Coastal shipping scenario in india

Coastal shipping scenario in india

2. Objective of Study:
Factors retarding the growth of coastal shipping in India

Policies and Incentives provided by government in order to
promote coastal shipping

Market trends for Indian coastal shipping

Forecasting the growth of coastal shipping in India.

3. Introduction:
Coastal trade consists of the transport of cargo & passengers
through sea

Typical cargoes mainly include, cement steel, coal, scrap, oil
products, grain, fertilizers, containers and passengers

Coastal Shipping refers to the movement of cargo via ships
between different ports along the coastline of India.

Coastal shipping in India is still in its nascent stage

4. Contd.
Coastal shipping in India accounts for a low share domestic cargo
moved by different modes of transportation.

The cargo moved through coastal shipping in India accounts for
only 6 - 7 % of the total local freight

The main advantages of coastal shipping includes alleviation of
congestion, reduction of air pollution, overall cost savings to the
shipping and a government or company.

5. Coastal shipping Advantage:
Tremendous cost-advantages to Indian trade

Immense benefits of energy savings to the country’s economy

Boost transshipment at Indian ports

Enhance competitive edge of Indian exports

6. Contd.
Increase port’s potential to develop as hub-ports

Increase revenues and opportunities for generating
both direct and in-direct employment.

Catalyze the development of an efficient and
integrated transport and logistics system.

7. Comparison between different
modes of transportation: 0
1
2
3
4
5
6
7
8
9
10
Coastal
Shipping
Rail Road
Accidents
Climate Change
Noise
Infrastructure
Pollutants
Congestion

8. Coastal shipping versus road and
rail transportation:
Fuel Consumption

Emissions

Cost of Carriage

External costs

9. Major contributors to the cost of
coastal shipping are
Handling costs (35 % - 50%)

Charter Hire costs (20% - 33%)

Port Dues (10% - 20%)

Bunker Costs (13% - 30%)

10. State wise coastal cargo breakup: 30%
22%14%
12%
7%
5%
5%
4%
1% Gujrat
Maharashtra
Andhra Pradesh
Tamil Nadu
Orissa
Karnataka
West Bengal
Kerala
Goa

11. Factors retarding the growth of
coastal shipping in India
Competition provided by rail and road transportation

Double handling costs involved and lack of active policy

Cumbersome and lengthy customs procedure

High import duties on bunker oil and spares

High manning scales which increase operational costs

12. Contd.
Stringent specifications for construction of vessels leading to
higher capital costs

Personal income tax, which discourages quality officers from
continuity on India coastal vessels.

Lack of separate berthing facilities at Major ports and
inadequate cargo handling facilities at the minor ports

Absence of institutional mechanism for inter-sector
coordination

13. Research Design:
Descriptive Research

Former researches are used as references for understanding the
current scenario

14. Data Collection:
The research is based on secondary data:

Internet
Journals
Conferences
Books
Magazine

15. Analysis:
Despite having advantage over rail and road transportation
coastal shipping is the neglected mode of transportation in
India.

Coastal shipping is an important arm of the transportation
system of any country as it has cost and environmental
advantages over other modes.

16. Recommendations:
A clear-cut policy for the development of an integrated transport
system needs to be evolved

Coastal ships have to pay duties on bunker oil. It increases the
cost of operation of coastal vessels. This duty should be removed
or decreased.

As coastal shipping is much more environment friendly and fuel
efficient than other modes of transport; it should be provided
tax concessions both for fuels and spares.

17. Recommendations Contd.
import duties on capital goods and spares should be removed.

Facilitative policy and supporting systems, rules and regulations
and procedures similar to those existing in leading maritime
nations should be implemented in India.

Government should grant special status to coastal shipping so as
to exempt it from Customs and other procedures that apply to
the bigger cargo-carrying vessels.