The port of Chennai has gained a new roll-on, roll-off (ro-ro)
service to Mongla, Bangladesh, as a coastal shipping agreement between
India and Bangladesh continues to pay off.
The
service, which could save save Indian automakers a great deal on transit times
and logistics costs for their exports, will help Chennai offset the tonnage
lost from lower container volumes as a result of intense competition on India’s
east coast and past issues with truck turn times and port productivity.
“Transport
through the sea route will save about 15 to 20 days of travel time. Besides
saving time, coastal transport will be more cost effective and environment
friendly,” said Indian Shipping and Transport Minister Nitin Gadkari.
The
maiden sailing by the MV IDM Doodle had 185 trucks from Ashok Leyland, a
leading heavy vehicle manufacturer in the country.
The
minister also exhorted all domestic automakers, which have lately made Chennai
their manufacturing and exporting hubs, to use coastal shipping services for
their Bangladesh-bound vehicle exports rather than over-the-road routings
fraught with congestion at border points.
Ashok
Leyland currently exports about 12,000 heavy vehicle units to Bangladesh, Sri
Lanka, and various countries in Africa, and it is expected that such movements
to Bangladesh and Sri Lanka will grow significantly in the coming years.
Roughly 500 trucks per month are expected to move by sea.
The
coastal shipping agreement, signed in June 2015, removed regulatory and
bureaucratic hurdles to maritime trade between the two nations that previously
relied on transshipment options at the ports of Colombo, Sri Lanka, and
Singapore for the movement of cross-border freight. That cooperation is already
proving a boon for Indian east coast ports that have limited hinterland cargo
potential compared with their west coast peers.
The
deal classifies all freight transported between ports in India and Bangladesh
as “coastal traffic” with a 40 percent concession on charges related to cargo
and vessels, whereas for movements by ro-ro vessels, such concessions amount to
as much as 80 percent at Indian ports. To attract more short-sea ship operators
to the sector, the two sides also agreed to allow “river sea” category vessels
for coastal operations.
“Initiatives
like this are aimed at providing innovative logistics chain solutions
under Sagar Mala. The ultimate objective is to save logistics costs and
time of transportation,” the Ministry of Shipping said.
Those
efforts are slowly but steadily producing positive results, as the privately-operated
Krishnapatnam port has handled several ad-hoc sailings to and from
Bangladesh since early last year.
As
a result, India’s exports to Bangladesh during fiscal year 2016 to 2017 are
said to have reached $6.8 billion, a gain of 13 percent year over year, with
two-way trade up 11 percent to $7.5 billion in the same year.
Hoping
to accelerate those gains, Indian authorities are also setting up new
infrastructure for coastal operations at Jawaharlal Nehru Port Trust and
Karwar.
Source : Joc.com
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