Maritime Newsletter

Cabotage law relaxation - 2010-07-05

The relaxation of Cabotage Law is high on the agenda before the Shipping Ministry, presumably at the behest of the powers-that-be. The relaxation, that allows the participation of foreign shipping lines in the country's coastal cargo, will, it is felt, hurt the national flag but benefit foreign lines and foreign terminal operators. At least one such operator, who is due to commission shortly a modern container terminal on the country's south-west coast but is not sure if the terminal will attract enough transhipment traffic from the neighbouring country, is believed to be pushing the relaxation issue. The national carriers enjoying exclusive rights on the coastal trade are upset at it. Most countries in the world reserve their coastal traffic for national lines for various reasons, the most important being the heightened coastal security concern. The foreign terminal operator got the contract after successful bidding which presupposed the enforcement of Cabotage restriction. Relaxing the restriction now might, therefore, amount to violation of the relevant provision of the original contract. Will the Government allow foreign airlines also to pick up domestic traffic?Source: zawya.com