Prospects of Coastal Shipping in India

India is emerging as a modern economy. The Government is committed to ensure that economy grows at 7 to 8 percent per year in a sustained manner over next decade. In order to realise this growth potential, the attention also needs to be given to development and modernisation of our economic infrastructure. To become globally competitive, utmost importance must be given for development of infrastructure in sectors like roads, airports, sea-ports, railways in general and maritime transport in particular.

Economic reforms in India have triggered a high rate of economic growth in the country and this in turn has led to an increase in transport demand. This demand is being met mainly by the rail and road transport systems.

In spite of a 7517 km coastline, dotted by 12 major and 185 minor ports, coastal shipping in India is playing a marginal role only in the transport system. With higher than average traffic growth is projected at several corridors, substantial capacity enhancement will be required over the next 10-15 years. This makes imperative the need to look closely at the potential of the coastal shipping transport systems to ease the pressure on surface transport modes and arrest the continuous damage caused to environment. It is estimated that the nation would save Rs. 15-20 billion through diversion of 5% of cargo from road apart from reduction in pollutants by 6% and savings in fuel .

Coastal Shipping (Short Sea Shipping) refers to the movement of cargo and people over water without crossing a major ocean. In the sea, we have an old medium awaiting revived use. A comprehensive strategic transportation plan, national and intermodal in its scope , is the need of the hour. Coastal shipping could complement, not compete with, trucking and rail and have to play an important role in the growing economy. Our goal should be to reduce the stress on road and rail and also on environment by diverting a sizable percentage of cargo moved by rail and road to coastal shipping. Minor ports, now underused, could enjoy all the benefits of a new economic development. A relatively modest investment in our nation’s coastal sea routes would bring substantial benefits by reducing burden on present transportation system, traffic congestion and pollution.