Lack of an integrated transport policy to promote inter-modal coordination and unavailability of concessional finance to acquire coastal vessels are some of the key challenges faced by coastal shipping in the country, says a background paper on the Indian maritime sector.
The paper, prepared by Deloitte, also lists cumbersome customs procedures, lack of quality manpower, high import duties on bunker oil and spares as other major stumbling blocks for the growth of coastal shipping here.
The study further says that there is a need for development of dedicated ports or at least dedicated berths for coastal shipping, minor ports, grant of infrastructure status, and last mile hinterland to port connectivity. It also suggests that there must be one minor port at a distance of every 100 km, along the coast, besides setting up dedicated berths for coastal ships. There must also be adequate ship repairing facility and dry-docks along the cost for catering to the growth of coastal shipping.
LNG supply, dedicated warehouses, rail and road connectivity at the ports to the nearest rail heads and deepening of sea channels at minor ports are also suggested.
Reiterating the need for facilities in ports, the study says, the new generation vessels (with a capacity of of 6,000-14,000 TEUs) would require drafts between 15 m and 15.5 m.
Due to current draft restrictions, several Indian ports are unable to handle larger vessels typically with more than 9.5 and 12.5 m draft. This could lead to shipping lines and large shippers moving to other ports.
Therefore, there is a need to firm up dredging plans and also improve productivity through removal of constraints such as inadequate infrastructure, absence of seamless connectivity with other modes.