Shreyas’ en­deav­our into dry bulk space

The con­tract in­volves road move­ment for the first and last mile con­nec­tiv­ity for which Shreyas has tied up with lo­cal trans­porters at both ends. RINL has moved its prod­ucts by road and rail thus far.

Cargo Talk - - Shipping -

Con­tainer ship op­er­a­tor Shreyas Ship­ping and Lo­gis­tics is ven­tur­ing into the dry bulk seg­ment by win­ning a deal from staterun steel maker Rashtriya Is­pat Nigam (RINL) for trans­port­ing prod­ucts from its plant at Visakha­p­at­nam to stock­yards in Ahmed­abad, Mum­bai and Kochi. The com­pany has pur­chased a for­eign-flagged mul­tipur­pose ves­sel to haul 225,000 tonnes a year to the three des­ti­na­tions on an an­nual con­tract worth about 75 crore. The ship will be con­verted into an In­dian flag be­cause trans­port­ing cargo on lo­cal routes along the coast is re­served for In­dian reg­is­tered ships, ac­cord­ing to lo­cal rules. Of the to­tal quan­tity to be shipped, 60,000 tonnes is meant for Kochi, 75,000 tonnes for Mum­bai and 90,000 tonnes for Ahmed­abad.

Shreyas will add one more dry bulk ship to its fleet to ex­e­cute the con­tract, the first to be tried by a state-run steel maker as the Ship­ping Min­istry ag­gres­sively pushes coastal ship­ping to re­duce lo­gis­tics costs. The com­pany cur­rently runs a fleet of 11 small-sized con­tainer ships. Lo­gis­tics cost con­trib­utes around 15 per cent to the to­tal landed cost of steel. The wa­ter mode con­trib­utes only one per cent of lo­gis­tics in In­dia (com­pared to 24 per cent in China), even though it of­fers en­vi­ron­men­tal ben­e­fits and sav­ings in fuel costs. Steel de­mand in In­dia, the world’s third big­gest pro­ducer of crude steel, is pro­jected to touch 200 mil­lion tonnes per an­num (MTPA) by 2025 un­der base case sce­nario of GDP grow­ing at 7-8 per cent per an­num. Ac­cord­ing to the Sa­gar­mala pro­gramme of the Cen­tral gov­ern­ment, lo­gis­tics ef­fi­ciency will be crit­i­cal for mak­ing ex­ist­ing ca­pac­ity more com­pet­i­tive.

The Sa­gar­mala es­ti­mates a po­ten­tial for mov­ing 7-8 MMTPA of steel through coastal route by 2020, and 12-14 MMTPA by 2025. Mov­ing steel prod­ucts by the coastal route could

`1.3 save as much as per tonne-km. This trans­lates

`1,000-1,200 into sav­ings of crore per an­num by 2025.

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