NEW DELHI, JAN 27: The port of Tianjin had handled 8.7 million TEU in 2009, up 2.4 per cent yerar on year, At the meantime, the port’s cumulative cargo tonnage exceeded 380 million tonnes, growing 6.7 per cent year on year. The port also recorded increases of more than five per cent in its domestic and foreign trade cargo volume during this period.

              Port of Tianjin has managed to overcome the difficulties brought by the world financial crisis and succeeded in achieving increase at a time when decrease prevailed, said. In 2009 the port spent CNY12.8 billion (US$1.87 billion) on port construction projects. The new container terminal, Euroasia International Container Terminal, has been finished, bringing extra capacity of 1.7 million TEU to the port.

             Two new bulk berths has start trial operation and will add 11 million tonnes’ capacity to the port after full completion in 2010.

             A new crude oil terminal has also been built with a capacity 20 million tonnes.

                NEW DELHI, JAN 27: DP World announced that it handled 25.6 million TEU across its portfolio of 28 consolidated terminals in 2009, refewer containers handled than last year. Excluding the contribution from new terminals  which joined the portfolio during 2009, volumes declined by 10 pc (having been down 13 pc in the first half). Across all 50  of our operational terminals in 2009 we handled 43.4  m TEU a decline of 6 pc over 2008.

             DP World’s outperformance reflects focus on more resilient emerging markets which have not been as impacted by the slowdown in global trade.

             During 2009, the company successfully opened two new terminals we have been developing over the course of the last few years; Doraleh Container Terminal in Djibouti at the beginning of the year, and Ho ChiMinh city, Vietnam in the final quarter of the year, In addition, we were awarded concessions for two new terminals in Algeria.

              UAE region handled volumes of just over 11 million TEU, handling more containers in the second half of the year than in the first half.

              Mohammed Sharaf, Chief Executive of DP World said, “2009 has been a very challenging  year for container port operators and we are pleased that we have delivered somewhat better results than the industry due to our focus on emerging markets which have remained  more resilient to the global downturn.

              “As anticipated, all our regions handled more containers in the second half of 2009 than in the first half and the early signs of sta bility seen in the third quarter have continued into the final quarter of the year. Customer confidence,  whilst improving, remains fragile with limited visibility for the medium term.

             “The 8 pc decline in volumes will lead to a decline in full year profit before tax3against the same period last year; however management’s focus on cost cutting and maintaining revenues has mitigated the downside and we expect to report 2009 results in line with expectations.

             We expect to see container volumes improve, we will continue to remain focused on growing revenues and managing costs to drive EBITDA forwards.”

              COIMBATORE , JAN 27: Cotton yarn exports are slowly on their path to regain lost glory, while the export turnover is still almost 20pc lower to what it was two years ago, the demand is slowly picking up and the textile mills in the country are looking forward to a further recovery in European textile industry.

             In 2009, October  witnessed the most emphatic rise in yarn exports ever since the global crisis set in 2008, Data available with Yarns and Fibres Exchange showed during the month, exports increased to Rs 661 crore, up by 12 over the previous year. The statistics with Southern India mills Association (Sima) also showed that US $ 1243 million worth cotton  and blended yarns was exported during April to December 2009. “Though we haven’t yet reached the previous high, the demand for yarn is improving  globally and we see a good revival,” said Confederation of  Indian Textiles Industry (Citi ) & Textile Export promotion Council (Texprocil) ex-chairman & GTN Textiles MD B K Patodia.

               He said, as Japan and highly developed countries in Europe have stopped manufacturing primary textile products and began to concentrate on niche products, their requirement of yarn has grossly come down. But, the demand for Indian yarn is growing in traditional markets like Bangladesh and Korea. Even in China, the requirement is increasing from India. According to Yarns and Fibres Exchage research, Bangladesh, South Korea, Brazil, China, Turkey, Italy and Peru accounted for half of yarn exports from India in October 2009,  which was worth US $56 million.

                 There is also a paradigm shift in product type. Since, the mills are concentrating on Asian markets and Far East countries, they have started producing more of fine medium coarser counts rather than super fine counts. Currently the export demand is mainly for such quality yarns. Mr Patodia added, since domestic market is looking more lucrative now, the mills have increasingly started supplying to institutional buyers rather than concentrating on exports.

                 Citi secretary general D K Nair too felt, the surging demand from garments industry in India has created a hugemarket for quality yarns. However, he said, the export market is also looking good and asthe cotton prices have stabilised in the last one week, the industry is looking forward to better days.

                  Loyal Textiles CMD Manickam Ramasw-amy said the rupee appreciation is slightly affecting the yarn exports.

              NEW DELHI, JAN 27: EXPORTERS  have proposed switching  over to a turnover tax in lieu of income tax to reduce their administrative burden. In its prebudget memorandum to the finance ministry, exporters’ FIEO said that such a tax will dispense with all other direct taxes and exemptions including depreciation. The tax can be collected through banks at the time of receipt of foreign exchange to plug any leakage and will reduce cost of collection. FIEO also recommended incorporation of investment-linked tax incentives for the labour intensive MSME sector to enable investment in capital machinery and equipment , It further suggested enhancing the depreciation rate from 15 pc to the previous level of 25 pc.

           To provide competitive credit rate to exporters, FIEO president A Sakthivel said the rate for export credit should be fixed at 6 pc without any link to BPLR. Similarly, export credit in foreign currency may be made available at Libor plus 100 basis point which was in existence prior to the liquidity crisis. FIEO also reiterated its demand for exemption from service tax for  both exporters as well as export promotion councils and other export organisations.

              KOCHI, JAN.27: Spices exports from India will cross the $1-billion mark in the current financial year, according to VJ Kurien, chairman of the Spices Board. Till December, the country had exported spices worth $830 million , despite the economic recession.

             Kurien said in the first half of the current year, the export  sector was in troubled  waters due to the economic downturn. But, exports of chilli, coriander, mint and value-added spices picked up later, he said.

             In 2008-09, total exports touched  470,520 tonnes, valued at Rs 5,3000.25  crore ($1.16 billion). Out of the estimated trade of 850,000 tonnes (valued at $2.2 billion), India accounts for a 44 per cent share in quantity and 36per cent in value terms. The board plans to achieve exports $ 10 billion by 2020 and plans to focus on non-traditional markets like Africa and Latin America. South  Africa is expected to be an emerging market for  Indian spices  and an 11-member delegation from the country will attend the 10th world Spice Congress to be held in New Delhi, on February 3-5.

           At present, the demand from these countries is largely met through European re-sellers and the board plans to attract buyers from  these countries to sourcing markets in India. Kurien said the Spices Park at Puttady in Idukki district of Kerala would commence operation in the first week of March. The park will be a processing hub for cardamom and pepper. Spices  parks will also be coming up in Guntur (Andhra pradesh), Jodhpur, Ahmedabad and Sivaganga  (Tamil Nadu). Chindwars Spices park (Madhya Pradesh0 has already started operation. Kurien said the board had initiated a new  e-payment system for promotional schemes and subsidies to the growers.

          The Rs 240-crore pepper re -plantation scheme has evoked a good respones in Idukki district. Close to 35,000 applications the scheme in the district.

                                          INDIAN RE TO TOUCH 40 A DOLLAR

           Foreign institutional investors pumped in $1.72 billion  into debt instruments and $1.38 billion in equity flows: total FII investments adding up to $3.10 billion between january 4 and 19, 2010 As a result , the rupee has already appreciaded by around 1.28 per cent against the US dollar during the first three weeks of the year. Going by the inflows coming into the country, the Indian rupee is expected to touch 40 to the dollar by end-December or early next year.

         FII investment  in the debt instruments had gone up, as they are trying to take advantage of the higher interest rate regime in the Indian market, compared with those prevailing the developed countries, facing severe economic slowdown.

         The sharpest increase has been seen against the euro The rupee is at a 15-month high, The huge flows in debt is one point the RBI would factor in while taking decision on rates. Any increase in the rates could trigger a further inflow of foreign funds into the debt market.

                            SENSEX TARGET OF 18000 IN 2010

             A  survey by Mumbai -based investment and brokerage firm, J.M. Financial Services, shows 45 per cent of fund managers expect the Sensex to consolidate in to first quarter of calendar year  2010 and rise in the remaining three quarters. The money flowing in is likely to come from domestic and foreign institutional investors (FIIs). But insurance money could also be a big driver for the next rally. so, the Sensex could move in a narrow band in the calendar year 2010., with an upward target of 18,000 According to a survey of fund managers, Nifty forward PE would remain high at 14-16 times FY 10 valuations.

                                    GOLD PRICES UP BY 25 PC IN 2009

             Gold price rose for the ninth consecutive year in 2009 to end at $ 1,087 an ounce as against $ 869 an ounce at the end of 2008 or by as much as 25 per cent. Investment flows, dollar hedging protection and buying by Central banks propelled the yellow metal to successive new highs.

             Gold prices may continue to rise this year due to persistent threast over financial recovery of the developed economies and concerns over the inflation. Investment in gold is considered as a safe hedge against inflation.

             According to the superfund-a global -managed futures fund trading in 120 commodity and financial basis -gold should trade at $ 2,000 an ounce and will double in rupee terms over the next 3-5 years due to global  inflation and potential for hyper inflation in industrial, high-debt countries.

             Silver will have more volatility than gold; but the upside potential is higher. Gold to silver ratio is very high over the past 5,000 years, the ratio was 15.1 but now it is more than 60. This is expected to correct. silver should  be trading at $ 60 per ounce. But it will not be a surprise if it hits $ 70-80 in the next 3-5 years.

                                      CORE SECTOR GROWS BY 6 PC IN DEC ‘09

                Core sector grew to a four-month high of 6 per cent in December 2009 as against 0.7 per cent a year ago on the back of robust growth in crude oil (1.1 per cent as against minus 0.3 per cent last year), electricity (5.4 per cent against 1.5 per cent) and finished steel production  (9.6 per cent against minus 8 per cent).

               The core sector performance in December 2009 was even better than the 5.3 per cent clocked in November 2009 and suggests that the industrial growth could improve from 11.7 per cent in  November 2009. While all six sectors registered a positive growth, the growth in petroleum, coal  and steel was lower than the previous month.

              The core sector registered a 4.8 per cent growth during the first nine months (April-December) of 2009-10 compared with 3.2 per cent in the corresponding last year, as per the data released by the Ministry of Commerce last week.

              Despite the core sector performing well, economic growth may come in lower than expected  because of low farm sector production, The third quarter GDP growth would be in the range of 6 per cent of 6.5 per cent. The economy had grown by 7.9 per cent in the second quarter (July -September) of 2009-10, and raised the expectation of a near 8 per cent growth in the current fiscal.

              The higher core sector data comes at a time when the centre is mulling an exit the stimulus measures it announced after the global financial crisis hit growth. According to the Chief Economic Advisor, Mr Kaushik Basu, India is likely to return to the 9 per cent growth rate trajectory by the end of the next financial year (2010-11

                           FOREX RESERVES  UP BY $ 899 MILLION

                India’s foreign exchange reserves increased by $ 899 million to $ 285,161 million during the week ended january 15,2010, according to the Reserve Bank of India Bulletin; Weekly Statistical Supplement.

               Foreign currency assets of India surged by $ 853 million to $ 2,60,259 million ; SD Rs b $ 36 million  to $ 5,181 million. Gold reserves during the week under review remained at the previous week’s level of $ 18,292 million.

                                    FOOD INFLATION EASED TO 16.8PC

                  Annual food inflation, based on the wholesale price index (WPI) eased marginally to 16.81 per cent for  the week ended in january 9,2010, even as price rise in items such as potato and pulses continued to remain high. Food inflation for the previous reported week was recorded at 17.28 per cent on a year-on year basis. It was at 11.59 per cent during  the corresponding week last year .

             In December 2009 food inflation had reached 20 per cent, the highest in a decade.

                               SENSEX SNAPS FOUR-WEEK WINNING STREAK

                   The BSE benchmark Sensex snapped its four-week winning streak and dropped by 695 points last week to close below the psychological 17,000-mark on all-round selling pressure, following disappointment from key  corporate earnings amid a weak trend in the global markets. global stocks tumbled after the US president Barack Obama proposed new restrictions on banks, which would  prevent bank /financial institutions from investing in, owning or sponsoring a hedge fund or private equity fund, Golbal markets had alreday recoiled in recent weeks on fear that demand from China would slow down as Beijing taps the brakes on its roaring growth to stave-off inflation and to keep the economy from over-heating.

         NEW DELHI, JAN.26: THE Union government proposes to ease the norms for foreign direct investment (FDI), the Commerce and Industry Minister, Mr Anand Shaema, said here.

      At present, projects worth more than Rs 600 crore (Rs 6 billion) require the final approval of the Economic Affaiirs (CCEA).

          The Department of Industrial policy and Promotion (DIPP) has proposed that this ceiling be raised that this ceiling be raised to anywhere between Rs 1,000 crore (Rs 15 billion).

         The new norms are likely to be notified after the introduction of a consolidated FDI policy framework on April 1. Projects below the threshold would get their final approval from the Finance Minister after they have been cleared by the Foreign Investment Promotion Board (FIPB).

           According to the current norms, any FDI infusion, irrespective of its size, into projects worth above Rs 600 crore requires a formal clearance from CCEA after it is passed by FIPB under the Ministry of Finance. This is mandated in press Note 7.

          When implemented the norms are expected to benefit companies across all verticals from telecom, retail, air lines, banking and financial services that view India as one of the prime investment destinations.

          Even as FDI  inflow has been rising since 2000, it still does not play a significant role in capital formation, according to recent report by the Organisation and Development (OECD).

            Last month, Mr Sharma had unveiled a draft consolidation of the FDI policy. It aimed to bring greater clarity by replacing all 177 press notes outlining the guidelines and making it investor friendly. The draft guidelines were relased for consultations with stakeholders till jananuary 31.

            It would be finalised by March 31. The new policy would then come under interministerial review every six months.

           FDI inflows increased to $27 billion in 2008-09 from $3.2 billion in 2004-05.

              During April-September 2009-10 FDI inflows totalled $15 billion. The government has set a target of achieving $50 billion FDI every year by 2012 and $ 100 billion by 2017.

         NEW DELHI, JAN 26: WITH just a couple of months for the fiscal to end, the Railways has hiked its freight target for 2009-10 to 900 million tonnes, from 882 million tonnes estimated in the Budget , a Railway Ministry official said.

         The Railways has notched up a double-digit growth in various key commodities like coal and cement in the last few months following brisk industrial activity.

         The official explained that if the current trend continues. it may be possible to load even more than 900 million tonnes.

          While freight haulage grew at a rate of 6.45 per  cent during the six months of 2009-10, if increased by nearly 10 per cent since October 2009.

            While presenting the Rail Budget last year, the Railway Minister, Ms Mamata Banerjee, had said that the freight target set earlier in the interim Budget in February was not sustainable and warranted a mid-course correction.

             In order to achieve the new target of 900 million tonnes, the Railways has decided to improve utilisation of rolling  stock, both wagons as well as locomotives.

              Electrification of rail-links and improved output at its workshops expected to help attain the increased target. The demand for almost all commodities , including iron ore, foodgrains and containers, has increased.

              The Railways has already earned Rs 42,489 crore from freight alone during April-December 2009, an increase of nearly 9 per cent compared to Rs 39,088 crore in the corresponding period of 2008-09.

              Ms Banerjee expected earnings to be Rs 58,525 crore in 2009-10 with the transport of 882 million tonnes.

      SINGAPORE, JAN 26: In sharp contrast to the same time last year, the more familiar refrain of lines raising container freight rates and shippers crying foul is starting to emerge again.

      Seen as an arbitrary, rate hike, Asian Shippers’ Council (ASC) has condemned the move by the Transpacific Stabilisation Agreement (TSA), which groups major container shipping lines on the key Transpacific trades, to implement an Emergency Revenue charge (ERC) of  US$ 320 per TEU and US$400 per FEU.

       ‘We are astounded by TSA’s planned ERC.’ said ASC convenor for Greater china, willy Lin, ‘What good are service contracts if shipping lines can just alter them without proper consultation with shippers?’ he asked.

        TSA lines say they are negotiating with customers depending on whether contract terms allow adjustments, and seeking to negotiate reopening of contracts that do not provide for interim adjustments. ASC however says that smaller shippers will be disadvantaged in these negotiations because they hold less clout than these big contract shippers.

         The ERC will expire upon execution of new contracts in 2010. This extra charge is in addition to a general rate increase (GRI)  of US$800 per FEU for West Coast port-to-port and local cargo, and US$1,000 per FEU for all other all-water and intermodal shipments, announced in October. The GRI will be applied to early bids or new contracts starting before May 1. Trans-pacific contracts are typically negotiated around May.

        “Transpacific  shipping  lines have announced an emergency revenue programme for the first half of 2010, in an effort to obtain critically needed revenue prior to the usual service prior  to the usual service contracting season that begins for most carriers and their customers in May 2010,’ TSA said.

          The lines grouped under the discussion forum, which includes heavyweight player Maersk as well as other major lines such as APL, Hapag-Lloyd and Mediterranean shipping Co (MSC), say that ‘With every major transpacific carrier suffering massive losses reaching into the hundreds of millions individually, and estimated at $20 billion collectively for 2009′, they cannot afford to sustain current rates for another six months until the new round of contracts is signed.

          ‘Taking this step now, as many shippers face the stress of an economy that is still a long way from recovery, is not what carriers would have preferred,’ said TSA chairman and APL parent Neptune Orient Lines CEO Ron Widdows. ‘But without some  improvement in the economics of this trade in the very near future, they will be left with some very tough choices that involve either moving even more aggressively to individually consolidate or reduce the number of sevices now offered, or incur further losses that in the longer term are simply not sustainable.

             According to ASC’s records, TSA -Imposed surcharges since the beginning of 2009 have pushed the all in freight rate for a 40-foot container from Singapore to the US West coast from US$1,500 in early 2009 to US$2,500 in 2010  pre-ERC. With economic recovery still in the early stages, a 16 per cent increase over and above all the other surcharges over the past year ‘is clearly unacceptable’ ASC contends.

              ASC chairman John Lu said that while almost the same lines are active in the Far East-Europe trade, the banning of shipping conferences in Europe has prevented a similar arbitratry rate rise. ‘We want to call on Asian governments to take decisive action to remore the anti trust immunity accorded to shipping lines, By allowing liners to continue to organise, they are jeopardising the viability of millions of shippers across the continent, said Mr Lu.

            The lines meanwhile say the rate rise is about survival. ‘We ‘re looking at the ERC as a bridge to get carriers though the first half of 2010, recognising that the current rate levels do not adequately cover the cost of operating assets in this trade.’ said Evergreen Marine president and TSA executive committee member jack Yen. ‘Without this additional revenue, along with further steps to lower operating costs, carriers will continue to lose millions of dollars on a daily basis,’ he added.

           The ultimate arbiter however will still be the market, while freight rates have been creeping up over the year, volumes are still down about a third from normal levels. With the first quarter being a traditional slow period for the lines it remains to be seen whether they can actually make the planned surcharges stick.

       NEW DELHI, JAN.26: DP World Ltd, the port operator whose parent Dubai World is restructuring debt, said it bought Royal Dutch Shell plc’s remaining stake in its planned London Gateway port project for E 136 million (S$304 million).

      DP World also decided to proceed with the construction of ‘essential infrastructure’ for the project, the company said in a regulatory statement. The London Gateway project involves redeveloping a former oil refinery on the River Thames at Thurrock and building a deep-water port.