DP World, Cochin Port closer to cabotage exemption for Vallarpadam
The International Container Transshipment Terminal (ICTT) at India's east coast Port of Vallarpadam is reportedly on track for an exemption from cabotage regulations, which like most jurisdictions, restrict coastal shipping to national flag vessels, Shippingazette reports.
But having foreign large containership being restricted to a single port flies in the face of efficiency, involving the needless loading and re-loading of boxes. Such considerations have induced India's shipping secretary K Mohandas to look favourably on opening the trade to foreign vessels, reports the Times of India.
But Indian shipping companies are lobbying hard to retain cabotage rules, arguing that Indian vessels need protection. If ICTT is granted exemption, other Indian ports will want the same, they say.
Both Cochin Port Trust (CPT) and DP World, which set up ICTT as a joint venture, have been pressing for an exemption, and are backed by the Kerala state government, which is intensifying lobbying for relaxation.
"This will be forcefully taken up when the Kerala government team led by chief minister Oommen Chandy visits New Delhi from September 22," said Kerla Ports Minister K Babu.
Cargo ships from foreign countries should be able to move freely after transshipment at Vallarpadam, say proponents of relaxation. If foreign feeder vessels are not permitted to ship cargo from Vallarpadam, they will opt for Colombo in Sri Lanka, a CPT official said.
DP World and CPT also say Indian feeder vessels do not have adequate capacity to handle containers that are expected at Vallarpadam. There are only 13 Indian ships that act as feeders from ICTT, and they together have a capacity of 12,156 TEU, whereas the projected level of cargo to be handled at Vallarpadam in the first year was 775,000 TEU.
Shipping Corporation of India chief executive S Hajara denies the claim. "There is enough capacity in Indian feeder vessels for handling containers arriving at Indian ports," he said.
But having foreign large containership being restricted to a single port flies in the face of efficiency, involving the needless loading and re-loading of boxes. Such considerations have induced India's shipping secretary K Mohandas to look favourably on opening the trade to foreign vessels, reports the Times of India.
But Indian shipping companies are lobbying hard to retain cabotage rules, arguing that Indian vessels need protection. If ICTT is granted exemption, other Indian ports will want the same, they say.
Both Cochin Port Trust (CPT) and DP World, which set up ICTT as a joint venture, have been pressing for an exemption, and are backed by the Kerala state government, which is intensifying lobbying for relaxation.
"This will be forcefully taken up when the Kerala government team led by chief minister Oommen Chandy visits New Delhi from September 22," said Kerla Ports Minister K Babu.
Cargo ships from foreign countries should be able to move freely after transshipment at Vallarpadam, say proponents of relaxation. If foreign feeder vessels are not permitted to ship cargo from Vallarpadam, they will opt for Colombo in Sri Lanka, a CPT official said.
DP World and CPT also say Indian feeder vessels do not have adequate capacity to handle containers that are expected at Vallarpadam. There are only 13 Indian ships that act as feeders from ICTT, and they together have a capacity of 12,156 TEU, whereas the projected level of cargo to be handled at Vallarpadam in the first year was 775,000 TEU.
Shipping Corporation of India chief executive S Hajara denies the claim. "There is enough capacity in Indian feeder vessels for handling containers arriving at Indian ports," he said.