by Manal Barakat, SeaNewsEditor
Despite the current tension between India and Pakistan, several media reports have highlighted recently a surge in India’s coastal freight demand, attracting the attention of foreign container lines like CMA CGM and Maersk.
These companies are exploring opportunities to enter the coastal shipping market between Indian ports.
Although India imposes regulations that restrict coastal trade to India-flagged vessels, it has removed barriers to facilitate containerised freight transhipments operated by foreign-flagged liners.
French liner CMA CGM, for example, has already taken steps to reflag its Malta-registered vessel, CMA CGM Vitoria, to facilitate its coastal entry.
India has also commissioned its first deepwater port, Vizhinjam International Seaport (Vazhinjam), located in Kerala.
This port, part of a major initiative to develop a shipbuilding industry and new transportation infrastructure, can accommodate ultra-large container ships with its 20-meter water depth.
The port aims to reduce India's dependence on transhipment ports like Colombo, Salalah, and Singapore.
Primarily designed to cater to container transhipment, the port’s costs reached about USD 1.05 billion, and it is strategically located on the international East-West shipping route.
Container carrier MSC has been the key liner using this port since its launch. MSC operates eight shuttle services, including the Vizhinjam Shuttle, Kerala Shuttle, and the Asia-Med service Jade.
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