India’s strategic coastal infrastructure is set for a major upgrade as the Shipping Corporation of India (SCI) prepares to launch a dedicated container service connecting Kandla in Gujarat with VOC Port in Thoothukudi (Tuticorin), Tamil Nadu. This direct route is expected to commence operations on June 16, repositioning regional cargo logistics and promoting low-carbon coastal trade.
The service, to be operated under the restructured SCI Middle East India Liner Express (SMILE) route, marks a significant pivot towards enhancing India’s domestic maritime corridors. With port rotation now planned as Pipavav – Kandla – Tuticorin – Cochin – Pipavav, the initiative is expected to streamline inter-state cargo flows, reduce road congestion, and advance sustainable freight practices. Officials at VOC Port Authority confirmed that the service will play a vital role in transporting key commodities between the two coasts. From Gujarat, exports such as raw cotton and chemical goods are anticipated to be shipped, while Tuticorin will handle outbound cargo like solar modules, automobile tyres, and industrial spare parts bound for the western states.
Senior officials from SCI and VOC Port Authority recently convened to finalise operational details, infrastructure readiness, and environmental safeguards. According to port authorities, the revised coastal container service is in line with the Ministry of Ports, Shipping and Waterways’ Sagarmala vision to maximise the use of India’s coastline for green cargo movement. A senior official from VOC Port described the plan as a “game-changer” for south India’s logistics sector. “This coastal link will offer direct connectivity with western India’s ports, making it significantly more efficient for exporters and reducing dependency on road and rail networks,” the official said, adding that the move is expected to decongest long-haul freight corridors and contribute to a more balanced modal mix.
Environmental experts have long advocated for stronger coastal shipping routes, citing its low emissions and cost-effectiveness. According to estimates, coastal shipping emits nearly 80% less carbon per tonne-km compared to trucks and over 50% less than trains, making it a highly sustainable logistics option. This service is particularly vital as India targets net-zero carbon emissions by 2070 and pushes for carbon-conscious economic growth. Tuticorin, already an important export gateway, is expected to see a notable uptick in container traffic. This also comes amid the broader port modernisation and capacity expansion efforts underway at VOC Port, including the development of new container berths and improved hinterland connectivity. Port stakeholders are optimistic that such coastal initiatives will attract more industries to the region, especially in renewable energy and manufacturing.
On the ground, port logistics operators in Tamil Nadu have welcomed the move, anticipating greater cargo reliability, shorter turnaround times, and reduced warehousing costs. The reworked SMILE service has been designed to integrate with existing coastal and feeder lines while offering greater frequency and predictability. The increased frequency of sailings is expected to enable just-in-time deliveries for industries, further strengthening the competitiveness of coastal supply chains. From a macroeconomic perspective, this service could provide relief to national highways, which are currently overburdened with freight traffic. With the first container ship scheduled to dock at VOC Port on June 16, stakeholders are focused on ensuring seamless ground support, from last-mile connectivity to cargo handling efficiency.
While the financial metrics of the service remain undisclosed, analysts are keeping a close watch on the shipping PSU’s market performance. On the same day the announcement was made, SCI’s share price closed marginally lower at ₹210.69 on the NSE, reflecting broader market volatility. However, sector observers believe that investments in coastal shipping will generate long-term returns both for SCI and the national logistics ecosystem. Discussions are also underway for expanding such coastal container routes to other east coast ports such as Krishnapatnam and Chennai, creating an integrated coastal grid that supports Make-in-India exports, cleaner logistics, and resilient trade flows. A logistics industry expert said, “We’re witnessing the early stages of a paradigm shift in how India moves goods—where the sea, not the road, will carry the weight.”
This service not only strengthens the business case for port-led development but also presents a significant opportunity to reduce logistics costs, which remain among the highest in the world. India’s average logistics cost stands at 13-14% of GDP, far higher than the global average of 8%, and coastal shipping could help bring this figure down. The coastal connection between Kandla and Tuticorin is more than just a shipping service; it is a national logistics reimagination built on efficiency, climate resilience, and regional inclusivity. As India pushes to develop equitable infrastructure and empower regional economies, such maritime links will be critical in bridging the development gap between industrial clusters.
While stakeholders await operational reviews after the initial voyages, the successful launch of this coastal route could pave the way for a blueprint to replicate across India’s extensive 7,500-km coastline—reviving maritime heritage with a sustainable future.
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