1. Paper on Paper on “ Ease of doing business in Dry Bulk Sector- Highlight current issues and suggest possible solutions” Presented by Mr. M K Palanivel President – All India Bulk Division SAMSARA GROUP, INDIA At 3 rd Edition of “ Cargo Scope International Conference & Exhibition 2015 On 10 th and 11 th July, 2015 At Chennai Trade Center, Chennai Chennai 11.07.2015

2. Paper on “ Ease of doing business in Dry Bulk Sector- Highlight current issues and suggest possible solutions” 1.Culture, Ethics and Ethos of the country naturally reflects on individuals and institutions Yatha Raja thatha Praja As the Ruler so the ruled Ports and other authorities also reflect India’s current state of affairs 2.Port and Port Users - Two Players involved – both contribute to present status  Port Services Providers : Terminals / Ports  Port Users : a) Trade (Cargo Trade consisting : Shippers & Consignees) b) Service Providers : Steamer Agents, Stevedores, Shore Cargo Handlers, Transporters, Shore Equipment suppliers ( Grabs, Cranes etc ), CHAs, Surveyors, Bunker Suppliers, Ship Chandlers, Ship Repair Workshops and others For present status of difficulties experienced in Ports both the Ports and Port Users have to be equally responsible for. “ Both to blame Collision “ ( or Collusion !)

3. Paper on “ Ease of doing business in Dry Bulk Sector- Highlight current issues and suggest possible solutions” 3.Corruption As in Every transaction there are two parties in this also : Bribe Giver Bribe Taker It goes in the name of “Speed Money” “ Energy Money”, Nuisance Money “ “ Paper Weight” etc Starting from small issue of Port Pass issue for visitors of Service Providers to other port services, corruption is all pervasive Many times one party or the other is on the wrong track Everyone is in a hurry and wants to overtake competitor and show his efficiency to get more business Why blame Port alone? Political and Bureaucratic system and ethos has to change ; mindset has to change on both sides Port Users should agree to bite the bullet to eradicate corruption

4. Paper on “ Ease of doing business in Dry Bulk Sector- Highlight current issues and suggest possible solutions” 4.Lack of Transparency – main reason for Corruption Starting from Berth allotment there is a lack of transparency in some of the port services provided. Favouritism is seen in many cases 5.Conflict of interests, in various activities of Port Promoters which kills competition and force users perforce use these services / supplies Private Ports and their group companies has non-port activities:  Coal and other commodity trading,  Stevedoring,  Transport / Trucking,  CHA & Steamer Agency  Grab, Cranes and other Shore equipment supplies  and other Port user’s services which normally not directly done by major/ government ports This desire to make some extra income by private ports compromise their neutrality as Port Services provider which is main job / function / purpose

5. Paper on “ Ease of doing business in Dry Bulk Sector- Highlight current issues and suggest possible solutions” 6.Port Tariff related issues  Increases frequent and high and some times unwarranted ( some ports levy charges for crew change also !! )  As it is the Indian Port costs are one of the highest in the world  Atleast when you consider the productivity of ports and Turnround of vessels there is a case for holding the tariff for longer periods if not reduce it!  The Private Ports and PPP berths / Terminals on BOT / BOOT/BOOST etc basis usually justify their higher costs and consequent high Tariff by citing high cost of present investment on port facilities and newer technology which their equipment provide as compared with major / government port’s old equipment which have older technology and virtually zero book value  Some times adequate advance notices not given and also tariff increases come in piece meal  Restrictive Tariff to wean away cargo from neighbouring ports to the detriment of ship and cargo interests

6. Paper on “ Ease of doing business in Dry Bulk Sector- Highlight current issues and suggest possible solutions” 7.Lack of Concessions and Incentives and port facilities for nascent Coastal Trade  Usually Major / Government Port gives 40% discount for coastal vessels on foreign going vessel tariff  Some private ports give only a token / small discount only for coastal vessels  Again normally coastal tariff is quoted in Indian Rupees to protect trade / Shipping lines from vagaries of exchange rate variations. Still some private Ports give coastal tariff in US Dollars  The above constraints deter the development of Bulk Cargo Feedering from deep draft ports to smaller ports which are nearer to end users  Separate Terminals for coastal cargo is available in only a few Indian Ports e.g. Paradip, Ennore and a few others have separate berths  All Ports don’t give priority berthing for coastal cargo / ships

7. Paper on “ Ease of doing business in Dry Bulk Sector- Highlight current issues and suggest possible solutions” Solutions Port Regulatory Authority and other measures Sooner this Regulator is in place with sufficient punitive powers and minimum procedures the better Face to face transactions and meetings should be eliminated to control corruption partially at least Electronic Data Interchange ( EDI ) for most of the port facilities allocations – Paperless transactions. This will also expedite final Port Bills which are delayed now, by a few ports Websites of ports should be very transparent giving all data up-to-date Daily meetings with all concerned interests to decide on Berth, Cargo Stack Yard Space, Cranes, Equipment and other allocations for various cargo interests / ship agents

8. Paper on “ Ease of doing business in Dry Bulk Sector- Highlight current issues and suggest possible solutions” Control oligopoly in private ports ownerships Proper Berth and other port facilities utilisation commensurate with demand. Future expansion should be preceded by cargo demand estimates in hinterland Demand for EXIM of Commodities, particularly dry bulk commodities like Iron Ore, Coal, Fertilisers / their raw materials etc are closely linked to Government policies. Therefore the port facilities should be planned with future demand forecasts for bulk cargo in different regions Both Authorities and users should be accountable for their conduct and business dealings with efficiency and integrity as top priority. The latter also should change with times

9. SAMSARA GROUP, INDIA THANK YOU ALL