Bhubaneswar: In a significant move to promote containerized cargo export and import shipping through Paradeep Port, the Government of Odisha has inked a crucial agreement with the Mediterranean Shipping Company (MSC) for Viability Gap Funding (VGF). The agreement, signed by Saswat Mishra, Principal Secretary/MSME Department, and Capt. Deepak Tiwari, MD of MSC Agency (India) Pvt. Limited, marks a pivotal step towards reducing logistics costs for businesses in the state.
The signing ceremony was graced by Pratap Keshri Deb, Minister, Pradeep Kumar Jena, Chief Secretary, and various other senior officials and stakeholders from the Government of Odisha and Government of India.
Many companies and business entities in Odisha currently handle substantial volumes of containerized cargo export and import. However, a significant portion of these activities is conducted through seaports outside Odisha, resulting in additional logistics costs. By encouraging containerized cargo export/import through Paradeep Port, the government aims to make businesses more lucrative and create numerous job opportunities within the state.
Speaking on the occasion, Pratap Keshri Deb highlighted the potential benefits of this collaboration. “Containerized cargo export/import happening through Paradeep Port will immensely help exporters and importers in Odisha by reducing their logistics costs. It will also lead to the generation of a considerable number of direct and indirect employment opportunities in the state. Importantly, it will contribute significantly to the tax revenue for the State Government,” he emphasized.
MSC, recognized as the world’s largest container shipping company with a global market share of about 23%, will operate feeder ships to Paradeep Port two to three times a month. These feeder ships will connect the exim container cargo of Paradeep Port to Colombo, facilitating further transportation to various global destinations using MSC’s larger mother ships.
In case MSC encounters challenges in securing sufficient business at Paradeep, the Government of Odisha has committed to compensating MSC as per the terms outlined in the Viability Gap Funding (VGF) agreement. MSC is expected to commence its container cargo exim shipping service from Paradeep Port starting March 2024. This strategic collaboration is poised to enhance Odisha’s position in the maritime trade landscape and provide a boost to the state’s economic growth.
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