Restriction on foreign ships entering Indian waters has put the government in dilemma as it has to protect the interest of both domestic as well as the global shipping fraternity  A government panel headed by maritime lawyer S Venkiteshwaran has recommended restrictions on foreign ships entering the Indian waters. The recommendations have come after much hue and cry by local ship owners demanding enforcement of stringent regulations on foreign ships venturing the Indian waters to protect their own interest. However, these restrictions have made the shipping companies engaged in coastal shipping apprehensive about their business being negatively impacted.As per the new rule, if there is unavailability of Indian ships, then preference would be given to foreign ships bought by Indian shipping companies. The same also has to be registered as an Indian ship before the commencement of operations.
Mixed opinion
According to a survey conducted by Shippingbiz360, 50% of the respondents feel that restrictions on foreign ships entering the Indian waters will benefit the Indian shipping industry. The remaining 50% feel otherwise considering that the global economic recession has already adversely affected several Indian ports, which lost a major chunk of revenues with clients either cancelling the deals or postponing the same.
R Kalyanraman, proprietor of IMNC logistics, a mid-sized logistics firm in Mumbai, says, “The recommendations will boost the domestic shipping companies engaged in coastal shipping as they will not have to face stiff competition from foreign ships. In order to generate higher revenues, the interest of domestic coastal shipping companies cannot be ignored.”
However, some believe that restrictions on foreign ships entering the Indian waters will send a wrong message to the global shipping fraternity involved in coastal shipping. M Ibrahim, proprietor of IB Express, a mid-sized company engaged in goods carriage services in Maharastra, says, “During tough times such as these, foreign ships must be encouraged to venture the Indian territories as these ships are equipped with the latest technology for fast movement of cargoes, which is essential to restore customer faith and confidence.” This is quite pertinent considering the fact that most of the Indian oil refiners, port developers and logistics companies use foreign ships to deliver their goods. Imposition of restrictions on foreign ships is sure to jeopardise their delivery schedule, as the demand-supply chain will be severely hampered. This will compel the end-users to incur additional expenses. Arup Choudhury |
