Ship carrying 185 trucks coming from Chennai as India promotes coastal shipping with Bangladesh

India has formally flagged off a ship carrying 185 trucks from Chennai Port for Mongla Port as part of promoting the coastal shipping route for trade with Bangladesh.

The ship is expected to reach Mongla in five days as against 20-25 days by road, Indian newspaper Business Standard reported as Road Transport and Highways Nitin Gadkari flagged off the ship on Saturday.

He also called on all automobile manufacturers to use coastal shipping as the mode for transporting their vehicles.

So far, such trucks being exported by Ashok Leyland were being sent to Bangladesh through the land route, travelling a distance of about 1,500 kilometres, according to Firstpost.

For this trip alone, a total of around 300,000 kilometres of road travel will be saved along with the time usually lost at the congested Petrapole-Benapole checkpoint at the India-Bangladesh border, an Indian shipping ministry statement said.

The coastal shipping agreement between India and Bangladesh was signed during Prime Minister Narendra Modi's visit to Bangladesh in June 2015. The agreement is operational since last year.

Based on the agreement, sea transportation from Indian to Bangladesh ports is being treated as the coastal movement, making it eligible for 40 percent concession on vessel related and cargo related charges.

According to the Firstpost, a Roll-on-Roll-off (RoRo)-cum-general cargo vessel is being used for this shipment.

For coastal movement through RoRo vessels, 80 percent concession on vessel related and cargo related charges are applicable in Indian ports, the Shipping Ministry said.