Shiipping

It has a land frontier of 15,200 km (9,445 mi) and a coastline of 7,517 km (4,671 mi).
[4]
Whoever controls the Indian Ocean, dominates Asia. This ocean is the key to the seven seas in the twenty first century, the destiny of the world will be decided in these waters". Economically speaking, water has always been the oldest and most sustainable resource to man. Trade through water can be divided into: Inland Water Transport (IWT) Shipping (Coastal Shipping & Overseas Shipping)
Coastal shipping is the movement of cargo by sea between ports in India, not including the non-contiguous island trades.
COASTAL SHIPPING VERSUS ROAD AND RAIL TRANSPORTATION Coastal shipping has inherent advantages over rail and road transport. It is environment friendly, and usually much safer than road transportation. Fuel Consumption: Fuel consumption by coastal shipping at 4.83 g m/tkm is just 15% of the consumption by road and 54% of that by rail. Emissions: Emissions of carbon dioxide, carbon monoxide, hydrocarbon etc with the exception of SO2 from coastal shipping are much lower than that in rail and road. Cost of Carriage: Coastal shipping can handle large parcel sizes easily. Whereas rail and road transport because of their limited capacity and infrastructure cannot handle large quantities of coal, iron ore etc. The cost of carriage of goods, from coast to coast, by coastal shipping (about 21% of cost by road and 42% of cost by rail) works out to be much lower than that by road and rail. External costs: Taking in account the external costs arising out of accidents, noise pollution, air pollution, climate change, congestion, infrastructure burden etc., the cost of coastal shipping as a percentage of road and rail transport is much lower. In the EU, the marginal costs of coastal shipping have been estimated at 20.7% and 40.5% of road and rail respectively. Some of the key reasons for the inadequate share of coastal shipping to the trade activities are: Competition provided by rail and road transportation Double handling costs involved and Lack of active policy Cumbersome and lengthy customs procedure Non availability of concessional finance the acquisition of coastal vessels High import duties on bunker oil and spares High manning scales which increase operational costs Stringent specifications for construction of vessels leading to higher capital costs Incidence of corporate for coastal as against tonnage tax for ocean going vessel and Personal income tax, which discourages quality officers from continuity on India coastal vessels. Lack of separate berthing facilities at Major ports and inadequate cargo handling facilities at the minor ports Absence of institutional mechanism for inter-sector coordination
WHAT CAN COASTAL SHIPPING OFFER Tremendous cost-advantages to Indian trade Immense benefits of energy savings to the country's economy,
Boon of a cleaner and greener environment offered to society at large, Boost transshipment at Indian ports Enhance competitive edge of Indian exports Increase port's potential to develop as hub-ports Increase revenues and opportunities for generating both direct and in-direct employment. Catalyze the development of an efficient and integrated transport and logistics system.
In cases of cargoes like coal and iron ore, large quantities are required to be transported, which cannot be handled by road or rail modes because of their limited capacity and infrastructure. For instance, Indian Railways probably would not be able to supply the 20,000 tonnes of coal required by Tuticorin thermal power plant in such a short span of time as two days. Ships, on the other hand, can handle such large quantities easily
COASTAL SHIPPING A GOLDEN OPPORTUNITY Looking at the inherent advantages in the coastal shipping sector, the urgent requirement is to promote the growth of the sector. Holland provides a fiscal incentive equivalent to the freight cost incurred in coastal transport. Similarly, government should consider allowing a credit of say of about 150% of actual freight cost in calculating the taxable income of the consignor company on the lines of the tax benefit provided for R&D in the automobile industry in the recent budget. In financial terms, the loss of revenue to the government would be more than off set by the savings in cost of oil imports and in overall external costs. Coastal shipping is a new opportunity on the horizon for India's economic development. Coastal shipping's potential lies in transporting less time critical freight. It represents an environmentally beneficial and cost effective alternative to rail and road modes, for bulk cargo shipped over long distances. Also it does not require the same infrastructure investment or maintenance At the end of the day shipping is still the cheapest way to run large volumes of cargo long distances by a mile. You do not have to construct a highway. You have to have a channel but once you get out to sea it is blue water. You do not have to maintain anything, apart from your channel.

Shiipping

Uploaded by

Copyright:

Available Formats

Shiipping

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Shiipping

Uploaded by

Copyright:

Available Formats

It has a land frontier of 15,200 km (9,445 mi) and a coastline of 7,517 km (4,671 mi).

You might also like