India government-owned shipping company launches direct shipping service

India government-owned shipping company launches direct shipping service
by -
Mizzima

The Indian government-owned Shipping Corporation of India Ltd (SCI) has begun a “direct shipping service” to boost trade between Myanmar and India.

The inaugural vessel named the SCI Kamal was flagged off at the container terminal of Chennai Port, India on October 3 and arrived at Lanpyi Terminal, Bo Aung Kyaw Port in Yangon on October 8, according to a press release.

The SCI Kamal lies in dock in Yangon

“The direct liner service will operate as a fortnightly service and will connect the ports of Chennai-Krishnapatnam-Yangon-Colombo,” the release says.

“It will enable goods to reach these destinations quicker and at a reduced cost, generating immense opportunities for the business community,” it adds.

“It is a conscious attempt by the Government of India to enhance friendly relations as part of its Look East policy and goes beyond mere economic interests.”

SCI Senior Vice President Capt. R.K. Tandon said that the inaugural vessel carried 270 containers, speaking to Mizzima at a celebration held in the compound of the Bo Aung Kyaw Port on October 9. In the past, cargo has typically transited through Malaysia and Singapore.

“It will increase in the peak season,” Capt. Tandon said, noting that this was currently the low season.

“There is a good potential growth between the two countries, India and Myanmar, with this service. Volume will grow. There aren’t many challenges. Minor challenges are always there, not major challenges,” Capt. Tandon said.

India-based logistics company Gati Ship Pvt. Ltd also hopes to benefit from the seaborne trade.

The company has been providing support for seaborne cargo shipments between Chennai and Yangon since 2005.

Gati Ship Pvt. Ltd Marketing Manager Daw Thet Htar Oo in Yangon told Mizzima in a telephone interview October 10 that two vessels, “Gati Pride” and “Gati Majestic” are being renovated in India and the company hopes the ships will begin operating between India and Myanmar from mid November onwards, subject to market conditions.