Asia/Pacific News
India Seeks Funds to Promote Coastal Shipping
India's Shipping Ministry is seeking help from the World Bank's Global Environment Fund (GEF) to expand the domestic marine transport of goods, Indian newspaper the Hindu Business Line reports.
The Ministry argues that making coastal shipping more attractive would reduce road congestion and transportation costs.
The government proposal would include direct financial assistance and priority berthing facilities for coastal ships at government-owned major ports, where ocean-going vessels are now given priority.
"Getting a berth on time is a major issue hurting the coastal service now," said SK Shahi of coastal service operator SKS Logistics.
"Dedicated facilities at all major ports will help attract more cargo to coastal service and reduce the burden on roads."
Coastal shipping now accounts for only 7 percent of domestic freight in the nation, even though it is the most fuel-efficient mode of transport and has the potential to reduce costs by 50 percent compared with road transportation and 30 percent compared with rail.
Last year, Gautam Chatterjee, director-general of shipping, proposed offering duty-free bunkers and separate berths at major ports for coastal shipping as a way to increase marine transport of domestic goods.
