India’s Shipping Market Looks Bullish
The shipping market in India could soon be out of bounds for global fleet owners as a key tender condition that tilts the scale in favour of local ship-owners is scrapped, reports Livemint.
According to the rules set by the director general of shipping, India’s maritime regulator, in 2004 to extend cargo support and develop the local shipping industry, Indian ship has the right of first refusal to match the lowest rate quoted by a foreign-flag ship and take the contract.
The director general of shipping scrapped this requirement last week for tenders to finalize a so-called contract of affreightment (CoA) and channel deepening works at ports using dredgers.
Meanwhile the government is going ahead with the launch of Sagarmala project, setting up of new ports and a fillip to inland waterways are underway to make Indian shipping sector vibrant.
Union Road Transport, Highways and Shipping Minister Nitin Gadkari said initiatives had been taken to revive the rich cultural heritage of India in shipping as the country's maritime traditions go back to Indus Valley Civilisation when "the first port in the world was set up in Lothal".
The Ministry is also considering relaxation of cabotage restriction for movement of EXIM containerised cargo for all ports in India located on the East Coast.
The Indian shipping sector, worth a freight bill of $57 billion annually, comprises of the coastal shipping, ship building and ship repair industries, whereas the port sector consists of the major and non-major ports. Shipping and port industry is one of the major industries in India and has always been a major area of focus for the Indian government.
