JNPA welcomes 22,000 MT coastal cargo ship M.V. VTRE

JNPA achieved another milestone by receiving the coastal steel cargo ship, M.V VTRE, carrying 22,000 MT of cold rolled steel coils of TATA Steel from Paradip in Odisha destined for industries in Maharashtra and Gujarat. The vessel has berthed at the Shallow Water Berth at 13.24 hrs on August 17, 2023. Unmesh Sharad Wagh, Deputy Chairman JNPA along with Dy Conservator and General Manager (Traffic) received the vessel. This new initiative achieved by the new PPP Operator, Nhava Sheva Distribution Terminal (NSDT) (owned by J.M. Baxi group) is a significant milestone in promoting coastal shipping.

As a part of the endeavor to keep augmenting the well-developed infrastructure at Port, JNPA created a conducive environment for private sector participation through well-structured PPP to invest in and operate port terminals. Accordingly, JNPA has entered into a 30-year concession agreement with Nhava Sheva Distribution Terminal to develop and operate both Shallow Water Berth (SWB) and Coastal Berth (CB) in May 2023.

JNPA under the guidance of the Ministry of Ports, Shipping and Waterways has been actively promoting coastal shipping as part of its efforts to enhance maritime transportation, reduce road congestion, and lower carbon emissions.

With a 7,200 km coastline in India, coastal shipping needs an impetus. As a flagship initiative of the Government of India, under Sagarmala, it focuses on port-led development by modernizing ports, developing coastal and inland waterways, and promoting coastal shipping and logistics to reduce transportation costs. Sea transport, due to economy of scale is an inexpensive option, it takes the load off the road sector.

This new initiative will pave the way for the modal shift of transportation of steel products from land to sea. The steel products from the east coast of India will be transported to the end customers in Pune and other parts of Maharashtra. It is forecasted that there will be regular shipments of steel from the East Coast and cement from Gujarat is expected to be received at SWB and CB. One shipment is approximately equal to reducing around 2,000 trucks on the city roads thereby reducing the congestion and the carbon emissions.

There are several advantages of coastal shipping:

Cost savings: Coastal shipping could offer cost savings compared to land-based transport, due to economics of scale.

Reduced congestion: Shifting steel cargo to coastal shipping significantly reduces highway congestion.

Lower emissions: Water mode transport has fewer carbon emissions compared to other modes of transport.

Sanjay Sethi, Chairman, JNPA stated that this is a new beginning for the coastal movement of domestic cargo from eastern ports in India to western ports through sea, which will help the development of industries in the states of Maharashtra and Gujarat.

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