Port union opposes relaxation in Cabotage Law

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jun 2010

The Kochi Port Trade Union Samithy, a joint forum of trade unions, has urged the Shipping Ministry not to make any relaxations in the Cabotage Law facilitating freedom to handle Indian coastal cargo by foreign plying vessels According to the National Transport Development Policy, 40 per cent of the total cargo handled by Indian ports should be transported by Indian plying vessels.
The Cabotage Law according to the Merchant Shipping Act, 1958 is very specifically insists that the coastal cargo should not be handled by the foreign plying vessels.
The Samithy in a statement issued here said that deregulation of the existing restrictions or amending the rule favourable to foreign plying vessels will be against the national security.
The unions also reiterated its request to the Ministry in taking steps to revive the existing Rajiv Gandhi Container Terminal for container operations to enable the port to handle coastal cargo containers, Defence cargo and combi vessels.
The licence agreement with the terminal operator provides the right for the Kochi port to handle coastal cargo according to the mutually evolved and agreed norms.
In almost all the major ports, there are more than three container terminals. In Jawaharlal Nehru Port Trust, there are three container terminals and the fourth terminal is coming up.
These terminals are flourishing and competing with each other by providing prompt and efficient services to the user community.

Source: Hindu Business Line