Coastal Shipping - This is a term which still remains as a term. While globally coastal shipping (or short sea shipping) is considered as the dynamic choice complimenting the sustainable transport chain.

Coastal Shipping has its inherant advantage. It is cheaper and environment friendly compared to rail and road modes. The need of coastal shipping can be understood when one realises that the road congestion losses is reported at Rs.200 to 300 billion due to accidents and maintenance. The conservative estimates indicates that four million tonne of cargo can be diverted to coastal mode of traffic without adding much cost. Interestingly, diverting five per cent of road cargo saves Rs.15 to Rs.20 billion. This is apart from six per cent reduction in pollutants and savings in fossil fuels.

The major commodities that are moved by coastal shipping are crude, coal, iron, ore, steel, cement, etc. contributing to more than 90 percent of the total coastal traffic. Beside these commodities, other commodities such as fertilizers, food grains, LNG, Cars and general cargo are also to be examined as O.D. pairs to understand the possiblities of moving these commodities by coastal shipping along east and west coast of India.

India has a natural advantage with its 7500 kilometers coast line with 13 major ports and 184 minor ports. Interestingly, the share of minor ports in the total cargo handled by ports is at 27 percent and this figure is going to shoot up with entry of new development mooted by private parties.

All developed and developing economics have accorded short sea shipping or coastal shipping the necessary funding and initiated "motorways of the sea" project along with establishment of promotion centres. India has to cope up and set up conductive measures to make this a thriving sector along with Rail and Road as modes of transport. No where in the world coastal shipping survive on its own.

The goal of Indian Governement is to empower Indian coastal shipping companies to provide world class service to Indian trade and consumers at affordable costs and build a safe, strong and prosperous national economy.