Coastal shipping scenario in india
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Transcript of Coastal shipping scenario in india
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.
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
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.
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
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.
Comparison between different modes of transportation:
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Coastal Shipping
Rail Road
Accidents
Climate Change
Noise
Infrastructure
Pollutants
Congestion
Coastal shipping versus road and rail transportation: Fuel Consumption
Emissions
Cost of Carriage
External costs
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%)
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
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
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
Research Design: Descriptive Research
Former researches are used as references for understanding the current scenario
Data Collection: The research is based on secondary data:
Internet
Journals
Conferences
Books
Magazine
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.
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.
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.