The Hindu Business Line : Cabotage Law changes sought to boost coastal shipping

The shipping fraternity in Kochi has called upon the authorities to take a re-look at the existing Cabotage Law given the growing importance of coastal shipping, following the developmental activities carried out in the major ports.

transshipment hubs

Some of the major ports, including Kochi, were developing as transshipment hubs and their progress would be hampered unless outdated guidelines and directives in the Cabotage Law were revised or removed, highly placed sources in shipping circles said.

Container handling

He attributed the growth in container handling registered by Kochi port between April and September this year to the strong showing by coastal shipping, especially from the northern and western parts of the country. Though exim cargo had declined due to the recession during the period, coastal movement has grown more than 40 per cent in the current year, he said.

According to the figures released by the Indian Ports’ Association, Kochi handled 1,51,350 teus between April and September this year against 1,42,792 teus in the corresponding period last year, registering a growth of 5.6 per cent.

Kochi is the only major port to have registered growth — ports such as Chennai and Tuticorin, JNPT and Kolkata Dock witnessed negative growth during the period.

Kochi Port’s performance from January to September was on a par with that of the last year, while the overall South Indian market dropped by 9.6 per cent during the period.

The port had also moved around 8,000 teus of raw cashew, transshipped from West Africa to destinations such as Mangalore and Tuticorin through the coastal mode.

Coastal shiping

With the possibility of getting additional cargo from Tirupur and Bangalore, coastal shipping could be considered an ideal mode of transport in view of the high cost involved in road transport, he added.

Coastal transportation should be considered a viable alternative to road and rail transportation as it avoided road congestion and is a cheaper mode of transportation.

Rail rakes

He pointed out that the availability of free rail rakes with private operators was actually moving traffic away from the coastal shipping route.

Today, rail rakes were available for moving domestic containers over long distances between Gujarat and North Kerala.

Given the situation, there is a need to revise the coastal shipping mode by making amendments in the existing Cabotage Law, he added.

A recent conference on coastal shipping in Kochi also highlighted the impediments to the promotion of coastal transportation and had suggested setting up basic infrastructure, measures for speedy clearance of cargo and involvement of various governmental agencies for the promotion of coastal trade.