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Coastal Shipping

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Coastal Shipping
Avalon Perspectives

2011
Uncharted Transport mode....
Coastal Shipping & Inland waterways Potential in India

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India’s Maritime Story
India is blessed with a long coastline of 7,517 km., dotted with 13 major ports and 176 non-major ports and a vast hinterland. India’s geographical setting has played a vital role in the progress of maritime activity Water way trade can be divided into Inland Waterway (IWT) and Shipping (Coastal & Overseas). The focus of this paper is primarily on Coastal Shipping and Inland Waterways.

India’s maritime EXIM trade has risen from 544 Mn T in FY 2006 to about 915 Mn T in FY 2011(E) @ CAGR of 11%. In comparison with the overall maritime trade growth, coastal cargo volumes are estimated to have risen by only 5% CAGR between FY06 and FY11E to touch about ~ 160 Mn T. In the past, the flow of bulk goods from west coast hinterlands to the east coast hinterlands always followed the coastal route. For instance, coal from Kolkata was carried in bulk on regular basis by coastal vessels to ports around the country right up to Kandla and Bhavnagar and salt in bulk was carried back to Kolkata either from Kutch ports or Tuticorin. Coastal shipping at a policy level has not received any significant impetus over the past decade because of which the competing modes of transport viz. Rail and Road have been predominant. Primarily the environmental friendliness, safety and cost efficiency makes waterway an interesting and attractive inland transport option as compared to road and rail. Globally, countries such as Japan and USA have realized the cost and environmental advantages of coastal shipping and the percentage of cargo freight moved by this mode is substantially higher as compared to India. Whereas India’s share of coastal shipping amongst modes of domestic freight transport is just 6%, it is 14% in the USA and 30% in China. In case of Inland water ways, share of this mode is less than

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