KOCHI: With the Planning Commission recommending relaxation in the Cabotage law for three years, shipping majors are eagerly awaiting to hear the official announcement of that ‘good news’ from New Delhi.At least four major shipping lines, including the Mediterranean Shipping Company (MSC) and Maersk, have expressed willingness to start services to the International Container Transshipment Terminal at Vallarpadam once the Central Government announces relaxation in the Cabotage law, said the authorities of the Dubai Port World (DP World) Kochi, the operators of the terminal.Section 407(1) of the Merchant Shipping Act, which bans the movement of foreign-flagged vessels along the Indian coast, commonly known as the Cabotage law, is believed to be the major obstacle to the ICTT in the way of becoming a transshipment hub in South Asia. “We have not received anything in writing but major companies are waiting to get the Cabotage provisions relaxed,” said a key official of the DP World.“Major shipping lines are already conducting services to Colombo. Our effort is to woo those services to Kochi. This would become a reality once the relaxation is announced.”The Shipping Corporation of India (SCI) has already started a mainline service from Vallarpadam to East European destinations. However, we need more services to the US, the UK and the Far East, the officials said.An announcement regarding the relaxation in the Cabotage law is expected to be made within a month. Apart from favouring relaxation of terms in the much-discussed shipping law for at least three years for exim containers handled at ICTT, the Planning Commission has also suggested that the Shipping Ministry should come out with a policy for encouraging coastal shipping to develop multi-mode transport and reduce pressure on roads.
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