Nitin Gadkari Asks Auto Makers to Opt for Sea Routes to cut cost

 Calling upon automobile manufacturers to use coastal shipping mode for transporting their vehicles, the Minister of Shipping, Road Transport and Highways and Water Resources, River Development and Ga

NEW DELHI:   Calling upon automobile manufacturers to use coastal shipping mode for transporting their vehicles, the Minister of Shipping, Road Transport and Highways and Water Resources, River Development and Ganga Rejuvenation Nitin Gadkari flagged off an export consignment of 185 trucks.

The minister digitally flagged off a Roll on Roll off cum general cargo vessel M.V. IDM DOODLE here carrying these trucks from Chennai Port to Mongla port in Bangladesh. In a first of its kind wherein automobile consignment is moved to Bangladesh from India through sea route.

According to the minister, transportation through sea route will reduce save about 15-20 days of travel time. These trucks, which are being exported by Ashok Leyland Ltd, were moving to Bangladesh on the roads traversing a 1,500 km distance. More than 500 trucks per month are expected to be exported via the sea route, taking traffic off from the roads. For this trip alone that involves transport of 185 trucks, a total of about three lakh vehicle kilometres of road travel will be saved as the land route is longer and much time is lost at the congested Petrapole-Benapole check point at the Indo-Bangladesh border, added the release.

Ashok Leyland Ltd is currently exporting around 12,000 truck chassis to Bangladesh, Sri Lanka and countries in Africa. The volume to Bangladesh and Sri lanka is likely to increase by 80 per cent in the coming years, it added.Chennai Port started coastal RoRo voyage on August 8, 2016, when 800 Hyundai cars were shipped on RoRo vessels from Chennai to Pipavav for local distribution.

The Coastal Shipping Agreement between India and Bangladesh was signed during PM Narendra Modi’s visit to Bangladesh in June 2015. 

Based on the agreement sea transportation from Indian ports to Bangladesh ports is being treated as coastal movement, making it eligible for 40 per cent concession on vessel related and cargo related charges. For coastal movement through RoRo vessels, 80 per cent concession on vessel related and cargo related charges are applicable in Indian Ports.

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