. Anand Sheth, Mr. Nailesh Gandhi, Mr. Vivek Kele and other prominent dignitaries were present at the seminar.

 

In his welcome address, Mr. Karl De Borger said, India enjoys traditional, warm and friendly relations with Belgium. Belgium is an important trading partner for India, expressed satisfaction over the growing trade and investment between the two countries in the face of the global financial slowdown.

 

The objective of the Chamber is to promote trade between India, Belgium and Luxembourg. The Chamber is an institutional link for the promotion of commercial and economic relations. We are working closely with the Belgo Indian Chamber, Luxembourg Chamber of Commerce, the Indian Embassy, Belgian Embassy, Luxembourg Embassy and Belgian Consulate, as well as other Governmental bodies and Chambers of Commerce all over India. We are providing  ample of services to the business communities in India, Belgium and Luxembourg with a mission.

 

Mr. Xerxes Master welcomed the key speakers of the conference and explained in short about the role of the speakers for the successful journey of Indian Shipping. He pointed out that, Logistics and Shipping are the key strength in Belgium. The Chamber provides the platform for India and Belgium to improve and boost the trade relations.

 

He also gave an overview on the role played by the late Mr Ashit Desai in the expansion of Allcargo.

 

Further, he also thanked Mr. Karl De Borger for the support and Mr. Raj Khalid for his guidance given to the Chamber to accomplish its goals.

 

Addressing the seminar, Ms. Shantha Martin, CEO, Allcargo Logistics briefed about the current scenario and the outlook of Indian Shipping in detail. Highlighting on the same she said, as per Maritime Agenda 2020, the traffic at Indian Ports is expected to grow three-fold.

 

Further, she spoke about the growth prospects of Allcargo Logistics.

 

Allcargo has been able to derive real synergy from its businesses of Multimodal Transport Operations (MTO), Projects & Engineering Solutions and CFS/ICD and 3PL. The company clubbed the businesses of Projects Logistics business and Equipment solutions and presented an end-to-end offering to its customers interested in movement of ODC (Over dimensional Cargo) and are providers of high-end equipment for their business.

 

Presence in CFS and ICD segment would be the main growth driver for the company. Working relationships with major shipping lines, port agents and local carriers has helped the company strengthen its presence in the CFS business. Its presence in Mundra and Chennai ports hold long-term strategic advantage, what with the ports expected to see increased action -- Gujarat is turning into an investment hot-spot and Chennai has become a car manufacturing hub.

 

Allcargo is in the process of adding capacity of 1,00,000 TEUs at a bigger site near JNPT, close to the existing facility and the new CFS  at JNPT should be operational soon. It currently operates CFSs in Mundra, Chennai and Mumbai. The company is also keen on coastal shipping and has recently bought three bulk ships to offer support to upcoming power plants across the country.

 

Allcargo, through its wholly-owned subsidiary, ECU Line, has a strong presence in Europe, Latin America and Africa.

 

Mr. Shashi Tanna while addressing the conference that, Indian Shipping and Global Shipping has no different and they go hand in hand. The global sea trade continues to grow and the Indian Shipping has equal contribution to international trade. There is new revolution taking place in Shipping Industry. We need to change the direction in trade volumes. Another major driver of growth for maritime sector is economic growth and global trade.

 

To meet the target, there is a need of strategy and plans. Ports have been conventionally viewed as provider of omnibus solution to all types of cargo on a common basis. However, the global trend is veering into development of  ports - such as LNG terminals, container terminals - that involve high capital costs and intensive deployment of cargo handling equipment.

 

He stressed, the challenges in the Indian scenario were the onerous tax regime, multiplicity of regulations, declining share of Indian shipping tonnage in country's overseas trade, declining cargo support, manpower shortage, high port charges, like port dues, berth hire, pilotage and cargo-handling charges, in India are also affecting the Indian shipping industry and connectivity with the hinterland.

 

Mr. S. Hajara thanked Indo-Belgian-Luxembourg Chamber of Commerce and Industry for giving him the opportunity to share his thoughts about Indian Shipping Industry. He explored in detail about 25 Years of Indian Shipping.

 

Belgium is true partner for India in all aspects. He felt happy to know about Marc Van Peel still continuing as the chairman of Port of Antwerp. Last year we saw a historic high for ship deliveries, arising out of historically high orders placed in 2007. The growth in supply continued in 2011.

 

The coming year will also see a growth in supply of anywhere between  5 per cent and 8 per cent, whereas the growth in demand is expected to be just about 2 per cent, or thereabouts, because of various reasons such as Euro zone problems and the US economic slowdown. Even China and India, which are expected to fuel the world economy, are under pressure.

 

Indian shipping lines will be slightly better off than their counterparts in terms of deployment of tonnage, as the growth in India will definitely be better than most other countries, other than China.

 

The contribution of shipping to the world economy is tremendous even though it is a "silent" industry. It is a unique industry, shipping is considered to be a silent industry, but the contribution it makes to the world at large is absolutely fantastic. He said one aspect of shipping that was still not acknowledged was that although world over prices increased, "Shipping contributed to the world economy, and reduced freighter charges in absolute terms."

 

"Although dry bulk will take longer to recover, if China comes back on track and the US maintains its current course, a recovery in other sectors could begin in mid 2013". He went on to outline his thoughts about India's economic position from the global perspective. "The world cannot ignore China & India, as the majority of the world's coal demand will come from these two nations in the next few years. Emerging economies cannot be suppressed much longer"

 

He also reminded delegates that long haul shipping is by far the most economical and eco-friendly mode of transport in the world. We still have a healthy growth in 2011-12 and we expect the same in 2013.

 

The growth of non-major ports has actually helped in tackling the problem in better way.  The non major ports registered a growth of 15 per cent. Development of a strategic shipping reserve would be a significant step for securing India's energy future, which entails an active support from the Government by providing cargo support by making the environment more conducive for the growth of Indian shipping companies, he added.

 

We constitute 80 per cent of world trade. The Coal is emerging more and more important constituent for India. To encourage Shipping and boost trade, Government should play a major role in supporting and promoting Indian Shipping industry, added Mr. Hajara.

 

Mr. Raj Khalid, Indian Representative, Port of Antwerp delivered the vote of thanks. He thanked everybody who attended the seminar and thanked the key speakers who presented the current scenario, trends and challenges on  25 years of Indian Shipping.