P. MANOJ
Steel pipe-maker Jindal Saw Ltd plans to acquire Freightstar Pvt. Ltd, the India-based container train operating unit of Dubai's ETA Group, for 1 billion to 1.5 billion rupees, as a shakeout continues in the sector, according to two persons familiar with the deal, reports Mint from Bangalore.
Freightstar has a licence to run container trains on all routes across India.
The transaction documents are being signed and the deal is expected to be announced in the next few days, one of them, an executive at Freightstar, said on condition of anonymity.
The acquisition will help Jindal Saw become India's only multi-modal logistics firm to have its own inland cargo terminals, operating container trains and ships.
Freightstar is among the 16 companies that were granted licenses by the Railway Ministry to run container trains on Indian Railway's tracks after the government privatized container freight train operations in 2006, ending the monopoly of Container Corporation of India Ltd. Freightstar has a licence to run container trains on all routes across India. It currently operates 11 trains both on the domestic as well as the export-import routes.
The company, also, is constructing inland cargo terminals at Nagpur and the National Capital Region.
These assets have been, or are being built with an investment of about 3 billion rupees, of which the equity portion would be about 1 billion rupees, and the balance would be raised from the capital markets, the Freightstar executive said.
Ernst & Young India Pvt. Ltd is advising Freightstar on the transaction.
"The ETA Group feels that because of the recession in Dubai they need to concentrate on their core business," the Freightstar executive said. "Therefore, it is exiting the container train business in India."
The purchase provided "tremendous synergy for Jindal Saw," he said.
Indresh Batra, managing director of Jindal Saw, could not be reached for comments. But Mr. Batra told Reuters in an interview last week that Jindal Saw was in talks to acquire a logistics firm that runs container trains and owns inland cargo terminals at key locations, without naming the company.
"The acquisition will provide the last mile of connectivity and enhance the synergy required to operate bulk movement of cargo along the coast," said a spokesperson for Jindal Saw on Tuesday, adding that the firm was consolidating its operations.
Jindal Saw runs a fleet of eight ships that haul bulk and break-bulk cargo on domestic routes. These ships are operated under Jindal Vector, the brand name for Jindal Waterways Ltd, the short-sea and river transport unit of Jindal Saw.
The company's purchase of Freightstar continues the trend of the past two years of investments and stakes in the freight business.
In April 2009, India Value Fund acquired a majority stake in Innovative B2B Logistics Solutions Ltd (Inlogistics), another licensed container train operator, for about 2 billion rupees.
In November that year, Blackstone Group LP, the world's biggest buyout firm, bought a 37.3% stake in Gateway Rail Freight Ltd, the container-train operating unit of Mumbai-listed container logistics firm Gateway Distriparks Ltd, for 3 billion rupees.
In November 2010, Cafe Coffee Day's V.G. Siddhartha acquired a 15% stake in Chennai-based logistics company Sical Logistics Ltd for 2 billion rupees. The deal gave Mr. Siddhartha access to Sical Multimodal and Rail Transport Ltd, which has a licence to run container trains.
Courtesy: Mint, Bangalore
Wednesday 20 April 2011
Technocrat to head NHAI? Not a bad idea
Road transport and highway ministry has proposed a change in the eligibility criteria for the post of chairman of National Highways Authority of India (NHAI).
The ministry wants to bring in a technocrat instead of a bureaucrat at the helm of NHAI.
“Road construction is a technical job. So we have asked (the search committee under Cabinet secretary KM Chandersekhar) whether we can have a technocrat as the chairman of National Highways Authority of India. But before anything is done, I have to discuss the matter with the Prime Minister,” road minister CP Joshi said on Tuesday.
The search committee has been looking for a suitable candidate since last year, and during this period the eligibility rules have been changed twice.
If the suggested change is implemented, hopes of many IAS officers may be dashed. IAS officers RS Gujaral and KS Money are currently in race for the post.
Courtesy: Financial Express
The ministry wants to bring in a technocrat instead of a bureaucrat at the helm of NHAI.
“Road construction is a technical job. So we have asked (the search committee under Cabinet secretary KM Chandersekhar) whether we can have a technocrat as the chairman of National Highways Authority of India. But before anything is done, I have to discuss the matter with the Prime Minister,” road minister CP Joshi said on Tuesday.
The search committee has been looking for a suitable candidate since last year, and during this period the eligibility rules have been changed twice.
If the suggested change is implemented, hopes of many IAS officers may be dashed. IAS officers RS Gujaral and KS Money are currently in race for the post.
Courtesy: Financial Express
Ircon "Mangalored" - Times of India view
The National Highways Authority of India (NHAI) will not take possession of the 37.5-km four-lane Port connectivity project from Bantwal up to Surathkal unless Ircon, the contractor executing the project on their behalf, addresses various lacunaes brought to their notice. NHAI will continue to make part payment to Ircon in the interim period to ensure continuity, P George Modayil, team leader of the project of NHAI said.
Replying to issues raised on inferior quality of 4-lane highway under Port connectivity project of NHAI by Praveen Chandra Shetty, chairman, road safety sub-committee, KCCI, at a meeting here on Monday, George admitted that the riding quality along some stretches of this highway was not good. "We will undertake a bump integrator test as well as examine the highway using a core cutting machine to check for the quality of the road," he said.
NHAI has repeatedly brought up various issues pertaining to the project to Ircon and they have promised to address our concerns, he said adding that there is no provision to blacklist a contractor merely because a small part of the project component is not up to the mark. The cost of construction of the flyovers at Kuntikana and Kottara represents a small portion of the total original project cost of Rs 194 crore, he noted.
Defending the payment to Ircon, George said not doing so would derail the entire project. Due diligence is being observed before clearing the payments, he said adding not making payments to Ircon would result in total closure of project work. Finding a new contractor at this stage would entail a further delay of at least one to two years, he said adding that the thinking on part of NHAI bosses is to get the project executed through Ircon itself.
The project was awarded to Ircon in 2005 with a 30-month completion time. However, the project could take off only in 2007 due to land acquisition problems. Time over run to the extent of nearly twice the original period of completion is perhaps bleeding Ircon financially, which could well be dipping in to its internal funds to complete the same, he said, adding that it is highly unlikely that Ircon could meet the June 2011 deadline for the project.
Praveen later at a joint inspection of a stretch of the project from Nanthoor up to Kodikal drew the attention of the authorities to the inferior quality of work executed by Ircon. Ravindra K G, assistant commissioner of police, Gopalkrishna Bhat, traffic PSI, Keshava Dharani, senior motor vehicle inspector, Vijay Kumar, principal, KPT, M S Natraj, HoD of civil engineering, KPT and Vijayakumari Shenoy, joint commissioner, MCC were present.
Courtesy: Times of India
Replying to issues raised on inferior quality of 4-lane highway under Port connectivity project of NHAI by Praveen Chandra Shetty, chairman, road safety sub-committee, KCCI, at a meeting here on Monday, George admitted that the riding quality along some stretches of this highway was not good. "We will undertake a bump integrator test as well as examine the highway using a core cutting machine to check for the quality of the road," he said.
NHAI has repeatedly brought up various issues pertaining to the project to Ircon and they have promised to address our concerns, he said adding that there is no provision to blacklist a contractor merely because a small part of the project component is not up to the mark. The cost of construction of the flyovers at Kuntikana and Kottara represents a small portion of the total original project cost of Rs 194 crore, he noted.
Defending the payment to Ircon, George said not doing so would derail the entire project. Due diligence is being observed before clearing the payments, he said adding not making payments to Ircon would result in total closure of project work. Finding a new contractor at this stage would entail a further delay of at least one to two years, he said adding that the thinking on part of NHAI bosses is to get the project executed through Ircon itself.
The project was awarded to Ircon in 2005 with a 30-month completion time. However, the project could take off only in 2007 due to land acquisition problems. Time over run to the extent of nearly twice the original period of completion is perhaps bleeding Ircon financially, which could well be dipping in to its internal funds to complete the same, he said, adding that it is highly unlikely that Ircon could meet the June 2011 deadline for the project.
Praveen later at a joint inspection of a stretch of the project from Nanthoor up to Kodikal drew the attention of the authorities to the inferior quality of work executed by Ircon. Ravindra K G, assistant commissioner of police, Gopalkrishna Bhat, traffic PSI, Keshava Dharani, senior motor vehicle inspector, Vijay Kumar, principal, KPT, M S Natraj, HoD of civil engineering, KPT and Vijayakumari Shenoy, joint commissioner, MCC were present.
Courtesy: Times of India
Not 10% definitely!
Mahendra Kumar SinghThe Planning Commission is likely to set a target of 9%-9.5% growth during the 12th Five Year Plan, which starts next April. The growth target, which is expected to be finalized at the full Plan panel meeting on this week (Thursday) to be chaired by Prime Minister Manmohan Singh, will come with a rider — agriculture and manufacturing sectors need to grow at 4% and 11%-12%, respectively.
Planners are cautious in setting an 'ambitious' growth target for the next plan since the global economy is still quite sluggish. "We want to present a picture before the PM, which is achievable," said minister of state for planning Ashwini Kumar, ahead of the meeting that will finalize the approach paper for the upcoming 12th Plan.
The thrust of the Plan will be on faster, more inclusive and sustainable development. Creation of more transparent environment will be another focus area since UPA-II has been hit by scams and scandals. The challenge is to infuse higher private investment to push infrastructure sector—a key factor in clocking high growth.
On the other hand, the government will fund flagship schemes to make the growth more inclusive. Reforms are on the anvil to effectively implement social sector schemes. The plan panel is expected to focus on water management and technological innovation to enhance food production for sustaining current level of agricultural growth of 4% throughout the next plan period.
Courtesy: Times of India
Tuesday 19 April 2011
GEFCO buys Mercurio SPA
GEFCO announces the signature of an agreement to acquire 70 % of Gruppo MERCURIO SpAGEFCO, a 100% affiliate of PSA Peugeot Citroën, signed an agreement with the Italian fund Venice, controlled by Palladio Finanziaria, and RP3 fund to acquire their 70% of the Gruppo MERCURIO, one of the leading player in transportation and distribution of vehicles in Italy and abroad.
MERCURIO has a significant worldwide presence, notably in fast growing areas in Mercosur, India, South-East Asia and Central Europe and has generated revenues of €127 million in 2010.
With this acquisition, GEFCO, European leader in transportation and logistics, will accelerate its development in outbound automotive logistic as well as the diversification of its clients portfolio and the extension of its international footprint. In addition, substantial synergies with MERCURIO will enable GEFCO to strengthen its European network's competitivity.
The acquisition of MERCURIO is subject to, among others, the approval of the relevant antitrust authorities.
Mercurio has a presence in India through a 50:50 joint venture with Pallia Transports and function under Mercurio Pallia Logisitcs. MP is a name to reckon with in car carrier business, under the stewardship of Vipul Nanda, Chairman and Managing Director.
For a detailed story on Mercurio Pallia Logistics, check out the December 2010 Cover Story in Logistics Times at: www.logisticstimes.net/magazine.php (Registration required to browse/access the emgazine)
Backgrounder
The GEFCO group
GEFCO sets the standard in logistics for the industry. Through its six key areas of expertise – Logistics, Gefbox system, Overseas, Overland, Vehicle Distribution and Customs and VAT representation – GEFCO is able to deliver global, innovative solutions in both inbound and outbound logistics for a full range of industrial requirements. Present in 150 countries, GEFCO ranks among Europe's top ten logistics groups with a turnover of 3.4 billion in 2010. The Group has 400 business locations worldwide, a workforce of 9,400 employees and is developing activities in Central Asia, Central and Eastern Europe, in Middle East, Eastern Asia and South America.
Website: www.gefco.net
Third Party Premium hike trouble brewing
Debjoy Sengupta & Shilpy Sinha,ET Bureau
KOLKATA | MUMBAI: The Insurance Regulatory Development Authority's ( Irda )) decision to raise third-party premium for commercial vehicles by about 65-70% on an average is making various transport associations look at the possibility of floating their own general insurance company to cover their vehicles.
Transport associations across the nation have called an emergency meeting on Wednesday to protest the hike that will be applicable from April 25. Some 70-lakh commercial vehicles and 400-odd transport associations all over the country may also go on a nation-wide strike. Gill Raghabir Singh of Gills Roadways Association said the transport association may look at setting up an insurance company of its own.
"We have called an emergency meeting on Wednesday. We may boycott insurance companies and may look at forming an insurance company for third-party motor vehicles," he said.
Gurinder Pal Singh, chairman of the All India Motor Transport Congress , which is the apex body for all transport vehicles, including trucks and busses, said: "We may go on a nation-wide strike of all transporters if need be. Four years ago, the insurance regulator had increased third-party premiums by 150% but was later forced to roll back to 60%. Our costs are spiraling on a regular basis mainly due to rise in diesel and petrol prices. An additional rise in insurance premium will squeeze our already wafer-thin margins. Third-party insurance premiums vary between Rs 10,000 and Rs 20,000, depending upon the class of the vehicle every year. We will now have to shell out anything between Rs 17,000 and Rs 34,000."
Mahendra Arya, member, advisory committee of the Bombay Goods Transport Association, said: "The industry has segregated the data into two parts. Insurers are making a profit on the composite. There is no justification in the rate hike." Tapan Banerjee, joint secretary, Joint council of Bus Syndicates, a bus owners' association in Kolkata , said: "Once the elections in West Bengal are over, we will take the legal recourse. Bus owners are incurring losses on a daily basis and the cost of insurance, including thirdparty, varies from Rs 25,000-40,000 per year. A hike will hit our bottom line adversely and may force many owners to exit the business."
Bengal Bus Syndicate vice-president Dipak Sarkar said: "Tariffs are determined by the state government after discussions with bus owners. We have not been able to raise tariffs for the last one year despite rise in input costs. This is resulting in heavy losses for all bus owners. Any additional rise in costs will be detrimental."
Ashok Banerjee, professor of finance at IIM Calcutta says: "Claims under third party have been historically disproportionate to the premium income. There are a number of instances where vehicles are not maintained properly, leading to accidents and third-party claims. In the overall demand-supply scenario, higher premiums should act as a disincentive to insure poorlymaintained vehicles, so that in the long run, vehicles are maintained better and claims reduce."
S Shrivastva, secretary-general at the Insurance Institute of India said: "The sum assured under third-party insurance is unlimited and doesn't depend on the year of the incident. Even heirs of accident victims can claim liability after several years. This makes it difficult for insurers to provision any claims payable. Additionally, liability claimed by the person suffering injury depends upon a host of factors, including the financial condition of the individual. These factors have resulted in the number of claims rising over the years as well as the claim amounts. A 70% rise in premium is barely enough to meet insurers' liabilities."
Source: Economic Times
http://economictimes.indiatimes.com/articleshow/8023267.cms?prtpage=1
Monday 18 April 2011
Orissa Private Ports- MoUs opaque?
Smelling corruption in the process of Orissa government's MoU with private parties for setting up about a dozen minor ports, an organisation fighting against corruption sought a CBI probe into the matter.
In a letter to Chief Minister Naveen Patnaik, Transparency International, India (TII) Board Member Biswajit Mohanty alleged that Orissa government had signed concession agreements with private developers for ports without going through open bidding process.
"I find a woeful and complete lack of transparency in the process followed by the commerce and transport department in selection of bidders for development of ports by the private sector. No eligibility criteria as to minimum turnover, financial worth, years of business experience in port development has been announced by government or mentioned in the port policy," Mohanty claimed in the letter.When contacted, commerce and transport minister Sanjeev Sahoo claimed that utmost transparency had been maintained in the process."There are multiple applications for each port project. We consider them basing on their feasibility report prepared by a central undertaking," Sahoo told PTI rejecting demand of a CBI probe into the matter.
Sahoo said the state government had invited international bidding for Gopalpur Port, but it was following the state's port policy for setting up new minor ports.Orissa government has recently signed an MOU with Essel Mining and Industries for development of the Chudamani port, while it has already handed over two ports, Subarnarekha mouth and Astaranga to Creative Port Development Pvt Ltd and Navayuga Engineering Co Ltd respectively, Mohanty said.
Now there are 25 applicants who desire to develop 8 ports at Bichitrapur, Bahabalpur, Chandipur, Inchuri, Barunei Muhan, Baliharchandi, Palur and Bauda Muhan.
Source: IBNLive
12th Plan: 10% GDP growth, pipedream!
KR SudhamanEducation, health and infrastructure will be the priority areas of the 12th five-year plan, according to the Planning Commission deputy chairman, Montek Singh Ahluwalia. Besides, the plan will also propose ‘drastic action’ to fix problems in the power sector.
He said on Sunday that it was “probably overambitious” to aim at a double-digit growth in the five-year plan beginning next year. Though, he hastened to add that the exact growth target was yet to be fixed.
He said it would be good if 9 per cent GDP growth could be achieved annually as the global economy was not doing well. “Looking forward, the world economy is not doing well. If India grows at an average of 8.5 per cent in 12th plan period, it would be counted as a very good performance. If we do 9 per cent, it will be excellent. I should add that to get 9 per cent growth or a little over 9 per cent a lot of work has to be done. If we try to take it up by 1 per cent from the 11th plan achievement, it will be 9.2 per cent,” Ahluwalia told Financial Chronicle.
Though the Planning Commission had projected 9 per cent annual growth during the 11th plan, it would end up with average 8.2 per cent. “This is an exceptionally good performance compared to rest of the world,” he said.Commenting on the IMF observation that India with 10.3 per cent growth would overtake China (10.2 per cent growth), Ahluwalia said one should not get carried away by these numbers as China had been growing much faster for 30 years.
Their per capita income was now much higher than that of India. “Even if India grows at 9 per cent and China at 7 per cent in next 20 years, India would still have a lot of catching up to do,” he said. Ahead of full the Planning Commission meeting on April 21 to be chaired by prime minister Manmohan Singh to discuss the approach paper to 12th plan, Ahluwalia said the government proposed to introduce the public-private partnership (PPP) model in education and health for the first time.
“The human resources development ministry is now considering how to introduce PPP in school education. Of 6,000 model schools, about 3,500 are to be set up in backward areas where we cannot attract the private sector. The remaining 2,500 are to be set up in PPP mode. We will start this year, but 95 per cent of the work will be done in 12th plan,” he said.
This proposal will go to the cabinet soon, he said. A cabinet note prepared by the HRD ministry is already with the Planning Commission. Ahluwalia said the PPP schools should be viewed as a pilot project of the centre. If successful, it could be replicated by state governments as school education was basically a state subject.
In the past the centre had set up 900 Navodhya schools as model residential schools all over the country. These have done exceptionally well. The PPP schools would not necessarily be residential schools.
Turning to the difficult power situation, Ahluwalia said, “More drastic measures were needed. We need to push five or six key issues…Losses on the distribution side are a serious problem. It is not possible to imagine a viable power sector if the losses are Rs 70,000 crore per year. Something has to be done to take care of the weakness in this area.”
“Perhaps incentive funding (in the power sector) will have to be linked to performance and not by merely filling the gap. The banking sector too should impose discipline. Losses are possible only because banks continue to finance public sector distribution companies. If this is tightened, losses (in the power sector) will automatically come down. Poor availability of water, coal and problems of distribution needed to be addressed by the centre and states together.” he said.
On making India a global manufacturing hub, Ahluwalia said the prime minister’s national manufacturing council is meeting on May 4 to give finishing touches to the idea. “It (manufacturing hub) is a good idea. We are in favour of pushing it. The proposal is to create an environment to achieve double-digit growth in manufacturing. This is only one part of what should be a comprehensive approach to manufacturing.”
On the possibility of achieving 14 per cent annual growth in the manufacturing sector, Ahluwalia said, “Frankly achieving such a rate immediately will be difficult, considering that we are struggling at 3.6 per cent factory output growth according to February 2011 data. In April-February, manufacturing grew by 7.8 per cent. Let us take it to 12 per cent. Obviously, if we find this is feasible, we will take it to 14 per cent.”
On taking the share of manufacturing to 25 per cent of GDP from 16 per cent by 2022, he said one should not look at it as a share of GDP. If all other sectors also grew well, the share of manufacturing in GDP would come down. One should rather focus on a sustained double- digit growth in the manufacturing sector.
He made it clear that full Planning Commission meeting on April 21 was not expected to approve the draft approach paper to 12th plan. The purpose was to present some key issues for the plan. “We are working on a draft approach paper that will be finalised based on the discussion in the meeting.”
The Planning Commission has adopted a consultative approach in preparation of twelfth plan. “We have a website and 30,000 visitors have visited it. There have been 1.3 million hits. It is unprecedented and a very new mechanism trying to get views from stakeholders. We are also going to have discussions with the state governments. We are now an economy where growth dynamism is private sector led. The whole of agriculture is in the private sector. We are not taking a view that the government does not have a role because the economy now is the private sector and market driven. The government role too will expand in areas where the private sector does not go.”
Skill development is another area where the next plan will lay an emphasis. The prime minister’s adviser on skill development, S Ramadorai, has been co-opted as chairman of the skills development board headed by Ahluwalia. “I have written to all state chief ministers that Ramadorai would be interacting with them on the issue,” he said.
On infrastructure development, he said, “In the 11th plan, around 65 per cent of infrastructure development was in the public sector and 35 per cent in the private sector. Considering the infrastructure spending was around $500 billion in the 11th plan, the government spent $325 billion. In the 12th plan investment has to be $1 trillion and it is going to be 50 per cent each by the public and private sectors.”
“This is certainly going to be a big challenge.” About the infrastructure debt fund, he said the finance ministry was examining proposals and he hoped to have details by the end of this month.
Source URL: http://www.mydigitalfc.com/economy/education-infrastructure-top-12th-plan-agenda-600.
Sunday 17 April 2011
12th Plan: And Beyond - Port sector
The government is looking at an investment of over Rs one lakh crore in 13 major ports, majority of which will come from the private sector , to expand their capacity by 767.15 million tonnes (MT) in the next 10 years.
"We have identified 352 projects for major ports to increase their capacity by 767 MT. This will entail Rs 1.09 lakh crore investment of which Rs 72,878 crore have been estimated to come from the private sector," a Shipping Ministry official told PTI.
The major ports capacity was recorded at 616.73 MT on March 31, 2010.
Balance Rs 36,571 crore be would be funded through internal resources and the budgetary support, he said.
The proposed investment is in addition to 72 ongoing projects with a total cost of Rs 18,493 crore to generate a capacity of 143 MT.
India at present has 13 major ports - Mumbai, Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatanam, Cochin, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin, Kandla and Port Blair under the control of Centre.
The development projects have been identified for deepening of channels, construction and re-construction of berths, procurement and modernisation of equipments, hinterland connectivity etc to be undertaken in three phases. The first phase will end by 2012, the terminal year of the current 11th Five Year Plan while the second phase will be implemented during the 12th Five Year Plan ( 2012-17) and the final phase will end by 2020.
The government unveiled a new policy for the Shipping sector that entails an investment of Rs 5 lakh crore by 2020 to take the ports capacity to 3,200 MT and bring in major reforms in the space.
Earlier, this year, the government unveiled a new Maritime Agenda to take ports capacity to 3,200 million tonnes (MT) from 617 MT on March 31, 2010. Source: http://economictimes.indiatimes.com/news/economy/infrastructure/govt-plans-rs-109-lakh-cr-investment-in-13-major-ports/articleshow/8004813.cms
12th Plan:Growth projections-1
India will need to maintain over 4.5 per cent farm output and 12.4 per cent manufacturing growth during the 12 Plan (2012-17) to achieve the ambitious 10 per cent economic expansion in the five year period. With adequate focus on agriculture and industrial sectors, the average growth rate in the next Plan can be raised to 10 per cent from 8.1 per cent in the current plan, said a note prepared by the Commission ahead of the meeting of the full Plan panel on April 21.
The meeting to be headed by Prime Minister Manmohan Singh is likely to approve the Approach Paper for the 12th Plan. Among others, the meeting will be attended by Planning Commission members and senior Cabinet ministers including Finance Minister Pranab Mukherjee and Home Minister P Chidambaram .
Although the Commission had pegged the economic growth rate at 9 per cent for the Eleventh Plan (2007-12), it was scaled down to 8.1 per cent in view of the impact of the global financial meltdown on the Indian economy.
The Commission has suggested growth scenario under which 9 per cent growth can be achieved by maintaining 4 per cent agriculture and 9.8 per cent manufacturing growth rates.
At present, India is passing through a critical phase with spiralling inflation and moderating industrial output, particularly manufacturing.
According to the latest data, manufacturing sector has registered a growth of 8.1 per cent, compared to 10.4 per cent in the April-February period of 2010-11. In February, it slowed to 3.5 per cent, compared to 16.1 per cent in the same month last year.
Experts describe India as being in 'catch-22 situation' as taking short term monetary measures like raising key rates would hamper growth and the absence of these initiatives would further fuel inflation.
High prices of vegetables and manufactured items drove the overall inflation in March to 8.98 per cent, way above the RBI's revised (upward) projection of 8 per cent.
The overall inflation measured on the basis of Wholesale Price Index (WPI) was 8.31 per cent in February. The WPI inflation for January was revised upwards to 9.35 per cent from the provisional estimates of 8.23 per cent.
Concerned over high headline inflation, the Commission had raised doubts over clocking the targeted 9 per cent economic growth in the current fiscal.
"We may not hit 9 per cent (economic growth rate in 2011-12), " Planning Commission Deputy Chairman Montek Singh Ahluwalia had said.
Referring to growth prospects in the current fiscal, he said, it may be difficult to achieve 6 per cent farm sector growth expected to be recorded during 2010-11.
"There is no chance for agriculture to grow at 6 per cent this fiscal, it may probably grow at 3 per cent", he said.
Source: Economic Times, April 17, 2011
http://economictimes.indiatimes.com/news/economy/indicators/high-farm-manufacturing-output-must-for-10-gdp-in-12th-plan/articleshow/8004954.cms
Overloading owes, global
You’ve no reason to know Honorary Hermogenes Edejer Ebdane, Jr. Doesn’t matter. He is Secretary in the Department of Public Works and Highways, Government of Philippines. He has been in the news of late – causing sleepless nights to haulage carriers (simply put, commercial vehicle owners) and logistics service providers or LSPs. He’s for the strict implementation of RA 8794 or Anti-Overloading Act. “As mandated by RA 8794 or the Anti-Overloading Act, these violators must pay the fine of 25% of MVUC. However, while we are penalizing them, this does not prevent them from using the road net carrying their excess weight. This specific measure is meant to ensure that violators not only pay the penalty, but more importantly that overloaded trucks do not get to continue their journey without unloading the excess weight.”
Ebadane’s concern is understandable given the fact that Philippines spends a whopping P13.5 billion every year on maintaining 30,000 km of national highways alone. From May, authorities will be imposing the gross vehicle weight limit (GVW), on top of the current 13,500 kilograms per axle limit on trucks. The maximum allowable GVW will range from 16,880 to 41,000 kg, depending on the truck configuration and number of axles.
Drivers caught violating the law could face confiscations of their licenses as well as their truck’s license plates, and penalties to be calculated based on the apprehended truck’s excess weight. Significantly truckers lobby is arguing that the “shipper’s share of responsibility and accountability in causing the overload” is totally ignored. That is to say, overloading was caused by the cargo and therefore shippers should share the penalty burden. Strict adherence to the law of the land may cost P 5 billion to the truckers. Their worry is also understandable.
The Philippines has the highest allowable axle load limits in the World. Compared to the 13.5 mt/axle limit prescribed by RA 8794, other countries have the following limits: U.S. 9.1 mt/axle, U.K. mt/axle, EU 11.5mt/axle, France 13.0 mt/axle, Thailand 9.1 mt/axle, Pakistan 12.0 mt/axle, and India 9.3 mt/axle. The Philippines government is examining to hold the truck operators civilly and criminally liable for their willful and recurrent violations of the Anti-Overloading Law.
It will be interesting to note how African nations are tackling overload issue. Joe Gidisu, Minister of Road and Highways, is gearing up for strict implementation of axle load control to protect his country’s roads against premature deterioration from June 1. The enforcement was in compliance with the Union Economic Monitaire L'Ouest African (UEMOA) Regulation 2005, which mandated ECOWAS member states to adopt standards and procedures for control of the gauge, the weight and the axle load of every vehicle. For four months, 600 truck drivers and 300 vehicles were held in Burkina Faso-Niger border for flouting axle load regulations before the minister’s intervention brought relief. However, excess cargo was unloaded and transported in other vehicles. NO compromises on that score.
The current legal system which imposes penalties on transport operators who are guilty of overloading, is not working as the fines are "ridiculously" low and does not match the damage caused to roads, according to the Roads Authority of Namibia.
Hileni Fillemon, quoted in Namibian Economist, is of the view that apart from being the main cause of road damage, overloading should be discouraged at all costs as it removes fair competition within the industry. "Unscrupulous transport operators create some advantages for themselves over law-abiding operators by being able to move larger quantities of cargo at fairer prices than their competitors, thus becoming more attractive on the market. Furthermore, the consequences of their actions are spread among all players in the field, thus sharing the related increase in overheads with innocent competitors, in the long run," adds he.
Meanwhile, Researchers Eric Moreno-Quintero and David Watling of Institute for Transport Studies, Leeds University, who wrote “A Stochastic Route Choice Model in Optimal Control of Road Freight Flows: A Mexican Case Study”, categorically maintain that “the inefficiencies arising from increased freight road traffic in the late 1990s in Mexico have posed to planners engaged in the road provision the goal to find new control measures to reduce the adverse impacts, such as road damage and overloading.”
A few developments led to a sea-change on the road freight flow. In the 1990s, road freight traffic in Mexico altered notably after the deregulation of the road freight industry in 1989; the North American Free Trade Agreement (NAFTA) in 1994; and the privatisation of the Mexican Railway in 1997. These changes created new land freight flows, attracting attention to the characterisation of lorry flows on the roads, and the estimation of possible impacts in areas like: route choice, road damage and repair costs, overloading practices and government’s decisions as weight limits, tolls levels and loading enforcement scheme.
This piece appeared in the April 2011 issue of SAARC Journal of Transport
Visit www.saarcjt.com
Tuesday 12 April 2011
Lucknow blocks road freight path
OUR BUREAU
The restrictions on entry of goods vehicles into city limits are nothing new. Such restrictions are in force in many cities. But in some States, the duration of restriction defies logic.
As the scribe of a transport journal, while travelling in a 40-tonne truck from Jamshedpur to Ludhiana, noted, all commercial vehicles are stopped outside Lucknow for more than 16 hours — from 6 am to 10.30 pm.
The reason: Movement of loaded heavy commercial vehicles within Lucknow city is not permitted during the period and both NH-56 (linking Lucknow with Varanasi) and NH-24 (linking Lucknow with New Delhi) pass through the heart of the city. It is not difficult to imagine the huge loss (the duration of restriction multiplied by the number affected vehicles) suffered by the economy due to the ban.
One way of avoiding the restriction is to take a detour via Barabanki. But the road to Barabanki is so narrow that heavy vehicles will find it almost impossible to negotiate it.
The other alternative is the construction of a bypass skirting Lucknow city. Whether such construction will be the priority for NHAI is of course another matter.
(This article was published in the Business Line print edition dated April 11, 2011)
Courtesy: Hindu Business Line
The Journalist mentioned in this piece is yours sincerely!
Here's the open letter I wrote to NHAI Chairman Mr R S Gujral, a few weeks ago:
Shri R S Gujral 3 March 2011
Chairman
National Highway Authority of India
New Delhi
India
Dear Mr Gujral,
Sub: Lucknow Crossing
Last month, I had the pleasure of passing through Lucknow on a heavy commercial vehicle (40 tonne Tata trailer carrying wire roads from Jamshedpur to Ludhiana). You wonder why I was travelling in such a mode of transport. Let me clarify. This 1650 km onroad journey was part of my learning process to understand the logistical nightmare of commercial vehicles passing through various states. You will appreciate India is like a federation of several states – each with its own set of road rules etc. I wish to bring to your kind attention one particular issue. Kindly permit me to elaborate.
Lucknow Crossing: All heavy commercial vehicles were halted on the outskirts of Lucknow from 6 a.m. to 10.30 p.m. Entry restrictions into the city limits is nothing new in many states. But what puzzled me was such a long duration of restriction: 16 hours! We were told that this 16-hour ban on entry into Lucknow is to avoid traffic congestion and enable smooth passage for regulars: read, non commercial vehicles. Secondly, we were told that the highway NH 56 (linking Benares to Lucknow) and NH 24 (linking Lucknow with New Delhi) – yes, both conjoin in Lucknow – have to pass through the heart of city which houses the secretariat and the residential quarters of senior bureaucrats of Uttar Pradesh government.
If heavy commercial vehicles were permitted to trek through during daytime, this may impede the smooth functioning of UP government is the argument spelt out by police officials whom we met with while waiting on the outskirts of Lucknow.
UP government’s concern for smooth passage during daytime is understandable. But, it appears that no thought about the loss incurred by stopping the free or smooth flow of commerce of the country that has to pass through Lucknow to other parts of the country has been given its due weightage.
In fact, we were advised to take a detour via Barabanki and touch Lucknow if we want to beat the 16-hour long entry ban. But the narrow passage of road to Barabanki which would not permit trailers (both Over Dimensional Cargo and non-ODC) posed a challenge. Sir, in the absence of a bypass from NH 56 and link it with NH 24 without touching Lucknow city proper, this unusually long hours of entry restrictions does not sound logical.
In most cities or state capitals, road entry restrictions are definitely in force. But during peak hours. For instance, heavy commercial vehicles will not be permitted into Bangalore city from 7 a.m. to 10 a.m. – barely 3 hours in the morning and again in the evening – 5 p.m. to 9 p.m. So also, entry into Delhi from Gurgaon on NH 8. Even in Jamshedpur, entry for heavy commercial vehicles is banned till 5 p.m. After 5 p.m., heavy commercial vehicles began to ply. Otherwise trade and commerce will be affected.
Sir, as the nodal agency for planning and strategising national highways, it is NHAI’s responsibility to ensure smooth passage of India’s commerce on its roads.
I request you to look into this issue and reconsider the existing policy of 16-hour long entry restrictions into Lucknow at the earliest.
Warm regards
Ramesh Kumar, Consulting Editor ,SAARC Journal of Transport, New Delhi
The restrictions on entry of goods vehicles into city limits are nothing new. Such restrictions are in force in many cities. But in some States, the duration of restriction defies logic.
As the scribe of a transport journal, while travelling in a 40-tonne truck from Jamshedpur to Ludhiana, noted, all commercial vehicles are stopped outside Lucknow for more than 16 hours — from 6 am to 10.30 pm.
The reason: Movement of loaded heavy commercial vehicles within Lucknow city is not permitted during the period and both NH-56 (linking Lucknow with Varanasi) and NH-24 (linking Lucknow with New Delhi) pass through the heart of the city. It is not difficult to imagine the huge loss (the duration of restriction multiplied by the number affected vehicles) suffered by the economy due to the ban.
One way of avoiding the restriction is to take a detour via Barabanki. But the road to Barabanki is so narrow that heavy vehicles will find it almost impossible to negotiate it.
The other alternative is the construction of a bypass skirting Lucknow city. Whether such construction will be the priority for NHAI is of course another matter.
(This article was published in the Business Line print edition dated April 11, 2011)
Courtesy: Hindu Business Line
The Journalist mentioned in this piece is yours sincerely!
Here's the open letter I wrote to NHAI Chairman Mr R S Gujral, a few weeks ago:
Shri R S Gujral 3 March 2011
Chairman
National Highway Authority of India
New Delhi
India
Dear Mr Gujral,
Sub: Lucknow Crossing
Last month, I had the pleasure of passing through Lucknow on a heavy commercial vehicle (40 tonne Tata trailer carrying wire roads from Jamshedpur to Ludhiana). You wonder why I was travelling in such a mode of transport. Let me clarify. This 1650 km onroad journey was part of my learning process to understand the logistical nightmare of commercial vehicles passing through various states. You will appreciate India is like a federation of several states – each with its own set of road rules etc. I wish to bring to your kind attention one particular issue. Kindly permit me to elaborate.
Lucknow Crossing: All heavy commercial vehicles were halted on the outskirts of Lucknow from 6 a.m. to 10.30 p.m. Entry restrictions into the city limits is nothing new in many states. But what puzzled me was such a long duration of restriction: 16 hours! We were told that this 16-hour ban on entry into Lucknow is to avoid traffic congestion and enable smooth passage for regulars: read, non commercial vehicles. Secondly, we were told that the highway NH 56 (linking Benares to Lucknow) and NH 24 (linking Lucknow with New Delhi) – yes, both conjoin in Lucknow – have to pass through the heart of city which houses the secretariat and the residential quarters of senior bureaucrats of Uttar Pradesh government.
If heavy commercial vehicles were permitted to trek through during daytime, this may impede the smooth functioning of UP government is the argument spelt out by police officials whom we met with while waiting on the outskirts of Lucknow.
UP government’s concern for smooth passage during daytime is understandable. But, it appears that no thought about the loss incurred by stopping the free or smooth flow of commerce of the country that has to pass through Lucknow to other parts of the country has been given its due weightage.
In fact, we were advised to take a detour via Barabanki and touch Lucknow if we want to beat the 16-hour long entry ban. But the narrow passage of road to Barabanki which would not permit trailers (both Over Dimensional Cargo and non-ODC) posed a challenge. Sir, in the absence of a bypass from NH 56 and link it with NH 24 without touching Lucknow city proper, this unusually long hours of entry restrictions does not sound logical.
In most cities or state capitals, road entry restrictions are definitely in force. But during peak hours. For instance, heavy commercial vehicles will not be permitted into Bangalore city from 7 a.m. to 10 a.m. – barely 3 hours in the morning and again in the evening – 5 p.m. to 9 p.m. So also, entry into Delhi from Gurgaon on NH 8. Even in Jamshedpur, entry for heavy commercial vehicles is banned till 5 p.m. After 5 p.m., heavy commercial vehicles began to ply. Otherwise trade and commerce will be affected.
Sir, as the nodal agency for planning and strategising national highways, it is NHAI’s responsibility to ensure smooth passage of India’s commerce on its roads.
I request you to look into this issue and reconsider the existing policy of 16-hour long entry restrictions into Lucknow at the earliest.
Warm regards
Ramesh Kumar, Consulting Editor ,SAARC Journal of Transport, New Delhi
$100 mn logistics gambit
By Shraddha Nair and P.R. Sanjai of MintWarburg Pincus India Pvt. Ltd, the private equity fund that has deployed $2.5 billion in India, invested $100 million in logistics firm Continental Warehousing Corp. (Nhava Sheva).
Continental is part of the NDR Group, which has one of the largest warehousing networks in India with 6.5 million square feet of storage area in 70 locations.
The fresh infusion of funds will be used to build more warehouses. Continental plans to build terminals in Hyderabad, Ahmedabad and Panipat by the end of the financial year, said Amruthesh Reddy, executive director of the Chennai-based company.
"Since the capital requirement is intensive," Continental aims to go public in the next 18 months to two years.
The company, previously, had raised funds from private equity firms Aureos India Advisers Pvt. Ltd, ePlanet Ventures and IL&FS Investment Managers Ltd (IIML). Warburg's investment comes after one of the early investors exited the deal, while the other two have sold part of their stakes. Mr. Reddy declined to give specifics.
"We have been following the logistics space in India for many years now," said Vishal Mahadevia, managing director, Warburg Pincus. The company also has invested in Gangavaram Port Ltd and IMC Ltd, a bulk liquid-storage company.
"Logistics is a very large market but due to bottlenecks in infrastructure, the cost of logistics is very high," Mr. Mahadevia said.
The government's plan to implement the goods and services tax was another reason for the investment, he added. The tax is expected to level state taxes and obviate the need for multiple warehouses, resulting in the emergence of large warehousing hubs in key locations.
There's a huge demand for storage space, according to a report by consulting firm KPMG India Pvt. Ltd, which estimates that an additional 120 million square feet of warehousing space will be needed by 2012 to bridge the demand-supply gap.
"Several leading companies and logistics services providers have already set up these large warehouses, but many more are in desperate need of capital and knowhow from investors and operators to capitalize on the opportunity," said Gagan Seksaria, associate director, and Chandan Choubey, a senior analyst at consulting firm KPMG in a December report.
Uday Palsule, director at Pune-based Spear Logistics Pvt Ltd, called it a sensible investment by Warburg Pincus, considering the trade potential and need for dry ports. Shipping lines, exporters, importers and logistics companies want dedicated infrastructure to move their cargo by rail to various ports, he said.
Private equity investments in the logistics space declined from 17 transactions worth $491 million in 2008 to 10 deals worth $182 million in 2009, according to Venture Intelligence, which tracks such investments in India. In 2010, there have been 11 transactions worth $245 million, so far.
Spark Capital was the financial adviser to Warburg Pincus on this transaction.
Courtesy: www.livemint.com
Friday 8 April 2011
Special dividend from Allcargo Global
The company recommended special dividend @ 100% i.e. Rs.2 per equity share of Rs.2 each on account of completion of five years of listing of the Company's equity shares on the Stock Exchange, reports India INfoline News Service from Mumbai.Allcargo Global Logistics reported a net profit at Rs 17,55mn for the period ended December 2010 as compared to a Rs 14,06mn last year.
The Board of Directors of Allcargo Global Logistics Limited at its meeting held on April 05, 2011 has recommended special dividend @ 100% i.e. Rs.2 per equity share of Rs.2 each on account of completion of five years of listing of the Company's equity shares on the Stock Exchange.
The Board also recommended Final Dividend @ 25% i.e. Re.0.50 per equity shares of Rs 2 each. The total dividend, including the interim dividend paid @ 25% i.e. Re.0.50 per equity share of Rs 2 each in November 2010, will be 150% i.e Rs.3.00 per equity share of Rs.2 each.
Thursday 7 April 2011
FedEx's Boeing 777F induction
FedEx Express launched a new intercontinental flight route which will provide significant service improvements for customers shipping between the U.S., Middle East, India and Europe. The new Boeing 777F service will provide Indian businesses with better international connectivity as well as additional capacity.
The deployment of the new freighter is part of a series of service and capabilities up-grades by FedEx Express in India to strengthen the company’s commitment to offering unprecedented connectivity and world-class services in the country. The additional payload capacity from India will enable businesses of all sizes to capitalize on untapped global business opportunities.
“Indian businesses are now increasingly expanding beyond geographical boundaries and trading at a global level. This widespread growth has been a strong driving force behind increased cargo space and enhanced connectivity.” said Kenneth F Koval, vice president, Operations, FedEx Express India. “The deployment of a new Boeing 777F is aimed at meeting this demand. The aircraft will offer improved payload capacity, thus addressing the growing need for additional space as well as further underlining our commitment to offering unparalleled connectivity to our customers in India.”
The new Boeing 777F is the world’s largest twin-engine cargo aircraft, which delivers operational efficiencies as well as greater fuel efficiency and lower carbon emissions. FedEx Express is the first U.S.-based, global, all-cargo airline to add the Boeing 777F to its fleet and has already taken delivery of 12 Boeing 777Fs with 32 still on order; for a total of 44 Boeing 777Fs anticipated by the end of fiscal 2019. This is part of FedEx commitment to environmental sustainability and will help the company move closer to its goal of reducing fuel emissions by 20 percent by the year 2020.
This announcement is one in a series of flight enhancements introduced by FedEx Express in Europe, Middle East, Indian Subcontinent and Africa to support increasing customer demand by adding capacity for key markets. Earlier this year, the company launched five weekly direct flights between China and India to strengthen the burgeoning trade lane between India and Asia. The company also launched a new connection between Europe and Asia in 2010 with a direct round-trip flight between Paris and Hong Kong – one of FedEx Express highest yielding trade lanes.
Boeing 777F Background
The 777F is the world’s largest twin-engine cargo aircraft. In typical FedEx operations, the 777 Freighter has a revenue payload capacity of 178,000 pounds (81 metric tons), and can fly 5,800 nautical miles—the equivalent of about 6,675 land miles or just over three times the approximate length of India. This represents a payload improvement of 14,000 pounds and range improvement of 2,100 nautical miles over the MD-11, which had been the primary long-haul aircraft in the company’s fleet. Over shorter ranges, the 777F has the capability of payloads up to 215,000 pounds.
The deployment of the new freighter is part of a series of service and capabilities up-grades by FedEx Express in India to strengthen the company’s commitment to offering unprecedented connectivity and world-class services in the country. The additional payload capacity from India will enable businesses of all sizes to capitalize on untapped global business opportunities.
“Indian businesses are now increasingly expanding beyond geographical boundaries and trading at a global level. This widespread growth has been a strong driving force behind increased cargo space and enhanced connectivity.” said Kenneth F Koval, vice president, Operations, FedEx Express India. “The deployment of a new Boeing 777F is aimed at meeting this demand. The aircraft will offer improved payload capacity, thus addressing the growing need for additional space as well as further underlining our commitment to offering unparalleled connectivity to our customers in India.”
The new Boeing 777F is the world’s largest twin-engine cargo aircraft, which delivers operational efficiencies as well as greater fuel efficiency and lower carbon emissions. FedEx Express is the first U.S.-based, global, all-cargo airline to add the Boeing 777F to its fleet and has already taken delivery of 12 Boeing 777Fs with 32 still on order; for a total of 44 Boeing 777Fs anticipated by the end of fiscal 2019. This is part of FedEx commitment to environmental sustainability and will help the company move closer to its goal of reducing fuel emissions by 20 percent by the year 2020.
This announcement is one in a series of flight enhancements introduced by FedEx Express in Europe, Middle East, Indian Subcontinent and Africa to support increasing customer demand by adding capacity for key markets. Earlier this year, the company launched five weekly direct flights between China and India to strengthen the burgeoning trade lane between India and Asia. The company also launched a new connection between Europe and Asia in 2010 with a direct round-trip flight between Paris and Hong Kong – one of FedEx Express highest yielding trade lanes.
Boeing 777F Background
The 777F is the world’s largest twin-engine cargo aircraft. In typical FedEx operations, the 777 Freighter has a revenue payload capacity of 178,000 pounds (81 metric tons), and can fly 5,800 nautical miles—the equivalent of about 6,675 land miles or just over three times the approximate length of India. This represents a payload improvement of 14,000 pounds and range improvement of 2,100 nautical miles over the MD-11, which had been the primary long-haul aircraft in the company’s fleet. Over shorter ranges, the 777F has the capability of payloads up to 215,000 pounds.
Wednesday 6 April 2011
Tuesday 5 April 2011
Wilhemsen Ships in India
Wilhelmsen Ships Service is investing in people and offices to position itself in parallel with the steady signs of economic growth that the company is witnessing in India. Nakul Malhotra, Area Director for Wilhelmsen Ships Service in the Sub Continent explained, “The company sees the Indian market as a dynamic and growing market for the foreseeable future. With our recent investments, we now have 15 offices manned by over 90 professionals.”
“Many Indian customers are increasingly taking on global trade patterns, so an ability to offer them standardized solutions that they are used to in more familiar locations gives them a sense of comfort in unfamiliar conditions. Furthermore, the Indian coastline extends for about 7500 km, which is a lot of coastline to service,” he said. A rapidly growing economy and an ever-increasing appetite for energy resources provide a strong demand from customers in the ship services sector.”
Nakul Malhotra believes that Indian infrastructure is a challenge that is being addressed by the government but still has tremendous room for improvement. “Whilst we see new port developments and expansions coming on stream on a regular basis, the inter-connecting infrastructure remains a challenge,” he said. “The government recognises this challenge and has targeted infrastructure development as a key focus area. There have been some major steps forward in streamlining operations from a port perspective particularly with the introduction of privately managed ports, so it is essential to have a professional product and service supply partner.”
Wilhelmsen Ships Service serves customers in India and globally through its customer service teams located in key locations including Mumbai. The company recently attended Coaltrans India, where it’s key offers, such as Ships Agency Re-Defined and Ships Spares Logistics attracted significant interest.
Courtesy: Marinelink.Com
“Many Indian customers are increasingly taking on global trade patterns, so an ability to offer them standardized solutions that they are used to in more familiar locations gives them a sense of comfort in unfamiliar conditions. Furthermore, the Indian coastline extends for about 7500 km, which is a lot of coastline to service,” he said. A rapidly growing economy and an ever-increasing appetite for energy resources provide a strong demand from customers in the ship services sector.”Nakul Malhotra believes that Indian infrastructure is a challenge that is being addressed by the government but still has tremendous room for improvement. “Whilst we see new port developments and expansions coming on stream on a regular basis, the inter-connecting infrastructure remains a challenge,” he said. “The government recognises this challenge and has targeted infrastructure development as a key focus area. There have been some major steps forward in streamlining operations from a port perspective particularly with the introduction of privately managed ports, so it is essential to have a professional product and service supply partner.”
Wilhelmsen Ships Service serves customers in India and globally through its customer service teams located in key locations including Mumbai. The company recently attended Coaltrans India, where it’s key offers, such as Ships Agency Re-Defined and Ships Spares Logistics attracted significant interest.
Courtesy: Marinelink.Com
Monday 4 April 2011
Warehouse accident @ Coca-Cola
Accident happened at the Warehouse of Coke plant, Belgrade.
Shopfloor workers are enjoying this catastrophe!
Forklift driving course!
A course designed for the unemployed and those on Centrelink benefits is helping to provide more than 10 local residents with new employment opportunities.
The Distribution and Warehouse course is run by the Central West Community College at Cowra, equipping students with skills they can take into the workplace, reports Cowra Guardian.
The College has previously run a similar course in office administration but it is the first time this course has been offered and College Vacancy Consultant Amanda Christie said the course is aimed at filling a gap in the workplace as required by employers.
A main component of the course is enabling students to get their Forklift license by undertaking practical studies at a warehouse site under the guidance of a trainer from Orange.
Classroom work overseen by a local trainer includes the necessary OH&S training as well as employability skills where the students are taught things like expectations in the workplace and how to go about finding work.
Students attend classes four days a week for six weeks, the bulk of which is spent fine tuning skills in the classroom.
As this course is nearing completion, the College will be taking the students out for employer visits on April 6 as a way of introducing them to prospective employers in the hope of gaining employment.
The course is funded by the Department of Education, Employment and Workplace Relations and the College, which is a not-for-profit organisation, hopes to continue offering the Distribution and Warehouse course to clients if the current course proves to be a success.
The Distribution and Warehouse course is run by the Central West Community College at Cowra, equipping students with skills they can take into the workplace, reports Cowra Guardian.
The College has previously run a similar course in office administration but it is the first time this course has been offered and College Vacancy Consultant Amanda Christie said the course is aimed at filling a gap in the workplace as required by employers.
A main component of the course is enabling students to get their Forklift license by undertaking practical studies at a warehouse site under the guidance of a trainer from Orange.
Classroom work overseen by a local trainer includes the necessary OH&S training as well as employability skills where the students are taught things like expectations in the workplace and how to go about finding work.
Students attend classes four days a week for six weeks, the bulk of which is spent fine tuning skills in the classroom.
As this course is nearing completion, the College will be taking the students out for employer visits on April 6 as a way of introducing them to prospective employers in the hope of gaining employment.
The course is funded by the Department of Education, Employment and Workplace Relations and the College, which is a not-for-profit organisation, hopes to continue offering the Distribution and Warehouse course to clients if the current course proves to be a success.
Voltas-Kion JV for warehouse equipment
Voltas, a Tata Group Company, has announced the setting up of a joint venture with Germany's KION Group GmbH to develop and make forklift trucks and warehousing equipment in India.
KION Group, a market leader in Europe in industrial trucks, will hold a majority share in the JV and the material division of Voltas will be transferred to the JV, which will be called Voltas Material Handling (VMH). The JV is expected to start operations in April, a filing in the BSE said.
Its product range will include diesel, LPG and electric trucks with load capacities of 1.5 tonnes to 16 tonnes and will focus on Indian market with 25 branches and nationwide dealerships.
Till now, KION has been supplying forklift trucks to India through its Linde Material Handling and STILL brands. Now, VMH will serve the volume market with its competitive product range, the filing said.
“Voltas is one of the most successful forklift manufacturers in India. It has strong sales, an effective service network,” Gordon Riske, CEO, KION Group said. The KION Group expects demand to grow in the sub-continent as more industries expand.
“KION has unrivalled know-how and technological leadership in the forklift truck business, so the partnership will help VMH to further consolidate its leading position in India. The Voltas brand will continue to expand its product range, particularly in the warehouse equipment sector.” Sanjay Johri, Managing Director, Voltas, said.
KPMG advised Voltas on this transaction.
Courtesy: MoneyControl.com
Warehouse accident @ RFP
Firefighters report a forklift driver was killed in an accident (March 13, 2011) at the Royal Food Products warehouse at 2322 E. Minnesota Street in Indianapolis, according to a newsreport in The Herald Bulletin of Indianapolis.
According to WISH TV 8 the deceased man was still inside the warehouse, trapped under debris and rubble.
Preliminary information from inside the warehouse suggests the man was driving the forklift on a portion of the floor that was not reinforced for forklift use when the vehicle fell through the floor.
Workers at Royal Food Products tell 24-Hour News 8 that there are defined pathways on which forklifts usually travel. For an unknown reason, the forklift was not on one of the paths when the floor collapsed, firefighters said.
Police have not yet released the victim's identity saying only he was in his 50’s.
Astrata's GPS for Pepsi tracking
The Astrata Group has been awarded a contract by the Biforst Group for the tracking and management of their fleet of curtain-sider trucks.
Biforst needed a scalable tracking capability to manage their fleet of new trucks. The vehicles carry refrigerated goods, mixed electronics & FMCG such as Pepsi Cola throughout Malaysia and Indonesia with likely expansion into other countries in Asia.
The Biforst fleet was recently recognized within Malaysia for having the longest curtain-sider trucks in-service, measuring 13.7 meters and capable of carrying 32 pallets, for a payload of 32 tons.A primary feature of the new device is its unique, small, flat and lightweight form factor, making it easy to conceal within a vehicle. It boasts real-time monitoring; secure communications and expandability to other sensors, modules and data devices. The solution can also include GPS, driver ID, 2-way voice, immobilizer (horns and blinkers), panic button, and cargo door sensor.
Biforst carried out a pilot trial with Astrata for three months before the contract was signed. On signing, Astrata has installed its hardware into over 60% of Biforst fleet of lorries and trucks, which includes Volvo, Scania and Fuso vehicles – some of the largest freight haulers operating in the region.Appala Nakkiah, Group Managing Director for Biforst Group said, “Biforst is an expanding organization working in a dynamic industry - we needed a partner who can react and adapt with us as well as follow us as we expand.”
Biforst chose Astrata’s GLS Management System along with their GLP100, a compact and technologically advanced GPS tracking device specifically developed to meet the rigorous demands of fleet management and transport security applications.
Appala continued, “We get tremendous value from the Astrata GPS tracking and fleet management system; we are able to monitor the on-time delivery performance of Pepsi’s consignments to their customers ensuring a first class service. The immediate effect of using the GLS System was our delivery performance and utilization of the vehicles increased, our drivers became more aware of the impact of their driving habits on the environment as fuel usage was tracked and compared across vehicles and drivers. These are very large trucks with a payload of 32 tons so we need to manage our costs effectively.
“It doesn’t end there, we use the Astrata Global Location Software to monitor and enforce health & safety regulations, as well as reduce our vehicle emissions improving the environment. Driving patterns are analyzed and where areas in need of improvement in the driver’s behavior are observed, then additional training is provided. Reducing the idling time, changing gear at the right rev’s, braking in good time and reducing speeds all contribute to reducing fuel costs, improving the environment and minimizing our carbon footprint.
Trans-Siberian Container Service
Weiss Röhlig has launched a new Trans-Siberian container service from the Russian Far East to Russia and Central Asia.
The service connects China, Korea, Japan, Taiwan and South East Asia with more than 2,000 railway stations in the emerging markets of Russia and CIS countries.
The rail head is located close to the ports of Vladivostok and Vostochny, providing an intermodal hub for intra-Asia carriers to connect into the Trans-Siberian rail network. The Trans-Siberian service connects through the Moscow hub and then cargo is moved on to Russia and Central Asia.
According to Franco Ravazzolo, manager of Project Logistics & Break Bulk, demand is increasing for direct services from China to Russia and Central Asia via rail, rather than shipping to Northern Europe and then connecting to the European rail network."Our customers are looking for more flexible options in terms of time to market and cost, and rail freight allows us to deliver direct to customers in inland areas of Russia and the CIS taking out the ocean leg," said Ravazzolo.
Transit times from Vladivostok and Vostochny to Moscow are between nine and ten days, with one or two days' clearance needed at port.
Weiss Röhlig also operates its Trans-China route connecting the east of China to Central Asia, including Kazakhstan, Uzbekistan, Turkmenistan and Tajikistan.
OLM +
Weiss Rohlig has Indian presence. Check out http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=52325278
Friday 1 April 2011
New logo for NYK Group
The NYK Group will begin using a new unified group logo as of April 1. The previous NYK unified group logo — the “Double Wing” — had been utilized since 2001 and symbolized the NYK brand as a comprehensive logistics enterprise. To complement a new medium-term management plan announced on March 31, the NYK Group has renewed the design of the unified group logo to emphasize the unity of the group as it begins a strategic business expansion.The concept of the new NYK Group logo is based on the “Double Wing” to emphasize the group’s finely-tuned responses to customers’ needs and the neighborly socially conscious services provided by the group. A single color scheme, called “NYK blue,” has been adopted to promote the NYK spirit needed for further strategic expansion by a group working in harmony together.
*The NYK Group logo is a registered trademark of Nippon Yusen Kabushiki Kaisha and may not be used for any purpose without the prior approval of the company.
Subscribe to:
Posts (Atom)