Chennai-Vladivostok maritime corridor - ECONOMY

NEWS: India has activated the Chennai-Vladivostok maritime corridor and is now plans to connect at least two other east coast ports—Paradip and Vizag—with this maritime corridor.

WHAT’S IN THE NEWS?

About the route

  • The Chennai-Vladivostok sea route (Eastern Maritime Corridor) will cover a distance of about 5,600 nautical miles (about 10,500 km).
  • The Chennai-Vladivostok Maritime route connects Chennai on India’s east coast with Vladivostok, Russia’s eastern port city.
  • Vladivostok is the end point of the Trans-Siberian Railway, the fourth in terms of cargo turnover, and the first free seaport of the Far East.
  • The Vladivostok-Chennai route passes through the Sea of Japanpast the Korean peninsula, Taiwan and the Philippines in the South China Sea, past Singapore and through the Strait of Malacca, to emerge into the Bay of Bengal and then cuts across through the Andaman and Nicobar archipelago to Chennai.
  • Alternative to Red Sea: In view of the current Red Sea crisis, and increased travel time, which has also pushed up costs, the Vladivostok-Chennai maritime corridor is seen as a possible alternative.
    • The Red Sea route now takes 48 days or say, against which Vladivostok route will be 15 days max. The Red Sea route accounts for 50 per cent of Indian exports and 30 per cent of imports.
    • Domestic companies use the Red Sea route through the Suez Canal to trade with Europe, North American, Africa and also Middle East.

 

Need for a New Route

  • Limited Trade Between India and Russia: One of the key reasons for the limited trade between India and Russia, which has remained around USD 12-13 billion in recent years, is the lack of efficient connectivity.
  • Reduced Transportation Time: The proposed new route would significantly reduce transportation time to just 12 days, nearly one-third of the current time taken via the existing popular route from St. Petersburg to Mumbai.
  • Reduced Costs: The new route is expected to lower transportation costs by approximately 30%, making trade between the two countries more cost-effective.
  • Strategic Location of Chennai Port: Chennai Port, located on the Bay of Bengal, serves as an ideal gateway for trade with Southeast Asian nations such as Thailand, Vietnam, and Indonesia, further boosting India's regional presence.
  • Strategic Importance of Vladivostok: The Port of Vladivostok in Russia offers access to the resource-rich Far East region, opening up significant business opportunities in sectors like energy, mining, an

Present route

  • At present, the two countries are linked through the traditional European route which passes through Red Sea, Mediterranean Sea and Baltic Sea.
  • Operationalised in 2000, the circuitous route spans from the Nhava Sheva Port in Mumbai to the Port of St. Petersburg in Russia and goods take an average of 40 days to cover the distance of 8,675 nautical miles or about 16,000 km.

Far East

  • The Far East is the easternmost part of Russia.
  • The macro-region borders two oceans, the Pacific and the Arctic, and five countries — China, Japan, Mongolia, the United States and the DPRK.
  • Located on the Golden Horn Bay north of North Korea and a short distance from Russia’s border with China, the region extracts 98 per cent of Russian diamonds, 50 per cent of Gold, 14 per cent of Tungsten, and 40 per cent of fish and seafood and has about one-third of Russia’s coal reserves.