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2008 August 18   06:28

Cost advantage fails to help shipping in India

Despite having inherent advantage over rail and road transport, coastal shipping in India has always remained stagnant. Though coastal shipping is cheaper and environmental friendly when compared to other modes of transport, investments in this sector remained as low as one per cent, while the average investment in shipping was five per cent as against 51 per cent for railways and 32 per cent for the road sector. The industry has also been bleeding badly over the years due to adverse constraints and impediments like lack of infrastructure, inadequate facilities at port, shortage of officers, low productivity at ports, insufficient budget and lack of low cost ship repair facilities.
Another gloomy issue is that coastal shipping happens only in major ports and it does not take place in the minor ports.
In order to bridge this widening gap and progress ahead, the joint secretary from the ministry of shipping, Mr Rajeev K. Gupta suggested that a plan should be drawn immediately and an apex body should be formed to look at coastal shipping on a more aggressive mode. He also stressed on the need to have a dedicated coastal shipping rules and regulation in place.
Stating that shipping is energy efficient as fuel consumption for every ton-kilometer of freight carried is only 15 per cent of that by road and 54 per cent of that by rail he said, we need to look shipping as a part of supply chain.
India has a coastline of about 7,000 km with 12 major ports and 185 non-major or minor and intermediate ports.

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