Shipping Corporation of India evaluates inland waterways business opportunity

KOLKATA: With bulk cargo movement beginning through inland waterways from Haldia again after decades, the Shipping Corporation of India (SCI) is evaluating prospects of entering this arena.

"We are evaluating and keeping a close watch on the business prospects of inland waterways," a senior SCI official told PTI.

"We will have to get into this (inland waterways) cargo movement given the recession in international trade and freight rates," he said.

Asked whether SCI would be able to leverage its existing assets to cash in on the new inland waterways cargo movement business, the official said: "We do not have vessels or infrastructure for inland waterways, but that will not come in the way, as a fleet can be easily procured on lease."

The SCI and CIL have also entered into a MoU for creating a SPV that will undertake management of importing coal to India, but it was yet to take-off.

The shipping minister recently flagged off bulk movement of coal through national waterways by Jindal ITF, to move 3 million tonne coal from the Sandheads to NTPC's Farakka thermal plant.

The shipping ministry created inland waterways infrastructure on NW1 to help the industrial corridor on the the banks of the river looking at the potential demand.

The ministry had said the present 10 thermal power stations were operational in the proximity of NW-1 and another 11 were expected to come up in the next 5-8 years with total installed capacity of 15,000 MW.

Inland waterways would help to save 15 per cent of transport cost and was environmentally friendly too.