The International Container Transshipment Terminal(ICTT) Vallarpadam will soon get the much-awaited relaxation in the Cabotage law.
Chief Minister Oommen Chandy said in New Delhi on Tuesday that a favourable decision would be made soon in this regard, as assured by the Union Minister of Shipping.
“Procedures for relaxing the cabotage law are in the final stages. The Minister has assured us that a favourable decision in this regard will be taken soon in consultation with the Indian National Ship Owners Association,” the Chief Minister said at a press conference.
In February, the Planning Commission had recommended a relaxation in the law for the exim containers handled at the ICTT for three years, to the Union Government. It had also recommended that the extension of the policy for a further period.
The commission had also suggested that the Ministry of Shipping should come out with a policy for encouraging coastal shipping so that a multi-mode transport system could be developed, thereby reducing the pressure on the road. Relaxation in the cabotage law is considered to be a blessing for the ICTT as the stiff provisions are affecting its bid to evolve into a major transshipment hub in Asia. Section 407(1) of the Merchant Shipping Act, which bans the movement of foreign-flagged vessels along the Indian coast, has been termed as the Cabotage Law.
The Dubai Port World (DP World), which operates the ICTT, the Cochin Port Trust and the state government have been pressing for the relaxation in the norm even before the commissioning of the ICTT.
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