AP to offer cash incentives & reduce handling charges for coastal shipping
Updated: Jan 11, 2014 03:35:34pm
Hyderabad, Jan 11 (KNN) To encourage transportation of goods by ships, the Andhra Pradesh State Shipping Board has announced incentives to producers of steel, fertilizer, cement and other products if they change their mode of transportation from rail and road to coastal shipping.
A special committee had been set up by the Shipping Ministry to look into the matter and offer incentives.
According to Chairman, State Shipping Board (SSB) and Chairman of the Committee, P V K Mohan, the state government has approved the recommendations of the committee.
At present, 150 million tonnes of goods are being transported by ships, which is about seven per cent of the country’s overall cargo movement. However, by 2017, it is estimated that the number will increase to about 200 million tonnes.
According to the latest incentives, exemption of price can be availed by the agencies which are transporting goods by road and rail but now choose shipping. With this, sectors such as steel, cement, fertilizers, sugar, rice, vehicles etc can benefit by transporting through ships.
Secondly, those who transport by ship will get an incentive of Rs 0.50 per tonne per nautical mile up to a maxium of 500 nautical miles. The ports will manage the release of the incentives which will be paid for by the Ministry.
If it is Container Cargo, terminal handling charges will be decreased up to Rs. 1000 for twenty foot equivalent unit (TEU).
Mohan announced that, the rebate in port charges of cargo ships was increased from 40 per cent to 60 per cent. Industrial units such as SAIL, RNIL, FCI would probably utilize the new method of sailing for transportation of goods to avail benefits.
The country has 7500 kilometers of coast, 12 big shipping ports and 180 small shipping ports. Among the small ports, only 60 are in working condition.
While SAIL is now planning to transport steel by ships; FCI is coming forward to transport rice through ships from Kakinada to Cochin. The Ministry is expecting other units to follow suit. (KNN/MSR)
A special committee had been set up by the Shipping Ministry to look into the matter and offer incentives.
According to Chairman, State Shipping Board (SSB) and Chairman of the Committee, P V K Mohan, the state government has approved the recommendations of the committee.
At present, 150 million tonnes of goods are being transported by ships, which is about seven per cent of the country’s overall cargo movement. However, by 2017, it is estimated that the number will increase to about 200 million tonnes.
According to the latest incentives, exemption of price can be availed by the agencies which are transporting goods by road and rail but now choose shipping. With this, sectors such as steel, cement, fertilizers, sugar, rice, vehicles etc can benefit by transporting through ships.
Secondly, those who transport by ship will get an incentive of Rs 0.50 per tonne per nautical mile up to a maxium of 500 nautical miles. The ports will manage the release of the incentives which will be paid for by the Ministry.
If it is Container Cargo, terminal handling charges will be decreased up to Rs. 1000 for twenty foot equivalent unit (TEU).
Mohan announced that, the rebate in port charges of cargo ships was increased from 40 per cent to 60 per cent. Industrial units such as SAIL, RNIL, FCI would probably utilize the new method of sailing for transportation of goods to avail benefits.
The country has 7500 kilometers of coast, 12 big shipping ports and 180 small shipping ports. Among the small ports, only 60 are in working condition.
While SAIL is now planning to transport steel by ships; FCI is coming forward to transport rice through ships from Kakinada to Cochin. The Ministry is expecting other units to follow suit. (KNN/MSR)
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