The much-awaited formal orders for relaxing the Cabotage policy at the International Container Transhipment Terminal Vallarpadam has been issued by the Shipping Ministry with a stipulation to adhere to the security procedures.
Though the Union Government had announced relaxation in the Cabotage rule for Vallarpadam in September, a final notification was awaited.
The shipping lines were also eagerly awaiting a formal order from the Government in this regard to chalk out a further course of action.
According to the Government circular, this relaxation is subject to 100 per cent radiological scanning of containers. The order further stipulates security procedures in compliance with applicable regulations of the International Ship and Port Facility Security Code and Government instructions.
review
Senior port officials said here that the Kochi Port has already established 100 per cent radiological scanning. The Vallarpadam Terminal is under level II of the Code with its security entrusted with the armed constabulary of the Central Industrial Security Force.
At a meeting of the Revenue Secretary and the Shipping Secretary on December 11, it was decided that the Customs will procure, install and operate X-ray scanners for the Terminal , the officials said.
The relaxation in the policy will be subject to a review after three years.
According to officials, the transhipment operations leveraging Cabotage exemption are likely to begin immediately at the Terminal with inbound containers complying with the security procedures at the destination ports at the Code level adopted there.
Enquiries for large vessels
Welcoming the announcement, the shipping fraternity said that services through the Terminal will be able to compete effectively with neighbouring transhipment hubs. Ex-im trade in India will benefit from this development by reduction in transit times up to 7 days and in international freight up to $300 a container.
Sources in the shipping circles pointed out that there were enquiries from shipping consortiums to accommodate large vessels of 300-350 m at the Terminal. With the formal orders on Cabotage announced, these vessels may look at Kochi in their network.
Currently, ships of 160-260 m are anchoring at the Terminal. The global slump in the shipping sector has forced many of the shipping lines to form consortiums in order to maintain profits, the sources added.