At last, the uncertainty over the final decision in relaxing the cabotage law for the International Container Transshipment Terminal (ICTT) has ended with the Union Cabinet giving the nod to the relaxation in the cabotage law under the Merchant Shipping Act, 1958, for ICTT. The relaxation will be subject to a review after three years. The relaxation, much opposed by the coastal traders, is certain to benefit the Dubai –based DPW’s ICTT at Vallarpadam, Kochi. The primary benefit might be receiving transshipment cargo from Colombo, thus becoming less dependent on nearby foreign ports. According to the existing cabotage law, no foreign ship is permitted to enter into the coastal trade except under the license from the DG Shipping. Moreover, excepting Kochi Port, no other Indian port is near enough to the international sea routes that can accommodate large mainline vessels. For this reason, a bulk of India’s container traffic has to depend on the ports outside India, such as Colombo, Singapore, Salalah and Jebel Ali. Now, with the cabotage law relaxed, the ICTT at Vallarpadam is expected to attract mainline vessels.Referring to the relaxation in cabotage norms, Mr.Anil Singh,Head of the DP World, Asia Region, said that the relaxation would help Indian trade . Out of about two million tonnes of Indian cargo, which now goes largely to the Colombo port, if a part of it is handled at Kochi, it would prove a good saving for Indian trade in terms of freight costs. With a review of the consequences of the relaxation after three years in store, the ICTT,to prove worthy of the much-sought after relaxation, must act and attract business. All know actions speak louder than words.
Friday, 7 September 2012
Vallarpadam Terminal gains relaxation in cabotage law
At last, the uncertainty over the final decision in relaxing the cabotage law for the International Container Transshipment Terminal (ICTT) has ended with the Union Cabinet giving the nod to the relaxation in the cabotage law under the Merchant Shipping Act, 1958, for ICTT. The relaxation will be subject to a review after three years. The relaxation, much opposed by the coastal traders, is certain to benefit the Dubai –based DPW’s ICTT at Vallarpadam, Kochi. The primary benefit might be receiving transshipment cargo from Colombo, thus becoming less dependent on nearby foreign ports. According to the existing cabotage law, no foreign ship is permitted to enter into the coastal trade except under the license from the DG Shipping. Moreover, excepting Kochi Port, no other Indian port is near enough to the international sea routes that can accommodate large mainline vessels. For this reason, a bulk of India’s container traffic has to depend on the ports outside India, such as Colombo, Singapore, Salalah and Jebel Ali. Now, with the cabotage law relaxed, the ICTT at Vallarpadam is expected to attract mainline vessels.Referring to the relaxation in cabotage norms, Mr.Anil Singh,Head of the DP World, Asia Region, said that the relaxation would help Indian trade . Out of about two million tonnes of Indian cargo, which now goes largely to the Colombo port, if a part of it is handled at Kochi, it would prove a good saving for Indian trade in terms of freight costs. With a review of the consequences of the relaxation after three years in store, the ICTT,to prove worthy of the much-sought after relaxation, must act and attract business. All know actions speak louder than words.
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