Benefits of Coastal Shipping: Scope for Sea Change in Domestic Freight Transportation in India
Published By: Madras School of Economics, MSE on eSS | Published Date: June , 2016The share of coastal shipping in the modal mix of domestic freight
transportation in India is currently very low despite it being more costeffective,
fuel-efficient and environment-friendly compared to other
modes of transportation. This paper estimates the benefits of coastal
shipping, which are simply the costs avoided by transporting goods via
sea as opposed to transporting them by road or rail. The economic,
environmental and social benefits of coastal shipping are valued in the
range of Rs. 16 – 64 billion per annum in 2012-13 prices. In physical
terms, greenhouse gas emissions reductions amount to between 1 – 22
lakh tonnes of carbon per annum. The lower- and upper-bound values in
the range represent cost savings (or emissions reductions) with respect to
rail and road transport respectively. The results indicate that the country
would stand to gain from a modal shift in freight transportation from road and rail transport to coastal shipping. [Working Paper No. 147/2016].
Author(s): Lavanya Ravikanth Anneboina, K. S. Kavi Kumar | Posted on: Aug 03, 2016 | Views() | Download (856)