India’s Trade Dreams Snubbed As The World’s Biggest Ship Gives It A Miss
India’s goal of being a trade hub hit a major snag on January 11, when the world’s biggest boxship, Ever Alot, gave it a miss because of port infrastructural issues. Meanwhile, the economically hit Sri Lanka and the south-east nation Malaysia have been visited by Ever Alot in recent times.
Although the Jawaharlal Nehru Port Trust highlighted that the Mundra Port run by Adani could handle the 24000 TEU ship, Ever Alot decided to skip it over the lack of a 17-meter draft. To berth the 400 meters long ship, such a draft was crucial.
So far, the Mundra Port has handled ships as big as APL Raffles, a 17,292-TEU ship, in January last year. The vessel was carrying 13,159 TEUs onboard at that time.
According to the director of Drewry Maritime Advisors, Shailesh Garg, increasing the vessel size alone doesn’t ensure better transfer of goods, which relies heavily on road and railway connections with the ports, factories and warehouses.
This is validated by an RBI report highlighting India’s plight in the global value chain due to the lack of proper maritime connectivity. As per the regulatory body’s 2022 report on Global Value Chain (GVC) participation index, India stands at 34% while other south-east nations like Vietnam have crossed the 50% mark.
The country is well below the ASEAN countries’ average of 45.9%. When Mundra handled the APL Raffles, Vietnam had already taken such ships three years before. S&P Global Market Intelligence and the World Bank have given it a 48th ranking in a list of high-performing ports. CEIC Data, a London-based firm, further highlighted the issue when they pointed out that China’s container throughput in 2020 was 245 million TEUs while India was at 16 million TEUs.
As of 2022, such ships that need a 17-meter draft for navigating constitute 0.7% of the global maritime fleet, but their importance is gaining momentum in the trade routes of China and Europe. India being at a crucial geographical position between the Strait of Malacca and the Suez Canal, can become a significant player if the 24-meter draft port in Kerala, the Vizhinjam port, becomes operational. The Adani Group has said it will likely be opened in 2024. The Indian government’s Maritime India Vision 2030 mentions another such port to be operational in 2028 and 18 meters draft port in Maharashtra.
However, Maersk officials said that since the country’s exporters and importers are spread all over the nation, it is much more feasible to ship goods in smaller ships closer to the ports where they are working. They reiterated that port infrastructure is limiting the trading capacity of the country as we require better infrastructural support, like bigger cranes and deeper drafts.
References: NDTV, Live Mint, Economic Times
Shipping News You Would Like:
Disclaimer :
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Do you have info to share with us ? Suggest a correction
Latest Shipping News You Would Like:
Indian & U.S Navies Discuss Ways to Expand Maritime Security Cooperation
Philippines Accuses China Of Installing A Floating Barrier In The Disputed South China Sea
Insurers Of Burnt Ship X-Press Pearl Make Interim Payment To Sri Lanka For Cleanup
Firefighters Save Burning Container Ship Off The Cape Coast
Teenage Girl Found Hiding On Ship Sailing To Africa 12 Days After Disappearance
Get the Latest Maritime News Delivered to Your Inbox!
Our free, fast, and fun newsletter on the global maritime industry, delivered everyday.