SINGAPORE's PSA International refused to sign the final concession agreement with the Jawaharlal Nehru Port Authority (Nhava Sheva) near Mumbai in the specified time period, thus inducing the government to cancel the deal to build a fourth container terminal.

PSA and its local partner, ABG Ports, won the US$1.5 billion bid a year ago after offering a 50.8 per cent share of revenue as annual royalty to the landlord port as a step towards privatisation.



The government had hoped to sign a contract in January with the first phase being operational in three years offering a 2.4 million TEU annual capacity. 



Said a port official: "The board has decided to terminate the letter of intent issued to the PSA-led consortium and also forfeit the bidder's bond amount [US$12.5 million]. The port will call for new bids for the project." 



The unwillingness to sign was said to be rooted in fears over financial viability given its high cost and the slowdown in world container shipping. The authority planned to develop the project in two phases on a 30-year build-operate-transfer basis, with a 4.8 million TEU annual capacity at full build-out. 



The Nehru port has three terminals: DP World's Nhava Sheva International Container Terminal; Gateway Terminals operated by APM Terminals; and port-run Jawaharlal Nehru Container Terminal, which cumulatively handled a record 4.32 million TEU in fiscal year ending March 31. 

RUSSIA's London-listed Global Ports Group, with its official address in Cyprus, has posted a 12 per cent decline in net profit to US$72.5 million in the first half accompanied by a revenue shrinkage of 1.5 per cent to $255.7 million.

The disappointing performance was blamed on lighter volumes through its Estonian oil terminal and Finnish ports despite greater container throughput at its Russian facilities, which increased volume six per cent to 709,000 TEU, making it Russia's biggest box handler with a 30 per cent market share.



"The long-term prospects for the container market in Russia post WTO access are considered extremely promising, and I believe that Global Ports, with its combination of well-invested assets in the right locations, has all the necessary components to be able to maximise the opportunities for growth that the market offers," said Global Ports chairman Nikita Mishin.



At container terminals in St Petersburg and Vostochny, the company, in which APM Terminals has a 37.5 per cent stake, enjoyed revenues of $171.9 million, or 66 per cent of total sales. The oil products unit contributed $77.3 million, for a 30 per cent share and the Finnish ports of Helsinki and Kotka contributed $10.5 million. 



"We continue to expand our business and will commission more than 20 per cent of additional container capacity in the first half of 2013," said Mr Mishin.

FINNISH-headquartered Cargotec is to list its marine business on an Asian stock exchange in the second half of 2013 and maintain a majority stake in the listed subsidiary. 

In doing so it hopes to strengthen its three business units in a governance model of marine, terminals and load handling. The change in governance model will enable faster decision-making, improve efficiency and ensure better focus in improving profitability within terminals and load handling.



As part of the change Cargotec plans to operationally integrate its Services business area and Region EMEA (Europe, Middle East and Africa) into marine, terminals and load handling business areas. The role of Cargotec's corporate functions is also planned to be restructured to enable more independent businesses.



As a result of the changes, Cargotec plans to adjust its operations accordingly and has started to plan restructuring measures.



Cargotec's external financial reporting remains unchanged with the three units marine, terminals and load handling comprising the reporting segments.

BRITAIN's Road Haulage Association (RHA) has welcomed a government decision to charge foreign truckers using British roads because UK trucking feels the measure will help level the playing field on which they have had to pay while their rivals did not. 

"This is a happy day for road hauliers," said RHA chief executive Geoff Dunning. "We have been campaigning for years to see a system introduced which will lessen the financial advantage currently enjoyed by our European neighbours."



Foreign truck drivers will have to pay GBP10 (US$16.23) a day to use British roads by 2015, under the new legislation. British truckers already pay up to GBP13 a day on the continent, but their European counterparts pay nothing in the UK.



Said UK Transport Secretary Patrick McLoughlin: "It is simply not right that foreign lorries do not pay to use our roads, when our trucks invariably have to fork out when travelling to the continent."



The charge is expected to cost most drivers GBP1,000 a year. Mr Dunning added: "This is not enough to give us a level playing field as regards the rest of Europe. But it is a good start and will help no end in beginning to prepare the ground."

INDIA's air cargo sector is on the cusp of capturing growth, but lacks a fully-fledged air cargo hub to support regional connectivity and an intermodal road network.

"India is an exciting market for us. We expect India's contribution to our global [cargo] revenues to increase from 3.5 per cent to five per cent this fiscal and 10 per cent in the next three to four years," said Cathay Pacific director of cargo Nick Rhodes. 



India's tonne-per-billion GDP is at only 516, handling just 2.5 million tonnes. This compares to top air cargo hubs such as Hong Kong at 12,883 for 4.2 million tonnes handled, and UAE airports at 16,951 for 3.10 million tonnes handled.



India is expected to grow domestic 12 per cent to 5.9 million tonnes and international cargo by 10 per cent to 3.5 million tonnes by 2020, reports The Hindu's Business Line. 



India's weight load factor has stayed at just 62 per cent in the last five years indicating much unused capacity. Transhipment cargo volumes are negligible next to leading cargo hubs at highs of 60 to 70 per cent. 



Hyderabad airport and Rajiv Gandhi International are poised to be the cargo hubs that India needs to benefit from its location less than two hours away from more than 20 key Indian and other south Asian cities of Singapore, Kuala Lumpur and Bangkok, and only four hours from the Middle East. Its current handling of cargo stands at 100,000 tonnes annually with potential to scale up capacity of 150,000 tonnes.



The airport operates up to 2,000 flights weekly of which allows for bellyhold space of two to three tonnes in 737s and 20-25 tonnes in 747s.



Lufthansa Cargo hubs its pharmaceutical products at Hyderabad and Thai Airways and Blue Dart joined Cathay Pacific in offering freighter services, with the latter just launching a twice-weekly freighter service. 



The airport is expanding its apron to allow for accommodation of A380s and to scale up its terminal capacity to save money for airlines and the trade, said a senior officer at the airport. 



It hopes that by positioning itself as a transhipment hub it can save the customer money in getting a cargo load from one regional city to another and instead to land at Hyderabad and have cargo transshipped to the many cities in its catchment area. 



Regional frequencies have increased by over a 100 within a five-month period with carriers benefiting from its 33,000-tonne capacity dedicated temperature-controlled pharma zone, a 20-acre Free Trade Zone with warehousing and distribution and the integrated terminal operated by GMR and Menzies Aviation of UK. 



The airport needs to be supported by 24/7 customs clearance like Hong Kong, Dubai and Shanghai rather than Delhi and Mumbai with their one-shift system. 



"The infrastructure, connectivity and ancillary facilities are ready. Once we get a [domestic] carrier, the airport will soon serve as India's much-needed air cargo hub," said the senior officer.

INDIAN IT company, Thiruvananthapuram-based IBS Software in Kerala, has been named IT Provider of the Year 2012 for the air cargo industry, the company announced.

The award was presented at the Payload Asia Conference in Singapore, attended by leading representatives of the aviation industry.



Singapore-based trade journal Payload Asia presents its awards based on an independent online poll world-wide of stakeholders in the air cargo industry.



IBS won because it met three parameters best - relevance and currency of the offering, product innovation and range of value-added services provided.



IBS' iCargo, developed in collaboration with six airlines, has now been sold to 20 cargo carriers, which adopted it to replace older systems.



The list of IBS clients include All Nippon Airways, Austrian Airlines, Kingfisher Airlines, Nippon Cargo Airways, Qantas Freight, S7 Cargo, SpiceJet, South African Airways, Jetblue Airways and Cargoitalia.

AIR MENZIES International (AMI) has appointed Stephen Kollar as its new CEO to help the air freight wholesaler grow through increased focus on online activities and geographical reach. 

During his 12 years at AMI's parent, Menzies Aviation plc, Mr Koller has worked on various high-value projects that have re-shaped the business, and helped propel it to become a leading ground handler with sales exceeding US$1 billion. 



Mr Koller's management background and IT expertise are now expected to help the company become stronger in the online quoting and booking of air freight, which is a process started in 2000, and has resulted in up to 45 per cent of the business being transacted online at its flagship UK branch, a company statement said.



The new CEO first assumed responsibility for managing AMI in late 2010, while continuing in his position as executive vice president of IT for parent Menzies Aviation. He has now relinquished his IT responsibilities, following the appointment of Martin Gallington as senior vice president IT, and the successful completion of a phased handover. 



In addition to his full-time post as CEO, Mr Koller continues as one of the four executive directors of Menzies Aviation plc.



Said Menzies Aviation president Craig Smyth: "I have ambitious growth plans for AMI over the next five years, and Stephen is just the man to deliver - now on a full-time basis." 



Mr Koller is a math and business administration graduate with an MBA in information systems. He spent his early career in software development, followed by NGO work in developing countries for US-based International Executive Service Corps. In 1997 he joined Ogden Aviation, a major ground handler whose acquisition by Menzies Aviation in 2000 provided the latter's launch into global handling. He relocated to the UK from his native US in 2001.