Recently, the Government relaxed the cabotage law for the Vallarpadam terminal in Cochin port. Pending relevant notification, the transshipment terminal is yet to reap real benefits; however, it is said the Shipping Ministry has started getting appeals from other ports for similar relaxation. The relaxation which is for three years and subject to review after the period of three years, allows foreign vessels to handle coastal cargo which is now restricted to Indian ship owners. No doubt, this relaxation is bound to affect the domestic trade of the Indian ship owners. Mr. Anil Devli, the CEO of Indian National Shipowners’ Association (INSA) rightly remarked: “The Government cannot favour one terminal operator”. He also refuted the point that the Indian ship owners do not have the required capacity to deal with the coastal cargo. Referring to the transshipment cargo at Vallarpadam , he said : “ The total transshipment cargo carried provided by Vallarpadam terminal to these Indian carriers is about 2,500 TEU a month, which is a dismal six percent of the capacity deployed”. Mr. Devli also pointed out that such relaxation is not there in US which has a very strong cabotage law. He was also fair to admit that the freight charges of the foreign vessels are lower indeed; but, they “enjoy an easy taxation regime compared with Indian flag vessels”. In short, any concession from the government must not prove a favour to some particular institution. Effort to bring in more business to one must not lead to depriving the others of business. This is what the Indian ship-owners seem to say and say it firmly.
Monday, 19 November 2012
As in Vallarpadam, other ports also demand cabotage relaxation
Recently, the Government relaxed the cabotage law for the Vallarpadam terminal in Cochin port. Pending relevant notification, the transshipment terminal is yet to reap real benefits; however, it is said the Shipping Ministry has started getting appeals from other ports for similar relaxation. The relaxation which is for three years and subject to review after the period of three years, allows foreign vessels to handle coastal cargo which is now restricted to Indian ship owners. No doubt, this relaxation is bound to affect the domestic trade of the Indian ship owners. Mr. Anil Devli, the CEO of Indian National Shipowners’ Association (INSA) rightly remarked: “The Government cannot favour one terminal operator”. He also refuted the point that the Indian ship owners do not have the required capacity to deal with the coastal cargo. Referring to the transshipment cargo at Vallarpadam , he said : “ The total transshipment cargo carried provided by Vallarpadam terminal to these Indian carriers is about 2,500 TEU a month, which is a dismal six percent of the capacity deployed”. Mr. Devli also pointed out that such relaxation is not there in US which has a very strong cabotage law. He was also fair to admit that the freight charges of the foreign vessels are lower indeed; but, they “enjoy an easy taxation regime compared with Indian flag vessels”. In short, any concession from the government must not prove a favour to some particular institution. Effort to bring in more business to one must not lead to depriving the others of business. This is what the Indian ship-owners seem to say and say it firmly.
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