EX­PLOR­ING NEW TRADES AND GE­OGRA­PHIES

DONG HWAN OH,MD, IHQ, HYUNDAI MER­CHANT MA­RINE IN­DIA PVT LTD

Maritime Gateway - - Contents -

“We want to keep fo­cussing on new trades and ge­ogra­phies, spe­cial cargo busi­ness like reefers, OOG and break bulk - that would be the key to our suc­cess, not only in 2019 but in com­ing many years,” re­veals Dong Hwan Oh, Manag­ing Di­rec­tor, IHQ, Hyundai Mer­chant Ma­rine In­dia Pvt Ltd

Q How has been the busi­ness in 2018 and what are your ex­pec­ta­tions in the com­ing years?

Com­pared to year 2017 we have seen an 18% growth on our ex­ports and a sim­i­lar 19% growth on our im­ports in year 2018. This has been pos­si­ble with our right as­set de­ploy­ment in both North and South of In­dia, open­ing of new mar­kets like Mid­dle East, Mal­dives, Bangladesh and clubbed with pos­i­tive ex­ter­nal en­vi­ron­ments like stable gov­ern­ment, mas­sive in­vest­ments in in­fra­struc­ture, re­lax­ation in Cab­o­tage rules and var­i­ous Sa­gar­mala project ini­tia­tives.

We ex­pect a sim­i­lar growth (if not higher) in year 2019 as well.

Q The in­dus­try has faced low freight rates and high bunker costs in 2018. Do you ex­pect any change in sce­nario in the New Year?

An in­creas­ing bunker price in con­tainer ship­ping, es­pe­cially in the short term, is only par­tially com­pen­sated through sur­charges and will there­fore af­fect earn­ings neg­a­tively.

With the prospect of volatile times ahead, and bunker prices likely to take the con­tainer in­dus­try on a wild ride, it needs a trans­par­ent and stan­dard­ized tool for han­dling bunker prices in con­tainer freight. That is what we are aim­ing to pro­vide by in­tro­duc­ing shortly a new quar­terly float­ing bunker for­mula (bunker re­cov­ery sur­charge). Some ma­jor car­ri­ers have pro­posed 1st Jan 2019 as the start date and have in­di­cated ex­am­ples of sur­charge amounts de­pen­dent on fuel price.

Q What is the sig­nif­i­cance of In­dian mar­ket in the com­plete busi­ness net­work of HMM?

HMM’S tar­get is of build­ing up its ca­pac­ity to 1 mil­lion TEUS by 2020 and post­ing US$ 10 bil­lion in an­nual rev­enue by 2022.

HMM In­dia con­trib­utes roughly 5 per cent of the to­tal Vol­umes of HMM Glob­ally. And with the growth pro­jected for HMM In­dia in com­ing years (which is roughly in dou­ble dig­its), we are hugely de­pen­dent on In­dia’s con­tri­bu­tion to HMM.

We want to keep fo­cussing on new Trades & Ge­ogra­phies, Spe­cial Cargo busi­ness like Reefers, OOG and Break Bulk - that would be the key to our suc­cess, not only in 2019 but in com­ing many years. Fur­ther we are look­ing at in­vest­ing in ter­mi­nals to avail ben­e­fits such as cost sav­ings, stable berth op­er­a­tions and the other ad­di­tional ben­e­fits from new ter­mi­nal busi­ness to 3rd party.

Q With Cab­o­tage re­lax­ation are you plan­ning to tar­get coastal and tran­ship­ment cargo?

Yes tran­ship­ment for sure, to­day we are con­nect­ing our Kolkata laden cargo via Kr­ish­na­p­at­nam port and vice versa. Also started lev­er­ag­ing our net­work to po­si­tion emp­ties into the var­i­ous deficit ar­eas within In­dia like Nhava Sheva to Mun­dra, Chen­nai to Kr­ish­na­p­at­nam, Vizag etc. This will fur­ther gain mo­men­tum as we make in­roads into the In­dian mar­ket in com­ing years.

Q Tell us about dig­i­tal­i­sa­tion at HMM?

HMM aims for full adop­tion of Cloud based next gen­er­a­tion sys­tem by 2020. This en­ables high level of se­cu­rity and swift & stable in­for­ma­tion tech­nol­ogy. HMM vi­sion for 2022, is to im­prove pro­duc­tiv­ity by con­nect­ing Block Chain and IOT tech­nol­ogy to our ser­vices.

Q Tell us about your con­nec­tiv­ity to east and west coast?

We have 5 main­line ser­vices call­ing the west coast of In­dia to­day i.e. CIX, CI2, CI3, WIN and TNS. And 2 main­line ser­vices call­ing

South of In­dia i.e. ACS and TCS With Kr­ish­na­p­at­nam call added on ACS ser­vice, we are suc­cess­ful in con­nect­ing both Vizag & Kolkata cargo as trans­ship­ment at KRI hence very well con­nect­ing the East coast of In­dia.

Q HMM has a mega plan to post $10 bil­lion in sales by 2022. How are you work­ing to­wards achiev­ing this goal?

Fo­cus will be on new Trades & Ge­ogra­phies, Spe­cial Cargo busi­ness like Reefers, OOG & Break Bulk, and Big­ger Ves­sels lead­ing to a bet­ter mar­ket share and at the same time how we ac­tively push to take the freight rates up.

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