Now, inland vessels to carry out coastal trade

MUMBAI: In a measure that could further the growth of the country’s inland and coastal shipping activities, Directorate General of Shipping (DGS) is planning to allow entry of inland vessels on the coastal routes. The movement of inland vessels on the coast, however, would be restricted in order to maintain their safety, said senior DGS officials.

Capt SS Saggi, nautical advisor to the government of India, DGS, said a plan is being worked out to harmonise the use of inland vessels on the coast for short distances. Generally, inland vessels cost one-fifth (Rs 6 crore) the cost of a coastal vessel (Rs 30 crore). There are about 1,500 inland vessels currently operating in the country.

As per DGS’s plan, inland vessels will be allowed to ferry on coasts between two ports within a distance of 40 nautical miles. “The distance from the land should also have to be maintained within five miles,” said Capt Saggi.

These restrictions will act as safety measures as such vessels are not too much equipped to handle the vagaries of rough seas. However, this would be the first time that inland vessels will be deployed on the coast for short-sea distances, which is a very common practice elsewhere in the world.

For instance, in Russia, about 27,000 such vessels ferry in the Black Sea as well as along the rivers.

Coastal ship operators like SK Shahi of SKS Logistics say that such short-sea voyages would greatly reduce the logistics cost and would also prove very economical for the operator.

For instance, if special low cost vessels like inland vessels are deployed on the coastal route between Mumbai to Goa, the freight cost would be about $50 as against $250 road freight.

“Since the cost of the vessel is going to be low, interest cost which is about 30% of the freight of the vessel today, will reduce to 10%. This will boost coastal shipping,” he said.

Coastal operators also point out that there is a great need to reduce the number of certificates required to operate on the coastal routes.

Currently, 20 certificates are required and this requirement, they say, can easily be trimmed to three or four. Interestingly, there is only one certificate required to run inland vessels.

Coastal operators like Mr Shahi under the aegis of the Indian Coastal Conference (ICC) are also designing a special vessel for coastal voyages. Such vessels could carry 450 TEUs having a dead weight of 6000 GRT, which costs one-fourth of the coastal vessels of the same size or may be less.

These vessels can easily run with some extra fittings such as generator, IOPP, radio safety equipments etc. Thus the vessels can sustain the sea conditions during fair weather, i.e. eight months a year in the Indian coast.

This apart, the ICC is asking for dedicated port facilities for coastal shipping to boost the trade.