In a major boost to coastal shipping, the Singapore-based Ocean Network Express (ONE) will launch a new weekly service - Indian Coastal Express - connecting India’s West Coast and East Coast via Sri Lanka.
The introduction of the new ICE service will undoubtedly expand ONE’s service offerings and enhance its overall network in the Indian Sub-Continent region with transshipment hubs at Colombo and Mundra.
The ship will start from Mundra to Pipavav, Mangalore, Cochin, Colombo, Kattupalli, Visakhapatnam, Kattupalli, Colombo, Cochin, Mangalore and return to Mundra in the 28-day turnaround, the shipping line said in an advisory to the trade.
ONE’s ICE service will start on 23 October from Visakhapatnam.
Coastal shipping is cost-effective compared with road and rail and less congested. However, the ships need to go around Sri Lanka to link the two coasts, thus making it costlier.
In 2022-23, 151 million tonnes (mt) of cargo was handled via coastal shipping, up from 133 mt in the previous year.
Under the Sagarmala Programme, 75 projects worth Rs.2,985 Crore have been sanctioned for the development of Coastal Berths, Ro-Ro/Ro-Pax Jetties, Passenger Jetties, etc. Of these, 15 projects worth ₹849 crore have been completed.
The Centre had announced various measures to enhance freight movement through coastal shipping.
The Coastal Berth Scheme under the Sagarmala Programme provides financial assistance for the creation of infrastructure to promote the movement of cargo and passengers by Sea and national waterways.
Major ports offers a discount of 40 per cent on vessels and cargo-related charges to coastal cargo vessels. A priority berthing policy for coastal vessels has been notified to reduce turnaround time and improve their utilisation.
The Centre also offers reduction of GST on bunker fuels used in Indian Flag Vessels from 18 per cent to 5 per cent.
The projects for improvement in the first and last mile road and rail connectivity with all the major and non-major ports have also been identified for faster cargo movement. The Ministry of Ports, Shipping and Waterways is working with the Ministry of Railways and Ministry of Road Transport and Highways to implement these projects.