International North South Transport Corridor (INSTC) lR;eso t;rs GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY
Federation of Freight Forwarders' Associations in India (FFFAI) (Apex Body of Custom Brokers' Associations In India )
dry run report 2014
TABLE OF CONTENTS 1. Executive Summary 2. Introduction - Terms of Reference for Study 2.1 International North South Transport Corridor (INSTC) 2.2 Main objective of the agreement 2.3 Terms of reference given by Ministry of Commerce for the purpose of Study A Route 1 : Nhava Sheva/India Bandar Abbas /IRAN - By Sea Astara/Iran - by Road Astara/Azerbaijan-by Road Baku /Azerbaijan- by Road B Route 2 : Nhava Sheva/India Bandar Abbas/ IRAN - By Sea Amirabad /Iran-by Road Astrakhan/ Russia- by Sea 2.4 Methodology Adopted 1. Physical Shipment 2. Point to point Physical meetings and study 3. Photography 4. Videography 5. Meetings 6. Conferences
3. Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC
3.1 A Route 1 : Nhava Sheva/India to Baku/Azerbaijan • Nhava Sheva/India Bandar Abbas - By Sea • Bandar Abbas /Iran Astara / Iran - By Road • Astara/Iran Astara /Azerbaijan - by Road - Border crossing • Astara ( Azerbaijan –Border) Baku (ICD) Azerbaijan - By Road) with cargo (terminate container) 3.1.1 Summary of activity, distance and cost 3.1.2 At the port of origin viz. Nhava Sheva (Mumbai) 3.1.3 At the port of transshipment viz. Bandar Abbas 3.1.4 During the movement by road from Bandar Abbas to Astra border crossing 3.1.5 At International cross border at Astara (Azerbaijan) 3.1.6 At port of destination viz. Baku ICD (Azerbaijan) 3.1.7 Map of road route from Bandar Abbas to Baku (Azerbaijan)
3.2 B Route 2 : Nhava Sheva/India To Astrakhan/Russia • Nhava Sheva --> Bandar Abbas (By Sea) • Bandar Abbas --> Amirabad (Iran) by Road • Amirabad --> Astrakhan (Russia) by Sea with cargo (terminate container) 3.2.1 Summary of activity, distance and cost
1
TABLE OF CONTENTS
3.2.2 3.2.3 3.2.4 3.2.5
At the port of origin viz. Nhava Sheva (Mumbai) At the port of trans-shipment viz. Bandar Abbas (Iran) During the movement by road from Bandar Abbas to Amirabad (Iran) During movement by sea from Amirabad to Astrakhan (Russia)
4. Micro Analysis of Resources, Potential, Availability and Limitation of Ports /Infrastructure
4.1 INDIA: A Nhava Sheva / Mumbai: 1. Terminals and facilities 2. CFSs 3. Agents and Freight forwarders 4. Lines and Operators 5. THC 6. Observation / Comments on cost reduction / Way ahead
4.2 IRAN: A Bandar Abbas: 1. Port – Terminals and facilities 2. Railway 3. Agency charges 4. Payment issues 5. Observation / Comments on cost reduction / Way ahead
B Amirabad: 1. Terminals and facilities 2. Lines and Operators 3. ICDs and CFSs 4. Agents 5. Observation/ comments and way ahead
C. 1. 2. 3. 4. 5.
Bandar Anzali Port Terminals and facilities Lines and Operators ICDs and CFSs Agents Observation/ comments and way ahead
4.3 RUSSIA A Astrakhan: 1. Terminals and facilities 2. Lines and operators 3. ICDs and CFSs 4. Olya Port 5. Traders
TABLE OF CONTENTS 4.4 Azerbaijan A Baku Port 1. Terminals and facilities
4.5 Details of Port Infrastructure
5. OPERATORS PERSPECTIVE IRAN: A. B. C. D. E. F. G. H. I. J. K.
Meeting with the Port Authorities(DG of PMO) I.R. of Iran Road Maintenance & Transport Organization Meeting with Shipping Agents Meeting with Inter Rail Meeting with the Shipping Association Meeting with ITCA Office Bearers Meeting with Railway Authorities Meeting with Customs Manager Meeting in Amirabad Port Meeting at Astrakhan /Russia Meeting at Moscow /Russia
6. CUSTOMER’s PERSPECTIVE A. B. C. D. E.
Meeting with the Chamber of Commerce. Meetings with stake holders at the Indian Embassy in Tehran. Meeting with the Russian Embassy in Tehran. Meeting with the Kazakhstan Embassy in Tehran. Meeting with the Turkmenistan Embassy in Tehran.
7. THE WAY FORWARD FOR INSTC A. Filling in the gaps on documentation issues B. C. D. E.
Establishing single Operator / Agency network in all 3 Region Identifying and Linking the Resources for Movement Restructuring the cost structure Promoting the trade at Astrakhan and shifting their base thru Moscow from St Petersburg to Astrakhan F. Linking the ECO
8. APPENDICES
Hard Copies of Brochures 1. Copies of Shipment documents – 5 pages (including Transhipment ) 2. Port of Amirabad. 3. ECO- Latest Project Report. 4. Port of Olya. 5. File made by Indian Mission in Tehran.
TABLE OF CONTENTS 6. International transport and Customs Agents Association-List. 7. Federal Agency for Maritime and River Transport. 8. Persian Gulf International Transport Co. 9. Anzali Port Maritime Authority. 10. Turkish State Railway – ECO. 11. Laws of Transit. 12. INSTC Agreement and minutes of all meetings till 2013. 13. IRAN Railways. 14. Railway Transportation Co. – Kazakhstan. 15. INSTC – Brochure by IRAN Railways.
Hard Copies of All contact details. 1. MOSCOW Inland container Depot Brochure. 2. New Article in IRAN dated 3.08.2014. 3. Olya Port Brief. 4. Amirabad Port – Transit Cargo tariff and service tariff. 5. Chabahar Port Data. 6. IRAN Railway Freights. 7. Kazakhstan Trade Data. 8. Turkmenistan Trade Data. 9. Maps. 10. India’s Trade data of INSTC. 11. Iran’s Trade data related to INSTC. 12. Traffic Data at 3 ports of IRAN. 13. List of Iranian Co.’s that attended conference held at Indian Embassy in Tehran. 14. Compilation of Important mails received during the visit. 15. Soft Copies: 16. Audio Recordings 17. Photos 18. Maps 19. Videos 20. Various Tariff and statistics
Thanks
All Countries Participants for Co-operation
1
EXECUTIVE SUMMARY
1 EXECUTIVE SUMMARY International North South Transport Corridor (INSTC) Dry Run Study Conducted during August 2014 by Mr. Shankar Shinde/ Mr. Sohel Kazani It was pleasure to participate as Indian delegates on behalf of Ministry of Commerce, Govt. Of India for the project on INSTC(International North South Transport Corridor) entrusted to our Federation of Freight Forwarders Association of India (FFFAI). The study included the detailing report on the issues faced by the Importers / Exporters /Logistics Players and other stake holders involved in the movement of cargo to Russia / CIS and possibility of diverting it on the INSTC route. The proposed INSTC route via Bandar Abbas in Iran to Russia and CIS Destination in transit through IRAN, could be the best route with optimal transit/cost for the Indian Exporters/Importers. The Member Countries signatory to the INSTC convention :INDIA THE ISLAMIC REPUBLIC OF IRAN THE BELARUS REPUBLIC THE KAZAKHSTAN REPUBLIC THE KIRGIZSTAN REPUBLIC THE REPUBLIC OF ARMENIA THE REPUBLIC OF AZERBAIJAN THE REPUBLIC OF BULGARIA THE RUSSIAN FEDERATION THE SULTANATE OF OMAN THE TAJIKISTAN REPUBLIC THE TURKEY REPUBLIC UKRAINE. It was proposed in 5th Meeting of Coordination Council 24-25 June, 2013; Baku, Azerbaijan that the FFFAI will conduct the dry run study on the above route to envisage the issues faced by the trade with two containers on two different routes. The following Two routes were decided with physical cargo container shipment Route 1 : Nhava Sheva, India to Baku , Azerbaijan Nhava Sheva – Bandar Abbas – By Sea Bandar Abbas – Baku - By Road
Route 2: Nhava Sheva , India to Astrakhan , Russia Nhava Sheva – Bandar Abbas – By Sea Bandar Abbas – Amirabad – By Rail / Road Amirabad to Astrakhan – By Caspian Sea Mr. Shankar Shinde, Vice Chairman, FFFAI
Mr. Sohel Kazani, Executive Committee Member, FFFAI
Following delegates from FFFAI -India conducted the INSTC dry Run Study 1. Sh. Shankar Shinde,Vice Chairman to study Route 1 2. Sh.Sohel Kazani , Executive Committee Member to study Route 2 The member states of International North-South Transport Corridor Project interested in North-South transport :1.
Recognizing the potential for efficient and seamless North-South transport caused by economic globalization and by ever increasing trade within the Euro Asia area
2.
Noting the progress of important infrastructure projects along North-South transport links
3.
Noting also the continuous growth of containerized transport between North and South where railways, land trans port and seaports are called upon to take a significant role,
4.
Convinced that long distance North-South transport of goods may significantly increase, if fast, reliable and seamless intermodal transport services are developed along North-South links,
5.
Aware that globalization, transport reform and opening of transport markets provide new options to reach out to transcontinental traffic and to turn North-South transport market opportunities into transport business,
6
1 EXECUTIVE SUMMARY 6.
Convinced that in order to make rapid progress towards that goal, Governments, with the assistance of international organizations, should cooperate and commit to a set of common objectives, legal principles and operational rules to provide support to transport,
7.
Aware that North-South transport involves and transits many countries, all members of the International North-South Transport Corridor, with different national transport systems and structures as well as different legal regimes governing international transport, i.e.
8.
Bearing in mind the progress achieved by the all transport modes in harmonizing and simplifying their legal framework, making it imperative to ensure comparable business conditions among all modes of transport,
9.
Conscious that different legal regimes along North-South transport links increase cost, reduce competitiveness and impede the development of effective transport operations and efficient transport business,
10. Aware of the challenges posed by transport safety and security and taking account of the technical differences that should not become barriers to the development of North-South transport; 11. Welcoming progress made through the joint activities of the Economic Cooperation Organization (ECO), the Black Sea Economic Cooperation Organization, the Transport Corridor Europe – Caucasus – Asia (TRACECA) and other interGovernmental organizations, 12. Recognizing that further steps should be taken to facilitate the conclusion of North-South transport contracts;
Members agreed with following 1. Endeavour to jointly develop and strengthen cooperation in the area of North-South transport links; 2. Strive to pursue the strategy to establish legal conditions for competing modes such as road, air, inland water and maritime transport: 3. Analysis of existing international modal transport (road, rail, air, maritime and inland water transport) and related agreements in order to identify provisions and procedures important for the establishment of unified transport operations; 4. Development of legal rules for unified transport law; 5. Support for the widest possible use of electronic document workflow and intelligent transport systems
Decisions emerging from the previous Coordination Council’s meeting are listed below which were considered while conducting the dry run. Dry-run of container on INSTC It was recommended by the Expert Group that in order to get acquainted with the N-S corridor and its missing links, a dry-run would be conducted both on the rail and road links, starting from Mumbai and going to Azerbaijan via Bandar Abbas through Iran and via Caspian Sea. This dry run would envisage dispatch of cargo on the N-S corridor and coordination between the different stakeholders of the member/ beneficiary countries of INSTC. India proposed to conduct the dry run on INSTC and complete the same by 31 July, 2013.
Missing link in the Rasht-Astara sector As regards the missing link in the Rasht - Astara (Iran) sector, issue of feasibility study was discussed. In this regard, trilateral agreement of Iran, Azerbaijan and Russia was referred to which was signed in 2004. Iran informed that they have already conducted a feasibility study of this section around 5 years back. The Chair requested the Iranian side to share the feasibility study with Azerbaijan, India and Russia by 31 July 2013 so that it could be decided whether investment decision as well as construction could be undertaken on the basis of the same. This was agreed by the Iranian side.
7
1 EXECUTIVE SUMMARY The feasibility report will be considered by all the member countries and after consideration and if found feasible both from the point of view of technical as well as financial parameters the matter regarding funding of the project can be discussed in the next council meeting. INSTC Focal Points The coordination council approved the creation of an INSTC Operational Authority equipped with requisite staff. Iran agreed to establish the focal point of the INSTC operational authority at Tehran. The names of contact persons of this focal point would be communicated by the Iranian side to the member countries within a month. The Coordination Council also recommended that INSTC focal points would also be set up simultaneously in New Delhi, Moscow and Baku for which names of contact officials would be communicated by the respective countries. All other members are requested to intimate the name of focal points of their respective countries. Information Platform for INSTC The Coordination Council agreed to set up an information exchange system for INSTC among the member countries. India proposed to take a lead on this issue. The council called all the member countries to provide necessary support for proper documentation and management of information system to the coordinating INSTC office. All member countries agreed to provide updated information on regular basis. India will take steps to provide the first framework documents for the proposed IT platform in next few months to seek comments of the member countries. Working Group on Customs A working group on customs matters will be established. Recommendations of the working group will be developed on customs facilitation along the INSTC. The countries in the working group would be – India, Russia, Azerbaijan and Iran. All other member countries may join the working group. The working group would comprise members of customs experts/representatives. The above member countries would nominate their representative/s by 31 July 2013. The first meeting of the working group will be held before the proposed meeting of Vice- Ministers. Operating agency for INSTC The House discussed that a joint venture/arrangement be formed for providing single window logistic support for facilitating trade on INSTC. This company would find solutions to all aspects of logistics support services. All interested member countries of INSTC will have stake in this company. After deliberation, the council decided that matter should be examined more thoroughly with other stake holders before a decision on this matter is arrived at. A report on this matter after discussion would be placed by the INSTC secretariat for the consideration of the next coordination council meeting. Report of Dry-run on INSTC The INSTC secretariat will prepare a report, after the conduct of a dry run of container through rail and road by Federation of Freight Forwarders Association in India through INSTC, about the problems encountered, bottlenecks in INSTC etc and place the same to the repository state for their consideration. After the report is submitted a working group to sort out the issues of transportation by road and rail should be set up. The nomination for the working group may be given by the respective countries. This report of the problems will be placed before the meeting of Vice-Ministers proposed to be held in October/November 2013. All members will be informed about the outcome of the meeting by the INSTC secretariat. Linking up with the Black Sea Economic Cooperation Turkey offered that the Ministry of Transport, Maritime affairs and Communication will provide the necessary information for linking up with Black Sea Economic Cooperation to INSTC secretariat. Considering the above challenges it was interesting to work on project , though the climate was hot during August which is the hottest month of Iran from 35 to 40 degree temperature.
8
1 EXECUTIVE SUMMARY It was tough and tiring journey but a memorable experience project with the meetings scheduled and managing the container transportation depending on situation however with the co-operation from every agency we could sail it smoothly and record things for better perspective. We would like to thank all the participating member for their co-operation and efforts to make this project a great success , We have received valuable inputs and support from Mr. Ravi Capoor Jt. Secretary, Dr. Guruprasad Mahapatra – Jt. Secretary , Ministry of Commerce, Ministry of External Affairs ,Government of India for executing this project. Also would like to thank the Executive Committee members of Federation o Freight Forwarders Association In India. It was a excellent initiatives by our Immediate past FFFAI Chairman Mr. Shantanu Bhadkamkar to participate in this valuable INSTC Expert group which was further persuaded by our FFFAI Chairman , Mr. Debashish Dutta and would like to thank for their trust shown in me and my colleague to accomplish this project. It is indeed our pleasure to have studied which has enriched our experience and we are happy to present a report on INSTC. Based on the Study and the areas that seemed to be of utmost importance have detailed below the suggestions to deal with the same.
SUMMARY REPORT ON THE INTERNATIONAL NORTH SOUTH TRANSPORT CORRIDOR Index A. B. 1. 2. 3. 4. C.
INSTC V/s the Current route Route study of INSTC and issues related to operations and solutions Infrastructure issue and service Issues Documentation issues Banking and Insurance issues Departmental issues with various Governments Potential trade for India, Iran and Russia on the route
A. INSTC V/s the Current route Current Route Mumbai – Hamburg/ Bremerhaven - St Petersburg – 8675 nautical miles. Transit Time – 30 days Rate – USD 955 to 1400 for 20ft dry container. USD 1500 to USD 1900 , per 40ft DC and USD 2000 to USD 2500 per 40ft Reefer for perishables Main Operators – Maersk Line / MSC Line / CMA CGM Line/ CSAV Line / INSTC Route Route 1 – Mumbai - Bandar Abbas(Iran) – Baku (Azarbaijan) (Truck change) – Russia Transit Time – 17 to 20 days Main operator – None, due to fragmented documentation and operations Route 2 - Mumbai – Bandar Abbas(Iran) – Amirabad/Anzali (IRAN) Caspian Sea)– Astrakhan Transit Time – 18 to 24 days Main operator – None, due to fragmented documentation and operations Route 3 – Mumbai - Bandar Abbas(Iran) – Russia via the new Rail Link upto Kazakhistan Transit Time –15 to 18 days
9
1 EXECUTIVE SUMMARY Main operator – None, due to new line, yet to notify Rail operators and their rates.
For the purpose of better understanding of the costs on INSTC it is important to note that the major exports from India are perishables like onions, potatoes, garlic etc which can move in a dry container one door open if the transit time is contained below 20 days with improvisation on packing technology. This would reduce the cost of shipment by 2500 USD per 15 tons of cargo which would mean a price improvement of USD 166 per ton. India could beat Pakistan / Europe trade into CIS / Russia with this and look forward to realising their full export potential in agro trade. B.
Route study of INSTC and issues in implementation
1.
Infrastructure related issues and suggestions
INDIA Port Related issues - Mumbai Port / JNPT Priority be given by Port for berthing for vessels for IRAN and All vessels to operate from JNPT terminal at Nhava Sheva – Action by Ministry of Shipping. Shipping equipments (containers) Shipping Corporation of India should start service direct to Bandar Abbas or Change its Dubai Service to have the first port of call Bandar Abbas and then Dubai. This would ensure rate levels to come between USD 175 to 225 per TEU - Action by Ministry of Shipping
IRAN Bandar Abbas Port- Shahid Rajaee Terminal 1. EDI implementation for port management activities – Action by Port Authorities. 2. Container Yard operations to be handled by Port for INSTC cargo for transshipment at USD 50 per TEU – Action by Port Authorities. 3. For Rail bound transshipments movements – Container should move from Ship side to Rail yard rather than being moved to container yard and then again Rail yard at USD 60 per TEU – Action by Port Authorities. 4. Vessel Discharge should be well planned in advance and turnaround time of vessel to improve to 12 hours instead of 3 to 4 days - Action by Port Authorities. IRAN Railway authority (IRA) 1. IRA to subsidise the Private operators for shortfall in cargo for full train load to encourage setup of regular rail services within IRAN. 2. IRA to correct the terrain issue between Tehran to Northen IRAN to improve transit time and operational Viability 3. IRA to setup business facilitation cell between private operators and Shipping lines / agents for promoting Rail movements.
RUSSIA Astrakhan / Olya 1. To notify 2/3 port terminals with fixed rates for INSTC containers as well as for their Rail yard storage and handling operations. Expected to be between USD 30-40 USD per TEU. 2. Setup facilitation cell to encourage foreign companies to setup agency office in Astrakhan. Russian Railways (RR) 1. To setup Regular weekly Rail services from Astrakhan / Olya to Moscow and notify rates to shipping agents / terminals at Astrakhan/Olya – Expected to be around USD 400 per TEU. 2. Documentation related issues
10
1 EXECUTIVE SUMMARY INDIA 1. Need to introduce an INSTC certificate of origin to ensure special rates facilitations extended by respective participants. The format remains the same as the normal certificate of Origin but additionally specifies the route details and carries the Header as “Certificate of Origin for INSTC”. It should be jointly endorsed by the Shipping Agent to ensure authenticity – Action by Ministry of Commerce 1. The Indian MTO ( Multimodal Transport Operator) Bill of lading can be used by all the countries for ensuring safe passage, global acceptability and Insurance be covered by respective Countries Insurance Companies for transportation in transit – Action by Ministry of Shipping / Ministry of Finance ( Insurance) and Agents Association. 2. In the meanwhile we should look forward to becoming members of TIR convention and COTIF for free road / rail movement thru Pakistan into Russia/CIS since Pakistan is also member of the convention and would facilitate our cross border vehicular movements into CIS thru the abovementioned conventions. For reference below links TIR – https://www.iru.org/en_iru_tirconvention COTIF - http://www.cit-rail.org/en/rail-transport-law/cotif/
IRAN 1. The IRAN agents should work on developing of complementing their CMR (container movement report) in line with the Multimodal Bill of Lading to include all details of the B/L. – Action by IRAN Customs 2. Also all customs documents and line bills should be in English too for better understanding by all countries involved on the INSTC corridor – Action by IRAN Customs.
RUSSIA 1. All Customs / Government documents should be in English too for understanding by Indian / IRAN counterparts. 2. Banking and Insurance issues 3. Due to the dual currency rate being operated in IRAN and the variation being more than 20 percent, the exporters prefer to export thru Dubai and take cash payments in Dubai/Iran. – Action by Ministry of finance of IRAN 4. Remittance realization by Iran agents / exporters from India is delayed many a times due to balance of payments issue between India and Iran. Alternative solution to be planned to discourage informal trade thru Dubai. – Action by Ministry of finance / commerce of India. The INSTC would continue to remain a mystery if the individual actions of member countries are not synchronised with each other to activate the corridor. C.Potential export trade for India, Iran and Russia on the route
INDIA a. Onions, potatoes, garlic , tomato puree
0.5 million tons
b. Food grains and Oil meals
5 million tons
c. Fruits
0.5 million tons
d. Various consumer products and FMCG goods
Approx 50 million USD trade
e. Engineering and Electronic goods
Approx 100 million USD trade
IRAN
RUSSIA / CIS
a. Petroleum products
a.
b. Crude oil
b. Coal
c. Steel billets
c. Fertilisers
d. Gypsum and Cement
d.
Siberian Wooden logs
e. Dates
e.
Pulp and Paper
f.
Crude oil and petroleum products
11
Steel billets
1 EXECUTIVE SUMMARY
Ms. Nirmala Sitharaman Union Minister of State for Commerce and Industry (Independent Charge)
Mr. Rajeev Kher Secretary General of India´s Ministry of Commerce
H.E. Mr. P.S. Raghvan Ambassador of India to Russia
H.E. Mr. D.P. Srivastava Ambassador of India to the Republic of Iran along with Dr. Guruprasad Mohapatra, IAS Joint Secretary, Dept. of Commerce at Indian Embassy Iran along with H.E. Mr. Ashoori, Deputy IRI Railways
12
H.E. Dr. B.M. Vinod Kumar Ambassador of India to the Republic of Azerbaijan
2
INTRODUCTION
2
INTRODUCTION - Terms of Reference for Study International North South Transport Corridor (INSTC)
INSTC Member Countries 2.1
Founder Members
The INSTC International North – South Transport Corridor (INSTC) is a multimodal transportation established in Sep. 12, 2000 in St. Petersburg by India, Russia and Iran. Latter INSTC was expanded to include 10 new members namely Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine, Belarus, Oman and Syria. Bulgaria was accorded observer status.
INDIA
IRAN
RUSSIA
Other Members REPUBLIC OF AZERBAIJAN
REPUBLIC OF TURKEY
REPUBLIC OF ARMENIA
REPUBLIC OF UKRAINE
REPUBLIC OF KAZAKHSTAN
REPUBLIC OF BELARUS
REPUBLIC OF KYRGYZSTAN
OMAN
REPUBLIC OF TAJIKISTAN
SYRIA
BULGARIA (OBSERVER)
2.2. A. The Main Objectives of This Agreement 1. To increase the effectiveness for transport ties in order to organize goods and passenger transport along the international “North-South” Transport corridor. 2. To promote access to the international market through rail, road, sea, river and air transport of the parties to the Agreement. 3. To provide assistance in increasing the volume of international transport of passengers and goods. 4. To provide security of travel, safety of goods as
well as the environmental protection according to the international standard. 5. To harmonize the transport policies as well as law and legislative basis in the field of transport for the purpose of implementing this agreement. 6. To setup, equal and non-discriminative condition for all types of transport service providers from all the parties in transport of passengers and goods within the framework on “North South” Transport Corridor.
B. In accordance with the objective stipulated as mentioned above, the Parties (participating countries) shall make every effort aimed at: 1. Reducing transit time and cost for passengers and goods transport in their respective 2. Simplifying and unifying all administrative, documentation and procedures (including
14
Customs) applicable to international transport of goods and passengers through their respective territories in accordance with the adopted international agreement and standard.
2
INTRODUCTION - Terms of Reference for Study 2.3 “TERMS OF REFERENCE” given by Ministry of Commerce for the purpose of Study is mentioned below: A. Route 1: Nhava Sheva/India Bandar Abbas /IRAN - By SeaAstara/Iran - by RoadAstara/Azerbaijan-by RoadBaku /Azerbaijan- by Road The study Report of the Dry run should contain elaborate information and findings on the ground reality and status at each stage of movement of cargo. The items of study correspond with each of the activities to be done at each stage of movement of cargo. The comprehensive Terms of Reference for the dry run study by FFFAI at each stage is given below for compliance by FFFAI.
A.1 At port of origin viz. Nhava Sheva (Mumbai) 1. A brief description of activities. 2. Charges and fees. 3. Time required at this stage.
A.2 At port of trans-shipment viz. Bandar Abbas (Iran) 1. Time taken for berthing. 2. Availability of Customs brokers (other than corresponding agents of shipping lines, forwarders etc.) 3. Customs procedures at port. 4. Documents required by port authorities for cargo clearance; IGM (Import General Manifest) filling procedures (prior to arrival of cargo); computerization / use of IT; availability of scanners for scanning the cargo. 5. List of Embargo cargo 6. Treatment of embargo cargo. 7. List of certifications required by Customs (commodity-wise) e.g. phytosanitary certificate, health certificate, manufacturer’s certificate, etc. 8. Infrastructure available at port for handling container and cargo – container-size wise i.e. cranes, capacities of cranes, number of cranes.
9. Transportation from port to CFS (Container freight station). 10. CFS facilities like refrigeration, storage, warehousing, capacity, numbers, labor, etc. 11. Facilities / connectivity for movement out of CFS – by road, rail in container and break bulk cargo by trucks or by wagons. 12. For road movement out of CFS- rules and regulations of local RTO; details of truck operator, availability of trucks, mafia / cartelization, availability of drivers, waiting time, capacity/ size of trucks( refrigeration), frequency of trucks, schedule, permits, insurance, transit bond, BGs, container bond, safety and security and any other documentation required , driver visas. 13. Charges and fees – for Agents, for handling equipment, for customs services, etc. 14. Time taken at this stage.
A.3 During the travel by road between Bandar Abbas (Iran) and Baku ICD or Astra ICD
1. Quality of road – gaps in roads.
5. Escorting procedures.
2. Toll charges
6. Charges and fees.
3. Traffic at Toll
7. Time taken at this stage.
4. Documents required
15
2
INTRODUCTION - Terms of Reference for Study
A.4 At International cross border at Astra (Azerbaijan) 1. Time required to clear consignment
4. Charges and fees
2. Documents required
5. Time taken at this stage
3. Parking facilities, safety and security
A.5 At port of destination viz. Baku ICD (Azerbaijan) 1. Time taken for unloading, de-stuffing, customs clearance. 2. Documentation required. 3. Availability of ICD/CFS- facilities, infrastructure, refrigeration, storage warehousing capacity, numbers, labour, handling equipment, etc. 4. List of certifications required by customs (commodity-wise) e.g. phytosanitary certificates, health certificates, manufacturer’s certificate, etc. 5. For change of trucks from Iranian trucks to Azeri truck. 6. Availability of Azeri truck operators – rules & regulations, details of truck operators, availability of trucks, mafia / cartelization, availability of
drivers, waiting time, capacity and sizes of trucks, facilities of trucks (refrigeration), frequency of truck, schedule, permits, insurance, transit bond, BGs, Container bond, safety & security and any other documentation required, driver visas. 7. Documents and procedures for release/ delivery of cargo to consignee. 8. Charges and fees. 9. Time taken at this stageSTUDY
BY FFFAI PERSONNEL WITHOUT CARGO AT RUSSIAN BORDER FOR TRANSIT OF CARGO TO RUSSIA.
List of activities and corresponding items of study are as follows 10. The FFFAI official and EOI personnel will travel to the identified Azerbaijan – Russia rail connectivity border point from the point of cargo termination. 11. Study will be done on all the activity points
discussed in point 3 above 12. Duration of stay of FFFAI official at the identified Azerbaijan – Russia rail connectivity border point – 2-3 days.
Mr. Ravi Capoor , Jt. Sec, Dep. of Commerce leading Indian delegation and presenting at INSTC, Baku, Azerbaijan
Dr. Guruprasad Mohapatra Joint Secretary leading Indian Delegation along with Iran Govt. Officials at Tehran during second visit to Iran
(L to R) Mr. Ravi Capoor , Jt. Sec. MoC, H.E. Dr. B M Vinod Kumar. Ambassador of India to the Republic of Azerbaijan, at India House in Baku also seen Mr. Shankar Shinde
Indian Ambassador H.E Mr. D.P. Srivastava ,alongwith Mr. Mohammad Gharavi (RAI), Shankar Shinde (FFFAI) and other officials at Turkmenistan -Iran Border in Incheboron
16
2
INTRODUCTION - Terms of Reference for Study 2.3
B. Route 2 - Nhava Sheva/India Bandar Abbas/ IRAN - By Sea Amirabad / Iran-by RoadAstrakhan/ Russia- by Sea “TERMS OF REFERENCE “given by Ministry of Commerce for the purpose of Study is mentioned below: The study Report of the Dry run should contain elaborate information and findings on the ground reality and status at each stage of movement of cargo. The items of study correspond with each of the activities to be done at each stage of movement of cargo. The comprehensive Terms of Reference for the dry run study by FFFAI at each stage is given below for compliance by FFFAI.
B.1 At port of origin viz. Nhava Sheva (Mumbai) 1. A brief description of activities. 2. Charges and fees. 3. Time required at this stage.
B.2 At port of trans-shipment viz. Bandar Abbas (Iran) 1. Time taken for berthing. 2. Availability of Customs brokers (other than corresponding agents of shipping lines, forwarders etc.) 3. Customs procedures at port. 4. Documents required by port authorities for cargo clearance; IGM (Import General Manifest) filling procedures (prior to arrival of cargo); computerization / use of IT; availability of scanners for scanning the cargo. 5. List of Embargo cargo 6. Treatment of embargo cargo. 7. List of certifications required by Customs (commodity-wise) e.g. phytosanitary certificate, health certificate, manufacturer’s certificate, etc. 8. Infrastructure available at port for handling container and cargo – container-size wise i.e. cranes, capacities of cranes, number of cranes.
9. Transportation from port to CFS (Container freight station). 10. C FS facilities like refrigeration, storage, warehousing, capacity, numbers, labor, etc. 11. F acilities / connectivity for movement out of CFS – by road, rail in container and break bulk cargo by trucks or by wagons. 12. F or road movement out of CFS- rules and regulations of local RTO; details of truck operator, availability of trucks, mafia / cartelization, availability of drivers, waiting time, capacity/ size of trucks( refrigeration), frequency of trucks, schedule, permits, insurance, transit bond, BGs, container bond, safety and security and any other documentation required , driver visas. 13. C harges and fees – for Agents, for handling equipment, for customs services, etc. 14. Time taken at this stage.
B. 3 During the movement of cargo by road between Bandar Abbas (Iran) and Amirabad ( Iran) 15. Quality of road – gaps in roads.
19. Escorting procedures.
16. Toll charges
20. Charges and fees.
17. Traffic at Toll
21. Time taken at this stage.
18. Documents required
17
2
INTRODUCTION - Terms of Reference for Study B.4 During movement of cargo / container by sea from Amirabad to Astrakhan ( Russia) 1. Time required to clear consignment
4. Charges and fees
2. Documents required
5. Time taken at this stage
3. Facilities, safety and security
B.5 At port of destination viz. Astrakhan (Russia) 1. Time taken for unloading, de-stuffing, customs clearance.
(commodity-wise) e.g. phytosanitary certificates, health certificates, manufacturer’s certificate, etc.
2. Documentation required.
5. Documents and procedures for release/ delivery of cargo to consignee.
3. Availability of ICD/CFS- facilities, infrastructure, refrigeration, storage warehousing capacity, numbers, labour, handling equipment, etc.
6. Charges and fees. 7. Time taken at this stage
4. List of certifications required by customs
2.4 Methodology Adopted
Following methodology was adopted for the study 1. Physical Shipment
2. Point to point Physical meetings and study
3. Photography
4. Videography
5. Meetings
6. Conferences
7. Movement along with cargo from point to point
8. Interviews with various stake holders
H.E D.P. Srivastava (Ambassador of India to Iran along with Indian delegates Meet at Incheh borun Customs Iran
(L to R) Mr. Sohel F Kazani, ECM,FFFAI, Dr. Guruprasad Mohapatra, Jt. Secretary, Ministry of Commerce & Industry , Mr. C Ramkumar- Under Secretary, Ministry of External Affairs Mr. Shankar Shinde, Vice Chairman ( , FFFAI) during second visit to Iran
18
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC 3.1 Route 1 • Nhava Sheva/India Bandar Abbas - By Sea • Bandar Abbas /Iran Astara / Iran - By Road • Astara/Iran Astara /Azerbaijan - by Road - Border crossing • Astara ( Azerbaijan –Border) Baku (ICD) Azerbaijan - By Road) with cargo (terminate container)
3.1.1 Summary of activity, distance and cost Nhava Sheva – Bandar Abbas ( By Sea ) : 1265 nm Bandar Abbas – Astara (Iran) ( By Road) : 1900 Kms Astara – Iran/Azerbaijan to Baku/ Azerbaijan (By Road) : 350 km
3.1.2 Activities at port of origin viz. Nhava Sheva (Mumbai): A. The Communication enquiry through e-mail, phone and references were sent to various NVOCC operators like Goodrich Maritime, Radiant Maritime, Master group (Agents for IRISIL ( Iranian Line ) etc and after service assurance & confirmation M/s Goodrich Maritime was selected for this shipment. yy The Agent of Goodrich at Bandar Abbas was appointed as our representative as he assured us help in handling the container at Bandar Abbas as also in arranging onward transportation to Baku. yy The shipping bill was filed with Customs on 16th July. The cargo was carted (i.e. moved to CFS) on 17th July. The container was moved to CFS, stuffed with cargo and moved out from CFS to Port (flagged off from the CFS by the Commissioner of Customs Ms Seema Bisht) on 18.07.2014. yy The vessel M.V. ELB WOLF / 002S arrived on 21st July, and after loading containers sailed Nhava Sheva on 22nd July for Bandar Abbas via Dubai Port. yy Distances : Nhava Sheva to Bandar Abbas : 1265 nm ( By sea) yy Bandar Abbas to Astara: 1900 kms 9 By Road) yy Astara to Baku : 250 kms ( by Road) B. Charges & fees. S.No
Table No 3.1
Item
Cost in USD
1
Cargo Transportation to CFS
25
2
Stuff & move to Port CY
100
3
Custom Clearance Fee
25
4
Port THC
5
B/L Charges / Agency Fee
6
Freight Mumbai to Baku
2807
Total
3132
100 75
Freight charges of USD 2807 included, the Ocean Freight from Mumbai to Bandar Abbas and trucking charges from Bandar Abbas to Baku via Astra border and after delivery of cargo, return of empty container to Bandar Abbas. Above charges included all the expenses incurred enroute from Bandar Abbas to Baku and back ( Round Trip Basis). C. Time required for above operation till container shipped on board was 5 days. yy Container movement to CFS, stuffing of cargo and movement to port – 1 days. yy Dwell time of container in port awaiting loading – 4 day
20
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC
D. Documentation at port of origin: Mumbai Customs passed Shipping bill, Invoice & Packing list, Insurance, Certificate of Origin was submitted to Goodrich for filing of EGM with Custom authorities and for documentation at discharge port i.e. Bandar Abbas. Original B/L was also surrendered to Goodrich Maritime in Mumbai. (Attached Annexure -1 of above documents)
3.1.3
At port of trans-shipment viz. Bandar Abbas (Iran)
A. Time taken for berthing of vessel is 1 day. The vessel reached Bandar Abbas on 4th August, berth was allotted on 5th and containers discharging operation was completed on 7th August. B. There are many Customs brokers and Agents present at Bandar Abbas. (ITCA Membership list for the year 2014 is attached as Annexure -2). However most of them have their offices at Tehran and appoint some agents or have operation office in Bandar Abbas.
Indian Delegation Visit to Bandar Abbas Customs House
Meeting of India Delegation with Customs Authorities at Bandar Abbas.
C. Customs and Port procedure at Bandar Abbas: The copies of the Bills of Lading, Invoice & Packing and Insurance which were earlier submitted to Goodrich Maritime office in Mumbai mailed these to their agent at Bandar Abbas who completed the Port and Customs procedure. Goodrich Maritime agent processed documents like filing of IGM, obtaining insurance for transit cargo and issuing of CMR to transporter for movement of container to Baku (ICD) The agent of shipping line prepared CMR (Container movement report) in format, (Annexure – 3), which is recognized in all CIS countries for goods transshipped via Bandar Abbas (Iran). In addition a transit insurance cover, which is usually 1% of value of cargo and Custom approved container delivery permission, was obtained by agent of shipping line. These shipment documents alongwith other cargo related quality certificates are required for goods transiting through Iran. D. Types of goods mainly prohibited for transit are goods like : , Drugs and Alcohol, Arms and explosives, Pork Meat, and related raw material and any other products specifie from time too time as per Govt regulation . For good which are generally not carried by other Lines, can be shipped to / through Iran with prior approval of authorities in Iran and IRISIL(Islamic Republic of Iran Shipping Line), (Refer to Executive Procedures of the Law of Transit of Foreign Goods through the Territory of Islamic Republic of Iran Adopted by the Council of Ministers, 1998) E. Infrastructure at Bandar Abbas: The Bandar Abbas consist of 3 terminals 1) Shahid Rajaee terminal for containers, 2) Terminal reserved for big ships carrying bulk cargoes 3) Terminal is reserved for small wooden crafts. Shahid Rajaee Terminal has 8 operational berths, each having 3 – 4 gantries for container operations. The terminals were earlier managed by Tide Water LLC, but due to the sanctions, it is now being managed by another company and the PMO. Due to this change, the operational efficiency has gone down, which has adversely
21
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC
Pejam Gulf Conainer Terminal at Bandar Abbas
Shahid Rajaee Terminal at Bandar Abbas Port
affected the turnaround time of vessels. A vessel which used to turnaround in 12 to 24 hours now takes around 48 to 72 hours for completion of operations. F. The Transit container was moved to Port CY on 7/08/2014. Port and Customs documentation procedure was completed on 9/08/2014. Thereafter the container was loaded on truck and moved out directly from Port CY for Baku on 10/08/2014. Transit Time from Mumbai to Bandar Abbas via Dubai was 13 days. Dwell time at Bandar Abbas Port - 6 days. Container awaiting discharge – 3 Days + idle time for completion of documentation and Gate out was 3 days. (If there are 2 x 20’or 1 x 40’ container for same destination the movement generally could be arranged in 1 day). G. Bandar Abbas has many CFS around the Port for delivery of local cargo. One privately operated CFS is inside the port premises, where consignees can take delivery of cargo. The containers are moved by road from Port to CFS outside the port premises. Sufficient containers and cargo handling equipments are available both in Port and at CFS. The Port has adequate refrigeration points for reefer containers. H. Transit containers movement out of Bandar Abbas is governed by “Law of Transit of Foreign Goods through the Territory of Islamic Republic of Iran.”(Annexure- 3) This is a very comprehensive Law which gives in details, the rules, regulations, the procedure, documentation, maximum weight a truck can carry, overweight and over dimension restriction/permissions etc. for carriage of goods by road in Iran. I.
The time taken to complete Port and Customs procedure and gate out of container from Port was 3 days. (Normally it takes 2-3 days).
J.
Charges and fees applicable at Bandar Abbas are:
S.No
Item
Table No 3.2
Cost in USD /20ft
1
Transit THC
129
2
Agency Fee
50
3
Custom Fee
20
4
Transport from Bandar Abbas to Baku
750
Total
949
Agents / Line charges USD 1500 for 40’ trailer for movement of loaded container from Bandar Abbas to Baku and return of empty container back to Bandar Abbas. -. Usually either 2 x20ft Containers or 1x 40Ft containers are transported on one vehicle of 40ft Trailor which would make the cost viable on roundtrip basis .else the agent would have to hold containers in Bandar Abbas to procure 2x20ft container for movement. Also common e-platform can be created by port providing details of transit containers with destination detail alongwith agents code for better co-ordination and viable transportation cost.
22
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC Note: The above charges were included in freight of USD 2807 paid to Goodrich Maritime)
3.1.4 During movement by road from Bandar Abbas (Iran) to Astra Border crossing between IRAN - AZERBAIJAN Both sides of borders i.e. Iranian and Azerbaijan sides of borders are called as Astara. And the customs clearance on Border of Astara in Iran and Astara in Azerbaijan are processed at respective customs station.
Astara Border in Iran - Azerbaijan
a. The quality of roads on the Iran section was excellent and well maintained with 4 lanes on each side. There are seperate lanes for Commercial and private Vehicle on some lap of the road b. Only road toll charges and border fees was applicable on Iranian section, which was USD 100. The traffic observed at toll booths was minimal. c. Documentation required for road transportation was CMR and copy of insurance for transit of cargo issued at Bandar Abbas. d. Escorting was not required. Safety and security along the route is good. e. The distance from Bandar Abbas to Astra border crossing is 1900 Kms, the container reached on 13/08/2014, the transit time was 4 days.
3.1.5 At International cross Borders at Astra (Azerbaijan) a. Documents required were CMR, insurance copy for transit of goods and Bandar Abbas Custom approved container delivery permission. The procedure took about 2 hrs. b. Parking facilities, safety and security is good at border crossing and along the route to Baku. Also Scanner facility and allied agencies offices( ie. Phytosanitary, Health) are available for clearance. c. Charges and fees: S.No
Table No 3.3
Item
Cost in USD
1
Border Fee ( Formal)
100
2
Agency Fee
50
3
Custom Fee
20
4
Border Fee (Informal)
100
TOTAL
270
Road Route Map from Bandar Abbas to Astara
23
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC 3.1.6 Map of road route from Bandar Abbas to Baku (and other CIS destination)
3.1.7
At port of destination viz. Baku ICD (Azerbaijan)
a. The distance from Astara border to Baku (ICD) is 320 kms. The container reached Baku on 14.08.2014. Transit time was 1 days. b. After the arrival of container at Baku, it took about 4 days for the consignee to process documents through Custom and take delivery of cargo on 18/08/2014. On reaching Baku, we learnt that the Custom officer were not available for examination & signature, due to which container was detained on vehicle for 3 days. c. The Transporter charges transporter Vehicle detention charges USD 150/- per day . ( in this case 3 days detention charges were charged@ USD150x 3) and thereafter the cargo was released
24
to Consignee. d. After container was de-stuffed the truck with Empty container returned its journey back from Baku to Bandar Abbas as instructed by Agent at Bandar Abbas. e. The documents essential for delivery of cargo was CMR, Custom manifest, B/L copy, invoice & packing list and Certificate of Origin. Other Certificates depends on type of cargo which is imported, in which case consignee has to arrange and fulfill the requirements of authorities as per prevailing Laws, rules and regulations in Azerbaijan.
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC Process for clearing of cargo: After the vehicle is cleared to enter Azerbaijan at the Astra border Customs post (Single window system facility is available for all agencies) the truck is allowed 24 hours to proceed to the TIR Park Terminal. In Baku it is called Ipek Yolu (Silk Way) TIR Park Terminal, where the truck stays until the cargo is Customs Cleared. Before Customs clearance the contents of the container are checked at the Terminal by the Customs officers stationed at the TIR Park or else the container leaves the TIR Park with the Customs seal still intact and escorted by a nominated Customs Officer to the place of unloading, where the container / truck is unloaded in the presence of the Customs Officer, who then confirms correctness of Customs Declaration i.e. total conformity of declared cargo as per documents and the actual contents of the container / truck both for cargo kind and quantity. Cargoes are not allowed to be stored at the TIR Park. But once Customs Cleared, the consignee can arrange temporary or permanent warehousing depending upon the type of cargo. Similarly, any kind of cargo can be lifted and unloaded up to 500MT (one piece). But these cranes are not available inside the TIR Park, but have to be hired from outside, which is allowed.
At the Depot labour is very expensive and to unload & then load 1 truck / 40 ft. container with packages that can be handled manually or on pallets it roughly costs about USD 250. Certificates (if required) depends on type of cargo which is imported, in which case consignee has to arrange and fulfill the requirements of authorities as per prevailing Laws , rules and regulations in Azerbaijan. f.
The infrastructure at Baku ICD is minimal. It has reefers points at Depot Terminal . Port and CFS both give permission to bring the required equipments for operations from outside.
g. Quality of road to Baku was good. It was a safe and secure journey. No compulsion or requirements of Law to have escorts. h. There is no THC concept for IRAN transit movement however if clearance from Baku port THC is applicable only delivery and customs clearance charges are paid by consignee to Baku ICD. Agency charges : USD 250 Vehicle detention : USD 150/ day
ROUTE I – JNPT TO BAKU AZERBAIJAN-TIME TAKEN Table No 3.4
Port / Location Activity JNPT
Date
Day
Shipping bill filed with Custom and passed for shipment
16-07-2014 1
Cargo carted at CFS Container moved into CFS
17-07-2014 2 18-07-2014 3
Cargo stuffed & Container moved from CFS to Port
18-07-2014 3
Container loaded onboard M.V. JNPT to B.Abbas Vessel sailed JNP for Bandar Abbas Bandar Abbas Vessel arrived Bandar Abbas Vessel berth at Bandar Abbas Container discharged from vessel Transhipment documentation completed Bandar Abbas to Container moved out from gate of B. Abbas for Astara Astara Astra Container reached Astara port from B.Abbas (1900kms) Astra to Container cleared Astara (Iran ) Border for Baku Baku(ICD) Baku (ICD) Container reached Baku from Astra Port Container Delivery taken Bandar Abbas to Container Transportation charges from Bandar Abbas to Baku via Astra border Baku
25
22-07-2014 7 22-07-2014 7 04/08/2014 14 07/08/2014 17 07/08/2014 17 08-08-2014 18 10/08/2014
20
13-08-2014 23 14-08-2014
24
15-08-2014 18-08-2014
25 28
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC 3.2.
Route 2 – Nhava Sheva/India Bandar Abbas/ IRAN - By Sea Amirabad /Iran-by Road
Astrakhan/ Russia- by Sea
3.2.1 Summary of activity, distance and cost Nhava Sheva – Bandar Abbas ( By Sea ) : 1265 nm Bandar Abbas – Amirabad (Iran) ( By Road) : 1500 Kms Amirabad – Astrakhan ( Russia ) ( By Sea ) : 1000 nm
3.2.2 Activities at port of origin viz. Nhava Sheva: a. Various mails were sent to NVOCC like Goodrich Maritime, Radiant Maritime, Master group but no concrete replies with regard to service, vessel planned or neither time schedule nor any cost break up was received. Finally the only option left for the team was to “Do it ourselves”. 1 x20’ ft container was purchased from Montana Shipping and they were also appointed as our representative for the purpose of documentations in India. The slot on the IRISIL vessel (owned by Government of Iran),the only line having direct service between Nhava Sheva and Bandar Abbas was booked by us and given to Montana Shipping Private Ltd. The Agent at Bandar Abbas was of Montana Shipping Pvt Ltd who had agreed to handle the container at Bandar Abbas and moved the same to Amirabad by Rail. (initially the container b.
Charges & fees.
S.No
was planned to be transported by rail from Bandar Abbas to Amirabad , however due to non availability of rail schedule the same was decided to transport by Road)
The shipping bill was filed with Customs on 16th July. The cargo was carted (i.e. moved to CFS) on 17th July. The container was moved to CFS, stuffed with cargo and moved to port (flagged off from the CFS by the Commissioner of Customs Ms. Seema Bisht) on 18.07.2014.
The container was booked on IRISL vessel M.V. AREZOO V- ISC 0509, ETA declared was on 21st July, but vessel delayed due to bad weather in Arabian Sea and finally arrived Nhava Sheva on 28th July and berth on same date. After completion of containers loading operation the vessel sailed Nhava Sheva on 29th July for Bandar Abbas via Mundra Port.
Table No 3.5
Item
Cost in USD/20ft
1
Cost of 20’ Container
2
Cargo Transportation to CFS
3
Stuff & move to Port CY
100
4
Custom Clearance Fee
25
5 6
Port THC
7
Slot (Ocean freight) Charges- Mumbai to Bandar Abbas
8
1300 25
100
Forwarder ( B/L + Agency) fee
50 500
Transportation from Bandar Abbas to Amirabad ( By rail / Road)
750
Transhipment thc
89
Agent fee
9
50
Transportation from Amirabad to Astrakhan
350
Total
3339
26
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC c.
Time required for above operation till container shipped on board -13 days.
d.
Container movement, stuffing of Cargo and movement to port – 1 days.
Container waiting at port for loading – 11 days (Due to bad weather the vessel was delayed by 8 days. )
Documentation at port of origin: Customs passed Shipping bill, copies Invoice & Packing list, Insurance, Certificate of origin (as per Annexure-II) was submitted to our representative Montana Shipping Pvt Ltd filed EGM with Custom authorities and for documentation at Bandar Abbas. The original Bills of Ladings of IRISIL and Montana Shipping were surrendered at their respective offices in Mumbai.
3.2.3 At port of trans-shipment viz. Bandar Abbas (Iran) a. Time taken for berthing of vessel is 1 day. The vessel reached Bandar Abbas on 10th August; berth was allotted on 11th and containers discharging operation completed on 13th August. There was a breakdown in port IT system, due to which documentation was completed once the system started working on 16th. The container moved out from Bandar Abbas Port by road for Amirabad port on 17th August. Dwell time at Bandar Abbas Port - 4 days. (If there is 2 x 20’or 1 x 40’ container, the movement generally could be arranged in 1 day). b. There are many Customs brokers and Agents present at Bandar Abbas. (ITCA Membership list for the year 2014 is attached as Annexure -2). c. Customs and Port procedure at Bandar Abbas: The copies of the Bills of Lading, Invoice, packing list, insurance and certificate of origin which were earlier submitted to Montana Shipping’s office in Mumbai were sent by them to their(our) agent at Bandar Abbas for Port and Customs procedure. The Agent at Bandar Abbas processed all documents like filing of IGM, obtaining insurance for transit cargo and issuing of CMR, arranged and coordinated transportation of container to Amirabad by Road. The agent prepared CMR (Container movement report) in format, (Annexure – 4), Custom passed manifest, which is recognized in all CIS countries for goods transshipped via Bandar Abbas port (Iran). In addition a transit insurance cover, which is usually 1% of value of cargo and Custom approved container delivery permission was obtained by them. These were the three documents required for good transiting through Iran. d. Types of goods prohibited for transit: Namely, Drugs and Alcohol, Arms and explosives, Pork Meat, and related Raw materials. e. Infrastructure at Bandar Abbas: The Bandar Abbas port is divided into 3 Terminals, 1) Shahid Rajaee terminal for containers, 2) Terminal reserved for big ships carrying bulk cargoes,
27
3) Terminal is reserved for small wooden crafts. Shahid Rajaee Terminal has 8 operational berths, each having 3 – 4 gantries for container operations. The terminals were earlier managed by Tide Water LLC, but due to the sanctions, it is now being managed by another company and the PMO. Due to this change, the operational efficiency has gone down, which has badly affected the turnaround time of vessels. A vessel which used to turnaround in 12 to 24 hours now takes around 48 to 72 hours for completion of operations. f. Bandar Abbas has many CFS around the Port for delivery of local cargo. One privately operated CFS is inside the port premises, where consignees can take delivery of cargo. The containers are moved by road from Port to CFS. Sufficient containers and cargo handling equipments are available both in Port and at CFS. The Port has adequate numbers of refrigeration points for reefer containers. g. Transit containers movement out of Bandar Abbas is governed by “Law of Transit of Foreign Goods through the Territory of Islamic Republic of Iran.”(Annexure- 3) This is a very comprehensive Law which gives in details, the rules, regulations, the procedure, documentation, maximum weight a truck can carry, overweight and over dimension restriction/ permissions etc. for carriage of goods by road in Iran. h. The time taken to complete Port and Customs procedure and gate out of container from Port was 5 days. (Normally it takes 2-3 days). i. Charges and fees applicable at Bandar Abbas are: Table No 3.6
S.No
Item
Cost in USD/20ft
1
Transit THC
129
2 3
Agency Charges
50
Custom Fee
20
4
Transport from Bandar Abbas to Amirabad
732
Total
931
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC
3.2.4 During the movement of container by road from Bandar Abbas (Iran) to Amirabad (Iran). a. Both rail and road transportation is available from Bandar Abbas to Amirabad. The Railways do not have fixed schedule, and movement is arranged only when sufficient container get accumulated at Bandar Abbas. Another factor effecting movement by rail is the handling cost of USD 100 at both ends. Beside due to the steep gradient (100 Kms) in sections along the route the rail journey takes about 5-6 days whereas the road transportation is faster and takes only 2 -3 days time. The container which moved out from Bandar Abbas on 17th reached Amirabad on 19th August. Thus had saved on cost & reduced transit time. The documentation was completed within 2 hours of arrival of container in Amirabad Port on 19th August. Container loading was planned on vessel M.V Begey which arrived on 20th and sailed for Astrakhan on 21st August.
b. CMR, Transit Insurance & Bandar Abbas’s Custom approved container Delivery permission were the only documents required for transportation of container from Bandar Abbas to Amirabad Port by road. c. Escorts were not required. Safety and security along the route was good. d. Charges at Amirabad: S.No 1
Item
Table No 3.7
Cost in USD/20ft
2 3
Transit THC Agency Charges Custom Fee
89 50 20
4
Slot Charges to Khazar Shipping from Amirabad to Astrakhan
350
Total
509
3.2.5 During movement by sea from Amirabad (Iran) to Astrakhan (Russia) and delivery at Astrakhan a. The vessel M.V Begey which sailed for Astrakhan on 21st August had faced bad weather and could manage speed of only 5 knots per hour. The journey of 1000 nautical miles was covered in 200 hours (8.3 days), finally arriving Astrakhan on 29th August.
hub for ship building for the Caspian Sea operators. The channel of the port of Astrakhan gets frozen in winter but the port authorities provide a regular Ice breaking ship which keeps clearing the channel for easy movement of vessels.
Transit time during sea voyage – 9 days.
T he VTS terminal is the most active terminal for container operations.
The vessel berth and discharged the container on same day i.e. 29th. 30th and 31st August being Saturday and Sunday and Customs weekly holiday, the cargo was cleared on 1st September. Time taken for this operation was 3 days. b. Through B/L for ocean freight (Amirabad to Astrakhan) was issued at Amirabad Port and basis which the cargo was released to our agent at Astrakhan. c. The copies of B/L, Invoice & Packing list, Insurance and certificate of origin are required at Astrakhan for Port and Customs procedures. Agent files the IGM , thereafter the consignee processed his documents from Port and Customs department, (paid duty of USD 700) and thereafter the cargo was cleared by consignee VTS. We appointed VTS (the terminal operator) as consignee since Khazar Shipping appointed earlier was not registered as trader and therefore could not clear the cargo. d. The port of Astrakhan which used to have more than 35 – 40 berths like Mumbai port has now been privatized. As on date there are 16 terminal operators each having a jetty between 120 to 200 meters for themselves. The port of Astrakhan is now the main
28
There are 2 dry ports in Astrakhan which are 7 kms away from the main jetty. They are connected by Rail and also have huge underground warehousing facilities which naturally maintain an average temperature of 12 to 15 degrees around the year. These warehouses are ideal for storing agro commodities, fruits / vegetable extracts in drums/cans. e. The charges paid at Astrakhan are: Table No 3.8
S.No 1
2 3 4
Item THC Agency Charges Storage charges / day Custom Duty
Cost in USD/20ft 400 600 5 700
Agency charges TS as Consignee charges USD 600 but waived V for us. Custom Duty paid - USD 700 on free cargo (Container freight + VTS consignee charges (USD 2250 x 30%)
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC
Table No 3.9
ROUTE II – JNPT –B/ABBAS-AMIRABAD-ASTRAKHAN Port / Location Activity
JNPT
Date
Day
Shipping bill filed with Custom and passed for shipment Purchase of 20' container Cargo carted at CFS Container moved into CFS
16/07/2014 18/07/2014 18/07/2014 18/07/2014
1
Cargo stuffed & Container moved from CFS to Port Container loaded onboard M.V. Arezoo v-ISC 0509
18/07/2014 28/07/2014
1 10
29/07/2014 10/08/2014 11/08/2014 13/08/2014 16/08/2014
11 22 23 25 28
17/08/2014 19/08/2014 20/08/2014 21/08/2014
29 31 32 33
29/08/2014 01-09-2014
41 43
Mum to B.Abbas Vessel sailed JNP for Bandar Abbas Bandar Abbas Vessel arrived Bandar Abbas Vessel berth at Bandar Abbas Container discharged from vessel Transhipment documentation completed Bandar Abbas to Astara Container moved out from gate of B. Abbas for Amirabad Container reached Amirabad port from B.Abbas Amirabad Container loaded on M.V.Begey M.V. Begey sailed Amirabad Amirabad to Astrakhan Container reached Astrakhan from Amirabad Astrakhan Container delivery taken
Movement of Container by road to Amirabad port for transhipment to Olya Port - Russia
29
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC INSTC 2 X 20ft Containers FLAGGED OFF from Nhava Sheva
Mr Shankar Shinde and Mr. Sohel Kazani briefs house on INSTC Project during Flag off at Nhava Sheva Port , India
Ms Seema Bisht , Commissioner of Customs, Mr. Rajiv Kapoor , Addnl Commissioner of Customs , Nhava Sheva along with other trade Members Flag's off Containers for INSTC route
Bandar Abbas truck Terminal FFFAI delegates visit Truck terminus for meetings with drivers and trucks inspection
Customs inspection of cargo at Container Depot,Baku ,Azerbaijan
Baku Container destuff
30
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC Shipment Documents
Baku Customs Declaration
31
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC
CMR
32
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC Shipment Transhipment documents
Baku Customs copy
Trucking GPS Tracking system in at RMTO tehran
Truck Location - GPS
Truck Location - GPS3
33
3
Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC
Azerbaijan Road Infrastructure Meetings with Azerbaijan Authorities
Mr. Teymur Mammadov –Chief of Cargo and Commercial deptt, Railways – Azerbaijan meeting with Mr. Shankar Shinde and Dr. Ronald D'Souza
Road Infrastructure
Mr. Azer Aliyev, Mr. Ali Yasimou, Head of Transport & Policy, Secretary, Elmur Kazimali – Head of International Organisation, Teymur Abbsov, Senior Advisor, Road Transport Division, Azerbaijan meeting with Mr. Shankar Shinde ,FFFAI, Dr. Ronald D'souza, Mr. T.R Meena , First Secretary , Indian Embassy office in Azerbaijan
Mr. Vahid Aliyer – Azerbaijan Baku Port meeting with Mr. Shankar Shinde , FFFAI and Dr Ronald D'Souza ,Rahul Shipping in Baku
Hidayat Astanov – head of International Road Transport Division meeting with Mr. Shankar Shinde, FFFAI
34
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION
35
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
36
INSTC
INSTC
INSTC
INSTC
INSTC
INSTC INSTC
INSTC
S.No. INSTC
India Export To U Arab Emts India Export To U S A India Export To Singapore India Export To China P Rp India Export To Hong Kong India Export To Netherland India Export To Saudi Arab India Export To U K India Export To Germany India Export To Japan India Export To Brazil India Export To Belgium India Export To Unspecified India Export To Indonesia India Export To Bangladesh Pr India Export To South Africa India Export To France India Export To Malaysia India Export To Italy India Export To Korea Rp India Export To Sri Lanka Dsr India Export To Vietnam Soc Rep India Export To Turkey India Export To Kenya India Export To Israel India Export To Thailand India Export To Iran India Export To Nepal India Export To Taiwan India Export To Egypt A Rp India Export To Spain India Export To Nigeria India Export To Bahamas
Country Name
19,783,205.07 19,674,080.47 7,399,496.63 7,352,956.23 6,689,817.16 5,737,255.76 5,324,443.04 4,687,821.74 3,940,810.59 3,321,415.89 3,287,202.20 2,992,640.23 2,954,168.02 2,899,608.70 2,798,257.77 2,780,338.15 2,710,585.55 2,414,350.85 2,377,927.87 2,287,024.72 2,168,769.33 2,156,284.25 2,152,437.88 2,052,569.66 2,034,668.32 2,031,024.16 1,825,480.70 1,680,555.92 1,655,512.26 1,571,394.15 1,559,232.50 1,491,668.87 1,449,976.69
36,316.65 36,155.22 13,619.24 13,534.88 12,279.20 10,565.02 9,785.78 8,612.54 7,246.20 6,100.06 6,048.53 5,507.30 5,437.47 5,331.30 5,144.99 5,106.93 4,986.03 4,444.07 4,372.61 4,202.25 3,983.87 3,967.37 3,963.66 3,770.34 3,739.71 3,733.17 3,351.07 3,088.84 3,043.97 2,897.33 2,865.75 2,740.04 2,669.86
12.1 12.04 4.53 4.5 4.09 3.51 3.26 2.87 2.41 2.03 2.01 1.83 1.81 1.77 1.71 1.7 1.66 1.48 1.46 1.4 1.33 1.32 1.32 1.26 1.25 1.24 1.12 1.03 1.01 0.96 0.95 0.91 0.89
18,463,844.78 23,672,696.25 7,548,221.46 9,059,278.33 7,725,823.97 4,871,991.69 7,383,685.54 5,927,191.90 4,545,172.84 4,126,363.05 3,383,432.97 3,855,294.01 6,268,985.04 2,967,288.38 3,722,567.06 3,078,695.09 3,101,914.66 2,540,769.59 3,185,838.08 2,544,466.04 2,778,753.49 3,324,265.67 2,703,539.98 2,366,060.19 2,275,766.50 2,245,924.06 2,975,416.25 2,175,100.57 1,205,668.27 1,557,233.90 1,748,642.46 1,617,232.00 133,543.40
April‐2013‐March‐
30,497.93 39,165.45 12,600.94 14,829.31 12,734.47 7,991.53 12,214.58 9,787.38 7,504.47 6,816.06 5,546.60 6,356.31 10,491.13 4,905.98 6,136.97 5,076.94 5,119.27 4,196.87 5,268.13 4,204.30 4,557.61 5,440.21 4,432.48 3,892.65 3,747.03 3,707.65 4,921.44 3,589.17 1,989.22 2,564.10 2,883.78 2,666.39 233.39
9.72 12.46 3.97 4.77 4.07 2.56 3.89 3.12 2.39 2.17 1.78 2.03 3.3 1.56 1.96 1.62 1.63 1.34 1.68 1.34 1.46 1.75 1.42 1.25 1.2 1.18 1.57 1.15 0.63 0.82 0.92 0.85 0.07
‐6.67 20.32 2.01 23.21 15.49 ‐15.08 38.68 26.44 15.34 24.24 2.93 28.83 112.21 2.33 33.03 10.73 14.44 5.24 33.98 11.26 28.13 54.17 25.6 15.27 11.85 10.58 62.99 29.43 ‐27.17 ‐0.9 12.15 8.42 ‐90.79
‐16.02 8.33 ‐7.48 9.56 3.71 ‐24.36 24.82 13.64 3.56 11.74 ‐8.3 15.42 92.94 ‐7.98 19.28 ‐0.59 2.67 ‐5.56 20.48 0.05 14.4 37.12 11.83 3.24 0.2 ‐0.68 46.86 16.2 ‐34.65 ‐11.5 0.63 ‐2.69 ‐91.26
% % Growth Growth Values in Values in % Share Values in Rs. Lacs % Share Values in Rs. Lacs in INR in USD US$ Million US$ Million
April‐2012‐
4 MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Table 4.1
4.0. statistics / infrastructure INSTC Potential volume
34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66
37
INSTC INSTC
INSTC
INSTC
INSTC
INSTC
INSTC
INSTC
S.No. INSTC
India Export To Oman India Export To Australia India Export To Russia India Export To Tanzania Rep India Export To Pakistan Ir India Export To Canada India Export To Mexico India Export To Yemen Republc India Export To Mauritius India Export To Iraq India Export To Philippines India Export To Switzerland India Export To Algeria India Export To Kuwait India Export To Jordan India Export To Mozambique India Export To Colombia India Export To Poland India Export To Sudan India Export To Ethiopia India Export To Ghana India Export To Denmark India Export To Chile India Export To Qatar India Export To Sweden India Export To Peru India Export To Baharain Is India Export To Myanmar India Export To Argentina India Export To Portugal India Export To Ukraine India Export To Senegal India Export To Angola
Country Name
14,11,464.25 12,79,380.49 12,49,285.78 11,73,292.05 11,23,262.97 11,08,246.48 8,86,219.50 8,02,402.33 7,13,661.96 6,97,277.74 6,46,549.08 6,07,906.98 5,93,469.61 5,77,829.97 5,45,264.63 5,44,520.20 4,96,577.53 4,41,237.41 4,11,556.32 4,08,162.58 4,04,967.15 3,84,977.74 3,75,900.08 3,74,633.57 3,73,527.33 3,47,157.52 3,28,366.74 2,96,070.66 2,94,094.08 2,87,387.33 2,83,140.72 2,67,321.84 2,65,962.37
2,599.49 2,348.65 2,295.68 2,152.25 2,064.79 2,036.58 1,628.24 1,477.27 1,310.80 1,278.13 1,187.19 1,117.28 1,088.73 1,061.08 1,000.57 1,001.18 912.12 810.85 755.12 748.82 744.12 707.29 690 687.18 686.15 637.93 603.47 544.66 539.95 528.46 519.79 490.24 488.79
0.86 0.78 0.76 0.72 0.69 0.68 0.54 0.49 0.44 0.43 0.4 0.37 0.36 0.35 0.33 0.33 0.3 0.27 0.25 0.25 0.25 0.24 0.23 0.23 0.23 0.21 0.2 0.18 0.18 0.18 0.17 0.16 0.16
17,20,715.08 13,94,761.01 12,99,132.33 20,91,140.55 13,94,244.42 12,35,946.26 13,54,183.30 7,88,566.59 6,07,735.73 5,51,631.21 8,60,362.18 10,86,112.75 6,44,574.46 6,45,996.24 9,82,594.10 7,67,862.84 6,11,469.02 6,02,667.30 5,20,758.27 4,95,763.60 5,04,080.58 4,60,968.03 4,02,715.62 6,03,542.11 4,43,861.47 3,76,431.36 3,77,983.43 4,79,618.92 3,70,755.94 3,80,725.71 2,92,992.54 2,57,981.03 3,26,565.64
April-2013-March-
2,820.82 2,298.54 2,147.43 3,401.47 2,294.36 2,039.47 2,222.60 1,306.88 1,000.18 916.68 1,418.01 1,817.71 1,068.78 1,065.14 1,595.66 1,257.17 1,007.41 993.28 862.14 818.2 830.76 761.7 663.76 988.97 732.3 620.26 641.97 785.46 611.36 626.79 481.05 426.45 535.95
0.91 0.73 0.68 1.1 0.73 0.65 0.71 0.42 0.32 0.29 0.45 0.57 0.34 0.34 0.52 0.4 0.32 0.32 0.27 0.26 0.27 0.24 0.21 0.32 0.23 0.2 0.2 0.25 0.2 0.2 0.15 0.14 0.17
21.91 9.02 3.99 78.23 24.12 11.52 52.8 -1.72 -14.84 -20.89 33.07 78.66 8.61 11.8 80.2 41.02 23.14 36.59 26.53 21.46 24.47 19.74 7.13 61.1 18.83 8.43 15.11 61.99 26.07 32.48 3.48 -3.49 22.79
8.51 -2.13 -6.46 58.04 11.12 0.14 36.5 -11.53 -23.7 -28.28 19.44 62.69 -1.83 0.38 59.48 25.57 10.45 22.5 14.17 9.27 11.64 7.69 -3.8 43.92 6.73 -2.77 6.38 44.21 13.23 18.61 -7.45 -13.01 9.65
% % Growth Growth Values in Values in Values in Rs. Lacs % Share Values in Rs. Lacs % Share in INR in USD US$ Million US$ Million
April-2012-
4 MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Table 4.2
38
INSTC
INSTC INSTC INSTC
INSTC INSTC INSTC
INSTC
INSTC INSTC INSTC INSTC
INSTC
100
S.No. INSTC
67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99
S.No. INSTC
India Export To Sierra Leone India's Total Export
Country Name
India Export To Benin India Export To Afghanistan Tis India Export To Uganda India Export To Morocco India Export To Djibouti India Export To Malta India Export To Cote D' Ivoire India Export To Ireland India Export To Austria India Export To Hungary India Export To Finland India Export To New Zealand India Export To Greece India Export To Tunisia India Export To Togo India Export To Kazakhstan India Export To Romania India Export To Slovenia India Export To Ecuador India Export To Syria India Export To Czech Republic India Export To Lebanon India Export To Cameroon India Export To Zambia India Export To Venezuela India Export To Norway India Export To Bhutan India Export To Panama Republic India Export To Guatemala India Export To Libya India Export To Guinea India Export To Korea Dp Rp India Export To Congo P Rep
Country Name
479.13 472.63 465 426.56 411.86 398.22 395.97 386.69 328.58 323.74 317.27 302.06 300.13 298.79 299.88 286.23 283.15 273.79 263.55 258.77 251.4 250.55 250.98 243.08 234.14 234.6 233.22 226.49 224.61 215.3 206.07 202.78 199.12
0.16 0.16 0.15 0.14 0.14 0.13 0.13 0.13 0.11 0.11 0.11 0.1 0.1 0.1 0.1 0.1 0.09 0.09 0.09 0.09 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.07 0.07 0.07 0.07 0.07
1,00,327.44 1607,54,477.93
184.23 2,95,482.67
0.06
60,057.71 1864,12,987.07
April-2013-March-
4,63,636.82 2,87,834.82 3,23,971.59 2,32,929.13 1,80,462.98 1,02,827.52 1,81,363.39 2,50,749.79 2,06,915.26 2,08,699.10 2,52,944.61 1,71,030.15 2,02,496.89 1,65,804.37 2,71,961.36 1,55,954.78 1,72,902.22 1,27,456.43 1,76,059.69 1,41,333.43 2,37,555.52 1,77,522.94 1,57,010.56 2,27,504.94 1,19,456.66 1,38,908.57 2,03,854.65 1,28,527.51 1,28,931.46 1,73,690.74 1,25,516.05 1,14,331.85 1,27,676.49
763.97 474.25 534.28 385.52 300.46 167.9 298.83 413.85 342.37 344.78 415.49 281.95 335.07 273.74 443.63 258.17 286.1 211.91 290.38 234.79 387.83 293.44 259.62 375.96 196.8 229.06 335.66 211.4 212.36 287.74 206.24 186.81 210.51
0.24 0.15 0.17 0.12 0.1 0.05 0.1 0.13 0.11 0.11 0.13 0.09 0.11 0.09 0.14 0.08 0.09 0.07 0.09 0.07 0.13 0.09 0.08 0.12 0.06 0.07 0.11 0.07 0.07 0.09 0.07 0.06 0.07
78 12.04 27.94 0.35 -19.35 -52.43 -15.81 19.24 15.72 18.46 46.65 3.85 24.05 1.73 67.01 0.03 12.15 -14.73 22.78 0.53 73.66 30.04 15.04 72.07 -6.47 8.78 60.85 4.27 5.5 48.36 12.03 4 17.93
59.45 0.34 14.9 -9.62 -27.05 -57.84 -24.53 7.02 4.2 6.5 30.96 -6.66 11.64 -8.38 47.94 -9.8 1.04 -22.6 10.18 -9.27 54.27 17.12 3.44 54.67 -15.95 -2.36 43.92 -6.66 -5.45 33.65 0.08 -7.88 5.72
100.87 3,07,680.19
0.03
-40.14 15.96
-45.25 4.13
% % Growth Growth Values in Values in Values in Rs. Lacs % Share Values in Rs. Lacs % Share in INR in USD US$ Million US$ Million
April-2012-
2,60,476.27 2,56,913.51 2,53,216.92 2,32,115.60 2,23,755.33 2,16,176.30 2,15,416.41 2,10,291.03 1,78,811.36 1,76,180.70 1,72,482.58 1,64,682.02 1,63,236.67 1,62,992.28 1,62,840.10 1,55,913.79 1,54,176.26 1,49,474.91 1,43,393.38 1,40,587.13 1,36,792.18 1,36,514.90 1,36,482.37 1,32,216.02 1,27,720.81 1,27,699.86 1,26,739.17 1,23,265.61 1,22,209.92 1,17,077.46 1,12,040.37 1,09,939.39 1,08,263.56
April-2013-March-
% % Growth Growth Values in Values in % Share Values in Rs. Lacs % Share Values in Rs. Lacs in INR in USD US$ Million US$ Million
April-2012-
4 MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION
Table 4.3
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
.No.
39
INSTC
INSTC INSTC INSTC
INSTC
INSTC INSTC
INSTC
INSTC
INSTC
INSTC
India Import from China P Rp India Import from U Arab Emts India Import from Saudi Arab India Import from Switzerland India Import from U S A India Import from Iraq India Import from Kuwait India Import from Qatar India Import from Indonesia India Import from Germany India Import from Venezuela India Import from Korea Rp India Import from Australia India Import from Japan India Import from Nigeria India Import from Iran India Import from Belgium India Import from Malaysia India Import from South Africa India Import from Hong Kong India Import from Singapore India Import from Angola India Import from U K India Import from Thailand India Import from Brazil India Import from Italy India Import from France India Import from Russia India Import from Mexico India Import from Taiwan India Import from Chile India Import from Canada India Import from Ukraine India Import from Egypt A Rp
Country Name
April-2012-March-2013 April-2013-March-2014 Values in US$ Values in US$ Values in Rs. Lacs % Share Values in Rs. Lacs % Share Million Million 284,38,458.52 52,248.33 10.65 309,31,516.77 51,049.01 11.38 212,92,332.79 39,138.36 7.98 174,64,497.78 29,114.18 6.43 184,68,480.00 33,998.11 6.92 221,23,097.27 36,535.82 8.14 174,51,184.99 32,166.54 6.54 113,03,745.35 19,430.02 4.16 137,23,859.06 25,204.73 5.14 134,49,803.42 22,325.36 4.95 104,59,636.16 19,247.31 3.92 111,62,759.69 18,519.29 4.11 90,18,425.30 16,588.13 3.38 103,36,243.60 17,153.52 3.8 85,45,778.37 15,693.08 3.2 95,14,610.55 15,733.62 3.5 80,96,569.76 14,879.49 3.03 90,69,831.77 15,023.67 3.34 77,93,366.10 14,325.79 2.92 77,21,381.37 12,771.56 2.84 76,83,453.41 14,117.67 2.88 84,38,442.94 13,940.13 3.11 71,33,725.25 13,105.12 2.67 75,28,759.82 12,471.48 2.77 71,21,710.96 13,085.70 2.67 60,97,739.56 10,160.94 2.24 67,54,720.77 12,412.29 2.53 57,29,713.46 9,495.42 2.11 65,62,221.03 12,086.11 2.46 86,44,426.03 14,208.82 3.18 63,02,560.76 11,594.46 2.36 62,93,558.32 10,332.08 2.32 54,53,675.79 10,046.87 2.04 64,67,550.31 10,752.61 2.38 54,19,876.33 9,951.06 2.03 55,79,104.67 9,212.36 2.05 48,31,962.81 8,887.89 1.81 35,88,510.00 6,079.37 1.32 43,03,011.83 7,907.17 1.61 44,16,976.93 7,333.50 1.63 40,76,395.09 7,486.38 1.53 41,13,124.36 6,774.17 1.51 38,94,642.34 7,157.54 1.46 37,16,260.38 6,086.33 1.37 34,23,118.44 6,293.09 1.28 36,05,001.63 6,046.44 1.33 29,11,298.10 5,352.61 1.09 32,50,674.84 5,360.15 1.2 26,43,882.72 4,825.76 0.99 23,06,652.37 3,807.74 0.85 25,65,242.04 4,711.27 0.96 25,15,603.41 4,159.27 0.93 25,35,102.98 4,652.36 0.95 21,52,474.51 3,564.34 0.79 23,02,095.04 4,231.56 0.86 23,59,946.08 3,899.25 0.87 21,87,342.42 4,037.62 0.82 22,35,776.52 3,673.28 0.82 21,57,624.16 3,963.35 0.81 24,39,370.80 4,042.87 0.9 16,21,374.25 2,992.31 0.61 18,36,043.08 3,020.86 0.68 15,27,698.70 2,800.22 0.57 19,78,135.23 3,270.92 0.73 14,47,143.75 2,657.47 0.54 11,03,757.15 1,830.35 0.41 13,85,426.15 2,553.47 0.52 14,39,114.11 2,388.96 0.53
% % Growth Growth in USD in INR 8.77 -2.3 -17.98 -25.61 19.79 7.46 -35.23 -39.6 -2 -11.42 6.72 -3.78 14.61 3.41 11.34 0.26 12.02 0.97 -0.92 -10.85 9.83 -1.26 5.54 -4.84 -14.38 -22.35 -15.17 -23.5 31.73 17.56 -0.14 -10.89 18.59 7.02 2.94 -7.42 -25.73 -31.6 2.65 -7.26 0.9 -9.51 -4.58 -14.97 5.31 -3.92 11.66 0.14 -12.76 -21.1 -1.94 -11.72 -15.09 -23.39 2.51 -7.85 2.21 -9.02 13.06 2.01 13.24 0.95 29.48 16.81 -23.73 -31.12 3.88 -6.44
4 MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Table 4.4
INSTC
35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
40
INSTC INSTC
INSTC
INSTC
INSTC
INSTC
INSTC
INSTC INSTC
INSTC
INSTC
.No.
India Import from Netherland India Import from Israel India Import from Colombia India Import from Vietnam Soc Rep India Import from Turkey India Import from Oman India Import from Unspecified India Import from Libya India Import from Spain India Import from Sweden India Import from Myanmar India Import from Morocco India Import from Argentina India Import from Finland India Import from Yemen Republc India Import from Norway India Import from Jordan India Import from Austria India Import from Ecuador India Import from Poland India Import from Gabon India Import from Brunei India Import from Tanzania Rep India Import from New Zealand India Import from Algeria India Import from Baharain Is India Import from Czech Republic India Import from Bangladesh Pr India Import from Sri Lanka Dsr India Import from Peru India Import from Nepal India Import from Denmark India Import from Pakistan Ir
Country Name
April-2012-March-2013 April-2013-March-2014 Values in US$ Values in US$ Values in Rs. Lacs % Share Values in Rs. Lacs % Share Million Million 12,94,749.57 2,379.09 0.49 18,92,879.51 3,140.21 0.7 12,81,441.93 2,356.66 0.48 13,88,846.20 2,311.71 0.51 12,81,251.60 2,352.79 0.48 29,99,627.90 4,970.62 1.1 12,59,442.24 2,314.78 0.47 15,56,862.55 2,594.29 0.57 11,06,090.55 2,034.18 0.41 4,59,559.53 760.74 0.17 10,93,145.52 2,009.72 0.41 17,84,637.25 2,954.49 0.66 10,46,971.23 1,924.94 0.39 15,99,184.24 2,663.55 0.59 9,98,030.08 1,834.80 0.37 2,64,475.55 451.54 0.1 9,89,376.79 1,815.66 0.37 11,17,286.96 1,843.54 0.41 9,15,570.24 1,681.43 0.34 10,15,923.72 1,679.56 0.37 7,70,118.21 1,412.69 0.29 8,38,606.13 1,394.82 0.31 7,12,677.65 1,309.03 0.27 5,47,209.03 894.58 0.2 6,50,435.38 1,198.71 0.24 8,50,152.98 1,394.54 0.31 6,00,537.79 1,106.85 0.23 6,43,662.57 1,056.43 0.24 5,15,269.50 958.92 0.19 4,72,737.13 782.18 0.17 5,14,019.78 944.98 0.19 4,55,181.05 747.02 0.17 5,11,172.81 942.28 0.19 3,67,891.10 618.38 0.14 5,03,394.79 929.22 0.19 5,01,897.47 828.92 0.18 4,70,824.03 872.54 0.18 1,58,780.52 255.43 0.06 4,69,494.51 863.25 0.18 3,78,587.15 623.51 0.14 4,47,986.89 817.04 0.17 5,07,720.69 868.5 0.19 4,40,597.91 814.8 0.17 4,57,496.70 763.6 0.17 4,09,604.81 752.88 0.15 4,30,050.09 724.81 0.16 3,79,980.43 696.62 0.14 3,72,827.80 619.48 0.14 3,71,539.82 683.55 0.14 5,23,166.26 860.9 0.19 3,59,671.24 664.66 0.13 3,45,896.54 564.97 0.13 3,50,212.17 644.26 0.13 3,14,528.04 518.85 0.12 3,46,792.73 639.33 0.13 2,77,491.62 462.79 0.1 3,40,419.73 625.81 0.13 4,12,963.78 677.38 0.15 3,05,080.52 561.32 0.11 3,65,779.50 604.95 0.13 2,95,806.57 543.1 0.11 3,19,002.32 526.81 0.12 2,94,972.26 541.71 0.11 2,69,302.25 445.36 0.1 2,94,370.34 541.87 0.11 2,60,657.60 426.88 0.1
% % Growth Growth in USD in INR 46.2 31.99 8.38 -1.91 134.12 111.26 23.62 12.08 -58.45 -62.6 63.26 47.01 52.74 38.37 -73.5 -75.39 12.93 1.54 10.96 -0.11 8.89 -1.26 -23.22 -31.66 30.71 16.34 7.18 -4.56 -8.25 -18.43 -11.45 -20.95 -28.03 -34.37 -0.3 -10.79 -66.28 -70.73 -19.36 -27.77 13.33 6.3 3.84 -6.28 4.99 -3.73 -1.88 -11.07 40.81 25.95 -3.83 -15 -10.19 -19.47 -19.98 -27.61 21.31 8.24 19.9 7.77 7.84 -3 -8.7 -17.79 -11.45 -21.22
4 MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Table 4.5
69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100
.No.
41
INSTC INSTC
INSTC
INSTC
INSTC
INSTC
INSTC
INSTC
INSTC
INSTC
INSTC
INSTC
India Import from Equtl Guinea India Import from Azerbaijan India Import from Philippines India Import from Ireland India Import from Congo P Rep India Import from Cameroon India Import from Cote D' Ivoire India Import from Portugal India Import from Zambia India Import from Romania India Import from Mozambique India Import from Ghana India Import from Hungary India Import from Korea Dp Rp India Import from Benin India Import from Estonia India Import from Costa Rica India Import from Tunisia India Import from Belarus India Import from Togo India Import from Bhutan India Import from Afghanistan Tis India Import from Chad India Import from Guinea Bissau India Import from Lao Pd Rp India Import from Kazakhstan India Import from Sudan India Import from Slovenia India Import from Greece India Import from Panama Republic India Import from Kenya India Import from Papua N Gna India's Total Import
Country Name
April-2012-March-2013 April-2013-March-2014 Values in US$ Values in US$ Values in Rs. Lacs % Share Values in Rs. Lacs % Share Million Million 2,86,584.21 524.83 0.11 1,86,861.36 301.82 0.07 2,84,778.89 521.39 0.11 6,85,702.70 1,136.83 0.25 2,74,358.42 504 0.1 2,37,324.84 391.78 0.09 2,70,658.10 497.15 0.1 3,63,476.55 603.09 0.13 2,50,088.34 454.72 0.09 54,199.93 90.02 0.02 2,41,352.92 443.18 0.09 1,62,317.33 268.16 0.06 2,10,488.80 384.23 0.08 1,79,056.37 298.4 0.07 2,06,058.09 378.21 0.08 2,07,624.49 340.15 0.08 1,76,911.41 324.87 0.07 1,45,368.92 243.15 0.05 1,69,303.89 311.12 0.06 2,26,829.07 375.65 0.08 1,58,875.13 291.49 0.06 1,78,082.53 292.96 0.07 1,51,596.27 277.61 0.06 2,25,029.63 370.57 0.08 1,43,196.61 262.91 0.05 1,33,438.29 220.48 0.05 1,41,480.11 259.39 0.05 6,788.49 12.48 0 1,34,996.28 245.73 0.05 1,00,098.27 167.61 0.04 1,20,127.66 219.9 0.05 71,008.87 115.3 0.03 1,19,693.27 219.72 0.04 1,23,594.06 203.99 0.05 1,16,567.60 215.34 0.04 55,730.38 91.56 0.02 1,16,201.59 214.55 0.04 94,705.35 157.77 0.03 96,799.41 177.41 0.04 94,858.18 156.34 0.03 89,244.65 164 0.03 91,932.97 152.17 0.03 86,097.21 159.55 0.03 1,28,759.29 208.77 0.05 84,524.18 157.16 0.03 17,123.12 30.07 0.01 76,754.56 140.2 0.03 67,775.96 109.68 0.02 76,479.58 138.64 0.03 53,886.76 91.2 0.02 76,278.01 139.99 0.03 3,97,849.12 656.33 0.15 69,302.80 127.14 0.03 2,69,568.56 436.18 0.1 63,906.41 117.5 0.02 71,394.52 118.12 0.03 60,957.91 111.87 0.02 65,885.10 109.44 0.02 59,674.14 109.55 0.02 25,148.85 41.65 0.01 57,736.47 105.95 0.02 76,311.15 126.63 0.03 57,059.16 104.64 0.02 1,08,384.14 178.3 0.04 2659,69,632.75 4,89,000.46 2700,85,613.90 4,47,894.69
% % Growth Growth in USD in INR -34.8 -42.49 140.78 118.04 -13.5 -22.27 34.29 21.31 -78.33 -80.2 -32.75 -39.49 -14.93 -22.34 0.76 -10.06 -17.83 -25.15 33.98 20.74 12.09 0.5 48.44 33.49 -6.81 -16.14 -95.2 -95.19 -25.85 -31.79 -40.89 -47.57 3.26 -7.16 -52.19 -57.48 -18.5 -26.46 -2.01 -11.88 3.01 -7.21 49.55 30.85 -79.74 -80.87 -11.7 -21.77 -29.54 -34.22 421.58 368.84 288.97 243.07 11.72 0.53 8.08 -2.17 -57.86 -61.98 32.17 19.52 89.95 70.39 1.55 -8.41
4 MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Table 4.6
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION
Table 4.7
Table 4.8
Values of India Export can be done via INSTC
Values of India Import can be done via INSTC
April-2013-March-2014 (US$ Million) Country Name
Values in US$ Million
UK Netherland Germany Italy France Iran Turkey Spain Russia Switzerland Poland Iraq Denmark Sweden Portugal Ukraine Afghanistan Tis Finland Ireland Czech Republic Hungary Austria Greece Lebanon Romania Kazakhstan Syria Norway Slovenia
9,787 7,992 7,504 5,268 5,119 4,921 4,432 2,884 2,147 1,818 993 917 762 732 627 481 474 415 414 388 345 342 335 293 286 258 235 229 212
April-2013-March-2014 (US$ Million)
60,613
Country Name
Values in US$ Million
Switzerland Iraq Germany Belgium Iran UK Italy Russia France Netherland Spain Ukraine Sweden Azerbaijan Finland Austria Turkey Norway Kazakhstan Poland Ireland Czech Republic Denmark Pakistan Ir Romania Portugal Hungary Afghanistan Tis Belarus Slovenia Estonia Greece
19,430 18,519 12,772 10,753 10,332 6,046 4,159 3,899 3,564 3,140 1,844 1,830 1,680 1,137 1,056 829 761 747 656 624 603 519 445 427 376 340 220 209 158 118 115 109 1,07,418
42
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION
4.1. India A. Nhava Sheva (Mumbai)- PORT OF ORIGIN
Nhava Sheva Port terminal , JNPT/ GTI /NSICT
1
Ports : Terminals & Facilities :
Mumbai port is now primarily a break bulk port and is having more of project cargoes, bulk cargoes and coastal movements with more than 30 berths, 9.5 mtr draft and 3 big CFS, 3 warehoused based Rail sidings, 2 open Rail sidings. Nhava Sheva has 3 containers Terminal, handling approx. 100,000 TEUs of traffic every month. At any given movement it can handle 86000 x 20’cntrs. Draft of all three terminals is 12.5Mtrs. a. JNPCT is owned by the government and has the c. GTI is jointly owned by Maersk and Container Corporation of India has quay length of 712 Mtrs facility for loading container trains. The Quay and operates with 10 gantries. They have new & length is 680 Mtrs with 8 gantries. It also has 2 the more advance gantries and quay side handling Liquid berth and the shallow berths are owned equipments, GTI therefore able operate faster by them. reducing the occupancy of berth by vessels b. NSICT which is owned by DP World. It has a Quay calling its terminal. length of 600Mtrs with 8 gantries.
2.
3.
CFS:
There are 32 CFS around the Nhava Sheva port, varying in sizes, from 7 acres to 50 acres and each having enclosed warehousing capacities from 10,000 sq. ft to 200,000 sq. ft.
Agents / Freight forwarder
AT Mumbai / JNPT there are more than 1500 Licensed and Registered agents operating as on date. There are many NVOCC who have tied up with the licensed agents who provide comprehensive service under one roof.
43
Also 4 CFS are connected by rail where containers and cargo can be brought from inland destinations. Beside there are more than 40 Empty yards for storage and repairs of empty containers.
Agents/service providers out here operate at a minimum marginal profit of USD 10 per TEU to USD 100 per TEU depending on volume and nature of cargo etc.
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION 4.
Ports : Terminals & Facilities :
Mumbai port is now primarily a break bulk port and is having more of project cargoes, bulk cargoes and coastal movements with more than 30 berths, 9.5 mtr draft and 3 big CFS, 3 warehoused based Rail sidings, 2 open Rail sidings.
Nhava Sheva has 3 containers Terminal, handling approx. 100,000 TEUs of traffic every month. At any given movement it can handle 86000 x 20’cntrs. Draft of all three terminals is 12.5Mtrs. c. GTI is jointly owned by Maersk and Container a. JNPCT is owned by the government and has the Corporation of India has quay length of 712 Mtrs facility for loading container trains. The Quay length is 680 Mtrs with 8 gantries. It also has 2 the and operates with 10 gantries. They have new & 6. Liquid berth and the shallow berths are owned more advance gantries and quay side handling by them. equipments, GTI therefore able operate faster reducing the occupancy of berth by vessels b. NSICT which is owned by DP World. It has a Quay calling its terminal. length of 600Mtrs with 8 gantries.
5.
CFS:
There are 32 CFS around the Nhava Sheva port, varying in sizes, from 7 acres to 50 acres and each having enclosed warehousing capacities from 10,000 sq. ft to 200,000 sq. ft.
Also 4 CFS are connected by rail where containers and cargo can be brought from inland destinations. Beside there are more than 40 Empty yards for storage and repairs of empty containers.
Agents / Freight forwarder
AT Mumbai / JNPT there are more than 1500 Licensed and Registered agents operating as on date. There are many NVOCC who have tied up with the licensed agents who provide comprehensive service under one roof.
Agents/service providers out here operate at a minimum marginal profit of USD 10 per TEU to USD 100 per TEU depending on volume and nature of cargo etc.
Lines /Operators
The total number of Container Main Line Operators operating here are about 35 to 40 in Nhava Sheva and more than 100 NVOCC companies providing containers for almost any destination around the world. The container freights are competitive from Nhava Sheva compared to any other container terminal in India. Ocean freights depend upon the volume of exports cargo /containers and are negotiable.
The THC of all three terminals is in variance with each other from Rs.4500 to Rs.5500, NSICT being the most economical and GTI terminal being the most expensive.
Observation / Comments on cost reduction and Way ahead:
a. Cargo operation / Transportation: Best way to move the cargo is to Stuff the container at factory and move it directly to port CY. Alternatively if the volume is 2200 tons at a time, the most feasible option would be to move by rail to one of the CFS and stuff the containers directly from the rail wagon and move immediately to port thus saving on multiple handling and transportation cost. b. CFS Charges: The published tariff of CFSs is reasonable for exports, but varies from CFS to CFS and could be negotiated for volume. For imports, the cost could come down to half, if pre-negotiated by importers.
c. Port THC: The Port THC is very much economical than any other ports in INSTC. d. Agency Charges: This charge varies with agencies between USD 20 to USD 40 per TEU based on responsibility, complexity of cargo and operations performed by CHA. e. Freight for Bandar Abbas: The freight for Bandar Abbas ranges from USD 600 to USD 700 per TEU for direct vessel.
44
The reason for such a high level of freight is as follows IRISIL is Iran Government Shipping Co. has monopoly in this sector. It gets priority in berthing at Bandar Abbas, however the waiting at load / discharge port for their vessel is approx. 5 days which increases their cost of operation. Also the export volumes are low from Nhava Sheva, thus the vessel has to make one more call at Mundra to make the voyage operationally viable. In comparison, if the volumes are similar to Dubai sector, the feeder operators would get into competition and the freight rates could down to as low as USD 200 – 250 per TEU, which is the present market rate for Dubai. Also Dubai port is much further in distance compared to Bandar Abbas by Approx 100 nautical miles. If the Dubai feeder operators are promised immediate berthing and discharge within 24 hours at Bandar Abbas and assured volume of 150 – 300 TEUS per voyage, they could offer the rates of USD 200 - USD 250 per TEU.
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Thus to Conclude, a right start at the journey is very important for the voyage of the cargo which needs to be chosen keeping in mind the above complexities and options in mind.
4.2 IRAN A.
Bandar Abbas – Shahid Rajaee container Terminal
Shahid Rajaee Terminal at Bandar Abbas Port
1.
Terminals & Facilities The Bandar Abbas Port has 3 Terminals 1) Shahid Rajaee Terminal for container vessels, 2) Break Bulk Terminal for big ships and 3) One Terminal for small wooden crafts. yy The Shahid Rajaee Terminal has around 8 operational berths each having 3 to 4 Ship side gantries. The terminal was earlier managed by Tide Water LLC but due to the sanctions it is now being managed by another company and the PMO. Due to this change the output and the turnaround time has been badly affected and needs immediate attention. A vessel which used to turnaround in 12 to 24 hours now takes around 48 to 72 hours at berth. yy The operation from shipside to CY also has been privatized to various service providers which have adversely affected the planning and the discharge operations. The CFS and warehouse operations are resorted to only when the container needs to be either destuffed for examination or for storage. Most of the examination is done by the scanner and the risk management system. The Customs have a 3 tier recognition of agents based on which they are rated and Customs processes are carried out.
2.
Railway IRAN Railway Network Border crossings information The railway network converges all major parts of the country .
The western railway extension links to Turkey at the Razi (in Iran)–Kapikoi( in Turkey)border. The route to the west into Turkey terminates at Van Lake station and from then ferry boats are used for both freight wagons and international passenger traffic (baggage car only) across Lake Van, which is at an altitude of 1650m, to Tatvan. Northern connection to Azerbaijan, the Caucasus, and Russia has a bogie-changing station at Jolfa border ( Unfortunately because of the conflict between Azerbaijan and Armenia practically this railway is not operational and rail transport only limited to Azerbaijan Nakhjivan border Pronince) . Southern routes links to the Persian Gulf ports of Bandar Imam and Bandar Abbas. A line to the Caspian Sea ends at the terminal of Amirabad and at Bandar Turkaman, and is part of a North-South corridor. At north-east corridor RAI is connected (Mashad ,Sarakhs) to CIS countries. Southeast railways is connected to Pakistan and subIndian continent .( Zahedan-Mirjaveh railway which is 94 km (broad gauge 1676 mm.) long is linked to the railways of Pakistan and sub-Indian continent. From Zahedan gauge changes to normal gauge 1435 mm. cargoes are transhipped by cranes in Zahedan. It is worth mentioning that in Mirjaveh – zahedanroute Pakistan’s wagons and locomotives are being used in railway transportation to Pakistan.
45
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Comments on Cost / way ahead a. Transit THC
c. Agency charges:
The Import THC is USD177/ TEU and Export USD133/TEU.
An average shipping agent makes about USD 75 to 200 per container and a Customs Agent between USD 70 to 150 per container, freight broker approx. USD 10. This is due to the major drop in volumes after the sanctions. If the volumes are regular and business is given to an Agent in Bandar Abbas instead of the Tehran forwarders, they would be willing to operate at much reduced rate of USD 25 – 40 per container.
The Transit + Transshipment is considered in one category The PMO states that they have given more than 50% discount to the above category of containers which is true since their tariff is USD 129. In India, the JNPT charges Approx Rs.2400 per TEU container for a transit container by Road which is approx. USD40 per TEU.
d. Thus to conclude, the main trade planning is out of Tehran and the Customs as per the new EDI regime and new laws are working pretty efficiently. The banking and payments are an issue as on date. Also due to the change in operator and the inefficiency of port management, the logistics & operating costs of Lines has increased, resulting in higher freight. Due to the congestion and berthing delays, many of the big feeder operators like Simatech had withdrawn from Bandar Abbas further affecting their position.
Thus we feel that there is a lot of scope for improvement in rates by the Ports in IRAN. b. Shifting charges The Shifting charges are approx. USD 80 are being charged by Agents. This could be avoided for the Rail movements if the containers are manifested in advance at the port and moved directly from vessel side to Rail yard. Also the lift on/ off charges at the Rail yard should be on account the private Rail companies.
IRAN – AMIRABAD Port 1. Terminals & facilities:
3. Custom System:
The port of Amirabad has 9 jetties with a draft of 4.60 meters, 8 of them are multipurpose and 1 is dedicated for grain handling. It has 4 warehouses of 10,000 sq.mtrs each and an open port warehouse of 1000,000 sq. mtrs. It also has a free zone, own power station, independent PQ station / Lab for testing and Custom team and a Bank within the port area. Also some temperature controlled warehouses of approx 20,000 sq ft would be available in the vicinity of the port shortly. The port also has facility of 120 plug points for reefer containers.
The Customs has a single window operation system here and the average time taken for clearance is maximum 2 hours. There are no trade organizations / offices in this area and just 1 hotel in the vicinity. Most of the agro trade between Iran and Russia is conducted from Amirabad.
4. Railway: This is the only port on the Caspian Sea (North Iran) which is connected by Rail to the Bandar Abbas (South Iran) and would also connect to the new Rail link that is expected to be inaugurated shortly from Bandar Abbas till north of Kazakhstan (approx. 10,400 kms).
2. Lines / operators: The main line operating in Amirabad is Khazar Shipping. They have 22 multipurpose ships, plying between Amirabad, Bandar Anzali, Turkmenbashi, Aktau and Astrakhan and have offices at all locations.
5. Agents: There are many service providers / NVOCC operators at Amirabad; however they do own containers and could provide one window solutions for all our requirements.
46
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION IRAN Railway Network Border crossings Map/ Information
Map No 4.1.1Iran Rail Tracks details with tonnage capacity
Observation /Comments on cost and way ahead: a. The Transit THC: As per the PMO, tariff at the Caspian Sea ports is 70% of the tariff of Bandar Abbas port. It is approx. USD 90 per TEU
owners. The containers are loaded on deck of the break bulk vessels and hence the rate fluctuates based on demand and supply every month.
b. Shifting charges: This is very nominal here since all operation is carried out by SEZ contractor. It is approx. USD 40 per TEU can also be avoided if agent in Amirabad is good.
e. The transit time from Bandar Abbas to Amirabad by Road is just 2 days and 5 days by Rail with cost being USD 700 and 500 respectively if negotiated for right volumes. To conclude, Amirabad is the best option for transit to Astrakhan, Aktau, Turkmenbashi and Baku by Sea, being not only a modern port with a capacity of handling 8 million tons of cargo, but also the most active, resourceful and ideally placed port for movement with an SEZ enabling the cargo interest to select the right cost, care and flexible trade route.
c. Custom Fee: It is the same as in Bandar Abbas. Once the transit fees are paid in Bandar Abbas, there is no need to pay at Amirabad. d. Freight Charges: This varies from USD 200 to USD 400per TEU depending on volume and relations with ship
47
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION
IRAN Transit Corridor : 1. Sarakhs is one of the main important areas in Iranian railways. About 88% of rail transit (incoming & outgoing transit to/from CIS countries ) is done in Sarakhs . Table 4.9
Transit Corridor Details
Distance in km
Potential
milion tones/year
BandarAbbas - Sarakhs
1619
5
Bandar Abbas – Bandar Amirabad
1795
1
Sarakhs – Razi
2013
2
Djolfa- Sarakhs
1936
2
Bandar e Emam–Sarakhs
1980
2
Bandar e Emam – Bandar Amirabad
1327
1.2
Bandar Abbas – Razi
2331
2
Bandar Abbas – Djolfa
2259
2
Bandar e Emam – Djolfa
1801
2.3
Razi – Bandar Amirabad
1374
1.2
Bandar Abbas– Incheboron
1975
1.5
Sarakhs – Mirjaveh
1868
1.2
Amirabad – Mirjaveh
2045
1.2
Mirjaveh - Razi
2590
1.5
48
Map No.4.1.2
The vehicle should travel over the aforementioned route. Drivers should observe the aforementioned trip duration. Driving over 10 hours (vehicle with one driver) daily is forbidden. Driver must stop at the police stations for controlling of permit. Driver must pay all fines due to driving violations and tickets must be presented to the officials at the exit broder. In case of loss of the permit,Drivers must immediately inform the nearest police station or transport & terminals organization of province. The permit must be submitted to the official of transport & terminals organization at the exit border. To keep the papers and documents issued by competent authorities,sufficient care must be taken.
M
5K
160
Aslandooz Astra 1888 1428 Bajgiran 1683 1253 1916 Bandar Abadan 2179 1785 1610 1172 Bandar Abbas 1265 849 651 1332 1635 Bandar Amirabad 515 170 1290 1104 1636 700 Bandar Anzali 1991 1597 2147 420 802 1563 1448 Bandar Boushehr 2806 2412 1858 2143 1121 2286 2263 1788 Bandar Chabahar 1725 1305 1948 98 1100 1384 1156 348 2006 Bandar Eman 2014 1620 2170 267 905 1586 1471 153 2016 195 Bandar Genave 1658 1255 1918 19 1191 1334 1106 439 2162 117 286 Bandar Khoramshahr 2391 1997 1822 960 212 1847 1848 590 1333 888 693 979 Bandar Lenge 1242 826 628 1309 1612 23 1540 2263 1361 1563 1311 1824 Bandar Neka 1338 922 817 1405 1708 216 1636 2359 1457 1659 1407 1920 Bandar Noshahr 1045 1146 1572 1061 1723 984 753 1406 2423 1113 1253 1063 1935 961 1057 Bashmagh 500 558 1800 1620 2100 1215 750 1910 2722 1672 1933 1622 2312 1192 1288 915 Bazargan 1818 1639 2116 1233 450 1930 2740 1681 1953 1641 2328 1210 1306 1264 600 Bilesavar 1553 1123 1786 238 1335 1202 974 583 2456 290 430 240 1123 1181 1275 931 1490 1509 Chazabe 2040 1532 455 2071 1431 946 1450 1786 1513 2123 2325 2073 1643 923 1112 1727 1950 1970 1941 Dogharoon 1560 1120 1597 1605 314 967 1828 2190 1650 1851 1599 1827 219 481 1249 1475 1500 1467 778 Incheboroon 170 420 1648 1475 1950 1073 600 1762 2577 1527 1785 1477 2162 1050 1146 905 300 265 1345 1810 1330 Jolfa 1321 1132 1638 683 1682 1047 802 1122 2485 735 1043 685 1894 1024 1120 475 1134 1255 553 1800 1300 1089 2140 1495 1983 1686 729 1362 2214 1917 2035 2237 1985 1934 706 895 1639 2050 1886 1853 522 1718 1416 1228 1730 519 1616 1142 897 864 2578 571 711 521 1404 1119 1215 1331 1351 1885 1401 1186 2429 2013 1002 1879 1151 1300 1843 1528 1422 1818 1551 1881 1363 1277 1816 2034 2347 2363 1871 564 1216 2200 2673 2291 1096 2005 982 2159 2152 1643 957 1897 1666 2024 1194 2136 2214 2285 2592 2657 2037 567 1426 2447 2496 2114 1246 1868 827 1794 1975 1488 780 1720 1511 1740 1039 1771 2037 2108 2415 2430 1860 901 1578 2270 100 495 1738 1535 2010 1130 665 1824 2635 1587 1847 1537 2222 1107 1203 945 400 210 1405 1868 1400 57 2046 1584 2073 1567 887 1452 2303 1784 2125 2326 2075 1788 864 1053 1721 1902 1975 1943 374 1810 503 600 1818 1245 2142 1237 770 1954 2770 1287 1977 1247 2354 1214 1310 648 722 1115 1973 1500 353 1674 1271 1934 35 1207 1350 1122 455 2178 133 302 995 1327 1423 1638 1657 2089 1615 1493 595 696 1842 1349 2011 1272 866 1694 2711 1410 1541 1351 2011 1249 1345 465 814 2015 1537 455 967 505 923 997 1300 335 365 1228 1966 1049 1251 999 1512 312 408 649 880 900 760 1078 600 738
INSTRUCTION 12345678-
Passage of vehicles which the extra length of cargo is more than mentioned size,is forbidden
Front Side: 1.5m from the center of the first axle of vehicle Rear Side: Truck: 3m from the center of the last axle of vehicle Trailer: 5m from the center of the last axle of vehicle
THE permitted Extra Length of Cargo on Vehicles:
CARGO TRANSPORTATION GENERAL REGULATIONS THE MAXIMUM WIDTH OF VEHICLES WITH CARGO:2.60M
Khosravi 1702 Loft Abad 353 1797 Mehran 2107 1080 2179 Mil 78 2352 1174 2448 685 Milak 2175 1313 2271 810 345 1150 1788 1069 2258 2554 1790 1887 835 1027 823 1886 921 2393 2637 701 2001 1897 2040 763 1927 2322 2573 712 990 807 1408 1828
4 Table 4.10
IRAN INTERNATIONAL ROUTE NETWORK/DISTANCE
49
Mirjave 2327 Nordouz 1169 1831 Sarakhs 2460 400 1975 Sero 1903 1553 2091 1263 Shalamche 2396 495 2009 198 Tamarchin 1651 795 1080 902 1050 937
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION The tariff rate of 20 and 40 feet container from Bandar Abbas to Sarakhs , Inch boron and Amirabad port as follows: Table 4.11
Route
Distance in km
CHF /20ft
CHF /40ft
Bandar Abbas to Amirabad port
1795
1137
1664
Bandar Abbas to Incheboron
1972
1160
1696
Bandar Abbas to Sarakhs
1619
1121
1639
� It is necessary to mention that the freight transportation charges by the railway refer to the both loaded container and empty container when it has returned empty. � Considerable volume of goods can be given discount and establishing block train in the route is negotiable through bilateral discussion.
Route Three (New) JNPT (Mumbai) to Bandar Abbas – Bandar Abbas to Incheh Borun by rail and Incheh Borun to Moscow by rail. This is an all rail route from Bandar Abbas to Moscow. To cover this distance from Bandar Abbas to Moscow (around 6000 kilometers), the costs come to $2800 to $3000 per head 20 feet/20 MT container. This journey can be completed with less than 30 days. Here also, the rates can be reduced by negotiations with Iranian Authorities once sufficient volumes are projected.
4.3 RUSSIA: A) ASTRAKHAN:
3. ICD / CFS: There are 2 dry ports in Astrakhan which are 7 kms away from the main jetty which are connected by rail and also have huge underground warehousing facility which naturally maintain an average temperature of 12 to 15 degrees around the year and ideal for storing agro commodities, fruits / vegetable extracts in drums/cans.
The port of Astrakhan is as ancient a port as Mumbai and Bandar Abbas. The city was the hub for Indian and Persian traders in the past and still houses the Indian merchant chamber and Persian merchant chambers as monuments of historic relevance. 1. Terminals & facilities Due to the modernization and geo political developments in and around MOSCOW, the shipping and trade moved to north towards St. Petersburg which is the primary port today. The port of Astrakhan which used to have more than 35 – 40 berths has now been privatized. Today there are 16 terminal operators each having a jetty between 120 to 200 meters length for themselves. The port of Astrakhan is now the main hub for ship building for the Caspian Sea operators. The channel of the port of Astrakhan freezes in winter but the port authorities provide a regular Icebreaker ship which keeps clearing the channel from ice for easy movement of vessels.
4. Olya port: facilities The new development is the port of Olya, which is 80 kms away from the city and connected by Road to the National highway. It is also connected by rail and the corridor to MOSCOW has been given the green corridor status for priority, which ensures that the transit time from Astrakhan to MOSCOW is just 3 days. The container terminal has a 5 meter draft and is equipped with 2 x 40ton cranes. The terminal also has 2 warehouses based Rail stations of 5000 sq. mtrs each. It is equipped with reach stackers and the CY gantry to handle approx. 5000 containers at any given point of time. The location is also at the mouth of the Caspian Sea unlike Astrakhan which is in the Volga channel thus making it easy and faster for the ships to berth.
2. Lines / Operators: The are many private terminal operators, who not only operate as a Terminal owners but also as shipping agent, Customs agent and some even as traders and transporters. Each terminal has now specialized in specific lines of trade. The VTS terminal is the most active terminal for container operations.
5. Trade: The presence of international traders is minimal since most of them seem to have moved out to MOSCOW / St Petersburg. To conclude, if the route needs to be revived, the first re-
50
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION quirement here is a presence of a service provider having own office or agent network at Mumbai, Bandar Abbas, Tehran, Astrakhan and MOSCOW. It is very necessary, without which no trade is willing to venture into this known,
4.4
but culturally and operationally disconnected route. There is a great potential to develop the corridor through the port of OLYA which looks like a “made to order” facility for the INSTC.
Azerbaijan
A. Baku Port: Baku International Sea Trade Port was founded in 1902 and since it has always been the largest and the most important of Caspian Sea ports. It now plays an important role in Trans - Caspian trade and is the main marine gateway to Azerbaijan.
2. Berths are equipped with 16 portal cranes with lifting capacity from 5 to 40 tons. Forklift trucks with a capacity from 105 to 10 tons, 100 roll trailers and portal haulers of SI-SU type are also available. 3. 3 vessels, up to 150 wagons and 100 trucks can be handled simultaneously during a day. Total length of stub railways is 8 kilometers. Maneuvering is carried out by diesel locomotives.
From April to November when Russian inner waterways are navigable, Baku International Sea Trade Port is accessible by ships loading cargoes for direct voyages from West European and Mediterranean ports.
4. Terminal is equipped with the railroad and truck scales for weighing cargoes. Total area of the open warehouses is about 24 000 square meters, and that of the covered warehouses is about 10 000 square meters.
With the dramatic increase in trans-Caspian oil trade volumes and enormous import into Azerbaijan of various equipment for offshore oil activities over last decade, has further strengthened the importance of the port.
5. Due to the strategic location of BAKU, it is the most used port for transshipment of containers / cargo to the eastern CIS countries due to its business connection with Gerogia – POTI port.
1. Terminal and facilities: It has 3 terminals, yy The Main Cargo Terminal, yy Dubendy Oil Terminal and
6. It is also rail / road connected with the western CIS countries and Russia and enjoys the strategic position.
yy Ferry Terminal and Passenger Terminal. Terminals have 6 berths of total length of 866 meters, one of which function as a RO-RO quay. Draft at the quayside is 7 meters.
7. The port is also used by the OIL Rigs for movement of oil thru pipelines extending right up to Turkey.
51
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Geographical Characteristics of Shahid Rajaee Port
Table 4.12
Area
2400 hectares
Location
North of Hormuz Strait
Cargo Throughput
70 Million Tons
Roofed Warehouses
193095 m2
Dock Area
………….
Container Terminal Throughput
3 Million TEUs
Berths Depth
15 m
Berths Number
23 Berths with 7.31 m Length
Domestic Railway Length
Existed Railway: 23.5 km Under-Construction Railway: 16 km
Distance to Tehran
1501 km
Distance to the Province Center (Bandar Abbas)
32 km
Distance to the Center of Bandar Abbas
34 km
Distance to Bandar Abbas Airport
40 km
Distance to Bandar Lengeh Airport
210 km
The Latest Situation of Roofed Warehouses of Shahid Rajaee Port Cargo Type
2
Row
Type of the Berth
Area (m )
1
Transit Warehouse 10
Export are house
8640
2
Transit Warehouse 11
Chemical Materials (Packaged)
8640
3
Transit Warehouse 12
8640
4
Transit Warehouse 13
Chemical Materials (Packaged) Break Bulk
5
Transit Warehouse 14
Chemical Materials
8640
6
Transit Warehouse 19
8640
7
Transit Warehouse 20
8
Transit Warehouse 21
9
Transit Warehouse 22
Chemical Materials (Bulk Cargo) Chemical Materials (Bulk Cargo) Chemical Materials (Bulk Cargo) Break Bulk
10
Transit Warehouse 23
Break Bulk
8640
11
Cargo Warehouse 10
Break Bulk 52
8640
8640
8640 8640 8640
Table 4.13
4
5
Transit Warehouse 14
Chemical Materials
8640
6
Transit Warehouse 19
Chemical Materials
8640
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, (Bulk Cargo) 7 Transit Warehouse 20 Chemical Materials AVAILABILITY & LIMITATION 8
The Latest 9 Row
(Bulk Cargo) Transit Warehouse 21 Chemical Materials (Bulk Cargo) Situation of Roofed Warehouses of Shahid Transit Warehouse 22 Break Bulk Type of the Berth Cargo Type
8640 8640
Rajaee Port Table 4.13 8640 Area (m2)
1 10
Transit Warehouse 10 23
Export house Breakare Bulk
8640
2 11
Transit Warehouse10 11 Cargo Warehouse
Chemical Break Materials Bulk (Packaged)
8640 8640
12 3
Cargo Warehouse Transit Warehouse11 12
8640 8640
13 4
Cargo Warehouse Transit Warehouse12 13
PackagedMaterials Cargo Chemical (Packaged) Break Break Bulk Bulk
14 5
Cargo Warehouse Transit Warehouse 13 14
Maritime ChemicalEquipment Materials
8640 8640
15 6
Cargo Warehouse Transit Warehouse 20 19
8640 8640
16 7
Cargo Warehouse Transit Warehouse 21 20
8 17
Transit Warehouse 22 21 Cargo Warehouse
9 18
Transit Warehouse 23 22 Cargo Warehouse
Empty Chemical Materials (Bulk Cargo) Customs Judicial Chemical Materials Warehouse (Bulk Cargo) Chemical Materials Spare Parts of (Bulk Cargo) Tide Water BreakImports Bulk Domestic
10 19
Transit Warehouse 23 New CFS Warehouse
Break Bulk Bulk Break
8640 11854.404
11 20
Cargo Old Warehouse Warehouse 10
Break Bulk Bulk Break
8640 8640
12 21
Cargo Warehouse Persian Gulf CFM11 Warehouse Cargo Warehouse 12 CFM Warehouse behind the Security Office Cargo WasteWarehouse Warehouse13
Packaged Cargo Break Bulk
8640 4153.12
Break Bulk Bulk Break
8640 8306.24
Maritime BreakEquipment Bulk
8640 4621.954
13 22 14 23 15
Cargo Warehouse Total20 Area Total Area
Empty
16
Cargo Warehouse 21
17
Cargo Warehouse 22
18
Cargo Warehouse 23
19
New CFS Warehouse
Break Bulk
20
Old Warehouse
Break Bulk
21
Persian Gulf CFM Warehouse CFM Warehouse behind
Break Bulk
Customs Judicial Warehouse Note : Receipt Throughput : Compressive Strength of 4 tons per square Meter
22
Spare Parts of Tide Water Domestic Imports
53
Break Bulk
8640 8640
8640 8640 8640 8640 8640 8640
8640 193095 m2 2 193095 m 8640 8640 8640 11854.404 8640 4153.12 8306.24
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION
Berths of Persian Gulf Port Table 4.14
Number of the
Receipt Throughput (Ton)
Type of the Berth
Length (m)
Draft (m)
1
Dolphin (Mehvar Talaee)
115
7.5
9000
2
Multipurpose (Maree) Multipurpose (Maree)
100
7
600
80
7.5
8000
4
Oil (Bana Gostar)
125
7.5
8000
5
Oil (Bana Gostar)
105
7.5
6000
6
Oil (Bana Gostar)
……..
……..
……..
7
Bulk Ramp
125
125
8000
8
125
125
7500
9
Multipurpose (Maree) Oil (FaraChimi Rooz)
100
100
6000
10
Bulk Ramp
125
125
2000
Berths
3
Berths of Foolad Hormozgan Complex Table 4.15
Maximum Allowed
Maximum Allowed
Receipt
Length of Ships (m)
Ship Draft (m)
Throughput
Oil Steel
260
13.5
100000
Non-Oil Steel
260
13.5
100000
Row
Berth No.
1 2
54
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Port Olya In the difficult period of ongoing global change in Russia - the geopolitical, social, economic, as well as in connection with the political situation created when Russia was left without a “sea gates” at the Caspian Sea, there was a need for the merchant fleet and the creation of Flotilla base in the region. After the preliminary design study for the construction of the future port site was chosen near the village of Olga Liman district in the Volga-Caspian canal Astrakhan Oblast. The project is implemented port Moscow Institute “Soyuzmorniiproekt.” Investor of private facilities in the port of Olya is CJSC “Commercial Sea port of Olya” (termed earlier - CJSC “Industrial investments”). The main developer of the port is OOO “Ola construction company.” The basic form of port - transhipment general shipping containers and the car ferry cargo. Advantageous geographical location creates conditions for the cargo transshipments year-round, provides access to the river, sea, road and railways. After his year-round reloaded foreign trade goods of the following Caspian Sea in Iran, Turkmenistan, Kazakhstan, the Indian ways. The port is open to international shipping, there are border checkpoints, and Customs posts. Basically, all the berths are located frontally along the coastline. The construction of berthing front provided on both sides of the existing berths No 1,2,3 shore at the site of the village of Olga to Caspian Canal. Berths No 4,5, including the backcourt, form a single complex - Terminal rolling cargo. Hydraulic construction - berth number 5 - is included in the general scheme of construction and development of commercial sea port of Olya, which is funded from the federal budget. Olya was designed and created as one of the projects that make up the trade relationship with the Iran. During the 2009 year through the port handled 773 thousand tons of foreign cargo. In import of Iran is dominated by fruits and nuts, as well as food processing vegetables and fruit. The structure of the Russian transport export cargo through the port of Olya in recent years shows quite well-established range of goods: metal, sawn timber Paper. In particular, one of the “running” of the Russian export cargo - grain -. Another export cargo coming in Iran - vegetable oil. Under his handling at the port terminal under construction with capacity of 10-12 tons per month (berth number 6), its entry is also planned for the 2010 year. For dry cargoes, in particular, iron, designed the first cargo seaport area, which is located on the shore Bakhtemir and immediately adjacent to the south to the village of Olga. At present, the port takes timber, oil, ferrous metals, grain, chemicals, automobiles, paper and other goods. Development of the Russian port of Astrakhan Oblast will create an effective element for the functioning of the international transport corridor “North-South” and change the balance of traffic flows passing through the region Caspian Sea. It will facilitate the involvement of Russia and other countries in the process of world trade, as well as send some traffic from the EU in South Asia through the Central Asian and Middle Eastern states. Olya port on the Caspian Sea is promising for developing a port for all types of cargo with volumes of transshipment, as predicted by “Rosmorport” to 2020, at least 10 million tons. Gradually, he will take on a cargo handled at terminals in the Astrakhan (about 3.5-5 million tons). Port area of 250-300 ha can count on such developments. While another nearby Makhachkala port will be developed in collaboration with the port. At the same time, the Dagestani port will retain the transshipment of oil cargo. Planned throughput for the liquid cargo in the port of Makhachkala reaches 15 million tons. Establishment of an expanded port. Infrastructure in the future will be one of the main advantages of the port of Olya, compared with the existing ports of the Caspian Sea. Currently existing port facilities of the Russian coast of the Caspian Sea is clearly not cope with growing freight traffic. The new port can be a good alternative for the construction of marine terminals in this area. In 2010, the turnover of Olga may have reached 1 million tonnes due to working with metals, and building materials. Further intensive development of offshore oil fields in the Caspian Sea, as the Russians and other countries will be an additional incentive for the development of regional port infrastructure. Planned opening of the inland waterways of Russia (mainly the southern half rings of Astrakhan, Olya to Rostov) can significantly enhance the role of the Russian Caspian Sea ports. Ports will be able to transit goods
55
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION of other countries, in particular, Kazakhstan, actively building a private fleet. With the commissioning of berths and port infrastructure had placed high hopes on the socio-economic development of southern Russia, Astrakhan Oblast and the entire transportation system. Prospective turnover after construction can take up to 30 million tons per year. This volume of goods subject to possible diversion of transit Europe - Iran, which is now done through the Suez Canal. Transportation Rail In 2001, the port Olya was included in the Federal Target Program “Modernization of Russian transport system.” In 2004, the railroad was built by the railway branch length of 55 kilometers from the station to Yandyki port railway station “Port Olya”, connecting the port with the Volga Railway. Through the station “Port Olya” carry freight. The railway branch was constructed in the shortest possible time. In order to ensure the commissioning of the station and ferrying it was constructed simultaneously from both sides. Unloaded at the station Yandyki railshpalnye bars on heavy vehicles were taken to build power stations Olga. Transported to the same puteukladchik went to the station Yandyki collecting railway line. Station port Olya, sludge and the way the way to go port berths were built at the same time. Administrative building of the station was equipped with the necessary means of communication with computers, office equipment, conditions for eating the station employees. In July 2004, the opening ceremony of the railway line Yandyki - Port Olya. Less than a year approach station Olga received the status of the tariff. However, one can not ignore the problems of this branch is closely related to the development of the port. Port can not handle the unloading of the stated and arrived at his address of wagons, which greatly complicates the work of Astrakhan site. Easy cars awaiting unloading on average 15 days (December 2007).
Mr. Sohel Kazani visits Olya Port Astrakhan, Russia for meeting with officials
56
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION
Amirabad PORT About Amirabad Port Amirabad ports & marine & special economic zone are located east of Mazandaran province & at a distance of 51kg the province center with 53.22 east & 36.41 north geographic coordinates, construction operations of this port began in 1996 & was introduced in 1997 regarding the outstanding location & potential capabilities as a Special Zone by free zones supreme council , this port operational capacities have been 6.5 m. tons in phase 1 & have been designed 18m.tons for final phase.
North-South Corridor, the most suitable option for commercial connection of Asia and Europe Further to the developments of Asian and European connective corridors, in 1993 the ministers of transportation of European countries introduced another route for commercial connection of Asia and Europe which establishes a transit connection for the north European and Scandinavian countries as well as Russia through Iran with the countries within the regions of Indian Ocean, Persian Gulf and Southeast of Asia. Besides providing a commercial and transit connection between the countries of North Europe, Scandinavia and Russia and other European countries, the new corridor called North-South Corridor also extends to Indian Ocean and the Asian Southeast countries by passing through Iranian territory and using the Iranian ports in the Persian Gulf. Using this route, a large part of Asian and European countries can deal with their commercial transactions. Until before the formation of this corridor, goods owners and merchants of Persian Gulf and Indian Ocean regions generally used sea and open waters in order to send their goods to the central and north Europe and Russia. In this transportation method, the goods may be transported to the Mediterranean Sea through Indian Ocean, Oman Sea, Gulf of Aden, Red Sea and Suez Channel. The goods with final destination of South Russia and Ukraine are transported to Adysa Port through Black Sea and those with final destination of North Europe and North Russia can be transferred to North Europe, Helsinki and San Peters Burg Port by passing through the Strait of Gibraltar, Atlantic Ocean, Manish and Baltic Seas. This method of transportation is quite costly and time consuming for exchanging commercial goods between the countries of Indian Ocean and North Europe. Use of North-South Corridor can be followed by a considerable saving in the time and cost of goods transportation between these countries.
Reduced time and transportation cost, the important characteristics of North-South Corridor The Asian and European countries can exchange their goods in the North-South Corridor with a doubled speed as compared to the Suez Channel. This is highly important for the two continents considering the establishment of new countries in the Middle Asia s well as formation of new global markets in the Indian Ocean and Persian Gulf regions. The North-South Corridor an important part of which passes through the Iranian territory is currently the most important and most suitable ring for goods transit between Asia and Europe. This corridor currently begins from the Indian Ocean region (Mumbai Port) and connects to Bandar Abbas in the south of Iran through the sea. In the Iranian territory, the goods are transported to ports in the north of the country (Anzali and Amirabad Ports) through road or railroad transportation and then they are transported through the Caspian Sea to the Astarakhan and Lagan Ports at Russia. By completion of Qazvin-Astara Railroad in Iran, road and railroad access to the countries within Caucasian and Russian zones will be possible. Transportation costs of transit goods between the countries within the Indian Ocean and North Europe zones are 30%cheaper through the North-South Corridor. By joining to the international North-South transportation corridor which is one of the polyhedral corridors, the countries within Southeast and Central Asia, Middle East, Indian Ocean, Persian Gulf and North Europe will be able to enjoy its advantages for fast and cheap transportation of their goods between Asia and Europe. One of the important advantages of this corridor is the several interchanges it has with different corridors between central Asia and Europe including Traceca and Altide.
57
machine
4
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, 5 AVAILABILITY & LIMITATION 6
Amirabad Port Amirabad Port
Amirabad Port infrastructure 1. Jetties
Table 4.16
7
1. Jetties No.
Hydrolic grap libher Crane Tadano Crane - 20-50 Tons Komatso ForKlift - 315 Tons
1 4
9
10
Klark ForKlift - 5-7
No. Jetty 1
Rich Stacrer
Jetty
Tons Draft Use Depth/m Capacity/tons 8 4 Draft Use Length/m Depth/m Capacity/tons 4.60 Grains 1 100 6 6000 4.60 Grains 100 6 6000 Tractor 4.60 Multipurpose 1 188 6 6000 9 15 4.60 Multipurpose 188 6 6000 4.60 Multipurpose 4 650 6 6000
Qty. Qty.
Jetty No. 1
1
Jetty No. 1 1 2 Jetty No. 2, Ro-Ro
2
Jetty No. 2, Ro-Ro 1 3 Jetties Nos. 3-6, East
Length/m
4.60 Multipurpose 6000 4.60- 9-12 M 6000 Multipurpose Carrier 17 4 4.60 Multipurpose Jetty No. 7, South 1 220 6 6000 5 Jetties Nos. 8-9, West 2 360 6 4.60 6000 Multipurpose Kato crane 64 tons 11 2 5 Jetties Nos. 8-9, West 2 360 6 4.60 6000 Multipurpose ForKlift TCM - 3-5 12type of ship design. 3 Ships up to 7000 tons may berth at this jetty depending on the Tons Ships up to 7000 tons may berth at this jetty depending on the type of ship design. 3
Jetties Nos. 3-6, East 4 4 Jetty No. 7, South
1
650
220
6
106
Port Equipment
Warehouses Warehouses NO. NO. 1 1 2 3 4
2
Area (m²)
Warehouse No. 1
12,000
Warehouse No. 1 12,000 Warehouse No. 2, twin warehouse 10,000 10,000
4
Warehouse No. 3 Warehouse No. 4
10,000
5
Warehouse No. 4 10,000 Open warehouse, port area 1,000,000 Open warehouse, port area
6
NO.
Machine
1
1200H Tug boat
2
Pilot boat (Ghyam)
3
Search & rescue boat
Area (m²)
Warehouse No. 2, twin warehouse 3 Warehouse No. 3
5
6
Type Type
Marine Equipment
Port area Port area
10,000
NO.
Machine
Qty.
1
Gantry Crane
2
2
Trans Trainer
1
Grains sucking
10,000
3
2 machine
1,000,000 4
9,000,000 9,000,000
5
6
7
Rich Stacrer Hydrolic grap libher Crane Tadano Crane - 20-50 Tons Komatso ForKlift - 315 Tons
1 4
9
10
Klark ForKlift - 5-7 8
Tons
4
Tractor 9
58
15
10
Carrier - 9-12 M
17
11
Kato crane 64 tons
2
12
ForKlift TCM - 3-5 Tons
3
Marine Equipment
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION
Anzali Port (Bandar Anzali ) Bandar Anzali as the most equipped and most modern Caspian Sea port due to the unique geographical position as the only free port in the area,has the significant role in development of North – South(Nostrac) corridor. Since this Port is being located within Anzali Free Zone area, this position has provided special facilities to owners of goods, traders and investors that led to upraising potential and actual capabilities of this port. Developments of Anzali port in recent years on completion and construction of infrastructures, including construction of six posts of piers, renovation of five old posts piers with a total length of 1581 meters has capability for berth of 12 ships simultaneously, increasing the area of the port from 24 hectares to 71 hectares, shopping land, maritime and telecommunications strategic equipments, loading and unloading operations assigned to three main terminals, investment in BOT Method on construction of warehouse grain storage silo, construction particular highway for Port and setting up fuel transit and taking advantages of modern technology have made this port a strategic port on Caspian Sea shoreline. So that the its capacity has raised from two million tons to 7 million tons of goods per year, and is forecast that this capacity reach to 11 million tons after completion of master Plan. Anzali port fuel terminal is capable to deliver and transit 2 million tons of fuel annually.. This port also having five hive storage silos with a capacity of 6000 tons of cereals, which able to transit one million tons of wheat annually tot Iraq and Persian Gulf countries. Position of Port Free Trade - Industrial Anzali on the one hand, entering the raw materials including steel and transform it into machinery, artifacts, and pieces ... Aimed at creating added value and supply steel raw materials on other side, construction of fuel tanks for fuel transit has given an important opportunity to increase Iran's maritime transport with neighbouring countries will provide most prosperous industry, transport, production and exports.
H.E. Indian Ambassador to Iran Shri D.P. Srivastava visitPort Anzali alongwith Shankar Shinde and Port Authorities
59
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION EQUIPMENTS
Table 4.17
No
Description
Unit
Capacity(power)
1
Shore crane
2
100 tons
2
Shore crane
1
120 tons
3
Mobile crane
1
60 tons
4
Shore Cranes
3
60 tons
5
Loading / unloading cranes
5
36-54 tons
6
Reach stacker
2
45 tons
7
Transtainer
1
42 tons
8
Tug boat
3
1500 Hp
9
Pilot
2
Bandar Anzali Port
As a result of its brilliant geographical situation, Anzali Port plays an important role in the facilitation of commercial goods' transaction in the zone, particularly in the field of energy. The establishment of new managerial systems and observing the principles of customer-orientation has enabled the state and private sectors to concertedly provide their subscribers with satisfactory services in line with the up-to-date international standards in the shortest time possible. Benefiting from the advantages of free trade zones, the construction of required infrastructure, the provision of proper services and facilities in various sectors, closeness to the largest deposits of oil and gas in the Caspian Sea and nearness to giant industries such as steel, paper and textile have brought this port to the center of domestic and foreign investors' attention. The availability of multi-dimensional transportation as a result of government's firmness in connecting the Port with the countrywide railway and completing the Qazvin-Rasht highway, vicinity to the international airport, being located on the route of South-North Corridor (NOSTRAC) and economic justification altogether underscore the attractiveness of transiting goods through this port. Ceaseless efforts to implement developmental plans in the Port such as the construction of new breakwaters, the revitalization of 40 hectares of port hinterlands and increasing the number of berthes to 24 posts all renew the hopes for the capacity of port to be extended twofold. This not only helps meet the requirements of the growing number of projects underway in Anzali (the pearl of Northern ports), but contributes to the improvement of Anzali's position among the ports of the Caspian's Sea's littoral states.
60investment in Anzali port There is good opportunity advantages of
4
Number of berth
pier type
Length (m)
1
general
89.126
5.5
5000
2
general
24.126
5.5
5000
3
general
24.126
5.5
5000
4
general
24.126
5.5
5000
5
general
156
5.5
5000
6
general
156
5.5
5000
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION PORT BANDAR ANZALI INFRASTRUTURE
Table 4.18
Name of the equipments
No.
Dredger Pilot Tug boat Barge Boat Number of vessels Number of buoys Berthing the ship
2(unit) 2(unit) 4(unit) 1(unit) 4(unit) 13(unit) 5(unit) Number one berth
general general general general
24.126 89.126 24.126 24.126
5.55.5 5.55.5
5000 5000 5000 5000
34
general general
24.126 24.126
5.55.5
5000 5000
45 56
general general general general
156 24.126 156 156
5.55.5 5.55.5
5000 5000 5000 5000
67 78
general general general general
156 156 156 156
5.55.5 5.55.5
5000 5000 5000 5000
89 9 10
general general general general
156 156 192 156
5.55.5 5.55.5
5000 5000 5000 5000
1011 total 11
general general
19290
5000 5000
general
90
5.55.5 1657(m) 5.5
total
No. 1 2
12 23
Heavy crane (30-100 tons) Light crane(30 tons less) Supper up tons) to100 tons) Heavyheavy cranecrane( (30-100
10 2 2 26
67 78
Heavy track (up7 to 7 tons) Light liftlift track(until tones) Top lift track Heavy lift track (up to 7 tons)
2640 40 2
89 9 10
Trans-tainer Top lift track Tractor Trans-tainer
21 1 58
1011
Pallet Tractor
5863
11
Pallet
Exports(each Exports(each 82412 82412 57688 57688 103014 103014 72110 72110 Kind of Machinery Number set) set)
Light crane(30 tons less)
18
transit(each 82412 82412 57688 57688 72110 72110 Heavytransit(each crane (30-100 tons)103014 103014 34 set) set)
Supper heavy crane( up to100 tons)
1
4
Rail cranes
10
5 6
RichStacker(40 tons) Total mensuration Total mensuration Light lift track(until 7 tones)
26
7
Heavy lift track (up to 7 tons)
40
2
71 hectares 71 hectares
Top lift track Warehouses Warehouses Trans-tainer
2 1
22709
22709
Pallet
50
50
1215
63
1215
Maritime facilities
1834 34 1 1 10
RichStacker(40 Rail cranes tons) Light lift track(until 7 tones) RichStacker(40 tons)
5000
3
11
18 Number
45 56
5.5
9
5000
Rail cranes 3 4 Supper heavy crane( up to100 tons)
5000
5000
uncovered uncovered covered covered warehouses warehouses hangar hangar 10 Tractor 58 warehouses warehouses (square(square metere) metere) (square(square metere) metere) (hectare) (hectare)
Kind of Machinery Equipments Number Shore-Based Light crane(30 tons less) Kind of Machinery
5.5
8
Shore-Based Equipments No.1
9 Exports, general 156 Exports, & In Transit imports imports & Transit Riyal 10 general 192
Shore-Based Equipments
1657(m)
No.
5000
Imports Imports 181300 181300 126900 126900 226600 226600 158600 158600 (each set) (each set)
Length berthesdraft (m) Ship’s tonnage (m) Length draft5.5 (m) Ship’s tonnage 89.126 5000 (m)
12 23
7 Handling general 5.5Containers Handling Tariff OfTariff 20 &156 Of 40 20 Foots & 40 Containers Foots (set) 8 (set) general 156 5.5
20 foots20 foots 40 foots40 foots 11 Kind of general 90 5.5 5000 Kind of total goods goodsfull 1657(m) full full Empty Empty full Empty Empty
berthes Number pier of berth type Number pier 1 general of berth type
draft (m) Ship’s tonnage
No.
Kind of Machinery
Number
1
Hopper suction dredger
1
2
Tugboat (until 1500 horse- power)
4
3
Pilot boat
2
4
Barge
2
5
Inspection and rescue boat
2
6
Search and rescue (Naji-14)&guard boat
2
7
Hooked dredger
1
The Port tariff are available on the website along with Volme discounts rates for various types of cargo handling Containers loading and discharging tariff & it’s discounts on the basis of overall volume of operations in northern & southern ports are available on website
63
Port development
Maritime facilities The construction of eastern and western breakwaters with a length of 2750 meters and the installation of 40 hectares of new surroundings are two effective steps to develop the extent of Port’s security and capacity. With the breakwater being No. Kind of Machinery Number Maritime facilitiesand enhance lengthened, Port’s capacity will reach to 17 million tones a year. Once the developmental plans are operationalized, the number of Hopper suction dredger 1 No.1 will reach Kind Number Port’s berthes toof24Machinery posts and the capacity to berth various ships will increase significantly. 12 23 34 5
Tugboat (until 1500dredger horse- power) Hopper suction Tugboat (until Pilot 1500boat horse- power) PilotBarge boat Inspection and rescue boat
14 42 22 2
61
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Iranian Ports Infrastructure Bandar Abbas Port / IRAN
Visit to Bandar Abbas Port Authority with Indian delegation Mr. Shankar Shinde , Mr. Sohel Kazani , FFFAI, Mr. Rohit Wadhwani , Mr. D.C. Pant, officials from Indian Embassy, meeting along with port officials
Amirabad Port/IRAN
Mr. Sohel Kazani visits Amirabad Port for meeting with port officials
Bandar Anzali Port/ IRAN
Indian delegation Meeting with Bandar Anzali Port Authority
Mr Charaghi , Managing Director,Bandar Anzali Port Authority presenting Port details during meeting with Indian delegation
62
4
MICRO ANALYSIS OF RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION Tehran
Tehran Customs
Tehran Customs
Customs Authorities : Bandar Abbas
Visit & Meeting with Bandar Abbas Customs Manager with Indian delegation Mr. Shankar Shinde , Mr. Sohel Kazani, FFFAI, Mr. Rohit Vadhwani , Indian Embassy officials in Iran
Delegation led by H.E Shri. D. P. Srivastava, Indian Ambassador , with Mr. Shankar Shinde,FFFAI at Astara Customs Border - Iran alongwith Mr. H.R.Mohammadi, Director General of Astara Border Customs
63
5
OPERATORS PERSPECTIVE
64
5
OPERATORS PERSPECTIVE 1. IRAN A) Perspective of Port and Maritime Organization (PMO) Authorities:
of cargo / containers on INSTC route from point of origin to place or port of delivery through the various transit points in between, so that they can coordinate and control various service providers in the logistic chain for achieving efficiency in service and costs.
yy Operational perspective at Bandar Abbas: Bandar Abbas – 5/6 vessels are usually at berth. 14 Mtrs draft is always available at the berth and channel. Bandar Abbas is already a popular port for transshipment purposes.
yy Suggestions arising after discussion with Port Authorities: • Bulk volume handled at Bandar Abbas port is 10 times of container cargo. Suggested to look into various possibilities to combine Container and Bulk cargoes and ply combi vessels for effeccient shipping rates,
yy Current developments at Bandar Abbas: • Port is developing the EDI software for its operation such as Berth planning & allotment, Container tracking etc. • They are in process of appointing a Terminal Manager exclusively for Bandar Abbas port responsible for its proper functioning.
• PMO are already offering more than 50 % discount for transit containers at Bandar Abbas. For North Iranian Ports and Chabahar THC is 30% less compared to Bandar Abbas and thus the Transit THC at these ports are also less i.e. USD 90 per 20 ft and USD 114 per 40 ft containers.
• Chabahar is the new port but does not have container handling gantry at the moment. It is ideal for Eastern CIS movement. 2 berths at Chabahar are operative with conventional cranes. yy Suggestion of India team at Bandar Abbas: • During Congestion, priority should be given for vessels calling from Indian sub continent. A Road map for INSTC and Phase wise implementation of development plan is the need of hour for both India and Iran for increasing in the cargo through put.
• Suggest a system should be formalized for checking the credibility of Indian Operators approaching for registration at Bandar Abbas port. Organizations such as AMTOI, CRISIL and FFFAI could be considered. • Also suggest that containers to be moved by Rail should be manifested in such as way that it is moved directly to Rail yard. This would eliminate the additional handling cost.
• Also suggested THC reduction to PMO for INSTC transshipment containers at Bandar Abbas and Chabahar port. Also the Rail handling cost at Bandar Abbas could be reduced by avoiding double handling from Road CY to Rail CY.
• Railways also have to start / develop shuttle services to clear containers from port CY.
• Single Operator having offices at India, Iran and Russia was discussed and agreed upon. i.e. a single agent should be responsible for the movement
B) Perspective of I.R.of Iran Road Maintainance & Transport Organisation Authorities Iran:
• Road network are more preferred and well developed due to ease of movement and oil production has supported the development.
yy Current Status: • The main task of RMTO is to maintain Roads and control border terminals. Iran Strength is Road network and not Rail.
• Gauge difference between Iran and Russia & CIS discourages continuous Rail Link effecting optimum use by trade.
• Road is economical than Rail due to double handling cost of containers moved by rail and incompetitive rates offered by Pvt Railway wagon owners.
yy Current Development : RMTO and India appreciated the necessity of Rail development:
65
5
OPERATORS PERSPECTIVE • Due to Pollution issues, Avoid future road congestion and Reduction on volatility of transportation charges.
• Suggestion arising out of discussions with RMTO Authorities: • Meetings/ seminars should be organized with Chambers of Commerce and after giving wide publicity.
• Reduction of Government loss on subsidy to Transport by Road which is 300 liters of fuel on daily basis at half the market rate.
• The return cargo from Russia / CIS is very important to ensure financial feasibility.
• Increase in dedicated Rail freight corridors will result faster movement of containers.
• Requirement of a Single agency at all 3 locations was underlined and accepted by India and necessity understood.
• Support required from Government for private Rail development to establish operational and financial feasibility.
• Multimodal permission issues should be taken up with Customs Authorities & PMO.
yy Business / Shipping perspective: • Iran –O – Hind and IRSOTR ventures and other Liner services were started mainly to accomplish success of INSTC. However it was not promoted to Trade and Industries appropriately hence other Lines operating in this sector had to shut operations.
yy Indian Team Suggestion: • Development of new road routes from Bandar Abbas and Chabahar to CIS destination to reduce congestion. • Road freight fluctuations are in the range of 40 – 50%. Need to regulated / controlled to ensure stability of cost.
• Multiple handling charges also discouraged the route. • The transit time from Mumbai to St. Petersburg on INSTC route covering a distance of 7800 kms would be less than the present route to St. Petersburg which covers a distance of 11500 Kms if organized and coordinated well.
• GPS on Trucks by RMTO for monitoring. Cost approx. USD 300 per equipment. • Multiple handling costs are an issue but would require support by means of discount by RMTO and PMO.
C) Perspective of Shipping Agents: yy Operational Perspective : • Rail cost from Bandar Abbas to Amirabad is charged basis 1X20+1X40 = USD 2100 approx. per Wagon. They charge for 3 TEUS minimum. Thus the final costs depend on volume of containers moved by Rail.
CIS due to empty return charges. Generally the containers are sold at 1/3 or 1 / 2 of the cost of containers. This increases the cost of shipment. • Destuffing and Stuffing at Borders into rail wagons or rail containers may be better option. The warehouses are to be planned at various stations for this system.
• The movement by Rail takes 6 days while movement by Road takes 3 days.
• Land borders for movement out of IRAN on the East are:
• Demand and supply some time creates shortages of wagons.
• Sarakhs for movement to Almaty, Astana, Dushanbe, Khudgash, Tashkent, Charjou, Turkmenabad
• Heavy loaded containers and or 50 Teus volume is cost effective and saves time if moved by Rail.
• Bajgiran – Closed now for goods. At present is used by passengers for crossing of borders.
• Face problems with Custom authorities detaining wagon / trains for which demurrage of USD 4 per hour per wagon is charged to Customer.
• Lutf Abad – Ashgabat distance is only 7 kms
yy Business Perspective: • Shipper owned containers (SOC) are preferred for
• Incheboroon – Along Caspian Sea ports – Balkanabad, Aktau, Atyrau etc.
66
5
OPERATORS PERSPECTIVE D) Perspective of Inter Rail Authorities: yy Operational Perspective : • Rail movement is only on Russian wagons like the BCN wagons in INDIA.
yy Business Perspective: • All wagons in IRAN are privately owned. • Loco belongs to Government.
• Container train / rakes are hired from outside IRAN for CIS.
• The Rail freight charges for transit cargo are lesser than domestic movement.
• Facility is available for Transshipment at Sarakhs border for Rail movement.
• Due to Sanctions, Inter Rail could not handle monetary transactions and had to shut operations. Lot of American and European companies too have shut down in last 2 years due to sanctions and limitations on working and payments to Principals.
• Same train cannot continue due to difference in gauge between Iran and CIS, so change in axels at border is required. It is done on a deviation between Sarakhs Iran and Sarakhs Turkmenistan and handled by a private monopoly agent in Turkmenistan.
• In Mashhad (near Sarakhs) there is a similar monopolistic environment which increases the handling cost of containers.
E) Perspective of Shipping Association: yy Business Perspective: • Sanctions on IRAN are expected to be lifted soon.
yy New Development: • Once Sanctions are withdrawn, Bandar Abbas will emerge as the most viable solution for cargo / containers originating from India.
• If volume commitments are in place they can start new services.
• Chabahar would take some time as development of handling facilities is delayed. India has signed an agreement recently to assist in creating these facilities.
• Due to insufficient and low volume from Nhava Sheva (Mumbai), IRISIL has to call Mundra port which increases the transit time. • Many feeder operators now transship Bandar Abbas containers via Dubai.
yy Suggestion of Shipping Association: • CIS is liberal on duty on containers that are being imported with the cargo. Thus SOC are generally used for shipment to CIS.
• Also payment by trade is convenient through Dubai trading companies due to sanctions issues. • The Main Line Operators are not interested in the CIS movement due to it being an unorganized sector.
• If nature of cargo permits, the better option would be to de-stuff the container and stuff the cargo in wagons at Border between Iran / CIS and move onward by Rail to destination.
• Rail movement viability is still absent and empty Return is one of the critical issues.
• Movement to Turkey is smooth as they are follow TRACECA convention based on TIR Carnet system. Though CIS have signed the TIR Carnet convention they do not honor the agreements.
• Shipment in SOC is the only viable solution at the moment though very costly.
F) PERSPECTIVE OF INTERNATIONAL TRANSPORT & CUSTOM AGENTS ASSOCIATION (ITCA) yy Operational Perspective: • First mother vessel of PIL & Wan Hai joint CMS service arrived Bandar Abbas on 22/07/2014 and IRAN is expecting the volumes of international traffic to return back to normalcy very soon.
• Congestion in port has reduced and now waiting period is around 2 days at Bandar Abbas port. • Original documents, especially the Invoice are a must as per some of the agents.
67
5
OPERATORS PERSPECTIVE • Generally Customs do not check 99% of Transit cargo. Port has installed scanners and some containers are subjected to scanning by Customs.
help in reducing handling / Agency charges. • Need an exclusive INSTC Team (focal point) to assist them in communication and other related work.
• RMTO monitors the movement from the time they leave from Bandar Abbas to border terminals and also checks if delay is beyond a certain time parameter.
• Also requested to implement a single document format for smooth facilitation in INSTC route which is delayed and not implemented till date.
yy Business Perspective: • Iranian Agents are always ready with open arms to facilitate and work jointly with Indian Companies in IRAN and beyond for mutual benefits.
• The other participating countries do not seek the same of level of stability in implementation of rules / tariffs as India and IRAN does. • Thus the Indian team of Freight Forwarders needs to play a larger role together with the IRAN Agents association to enforce stability.
• Movement to the western CIS – Georgia / Azerbaijan and Armenia is always by Road since there is no other viable option till date. Only NVOCC does business due to lack of return traffic and Transit Time
• The Aktau has return cargo of Iron scrap / Metals and agro fertilisers and India may import same.
• Some CIS countries do not follow Customs tariff in practice and do not have any fixed laws for import / export, movement of cargo / containers due to which the risk and cost repercussion are unpredictable.
• At many locations, the work is possible through shipper owned containers (SOC) only since empty return cost is very high. • Caspian Sea route is always a better option than road movement to Russia.
• Lot of MOUs has been signed with IRAN by these CIS states but none are being implemented in real terms yet by them.
• Suggested that we need to have a continuous effort on the subject matter together and organize regular workshops for trade as well as agents on the subject.
yy Suggestion of ITCA: • Increase in the export volumes from India would
G) PERSPECTIVE OF IRANIAN RAILWAY AUTHORITIES yy Operational Perspective: • Services right now are as per SMG regulations and Railways rules and tariff. The operational Rail networks are in place as per Map.
• The weight limitation is 60 tons for International movements and 54 tons per wagon for domestic movements. 3 X 20ft or 1 x 20 ft and 1 x 40 ft can fit on one wagon.
• The Classification of commodities is as per HSN for Rail tariff determination.
• Amirabad route via sea is being encouraged mostly for CIS movement.
• All wagons are now privately owned, the Government and Rail authority gives full support to operators with reference to the service demands.
• For Rail movement from Bandar Abbas to Amirabad, there is a steep 100 km gradient that makes the movement difficult and slow. It takes 4 days to cross over that gradient for a 40 wagon train with double power. The rest is smooth and takes only 2 days for completion.
yy Business Perspective: • From Sarakhs border, the cotton movement from Uzbekistan was regular and the discount that was offered was 30% flat.
• No plans to cut the gradient as of now or in the near future between Tehran and Amirabad.
• The current rates are basis 300 containers movement per month. If volume is more than further discounts could be looked into.
• There are total 11 stations in between Bandar Abbas and Amirabad where the trains halt.
68
5
OPERATORS PERSPECTIVE yy New Development: • Now they would start the movement from Incheboroun to Kazakhstan without changeover of wagons and only LOCO would change while crossing borders. This is a 10,400 kms Rail route.
• A regular service from point to point should be in place for the trade to start trusting the railways for stability in transit time. • The Qazvin – Astra link has been pending request to complete the link at the earliest.
• The movement through Zulfa link was held up due to issue between Armenia and Azerbaijan which now stands more or less resolved.
• The IRAN Customs should allow movement on Multimodal transport document till the time of completion of missing links is necessary.
• The link through Razi is operational for movement up to Turkey.
yy Suggestions of Railway Authorities: • Railway authorities are very flexible in their approach and are always ready to offer any assistance within their responsibility.
• Regarding, Anzali - Qazvin – Tehran link: Some issue of agricultural land acquisition was raised by the locals, which the authorities are trying to resolve and complete the project at the earliest. On operational this will be an alternate route from Bandar Abbas to Bandar Anzali for connectivity to caspian sea. The same is expected to be compeleted with a years time.
• They can give discounts for volume movements. • Traffic section deals with technical feasibility and timeliness of movement. Their consent is required for planning and starting any new service. • Tariff for International movement has been kept low compared to domestic movements to encourage the transit cargo movement.
yy Suggestion of India: • Trade is looking at Iranian Railway with lot expectations and would expect it to compete with Road for Transit Time and cost.
• With the INSTC, they were expecting some regular volume movements, which however have not materialized till date.
H) Perspective of Customs Authorities yy Business Perspective: • Bandar Abbas is the main port of Iran and also it the main port for International transit cargo.
yy New Development: • At present all procedures & documentation are still in manual mode, however EDI system is expected to be implemented soon.
• Bandar Abbas is the bridge connectivity between South to North of Iran.
yy Operational Perspective: • On an average, daily 1000 containers transit through Bandar Abbas port for other countries. On some occasion this movement increases to 3500 containers.
• Approx. 10 million tons of transit cargo valued at USD 18 billion is handled yearly. • It is the main Port for the cargoes originating from India / China / UAE/ Korea/Germany. Main cargoes moving from South to North are textiles, furniture, Electronics.
• They have scanners installed in port premises which are sufficient for checking transit cargo. Goods Prohibited are of 4 types:
• Movement from INDIA on INSTC route is minimal. The goods Imported from India are mainly Rice and Agro commodities, construction material, hardware etc.
a. Drugs and Alcohol. b. Arms / explosives. c. Pork Meat.
• Customs do not charge for Transit cargo. They take insurance cover from the carrier of an amount equal to the customs duty on the value of cargo. The insurance premium is approx. 1% of the costs of customs duty.
d. Raw Materials for the above. • CMR / Transit document are issued based on copies of documents submitted. Originals are not required.
• If movement is by Rail, Security is better and may cost less.
• In order avoid further checking by police again,
69
5
OPERATORS PERSPECTIVE Customs have started to put their seals on containers themselves and certifying that the cargo is already checked by Customs.
for specific cargo. • The same process is followed for cargo arriving by Road from CIS and also outbound from Bandar Abbas. Some special certifications are needed for HMS scrap / war zone materials. SGS certificates are accepted by Customs.
• Turnaround time for customs clearance is 1 to 2 hours maximum. • Then proceed with clearance from Port department, Shipping department and if necessary other relevant departments managing the allied activities
• If Customs suspect the transit material is infected, they may insist for PQ again.
I) Perspective of Amirabad Port Authorities yy Operational status: • Port has nine berth in operation of which 7 berth handle Liquid or Bulk cargoes and balance 2 berth are reserved for containers.
• The SEZ is the best setup and agents can setup their own warehouses and have lease agreements with the port on long term basis. • The major shipping line that is operating is Khazar Shipping and is calling mostly all ports on the Cas-
• The 2 container berth has 1 gantry each.
pian sea from Amirabad and back.
• They have their own Power Station and SEZ with Independent Customs, PQ, PHO and various agencies for inspection.
• The Port has its own power plant, bank, office premises for agents and customs + rail terminal.
yy Suggestions given by the Port: • Also Chabahar which is at the entrance to Persian Gulf could be used for connecting with the Amirabad Port through sea as it is closer to India (than Bandar Abbas). The ocean freight would be much less Mumbai to Chabahar compared to Bandar Abbas.
• The port also has silos for bulk storage as well as container storage. • There are also temperature controlled warehouses in the surroundings. • The tariff is 30% cheaper than the southern ports of IRAN.
1. RUSSIA A) Moscow • Meetings were held with various agents. It was given to understand here that most of the agents also work as indenting and marketing agents for the clients in India.
• The major commodities that are being traded are textiles and pharma. St. Petersburg terminal are more equipped and co-operative compared to Moscow Customs.
• As a result most of the agents follow the 3PL concept where the handle they orders right from freight forwarding, clearance, warehousing to billing and payment for their clients.
• Thus there is a lot of hesitation by the agents to shift base from St. Petersburg and look at Astrakhan. The decision will entirely depend on the costs arrived on the initial movements and the continuation of co-operation by the Russian customs.
B) Astrakhan • This is one of the oldest ports of Russia and for the Indian trade
• Many of the terminal operators work again on the 3PL concept where they not only receive the ship but also clear the cargo and containers and door deliver it to the consignee.
• This port as of now seems to be serving only the movement of hinterland cargo.
• The charges and tariff are mostly made to order and needs a good amount negotiation skills to finalise the rates.
• The size of each terminal in Astrakhan port is about 200-300 meters max.
70
5
OPERATORS PERSPECTIVE
PMO ( Port And Maritime Organization)
Indian Delegation meeting with Mr. Khosra Saraie ,Director General of Transit & Tariff at Ports & Maritime Organization ( Ministry of Road & Transport)
RMTO (I.R.Of Iran Road Maintenance & Transport Organization)
Indian Delegation meeting with Mr. Khosra Saraie ,Director General of Transit & Tariff at Ports & Maritime Organization ( Ministry of Road & Transport)
Indian Delegation meeting with Mr. Khosra Saraie ,Director General of Transit & Tariff at Ports & Maritime Organization ( Ministry of Road & Transport)
Live Border Video tracking system at RMTO office
Mr. Shankar Shinde meets RMTO officials at Astara border
Shipping Association of Iran
Indian Delegation meeting with Mr. Khosra Saraie ,Director General of Transit & Tariff at Ports & Maritime Organization ( Ministry of Road & Transport)
Shipping Agents Association
71
5
OPERATORS PERSPECTIVE International Transport Companies Association of Iran
Meetings with Members of International Transport Companies Association of Iran
(The Railways of the Islamic Republic of Iran) Iran Rail Authority
Indian Delegation and H.E. Mr S.M.A. Ahmadi, Director General, Commercial & Marketing Dept.(Minsitry of Roads &Urban Developments)The Railways of the Islamic Republic of Iran- (RAI) alongwith other official
H.E. Mr S.M.A. Ahmadi, Director General, Commercial & Marketing Dept.(Minsitry of Roads &Urban Developments)The Railways of the Islamic Republic of Iran- (RAI)
Meetings with trade members at Astara, Iran
Delegation led by H.E Shri. D. P. Srivastava, Indian Ambassador to Iran , wit Mr. Shankar Shinde,FFFAI at Astara Border - Iran alongwith Mr. Mohammedi , Manager Customs, RMTO officials with
Delegation led by H.E Shri. D. P. Srivastava, Indian Ambassador , with Mr. Shankar Shinde,FFFAI at Astara Customs Border - Iran alongwith Mr. H.R.Mohammadi, Director General of Astara Border Customs
Delegation led by H.E Shri. D. P. Srivastava, Indian Ambassador to Iran , with Mr. Shankar Shinde, FFFAI at Astara Customs Border - Iran meets Mr.Customs, RMTO officials
Mr. Shankar Shinde meets RMTO officials at Astara border
72
6
CUSTOMER’s PERSPECTIVE
73
6
CUSTOMER’s PERSPECTIVE A.
Meeting with the Tehran and Hormozgan Chamber of Commerce 1. The Hormozgan Chamber of Commerce, situated at Bandar Abbas, is now 100 years old. It has around 2400 members from various Industries, commerce and Agricultural sector. 70% import / export of IRAN is thru the Bandar Abbas Terminal. As a province, it is a very rich one. There are 4 modes of transport for International movements that is, Rail, Road, Air, Sea. It also has 2 free zones – Kish and Queshm Island . Visa is on arrival at these free zone. 2. Exporters of dates are seeing a decrease in the volume that was being imported by India . 3. Issues still exist of receiving payment in INR from the banks on time directly from India. Thus the Dubai route of payment is preferred 4. Rice importers are keen on setting up stronger ties with Indian business men. 5. Soyabean Meal has been consistently imported from India but the prices do not support to be
B.
improving despite the increasing demand in IRAN.
6. Cement has now suddenly emerged as a major export commodity but recognition by the Indian standards is necessary. 7. Bandar Abbas could be maintained as the major logistics hub for export from India to CIS due to its locational and infrastructural advantage. 8. The province expects active participation from Indian side in Bandar Abbas and Investors / Operators to open up their offices and setup operations too. The chamber can assist the same through its lawyers and also help them in arbitration if necessary. 9. India has been a supporter at the tough times of sanctions and has always enjoyed a strong bonding with Iran in terms of trade, culture and political ties.
Meeting at the Indian Embassy with various exporters and importers as well as shipping / logistics agents
1. FFFAI Presented the fact that the transit time and cost can be reduced to half from Mumbai to Russia, CIS thru IRAN. This would require a lot of co-operation and common understanding by the trade in IRAN who are responsible in helping the Indian side to connect as well as the logistics players who have a pivotal role in making it happen. The delegation presented a brief summary of the activities and also the potential it sees on the INSTC route. After the presentation, the floor was open for discussion and brain storming for the trade. Response from IRAN trade / logistics agent. • Tea Importers seek solution for movement from Kolkata to Iran since they could not get containers for export. FFFAI suggested that in such situations, the parcel trains from North east return empty via Kolkata and the exporters can explore that possibility of using that to get the cargo to Nhava Sheva / Mumbai and export from Nhava Sheva / Mumbai. •
C.
Some exporters of Iran stated that they have taken the cargo in Caspian sea during summer right upto Volgard, near Moscow thru the Volga river which saved them a lot of cost.
•
Some retired Railway officers now working as consultants for private Railway companies in Kazakhistan stated that they are willing to support the movement from Bandar Abbas to entire CIS with they help of the huge rolling stock of wagons their company owns.
•
Simatech, Iran O Hind and some shipping agents appreciated the concept and stated that they expect the movement to start soon on INSTC
•
Some Rice Importers stated that they feel that break bulk is still the best and cheapest way to export to India.
Meeting with the Russian Embassy in Tehran 1.
Traders in Russia always prefers to do business with Indians
FFFAI Presented the fact that the transit time and cost can be reduced to half from Mumbai to MOSCOW, Need excellent co-operations from Customs and Port / Railways. Also the possibility of Exports of Indian
74
Agro Commodities from India at less cost need to be explored which would mean savings for the Russian economy as well as an alternative to the European supplies.
6
CUSTOMER’s PERSPECTIVE Russia a. Currently they have sanctions on import of fruits and vegetables from Europe.
operation from Customs. f. Also suggested to make Moscow as base
b. Right time for Indian traders to get in this route.
g. Study the population distribution in and around Moscow
c. Also they prefer this route as non interference by any European presence.
h. Also see the customs regulation on website
d. Prefer from India than Iran due to Indian fruits demand in market and good quality packing, delivery and terms of contract.
i.
Rail network and cost is their strength.
e. Also requested for a single page letter so that Embassy can forward it to Astrakhan for co-
D.
Meeting with the Kazakhistan Embassy in Tehran 1. As of date their major Import / Export is with China and Europe.
2. They would be interested in the INSTC connection too and learning about it. 3. Also they are keen to connect through the new Rail Link that is being inaugurated this year along the east of Caspian sea.
Customs clearance can be done anywhere in Russia Rail station.
Copper, Alumnium, Uranium and few other non ferrous metals being rich in minerals. This is in Central and Eastern Kzakhistan 5. The west of Kazakhistan is loaded with Oil and Gas producing companies. 6. Aktau is their base port and look forward to connecting that on the INSTC.
4. They majorly produce wheat and Metals like
E.
Meeting with the Turkmenistan Embassy in Tehran a. Suggested to use the New Rail Link that is passing from Inchebourne – Iran, Turkmenistan – Caspian sea border into Khazakhistan for Transit b. Also Implemented New Transit Diplomacy Act c. Also suggested to have an INSTC council for coordination d. Look forward for Import Petrochemical products in a big way to India e. Also Turkmenbashi is a very prestigious and a big project f. They are also looking for RORO vessels to move trucks from Turkmenbashi to Baku for European Movements
75
g. Also looking for solution of GAS movement from there on the corridor. h. E stimated future traffic on the corridor is 16 milion tonnes i.
Also Trukmenistan is very strict on drug pedlars and have gone to the extent of putting the drivers behind bars and seizure of the vehicles.
j.
The MAP suggested that the Port Turkmenbashi is Rail connected and has the best and latest infrastructure.
k. The New Rail Link can be used till Sarakhs and could be road bridged from Sarakhs till Chaabhar port being the second port in the INSTC on the south of IRAN.
6
CUSTOMER’s PERSPECTIVE Trade Meets Hormozgan Chambers of Commerce meeting
Trade conference at Hormozagan Chamber of Commerce, Bandar Abbas
H.E. Mr. Mohammad Amin Sabbaghi Zadeh, President Trade conference at Hormozagan Chamber of Commerce, Bandar Abbas
Indian Embassy Seminar / Conference at Tehran
Mr. Sohel Kazani , FFFAI addresses Trade conference held at Indian Embassy office Tehran
Iran Trade conference held at Indian Embassy office Tehran
Mr. Shankar Shinde , FFFAI addresses Trade conference held at Indian Embassy office Tehran
Kazakhistan Embassy
Turkmenistan Embassy
Mr. Sohel Kazani,FFFAI and Mr. Rohit Vadhwana, Second Secretary Indian Embassy in Iran meets Mr.Yermer Sadykbekov,Second Secreatry at Kazakhstan Embassy office in Tehran
H.E. Mr. D.P. Srivastava & Mr. Sohel Kazani,FFFAI meets Turkmenistan Embassy official in Tehran
Russian Shipping Agents Meetings
Meeting with Nikolay Birukov, Vice General Director, SOYUZ VNESH TRANS International (SVT) Russian Forwarders
Meeting with Trans Container Mr. Mikaelian Anush Russian Forwarders
76
6
CUSTOMER’s PERSPECTIVE Trade Chamber of Commerce at Astara
Ms. Seyedeh Fatemeh Moghimi, Tehran Chamber of Commerce Industries, Mines and Agriculture
TehranChamberofCommerce
Economic Cooperation organisation
Mr. Sohel Kazani, FFFAI alongwith Mr. Rohit Wadhwana DCM, Indian Embassy meets Secretary ECO at Tehran
Russian Rail Authorities
Meeting with Mr. Murygina Anna, Assitant to the Head, Mr. Alexander S. Oleynikov, Consultant, Minister of Transport of the Russian Federation Development programs Department, Kamil Mezynski, Managing Director, Alexey Parilov, Russia Overseas Manager, GEFCO, Dr. Amit Telang, First Secretary, Indian Embassy in Russia, Mr. Shankar Shinde, FFFAI
Russian Customs Authorities
Russian International Transport Association
Meeting with Ms. Zharova Elena Alekseevna, Sr. State customs inspector, Mr. Novikov V. N., Head of Moscow Customs & Customs Authorities in Russia along with Mr. Sanjay Mahendru, First Secretary (Trade) & FFAI Delegates
Meeting with Association of International Road Carriers (ASMAP) in Moscow Dr. Amit Telang, First Secretary, Indian Embassy in Russia, Mr. Shankar Shinde, FFFAI
77
7
THE WAY FORWARD FOR INSTC
78
7
THE WAY FORWARD FOR INSTC A.
FILLING IN THE GAPS ON DOCUMENTATION ISSUES TIR Carnet member
out by the IRAN Customs.
As of date, India has still not opted to become a member of the TIR convention. Most of the European and CIS countries are a member and are able to move the cargo seamlessly on a single TIR carnet. Pakistan has also opted to become a TIR member and if India too chooses to become a member, we would be able to move cargo through Pakistan too into CIS assuming security conditions remaining stable.
Introducing INSTC Document
This was another proposal given by the Tehran chamber of Commerce that the convention should have an independent document similar to the TIR carnet which would ensure the same comfort of seamless documentation as being given to TIR This would need initiation from INDIA to propose the format and have it accepted by all the member countries to ensure speedy movement and special cost benefits to the cargo accompanied by it. The Person issuing the INSTC certificate shall be responsible for movement of container providing solutions and options to Shippers and co-ordination with government agencies to resolve issues during transit.
Multimodal issue in IRAN
Till date IRAN customs does not permit multimodal handling of international cargo / containers from one port in IRAN to another. This needs to be sorted
B.
Maritime Council Uniform General Charter. Code Name: “Gencon”, Part 1] format or Indian B/L as per the Multimodal Act
in due course. Delivery of Cargo should be against presentation of Original or telex release B/L. at destination , The CMR should only facilitate the movement of cargo and not the delivery of cargo to actual consignee , This will help to build confidence in Indian Shipper for opening L/C’s accordingly
Insurance : The Insurance Company should cove Indin Multimodal Tansport Bill of Lading on back to back basis CMR which contains Bill of lading No. Covering of Indian Bill of Lading will increase confidence in Indian logistics players to participate in handling Ligistics services in this sector Also India Insurance Company should have a venture with Iranian Insurance Company’s for providing joint policy covering cargo shipped and transited through Bill of Lading and related CMR at competitive price and early claim settlement processes.
Establishing single Operator / Agency network in all 3 Region Major Cultural differences in thought process between IRAN and RUSSIA which creates an opportunity for Indian Freight / shipping agents to establish their presence in the above 2 countries. It is also observed that persons from these countries have a lot of love and respect for the Indians. With the above documentation issues in place, the Indian Agent can sub-contract the custom clearing
C.
Acceptance of Indian MTO ( Multimodal Transport Operator) Bill of Lading should be accepted by IRAN , RUSSIA and CIS and could be used by the NVOCCs initially to start with while activating the business route. Over a period of time, the convention may agree to use the GENCON etc [The Baltic and International
and the Road / Rail / Port operators at reasonable margins. The Indians also needs to work on having their own containers and return traffic from Russia. The best way to have this operations started would be to identify exporters from India and Russia who have regular movements to and fro at reasonable and fixed rates for the full year that would offset the average freight that is being offered by Shipping Lines at St. Petersburg
Identifying and Linking the Resources for Movement Direct vessel Nhava Sheva to Bandar Abbas with the right transit time needed. Interim solution, plan for : Rail service from Bandar Abbas to Amirabad with fixed schedules, Start a regular container vessels service from Amirabad to Astrakhan /Olya Port Russia Regular Rail service from Olya to MOSCOW / Central Russia and Eastern Russia. Arrangement for plying Refer and Tank containers and setting up facilities for handling/moving.
79
India / Iran should take initiatives by Shipping Ministries to Introduce direct vessel by the National Shipping Lines There can be a joint Venture for regular weekly services from Nhava Sheva to Bandar Abbas The consortium can be formed inviting private Shipping Lines / Operators and Vessel owners for maintaining regular consistent services to sustain for long term and should not withdraw service till minimum 6 to 9 months.
7
THE WAY FORWARD FOR INSTC D.
REPAIRING THE COST STRUCTURE
At Mumbai: The JNPT CFS and the CONCOR CFS being government owned should be nominated for the corridor and extend a special tariff for encouraging the trade. The benefit should be given only if the shipper produces the INSTC certificate from
the chamber of commerce who checks and ratifies the route booked by the shipper. The JNPT terminal should also give priority to the berthing of the vessel arriving / proceeding to IRAN.
Mumbai to Bandar Abbas: Initially, till the time the volumes increases, to induce a dedicated vessel with full load to Bandar Abbas, feeder vessels moving to Dubai, carrying more than 150 containers for Bandar Abbas should call Bandar Abbas first and then move to Dubai. This would ensure that the slot cost would come down to USD 175 from USD 500 per container which is the main defeating factor as on date. Infact IRISIL should take up this opportunity and organize movement stated above.
Bandar Abbas port should ensure that the feeder service that would be introduced should be given priority and berth allotted within 2 hours of arrival and complete operations within 12 hours and sail for Dubai. Only then it would be feasible for the vessel to make this additional call. The port may also take a call on the tariffs that should be charged to encourage these vessels specially introduced for the INSTC movements.
Bandar Abbas to Amirabad. Rail: The tariff should be an international transit tariff for this corridor. If the Railway follows the ECO tariff of USD 0.22 /km per 20ft – It would cost the trade 0.22 X 1800kms = USD 396 or to say USD 400 only. But to get this tariff the Railways would need a minimum fixed volume movement of 150 containers per week regularly. The Rail Co. should also arrange for the offloading and movement to CY at Amirabad to keep the cost within USD 20-30 per container.
fixed contract could help the shipping lines to make new and stronger vessels dedicated for moving containers. Also Olya would be the fastest option for the vessel to skip the channel and terminate its voyage on the mouth of the Caspian sea.
Road: The domestic rates are decided by the Union and government agency in Tehran. The forwarders just charge around 5 to 10% of that amount as their fee for co-ordination and payment. Nothing much on those rates seems to be possible / negotiable. The rate as of now is approx USD 720 per container from Bandar Abbas to Amirabad however this would only be applicable if regular service with volumes are available on this route.
As regards OLYA port, they are looking for a private shipping operator to take charge of the terminal on lease and run it too. Once that is in place, the tariff and other costs could be worked out. As of now the rates can still be negotiated with the port authorities directly and work out a customized plan of operation.
At Amirabad: The THC with reference to the service is already in place. One needs to connect with Khazar shipping who is the main operator here and also with a Customs Agent who has been doing regular business at this port. The containers are moved on the deck as of now on the break bulk vessels. The THC is USD 90 per 20ft and 113 USD for 40ft container. Amirabad to Astrakhan / Olya: The current freight rates for small volumes is USD 300, which would be brought down to USD 200-220 per container. Also the rates would depend on the season since in the summer the steaming time for the vessel is just 3 days but in the winter and bad weather days it even goes upto 10 days. A
80
At Astrakhan / Olya: At Astrakhan we have a choice of 16 terminals and the THC is totally negotiable. It would prove very expensive to work with them without volumes and contracted rates, It would vary right from USD 40 per container to USD 400 per container.
From Astrakhan to MOSCOW: The Russian Railways is undoubtedly the one of the most professionally developed Rail Co.’s in the world and they absolutely understand the necessity of supporting the development of volumes and trade on this route. They would initially support any rate for establishing the business on this route initially, as we have been given to understand. Once the business settles down, the rate would be improved in a phased manner. The corridor from Olya to MOSCOW already enjoys the green status for priority which means that the containers landing at Olya would reach MOSCOW within 3 days (covering the distance of 1400 kms). St Petersburg to MOSCOW is around 900 kms and the cost of movement is around 1100 USD. From Astrakhan to MOSCOW the cost is approx USD 1500 as of date.
7
THE WAY FORWARD FOR INSTC E.
PROMOTING THE TRADE and SHIFTING THEIR BASE THRU MOSCOW FROM ST. PETERSBURG TO ASTRAKHAN. This is one of the major impediments in the initiation of the business on this route. The operator who would initiate the business would not only have to setup the base in Astrakhan in Russia but also in St Petersburg and MOSCOW initially for the purpose of liaison with the trade. Once the trade develops confidence of receiving the goods thru Astrakhan at the quoted rates and transit time, they will start shifting their resources for trade from MOSCOW/St Petersburg towards Astrakhan. Between Olya and Astrakhan, the estimated idle handle capacity is approx 100,000 containers per month which is not even 10% utilized as of date. Also there are enough secondary warehouses available at the dry port and Olya
F.
The Russian Railways holds 75% stake in daughter companies – GEFCO Logistics (Rail Company) who can be tied up with for the purpose of regular movement from Astrakhan/ Olya to MOSCOW which could be made as a temporary hub till the time the trade does not start setting up their resources from Astrakhan. Also a number of seminars should be organized by the Astrakhan province in MOSCOW and St. Petersburg giving wide publicity to the service once it commences operations and provide a SEZ as well as tax benefits initially to the trade.
LINKING THE ECONOMIC COOPERATION ORGANIZATION The ECO is twice as old as INSTC and has much broader objectives. We need to not only connect to the ECO for benefiting from their current and past efforts but also learn from their methodology of work and organizational skills / structure. The ECO cannot only connect our exports to the North
G.
which are also rail connected for distribution.
South but also give an express highway to simultaneously explore the trade on east west dissecting from IRAN. The possibility of an MOU could be looked at with regard to this. Annexed is a copy of their monthly magazine, Map and report of one of their latest projects.
Groupage / Consolidation Services Groupage / Consolidation Cargo Services with simplified Laws and Procedures to be set up by IRAN Customs and transportation of LCL ( Less than container load) with bonded transit truck for transportation to various CIS destination. The process implementation will build confidence in NVOCC / Consolidators to accept LCL cargo for IRAN and Other CIS Destination to reduce cost for shipping through containers and de-stuffing at IRAN for onward movement by CBT ( Closed body truck) The most important factor to develop trade would be moving through small shipment which is less than container load accumulate cargo arrival from
81
various countries for grouping shipment to various CIS destination. It is understood that the customs do not facilitate the LCL cargo for de-stuffing/ Bonding Warehousing facility and reworking for transportation at Bandar Abbas and Tehran , as such there is apprehension and forwarders don’t accept LCL shipments to CIS destination via IRAN, Once the Laws/ rules for LCL transit are set by customs which would make practically possible for movement of cargo , the major cargo movement can move on this route to develop volumes from small shipments to containerised shipments.
lR;eso t;rs GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY 249, Udyog Bhavan, Rafi Marg, New Delhi,-110107 Department Of Commerce, Ministry of Commerce & Industry, Government of India.
Federation Of Freight Forwarders' Associations In India ( Apex Body of Customs Brokers' Association In India ) 311-313, Mahinder Chambers, W.T. Patil Agra, Opp, Dukes Factory, Chembur, Mumbai - 400 071
82
