Gujarat’s ro-pax service loses money

Ferry service linking rural Saurashtra with Surat struggles to meet operating cost

By Avinash Nair

Updated - May 04, 2025 at 07:17 PM.

 

HOW IT ROLLS: The ro-pax ferry service between Ghogha and Hazira has transported 4.5 lakh vehicles till date

It’s been seven long years since Gujarat proudly launched its ferry service across the Gulf of Khambhat — a dream project meant to link rural Saurashtra with the vibrant city of Surat and its famed textiles and diamonds. Backed by the Centre’s Sagarmala initiative and boasting sleek new ro-pax ships — capable of ferrying vehicles and passengers — from South Korea and Japan, you’d think it would be smooth sailing.

But the reality is quite different. The ambitious venture is losing money. The project’s first ship, ‘Island Jade’, was brought in with great hope by a Surat businessman in 2017 to launch the service between Ghogha, on the western flank of the Gulf of Khambhat, and Hazira on the eastern side.

“Despite achieving 55 per cent capacity utilisation in transporting passengers and an impressive 87 per cent in cargo capacity utilisation, we are unable to meet the cost of operating the ferry service. We now have a net loss of ₹325 crore,” says Chetan Contractor, the promoter and Chairman of the Surat-based Detox Group, which operates the ferry through a subsidiary, Indigo Seaways Pvt Ltd.

In November 2020, the Union Ministry of Ports, Shipping and Waterways operationalised ro-pax ferry service between Ghogha and Hazira after Prime Minister Narendra Modi flagged it off with great fanfare. It has since transported 12.59 lakh passengers and 4.5 lakh vehicles. Compared to road transport, the ferry service cuts travel between Ghogha in Bhavnagar district and Hazira in Surat district by 400 km.

Ro-pax vessel Voyage Express

“Till date, we have unsecured loans totalling ₹242 crore, and we have no clue how to repay it. Even after selling the two vessels, a huge amount will be outstanding,” says Contractor. He adds that the ₹90 crore cost incurred on terminal operations has not been reimbursed by government agencies, as per the tripartite agreement inked between Indigo Seaways, Deendayal Port Authority and the Gujarat Maritime Board.

“The cost of operating the ferry terminals is not our responsibility. Secondly, we had bought a second ferry from Japan as we were expecting to bag the proposed Pipavav-Hazira and Pipavav-Mumbai ferry services. However, both projects did not take off and we were forced to deploy the ferry on the Ghogha-Hazira route in November 2022, after it remained idling for 1.5 years at Pipavav port,” he says.

The ferry operator has now sought viability gap funding from the government. “The ro-pax ferries are competing with road and rail transport of the government, which operate on subsidies. We have written to the GoI for support, without which the project is not financially viable, making it impossible to continue operating the service,” Contractor says.

To attract more traffic to the ferry service, the company had fixed the average ticketing price at ₹400-600 per passenger, which is half of the actual ticket cost.

Backstory

The history of the ferry service across the Gulf of Khambhat is much older. The project had been on the drawing board since 1995. However, it was in June 2010 that the project received Coastal Regulation Zone clearance for construction activities and operation of ferry service. It was originally planned to be operated between Ghogha and Dahej, which lies north of Hazira, to provide a crucial link to Bharuch and Surat.

Work on the project began in 2012, when Modi, as Gujarat Chief Minister, performed the ‘bhoomi pujan’ at Ghogha. After more than ₹600 crore spent on the project, spearheaded by the Gujarat Maritime Board, it was commissioned in October 2017. Modi, as PM, sailed aboard the passenger-only ‘Island Jade’ on the occasion.

In October 2018, Gujarat Chief Minister Vijay Rupani inaugurated a new ro-pax vessel, ‘Voyage Symphony’, replacing Island Jade on the Ghogha-Dahej route. Until September 2019, the vessel had transported 2.8 lakh passengers, 45,000 cars, 12,500 trucks, and 26,000 two-wheelers. After three major breakdowns, the service was suspended due to heavy siltation at Dahej terminal, which is close to the mouth of Narmada river.

In January 2020, GMB informed the Centre that it was giving up the project as dredging costs had increased four times, leaving the project bleeding. The board wanted the Centre to take over the project. GMB had spent close to ₹250 crore on capital dredging and four maintenance dredging campaigns on the Ghogha-Dahej route. About a month later, Deendayal Port Trust (formerly Kandla Port Trust), on behalf of the Modi government, finally floated a tender to start a new Ghogha-Hazira ro-pax ferry route.

 

 

India elevates maritime security to MARSEC Level 2 amid growing threats

MARSEC Level 2 signifies a heightened risk of a security incident and requires the implementation of additional protective security measures for a period of time

 

Amidst escalating tensions with Pakistan and repeated attacks by the neighbouring country, India has issued an advisory elevating the security level at all its ports, terminals, and ships from MARSEC Level 1 to MARSEC Level 2. 

MARSEC Level 2 signifies a heightened risk of a security incident and requires the implementation of additional protective security measures for a period of time. 

This means that ships, ports, and offshore facilities, along with their associated maritime industry participants, must take specific actions to enhance security. These measures are designed to address the elevated threat level and ensure the safety and security of the maritime environment.

 

 

Seventh cruise vessel of the season calls at New Mangalore Port

Passengers enjoyed local cultural experiences, including Bharatanatyam performances and guided excursions to Karkala, Moodabidri, and prominent Mangaluru landmarks like Gokarnanatha Temple and St Aloysius Chapel.

 

Seventh cruise vessel of the season calls at New Mangalore Port

Passengers enjoyed local cultural experiences, including Bharatanatyam performances and guided excursions to Karkala, Moodabidri, and prominent Mangaluru landmarks like Gokarnanatha Temple and St Aloysius Chapel.

 

 

International shipping, air traffic likely to normalise in a week

While India and Pakistan came to a mutual understanding to cease fire across land, water and sea, logistics experts and industry insiders expect logistics networks and supply chains to return to normal by around May 20. 

International transport channels, including air travel and shipping, which were significantly affected by the military standoff between India and Pakistan, are likely to return to normal by the end of the week. While India and Pakistan came to a mutual understanding to cease fire across land, water and sea, logistics experts and industry insiders expect logistics networks and supply chains to return to normal by around May 20.

Indian airlines will have to rearrange their flight schedules for both passenger and cargo operations following the ceasefire and will also have to address the backlog of passenger cancellations, which is likely to limit the speedy and efficient air traffic recovery. Similarly, export-import (EXIM) players and ports in India are facing shipment delays, a surge in insurance and shipping rates and the threat of the overhanging US tariffs, which will limit a quick recovery of shipping supply chains from India.

Logistics networks, e-commerce supply chains and international cargo networks have faced significant disruptions in the past 15 days due to the military escalation after the Pahalgam terrorist attack on April 22. While delivery service providers are struggling to meet deadlines due to cargo flights being grounded or diverted, India’s MSME exporters are once again faced with challenges to protect their operating margins after having already spent the better part of FY25 grappling with the after-effects of wars, US tariffs and the crisis at the Red Sea. Air passenger and cargo traffic Following India’s military strikes on May 7, international and domestic air traffic over India and Pakistan faced disruption, with around 2,500 domestic flights being cancelled in India between May 8 and 12, as around 32 airports were shut down in India, and a few hundred international flights were also scrapped.

Many international airlines said they were re-routing or cancelling flights over or near the region. Dozens of flights were cancelled or diverted to avoid Pakistan’s airspace, flight-tracking website FlightRadar24 showed. An e-commerce industry executive said that Indian supply chain systems are built in such a way that most warehouses and fulfilment centres will have the inventory to cater to immediate needs, which is over a week or 10 days.

The Indian government resumed operations at 32 airports on May 12, including those in the border areas of Jammu & Kashmir and Punjab. These airports had been temporarily shut following the military conflict. Pakistan withdrew the closure of its airspace to civil aircraft operations, as per a Notice to Airmen (NOTAM) issued by the Pakistan Civil Aviation Authority (PCAA) on May 11. The ban on Indian airlines and aircraft from Pakistani airspace, which was imposed from the evening of April 24, remains in place as the status of that NOTAM showed as “Valid” on the PCAA’s database. India’s ban on Pakistani airlines and aircraft in its airspace also stays.

Around 20 percent of all flight routes used by Indian carriers cross Pakistan for foreign destinations in West Asia and around 30 percent of all flights to North America and Europe pass through that country. An estimated 800 international flights of Indian airlines flew over Pakistani airspace every week in March 2025 and rerouting has become a complex and costly affair for them as international flights from Delhi, Amritsar, Srinagar, Chandigarh, Ahmedabad, Kolkata, Lucknow and Jaipur to cities in the Middle East are now flying an additional 15 to 45 minutes and another 1.5 hours to flights going to Europe.

The diversions are likely to be phased out after further discussions between the Director Generals of Military Operations (DGMOs) of India and Pakistan which start on May 12. Shipping traffic Heightened tensions between India and Pakistan had significantly disrupted regional trade, as major global shipping lines suspended services to Karachi Port and rerouted cargo to alternative points. A vital trade corridor through Mundra Port, commonly used for European-bound shipments, was effectively shut down from May 8 to May 12. While Kandla and Mundra ports in Gujarat resumed operations on May 9 after being shut overnight amid rising tensions with Pakistan, the Kandla port is expected to see lower traffic due to some congestion challenges arising from the port closures.

DPA is in constant dialogue with shipping lines and is ensuring them of safe and efficient passage when docking at Kandla Port. Kandla, which handles both liquid and bulk cargo, and is one of the 12 major ports in India, also observed a blackout on May 8.

Surcharge on cargo services to Karachi Many international shipping lines, including Chinese logistics companies, COSCO and OOCL, and French shipping and logistics group CMA CGM, suspended their operations in the region. MSC is also using Colombo in Sri Lanka as a new transhipment centre to supply cargo to both India and Pakistan, while Maersk was actively reviewing its routes. COSCO, one of the world’s largest shipping firms, issued a statement announcing the halt of all cargo services to Karachi due to escalating conflict. The notice also warned that ships currently en route may be redirected to alternative ports such as Port Klang in Malaysia. Similarly, CMA CGM has already introduced a surcharge, which will apply to all cargo involved in trade with Pakistan. The surcharge amounts to $800 per unit for routes from Pakistan to Europe, the Mediterranean, the US, and Africa, as well as from Asia to Pakistan.

A lower surcharge of $300 per unit will apply to shipments from Europe, the Mediterranean, the US, Canada, and Africa to Pakistan and vice versa. The surcharge will be effective from May 15, 2025, for all shipments, with shipments originating from the US, Latin America, and Australia, subject to the charge from June 6, 2025. In an official notice, CMA CGM confirmed on May 9 that the surcharge was being introduced due to operational disruptions caused by the ongoing geopolitical situation in the region. The Indian Air Force raids on nine terror hideouts across Pakistan and Pakistan-occupied Kashmir blocked important transport routes between the north and south of the country. Following this, various shipments arrived late at the Karachi port and were not loaded onto the booked ships. Instead, they were rebooked onto other ships. As these ships have not called at the port of Karachi since the trade restrictions were imposed, many containers are still in the harbour. The current lack of ship capacity is leading to rebookings, delays and rollovers in both countries.

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India exports 4.24 lakh tonnes of sugar by April 

Looking at the current export scenario, the AISTA expects exports of 8,00,000 tonnes of sugar out of 10,00,000 permitted by the central government. 

kh tonnes of sugar by April 

Looking at the current export scenario, the AISTA expects exports of 8,00,000 tonnes of sugar out of 10,00,000 permitted by the central government.

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• 7:26 am

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India exported 4.24 lakh tonnes of sugar till April of the ongoing 2024-25 marketing year with maximum shipments of 92,758 tonnes to Somalia, trade body AISTA said. The sugar marketing year runs from October to September. Sugar exports for the 2024-25 marketing year in India were allowed on January 20, 2025. The total quantity permitted for export is 10 lakh tonnes. According to the All-India Sugar Trade Association (AISTA), mills have exported a total of 4,24,089 tonnes of sugar till April 30 of the current marketing year. Out of which, white sugar exports were at 3.27 lakh tonne, refined sugar 77,603 tonne and raw sugar at 18,514 tonne till April of this year.

About 25,000 tonnes of sugar are under loading, it said. Of the total exports undertaken so far, maximum shipments have been to Somalia at 92,758 tonnes, followed by Afghanistan at 66,927 tonnes, Sri Lanka at 60,357 tonnes, and Djibouti at 47,100 tonnes. Looking at the current export scenario, the AISTA expects exports of 8,00,000 tonnes of sugar out of 10,00,000 permitted by the central government. AISTA demanded an increase in the minimum selling price of sugar, in line with the rise in the fair and remunerative price of sugarcane for the 2025-26 season. It also urged the government to raise the procurement price of ethanol by 10 per cent.

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May 13, 2025

 

 

MoPSW Secretary visits VPA, reviews port operations

Secretary, MoPSW visited various areas and inaugurated South side Park of AOB, Vizagpatam Board Room and Manthan Hall. 

T.K. Ramachandran, Secretary, Ministry of Ports, Shipping and Waterways, (MoPSW) Government of India, has visited Visakhapatnam Port Authority (VPA) on 11^th May 2025. Dr. M. Angamuthu, IAS, Chairperson, Visakhapatnam Port Authority (VPA), extended a warm welcome to the secretary.

Secretary, MoPSW visited various areas and inaugurated South side Park of AOB, Vizagpatam Board Room and Manthan Hall.  Later Secretary, MoPSW reviewed the Port operations and held meeting with regard to proposal of setting up of Dugarajapatnam Port by AP State Government, Utilization of Salt land and Port led industries at Mulapeta Port and also inaugurated Dash Board of E-Measurement Book and Coffee Table Book of VPA on May 11, 2025.   He distributed Course Completion and Placement Certificates to the Tribal Youth trained at CEMS which was sponsored by VPA.

Later in the evening Secretary, MoPSW reviewed and held an Interaction meeting with the Stakeholders/PPP Operators.  The Trade represented specific issues such as land lease for storage and recommendations.  Secretary, MoPSW, instructed the Stakeholders to consider relevant initiatives under the MIV 2030 and MAKV 2047 programs for benefit of Stakeholders.

Secretary, MoPSW visited Dredging Corporation of India on May 12, 2025 and a comprehensive review of DCIL’s overall performance.   Secretary, MoPSW emphasized the need for the Corporation to focus on strategic initiatives aimed at enhancing productivity and competitiveness in the current market environment.

Dr. Madhaiyan Angamuthu, IAS, Chairman, DCIL, briefed the Secretary on the Corporation’s ongoing strategic initiatives and its pivotal role in supporting maritime trade by ensuring navigability at major Indian ports. Durgesh Kumar Dubey, IRTS, Managing Director & CEO, provided an overview of the organization’s ongoing projects and financial performance.

Secretary, MoPSW visited Hindustan Shipyard Ltd., on May 12, 2025 and suggested CMD, HSL and Chairperson, VPA to operate electrical crafts in all Ports in line with PM’s visit to make India fossil free and also suggested the possibilities of introducing Hydrogen Tugs which are cheaper than any other mode of transport.

Secretary, MoPSW visited Centre for Excellence in Maritime and Shipbuilding and reviewed the training programmes and on the job training programmes imparted by CEMS to the unemployed youth and lauded the efforts of VPA funding them in line with Skill India programme.

Durgesh Kumar Dubey, IRTS, Deputy Chairperson, P.S.L. Swami, IOFS, Chief Vigilance Officer, along with Heads of Departments and senior officers of VPA, were present during the visit to VPA, and Divakar, CGM and other HoDs of DCI were present during visit to DCI.

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Fully automated alumina handling terminal will be constructed by Hindalco and Vizag Multipurpose Terminal

By being the first completely automated alumina handling facility in India, the proposed new facility will do away with the necessity for manual cargo handling.

In order to develop India’s first fully automated, sustainable alumina handling facility at the EQ-07 berth of Visakhapatnam Port, Vizag Multipurpose Terminal, a joint venture between India Potash Ltd and J M Baxi Ports & Logistics, has signed a strategic agreement with Hindalco Industries Ltd., the metals flagship company of the Aditya Birla Group. By being the first completely automated alumina handling facility in India, the proposed new facility will do away with the necessity for manual cargo handling.

This will also enable a shift from truck-based transport to railway rakes for moving alumina from Hindalco’s alumina refinery in Odisha to the port, enhancing both sustainability and operational efficiency. With a handling capacity of 1 million tonnes per annum of alumina, the upcoming facility reflects Hindalco’s forward-looking approach to building a smart, sustainable, and scalable logistics infrastructure. The facility is designed for seamless, dust-free operations with full mechanisation across unloading, storage, and ship-loading.

This upgrade significantly improves turnaround time, enhances worker safety, and brings predictability to cargo handling operations. Importantly, the project will lead to an annual reduction of approximately 7,350 MTCO₂e in greenhouse gas emissions making it a benchmark for green logistics in the metals sector.

The collaboration between Hindalco and Vizag Multipurpose Terminal reinforces a shared vision of building next-generation infrastructure that is aligned with India’s expanding trade ambitions and long-term sustainability commitments. Once completed, the upcoming facility will reinforce Visakhapatnam Port’s standing as a leading cargo hub on India’s eastern coast while strengthening Hindalco’s export capabilities.