This has resulted in marginal improvement in freight rates, but this could soon come under the cloud from rising new ship orders.
Though the supply side pressure has eased across segments and there have been fresh orders in the past 3-6 months, the order book-to-fleet ratio has remained weak.
With continuous reduction in global shipping order book, there are expectations of a stable shipping market in FY15.
However, on the flip side, few people despite seeing the recovery in the last 6 months, have placed orders at various shipyards which could reverse the rebound trajectory. Experts feel these deals will fall through once banks realise the bleak outlook of the shipping industry.
Michael Pinto, Former Secretary - Shipping , Government of India, and a career bureaucrat who has held charge at several administrative units in Maharashtra like MSRDC and MIDC, said the country's major ports have seen expansion at a slower rate.
He said the industry is facing more problems on land-to-land logistics issues, adding that Indian shipping companies have seen one of the weakest downcycle, but there is hope of revival.
Below is the transcript of Michael Pinto's interview to CNBC-TV18's Latha Venkatesh and Ekta Batra
Latha: Can you give us an idea of the port sector, are you getting a sense that the woes of the shipping industry is over, are you seeing a decent growth in trade and therefore the use of shipping lines in India?
A: It is too early to say that the woes of the shipping industry are over. Things are certainly looking up, they were very bad a couple of years ago, the time that has just passed. Infact I remember asking someone do you think there is light at the end of the tunnel and he said yes there is but it is the headlight of an oncoming train. So that has changed, it is a little better now but it is too early to say that the woes are completely over. A lot will depend on whether the excess capacity that we have can be neutralized.
Ekta: What is capacity utilization at this point?
A: On shipping typically what happens is that when you order more and more then the greater amount of tonnage that you get keeps changing the same cargo and that is the major problem that you have. Because ordering has picked up recently, there is a fear that there will be over capacity in the shipping industry.
Latha: Give us an assessment of port capacity usage both in the west coast largely Gujarat as well as in the east coast, what is the kind of usage you saw in the year that was and what do you expect in FY15?
A: In the year that has just gone by there has been a marginal increase of about under 2 percent for the major ports. But it is the non major ports that have really expanded. Earlier we used to call them minor ports. The only reason they are not major ports is that they are not controlled by the central government.
I think we are going to see an increase in the utilization of these ports. Ultimately the idea is to have a billion tonnes of capacity and that has to go up more and more. The major expansion that we are seeing is in non major ports that is why on the west coast you have Adani, Pipavav and on the east coast you have ports like Krishnapatnam, Gangavaram, Dhamra, so on. So there has been a large expansion of the non major ports. Major ports have seen expansion but at a slightly slower rate. You will notice that JNPT has not really had any expansion in the last six years. Now a project for putting up the fourth terminal has been allotted. Hopefully that will go through quickly.
Once that happens then I think we will get a larger amount of capacity and that should do well. And if you have less capacity then typically you have waiting. So if you are using more than 70 percent of your capacity then normally there is lot of waiting for ships.
Anda sedang membaca artikel tentang
Too early to say bad days are over: Ex-Shipping secy
Dengan url
http://gayafashionshow.blogspot.com/2014/04/too-early-to-say-bad-days-are-over-ex.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Too early to say bad days are over: Ex-Shipping secy
namun jangan lupa untuk meletakkan link
Too early to say bad days are over: Ex-Shipping secy
sebagai sumbernya
0 komentar:
Posting Komentar