Govt to get ADB report on coastal shipping issues, remedies by December

Govt also discussing a tie-up to allow Indian cargo to go through rivers in Bangladesh territory

The Ministry of Shipping is expecting the Asian Development Bank (ADB) to submit a report on issues regarding coastal shipping and suggest remedies by December this year. 

The government is also discussing with the Bangladesh government a tie-up to allow Indian cargo to go through the rivers in the latter's territory to transport it from West Bengal to North Eastern States like Tripura, said a senior official from the ministry.   

Speaking to reporters on the sidelines of the CII Port Conclave 2018, organised by the Confederation of Indian Industry (CII), Kailash K Aggarwal, joint secretary of Ministry of Shipping, said, "We are trying to analyse various constrains commodity-wise. We have assigned a study to ADB to analyse each and every constraint and (are) trying to address the issues."    

Every alternate week, there is a discussion between the ministry and the ADB team and there are discussions with various stakeholders, boards, industries and ministries. The study is expected to be submitted by December this year.

The issues are diverse, including that warehouses may not be available at certain places, at certain places last-mile connectivity might not be there, and there might be a higher cost of handling at some locations. 

In absolute terms, the cost of transportation through Railway is around Rs 1-1.2 per kilometre per tonne, while by road it is around Rs 1 per kilometre per tonne, whereas the cost of transportation through water is 25-30 paise per kilometre per tonne.

"But the problem is that the multiple handling through water transport increases the cost. So we are looking at how to have the seamless connectivity between the consumer and the producer so that it doesn't face problem in moving through the coastal route also," he said.

The scope of the project is not only in India but also in other countries. For instance, if one transports material from West Bengal to the North Eastern States through rail or road, it is a very circuitous route. But if it could be transported through Bangladesh through rivers, it is very short and cheaper transportation.

"We are tying up with Bangladesh government to permit their rivers for transportation of our cargos to the North Eastern region. Discussions are going on," he added.

Coastal shipping would require some policy and infrastructure interventions. There should also be assurance on return cargo and some clarity on which cargo can be sent in return trips. 

At the beginning of the programme, around 85 million tonnes of cargo was moving through coastal shipping and the target by 2025 is to move more than 200 million tonnes of cargo through coastal shipping over a period of time. The Sagarmala programme, as such, will reduce the cost by Rs 350-400 billion per annum, which includes savings through coastal shipping.