JNPA berths coastal ship with TATA Steel's 22,000 MT cargo from Odisha

Jawaharlal Nehru Port Authority (JNPA) received the coastal steel cargo ship, M.V VTRE, carrying 22,000 MT of cold rolled steel coils of TATA Steel from Paradip in Odisha destined for industries in Maharashtra and Gujarat at the shallow water berth on August 17, 2023.

“This new initiative achieved by the new PPP Operator, Nhava Sheva Distribution Terminal (NSDT) (owned by J.M. Baxi group) is a significant milestone in promoting coastal shipping. JNPA has been actively promoting coastal shipping as part of its efforts to enhance maritime transportation, reduce road congestion, and lower carbon emissions,” reads the JNPA release.

JNPA has entered into a 30-year concession agreement with Nhava Sheva Distribution Terminal to develop and operate both Shallow Water Berth (SWB) and Coastal Berth (CB) in May 2023.

Sanjay Sethi, chairman, JNPA has stated that this is a new beginning for the coastal movement of domestic cargo from eastern ports in India to western ports through sea, which will help the development of industries in the state of Maharashtra and Gujarat.

With a 7,200 km coastline in India, coastal shipping needs an impetus. As a flagship initiative of the government of India, under Sagarmala, it focuses on port-led development by modernizing ports, developing coastal and inland waterways, and promoting coastal shipping and logistics to reduce transportation costs. Sea transport, due to economy of scale is an inexpensive option, it takes the load off the road sector.

This new initiative will pave the way for the modal shift of transportation of steel products from land to sea. The steel products from the east coast of India will be transported to the end customers in Pune and other parts of Maharashtra. It is forecasted that there will be regular shipments of Steel from the East Coast and cement from Gujarat is expected to be received at SWB and CB. One shipment is approximately equal to reducing around 2000 trucks on the city roads thereby reducing the congestion and the carbon emissions.

Advantages of coastal shipping:

• Cost Savings: Coastal shipping could offer cost savings compared to land-based transport, due to economics of scale.

• Reduced Congestion: Shifting steel cargo to coastal shipping significantly reduces highway congestion.

• Lower Emissions: Water mode transport has fewer carbon emissions compared to other modes of transport.