Adani plans entry into coastal shipping
14 May 2011
Adani Enterprises Ltd, the operator of India's biggest port outside state control, has plans for making an entry into coastal shipping and would buy small bulk ships to this end.
Coastal shipping involves the ferrying of cargo by small ships between Indian ports, and is also an economical and environment-friendly modes of transport.
According to Devang Desai, chief financial officer of Adani Group, coastal shipping makes business sense for the group which has its mining operations located on the east coast while the power plants use the coal are located on the west coast.
He added the mode of transport would save a lot of money for the group as it would avoid ferrying the cargo through the congested rail and road network.
Adani's rival Allcargo Global Logistics Ltd recently bought two small bulk ships to start coastal shipping operations. Other companies in the line of business include Shreyas Shipping and Logistics Ltd and SKS Logistics Ltd.
The government has plans to come out with new regulations for the promotion of coastal shipping to ease the pressure on roads and rail and cut transport costs.