This document discusses coastal shipping in India. It aims to analyze factors retarding coastal shipping's growth, policies promoting it, market trends, and forecasts. Coastal shipping accounts for only 6-7% of domestic cargo movement. Major advantages include cost savings, reduced pollution, and congestion relief. However, factors like high handling costs, taxes, and competition from roads and rails have slowed growth. The document recommends tax concessions, simplified procedures, and integrated transport policies to promote coastal shipping in India.

2. Objective of Study:
 Factors retarding the growth of coastal shipping in India
 Policies and Incentives provided by government in order to
promote coastal shipping
 Market trends for Indian coastal shipping
 Forecasting the growth of coastal shipping in India.

3. Introduction:
 Coastal trade consists of the transport of cargo & passengers
through sea
 Typical cargoes mainly include, cement steel, coal, scrap, oil
products, grain, fertilizers, containers and passengers
 Coastal Shipping refers to the movement of cargo via ships
between different ports along the coastline of India.
 Coastal shipping in India is still in its nascent stage

4. Contd.
 Coastal shipping in India accounts for a low share domestic cargo
moved by different modes of transportation.
 The cargo moved through coastal shipping in India accounts for
only 6 - 7 % of the total local freight
 The main advantages of coastal shipping includes alleviation of
congestion, reduction of air pollution, overall cost savings to the
shipping and a government or company.

5. Coastal shipping Advantage:
 Tremendous cost-advantages to Indian trade
 Immense benefits of energy savings to the country’s economy
 Boost transshipment at Indian ports
 Enhance competitive edge of Indian exports

6. Contd.
 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.

7. Comparison between different
modes of transportation:
0
1
2
3
4
5
6
7
8
9
10
Coastal
Shipping
Rail Road
Accidents
Climate Change
Noise
Infrastructure
Pollutants
Congestion

8. Coastal shipping versus road and
rail transportation:
 Fuel Consumption
 Emissions
 Cost of Carriage
 External costs

9. Major contributors to the cost of
coastal shipping are
 Handling costs (35 % - 50%)
 Charter Hire costs (20% - 33%)
 Port Dues (10% - 20%)
 Bunker Costs (13% - 30%)

10. State wise coastal cargo breakup:
30%
22%14%
12%
7%
5%
5%
4% 1% Gujrat
Maharashtra
Andhra Pradesh
Tamil Nadu
Orissa
Karnataka
WestBengal
Kerala
Goa

11. Factors retarding the growth of
coastal shipping in India
 Competition provided by rail and road transportation
 Double handling costs involved and lack of active policy
 Cumbersome and lengthy customs procedure
 High import duties on bunker oil and spares
 High manning scales which increase operational costs

12. Contd.
 Stringent specifications for construction of vessels leading to
higher capital costs
 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

13. Research Design:
 Descriptive Research
 Former researches are used as references for understanding the
current scenario

14. Data Collection:
 The research is based on secondary data:
 Internet
 Journals
 Conferences
 Books
 Magazine

15. Analysis:
 Despite having advantage over rail and road transportation
coastal shipping is the neglected mode of transportation in
India.
 Coastal shipping is an important arm of the transportation
system of any country as it has cost and environmental
advantages over other modes.

16. Recommendations:
 A clear-cut policy for the development of an integrated transport
system needs to be evolved
 Coastal ships have to pay duties on bunker oil. It increases the
cost of operation of coastal vessels. This duty should be removed
or decreased.
 As coastal shipping is much more environment friendly and fuel
efficient than other modes of transport; it should be provided
tax concessions both for fuels and spares.

17. Recommendations Contd.
 import duties on capital goods and spares should be removed.
 Facilitative policy and supporting systems, rules and regulations
and procedures similar to those existing in leading maritime
nations should be implemented in India.
 Government should grant special status to coastal shipping so as
to exempt it from Customs and other procedures that apply to
the bigger cargo-carrying vessels.