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P Manoj Loaded export-import (EXIM) containers hauled on foreign flag ships for transshipment at Indian ports in August exceeded the empties moved on foreign vessels, indicating that the Shipping Ministry’s policy shift in May, allowing foreign carriers to ferry these two container segments on local routes, has started yielding results.
“Between May and August, there has been a tremendous increase in transshipment around the Indian coast and this will continue to increase as shipping lines start re-adjusting their mainline services to call at certain Indian ports which are keen to do transshipment,” said Deepak Tiwari, Chairman of the Container Shipping Lines Association (CSLA), a lobby group of foreign box lines.
Foreign container lines
In May, foreign container lines carried 618 EXIM containers meant for transshipment and 2,965 empties for re-positioning. This increased to 2,318 and 9,271 in June, 4,136 and 12,407 in July and 14,315 and 13,436 in August, according to CSLA.
“Shipping lines have actively started talking to the ports – both major and private; they have started restructuring services and are also looking at long-term contracts with these ports for transshipment. We will see that more and more Indian cargo will be transshipped at Indian ports than earlier,” said Tiwari, who is also the managing director of MSC Agency India Pvt Ltd, which represents Mediterranean Shipping Co S A, the world’s No 2 container line.
Maersk Line has planned an additional 20,000 TEUs of transshipment from the East Coast in the next three months. Besides, one service from the eastern coast to the European Union is in the works, according to McKinsey that was hired by the Shipping Ministry to prepare a strategy on transshipment.
Till a few years ago, 33 per cent of India’s EXIM cargo was transshipped at Colombo. “Things have changed... you will see the numbers going up in 2019 when services start stabilising and more transshipment start taking place in Indian ports,” Tiwari said.
Yet, not all ports are keen on transshipment or ready with basic infrastructure. Other than Chennai, Visakhapatnam and VO Chidambaranar, “other major port trusts have not finalised a policy; they are not looking at transshipment as a revenue model”, an industry executive said.
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