Coastal Shipping: The Game Changer
Despite coastal shipping being around for quite a while, it was only recently that it had taken off, with Shreyas Shipping being the lone crusader, to make this mode operational. The sector has been garnering more attention and support from the government, following which it has witnessed considerable growth.
Recently, CONCOR, the Navratna PSU and market leader in providing inland transport by rail for containers has forayed into coastal shipping. After launching the coastal shipping operation from Kandla to Tuticorin via Mangalore and Cochin with their first sailing during January 2019, the services are fast expanding. Most of the coastal movement of domestic cargo happens on the west coast of India. The challenge is to move the cargo to the east coast of India.
Considering the inadequacies in the rail and road sector, in recent years, Coastal Shipping has become a major priority of the Government of India and has gained considerable ground following the relaxation of Cabotage rules combined with inducement initiatives such as tariff concessions and dedicated berth infrastructure for vessels operating in that trade. However this mode of transport is in its nascent stage and requires lot of sensitisation among stakeholders to create the necessary modal shift.
The debut edition of Coastal Cargo Conference offers a perfect platform for the government, logistics service providers and shippers to deliberate on the opportunities that coastal shipping unfolds and the challenges to be overcome to promote the modal shift.