Emirates Airline´s Mexico City flight suspended
A judge decided to grant a writ of amparo to Aeromexico that stops the agreement of Mexico and the United Arab Emirates, which prevents the arrival of Emirates Airlines to the country.
With this decision, the Dubai-Barcelona-Mexico flight planned by the airline will not be able to take place.
Emirates Airlines informed that it will appeal Aeromexico´s writ of amparo, which orders the Mexican government to stop any action based on the bilateral agreement between the 2 nations.
In the news conference, Scott Lantz, Manager of Emirate´s area for Mexico: “The idea is to follow all the necessary steps, all the necessary rules to operate in Mexico and we have constant contact with airport authorities and the idea is to start operations via Barcelona in December.”
DHL Global Forwarding expands multimodal service to Indonesia
International freight service provider DHL Global Forwarding has launched a delivery service to tap into growing shipments from Indonesia to other parts of Asia.
The service, called Asiaconnect+, officially launched in Jakarta on Tuesday, enabling regional shipments from Indonesia to Singapore, Malaysia, Thailand, or vice versa, using multimodal services combining air and road freight, instead of only air freight or ocean freight.
“Asiaconnect has been connecting Malaysia, Singapore, Thailand, Vietnam and China through a cross border network. Today, Indonesia is joining the network,“ said Bruno Selmoni, DHL’s head of road freight and multimodal ASEAN and South Asia during the launch of the new service.
DHL first introduced the Asiaconnect network in 2011,which at that time connected Singapore, Malaysia and Thailand through road freight.
With Indonesia included in the network, shipping from many cities in Indonesia, such as Bandung, Balikpapan, Semarang and Lampung to Singapore, Malaysia, or Thailand will be pooled in Jakarta by air or truck freight first. Then, the goods will be transported to Singapore using air freight before they are transported by truck to a destination such as Kuala Lumpur, Penang and Bangkok.
“From Jakarta to Bangkok using DHL Asiaconnect+, for example, will take six days or two days slower [compared to when using air freight]. However, on the other side it comes with a lower price,” said Bruno.
DHLBruno said with Asiaconnect+, service for Jakarta - Bangkok shipments could cut logistics costs by 35 percent. Meanwhile, Jakarta to Kuala Lumpur will take four days using Asiacconect+, one day slower than using air freight but is 32 percent cheaper than using air freight.
DHL Forwarding Indonesia president director Vincent KC Yong said DHL’s decision to provide Asiaconnect+ was because the logistics company had seen a demand for innovative logistics service with competitive costs for regional shipment. Especially since Indonesia’s focus is pushing exports and its biggest market for export is Asia.
Learn about Egypt-Japan coalition to build 4th metro line
An Egyptian- Japanese coalition has been recently selected to implement the first phase of the fourth metro line in Haram Street, Giza, as part of the government’s major plan to expand the subway service across the capital and beyond.
In the below lines, et displays information about the coalition and its financial offer to fund the implementation procedures of the project:
1- The coalition includes Mitsubishi Corporation and Orascom Construction companies.
2- The financial and technical offers by the coalition received the highest evaluation rate by the main judging committee assigned by the National Authority for Tunnels to decide on the offers.
3- The coalition will execute the work of the project at a cost estimated at L.E. 14 billion: L.E. 3.8 billion, and 397.3 million Euros, in addition to 10.4 billion Japanese Yen.
4- The coalition will establish a new workshop to carry out the implementation of the project, west of the Ring Road on the outskirts of the 6 of October city.
5- The winning coalition will carry out the electromechanical works, and will install the rails along the way from the newly established workshop to Fostat district in Old Cairo.
6- The National Authority for Tunnels seeks to form another coalition including Egyptian and Japanese companies to execute the first phase of the project, but in coordination with the conditions set in the Japanese financial offer.
7- The Japanese side will fund the project with $1.2 billion in soft loans representing around 60 percent of the total cost of the project.
8- The Japanese side set conditions as per their financial offer, including that the companies to be selected to implement the project should be only Japanese.
9- Egyptian companies alone cannot propose to participate in the project, the conditions oblige there should be Japanese partners with them.
10- The construction works in the project will begin only when the companies to carry out the civil and drilling works are selected.
VCTS gets overwhelming response
Despite initial opposition from the private sector, over 10,000 consignments are being registered in the vehicle consignment and tracking system (VCTS) every day nowadays, according to the Department of Revenue Investigation (DRI).
“More than 600,000 consignments have registered into the system in the past two months,” said Dirgha Raj Mainali, director general at DRI. “We have been receiving positive response and the compliance rate is increasing accordingly.”
He said as the parties involved in trade have understood the system and its benefits now, the private sector has become positive about its implementation.
“We hold monthly meetings with the private sector including the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Nepal Chamber of Commerce (NCC),” he told Republica.
Earlier, the private sector had shown concerns over the mandatory implementation of the provision all at once, and had asked the government to implement it in phases.
About 10,000 firms have signed up for the VCTS. The entry of more than 1 million bills and invoices and transaction of around Rs 8 billion have been recorded in the system so far, according to Mainali. “The number of agencies who are responsible for the entry is increasing. It has reached 168 in just two months.”
The system is developed in a way to track all parties involved in the trade activity. The movement of the cargo and consignment can be tracked as soon as the vehicle carrying the consignments is registered in the system.
Companies involved in trading, manufacturing, transportation business, and importers along with custom agents are required to sign up for the VCTS. The department claims that the system will be beneficial to all parties including traders, consumers, and the government. The system requires the vehicles carrying commodities for wholesalers to be registered in the online-based tracking system before transportation begins.
Details like nature of goods, number of motor vehicles carrying goods, number plate of motor vehicles and name of the driver, Permanent Account Number (PAN) of both sellers and buyers, and cost of the products need to be entered into the system.
Upon entry of the details, the system will produce a manifesto with a QR code that can be scanned for details of the consignment. The implementation of the system is expected to make the trade systematic by controlling transportation malpractices and revenue leakage through smuggling.
According to the IRD, there has been no problem as of now regarding the system and its usage. The IRD officials consider the usability and the quality of the system as an important component. “It is a real-time system developed in Nepal and if any problem comes into the system, it can have adverse effect on the process,” said Mainali.
The department has assigned a technical staff of four engineers on standby to deal with any problem that may emerge while the system is being implemented.
He said that as companies get registered, they will continue to sign up to the system. The VCTS will be mandatory from mid-October. According to the DRI, traders will be liable to fines of up to Rs 50,000 for the first time and Rs 75,000 for the second time if they do not abide by the VCTS rules. The director general of the DRI has the authority to take action against those who do not join the system within the next month. The DRI had removed 10 check posts as part of enforcing the system.
Nepal-bound cargo gets subsidy on duty insurance
The Indian customs office at Kolkata port has given 84.33% subsidy for Nepali cargo duty insurance. The office has a provision to charge the importers duty insurance equal to the risk on revenue while importing goods via India.
Nepali importers and other stakeholders say this subsidy is an important incentive for Nepal's trade with third countries.
Earlier, the insurance cost was 30 paisa per Indian Rs 100. Now, the cost has been reduced to 5 paisa. Importers say this will lessen the cost of insurance for Nepali cargoes.
Ek Narayan Aryal, consulate general of Nepal at Kolkata, said the achievement was a result of efforts made for a long time.
"We welcome the decision made by the Indian customs. Nepal will get direct benefit from this," said Pradeep Kedia, past president of Birgunj Chamber of Commerce and Industry (BICCI). This will lower the cost of business to some extent, he added.
Similarly, Amrit Bhakta Shrestha, former president and present executive member of Nepal-Bhutan committee of Kolkata Customs House Agent Association, said that Nepal will be benefited from the subsidy.
Apart from the subsidy, the Indian customs office has also decided to allow importers to buy insurance from private insurance companies.
Previously, there was a provision to insure from a government insurance company.
The decision to get insurance service from private companies was implemented from September 12. With this, the monopoly of the National Insurance Company Ltd, an insurance agent owned by the Indian government, has ended at Kolkata Port.
Aryal said that the recent decision will simplify the process of cargo insurance for Nepali importers. The competition among the insurance companies will be beneficial for Nepali importers. "This will reduce the cost in doing business," said Aryal.
Ashok Kumar Temani, president of Transport and Transit Committee of Federation of Nepalese Chamber of Commerce and Industry, said that ending monopoly of one company will definitely improve the situation.