The Economic Survey has suggested a further stimulus boost for exports despite the global economic recovery.

    “… While the global recession seems to be lifting, a note of caution is needed as recovery of trade is still vulnerable and fragile given the fact that it is mainly government support and policy driven… Besides, the turnaround in trade growth is largely due to the lower base effect of the last year (2008) which was in fact a lost year on the trade front as the progress in export sector of earlier years was mercilessly frittered away by the onslaugh of the global recession,” the survey said.

    Even as the government hints at a gradual withdrawal of the stimulus packages, the survey suggested further reduction in excise for exportoriented industries. For the merchandise sector, it suggested fundamental policy changes that include more tariff reforms through lowering of peak duties (custom) from the current 10% to 7.5% Also, it sought reduction of trariffs on all capital goods to a uniform 3% and further reduction in excise duties to make exports and industry competitive.

   The government had cut excise duty from 14% to 8% and service tax from 12% to 10% in the wake of the globalfinancial slowdown. India’s exports, after falling for 13 consecutive months since October 2008. turned positive from November 2009, But in April December period, exports were down by 20.3% .

   The survey  said the early signs of pick -up in out put , industrial and trade growth in India and other countries, are due to the low base and are even lower than the absolute values of the pre-crisis period.

   “The downside risks for world and Indian trade lie in the fact that though the fall has been arrested, both output and trade recoveries are still fragile as recovery has been pumped up by  stimulus by different countries including India, effects of which may dry up if natural recovery doesnt follow.”

    NEW DELHI, FEB 25: The average turnaround time of major Indian ports continues to be way below the desired average, undermining the competitiveness of Indian Ports, Economic survery said on Thursday.

   “Despite adequate capacity and modern handling facilities, the average turnaround time of major India ports was 3.87 days in 2008-09, compared to 10 hours in Hong Kong. This under mines the competitiveness of Indian ports,” said the Economic Survey 2009-10, tabled in the Parliament. As one of the remedial measures, it has called for better connectivit of ports with hinterland to avoid congestions and faster movement of goods.

   “Since ports are not adequately linked to the hinterland, the evacuation of carge is slow, leading to congestion,” the survey said, It added, however, that all port trusts have set up groups with representatives of the highways authority, railways and state governments to improve rail-road connectivity of ports. The survey noted that the pre berthing waiting time at major ports, however, showed an improvement from 11.40 hours in 2007-08 to 9.55 hours in 2008-09.

   But it added, “Singnificant inter-port variations in pre-berthing waitng time persisted.” India has 12 major ports that carry about 75 pc of the total traffic and 200 non-major ports, of which 66 handle traffic.

   The Survey said that annual aggregate cargo handling capacity of major ports incrased from 532-07 million tones in 2007-08 to 574.77 million tonnes in 2008-09, with a marginal decline in turnaround from 3.93 days.

   However, the growth in cargo handling in 2008-09 was just about 2.1 pc, compared to 12 pc in 2007-08. The containerised traffic, which carries about half of the world’s traded goods, has shown an impressive annual The survey said that annual aggregate cargo-handling capacity of major ports increased from 532.07 million tonnes in 2007-08 to 574.77 million tonnes in 2008-09, with a marginal decline in turnaround from 3.93 days.

     However, the growth in cargo handling in 2008-09 was just about 2.1pc, compared to 12 pc in 2007-08.

    The containerised traffic, which carries about half of the world’s traded goods, has shown an impressive annual growth of over 11 pc during the five years to 2008-09. The survey said that privatisaion of ports has gathered momentum and the governement has put in place an enabling policy framework which includes areas like service and management contracts.

     Besides, it added, “Areas that have been opened up to the private sector on BOT (Build, Operate and Transfer) basis include construction of cargo-handling berths and dr docks, container terminals and warehousing facilities and shiprepair facilities.”

              MUMBAI, FEB 25: BOOKING oftankers to export fuels from  the West Coast, home to two Reliance Industries Ltd (RIL) refineries, reportedly rose in February with more petrol sold to the US.

             Shipments of at least 1.07 million tonnes, or about 9.1 million barrels of oil products, are estimated to have left the West Coast so far this month for places such as Japan, the US, and the UK, up from 760,000 tonnes in January, according to shipbookings data compiled by top shipbroker, Clarkson Research Services Ltd.

            At least three tankers were booked to move 180,000 tonnes of unleaded petrol to the US Atlantic coast, the data showed. No US-bound takers were booked in January.

          “Demand in the US is probably the big driver, not particualr policy changes in India,” observed Ms Seema Desai, an analyst.

         Japan, the world’s second biggest oil importer after the US, was the largest destination of fuel exports, receiving at least 10 tankers that carried 405,000 tonnes of fuel so far this month. Japan received 445,000 tonnes  of fuel from India in January.

        RIL started an export-oriented 580,000-barrel-a-day refinery in December 2008. It is next to an older plant that can  process 660,000 barrels a day. Together, they are touted to be the largest refining complex in the world.

       In 2009, RIL became one of top 10 charteres of Aframax tankers to ship petroleum products, according to a report. Aframaxes can carry 637,500 to 1.02  million barrels of fuel.

    NEW DELHI/MUMBAI, FEB 25: CONTAINERISED sea  trade is apparently booming once again! Figures released by the Indian ports’ Association (IPA) for  January this year reveal that container volumes increased by 31 per cent across all the Major Ports during the month to 6.08 million TEUs, as against just 4.65 million TEUs in January 2009.

   This growth was mainly driven by Jawaharlal Nehru port (JNP), which registered 30 per cent growth during the period, while chennai port grew by 36 per cent.

   An industry player observed that the the steady improvement in containertraffic was positive for  container freight stations (CFSs) and railway transporters  (box operators) in the medium term.

  “we expect container volumes to remain buoyant, partly aided by the low -base effect during the same period last year,” he added .

   Over 6 Major Ports registered a double digit growth in January, with the total cargo handled registering a 13.4 per cent growth at 51.3 million tonnes, as against 45.2 million tonnes in December 2009.

  Major ports’ traffic was mainly driven by Paradip, Mormugao Kolkata, Tluticorin and New Mangalore Ports, which registered growth between 25 per cent and 43 per cent year -on-year.

  With a revival in the global demand, the sector is once again expected to see boom times, although the pace of growth may beslow.

   The increase in cargo volumes was mainly driven by a 47 per cent growth in coal volumes year-on-year. On a sequential baisis, coal volumes increased  by 19.2 per cent. Iron ore recorded an increase of 7 per cent year-on-year.

  The ports also registered an overall cargo growth of 463.2 million tonnes for the period ending January 2010 compared to, 437.1 million tonnes in the corresponding 10 months of 2008-09.

   Rotterdam, the largest port in Europe, announced final year end results, which where slightly higher than the provisional figures previously announced, with a lessening of the decline to 8.1 pc compared to the 8.5 pc drop previously announced. This added two million more tonnes throughput to the 2009 total. The increase was tonnes  hroughput to the 2009 total. The increase was attributed to crude oil imports which declined less that preiously anticipated.

       NEW DELHI, FEB 25: Shipcontainer volumes from Asia to Europe grew by nearly 10 pc year-on-year in December, staging the biggest monthly increase in 2009 and indicating a recovery in seaborne trade, data showed.

       The global downturn has hit the container sector hard especially on key routes from Asia to consumers in the West carrying finished goods from electronics to toys. Data from the Brussels head quartered European Liner Affairs Association (ELAA) industry group, showed westbound volumes to Europe from Asia rose 9.47 pc in December 2009 to 1.009 million TEUs in December 2008. Container trade is measured in TEUs.

    December was the second month-on-month rise in 2009 after November, which posted a 2.52 pc rise.

   “Westbound December 2009 recorded the highest monthly figure for 2009, breaking the million box mark for the first time in 2009, ” the ELAA said in a statement. The ELAA said it should be noted that the December figure was being compared with December 2008, “a time the shipping industry was dipping deep into recession.”

    “Having said that, there is little doubt that the figures show signs of a strong recovery,” it added.

     The last time container volume on that route rose above 1 million TEUs was in October 2008, the ELAA said “December shows that the trade is coming back,” Rod Riseborough of the ELAA said.

    Container volume for the fourth quarter was down 0.05 pcat 3.029 million TEUs versus 3.031 million TEUs in the same period TEUs in the same period in 2008. Total year-on-Year volumes on the west bound Asia route to Europe in 2009 were down 14.77 pc at 11.501 million TEUs versus 13.494 million TEUs in 2008. Westbound trade to Europe from Asia is primarily driven by consumer goods bu also include manufactured items such as car parts. items such as car parts. Exporting countries include china, south Korea and Japan and exclude India and Australasia. Separately, the ELAA said eastbound trade from Europe to Asia jumped 46.97 pc year on year in December to 543,286 TEUs –the highest monthly volume in 2009 and 2008. Volume rose 30.17 pc in the fourth quarter versus a year ago and was up 4.5 pc for the whole of 2009 versus 2008.

      Trade is driven by paper and plastics exports from Europe . “The big growth is east bound and it is very substantial,” Riseborough said, There was increased optimism among operators in the liner sector , but added there was still significant overcapacity which would continue to “put pressure on charter rates.”"” The idle fleet still remains high at 10.4 pc of the total cellular fleet with a significant number of fresh diliveries expected in 2010 that could add to the overall capacity surplus,” it said in a report.

      NEW DELHI, FEB 25: India has topped the list of export markets for Dubai for the second consecutive year with a share of 40.6 pc at 21.3 billion dirhams (Rs 268,348 billion). Switzerland comes next as Dubai’s second largest export market with a share of 16.6 pc at 8.7 billion dirhams (Rs 109.6 billion ). Saudi Arabia is third, followed by pakistan and Iran.

    Among the most significant goods and products Dubai exports to the  aforementioned countries is gold, which again finds the largest market in India. Dubai’s exports of scraps and metals to India value 693.371 million dirhams (Rs 8.32 billion). The Emirate’s non-oil direct exports grew at an average rate of 23 pc in 2009 compared with 2008. The value of exported goods through all Dubai customs entries amounted  to 52.4 billion dirhams (Rs 629 billion ) in 2009 against 42.6 billion dirhams in 2008 (Rs 511.2 billion). while growth rate over the past five years reached 47 pc

  Ports, Customs and Free Zone Coporation Executive Chairman, Ahmed Butti Ahmed said the UAE adopted a strategy with respect to diversifying production base and economic activities, besides reinforcing trade and economic relations with other countries, which played a major role in attracting investment.

    KOLKATA, FEB 25: Inidan Railways’ incremental freight traffic of 54 million tonnes (mt) as projected for 2010-11 will be lower, marginally though, than the 57 mt projected for 2009-10, In 2008-09, the originating revenue-earning freight traffic was 833 million tonnes (mt) and the throught in the current fiscal (2009-10) , according to the Railway Minister in her Budget speech for 2010-11, will be 890 mt.

   The target for 2010-11 has beet set at 944 mt. But then it is not difficult to guess why. The capacity to move additional revenueearning freight traffic has virtually reached saturation point, more so when so may new passenger trains are being introduced every year with no increase in passenger fares.

  The Minister has announced dedicated high speed passenger corridors (Without caring to examine such service) even as the future of dedicated freight  corridor remains in limbo.

   Ms Banerjee is aware that not everything is hunky-dory on the freight front. She refers to complaints regarding allotment of rakes. particularly for transportation of iron ore, and to takle the problem, promises transparency in allotment and monitoring by no less a person that the Member (Traffic).

    the roll-on-roll off concept, earlier introduced in the konkan Railway, is proposed to be introduced in the zonal railways. However, the costing and pricing models of the Konkan Railway cannot be replicated in the Indian Railways where, thanks to huge overheads, the unit cost per-tonne km of freight is much higher.

   The Railway Minister promises to provide multimodal door-to door service on a trial basis. Inquiries reveal that trial runs in partnership with the Container Corporation of India providing first -mile and last mile connectivity have already taken place.

  The proposal to introduce a premium tatkal service for parcel and freight movement amounts to colecting additional revenue  through the back door.

  There is also a proposal to introduce a modified wagon investment scheme for high-capacity general and special purpose wagons. to facilitate movement of iron ore, coal and cement. It may be noted that the Wagon Investment Scheme was introduced, withdrawn and replaced by another scheme for which there were hardly any takers, and the Terminal Incentive Cum Engine Load Scheme was put on hold.

   There is also a proposal to allow private operators to invest in infrastructure on the lines of container train operators, and runspecial freight trains for commodities such as auto-mobiles, vegetable oils, molasses, chemicals, petrochemicals, fly ash and cement. That  the transportation of containers by rail, thrown open to private operators three years ago, has achieved limited success is now known to many.

  The Railways propose to earn Rs 62,489 crore from freight in 2010-11, up from the revised estimate of Rs 58,176 crore for 2009-10. One should not be surprised if during the course of the year, additional freight revenue is sought to be mopped up through various manipulations such  as changing classification, tinkering with the minimum chargeable weight and modifying the carrying capacity of wagons.

         MUMBAI FEB 25: The shipping corporation of India (SCI) proposes to hike freight rate on the west bound trade from India to Europe as part its rate restoration initiative Effective March 1. the proposed increase will be $250 a  TEU and will apply to all cargoes moving from India to North Europe, the UK, the Mediterranean and the Black Sea prots, it is learnt, Only recently on February 4, SCI announced a similar freight rate increase on the same route. Separately, SCI, it is further learnt, will also increase its “line security sucharge ” imposed earlier on all cargoes moving to and from India, on the ground of increased security-related costsat Various ports. Effective March 1, the line security surcharge will be $10/TEU against $7 at present.

   Meanwhile, CMA CGM, has announced that it will raise freight rates on the west bound trade, i.e. from Asian ports including Japan and south East Asia and the Indian subcontinent to prots in North Europe, the Mediterraneam and the Black Sea with  effect from March 15. The extent of increase will be $200/TEU and will apply to all cargoes and commodities. United Arab shipping too has announced freight increase fromAsia to East Mediterranean destinations starting March 1 and the increase will be $ 250/TEU for both dry and reefer cargoes.

    NEW DELHI, FEB 25: The pre-Budget Economic Survey on Thursday  favoured providing further stimulus for the exports sector, arguing that the recovery prospects in global markets are still fragile.

  It said that despite some improvement in global trade environment, the downside risks makes itimperative for the Government to reform policies concerning imports as well.

 ”The downside risks for the world and the Indian trade lie in the fact that though the fall has been arrested, both output and trade recoveries are stil fragile given the fact that the recovery has been pumped up by the stimulus given by different count ries, including India, ” the Survey said.

  Amid the debate on withdrawal of the stimulus, including speculation of a possible across-the-board rollback of cuts in excise duty  and service tax, the document suggested fur ther reduction in excise for export oriented industries.

  For the merchandise sector, some fundamental policy changes are needed “….these include further tariff reforms by lowering the peak duties (custom) from the present 10 pc to 7.5pc, reductions of tariffs reduction in excise duties to make exports and industry competitive.” The Government had cut excise duty from 14 pc to eight pc and service tax from 12 pc to 10 in the wake of the global financial slowdown. India’s exports, after falling for 13 consecutive months since October 2008, turned positive from Novermber 2009. But in April-Decmber period,  exports were down by 20.3 However, the Survey pointed out that the early signs of pick-up are due to low base and the export value is even lower than the absolute value of the precrisis period. It also expressed concerns over the leading economies like the US resorting to protec tionist measure.

   “The high employment rates in some developed countries forcing even world leaders like the US to resort to protectionist measures, as in the case of the recent tax breaks for compaines giving jobs in the US, could give worng signal,” it said. The Survey further  said that the extraordinary financial stimulus given by different countries, including India, have contributed to the recovery.Imports growth of some of some of India’s trading partner like china, Hong Kong and Japan were encouraging in December 2009.  While China’s imports from India grew by 71 pc in December 2009, Japan imports went up by 3 pc. Growth in Hong Kong imports from India turned highly positive at 58.5pc. “Even in the case of the US, which is still registering negative import growth, the extent of negative growth has become less, with imports from India growing at (-) 10 pc in November 2009,” it said.