Trade unions oppose relaxation in Cabotage Law

July 02, 2010 01:06 pm | Updated 01:06 pm IST - KOCHI

Trade unions at Cochin Port Trust have reiterated their demand that container handling operations at Rajiv Gandhi terminal should be continued by the Port Trust even after the mainline operations are shifted to Vallarpadam.

They opined that any relaxation in Cabotage Law would be detrimental to the interests of the operations of Indian coastal vessels. Cabotage Law refers to the practice of restraining entry to a country's coastal trade only to national ships.

The combine of Cochin Port Employees' Organisation, Cochin Port Employees' Sangh, Cochin Harbour Workers' Union, Cochin Port Thozhilali Union and Cochin Port Labour Union have, in a joint decision here, urged the Centre and the Shipping Ministry not to consider any relaxation or amendment to the Cabotage Law, facilitating freedom for foreign vessels to handle Indian coastal cargo.

The trade unions pointed out that the National Transport Policy and Merchant Shipping Act 1958 were aimed at developing Indian shipping business, the former reserving 40 per cent of Indian cargo for Indian flag vessels and the latter prescribing that coastal cargo in the country should not be handled by foreign flag vessels.

The move to do away with the Cabotage Law was highly detrimental to the interests of lakhs of port and dock workers, Indian seafarers and the domestic shipping industry, the trade unions pointed out.

On the Port's container handling operations, the trade unions said that operations of Rajiv Gandhi Container Terminal (RGTC) should be taken over by the Port Trust after the commissioning of International Container Transhipment Terminal on Vallarpadam Island so that the port could continue to handle coastal cargo containers and defence cargo.

The licence agreement between India Gateway Terminals Limited (IGTL), which is currently operating the Rajiv Gandhi Terminal, and Cochin Port Trust does not have any clause against the Port Trust taking over container operations.

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