Shipping


Security concerns delay Indo-Lanka ferry
A host of vessel operators, including one which has plans to deploy a converted warship, are getting ready to launch passenger ferry services between south India and Sri Lanka across the Palk Strait, but security concerns are believed to be holding up the initiative.

The operators are banking on cheaper fares and big baggage allowances to entice travellers away from airlines, despite the length of the voyage between Colombo and Tuticorin, on India's east coast, being over six hours on even the fastest available ferry.

At least three Sri Lankan firms and several Indian ones are believed to be interested in operating ferry services for which the two governments are negotiating a memorandum of understanding.

The MoU has been delayed by several months despite visits to India by Port Development and Shipping Minister Rauff Hakeem for talks with Indian ministers.

Some shipping officials said the delay appeared to be only procedural with many approvals being required between India's provincial and central governments.

However, Indian Shipping Minister Ved Prakash Goyal was reported last week to have confirmed that there was a snag in talks on the ferry service with the defence ministry. He is reported to have expressed the hope that the hitch will be removed in two or three months.

The Indian coast guard is also reported to have reservations about having passenger ships plying between the two countries.

Part of the delay was because the port of Tuticorin, which handles mostly cargo, was not geared to handle large numbers of passengers although it has now modernised and expanded its infrastructure.

Colombo has long had facilities to handle passengers. The Sri Lanka Ports Authority, the Customs and Immigration authorities are refurbishing their facilities to handle large numbers of passengers. Colombo also has a new cruise ship berth built by South Asia Gateway Terminals which operates the Queen Elizabeth Quay container terminal.

"There is tremendous demand for the ferry service," said SLPA chairman Parakrama Dissanayake. "We're now refurbishing our passenger jetty to cater to a large number of travellers. Immigration and Customs officers will be stationed there on a full time basis."

The Tuticorin Port Trust announced last November that it had received government approval for the service, but its launch was postponed indefinitely, despite the port's preparation of a berth, passenger amenities, customs, immigration and foreign exchange facilities. It also upgraded security measures.

Reports said that while various Indian ministries had cleared the proposal, the defence authorities had raised questions over national security, in the context of the growing threat of terrorism in the region.

One of the Sri Lankan companies preparing to launch the ferry service said it plans to acquire an ex-Royal Navy destroyer converted to be used as a passenger ferry in the Philippines.

This vessel is capable of carrying 450 passengers and operating throughout the year, even during monsoon weather, said S.M. Godwin, who represents a consortium formed with two big players in the industry whom he declined to identify at the moment.

The ship has three decks, airline-style seating and a speed of 25 knots, allowing it to do the run between Colombo and Tuticorin in 7-8 hours, he said. They will offer a baggage allowance of 100 kg compared with only 20kg in airlines.

Another operator, Greenlanka Shipping, has already advertised its service which it plans to launch using the City of Trinco ferry that operated between Trincomalee and Jaffna when road transport was not possible. This ferry is slow - capable of around 12 knots - and the trip to Tuticorin could take about 14 hours. Another player interested in operating a ferry is Expo Lanka.

Godwin said his firm would charge $70 or around Rs 6,700 for the roundtrip and that they want to attract part of the huge and expanding flow of passenger between the two countries who now travel by air. The cost of the airfare is about Rs. 15,000.

"We're aiming at students and devotees. There are 32 flights between India and Sri Lanka each week with each flight having 280 seats," Godwin said. "The flights are always fully booked. It is very difficult to get a seat."


More super post-Panamax cranes for QEQ
South Asia Gateway Terminals (SAGT) last week took delivery of two super post-Panamax quay gantry cranes, the last of six brand new cranes of this type ordered by the terminal operator.

"SAGT marked another important date in its calendar of development when two additional super post-Panamax gantry cranes arrived at their berth," a company spokesman said.

"These cranes will provide the necessary firepower for SAGT to surge ahead of any competition in the region."

The two quay gantry cranes will complement the four super post-Panamax gantries that are already in operation at the Queen Elizabeth Quay operated by the international consortium led by P&O Ports.

"These super post-Panamax gantry cranes are fitted with the latest electronic and control systems to provide maximum productivity and ergonomic design for the comfort of the operators," he said.

The sophisticated data communication capability of these cranes provide for real-time data transmission and real-time performance monitoring to obtain maximum efficiency, he added.


Malaysian ports need $1.1 bln investment to expand
KUALA LUMPUR (AFP) - Malaysia's ports need investment of more than a billion dollars to raise capacity and win a greater share of global trade, a report said.

Malaysian ports had grown from handling one percent of world trade to three percent and must seek to raise their share to four to five percent, Transport Minister Ling Liong Sik was quoted as saying by The Star.

In 1995, Malaysian ports handled only 2.5 million boxes or twenty-foot equivalent units (TEU) but presently handled nine million TEUs, of which a major part were transshipment boxes, he said.

"Soon there will be 300 million boxes in the world and we must strive to achieve at least four percent, if not five percent of this volume which is 15 million boxes," Ling said.

"To achieve this, we need to invest four billion ringgit (1.1 billion dollars) more to increase our terminal capacity and ensure we have trained staff to move the additional volume." Malaysia's main Klang Port has jumped from 26th largest port in the world to 12th in the last two years, and Ling said the Port of Tanjung Pelepas (PTP) would soon be among the world's top 20.

PTP, which is in southern Johor state just across the narrow Tebrau Strait from Singapore, last week said it grew 30 percent year-on-year in 2002 and aimed to repeat the growth this year.

Singapore, which lost Denmark's Maersk Sealand and Taiwan's Evergreen Marine to PTP last year, has overhauled its shipping strategy, including cutting handling fees and offering shipping lines the opportunity to run their own berths.


Mineral sands shipments set to resume
Lanka Mineral Sands is looking to resume bulk shipments from its coastal mine at Pulmoddai on the northeastern seaboa-rd.

The company has called for international tenders for the mineral sands stockpiled in its godowns at Kanijapura in Pulmoddai, officials said.

Stocks consist of 60,000 tonnes of ilmenite, 60,000 tonnes of crude zircon and about 1,000 tonnes of rutile.

The company has had to stop mining because all the godowns at Pulmoddai are full. The stockpiles built up after bulk shipments were suspended in September 1997 when the Sea Tigers sank a bulk carrier filled with ilmenite.

Since then, small quantities of rutile and crude zircon brought by road have been exported in 40-kg bags through Colombo port mostly to China, India and the United Kingdom.

Mineral sands at the Pulmoddai mine are known to be rich in ilmenite, monazite, rutile and zircon.

Lanka Mineral Sands expects to resume shipments with the end of the north-east monsoon around mid-April. Shipments are not possible during the monsoon months because Pulmoddai does not have a sheltered anchorage.

The sand is taken by barge and loaded on to vessels anchored offshore.


SAGT handles record box volume
South Asia Gateway Terminals (SAGT) handled a record throughput of 560,000 TEUs (Twe-nty-foot Equivalent Units) last year, up 69 percent over the volumes handled in the year 2001.

"This is a record achievement considering the fact that Sri Lanka's first and only private terminal operator was operating with only 3.5 (three and a half) quay gantry cranes during the year 2002," a spokesman said.

The terminal operated with two quay gantry cranes with effect from February and a fourth crane was brought into operation in September. The available berth length was only 650 metres.

Industry officials said the achievement indicated that the privatization of the QEQ had paid dividends and the new terminal operator setting the necessary benchmarks for the government-controlled terminal to follow.

The record performance will also help give a boost to the port of Colombo to enhance its volumes this year and attract the attention of main line operators.


PTP aims to repeat 30 percent growth this year
KUALA LUMPUR, (AFP) - Malaysia's Port of Tanjung Pelepas (PTP) said it was confident of repeating last year's growth of 30 percent and has embarked on an expansion program to lure more investors.

PTP, which is in Johor state just across the narrow Tebrau Strait from Singapore, handled 2.66 million twenty-foot equivalent units (TEU) last year, up 30 percent from 2001 and surpassing its own estimate of 2.5 million TEUs.

Transhipment containers made up 95 percent of last year's volume, while five percent was local exports and imports, it said in a statement.

PTP attributed the strong growth to new markets for cargo and its success in luring Denmark's Maersk Sealand and Taiwan's Evergreen Marine to shift their regional hubs from Singapore to PTP.

Chief executive Sidik Shaik Osman said the growth, amid volatile economic conditions, moved PTP closer to its target of being the premier transshipment centre in the region.

"On targets for year 2003, PTP is confident of achieving a further 30 percent year-on-year growth," the statement said.

The port has begun its phase two construction, which involves dredging and reclamation for another eight berths and the construction of two new berths, which will enable it to handle six million TEUs annually by early 2004.

Sidik said the port aimed to aggressively woo investors to its industrial free zone park, set to be launched this year.

PTP's growing competitiveness has prompted Singapore to overhaul its shipping strategy, including cutting handling fees and offering shipping lines the opportunity to run their own berths.


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