Sagarmala project to save Rs 40K-cr cargo logistics cost

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Transportation through costal shipping reduces the logistics cost of cargoes and makes the business more competitive. The proposed Sagaramala project would play a vital role in this regard.

Chief Secretary AP Padhi opined this while inaugurating the national-level workshop on ‘Promotion of coastal shipping and Inland Navigation in India’ here on Thursday. He said development of coastal shipping through the Sagaramala project would reduce congestion on railways and National Highways

Padhi requested the Ministry of Shipping to develop cargo handling infrastructure at the ports at Paradip, Dhamra and Gopalpur. He maintained that development of port infrastructure would add to strength and viability of costal shipping in the State.

Padhi mentioned about the need for evacuation of coal from the mines of the Mahanadi Coalfield ltd.

“In recent days, the MCl has enhanced its production and there is a need for quicker evacuation of the excavated coal from its mining areas. Hence, the Sagaramala project authorities should take initiatives for evacuation of coal from MCl mines to Ports for easy transportation through sea route,” he said.  

Shipping Joint Secretary Rabindra Kumar Agrawal said around 1 billion tonnes of coal would be mined in coming years out of which MCl alone would contribute around 25 per cent. Presently, 61 per cent of the country’s power plants are thermal based. Hence, there is need of increase in coal production.

“Coastal shipping through Sagarmala project would reduce the logistic cost to a large extent. The project aspires to achieve overall cost saving of Rs 35,000 to Rs 40,000 crore per annum through reduction of logistics cost for EXIM and domestic cargo,” he said.

Commerce and Transport Secretary Sanjaya Rasogi, Industries Secretary Sanjeeb Chopra, Railways Commissioner Manoj Kumar Mishra, Coastal Shipping Advisor MM Hasija, Paradip Port Trust Chairman Rinkesh Roy, Dhamra Port CEO Subrat Tripathy and ICC Shipping Committee Chairman Capt BVJK Sharma were present.

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