Introduction

Coastal shipping, one of the oldest forms of maritime trade, has been the lifeblood of civilizations since ancient times. From the earliest Egyptian, Greek, and Indian traders navigating near shores in fragile wooden vessels, to today’s highly organized, technology-driven coastal networks, this mode of transport has continually adapted to the needs of commerce, security, and sustainability. Over centuries, coastal shipping has evolved from simple barter- based exchanges along nearby ports to becoming a critical component of modern supply chains, offering a cost-effective, eco-friendly alternative to road and rail transport. Its journey reflects the broader story of human progress—marked by innovation in navigation, shipbuilding, logistics, and global trade systems.

From Lifeline to Backwater

In the years following independence, India’s coastal shipping sector began to fade into the background. With national development agendas centered around expanding roadways and railway networks, maritime trade close to home found itself overlooked. Inadequate port facilities, restrictive regulations, and the absence of a unified logistics vision turned coastal shipping into an underutilized option. Over time, industries began to favor road and rail—faster, more predictable, and better integrated with inland demand centers. Coastal routes, once the arteries of trade, were reduced to the sidelines.

The Comeback Voyage: Coastal Shipping’s Revival

The last two decades have seen a remarkable revival of coastal shipping in India, driven by policy reforms, infrastructure upgrades, and growing sustainability concerns. India’s coastal shipping sector is experiencing a significant resurgence, emerging as a pivotal component of the nation’s logistics framework. This revival is driven by increased cargo volumes, substantial infrastructure investments, and supportive policy reforms.

According to the Ministry of Ports, Shipping and Waterways, India’s major ports handled approximately 818 million tonnes (MT) of cargo in FY 2023–24, of which coastal cargo contributed over 187 MT—marking a growth of nearly 2% over the previous year. This upward trend indicates a slow but meaningful shift in modal preference. However, coastal shipping still represents only about 6–7% of India’s total freight movement, underscoring the need for continued focus if it is to become a mainstream logistics option.

The central government has set ambitious targets under the Maritime Amrit Kaal Vision 2047, aiming to increase coastal cargo volumes to 1,300 MT over the next two decades. This push aligns with broader goals of reducing logistics costs and enhancing sustainability across freight corridors.

These developments underscore the strategic importance of coastal shipping in India’s transportation landscape, offering a sustainable and cost-effective alternative to traditional land- based freight movement.

The Waterborne Renaissance of India: Coastal Shipping Takes the Helm

India’s long and diverse coastline—stretching over 7,500 kilometers and lined with 12 major and over 200 non-major ports—is undergoing a quiet but powerful transformation. Coastal shipping is especially cost-effective for bulky, non-perishable goods like cement, coal, steel, fertilizers, and food grains. It also significantly reduces greenhouse gas emissions—cutting CO₂ by as much as 60% compared to road transport, according to Ministry of Ports, Shipping and Waterways data.

Key Coastal Cargo Corridors on the Rise

Several high-traffic routes are becoming the backbone of India’s new logistics map:

• Gujarat–Maharashtra–Tamil Nadu: Connecting cement, steel, and automotive clusters with manufacturing and consumption centers. Gujarat’s non-major ports, under the Gujarat Maritime Board, handled approximately 162.84 million tonnes of cargo in April-August 2023-24, accounting for 68.4% of the total cargo handled by state maritime boards. Maharashtra’s non-major ports also contributed significantly, with a 20.3% growth in cargo traffic during the same period.
• Odisha–Andhra Pradesh–Tamil Nadu: Facilitating coal and fertilizer movement to power plants and agriculture hubs. Andhra Pradesh’s non-major ports handled 16.8% of the total cargo among state maritime boards in April-August 2023-24, while Odisha’s Directorate of Ports accounted for 7.3%. The corridor’s significance is further underscored by the East Coast Economic Corridor (ECEC).
• Kerala–Karnataka–Goa: Supporting coastal construction material and refinery cargo. Karnataka’s non-major ports, though fewer in number, saw a 14.4% growth in cargo traffic in April-August 2023-24. Goa’s Captain of Ports recorded the highest growth in traffic at 233.9% during the same period, albeit from a smaller base. These developments highlight the corridor’s growing role in regional trade and infrastructure projects.
• Andaman & Nicobar, Lakshadweep Routes: Essential for island supply chains, improving access and reducing costs. The Andaman & Nicobar Islands’ non-major ports handled 1.3% of the total coastal cargo among state maritime boards in April-August 2023-24. Ongoing infrastructure projects aim to enhance connectivity and support the unique logistical needs of these regions.

These corridors seamlessly link to dedicated freight corridors, inland container depots (ICDs), and logistics parks, enabling end-to-end multimodal solutions.

The development of coastal shipping corridors has a significant impact on regional economies. By improving connectivity between ports and hinterlands, these corridors stimulate industrial growth, create employment opportunities, and promote balanced regional development. Enhanced maritime infrastructure attracts investment and supports the establishment of industrial clusters, thereby contributing to the overall economic prosperity of coastal regions.

Several Improvements are continuously being made:

1. Integration with Inland Waterways:

India is actively working to integrate coastal shipping corridors with inland waterways, enhancing the efficiency of cargo movement. This integration allows for seamless transfer of goods between coastal routes and inland regions, reducing transportation costs and environmental impact. The development of multimodal logistics parks and terminals further supports this initiative, enabling smooth transitions between different modes of transport.

2. Smart Port Infrastructure –

• Many of the ports along these corridors are being upgraded with smart logistics technologies, digitized cargo handling, and climate-resilient infrastructure to handle rising sea levels and extreme weather. Ports like Jawaharlal Nehru Port (JNPT) and Paradip are leading in adopting these features, making corridors more efficient and sustainable in the long term.

• Smart Port Infrastructure includes automated mooring systems, shore power, gate automation, and smart energy & environment solutions. The smart energy & environment solution subsegment includes smart lighting, smart meters, professional services, managed services, and waste treatment & disposal units.

• The Indian Ports Association (IPA) has signed a Memorandum of Understanding with C3iHub at IIT Kanpur to transition from digitized ports to fully automated smart ports. This collaboration focuses on enhancing cybersecurity controls, developing specialized skill sets for port authorities, and drafting tailored cybersecurity policies for the maritime sector. The initiative aims to set a global benchmark for smart port development, ensuring resilience against evolving cyber threats

3. Green Shipping Corridors:

• In line with global sustainability goals, India is establishing green shipping corridors along its coastline. These corridors aim to reduce greenhouse gas emissions by promoting the use of cleaner fuels and energy-efficient technologies in maritime transport. The Kandla-Tuticorin route has been identified as the country’s first green shipping corridor, setting a precedent for sustainable practices in coastal shipping.

• The corridor will support the use of low-emission fuels, energy-efficient vessels, and digital monitoring systems to ensure sustainable operations. By pioneering this model, India seeks to integrate green practices into coastal shipping, improve multimodal connectivity, and align with its broader net-zero emission goals for the maritime sector.

• Harit Sagar Guidelines: The recently launched Harit Sagar Guidelines have outlined a strategic roadmap for charting India’s course towards building green ports. The composite framework states decarbonization as a pillar. To accentuate energy efficiency, electrification targets of 50% by 2030 and 90% by 2047 have been allotted to ports. This is also a step into making energy hubs out of ports, supplying surplus energy to neighbouring towns and/or industrial ports. Ports are encouraged to reduce freshwater consumption by 20% per ton of cargo and achieve 100% recycling of wastewater by 2030.

Cost Savings: Coastal Shipping vs. Road Transport

Key Insights

• Fuel Efficiency: Coastal shipping is significantly more fuel-efficient compared to road and rail transport, contributing to lower operational costs.
• Environmental Impact: By utilizing waterways, coastal shipping helps in reducing road congestion and lowering greenhouse gas emissions.
• Infrastructure Development: The introduction of the Coastal Shipping Bill, 2024, aims to modernize the maritime industry, streamline regulations, and enhance the competitiveness of domestic shipping companies.

In India’s diverse logistics landscape, coastal shipping offers a unique advantage. It complements existing road and rail systems by providing a high-volume, low-touch solution for bulk cargo over long distances. Coastal shipping offers:

• Fixed departure schedules with minimal delays
• Lower congestion, especially compared to rail and road networks
• Natural connectivity between key ports, facilitating easy movement of goods

This mode is ideal for industries looking for predictability and scalability. For example, transporting fly ash from Gujarat to Tamil Nadu or fertilizers from Paradeep to Andhra Pradesh via coastal shipping significantly cuts down handling requirements and turnaround times.

Coastal Shipping Wins

Several major players are already seeing the benefits of coastal shipping:

• UltraTech Cement: The company uses coastal shipping to move large volumes of clinker and cement from Gujarat to distribution centers along the eastern and southern coasts. This switch has led to a 25-30% reduction in transportation costs compared to road transport.
• JSW Steel: By adopting coastal shipping, JSW Steel moves raw materials and finished products between its facilities in the west and south of India. JSW Jaigarh Port, handling 55 million tonnes per annum (MTPA), is a key hub. The port’s expansion plans, including handling LNG and crude oil, will enhance its capacity and further reduce shipping costs.
• Indian Oil Corporation (IOCL): leverages coastal shipping to transport petroleum products from its western refineries (like Koyali in Gujarat) to terminals along the eastern coast, such as in Tamil Nadu and Andhra Pradesh. This shift has improved logistics efficiency, enhanced safety in transporting hazardous cargo, and helped the company cut logistics costs by up to 30% compared to long-haul road transport. Coastal movement also ensures faster replenishment at coastal depots during peak demand.
• Food Corporation of India (FCI): It has adopted coastal shipping to move food grains—particularly rice and wheat—from surplus-producing states (like Punjab and Haryana) to consumption-heavy states in southern India, including Kerala and Tamil Nadu. This method has reduced transport costs by 25–35% and helped ease congestion on the road and rail networks. Coastal shipping also ensures better preservation of grain quality due to reduced transit times and handling.

Government’s Role in Boosting Maritime Trade

The Indian government plays a pivotal role in enhancing maritime trade through strategic initiatives aimed at modernizing infrastructure, reducing logistics costs, and fostering sustainable growth. One of the cornerstone programs is the Sagarmala Programme, launched by the Ministry of Ports, Shipping and Waterways. This initiative focuses on port-led development by leveraging India’s extensive coastline and inland waterways.

Key aspects of the government’s involvement include:

• Port Modernization and Expansion: The development of new ports and the modernization of existing ones are central to improving capacity and efficiency. Notably, the Vadhavan Port project in Maharashtra is set to become India’s first offshore deep- sea port, capable of handling Ultra Large Container Ships (ULCS).
• Infrastructure Development: Efforts are underway to enhance connectivity between ports and hinterland regions through the construction of roads, railways, and multimodal logistics parks. These developments aim to streamline the movement of goods and reduce bottlenecks in the supply chain.
• Digitalization and Efficiency Improvements: The government is implementing digital solutions to modernize port operations, thereby increasing transparency, reducing turnaround times, and improving overall efficiency in the maritime sector.
• Financial Support and Policy Initiatives: A significant step is the establishment of a ₹25,000 crore (approximately $3 billion) maritime development fund to support the shipbuilding and repair industry. Additionally, the formation of a new shipping company aims to expand India’s fleet and reduce dependence on foreign carriers.

These concerted efforts underscore the government’s commitment to enhancing India’s maritime trade capabilities, positioning the country as a significant player in global shipping and logistics.

Conclusion

Coastal shipping is emerging as a vital component of India’s logistics strategy, offering cost- effective, eco-friendly solutions to support the country’s growing trade. Government initiatives like the Sagarmala Programme and the modernization of ports are accelerating the sector’s revival, positioning it as a key player in the national supply chain.

With continued investments in infrastructure, digitalization, and green shipping corridors, India is set to enhance its maritime capabilities and reduce its dependence on road and rail transport. While the journey is still ongoing, coastal shipping is poised for significant growth, offering both economic and environmental benefits for the future of global trade.