Driving To Deliver Your Business

Gadkari flags off steel cargo consignment from Vizag through coastal shipping route

NetIndian News Network New Delhi, November 2, 2017

ADVERTISEMENT

Union Minister of Shipping, Road Transport & Highways Nitin Gadkari yesterday digitally flagged off a consignment of 230,000 tonnes of steel cargo from Visakhapatnam port to Ahmedabad, Mumbai and Kochi through the coastal shipping route. Speaking on the occasion here, the Minister said the Rashtriya Ispat Nigam Ltd (RINL) was till now transporting its products to 22 stockyards through road and rail mode.

Coastal transportation of these products will now help save 380 million tonne-km of rail transportation per annum and bring down logistics costs. This is especially significant since RINL has doubled its production capacity to 6.3 million tonnes per annum, and to cater to the increased volumes it is important to economize on transportation costs to be globally competitive. He urged all other manufacturers to make use of coastal shipping for transporting goods as this can be a key enabler for reduction of logistics cost for domestic and EXIM trade of India.

The coastal movement has been on RINL’s radar for a long time because of its proximity to the ports and to ease the pressure from the over optimized road and rail systems. RINL recently finalised a one-year Multi-Modal Transportation contract covering end to end logistics from the plant at Visakhapatnam to its stockyards at Ahmedabad, Mumbai and Kochi, an official press release said. The Rs 75 crore annual contract has been awarded to the consortium led by Shreyas Shipping & Logistics Ltd, Mumbai, a member of Transworld Group, Dubai.

The contract involves taking delivery of material from the plant, shifting by road to Visakhapatnam or Gopalpur ports, shipping the material by sea to a port near the stockyard and finally delivering the material to RINL Stockyard.

The quantities expected to be transported are 90,000 T, 75,000 T and 60,000 T to Ahmedabad, Mumbai and Kochi stockyards, respectively.

NNN

ADVERTISEMENT



Leave a Reply

Your email address will not be published. Required fields are marked *