Q. Consider the following statements::
1.Nearly 75% of India’s transshipment cargo is handled at ports outside India.
2.Vizhinjam Port is India’s first international deepwater transshipment port.
3.Establishing a transshipment hub in India can help in attracting foreign direct investment (FDI).
4.The east coast in India has more ports than the west coast because of its strategic trade significance.
How many of the above statements are correct?
Explanation –
Statements 1, 2 and 3 are correct. India has 13 major ports but lacks infrastructure for handling ultra-large container ships. About 75% of India’s transshipment cargo is managed at foreign ports like Colombo, Singapore and Klang. Vizhinjam Port is India’s first international deepwater transshipment port. It is also the first greenfield port project to receive viability gap funding from the government of India. It is located in Kerala.
Establishing a transshipment hub in India offers several advantages such as:
- Forex savings (saving foreign exchange)
- Attracting foreign direct investment (FDI)
- Creating job opportunities
- Encourages various associated businesses such as ship repair services, crew change facilities, logistics value-added services, Warehousing among others.
- Can attract a significant portion of the container transshipment traffic currently diverted to ports in Colombo, Singapore, and Dubai.
- Enhancing operational and logistics efficiency.
Statement 4 is incorrect. The west coast of India has more ports than the east coast due to deeper Sea, more developed coastline, Closer to shipping routes, more favorable climate for shipping, with fewer storms and cyclones.
Source: ForumIAS
