Question
Recently, why ‘Cabotage Law’ was in news; consider the following statements in regard to it:
Which of the statements given above is/are correct?
- It states that only Indian flagged vessels can handle coastal cargo.
- Government recently tightened the cabotage law in order to reduce the illegal movement of cargo through coastal water.
Which of the statements given above is/are correct?
Answer: Option C
Answer: (c)
The relaxation of Cabotage Law for Vallarpadam terminal augurs well for Gateway Distriparks, which may see an improvement in CFS volumes in the coming quarters. Its CFS near the terminal is likely to attract some of the cargo. Under the existing rules of Cabotage Law, only Indian flagged vessels can handle coastal cargo.
Hence, foreign carriers transshipped India's destined cargo at Colombo or Dubai ports earlier.
This resulted in lower capacity utilization in Vallarpadam International Container Transshipment Terminal (ICCT) at Kochi, which was set up eighteen months ago. With the relaxation of the rules, foreign carriers can now handle coastal cargo through Vallarpadam ICTT.
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Answer: (c)
The relaxation of Cabotage Law for Vallarpadam terminal augurs well for Gateway Distriparks, which may see an improvement in CFS volumes in the coming quarters. Its CFS near the terminal is likely to attract some of the cargo. Under the existing rules of Cabotage Law, only Indian flagged vessels can handle coastal cargo.
Hence, foreign carriers transshipped India's destined cargo at Colombo or Dubai ports earlier.
This resulted in lower capacity utilization in Vallarpadam International Container Transshipment Terminal (ICCT) at Kochi, which was set up eighteen months ago. With the relaxation of the rules, foreign carriers can now handle coastal cargo through Vallarpadam ICTT.
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