Legacy

While it completes
its 40th year of
operations in India,
APL can claim many
firsts. APL is the
first shipping line
to carry containers
to India. It was
also the first one to
call at a container
terminal on
east coast. Most
importantly,
it introduced
the concept of
intermodalism in
the country.

32 maritime gateway / december 2013

APL's Footprint in India

Pioneering
tradition,
rewriting
history
ovember 23, 1973 was a day
like any other at the Indian
port of Cochin, except for a
historic event the berthing of
the first vessel carrying containers on
Indian shore. On that memorable day,
APLs MV President Tyler steamed into
the Cochin harbor and took her place in
history. And that was the start of many
firsts for APL in India.

APLs 160-year history began in 1849

and continues on today in a dramatically
different world of global trade and
business. Across many illustrious
decades, APL has impacted the lives
of millions of people and shaped the
development of cargo transportation.
The end of World War II was an
important juncture in APLs history. The

company attracted the interest of Ralph

K Davies whose success in the volatile
California oil business earned him a
reputation as a shrewd businessman.
In 1952, Davies and his investors
purchased American President Lines
for $18 million. Davies plans for APL
included expansion, modernisation and
a revolutionary concept for a traditionbound industry Containerisation.
To assess the worlds readiness for
containerisation, Davies sent a factfinding team to 26 major ports in 1958.
The report was positive, and Davies
began to integrate containers into APLs
operations.
In 1961, APL began the shift to
containerisation in earnest. MV
President Tyler and MV President
Lincoln, both Searacer class vessels
capable of carrying containers and
traditional break-bulk cargo, were
launched. By 1971, 58 per cent of
shipments handled by the company
were containerised. In 1973, APL took
delivery of four fully-containerised
vessels.
Over the years, APLs pioneering
tradition changed the face of maritime
history in India. In 1973, the same
year when President Tyler called at
Cochin, APL ushered in the era of
containerisation. This, in turn, brought
about a rapid change in port operations
across the country. Indian ports had to
set up infrastructure facilities to handle
container traffic instead of pure break-

bulk operations. Container operations

at ports resulted in creation of container
freight stations, rail containers depots
connecting inland container depots; and
finally the conversion of BPS Berth as a
dedicated container terminal.
Mumbai Port was the most important
and widely used port in the 1970s and
1980s. The sheer volume of traffic
and pressure on infrastructure at the
Mumbai Port resulted in the creation of
the Jawaharlal Nehru Port (commonly
known as Nhava Sheva) which lies
opposite to the Mumbai mainland in
Thane Creek. At that time, it seemed
inconceivable that cargo would actually
shift out of the Mumbai Port to JNPT.
But it happened, and APL was again at
the forefront as one of the first carriers to
call JNPT in 1989 with the vessel, Eagle
Star. APL continued to make history
in JNPT, with the President Arthur
becoming the first mainline vessel to
call at that port in 1992. A year later,
APL was the first container carrier to be
listed in the Berth Reservation Scheme
introduced by the Mumbai Port Trust.
APL operated Berth No. 12-B Indira
Docks, owning and operating handling
equipment, top lifters, port packers, and
over 200 chassis.
APL continued its achievement of many
firsts on the east coast of India as
well. It was the first carrier to call at the
Visakha Container Terminal (VCTPL)
in 2003, the first shipping line to venture
into the reefer container business in
Visakhapatnam, and the first to call at

It was the
first carrier to
call at VCTPL in
2003, the first
shipping line to
venture into the
reefer container
business in
Visakhapatnam
and the first to
call at Kakinada
port on June 14,
2001, with the
vessel Eagle Sky.
Kakinada Port on June 14, 2001, with
the vessel Eagle Sky.
While maritime activities in India were
going through far-reaching changes,
communications continued through the
slow and tedious use of telex machines.
Once again, in the mid 1980s, APL took
another significant step to modernise
communications by replacing telex
machines with online correspondence
systems (CRTs) through the very first
computers to be used by any shipping
line in the country.
Correspondence through electronic
mail became a reality and
communication was instantaneous a
truly giant leap in the modernisation of
the transportation industry in India.
In the late 1980s and early 1990s,
APLs spirit of innovation guided it
into unchartered territory with the
introduction of Intermodalism in the
country. This meant creating a seamless
connection between the three modes of
transportation truck, train and ship so
that shipments could move with greater
speed and reliability than ever before.

First vessel carrying containers on Indian shore

At that time, APLs competitors called

at Mumbai every 28 days, connecting
to the US east coast with the best
transit in the business. The target
cargoes handicrafts and brassware
originated in North India. As a US
west coast carrier primarily, APL took
the challenge head-on and started road
movement from key Inland Container
december 2013 / maritime gateway 33

Interview Anil Radhakrishnan

Modest
beginnings
to leading
position

Can you provide some details

about the beginning of the first
container service by APL (then
American President Lines) to India?
(Size of the vessel, port call, nature
of cargo, port of origin, etc).

India received the first container at

the port of Cochin on 23 November
1973. It arrived on the APL-operated
vessel, MV President Tyler, which was
carrying 40-50-teu empties along with
the chassis, to be discharged at Cochin.

APL operated two container vessels

to India in 1973 President Lincoln
and President Tyler. These were small
feeder-size vessels with approximately
180-200 teu capacity.
APL was then represented by Messrs
Binny Ltd, who were APLs authorised
Agents until 1988.

APL India Managing Director

Anil Radhakrishnan is the
first Indian to head the
company in the country
after its merger with
NOL. In an interview with
Maritime Gateway, he
talks about the companys
eventful 40-year growth
journey in the country, its
future plans for the Indian
market and the overall trade
scenario.

Depots (ICDs) like Moradabad to railconnected ICDs in Delhi to run the very
first dedicated train service between
North India to Chennai in collaboration
with the Container Corporation of India
(CONCOR). APLs L-9 ships provided
the sea-link to the US west coast.
Once discharged at gateway ports on
the US west coast, American President
Intermodal (API) took over, ferrying
containers by stack-trains to the US east
coast. This resulted in APL providing
34 maritime gateway / december 2013

Up until the early 1970s, APL had

operated break-bulk & semi-container
vessels into/from India - viz Mv
Hongkong Mail and Alaska Mail. These
became known more as American Mail
Lines. In the mid-1970s, the breakbulk vessels were gradually replaced by
container vessels.
The first of the container vessels,
President Lincoln and President
Tyler were in a loop service covering
Colombo, Cochin, Mumbai, Karachi and
back to Colombo.

Q
A

How has been the journey in India

so far?

From its modest beginnings in India

40 years ago, APL is today one of
the leading ocean carriers here, with a
country-wide network of 26 offices and
12 ports of calls. APL connects India

significantly shorter transit time to the

US east coast, compared to direct east
coast callers.
Incidentally, W Bruce Seaton, who
took charge of the company six years
after Davies passing in 1971, was
instrumental in aggressively recruiting
rail and truck transportation experts to
work with the international shipping
specialists at APL. This resulted in the
development of the Stack-Train, an
innovation that doubled train capacity

to global markets with eight dedicated

vessel services and 17 weekly port calls.
APL pioneered new ship calls in ports
such as Vizag and Nhava Sheva. The
APL ship, Eagle Star, was also the first
vessel to call Jawaharlal Nehru Port
Trust (JNPT) on May 26, 1989 the day
this port was inaugurated.
With the onset of Indialinx (Container
Rail Freight Services), APL has
developed a unique ability to provide
customers with end-to-end integrated
logistics solutions that are reliable
and time definite. APL today serves
55 inland container depots via a
comprehensive intermodal network that
extends from the major ports to Indias
hinterland.

Q
A

Can you explain the nature and

scope of APL services to Indian
destinations from Singapore.
Currently APL operates a dedicated
China-India service called CIX
(China India Express) between China
and India via Singapore.
Singapore is the main hub port for APL,
where substantial volumes of Far East,
Southeast Asian, Indian Subcontinent,
Transpacific and Latin American cargoes
are transshipped.

Q
A

How is APL faring in logistics

sector? How do logistics services
complement the shipping services?
APL Logistics (APLL) has a strong
presence in India, offering both
local and global customers a full suite
of supply chain services that includes
Origin Services, Consolidation,
International Freight Services,
Destination Services and Warehouse
& Distribution Management. APLLs

by stacking containers, two high, on

specially-designed railcars.
With the advent of stack-trains in
1984, APL introduced the concept of
containerisation to the US domestic
transportation industry, paving the way
for the integration of domestic and
international shipments and solidifying
APLs reputation as an innovative
market leader.
After successfully moving cargo from

footprint in India comprises eight

offices, 10 warehouses, eight bonded
CFS facilities and over 21 non-bonded
CFS facilities across the country.
APL Indias competitive advantage is
demonstrated by its superior ability for
air-sea shipments and land capability for
operating both truck and train services
on a pan-India scale.
APL India and APL Logistics India
together are able to provide more
operational flexibility and to enhance
the scope and scale of services offered
to pan-Indian customers. As a team,
these two entities provide customers
with inventory management capacity
supported by quick, efficient and
reliable intermodal services, which in
turn complements our Indian as well as
global ocean transportation and logistics
offerings.

How do you look at growth

of containerisation in India
and the emergence of hub ports
such as JNPT, Chennai and Cochin
(Vallarpadam)? Does it make easier
for APL and APL Logistics to serve
Indian markets?

Drewry Maritime Advisors report

suggests that India has witnessed
container growth in double digits in
the last 10 years, up until the economic
slowdown. Currently, the top three
ports JNPT, Mundra and Chennai
collectively control majority volumes of
Indias container traffic.
The emergence of more efficient ports in
India, both hub and direct, is a welcome
development for container-handling.
Bulk commodities, traditionally
shipped as non-containerised cargo,
are increasingly being transported in

Delhi to Chennai by rail, APL continued

to collaborate with CONCOR for train
services from Delhi to Haldia Port, again
an industry first. APL became the first
carrier to test South and East India ports
as gateways for hinterland cargo from
North India.
NOL, the parent company of APL and
APL Logistics (APLL), upholds the
Groups pioneering tradition in the
Indian market as the only company to
offer four key transportation models in

containers. The containerisation of

general cargo has increased substantially
in the last decade and is expected to
grow further.
In the absence of a strong hub port
in India, majority of the country's
containers are currently transshipped
through other ports, such as Singapore,
Colombo, Salalah and Dubai. Handling
these cargoes through an Indian transshipment terminal would result in costsavings.
As of now, ports such as JNPT, Mumbai,
Mundra and Pipavav on the west coast,
Kochi and Chennai in the south, and
Visakhapatnam in the east, offer good
potential for starting hub operations in
India.

Do cabotage regulations hamper

more extensive coverage of
Indian destinations?

With the relaxation of cabotage

laws, more feeder vessels would be
calling Indian ports at greater frequency
and with more efficiency, which will
be beneficial to Indian shippers and
consignees. In a market environment
with enhanced shipping services,
reduced cost and frequent sailing
opportunities, we believe more container
transportation will shift from road and
railway to coastal shipping.

Do you consider calling at minor

ports which have emerged
of late such as Mundra, Pipavav,
Krishnapatnam and Gangavaram?

APL calls at Mundra and Pipavav.

The details are as follows:

Mundra SRX service (Gulf & Redsea

sectors) and IAX service (US Sector)

the country Ship (APL), Supply Chain

(APLL), Rail (Indialinx) and Auto Rail
Carrier (APLL in collaboration with
Vascor).
In 2007, NOL started Indialinx to
operate as a Container Train Operator
(CTO) with world class IT solutions
to coordinate train and ship schedules.
APL was one of the only two carrier
companies to start train operations
in India. In 2012, APLL and North
American 3PL provider Vascor set

Pipavav SWX service (Far East sector)

and CIX China-India service
APL is monitoring opportunities in ports
such as Krishnapatnam, Kattupalli and
Hazira.

New port development in India is

focusing on deeper draft berths
to take in the larger ships that are
expected to cascade down to these
ports as mega container vessels
ply the Asia-Europe/Asia US routes.
In this context, what are the APL's
vessel deployment plans?

APL is fully committed to Indias

shipping and logistics industry and
we continue to innovate in order to
meet the needs of this market. As the
infrastructural facilities here become
progressively enhanced, we look
forward to making vessel deployment
changes as required.

Q
A

What are APL Indias focus

areas?

Our main focus lies in optimising

cost and operational efficiency, and
differentiating APL through quality
service in order to better fulfill shippers
needs.

Q
A

What is the outlook for the year

ahead?

Current rates reflect vigorous

competition for business among
carriers. The Industry has to get used to
rate volatility and the fact that the cycles
have become shorter. This reflects the
competitive landscape. As new tonnage
continues to arrive, carriers will have
to increasingly focus on improving cost
management, vessel efficiency, service
levels and offerings to stay competitive.

up a joint venture in India to provide

rail transport and yard management
for vehicles in order to meet the
increasingly complex needs of the
automotive supply chain in India.
The APL/NOL story in India traces its
roots to a legendary and iconic past, and
a rich history of entrepreneurship and
innovation. The story continues today.
(Compiled by Murali Krishna & Poroma
Rebello , APL India Pvt Ltd)
december 2013 / maritime gateway 35