Sri Vijaya Puram, Aug. 5: Has the overwhelming concentration of cargo movement through Chennai made freight to the Andaman & Nicobar Islands more expensive? Data compiled and reviewed by The Wave Andaman suggests that the Islands’ growing dependence on Chennai as their principal cargo gateway, coupled with limited competition on the Sri Vijaya Puram shipping route, may have contributed to elevated logistics costs for businesses and consumers alike.
The review indicates that the entry of a new shipping operator reduced logistics costs by nearly 40 percent, raising fresh questions over whether limited competition on the route had kept freight rates artificially high for years. While the data points to the dominance of a handful of operators, The Wave Andaman has not independently verified allegations of cartelization.
Today, Chennai accounts for an estimated 75-85 percent of all cargo shipped to Sri Vijaya Puram, while Kolkata’s share has fallen to just 15-25 percent. The shift has largely been attributed to irregular shipping services from Kolkata, resulting in cargo originating in North, Central and Western India increasingly being routed through Chennai before reaching the Islands.
At present, Sri Vijaya Puram receives around 4,000 TEUs of containerised cargo every month from Chennai compared with only 300-400 TEUs from Kolkata, besides approximately 5,000 metric tonnes of break-bulk cargo.
“The share of cargo from Kolkata for Port Blair has come down to approximately 20 percent, including break-bulk cargo, due to irregularity in service from Kolkata. Cargo origination in North, Central and Western India has shifted to Chennai,” the data reviewed by The Wave Andaman states.
The implications of the shift are visible across multiple sectors. Vehicle manufacturers including Maruti Suzuki, Toyota, Tata Commercial Vehicles, Ashok Leyland and JCB are increasingly routing shipments through Chennai despite several of their manufacturing facilities being located in northern or eastern India. The review estimates monthly movement of around 55 Maruti and Toyota vehicles and about 20 Tata commercial vehicles to the Islands.
One of the most striking examples cited is that of Burdwan-based rice mills in West Bengal, which are reportedly transporting rice nearly 1,700 kilometres to Chennai before it is shipped to Port Blair instead of using the geographically closer Kolkata port. The analysis suggests traders continue to prefer Chennai because of its more reliable sailing schedules and established logistics network.
Similarly, plywood manufacturers Century Ply, Greenply and Archid, all of which have manufacturing facilities in both West Bengal and Tamil Nadu, have the potential to increase supplies through Kolkata if shipping services become more reliable. Patanjali, which continues to maintain warehousing facilities in Kolkata, is another company identified as having the potential to route larger volumes through the eastern port.
The review also highlights a significant imbalance in petroleum logistics. The Islands’ annual demand for petroleum products—including diesel, petrol, aviation turbine fuel, kerosene and lubricants- is estimated at between 175,000 and 275,000 kilolitres. However, 70-90 percent of these supplies currently originate from Chennai, Ennore and western India, while Haldia and Kolkata together account for only 0-10 percent.
Commodity-wise estimates show Chennai overwhelmingly dominates shipments of cement, construction materials, pharmaceuticals, automobiles and electrical goods to the Islands, while Kolkata retains a relatively stronger position only in steel products and food grains.’
The Wave Andaman’s review also found that at least one recent ANIIDCO tender relating to the transportation of Indian Made Foreign Liquor (IMFL), beer, ready-to-drink (RTD) beverages and wine specifically invited bids for handling and shipping consignments from Chennai to ANIIDCO’s IMFL godowns at Sri Vijaya Puram. While the tender itself does not establish that alternative ports such as Kolkata were excluded from consideration, industry participants argue that procurement patterns centred around Chennai further reinforce the southern port’s dominance in the Islands’ supply chain.
Apart from procurement practices, the analysis identifies several structural constraints that have contributed to Kolkata’s declining role, including irregular sailing schedules, congestion at Kolkata Port, longer vessel turnaround times because of tidal navigation on the Hooghly River and the limited availability of low-sulphur marine bunker fuel.
The findings suggest that restoring reliable shipping services from Kolkata, increasing competition on the Port Blair shipping route and reviewing procurement policies could diversify cargo movement to the Andaman & Nicobar Islands, potentially lowering logistics costs while reducing the Islands’ dependence on a single cargo gateway.
