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3rd July 2023 (5 Topics)

Chennai-Vladivostok Sea Route

Context

India and Russia have scheduled a stakeholder meeting in September to work out the details for operationalising the Chennai-Vladivostok maritime route.

 History

  • The Chennai-Vladivostok maritime link is not a new phenomenon — it did operate for a few years during the Soviet period.
  • It was very much operational between 1967 and 1969; and the shipment took nearly 90 days given the shipping technology at work then following the maritime route Nakhodka, Hong Kong, Singapore, Calcutta, and Madras.
  • Recent development: The Chennai-Vladivostok maritime connectivity was first crystallised at the policy level during the visit of Prime Minister Narendra Modi to Vladivostok in 2019 to attend both the Eastern Economic Forum (EEF) and the annual Indo-Russia bilateral summit.
    • It was during this visit that the two sides signed a Memorandum of Intent (MoI) on the Development of Maritime Communications between the Port of Chennai and the Port of Vladivostok.

About the route

  • The Chennai-Vladivostok Maritime route connects Chennai on India’s east coast with Vladivostok, Russia’s eastern port city, opening a plethora of opportunities for trade and investment for both countries.
  • 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 Japan past 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.
  • This sea route covers a distance of approximately 5,647 nautical miles or about 10,500 km.

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.

The need of new route 

  • Lack of connectivity is one of the reasons for limited trade between India and Russia, which has for the past few years hovered around the US $12-13 billion level.
  • Reduced transportation time: The proposed route will bring down transport time to 12 days, almost a third of what is taken under the existing popular route from Petersburg to Mumbai.

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.
  • Reduced cost: Costs are expected to experience a substantial decrease, by 30-odd per cent.
  • Presence in South East Asian region: The new route would also give India the largest presence in the South East Asian region.
  • Ideal gateway: The strategic location of Chennai Port on the Bay of Bengal makes it an ideal gateway for trade with Southeast Asian countries like Thailand, Vietnam, and Indonesia.
  • Immense opportunities: Similarly, the Port of Vladivostok in Russia provides access to the resource-rich Far East region, offering immense opportunities for Indian businesses to tap into the market sectors like energy, mining, and technology.
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