Govt eyes Rs 25k crore annual savings through coastal shipping
BY PTI7 March 2016 12:09 AM GMT
PTI7 March 2016 12:09 AM GMT
Government is eyeing annual savings of Rs 25,000 crore on logistics costs by 2025 by promoting coastal shipping under its ambitious Sagarmala project. Sagarmala aims at promoting port-led development by harnessing the country's 7,500-km long coastline, 14,500-km of potentially navigable waterways and strategic location on key international maritime trade routes.Â
"Across all commodities, coastal shipping volumes could grow to 5-6 times of current levels to about 400-480 mt by 2025. This would save logistics costs of about Rs 25,000 crore per annum," a blueprint on Sagarmala unveiled by the government said. Coastal shipping volume at present is about 80 mt. Logistic costs account for a large part of the country's non-services GDP compared to benchmarks of 8-10 per cent for developed nations, it said.
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