Cabotage norms relaxed for Vallarpadam terminal

Two contrary views on the same page of Business Line

“It is a good news and the Government has taken the right decision. As you know, huge investments have gone into the project, not from us alone. The Government also invested a lot. Erosion of these investments hurt all stakeholders,” said Singh (CEO ICTT), who lobbied to convince the Government on the need to ease cabotage.
http://www.thehindubusinessline.com/industry-and-economy/logistics/article3877926.ece

Cabotage is a well thought law that is prevalent in most developed and free countries. The relaxation of Cabotage, now being called for container trade, is in our national interest. The reasoning that is extended is that there is inadequate Indian tonnage to meet the demand.

However, the fact is to the contrary. The Indian tonnage that is deployed in the coastal traffic is manifold in capacity than the feeder volumes that is on offer. With the deployment of OEL Kochi by us, the capacity of Indian vessels has gone up further.

Indian ship owners are ready and willing to deploy additional tonnage, once the volume offered justifies it. The present Cabotage law, as per Merchant Shipping Act, also allows deploying foreign tonnage by Indian ship owners if Director General of Shipping permits. It is not that we are opposed to easing of Cabotage, but we are firm that there is no need for it.

Today, a monthly capacity of 42,900 TEUs is being provided by Indian flag vessels calling at Kochi. However, the total transhipment cargo carried from Kochi is about 2,500 TEUs. Indian flag ships are also carrying a transhipment volume of about 5,000 TEUs from east coast.

RAMESH. S. RAMAKRISHNAN, CHAIRMAN, SHREYAS SHIPPING
http://www.thehindubusinessline.com/industry-and-economy/logistics/article3877927.ece

Click to read
http://www.thehindubusinessline.com/industry-and-economy/logistics/article3866769.ece

I had written earlier on this subject.  Please click on the link below to read - AD http://sunriseacademyonline.blogspot.in/2012/04/relaxation-of-cabotage-rules-how-will.html