Indian bulk liquid trade to reach 510 mn ton by FY19: report

The Indian bulk liquid trade is expected to grow by 8-10 per cent over the next five years to reach 510 million tonne by 2018-19, says a report.
As per the Tata Strategic estimates, the Indian bulk liquid trade in 2013-14 was 316 million tonne.
There is a need to ramp up the storage and handling facilities of larger volumes and wider product portfolio, the report said.
Currently bulk liquid traffic is 400 million tonne, which is 40 per cent of overall traffic at Indian ports.
However, with only 18 per cent of berths dedicated for liquid bulk, these facilities are inadequate for the traffic.

This results in increase in vessel idle time at Indian ports, the report pointed out.

Inadequate hinterland connectivity and absence of multi modal transport options create a challenge in moving products inland and vice-versa.
It opined that the problem is accentuated for chemical products where safety and environment norms have to be strictly followed.
Most of the liquid bulk is transported by road although it is not the safest transportation mode.
Development of coastal shipping and inland water transportation would help in addressing these challenges, it said.
"The current penetration of coastal shipping in domestic cargo movement is only 7 per cent. This indicates huge untapped potential for cargo movement through waterways. Diversion of 5 per cent of the overall cargo from roads to water or coastal mode can result in savings of Rs 2,500 crore annually," Tata Strategic Management Group Practise Head - Chemicals and Supply Chain - Manish Panchal said.

There is an immediate need for capacity expansion and infrastructure upgradation at ports, it said.
The government should seek help from the industry to rework existing policies and regulations. This has been one of the limiting factors in accelerating growth of liquid storage and handling industry, it said.