The Hindu Business Line : Seaways to launch service to Bangla

TRANSPORTING cargo from Indian cities to Chittagong in Bangladesh will soon become faster, cheaper and easy, opening up greater business opportunities to export/import companies.

Facilitating this much-needed service is the Rs 354-crore turnover, Seaways Shipping Ltd, a global container transportation provider.

The company has decided to launch a dedicated feeder service with 10 days fixed schedule linking the ports of Visakhapatnam, Kolkata and Chittagong in the North Bay of Bengal.

The inaugural sailing of the "Coastal Express 1" (CEX1), which is an Indian registered vessel, is slated for April 27 from Visakhapatnam.

The service would be the first such container feeder for transhipment in this sector, according to Capt P.V.K. Mohan, Managing Director of Seaways Shipping.

The feeder service is expected to give a big boost to trade between Visakhapatnam-Chittagong and Kolkata-Chittagong on a regular basis.

Export-importers from both North and South India can reach the cargo to either Visakhapatnam or Kolkata at 10-day intervals to utilise the service, Capt Mohan told Business Line. The CEX1 will also give an impetus to transhipment cargoes into Kolkata/ Chittagong through mother vessels calling directly from North Chinese ports.

At present, Chinese cargo gets priority at Singapore and Indian cargo tends to idle, sometimes for 45 days. These delays can now be cut, he said.

Capt Mohan said the port rotation of Vizag- Kolkata- Haldia- Chittagong- Vizag would use one 224 TEU's geared vessel with reefer connections.

"We are expecting a positive response of 70 per cent volumes in the maiden voyage and depending on booking we intend to add CEX2 in the same sector." Giving an idea of the difference the service would make, he said if cargo from New Delhi has to reach Chittagong, the current route is Delhi- Mumbai- Singapore- Chittagong.

In Singapore, since cargo coming from China gets priority, the entire time taken for container's journey is about 45 days.

Even cargo from Hyderabad now has to go to Chennai-Singapore-Chittagong, taking about a month. Alternatively, it has to take the road route to Benapor border/customs clearance and then to Chittagong.

Seaways Shipping feeder service would ensure that the containers are delivered in 10 days. The customer has to reach his cargo either at Vizag or Kolkata. The company is expecting revenues of about Rs 30 crore in the first year from the feeder service, he said.

The major beneficiaries from the service would be the Shipping Corporation of India and the Container Corporation. For more such operators to get in and feeder services to grow, Capt Mohan, who is also a Member, National Shipping Board, said the Government has to address two major issues — the cost of fuel and spares, in both of which, international players have an advantage since they get their needs in Singapore.

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