Coastal cargo movement of raw cotton from Gujarat to Tamil Nadu in containers is expected to increase by 266 per cent in 2014-15, from 1,200 containers to 4,400 containers.
Earlier, the Ministry of Shipping had facilitated a meeting of the stakeholders, South Indian Mills Association (SIMA) and Indian National Shipowners’ Association (INSA), which resulted in INSA offering freight rates that would reduce the cost of transportation up to 30 per cent. INSA members would also receive additional cargo support in coastal shipping, highlighted an official release.
It is estimated that around one million tonnes of cotton from Gujarat/Maharashtra to mills in Tamil Nadu moves by road. The Directorate-General of Shipping had held consultations with SIMA and INSA on increasing the transportation of raw cotton by coastal shipping. Indian flag vessel owners had conveyed that they could make available approximately 7,500 FEUs per month, sufficient to carry raw cotton.
This modal shift is beneficial to both SIMA and INSA. The textile industry will benefit from lower transport costs and Indian shipping from greater business opportunities, while the country would benefit by way of reduced fuel consumption and a green economy, the release pointed out.
This post was written by Atlantic Admin