Oil spill shuts India's busiest port, threatens other coasts
Monday, 09 August 2010
10 August 2010;business-standard.com:Mumbai/ New Delhi: Operations were suspended at India’s busiest container terminal, Jawaharlal Nehru Port, as authorities attempted to contain damage from the collision of two cargo vessels off the coast of Mumbai on Saturday. Several cargo containers abroad one of the ships were flung into the sea following the accident, which also triggered an oil slick along the Mumbai coast. The Indian Coast Guard has pressed into service several boats and helicopters in an attempt to stem the fuel leak, but some officials said the operation has met with only limited success so far and the spill was now threatening areas hundreds of kilometres away from the collision site. The Jawaharlal Nehru Port Trust (JNPT) has, meanwhile, sought the services of experts from SMIT Salvage, a Netherlands-based company involved in emergency response and wreck removal operations. The experts are expected to reach Mumbai by Wednesday. However, in a statement issued late in the evening, the Director General of Shipping said effective salvage operations can begin only by the end of the month when the weather improves. Many of the 120-odd containers that fell in the sea are still floating, making navigation in the area difficult. A fourth of them contain, what the DG Shipping termed, dangerous cargo. “Heavy oil spillage can be sighted from the ship’s fuel tanks,” the statement added. MSC Chitra, operated by Mediterranean Shipping, has shed at least 400 boxes of hazardous chemicals, such as phosphatic pesticides and sodium hydroxide since its collision with MV Khalijia 3. MSC Chitra is now lying on its side in the Arabian Sea. According to agency reports, Prime Minister Manmohan Singh has sought a report from the shipping ministry on the oil spill, even as the government initiated legal action against the owners of the two cargo ships. “The Maharashtra State Pollution Control Board has already initiated legal action against the owners of the ships,” Environment Minister Jairam Ramesh told the Rajya Sabha. “The channel is not navigable; it cannot be operated,” said N M Kumar, deputy chairman, JNPT. He said the floating containers could endanger ships on the route. The DG Shipping said JNPT is closed during the night and only a “few movements of ship were undertaken during the day”. It is not clear when full operations will resume at the port. The Indian Navy is undertaking an inspection that will determine if operations can resume at the nearby Mumbai Port Trust. JNPT handled 4.1 million containers in the year ended March 30, 2010. Total cargo tonnage, including commodities and other types of freight, rose 6 per cent to 60.7 million tonnes in the year. The closure will have a huge impact on congestion and vessel movements. “JNPT handles about 60 per cent of India’s container traffic, so its closure would definitely impact the industry,” said Param Desai, an analyst with Angel Broking. It will also impact companies which are involved with the transportation of containers and its warehousing. Gateway Distriparks, Allcargo Global Logistics and Container Corporation of India are some of the companies who would be affected. “The industry at large will also get a hit as the overall import and export will be impacted,” said Desai. Meanwhile, fears that ocean currents were spreading oil from the spill flared after tar balls turned up in some coastal areas towards Raigarh, about 100 km from Mumbai. Scientists at Bombay Natural History Society have found fresh on-shore oil debris — some up to six inches in depth — in coastal regions along south of Mumbai towards Raigarh along with tar balls in some places. A Coast Guard official said oil spill has reached the beaches of Alibag, Marva, Sewree and Elephanta Caves besides Mumbai mangroves. Fishermen have been warned not to venture into the sea. The oil spill has also ignited concerns over use of sea water by Bhabha Atomic Research Centre (BARC). The country’s premier atomic establishment has been asked by the Coast Guard not to use sea water for its facilities in wake of the oil spill. BARC uses sea water for its two research reactors — Dhruva and Cirus — for cooling purposes. The shipping ministry will submit a detailed report on the issue to the cabinet secretary. “A committee of secretaries will hold a meeting tomorrow to discuss the matter,” a senior official in the shipping ministry said. Maharashtra's Environment Minister Suresh Shetty told Business Standard: “About 400 tonnes of oil has leaked and the current rate of leakage is two to three tonnes an hour. In case the fuel tank ruptures, further leakage can happen.” Shetty said an FIR has been lodged against the captains and crews of both the ships. The Director-General of Shipping has also ordered an enquiry.
09 August 2010;deccanherald.com:Mumbai: The oil spill from one of the two Panamian cargo ships which ran aground stopped today, three days after they collided off Mumbai coast in a big relief but environmenal concerns remained over spread of the oil slick and presence of toxic chemicals in the waters. "The leakage of oil from the ship (MSC Chitra) has stopped on its own," S P S Basra, IG Coast Guard (Western Region) told PTI. Preliminary investigations launched by the Directorate General of Shipping (DGS) have indicated navigational error and failure of radio communication between the two vessels as possible reasons for the mishap on Saturday. The development in the evening came even as foreign experts were called in to limit the damage of the oil spill as the leakage spread to new areas posing a major ecological threat to the city coastline. Prime Minister Manmohan Singh had also sought a status report from the Shipping ministry on efforts to contain the the oil spill which paralysed shipping activities in Mumbai harbour for three days. "It is observed that in the last six hours, the fuel from the ship tank has stopped coming out. So, it is a relief kind of thing," Basra said as coastguards battled choppy seas and strong winds to contain oil from the badly listing container ship leaking into the sea for the third consecutive day. According to official sources, it may take several weeks to clear the waters of the oil slick which had reached some areas south of Mumbai upto Raigarh, about 100 km from here. MSC Chitra had collided with MV Khalijia-111, about 10 kms off the Mumbai coast. Oil was leaking from two of the 12 tanks of MSC Chitra which had got damaged due to the collision. The two tanks could together hold 879 tonnes of oil, sources in the Coast Guard said. The accident caused the vessel to run aground and list heavily to one side. The ship had 2,262 tonnes of oil and up to 400 tonnes of it had leaked into the Arabian sea, threatening marine life and ecology along the Mumbai coastline including in the mangroves. The Directorate General of Shipping (DGS) said feared that toxic and corrosive materials in the vessel may have got mixed up with fuel oil in the sea. "The vessels had 31 containers on deck fully loaded with toxic and flammable constituents. Among those containers, six were loaded with pesticides. It would be fair to assume that these containers would fall off, if not already in water," Director General of Shipping S B Agnihotri told reporters. On the possible cause of the crash, he said as per a preliminary enquiry, the accident may have happened due to a fault in navigating the ships or failure in radio communication. The Bhabha Atomic Research Centre(BARC) was also alerted over use of sea water for its nucleear facilities. The Navy and the Coast Guards carried out anti-pollution operations for the third consecutive day spraying dispersants to check and neutralise the oil spill. Chief Minister Ashok Chavan said the ship contained around 2,600 metric tonnes of oil. "It is believed that around 500 MT must have spilled over." S S Dasila, Commandant (Maritime Rescue Coordination Centre) of Coast Guard said the oil spill posed a serious danger to maritime fauna and flora. "MSC Chitra has tilted 80 degrees," Arun Singh, Commandant (Operations), Coast Guard told PTI. He said so far, 300 of the 1,219 containers on the ship have tumbled into the water.
Mumbai oil spill continues, 300 containers tumbled into water so far
Monday, 09 August 2010
09 August 2010;timesofindia.indiatimes.com:MUMBAI: A foreign cargo ship, which collided with another vessel about 10 km off Mumbai harbour, tilted further spilling oil for the third day today as Navy and Coast Guard made hectic efforts to contain the leak. " MSC Chitra has tilted 80 degrees and the total oil spill is nearly 50 tonnes, Arun Singh, Commandant (Operations), Coast Guard said. He said so far, 300 containers carrying oil have tumbled into the water. A worried Chief Minister Ashok Chavan said, "This is a serious issue. We have already filed cases against the captains of the two ships which are from abroad. Today, I am going to have an aerial look at the accident site". "We are trying to contain the leak as far as possible," he said. Two Panamanian cargo ships — MSC Chitra and MV Khalijia-111 — collided on Saturday off the Mumbai coast causing an oil spill from one of the vessels. Thirty three crew members, including two Pakistanis, were rescued following the incident. The Navy and the Coast Guards carried out anti-pollution operations for the third consecutive day today to check and neutralise the oil spill. Six coastguard vessels and a helicopter with anti-pollution dispersal spray systems were pressed into service yesterday to contain the oil spill. A high-level meeting, to be attended by the officials of the Maharashtra government Environment Department, National Disaster Response Force, Brihanmumbai Municipal Corporation, Shipping department, Mumbai Port Trust and other concerned agencieshas been convened to assess the situation and steps to be taken to bring it under control, sources said. Fishing associations have been also requested not to carry out any fishing activities till the oil spill is contained, officials said. Officials are yet to locate the leakage. The thick oil slick has been sighted two to three kms around the vessel Chitra. "Traffic has been suspended as the containers are still sighted floating into the channel thus making navigation hazardous," a Coast Guard official said. The Directorate General of Shipping has initiated an investigation into the incident, Directorate General of Shipping's Chief Nautical Advisor M M Savvi said, adding "the Coast Guard and senior officials (Directorate General of Shipping) are now at the site". According to officials, Chitra was carrying about 1,200 containers which had over 266 tonnes of fuel.
Avoid having fish following oil spill, BMC to Mumbaikars
Monday, 09 August 2010
09 August 2010;timesofindia.indiatimes.com:MUMBAI: Brihanmumbai Municipal Corporation has asked Mumbaikars to adequate precautions while buying fish, in the backdrop of contamination of sea water following the oil spill caused by collision of two cargo vessels. In an advisory issued here this evening, the civic body said people should take precautions while buying fish. Fishermen should also avoid fishing in areas affected by the oil, a release issued by the BMC said.
Govt fixes higher price for ONGC gas from new fields
Sunday, 08 August 2010
09 August 2010;business-standard.com:New Delhi: In a big boost to Oil and Natural Gas Corp (ONGC), the government has approved up to 25 per higher price for natural gas the state-owned firm may produce from new fields. The oil ministry on June 28 issued guidelines for the price national oil companies like ONGC can charge for natural gas they produce from new fields in the blocks given to them on nomination basis, official sources said. ONGC will get $5.25 per million British thermal unit (MmBtu) for the gas it produces for new fields in nominated blocks in the western offshore and $5 per mmBtu for fields in Cauvery basin. It will get $4.75 per MmBtu for fields in Krishna Godavari basin off the Andhra Pradesh coast. The price approved is more than $3.818 per MmBtu that the government had set for the gas ONGC produces from its operational fields in the blocks given to it on nomination basis. The price for consumers of this gas, known as APM (administered price mechanism) or government administered gas, after including royalty is $4.2 per MmBtu, sources said. “National oil companies would charge non-APM price for gas produced from new fields in nominated blocks,” the oil ministry order of June 28 said. The ministry based the price on the rates at which dominant players in the region like the Panna/Mukta and Tapti fields in western offshore and Reliance Industries’ KG-D6 fields in eastern offshore sell the fuel.
Mitsubishi aims to bring small car to India in 3 yrs
Sunday, 08 August 2010
09 August 2010;business-standard.com:Swaraj Baggonkar:Mumbai: Mitsubishi Motors Corporation, Japan’s fourth-largest car maker, has finalised plans to bring the new compact car it is building in Thailand to Indian shores in the next three years. The company is looking to exploit the upper B+ segment, which has seen high demand growth since the launch of Maruti’s Swift, followed by several models like the Hyundai i20, Fiat Grande Punto, Maruti Ritz, Volkswagen Polo and Nissan Micra. According to a company source, the senior management at its headquarters in Japan are very keen on expanding operations in India. So, they have pushed for a compact premium hatchback here. "We can no longer afford to ignore the Indian market. We cannot have a foot-hold in India if we do not have a presence in the small car segment. So, this is not just going to be a logical extension for us but a very crucial one, too. We are exploring ways to tune the 'eco car' we are building in Thailand for India," said the source. Mitsubishi is building a new car from scratch, which would see mass production to the tune of 200,000 units per year from 2012. About 70 per cent of the plant's output will be for markets outside Thailand. The company plans to expand the India plant capacity to 100,000 units per annum from 12,000 units presently. It initially had plans to have a 'world car' from India, serving other emerging markets worldwide. Mitsubishi, one of the several international automotive companies to be adversely impacted by the global downturn, is not so keen to enter the high volume, small car segment (Rs 2.8-3.9 lakh), dominated by Maruti Suzuki and Hyundai Motors. The company enjoys a premium positioning in the country with models such at the Pajero and Lancer. It, therefore, may position the compact car on similar lines. Also, Mitsubishi's rich history in motor sports especially in rally races, will funnel down to the small car, said another source. Mitsubishi has the option of importing completely knocked down kits (CKD) of the compact car from the mega facility it is building in Thailand or manufacture the car entirely at its Chennai plant, which will entail multi-crore investments. A CKD operation will be simple. However, it would not be as cost-effective as a manufacturing operation, due to import duties imposed by the central government. A CKD will also mean limited usage of local parts. Issues with HM Senior executives at Mitsubishi are keen on resolving issues related to the Chennai Car Plant, which belongs to both the C K Birla Group-promoted Hindustan Motors and Mitsubishi Motors. Both have been discreet about ownership of the plant. Mitsubishi is keen to take it under its fold before any expansion steps. "The attitude (of Mitsubishi) towards India has changed ever since the financial recovery began last year. We do not wish to waste any more time. There were several issues which were unattended due to lack of participation from HM," said a senior executive from Mitsubishi Motors. Mitsubishi shares a technical tie-up with HM, a Kolkata-based and loss-making company, for the Chennai plant, where it makes the Lancer, Cedia, Pajero and Outlander models. The Japanese company has also shown interest in having equity participation in HM, which makes the once-iconic Ambassador. HM recently reported a 50 per cent erosion in net worth, following which the matter was reported to the Board for Industrial and Financial Reconstruction.
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