Importance of Containers
Containers enable efficient transport via rail, ship, and road.
They have revolutionized global trade by reducing transportation time and port delays.
Standardized dimensions allow for seamless movement over long distances once sealed.
Current Situation in India
India aims to boost container handling capacity at ports to enhance exports.
Major projects like Vadhavan and Galathea Bay ports focus on containerized transport.
India produces only 10,000 to 30,000 containers annually, far below the projected demand of over 26 million TEUs by 2028.
High production costs in India ($3,500 to $4,800 per container) compared to China ($2,500 to $3,500) lead to reliance on leased containers from abroad.
Container shortages drive up freight rates and congestion at ports, limiting India’s ability to become a hub for global trade.
Government Actions Needed
Expand the Make In India initiative to boost local container production through public-private partnerships and incentives.
Reduce costs associated with repositioning and storing empty containers.
Increase container yard capacities at ports to support business growth.
Implement Production Linked Incentives (PLI) to lower production costs to competitive levels.
Offer tax relief (like GST relaxation) on raw materials for container production.
Encourage the use of Indian-made containers through incentives and long-term contracts.
Develop a tracking system via the Unified Logistics Interface Platform to improve turnaround times and address shortages.
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