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Bengal Tiger Line: Taking the chartering route

Singapore: Feeder operator Bengal Tiger Line (BTL) defines the very essence of niche marketing. As a common feeder facilitator, it has managed to remain neutral in the industry, only carrying boxes belonging to the mainlines and NVOs, and operating only on feeder sectors.
In addition, the company refrains from direct ownership of vessels, preferring to go the charter route to avoid any conflict of interest with its part-owner, the Schoeller Group, which owns and operates more than 70 ships.
Nor is there any conflict with Hamburg-headquartered Passat Shipping, which operates three 2,700 teu feeder vessels owned by BTL’s founding partner, Joachim Von Der Heydt, who has since moved to Singapore as executive chairman.
“We have some 35 scheduled vessels, of which just 15 are directly chartered in,” says BTL’s managing director Bill Smart, who joined the company as owner’s representative in Singapore in 1990.
“We have a range of feeders, from 600 teu carriers to 2,700 teu vessels. India forms our core business, and we run services all along the country’s eastern coast. We handle about 900,000 teu per annum, using the hub ports of Singapore, Colombo, Port Klang, Kaohsiung and Jebel Ali.”
The very concept of the company’s name came from the golf expression “tiger line”, and the fact that its main area of operation is the Bay of Bengal.
“That is how we became Bengal Tiger Line,” says Smart. “The name has really worked very well for us, and is an easy one to associate with. The tiger is a well-known, friendly symbol for us to use, and has helped us immensely in our marketing efforts.”
The carrier has never really gone well up the Indian west coast, mainly because of its perception of Jawaharlal Nehru port at Nhava Sheva as a hub for mainlines, and therefore, not much of a feeder market. Its coverage on the west coast is restricted to Goa, New Mangalore, Cochin and Tuticorin.
Feedering along India’s east coast poses its own challenges. “Draught plays a significant part in our operations onto the northeastern coast of India,” says Smart. “In the winter season, the draught drops to below 6 m at Kolkata; and that restricts the tonnage we can operate there.
“We take shallow-drafted vessels up the River Hooghly, and it can be pretty challenging because there are still antiquated lock-gate systems left behind from the colonial days. There is a mixture of mobile harbour cranes and self-sustaining vessels where approximately half of those working at Kolkata are geared.”
During shipping’s long recession, the company had its hands full keeping its nose above water.
“We looked at all the services we had, and rationalised where possible, to ensure that we were not over-deploying capacity,” says Smart. “That is the biggest problem in the industry – ensuring correct deployment so that the right balance is maintained between supply and demand.”
Apart from Singapore where it is now Headquartered, the company has been using Colombo as a regional transhipment hub, mainly because the Sri Lankan city has stayed ahead of the game, and created plenty of capacity in recent times.
“The basic infrastructure in Colombo has improved dramatically,” says Smart. “The port is a vision for the future, not just for the next five years. Sufficient capacity is being created to help Colombo retain its status as a significant regional transhipment hub for the next 25 years.
“Unfortunately, India missed a trick there. They talked about Vallarpadam for many, many years, but it was too slow off the blocks. It would have been nice to have had another base on Indian shores.” [23/01/15]

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