have a single unified ministry with a clear mandate to integrate coastal
shipping into a multi-modal transport system that would contribute to the
country’s larger development goals, said a white paper released by Mumbai and
Nhava Sheva Ship Agents Association (MANSA) at its 39thannual
paper submitted to the shipping ministry MANSA recalls the 2014 report
submitted by National Transport Development Policy Committee to the erstwhile
Planning Commission on this subject. While the government is now looking to
deliver on the multi modal aspect of that recommendation, it should not lose
sight of the unified ministry goal, the white paper said.
strategy should be to adopt a hub-and-spoke model for the logistics sector in
place of the present point-to-point mode,” the white paper said. The paper also
recommended continued privatization of Indian Railways container operations.
industry body, we believe in sharing our domain insights with the policy makers
and regulators and this white paper is part of our adopted process. The
transport and logistics sector are fundamental to the development of a country,
especially so in India where it is estimated to provide employment for 45
million people,” said Captain Vivek Anand, President of MANSA.
India spends 14.4% of its GDP on logistics compared to 8% by other developing
countries, as roadways constitute 60% of total freight carried in the country
followed 32% by railways and the rest by coastal shipping. Over 50% of the long
haul freight movement takes place on road, which is typically 25-30% expensive
than railways on long haul routes, the white paper said.
impetus on coastal shipping, Captain Anand said, “India’s geographical layout
is peninsular. So, if cargo were to move from Gujarat to West Bengal, the
distance by road is 2300 km and by sea is 8500 km. Unlike China, India’s
coastal shipping faces the issue of return cargo, which pushes costs up on one
way cargo and hence
needs to be subsidised.”
the cost benefit ratio in coastal shipping, the white paper pointed out that a
large cement player can transport 3500 tons of cement from Gujarat to Mumbai by
road through 350 truck trips and a turnaround time of seven days for 700 km.
Alternatively, a coastal vessel could do the 300 km trip along the coast in
just 24 hours saving time and money. Earlier, MANSA had also shared a white
paper on Master Plan for development of Indian Ports and Terminals and the same
was well received, Captain Anand said.