In a significant development for India’s energy and logistics sectors, the coastal shipping of coal is projected to double over the next six years, reaching an impressive 63 million tonnes (mt) by 2031. This forecast highlights the growing reliance on maritime transport to meet the country’s energy demands efficiently and sustainably. The shift towards coastal shipping is expected to ease the burden on rail and road networks, reduce transportation costs, and bolster domestic coal distribution amid rising industrial and power generation needs.
The surge in coastal coal shipping comes as India continues to prioritize energy security and infrastructure development. With domestic coal production playing a pivotal role in powering the nation’s economy, the logistics of moving this vital resource from mines to end-users have come under sharp focus. Traditionally, railways have been the backbone of coal transportation in India, handling the bulk of the supply chain. However, capacity constraints, delays, and high operational costs have prompted policymakers and industry stakeholders to explore alternative avenues. Coastal shipping has emerged as a viable solution, leveraging India’s extensive coastline and port infrastructure to streamline the movement of coal.
Currently, coastal shipping accounts for a modest portion of India’s coal transport, with annual volumes hovering around 30-32 million tonnes. The anticipated jump to 63 million tonnes within six years reflects a strategic push to optimize existing resources and reduce the environmental footprint of coal logistics. By shifting a larger share of coal transport to waterways, the country aims to decongest rail lines and highways, which are often stretched beyond capacity. This transition is also seen as a step towards improving air quality, as maritime transport generates fewer emissions per tonne-kilometer compared to road-based trucking.
The growth in coastal coal shipping is underpinned by several key factors. Investments in port infrastructure have accelerated in recent years, with major facilities along the eastern and western coasts being upgraded to handle larger cargo volumes. Ports such as Paradip, Haldia, and Visakhapatnam on the east coast, and Mundra and Kandla on the west, are poised to play a central role in this expansion. Modernized terminals, deeper berths, and enhanced cargo-handling equipment are making these ports more efficient, enabling them to accommodate the rising demand for coal shipments.
Additionally, the government’s focus on promoting inland waterways and coastal shipping aligns with broader economic and environmental goals. Policies aimed at reducing logistics costs, which currently account for a significant portion of coal’s delivered price, have incentivized the use of sea routes. Subsidies for vessel operators, streamlined regulatory processes, and public-private partnerships are expected to further accelerate this shift. The development of dedicated coastal coal corridors is also under consideration, which could provide a seamless link between coal-producing regions and power plants or industrial hubs located near the coast.
The implications of this projected growth extend beyond logistics. For the power sector, which consumes the lion’s share of India’s coal output, coastal shipping offers a reliable and cost-effective supply chain. Thermal power plants situated along coastal regions stand to benefit the most, as they can receive steady shipments without the delays often associated with rail transport. This could enhance operational efficiency and reduce downtime, ensuring a stable electricity supply for millions of households and businesses.
Industry observers note that the doubling of coastal coal shipping could also stimulate job creation and economic activity in port cities and coastal communities. From shipbuilding and maintenance to cargo handling and ancillary services, the expansion is likely to generate employment opportunities across multiple sectors. Moreover, the increased use of coastal routes could encourage the adoption of greener shipping technologies, such as LNG-powered vessels, aligning with global trends toward sustainable maritime practices.
Challenges, however, remain. The success of this ambitious projection hinges on sustained investment, coordination between stakeholders, and the timely execution of infrastructure projects. Weather-related disruptions, regulatory hurdles, and competition from other transport modes could pose risks to the timeline. Nevertheless, the momentum behind coastal shipping suggests a transformative shift in how India moves its coal, with far-reaching benefits for the economy and the environment.
As the nation prepares for this leap, the doubling of coastal coal shipping to 63 million tonnes in six years stands as a testament to its evolving energy strategy—one that balances growth, efficiency, and sustainability in a rapidly changing world.
