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Andaman at Centre of Sabang Shipping Push As India-Indonesia Advance Fast-Track Trade Plans

Stakeholders explore low-cost sea transport model to improve cross-border trade efficiency and reduce transit dependency through mainland ports

Date:

Summary

Efforts to establish a direct shipping link between the Andaman and Nicobar Islands and Sabang in Indonesia gained momentum after discussions in Medan between Indonesian trade representatives and Indian diplomatic authorities. Talks focused on vessel permissions, marine cargo handling and trade logistics. Stakeholders believe the proposed route could reduce logistics costs, improve maritime connectivity and strengthen regional trade between Aceh and the Andaman and Nicobar Islands.

Sri Vijaya Puram, May 7: Efforts to establish a direct shipping link between the Andaman and Nicobar Islands and Sabang have received a fresh push following a meeting between an Indonesian trade representative and Indian diplomatic authorities in Medan.

Rahmad Kudri, Director of PT Indatu Global Connection, met the Consul General of India in Medan, Ravi Shanker Goel, on May 6 to discuss the feasibility of initiating direct maritime connectivity between Sabang, located in Aceh, and the Andaman and Nicobar Islands.

During the meeting, Kudri outlined key operational requirements needed to activate the proposed route, focusing on vessel permissions and cargo handling norms. Two specific issues were raised: the use of wooden vessels for short-distance maritime transport, and the shipment of fish and marine products from the Andaman and Nicobar Islands using fiber packaging alongside general cargo.

According to Kudri, similar logistics models are already in operation in the region. He cited existing trade routes where fish is transported from Aceh to Malaysia via Tanjung Balai port in Medan and Port Klang, using comparable packaging and handling systems. This, he said, demonstrates the practical viability of replicating such a model for the Sabang–Andaman route.

The proposal also highlights existing infrastructure in Sabang that could support the trade corridor. Kudri pointed to the availability of a 200-tonne cold storage facility on the island, which can be utilised for handling and preserving marine products arriving from the Andaman region before onward distribution.

On the issue of vessel deployment, Kudri indicated that suitable wooden vessels are already available on the Indonesian side. Preliminary inputs from a customs consultant in Chennai suggest that such vessels may be permissible for this route. However, he stressed the need for formal confirmation from Indian authorities to proceed.

Officials said that the Indian Consulate in Medan is expected to facilitate further communication on the matter. A formal letter is likely to be issued to a trade coordinator in the Andaman and Nicobar Islands, which could help secure the necessary approvals from local authorities for vessel operations and cargo movement.

The proposed shipping link is part of efforts to operationalise a direct maritime trade corridor between India and Indonesia at the regional level. Stakeholders have been advocating for a shorter, more efficient route between Sabang and the Andaman and Nicobar Islands, given their geographic proximity.

If approved, the use of wooden vessels and simplified cargo handling systems could enable a low-cost, short-haul shipping model, allowing trade to begin without large-scale infrastructure investments. Marine products, particularly fish from the Andaman region, are expected to form a key component of initial cargo movement under the proposed route.

The development comes amid ongoing discussions between stakeholders from Aceh and the Andaman and Nicobar Islands to strengthen bilateral trade linkages. A direct shipping connection is seen as a critical first step toward reducing transit time, lowering logistics costs, and unlocking new trade opportunities between the two regions.

While regulatory clearances remain pending, officials indicated that the latest engagement marks a significant step forward in moving the Sabang–Andaman shipping proposal from concept to implementation.

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