Govt to soon fix Cabotage Law issue

Our Bureau Kochi | Updated on August 24, 2011

The Union Government is considering relaxing Cabotage Law in view of the crisis being faced by the International Container Transhipment Terminal (ICTT) at Vallarpadam.

This assurance was given by the Shipping Minister, Mr G.K. Vasan, in a reply to the Union Minister, Prof K.V. Thomas, seeking intervention of the Prime Minister for Cabotage Law relaxation for smooth cargo movement at ICTT Vallarpadam.

The Shipping Minister had also said that the Government will soon intervene to find a solution to the issue.

Cabotage regulations restrict movement of foreign ships between Indian ports. Large foreign ships can dock at a port. But only an Indian vessel can be used to move cargo to another Indian port.

Prof Thomas pointed out in his letter that the Parliamentary Standing Committee had recommended amendments to Cabotage Law and there has been no progress on the issue so far.

Though it was announced that the ICTT would be handling 7.75 lakh TEUS this year, it had handled only 1.36 lakh teus in the first six months. Though revenue of Rs 109.91crore was expected this year, so far ICTT has not been able to achieve even half of the amount, he said in the letter. The Cochin Chamber of Commerce and Industry has requested the Shipping Minister, the Chief Minister, the Shipping Secretary and Parliament members representing Kerala, to look into the matter and facilitate the early relaxation of Cabotage Law for the benefit of the exim trade.

Published on August 24, 2011

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