“ C O A S TA L S H I P P I N G & I T S

A D VA N T A G E S I N T H E F I E L D O F
LOGISTICS”

G L O B A L S U P P LY C H A I N M A N AG E M E N T

GROUP NUMBER – 5
CONTENTS
• What is coastal shipping?

• Coastal shipping in India

• Why coastal shipping?

• Coastal shipping state wise in India

• Advantages of coastal shipping

WHAT IS COASTAL SHIPPING?
• Coastal Shipping means movement of goods in cargo from one coast to
other.

• It encompass the movement of cargo and passengers mainly by sea along

a coast, without crossing an ocean.

• Typical cargoes mainly include, cement steel, coal, scrap, oil products,
grain, fertilizers, containers and passengers.
 COASTAL SHIPPING IN INDIA
• Coastal shipping in India is still in its nascent stage.

• 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.
WHY COASTAL SHIPPING

Source – Times of India

COASTAL SHIPPING STATE WISE IN INDIA

Source - mospi.nic.in
 ADVANTAGES OF COASTAL SHIPPING
• Congestion free

• Fuel Efficient

• Environmental Friendly

• Large Parcel Sizes

• Lower Capital and recurring Investments

• Lower Transportation Costs

• Lower external Costs

CONGESTION FREE
• The road and rail network in India is presently facing capacity constraints at various stretches
leading to high congestion on these modes of transportation.

• With a coastline of around 7500 kms., coastal shipping in India would have no such capacity
constraints and has the capability to supplement the road and rail network and thus help
reducing the congestion.

• It is estimated that around Rs. 200-300 billion per annum is lost by the country due to road
congestion.
FUEL EFFICIENT
• As per the estimates in the table below, coastal shipping consumes only 15% of fuel for
transportation as compared to road and 54% as compared to rail.

Source- https://economictimes.indiatimes.com
 ENVIRONMENTAL FRIENDLY
• Coastal shipping is an environmental friendly mode of transportation as compared to road and
rail. The estimated emissions for freight transportation by these three modes are presented in
Table below

Source- https://economictimes.indiatimes.com
 LARGE PARCEL SIZES
• Coastal shipping is capable of transporting large quantities over long distance with ease as
compared to road or rail. Moving the large quantities by road / rail requires multiple vehicle / rakes
for the same amount of cargo. Table below shows the parcel size that each mode can carry in
single journey.
LOWER CAPITAL AND RECURRING
INVESTMENTS
• This implies that the development of facilities for coastal shipping would require comparatively
lower capital investment.The port and related infrastructure once developed, can be maintained
at minimal costs. In contrast, regular investments would be required for maintaining, widening,
and strengthening of roads.
 LOWER TRANSPORTATION COSTS

Road transportation proves effective for moving smaller parcels over a distance of around 250-300
kilo-meters. Transportation by rail is effective in moving cargo over a distance of around 300-1000
kilo-meters. However, the coastal shipping would be economical for moving large quantities even
over a short distance.
CONTD.
LOWER EXTERNAL COSTS
• The pollution, higher risks due to reduced safety and loss of human lives due to accidents on
road are suggested to be having higher costs as compared to coastal shipping.
• The discomfort and the stress experienced due to congestion and delays, also pose hazard for
health. As the roads pass through densely populated areas, transportation of dangerous goods by
road becomes riskier proposition.
• Coastal shipping eliminates this risk for human lives. Diversion to coastal shipping would ease the
traffic flow on the roads and may help in significantly reducing the loss of human lives due to
accidents.
• The estimated cost due to road accidents in India is pegged at Rs. 100 billion per annum.
CONTD.