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Transhipment cargo

Policy & Regulation · Pricing & tariff control

What it is

Containers unloaded at one port and reloaded onto another vessel rather than entering the local market. A large share of India's transhipment has historically been handled at Colombo, Singapore and Dubai rather than domestically

Capturing it requires deep draft, scale and efficient handling

Impact on industries

  • A large identifiable prize - Indian-origin transhipment currently earns fees for foreign ports, and repatriating it needs no new trade growth
  • Transhipment volumes are additive to a port's throughput without depending on local industrial demand
  • It is highly competitive and price-sensitive, since a shipping line will move its hub for modest cost or time advantage
  • Requires draft, crane productivity and connectivity at global standards, so it concentrates in a few deep-water ports rather than benefiting the sector broadly

Industries affected