Cab­o­tage rule

Cargo Talk - - Cover Story -

Move­ment of goods by coastal ship­ping is one of the most en­ergy-ef­fi­cient and the least en­vi­ron­men­tally dam­ag­ing form of trans­port. Given that In­dia has a long coast­line of 7,517kms, coastal ship­ping can act as a com­ple­men­tary mode of trans­port to fa­cil­i­tate re­duc­tion of lo­gis­tics cost. The de­vel­oped coun­tries rec­og­nize coastal ship­ping as an in­sep­a­ra­ble and im­por­tant part of the over­all trans­port net­work of the coun­try. There is huge scope for its de­vel­op­ment in In­dia. How­ever there are some chal­lenges faced by coastal ship­ping in In­dia that in­clude lack of in­te­grated trans­port pol­icy to pro­mote in­ter-modal co­or­di­na­tion, non-avail­abil­ity of con­ces­sional fi­nance rates to ac­quire coastal ves­sels, cum­ber­some cus­toms pro­ce­dures, lack of qual­ity man­power, high im­port du­ties on bunker oil & spares, etc.

The present Cab­o­tage Law bars for­eign ves­sels from car­ry­ing cargo be­tween In­dian ports (coastal trade) but ex­cep­tions are made if no suit­able In­dian ves­sel is avail­able. The mar­ket of ship­ping in­dus­try be­ing highly volatile, such pro­tec­tion cre­ates a cer­tain de­gree of sta­bil­ity for the In­dian ves­sels. Few coun­tries prac­tice ab­so­lute Cab­o­tage law while oth­ers prac­tice a tai­lored one. Ac­cord­ing to the in­dus­try ex­perts, In In­dia, the Cab­o­tage Pol­icy is not ab­so­lute. It is reg­u­lated through pro­vi­sions of Sec. 406 and 407 of the Mer­chant Ship­ping Act, 1958. The Draft Coastal Ship­ping Pol­icy sub­mit­ted to Min­istry of Ship­ping for ap­proval recog­nised that due to lack of con­tainer­i­sa­tion and re­stric­tions on feed­er­ing of the cargo un­der the cur­rent Cab­o­tage pol­icy, a con­sid­er­able part of In­dian cargo for trans­ship­ment through con­tain­ers gets di­verted to Colombo, Sin­ga­pore and Jebel Ali Ports. If coastal ship­ping in In­dia is opened up to for­eign flag ves­sels, it will pro­vide a sig­nif­i­cant boost to con­tainer­i­sa­tion lev­els and re­lated in­fra­struc­ture. How­ever In­dian ship­ping

Ra­jat Khosla Coun­try Man­ager In­dia- FedEx Trade net­works

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.