Monday, October 1, 2012

How do containers hold together on-deck ?


 
The containers on-deck is secured to each other by means of TWIST LOCKS and lashing rods. The twist lock is designed for very close tolerance and very rough use and is consists of two sets of rectangular projections, one at the top and other at the bottom. 

How it work?
 
Four twist locks are inserted to the four corner castings (small rectangular holes) of a container and the next container will be placed on top in such a manner that the corner castings of the second container fit into the upper rectangular part of the twist lock. After that , the lock is twisted or turned by 90 degrees. In this position the width of the rectangular projection is more than the width of the hole and hence cannot be removed.

Wednesday, September 26, 2012


 
Iacocca – An Autobiography by Lee Iacocca with William Novak is one of my favourites !  I’m sure that this record breaking bestseller by the author of TALKING STRAIGHT, will be enjoyed by all his readers. A must read for all management students and those who are headed for a business career....  

Lee Iacocca , the son of Italian immigrants , is  an American legend.  He  is a straight – shooting , fast talking , blunt, practical  business man - the man who made his mark by giving results ! His name is the symbol of integrity, ‘guts’ and know-how. He is one of the great success stories of the decade. A genuine hero...a leader.

Beginning his career at Ford as a trainee,  he rose spectacularly through the ranks of Ford Motor Company and became its president. Iacocca successfully developed many automobiles at Ford, including the Ford Mustang. After 32 years of his employment with Ford , 8 years as President of Ford , he was fired ! Ford was his first and only employer till that date, he had never worked anywhere else. The power play which toppled him would have shattered him, but he didn’t get mad , he got even.

Iacocca was not without a job long , Ford’s loss was Chrysler’s gain . Iacocca ,as the chairman of Chrysler Corporation, was instrumental for the miraculous rebirth of Chrysler from near  bankruptcy to the most envied of the Big Three automakers of America.

His book , IACOCCA – An Autobiography , is a profile of a strong-minded corporate chief. Many people admire him for his marketing savvy and management expertise. This book is his success story, about his breath taking career. Iacocca reads like he talks – plain and straight. This book gives lots of management tips on industrial policy, labour costs, auto safety etc.

In the "Opening Word"  Mr Iacocca explains why he has written this book , Not to become famous , (he was  already famous than he ever wanted to be), Not to get rich , Not to get back at Henry Ford for firing him ( he did it in the marketplace by fighting it out in the old fashioned way) But to set the record straight, to tell the story of his life at Ford and at Chrysler the way it really happend !
 
Its vintage Iacocca....!

 

Sunday, September 2, 2012

The Ship

Why Ships ??


More than two thirds of the Earth’s surface is covered by water and naturally water transportation is the oldest mode of transportation.  Ever since man designed crafts to float on seas, goods have been carried between ports worldwide. The demand for ships is derived from the demand for the goods they carry.

Ships have been used for trade for thousands of years, but the present shipping business is the result of technology developments and practice established over the last 150 years. The invention of ‘iron’ and steam engine did wonders to shipping trade and caused eventual demise of wooden sailing ships. However, today the ships are powered primarily by diesel engines.

The ship

The ship is obviously the Fundamental tool for all commercially related shipping activities. There are two main parts to a ship – The Hull & the Machinery. Hull is the actual shell of the ship  including the superstructure where as machinery includes not only the engine required to drive it  but also the  generators required for lighting, refrigeration and other auxiliary loads.

Bows , Stern , Amidships, Beam

The front portion of the ship is called the fore end and the extreme forward end is called the bows. The vessel is said to be moving ahead when bows move first.

The rear portion / back end of the ship is termed the after end or stern. When moving stern first, the vessel is said to be astern.

The area between forward and aft portions of the vessel is called amidships. The maximum breadth of the vessel in amidships is called the beam.

The bridge of the vessel is the navigating centre. On modern ships the navigating bridge, machinery and crew accommodations are situated aft.

Bow & side thrusters, stabilizers

Modern vessels have transverse propulsion units in the bows known as bow thrusters. Many vessels have side thrusters fitted at the stern. Their purpose is to provide greater manoeuvrability in confined waters like ports and to reduce or eliminate usage of tugs.

Stabilizers are something similar to the fins of a ship, fitted in pairs deep below the water line. Their purpose is to reduce rolling of the vessel in heavy seas.

Types of Ships


Cargo ships are designed for carrying particular commodity or group of commodities. The type of vessel deployed on a trade route is determined basically by the traffic carried.

The Bulk Carrier
Dry bulkers are the simplest ship in terms of construction and it generally carries homogenous cargoes in bulk like coal , iron ore, grains etc. Depending upon the size of the vessel they can be termed as

  1. The Panamax  (50,000 – 79,999 dwt)- The largest size of ships that can be passed through the Panama Canal .
  2. The Capesize  (80,000-170,000 dwt) – too large for the Suez or Panama Canal .
  3. The Handymax (35,000 – 49,999 dwt) – Popular for smaller shipments of bulk cargo – ideal for smaller ports with limited facility

  1. The Handysize (20,000 – 34,999 dwt) – Ideal for ports of limited drafts and berth length. Suitable for grain Shipments .

 Tankers

These are vessels which carries liquid bulks. Oil tankers are used to transport crude oil from the oil fields to refineries and petroleum and fuel oil from refineries to distribution centres and bunkering ports. Hence tankers have a worldwide network routes.

Depending the size there are a range of oil tankers 

  1. ULCC (Ultra Large Crude Carrier 3-500000 dwt)
  2. VLCC  (Very Large Crude Carrier 1.5 to 299999 dwt)
  3. Suezmax (1.2 to 1.5 lakh dwt, could  transit Suez canal)
  4. Aframax (80,000 to 119999 dwt – used in clean product (aviation, motor spirit) trading
  5. Panamax (50,000 to 80,000 dwt , presumed to transit thru’ Panama Canal)

Container Ships

These are becoming increasingly predominant in many trade routes and they can carry a wide range of cargo in containers.  Container ships are ‘cellular’, which means that the vessel holds are fitted with vertical metal guides called ”cell guides” into which containers can slide and thus they are secured from any movement. Though below deck the containers are secured by cell guides, on hatch covers they must be lashed in order to prevent movement.

Ro-Ro Vessel

These vessels are designed for any type of vehicles. Ro-Ros have been designed with ramps in convenient position (stern,bows,side). Ro-Ro ships designed for carriage of new cars are called  Pure Car Carriers. The vessels designed to carry cars and trucks are called PCTS – Pure Care & Truck Carriers. Ro-Ros commonly have their capacity    measured in LANE METRS .  This measure gives an indication of     total length available for vehicles of     given width.

Combi Carrier

Combi carriers are unitized type of cargo carriers , combining Container and vehicular shipments, including   ro-ro . It has a versatile cargo mixture , can carry odd shaped cargo along with unitised cargo. These ships are suitable for a wide range of ports and hence in operation worldwide. A number of Combi carriers are introduced now

-To improve the ship turn-round time

- to improve the versatility of sea transport

- To minimize the operating cost

 General Cargo Ships

They are also called conventional vessels used for the carriage of diverse form of dry cargo. These vessels are almost disappeared due to Containerization . Most of the conventional vessels are Tween Deckers , ie, Ships with 2 or more decks . (“Tween” derives from “Between” , ie, decks between the uppermost deck and the ship’s bottom). This facility adds to the variety of cargo the vessel can carry.

Gas Carriers

The movement of gas, both Natural and Petroleum, is now a major trade in shipping industry. Both type of gases are carried in liquid form and of course both products need purpose built ships.

LPG carriers normally have cylindrical tanks made of aluminum alloys and are self supporting and free standing.LPG (Butane & Propane) can be kept in liquid form under high pressure at a low temperature. Modern LPG carriers are fitted with refrigeration equipment in order to maintain the temperature of the cargo. This helps to liquefy the vaporization during voyage or at discharge point.  

LNG has to be carried under very low temperature (-104 deg cen to – 163 deg cent) and at atmospheric pressure. The vessel has insulated spherical tanks protruding high above the ship’s deck to carry cargo. They are made of aluminium alloy , surrounded by insulation and protected by a steel outer shell. Tanks are connected to vessel’s hull but not a part of it.

Refrigerated (Reefer) Ships

Refrigerated ships or reefer ships are designed  to carry fresh produce. Development of reefer ships helped to trade meat resource of Australia & New Zealand. Reefer ships are also designed to carry non-refrigerated cargo too as reefer trade generally is seasonal and one way. These types of vessels are in decline due to development of reefer container trade.

Heavy Lift Ships

This is an emerging trade and is  used for the transportation of  indivisible loads . This is a risk market and generally is spot market  in nature with a reasonable return. Long term contract of such ships are found in oil contractors, fabricators and conversion yards.

Tuesday, July 31, 2012

How shipping industry adjust over supply to decline in demand?

During 2002-’04 the demand in container trade grew faster than the supply and hence the shipping companies placed new orders. The deliveries of new orders generally take 2-3 years to materialise and from 2006 onwards the industry has been experiencing faster supply growth compared to demand. This over supply resulted in considerable drop in freight rates , especially during 2008 - 2009.

Shipping industry has been hit particularly hard by the reduction in merchandise trade in 2009 resulted by the world economic crisis. Inspite of the downturn in demand, shipping capacity increased as vessels ordered earlier continued to be delivered during the recession period. As far as container trade is concerned, the fleet size is expected to grow further during the next 4 to 5 years, that too , most of the new vessels to be delivered are of 8,000TEU or more capacity.

How do industry adjust this over supply > demand decline crisis ? It has 5 ways to adjust its supply to a declining demand, though most of them are effective only in long run.


1. Stop ordering new tonnage – Compared to the year 2007 (538) and 2008 (213), 2009 saw only 9 new orders for container ships. For tankers new orders in 2009 stood at 153 (against 1,054 in 2007)  and 290 for dry bulks(against 2,060 in2007).

2. Terminate or postpone existing orders – Almost all shipping companies restructured, to the possible  extent, the order book in 2009. Many deliveries were postponed, cancellations were few.

3. Slow-Steaming – means that the speed of the ship is reduced so that it will be necessary to deploy more number of vessels to meet the same demand or to maintain the same frequency. This measure helps to maintain freight rates without laying off vessels and also saves bunker expenses considerably.

4. Temporarily withdrawing existing tonnage from the service – This indeed is another good measure to keep up the demand in a particular trade and to keep the freight rates from further slipping. During 2009-10, around 500 container vessels ( around 12% of the global container carrying capacity) idled at anchorages across the globe.

5. Demolish older vessels – Ship owners sell their older vessels as scrap metals. As the prices of scrap is very low, many ship owners preferred to hold on to their vessel than scrapping. However 2009 witnessed a surge in ship recycling / demolishing, China leading the market (34.5%) , followed by India (30.7%) and Bangladesh (24.8%).

Though drastic capacity reduction deployed on main trade routes, interestingly the fleet reduction was less drastic on major South-South routes, as trade among developing countries were comparatively less affected by the recession. This shows the positive role the developing countries are playing in the global economy recovery.

Sunday, July 15, 2012

CONTAINERIZATION OF DRYBULK

Presently, the containerization level of general cargo that can be containerised is only 68% in India against the international levels of around 80%. Further increase in containerisation of bulk cargo is expected over the next few years. it is to be noted that the share of liquid and dry bulk cargo has reduced from 94% in 2005-06 to 87 % in 2009-10. There has been an increase of 7% in the share of “Others” (food grains, automotive spares, automobiles, steel, cotton yarn, other containerized cargo ) due to increase in containerized cargo movement. This proportion is likely to increase as new technologies are getting developed for easy and economic filling and discharge of dry bulk cargo from the containers.

Dry Bulk cargo is generally transported in large quantities in ship's hold or in rail wagons. Smaller quantities of grains , sugar, cement, grains/seeds etc (still considered "bulk") gets packed in gunny/plastic bags before transporting to the destination. It is estimated that about 6.2 million bags are used per day for packing these materials. Containers can effectively be deployed for the movement of small to medium quantities of dry bulk cargo. This requires silos at both suppliers and receivers end and also some capital equipments. The overall economics prove that it is cheaper to handle dry bulk in containers than in bags or bulk , especially for domestic logistics .


Few techniques used by M/s Scorpio Engineering Pvt Ltd, Bangalore is shown below. For more details you may please contact them .
 





Friday, June 29, 2012

Conference on "Coastal Shipping, Inland Waterways & Surveillance” on 23rd Jun 12 at Hotel Le-Meridien,Chennai — Confederation of Indian Industry










                                                                                                                                                               




The presentation is uploaded here http://ametuniv.academia.edu/AshaPillai/Talks and is based on below posted text.

Monday, June 25, 2012

Rising Containerization – Driving force for Coastal Shipping

 
Abstract:

Huge waves of changes have been taking place in the shipping industry, particularly in the container shipping trade, globally and in India too. The container made shipping economical and changed the shape of the world economy. How much the container matters to the world economy and therefore to the Indian economy is impossible to quantify. Containerization, multimodal transport services, advanced marine engineering technology and computerization have made sea transport a prime mode for movement of internationally traded goods.

As container shipping became intermodal, with a seamless shifting of containers among ships, trucks and trains, goods started moving in a stream, from Indian factories directly to the retail stores in the USA and Europe. How much did it cost to send 1,000 men’s shirts from Tirupur to Chicago in 1955 and how did that cost change due to containerization today? The data do not exist. Surely, containerization reduced the cost of moving goods considerably. In the present globalized economy, container is at the centre point of a highly automated system for moving goods from anywhere to anywhere, with minimum cost and complication.

Coastal shipping, which has a vital role to play for the development of Indian economy, has become more than just a fringe issue today. It has become a topic deserving wide attention and action. This paper outlines the current status of coastal shipping in India, provides an overview of coastal traffic, explains how containerization serves as a driving force for coastal shipping and suggests ways and means to enhance coastal shipping in India. This paper throws some light on the huge potential of containerization in India and offers a turning point in the coastal shipping debate.

A Snap Shot of Indian Coastal Shipping

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. At present this demand is being mainly met by the rail and road transport systems. About 50-55% of the freight traffic is carried by road , 30-35% is by rail and only about 7% by coastal shipping.


Indian seaborne trade has been growing at a rate of over 11% in the last 10 years. However, the Indian tonnage is not growing in pace with the fast growing maritime trade. As on 31st March 2011, India had 708 vessels under coastal trade and 347 vessels under overseas trade totaling to a fleet size of 1055 ships (source INSA report) with a 10.36 million gross tonnage. In terms of fleet size, the Indian shipping industry makes only a marginal share of just about 1% of the global fleet.

Though coastal vessel number increased from 244 in 2001 to 708 in 2011(as on 01.03.2011, source INSA report), actual number of cargo carrying fleet is very small. The major percentage of fleet comprises of passenger – cum – cargo vessels, passenger vessels, dredgers etc. As per INSA report, around 52%of the Indian shipping fleet are over 20 years of age and overdue for replacement.



Government of India has envisaged an ambitious plan to grow the Indian shipping fleet from 10 million GT to 40 million GT by the year 2020. Despite the global downturn, Indian domestic trade is expected to remain strong and coastal shipping would retain its strong potential.

Cargo Traffic – An Overview

Four traffic segments viz; containers, coal, iron ore and petroleum, make up 80% of India’s port traffic.Though the POL product has the highest share in coastal traffic , it is to be noted that the share of liquid and dry bulk cargo has reduced from 94% in 2005-06 to 87 % in 2009-10. There has been an increase of 7% in the share of “Others” (food grains, automotive spares, automobiles, steel, cotton yarn, other containerized cargo ) due to increase in containerized cargo movement. This proportion is likely to increase as container traffic grows with increasing diversification of India’s trade basket.




Presently, the containerization level of general cargo that can be containerised is only 68% in India against the international levels of around 80%. Further increase in containerisation of bulk cargo is expected over the next few years. Impressive growth rate of about 22% (excluding 2008-09) in container traffic is evident from the following table. This increased penetration of containerization is expected to push domestic traffic volumes to higher levels.

                                         Source : Maritime Agenda 2010-2020


As per the below container traffic analysis chart , container demand in India is forecast to grow about 21 million TEUs by 2020.



Containerization has been growing steadily in coastal shipping , an increase of 3.2% from FY04 (14.8%) to FY10(18%), and is one of the key trends expected to drive Indian coastal shipping to higher levels.

Containerization – Emerging opportunities.

Globalization and trade liberalization coupled with developments in transport, logistics and communication technologies have stimulated a noticeable shift in manufacturing activities towards countries like India. Booming automobile industry, increasing industrialization, growing project cargo moves for power and construction sector , port development and retail trade reforms are expected to give a thrust to the fast growing container traffic in India.

1. Automobile Industry

Trade liberalization attracted foreign auto giants like Hyundai, Nissan, Scoda, BMW etc to set up their production facilities in India. Containerisation of goods ( spares, semi-finished and finished products) is the key technology in making multimode transport in supply chain more effective and efficient. As the Indian automotive sector is booming like never before, the relevance of logistics and the supply chain have become all the more important.


                                                     Source – ACMA

The just-in-time manufacturing strategy (supplier makes the goods only when the customer needs them and then ships it in containers, to arrive at a specified time) adopted by the automakers stimulate containerization in the auto industry. Also the increasing usage of containers for the movement of automobiles to dealers across the country is another potential area for coastal traffic.

2. Retail Trade reforms

India’s growing domestic market is one of the major strengths for containerisation. The India Retail Industry is gradually inching its way towards becoming the next boom industry and there is great potential for the organized retail industry to prosper in India. In November 2011, Government of India announced retail reforms for both multi-brand stores and single-brand stores and these market reforms expect to pave the way for retail innovation and increased domestic container traffic.

3.Increasing Industrialization

India is becoming the most preferred destination for manufacturing outsourcing in the world, offering greater potential for containerisation. The growing industrialisation in India will boost containerisation in the country. Original equipment manufacturers (OEM) such as Samsung and LG Electronics and electronics manufacturing services (EMS)providers such as Solectron, Flextronics and Jabil already have well-established facilities in India.

For modern production processes, components of goods are often produced as semi-manufactured goods, re-exported in containers and assembled into final products. These final products may also be exported in a container. The growth in semi-manufactured goods and the use of transhipment has thus helped container throughput to thrive in recent decades.

4. Increase in project cargo movement

The sunrise industry within the logistics sector is the movement of Over Dimensional Cargo (ODC) commonly termed as project cargo. It involves movement of uneven-sized machinery and material in special equipments like open top and flat rack containers.

Project cargo movement is rising in industries like power, oil and gas, mining etc. Government’s decision to attain self-sufficiency in power generation has resulted in the sanction of power plants to be set up across the country. For instance, 34 hydro-electric power plants are being set up in the state of Arunachal Pradesh and it presents huge potential for movement of project cargo on the National Waterway 2 (NW-2) from Kolkata to the hinterland of Arunachal Pradesh. In addition to this, organisations across the country are expanding their capacity and building new plants, thereby giving thrust to the domestic ODC movement.

5. Development of Transhipment terminals

The commissioning and successful implementation of India’s first International Container Transshipment Terminal at Vallarpadam and the proposed Vizhinjam International Transshipment Terminal are expected to catalyze the growth of coastal shipping further as container volumes are projected to grow much higher from all Indian ports. Presently about 70% of the Indian containerized cargo is getting transshipped at Colombo, Dubai, Singapore and Salalah. The strategic location of transshipment terminals makes them ideal for the inter-coastal movement of domestic Indian containers through coastal shipping.

The Growth Drivers

While the challenges facing the container industry may be significant, a number of opportunities are also emerging. New arteries of growth are opening up and more value added services are being packed into containers. The potential is big and many industry players are aware of it.

1. Indian container vessels for coastal traffic.

The level of world fleet had gone up in 2009 with the world merchant fleet exceeding 1 billion dwt . The fleet of container ships increased by 11.9%, reflecting the growing share of traded goods being containerized. According to “Containerisation International” April 2012, the world fleet of container ships as of now stands at 5,036 ships for 15.6 TEUs.

                                           Source – Alphaliner Report

Whereas only 16 Indian container vessels as listed below with about 22,000TEUs capacity are available for coastal run at present. (Source :- (Draft )Report of Sub-Group No.VI on Infrastructure to Support Coastal Shipping, Cruise Shipping and Development of Ship Repair, page.11) which is not sufficient to cater to the projected container traffic, domestic as well as transshipment .



Sufficient Ro-Ro or Lo-Lo services , which can carry trucks from one port to another to reduce the cost of double handling, are also not available along the Indian coast at present . Introduction of such efficient multimodal transport system will make coastal shipping more attractive.

2. Cabotage policy relaxation

The cabotage restriction has an adverse effect on the growth of India’s first and only transhipment terminal, ICTT-Vallarpadam, which is in its infancy. This is a classic example of the necessity of relaxing the existing Cabotage restrictions for the promotion of shipping trade in general and coastal shipping in particular.

When the coastal container trade is open to international competition , it would create an enabling environment for faster growth of transshipment traffic. The volume of container traffic handled at Colombo for the calendar year 2011 is 4.2 million TEUs of which about 72% represent transshipment cargo. Of this, about 70% (1.99 million TEUs) per annum is transshipment from Indian Ports, and out of which, 60 % (1.19 million TEUs) is to and from South Indian Ports; which could be the potential business for ICTT Vallarpadam. ( Source – Report of Parliamentary standing committee on transport , tourism & culture ,107th report on modernization of Major ports PRESENTED TO THE RAJYA SABHA ON 11.08.2011).

With the relaxation of cabotage law, more number of feeder vessels would be calling at Indian ports with greater frequency and efficiency which in turn will be beneficial to Indian shippers and consignees. In a market environment with enhanced shipping services, reduced cost and frequent sailing opportunities there will be greater chance for transport mode change of containers from road and railways to coastal shipping.

3. Minimize equipment imbalances and repositioning cost

Similar to the international container shipping industry, Indian industry too face serious trade imbalances and equipment storage, repositioning issues. To minimize the port / depot congestion and the equipment dwell time, carriers are forced to make logistic vessel calls to evacuate the excess equipment. Due to insufficient port / depot infrastructure and poor logistics management strategies , the whole process of evacuation used to be cumbersome , time consuming and expensive. This situation demands for an empty container management strategy which rationalizes the repositioning, storage and maintenance of empty containers. The problem of trade imbalances and repositioning of empty container will continue to be a serious transportation logistics issue.

As per the existing regulations, foreign marine containers are not permitted to use for coastal traffic. Relaxation of this rule would result in greater use of idling international containers in domestic service and this could considerably reduce the logistics cost of both overseas and domestic carriers. Availability of sufficient equipment at the right place at right time surely will boost containerization in domestic traffic.

4. Creation of adequate Container Freight Stations and warehousing facilities

CFS is an off dock facility located near the servicing ports which helps in decongesting the port by shifting cargo and Customs related activities outside the port area. Modern and technologically advanced CFSs play a significant role in effective custom clearance activities in the port, and thereby shorten the turnaround time of ships. More CFSs need to be developed in the vicinity of export clusters across the country to promote containerization.

Warehousing and storage is also an integral part of the logistics industry and plays a very important role in the shipping industry. With an increasing number of ships calling at Indian ports, storage and warehousing facilities need to be upgraded manifold. Domestic ports suffer from inadequate storage facilities, which result in delay in consignment delivery.

5. Promotion of Multimodal Transport System

Multimodal transport, which is an integral part of supply chain management, refers to the transportation of goods using more than one mode of transport in an integrated and seamless manner from the origin to the destination. Containerization of goods is a key technology in making multimode transport in supply chain more effective and efficient. Also, the Indian shipping companies now offers an end- to- end logistics solutions and a well developed intermodal transport system is an absolute necessity for the seamless movement of containers.

6. Creation of Multimodal Logistics Parks

Another trend has been the establishment of multi-modal logistics parks. These multi-modal logistics hubs have been planned to provide total transport solution and other value-added services to industry in and around the dedicated freight corridors.

Each logistics park will have a container terminal for both domestic and international operations, specific commodity handling terminals, storage and distribution as well as transhipment facilities, cold storage and product-specific warehouses as well as hotels, banks, food parks and entertainment centres. Such trend would open up new avenues and opportunities for manufacturers, retailers, suppliers, and logistic players to improve their supply chain. It may be mentioned that Indian railways have identified 11 sites in the Delhi-Mumbai corridor for developing multi-modal logistics parks.

End Notes – Coastal Shipping nourishes a new nation.

Despite having a rich and proud Maritime tradition and a long coastline of about 7517km studded with 13 major and 185 Non-Major (Minor / Intermediate) ports , the potential of coastal shipping has not yet been fully exploited in India. Though coastal shipping has evident advantages over the land based modes of transportation, it has not yet become an integral part of the country’s transport infrastructure. The cargo carrying capacity of ships, is several times greater than that of rail wagons or trucks and therefore, coastal shipping offers the benefit of low transport and operating & logistics costs to the trade and industry.

The importance of maritime transportation in the economic development of the country can be seen from the fact that 95% of India’s EXIM trade by volume and 77% by value, moves by sea. At present Indian seaborne trade constitutes only 3.66% of the global seaborne trade and with the kind of projections mentioned, it can reach a significant 9.3% by the year 2020. Coastal shipping has a significant role to play in supporting Indian economy to achieve this ambitious target.

As observed, the future of maritime trade is expected to be containerized cargo and there will be intense competition for a share of this market between the East and West Coast ports and the regional ports themselves, which would be advantageous for coastal shipping. The coastal trade, especially the container shipping sector, should be thrown open to international companies for the benefit of the EXIM trade as competition is expected to bring in service reliability , quality, speed of delivery and cost reduction.

Shipping connectivity is an important determinant of trade competence. The time has now come for policy makers to rethink their development philosophy to focus on non-major ports, transhipment hubs, inland ports, transport corridors, IWT as well as coastal shipping. A net working of Sea ports, inland ports and CFSs are vital for the development of container trade.

The economic progress of India depends on the value addition of its trade, commerce and industry. A comprehensive and strategic transportation plan, national and international in its scope, is the need of the hour.
  
Coastal shipping has an important role to play in making our nation more economically competitive, our transportation networks more environmentally clean, and our nation’s infrastructure safe, secure and globally integrated.