The Survey has proposed increasing the share of coastal/inland waterways transport mode from seven per cent to 10 per cent by 2019-20.

However, issues such as additional cost due to first mile and last-mile connectivity, high duties on bunker fuel and other taxes and absence of assured return cargo that results in higher cost of transportation through coastal shipping have acted as impediments to shippers.

An analysis of the costs of coastal transportation by Indian ships as compared with foreign ships has indicated that operating costs of Indian ships are higher by 24 per cent on account of duty on bunker (nine per cent).