CHAPTER 2
COASTAL SHIPPING PROBLEMS AND PERSPECTIVES
In order to avoid any ambiguity about the definition of coastal shipping it would be
appropriate to refer to its widely accepted definition.
“Coastal shipping is the movement of cargo by sea between ports in India, not including
the non-contiguous island trades.” Movement of passengers is not within the ambit of this
study.
2.1 ADVANTAGES OF COASTAL SHIPPING
This mode has some inherent advantages over the other modes such as road and rail. It is
energy efficient, environment friendly and has potential to reduce congestion on rail and
road networks and can cater to movement of large volumes of bulk traffic at relatively
cheaper cost. The advantages of coastal shipping vis - a - vis other modes of transport are
as below.
Fuel Consumption
Fuel consumption by coastal shipping at 4.83 gm/tkm is just 15 percent of consumption
by road and 54 percent of that by rail (Table2.1).
Table 2.1 Mode-wise Fuel Consumption
Mode Fuel consumption (gm/tkm)
Road 31.330
Rail 8.911
Coastal shipping 4.828
Source: EU: Progress Report on Short Sea Shipping: 1999
Emissions
Emissions of carbon dioxide, carbon monoxide, hydrocarbon, particulates and nitrogen
oxides are very much lower in the case of coastal shipping than in road or rail. Sulphur
dioxide emissions are however, more for coastal shipping. (Table 2.2).
Table 2.2 Emissions by Various Modes of Transport
Emission (gm/tkm). Mode
CO2 CO HC Particulates Nox SO2
Road 98.301 0.479 0.227 0.078 0.978 0.031
Rail 28.338 0.196 0.098 0.027 0.472 0.036
Coastal shipping 15.45 0.036 0.012 0.006 0.311 0.290
Source: EU: Progress Report on Short Sea Shipping: 1999
Cost of Carriage
The cost of carriage of goods by coastal shipping works out to be 21 percent of the cost
by road and 42 percent of cost by rail. (Table 2.3).
Chapter 2: Coastal Shipping Problems and Perspectives
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Table 2.3 Cost of Carriage by Various Modes.
Mode Cost of carriage / tkm (1000 km lead)
Road Rs. 1.20
Rail Rs. 0.60
Coastal Shipping Rs. 0.25
Source: timesb2b.com April, 2002
External Costs
External costs of water transport are also significantly lower compared to rail or road.
These costs arise out of accidents, noise pollution, air pollution, climate changes,
infrastructure burden and congestion. In the EU, the marginal costs of water transport
have been estimated at 20.7 percent and 40.5 percent of road and rail respectively (Table
2.4).
Table 2.4 External Cost Comparison for various Modes.
Mode EU: Marginal External Cost (Euro / 1000 tkm)
Road 24.12
Rail 12.55
Water 5.00
Source: Inland Navigation Europe, Brussels: Promotional Literature: 2000
Evidently coastal shipping is a viable, economical and relatively cleaner mode of
transport, which merits optimal patronage.
2.2 GLOBAL TRENDS
Many other countries are making optimal use of coastal waters for transport. In the
European Union, for example, coastal shipping has an enviable 43 percent modal share in
tkm, which is set to increase further (Table 2.5).
Table 2.5 Modal Share – European Union Countries
Mode EU – Modal share by tkm (%)
Road 42
Rail 10
Inland water way 5
Coastal shipping 43
Source: EU- Progress Report on Short Sea Shipping: 1999
It bears mention here in terms of total tonnes transported, as opposed to tkm; the share of
coastal shipping in the EU is only 6 percent (Table 2.6). This is because the average
distance over which a tonne of cargo is transported by coastal ship is much higher at 1385
km than for other modes.
Table 2.6 Mode-wise Average Distance Transported
Chapter 2: Coastal Shipping Problems and Perspectives
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Mode EU – Average distance (km) transported per tonne
Road 100
Rail 300
Inland water way 270
Coastal shipping 1385
Source: EU- Progress Report on Short Sea Shipping: 1999
2.3 INDIAN SCENARIO
India’s 7517 km long coastline makes it an ideal resource for development of coastal
shipping. Presently its modal share is small (Table 2.7).
Table 2.7 India: Modal Share by Tonne-kilometer
Mode Modal Share (%)
Road 54
Rail 34
Inland waterways < 1
Pipeline 4
Coastal shipping 7
Source: Consultants estimates
While the Indian overseas fleet registered 1173 percent growth in numbers from 1951 to
2003, the coastal fleet inched upwards in the corresponding period to 209 percent. (Table
2.8).
Table 2.8 Growth of Overseas and Coastal Vessels
India – Fleet Size (Numbers) Vessels 1951 1961 1971 1981 1991 2001 2003
Overseas 15 68 212 310 243 217 191
Coastal 79 104 62 65 74 233 244
Source: Directorate General of Shipping
In GRT terms, however, coastal fleet shows dismal growth. While overseas fleet grew by
3256 percent between 1951 to 2003, the coastal fleet increased by just 172 percent
(Table2.9).
Table 2.9 Growth of Overseas and Coastal Gross Registered Tonnage
India – Fleet Size (million GRT) Vessels
1951 1961 1971 1981 1991 2001 2003
Overseas 0.16 0.50 2.87 5.24 5.35 6.09 5.37
Coastal 0.22 0.36 0.22 0.30 0.40 0.58 0.60
Source: Directorate General of Shipping
Indian Coastal Fleet
Further analysis shows that if its 244 vessels as on March 31, 2003, as many as 149 were
non-cargo carrying vessels, reducing the effective cargo carrying fleet to 95 vessels of
0.43 million GRT. (Table 2.10).
Chapter 2: Coastal Shipping Problems and Perspectives
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Table 2.10 Composition of Coastal Fleet in India
Type of Vessel Number Gross
Registered
Tonnage
Cargo Carriers
Dry Cargo 69 103615
Dry Cargo (Bulk Carriers) 9 226388
Tankers (Product Carriers) 12 40776
Tankers (Crude Oil Carriers) 2 50080
Ehtylene Gas Carriers 3 8727
Sub total 95 429586
Non Cargo Carriers
Tugs 99 24101
Passenger-cum-Cargo 16 71669
Passenger Vessels 17 4389
Ro-Ro Vessels 1 956
Dredgers 16 71055
Sub total 149 172170
Total 244 601756
Source: Directorate General of Shipping (as on March 31, 2003)
It is often said that the index of the coastal shipping industry health lies in the amount of
general cargo carried. By this yardstick, coastal shipping fares poorly, with general cargo
movement of less than 1 percent.
Age Profile of Coastal Fleet
To make matters worse, the coastal fleet is old with as many as 65 percent of the cargo
vessels over 15 years old (Table 2.11).
Table 2.11 Age Profile of Indian Coastal Fleet as on 2003
Vessel Age Group Cargo Non-Cargo Total
5 years & below 10 35 45
6 – 10 years 14 26 40
11 – 15 years 19 26 45
16 – 20 years 12 12 24
20 years & above 40 50 90
Total 95 149 244
Source: Directorate General of Shipping (as on March 31, 2003)
