12 - South Asia: Impact simulations of logistics projects in India, Bangladesh, and Sri Lanka

Abstract

This chapter is focused on the international intermodal container shipping network in South Asia, particularly India, Bangladesh, and Sri Lanka. The first two simulations on the regional hub showed that the number of containers transshipped at Colombo port increases while in neighbouring hub ports, it decreases as the transshipment time at Colombo port decreases. Moreover, the construction of a new container hub in south India would cause a significant decrease in the number of containers transshipped at Colombo port, if the new port is able to successfully attract all services operated by the largest shipping company. Another four simulations related to the logistics policies on hinterland transport in South Asia were then examined; namely, the improvement of the level of hinterland infrastructure around JNP, the international connection by ferry between India and Sri Lanka, multimodal use in hinterland transport between Dhaka and Chittagong in Bangladesh and new port construction in the AP state of India. The simulation results show that Indian West Coast ports would be very competitive in acquiring cargo originating from/destined to Delhi and, among them, a capacity constraint of hinterland transport around JNP is critical. Another finding shows the reduction of cross-border barriers as essential for promoting international ferry services between south India and Sri Lanka as well as the improvement in connecting rail services. Encouraging the use of rail and IWT between Dhaka and Chittagong could raise the share of these modes, especially IWT. The new container port in the AP state would encourage shifting cargo of inland cities such as Hyderabad and Nagpur to it, although the development of multiple ports in the same state might weaken the attractiveness as a whole of the state.