The Hindu Business Line : Record cargo handling by Transchart in 2004

TRANSCHART, the centralised chartering wing attached to the Shipping Ministry, handled an all-time high quantum of government cargo in 2004. During the calendar year, Transchart handled 66.44 million tonnes of government cargo comprising dry bulk, liquid, liner, coastal and time charter cargoes.

Of this, 42.32 million tonnes (63.39 per cent)were carried by 408 foreign flag vessels, while 24.12 million tonnes (36.31 per cent) were hauled by 417 Indian flag carriers.

"This is the highest-ever quantum of government cargo handled by Transchart in a calendar year since its inception,'' a Ministry official said.

As per the existing policy, the import contracts of all cargoes received on behalf of Central/State government Departments and the PSUs under them are to be finalised only on free-on-board (f.o.b.)/free-alongside-ship (f.a.s) basis with the shipping arrangements finalised through Transchart.

The centralised chartering system for PSU cargoes was put in place to provide cargo support/preference to Indian flag vessels, both private and public.

In 2003, the centralised chartering wing handled 59.03 million tonnes of PSU cargo, of which 37.64 million tonnes were carried by 379 foreign flag ships and 21.39 million tonnes by 401 Indian flag vessels.

Dry cargoes such as coking coal/met coke accounted for 11.45 million tonnes handled by Transchart in 2004.

Liquid cargoes such as crude oil and LPG imported by public sector oil companies, clean petroleum products and coastal cargo accounted for a major portion of the total cargo handled by Transchart.

Of the 66.44 million tonnes of PSU cargo handled by Transchart in 2004, the share of liquid cargo alone was 54.99 million tonnes.

In this category, 227 foreign flag ships transported 34.77 million tonnes whereas 346 Indian flag vessels moved 20.22 million tonnes.

Crude oil imports, which form a big component of liquid cargoes, are moved on very large crude carriers (VLCCs) for economies of scale.

"Indian Oil Corporation, the largest crude oil importer among PSU oil companies, had since April 2002 decided as a matter of policy to import almost all of its crude cargoes only on VLCCs to achieve economies of scale since larger quantities can be shipped at a time leading to savings in transportation costs,'' the official said. IOC prefer VLCCs which can load a minimum of 1.9 million barrels.

Though, Indian shipping companies such as Great Eastern Shipping Company Limited, Essar Shipping Limited and Mercator Lines Limited have inducted VLCC into their fleet since late 2003, most are deployed in international cross-trades to cash in on the booming freight rates.

Besides, the uncertainty associated with calling at the Vadinar port had deterred domestic VLCCs owners. "VLCC cargoes are fixed in advance. Any delay in Indian ports would have an adverse impact on fulfilling the next cargo contract," a ship owner said.

The state-run Shipping Corporation of India (SCI) last week added a new 300,000-DWT (dead weight tonnes) VLCC to its fleet. The tanker named `Desh Ujaala' was built at the Hyundai Heavy industries Co Ltd yard in Korea. Another similar VLCC will be inducted by October.

Though, the quantum of cargo carried by Indian flagships has risen from 21.39 million tonnes in 2003 to 24.13 million tonnes in 2004, the percentage of cargo transported by domestic vessels has remained the same — 36.23 in 2003 and 36.31 in 2004.

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