InternatIonal north South tranSport CorrIdor (InStC)commerce.nic.in/publications/INSTC_Dry_run_report_Final.pdfINTERNATIONAL NORTH SOUTH TRANSPORT CORRIDOR ... with optimal transit/cost

InternatIonal north South tranSport CorrIdor (InStC)

dry run report 2014

(Apex Body of Custom Brokers' Associations In India )

Federation oF Freight Forwarders' associations in india

(FFFai)

lR;eso t;rsgoVernMent oF india

MInIStry oF CoMMerCe & InduStry

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TABLE OF CONTENTS1. 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

3.2.2 At the port of origin viz. Nhava Sheva (Mumbai) 3.2.3 At the port of trans-shipment viz. Bandar Abbas (Iran) 3.2.4 During the movement by road from Bandar Abbas to Amirabad (Iran) 3.2.5 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 facilities2. CFSs3. Agents and Freight forwarders4. Lines and Operators5. THC6. Observation / Comments on cost reduction / Way ahead

4.2 IRAN: A Bandar Abbas:

1. Port – Terminals and facilities2. Railway3. Agency charges4. Payment issues5. Observation / Comments on cost reduction / Way ahead

B Amirabad:1. Terminals and facilities2. Lines and Operators3. ICDs and CFSs4. Agents5. Observation/ comments and way ahead

C. Bandar Anzali Port1. Terminals and facilities2. Lines and Operators3. ICDs and CFSs4. Agents5. Observation/ comments and way ahead

4.3 RUSSIA A Astrakhan:

1. Terminals and facilities2. Lines and operators3. ICDs and CFSs4. Olya Port5. 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. Meeting with the Port Authorities(DG of PMO)B. I.R. of Iran Road Maintenance & Transport Organization C. Meeting with Shipping AgentsD. Meeting with Inter RailE. Meeting with the Shipping AssociationF. Meeting with ITCA Office BearersG. Meeting with Railway AuthoritiesH. Meeting with Customs ManagerI. Meeting in Amirabad PortJ. Meeting at Astrakhan /RussiaK. Meeting at Moscow /Russia

6. CUSTOMER’s PERSPECTIVE A. Meeting with the Chamber of Commerce.B. Meetings with stake holders at the Indian Embassy in Tehran.C. Meeting with the Russian Embassy in Tehran.D. Meeting with the Kazakhstan Embassy in Tehran.E. Meeting with the Turkmenistan Embassy in Tehran.

7. THE WAY FORWARD FOR INSTC A. Filling in the gaps on documentation issuesB. Establishing single Operator / Agency network in all 3 Region C. Identifying and Linking the Resources for Movement D. Restructuring the cost structure E. Promoting the trade at Astrakhan and shifting their base thru Moscow from St Petersburg to

AstrakhanF. 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 Recordings17. Photos18. Maps19. Videos20. Various Tariff and statistics

ThanksAll Countries Participants for Co-operation

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY1INTERNATIONAL 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 hold-ers 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

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,

Mr. Shankar Shinde, Vice Chairman, FFFAI Mr. Sohel Kazani, Executive Committee Member, FFFAI

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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 inter-Governmental 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 INSTCIt 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 sectorAs 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 con-ducted 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 construc-tion could be undertaken on the basis of the same. This was agreed by the Iranian side.

EXECUTIVE SUMMARY1

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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 PointsThe 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 INSTCThe 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 docu-mentation 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 plat-form in next few months to seek comments of the member countries.

Working Group on CustomsA working group on customs matters will be established. Recommendations of the working group will be developed on cus-toms 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/representa-tives. 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 INSTCThe 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 INSTCThe 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 coun-tries. 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 CooperationTurkey 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.

EXECUTIVE SUMMARY1

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EXECUTIVE SUMMARY1It 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 Im-mediate 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. INSTC V/s the Current route B. Route study of INSTC and issues related to operations and solutions1. Infrastructure issue and service Issues2. Documentation issues3. Banking and Insurance issues4. Departmental issues with various GovernmentsC. 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 perishablesMain Operators – Maersk Line / MSC Line / CMA CGM Line/ CSAV Line /

INSTC Route

Route 1 – Mumbai - Bandar Abbas(Iran) – Baku (Azarbaijan) (Truck change) – RussiaTransit Time – 17 to 20 daysMain operator – None, due to fragmented documentation and operations

Route 2 - Mumbai – Bandar Abbas(Iran) – Amirabad/Anzali (IRAN) Caspian Sea)– AstrakhanTransit Time – 18 to 24 daysMain operator – None, due to fragmented documentation and operations

Route 3 – Mumbai - Bandar Abbas(Iran) – Russia via the new Rail Link upto KazakhistanTransit Time –15 to 18 days

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EXECUTIVE SUMMARY1Main 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 per-ishables 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

INDIAPort 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 Au-thorities. 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.

RUSSIAAstrakhan / 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

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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 Mul-timodal 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 issues3. 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 IRAN4. Remittance realization by Iran agents / exporters from India is delayed many a times due to balance of payments issue be-tween 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

INDIAa. 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

EXECUTIVE SUMMARY1

RUSSIA / CIS a. Steel billets

b. Coal

c. Fertilisers

d. Siberian Wooden logs

e. Pulp and Paper

f. Crude oil and petroleum products

IRAN

a. Petroleum products

b. Crude oil

c. Steel billets

d. Gypsum and Cement

e. Dates

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EXECUTIVE SUMMARY1

H.E. Mr. P.S. Raghvan Ambassador of India to Russia

H.E. Dr. B.M. Vinod Kumar Ambassador of India to the Republic of AzerbaijanH.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

MS. NIRMALA SITHARAMAN Union Minister of State for Commerce and Industry (Independent Charge)

MR. RAjEEV KHER Secretary General of India´s Ministry of Commerce

2 INTRODUCTION

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INTRODUCTION - TERMS Of REfERENCE fOR STUDY2

2.2. A. The Main Objectives of This Agreement1. 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

Customs) applicable to international transport of goods and passengers through their respective territories in accordance with the adopted international agreement and standard.

INSTC Member CountriesFounder Members

INDIA IRAN RUSSIA

Other Members

REPUBLIC OF AZERBAIJAN

REPUBLIC OF ARMENIA

REPUBLIC OF KAZAKHSTAN

REPUBLIC OF KYRGYZSTAN

REPUBLIC OF TAJIKISTAN

REPUBLIC OF TURKEY

REPUBLIC OF UKRAINE

REPUBLIC OF BELARUS

OMAN

SYRIA

BULGARIA (OBSERVER)

INTERNATIONAL NORTH SOUTH TRANSPORT CORRIDOR (INSTC)

2.1 The INSTCInternational North – South Transport Corridor (INSTC) is a multimodal transportation es-tablished in Sep. 12, 2000 in St. Petersburg by India, Russia and Iran. Latter INSTC was expanded to include 10 new members namely Armenia, Azerbaijan, Ka-zakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine, Belarus, Oman and Syria. Bulgaria was accord-ed observer status.

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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 RoadThe 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.

2. Toll charges

3. Traffic at Toll

4. Documents required

5. Escorting procedures.




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A.4 At International cross border at Astra (Azerbaijan) 1. Time required to clear consignment


3. Parking facilities, safety and security

4. Charges and fees

5. Time taken at this stage

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.


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 follows10. 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.


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

(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

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

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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.


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. 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.


B. 3 During the movement of cargo by road between Bandar Abbas (Iran) and Amirabad ( Iran)

15. Quality of road – gaps in roads.

16. Toll charges

17. Traffic at Toll


19. Escorting procedures.




18

B.4 During movement of cargo / container by sea from Amirabad to Astrakhan ( Russia)

1. Time required to clear consignment


3. Facilities, safety and security

4. Charges and fees


B.5 At port of destination viz. Astrakhan (Russia)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. Documents and procedures for release/ delivery of cargo to consignee.



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

3 Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC

20

Activity report on Physical movement of two Containers with cargo on 2 (Two) different routes on INSTC3

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 costNhava 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.

y 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.

y 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.

y 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.

y Distances : Nhava Sheva to Bandar Abbas : 1265 nm ( By sea)

y Bandar Abbas to Astara: 1900 kms 9 By Road)

y Astara to Baku : 250 kms ( by Road)

B. Charges & fees.

S.No 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 100

5 B/L Charges / Agency Fee 75

6 Freight Mumbai to Baku 2807

Total 3132

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. y Container movement to CFS, stuffing of cargo and movement to port – 1 days. y Dwell time of container in port awaiting loading – 4 day

Table No 3.1

21

D. Documentation at port of origin: MumbaiCustoms 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.

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


Indian Delegation Visit to Bandar Abbas Customs House Meeting of India Delegation with Customs Authorities at Bandar Abbas.

22


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 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 trans-ported 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.

Pejam Gulf Conainer Terminal at Bandar Abbas Shahid Rajaee Terminal at Bandar Abbas Port

Table No 3.2

23


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 - AZERBAIJANBoth sides of borders i.e. Iranian and Azerbaijan sides of bor-ders are called as Astara. And the customs clearance on Border of Astara in Iran and Astara in Azerbaijan are processed at respective customs station.

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 ob-served 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 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

Astara Border in Iran - Azerbaijan

Table No 3.3

24


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

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.

3.1.6 Map of road route from Bandar Abbas to Baku (and other CIS destination)

25


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

Port / Location Activity Date Day

JNPTShipping bill filed with Custom and passed for shipment 16-07-2014 1

Cargo carted at CFS 17-07-2014 2Container moved into CFS 18-07-2014 3

Cargo stuffed & Container moved from CFS to Port 18-07-2014 3

Container loaded onboard M.V. 22-07-2014 7JNPT to B.Abbas Vessel sailed JNP for Bandar Abbas 22-07-2014 7

Bandar Abbas Vessel arrived Bandar Abbas 04/08/2014 14Vessel berth at Bandar Abbas 07/08/2014 17Container discharged from vessel 07/08/2014 17Transhipment documentation completed 08-08-2014 18

Bandar Abbas to Astara Container moved out from gate of B. Abbas for Astara 10/08/2014 20

Astra Container reached Astara port from B.Abbas (1900kms) 13-08-2014 23Astra to Baku(ICD) Container cleared Astara (Iran ) Border for Baku 14-08-2014 24

Baku (ICD) Container reached Baku from Astra Port 15-08-2014 25Container Delivery taken 18-08-2014 28

Bandar Abbas to Baku

Container Transportation charges from Bandar Abbas to Baku via Astra border

Table No 3.4

26

3.2. Route 2 – Nhava Sheva/India Bandar Abbas/ IRAN - By Sea Amirabad /Iran-by Road Astrakhan/ Russia- by Sea3.2.1 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

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.


b. Charges & fees.

S.No Item Cost in USD/20ft

1 Cost of 20’ Container 1300

2 Cargo Transportation to CFS 25

3 Stuff & move to Port CY 100

4 Custom Clearance Fee 25

5 Port THC 100

6 Forwarder ( B/L + Agency) fee 50

7 Slot (Ocean freight) Charges- Mumbai to Bandar Abbas 500

8

Transportation from Bandar Abbas to Amirabad ( By rail / Road)

Transhipment thc

Agent fee

750

89

50

9 Transportation from Amirabad to Astrakhan

350

Total 3339

Table No 3.5

27

c. Time required for above operation till container shipped on board -13 days.

� 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. )

d. 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 re-port) in format, (Annexure – 4), Custom passed mani-fest, which is recognized in all CIS countries for goods transshipped via Bandar Abbas port (Iran). In addi-tion a transit insurance cover, which is usually 1% of value of cargo and Custom approved container de-livery 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,

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


1 Transit THC 129

2 Agency Charges 503 Custom Fee 20

4 Transport from Bandar Abbas to Amirabad 732

Total 931

28


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:Table No 3.7


1 Transit THC 89

2 Agency Charges 50

3 Custom Fee 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 As-trakhan

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.

Transit time during sea voyage – 9 days.

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

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.

The VTS terminal is the most active terminal for container operations.

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:


1 THC 400

2 Agency Charges 600

3 Storage charges / day 5

4 Custom Duty 700

Table No 3.8

Agency charges

VTS as Consignee charges USD 600 but waived for us. Custom Duty paid - USD 700 on free cargo (Container freight + VTS consignee charges (USD 2250 x 30%)

29

Port / Location Activity Date Day

JNPT

Shipping bill filed with Custom and passed for shipment 16/07/2014Purchase of 20' container 18/07/2014Cargo carted at CFS 18/07/2014Container moved into CFS 18/07/2014 1

Cargo stuffed & Container moved from CFS to Port 18/07/2014 1Container loaded onboard M.V. Arezoo v-ISC 0509 28/07/2014 10

Mum to B.Abbas Vessel sailed JNP for Bandar Abbas 29/07/2014 11Bandar Abbas Vessel arrived Bandar Abbas 10/08/2014 22

Vessel berth at Bandar Abbas 11/08/2014 23Container discharged from vessel 13/08/2014 25Transhipment documentation completed 16/08/2014 28

Bandar Abbas to Astara Container moved out from gate of B. Abbas for Amirabad 17/08/2014 29

Amirabad Container reached Amirabad port from B.Abbas 19/08/2014 31Container loaded on M.V.Begey 20/08/2014 32M.V. Begey sailed Amirabad 21/08/2014 33

Amirabad to Astrakhan Container reached Astrakhan from Amirabad 29/08/2014 41Astrakhan Container delivery taken 01-09-2014 43

ROUTE II – JNPT –B/ABBAS-AMIRABAD-ASTRAKHAN


Table No 3.9

Movement of Container by road to Amirabad port for transhipment to Olya Port - Russia

30

INSTC 2 X 20ft Containers FLAGGED OFF from Nhava Sheva

Bandar Abbas truck Terminal FFFAI delegates visit Truck terminus for meetings with drivers and trucks inspection

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


Customs inspection of cargo at Container Depot,Baku ,Azerbaijan Baku Container destuff

31

Shipment Documents

Baku Customs Declaration


32


CMR

33

Shipment Transhipment documents

Trucking GPS Tracking system in at RMTO tehran

Baku Customs copy

Truck Location - GPS Truck Location - GPS3


34

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

35

4 MICRO ANALYSIS Of RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION

36

Coun

try Nam

eApril‐20

12‐

April‐20

13‐M

arch‐

Value

s in Rs. Lacs

Value

s in

US$

Million

% Sha

reValue

s in Rs. Lacs

Value

s in

US$

Million

% Sha

re

1India Expo

rt To U Arab Em

ts19

,783

,205

.07

36,316

.65

12.1

18,463

,844

.78

30,497

.93

9.72

‐6.67

‐16.02

2India Expo

rt To U S A

19,674

,080

.47

36,155

.22

12.04

23,672

,696

.25

39,165

.45

12.46

20.32

8.33

3India Expo

rt To Singapore

7,39

9,49

6.63

13,619

.24

4.53

7,54

8,22

1.46

12,600

.94

3.97

2.01

‐7.48

4India Expo

rt To Ch

ina P Rp

7,35

2,95

6.23

13,534

.88

4.5

9,05

9,27

8.33

14,829

.31

4.77

23.21

9.56

5India Expo

rt To Hon

g Ko

ng6,68

9,81

7.16

12,279

.20

4.09

7,72

5,82

3.97

12,734

.47

4.07

15.49

3.71

6INSTC

India Expo

rt To Nethe

rland

5,73

7,25

5.76

10,565

.02

3.51

4,87

1,99

1.69

7,99

1.53

2.56

‐15.08

‐24.36

7India Expo

rt To Saud

i Arab

5,32

4,44

3.04

9,78

5.78

3.26

7,38

3,68

5.54

12,214

.58

3.89

38.68

24.82

8INSTC

India Expo

rt To U K

4,68

7,82

1.74

8,61

2.54

2.87

5,92

7,19

1.90

9,78

7.38

3.12

26.44

13.64

9INSTC

India Expo

rt To Germany

3,94

0,81

0.59

7,24

6.20

2.41

4,54

5,17

2.84

7,50

4.47

2.39

15.34

3.56

10India Expo

rt To Japan

3,32

1,41

5.89

6,10

0.06

2.03

4,12

6,36

3.05

6,81

6.06

2.17

24.24

11.74

11India Expo

rt To Brazil

3,28

7,20

2.20

6,04

8.53

2.01

3,38

3,43

2.97

5,54

6.60

1.78

2.93

‐8.3

12India Expo

rt To Be

lgium

2,99

2,64

0.23

5,50

7.30

1.83

3,85

5,29

4.01

6,35

6.31

2.03

28.83

15.42

13India Expo

rt To Unspe

cifie

d2,95

4,16

8.02

5,43

7.47

1.81

6,26

8,98

5.04

10,491

.13

3.3

112.21

92.94

14India Expo

rt To Indo

nesia

2,89

9,60

8.70

5,33

1.30

1.77

2,96

7,28

8.38

4,90

5.98

1.56

2.33

‐7.98

15India Expo

rt To Ba

nglade

sh Pr

2,79

8,25

7.77

5,14

4.99

1.71

3,72

2,56

7.06

6,13

6.97

1.96

33.03

19.28

16India Expo

rt To South Africa

2,78

0,33

8.15

5,10

6.93

1.7

3,07

8,69

5.09

5,07

6.94

1.62

10.73

‐0.59

17INSTC

India Expo

rt To France

2,71

0,58

5.55

4,98

6.03

1.66

3,10

1,91

4.66

5,11

9.27

1.63

14.44

2.67

18India Expo

rt To Malaysia

2,41

4,35

0.85

4,44

4.07

1.48

2,54

0,76

9.59

4,19

6.87

1.34

5.24

‐5.56

19INSTC

India Expo

rt To Italy

2,37

7,92

7.87

4,37

2.61

1.46

3,18

5,83

8.08

5,26

8.13

1.68

33.98

20.48

20India Expo

rt To Ko

rea Rp

2,28

7,02

4.72

4,20

2.25

1.4

2,54

4,46

6.04

4,20

4.30

1.34

11.26

0.05

21India Expo

rt To Sri Lanka Dsr

2,16

8,76

9.33

3,98

3.87

1.33

2,77

8,75

3.49

4,55

7.61

1.46

28.13

14.4

22India Expo

rt To Vietnam Soc Rep

2,15

6,28

4.25

3,96

7.37

1.32

3,32

4,26

5.67

5,44

0.21

1.75

54.17

37.12

23INSTC

India Expo

rt To Turkey

2,15

2,43

7.88

3,96

3.66

1.32

2,70

3,53

9.98

4,43

2.48

1.42

25.6

11.83

24India Expo

rt To Ke

nya

2,05

2,56

9.66

3,77

0.34

1.26

2,36

6,06

0.19

3,89

2.65

1.25

15.27

3.24

25India Expo

rt To Israel

2,03

4,66

8.32

3,73

9.71

1.25

2,27

5,76

6.50

3,74

7.03

1.2

11.85

0.2

26India Expo

rt To Thailand

2,03

1,02

4.16

3,73

3.17

1.24

2,24

5,92

4.06

3,70

7.65

1.18

10.58

‐0.68

27INSTC

India Expo

rt To Iran

1,82

5,48

0.70

3,35

1.07

1.12

2,97

5,41

6.25

4,92

1.44

1.57

62.99

46.86

28India Expo

rt To Nep

al1,68

0,55

5.92

3,08

8.84

1.03

2,17

5,10

0.57

3,58

9.17

1.15

29.43

16.2

29India Expo

rt To Taiwan

1,65

5,51

2.26

3,04

3.97

1.01

1,20

5,66

8.27

1,98

9.22

0.63

‐27.17

‐34.65

30India Expo

rt To Egypt A

Rp

1,57

1,39

4.15

2,89

7.33

0.96

1,55

7,23

3.90

2,56

4.10

0.82

‐0.9

‐11.5

31INSTC

India Expo

rt To Spain

1,55

9,23

2.50

2,86

5.75

0.95

1,74

8,64

2.46

2,88

3.78

0.92

12.15

0.63

32India Expo

rt To Nigeria

1,49

1,66

8.87

2,74

0.04

0.91

1,61

7,23

2.00

2,66

6.39

0.85

8.42

‐2.69

33India Expo

rt To Ba

hamas

1,44

9,97

6.69

2,66

9.86

0.89

133,54

3.40

233.39

0.07

‐90.79

‐91.26

%

Growth

in USD

INSTC

S.No.

%

Growth

in IN

R

MICRO ANALYSIS Of RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION4

4.0. STATISTICS / INFRASTRUCTURE

Table 4.1

INSTC Potential volume

37


Coun

try

Nam

eAp

ril-2

012-

April

-201

3-M

arch

-

Valu

es in

Rs.

Lac

sVa

lues

in

US$

Mill

ion

% S

hare

Valu

es in

Rs.

Lac

sVa

lues

in

US$

Mill

ion

% S

hare

%

Gro

wth

in

USD

INST

CS.

No.

%

Gro

wth

in

INR

34In

dia

Expo

rt T

o O

man

14,1

1,46

4.25

2,59

9.49

0.86

17,2

0,71

5.08

2,82

0.82

0.91

21.9

18.

5135

Indi

a Ex

port

To

Aust

ralia

12,7

9,38

0.49

2,34

8.65

0.78

13,9

4,76

1.01

2,29

8.54

0.73

9.02

-2.1

336

INST

CIn

dia

Expo

rt T

o Ru

ssia

12,4

9,28

5.78

2,29

5.68

0.76

12,9

9,13

2.33

2,14

7.43

0.68

3.99

-6.4

637

Indi

a Ex

port

To

Tanz

ania

Rep

11,7

3,29

2.05

2,15

2.25

0.72

20,9

1,14

0.55

3,40

1.47

1.1

78.2

358

.04

38In

dia

Expo

rt T

o Pa

kist

an Ir

11,2

3,26

2.97

2,06

4.79

0.69

13,9

4,24

4.42

2,29

4.36

0.73

24.1

211

.12

39In

dia

Expo

rt T

o Ca

nada

11,0

8,24

6.48

2,03

6.58

0.68

12,3

5,94

6.26

2,03

9.47

0.65

11.5

20.

1440

Indi

a Ex

port

To

Mex

ico

8,86

,219

.50

1,62

8.24

0.54

13,5

4,18

3.30

2,22

2.60

0.71

52.8

36.5

41In

dia

Expo

rt T

o Ye

men

Rep

ublc

8,02

,402

.33

1,47

7.27

0.49

7,88

,566

.59

1,30

6.88

0.42

-1.7

2-1

1.53

42In

dia

Expo

rt T

o M

aurit

ius

7,13

,661

.96

1,31

0.80

0.44

6,07

,735

.73

1,00

0.18

0.32

-14.

84-2

3.7

43IN

STC

Indi

a Ex

port

To

Iraq

6,97

,277

.74

1,27

8.13

0.43

5,51

,631

.21

916.

680.

29-2

0.89

-28.

2844

Indi

a Ex

port

To

Phili

ppin

es6,

46,5

49.0

81,

187.

190.

48,

60,3

62.1

81,

418.

010.

4533

.07

19.4

445

INST

CIn

dia

Expo

rt T

o Sw

itzer

land

6,07

,906

.98

1,11

7.28

0.37

10,8

6,11

2.75

1,81

7.71

0.57

78.6

662

.69

46In

dia

Expo

rt T

o Al

geria

5,93

,469

.61

1,08

8.73

0.36

6,44

,574

.46

1,06

8.78

0.34

8.61

-1.8

347

Indi

a Ex

port

To

Kuw

ait

5,77

,829

.97

1,06

1.08

0.35

6,45

,996

.24

1,06

5.14

0.34

11.8

0.38

48In

dia

Expo

rt T

o Jo

rdan

5,45

,264

.63

1,00

0.57

0.33

9,82

,594

.10

1,59

5.66

0.52

80.2

59.4

849

Indi

a Ex

port

To

Moz

ambi

que

5,44

,520

.20

1,00

1.18

0.33

7,67

,862

.84

1,25

7.17

0.4

41.0

225

.57

50In

dia

Expo

rt T

o Co

lom

bia

4,96

,577

.53

912.

120.

36,

11,4

69.0

21,

007.

410.

3223

.14

10.4

551

INST

CIn

dia

Expo

rt T

o Po

land

4,41

,237

.41

810.

850.

276,

02,6

67.3

099

3.28

0.32

36.5

922

.552

Indi

a Ex

port

To

Suda

n4,

11,5

56.3

275

5.12

0.25

5,20

,758

.27

862.

140.

2726

.53

14.1

753

Indi

a Ex

port

To

Ethi

opia

4,08

,162

.58

748.

820.

254,

95,7

63.6

081

8.2

0.26

21.4

69.

2754

Indi

a Ex

port

To

Ghan

a4,

04,9

67.1

574

4.12

0.25

5,04

,080

.58

830.

760.

2724

.47

11.6

455

INST

CIn

dia

Expo

rt T

o De

nmar

k3,

84,9

77.7

470

7.29

0.24

4,60

,968

.03

761.

70.

2419

.74

7.69

56In

dia

Expo

rt T

o Ch

ile3,

75,9

00.0

869

00.

234,

02,7

15.6

266

3.76

0.21

7.13

-3.8

57In

dia

Expo

rt T

o Q

atar

3,74

,633

.57

687.

180.

236,

03,5

42.1

198

8.97

0.32

61.1

43.9

258

INST

CIn

dia

Expo

rt T

o Sw

eden

3,73

,527

.33

686.

150.

234,

43,8

61.4

773

2.3

0.23

18.8

36.

7359

Indi

a Ex

port

To

Peru

3,47

,157

.52

637.

930.

213,

76,4

31.3

662

0.26

0.2

8.43

-2.7

760

Indi

a Ex

port

To

Baha

rain

Is3,

28,3

66.7

460

3.47

0.2

3,77

,983

.43

641.

970.

215

.11

6.38

61In

dia

Expo

rt T

o M

yanm

ar2,

96,0

70.6

654

4.66

0.18

4,79

,618

.92

785.

460.

2561

.99

44.2

162

Indi

a Ex

port

To

Arge

ntin

a2,

94,0

94.0

853

9.95

0.18

3,70

,755

.94

611.

360.

226

.07

13.2

363

INST

CIn

dia

Expo

rt T

o Po

rtug

al2,

87,3

87.3

352

8.46

0.18

3,80

,725

.71

626.

790.

232

.48

18.6

164

INST

CIn

dia

Expo

rt T

o U

krai

ne2,

83,1

40.7

251

9.79

0.17

2,92

,992

.54

481.

050.

153.

48-7

.45

65In

dia

Expo

rt T

o Se

nega

l2,

67,3

21.8

449

0.24

0.16

2,57

,981

.03

426.

450.

14-3

.49

-13.

0166

Indi

a Ex

port

To

Ango

la2,

65,9

62.3

748

8.79

0.16

3,26

,565

.64

535.

950.

1722

.79

9.65

Table 4.2

38


Coun

try

Nam

eAp

ril-2

012-

April

-201

3-M

arch

-

Valu

es in

Rs.

Lac

sVa

lues

in

US$

Mill

ion

% S

hare

Valu

es in

Rs.

Lac

sVa

lues

in

US$

Mill

ion

% S

hare

%

Gro

wth

in

USD

INST

CS.

No.

%

Gro

wth

in

INR

67In

dia

Expo

rt T

o Be

nin

2,60

,476

.27

479.

130.

164,

63,6

36.8

276

3.97

0.24

7859

.45

68IN

STC

Indi

a Ex

port

To

Afgh

anist

an T

is2,

56,9

13.5

147

2.63

0.16

2,87

,834

.82

474.

250.

1512

.04

0.34

69In

dia

Expo

rt T

o U

gand

a2,

53,2

16.9

246

50.

153,

23,9

71.5

953

4.28

0.17

27.9

414

.970

Indi

a Ex

port

To

Mor

occo

2,32

,115

.60

426.

560.

142,

32,9

29.1

338

5.52

0.12

0.35

-9.6

271

Indi

a Ex

port

To

Djib

outi

2,23

,755

.33

411.

860.

141,

80,4

62.9

830

0.46

0.1

-19.

35-2

7.05

72In

dia

Expo

rt T

o M

alta

2,16

,176

.30

398.

220.

131,

02,8

27.5

216

7.9

0.05

-52.

43-5

7.84

73In

dia

Expo

rt T

o Co

te D

' Ivo

ire2,

15,4

16.4

139

5.97

0.13

1,81

,363

.39

298.

830.

1-1

5.81

-24.

5374

INST

CIn

dia

Expo

rt T

o Ire

land

2,10

,291

.03

386.

690.

132,

50,7

49.7

941

3.85

0.13

19.2

47.

0275

INST

CIn

dia

Expo

rt T

o Au

stria

1,78

,811

.36

328.

580.

112,

06,9

15.2

634

2.37

0.11

15.7

24.

276

INST

CIn

dia

Expo

rt T

o Hu

ngar

y1,

76,1

80.7

032

3.74

0.11

2,08

,699

.10

344.

780.

1118

.46

6.5

77IN

STC

Indi

a Ex

port

To

Finl

and

1,72

,482

.58

317.

270.

112,

52,9

44.6

141

5.49

0.13

46.6

530

.96

78In

dia

Expo

rt T

o N

ew Z

eala

nd1,

64,6

82.0

230

2.06

0.1

1,71

,030

.15

281.

950.

093.

85-6

.66

79IN

STC

Indi

a Ex

port

To

Gree

ce1,

63,2

36.6

730

0.13

0.1

2,02

,496

.89

335.

070.

1124

.05

11.6

480

Indi

a Ex

port

To

Tuni

sia1,

62,9

92.2

829

8.79

0.1

1,65

,804

.37

273.

740.

091.

73-8

.38

81In

dia

Expo

rt T

o To

go1,

62,8

40.1

029

9.88

0.1

2,71

,961

.36

443.

630.

1467

.01

47.9

482

INST

CIn

dia

Expo

rt T

o Ka

zakh

stan

1,55

,913

.79

286.

230.

11,

55,9

54.7

825

8.17

0.08

0.03

-9.8

83IN

STC

Indi

a Ex

port

To

Rom

ania

1,54

,176

.26

283.

150.

091,

72,9

02.2

228

6.1

0.09

12.1

51.

0484

INST

CIn

dia

Expo

rt T

o Sl

oven

ia1,

49,4

74.9

127

3.79

0.09

1,27

,456

.43

211.

910.

07-1

4.73

-22.

685

Indi

a Ex

port

To

Ecua

dor

1,43

,393

.38

263.

550.

091,

76,0

59.6

929

0.38

0.09

22.7

810

.18

86IN

STC

Indi

a Ex

port

To

Syria

1,40

,587

.13

258.

770.

091,

41,3

33.4

323

4.79

0.07

0.53

-9.2

787

INST

CIn

dia

Expo

rt T

o Cz

ech

Repu

blic

1,36

,792

.18

251.

40.

082,

37,5

55.5

238

7.83

0.13

73.6

654

.27

88IN

STC

Indi

a Ex

port

To

Leba

non

1,36

,514

.90

250.

550.

081,

77,5

22.9

429

3.44

0.09

30.0

417

.12

89In

dia

Expo

rt T

o Ca

mer

oon

1,36

,482

.37

250.

980.

081,

57,0

10.5

625

9.62

0.08

15.0

43.

4490

Indi

a Ex

port

To

Zam

bia

1,32

,216

.02

243.

080.

082,

27,5

04.9

437

5.96

0.12

72.0

754

.67

91In

dia

Expo

rt T

o Ve

nezu

ela

1,27

,720

.81

234.

140.

081,

19,4

56.6

619

6.8

0.06

-6.4

7-1

5.95

92IN

STC

Indi

a Ex

port

To

Nor

way

1,27

,699

.86

234.

60.

081,

38,9

08.5

722

9.06

0.07

8.78

-2.3

693

Indi

a Ex

port

To

Bhut

an1,

26,7

39.1

723

3.22

0.08

2,03

,854

.65

335.

660.

1160

.85

43.9

294

Indi

a Ex

port

To

Pana

ma

Repu

blic

1,23

,265

.61

226.

490.

081,

28,5

27.5

121

1.4

0.07

4.27

-6.6

695

Indi

a Ex

port

To

Guat

emal

a1,

22,2

09.9

222

4.61

0.07

1,28

,931

.46

212.

360.

075.

5-5

.45

96In

dia

Expo

rt T

o Li

bya

1,17

,077

.46

215.

30.

071,

73,6

90.7

428

7.74

0.09

48.3

633

.65

97In

dia

Expo

rt T

o Gu

inea

1,12

,040

.37

206.

070.

071,

25,5

16.0

520

6.24

0.07

12.0

30.

0898

Indi

a Ex

port

To

Kore

a Dp

Rp

1,09

,939

.39

202.

780.

071,

14,3

31.8

518

6.81

0.06

4-7

.88

99In

dia

Expo

rt T

o Co

ngo

P Re

p1,

08,2

63.5

619

9.12

0.07

1,27

,676

.49

210.

510.

0717

.93

5.72

Coun

try

Nam

eAp

ril-2

012-

April

-201

3-M

arch

-

Valu

es in

Rs.

Lac

sVa

lues

in

US$

Mill

ion

% S

hare

Valu

es in

Rs.

Lac

sVa

lues

in

US$

Mill

ion

% S

hare

%

Gro

wth

in

USD

INST

CS.

No.

%

Gro

wth

in

INR

100

Indi

a Ex

port

To

Sier

ra L

eone

1,00

,327

.44

184.

230.

0660

,057

.71

100.

870.

03-4

0.14

-45.

25In

dia'

s Tot

al E

xpor

t16

07,5

4,47

7.93

2,95

,482

.67

1864

,12,

987.

073,

07,6

80.1

915

.96

4.13

Table 4.3

39


Valu

es in

Rs.

Lacs

Valu

es in

US$

M

illio

n%

Sha

reVa

lues

in R

s. La

csVa

lues

in U

S$

Mill

ion

% S

hare

1In

dia

Impo

rt fr

om C

hina

P R

p28

4,38

,458

.52

52,2

48.3

310

.65

309,

31,5

16.7

751

,049

.01

11.3

88.

77-2

.32

Indi

a Im

port

from

U A

rab

Emts

212,

92,3

32.7

939

,138

.36

7.98

174,

64,4

97.7

829

,114

.18

6.43

-17.

98-2

5.61

3In

dia

Impo

rt fr

om S

audi

Ara

b18

4,68

,480

.00

33,9

98.1

16.

9222

1,23

,097

.27

36,5

35.8

28.

1419

.79

7.46

4IN

STC

Indi

a Im

port

from

Sw

itzer

land

174,

51,1

84.9

932

,166

.54

6.54

113,

03,7

45.3

519

,430

.02

4.16

-35.

23-3

9.6

5In

dia

Impo

rt fr

om U

S A

137,

23,8

59.0

625

,204

.73

5.14

134,

49,8

03.4

222

,325

.36

4.95

-2-1

1.42

6IN

STC

Indi

a Im

port

from

Iraq

104,

59,6

36.1

619

,247

.31

3.92

111,

62,7

59.6

918

,519

.29

4.11

6.72

-3.7

87

Indi

a Im

port

from

Kuw

ait

90,1

8,42

5.30

16,5

88.1

33.

3810

3,36

,243

.60

17,1

53.5

23.

814

.61

3.41

8In

dia

Impo

rt fr

om Q

atar

85,4

5,77

8.37

15,6

93.0

83.

295

,14,

610.

5515

,733

.62

3.5

11.3

40.

269

Indi

a Im

port

from

Indo

nesia

80,9

6,56

9.76

14,8

79.4

93.

0390

,69,

831.

7715

,023

.67

3.34

12.0

20.

9710

INST

CIn

dia

Impo

rt fr

om G

erm

any

77,9

3,36

6.10

14,3

25.7

92.

9277

,21,

381.

3712

,771

.56

2.84

-0.9

2-1

0.85

11In

dia

Impo

rt fr

om V

enez

uela

76,8

3,45

3.41

14,1

17.6

72.

8884

,38,

442.

9413

,940

.13

3.11

9.83

-1.2

612

Indi

a Im

port

from

Kor

ea R

p71

,33,

725.

2513

,105

.12

2.67

75,2

8,75

9.82

12,4

71.4

82.

775.

54-4

.84

13In

dia

Impo

rt fr

om A

ustr

alia

71,2

1,71

0.96

13,0

85.7

02.

6760

,97,

739.

5610

,160

.94

2.24

-14.

38-2

2.35

14In

dia

Impo

rt fr

om Ja

pan

67,5

4,72

0.77

12,4

12.2

92.

5357

,29,

713.

469,

495.

422.

11-1

5.17

-23.

515

Indi

a Im

port

from

Nig

eria

65,6

2,22

1.03

12,0

86.1

12.

4686

,44,

426.

0314

,208

.82

3.18

31.7

317

.56

16IN

STC

Indi

a Im

port

from

Iran

63,0

2,56

0.76

11,5

94.4

62.

3662

,93,

558.

3210

,332

.08

2.32

-0.1

4-1

0.89

17IN

STC

Indi

a Im

port

from

Bel

gium

54,5

3,67

5.79

10,0

46.8

72.

0464

,67,

550.

3110

,752

.61

2.38

18.5

97.

0218

Indi

a Im

port

from

Mal

aysia

54,1

9,87

6.33

9,95

1.06

2.03

55,7

9,10

4.67

9,21

2.36

2.05

2.94

-7.4

219

Indi

a Im

port

from

Sou

th A

fric

a48

,31,

962.

818,

887.

891.

8135

,88,

510.

006,

079.

371.

32-2

5.73

-31.

620

Indi

a Im

port

from

Hon

g Ko

ng43

,03,

011.

837,

907.

171.

6144

,16,

976.

937,

333.

501.

632.

65-7

.26

21In

dia

Impo

rt fr

om S

inga

pore

40,7

6,39

5.09

7,48

6.38

1.53

41,1

3,12

4.36

6,77

4.17

1.51

0.9

-9.5

122

Indi

a Im

port

from

Ang

ola

38,9

4,64

2.34

7,15

7.54

1.46

37,1

6,26

0.38

6,08

6.33

1.37

-4.5

8-1

4.97

23IN

STC

Indi

a Im

port

from

U K

34,2

3,11

8.44

6,29

3.09

1.28

36,0

5,00

1.63

6,04

6.44

1.33

5.31

-3.9

224

Indi

a Im

port

from

Tha

iland

29,1

1,29

8.10

5,35

2.61

1.09

32,5

0,67

4.84

5,36

0.15

1.2

11.6

60.

1425

Indi

a Im

port

from

Bra

zil26

,43,

882.

724,

825.

760.

9923

,06,

652.

373,

807.

740.

85-1

2.76

-21.

126

INST

CIn

dia

Impo

rt fr

om It

aly

25,6

5,24

2.04

4,71

1.27

0.96

25,1

5,60

3.41

4,15

9.27

0.93

-1.9

4-1

1.72

27IN

STC

Indi

a Im

port

from

Fra

nce

25,3

5,10

2.98

4,65

2.36

0.95

21,5

2,47

4.51

3,56

4.34

0.79

-15.

09-2

3.39

28IN

STC

Indi

a Im

port

from

Rus

sia23

,02,

095.

044,

231.

560.

8623

,59,

946.

083,

899.

250.

872.

51-7

.85

29In

dia

Impo

rt fr

om M

exic

o21

,87,

342.

424,

037.

620.

8222

,35,

776.

523,

673.

280.

822.

21-9

.02

30In

dia

Impo

rt fr

om T

aiw

an21

,57,

624.

163,

963.

350.

8124

,39,

370.

804,

042.

870.

913

.06

2.01

31In

dia

Impo

rt fr

om C

hile

16,2

1,37

4.25

2,99

2.31

0.61

18,3

6,04

3.08

3,02

0.86

0.68

13.2

40.

9532

Indi

a Im

port

from

Can

ada

15,2

7,69

8.70

2,80

0.22

0.57

19,7

8,13

5.23

3,27

0.92

0.73

29.4

816

.81

33IN

STC

Indi

a Im

port

from

Ukr

aine

14,4

7,14

3.75

2,65

7.47

0.54

11,0

3,75

7.15

1,83

0.35

0.41

-23.

73-3

1.12

34In

dia

Impo

rt fr

om E

gypt

A R

p13

,85,

426.

152,

553.

470.

5214

,39,

114.

112,

388.

960.

533.

88-6

.44

% G

row

th

in U

SDIN

STC

.No.

Coun

try

Nam

eAp

ril-2

012-

Mar

ch-2

013

April

-201

3-M

arch

-201

4%

Gr

owth

in

INR

Table 4.4

40


Valu

es in

Rs.

Lacs

Valu

es in

US$

M

illio

n%

Sha

reVa

lues

in R

s. La

csVa

lues

in U

S$

Mill

ion

% S

hare

% G

row

th

in U

SDIN

STC

.No.

Coun

try

Nam

eAp

ril-2

012-

Mar

ch-2

013

April

-201

3-M

arch

-201

4%

Gr

owth

in

INR

35IN

STC

Indi

a Im

port

from

Net

herla

nd12

,94,

749.

572,

379.

090.

4918

,92,

879.

513,

140.

210.

746

.231

.99

36In

dia

Impo

rt fr

om Is

rael

12,8

1,44

1.93

2,35

6.66

0.48

13,8

8,84

6.20

2,31

1.71

0.51

8.38

-1.9

137

Indi

a Im

port

from

Col

ombi

a12

,81,

251.

602,

352.

790.

4829

,99,

627.

904,

970.

621.

113

4.12

111.

2638

Indi

a Im

port

from

Vie

tnam

Soc

Rep

12,5

9,44

2.24

2,31

4.78

0.47

15,5

6,86

2.55

2,59

4.29

0.57

23.6

212

.08

39IN

STC

Indi

a Im

port

from

Tur

key

11,0

6,09

0.55

2,03

4.18

0.41

4,59

,559

.53

760.

740.

17-5

8.45

-62.

640

Indi

a Im

port

from

Om

an10

,93,

145.

522,

009.

720.

4117

,84,

637.

252,

954.

490.

6663

.26

47.0

141

Indi

a Im

port

from

Uns

peci

fied

10,4

6,97

1.23

1,92

4.94

0.39

15,9

9,18

4.24

2,66

3.55

0.59

52.7

438

.37

42In

dia

Impo

rt fr

om Li

bya

9,98

,030

.08

1,83

4.80

0.37

2,64

,475

.55

451.

540.

1-7

3.5

-75.

3943

INST

CIn

dia

Impo

rt fr

om S

pain

9,89

,376

.79

1,81

5.66

0.37

11,1

7,28

6.96

1,84

3.54

0.41

12.9

31.

5444

INST

CIn

dia

Impo

rt fr

om S

wed

en9,

15,5

70.2

41,

681.

430.

3410

,15,

923.

721,

679.

560.

3710

.96

-0.1

145

Indi

a Im

port

from

Mya

nmar

7,70

,118

.21

1,41

2.69

0.29

8,38

,606

.13

1,39

4.82

0.31

8.89

-1.2

646

Indi

a Im

port

from

Mor

occo

7,12

,677

.65

1,30

9.03

0.27

5,47

,209

.03

894.

580.

2-2

3.22

-31.

6647

Indi

a Im

port

from

Arg

entin

a6,

50,4

35.3

81,

198.

710.

248,

50,1

52.9

81,

394.

540.

3130

.71

16.3

448

INST

CIn

dia

Impo

rt fr

om F

inla

nd6,

00,5

37.7

91,

106.

850.

236,

43,6

62.5

71,

056.

430.

247.

18-4

.56

49In

dia

Impo

rt fr

om Y

emen

Rep

ublc

5,15

,269

.50

958.

920.

194,

72,7

37.1

378

2.18

0.17

-8.2

5-1

8.43

50IN

STC

Indi

a Im

port

from

Nor

way

5,14

,019

.78

944.

980.

194,

55,1

81.0

574

7.02

0.17

-11.

45-2

0.95

51In

dia

Impo

rt fr

om Jo

rdan

5,11

,172

.81

942.

280.

193,

67,8

91.1

061

8.38

0.14

-28.

03-3

4.37

52IN

STC

Indi

a Im

port

from

Aus

tria

5,03

,394

.79

929.

220.

195,

01,8

97.4

782

8.92

0.18

-0.3

-10.

7953

Indi

a Im

port

from

Ecu

ador

4,70

,824

.03

872.

540.

181,

58,7

80.5

225

5.43

0.06

-66.

28-7

0.73

54IN

STC

Indi

a Im

port

from

Pol

and

4,69

,494

.51

863.

250.

183,

78,5

87.1

562

3.51

0.14

-19.

36-2

7.77

55In

dia

Impo

rt fr

om G

abon

4,47

,986

.89

817.

040.

175,

07,7

20.6

986

8.5

0.19

13.3

36.

356

Indi

a Im

port

from

Bru

nei

4,40

,597

.91

814.

80.

174,

57,4

96.7

076

3.6

0.17

3.84

-6.2

857

Indi

a Im

port

from

Tan

zani

a Re

p4,

09,6

04.8

175

2.88

0.15

4,30

,050

.09

724.

810.

164.

99-3

.73

58In

dia

Impo

rt fr

om N

ew Z

eala

nd3,

79,9

80.4

369

6.62

0.14

3,72

,827

.80

619.

480.

14-1

.88

-11.

0759

Indi

a Im

port

from

Alg

eria

3,71

,539

.82

683.

550.

145,

23,1

66.2

686

0.9

0.19

40.8

125

.95

60In

dia

Impo

rt fr

om B

ahar

ain

Is3,

59,6

71.2

466

4.66

0.13

3,45

,896

.54

564.

970.

13-3

.83

-15

61IN

STC

Indi

a Im

port

from

Cze

ch R

epub

lic3,

50,2

12.1

764

4.26

0.13

3,14

,528

.04

518.

850.

12-1

0.19

-19.

4762

Indi

a Im

port

from

Ban

glad

esh

Pr3,

46,7

92.7

363

9.33

0.13

2,77

,491

.62

462.

790.

1-1

9.98

-27.

6163

Indi

a Im

port

from

Sri

Lank

a Ds

r3,

40,4

19.7

362

5.81

0.13

4,12

,963

.78

677.

380.

1521

.31

8.24

64In

dia

Impo

rt fr

om P

eru

3,05

,080

.52

561.

320.

113,

65,7

79.5

060

4.95

0.13

19.9

7.77

65In

dia

Impo

rt fr

om N

epal

2,95

,806

.57

543.

10.

113,

19,0

02.3

252

6.81

0.12

7.84

-366

INST

CIn

dia

Impo

rt fr

om D

enm

ark

2,94

,972

.26

541.

710.

112,

69,3

02.2

544

5.36

0.1

-8.7

-17.

7967

INST

CIn

dia

Impo

rt fr

om P

akist

an Ir

2,94

,370

.34

541.

870.

112,

60,6

57.6

042

6.88

0.1

-11.

45-2

1.22

Table 4.5

41


Valu

es in

Rs.

Lacs

Valu

es in

US$

M

illio

n%

Sha

reVa

lues

in R

s. La

csVa

lues

in U

S$

Mill

ion

% S

hare

% G

row

th

in U

SDIN

STC

.No.

Coun

try

Nam

eAp

ril-2

012-

Mar

ch-2

013

April

-201

3-M

arch

-201

4%

Gr

owth

in

INR

69In

dia

Impo

rt fr

om E

qutl

Guin

ea2,

86,5

84.2

152

4.83

0.11

1,86

,861

.36

301.

820.

07-3

4.8

-42.

4970

INST

CIn

dia

Impo

rt fr

om A

zerb

aija

n2,

84,7

78.8

952

1.39

0.11

6,85

,702

.70

1,13

6.83

0.25

140.

7811

8.04

71In

dia

Impo

rt fr

om P

hilip

pine

s2,

74,3

58.4

250

40.

12,

37,3

24.8

439

1.78

0.09

-13.

5-2

2.27

72IN

STC

Indi

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rt fr

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dia

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dia

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a Im

port

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arus

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a Im

port

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8889

Indi

a Im

port

from

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tan

89,2

44.6

516

40.

0391

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152.

170.

033.

01-7

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90IN

STC

Indi

a Im

port

from

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hani

stan

Tis

86,0

97.2

115

9.55

0.03

1,28

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208.

770.

0549

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30.8

591

Indi

a Im

port

from

Cha

d84

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157.

160.

0317

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30.0

70.

01-7

9.74

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8792

Indi

a Im

port

from

Gui

nea

Biss

au76

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140.

20.

0367

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.96

109.

680.

02-1

1.7

-21.

7793

Indi

a Im

port

from

Lao

Pd R

p76

,479

.58

138.

640.

0353

,886

.76

91.2

0.02

-29.

54-3

4.22

94IN

STC

Indi

a Im

port

from

Kaz

akhs

tan

76,2

78.0

113

9.99

0.03

3,97

,849

.12

656.

330.

1542

1.58

368.

8495

Indi

a Im

port

from

Sud

an69

,302

.80

127.

140.

032,

69,5

68.5

643

6.18

0.1

288.

9724

3.07

96IN

STC

Indi

a Im

port

from

Slo

veni

a63

,906

.41

117.

50.

0271

,394

.52

118.

120.

0311

.72

0.53

97IN

STC

Indi

a Im

port

from

Gre

ece

60,9

57.9

111

1.87

0.02

65,8

85.1

010

9.44

0.02

8.08

-2.1

798

Indi

a Im

port

from

Pan

ama

Repu

blic

59,6

74.1

410

9.55

0.02

25,1

48.8

541

.65

0.01

-57.

86-6

1.98

99In

dia

Impo

rt fr

om K

enya

57,7

36.4

710

5.95

0.02

76,3

11.1

512

6.63

0.03

32.1

719

.52

100

Indi

a Im

port

from

Pap

ua N

Gna

57,0

59.1

610

4.64

0.02

1,08

,384

.14

178.

30.

0489

.95

70.3

9In

dia'

s Tot

al Im

port

2659

,69,

632.

754,

89,0

00.4

627

00,8

5,61

3.90

4,47

,894

.69

1.55

-8.4

1

Table 4.6

42


Country Name Values in US$ Million

U K 9,787 Netherland 7,992

Germany 7,504Italy 5,268

France 5,119Iran 4,921

Turkey 4,432Spain 2,884Russia 2,147

Switzerland 1,818Poland 993

Iraq 917Denmark 762Sweden 732Portugal 627Ukraine 481

Afghanistan Tis 474Finland 415Ireland 414

Czech Republic 388Hungary 345Austria 342Greece 335

Lebanon 293Romania 286

Kazakhstan 258Syria 235

Norway 229Slovenia 212

60,613

Values of India Export can be done via INSTC April-2013-March-2014 (US$ Million)

Country Name Values in US$ Million

Switzerland 19,430Iraq 18,519

Germany 12,772Belgium 10,753

Iran 10,332U K 6,046Italy 4,159

Russia 3,899France 3,564

Netherland 3,140Spain 1,844

Ukraine 1,830Sweden 1,680

Azerbaijan 1,137Finland 1,056Austria 829Turkey 761Norway 747

Kazakhstan 656Poland 624Ireland 603

Czech Republic 519Denmark 445

Pakistan Ir 427Romania 376Portugal 340Hungary 220

Afghanistan Tis 209Belarus 158Slovenia 118Estonia 115Greece 109

1,07,418

Values of India Import can be done via INSTC April-2013-March-2014 (US$ Million)

Table 4.7 Table 4.8

43

4.1. INDIAA. Nhava Sheva (Mumbai)- PORT OF ORIGIN

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

facility for loading container trains. The Quay length is 680 Mtrs with 8 gantries. It also has 2 the Liquid berth and the shallow berths are owned by them.

b. NSICT which is owned by DP World. It has a Quay length of 600Mtrs with 8 gantries.

c. GTI is jointly owned by Maersk and Container Corporation of India has quay length of 712 Mtrs and operates with 10 gantries. They have new & more advance gantries and quay side handling equipments, GTI therefore able operate faster reducing the occupancy of berth by vessels calling its terminal.

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.

1

2.

3.


Nhava Sheva Port terminal , JNPT/ GTI /NSICT

44

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

facility for loading container trains. The Quay length is 680 Mtrs with 8 gantries. It also has 2 the Liquid berth and the shallow berths are owned by them.

b. NSICT which is owned by DP World. It has a Quay length of 600Mtrs with 8 gantries.

c. GTI is jointly owned by Maersk and Container Corporation of India has quay length of 712 Mtrs and operates with 10 gantries. They have new & more advance gantries and quay side handling equipments, GTI therefore able operate faster reducing the occupancy of berth by vessels calling its terminal.

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 /OperatorsThe 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.

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.

5.

6.

45


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.

y 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.

y 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.

RailwayIRAN Railway Network Border crossings informationThe 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.

1.

2.

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 IRANA. Bandar Abbas – Shahid Rajaee container Terminal

Shahid Rajaee Terminal at Bandar Abbas Port

46


Comments on Cost / way ahead a. Transit THC

The Import THC is USD177/ TEU and Export USD133/TEU.

The Transit + Transshipment is considered in one category

The PMO states that they have given more than 50% dis-count to the above category of containers which is true since their tariff is USD 129. In India, the JNPT charges Ap-prox Rs.2400 per TEU container for a transit container by Road which is approx. USD40 per TEU.

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.

c. Agency charges:

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.

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.

IRAN – AMIRABAD PORT1. Terminals & facilities: The port of Amirabad has 9 jetties with a draft of 4.60 me-ters, 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.

2. Lines / operators: The main line operating in Amirabad is Khazar Shipping. They have 22 multipurpose ships, plying between Ami-rabad, Bandar Anzali, Turkmenbashi, Aktau and Astrakhan and have offices at all locations.

3. Custom System:

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 be-tween 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 Ka-zakhstan (approx. 10,400 kms).

5. Agents:

There are many service providers / NVOCC operators at Ami-rabad; however they do own containers and could provide one window solutions for all our requirements.

47


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

b. Shifting charges: This is very nominal here since all op-eration is carried out by SEZ contractor. It is approx. USD 40 per TEU can also be avoided if agent in Amirabad is good.

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

owners. The containers are loaded on deck of the break bulk vessels and hence the rate fluctuates based on de-mand and supply every month.

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 As-trakhan, 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.

IRAN Railway Network Border crossings Map/ Information

Map No 4.1.1Iran Rail Tracks details with tonnage capacity

48


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

1. IRAN Transit Corridor :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 .

Map No.4.1.2

Table 4.9

49

-18

8814

2816

8312

5319

1621

7917

8516

1011

7212

6584

965

113

3216

3551

517

012

9011

0416

3670

019

9115

9721

4742

080

215

6314

4828

0624

1218

5821

4311

2122

8622

6317

8817

2513

0519

4898

1100

1384

1156

348

2006

2014

1620

2170

267

905

1586

1471

153

2016

195

1658

1255

1918

1911

9113

3411

0643

921

6211

728

623

9119

9718

2296

021

218

4718

4859

013

3388

869

397

912

4282

662

813

0916

1223

-15

4022

6313

6115

6313

1118

24Ba

ndar

Nek

a13

3892

281

714

0517

0821

6-

1636

2359

1457

1659

1407

1920

-Ba

ndar

Nos

hahr

1045

1146

1572

1061

1723

984

753

1406

2423

1113

1253

1063

1935

961

1057

Bash

mag

h50

055

818

0016

2021

0012

1575

019

1027

2216

7219

3316

2223

1211

9212

8891

5Ba

zarg

an-

-18

1816

3921

1612

3345

019

3027

4016

8119

5316

4123

2812

1013

0612

6460

0Bi

lesa

var

1553

1123

1786

238

1335

1202

974

583

2456

290

430

240

1123

1181

1275

931

1490

1509

Chaz

abe

2040

1532

455

2071

1431

946

1450

1786

1513

2123

2325

2073

1643

923

1112

1727

1950

1970

1941

Dogh

aroo

n15

6011

20-

1597

1605

314

967

1828

2190

1650

1851

1599

1827

219

481

1249

1475

1500

1467

778

Inch

ebor

oon

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

Khos

ravi

2140

1495

-19

8316

8672

913

6222

1419

1720

3522

3719

8519

3470

689

516

3920

5018

8618

5352

2-

1718

1702

Loft

Aba

d14

1612

2817

3051

916

1611

4289

786

425

7857

171

152

114

0411

1912

15-

1331

1351

-18

8514

0111

8635

317

97M

ehra

n24

2920

1310

0218

7911

5113

0018

4315

2814

2218

1815

5118

8113

6312

7718

1620

3423

4723

6318

7156

412

1622

0021

0710

8021

79M

il 78

2673

2291

1096

2005

982

2159

2152

1643

957

1897

1666

2024

1194

2136

2214

2285

2592

2657

2037

567

1426

2447

2352

1174

2448

685

Mila

k24

9621

1412

4618

6882

717

9419

7514

8878

017

2015

1117

4010

3917

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MICRO ANALYSIS Of RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION4TH

E M

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NS

IRAN INTERNATIONAL ROUTE NETWORK/DISTANCE

1605

KM

Table 4.10

50

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

The tariff rate of 20 and 40 feet container from Bandar Abbas to Sarakhs , Inch boron and Amirabad port as follows:


y 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.y Considerable volume of goods can be given discount and establishing block train in the route is negotiable through bilateral discussion.

4.3 RUSSIA:A) ASTRAKHAN: 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 & facilitiesDue 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 to-day. 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 opera-tors. 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 move-ment of vessels.

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.

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 natu-rally maintain an average temperature of 12 to 15 degrees around the year and ideal for storing agro commodities, fruits / vegetable extracts in drums/cans.

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 Nation-al highway. It is also connected by rail and the corridor to MOSCOW has been given the green corridor status for prior-ity, 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.

5. Trade:The presence of international traders is minimal since most of them seem to have moved out to MOSCOW / St Peters-burg.

To conclude, if the route needs to be revived, the first re-

Table 4.11

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.

51

4.4 AZERBAIJAN A. Baku Port: Baku International Sea Trade Port was found-ed in 1902 and since it has always been the largest and the most important of Caspian Sea ports. It now plays an im-portant role in Trans - Caspian trade and is the main marine gateway to Azerbaijan.

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 Europe-an and Mediterranean ports.

With the dramatic increase in trans-Caspian oil trade vol-umes and enormous import into Azerbaijan of various equipment for offshore oil activities over last decade, has further strengthened the importance of the port.

1. Terminal and facilities: It has 3 terminals,

y The Main Cargo Terminal,

y Dubendy Oil Terminal and

y 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.

2. Berths are equipped with 16 portal cranes with lifting ca-pacity 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 han-dled simultaneously during a day. Total length of stub rail-ways is 8 kilometers. Maneuvering is carried out by diesel locomotives.

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 ware-houses is about 10 000 square meters.

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.

6. It is also rail / road connected with the western CIS coun-tries and Russia and enjoys the strategic position.

7. The port is also used by the OIL Rigs for movement of oil thru pipelines extending right up to Turkey.


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, with-out which no trade is willing to venture into this known,

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.

52


Geographical Characteristics of Shahid Rajaee Port

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

14 Cargo Warehouse 13 Maritime Equipment 8640

15 Cargo Warehouse 20 Empty 8640

16 Cargo Warehouse 21 Customs Judicial

Warehouse 8640

17 Cargo Warehouse 22 Spare Parts of

Tide Water 8640

18 Cargo Warehouse 23 Domestic Imports 8640

19 New CFS Warehouse Break Bulk 11854.404

20 Old Warehouse Break Bulk 8640

21 Persian Gulf CFM

Warehouse Break Bulk 4153.12

22 CFM Warehouse behind

the Security Office Break Bulk 8306.24

23 Waste Warehouse Break Bulk 4621.954

Total Area 193095 m2

The Latest Situation of Roofed Warehouses of Shahid Rajaee Port

Row Type of the Berth Cargo Type Area (m2) 1 Transit Warehouse 10 Export are house 8640

2 Transit Warehouse 11 Chemical Materials

(Packaged) 8640

3 Transit Warehouse 12 Chemical Materials (Packaged)

8640

4 Transit Warehouse 13 Break Bulk 8640

5 Transit Warehouse 14 Chemical Materials 8640

6 Transit Warehouse 19 Chemical Materials (Bulk Cargo)

8640


8640


8640



11 Cargo Warehouse 10 Break Bulk 8640

12 Cargo Warehouse 11 Packaged Cargo 8640


Table 4.12

Table 4.13

53





Warehouse 8640


Tide Water 8640




21 Persian Gulf CFM









(Packaged) 8640


8640




8640


8640


8640







Note : Receipt Throughput : Compressive Strength of 4 tons per square Meter




Warehouse 8640


Tide Water 8640




21 Persian Gulf CFM









(Packaged) 8640


8640




8640


8640


8640






Table 4.13

54

MICRO ANALYSIS Of RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION4 Berths of Persian Gulf Port

Number of the

Berths

Type of the Berth

Length (m)

Draft (m) Receipt

Throughput (Ton)

1 Dolphin (Mehvar

Talaee) 115 7.5 9000

2 Multipurpose

(Maree) 100 7 600

3 Multipurpose

(Maree) 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 Multipurpose

(Maree) 125 125 7500

9 Oil (FaraChimi Rooz) 100 100 6000

10 Bulk Ramp 125 125 2000 Berths of Foolad Hormozgan Complex

Row

Berth No.

Maximum Allowed

Length of Ships (m) Maximum Allowed

Ship Draft (m) Receipt

Throughput 1 Oil Steel 260 13.5 100000 2 Non-Oil Steel 260 13.5 100000

Table 4.14

Table 4.15

55

Port OlyaIn 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 “Soyuzmorni-iproekt.”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. Dur-ing the 2009 year through the port handled 773 thousand tons of foreign cargo. In import of Iran is domi-nated by fruits and nuts, as well as food processing vegetables and fruit. The structure of the Russian trans-port 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 capac-ity 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 immedi-ately 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 trans-shipment, 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 liq-uid cargo in the port of Makhachkala reaches 15 million tons. Establishment of an expanded port. Infrastruc-ture 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 Rus-sians 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


56

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

RailIn 2001, the port Olya was included in the Federal Target Program “Modernization of Russian transport sys-tem.” 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 rail-shpalnye bars on heavy vehicles were taken to build power stations Olga. Transported to the same puteuklad-chik 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 neces-sary 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 relat-ed 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

57

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.


58


Amirabad Port

1. Jetties

No. Jetty Qty. Length/m Depth/m Draft Capacity/tons Use

1 Jetty No. 1 1 100 6 4.60 6000 Grains

2 Jetty No. 2, Ro-Ro 1 188 6 4.60 6000 Multipurpose

3 Jetties Nos. 3-6, East 4 650 6 4.60 6000 Multipurpose

4 Jetty No. 7, South 1 220 6 4.60 6000 Multipurpose 5 Jetties Nos. 8-9, West 2 360 6 4.60 6000 Multipurpose

Ships up to 7000 tons may berth at this jetty depending on the type of ship design.

Warehouses

NO. Type Area (m²)

1 Warehouse No. 1 12,000

2 Warehouse No. 2, twin warehouse 10,000



5 Open warehouse, port area 1,000,000

6 Port area 9,000,000

Port Equipment

NO. Machine Qty.

1

Gantry Crane

2

2 Trans Trainer 1

3

Grains sucking

machine 2

4 Rich Stacrer 1

5 Hydrolic grap libher

Crane 4

6 Tadano Crane - 20-50

Tons 9

7 Komatso ForKlift - 3-

15 Tons 10

8

Klark ForKlift - 5-7 Tons

4

9 Tractor

15

10 Carrier - 9-12 M 17

11 Kato crane 64 tons 2

12 ForKlift TCM - 3-5 Tons 3

Marine Equipment

NO. Machine

1 1200H Tug boat

2 Pilot boat (Ghyam)

3 Search & rescue boat

Amirabad Port

1. Jetties

No. Jetty Qty. Length/m Depth/m Draft Capacity/tons Use

1 Jetty No. 1 1 100 6 4.60 6000 Grains

2 Jetty No. 2, Ro-Ro 1 188 6 4.60 6000 Multipurpose

3 Jetties Nos. 3-6, East 4 650 6 4.60 6000 Multipurpose

4 Jetty No. 7, South 1 220 6 4.60 6000 Multipurpose 5 Jetties Nos. 8-9, West 2 360 6 4.60 6000 Multipurpose

Ships up to 7000 tons may berth at this jetty depending on the type of ship design.

Warehouses

NO. Type Area (m²)


2 Warehouse No. 2, twin warehouse 10,000



5 Open warehouse, port area 1,000,000

6 Port area 9,000,000

Port Equipment

NO. Machine Qty.

1

Gantry Crane

2

2 Trans Trainer 1

3

Grains sucking

machine 2

4 Rich Stacrer 1

5 Hydrolic grap libher

Crane 4

6 Tadano Crane - 20-50

Tons 9

7 Komatso ForKlift - 3-

15 Tons 10

8

Klark ForKlift - 5-7 Tons

4

9 Tractor

15

10 Carrier - 9-12 M 17

11 Kato crane 64 tons 2

12 ForKlift TCM - 3-5 Tons 3

Marine Equipment

NO. Machine

1 1200H Tug boat

2 Pilot boat (Ghyam)

3 Search & rescue boat

Amirabad Port infrastructure Table 4.16

59


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

60

MICRO ANALYSIS Of RESOURCES AND POTENTIAL, AVAILABILITY & LIMITATION4No 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

EQUIPMENTS Table 4.17

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.

There is good opportunity advantages of investment in Anzali port Free Trade Zone Anzali Port equipments

Chand manzoureh cooperative company, Kaveh, Arya banader-e- Iranian and Oghianous-e- Aabi Co are in charge of preservation and maintenance operations of the strategic coastal equipments of the Ports and Marine Administration of Guilan Province along with the activities related to loading and unloading in the port.

All of the maintenance and preservation operations are done by the technical unit of this company; however, in certain cases where specialized experts are needed, the equipments would be repaired with the collaboration of manufacturer companies or their authorized representatives throughout the country.

Maritime equipments

The maritime services company of Tide Water Middle East (Guilan region) is in charge of controlling the navigation system and maintaining the maritime equipment of the Ports and Marine Administration of Guilan Province including the sediment collectors, tugboats, towboats, yachts and buoys.

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Handling Tariff Of 20 & 40 Foots Containers (set)

Exports, imports & Transit

Kind of goods

20 foots 40 foots

full Empty full Empty

Imports (each set)

181300 126900 226600 158600

Exports(each set)

82412 57688 103014 72110

transit(each set)

82412 57688 103014 72110

Total mensuration 71 hectares

Warehouses

covered warehouses (square metere)

uncovered warehouses

(hectare) hangar

(square metere)

22709 50 1215

In Riyal


Name of the equipments No.Dredger 2(unit)

Pilot 2(unit)Tug boat 4(unit)

Barge 1(unit)Boat 4(unit)

Number of vessels 13(unit)Number of buoys 5(unit)Berthing the ship Number one berth

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

PORT BANDAR ANZALI INFRASTRUTURE

berthes

Number of berth

pier type

Length (m) draft (m) Ship’s tonnage

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 7 general 156 5.5 5000 8 general 156 5.5 5000 9 general 156 5.5 5000 10 general 192 5.5 5000 11 general 90 5.5 5000

total 1657(m)

Shore-Based Equipments No. Kind of Machinery Number 1 Light crane(30 tons less) 18 2 Heavy crane (30-100 tons) 34 3 Supper heavy crane( up to100 tons) 1 4 Rail cranes 10 5 RichStacker(40 tons) 2 6 Light lift track(until 7 tones) 26 7 Heavy lift track (up to 7 tons) 40 8 Top lift track 2 9 Trans-tainer 1 10 Tractor 58 11 Pallet 63

Maritime facilities 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

berthes

Number of berth

pier type



total 1657(m)




7 Hooked dredger 1

Port developmentThe construction of eastern and western breakwaters with a length of 2750 meters and the installation of 40 hectares of new sur-roundings are two effective steps to develop and enhance the extent of Port’s security and capacity. With the breakwater being lengthened, Port’s capacity will reach to 17 million tones a year. Once the developmental plans are operationalized, the number of Port’s berthes will reach to 24 posts and the capacity to berth various ships will increase significantly.

berthes

Number of berth

pier type



total 1657(m)




7 Hooked dredger 1

Handling Tariff Of 20 & 40 Foots Containers (set)

Exports, imports & Transit

Kind of goods

20 foots 40 foots

full Empty full Empty

Imports (each set)

181300 126900 226600 158600

Exports(each set)

82412 57688 103014 72110

transit(each set)

82412 57688 103014 72110

Total mensuration 71 hectares

Warehouses

covered warehouses (square metere)

uncovered warehouses

(hectare) hangar

(square metere)

22709 50 1215

Table 4.18

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Bandar Abbas Port / IRAN

IRANIAN PORTS INFRASTRuCTuRE

Amirabad Port/IRAN

Bandar Anzali Port/ IRAN

Indian delegation Meeting with Bandar Anzali Port Authority

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

Mr. Sohel Kazani visits Amirabad Port for meeting with port officials

Mr Charaghi , Managing Director,Bandar Anzali Port Authority presenting Port details during meeting with Indian delegation

63


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

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

Tehran

Tehran Customs Tehran Customs

64

5 OPERATORS PERSPECTIVE

65

A) Perspective of Port and Maritime Organiza-tion (PMO) Authorities:

y 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 transship-ment purposes.

y Current developments at Bandar Abbas: • Port is developing the EDI software for its opera-

tion such as Berth planning & allotment, Container tracking etc.

• They are in process of appointing a Terminal Man-ager exclusively for Bandar Abbas port responsible for its proper functioning.

• Chabahar is the new port but does not have con-tainer handling gantry at the moment. It is ideal for Eastern CIS movement. 2 berths at Chabahar are operative with conventional cranes.

y Suggestion of India team at Bandar Abbas: • During Congestion, priority should be given for ves-

sels calling from Indian sub continent. A Road map for INSTC and Phase wise implementation of devel-opment plan is the need of hour for both India and Iran for increasing in the cargo through put.

• Also suggested THC reduction to PMO for IN-STC transshipment containers at Bandar Abbas and Chabahar port. Also the Rail handling cost at Bandar Abbas could be reduced by avoiding dou-ble handling from Road CY to Rail CY.

• Single Operator having offices at India, Iran and Russia was discussed and agreed upon. i.e. a sin-gle agent should be responsible for the movement

of cargo / containers on INSTC route from point of origin to place or port of delivery through the vari-ous transit points in between, so that they can co-ordinate and control various service providers in the logistic chain for achieving efficiency in service and costs.

y Suggestions arising after discussion with Port Author-ities:• 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 ship-ping rates,

• 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.

• 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.

• Railways also have to start / develop shuttle services to clear containers from port CY.

B) Perspective of I.R.of Iran Road Maintainance & Transport Organisation Authorities Iran:

y Current Status: • The main task of RMTO is to maintain Roads and

control border terminals. Iran Strength is Road net-work and not Rail.

• Road is economical than Rail due to double han-dling cost of containers moved by rail and incom-petitive rates offered by Pvt Railway wagon owners.

• Road network are more preferred and well devel-oped due to ease of movement and oil production has supported the development.

• Gauge difference between Iran and Russia & CIS discourages continuous Rail Link effecting optimum use by trade.

y Current Development :RMTO and India appreciated the necessity of Rail development:

OPERATORS PERSPECTIVE51. IRAN

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• Due to Pollution issues, Avoid future road conges-tion and Reduction on volatility of transportation charges.

• Reduction of Government loss on subsidy to Trans-port by Road which is 300 liters of fuel on daily basis at half the market rate.

• Increase in dedicated Rail freight corridors will re-sult faster movement of containers.

• Support required from Government for private Rail development to establish operational and financial feasibility.

y 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 op-erating in this sector had to shut operations.

• 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.

• Suggestion arising out of discussions with RMTO Authorities:

• Meetings/ seminars should be organized with Chambers of Commerce and after giving wide publicity.

• The return cargo from Russia / CIS is very important to ensure financial feasibility.

• Requirement of a Single agency at all 3 locations was underlined and accepted by India and neces-sity understood.

• Multimodal permission issues should be taken up with Customs Authorities & PMO.

y Indian Team Suggestion:• Development of new road routes from Bandar Ab-

bas and Chabahar to CIS destination to reduce con-gestion.

• Road freight fluctuations are in the range of 40 – 50%. Need to regulated / controlled to ensure sta-bility of cost.

• GPS on Trucks by RMTO for monitoring. Cost ap-prox. USD 300 per equipment.

• Multiple handling costs are an issue but would re-quire support by means of discount by RMTO and PMO.

OPERATORS PERSPECTIVE5

C) Perspective of Shipping Agents: y 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.

• The movement by Rail takes 6 days while move-ment by Road takes 3 days.

• Demand and supply some time creates shortages of wagons.

• Heavy loaded containers and or 50 Teus volume is cost effective and saves time if moved by Rail.

• Face problems with Custom authorities detaining wagon / trains for which demurrage of USD 4 per hour per wagon is charged to Customer.

y Business Perspective:• Shipper owned containers (SOC) are preferred for

CIS due to empty return charges. Generally the con-tainers are sold at 1/3 or 1 / 2 of the cost of contain-ers. This increases the cost of shipment.

• Destuffing and Stuffing at Borders into rail wagons or rail containers may be better option. The ware-houses are to be planned at various stations for this system.

• Land borders for movement out of IRAN on the East are:

• Sarakhs for movement to Almaty, Astana, Dushan-be, Khudgash, Tashkent, Charjou, Turkmenabad

• Bajgiran – Closed now for goods. At present is used by passengers for crossing of borders.

• Lutf Abad – Ashgabat distance is only 7 kms

• Incheboroon – Along Caspian Sea ports – Bal-kanabad, Aktau, Atyrau etc.

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D) Perspective of Inter Rail Authorities: y Operational Perspective : • Rail movement is only on Russian wagons like the

BCN wagons in INDIA.

• Container train / rakes are hired from outside IRAN for CIS.

• Facility is available for Transshipment at Sarakhs border for Rail movement.

• 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 be-tween Sarakhs Iran and Sarakhs Turkmenistan and handled by a private monopoly agent in Turkmeni-stan.

y Business Perspective:• All wagons in IRAN are privately owned.

• Loco belongs to Government.

• The Rail freight charges for transit cargo are lesser than domestic movement.

• Due to Sanctions, Inter Rail could not handle mone-tary transactions and had to shut operations. Lot of American and European companies too have shut down in last 2 years due to sanctions and limita-tions on working and payments to Principals.

• In Mashhad (near Sarakhs) there is a similar monop-olistic environment which increases the handling cost of containers.

E) Perspective of Shipping Association: y Business Perspective: • Sanctions on IRAN are expected to be lifted soon.

• If volume commitments are in place they can start new services.

• 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 Ab-bas containers via Dubai.

• 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 sec-tor.

• Rail movement viability is still absent and empty Return is one of the critical issues.

• Shipment in SOC is the only viable solution at the moment though very costly.

y New Development: • Once Sanctions are withdrawn, Bandar Abbas will

emerge as the most viable solution for cargo / con-tainers originating from India.

• Chabahar would take some time as development of handling facilities is delayed. India has signed an agreement recently to assist in creating these facili-ties.

y 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.

• 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 on-ward by Rail to destination.

• 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.

F) PERSPECTIVE OF INTERNATIONAL TRANSPORT & CUSTOM AGENTS ASSOCIATION (ITCA)

y Operational Perspective: • First mother vessel of PIL & Wan Hai joint CMS ser-

vice 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.


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• Generally Customs do not check 99% of Transit car-go. Port has installed scanners and some containers are subjected to scanning by Customs.

• 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.

y 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.

• Movement to the western CIS – Georgia / Azerbai-jan and Armenia is always by Road since there is no other viable option till date. Only NVOCC does busi-ness due to lack of return traffic and Transit Time

• 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 unpredict-able.

• Lot of MOUs has been signed with IRAN by these CIS states but none are being implemented in real terms yet by them.

y Suggestion of ITCA: • Increase in the export volumes from India would

help in reducing handling / Agency charges.

• Need an exclusive INSTC Team (focal point) to assist them in communication and other related work.

• Also requested to implement a single document format for smooth facilitation in INSTC route which is delayed and not implemented till date.

• 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.

• The Aktau has return cargo of Iron scrap / Metals and agro fertilisers and India may import same.

• 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.

• Suggested that we need to have a continuous ef-fort on the subject matter together and organize regular workshops for trade as well as agents on the subject.


G) PERSPECTIVE OF IRANIAN RAILWAY AUTHORITIES y Operational Perspective: • Services right now are as per SMG regulations and

Railways rules and tariff. The operational Rail net-works are in place as per Map.

• The Classification of commodities is as per HSN for Rail tariff determination.

• All wagons are now privately owned, the Govern-ment and Rail authority gives full support to opera-tors with reference to the service demands.

y Business Perspective:• From Sarakhs border, the cotton movement from

Uzbekistan was regular and the discount that was offered was 30% flat.

• The current rates are basis 300 containers move-ment per month. If volume is more than further dis-counts could be looked into.

• 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.

• Amirabad route via sea is being encouraged mostly for CIS movement.

• For Rail movement from Bandar Abbas to Ami-rabad, 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.

• No plans to cut the gradient as of now or in the near future between Tehran and Amirabad.

• There are total 11 stations in between Bandar Ab-bas and Amirabad where the trains halt.

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y New Development:• Now they would start the movement from Inche-

boroun to Kazakhstan without changeover of wag-ons and only LOCO would change while crossing borders. This is a 10,400 kms Rail route.

• The movement through Zulfa link was held up due to issue between Armenia and Azerbaijan which now stands more or less resolved.

• The link through Razi is operational for movement up to Turkey.

• Regarding, Anzali - Qazvin – Tehran link: Some is-sue of agricultural land acquisition was raised by the locals, which the authorities are trying to re-solve 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.

y Suggestion of India:• Trade is looking at Iranian Railway with lot expecta-

tions and would expect it to compete with Road for Transit Time and cost.

• 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 IRAN Customs should allow movement on Mul-timodal transport document till the time of comple-tion of missing links is necessary.

y Suggestions of Railway Authorities:• Railway authorities are very flexible in their ap-

proach and are always ready to offer any assistance within their responsibility.

• 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.

• With the INSTC, they were expecting some regular volume movements, which however have not ma-terialized till date.


H) PERSPECTIVE OF CUSTOMS AUTHORITIES y Business Perspective:• Bandar Abbas is the main port of Iran and also it the

main port for International transit cargo.

• Bandar Abbas is the bridge connectivity between South to North of Iran.

• 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.

• Movement from INDIA on INSTC route is minimal. The goods Imported from India are mainly Rice and Agro commodities, construction material, hardware etc.

• Customs do not charge for Transit cargo. They take in-surance 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.

• If movement is by Rail, Security is better and may cost less.

y New Development:• At present all procedures & documentation are still

in manual mode, however EDI system is expected to be implemented soon.

y Operational Perspective:• On an average, daily 1000 containers transit through

Bandar Abbas port for other countries. On some oc-casion this movement increases to 3500 containers.

• They have scanners installed in port premises which are sufficient for checking transit cargo.

Goods Prohibited are of 4 types:

a. Drugs and Alcohol.

b. Arms / explosives.

c. Pork Meat.

d. Raw Materials for the above.

• CMR / Transit document are issued based on cop-ies of documents submitted. Originals are not re-quired.

• In order avoid further checking by police again,

70

Customs have started to put their seals on contain-ers themselves and certifying that the cargo is al-ready checked by Customs.

• Turnaround time for customs clearance is 1 to 2 hours maximum.

• Then proceed with clearance from Port depart-ment, Shipping department and if necessary other relevant departments managing the allied activities

for specific cargo.

• The same process is followed for cargo arriving by Road from CIS and also outbound from Bandar Ab-bas. Some special certifications are needed for HMS scrap / war zone materials. SGS certificates are ac-cepted by Customs.

• If Customs suspect the transit material is infected, they may insist for PQ again.


I) PERSPECTIVE OF AMIRABAD PORT AUTHORITIES y 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 2 container berth has 1 gantry each.

• They have their own Power Station and SEZ with In-dependent Customs, PQ, PHO and various agencies for inspection.

y 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 Mum-bai to Chabahar compared to Bandar Abbas.

• 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-pian sea from Amirabad and back.

• The Port has its own power plant, bank, office prem-ises for agents and customs + rail terminal.

• 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.

A) Moscow• Meetings were held with various agents. It was giv-

en to understand here that most of the agents also work as indenting and marketing agents for the cli-ents in India.

• As a result most of the agents follow the 3PL con-cept where the handle they orders right from freight forwarding, clearance, warehousing to bill-ing and payment for their clients.

• The major commodities that are being traded are textiles and pharma. St. Petersburg terminal are more equipped and co-operative compared to Moscow Customs.

• 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

• This port as of now seems to be serving only the movement of hinterland cargo.

• The size of each terminal in Astrakhan port is about 200-300 meters max.

• 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.

• The charges and tariff are mostly made to order and needs a good amount negotiation skills to finalise the rates.

1. RUSSIA

71


PMO ( Port And Maritime Organization)

RMTO (I.R.Of Iran Road Maintenance & Transport Organization)

Shipping Association of Iran

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


Shipping Agents Association

Mr. Shankar Shinde meets RMTO officials at Astara border

72

OPERATORS PERSPECTIVE5International Transport Companies Association of Iran

(The Railways of the Islamic Republic of Iran) Iran Rail Authority

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 Members of International Transport Companies Association of Iran

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

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

73

6 CUSTOMER’s PERSPECTIVE

74

CUSTOMER’s PERSPECTIVE6A. 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

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.

B. 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.

• 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.

C. 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

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.

75

CUSTOMER’s PERSPECTIVE6RUSSIA a. Currently they have sanctions on import of fruits

and vegetables from Europe.

b. Right time for Indian traders to get in this route.

c. Also they prefer this route as non interference by any European presence.

d. Prefer from India than Iran due to Indian fruits demand in market and good quality packing, delivery and terms of contract.

e. Also requested for a single page letter so that Embassy can forward it to Astrakhan for co-

operation from Customs.

f. Also suggested to make Moscow as base

g. Study the population distribution in and around Moscow

h. Also see the customs regulation on website

i. Customs clearance can be done anywhere in Russia Rail station.

Rail network and cost is their strength.

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.

4. They majorly produce wheat and Metals like

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.

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 co-ordination

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

g. Also looking for solution of GAS movement from there on the corridor.

h. Estimated 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.

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CUSTOMER’s PERSPECTIVE6

Hormozgan Chambers of Commerce meeting

TRADE MEETS

Indian Embassy Seminar / Conference at Tehran

Kazakhistan Embassy Turkmenistan Embassy

H.E. Mr. Mohammad Amin Sabbaghi Zadeh, President Trade conference at Hormozagan Chamber of Commerce, Bandar Abbas

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

Trade conference at Hormozagan Chamber of Commerce, Bandar Abbas

Iran Trade conference held at Indian Embassy office TehranMr. Sohel Kazani , FFFAI addresses Trade conference held at Indian Embassy office Tehran

Mr. Shankar Shinde , FFFAI addresses Trade conference held at Indian Embassy office 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

77

CUSTOMER’s PERSPECTIVE6Trade Chamber of Commerce at Astara

Russian Rail Authorities

Ms. Seyedeh Fatemeh Moghimi, Tehran Chamber of Commerce Industries, Mines and Agriculture

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

TehranChamberofCommerce

Economic Cooperation organisation

Mr. Sohel Kazani, FFFAI alongwith Mr. Rohit Wadhwana DCM, Indian Embassy meets Secretary ECO at Tehran

Russian Customs Authorities Russian International Transport Association

Meeting with Association of International Road Carriers (ASMAP) in Moscow Dr. Amit Telang, First Secretary, Indian Embassy in Russia, Mr. Shankar Shinde, FFFAI

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

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7 THE WAY fORWARD fOR INSTC

79

TIR Carnet member 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

out by the IRAN Customs.

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 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 con-fidence in Indian logistics players to participate in handling Ligistics services in this sectorAlso India Insurance Company should have a ven-ture with Iranian Insurance Company’s for providing joint policy covering cargo shipped and transited through Bill of Lading and related CMR at competi-tive price and early claim settlement processes.

THE WAY fORWARD fOR INSTC7A. FILLING IN THE GAPS ON DOCUMENTATION ISSUES

B. ESTABLISHING SINGLE OPERATOR / AGENCY NETWORK IN ALL 3 REGION

C. IDENTIFYING AND LINKING THE RESOURCES FOR MOVEMENT

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

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

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.

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.

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THE WAY fORWARD fOR INSTC7

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.

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.

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

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.

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.

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.

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.

Bandar Abbas to Amirabad.

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.

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THE WAY fORWARD fOR INSTC7E. PROMOTING THE TRADE AND SHIFTING THEIR BASE THRU MOSCOW FROM ST. PETERSBURG TO ASTRAKHAN.

F. LINKING THE ECONOMIC COOPERATION ORGANIZATION

G. GROUPAGE / CONSOLIDATION SERVICES

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

which are also rail connected for distribution.

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.

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

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 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

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.

82

249, Udyog Bhavan, Rafi Marg, New Delhi,-110107Department 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

lR;eso t;rsgoVernMent oF india

MInIStry oF CoMMerCe & InduStry