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 India's shipbuilding industry has grown rapidly, driven by a focus on modernization and sustainability. The sector is known for its advanced engineering capabilities and competitive manufacturing costs, catering to both domestic and international markets. With significant investments in technology and infrastructure, India is becoming a key player in global maritime construction.

Coastal Shipping in India

Unlocking Sustainable and Efficient Transport

Coastal Traffic of India Mantrana.png

Coastal Shipping in Indian Ecosystem

Coastal trade contributes to around 125 million tonnes or 8% of the total sea borne trade of India. It has become pivotal in connecting West Coast of India, East Coast of India and West Coast with East Coast. It’s playing pivotal role in India’s drive towards an integrated, multimodal transport system. Coastal shipping has reduced congestion on railways to a large extent and roadways to some extent. Presently, transportation of Coal, Iron Ore, Cement, Containers, etc dominate coastal shipping.​

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Government Initiatives to Boost Coastal Shipping: The Government of India desires to increase share of Coastal Shipping and has introduced Sagarmala Project to promote coastal shipping as a key component of the country’s logistics framework. Some of the initiatives under Sagarmala to promote Coastal Shipping include fiscal incentives, infrastructure development, and policy reforms aimed at improving port connectivity, reducing transit times, and creating a more favorable business environment for coastal shipping operators. The promotion of Ro-Ro (Roll-on/Roll-off) services and the development of dedicated coastal berths are some of the key initiatives that enhance the sector’s capacity.

Opportunities in Coastal Shipping: The coastal shipping offers vast potential for moving domestic cargo, particularly bulk commodities, Breakbulk and Containers.  Coastal shipping also presents significant opportunities for moving containerized cargo between domestic ports, which helps reduce pressure on road and rail infrastructure. Government of India desires to integrate Coastal Shipping with Inland Waterways to increase scope and reach of water transport. This, once successful, is likely to reduce congestion on existing Road and Railways. 

 

Integration with Inland Waterways: There is extensive efforts to integrate Coastal Shipping with Inland Waterways. It has been successful in states of Maharashtra and Gujarat. There was an unsuccessful effort to replicate this model on the East Coast as well for transportation of cargo on River Ganga (NW-1). National Waterways, if they could be integrated with coastal routes, offer a seamless logistics chain that connects deep hinterland regions with key coastal ports. There are projects evaluating cargo transportation using NW-1 to as deep as North India including Nepal. There exists possibility of achieving it only when the Rivers can be deepened to allow large riverine barges/vessels to ply. 

 

Challenges and the Path Ahead: While coastal shipping offers clear benefits, it faces challenges such as inadequate last-mile connectivity, infrastructure limitations at smaller ports, and regulatory hurdles. Government of India has directed Government owned Major Ports to construct a dedicated Jetty/Berth/Terminal outside custom bond area for handling Coastal Cargo. This one small step has eased logistics cost, time and paperwork. Similar infrastructure at Private Ports and State ports would further help coastal shipping. There is a need to initiate several reforms and investments in modernizing port infrastructure creating a more favorable landscape for coastal shipping operators and stakeholders.

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How Mantrana Can Help

At Mantrana Maritime Advisory, we provide expert guidance to businesses looking to leverage the opportunities in India’s coastal shipping sector. From market analysis and feasibility studies to strategic planning and operational optimization, our team ensures that businesses navigate the regulatory environment and capitalize on emerging opportunities in coastal shipping. Whether you are a ship operator, cargo owner or investor, Mantrana offers tailored solutions to maximize your growth and success in this evolving sector.

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