India-Myanmar container shipping service launched

The Look East Policy of the Central Government got a boost with the launch of India-Myanmar container shipping service at Chennai port. The service, run by the State-owned Shipping Corporation of India (SCI), was launched by Shipping Secretary Vishwapati Trivedi.

This was a joint effort of three Ministries — Shipping, External Affairs and Commerce. While the feasibility report said that the service was not commercially viable, the service was launched looking at the strategic partnership between the two countries that has a bilateral trade of nearly ₹1,000 crore.

“SCI has the wherewithal to sustain the service in the long run. We cannot expect to make profits from day one. However, in a year’s time, we expect the service will be well received by the trade,” Trivedi said at the launch function.

The Government is looking at starting a similar service to countries such as Thailand and Vietnam as part of the Look East policy, he said at the launch function at the DP World Chennai container terminal.

The dedicated service was started with a commercial consideration but also as a friendly consideration to strengthen bilateral relationship between the two countries.

To begin with, the service will be every 15 days with plans to make it a weekly in future. From India, the export cargo includes cement while in the return direction it is mainly pulses. Once the service is successful, more private operators can chip in the sector, he said.

The service rotation will be Chennai, Krishnapatnam, Yangoon, Colombo and Chennai.

Trivedi said the Government wants to use northern Myanmar to reach in to Mizoram and other North-Eastern States using the Sittwe port. Located in the capital of Rakhine State in Myanmar, on the Bay of Bengal, Sittwe is at the mouth of the Kaladan River.

India has financed to build the deepwater Sittwe port as part of the Kaladan Multi-modal Transit Transport Project — a collaboration between the two countries to develop transport infrastructure in south-western Myanmar and north-eastern India.

Trivedi said as part of the Look East Policy, the Government will help the shipping industry in Bangladesh.

The industry there is very small but has lot of potential due to the vast coastline. Ships from the Eastern port of India can run regular shuttle service to Chittagong, he said. Like the European Union, which has a strong network of ports, the Government will take steps to have a similar arrangement with neighbouring countries such as Bangladesh and Myanmar, he said.