Independent study found coking coal most suitable commodity for trade through EMC
The Russian government has expressed their desire to visit the Chennai port with a large business delegation to explore opportunities and possibilities through bilateral discussion with their Indian business counterparts.
This was the outcome of discussions held by visiting Minister of Ports, Shipping & Waterways Sarbananda Sonowal who extended an invitation for an Indo Russian Workshop on Eastern Maritime Corridor (EMC) in Vladivostok on 12 Sept 2023. The workshop is proposed to take place from 30 October to 1 Nov 2023 in Chennai.
Sonowal was addressing at the session aimed at forging possibilities on early operationalisation of EMC as an alternative trade route between Russian port city of Vladivostok and Indian port city of Chennai.
The Russian delegation was represented by Sergey Mochalnikov, Deputy Minister of Energy Minister, Russian Federation and Maxim Reshetnikov, Ministry of Economic Development of Russian Federation. The session was moderated by Denis Ilatovsky, Chairman of the Board of Directors of the Association of Commercial Seaports.
Sonowal highlighted, “The operationalisation of EMC will usher a new era of trade relationship between India and Russia. India remains firmly committed towards making innovative solutions that will enhance and further foster the strong bilateral relationship between our two great nations.
“As our teams hedged their effort for an early operationalisation of EMC, the visit to Vladivostok, Vostochny, Nakhodka and Kozmino was particularly helpful.
“Taking this forward, I propose for a Workshop of all stakeholders at Chennai in India and extend our invitation to this workshop where we can meet, interact and discuss for smooth and swift operationalisation of EMC.”
Speaking about India’s maritime programme and its flagship programme Sagarmala, the Minister said, “The vision of Sagarmala is to reduce logistics cost for both domestic and EXIM cargo with optimised infrastructure investment through port-led development.
“Currently, there are 802 projects worth investment of more than US$65 billion for implementation under the Sagarmala Programme by 2035. Out of which, 228 projects worth US$14.6 billion have been completed and 260 projects worth US$27 billion are under implementation.
“Further, 314 projects worth US$24 billion are under various stages of development while 567 projects with an estimated cost of around US$7 billion have been identified.”
Leading representatives from both sides also discussed about modern infrastructure in ports and ways and means to ensure cargo volume for the shipping industry.
The Deputy Chairman of Chennai Port Authority, S Viswanathan delivered a presentation on the “Сapabilities of Indian ports and prospects for operationalisation of Chennai-Vladivostok corridor.”
Elena Kazarina, Commercial Director of the Port, Vladivostok Commercial Sea Port, also delivered a presentation on “Development of FESCO’s Deep Sea routes and further directions of transport and logistics relations between Russia and India.”
A Memorandum of Intent on Development of Maritime Communications between the two Ports of Vladivostok and Chennai was exchanged during Eastern Economic Forum in Vladivostok in September 2019.
Subsequently, an independent study found that coking coal as the most suitable commodity for trade between the two countries using EMC. In due course, more commodities like oil, LNG, fertilisers to be added to the list of commodities transported via EMC.
The EMC is estimated to reduce the time required to transport cargo between Indian and Russian Ports of Far-East Region by up to 16 days, i.e., 24 days in comparison to over 40 days currently taken to transport goods from India to Far East Russia via Europe. Present trade route between Mumbai in India and St Petersburg in Russia covers a distance of 8,675 nautical miles which takes approximately 35 to 40 days.
The Chennai-Vladivostok sea route (EMC) will be covering a distance of about 5,600 nautical miles. A large container ship which travels at the normal cruising speed of 20-25 knots (37-46 km/hour), will be able to cover this distance in approximately 10 to 12 days. This corridor holds immense potential to unlock new opportunities for trade and cooperation. Fiinews.com
