The Hindu Business Line : ‘Boost for river-sea shipping’

The recent notification of Director-General Shipping providing exemptions under the Merchant Shipping Act 1958 for construction, survey, certification and operation of River Sea Ships is likely to benefit several private sector shipyards as it is targeted at integrating inland water transportation and coastal shipping.

The new regulation exempts ships other than passenger ships, oil tankers and off shore support vessels operating along the Indian coast and within the territorial waters, from the provisions of MS Act 1958. These provisions were not necessary for the inland and coastal shipping.

This amendment of the MS Act brings into focus the bold thrust that is required to boost short sea shipping activities on the Indian coast, at the same time allow its integration with Inland water ways, keeping the activities separate, at the same time binding them under the MS Act, according to Capt George Vurgese, Director, Kochi-based Lots Shipping.

The new regulation will bring better prospects across an entire spectrum of operations, he said.

For the user, there will be a cost-effective way of moving goods along the coast with more ships moving within the minor port.

It will fill up the gaps that exist today in coastal shipping and there will be a sizeable amount of cargo moving on the coastal route without transhipment or delay.

Most importantly, it will open up a new area for designers, builders, operators, Tran-shippers, etc, where several companies are poised to take full advantage of the new legislation, he added.

River Sea shipping has been popular in Europe and Russia, where there has been seamless integration of navigable rivers such as the Volga, Danube and Seine with the Black Sea, Baltic Sea, Sea of Azov and North Sea, respectively.

The objective of the recent legislation is to provide standards of construction, safe operation and certification rules for river-sea vessels on the Indian coast; safely integrate seaborne trade, from inland waters to coastal waters, and vice-versa.

According to Dr S. Jeevan, CEO of Samudra Shipyard (P) Ltd, the new rules would be a shot in the arm for the coastal shipping sector and the builders, as there would be significant reduction in the construction costs, by dispensing with requirements under international laws and regulations.

As a result, capital expenditure would be substantially reduced.

The existing system is complex, with each State having its own set of rules and interpretations. Building, registration, licensing, etc, is often confusing.

Under the new rules, the vessel will be built, registered and certified and, carry a Type notation for service intended.

Now vessels can be built to ply in backwaters and sea at reasonable costs for economically viable operations, he said. Benefiting most would be the union territories, Lakshadweep and the Andamans, where the only economical mode of inter-island transport is by sea.

Many enquiries for charter vessels for tour operations could not move further from the drawing board, earlier.

While the costal shipping sector witnesses booming activity in design, consultancy, building and operations, the tourism sector will have a plethora of activities such as vessels for sports fishing, scuba diving, sailing, etc, bringing in millions of dollars as foreign exchange, he said.

With choked roads and the near impossible scope for road expansion, States such as Kerala can reap the benefit of the new Act by moving cargo along the coast and through the river/ backwater system, he added.