Milestone in Indo – Russian friendship
Bilateral trade to triple Cuts shipping time by 40%
Chennai, Aug 7:
In a significant development for global logistics, the proposed Chennai-Vladivostok Eastern Maritime Corridor is set to reduce shipping time between India and Russia by 40%, cutting the current 40-day journey through the Suez Canal down to just 24 days. This announcement was made by P. Thangappan, General Secretary of the Indo-Russian Chamber of Commerce, at a recent BRICS event in Chennai.
The event, organized by BRICS Generation, focused on various aspects of BRICS cooperation and highlighted the potential of BRICS Plus countries. Thangappan’s speech emphasized the critical role of BRICS in addressing logistics constraints exacerbated by geopolitical tensions in the West.
Thangappan noted that conflicts in regions such as West Asia have disrupted global shipping routes, leading to renewed interest in the Chennai-Vladivostok Corridor. Enhanced freight and passenger connectivity between Southern India and Russia’s Far East is expected to open new avenues for bilateral trade, including the export of machinery, auto parts, and engineering goods from India. This corridor aims to progressively integrate the economies of the two nations.
The Chennai-Vladivostok Maritime Corridor, spanning 10,300 kilometers, was initially conceived during Prime Minister Narendra Modi’s visit to Vladivostok for the Eastern Economic Forum in September 2019. An MoU was signed to develop this sea route, intended to transport coal, oil, liquefied natural gas, fertilizers, containers, and other cargo already part of bilateral trade. The plan also envisions ships calling at other Russian and international ports.
With the current geopolitical climate creating logistical nightmares for global trade, including the ongoing conflicts in Ukraine, Israel, Syria, and Somalia, the prospects for the Chennai-Vladivostok Corridor have gained considerable traction. Over 100 participants from Indian companies and government agencies attended the recent BRICS event, reflecting the growing interest on both sides.
Thangappan highlighted that the Eastern Maritime Corridor’s 5,608 km savings compared to the Suez Canal route will “reduce logistics costs immensely and boost efficiency in cargo transportation between the two countries.” He projected that within the next 20 years, this project will become a major economic growth catalyst for emerging economies.
Currently, Russia-India bilateral trade stands at $48 billion and is expected to surpass $50 billion this fiscal year. The Chennai-Vladivostok Corridor is poised to further strengthen this trade relationship, offering a faster, more cost-effective route for goods between India and Russia.
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