How Government Policy is Reshaping Logistics & Steel Distribution

India’s Ministry of Steel has unveiled a forward-looking initiative that aims to revamp the logistics landscape for the domestic steel industry by promoting coastal shipping as a viable alternative to traditional road and rail transport. This strategic shift holds the potential to transform how steel products are transported across the country, bringing down logistics costs and boosting the sector’s global competitiveness.

The Current Challenge: High Logistics Cost

At present, the logistics cost for Indian steel companies stands at a steep 18–19% of total revenue, significantly higher than other steel-producing nations like China and those in Europe, where coastal shipping has already been widely adopted. This difference in cost is one of the primary factors affecting the global pricing competitiveness of Indian steel.

Coastal Shipping: A High-Impact Solution

The Ministry estimates that a shift to coastal shipping can reduce logistics costs by 70–80%, bringing it in line with global benchmarks. Steel transportation via waterways is not only cost-effective but also eco-friendly and more efficient for long-distance bulk transport.

This move is expected to:

Unlock the untapped potential of India’s waterways
Reduce pressure on highways and rail infrastructure
Enable just-in-time delivery models for steel consumers
Promote regional steel hubs and port-based clusters

Industry Momentum & the Sagarmala Synergy

Leading steel manufacturers in India are already aligning with the Ministry’s direction. The expected savings — estimated at ₹200–₹300 per tonne of steel — could free up capital for further investments in R&D, technology upgrades, and green steel initiatives.

Moreover, this shift supports the Sagarmala Programme, which is aimed at modernising India’s port infrastructure and creating coastal economic zones. By integrating coastal logistics with this nationwide programme, the steel sector stands to gain immensely in terms of efficiency and reach.

Agni Steels’ Perspective

At Agni Steels, we welcome this initiative as a step in the right direction for the Indian steel industry. As a company committed to innovation and sustainable practices, we believe the promotion of coastal shipping is not only a strategic move for cost reduction but also a reflection of the growing maturity and modernisation of India’s industrial policies.

We remain committed to supporting such forward-thinking initiatives and look forward to contributing to a more resilient and efficient steel supply chain in India.

Conclusion

Coastal shipping is no longer just an alternative — it is quickly becoming a strategic imperative for the Indian steel industry. With support from the Ministry of Steel and proactive adoption by industry players, this policy has the potential to redefine logistics economics, strengthen global competitiveness, and push India closer toward becoming a global steel powerhouse.