Indian ship owners order newbuildings in Japan, Korea & China : Noboru Ueda

Source:http://www.sagarsandesh.com/news/indian-ship-owners-order-newbuildings-in-japan-korea-china/

In a rendezvous with Sagar Sandesh on the sidelines of the recently held INMEX India 2013 maritime exhibition and conference in Mumbai, ClassNK President and Chairman Noboru Ueda responded to an array of questions on ClassNK’s corporate growth achievements, current status of the global maritime sector and Indian maritime industry.

Excerpts

What is ClassNK assessment of Indian maritime trade and what is your forecast on the Indian fleet growth?        

The Indian economy at this stage appears to be in a “Drift” mode. That is to say that the global conditions in each kind of trade (that is crude, coal, steel, chemicals, etc.) are driving the Indian markets. There do not appear to be any future plans or measures being adopted or considered at the moment.

There also now seems to be a trend of Indian ship owners increasingly ordering newbuildings from shipyards in Japan, China and Korea with shipbuilding activity in India decreasing as a result. In regards to the Indian shipping industry, normal trade appears to be continuing steadily though at a lesser intensity than before.

This inactivity may benefit or harm the economy of the country which is difficult to comment on. However, with the abundance of excellent human resources available in India, and its high standing in the global maritime industry, we believe that the shipbuilding and shipping industries of India will continue to grow and develop in the future.

What is ClassNK’s market share in Asia and how much is the increase following the transition of the company to new General incorporated Foundation since April 1, 2011?

The ClassNK classed fleet was roughly 7, 400 ships or approximately 183 million gross tons on April 1, 2011. The ClassNK classed fleet now stands at roughly 8, 400 ships or approximately 219 million gross tons as of Sept. 30, 2013. This is an increase of roughly 1, 000 vessels or approximately 36 million gross tons over the period of two and a half years since April 1, 2011. According to the Clarksons World Fleet Register, this currently represents 38% of the Asian classed fleet (including the Indian Subcontinent) in terms of gross tonnage.

How effective is the ‘Global Approach 200’ mid-term plan you unveiled in June 2011 to expand your footprint?     

In the Global Approach 200 we set out a number of objectives on top of goals regarding increases in ship registrations. The plan has been very successful. By accomplishing these objectives through the collective efforts of everyone at ClassNK, we were able to gain the further trust of our customers, which we believe has led to the greater increase in terms of gross tonnage in our classed fleet we are seeing today.

You have served as Chairman and Vice Chairman of IACS between 2010 and 2012 – Could you share with us your achievements while at the helm of the high office?

During my time as Chairman of the International Association of Classification Societies from July 2010 until June 2011, and as Vice Chairman until June 2012, ClassNK helped make many valuable contributions to the maritime industry through IACS. During my Chairmanship, IACS made a number of significant contributions to the maritime industry viz.

1. Proactive technical contributions towards the Harmonised Common Structural Rules (H-CSR) and the IMO Goal Based Standards (GBS): ClassNK made many contributions to H-CSR, which will provide the basis for the proper construction of oil tankers and bulk carriers by harmonising each set of constructions rules into a unified set of rules for both types of ships. GBS is a broad, over-arching set of safety, environmental and/or security standards that ships are required to meet during their life cycle, including H-CSR. With a view to applying for the GBS verification request by the end of 2013, I, as Chairman of IACS, made working on the finalization of H-CSR in compliance with the GBS a top priority during my tenure.

 2. Tackling GHG Emissions: Another key issue that IACS tackled during my time as Chairman was the reduction of GHG emissions. Among the many efforts undertaken at the time were the contributions towards the adoption of the Energy Efficiency Design Index (EEDI). Under my leadership IACS made many technical contributions to EEDI at IMO MEPC62 in July 2011. In particular, IACS created an expert group for environmental issues and, responding to the industry, developed guidelines on minimum speed during ship operations, which is required in calculating EEDI. IACS also worked with the international ship owners’ associations and Asian shipbuilders, to help create the guidelines for the implementation of EEDI.

3. Working towards a more transparent IACS: In order to resolve any suspicions that IACS breached European Commission (EC) competition laws, IACS submitted a pledge, the “IACS Commitment” to the EC. The pledge stated the IACS was undertaking plans to make itself a more transparent international union based on a set of objective standards. It is important to have greater transparency in eligibility standards for new IACS members as well as adopt a new IACS Quality Management system to ensure greater independence and a higher level of quality. This saw the entry of the Croatian Register of Shipping on May 3, 2011, and the Polish Register of Shipping on June 3, 2011, and the complete implementation of the IACS Quality Management system on Jan. 1, 2011.

Though my leadership of IACS came to an end last year, ClassNK is fully committed to continuing to contribute to IACS and help reflect the views of the industry in any new developments.

From the time of taking up of office by you in 2008, ClassNK has witnessed an addition of 45 million Gross Tons to its register – Could you tell us how the phenomenal growth was possible?     

ClassNK has always been responding to the needs of its clients across the world it works. Through over 120 exclusive survey offices across the world we carry out swift yet thorough surveys and provide various IT services for the convenience of our customers.

As a result, we have been able to secure the trust of our customers, and vastly increase the number of newbuildings and existing vessels on our register.

Do you think the future belongs to green ships like wind, solar and hydrogen driven vessels phasing out greenhouse gas emitting fossil fuel based ships?    

From a technological and economic perspective, we believe that the use of fossil fuels in ship operations will continue.

However, there is a need for a long term goal to be in place where we can see the practical realization of non-fossil fuel propelled vessels. However, this goal cannot be achieved without serious technical innovation, which means there is a need to solve a number of technical matters.

In order to solve these technical matters, we are participating in a national GHG reduction technology plan, making both technical and financial contributions. We have been carrying out joint research with the industry in wind powered propulsion and solar energy among many other projects.

We are looking into the use of hydrogen as a means of reducing GHG, and are carrying out research and development in hydrogen powered plants and fuel cells as well as participating in joint research with the industry in infrastructure for transporting and storing hydrogen.

You have recently signed an MoU with Indonesian classification society – How do you view the partnership?         

NK entered into a comprehensive cooperation agreement with the Indonesian classification society Biro Klasifikasi Indonesia (BKI) on Sept. 26, 2013. Up until now, ClassNK and BKI have entered into agreements regarding the survey of ships and have been working together for over 40 years. This new agreement was created to establish an even closer level of cooperation between ClassNK and BKI for the development of the Indonesian maritime industry.

This agreement will allow for cooperation on joint technical research (ship, offshore, renewable energy, etc.), rule development, as well as the education and training of surveyors. The agreement will also allow for even greater technical and personal exchange between the two societies.

First Cruise Vessel of the season calls at NMPT

 Source: NMPT

M.V. SEABOURN ODYSSEY with 438 passengers and 344 crew called at New Mangalore Port on Nov 7, thus marking the beginning of the cruise season.

According to NMPT sources, this is the first cruise vessel of the season and the 7th vessel calling at the port during the current financial year 2013-14. It may be noted that the cruise season is from November to April in the region.

The vessel, which is on her third voyage to New Mangalore Port,  with passengers representing 23 nations including from US, Australia and UK.

Around 400 passengers and crew opted for ground tour arranged by the local tour operators and they have visited various locations in and around Mangalore like Gokarnanatha Temple,  Kadri temple, St. Aloysius Chappel, Cashew processing units, Monolithic statue of Lord Bahubali at Karkala, 1000 pillar Jain Basadi at Moodabidri besides city shopping.

After enjoying the scenic beauty of Mangalore, the passengers returned to the vessel and sailed out to Cochin in the evening. Dr. P. Tamilvanan, Chairman, New Mangalore Port Trust, welcomed the first cruise vessel of the season.

“The captain of the vessel was very much impressed upon the world class facilities available at the Cruise Lounge, neat and tidy berth area, concretised roads, security arrangements, emigration facility, greenery in and around the port and availability of local ground tour operators,” a statement from the port has said.

During the interaction the passengers have expressed their satisfaction over their short stay at Mangalore. The next two cruise vessels are expected to call on Nov 14 at the Port.

                      

Oral exams for mariners – are they anymore relevant?

Source:http://www.sagarsandesh.com/news/13408/

Column by KRA Narasiah

Of the many obnoxious colonial hangovers, oral examination of mariners is one that needs to be discarded. While this method is sine qua non for medical profession due to continuous changes in treating and diagnosing methods, it is not so in marine profession. Validities and reliabilities of such examinations need to be assessed for the Marine profession.

The case for discarding this mode is discussed here.

VALIDITY

There are three types of validities: content, criterion and construct. If we analyse in today’s context, it can be seen that for mariners the oral tests are no more valid. Because they are examined continuously by different tests during the various courses they undergo. The content is always updated in written tests. Regarding criterion, it is to do with the national level and a particular university or college level, while in mariners’ examinations they are all at a centralised level. Construct similarly is to do with the other variables – for instance the language differences in learning a science like medicine, where only oral examination can bring about the desired value levels.

For medical professional the oral examination is eminently suitable as experts feel. Even here the experts differ on the methodology.

RELIABILITY

How reliable is the oral examination? After having passed a written test if a participant has failed in oral examination in a marine subject does that mean the written examination was not properly conducted? It often is complained that the oral examiners in marine profession tend to harass the examinee or even go according to their own whims and pleasures.

I am not making a general accusation, but only reflecting the examinee’s reaction to certain examiners. There are several examiners, quite large in number who are fair and really test the knowledge after scrutinizing the written answer. However, even a single bad examiner can spoil the entire lot. Thus the question of reliability needs to be looked into.

HISTORY

Why a mariner was orally examined? In the early days it was necessary as often the mariners came from a background that could not boast of a high level of education. That was the scenario in Britain and the cadets after initial training had to be tested orally to assess their capability. As the steamship came into existence more theoretical knowledge was required and training establishments started functioning. But during the written test it was felt that while the candidate had visceral knowledge his cerebral knowledge was lacking.

Therefore he had to be tested by an oral examination to know the level of competency.

It was not so in India. From the beginning cadets had formal school education and the oral tests were needed only to test their communicating ability.

But the British thought that an Indian was not educated enough to take up the position of an officer in the merchant marine. In the beginning they were against even training Indians for this profession.

During Colonial regime as late as beginning of 20th Century it was Sir P. S. Sivaswami Iyer, who was the Advocate General of Madras from 1907 to 1911 and a member of both the Executive Council of the Governor of Madras and the Council of State, took up this issue of marine training.

On Jan. 12, 1922, in its first session of the reformed Legislative Council, Iyer moved a resolution to constitute a committee to see the possibilities of forming an Indian Merchant Marine. He wanted the Indian officers and experts to be properly trained in the marine field.

After a year, on Feb. 3, 1923 the Government formed a committee, headed by Capt. E. J. Headlam, Director of the Royal Indian Marine, with five members. Two representatives of India were Lalubhai Samaldas and Jadunath Roy. With many arguments and the English members opposing, the resolution was passed in favour of establishing a training ship in Bombay harbour, but the resolution was put in the backburner.

Since no action was taken, Iyer, on March 19, 1926, moved another resolution. This resolution had four distinct points and it was supported by the non-official members of the Assembly. It demanded to recognise the need for training Indians and create an Indian Mercantile Marine and train Indians in a suitable ship in Indian waters and engage them later. It also wanted to introduce in selected institutions Marine Engineering as a subject (to start with the Engineering College at Sidpur).

Though the training ship Dufferin was commissioned in December 1927, by 1936 less than 25 of the Dufferin cadets were employed by the British companies in India. The English shipping power was beginning to discourage the Indian boys opting to be trained in Dufferin. The version of creating training facility was altered – to suit the British interest.

After much persuasion, the cadets were getting employed but they had to be tested if they can work with English officers and therefore an oral test was necessary. It was more on the principle of communicating, behaviour on board and generally a test for developing Officer-Like-Quality, (OLQ) a much used (or abused) term of the British.

We have come a long way from those days. The cadets are trained in well researched methods and tested in similar means. The syllabi are drawn by experts and training materials in an international level. The institutions pride themselves in quality training by employing suitable specialists. I know some institutes that go an extra mile to see that no stone is left unturned in training efforts.

It is strongly felt that the oral examination is more an impediment in the mariner’s life and there should be concern raised about it as even now I have heard people say how the examiners approach this particular method.

With all the conviction under my command I oppose this method of testing. Once the cadet passes all the prescribed courses and secures pass marks in written tests, there should be no more tests.

I am sure many seniors will agree with me. 

Vasan to visit Japan

On the invitation of Mr. Akihiro Ohta, Minister of Land, Infrastructure Transport and Tourism, Government of Japan, a delegation led by Mr G.K. Vasan, Union Minister of Shipping will be visiting Japan from Nov 7 to 12.

The delegation consists of Mr Vishwapati Trivedi, Secretary, Shipping, Mr R. Srinivasa Naik, Director, Mr M.A. Bhaskarachar, CMD of Ennore Port Ltd. and other officials of Ministry of Shipping.

During his visit to Japan, Mr Vasan will have discussions with the Japanese Government for better coordination between two countries and to enhance the Japanese interests in utilizing the facilities of Indian Ports, more particularly Ennore and Chennai Ports.

The delegation would also be visiting the Port of Yokohama and Port of Nagoya to see the port operations and the latest technologies being utilized in these two Ports. 

During the visit, the Minister will also have discussions for obtaining JICA funding for Outer Harbour project of VOC Port, Thuthikoodi.

It may be noted that many Japanese automobile manufacturing companies including Toyota, Mitsubushi, Isuzu, Nissan and Toshiba are using Chennai Port for importing automobile components through containers for their factories located in Chennai.

Another Japanese Company M/s Metal One (Mitsubishi group) is importing steel coils used for automobile through Chennai Port in the break bulk form.  Around 240 Japanese companies have developed business in and around Chennai in the last decade.

These Japanese Companies have also evincing interest in using Ennore Port, located some 30 km from Chennai Port.

At present, Nissan Motors India and Toyota are the major Japanese Companies using the Ennore Port facilities for their export.  M/s Nissan Motors has exported about 3 lakhs cars from Ennore Port.  Toyota has so far exported 42,000 cars from the Port.

Government of Japan has shown interest in developing Chennai-Bengaluru Industrial Corridor as part of Peninsular Region Industrial Development (PRIDe).  Ennore Port has been identified as a main logistic hub in industrial corridor development.  JICA has already commenced the study.

Besides scheduled meetings with Japanese Government officials and business leaders during their visit, the delegation would also visit cities like Kyoto and Osaka.

According to official sources, the proposed visit will enhance the Indo-Japanese cooperation and give a fillip to better coordination and cooperation between the two countries in the shipping sector.  Expertise of Japanese in port operations, ship recycling and shipbuilding will be utilized by the Indian ports and shipyards, they added.

Save the sinking Indian shipping

Source: http://www.sagarsandesh.com/news/save-the-sinking-indian-shipping/

It was bureaucracy versus business at the India Shipping Summit 2013 held in Mumbai from Oct. 21 to 23 when both the entities traded barbs against each other on who is holding the Indian shipping sector back. A $2 trillion dollar economy that is fourth largest in the world with a long coastline of 7, 517 km dotted by 13 Major Ports and 176 minor ports ranks abysmally low at 16th position in merchant ship fleet.

A renewed vigour can only be infused into the sector if the bureaucracy amends itself to reality and put its  house in order to woo business, argues industry in opposition to the contention of babudom that berates the Indian shipping sector as whining school boy with his satchel who refuses to outgrow its mewling and puking state of infancy.

Besides the blame game, shipping companies, ports and terminal investors also took the opportunity to share their ideas and experiences to revive the growth of Indian maritime sector.

Cargo handling

Mr. Rajeev Sinha, Director, Adani Port & Special Economic Zone Ltd: While cargo handling in Major Ports is set to double approximately from 546 million tonne in 2013 to 1, 051 million tonne, the cargo handling during the same period for non-major port is estimated to grow two-and-a-half times from 388 MT to 982 MT. By 2020 there is going to be a change of scene between major and non-major ports with the latter overtaking the former in terms of cargo handling strongly driven by private sector and industrial growth.

Non-major private ports are scoring good on performance indicators like vessel Turn Around Time, pre-berthing delays, larger vessels and larger parcel sizes. Major Ports suffer from the manning scales that are old and union-based practices when compared to minor ports. Major Ports are operating in losses with poor return on assets. Foreign private companies have invested $2.4 billion to create 150 million tonne total capacity. Private investment in green field project is $4.7 billion and shift of cargo from Major Ports to minor ports happen by the sheer quality of service.

Public Private Participation (PPP) is not putting all the risk on the lap of the private investments. For their part, private players are doing their due diligence on the project and without gauging the return people bid for the project. PPP could be a success if the management in public ports is professionalized. Lateral entry talent should be allowed when private sector is wished to participate in the project with huge financial investment.

PPP projects 

Mr. Rajiv Aggarwal, CEO & MD, ESSAR Ports Ltd: The ban on iron ore has led to a loss of 100 mn tonne cargo and overall growth of cargo has been tepid at less than 3%. In the past 2 years it has grown from 884 MMT to 934 MMT. On the infrastructure development the projects are stuck due to statutory and market risks and most PPP projects are generating enough return on investment.

With the total port capacity of 1, 300 MMTPA the cargo utilisation is now at 934 MMTPA revealing a decline of utilisation from 80-85% to 70%. China in comparison has a port capacity of 3, 300 MTPA with the cargo utilisation of 2, 500 MMTPA and not to forget the size of Chinese economy that is 3.5 times bigger than India.

PPP, if formulated as a win-win proposition, could be a big money churner with a return possibility of 10 to 15% apart from overall development and other multiplier benefits. The Government shouldn’t restrict its responsibility by just providing water front and expecting the private partner in the PPP projects to take the entire risk. Taking cue from world models, the Government should introduce Dispute Resolution Mechanism (DRM) to review concession agreements. The concession agreements here are considered to be watertight with no revisit, but world over 55% of projects are referred to DRM. Encouraging port-based industries would open up cargo volumes.

Losing business

Dr. Jonathan Beard, Global Lead Port & Logistics, Vice President, ICF GHK: The competition between Major Ports and non-major ports should be driven by choice. The present hub feedering model between India and nearby Singapore and Sri Lanka is bound to have a significant impact on India’s import and export costs. There should be capex spend on building capacity for receiving mega vessels like draft, inland connectivity to gateway port. Major shipping lines demand more than 35 moves per crane having 230 to 250 moves per ship hour while berthing larger vessels.

LNG cargo

Mr. A. K. Balyan, MD & CEO, Petronet LNG: There is declining LNG demand in Europe due to increased pipeline flows of LNG from Atlanta base to Pacific basin, while there is increasing availability of volumes from US, Auz, Russia and Africa. New buyers are also from Singapore, Thailand and Mexico and we do see re-gasification in India and China. But there is global certainty and no clarity on Japan nuclear start up. Kochi offers unique opportunity in bunker coast in East-West trade route with regulation more and more on emission controlled areas. We need to focus pipeline infrastructure as currently we have 40, 000 km of pipeline network. LNG projects should be brought under the infrastructure ambit.

Role of coal

Capt. Sunil Thapar, Director, Carrier & Tanker Division, SCI: Once   staggered at the 11, 000 plus mark before the onslaught of recession, the Dry Bulk index is rising from the crash at 1, 800 points and industry watchers predict this rebound as ‘dead cat bounce’ revival. When world economy has grown less than 3% in 2010-11, dry bulk growth was up 7% (2012), but supply had outstripped demand by 5 to 6% pushing rates down and leaving the shippers only to meet opex and not capex.

For Dry Bulk the cheer is India’s massive need of coal to fire its power plants and Indian coal imports are expected to surpass the China’s during the XIIth Plan. Currently the coal import is projected to be around 137 million tonnes. There is going to be huge import consignments from US and Auz as Indonesia is facing some domestic issues.

Mr. Ravi Chopra, Director, Interocean Group: Power and steel consume major portion of the traded coal in the market with minor 3% consumption by the cement industry. Coal shipments are expected to jump from 140 million tonnes to 200 million tonnes in 2016 and reach 300 million tonnes by 2020. Shipments are going to increase from Handymax to capesize for economies of scale and from C & F to FoB for freight optimisation. Ship owners are likely to enter into long term charter to hedge against market uncertainties and for guaranteed supply of cargo at certain price point.

Mr. Jagmeet Makkar, Co-Head of Noble Chartering & Global Head of Shipping Assets, Noble Group: 

Slow steaming along with freight rate and charter rate coming down can create virtual shortage as vessels take extra time to complete the voyage. Of course it’s going to be savings in bunker if the charter remains low. The global commodity trade comprises iron ore, coking coal, fertilizer and food grains. In global iron ore trade Australia is set to increase its exports to 69 million tonne up 4% at 69 million tonnes, Brazil at 3 million tonnes, India down by 45%, China at 65%, Korea and Japan at 3% or 7 million tonne.

The overall Australian supply is quite large even the tonne mile. Only India and China cannot maintain the momentum and US could jump the bandwagon with energy price remaining low by kick-starting its infrastructure renewal process.

FDI policy

Capt. Anoop Sharma, CEO, Shipping Business, Essar Shipping: With US entertaining the thought on infrastructure renewal, there is going to be iron ore demand from China and India. Next, the bottlenecks in coal have to be eased out. The Government should extend the clearances and facilitate the Fuel Supply Agreement for the power plants. With power producers acquiring aggressively mines in Indonesia and US there is going to coal landings in all parcel sizes. With 100% FDI in the sector investors should take advantage of the policy.

Poor infra

Mr. Umesh Grover, CEO, INSA: Indian shipyards are disadvantaged by old methodology, no-block building making productivity extremely low, Capesize steel cost disadvantage, high finance cost, work culture and no township model of manufacturing with social infrastructure. India also doesn’t have the critical mass advantage over cost like China. Power plants, steel plants and heavy industries set up many years ago were based on integrated social infrastructure model where workers were provided with social amenities like hospitals, schools and colleges and recreation proximate to the plant site. Shipping yards should also be modelled on these lines for success.

Job generation

Mr. Ravi Mehrotra, CBE, Executive Chairman, Foresight Group: There is no other miracle other than stepping up manufacturing to generate jobs for the millions. We can follow the Chinese model for creating jobs. There is massive underemployment in Indian agricultural sector that contributes 25% of the country’s GDP having 57% of labour. China was similar to India in this scenario. But China grew its manufacturing sector to 29% of its GDP weaning away the unskilled and semi-skilled agricultural labourers to work in factories.

It just takes 4 months to train a welder that is how China became the low cost manufacturing hub of the world. Manufacturing sector share of India is woefully 8.3% of its GDP. India spends around 6% of its GDP on infrastructure in opposition to China that allocates 22% of the GDP.

Lost at sea

"One day, Europe will need young immigrants to reverse its demographic decline. The arguments will be reversed, the walls will tumble, and the seas will free up."

by Serge Halimi
Source: http://mondediplo.com/2013/11/01lampedusa

Those who decided to flee from oppressive regimes and go into exile 30 years ago were admired in the rich countries of the West and acclaimed in the press. The view was that refugees had “chosen freedom” — a museum in Berlin honours the memory of 136 people who died between 1961 and 1989 attempting to cross the Berlin Wall.
Hundreds of thousands of Syrians, Somalis and Eritreans who are now “choosing freedom” are not welcomed with the same enthusiasm. Last month in Lampedusa, the Italian island in the Mediterranean, a crane was needed to hoist the remains of almost 300 of them, drowned after a shipwreck, on to a warship. For these boat people, the sea was their Berlin Wall, this island their grave. They were granted Italian nationality posthumously.

Pic courtesy: Getty Images

Their deaths seem to have given some political figures pause for thought. On 15 October, former French interior minister Brice Hortefeux said the shipwreck called for an “immediate response: our countries’ social policies must be made less attractive” (RTL, 15 October 2013). He apparently assumed that extravagant generosity attracted refugees to Europe: “State medical care enables people who have entered the country illegally [to receive treatment free of charge] whereas French people may have to pay up to 50 euros ... The prospect of benefiting from an attractive social policy is a powerful incentive. We can no longer afford to provide that.” We do not know if Hortefeux believes that the 1.6 million Afghans who have sought refuge in Pakistan were lured there by its social services; or if 540,000 Syrians who sought asylum in Jordan escaped in order to enjoy the largesse of a kingdom where per capita income is seven times lower than in France.
Thirty years ago, the West used its prosperity and freedoms as an ideological weapon against the systems it opposed. Now some of its leaders are exploiting the distress of migrants to hasten the dismantling of social security. These manipulators of misfortune prefer to ignore the fact that the overwhelming majority of refugees worldwide are taken in by countries almost as poor as them.
When the EU is not insisting that these states, already close to collapse, “stop this unworthy business of unsafe boats” (Tweet by Cécilia Malmström, European Commissioner for Home Affairs, addressed to Libya and Tunisia, 11 October 2013.), it is urging them to become its buffer zone, to protect the EU from undesirables by tracking them down or holding them in camps. The most shameful part is that this cannot last. 

One day, Europe will need young immigrants to reverse its demographic decline. The arguments will be reversed, the walls will tumble, and the seas will free up.

New salary scale for port & dock workers

Source:http://www.sagarsandesh.com/news/new-salary-scale-for-port-dock-workers/

Bringing a happy end to the marathon wage negotiations between the Bipartite Wage Negotiation Committee (BWNC) comprising five major Federations of Port and Dock Workers’ Federation and the Indian Ports Association since July last year, both the parties on Oct. 25 signed the new wage settlement that would heave a sigh of relief for 50, 000-odd port and dock workers working in 12 Major Ports.
The deal was signed in New Delhi by the stakeholders (representatives of five federations affiliated to INTUC, HMS, CITU and AITUC) in the presence of Mr. B. K. Sanwariya, Chief Labour Commissioner (Central).
According to Shipping Ministry sources, the five-year wage settlement (from 1-1-2012 to 31-12-2016) would come into force with immediate effect.

The agreement will be implemented immediately and the arrears (from 1-1-2012 to till date) will be paid within two months from the date of settlement (Oct 25, 2013).
It may be noted here that the last meeting (10th meeting of the Bipartite Wage Negotiation Committee for all India port and dock workers, held in Madurai on July 2 and 3, failed as the Port Trust management offered only 9 % whereas the federations stuck to their demand of 20 %.
From the first meeting of the Bipartite Wage Negotiating Committee that was held at Vijay-Deep (Administrative Offices of the Mumbai Port Trust) on July 23 last year, there were several ups and downs in the negotiations and on a few occasions, there were even open warnings to the port managements to face the strike call.
However, the regular meetings between these stakeholders actually created conducive environment of late and it has finally helped them seal a decent accord with a win-win situation for both the parties on Oct. 25.

Explaining further about the deal to Sagar Sandesh, Mr.  R. Santhanam, General Secretary, Port & Dock Labour Union, one of the recognized trade unions in Chennai Port, said: “The period of agreement will be from 1-1-2012 to 31-12-2016. We hope that the port management would hand over the arrears to all the employees within the stipulated two months period.”

Since the new wage accord is going to benefit nearly 50, 000 port and dock workers, all the Major Ports are likely to shell out about Rs. 400 crores per annum.

Besides, another important issue of consolidation of pension for the existing 1.25 lakh port and dock pensioners has been referred to a sub-committee.

Basic pay will be fixed as follows

–Existing basic pay as on 31-12-2011 + 57.14 % (variable dearness allowance) VDA x 10.5 fitment (Basic Pay as on 31-12-2011 x 1.7364 will be same).

–Increment 3 %. HRA 15%, 20%, 30% as earlier slab. Port allowance 10 % more than the existing.
–Transport reimbursement Rs. 525 + DA .
–Children’s education allowance Rs.15, 000 per child not exceeding two children.
–Washing allowance Rs.155 and Rs. 200 as per the slab.
– Special washing allowance to fire and hospital section will be locally settled.
–Design allowance as Rs. 500
– In the case of option and MACP fixation benefit will be Rs. 230, Rs. 345 and Rs. 460 to the beneficiaries according to the new scale 1 to 4, 5 to 7 and 8 to 10 respectively. Family planning allowance 3%.
– Child care leave for ladies will be two year.

Scale of Pay as follows :

Existing                                Revised

7,800  –  15,800                 13,500  -  27400

8,100  -  18,200                 14,100  -  31,600

8,300  -  18,600                 14,400  -  32,300

8,600  -  19,900                 14,900  –  34,600

9,000  -  21,200                 15,600  –  36,800

9,400  -  22,000                 16,300  –  38,200

10,200  -  25,700                 17,700  -  44,600

11,000  -  29,400                 19,100  –  51,100

12,100  -  30,800                 21,100  -  53,500

13,600  -  32,400                 23,600  -  56,300

Arrears will be given on or before 31-12-2013.