Paradip Port Gears Up for Container Traffic with New Feeder Service

MSC has initiated a container feeder shuttle service linking Paradip port in Odisha, India, to Colombo port in Sri Lanka, marking a significant step towards tapping into the economic potential of India's interior regions. The service, which started with the sailing of the MSC Tiger F, transported exports from companies like Vedanta Aluminium and Jindal Stainless. To encourage container line operations, Paradip port authority is offering substantial discounts and incentives, including a 75% reduction in various vessel-related charges and the elimination of scanning charges, aiming to attract more business to the port and reduce reliance on external state ports.

In addition to MSC's initiative, Thailand-based Regional Container Lines (RCL) plans to introduce a service from Paradip to Port Klang, further enhancing the port's connectivity. The Odisha government is supporting these efforts with an innovative viability gap funding (VGF) scheme, offering $200 per TEU if export/import volumes during a ship's call at Paradip fall below a set threshold. This move is part of a broader strategy to diversify Paradip's cargo base beyond its traditional bulk trades, with the port achieving record cargo throughput in the previous fiscal year and the multipurpose cargo terminal PICT, operated by JM Baxi Group, expected to handle around 200,000 TEU annually.

This expansion into containerized trade and the establishment of new shipping services reflect India's broader economic ambitions, including the promotion of industrial and electronics manufacturing as part of the "China-plus-one" strategy. MSC's development of terminal interests at key Indian ports, along with PSA Mumbai's efforts to connect Odisha's hinterlands with container train services, underscores the growing focus on enhancing India's trade connectivity and supporting the country's position as a significant player in the global supply chain.