India Needs To Develop Its Own Transshipment Hub

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The Narendra Modi government has released its cabotage strategy to dictate a set of laws on how goods are to be transported within the country (implying shipment from one domestic harbour to the other) in order to make India a trans-shipment hub. The cargo trans-shipment traffic of top Freight Forwarders is expatriated between a domestic port and an international hub port. In India, transportation routes are additionally priced for large dredging that the authority starts building India’s silted coastline approachable. It has certainly inflated the invitation cost for vessels of International freight forwarders. The average visiting charge for ships of 3,000 TEU in India works out to $32,000.

Port handling costs are extremely on the more expensive side in India. The logistics experts and Sea freight forwarders say that huge port tariffs are a grave interference to India to become a trans-shipment hub. In a worldwide scenario, container ship sizes have remarkably increased over the past years and most mainline vessels have capabilities of 10,000 TEUs or more. But huge vessels need deep-draught harbours of depth 18-20 metres to berth and depart containers. Few Indian significant ports, particularly those on the eastern coast, lack the primary draft and other foundation aptitudes to handle the advanced generation vessels. Import export agents usually produce their revenues by transferring and welcoming domestic freight routed via other harbours in the country. Approximately 25% of Indian Ocean cargo is trans-shipped at foreign harbours like Colombo and Singapore.

Apart from the first transshipment port in Cochin (Vallarpadam), now India has developed another trans-shipment port in Trivandrum (Vizhinjam). Meanwhile, the government has allowed the establishment of a third trans-shipment port at Enayam. Cabinet allowed the construction of a new important trans-shipment port at Enayam. The aim is to make India a destination on the global east-west Freight forwarder route. The estimated budget for the port building is around Rs 27,570 crore and the construction will be executed in three phases from 2017 to 2030. While building this port, 840-acre pieces of land from the sea will be reclaimed through dredging. 

The government’s step to permit international vessels to visit any Indian port and stock private cargo can double incomes of regional shipping lines. The vessels don’t have to pay tax to the government on generated revenue anymore. They will further be excused from the agreement with the prerequisites that mandate the leasing of Indian squad and directors and training of Indian cadets. These ships will be able to enjoy the advantages of lower charges of transportation fuel.

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